Claude Resources Inc. (USA)(OTCMKTS:CLGRF) posted FY2014 net profit of $4.6 million against a net loss of $73.4 million in FY2013 which was led by $63.8 million in impairment charges. The higher sales volume and increased gold production, higher ore grades and better operating efficiencies resulted in the noteworthy improvement in financial performance. It also helped the company in 29% reduction to all-in sustaining cost an ounce.
The management view
Brian Skanderbeg, the President and CEO of Claude Resources, said that the implementation on bringing two ore entities into production, altering mining measures and offering higher grades helped the company to achieve record production performance in FY2014. There was a 44% rise in gold production. The company achieved success working on cash flow optimization measure to minimize all-in sustaining cost an ounce. With anticipated production growth from Santoy Gap deposit and a declining expenditure profile, Claude Resources is well positioned to record strong free cash flows in FY2015 and beyond.
During 4Q2014, Claude Resources Inc. (USA)(OTCMKTS:CLGRF) posted a net loss of $0.5 million. The loss was led by decreased production ounces linked with decreased tonnage and lower grades resulting from mine sequencing at Santy Mine Complex and the L62 deposit. Moreover, the company had a considerable amount of in-stope ore that was not offered to the mill in 4Q but rather during 1Q2015.
The other details
The costs linked with the in-stope ore were recorded during 4Q while revenues generated will be realized in 1Q2015. The gold revenue raised during 4Q was $22.7 million, up 30% over the $17.5 million recorded for the same period in FY2013. The surge in revenue came due to a 3% appreciation in Canadian dollar gold prices and 26% increased gold sales volume compared to 4Q2013. Also, in 4Q Claude Resources milled 60,551 tonnes for total gold production totaling to 12,284 ounces.