Claude Resources Inc. 2015 Denver Gold Forum Presentation

33 %
67 %
Information about Claude Resources Inc. 2015 Denver Gold Forum Presentation

Published on September 23, 2015

Author: ClaudeResourcesInc

Source: slideshare.net

1. Corporate Presentation September 2015

2. 2 Cautionary Note Regarding Forward-Looking Information This document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans and beliefs. 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 reserve and 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 to differ 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 in obtaining 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 to risks, 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-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law. Cautionary Note to U.S. Investors Concerning Resource Estimate The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian Securities Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities 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. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves”. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category. Cautionary Statement

3. 33 Corporate Summary Canadian gold producer with over 20 years experience • Produced over 1 million ounces from Seabee Gold Operation • Each asset hosts +1 million ounces of gold • Low risk and proven mining jurisdictions Low cost and profitable • 2015 Unit cash cost (1) guidance of $730-$800 (US $580-$635) • 2015 All in sustaining cost (1) guidance $1,100-$1,200 (US $875-$950) • H1 2015 net earnings of $15.4 million, $0.08 per share Strong financial position • $20.9 million of cash & bullion (2) (at June 30, 2015) • $20.8 million of long-term debt (at June 30, 2015) Seabee Gold Operation (Seabee Mine and Santoy Mine Complex) Amisk Gold Project (1) See description and reconciliation of non-IFRS financial measures in the “Non-IFRS Financial Measures and Reconciliations” section of the Company’s Q2 2015 MD&A (2) Cash and bullion relates to current cash on hand of $16.8 million and $4.1 million of bullion (gold poured in dore bars, not yet been sold and valued at market prices)

4. 44 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 The New Story …and we are delivering results! We recognized what we needed to improve… Deliver Shareholder Value Production Growth Low Cost Profitable Strong Balance Sheet

5. 5 Operating Execution  Mine sequencing and higher grade Santoy Gap ore replacing low grade Santoy 8 ore  Positive Alimak mining method results  Future head grade to come more in-line with reserve grades  Record safety and environmental performance  Produced 74,584 ounces over the last 4 quarters Production Results Q2 2015 Q2 2014 YTD 2015 YTD 2014 Tonnes Milled 74,781 79,746 142,030 144,116 Head Grade (g/t) 8.88 7.70 9.49 6.83 Recovery 96.5% 95.0% 96.2% 95.0% Gold Ounces Produced 20,619 18,742 41,686 30,086 Sold 20,534 17,690 37,860 28,555 Performance Driven by Better Ore Bodies and Mining Method

6. 6 Delivering Record Earnings (3) Cash flow from operations before net changes in non-cash operating working capital. Financial Results (all $ amounts in CDN$ unless otherwise stated) Q2 2015 Q2 2014 YTD 2015 YTD 2014 Revenue (000’s) $29,739 $24,718 $55,922 $40,342 Net earnings (loss) (000’s) $10,245 $3,327 $15,367 ($1,784) Earnings (loss) per share (basic and diluted) $0.05 $0.02 $0.08 ($0.01) Cash flow from operations (1) (3) (000’s) $15,645 $9,863 $24,913 $11,647 Cash flow from operations (1) (3) per share $0.08 $0.05 $0.13 $0.06 Total cash costs per ounce (1) $623 $753 $647 $841 Total cash costs per ounce (1) (US$) $507 $691 $524 $767 All-in sustaining cost per ounce (1) $954 $1,065 $1,146 $1,390 All-in sustaining cost per ounce (1) (US$) $776 $977 $928 $1,267 A Profitable Gold Producer at Current Gold Prices

7. 77 Stronger Balance Sheet  Debt reduction through $300,000/month principal payments ($3.6 million annually)  Strong liquidity position with cash and bullion (2) of $20.9 million and an undrawn line of credit of up to $8.5 million (at June 30, 2015)  Evaluating options to reduce cost of capital De-Risked Balance Sheet & Improved Financial Structure $(8.0) $(8.6) $(1.2) $(5.6) $15.1 $11.2 $18.9 $20.9 $34.2 $33.2 $27.2 $26.1 $23.5 $22.6 $21.7 $20.8 -$10 -$5 $0 $5 $10 $15 $20 $25 $30 $35 Q2 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Strong Financial Position (in C$ millions) Cash & bullion Total Debt

8. 88 A Compelling Story 0 2 4 6 8 10 12 ♦TGZ CRJ AR PRU OGC LSG DPM ♦P KGI AUQ RIC P/CF P/CF 2015 P/CF 2016 Source: Bloomberg, Cormark 5.68 5.86 5.11 7.32 6.8 to 7.3 0 1 2 3 4 5 6 7 8 9 - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 2011A 2012A 2013A 2014A 2015E Growing Production and Grades Production Grade $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 CRJ *KGI SAS RIC WDO Average Peer Leading Cost Performance (1) YTD In CDN$ Cash Costs/Oz All in Sustaining/Oz CDN Au $ - $1,475 Valuation* P/CF P/E CRJ 3.0X 5.5X Jr. Gold Avg. 7.0X 15.0X *Based on analyst consensus and share price as of September 10, 2015.

9. 9 (1) See footnotes located on page 17 Operations and Projects

10. 10 Prospective Gold Belt Seabee Property: 17,200 Hectares • Large land position – 19,950 Hectares • Control the entire greenstone belt • Underexplored gold camp • Well established infrastructure Over 1 million ounces produced…..and much more to go

11. Key Drivers: Santoy Gap Production Area Higher Grade + Wider Veins = More Ounces Per Vertical Metre 11 3 years of production developed by the end of 2015  2,000 ounces per vertical metre (Seabee: ~ 1,000 oz/vertical metre)  Higher reserve grade with opportunity to increase  Decreased production risk with the addition of multiple long-hole mining fronts  Higher margin ounces displaced lower margin ounces and optimized mine plan for improved cash flow  Time to production from discovery = 2.5 years

12. Key Drivers: Santoy Gap Total Mine Production by Type/Year Sum of Tonnes Mined Sum of Ounces Grade Development (May 2014 to Present) 79,220 19,798 7.77 Production (May 2014 to Present) 44,968 13,897 9.61 2014 47,594 12,182 7.96 2015 76,594 21,513 8.74 Total 124,188 33,695 8.44  Production well-ahead of schedule and pre- feasibility design  Reconciling above reserves and resources on ounces and below on tonnage  Infrastructure upgrades on-going for 600-700 tpd profile in 2016  Forecast to be 60% of 2015 production  ~10 year mine life at current reserves and resources 12 0 2,500 5,000 7,500 10,000 12,500 15,000 0 10,000 20,000 30,000 40,000 50,000 60,000 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 2016 E QuarterlyOz QuarterlyTonnage Santoy Gap Quarterly Production Profile Budget T Actual T Budget Oz Actual Oz

13. 13 Key Drivers: Seabee Mine Illustration of Alimak Mining process  Alimak mining method continues to perform well – dilution rates continue to be better than budget  Reduced underground waste development and increased production rates :  Ability to mine 100 metre high zone in 9 months vs 16-18 months  Reduced annual development cost by approximately $5.0 million  Forecast to be 40% of 2015 annual gold production tonnage Faster, Cheaper  More Productive Utilizing Alimak Mining Method for Improved Efficiency Seabee Mine

14. 14 Focused on Delivering Higher Margin Ore to the Mill  Change in mining method at Santoy Gap (Transverse vs. Long-hole) increased grade and reduced dilution  Santoy Gap mineral reserve grade increased by 35% to 7.64 g/t from 5.68 g/t  The 45% increase in Inferred ounces was driven by the significant expansion of the Santoy 8 ore body  A significant 2015 underground drilling program of ~65,000 metres is expected to drive mineral reserve and mineral resource growth Sustainable Grades and Resources * See 2014 Annual MD&A for footnotes to the Mineral Resource Statement. Seabee Gold Operation Mineral Reserves and Mineral Resources* (as of November 30, 2014) P&P Reserves 2014 2013 Change Grade 7.03 5.70 23% Ounces 299,000 422,900 -29% M&I Resources Grade 5.98 6.91 -13% Ounces 125,200 175,200 -29% Inferred Resources Grade 7.96 7.21 10% Ounces 847,300 582,900 45%

15. 15 2015 Exploration – Santoy Mine Complex SYSTEM REMAINS OPEN AT DEPTH  2014 underground drilling demonstrated economic grades and widths  SUG-14-048 – 26.77 g/t over 8.7 m  Major step-out holes among the highest gram-metre product to date in the camp  JOY-13-690 – 330.35 g/t over 1.16 m & JOY-13-692 – 30.08 g/t over 7.86 m  Budgeted 6,000 metres of underground exploration drilling in 2015 2015 & 2016 Drill Target Area 2.5 km Strike Length Excellent Growth Opportunity 2016 Drill Target Area

16. 16 2015 Exploration - Seabee Priority Targets  Seabee near-mine environment remains very prospective, underexplored and is a very low-cost environment to explore (cost of drilling is approx. $20/metre )  Targets identified and ranked based on specific criteria:  Grade and Structure of historical drillhole intercepts vs. Grade Potential  Structural Endowment and Accessibility of the overall structure  2015 drilling will test up to 7 priority UG targets totalling 10,000 metres  Leveraging Seabee infrastructure:  50,000 to 100,000 ounces lenses can be economic L62 Deposit 2015 Targets Seabee Mine Infrastructure

17. 17 A Profitable Gold Miner Our Strategies are Delivering Results  Record Earnings: net earnings of $15.4 million, or $0.08 per share  a $17.2 million improvement from H1 2014  Growing Production: gold production of 41,686  39% increase vs H1 2014  Higher Grades: mill head grade of 9.49 g/t  39% increase vs H1 2014  Peer Leading Cost Performance:  Cash cost per ounce (1) of $647 (US $524)  23% decrease vs H1 2014  All-in sustaining cost per ounce (1) of $1,146 (US $928)  18% decrease vs H1 2014  Strong Balance Sheet: increased cash and bullion (2) to $20.9 million and decreased debt to $20.8 million (at June 30, 2015)

18. 18 2015 Outlook  Increased gold production guidance of 68,000 to 72,000 ounces (was 60,000 to 65,000)  Lowered unit cost guidance  Cash costs per ounce to $730 - $800 (US $580 - $635*)  AISC per ounce to $1,100 - $1,200 (US $875 - $950*)  FCF in 2015 @ ~1,250 Au/oz (US $990 Au/oz*)  FCF margin of ~15% @ CDN $1,450/oz Our focus remains on production growth, cost containment and margins *Forecast uses CDN$/U.S.$ exchange rate of $1.26, at CDN$ 1,450/oz and mid-point of production and cost guidance

19. 19 (1) See footnotes located on page 17 TSX: CRJ OTCQB: CLGRF 200, 219 Robin Cres. Saskatoon, Saskatchewan, S7L 6M8 Canada P. 306.668.7505 F. 306.668.7500 E: ir@clauderesources.com

20. Appendix A: Corporate Summary 20 Stock Exchanges: TSX CRJ OTCQB CLGRF Share Structure: Shares Outstanding (June 30, 2015): Basic 194.9 million Fully Diluted 204.1 million Market Cap CDN ~$120 million 52 Week High $0.78 52 Week Low $0.19 Avg. Volume 600,000 Analyst Coverage: Richard Gray Cormark Securities Joe Mazumdar Canaccord Genuity Matt O’Keefe Dundee Securities Derek Macpherson M Partners Adam Melnyk National Bank Don Blyth Paradigm Capital Philip Ker PI Financial Craig Johnston Scotiabank Financials: (June 30, 2015) : EPS: $0.08 CFPS: $0.13 Total cash cost/oz (1) : C$647 (US $524) All-in sustaining cost/oz (1) : C$1,146 (US $928) Cash & bullion: $20.9 (2) Debt: $20.8 Outlook: Gold Production: 68,000 – 72,000 ozs (was 60,000- 65,000) Total cash cost/oz (1) : C$730-$800 (US $580-$635) All-in sustaining cost/oz (1) : C$1,100 - $1,200 (US $875-$950)

21. 21 Project Overview Ownership: 100% Property Size:19,950 hectares Property Location: Saskatchewan, Canada History:(1991 – Present) +1,000,000 oz of gold production Resources: 1.27 million ounces of gold (NI 43-101) Status: Production from Seabee Mine and Santoy Mine Complex Production: Forecast 68,000 to 72,000 ozs of gold in 2015 Infrastructure: Mill:900 tonnes per day (1,050 tpd peak) Shaft: 1,000 metres Tailings Facility: Permitted 6 year life Key Notes: • Santoy Gap ramp up on pace to reach 500 tpd in 2015 • 2015 UG drill program 65,000 m • Successful execution of Alimak mining method at Seabee • Santoy Gap infrastructure upgrades on-going to reach 600- 700 tpd in 2016 Appendix B: Seabee Gold Operation

22. 22 Appendix C: Amisk Gold Project Project Overview Ownership: 100% Property Size: 40,373 hectares Property Location: Saskatchewan, Canada Resource: 1.6 million ozs gold equivalent (NI 43-101) Status: Greenfield exploration Infrastructure: Exploration camp Key Notes: • Large bulk mineable potential • Mineralization begins at surface and has been tested to approximately 600 metres below surface • Close to provincial infrastructure and in proven mining district and “mining friendly” community

23. 23 Appendix D: Executive Team Brian Skanderbeg, P.Geo. President & CEO, Director Mr. Skanderbeg joined the Corporation in April 2007. He was appointed as President & CEO in November 2014. Prior to his current position, he was the Sr. VP and COO. He previously worked for Goldcorp, Inco Ltd. and Helio Resources, holding positions in both exploration and operations. He holds a B.Sc. from the University of Manitoba, an M.Sc. from Rhodes University, South Africa. Mr. Skanderbeg brings extensive experience in gold systems, operational management, cost and asset optimization and strategic analysis. Rick Johnson, CPA, CA Chief Financial Officer Vice President Finance Mr. Johnson joined Claude Resources in 1996. He was appointed to his present position in 2004, having previously served as Company Controller. Mr. Johnson holds a Bachelor of Commerce degree from the University of Saskatchewan and is a member of CPA Canada.

24. 24 Appendix E: Board of Directors Brian Booth, P.Geo. Chair Currently serves as the President and Chief Executive Officer of Pembrook Mining Corp. Previous work experience includes Inco Ltd. and Lake Shore Gold Corp. Over 30 years of experience in mineral exploration. Joined the Board of Directors in 2012. Rita Mirwald, C.M. Director Held a number of senior positions with Cameco Corporation, including that of Senior Vice President Corporate Services. Joined the Board of Directors in 2011. Patrick Downey, P.Eng Director Has over 25 years of international experience in the resource industry. Most recently, Mr. Downey was the President and CEO of Elgin Mining Inc., which was acquired by Mandalay Resources Inc. He has held numerous senior engineering positions at several large scale gold mining operations. He holds a B.Sc (Hon.) degree in Engineering from Queen's University in Belfast, Ireland. Joined the Board of Directors in January 2015. Arnold Klassen, CA, CPA (Illinois) Director Has over 35 years of experience in accounting, audit and tax, with over 30 years of experience in the Mining Industry. Mr. Klassen is currently President of AKMJK Consulting Ltd. and prior to that was the Vice President of Finance for Dynatec Corporation from 1988 to 2007. Mr. Klassen spent seven years with KPMG prior to becoming Vice President of Finance with the Tonto Group of Companies from 1984 to 1998. Joined the Board of Directors in April 2015. Brian Skanderbeg, P.Geo. President & CEO, Director Mr. Skanderbeg joined the Corporation in April 2007. He was appointed as President & CEO in November 2014. Prior to his current position, he was the Sr. VP and COO. He previously worked for Goldcorp, Inco Ltd. and Helio Resources, holding positions in both exploration and operations. He holds a B.Sc. from the University of Manitoba, an M.Sc. from Rhodes University, South Africa. Mr. Skanderbeg brings extensive experience in gold systems, operational management, cost and asset optimization and strategic analysis.

Add a comment

Related pages

DGF 2015 Commodity Investing Company Presentations

View our commodity investing company presentations in ... World Gold Forum > Denver Gold Forum 2015 ... Gold: Jerry Xie: Webcast: Claude Resources Inc ...
Read more

Denver Gold Forum 2015 - Gold & Silver Investing Company ...

... generate your own widget for the 2015 Denver Gold Forum ... St. Barbara’s Day Award Luncheon & Presentation ... © 2016 The Denver Gold Group, Inc.
Read more

Denver Gold Group - Representing Precious Metal Equities

Denver Gold Group is a capital formation ... Denver Gold Forum ... Special Events & Speakers; Gold Market & Mining 101 © 2016 The Denver Gold Group, Inc.
Read more

European Gold Forum 2016 > Alphabetical list of Webcasts

View a full alphabetical listing of the European Gold Forum 2016 Company Webcasts. +1 ... Denver Gold Forum; European Gold Forum; ... Claude Resources Inc ...
Read more

Presentations | Silver Standard

The Investor Relations website contains information about Silver Standard Resources, Inc ... Denver Gold Forum ... Claude Resources Presentation at ...
Read more

Silver Standard Resources, Inc

Presenting at Denver Gold Forum 2016. September 16, ... Corporate Presentation View more. ... Copyright © 2014 Silver Standard.
Read more

Investors | Silver Standard

Presenting at Denver Gold Forum 2016. ... Claude Resources Presentation at European Gold Forum 2016 ... Silver Standard Resources, Inc. does not maintain ...
Read more

Claude Resources Presentation at ... - European Gold Forum

If you are unable to attend the European Gold Forum 2016 in person, ... 23 & 25 June 2015; ... © 2016 The Denver Gold Group, Inc.
Read more

Mandalay Resources

Mandalay Resources creates exceptional shareholder value through the acquisition of undervalued assets that can: become rapidly cash generative, self fund ...
Read more