Claude in the black in Q1

Benefiting from higher gold prices and improved production, Claude Resources (CRJ-T) made a profit of $600,000 (or 1 per share) in the first quarter, compared with a year-earlier loss of $2 million.

Revenue between the two periods rose to $8.9 million from $5.2 million, reflecting higher prices for gold and for oil and gas. The gold business generated $5.9 million in revenue, up from $3.8 million a year earlier, while oil and gas revenue jumped 125% to $3 million. Cash flow from operations increased to $1.7 million from $600,000.

Quarterly gold production from Claude’s main asset, the Seabee mine, in northern Saskatchewan, jumped 41% to 11,700 oz., while total cash costs slipped to US$272 from US$294 per oz. The improvement in production resulted from the milling of ore from the mine’s high-grade 2B zone between the 400- and 600-metre levels. Claude realized an average of US$336 for each ounce produced, up from US$290 a year earlier.

Total mine operating costs climbed 23% to $4.8 million, owing to the development of numerous small stoping blocks.

Claude expects Seabee to produce 52,000 oz. gold at US$210-220 per oz. for all of 2003.

During the first quarter, the company began to deepen the shaft at Seabee. It is being extended 200 metres to around 600 metres below surface, which should enable miners to reach material on 500-to-800-metre levels.

At the end of March, Claude had $9.4 million in working capital and $984,000 in debt. The company’s hedge book contained outstanding forward gold contracts on 8,750 oz. of 2003 production at an average of US$321 per oz., equivalent to a market value loss of US$252,000.