Post by Franko10 ™ on Oct 7, 2004 13:11:24 GMT -5
SECOND QUARTER REPORT
For The Months Ending June 30,2002
Overview
Gold bullion prices continued to strengthen in the second quarter of 2002, averaging over US $300 per ounce and at one point touching US $330 per ounce. The weakness of the US dollar and uncertainty about a US economic recovery have been key factors in the increased price of gold. This has translated into a generally improved market sentiment towards gold stocks and, when combined specifically with interest in Claude’s Red Lake drilling program (under option to Placer Dome), has resulted in a significantly improved share price during the second quarter.
Ore grades and production at Claude’s Seabee gold mine remained below average during the second quarter, while the Company continued to make the transition from the low grade "D" zone to higher grade zones. Reserves were up by nearly 50% over the second quarter of 2001, and by the end of the quarter ore grades were climbing steadily toward the mine’s historic average of 8.5 grams per tonne. The Company expects mine production to return to historical levels of 50-55,000 ounces per year by the end of the third quarter.
The Company’s financial performance was much improved during the second quarter, with break-even cash earnings and a $.9 million improvement in the net loss position over first quarter results. Net oil and gas revenues were higher and general and administrative expenses lower in the second quarter, contributing to improved cash flow.
During the quarter, Claude filed its Form 20F application with the Securities and Exchange Commission (SEC) of the United States, which became effective July 12, 2002. This will enable Claude to broaden its US market coverage, as US brokers are more willing to make recommendations to their clients on stocks cleared by 20F.
Financial Highlights
Six Months Ended
June 30,2002 Six Months Ended
June 30,2001
Revenue ($ millions) 10.7 15.7
Net loss ($ millions) 3.0 (1.2)
Loss per share ($) .07 (.03)
Cash from (used in) operations
($ millions) (.6) 1.9
Cash from (used in) operations
per share ($) (.01) .05
Average realized gold price for
the period (US $/ounce) 301 268
Total cash operating cost (US $/ounce) 309 223
Working capital ($ millions) 8.1 9.4
Financial Results of Operations
Three months
The Company recorded a net loss of $1.0 million ($0.02 per share) for the second quarter of 2002 compared to a net loss of $.8 million ($0.02 per share) in the same period last year.
Total revenue generated for the second quarter was $5.5 million, 49% lower than the $10.7 million recorded in 2001. Gold revenues decreased by 25% over the comparative quarter last year, a result of decreased mill throughput and lower grade, though this was partially offset by higher realized bullion prices.
Cash flow provided from operations was break-even compared to $1.1 million ($.03 per share) last period. This was due to increased contributions from our oil and gas properties, as well as an increase in interest and other income.
Year to date
For the six months ended June 30, 2002, Claude recorded a net loss of $3.0 million ($0.07 per share) compared to a net loss of $1.2 million for the same period in 2001.
Total revenue generated for the first half declined 32%, from $15.7 million in 2001 to $10.7 million in 2002. Gold revenues decreased by 19% over the comparative period last year, the result of decreased production offset by higher bullion prices realized. The 51% fall in oil and gas revenues was a result of normal production decline rates and lower average realized petroleum prices, particularly natural gas prices.
The Seabee mine contributed $7.6 million to revenues for the first half of 2002 compared to $9.4 million for the first half of 2001. During the first half, the Company’s gold sales were 16,000 ounces compared to 22,800 ounces for the same period last year. Mill throughput from the low grade 2D zone between the 190 and 390 levels continued to impact gold margins. Offsetting the effect of this reduced production is the increase in average realized gold prices, period over period: (2002 – US $301/CDN $474; 2001 – US $268/CDN $411).
Total mine cash costs remained relatively unchanged at $7.8 million for the first half of 2002. As a result of the lower gold production, cash operating costs per ounce increased from US $223 in 2001 to US $309 this period. As higher-grade ore is milled during the latter half of 2002, the per ounce cost should fall and better reflect expected US $200-210 cash costs per ounce.
Oil and gas operating costs fell 22% from $.9 million to $.7 million this period. The difference is due mainly to non-recurring expenditures recorded during the first half of 2001.
General and administrative costs increased by 50% from $.8 million in the first half of 2001 to $1.2 million this period. The increase is largely attributable to the settlement of a prior year property tax assessment at the Madsen property.
Interest and other income increased period over period, a result of a prior year’s oil and gas adjustment.
Depreciation and depletion of the Company’s gold assets was $2.2 million compared to $2.9 million in the 2001 period. This reduction is a combination of increased Seabee ore reserves and a decrease in tonnes broken and mill throughput. Amortization, depreciation and depletion costs per ounce for the 2002 period were US $88 versus US $83 for the comparative period last year.
Liquidity and Financial Resources
Cash flow used in operations for the first six months was $.6 million ($0.01 per share) compared to cash flows provided of $1.9 million ($0.05 per share) for the same period in 2001. This decrease reflects lower gold and oil and gas earnings.
On June 30, 2002, short-term investments were $1.4 million, an increase of $.75 million from the beginning of the year. In addition, the long-term investment balance at June 30, 2002 was $1.2 million, compared with $.7 million at December 31, 2001.
Expenditures on our mineral and oil and gas properties in the first six months of 2002 amounted to $4.2 million, an increase of $2.2 million compared with the 2001 period. Much of this change included increased development expenditures at the Seabee mine (2002 – $2.7 million; 2001 – $1.3 million) and an aggressive exploration program concurrent with a flow through issue at the end of 2001; (2002 – $.8 million; 2001 – $.08 million).
Financing activities during the first half of the year included demand loan and capital lease repayments of $.2 million. The Company also received gross proceeds of $5.0 million, a result of issuing 5 million units at a price of $1.00 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share at an exercise price of $1.25. These warrants expire April 23, 2003.
For The Months Ending June 30,2002
Overview
Gold bullion prices continued to strengthen in the second quarter of 2002, averaging over US $300 per ounce and at one point touching US $330 per ounce. The weakness of the US dollar and uncertainty about a US economic recovery have been key factors in the increased price of gold. This has translated into a generally improved market sentiment towards gold stocks and, when combined specifically with interest in Claude’s Red Lake drilling program (under option to Placer Dome), has resulted in a significantly improved share price during the second quarter.
Ore grades and production at Claude’s Seabee gold mine remained below average during the second quarter, while the Company continued to make the transition from the low grade "D" zone to higher grade zones. Reserves were up by nearly 50% over the second quarter of 2001, and by the end of the quarter ore grades were climbing steadily toward the mine’s historic average of 8.5 grams per tonne. The Company expects mine production to return to historical levels of 50-55,000 ounces per year by the end of the third quarter.
The Company’s financial performance was much improved during the second quarter, with break-even cash earnings and a $.9 million improvement in the net loss position over first quarter results. Net oil and gas revenues were higher and general and administrative expenses lower in the second quarter, contributing to improved cash flow.
During the quarter, Claude filed its Form 20F application with the Securities and Exchange Commission (SEC) of the United States, which became effective July 12, 2002. This will enable Claude to broaden its US market coverage, as US brokers are more willing to make recommendations to their clients on stocks cleared by 20F.
Financial Highlights
Six Months Ended
June 30,2002 Six Months Ended
June 30,2001
Revenue ($ millions) 10.7 15.7
Net loss ($ millions) 3.0 (1.2)
Loss per share ($) .07 (.03)
Cash from (used in) operations
($ millions) (.6) 1.9
Cash from (used in) operations
per share ($) (.01) .05
Average realized gold price for
the period (US $/ounce) 301 268
Total cash operating cost (US $/ounce) 309 223
Working capital ($ millions) 8.1 9.4
Financial Results of Operations
Three months
The Company recorded a net loss of $1.0 million ($0.02 per share) for the second quarter of 2002 compared to a net loss of $.8 million ($0.02 per share) in the same period last year.
Total revenue generated for the second quarter was $5.5 million, 49% lower than the $10.7 million recorded in 2001. Gold revenues decreased by 25% over the comparative quarter last year, a result of decreased mill throughput and lower grade, though this was partially offset by higher realized bullion prices.
Cash flow provided from operations was break-even compared to $1.1 million ($.03 per share) last period. This was due to increased contributions from our oil and gas properties, as well as an increase in interest and other income.
Year to date
For the six months ended June 30, 2002, Claude recorded a net loss of $3.0 million ($0.07 per share) compared to a net loss of $1.2 million for the same period in 2001.
Total revenue generated for the first half declined 32%, from $15.7 million in 2001 to $10.7 million in 2002. Gold revenues decreased by 19% over the comparative period last year, the result of decreased production offset by higher bullion prices realized. The 51% fall in oil and gas revenues was a result of normal production decline rates and lower average realized petroleum prices, particularly natural gas prices.
The Seabee mine contributed $7.6 million to revenues for the first half of 2002 compared to $9.4 million for the first half of 2001. During the first half, the Company’s gold sales were 16,000 ounces compared to 22,800 ounces for the same period last year. Mill throughput from the low grade 2D zone between the 190 and 390 levels continued to impact gold margins. Offsetting the effect of this reduced production is the increase in average realized gold prices, period over period: (2002 – US $301/CDN $474; 2001 – US $268/CDN $411).
Total mine cash costs remained relatively unchanged at $7.8 million for the first half of 2002. As a result of the lower gold production, cash operating costs per ounce increased from US $223 in 2001 to US $309 this period. As higher-grade ore is milled during the latter half of 2002, the per ounce cost should fall and better reflect expected US $200-210 cash costs per ounce.
Oil and gas operating costs fell 22% from $.9 million to $.7 million this period. The difference is due mainly to non-recurring expenditures recorded during the first half of 2001.
General and administrative costs increased by 50% from $.8 million in the first half of 2001 to $1.2 million this period. The increase is largely attributable to the settlement of a prior year property tax assessment at the Madsen property.
Interest and other income increased period over period, a result of a prior year’s oil and gas adjustment.
Depreciation and depletion of the Company’s gold assets was $2.2 million compared to $2.9 million in the 2001 period. This reduction is a combination of increased Seabee ore reserves and a decrease in tonnes broken and mill throughput. Amortization, depreciation and depletion costs per ounce for the 2002 period were US $88 versus US $83 for the comparative period last year.
Liquidity and Financial Resources
Cash flow used in operations for the first six months was $.6 million ($0.01 per share) compared to cash flows provided of $1.9 million ($0.05 per share) for the same period in 2001. This decrease reflects lower gold and oil and gas earnings.
On June 30, 2002, short-term investments were $1.4 million, an increase of $.75 million from the beginning of the year. In addition, the long-term investment balance at June 30, 2002 was $1.2 million, compared with $.7 million at December 31, 2001.
Expenditures on our mineral and oil and gas properties in the first six months of 2002 amounted to $4.2 million, an increase of $2.2 million compared with the 2001 period. Much of this change included increased development expenditures at the Seabee mine (2002 – $2.7 million; 2001 – $1.3 million) and an aggressive exploration program concurrent with a flow through issue at the end of 2001; (2002 – $.8 million; 2001 – $.08 million).
Financing activities during the first half of the year included demand loan and capital lease repayments of $.2 million. The Company also received gross proceeds of $5.0 million, a result of issuing 5 million units at a price of $1.00 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share at an exercise price of $1.25. These warrants expire April 23, 2003.