Replies to post #30977 on 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?

[dr_airtime]

SAS.TO - Flagship Mine had restricted Production in Q4...

...One of the few PM miners who did not see their BS decline in last year. Cash position in Q3-13 same as Q4-12 with revenue flat over the year, meaning production increased as gold price declined.

Could see 3000 oz/quarter bump in production in Q1 as lifting issue at flagship Holt mine is resolved

From Q4 PR - Produced only 13.k ounces in Q4 @ Holt

http://www.sasgoldmines.com/s/NewsDetails.asp?id=122567

Holt produced 13,579 ounces of gold derived from Zone 4 on the 925m Level and 1075m Level mining areas and Zone 6 on the 775m Level. Production was down approximately 20% from the previous quarter due to scheduled hoist motor and hoist drive upgrades performed during the quarter. This improvement will provide additional future hoisting capacity and increased reliability. Head grade during the quarter was 5.42 g/t Au, and mill recoveries were at their expected level of approximately 95%

From Q3 PR - Produced 16.8k ounced in Q3 @ Holt:

http://www.sasgoldmines.com/s/NewsDetails.asp?id=122566

During Q3 2013, the Holt Mine ("Holt") produced 16,807 ounces of gold, an increase of 28% over Q3 2012. When compared to Q3 2012, despite a 19% decline in the the average realized price per ounce of gold sold (1), gold sales revenue increased by 12% as a result of the increase in production.

Total cash cost per ounce of gold sold (1) decreased by US$183 per ounce or 21% from Q3 2012, mainly as a result of the increase in commercial gold production sold and the reduction in royalty costs due to the decline in the gold price.

Cash margin from mine operations (1) increased by $1.4 million over Q3 2012 due to the increase in commercial gold production sold, offset partially by the decrease in the gold price during the quarter. Holt contributed 80% of the total cash margin from mine operations (1) earned during the quarter.

Holt is expected to contribute approximately 59% of the Company's total gold production for 2013.

I don't own..but have reasons to now. Still own Brigus and will hold for +$1.00 while BRD.TO shares, or +$6.00 when they turn into Primero shares from the acquisition.