TSX:LSG.DB - Post by User
Post by
TRRGon Nov 06, 2013 4:11pm
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Post# 21882446
Going back to to test new lows ?
Going back to to test new lows ?Lake Shore Gold is a mid tier producer . This is currently an undervalued stock. Their future reserves are valued at $42 per oz. If gold prices rise, this should be a 5 bagger. They do have debt issues with $136 million in debt and only $24 million in cash. But most of their debt is convertible into shares in 2015 and they can roll over the rest. The only way they could have financial problems is if gold prices stay under $1400 for an extended period. They have cash costs of $900 from their two high grade underground mines (West Timmins and Bell Creek) at 5 gpt.
They have 6.5 million oz of gold and are likely to find more. In September 2013, they will increase production to an 140,000 oz annual rate. In five years, they could be producing 225,000 oz if they build their 2 million oz Feb Gib open pit project. They also have some exploration projects in Mexico. Long term this could be a growth stock if gold prices rise and their balance sheet gets much better.