Claude Resources Inc. Announces First Quarter Results
SASKATOON, May 9, 2013
TSX - CRJ
NYSE MKT - CGR
SASKATOON, May 9, 2013 /PRNewswire/ - Claude Resources Inc. ("Claude" and or
the "Company") today reported its 2013 first quarter financial and operating
results. All dollar amounts are in Canadian dollars unless stated otherwise.
First Quarter Highlights Include:
*Net loss of $2.5 million, or $0.01 per share.
*Cash flow from operations before net changes in non-cash operating working
capital ^(1) of $1.4 million, or $0.01 per share.
*Production of 8,082 ounces of gold.
*Gold sales of 9,301 ounces at an average realized price of $1,643 (U.S.
$1,629) for revenue of $15.3 million.
*Total cash cost per ounce of gold ^ (1) for the first quarter of 2013 was
$1,245 (U.S. $1,235).
*Completed debt financing with Canadian Western Bank.
*Seabee Gold Mine shaft extension project completed to 980 metres.
"Production in the first quarter came in below budget. We experienced lower
grade from two zones at the Seabee Mine. We do not expect this to continue and
have already seen improvement in grade and tonnes during the month of April,"
stated Neil McMillan, President and Chief Executive Officer. "Just after the
quarter, on April 5, we closed the financing with Crown Capital Partners Inc.
for a long-term debt facility of $25.0 million. The additional capital
provides us with adequate liquidity to continue to increase production and
improve our operating margin. Our focus for the remainder of the year will be
on cost reductions and meeting our production guidance while bringing the
Santoy Gap deposit into our production profile."
For the three months ended March 31, 2013, the Company recorded a net loss of
$2.5 million, or $0.01 per share, after a $0.8 million deferred income tax
recovery. This compares to a net loss of $0.5 million, or $0.00 per share,
for the three months ended March 31, 2012.
Gold revenue from the Company's Seabee Gold Operation for the three months
ended March 31, 2013 decreased five percent to $15.3 million from the $16.1
million reported for the first three months of 2012. The decrease in gold
revenue period over period was attributable to a two percent decline in
Canadian dollar gold prices realized (Q1 2012 - $1,643 (U.S. $1,629); Q1 2012
- $1,681 (U.S. $1,679)) and slightly lower gold sales volume (Q1 2013 - 9,301
ounces; Q1 2012 - 9,547 ounces).
For the three months ended March 31, 2013, mine production costs of $11.6
million were relatively unchanged period over period. First quarter total
cash cost per ounce of gold ^(1) of $1,245 (U.S. $1,235) per ounce was
consistent with the first quarter of 2012's cash cost per ounce of $1,236
(U.S. $1,234). The Company is continuing to pursue best practices with the
intention of lowering these costs during the remainder of 2013 and beyond.
Cash flow from operations before net changes in non-cash operating working
capital ^(1) of $1.4 million, or $0.01 per share, for the three months ended
March 31, 2013, was down from $2.6 million, or $0.02 per share, for the three
months ended March 31, 2012.
During the first quarter of 2013, the Company expanded its current debt
facilities with its existing bank to $25.0 million. Subsequent to March 31,
2013, the Company also executed an agreement with Crown Capital Partners Inc.
for an additional long-term debt facility of $25.0 million. The $25.0 million
in new debt will facilitate the retirement of the Company's $9.8 million
outstanding debentures (which mature in May 2013), allow for the development
of Santoy Gap, the Seabee Mine and for working capital purposes.
During the first quarter of 2013, the Company milled 61,877 tonnes at a grade
of 4.31 grams of gold per tonne (March 31, 2012 - 66,556 tonnes at a grade of
4.74 grams of gold per tonne) for total production of 8,082 ounces of gold
(March 31, 2012 - production of 9,574 ounces of gold). With mill recoveries
relatively unchanged period over period, the decrease in ounces produced is
attributable to a decrease in grade from the Seabee Mine. Short-term
volatility in grade is not unusual at Seabee's narrow-vein mining operation.
The Company remains confident that it can achieve 2013 guidance of 50,000 to
54,000 ounces of gold.
Table 1: Seabee Gold Operation Production and Cost Statistics
March 31 March 31
Tonnes Milled 61,877 66,556
Head Grade (grams per tonne) 4.31 4.74
Recovery (%) 94.3% 94.4%
Gold Produced (ounces) 8,082 9,574
Gold Sold (ounces) 9,301 9,547
Revenues (CDN$ million) $15.3 $16.1
Production Costs (CDN$ million) $11.6 $11.8
Cash Operating Costs (CDN$/oz) ^(1) $1,245 $1,236
Cash Operating Costs (U.S.$/oz) ^(1) $1,235 $1,234
Cost Reduction Initiatives
The Company has aggressively taken steps to reduce corporate expenditures
starting in the second quarter of 2012. Since full year 2012, Claude has
identified and implemented annualized savings approximating 20 percent and
will continue to review and adjust expenditures for the balance of 2013.
During the first quarter of 2013, exploration was focused at the Seabee Gold
Operation targeting extensions at both the Seabee Mine and the Santoy Mine
Complex. Further exploration at the Santoy Mine Complex is planned for 2013
while the team continues to work towards the completion of the Preliminary
Economic Assessment at the Amisk Gold Project and an internal scoping at the
Madsen Gold Project.
For 2013, forecast gold production at the Seabee Gold Operation is estimated
to range from 50,000 to 54,000 ounces. Unit costs for 2013 are expected to
improve slightly from 2012's unit cash costs of $997 per ounce. Quarterly
operating results are expected to fluctuate throughout 2013; 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 on May 10, 2013 at 11:00
AM Eastern Standard Time.
To participate in the conference call please dial 1-647-427-7450 or
1-888-231-8191. A replay of the conference call will be available until May
17, 2013 by calling 1-855-859-2056 and entering the password 55514132.
To view and listen to the webcast on May 10, 2013 please use the following URL
in your web browser: http://www.newswire.ca/en/webcast/detail/1151587/1257219.
A copy of Claude's 2013 first quarter 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
Claude Resources Inc. is a public company based in Saskatoon, Saskatchewan,
whose shares trade on the Toronto Stock Exchange (TSX-CRJ) and the NYSE MKT
(NYSE MKT-CGR). Claude is a gold exploration and mining company with an asset
base located entirely in Canada. Since 1991, Claude has produced over
1,031,000 ounces of gold from its Seabee Gold Operation in northeastern
Saskatchewan. The Company also owns 100 percent of the 10,000 acre Madsen
Property in the prolific Red Lake gold camp of northwestern Ontario and owns
100 percent of the Amisk Gold Project in northeastern Saskatchewan.
See description and reconciliation of non-IFRS performance measures in
^(1) the "Non-IFRS Performance Measures and Reconciliations" section of the
Company's Q1 2013 MD&A available on www.sedar.com and 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
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
Claude does not undertake to update any forward-looking statements that are
incorporated by reference herein, except in accordance with applicable
SOURCE CLAUDE RESOURCES INC.
Neil McMillan, President & CEO
Phone: (306) 668-7505
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7505
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