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

RE: RE: RE: RE: RE: Interesting article & comments

[canbeam2004]

Gil, I like your more conservative approach.  You are factoring in the unknowns for a worst case scenario.  Anything else is a bonus.   Assuming the reserves are there, the two main factors effecting the profitablility in the next three years will be the price of gold, and the cost of energy.  I'm no expert, but the way I understand it is that mining is very energy dependent, and if the price of that starts to go a little crazy, and there is a good chance it will if the world economies pick up, I'd want to build that buffer into the costs. The ideal is if the price of gold outperforms the rising costs, to keep widening the spread.   Hopefully, once the growing pains are over, they'll get into a real production role, and keep finding the resources to feed the system.