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

RE:RE:RE:RE:RE:ts9222

[grammadux]

Ok my friend, I'll help you with the valuation basics:

the formular is: Enterprise Value (EV) = Value of Equity (E) + Value of Debt (D) - Cash (C)


So lets do the math for both companies now.

LSG: 480 + 93 - 82 = 490 million CAD is the enterprise value of Lakeshore

EDV: 210 + 264 - 52.7 = 421 million USD, so we need to convert to CAD now because EDV is reporting in US Dollars, to compare both companies, using a rate of 1.30 the enterprise value is around 547 million CAD

Upps... I do not see where LSG is higher valued than EDV, in fact it is the other way around
Your bargain turns out to be an expensive one.

Numbers used: E = current market cap, D = long term debt (from the Q2 balance sheet), C = Cash Q2 balance sheet numbers