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

Wow

[Golfcar72]

Here's the 52-week low again....I can only surmise that some news slipped out about the mill not hitting the 2,500 tpd that said was going to happen in the CC.  The fact it dropped so fast means the 60's are inevitable if any more selling pressure hits.

 

Remember, mentally you "think" the 50's and 60's are low but this company is still burning cash fast and has chunks of debt outstanding PLUS the interest payments due on the convertible debt.  A $0.50 stock price is still a $200 million company.  That's not outrageous with their current organizational status.  The current market cap is $315 million right now for a producing company with negative cash flow.  That's not good, and also not as low as the valuation can get.  People are reading between the lines even more that the Thunder Creek hole was and is a glory hole and that grades are consistently going to be around 4.0 - 4.5 gpt for production.  We need 3,000 tpd NOW to make money with those grades and LSG still can't deliver the mill they promised on 11/9/2009 to be built by year-end 2011.  I just read that 11/9/2009 news release and just shook my head and laughed.  There's massive inefficiencies in this company driven by management strategy.  Too many fronts, not enough focus on completion of specific ventures.  Get the mill done, that's what matters now!

 

Growth is impossible without CAPACITY.