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

Financial Position Looks Good

[Psalm9012]

 

 

 

 

 

CAPITAL EXPENDITURES PICTURE:

 

 

 

Capital Requirements 2013:   $90 million

 

    less      Capital expenditures Q1:        $36.8 million

 

                Remaining capital requirements: $53.2 million

 

 

 

CASH & EQUIVALENTS AVAILABILITY:

 

 

 

                Cash & equivalents:                                $51.9 million

 

                Sprott line of credit:                               $35 million

 

                Total                                                        $86.9 million

 

 

 

EXCESS CAPITAL AVAILABLE 2013: $86.9 million - $53.2 million = $33.7 million

 

 

 

 

 

OPERATING COSTS PICTURE:

 

 

 

                Q1 average price oz Au:                         $1630.00

 

                Q1 operating costs per oz:                     $982.00

 

     so       all other costs per oz:                            $648.00 (since break even for quarter)

 

 

 

      if        Q4 operating costs per oz:     $700.00

 

     and     all other costs per oz:             $648.00

 

    then     gold can drop to:                     $1348.00 and we still break even

 

 

 

 

 

I think the future looks good.

 

 

 

Wow, 2 hours into the quarter press release and no has commented – that’s how discouraged we have become.

 

 

 

Greg

 

 

 

 

[1705493]

I'm sorry but LSG is currently making 100 dollars an ounce?????

[Psalm9012]

I believe I made an error in the cash position for the year. The $51.9 million cash & cash equivalents likely includes the $35 million line of credit. So, with remaining capital requirements of $53.2 million and gold below $1400.00 per oz., they may run out of money. That said, I'm confident they can work out a deal with Sprott to cover until they are cash flow positive at year's

[goldhappy]

I appreciate the break down of numbers you share with the bullboard.