Seabee head frame and central milling facility.  CRJ photo

Seabee head frame and central milling facility. CRJ photo

Good morning,

As the markets continue a freefall in most sectors, except for gold (back over US$1,100) and gold stocks, a couple news releases caught my eye this morning.

Claude Resources (CRJ:TSX) – Saskatchewan’s only publicly traded gold producer is out with 2015 annual results and guidance for 2016.  Production for the year was 75,748 ounces, a 20% increase over 2015.

Claude had an awesome year and the market took notice, almost tripling the share price from 30 cents to 80 in 2015. That made Claude one of the top-performing gold stocks of the year.


  • Record annual gold production of 75,748 ounces during 2015, a 20% increase from 2014;
  • Record safety and environment performances;
  • Strong cash and bullion (1) position of $39.8 million at year-end; and
  • 2016 gold production guidance of 65,000 to 72,000 ounces.

“During 2015, our focus remained on production growth, cost containment and free cash flow margin with our operations team exceeding production and cost guidance for the second consecutive year,” stated Brian Skanderbeg, President and CEO.

“With record gold production, improved unit costs and successful advancement of the high grade Santoy Gap deposit ahead of schedule, we generated strong free cash flow and ended the year with a very strong cash and bullion position of $39.8 million, a $28.6 million increase from year-end 2014. With our strengthened financial position, we will invest more in exploration at the Seabee Gold Operation and continue to evaluate and advance internal and external growth opportunities. The 2016 drilling program consists of more than 65,000 metres from underground and 18,000 metres from surface and is expected to create long-term shareholder value by upgrading and expanding the Company’s Mineral Resource and Mineral Reserves.”

The bottom line: Claude is a junior gold producer that is generating solid free cash flow every quarter, with low AISC of between US$850-$930 per ounce.

Being a high-grade producer helps — average grades came in at 8.82 grams per tonne in 2015.

The share price likely won’t triple in 2016, but it could be set up for another good run — especially if gold’s rise continues — or become a possible takeover target.

Read: Claude Sets New Gold Production Record in 2015 & Provides Guidance for 2016

Equitas Resources (EQT:TSXV) – Equitas is halted this morning. Three weeks ago $EQT announced disappointing drill results from the Garland project in Labrador. The drill results sparked a flurry of conversation at CEO Chat and can be found here.

Chatters this morning are speculating that the halt is likely the announcement of a second project. We will see and keep you updated.

Join the conversation at CEO Chat, the investment conference in your pocket, which is becoming a powerful tool for crowd-sourced stock analysis.