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

RE:RE:RE:RE:please explain

[JRaffles]

It has been suggested that the $ Index could rise from its current level of about 99 to 120 and that the C4 could fall from 0.75 to 0.60 US$ and that gold could fall to US$950
In this scenario:-

• holding C$ would result in a loss of 20%
• holding LSG would result in its revenue in C$ increasing to C$1583 (US$950/0.60).
• LSG's costs are substantially in C$ and in the above scenario oil would probably have also fallen in real terms.

Logically, holding LSG, if gold fall to US$950 and the C$ is 0.60US%,  is better than holding C$ cash!

Furthermore, increase gold reserves in 2016 Q1 should make LSG an even better option than C$ cash.

The flaw in the above is that markets are not logical.