Claude Resources Inc. Reports First Quarter Results
SASKATOON, June 6, 2011 /CNW/ --
Trading Symbols
TSX - CRJ
NYSE Amex - CGR
'Claude Resources records net earnings of $1.8 million in Q1'
SASKATOON, June 6, 2011 /CNW/ - Claude Resources Inc. ('Claude' or the
'Company') today reported its first quarter financial and operating
results. For the quarter ended March 31, 2011, the Company recorded a
net profit of $1.8 million, or $0.01 per share. This compares to a net
loss of $1.6 million for the comparable period in 2010, or $0.01 per
share.
Speaking today in Saskatoon, President and Chief Executive Officer Neil
McMillan stated, 'We had a very busy and successful first quarter of
2011. During the quarter we achieved commercial production at the new
Santoy 8 Gold Mine, conducted two exploration programs at Seabee and
Amisk, established the first drill chamber at Madsen to target the high
grade 8 Zone and safely executed our major winter re-supply program for
the Seabee Gold Operation. Early in the second quarter, we commenced
the Phase II drill program to test the 8 Zone at Madsen. The Phase II
drill program will continue throughout the year and could potentially
be expanded.'
Financials:
On January 1, 2011, the Company transitioned to the International
Financial Reporting Standards ('IFRS'). The new accounting policies
under IFRS have been used in this quarter's information and related
quarterly information for comparative purposes. Further details
regarding IFRS can be found in the Company's first quarter MD&A of 2011
available on Sedar (www.sedar.com).
For the three months ended March 31, 2011, cash flow from operations((1)) before net changes in non-cash working capital improved 290 percent to
$3.9 million, or 0.03 per common share, from $1.0 million, or 0.01 per
common share, in the first quarter of 2010. Despite slightly higher
operating costs due to increased spending on labour, cash cost per
ounce (1) of gold fell two percent to CDN $924 (U.S. $938) per ounce
during the first quarter from CDN $946 (U.S. $909) in the first quarter
of 2010.
(()(1) )For an explanation of non-IFRS performance measures refer to 'Non-IFRS
Performance Measures' in the Company's MD&A filed on www.sedar.com.
Gold revenue from the Company's Seabee Gold Operation for the quarter
ended March 31, 2011 increased 30 percent to $13.3 million from $10.2
million reported in the first quarter of 2010. The increase in gold
revenue was attributable to increased gold sales volume (Q1 2011 -
9,461 ounces; Q1 2010 - 8,890 ounces) and a 23 percent improvement in
Canadian dollar gold prices realized (Q1 2011 - $1,408 (U.S. $1,428);
Q1 2010 - $1,147 (U.S. $1,103)).
Financial and Operating Highlights (unaudited):
Three Months Three Months
March 31 March 31
2011 2010
Gold revenue (CDN$ millions) 13.3 10.2
Cash flow from operations (CDN$ millions) 3.9 1.0
Net profit (loss) (CDN$ millions) 1.8 (1.6)
Net profit (loss) per share ($) 0.01 (0.01)
Average realized gold price (CDN$ per oz / 1,408/1,428 1,147 / 1,103
US$ per oz)
Cash costs (CDN$ per oz / US$ per oz)((1)) 924 / 938 946 / 909
EBITDA ($ millions)((1)) 3.2 0.6
Tonnes Milled 50,501 38,490
Head Grade (grams per tonne) 6.20 7.79
Recovery (%) 94.8% 95.7%
Gold Produced (ounces) 9,539 9,221
Gold Sold (ounces) 9,461 8,890
Production costs (CDN$ million) $8.7 $8.4
((1)) For an explanation of non-IFRS performance measures refer to 'Non-IFRS
Performance Measures' in the Company's MD&A filed on www.sedar.com.
On May 4, 2011, the Company completed the 'bought-deal' equity financing
previously announced on April 6, 2011. The offering consisted of the
issuance of 20,000,000 common shares of the Company at a price of $2.50
per common share; in addition, the underwriters of the offering
exercised their overallotment option for an additional 3,000,000 common
shares at a price of $2.50 per common share. The aggregate gross
proceeds raised under the offering was $57.5 million.
For the quarter ended March 31, 2011, total mine operating costs
increased four percent to $8.7 million from $8.4 million for the same
period in 2010. This result was in line with Management expectations.
Operations:
For the quarter ended March 31, 2011, Claude extracted and processed
50,501 tonnes of ore at its Seabee Gold Operation with a grade of 6.20
grams of gold per tonne (Q1 2010 - 38,490 tonnes at 7.79 grams of gold
per tonne). Sales volume for the quarter was 9,461 ounces of gold
compared to 8,890 ounces of gold in Q1 2010, an increase of six percent
period over period. Produced ounces for the period increased by three
percent to 9,539 ounces from 9,221 ounces in Q1 2010.
Exploration:
Claude continued its aggressive exploration and development strategy
during the first quarter of 2011. Exploration at the Seabee Gold
Operation focused on drill testing of the Neptune and Trident targets.
At the Amisk Gold Project, exploration continued with the release of a
National Instrument 43-101 open-pit resource estimate, drilling in
excess of 3,300 metres in eight holes and advancement of metallurgical
and engineering test work.
Exploration at Madsen advanced shaft dewatering and rehabilitation
towards a planned Phase II underground drill program which began in the
second quarter of 2011.
Outlook:
For 2011, the Company will continue to focus on the following:
i) Advancement of surface and underground exploration drill programs
at the Company's 100 percent owned Madsen Exploration Project with
commencement of Phase II of underground drilling from the 16th
level drill platform;
ii) Further development of satellite deposits and improvement of
operating margins at the Seabee Gold Operation;
iii) Continue exploration and development at the Seabee Gold Operation
to sustain or increase reserves and resources;
iv) Invest in capital projects and equipment to increase both
production and productivity at the Seabee Gold Operation; and
v) Expand the scope of the Amisk Gold Project and evaluate the bulk
mining potential of the system.
For 2011, forecasted gold production at the Seabee Gold Operation is
estimated to range from 54,000 to 58,000 ounces of gold. Unit cash
costs for 2011 are estimated to be similar to 2010.
Conference Call:
We invite you to join our conference call on June 6, 2011 at 11:00 am
EST.
To participate in the conference call please dial 1-647-427-7450 or
1-888-231-8191. A replay will be available until June 10, 2011 at 11:59
PM ET by calling 1-416-849-0833 or 1-800-642-1687 and entering the
passcode 67513072.
To view and listen to the webcast please use the following URL in your
web browser:
http://event.on24.com/r.htm?e=314976&s=1&k=9CFA78012A1925E453B7279C8D863B44
Claude Resources Inc. is a gold producer with shares listed on both the
Toronto Stock Exchange (TSX: CRJ) and the NYSE Amex (NYSE Amex-CGR).
The Company is also engaged in the exploration and development of gold
mineral reserves and mineral resources. The Company's entire asset base
is located in Canada. Its main revenue generating asset is the 100
percent owned Seabee gold operation, located in northern Saskatchewan.
Since 1991, Claude has produced over 938,000 ounces of gold from its
Seabee Operations. Claude also owns 100 percent of the 10,000 acre
Madsen Property in the prolific Red Lake gold camp of northwestern
Ontario and has a 65 percent working interest in the Amisk Gold
Property in northeastern Saskatchewan.
Philip Ng, P.Eng, Senior Vice President, Mining Operations and Brian
Skanderbeg, P.Geo., Vice President, Exploration, Qualified Persons,
have reviewed the contents of this news release for accuracy.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Press Release may contain statements which constitute
'forward-looking' statements, including statements regarding the plans,
intentions, beliefs and current expectations of the Company, its
directors, or its officers with respect to the future business
activities and operating performance of the Company. The words 'may',
'would', 'could', 'will', 'intend', 'plan', 'anticipate', 'believe',
'estimate', 'expect' and similar expressions, as they relate to the
Company, or its management, are intended to identify such
forward-looking statements. Investors are cautioned that any such
forward-looking statements are not guarantees of future business
activities or performance and involve risks and uncertainties, and that
the Company's future business activities may differ materially from
those in the forward-looking statements as a result of various
factors. Such risks, uncertainties and factors are described in the
periodic filings with the Canadian securities regulatory authorities,
including the Company's Annual Information Form and quarterly and
annual Management's Discussion and Analysis, which may be viewed on
SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking statements prove
incorrect, actual results may vary materially from those described
herein as intended, planned, anticipated, believed, estimated or
expected. Although the Company has attempted to identify important
risks, uncertainties and factors which could cause actual results to
differ materially, there may be others that cause results not to be as
anticipated, estimated or intended. The Company does not intend, and
does not assume any obligation, to update these forward-looking
statements.
A copy of Claude's interim Management's Discussion and Analysis as well
as Claude's Q1 2011 financial statements and notes (unaudited) can be
viewed at www.clauderesources.com. Further information relating to Claude Resources Inc. has been filed
on SEDAR and may be viewed at www.sedar.com.
To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/06/c2702.html
Neil McMillan, President & CEO
Phone: (306) 668-7505
or
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7505
Email: ir@clauderesources.com
Website: www.clauderesources.com