Ben Kramer-Miller • 14 Comments
The Investment Doctor
Mon, Feb. 22, 9:19 AM
Mon, Feb. 8, 9:19 AM
Mon, Feb. 8, 8:57 AM
- Lake Shore Gold (NYSEMKT:LSG) +9.3% premarket after agreeing to be acquired by Tahoe Resources (NYSE:TAHO) in an all-stock deal valued at ~C$945M.
- TAHO will pay 0.1467 of its stock for each LSG share, which works out to C$1.71, a 14.8% premium to LSG shares, based on both stocks' Friday close; the companies say the deal has an implied equity value of C$945M, assuming the conversion of some debentures.
- The deal adds LSG's low-cost gold Timmins West and Bell Creek mines in Timmins, Ontario, to TAHO's portfolio, which already includes the Escobal mine in Guatemala and two mines in Peru.
- The combined company is expected to produce 370K-430K oz. of gold in 2016 at total cash costs of $675-$725/oz. and all-in costs of $950-$1,000/oz.
- TAHO -2.7% premarket.
Jun. 25, 2015, 3:16 PM
- Lake Shore Gold (LSG +3.6%) says it made a second gold discovery in less than a year at its 144 exploration area, based on results from an additional 25 drill holes and two wedge holes.
- LSG says its success in drilling along the TC-144 trend continues to identify areas for potential future resource growth within the Timmins West Complex, and continues to support its belief that the TC-144 is host to multiple gold deposits that can establish Timmins West as a major gold mining center.
Jun. 8, 2015, 12:49 PM
- Lake Share Gold (LSG +2.4%) is upgraded to Outperform from Underperform with a $1.80 price target, raised from $1.10, at RBC, which says LSG is generating free cash flow at $1,200/oz. gold and forecasts sufficient cash to repay the $103.5M convertible debenture due in 2017.
- RBC also says LSG's 144 Zone exploration success could extend the reserve life materially, and the firm expects the shares to continue to outperform its peers.
Jan. 7, 2015, 9:59 AM
- Lake Shore Gold (LSG +2.1%) says it achieved record annual gold production in 2014 of 185.6K oz., exceeding its 160K-180K target range for the year.
- Mill throughput totaled nearly 1.25M metric tons at an average grade of 4.8 grams/metric ton; a total of 186.5K oz. of gold was poured, while gold sales totaled 183.3K oz. at an average selling price of US$1,269/oz.
- LSG says it repaid the remaining $20M owing on a standby line of credit; following the repayment, cash and bullion at year-end 2014 totaled $60M, vs. $34M a year ago.
Oct. 3, 2014, 12:45 PM
Oct. 3, 2014, 11:24 AM
- Among a number of rating changes made by RBC today, the team throws in the towel on its Outperform call on Kincross Gold (KGC -4.1%), downgrading to Sector Perform and cutting the price target to $4.50 from $5.50. Also downgraded is Lake Shore Gold (LSG -7.6%) - to Underperform from Sector Perform.
- Getting a little help from an upgrade as gold tumbles below $1,200 per ounce, is AuRico Gold (AUQ -0.3%) - now an Outperform thanks to attractive valuation, declining costs, and lower capital intensity. Also upgraded to Outperform is Fresnillo (OTCPK:FNLPF -8.3%), while Newmont Mining (NEM -1.3%) is boosted to Sector Perform from Underperform.
- The GDX is down 3.1% on the session.
- Previously: Stocks and dollar higher, bonds and gold lower following jobs number
- ETFs: GDX, GDXJ, NUGT, DUST, JNUG, GLDX, JDST, RING, GGGG, SGDM, PSAU
Jul. 14, 2014, 12:47 PM
Jul. 11, 2014, 10:20 AM
- Lake Shore Gold (LSG +3.6%) opens on a strong note after saying Q2 cash costs were ~37% below those of the same quarter a year earlier.
- Preliminary cash operating cost/oz. sold for Q2 was ~$570 vs. $908 in the year-ago quarter; AISC/oz. sold in Q2 is expected at ~$810/oz., up 36% from $1,257 in Q2 2013.
Jul. 7, 2014, 12:21 PM
- Lake Shore Gold (LSG +12%) surges after reporting record Q2 production, recording a 70% Y/Y rise in gold production, and H1 2014 output of 96,900 oz., a 79% Y/Y increase.
- LSG, which owns three multimillion-ounce gold complexes in the Timmins gold camp in northern Ontario, produced 52,300 oz. of gold, placing it on track to achieve the top end of its production guidance of 160K-180K oz. of gold this year.
- LSG said it had poured and sold some 53,500 oz. of gold during the quarter at an average selling price of $1,289/oz., vs. 27,600 oz. sold in the year-ago quarter at an average price of $1,409/oz.
- Lake Shore’s Toronto-listed stock rose to a new 52-week high on Friday on the report, which was issued after Thursday's close.
Jul. 5, 2013, 9:29 AM
Lake Shore Gold (LSG) +3.4% premarket after saying it recorded gold output of 30,800 oz. during Q2, up 26% Y/Y and 33% Q/Q. Mill throughput averaged 2,540 tons/day and more than 2,800 tons/day during the final three weeks of June. Average grades improved throughout the quarter: 3.9 grams/ton in April, 4.5 in May, 4.6 in June.| Jul. 5, 2013, 9:29 AM | 1 Comment
Apr. 16, 2013, 11:58 AM
Analysts at RBC Capital think credit downgrades for some top gold miners are a strong possibility. There's a “moderate probability” Barrick Gold (ABX -0.1%) could trigger a one-notch downgrade at $1,400 gold; at $1,300, Newmont Mining (NEM +1.9%) could get downgraded, and Kinross Gold (KGC +1.8%) could get cut right to junk status. TD Securities also offers similarly disturbing conclusions. (also)| Apr. 16, 2013, 11:58 AM | 5 Comments
Mar. 19, 2013, 9:29 AM
Lake Share Gold (LSG) +9.5% premarket after reporting "solid progress" in 2012, producing ~85K oz. of gold for the full year and nearing completion of key construction programs. Production in 2013 is targeted at 120K-135K oz. of gold, capex at ~$80M, cash operating costs at $800-875/oz.| Mar. 19, 2013, 9:29 AM | 1 Comment