Claude Resources Inc. AGM Presentation


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  • Marc to go through conference call script protocol
  • Don’t spend any time on this slide
  • Communicate highlighted key words in each bullet Busy yet successful quarter on all fronts
  • Q3 production was the highest quarter production since Q4 2009 of 15,084. In over 2 yrs. 15% decrease from Q2 and a 6% increase from Q3 2011Discuss Q4 and Q1 expectations and how the shaft extension is not expected to impact productionExplain why costs are highDiscuss current trend and our plans to maintain it. Jamieson, shaft extension, improved controls on inventory, what else?
  • Revenue is increasing while gold price has remained stagnant over the last several quartersRevenue 29% increase over Q3 2011Revenue 20% increase on a nine months comparison of 2011 vs 2012
  • Discuss per share basis CF - .09. EPS - .02Discuss trend and communicate what we expect for future.Discuss current trading multiples (less than 5X CF, less than 10X Earnings, 0.4 NAV, 0.7 book value)
  • Discuss that the surface/regional exploration is completeDiscuss managements expectations for Q3 and answer the question of whether the grade or tonnes were budgeted Discuss what we expect to see in Q4
  • Discuss the size of the Santoy Gap in relation to the other deposits in the campDiscuss the ounce per vertical metre at the Gap in comparison to the rest of the campDiscuss the release of the remaining holes from the 2012 drill program and the resource updateDiscuss the potential that exists with another 500 tpd ore body at the camp and how much time and capital that is required to bring it into production or lack thereof
  • Mostly discuss how the Company expects to release a project updateDiscuss the value the Madsen project has in the fact that there is 1.2 million ounces at 9 gpt with full infrastructure Discuss that the Madsen project will be apart of the Company’s long term growth strategy
  • Refer back to the exiciting news at Seabee and the GapCommunicate upcoming new releasesMadsenGap Drill resultsGap resource update
  • Marc to go through conference call script protocol
  • Claude Resources Inc. AGM Presentation

    1. 1. 1Annual GeneralMeetingPresented By:Neil McMillanPresident & CEOMay 9, 2013
    2. 2. 2Cautionary Note Regarding Forward-Looking InformationThis document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans andbeliefs. 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 orother 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 andtiming 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 toestablish estimated resources and reserves, the grade and recovery of mined ore varying from estimates, capital and operating costsvarying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other projectapprovals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and otherfactors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differmaterially from expected results.Potential shareholders and prospective investors should be aware that these statements are subject to known and unknownrisks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-lookingstatements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-lookinginformation involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibilitythat the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to updatepublicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factorswhich affect this information, except as required by law.Cautionary Note to U.S. Investors Concerning Resource EstimateThe resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the CanadianSecurities Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United StatesSecurities and Exchange Commission (the “SEC”). In this document, we use the terms “measured”, “indicated” and “inferred” resources.Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. miningcompanies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves”. Under United Statesstandards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could beeconomically and legally extracted at the time the determination is made. United States investors should not assume that all or anyportion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount ofuncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assumethat “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.Cautionary Statement
    3. 3. 3• The Company’s mission is to create and deliveroutstanding stakeholder value through theexploration, development, and mining of gold andother precious metals• Its vision is to be highly valued by all stakeholders forits ability to discover, develop and produce gold andother precious metals in a safe, environmentallyresponsible and profitable manner.Mission & Vision
    4. 4. 4• 3 Canadian gold assets:– Low risk jurisdictions– Located in proven mining regions– Each hosting over 1 million ounces of gold• 20+ years of operating experience• Excellent growth potential at Seabee• Focused on cost reduction initiatives• Excellent reserve and resource growth potentialnear current mining infrastructureClaude Resources Today
    5. 5. 5Resource Growth391,000617,000976,3001,815,4001,545,400196,0001,135,2001,576,3001,919,6002,193,200219,000208,200352,600355,600 311,1000500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0002008 2009 2010 2011 2012Global Resource BaseDecember 31, 2012Proven &ProbableMeasured&IndicatedInferredReserves:• Grade 14% to 6.14 g/t from 5.37 g/t.• Ounces 13% or 44,500 after mining49,570 ounces in 2012.• Anticipate significant reserve growth in2013 from Santoy GapIndicated and Measured:• Grade 46% to 7.82 g/t from 5.35 g/t.• Ounces 344,200 ozs from 70,700 ozs.Inferred:• Ounces 31% as 270,000 ounces fromSantoy Gap was upgraded into theMeasured and Indicated category
    6. 6. 62012 Highlights Net profit of $5.6 million, or $0.03 per share. Cash flow from operations* of $25.8 million, or $0.15 per share. Cash cost per ounce of gold* for 2012 of $997 (U.S. $998). Increased revenue by 16% to $80.8 million. Produced 49,570 ounces after achieving a record mill throughput of 275,235tonnes at 5.86 g/t. Mineral Reserves grade at the Seabee Gold Operation increased by 14%. Measured and Indicated Resources increased to 344,200 ounces from70,700 ounces and the grade increased 46% to 7.82 g/t from 5.35 g/t yearover year. Expanded debt facilities with Canadian Western Bank and Crown CapitalPartners. Surpassed one million ounces of total production at the Seabee GoldOperation. Shaft extension project was completed.* See description and reconciliation of non-IFRS performance measures in the “Non-IFRS Performance Measures andReconciliations” section of the Company’s 2012 Annual MD&A available on
    7. 7. 7Positive Trends in Production& Cash Costs02,0004,0006,0008,00010,00012,00014,00016,000Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Ounces Produced$0$200$400$600$800$1,000$1,200$1,400Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Cash Cost Per Ounce (*)(CDN$ per ounce)Q4 2012: 12,757 ounces Q4 2012: CDN $822* See description and reconciliation of non-IFRS performance measures in the “Non-IFRS Performance Measures and Reconciliations” section of theCompany’s 2012 Annual MD&A available on
    8. 8. 8Increasing Revenue &Continued Strong Gold Price$0.0$5.0$10.0$15.0$20.0$25.0Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Revenue($ millions)$1,250$1,300$1,350$1,400$1,450$1,500$1,550$1,600$1,650$1,700$1,750Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Average Realized Gold Price(CDN$ per ounce)Q4 2012: $21.3 million Q4 2012: CDN $1,668
    9. 9. 9Increasing Cash Flow & Net Profit$0.0$1.0$2.0$3.0$4.0$5.0$6.0$7.0$8.0$9.0$10.0Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Cash Flow From Operations BeforeNet Changes in Non-CashOperating Working Capital (*)($ millions)-$1.0$0.0$1.0$2.0$3.0$4.0$5.0$6.0Q12011Q22011Q32011Q42011Q12012Q22012Q32012Q42012Net Profit (Loss)($ millions)Q4 2012: $2.4 millionQ4 2012: $9.4 million* See description and reconciliation of non-IFRS performance measures in the “Non-IFRS Performance Measures and Reconciliations” section of theCompany’s 2012 Annual MD&A available on
    10. 10. 10• During the first and second quarters of 2013, the Companyexpanded its debt facilities.– $25.0 million with Canadian Western Bank (up from$14.0 million)– $25.0 million with Crown Capital Partners Inc. (closed onApril 5, 2013)• The new debt facilities are expected to permit theretirement of the Company’s outstanding debentures, allowfor the development of Santoy Gap, the Seabee Mine andfor working capital purposes.Financial Capacity
    11. 11. 11Operations and Projects
    12. 12. 12Seabee Gold Operation2012 Production• Met forecast production of 48,000 – 50,000 ouncesof gold with 49,570 ounces• Unit cash costs of $997 CDN; 10% higher than 2011unit cash costs of $908 CDN.• L62 Zone production tonnage began during thefourth quarter• Staked an additional 3,350 hectares (total landpackage of 17,200 ha)Exploration Program• 101,000 metres at Seabee Operation in 2012o 60,000 metres undergroundo 41,000 metres regionally• 2013 exploration will focus on near-mine targets atSeabee and Santoy as well as infill drilling.
    13. 13. 13Santoy Gap• Indicated Mineral Resources of 281,000 ounces at 8.80 g/t (NI 43-101 compliant)• Inferred Mineral Resources of 357,000 ounces at 5.92 g/t (NI 43-101 compliant)• Initiated exploration ramp to the Santoy Gap from current mining infrastructure –currently 485 metres into the 800 metre ramp
    14. 14. 14Amisk Gold Project• 100% ownership• 40,373 hectare property• 1.6 million ounces in NI 43-101 resourcecalculation• Proven mining district and “mining friendly”community• Greenfield site is close to infrastructure• Large bulk mineable potential• Mineralization begins at surface and has been drilltested to approximately 600 metres below surfaceNI 43-101 Resource and PEA to be completedin 1H 2013
    15. 15. 15Amisk Location
    16. 16. 16Madsen Gold ProjectProject Overview:• 100% ownership• 1.23M oz resources (NI 43-101 compliant)• Historic production of 2.45 million ounces of gold from1938 to 1976• 10,000 acre land package• Fully permitted mill, shaft and tailings managementfacility• Similar type of geology to that of Goldcorp’s Red LakeAssetsExploration Program• 19,000 metres completed in 2012• Results from the 2012 drill program extended the 8 Zonesystem at depth and confirmed conceptual potentialbeneath the Austin Tuff.• The Company is focused on an internal scoping levelanalysis of the Madsen Gold Project in 2013.
    17. 17. 17Madsen Property
    18. 18. 182013 Outlook• Forecast gold production of 50,000 to 54,0000 ounces– Approximately 60% from Seabee and 40% from the Santoy 8• Unit costs are estimated to improve modestly from 2012cash costs of CDN $997• Q1 production was lower than budgeted but annualguidance maintained• Ongoing cost reduction and cash flow optimization plans
    19. 19. 19Claude Resources Inc.Experience. Stability. Potential.Creating the Capacity toDiscover. Develop. Deliver.TSX: CRJ NYSE MKT: CGR200, 224 - 4th Avenue SouthSaskatoon, Saskatchewan, S7K 5M5CanadaP. 306.668.7505F. 306.668.7500E:
    20. 20. 20Annual GeneralMeetingPresented By:Neil McMillanPresident & CEOMay 9, 2013