Claude Resources (CRJ.TSX, AMEX: CGR) announced financial and operating results for the second quarter of 2011. The Canadian-based gold producer reported net profit of $5.2 million, a 136% increase over the second quarter of 2010. For the six months ended June 30, 2011, Claude Resources earned $7.0 million, compared to $0.6 million in the prior year period.
The two major capital projects at Seabee, the shaft extension and mill expansion, are ongoing and are expected to allow Seabee to decrease unit cash costs and increase production. Exploration at Madsen has progressed as expected. In the second quarter, a second drill rig was added on the 16th level in the Madsen Mine to target the down plunge and strike extensions of the known high grade 8 Zone. The Phase II exploration program at Madsen will continue through the balance of this year and into 2012.
* Gold revenue from the Company’s Seabee Gold Operation increased 20% to $18.2 million.
* Cash flow from operations before net changes in non-cash working capital rose 66% to $8.3 million.
* Gold production increased 6% to 12,624 ounces.
Neil McMillan, President and CEO:
“The Seabee Operation continues to improve on both the mining and exploration fronts. As Seabee provides positive free cash flow, the Company is able to invest in more regional exploration, which to date has been very successful…The Company balance sheet is excellent and allows the Company to aggressively develop and explore at all three projects.”
Catherine Gignac, Northland Securities:
“Claude is well financed to advance its 2011 development and exploration plans. We look to multiple value creation opportunities in 2011 from the Seabee, Madsen and Amisk assets to drive Claude’s shares higher. Catalysts include infrastructure improvements and expansions, mine life extension, and resource growth at exploration properties.”