NYSEAM:LSG - Post by User
Post by
Newager23on Jan 11, 2014 5:11pm
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Post# 22081723
New update at www.goldsilverdata.com
New update at www.goldsilverdata.comLake Shore Gold is a mid-tier producer with a FD market cap of $232 million. This is currently an undervalued stock, with future reserves are valued at $49 per oz. If gold prices rise, this should be a 5 bagger. They do have some debt issues with $120 million in debt and only $34 million in cash. But most of their debt is convertible into shares and they can roll over the rest if necessary. Currently they have free cash flow at $1,300 gold and can easily manage their monthly debt payments. The only way they could have financial problems is if gold prices stay under $1200 for an extended period. They have current cash costs of $750 per oz at their two high grade underground mines (West Timmins and Bell Creek) at 5 gpt.
This is a pretty solid stock. They have 6.5 million oz of gold and are likely to find more. In Q4 2013, they increased production to a 175,000 oz annual rate (3,000 tpd). They have plans to increase their Bell Creek mill to 5,500 tpd. In five years, they could be producing 250,000 oz, or perhaps more. They have three large undeveloped deposits for growth: the 1 million oz Gold River deposit at Timmins West; the Deep Zone deposit at Bell Creek; and the 2 million oz Fen Gib open pit deposit. 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.
www.goldsilverdata.com