Lake shore
So if there are still Tahoe investors in doubt about the LSG takeover. I invite you to go over to the Lake shore gold message board. The last 10 pages are all from furious LSG investors, feeling like the takeover was a terrible deal for them. I'm one of those investors. But this coin does have two sides, if LSG investors got screwed, then Tahoe investors got a great deal. Since our share price is pegged together now, i hope you guys are going to appreciate the new Tahoe-LSG combination and get an increasing share price too.
Some points about this takeover worth mentioning;
- LSG had 100m in cash and gold inventory and no debt.
- LSG had 2 huge new drilling results, these will add many years of mini life (not yet in the reserves estimates). These new drill test showed very high grade deposits and also pretty near the surface. The share price of LSG would have easily hit 1.7 on this news allone if our beloved CEO didn't sell us out.
- Check out last years cost profile of LSG. The AISC per ounce sold in 2015 was US$870, really competitive and i believe it is below the Tahoe AISC. This low AISC will show positive free cash flow even in really depressed gold prices.
- With these new drill finds, the Tahoe-LSG company will have very big growth opportunities over the next few years, and importantly, within a save and secure country and business setting. I expect halve the revenues will come from Canada in 3 years time, greatly reducing the risk profile of Tahoe-LSG.