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Lachlan Star Ltd T.LSA


Primary Symbol: LSLCF

Lachlan Star Limited is an Australia-based copper and gold exploration company. The Company is focused on the discovery of gold and copper resources across a portfolio of early-stage high-potential exploration projects located in central New South Wales. Its projects include North Cobar, Junee, Bauloora North, Koojan, Killaloe, And Princhester. It holds a 100% interest in the North cobar project, with a focus on gold-copper and lead-zinc-rich deposits. The North Junee Project is located within the Gold-Copper Heartland of Australia, a region that contains over 110 Moz gold and 19 metric tons (Mt) of copper. The South Junee project, situated approximately 60 kilometers southeast of the Junee project, lies within the Lachlan Fold Belt. The bauloora north project is situated east of the township of Temora in central New South Wales. The Killaloe Project, located in southeast Western Australia over 600km east of Perth and 20-30km northeast of the historic gold mining town of Norseman.


OTCPK:LSLCF - Post by User

Post by goldpigon May 31, 2013 8:02am
115 Views
Post# 21489588

A Great Turnaround Story

A Great Turnaround Story

I just think that this respectable gold stock has been way oversold and is now ready to deliver some very good quarters, perhaps the best in its history.

 

It will soon complete a PP at 57 cents which shows that it has nowhere to go but upwards.

The evidence shows that it will be a much better performer for the rest of 2013.

 

First, the POG should be now near or just at its normal seasonal low period.

It should soon begin its normal seasonal rise, as fabrication buying picks up.

 

Also, production is rapidly increasing and is now close to the 75,000 oz per year rate.

Higher production will drive cash costs downward.

 

The conversion to in-house mining will also begin to show up in decreased cash costs.

This is expected to lop off $150/0z in cash costs.

The Aussie dollar is also declining, which will also benefit production economics

 

Finally, much higher grades ( about 40 % higher ) than the low grade material recently mined is now beginning to enter the production economics and will also decrease cash costs.

 

Most recent total cash costs were about $1250 per oz.

 

I see these coming down to about  $900 per oz.

If POG averages $1500 this year, the free cash margins will be about $500- $600 per oz which will produce cash flows well above $30 million per year.

The current market cap is less than that, which shows just how oversold this small producer really is.

At just 4 times free cash flows, the upside is about $1. 

 

Thats why they can raise money at 57 cents per share.

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