Claude posts solid results

Record production from the Seabee gold mine northeast of La Ronge, Sask.

helped make 1997 the best year ever for Claude Resources (CRJ-T).

Revenues for the year ended Dec. 31, 1997 totalled $34.6 million, up from a restated $28.1 million during 1996. Net earnings were $5.1 million (or 29 per share) compared with a restated loss of $1.7 million (11 per share) in 1996.

Cash from operations totalled $9.6 million (56 per share) in 1997 compared with $4.5 million (31 per share) the previous year.

Oil and gas production accounted for approximately 20% of Claude’s net earnings and cash flow in 1997.

The fourth quarter of 1997 produced net earnings of $1.7 million (10 per share) and cash from operations of $2.3 million (13 per share).

Claude’s gold production totalled 58,500 oz. during 1997, up from 36,709 oz.

during 1996, when production levels were hurt by lower head grades at Seabee and by a fire that destroyed the mine’s main transformer and substation.

Claude’s realized gold prices during 1997 averaged US$325, down from US$389 per oz. the previous year. Higher ore grades and lower operating costs resulted in a cash cost of US$215 per oz. in 1997.

Claude expects 1998 gold production at Seabee to equal or better 1997’s production, and to come in at a cash cost of US$208 per oz. gold.

In other news, Claude recently closed a $13.6-million special-warrants financing and is proceeding with its acquisition of Madsen Gold (MGF-T) (T.N.M. Feb. 23-Mar. 1/98).

Claude is issuing roughly 6.8 million special warrants at $2 each, with the proceeds to be used for development work, retirement of debt and working capital at the Madsen gold mine in the Ontario’s Red Lake mining district.