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

Part of Tony's Report Today

[goldhappy]

both cash operating costs and all-in sustaining costs beating our full-year 2014 targets."

[geoffs13]

Lets hope TONY has not forgotten the debentures outstanding ,before they convert to shares .

[mountainpose]

On a reporting basis the conversion of the debentures will change nothing as companies must indicate earnings on a fully diluted basis...especially if they are in the money. At $1.40 the shares kick in. That being the case a conversion of the shares would not be of any significance. If LSG were to pay off all other debt first then they would have to go to the open market and bid on the debentures

[geoffs13]

I was thinking of the number of shares outstanding

[yoda2]

geoffs it seems we often forget to temper our perspective by relating it to the number of shares outstanding.  It is a big number and lessens the significance of some of the performance results when one thinks about results on a per share basis. There are almost 500 million shares, each having a claim on a portion of any performance. ( the 500 million is the sum of the issued 420 million

[geoffs13]

I appreciate your comments ,but ,would it not be to everybody benefit if the Deb. were paid off and NOT allowed to convert . We have already too many shares outstanding ,and have to increase value substantially to get back to old values and allow some shareholders to break even .

[yoda2]

I would agree with you ---there are already too many shares.  And if the share price does not climb to above the exercise price (1.41?) , the debt will need to be paid. If however, the price is much above this price it will be very hard for managment to walk away from getting $100 million(i.e. not paying out a $100 million) .  This will be the lowest transaction cost and easiest source