"Claude Resources is highly undervalued and a potential 5 bagger. They have a fully diluted market cap of $97 million and three solid properties (each with a 1 million oz resource). The only question is how much production they can get out of their properties. They produced 60,000 oz in 2012 and are projected to increase that to 80,000 in 2016. That is not enough to make the stock explode in value, but they have a very low valuation today.
Each of their three properties can produce 60,000 oz long term. That could make this a 10 bagger long term. Each property is large with a lot of exploration potential. They have cash flow, although it is small at about $30 million. They should be able to organically grow the company, but there will probably be some dilution. All of their properties are in good locations in Canada, which is a positive. And their Madsen property (1.2 million oz at 9 gpt) has a permitted mill. I don't see any significant red flags except the timeline risk of waiting until 2016 for the full value of this stock. Most of the growth of this company is going to be long term.
I like this stock’s potential, although they don’t have a stellar balance sheet with only $60,000 in cash and $18 million in debt. Also, the stock is highly diluted. Their cash costs are never going to be low (currently about $900), but even with these warts it is a very good stock. Their underground properties (Seabee and Madsen) are high grade. And having 4 million oz in Canada in good locations is very valuable."