TD Securities Investment Conclusion
We expect Lake Shore to report strong production results in Q4/12 that should continue into next year as the
company focuses on stope production after a long period of ore delineation and infrastructure development at
Timmins West and Bell Creek. At our revised valuation, we estimate that the company trades at 0.57x
NAV5% versus its peers at 0.76x NAV5%. We believe that this level of discount is unwarranted, given the
company’s improved financial strength and forecasted transition to profitability next year. We maintain our 12-
month target price of $1.30/share and upgrade our recommendation to BUY (from Hold).