Value Microcaps Junior Miners

[checkmate28]

LSG.v Lakeshore Looking primed after years of pain and not a favorite around here. Up about 50% last 30 days.

http://seekingalpha.com/article/1939111-lake-shore-gold-is-ready-for-take-off-in-2014?source=email_rt_article_readmore_button

They went all in financing their production build outs. Overruns and POG put them in the penalty box, down 90% from the highs. Two producing mines, 7.6 million oz gold and are guiding for 160k to 180k oz production for 2014. In Q4 2013 they produced 51,700 oz gold with AISC around $1,000 and are estimating $950 - $1,050 for 2014. With current CF, the 130 million in debt should be manageable at current POG and they can derisk the balance sheet in short time. Mgt has a ways to go to prove itself but the odds are looking better.

Primero paid $220 million for Brigus a 120,000 ounce producer holding roughly 1.72 million in gold reserves, the company paid approximately $127 per ounce of gold.

If Lake Shore was bought out at $100 per gold ounce, for the 5.6 million oz not including Fenn Gibb, the transaction would imply a value of $560 million and a serious bump from the current EV of $324million.

Right now and esp after the new Mexican royalty, I like the high grade Timmins minors. I think the next 6 months are going to be telling and bring some changes. Rick Rule just did a piece on billions of foreign $ slated for investment in resources. What will the price of gold do and where will the company's level off as to AISC and CF are the million dollar questions?