Q2 2012 Conference Call and Webcast Presentation


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Q2 2012 Conference Call and Webcast Presentation

  1. 1. Q2 FinancialsP resented By:Neil M cM illanP resident & CEOAugust 13, 2012 1
  2. 2. Cautionary StatementCautionary 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, plans,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 operations,and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results todiffer materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and 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 exchange 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” 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. 2
  3. 3. Q2 2012 Highlights• Production of 12,166 ounces of gold.• Net profit of $0.7 million.• Cash costs decreased to CDN $1,082 from CDN $1,236 in the first quarter.• Increased land position at the Amisk Gold Project by staking 14 new mineral claims covering an additional 16,000 hectares.• 2 underground rigs and 1 surface rig continued to focus on testing the 8 Zone Trend as well as the McVeigh and Austin Tuff depth continuity at the Madsen Gold Project. 3
  4. 4. Financial Highlights 3 months 3 months ended June 30 ended June 30 2012 2011 Revenues (millions) $20.1 $18.2 Average realized gold price (CDN) $1,633 $1,469 Total cash cost per ounce (CDN) $1,082 $717 Cash flow from operations before net changes in non-cash operating working $5.3 $8.3 capital (millions) (1) (1) Cash flow per share $0.03 $0.05(1)For an explanation of non-IFRS performance measures, refer to the “Non-IFRS Performance Measures” section in the Company’sMD&A filed on www.sedar.com. 4
  5. 5. Operational Highlights 3 months 3 months ended June 30 ended June 30 2012 2011Gold production (oz) 12,166 12,624Gold sales (oz) 12,306 12,418Net profit (millions) $0.7 $5.2Net profit per share $0.00 $0.03Cash Operating Costs (CDN$/oz)(2) $1,082 $717Cash Operating Costs (US$/oz)(2) $1,071 $741(2) Cash operating cost per ounce of gold is a non-IFRS performance measure. For an explanation of non-IFRSperformance measures refer to the “Non-IFRS Performance Measures” section of the Company’s MD&A. 5
  6. 6. Financial Position June 30 2012Cash and cash equivalents (millions) ($1.6)Short term debt (millions) $18.2Long term debt (millions) $1.0Common shares outstanding, basic (millions) 173.7Common share outstanding, fully diluted (millions) 183.2 6
  7. 7. Operations and Projects 7
  8. 8. Seabee Gold Operation2012 Production• Forecast: 48,000 – 50,000 ounces of gold• The Company anticipates initial production at L62 deposit in the fourth quarter of 2012.Exploration Program for 2012• 110,700 metres at Seabee Operation o 60,000 metres underground (35,000 m completed) o 50,700 metres regionally (35,000 m completed)• Focused on continued reserve and resource growth at the Seabee and Santoy 8 Mines and the Santoy Gap and L62 deposits. 8
  9. 9. Seabee PropertySeabee Property: 14,400 Hectares • Established fully-permitted infrastructure • Underexplored productive belt • $5.9 M, 50,700 m regional exploration in 2012 9
  10. 10. Santoy Gap• Current resources of 495,000 ounces at 6.63 g/t (3 gram cut off) • 367,000 ounces at 8.75 g/t (5 gram cut off)• 65 holes completed in 2012 – focused on step-out and infill drilling• Santoy region (Santoy Gap and Santoy 8) resource currently at 777,000 ounces 10
  11. 11. Reserve & ResourceMineral Reserves and Mineral Resources for Seabee Gold Property, Saskatchewan(December 31, 2011) 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 19,000 Indicated 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 70,600 Inferred 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. 12. Capital Projects: Seabee Gold OperationMill Expansion• Peak capacity expanded to 1,050 tonnes per day. Further expansions are being evaluated.• During the third quarter, a planned mill shutdown will coincide with the shaft tie-in.Shaft Extension• Shaft will be deepened from 600 metres to 980 metres.• Development is running on schedule and anticipated to be completed during the third quarter.Camp Upgrades• Completion targeted for mid-third quarter and occupancy slated by the end of the same quarter. 12
  13. 13. Amisk Gold Project• Work on the external Preliminary Economic Assessment as well as an evaluation of the underground potential and detailed exploration continued during the second quarter.• The Company increased its land position at its Amisk Gold Project by staking 14 new mineral claims covering an additional 16,000 hectares on the western side of its existing land package. 13
  14. 14. Amisk Location 14
  15. 15. Amisk Pit Shell 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% 15
  16. 16. Madsen Gold ProjectExploration Program• Metres: 23,550• 2 underground rigs and 1 surface rig, targeting 30 holesExploration is focused on continued testing of the 8 ZoneTrend as well as the McVeigh and Austin Tuff depthcontinuity. 16
  17. 17. Madsen Property: Red Lake Camp 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 17
  18. 18. Madsen InfrastructureFully operational equipment andfacilities:• 500 ton per day permitted mill• 5 compartment operating shaft to 4,125 feet• Permitted tailings pond 18
  19. 19. Exploration Summary 2012 2012 $ (in millions) MetresSeabee $5.90 50,700Madsen $5.40 23,550Amisk $1.20 3,750Total $12.50 78,000 19
  20. 20. 2012 OutlookFor 2012, and looking forward, the Company will continue to:1) Pursue best practices in the areas of safety, health and the environment;2) Increase production and improve unit operating costs at the Seabee Gold Operation by investing in capital projects and equipment to further develop satellite deposits;3) Sustain or increase reserves and resources at the Seabee Gold Operation through further exploration and development;4) Advance surface and underground exploration drill programs at the Companys 100 percent owned Madsen Exploration Project with continuation of Phase II of underground drilling from the 16th level drill platform;5) Expand the scope of the Amisk Gold Project, and complete a preliminary economic assessment; and6) Updating the Life of Mine Plan at the Seabee Gold Operation. 20
  21. 21. Claude Resources Inc. Experience. Stability. Potential. Creating the Capacity to Discover. Develop. Deliver.TSX: CRJ NYSE MKT: CGR 200, 224 - 4th Avenue South Saskatoon, Saskatchewan, S7K 5M5 Canada P. 306.668.7505 F. 306.668.7500 21