Corporate Presentation U.S. Marketing

Transcription

1 Corporate Presentation U.S. Marketing November 2015

2 Cautionary Statement 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 , adopted by the Canadian Securities Administrators. The requirements of National Instrument 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. 2

3 Corporate Summary Canadian gold producer with over 20 years experience Seabee Gold Operation have produced over 1 million ounces 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 $685-$750 (US $535-$600) 2015 All in sustaining cost (1) guidance $1,065-$1,175 (US $830-$920) YTD 2015 net earnings of $21.0 million, $0.11 per share Strong financial position Seabee Gold Operation (Seabee Mine and Santoy Mine Complex) Amisk Gold Project $27.0 million of cash & bullion (2) (at September 30, 2015) $20.3 million of long-term debt (at September 30, 2015) (1) See description and reconciliation of non-ifrs financial measures in the Non-IFRS Financial Measures and Reconciliations section of the Company s most recent MD&A (2) Cash and bullion relates to current cash on hand of $24.5 million and $2.5 million of bullion (gold poured in dore bars, not yet been sold and valued at market prices) 3

4 The New Story We recognized what we needed to improve 0.9 Production Growth Strong Balance Sheet Deliver Shareholder Value Low Cost Profitable 0.1 Jan-15 Apr-15 Jul-15 Oct-15 and we are delivering results! 0 4

5 Operating Execution Performance Driven by Better Ore Bodies and Mining Method 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 Production Results Q Q YTD 2015 YTD 2014 Tonnes Milled 69,388 74, , ,046 Head Grade (g/t) Recovery 96.7% 96.4% 96.3% 95.6% Gold Ounces Produced 15,722 20,614 57,408 50,700 Sold 16,528 17,578 54,388 46,133 5

6 Financial Results A Profitable Gold Producer at Current Au Prices Financial Results (all $ amounts in CDN$) Q Q YTD 2015 YTD 2014 Revenue (000 s) $24,549 $24,323 $80,471 $64,665 Cash flow from operations (1) (3) (000 s) $11,397 $10,368 $36,310 $22,015 Cash flow from operations (1) (3) per share $0.06 $0.06 $0.19 $0.12 Net earnings (000 s) $5,662 $6,852 $21,029 $5,068 Earnings per share (basic and diluted) $0.03 $0.04 $0.11 $0.03 (3) Cash flow from operations before net changes in non-cash operating working capital. 6

7 Strong Margins $1,600 Margins/Oz in CDN $ $1,400 Margins/Oz in U.S. $ Gold Price (CA $) $1,400 $1,200 $1,000 $800 $600 $400 $396 $351 $1,089 $1,129 Gold Price (U.S. $) $1,200 $1,000 $800 $600 $400 $303 $832 $278 $896 $200 $200 $- Q YTD 2015 Margin AISC $- Q YTD 2015 Margin AISC Q Q YTD 2015 YTD 2014 Average realized price per ounce $1,485 $1,384 $1,480 $1,402 Average realized price per ounce (U.S.$) $1,135 $1,270 $1,174 $1,281 Total cash costs per ounce (1) $721 $735 $669 $801 Total cash costs per ounce (1) (U.S.$) $551 $675 $531 $732 AISC per ounce (1) $1,089 $1,063 $1,129 $1,265 AISC per ounce (1) (U.S.$) $832 $976 $896 $1,156 7

8 Stronger Balance Sheet De-Risked Balance Sheet & Improved Financial Structure A $48.5 million improvement in financial position in 2 years Debt reduction through $1.25 million/quarter principal payments ($5.0 million annually) Strong liquidity position with cash and bullion (2) of $27.0 million (at September 30, 2015) $35 $30 $25 $20 $15 $10 $33.2 $27.2 $26.1 $23.5 $15.1 Strong Financial Position (in CDN $millions) $22.6 $11.2 $21.7 $18.9 $20.8 $20.9 $27.0 $20.3 $5 $0 -$5 Q Q Q Q Q Q Q Q $(8.6) $(1.2) $(5.6) -$10 Cash & bullion Total Debt 8

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

10 Prospective Gold Belt Large land position 19,400 Hectares Seabee Control Property: the entire greenstone belt 17,200 Underexplored Hectares gold camp Well established infrastructure Over 1 million ounces produced..and much more to come 10

11 Key Drivers: Santoy Gap 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 Higher Grade + Wider Veins = More Ounces Per Vertical Metre 3 years of production developed by the end of 2015 Production Area 10

12 Key Drivers: Santoy Gap Production well-ahead of schedule and prefeasibility design Reconciling above reserves and resources on 60,000 50,000 Budget T Budget Oz Santoy Gap Quarterly Production Profile Actual T Actual Oz 15,000 12,500 ounces and below on tonnage Infrastructure upgrades on-going for tpd profile in % of 2015 production Quarterly Tonnage 40,000 30,000 20,000 10,000 7,500 5,000 Quarterly Oz ~10 year mine life at current reserves and 10,000 2,500 resources 0 Q Q Q Q Q Q Q Q E 0 Total Mine Production by Type/Year Sum of Tonnes Mined Sum of Ounces Grade Development (May 2014 to Sept 2015) 109,729 27, Production (May 2014 to Sept 2015) 54,382 15, ,594 12, ,517 30, Total 164,111 42,

13 Key Drivers: Seabee Mine 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 months Reduced annual development cost by approximately $5.0 million 40% of 2015 annual gold production tonnage Faster, Cheaper Seabee Mine More Productive Illustration of Alimak Mining process Utilizing Alimak Mining Method for Improved Efficiency 13

14 Sustainable Grades and Resources 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 The significant 2015 underground drilling program of ~65,000 metres is expected to drive mineral reserve and mineral resource growth Seabee Gold Operation Mineral Reserves and Mineral Resources* (4) (as of November 30, 2014) P&P Reserves Change Grade % Ounces 299, ,900-29% M&I Resources Grade % Ounces 125, ,200-29% Inferred Resources Grade % Ounces 847, ,900 45% * See Appendix D for MRMR breakdown 14

15 2015 Exploration Santoy Mine Complex Excellent Growth Opportunity 2014 underground drilling demonstrated economic grades and widths SUG g/t over 8.7 m Major step-out holes among the highest gram-metre product to date in the camp JOY g/t over 1.6 m & JOY g/t over 7.9 m Initiated 6,000 metres of underground exploration drilling in Drill Target Area 2015 & 2016 Drill Target Area SYSTEM REMAINS OPEN AT DEPTH 15

16 2015 Exploration - Seabee 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 Seabee Mine Infrastructure Priority Targets L62 Deposit 2015 Targets 16

17 A Profitable Gold Miner Our Strategies are Delivering Results Strong Earnings: net earnings of $21.0 million, or $0.11 per share improvement from YTD 2014 a $15.9 million Growing Production: YTD gold production of 57,408 13% increase vs YTD 2014 Higher Grades: mill head grade of 8.77 g/t 16% increase vs YTD 2014 Peer Leading Cost Performance: cash cost per ounce (1) of $669 (US $531) 16% decrease vs YTD 2014 AISC (1) of $1,129 (US $896) 11% decrease vs YTD 2014 Strong Balance Sheet: increased cash and bullion (2) to $27.0 million and decreased debt to $20.3 million (at September 30, 2015) 17

18 2015 Outlook Our focus remains on production growth, cost containment and margins Increased gold production guidance of 70,000 to 75,000 ounces (previously 68,000 to 72,000 ozs) Lowered unit cost guidance Cash costs per ounce to $685 - $750 (U.S. $535 - $600*) AISC per ounce to $1,065 - $1,175 (U.S. $830 - $920*) FCF in CDN ~1,200 Au/oz (U.S. $950 Au/oz*) FCF margin of CDN $1,450/oz *Forecast uses CDN$/U.S.$ exchange rate of $1.28, at CDN$ 1,470/oz and mid-point of production and cost guidance 18

19 Claude Resources Inc. Discover. Develop. Deliver. TSX: CRJ OTCQB: CLGRF 19

20 Stock Exchanges: TSX OTCQB Share Structure: CRJ CLGRF Shares Outstanding (September 30, 2015): Basic million Fully Diluted million Market Cap CDN ~$140 million 52 Week High $ Week Low $0.22 Avg. Volume 600,000 Financials YTD: (September 30, 2015) : EPS: $0.11 CFPS (3) : $0.19 Appendix A: Corporate Summary Total cash cost/oz (1) : C$669 (U.S. $531) AISC/oz (1) : C$1,129 (U.S. $896) Cash & bullion (2) : $27.0 Debt: $20.3 Analyst Coverage: Richard Gray Joe Mazumdar Matt O Keefe Derek Macpherson Adam Melnyk Don Blyth Philip Ker Craig Johnston Cormark Securities Canaccord Genuity Dundee Securities M Partners National Bank Paradigm Capital PI Financial Scotiabank Outlook: Gold Production: 70,000 75,000 ozs (was 68,000-72,000 ozs) Total cash cost/oz (1) : C$685-$750 (U.S. $535-$600) AISC/oz (1) : C$1,065-$1,175 (U.S. $830-$920) 20

21 Appendix B: Seabee Gold Operation Project Overview Ownership: 100% Property Size:19,400 hectares Property Location: Saskatchewan, Canada History:(1991 Present) +1,000,000 oz of gold production Resources: See Appendices D & G Status: Production from Seabee Mine and Santoy Mine Complex Production: Forecast 70,000 75,000 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 ahead of scheduling reaching 584 tpd in Q UG drill program ~65,000 m Successful execution of Alimak mining method at Seabee Santoy Gap infrastructure upgrades on-going to reach tpd in

22 Appendix C: Amisk Gold Project Project Overview Ownership: 100% Property Size: 40,400 hectares Property Location: Saskatchewan, Canada Resource: Indicated Resources: 921,000 Au Eq ozs Inferred Resources: 645,000 Au Eq ozs 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 22

23 Appendix D: Mineral Reserves & Mineral Resources (4) Tonnes Grade (g/t) Contained Gold (Oz) Seabee Gold Mine Proven Reserves 217, ,400 Probable Reserves 192, ,800 Measured Resources 17, ,600 Indicated Resources 88, ,500 Inferred Resources 403, ,900 Santoy Gap Proven Reserves 105, ,500 Probable Reserves 694, ,800 Measured Resources 34, ,500 Indicated Resources 147, ,900 Inferred Resources 1,319, ,100 Santoy 8 Proven Reserves 15, ,400 Probable Reserves 97, ,100 Measured Resources 34, ,700 Indicated Resources 67, ,900 Inferred Resources 1,344, ,900 Porky Main Indicated Resources 160, ,600 Inferred Resources 70, ,500 Porky West Indicated Resources 100, ,600 Inferred Resources 174, ,800 Total Gold Proven & Probable Reserves 1,323, ,000 Measured & Indicated Resources 651, ,200 Inferred Resources 3,311, ,300 23

24 Appendix E: Executive Team Brian Skanderbeg, P.Geo. President & CEO, Director Mr. Skanderbeg joined the Corporation in April He was appointed as President & CEO in November 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 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

25 Appendix F: Board of Directors Brian Booth, P.Geo. Rita Mirwald, C.M. Patrick Downey, P.Eng Arnold Klassen, CA, CPA (Illinois) Brian Skanderbeg, P.Geo. Chair Director Director Director President & CEO, Director 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 Held a number of senior positions with Cameco Corporation, including that of Senior Vice President Corporate Services. Joined the Board of Directors in 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 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 Mr. Klassen spent seven years with KPMG prior to becoming Vice President of Finance with the Tonto Group of Companies from 1984 to Joined the Board of Directors in April Mr. Skanderbeg joined the Corporation in April He was appointed as President & CEO in November 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. 25

26 Appendix G: Footnotes (1) See description and reconciliation of non-ifrs financial measures in the Non-IFRS Financial Measures and Reconciliations section of the Company s Q MD&A (2) Cash and bullion relates to current cash on hand of $24.5 million and $2.5 million of bullion (gold poured in dore bars, not yet been sold and valued at market prices) at September 30, 2015 (3) Cash flow from operations before net changes in non-cash operating working capital (4) Footnotes to the Mineral Resource Statement: At November 30, 2014, Mineral Reserves and Mineral Resources were estimated by Claude personnel. The Mineral Resource evaluation work was completed by a team of geologists and engineers under the supervision of Brian Skanderbeg, P.Geo., President and Chief Executive Officer. Mineral Reserves were conducted under the direction of Qualified Person Gordon Reed, P.Eng., Seabee Gold Operation General Manager. Mr. Skanderbeg and Mr. Reed have sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activities undertaken to qualify as Qualified Persons as defined by NI The Mineral Resources and reserves reported herein have been estimated in conformity with generally accepted CIM Estimation of Mineral Resource and Mineral Reserves Best Practices guidelines and are reported in accordance with Canadian Securities Administrators National Instrument Mineral Reserves and Mineral Resources for the Seabee deposit are reported at a cut-off of 4.5 grams of gold per tonne. Santoy 8 and Santoy Gap Mineral Reserves and Mineral Resources are reported at a cut-off of 3.6 grams of gold per tonne. Porky Main and Porky West Mineral Resources are reported at a cut-off grade of 3.0 grams of gold per tonne. Assumptions include a price of CDN $1,375 per ounce of gold using metallurgical and process recovery of 95.2 percent and overall ore mining and processing costs derived from 2014 realized costs. All figures are rounded to reflect the relative accuracy of the estimates. Summation of individual columns may not add-up due to rounding. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserves. The geological data in this table has been reviewed by Mr. Brian Skanderbeg, P.Geo, President and CEO of Claude Resources Inc. Mr. Skanderbeg is a "qualified person" as defined by NI