Replies to post #1051 on Lake Shore Gold Corporation (LSG)

[NYBob]

spencaround welcome to Lake Shore Gold Corporation (AMEX:LSG) -
following mark #10 to you, TIA -

Lake Shore Gold Reports Preliminary Costs for Third Quarter 2014
TORONTO, ONTARIO--(Marketwired - Oct 9, 2014) -

Preliminary cash operating cost per ounce sold of US$595 in third
quarter 2014 ("Q3/14"), 15% improvement from third quarter 2013 ("Q3/13")

http://web.tmxmoney.com/article.php?newsid=70784580&qm_symbol=LSG:TSX

Preliminary all-in sustaining cost ("AISC") per ounce sold of US$862 in Q3/14, 16% better than US$1,027 in Q3/13

Preliminary total production costs of approximately $30 million in Q3/14

Nine-month 2014 ("9M/14") cash operating cost per ounce sold estimated at US$588, 13% better than low end of Company's full-year 2014 target range of US$675 to US$775

AISC per ounce sold in 9M/14 estimated at US$862, 9% better than low end of 2014 target range of US$950 to US$1,050

9M/14 total production costs estimated at approximately $92 million
Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced preliminary cash operating cost(1) and AISC(2) per ounce sold for Q3/14 and 9M/14. Final numbers for these measures will be available on October 29, 2014 when the Company issues its full Q3/14 and 9M/14 financial results. Preliminary cash operating cost per ounce sold for Q3/14 is approximately US$595 (including US$29 per ounce for royalties), a 15% improvement from US$701 per ounce in Q3/13. AISC per ounce sold in Q3/14 is estimated at US$862 per ounce, an improvement of 16% from US$1,027 in Q2/13. Total production costs in Q3/14 are estimated at approximately $30 million. All financial numbers are in Canadian dollars unless otherwise indicated.

In 9M/14, preliminary cash operating costs are US$588 per ounce sold, a 31% improvement from US$856 in the first nine months of 2013 ("9M/13") and 13% better than the low end of the Company's full-year 2014 guidance of between US$675 and US$775 per ounce. AISC per ounce sold for 9M/14 is estimated at US$862, a 34% improvement from US$1,257 a year ago and 9% better than the low end of the Company's target range for 2014 of US$950 to US$1,050 per ounce. Total production costs for 9M/14 are estimated at approximately $92 million.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We continue to show very effective cost management with both cash operating costs and AISC remaining much better than the low end of our target ranges. We have now had four consecutive quarters of solid operating and financial performance and net free cash flow generation. We are a low cost producer in our industry, which in the current price environment provides us with a significant advantage. The fact that our unit costs continue to come in better than both our targets and the average market estimates for 2014 is a credit to the work of our operations team and their ongoing focus on productivity and efficiency. With very competitive AISC, our current cash balance and our ability to generate free cash flow, we are well positioned to finance the work required to replenish reserves and extend mine life while continuing our focus on debt repayment and building financial strength."

The Company's full financial results for Q3/14 and 9M/14 will be released after the market close on Wednesday, October 29, 2014, with a conference call and webcast to follow at 2:00 pm on Thursday, October 30, 2014. Details of the conference call and webcast will be released shortly.

Q3/13 Q4/13 Q1/14 Q2/14 Q3/14
Production (oz.)
Timmins West 22,600 41,600 33,900 41,900 35,000
Bell Creek 6,300 10,100 10,700 10,400 10,600
Total 28,900 51,700 44,600 52,300 45,600
Gold poured (oz.) 25,900 51,400 45,700 53,500 44,900
Gold sold (oz.) 32,300 49,600 42,900 53,500 45,500
Avg. price (US$/oz.) 1,324 1,261 1,294 1,289 1,284
Costs (US$/oz. sold)
Total cash costs 701 609 621 556 595
All-in sustaining costs 1,027 849 960 784 862
About Lake Shore Gold

Lake Shore Gold is a Canadian-based gold producer that is generating net free cash flow from its wholly owned operations in the Timmins Gold Camp. The Company is in production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. In addition to current operations, the Company also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.
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