TSX:LSG.DB - Post by User
Post by
goldhappyon Sep 04, 2013 11:34am
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Post# 21717562
LSG ON TRACK
LSG ON TRACK LSG is on track to have an "all costs in of $1000 " attained during the second half of 2013. Tony maybe a little optimistic ? Let assume gold holds about $1400 for 2014 at the all in costs of $1000 per oz.
Project 140,000 oz of gold production in 2014. Profit would equate to 140,000 times $400 = about
$56 million profit to pay down debt. The market looks at this great feat and is not yet in favor of what it sees right now. Looks like 3 years to pay the loans. Now if the production increases that may shorten the length of time to pay down debt. I don't think I would be convinced LSG would be the place to rest to rest my hard earned money.
Now when I look at the possibility of the gold price climbing it gets my attention. Problem right now is that it is not rising quick enough to stir new investment into LSG. Gold price increase is pure speculation. Sure it's based on a lot of good notion and facts about the world. Until people are convinced they must own gold all I see is gold moving from the power brkers of the west to the power brokers of the east.
In 2 years if LSG has the loans paid we may get some action. LSG may be producing 200,000 oz of gold at ....lets use $400 profit per oz. That is about $80 million profit and no loans to pay down. Now what ?? At that rate it will take 4 more years to reach $432 million dollars or about $1 for each share holder. Total of 6 years to earn $1 per share or about 16 cents per year over 6 years.