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

RE: LSG The Child Of Gold!!

[Godfather1]

First of all, Buffett doesnt buy gold stocks. Second, there is a reason the stock went from $2 to $1 to $0.70 to $0.47. There are some problems here. Stocks dont tank like that for no reason. The issue with these gold companies is you have to watch their costs. I dont know what the cost/ounce of gold is for LSG but lets say its around $1100/ounce. If gold drops say 10% like it did the last two days LSG profits get hammered. Look at IMG, I know for a fact there costs are around $1400/ounce which means with todays gold price, they arent making money. If gold stays at this level they will have to stop spending. I advise to to find out what LSG costs/ounce are to see if they are even making money.

 

GLTA