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

RBC Upgrade (excerpt)

[shawk]

With potential to repay the Convertible Debenture with cash. At $1,200 gold, USD/CAD exchange rate of 0.80, and sustaining/expansion capital of $60MM and $56MM in 2015 and 2016, we estimate free cash flow of $32MM and $33MM, respectively. We forecast sufficient cash by mid-2017 to allow the company to repay the convertible debenture without issues shares (Exhibit 4). 144 Gap Zone has potential to extend the Timmins West mine life. While we need to see the results from the Q3/15 underground fill-in drill program (needed to confirm the geometry, continuity and grade of the 144 Gap mineralization) we see the potential for a 500k to 750k oz gold resource. We expect diluted gold grades in the 5.0 to 5.5/Au range similar to the Thunder Creek deposit at the Timmins West mine. We believe the 144 Zone resources have the potential to extend the reserve life from 3.5 years to 7 or 8 years. P

[bigdaddycash]

I would expect the company could be taken out at very close to RBCs $1.80 target with ease.  Not only is this a very healthy premium on the current market price but it is also very close to the $1.82.price that the debenture holders would be forced to convert.  Of course I'd love for the stock to get above $1.80 but if any mid/major has the LSG in its sight and can stomach $1.80 - we

[bossu]

There must have been some  ''leakage''somewhere !!!Difficult to find another reason for that  + 6% share price appreciation in today's market. We will know soon the reason and ''IF''the news are good on the drilling front we could swing to $ 1,40 first and from there, we could easily go to $ 1,80 during the year. As far as being taken over, LSG has to

[makingdough]

Just go to the tsx ... check biggest % gainers there are loads of gold companies there. It was industry wide. 

[bossu]