October 7, 2009 / 2:09 PM / in 8 years

UPDATE 2-Claude Resources Q3 gold production up sequentially

* Q3 gold production up 80 pct vs Q2

* Still sees FY gold production 46,000 oz to 48,000 oz

* Shares rise as much as 10 pct (Adds analyst comment, details)

BANGALORE, Oct 7 (Reuters) - Claude Resources Inc CRJ.TO said third-quarter gold production at its Seabee project rose 80 percent sequentially and the company maintained its full-year gold production view, sending its shares up 10 percent.

During the third quarter, the Seabee project, located in Saskatchewan, produced about 14,000 ounces of gold and the company sold about 13,300 ounces of it in the period.

Dundee Capital analyst Paul Burchell said the company often sees its second-quarter underperforming while the third quarter is better in terms of production.

“It was encouraging to see that,” added Burchell, who has a “buy” rating and C$1 price target on the company’s stock.

The company produced 7,735 ounces of gold in the second quarter, down 33 percent from a year earlier.

In the second quarter, the company processed some lower grade areas at its Seabee mine, which resulted in lower gold production, the analyst said.

“They did identify at that time that the grade would recover in the third and fourth quarters, and that is what we are seeing... The grade has returned to more normal levels and allows them to maintain their production guidance throughout the year,” Burchell added.

Claude reiterated its production outlook of 46,000 ounces to 48,000 ounces of gold for 2009.

Shares of the gold exploration and mining company were up 5 percent at 84 Canadian cents in morning trade on the Toronto Stock Exchange. They rose as much as 10 percent in early trade. (Reporting by Isheeta Sanghi in Bangalore; Editing by Gopakumar Warrier and Aradhana Aravindan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below