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

RE: RE: RE. Goldhappy...News...

[clestor]

"...not real keen on that deal."

They had the option of shareholder dilution or the NSR.  Either reduces free cash flow per share but they went with a mix leaning towards the NSR and it is a toss up at yesterday's gold prices.  In my view the 2.25% NSR reduces the value of the assets.  I don't like to see gold streams or royalties.

I had thought LSG would be a great fit with Aurizon, but this deal probably makes M&A less likely.

These guys missed numbers badly last year.  Good project managers build buffer into their programs. 

I am not impressed with management.  But, if they can hit their numbers, the stock should recover some.