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

Debenture repayment planning

[JRaffles]

As LSG's sales are priced in US$ and expenses in C$, then it has turned out to be a positive decision by management that the 2012 debentures were both issued and repayable in C$.

 Therefore, if the C$ stays weak to Q3 2017, LSG would have benefited from the use of about CS90m in 2012, when the C$ was strong, but have a repayment date when the C$ may be weak.

The ideal scenario for LSG is to time its debenture repayments whilst the C$ is lowest against the US$.  However, the pre 2017 redemtion date debenture repayment options are limited.

Management may consider future options to buy C$, at a time when they are at their weakest, in order to repay the debentures in the last Q of 2017.

[goldhappy]

Real decent reflection about what is be/could happening with the debentures Raffles. That is new information on this board. I can't remember anyone posting this scenerio. It makes perfect scence. We have a very shrewd corporate board running our money. That is very comforting information. LSG building a mine/mill money with some borrowed money and being paid to borrow the money. Thanks

[goldhappy]

forgot to proof read...sorry about that

[cre8value]

jRaffles - great points. This brings up questions about the $100 million on the balance sheet.  How much of the $100 million is in C$ , US$ and gold? Does it offset the gains/losses with the debentures. It looks like the biggest question is how to use the money. What type of company are you trying  to create?) 1. Completely pay off the debentures?  (Is this the best way to use

[JRaffles]

My comment on your options are in red below:- 1. Completely pay off the debentures?  (Is this the best way to use the money? Why?). The debentures are at a 6.5% yield.  If cheaper debt could be found to replace debentures, then this debt could be rolled over. When the debentures were issued, LSG was not a highly rated company. If performance continues, then a new facility could be

[mary-ally-smith]

cre8value and JRaffles, thank you so uch for posting such great information.