Owner
Post by Franko10 ™ on Oct 7, 2004 11:09:43 GMT -5
FIRST QUARTER REPORT
For The Months Ending May 18,2001
Overview
Continued weakness in the spot price of bullion is generating growing pressure on the gold mining industry. Notwithstanding that gold consumption has exceeded gold mine production by a wide margin for more than eight years, the commodity price has refused to move up in a material fashion.
While Claude is not immune to the pressures created by the narrow margins currently being realized in the gold mining business, the Company is well positioned to survive continued weakness in gold prices.
Claude’s diversification into oil and gas in the early 1980’s continues to serve Company shareholders well. Further, the Company is free of long term debt and has a substantial working capital position.
The Seabee mine is among the most productive and lowest cost of all narrow vein underground operations. Claude believes it can sustain cash operating costs under US $200 per ounce for the foreseeable future. Seabee’s mineral reserves total 579,000 tonnes and the operation has an additional inferred mineral resource that exceeds 1,600,000 tonnes as extensions to depth of the current mine workings.
Claude’s Madsen Red Lake project is progressing as planned with the project operator, Placer Dome, carrying all costs associated with an aggressive exploration program. Phase I, involving four stratigraphic exploration holes, is complete and Placer has commenced Phase II with a plan to drill the area hosting the high-grade #8 zone. Phase II drilling should be complete by mid-year 2001.
Financial Highlights
Three Months Ended March 31,2001 Three Months Ended March 31,2000
Revenue ($ millions) 7.90 7.90
Net earnings (loss) ($ millions) (.40) -
Earnings (loss) per share ($) (.01) -
Cash from operations per share .02 .04
Cash provided by operations ($ millions) .80 1.40
Average realized gold price for the period (US $/ounce) 259 281
Total cash operating cost (US $/ounce) 217 208
Financial Results
For the three months ended March 31, 2001, Claude recorded a net loss of $.4 million ($.01 per share) compared to break-even net earnings for the first quarter of 2000.
Total revenue generated for the three months was $7.9 million, unchanged from that reported for the first quarter of 2000. Gold revenues decreased 26% over the comparative quarter last year as a result of lower production and a decrease in the average realized price per ounce of gold. Gross oil and gas revenues increased substantially from 2000 due to increases in petroleum prices realized.
The Seabee mine contributed $4.4 million to revenue, a decrease of $1.5 million from the $5.9 million recorded a year ago. Production at the Seabee mine decreased 23% from 14,500 ounces in 2000 to 11,100 ounces this year. This reflects a delay in completion of the high grade 2d2901 stope, due to its larger than expected size, with the result that blending with lower grade ore could not be achieved. The Company believes this stope will be available for free-pull during the latter half of the second quarter and expects to achieve budget of 54,800 ounces for full year 2001. As well, there was a decrease in the average realized gold price for the period (2001 – CDN $396/US $259; 2000 – CDN $409/US $281).
For The Months Ending May 18,2001
Overview
Continued weakness in the spot price of bullion is generating growing pressure on the gold mining industry. Notwithstanding that gold consumption has exceeded gold mine production by a wide margin for more than eight years, the commodity price has refused to move up in a material fashion.
While Claude is not immune to the pressures created by the narrow margins currently being realized in the gold mining business, the Company is well positioned to survive continued weakness in gold prices.
Claude’s diversification into oil and gas in the early 1980’s continues to serve Company shareholders well. Further, the Company is free of long term debt and has a substantial working capital position.
The Seabee mine is among the most productive and lowest cost of all narrow vein underground operations. Claude believes it can sustain cash operating costs under US $200 per ounce for the foreseeable future. Seabee’s mineral reserves total 579,000 tonnes and the operation has an additional inferred mineral resource that exceeds 1,600,000 tonnes as extensions to depth of the current mine workings.
Claude’s Madsen Red Lake project is progressing as planned with the project operator, Placer Dome, carrying all costs associated with an aggressive exploration program. Phase I, involving four stratigraphic exploration holes, is complete and Placer has commenced Phase II with a plan to drill the area hosting the high-grade #8 zone. Phase II drilling should be complete by mid-year 2001.
Financial Highlights
Three Months Ended March 31,2001 Three Months Ended March 31,2000
Revenue ($ millions) 7.90 7.90
Net earnings (loss) ($ millions) (.40) -
Earnings (loss) per share ($) (.01) -
Cash from operations per share .02 .04
Cash provided by operations ($ millions) .80 1.40
Average realized gold price for the period (US $/ounce) 259 281
Total cash operating cost (US $/ounce) 217 208
Financial Results
For the three months ended March 31, 2001, Claude recorded a net loss of $.4 million ($.01 per share) compared to break-even net earnings for the first quarter of 2000.
Total revenue generated for the three months was $7.9 million, unchanged from that reported for the first quarter of 2000. Gold revenues decreased 26% over the comparative quarter last year as a result of lower production and a decrease in the average realized price per ounce of gold. Gross oil and gas revenues increased substantially from 2000 due to increases in petroleum prices realized.
The Seabee mine contributed $4.4 million to revenue, a decrease of $1.5 million from the $5.9 million recorded a year ago. Production at the Seabee mine decreased 23% from 14,500 ounces in 2000 to 11,100 ounces this year. This reflects a delay in completion of the high grade 2d2901 stope, due to its larger than expected size, with the result that blending with lower grade ore could not be achieved. The Company believes this stope will be available for free-pull during the latter half of the second quarter and expects to achieve budget of 54,800 ounces for full year 2001. As well, there was a decrease in the average realized gold price for the period (2001 – CDN $396/US $259; 2000 – CDN $409/US $281).
