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Bullboard - Stock Discussion Forum LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

TSX:LSG.DB - Post Discussion

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Post by lorn on Mar 11, 2013 6:52pm

Re..Potential..

Summary (from last analysis - 06/21/2012)
https://www.goldsilverdata.com/company/271-Lake-Shore-Gold-Corp.html

Lake Shore Gold is a mid tier producer (my definition). This is a highly undervalued stock, even with their low production (100,000 oz in 2012). They are increasing production from 100,000 ounces in 2012 to 150,000 in 2014 and that should double the stock price. Cash costs are forecasted to drop below $700 in 2014. Long term, I think this is a potential 5 bagger from this valuation level: $382 million fully diluted market cap. They might not make it, but they should get close. They have 7 million oz of resources (3 gpt) and I like their exploration projects, which will eventually provide a pipeline of projects. Thus, this stock has potential. The question is how long will it take to increase production to 200,000 ounces? I think long term, this stock has a chance to reach a $2 billion market cap. But for that to happen, the price of gold has to continue to rise and Lake Shore needs to reach 200,000 oz of production. I like their potential long term, but I wish their share structure was not highly diluted. If you are looking for a low risk mid tier stock, with upside potential, this one deserves a look.

Comment by idlefreebird on Mar 11, 2013 8:40pm
Iorn, the gentleman is wrong about 2014 forecast as 150,000 onces witch has now been revised to 140,000 onces doesn't include Bell Creek. Therefore even if they only produce 140,000 from Timmins West at 3,000 tpd then one must add the 20,000 to 25,0000 that has been the output comming from Bell Creek and that is at 500 tpd.Then it is safe to be conservative and say Lakeshore will produce a ...more  
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