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

RE:RE:RE:RE:RE:RE:RE:RE:ts9222

[grammadux]

Of course the enterprise value is important for shareholders. The company has to pay the interest for its debt and pay back the principal in the end. This is cost! So lower earnings. So production is not the best indicator, with the debt of EDV, LSG could have the same numbers. For debt to equity ratio I used total liabilities. I didn't say long term debt to equity, in this case also the LSG ratio would come down. I don't question the higher production numbers and the higher cash flow of EDV, but this comes at the the price of a significant amount of debt which is almost as high as the value of equity. For LSG the debt is almost a fifth of its equity! My investment thesis in this market is based on a low debt level preference. So I prefer LSG over EDV.