Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

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



TSX:LSG.DB - Post by User

Post by thedave2006on May 06, 2014 6:53pm
384 Views
Post# 22531274

financials ok

financials ok

Lake Shore Gold Reports Strong First Quarter Operating and Financial Results

Marketwired
Lake Shore Gold Corp.

TORONTO, ONTARIO--(Marketwired - May 6, 2014) - Lake Shore Gold Corp. (LSG.TO)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced financial and operating results for the first quarter of 2014. Full details of the results are provided in the Company's Management's Discussion & Analysis, which is available on the Company's website at www.lsgold.com and on SEDAR at www.sedar.com.

Key highlights of the results include:

  • Gold production of 44,600 ounces (283,800 tonnes @ 5.1 grams per tonne), a 92% increase from the first quarter of 2013 ("Q1/13")
  • Gold poured of 45,700 ounces, more than double the 20,530 ounces poured in Q1/13
  • Gold sales of 43,000 ounces, 65% higher than in Q1/13
  • Cash operating cost(1) of US$621 per ounce sold, a 37% improvement from Q1/13 and below full-year 2014 guidance of US$675 - US$775 per ounce
  • All-in sustaining cost(2) of US$960 per ounce sold, 38% better than in Q1/13 and in the low end of the Company's full-year 2014 guidance of US$950 - US$1,050 per ounce
  • Total production costs of $29.6 million compared to $26.1 million in Q1/13 reflecting higher volumes
  • Cash earnings from mine operations(3) of $32.0 million, a 90% improvement from Q1/13
  • Net earnings of $4.7 million compared to net loss of $0.6 million in Q1/13
  • Cash flow from operating activities, not including working capital movements, of $24.9 million, more than double the level in Q1/13
  • Capital expenditures of $13.0 million, in line with target levels and down 66% from Q1/13
  • Total debt repayments of $3.7 million
  • New exploration program leads to identification of new high-grade structures near current mining operations at Bell Creek.

Cash and Bullion

The Company's cash position strengthened during the first quarter of 2014 and has continued to improve during the second quarter of the year. As at May 6, 2014, cash and bullion totaled approximately $48 million, an increase of $14 million from the beginning of the year.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We reported strong results in the first quarter of 2014 and continued to execute our plan to grow the value of our company. The key drivers include consistently achieving our production and cost targets, increasing our cash position through strong internal cash generation, reducing debt and achieving success advancing our projects and drilling our exploration targets. An important strength of our company is that we are both a producer that generates free cash flow and a leading exploration and growth story in our sector.

"Based on our first quarter results, our production is tracking to the top end of our full-year guidance for 2014. Our cash operating costs during the first quarter were better than our target range for the full year, while all-in sustaining costs were at the low end of expected levels. We have increased our cash and bullion, which today stands at close to $50 million, and have repaid around $5.0 million of debt so far this year ($3.7 million during the first quarter). In addition, from a new drill program launched in January, we have already reported encouraging drill results at the Bell Creek Labine Deposit."

Outlook

At the end of the first quarter of 2014, the Company was on track to achieve its guidance for the year, including:

  • Gold production of 160,000 - 180,000 ounces;
  • Average mill throughput of 3,200 to 3,300 tonnes per day;
  • Average grade of 4.5 to 5.0 grams per tonne;
  • Cash operating cost per ounce sold of US$675 to US$775;
  • All-in sustaining cost per ounce sold between US$950 and US$1,050;
  • Total production costs of $128.0 million;
  • Total principal debt repayments of $20 to $25 million;
  • Increasing cash position (cash and bullion of approximately $48 million at May 6, 2014 compared to $34 million at December 31, 2013); and
  • Exploration success from a drill program launched in January at Timmins West and Bell Creek mines aimed at identifying new areas of mineralization and replenishing resources.

This Company's Outlook section contains forward-looking information within the meaning of certain securities laws. The Outlook section, also included in the Company's MD&A, represents the Company's guidance and forms the basis for most of the forward-looking information disclosed elsewhere in these documents and in other areas such as other press releases, newsletters, fact sheets and the Company's website. Readers are directed to the Forward-Looking Statements advisory at the end of this press release for cautionary language relating to forward-looking information.

<< Previous
Bullboard Posts
Next >>