Lake Shore Gold (TSX:LSG, Stock Forum), a Toronto-based gold mining firm engaged in the operation, exploration and development of three gold complexes in the Timmins Gold Camp, released preliminary cash cost results and all-in sustaining costs (“AISC”) from Q1 2014.
According to the news release, preliminary cash operating costs per ounce during Q1 2014 was approximately US$630 which included US$33 royalties per ounce. This bettered the company's guidance for full-year 2014 guidance of US$675 – US$775.
The preliminary estimates showed that cash operating costs per ounce for the quarter improved 36% from the matching 2013 quarter while AISC improved 37%.
Company president and CEO, Tony Makuch, commented on the achievement, “After beating our cost guidance in 2013, we have gotten off to a good start this year with our cash operating costs during the first quarter coming in below our full-year target range.”
He went on to explain, “Our unit cost performance, in part, reflects strong production volumes for the quarter, as well as our ongoing commitment to effectively managing our costs in order to build our financial strength in support of both our current operations and our long-term growth.”
Then he added, “Based on our production and costs so far in 2014, we have been able to increase our cash and bullion by about $7.0 million, to $41.0 million, while also repaying approximately $3.7 million of debt and making a $3.2 million interest payment on our convertible debentures at the end of March.”
And finally he concluded, “As we move forward, we are well positioned to achieve our guidance for the full year, including production of 160,000 to 180,000 ounces of gold with cash operating costs of between US$675 and US$775 per ounce and AISC of US$950 to US$1,050 per ounce.”
Lake Shore Gold was in the news recently when the company announced the production of 44,600 ounces gold during Q1 2014.
Shares rose 6.25% on the news to $0.85 per share.
Currently there are 416.6m outstanding shares with a market cap of $350.0 million.