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

News

[Trashenstein09]

Not sure how the markets will greet the news. Reserves up 29% but avg grade listed at 4.4 gm per tonne.

[kkkrrrr]

+good first quarter ..

[kkkrrrr]

"Looking at our performance, we are having a strong first quarter of 2015, with production, average grades and unit costs on track to beat expected levels. We have also continued to generate net free cash flow, with cash and bullion having increased more than $10 million so far this year, to approximately $72 million. We have also continued to reduce debt, with three payments remaining on our

[bigdaddycash]

that $72MM (and rising) certainly has reduced the financial risk associated with this company over last few years.  the increased resources are according to plan.  good news all around IMO.  let's see how mkt reacts.  gltals...

[Shlinker_]

Market 'should' react favorably in my opinion...the release is good news! The company beat tehir own expectations, thus should beat the expectations of the street right? Funds and banks are privy to estimates made by the company, and they beat their estimates. Should be ok one would think.  This 144 GAP zone could extend mine life by a couple more years in theory no?  And debt

[Allthewaydown]

Ore is defined as material that can be economically mined. As the cost of production goes down, the cutoff grade can be lower. Thus, cost control and drilling both increase reserves, the first by allowing previously uneconomic tonnage to become economical, and the second by defining new tonnage. That is one of the problems that the industry is having right now... without mining anything, you can

[goldhappy]

Good post

[kkkrrrr]

generally i  like producers without debt and cash-costs below 800$ per oz (not the AISC) ... i see LSG as a debt free company..they are able adding cash quarter by quarter ... it will be no problem paying out convertible bonds.. i hope they will buy some of the bonds at the open market ,,  LSG has the cash  ...anyway, LSG is a great buy below 1$ and a takeover target

[bigdaddycash]

do you know the logistics of buying the debentures on the open mkt - e.g.  does LSG need to formally announce a buyback pgm to buy the debentures on the open mkt?  seems to me once the Sprott loan is paid it would make sense to apply the freed up cash flow to the debenture retirement provided share price is below $1.40.  gltals....

[goldhappy]

A few weeks back it was mentioned the debentures cost a $1.4 plus a premium to bring the total price to somewhere near $1.82 for LSG to buy them. I ask a question and suggest LSG might be able to start a share buy back equal to the number of debentures. Some of them would or could be bought up on the cheap right now. Let the debentures dilute the company. This way they have somewhat total control.

[bigdaddycash]

hi GH, I was thinking the same but would prefer LSG retire the debt as represents significant financial risk in such a volatile commodity market.  a share buyback would not reduce the financial risk associated with debt.  it would be great if LSG could buyback on the open market below or close to face value - this would reduce the potential for dilution (if the debs where converted) and

[goldhappy]

Paying off all the debt is good business. Making money is good business. How do they stop or at least sway a take over at these low prices? I see LSG as a pretty solid company and it soon stands to make 100 million a year without debt. That is a healthy chunk of cash. What mining company with the money would not want this sweet deal. Perhaps it is time to give the shareholders a dividend and slow

[bigdaddycash]

GH, I agree with you. If some of the larger shareholders (e.g. Van Eck) are offered 35-40% over mkt price one would assume they would agree - this represents a fantastic premium even though you or I think LSG is worth more!  At the current mkt price of $0.97 CAD this would be, say, $1.37 and wham - we are no more even though many feel the company is worth more.   The conv debs would not