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Claude Resources


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www.clauderesources.com

 

I have been holding this for a while and topped up last week as i expect the quarterly earnings next week to be strong. So the drill results news was a bonus. But i believe that this stock has further upside and is well worth looking at.

 

Why i like it....

 

ENERGY

 

Rising energy costs are hitting gold miners profits. Kitco extract...

 

 

As oil rises in price, so does the cost of ore extraction and operations. We saw production energy and labor increases of +10% at some mines for 2005. This problem is still expanding particularly for mines in operation off the grid. This is the reason one large gold miner is building their own very expensive power plant in Nevada.

 

Claude are an oil, gas and gold miner so oil price rises are good for them!

 

 

PRODUCTION NOW

 

In addition to the oil and gas they are producing 70,000 oz a year and this is growing. Recent upgrades to the mill and satellite deposits should see strong growth this year.

 

 

EXPLORATION

 

They have a massive potential on a range of excellect projects and joint ventures with majors such as Placer Dome.

 

VALUE

 

Gold at $700 should give them profits of around $20 Million. That would them on a P/E of 6-7!

 

With the 'blue sky' (hate that term!) potential this has to be winner.

 

 

ANy comments??

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I have owned Claude Rs. in the past, but became frustrated when it failed to move up as fast as some of the other juniors. I wound up selling at a small profit.

 

Two other Energy & Mining shares that I own are: Euromax (v.EOX) and Vangold (v.VAN)

 

I will take another look at Claude's chart...

 

Chart- 3 years

 

That move on big volume is impressive. I would expect a near-term test of $1.75.

If the volume fades there, think about selling. In hindsight, this would have been a great buy

on that dip to $0.90. I should have stayed in longer, or watched it more closely.

 

I have been buying v.VAN in the past few days.

 

I odnt like to look of this week's break of the uptrend, and it now looks like $0.40 could be tested

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