Trading Symbols: TSX: CRJ; OTCQB: CLGRF
(All dollar amounts are in Canadian dollars unless stated
otherwise)
Highlights:
- Record quarterly gold production of 21,067 ounces, an 86%
increase from Q1 2014
- Mill head grade of 10.17 grams of gold per tonne for the
quarter, a 77% increase from Q1 2014
- Gold sales for the quarter were 17,326 ounces, a 59% increase
from Q1 2014
- Total cash cost per ounce of gold sold (1) of
$675 (U.S. $544), a 31% decrease from Q1 2014
- All-in sustaining cost per ounce of gold sold (1) of
$1,374 (U.S. $1,107), a 28% decrease from Q1 2014
- Cash flow from operations before net changes in non-cash
operating working capital (1) of $9.3 million ($0.05
per share), a 417% increase from Q1 2014
- Santoy Gap Deposit ramp up on pace to achieve 500 tonnes per
day
SASKATOON, May 7, 2015 /CNW/ - Claude Resources Inc.
("Claude" and or the "Company") today reported first quarter net
profit of $5.1 million, or
$0.03 per share, a $10.2 million improvement from the first quarter
of 2014 (Q1 2014 net loss - $5.1
million, or ($0.03) per
share). The significant improvement in financial performance
relates to improvements in gold production, sales volumes, ore
grades and operational efficiencies.
"During the first quarter of 2015, the Seabee Gold Operation has
continued to perform well with another quarterly gold production
record, the third in its last four quarters. Higher than budgeted
grades from planned stopes at the L62 and Santoy Gap deposits and
productivity improvements contributed to the strong first quarter
performance," stated Brian
Skanderbeg, President and Chief Executive Officer. "Our
ability to achieve consistent results over the past four quarters
demonstrates the sustainability of our business plan and ore
bodies. With the most challenging quarter behind us, cash on hand
of $15.4 million and a declining
all-in sustaining cost per ounce profile for the remainder of the
year, we are confident in our ability to continue to generate free
cash flow during 2015."
Financial Review
First quarter gold revenue of $26.2
million was 68% higher than the $15.6
million reported in the first quarter of 2014. The increase
in gold revenue period over period was attributable to a 59%
increase in gold sales volume (Q1 2015 – 17,326; Q1 2014 – 10,865
ounces) and a 5% increase in Canadian dollar gold prices realized
(Q1 2015 $1,511 (U.S. $1,218); Q1 2014 - 1,438 (U.S. $1,303)) .
For the three months ended March 31,
2015, mine production costs of $10.7
million (Q1 2014 - $10.6
million) were relatively unchanged period over period.
With mine production costs and tonnes milled relatively unchanged
period over period, higher grade ore decreased total cash cost per
ounce of gold sold (1) by 31% to $675 (U.S. $544).
Notwithstanding the significant outlay of capital expenditures
during the first quarter due to the winter re-supply, all-in
sustaining cost per ounce of gold sold (1) decreased by
28% for the quarter to $1,374 (U.S.
$1,107) from $1,919 (U.S. $1,738) in the first quarter of 2014. All-in
sustaining costs per ounce of gold were budgeted to be higher in
the first quarter as the majority of the annual property, plant and
equipment budget, $5.1 million of the
$6.1 million, was incurred.
Cash flow from operations before net changes in non-cash
operating working capital (1) of $9.3 million, or $0.05 per share, was up significantly from the
$1.8 million, or $0.01 per share, reported in the first quarter of
2014.
Highlights
of Financial Results
|
Q1
2015
|
Q1 2014
|
|
|
|
Revenue
(000's)
|
$26,183
|
$15,624
|
Production costs
(000's)
|
$10,730
|
$10,628
|
Gross profit (loss)
(000's)
|
$10,618
|
($655)
|
Net profit (loss)
(000's)
|
$5,122
|
($5,111)
|
Earnings (loss) per
share (basic and diluted)
|
$0.03
|
($0.03)
|
Cash flow from
operations before net changes in non-cash operating working capital
(1) (000's)
|
$9,268
|
$1,784
|
Cash flow from
operations before net changes in non-cash operating working capital
(1) per share
|
$0.05
|
$0.01
|
Average realized
price per ounce
|
$1,511
|
$1,438
|
Average realized
price per ounce (U.S.$)
|
$1,218
|
$1,303
|
Total cash cost per
ounce (1)
|
$675
|
$983
|
Total cash cost per
ounce (U.S.$) (1)
|
$544
|
$891
|
All-in sustaining
cost per ounce (1)
|
$1,374
|
$1,919
|
All-in sustaining
cost per ounce (U.S.$) (1)
|
$1,107
|
$1,738
|
Operations Review
Record first quarter gold
production of 21,067 ounces was 86% more than was produced in the
same period in 2014 – a product of higher than budgeted ore
grades from planned stopes at both the L62 and Santoy Gap deposits.
During the quarter, the Company milled 67,249 tonnes at 10.17 grams
of gold per tonne representing a 4% and 77% increase from the first
quarter of 2014, respectively.
During the quarter, the Santoy Mine Complex averaged 432 tonnes
per day at approximately 8.33 grams of gold per tonne and is on
pace to achieve the budgeted throughput of 500 tonnes per day in
2015. The L62 deposit averaged 315 tonnes per day at an
average grade of 12.70 grams of gold per tonne. The increase in
production during the quarter was from positive reconciliation on
grade at both the L62 and Santoy Gap and replacing the lower grade
Santoy 8 ore with higher grade Santoy Gap ore. For the remainder of
2015, the average head grade is expected to be more in-line with
mineral reserve grades.
Over the last four quarters, the Company has produced 72,707
ounces of gold.
|
|
|
|
Production
Highlights
|
Q1
2015
|
Q1 2014
|
Change
|
|
|
|
|
Seabee Gold
Mine
|
|
|
|
|
Tonnes
milled
|
28,352
|
37,036
|
-23%
|
|
Head grade (grams of
gold per tonne)
|
12.70
|
7.31
|
74%
|
|
Produced gold
(ounces)
|
11,085
|
8,285
|
34%
|
|
|
|
|
Santoy Mine
Complex
|
|
|
|
|
Tonnes
milled
|
38,897
|
27,334
|
42%
|
|
Head grade (grams of
gold per tonne)
|
8.33
|
3.66
|
128%
|
|
Produced gold
(ounces)
|
9,982
|
3,059
|
226%
|
Total tonnes
milled
|
67,249
|
64,370
|
4%
|
Average head grade
(grams of gold per tonne)
|
10.17
|
5.76
|
77%
|
Recovery
(%)
|
95.8
|
95.1
|
1%
|
Total gold
produced (ounces)
|
21,067
|
11,344
|
86%
|
Total gold sold
(ounces)
|
17,326
|
10,865
|
59%
|
Outlook
During 2015, production at the Seabee
Gold Operation is expected to be between 60,000 and 65,000 ounces
of gold. Operating costs in 2015 are expected to be marginally
lower than 2014 with unit cash costs to range from $785 to $850 per ounce, inclusive of royalties,
and all-in sustaining costs to range from $1,175 to $1,275 per ounce. The Santoy Gap
deposit will continue to decrease production risk with the addition
of multiple long-hole mining fronts. This Santoy Gap ore will
displace lower margin ounces and optimize the Company's mine plan
for improved cash flow. Quarterly operating results are expected to
fluctuate throughout 2015; as such, they will not necessarily be
reflective of the full year average.
Conference Call and Webcast
We invite you to join our conference call and webcast tomorrow
at 11:00 AM Eastern Time.
To participate in the conference call please dial 1-888-231-8191
or 1-647-427-7450. A replay of the conference call will be
available until May 15, 2015 by
calling 1-855-859-2056 and entering the pass code 32643604.
To view and listen to the webcast on May
8, 2015 please use the following URL in your web browser:
http://event.on24.com/r.htm?e=985765&s=1&k=10DE19A63DFAFC01C19EE5D90B189E9D
A copy of Claude's Q1 2015 Management's Discussion &
Analysis, Financial Statements and Notes thereto (unaudited) can be
viewed at www.clauderesources.com. Further information
relating to Claude Resources Inc. has been filed on SEDAR and EDGAR
and may be viewed at www.sedar.com or www.sec.gov.
Claude Resources Inc. is a public gold exploration and
mining company based in Saskatoon,
Saskatchewan, with an asset base located entirely in
Canada. Its shares trade on the
Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB: CLGRF).
Since 1991, Claude has produced over 1,000,000 ounces of gold from
its Seabee Gold Operation in northeastern Saskatchewan. The Company also owns 100
percent of the Amisk Gold Project in northeastern Saskatchewan.
Footnotes
(1) See description and reconciliation of
non-IFRS financial measures in the "Non-IFRS Financial Measures and
Reconciliations" section in the Company's Q1 2015 MD&A
available on the Company's website at www.clauderesources.com or on
www.sedar.com or www.sec.gov.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release
and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (referred to herein as
"forward-looking statements"). Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines,
currency exchange rate fluctuations, requirements for additional
capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes", or the negative connotation thereof or variations of
such words and phrases or state that certain actions, events or
results, "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation
thereof.
All forward-looking statements are based on various assumptions,
including, without limitation, the expectations and beliefs of
management, the assumed long-term price of gold, that the Company
will receive required permits and access to surface rights, that
the Company can access financing, appropriate equipment and
sufficient labour, and that the political environment within
Canada will continue to support
the development of mining projects in Canada.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Claude
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to:
actual results of current exploration activities; environmental
risks; future prices of gold; possible variations in ore reserves,
grade or recovery rates; mine development and operating risks;
accidents, labour issues and other risks of the mining industry;
delays in obtaining government approvals or financing or in the
completion of development or construction activities; and other
risks and uncertainties, including but not limited to those
discussed in the section entitled "Business Risk" in the Company's
Annual Information Form. These risks and uncertainties are not, and
should not be construed as being, exhaustive.
Although Claude has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
Forward-looking statements in this news release are made as of
the date of this news release and accordingly, are subject to
change after such date. Except as otherwise indicated by
Claude, these statements do not reflect the potential impact of any
non-recurring or other special items that may occur after the date
hereof. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of our operating environment.
Claude does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
CAUTIONARY NOTE TO US INVESTORS CONCERNING RESOURCES
ESTIMATES
The resource estimates in this document were prepared in
accordance with National Instrument 43-101, adopted by the Canadian
Securities Administrators. The requirements of National Instrument
43-101 differ significantly from the requirements of the United
States Securities and Exchange Commission (the "SEC"). In this
document, we use the terms "measured", "indicated" and "inferred"
resources. Although these terms are recognized and required in
Canada, the SEC does not recognize
them. The SEC permits U.S. mining companies, in their filings with
the SEC, to disclose only those mineral deposits that constitute
"reserves". Under United States
standards, mineralization may not be classified as a reserve unless
the determination has been made that the mineralization could be
economically and legally extracted at the time the determination is
made. United States investors
should not assume that all or any portion of a measured or
indicated resource will ever be converted into "reserves". Further,
"inferred resources" have a great amount of uncertainty as to their
existence and whether they can be mined economically or legally,
and United States investors should
not assume that "inferred resources".
SOURCE Claude Resources Inc.