Claude Resources Inc. Q4 2011 Conference Call Presentation

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  • 1. Presented By: Q4 & Annual FinancialsNeil McMillan April 2, 2012President & CEO 1
  • 2. Cautionary 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 or other expectations, beliefs, pl ans,objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserveand resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of o perations,and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actu al results todiffer materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources a nd reserves,the grade and recovery of mined ore varying from estimates, capital and operating costs varying significantly from estimates, delays inobtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchan ge rates,fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject torisks, 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-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” res ources.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 c ould 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 grea t 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 categ ory. 2
  • 3. On January 1, 2011, the Company transitioned to theInternational Financial Reporting Standards (“IFRS”). The newaccounting policies under IFRS have been used in this quarter’sinformation and related quarterly information for comparativepurposes. Further details regarding IFRS can be found in theCompany’s fourth quarter 2011 Management’s Discussion &Analysis, interim financial statement and notes thereto availableon Sedar (www.sedar.com). 3
  • 4. Neil McMillan Rick Johnson Brian SkanderbegPresident and CEO CFO, VP Finance VP, Exploration 4
  • 5. • Santoy 8 Gold Mine reached commercial production• Seabee increased Mineral Reserves and Mineral Resources from 662,000 ounces to 1,300,000 ounces from the new discoveries of Santoy Gap and L62• NI 43-101 resource calculation at Amisk Gold Project of 1,566,000 gold equivalent ounces• Claude Resources announced agreement to acquire St. Eugene Mining.• De-watering completed to the 16 th level at the Madsen Exploration Project• Rehabilitation and construction of drill chambers on the 16 th level at Madsen• Deep drilling of the 8 Zone from the 16 th level 5
  • 6. 3 months 3 months 12 months 12 months ended Dec ended Dec ended Dec ended Dec 31 2011 31 2010 31 2011 31 2010Revenues (millions) $19.9 $14.9 $69.7 $56.0Gold sold (ounces) 11,855 10,844 44,632 44,003Average realized gold price (CDN) $1,678 $1,378 $1,561 $1,238Total cash cost per ounce (CDN) $1,130 $597 $908 $709Cash flow (millions) (1) $4.3 $6.2 $22.2 $19.8 (1)Cash flow per share $0.03 $0.04 $0.14 $0.15 For an explanation of non-IFRS performance measures, refer to the “Non-IFRS Performance Measures” section in the Company’s (1) MD&A filed on www.sedar.com. 6
  • 7. 3 months 3 months 12 months 12 months ended Dec ended Dec ended Dec ended Dec 31, 2011 31, 2010 31, 2011 31, 2010Net profit (millions) ($0.2) $4.1 $9.5 $10.3Net profit per share $0.00 $0.03 $0.06 $0.08 7
  • 8. December 31, December 2011 31, 2010Cash, cash equivalents and short terminvestments & gold receivables $35.7 $10.8Debt (including leases) $14.3 $14.3Working Capital $42.4 $4.3 8
  • 9. 2012 Production• Forecast: 50,500 ounces of gold• The Company anticipates initial production at L62 in the second half of 2012.Exploration Program for 2012• 130,000 metres at Seabee Operation o 60,000 metres underground o 70,000 metres regionally• Focused on continued reserve and resource growth at the Seabee Mine, Santoy 8, Santoy Gap and L62. 9
  • 10. Seabee Property: 14,400 Hectares • Established fully-permitted infrastructure • Underexplored productive belt • $7.5 M, 130,000 m regional exploration in 2012 10
  • 11. Mineral Reserves and Mineral Resources for Seabee Gold Property, Saskatchewan. Resource Class Zone Tonnes Grade Contained (g/tonne) Gold (oz)Proven & Probable Seabee 1,062,900 6.58 224,900 Santoy 8 997,100 4.08 130,600 Total 2,059,900 5.37 355,600 Measured & Seabee 127,400 4.65 19,000Indicated Santoy 8 12,600 5.04 2,000 Porky Main 160,000 7.50 38,600 Porky West 111,000 3.10 11,000 Total 410,900 5.35 70,700Inferred Santoy Gap 2,321,000 6.63 495,000 Seabee 813,900 6.83 178,800 Santoy 8 850,000 5.46 149,300 Porky Main 70,000 10.43 23,500 Porky West 138,300 6.03 26,800 Total 4,193,200 6.48 873,400 11
  • 12. Highlights include the following:• Mineral reserves increased, net of mining depletion, to 355,600 ounces at 5.37 grams per tonne from 352,600 ounces at 5.58 grams per tonne.• Measured and indicated resources increased to 70,700 ounces at 5.35 grams per tonne from 49,600 ounces at 5.70 grams per tonne, representing a 43 percent increase from 2010.• Inferred mineral resources increased to 873,400 ounces at 6.48 grams per tonne from 260,100 ounces at 6.23 grams per tonne in 2010, representing a 236 percent increase in contained ounces year over year.• A significant portion of the increases came from the discovery and delineation of the L62 and Santoy Gap deposits. 12
  • 13. Shaft extension• From 600 metres to 980 metres• Completion date: Q3 2012Mill upgrade• Expanded to a peak capacity of 1,050 tonnes• Further expansions are currently being planned 13
  • 14. • On October 25, 2011 Claude announced that it entered into an agreement with St. Eugene to purchase all of its shares. The transaction closed on February 2nd, 2012.• Completed a NI 43-101 resource estimate of 921,000 ozs Au Eq. in Indicated and 645,000 ozs Au Eq. in Inferred category• Recent metallurgical test results returned averages of 89.4% for gold and 80.8% for silver recoveries.2012 Projects:• Amisk Resource Update• Amisk Preliminary Economic Assessment• Near-pit exploration 14
  • 15. 15
  • 16. Claude Resources - Amisk Lake Project - Grade - Tonnage Sensitivity Table Total Resource Indicated InferredAu Eq Cut-Off Au Eq Tonnage Au (gpt) Ag (gpt) Total Oz Ind Oz % Inf Oz % (gpt) 0.30 82,422,879 0.69 0.62 4.35 1,828,471 998,622 55% 824,675 45% 0.40 58,803,225 0.83 0.75 5.11 1,569,171 920,881 59% 644,854 41% 0.50 42,979,475 0.97 0.88 5.85 1,340,368 824,702 62% 512,676 38% 16
  • 17. Exploration Program• Metres: 29,000• 2 underground rigs and 1 surface rig, targeting 40 – 50 holesExploration will focus on continued testing of the 8 ZoneTrend as well as the McVeigh and Austin Tuff depthcontinuity. 17
  • 18. Starratt Olsen Madsen Mine Historic Production 2.4 M oz @ 0.30 opt Austin East164,000 oz @ 0.18 opt Underground Drill Chambers 2012 exploration target areas 8 Zone 18
  • 19. Fully operational equipment andfacilities:• 500 ton per day permitted mill• 5 compartment operating shaft to 4,125 feet• Permitted tailings pond• Environmental monitoring program in place 19
  • 20. Resource Base4,500,000 4.09 Moz4,000,0003,500,000 1,566,000 2.91 Moz3,000,0002,500,000 Amisk 1,018,000 1.96 Moz Madsen2,000,000 1,225,000 Seabee1,500,000 1,225,000 1,225,000 0.81 Moz1,000,000 1,300,000 500,000 806,000 735,000 662,000 0 2008 2009 2010 2011 20
  • 21. 2012 2012 2011 2011 $ (in millions) Metres $ (in millions) MetresSeabee $7.50* 129,600 $4.90* 100,000Madsen $6.50 29,050 $3.85 18,000Amisk $1.50 6,000 $1.74 10,000Total $15.50 164,650 $6.66 128,000 *Excluding underground expenditures. 21
  • 22. For 2012, and looking forward, the company will continue to:1) Invest in capital projects and equipment to further develop satellite deposits to increase production and to improve operating margins at the Seabee Gold Operation;2) Further exploration and development at the Seabee Gold Operation to sustain or increase reserves and resources;3) Advance surface and underground exploration drill programs at the Company’s 100 percent owned Madsen Exploration Project; and4) Expand the scope of the Amisk Gold Project, and complete a preliminary economic assessment. 22
  • 23. • Closing of SEM Acquisition • Seabee Exploration Results (Santoy Gap and L62)Q1 • Seabee Reserve and Resource Update • Amisk Resource Update • Amisk Exploration ResultsQ2 • Seabee Exploration Results (Neptune, Santoy Gap and L62) • Shaft Extension Completed at Seabee • Mill Expansion Completed at Seabee • Madsen Exploration ResultsQ3 • PEA at Amisk • Seabee Exploration Results (Santoy Gap and L62) • Madsen Exploration ResultsQ4 23
  • 24. Claude Resources Inc. Experience. Stability. Potential. Creating the Capacity to Discover. Develop. Deliver.TSX: CRJ NYSE Amex: CGR 200, 224- 4th Avenue South Saskatoon, Saskatchewan, S7K 5M5 Canada P. 306.668.7505 F. 306.668.7500 24