SASKATOON – Increased production and higher gold prices had a positive effect on a Saskatoon-based gold producer. Claude Resources has reported a first-quarter profit of $9.1-million, 78 per cent higher than the same period last year.
“In the first quarter we increased our cash and bullion position to over $45 million, paid down debt and funded the majority of our annual capital and winter re-supply costs from robust margins,” stated Brian Skanderbeg, the company’s president and CEO.
“Our strong first quarter results were led by the increase in Santoy Gap tonnes milled, grades continuing to reconcile above schedule and improved Canadian dollar gold prices.”
The company produced 20,672 ounces of gold in the quarter, the second highest quarterly production in the company’s history.
Claude Resources also reported a cash and bullion position of $45.3 million, up $5.5 million during the quarter.
READ MORE: Silver Standard to buy Claude Resources
In March, Claude Resources announced it had entered into an agreement with Silver Standard Resources for the Vancouver-based company to acquire all of Claude’s outstanding common shares in a deal valued at $377 million.
A vote on the sale takes place on May 18.
The company operates two gold mines north of La Ronge: the Seebee Gold Operation and the Santoy Mine Complex.
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