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

Poised for a breakdown??

[yoda2]

Is there another IMPAIRMENT LOSS charge coming? LSG's market value is about $150 million compares to a net book value on their financial statements of about $650 million. This shortfall difference of about $500 million combined with the drop in the value of Lsg shares from about *80 cents to about 40 cents,may forewarn of a large pending write down in the value of LSG's assets. Last year LSG recorded an impairment loss of $231 million. The determination of that loss was based on Au prices of US$1,665 for 2013 and declining gradually to US$1,400 in 2018 and beyond. With current Au prices lower than both 1665 and 1400, it may be reasonable to anticipate another large impairment loss for 2013. It is not a pretty picture of financial health. One had hoped that management would be successful enough that the LSG share price would increase instead of declining and that LSG's total market value would increase and catch up to the financial statement net book value. After all, the front cover headline on the 2012 Annual Report was "Poised for a break out Year in 2013." Maybe in 2014.