Value Microcaps Junior Miners

[checkmate28]

Dr Air Re Lakeshore Gold - Appreciate your comments as always. I mentioned LSG being a buy down at .75 They would be trading at 307 million in MC and 4.4X CF from 2013 guidance. That $307MC is down over 80% from from the lofty MC of 1.7 billion mid 2011.

They Were stupidly over valued, but I don't see them as stupidly over valued at .75. If they're down over 80% and 1.4 billion in MC since mid 2011 then who has sold? Cant be all retail?


They have suffered from operational start up failures like many companies and market sentiment is poor

Q1 2012 - they exceeded guidance at 16k oz
They are guiding for 25 - 30 k OZ quarterly rate by Q3 this year with costs at 700/oz heading into 2013. Most of the growth CAP EX will be taken down by 2012 revenues and they are guiding to be CF positive by end 2012.

Timmins West is expected to generate $70 million of free cash flow in 2013 and over $100 million of FCF starting in 2014

So they are trading at 4.4X CF from 2013 guidance, across their 4 properties they have over 7 million oz in gold, half inferred and insiders bought over 200k shares in April. Not out of the park numbers, but their in the game. They don't have a good track record but if they pull off the turn around then I think .75 is cheap. I don't own it.
CM