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

TSX:LSG.DB - Post Discussion

LAKE SHORE GOLD CORP 6.25 PCT DEBS > Realistic valuation?
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Post by Risktaker7 on Feb 27, 2015 12:56pm

Realistic valuation?

I brought this up a few times on the board and do your own research what junior miners are worth with ounces in the ground.You can use the recent Goldcorp takeover of probe mines with total cost of 526 million with about 2 million high grade in the ground and maybe about 4 million of low grade at 1 g/t. With Lakeshore being a producer with free cash flow and almost out of debt, you should be able to triple the valuation at least  for what Probe got with a grassroots project. This depends of how long the mine life will be extended and of course the debentures increasing the market cap and gold prices staying at least at $1200. A rough estimate of fair realistic valuation of Lakeshore would be $2 to $3 by year end.


Risk
Comment by BrahmaViddo on Feb 27, 2015 1:48pm
I wonder why the almighty and all knowing Goldcorp would take Probe over Lakeshore........... clearly they know something about why Probe is much better than Lakeshore.... HMMMMMMMMMM.........
Comment by yoda2 on Feb 27, 2015 1:56pm
Risk With this share price estimate are you indicating a fair valuation for LSG would be between $1 billion and $1.5 billion? For those of us who do not follow takeovers ; would this be a price someone would likely pay to buy all of LSG?
Comment by idlefreebird on Feb 27, 2015 5:39pm
Ristaker , you might want to double check but I do believe probe has 2 million onces low grade open pit at 1 gpt and 2 million undergroung 5 plus gpt.GLTAL
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