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

Shooting from the hip

[goldhappy]

Mining at 4 grams per ton it takes 7.77 tons to make one oz of gold

7.77 times $100 per ton cost = about $800 per oz operating cost

Gold at $1400 leaves $600 surplus cash

2500 tpd times $600 = $1.5 million per day surplus cash

365 times $1.5 million =$547 million surplus cash for 2013

I really doubt LSG is cash strapped. Just waiting for that mill growth!!!

[IMgolden]

I think some have already mentioned here that the $800 is not the real cost per ounce.  It would be interesting to know what that cost is for these companies.  If gold stays above this number until they get the bulk of the contractors out which is a huge cost to them and get this mill running 3000 tpd, then one would think things should be OK for us.  This should be just around the

[BrahmaViddo]

Worst calculation ever... that is simply a basic number for the actual mining of the ore.. factor in the administration costs, taxes, wages, capital spending, interest, royalties.. youre looking at $1300/oz.. NOW lets redo that calculation... 2500 tpd X $150 = 375,000... per year that is only $136,875,000.. barely enough to cover operating expenses.. this is the truth

[goldhappy]

I agree Brahhma. I was just spelling out simple facts that they are not in trouble. We need growth for profit. The growth from 3000 tpd will start the profit growth.

[rajags]

A table on production costs for various gold miners that was published recently gave LSG production cost ata round $1200, if I recall correctly. The table was linked to on this MB abour 2 weeks ago. Meanwhile I'm mining gold stock at $0.325 ... production cost has been falling.  

[prioris]

From the april presentation cash costs 850 target costs 1050-1100 ounces 120K + estimate based csh flow on production is 93M so extrapolating ... subtract 12 million for each hundred under 1650 which so far this year cash flow is 69M   The last report said everything is on schedule   Why is stock plummeting ? Answer: every other stock in sector is plummeting.   Unless one of you has