Lake Shore Gold Corporation (LSG)

[SsMurry]

Some production results...

Daniel Earle reports that production is a at 43.3 koz as result of higher throughput, but below Q2/14 production of 52.3 koz due to lower grade – this was expected due the higher grade of 5.4 g/t in Q2/14, in his view.
The company has produced 142.5 koz and has suggested that it would likely meet or exceed the top end of its 2014 production guidance of 160–180 koz. Debt is also being paid off quickly as during the first nine months of 2014 were ~$20mm (up from $17mm at the end of H1/14) and the company previously stated it expected to repay an additional $5mm of debt in Q4/14

In Q2, the company ended the quarter with $67mm in cash and has approximately $120mm of debt.

The impact has been slightly positive, according to Daniel Earle.
The reason behind this is that production and throughput were better than we anticipated, while grades were slightly lower and mill recoveries were in line.

Further research Daniel Earle found on the company shows that the company's guidance for the year is 4.5 – 5.0 g/t and the reserve grade is 4.6 g/t. The company ended the quarter with $67mm in cash (up from $53mm at the end of Q2/14) and total debt repayments in Q3/14 were approximately $3mm. To meet the company's full year target, it would need to repay an additional $5mm of debt in Q4/14.

Some things to look forward to include Preliminary Costs Estimates in early October 2014E.
Additional Drilling Results will be released at the end of 2014E.
For an Updated Reserves and Resource Estimate check back at the End of 2014E

Good luck, folks.