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

Is there anything wrong with my numbers?

[dove18]

Looking at LSG and OSK ( Osisko) LSG OSK Production 170000 oz. 510000 oz. Cash cost $ 675 775 $ 700 # sh. o/s 415M 440M Value of co. $ 332M $ 3190M Althought OSK has three times the production it is valued at nearly 10 times more.There are more life of mine reserves at OSK but there is a definite potential for a much larger reserve base at LSG

[KingswayKid]

To my knowledge, mines are primarily priced on their NAV (net asset value). You can think of this as a liquidation value in that if a company were to sell that mine today, what would it get. Also, there are different classifications for reserves (2P, Indicated, inferred, etc.). By saying LSG has "potential" for a larger reserve base, this may be true in that it has more in a 

[rallard]

LSG is a great investment but it is no OSK. OSK is more than it's QUE operation, the Hammond Reef project in ON has a 43-101 of 10 Million oz...I have heard reserves could be over 40 Million...that is a rumor. OSK should be $12.00 but it's being sold for half that I should know I own shares of OSK. LSG should be around $2-$3 and I'll wait for that number...not investment advice just

[chapulin]

I have always liked to compare OSK and LSG since they are both producers with similar shares outstanding . I guess it fills me up with hope for a better LSG price. Always come up with a $3.00 LSG price over the next  year and a half if compared to OSK price.

[KingswayKid]

Just curious as to how you came up with that $3? What comps / valuation are you using? To just be basing value off shares outstanding of OSK would be very inaccurate. I've gotten a target price of ~$1.20 to $1.60 through other valuation methods.

[chapulin]

It may be simplistic, but I just used production numbers, cost per ounce and mine life from OSK Malartic property as well as estimated reserves and exploration potential for all properties. Based on future projections from Makuch and the Offer price from Goldcorp, I estimated LSG to be worth just over 1/3 of OSK. When the offer was for around $6.00 that would be $2-$2