TSX:LSG.DB - Post by User
Comment by
bubbleworldon Jan 31, 2014 11:09am
![](https://assets.stockhouse.com/kentico-cms/0341-00/images/Sprite.svg#id_Post_Views_Icon)
338 Views
Post# 22158131
RE:RE:$
RE:RE:$I think they will have more cash then that, the only question is will the debt be paid off early or will it just show up as cash on their balance sheet, or are they gonna expand the mill capacity further.
180,000 ounces for next year is possibly conservative now, and given the favorable CAD / USD exchange rate I will say $1,350 Canadian per ounce (that would currently be 1350 x 0.9 = $1215 USD)
180K x 1.3K = 234M Canadian dollars revenue for the whole of 2014. This is *conservative*.
Now for 2013, we don't have Q4 (which should be high relative to these) yet, but here's their revenues for the first three quarters:
Q1 = $42.857 Million Canadian
Q2 = $39.675 Million Canadian
Q3 = $44.301 Million Canadian
Basically, before the mill completion and ramp-up in production their revenue annualized was in the realm of $170M Canadian. So even if the price of gold trended lower but the CAD/USD stayed where it is now, or vice-versa, there's a big increase in revenue which should outpace costs. It's just economy of scale with the new mill. I'm looking for more moves up in share price with the Q4 2013 report and Q1 2014.