Claude Reports Record Gold Production and Cash Flow
SASKATOON, March 10 /CNW/ - Claude Resources Inc. is pleased to report
the achievement of record gold production and cash flows for the year ended
December 31, 1998.
Claude's Seabee mine produced 60,200 ounces of gold for the year. This
translated into Company cash flows of $11.5 million ($.45 per share), and net
earnings from operations of $6.4 million ($.25 per share). After a $1.2
million write down of oil and gas asset values and the establishment of an
additional $2.8 million provision for foreign currency fluctuations, net
earnings were $2.7 million ($.10 per share).
This compared to 1997 gold production of 58,500 ounces, cash flows of
$9.6 million ($.56 per share) net earnings from operations of $4.7 million
($.27 per share). After a $2.0 million provision for foreign currency
fluctuations which was more than offset by a $2.3 million positive adjustment
to the estimated future participation liability to Western Canadian Shopping
Centres, net earnings were $5.1 million ($.29 per share).
Cash operating costs at the Company's Seabee mine were reduced by 22% to
US $168 per ounce in 1998 compared to US $215 per ounce in 1997. Mill
processing yielded an average grade of 9.27 grams per tonne for the year which
is below the 9.98 grams per tonne average grade of the mine's reserve base.
The financial results from Claude's Madsen gold mine acquired during the year
are not reflected in the operating results as the project was in the
preproduction stage at year end.
Despite the continued erosion of both gold and oil prices during the
year, the Company's balance sheet continued to strengthen. With the
acquisition of Madsen Gold Corp. in 1998, Claude's assets more than doubled to
$72.9 million with working capital remaining stable at $10.1 million. This
growth has been achieved without encumbering the Company with any fixed term
debt obligations.
A significant event occurred on February 17, 1999, when the Company,
having fulfilled all its obligations under the Participation Agreement entered
into with Western Canadian Shopping Centres in 1993, obtained a release of all
security provided pursuant to the Agreement.
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CONSOLIDATED BALANCE SHEETS
DECEMBER 31
(THOUSANDS)
1998 1997
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ASSETS
Current assets:
Cash $ - $ 2,252
Brokerage deposit 636 -
Receivables 6,838 2,259
Inventories 8,550 8,516
Prepaids and other 1,122 785
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17,146 13,812
Agreement receivable 1,590 -
Oil and gas properties 2,856 3,143
Mineral properties 51,283 18,478
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72,875 35,433
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank indebtedness 537 -
Payables 4,690 1,898
Current portion of estimated
participation liability - 192
Current portion of other liabilities 1,853 1,010
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7,080 3,100
Estimated participation liability - 308
Other liabilities 2,898 1,427
Future site reclamation costs 2,088 750
Shareholders' equity
Share capital 46,982 18,675
Retained earnings 13,827 11,173
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60,809 29,848
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$72,875 $35,433
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CONSOLIDATED STATEMENTS OF EARNINGS
YEAR ENDED DECEMBER 31,
(THOUSANDS)
1998 1997
---- ----
REVENUES: $26,809 $26,803
Gold
Oil and gas:
Gross revenue 5,643 7,794
Crown royalties (913) (1,184)
Alberta Royalty Tax Credit 549 628
Overriding royalties (2,432) (3,246)
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Net oil and gas revenue 2,847 3,992
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29,656 30,795
EXPENSES:
Gold 15,510 17,706
Oil and gas 2,018 2,138
General and administrative 1,474 2,022
Interest and other income (943) (721)
Provision for income taxes 92 54
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18,151 21,199
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Earnings before the undernoted items 11,505 9,596
Depreciation, depletion and reclamation:
Gold 4,583 4,093
Oil and gas 506 796
Write down of oil and gas properties 1,209 -
Adjustment to estimated participation
liability (262) (2,312)
Provision for foreign currency fluctuations 2,815 1,959
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Net earnings $ 2,654 $ 5,060
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CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31
(THOUSANDS) 1998 1997
---- ----
Retained earnings, beginning of year $ 11,173 $ 6,113
Net earnings 2,654 5,060
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Retained earnings, end of year $ 13,827 $ 11,173
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CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
YEAR ENDED DECEMBER 31
(THOUSANDS)
1998 1997
---- ----
Cash provided from (used in):
Operations:
Net earnings $ 2,654 $ 5,060
Non cash items:
Depreciation, depletion and reclamation 5,089 4,889
Write down of oil and gas properties 1,209 -
Adjustment to estimated
participation liability (262) (2,312)
Provision for foreign currency
fluctuations 2,815 1,959
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Cash from operations 11,505 9,596
Net change in operating working
capital:
Receivables (4,526) 1,703
Inventories 78 154
Prepaids and others (337) 31
Payables (1,612) (572)
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5,108 10,912
Investing:
Oil and gas properties (1,428) (1,252)
Acquisition of Madsen Gold Corp. (9,664) -
Acquisition of Tartan Lake gold mine (2,642)
Mineral properties (18,109) (14,309)
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(31,843) (15,561)
Financing:
Brokerage deposit (636) -
Agreement receivable (1,590) -
Repayment of estimated participation
liability (238) (1,132)
Other liabilities (701) 197
Repayment of other long-term
liabilities (1,196) -
Issue of common shares 24,186 2,470
Issue of special warrants 4,121 -
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23,946 1,535
------- -------
Decrease in cash position (2,789) (3,114)
Cash position, beginning of year 2,252 5,366
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Cash position, end of year $ (537) $ 2,252
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%SEDAR: 00000498E
-30-
For further information: Arnie E. Hillier, Vice Chairman, CEO, Neil
McMillan, President, (306) 668-7505 |
