LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

The Facts Speak for Themselves...

[digger144]

Let us review recent history...

Highlights

• Gold production in 2012 of 85,782 ounces (719,298 tonnes @ 3.9 grams per tonne), with gold poured from 2012 production of 85,184 ounces, in line with Company guidance
  
• Gold production in fourth quarter 2012 totaling 23,738 ounces (181,575 tonnes @ 4.2 grams per tonne), with gold poured of 24,041 ounces
  
• Key 2012 mine development and expansion objectives achieved with mining and milling capacity increased 25% to 2,500 tonnes per day (on track to reach 3,000 tonnes per day during second quarter 2013)
  
• Targets for 2013 include: strong production growth to between 120,000 and 135,000 ounces of gold, cash costs between (1) and (1) per ounce (including royalties), project spending of approximately and exploration spending of (largely related to in-mine drilling)
  
• Cash and bullion inventory at of approximately .

Let us face the facts....they are burning through cash every quarter...as per above, they had at the time of release 61 million available. Their project spending and exploration spending for 2013 will be 90 million...guess what?...they must drawn down on their Standby Line with Sprott which presently stands at 35 million @ 9.75%...and they must do so, if at all by March 31, 2013....see the attached...go to Page 11 & 12.

https://lsgold.com/files/doc_financials/LSG2012Q3FSN.pdf

Total long term debt stands at 102 million...add on the 35 million...total...137 million.

They state in their recent release that 2013 production will be between 120,000 to 135,000 ounces.

Guess what..part of that belongs to someone else...three guesses who it is?

Yes....Sprott!

Page 11 of the above: Sprott will get 947 ounces, every month for 29 months beginning January 31, 2013....that works out to 11,364 ounces per year...total of 27,463 ounces.

Trust me...I do my homework...if I thought that there was a chance of making money here...I would be in!

I am not making this up...read it for yourself...it is all in black & white.

Digger144

P.S. The interest rate of 9.75% against the loan also adds significantly to the burden they are carrying.

Any appreciation in price will be met with heavy selling...just watch...it will be back down again.

[silverstarz]

Unless of course gold rockets passed $1800 and then all of you assumptions are out the window!! Long term ... nothing to worry about, espcially if you believe gold is going to where I do!!   SS

[digger144]

Hey Silverstarz... There is one point that you are missing....some will move up a lot more than others.  I put Lakeshore Gold at the bottom my list.  The money you have tied up in this will be better spent elsewhere...trust me on this one..if gold does break out you will be "sitting" there watching the action and become fustrated that this stock is moving at a "snails pace

[silverstarz]

See i thought that the last time I sold LSG and it went $4. ...  Its all market, and when players rush to get in this will move and shock most along the way. This is one of the few miners(percentage wise) who are double listed (US and Canadian exchanges)  Once gold stocks become hot in the USA people are going to buy what ever they can get their hands on. Dollars and cents for how

[beelzeebuub1]

We are now sitting at the 200 day moving average.. remember now, if the gold price moves up quick, this price will follow now won't it.. Owning this stock is a nice call on the price of gold...https://stockcharts.com/h-sc/ui?s=lsg.to