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Re: checkmate28 post# 28099

Thursday, 10/30/2014 12:55:04 AM

Thursday, October 30, 2014 12:55:04 AM

Post# of 35698
Lake Shore Gold LSG) Knocks it out of the park with Q3 Net earnings $7.9m. In 2012, they leveraged the farm to finance what were seeing now while everyone screamed dilution. It paid off. It was simple to me. A Timmins property with Lots of Very high grade gold, just ready to be cherry picked. Because of grade, they had the right formula even with $1200gold. Just Needed execution. Cash costs $588 AISC $861 year to date! I didn't see that coming.

Third Quarter 2014 ("Q3/14")

-- 58% increase in gold production from third quarter 2013 ("Q3/13") to
45,600 ounces
-- 41% growth in sales from Q3/13 to 45,500 ounces
-- 15% improvement in cash operating cost(1) per ounce sold to US$594 from
US$701 in Q3/13
-- 16% improvement in all-in sustaining cost(2) per ounce sold to US$858
from US$1,207 in Q3/13
-- Total production costs(3) of $29.6 million
-- Capital expenditures of $15.2 million
-- Net earnings of $7.9 million versus net loss of $1.7 million in Q3/13

Nine-Month 2014 ("9M/14")

-- Record production of 142,500 ounces, up
72% from first nine months 2013 ("9M/13")
-- 65% growth in sales from 9M/13 to 142,000 ounces
-- 31% improvement in cash operating cost per ounce to US$588 from US$856
in 9M/14
-- 34% improvement in all-in sustaining cost per ounce sold to US$861 from
US$1,307 in 9M/13
-- Total production costs of $91.6 million
-- Capital expenditures of $39.4 million
-- Net earnings of $25.7 million compared to net loss of $7.8 million in
9M/13

Cash and bullion(4) at September 30, 2014 totaled $67.3 million, an increase of $33.3 million or 98% from $34.0 million at December 31, 2013.

Tony Makuch, President and CEO of Lake Shore Gold (LSGGF), commented: "Q3/14 is our fourth consecutive quarter of generating net free cash flow, a period during which our cash and bullion has increased by over $50 million. We have achieved solid production growth year over year, and are one of the lowest cost producers within our industry. Total cash costs per ounce sold were US$594 in Q3/14 and US$588 in 9M/14, while all-in sustaining costs averaged US$858 per ounce in Q3/14 and US$861 per ounce year to date. Given our results to date, we will produce at least 180,000 ounces of gold in 2014 at costs lower than our guidance.

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