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

LSG vs NMI (to grammadux)

[ts9222]

(Apologies for hurting the virgin eyes of anybody married to a single stock without diversifying)

grammadux take a look at this one. Previously you complained about debt and country risk. Well this one has lower debt than LSG and is in a safe a country as Canada (Canadian company with mines operating in Australia).

Q2 earnings:

LSG
Net earning $1.7 m
Operating cash flow $26.4m
Production 44,400 oz
Cash Cost $$597
Market Cap 480.33M
Enterprise Value 505.28M
Debt (Long term) 92m
P/E:23.91

NMI
Net earning $12.1m
Operating cash flow 27.1m
Production 55,998 oz
Cash Cost $681
Market Cap 139.63M
Enterprise Value 138.85M
Debt (Long term) 23,4m
P/E:2.7

Market Cap and Enterprise Value of LSG is much higher 3.5x of NMI, but NMI has higher earning, higher production, lower debt, and way way lower P/E. A crazy low P/E and extremely undervalued. Their earning for the year (ttm) is C$0.38 and their share price is only C$1.04.
(Note: most financial sites have NMI earning and P/E number wrong because of the 5 for 1 share consolidation after merger, so they look 5 times worse than they really are. Some confuse NMI with NGN the pre-merger shell without the operating mines. NMI used to be CRK so you can see CRK had a P/E of 3.5 before Q2 earning,)

grammadux i know you will complain about cost and AISC, but their operating cost in Australian dollar has been plummetting as fast as $US gold with the slowdown in China. H1 Australian dollar gold was A$1522. Currently it is still above A$1500. They were profitable at close to A$1400 gold last year.

If you are still worried about cost, take a look at their recent bonanza grade discovery 386 g/t Au, 5,283 g/t Au:
https://finance.yahoo.com/news/newmarket-gold-identifies-high-grade-104500798.html

[ts9222]

This post has been removed in accordance with Community Policy

[ts9222]

Image didn't display, click on link, then click on "+Comparison" to add LSG.TO to chart. Since Q2 earnings came out EDV outperformed LSG by over 22%. https://finance.yahoo.com/echarts?s=EDV.TO+Interactive#{%22customRangeStart%22:1438142400,%22customRangeEnd%22:1439697600,%22range%22:%22custom%22,%22allowChartStacking%22:true}

[grammadux]

Some quick thoughts on NMI: AISC: Q2 $1036     Guidance for this year: $1020-1100 LSG:  Q2 $877       Guidance for this year: below $950 All numbers are in USD! Both companies benefit from the devaluation of their home currency (CAD and AUD!) So there is no advantage for NMI here Realized gold price for NMI in Q2 was close to

[ts9222]

I knew i could count on you to be the most critical :) That's good. No company is perfect and it's good to be aware of their weaknesses. "Realized gold price for NMI in Q2 was close to $1200, right now Gold is at $1115" Looking at the drop in $US gold price is meaningless to predict what will happen when their cost is in Australian dollars. H1 they sold gold at average A$1522

[ts9222]

If that is the most criticism you can raise, then NMI is in good shape. Correction: NMI Q1 AISC was $938 not $983. That was without the problem with the underground loaders. You didn't really address the HUGE gap in market cap and enterprise value between LSG and NMI, a 3.5X difference. Take a look at the charts comparing NMI with its peers including LSG and see how far undervalued NMI

[mary-ally-smith]

enough NMI cr@p for me, ts9222=ignored

[ts9222]

People so often fall in love with their one stock that they close their eyes to anything else that can make money. Loyalty to a corporation doesn't make one any more money. If LSG is really worth 3.5X more than NMI, it should be easy enough to state why it is worth so much more.