Owner
Post by Franko10 ™ on Oct 7, 2004 11:12:41 GMT -5
SECOND QUARTER REPORT
For The Months Ending June 30,2001
Overview
Despite a reported healthy 5% growth in gold demand for the first quarter of 2001, the overall gold industry remained lackluster during the second quarter, with limited investor interest and gold prices continuing to trade in a narrow range.
The Company experienced lower gold production in the first half of the year, as ore grades from the D zone, the current area of mining at the Seabee, have not met expectations. The mine schedule, however, does provide for concurrent development of the B and C zones, which consistently grade higher than the D. With grades showing improvement in the D zone and with expected higher grade swell and free pull from the B and C zones, production is anticipated to steadily improve over the balance of the year. As a result, 2001 production forecasts have been adjusted to 50,100 ounces.
Improved oil and gas revenues combined with lower operating costs at Seabee have partially offset reduced gold revenues, enabling the Company to produce positive cash flow for the first half of 2001.
Financial Highlights
Six Months Ended
June 30,2001 Six Months Ended
June 30,2000
Revenue ($ millions) 15.7 16.3
Net earnings (loss) ($ millions) (1.2) .1
Earnings (loss) per share ($) (.03) -
Cash provided by operations ($ millions) 1.9 3.0
Cash from operations per share ($) .05 .08
Average realized gold price for the period
(US $/ounce) 268 283
Total cash operating cost (US $/ounce) 223 203
Working capital ($ millions) 9.4 9.3
Financial Results
Claude recorded a net loss of $1.2 million ($.03 per share) for the first half of 2001 compared to break-even net earnings for the same period in 2000.
Sales revenues of $15.7 million for the first six months of the year were $.6 million lower than the 2000 period. Gold revenues decreased 25% over last year, largely as a result of decreased production. The 68% increase in gross oil and gas revenue, a result of higher realized petroleum prices for first half of 2001, mitigated the effects of reduced gold revenues.
The Seabee mine contributed $9.4 million to revenue for the first half of 2001 compared to $12.5 million for the same period last year. Gold production fell from 30,100 ounces poured in 2000 to 22,800 ounces poured this period. Although a 6% decrease in production was budgeted, the additional decline was a result of lower ore grades from certain of our larger stopes. Gold revenues were also affected by a slightly lower average realized price (2001 – CDN $411/US $268; 2000 – CDN $415/US $283).
Gross oil, natural gas liquids and gas revenues totaled $6.4 million for the 2001 year to date, compared to $3.8 million last period. This significant increase was a result of improved petroleum prices, particularly in the natural gas sector, which saw an increase of over 166% in the average realized price.
Total operating and administrative costs fell from $11.1 million for the first six months of 2000 to $9.7 million for the first six months of 2001. The concerted effort to lower operating costs at the Seabee mine, together with a reduction in interest charges, accounted for the majority of the change.
Total mine cash costs were $7.8 million, a decrease of 13% from the $9.0 million recorded in 2000. The Seabee mine continues to minimize production costs wherever and whenever possible.
Cash operating costs per ounce increased from US $203 per ounce in the first half of 2000 to US $223 per ounce in the current period. This 10% increase is largely a result of lower gold production during the first half of this year.
Depreciation and depletion of the Company’s gold assets was $2.9 million for the first six months of 2001, compared with $2.0 million in the corresponding 2000 period. This increase is a combination of two factors: a write-down of reserves this quarter, mainly a result of lower than expected grades in the Seabee D zone; and the adoption of National Instrument 43-101. Amortization and depreciation costs per ounce for the 2001 six month period were US $83 compared to US $46 in the 2000 period.
Cash flow provided from operations for the six month period was $1.9 million ($.05 per share) compared to $3.0 million ($.08 per share) in 2000, a 37% decrease. This is due to a combination of low gold production offset by minimized production costs and a $.6 million increase in operating cash flow from our oil and gas properties.
Capital expenditures for the period ended June 30, 2001 amounted to $2.0 million, a decrease of $2.6 million from the 2000 period. Capital spending at the Seabee mine included $1.3 million (2000 - $2.2 million) for mine development and $.15 million for work on the Triangle Lake tailings dam expansion. Although Claude incurred minimal expenditures on the Madsen property for the first six months of 2001, $1.8 million was spent on Madsen exploration for the same period in 2000.
Current and long-term debt at June 30, 2001 was $.6 million. Financing activities in the first six months of 2001, undertaken to secure an existing reclamation liability, amounted to $.7 million (2000 - nil).
For The Months Ending June 30,2001
Overview
Despite a reported healthy 5% growth in gold demand for the first quarter of 2001, the overall gold industry remained lackluster during the second quarter, with limited investor interest and gold prices continuing to trade in a narrow range.
The Company experienced lower gold production in the first half of the year, as ore grades from the D zone, the current area of mining at the Seabee, have not met expectations. The mine schedule, however, does provide for concurrent development of the B and C zones, which consistently grade higher than the D. With grades showing improvement in the D zone and with expected higher grade swell and free pull from the B and C zones, production is anticipated to steadily improve over the balance of the year. As a result, 2001 production forecasts have been adjusted to 50,100 ounces.
Improved oil and gas revenues combined with lower operating costs at Seabee have partially offset reduced gold revenues, enabling the Company to produce positive cash flow for the first half of 2001.
Financial Highlights
Six Months Ended
June 30,2001 Six Months Ended
June 30,2000
Revenue ($ millions) 15.7 16.3
Net earnings (loss) ($ millions) (1.2) .1
Earnings (loss) per share ($) (.03) -
Cash provided by operations ($ millions) 1.9 3.0
Cash from operations per share ($) .05 .08
Average realized gold price for the period
(US $/ounce) 268 283
Total cash operating cost (US $/ounce) 223 203
Working capital ($ millions) 9.4 9.3
Financial Results
Claude recorded a net loss of $1.2 million ($.03 per share) for the first half of 2001 compared to break-even net earnings for the same period in 2000.
Sales revenues of $15.7 million for the first six months of the year were $.6 million lower than the 2000 period. Gold revenues decreased 25% over last year, largely as a result of decreased production. The 68% increase in gross oil and gas revenue, a result of higher realized petroleum prices for first half of 2001, mitigated the effects of reduced gold revenues.
The Seabee mine contributed $9.4 million to revenue for the first half of 2001 compared to $12.5 million for the same period last year. Gold production fell from 30,100 ounces poured in 2000 to 22,800 ounces poured this period. Although a 6% decrease in production was budgeted, the additional decline was a result of lower ore grades from certain of our larger stopes. Gold revenues were also affected by a slightly lower average realized price (2001 – CDN $411/US $268; 2000 – CDN $415/US $283).
Gross oil, natural gas liquids and gas revenues totaled $6.4 million for the 2001 year to date, compared to $3.8 million last period. This significant increase was a result of improved petroleum prices, particularly in the natural gas sector, which saw an increase of over 166% in the average realized price.
Total operating and administrative costs fell from $11.1 million for the first six months of 2000 to $9.7 million for the first six months of 2001. The concerted effort to lower operating costs at the Seabee mine, together with a reduction in interest charges, accounted for the majority of the change.
Total mine cash costs were $7.8 million, a decrease of 13% from the $9.0 million recorded in 2000. The Seabee mine continues to minimize production costs wherever and whenever possible.
Cash operating costs per ounce increased from US $203 per ounce in the first half of 2000 to US $223 per ounce in the current period. This 10% increase is largely a result of lower gold production during the first half of this year.
Depreciation and depletion of the Company’s gold assets was $2.9 million for the first six months of 2001, compared with $2.0 million in the corresponding 2000 period. This increase is a combination of two factors: a write-down of reserves this quarter, mainly a result of lower than expected grades in the Seabee D zone; and the adoption of National Instrument 43-101. Amortization and depreciation costs per ounce for the 2001 six month period were US $83 compared to US $46 in the 2000 period.
Cash flow provided from operations for the six month period was $1.9 million ($.05 per share) compared to $3.0 million ($.08 per share) in 2000, a 37% decrease. This is due to a combination of low gold production offset by minimized production costs and a $.6 million increase in operating cash flow from our oil and gas properties.
Capital expenditures for the period ended June 30, 2001 amounted to $2.0 million, a decrease of $2.6 million from the 2000 period. Capital spending at the Seabee mine included $1.3 million (2000 - $2.2 million) for mine development and $.15 million for work on the Triangle Lake tailings dam expansion. Although Claude incurred minimal expenditures on the Madsen property for the first six months of 2001, $1.8 million was spent on Madsen exploration for the same period in 2000.
Current and long-term debt at June 30, 2001 was $.6 million. Financing activities in the first six months of 2001, undertaken to secure an existing reclamation liability, amounted to $.7 million (2000 - nil).
