Trading symbol - CRJ
AMEX - CGR
SASKATOON, SK, Aug. 8 /CNW/ - Claude Resources Inc. (TSX-CRJ; AMEX-CGR)
today released its Second Quarter 2008 financial results.
Claude Resources reports a second quarter net loss of $0.8 Million
($0.01) per share, a significant improvement over the $3.4 Million net loss
($0.04) per share recorded in the second quarter of 2007. For the first six
months of 2008, the Company recorded a net loss of $0.3 Million ($0.00) per
share. This compares to a net loss of $3.4 Million ($0.04) per share for the
comparable period of 2007. These results reflect the impact of significantly
higher gold prices realized.
Cash flow from operating activities prior to working capital changes was
$2.2 Million for the second quarter and $3.4 Million for the first six months
of 2008. This compares to negative cash flow, prior to working capital changes
of $0.6 Million for the second quarter of 2007 and negative cash flow prior to
working capital changes of $0.2 Million for the first half of last year.
As a result of the recent debenture financing, working capital at June
30, 2008 was $19.1 Million, an improvement of $13.1 Million over the $6.0
Million reported at the end of the first quarter of 2008.
"The second quarter 2008 was very much on track and according to plan,"
stated Claude Resources' President and Chief Executive Officer Neil McMillan.
"Raising in excess of $18 Million through a debenture offering enabled the
Company to pay for the equipment investment at Seabee and to prepay almost $12
Million of consumables used in operations at Seabee. Additionally, this
increase in working capital enabled Claude Resources to finance the aggressive
exploration program at the Madsen project at Red Lake, Ontario."
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, 2008 June 30, 2007 June 30, 2008 June 30, 2007
($ millions) 12.2 7.3 22.6 15.2
($ millions) (0.8) (3.4) (0.3) (3.4)
per share ($) (0.01) (0.04) (0.00) (0.04)
(CDN $/ounce /
US $/ounce) 915/906 695/633 918/912 731/644
(CDN $/ounce /
US $/ounce) 750/743 732/667 740/735 678/597
($ millions) 19.1 14.5 19.1 14.5
During the second quarter 2008, the Company closed its debenture
financing for gross proceeds of $18.1 Million. The five year 12% debenture
features monthly interest payments with the principal repayable at the end of
the term. It has enabled the Company to finance its expansion activities while
accomplishing one of its strategic initiatives of minimizing shareholder
Claude Resources also undertook the preparatory work to monetize its oil
and natural gas interests. Subsequent to the second quarter, the Company
announced that it had placed its oil and natural gas assets on the market.
This initiative, as set out in the Company's strategic plan, enables it to
focus all of its attention on core assets - namely, the Seabee mine area and
the Madsen exploration project.
Claude Resources Inc. continued its aggressive exploration program at its
Madsen project at Red Lake, Ontario in the second quarter. As well, the
Company moved the Madsen underground drill program ahead of schedule. During
the second quarter the Company announced its decision to commence the
underground drill program from the 12th level rather than from the 16th level.
As a result, underground drilling is now expected to commence during the 4th
The continuing exploration program at Seabee, intended to increase
reserves and resources for Claude Resources' mining operation, announced drill
results (uncut) of 32.52 g/t over 4.80 Meters (1.05 oz./t over 15.75 ft.)
during the second quarter. As well, a National Instrument 43-101 compliant
Mineral Reserves and Mineral Resources Technical Report dated June 2008 for
the Seabee mining area indicated the following reserves and resources:
- Proven and Probable Reserves of 1,048,420 tonnes at 6.70 grams per
tonne and 225,805 gold ounces
- Measured and Indicated Resources of 977,500 tonnes at 8.59 grams per
tonne and 269,800 gold ounces
During the second quarter, Claude Resources produced 11,531 ounces of
gold to bring year to date production to 19,953, a production level that is
17% higher than that achieved during the first half of 2007. The Company's
production target for 2008 remains at 48,000 to 52,000 ounces. As expected,
40% of production occurred during the first half of 2008 with the remaining
60% forecast to come in the second half.
Detailed Financial Information:
A full copy of Claude's 2008 first half Management's Discussion and
Analysis as well as Financial Statements and Notes (unaudited) are contained
on SEDAR as well as on the Claude Resources' website at
The disclosure of scientific and technical information regarding Claude
Resources Inc.'s properties in this media release was prepared by or under the
supervision of the following persons for purposes of National Instrument
- Philip Ng, Vice President Mining Operations, P.Eng.
- Brian Skanderbeg, Vice President Exploration, P.Geo.
Claude Resources Inc. is a public company based in Saskatoon,
Saskatchewan, whose shares trade on the Toronto Stock Exchange (TSX-CRJ) and
the American Stock Exchange (AMEX-CGR). Claude is a gold exploration and
mining company. The Company also owns producing oil and natural gas assets.
The Company's entire asset base is located in Canada. Since 1991, Claude has
produced approximately 820,000 ounces of gold from its Seabee mining operation
in northeastern Saskatchewan. The Company also owns 100% of the 10,000 acre
Madsen property in the prolific Red Lake gold camp of northwestern Ontario.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements relating
but not limited to the Company's expectations, intentions, plans and beliefs.
Forward-looking information can often be identified by forward-looking words
such as "anticipate", "believe", "expect", "goal", "plan", "intent",
"estimate", "may" and "will" or similar words suggesting future outcomes or
other expectations, beliefs, plans, objectives, assumptions, intentions or
statements about future events or performance. Forward-looking information may
include reserve and resource estimates, estimates of future production, unit
costs, costs of capital projects and timing of commencement of operations, and
is based on current expectations that involve a number of business risks and
uncertainties. Factors that could cause actual results to differ materially
from any forward-looking statement include, but are not limited to, failure to
establish estimated resources and reserves, the grade and recovery of mined
ore varying from estimates, capital and operating costs varying significantly
from estimates, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, inflation, changes in
exchange rates, fluctuations in commodity prices, delays in the development of
projects and other factors. Forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from expected results.
Potential shareholders and prospective investors should be aware that
these statements are subject to known and unknown risks, uncertainties and
other factors that could cause actual results to differ materially from those
suggested by the forward- looking statements. Shareholders are cautioned not
to place undue reliance on forward-looking information. By its nature,
forward-looking information involves numerous assumptions, inherent risks and
uncertainties, both general and specific, that contribute to the possibility
that the predictions, forecasts, projections and various future events will
not occur. Claude Resources undertakes no obligation to update publicly or
otherwise revise any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
%SEDAR: 00000498E %CIK: 0001173924
For further information:
For further information: Neil McMillan, President and Chief Executive
Officer, (306) 668-7505 or Rick Johnson, CA Chief Financial Officer, (306)
668-7505, Email: email@example.com, Website: