Wildfires in Western Canada Won't Affect Claude's Gold Production Guidance

Raging wildfires in Western Canada are causing mining companies to suspend their operations, with the most recent being Claude Resources (TSX:CRJ). The company announced Monday that it has halted gold production at its Seabee mine in Northern Saskatchewan.
Specifically, Claude said that as a result of Seabee’s close proximity to a fire, it is temporarily suspending underground mining operations and is taking steps to remove non-essential personnel. The suspension is mainly due to the risk of high winds transporting heavy smoke and ash over from the fire, which is about 8 kilometers south of the mine.
Luckily, operations at the mill have not been affected, and the facility will continue to operate. Claude doesn’t expect the temporary suspension to have an effect on its gold production guidance for the year as it currently has 10,000 tonnes of ore stockpiled, an amount that represents 12 days of gold production.
“Our number one priority is the safety and well being of our employees. As a precautionary measure, we have moved non-essential personnel and have temporarily suspended underground mining operations. Additionally, we have measures in place to protect the health and safety of our employees and facilities. The Company will continue to monitor the situation and once the risk has been mitigated, we will resume operations. An update on the operation will be provided once more information becomes available,” Claude’s president and CEO, Brian Skanderbeg, said in a release.
At 1:00 p.m. EST on Tuesday, Claude’s share price was up 1.54 percent, at $0.66; year-to-date the company is up 109.52 percent.

Uranium miners also affected by fires

Claude isn’t the only company that’s been affected by the wildfires sweeping across the western half of Canada. Last week, Cameco (TSX:CCO,NYSE:CCJ), the world’s largest uranium producer, and AREVA Resources Canada, a subsidiary of AREVA (EPA:AREVA), suspended uranium shipments in order to reduce traffic on roads that were being periodically shut down due to heavy smoke.
That said, the fires have not hindered production at the companies’ McArthur River, Key Lake, Cigar Lake and Rabbit Lake operations. Cameco has implemented additional measures to protect the health and safety of those working at the facilities, and is assisting the community in fighting the blazes.
According to The Cold Lake Sun, the company provided a bulldozer, generator, firefighting equipment and a number of skilled personal to assist in the firefighting efforts in Saskatchewan.
Seeing those halts in uranium operations might create worry among investors. However, Cameco believes the temporary suspension of shipments won’t impact its production for the year, which is expected to be 25.3 to 26.3 million pounds of uranium. The company also expects sales to remain on point at 31 to 33 million pounds.
 
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.