OTCPK:LSLCF - Post by User
Comment by
TheRock07on Jul 25, 2013 9:33am
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Post# 21629376
RE:RE:Q2 Prelims........Very Good Progress
RE:RE:Q2 Prelims........Very Good ProgressJust a few more notes to complete my assessment.
Like other gold stocks, management of LSA is seeking to reduce all operating costs to a bare minimum.
In this regard, 36 miners were pared from the mining staff in Q2.
This should save another $1 or so.
Also, LSA wont have to pay any taxes as they have carry forward tax losses of approximately US$75 million and a capital repatriation credit of approximately US$85 million.
In summary, Q2 is a transformative, break-out quarter for LSA.
Production surged forward by 50 % and all in cash costs probably declined by 25 to 30 %.
If they remain on track with their mining plan in this quarter ( Q3 ), we should see another 2000-4000 oz added this quarter, with another 5 to 10 % savings in all in cash costs.
These transformative developments should see LSA survive even $1000 POG.
Forecast for this quarter are for POG to average about $1350.
Given the ongoing production indices, LSA should be able to continue to increase its gross margins in Q3.