TSX - CRJ
NYSE MKT - CGR
SASKATOON, May 9, 2013 /CNW/ - 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
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
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 $9.8 million outstanding debentures (which
mature in May 2013), allow for the development of Santoy Gap, the
Seabee Mine and for working capital purposes.
During the first quarter of 2013, the Company milled 61,877 tonnes at a
grade of 4.31 grams of gold per tonne (March 31, 2012 - 66,556 tonnes
at a grade of 4.74 grams of gold per tonne) for total production of
8,082 ounces of gold (March 31, 2012 - production of 9,574 ounces of
gold). With mill recoveries relatively unchanged period over period,
the decrease in ounces produced is attributable to a decrease in grade
from the Seabee Mine. Short-term volatility in grade is not unusual at
Seabee's narrow-vein mining operation. The Company remains confident
that it can achieve 2013 guidance of 50,000 to 54,000 ounces of gold.
Table 1: Seabee Gold Operation Production and Cost Statistics
Head Grade (grams per tonne)
Gold Produced (ounces)
Gold Sold (ounces)
Revenues (CDN$ million)
Production Costs (CDN$ million)
Cash Operating Costs (CDN$/oz) (1)
Cash Operating Costs (U.S.$/oz) (1)
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
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 www.sec.gov/.
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
See description and reconciliation of non-IFRS performance measures in
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
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,
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.
SOURCE: CLAUDE RESOURCES INC.
For further information:
Neil McMillan, President & CEO
Phone: (306) 668-7505
Marc Lepage, Manager, Investor Relations
Phone: (306) 668-7505