Welcome!

News Feed Item

Lake Shore Gold Reports Preliminary Second Quarter Costs

- Preliminary cash operating cost(1) per ounce sold of US$570 in second quarter 2014 ("Q2/14"), 37% improvement from US$908 per ounce in second quarter 2013 ("Q2/13")

TORONTO, ONTARIO -- (Marketwired) -- 07/10/14 -- Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced preliminary cash operating costs and AISC for Q2/14 and H1/14. Final numbers for these measures will be available on July 31, 2014 when the Company releases its full second quarter 2014 financial results. Preliminary cash operating cost per ounce sold for Q2/14 is approximately US$570 (including US$30 per ounce for royalties), a 37% improvement from US$908 per ounce in Q2/13. AISC per ounce sold in Q2/14 is expected to be approximately US$810 per ounce, an improvement of 36% from US$1,257 in Q2/13. Total production costs in Q2/14 are estimated at approximately $33 million.

In H1/14, preliminary cash operating costs are US$600 per ounce sold, a 36% improvement from H1/13 and better than the Company's full-year 2014 guidance of between US$675 and US$775 per ounce. AISC per ounce sold for the half year is estimated at US$890, a 36% improvement from a year ago and better than the Company's target range for 2014 of US$950 to US$1,050 per ounce. Total production costs for the first six months of 2014 are estimated at approximately $63 million.


----------------------------------------------------------------------------
                             Q2/13     Q3/13     Q4/13     Q1/14     Q2/14  
----------------------------------------------------------------------------
Production (oz.)                                                            
Timmins West                24,200    22,600    41,600    33,900    41,900  
Bell Creek                   6,600     6,300    10,100    10,700    10,400  
                          --------------------------------------------------
Total                       30,800    28,900    51,700    44,600    52,300  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gold poured (oz.)           31,800    25,900    51,400    45,700    53,500  
Gold sold (oz.)             27,600    32,300    49,600    42,900    53,500  
Avg. price (US$/oz.)         1,409     1,324     1,261     1,294     1,289  
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Costs (US$/oz. sold)                                                        
Cash operating                908       701       609       630       570   
All-in sustaining            1,257     1,027      849       970       810   
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Effectively managing unit costs is a key driver of our success and our ability to generate free cash flow. Based on our volumes and the margins we have realized, we have increased our cash and bullion by close to $20 million so far in 2014, to approximately $53 million. We have also repaid over $17 million in debt. With the exception of $5 million from a flow-through financing, completed to advance work at our growth projects and key exploration targets, all the cash and bullion added this year has been generated internally. Based on the current gold price, we expect to continue to generate solid free cash flow over the balance of the year."

The Company's full financial results for Q2/14 and H1/14 will be released before the market opens on July 31, 2014, with a conference call and webcast to follow that afternoon at 3 pm. Details of the conference call and webcast will be released shortly.

About Lake Shore Gold

Lake Shore Gold is a gold mining company that is in production and is generating net free cash flow from its wholly owned operations in the Timmins Gold Camp. The Company is in production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. In addition to current operations, the Company also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

Notes


1.  Cash operating costs and cash operating cost per ounce are Non-GAAP
    measures. In the gold mining industry, cash operating costs and per
    ounce are common performance measures but do not have any standardized
    meaning. Cash operating costs are derived from amounts included in the
    Consolidated Statements of Comprehensive Income (Loss) and include mine
    site operating costs such as mining, processing and administration as
    well as royalty expenses, but exclude depreciation, depletion and share-
    based payment expenses and reclamation costs. Cash operating costs per
    ounce are based on ounces sold and are calculated by dividing cash
    operating costs by commercial gold ounces sold; US$ cash operating costs
    per ounce sold are derived from the cash operating costs per ounce sold
    translated using the average Bank of Canada C$/US$ exchange rate. The
    Company discloses cash operating costs and per ounce as it believes the
    measures provide valuable assistance to investors and analysts in
    evaluating the Company's operational performance and ability to generate
    cash flow. The most directly comparable measure prepared in accordance
    with GAAP is total production costs. A reconciliation of cash operating
    cost per ounce to amounts included in the Consolidated Statements of
    Comprehensive Income (Loss) for the three and six months ended June 30,
    2014 and 2013 will be provided in the Company's MD&A accompanying the
    interim financial statements for the period ended June 30, 2014, which
    will be issued on July 31, 2014, and will be available on SEDAR at
    www.sedar.com and the Company's website at www.lsgold.com. 
2.  All-in sustaining costs and all-in sustaining cost per ounce are Non-
    GAAP measures. These measures are intended to assist readers in
    evaluating the total costs of producing gold from current operations.
    While there are no standardized meanings across the industry for these
    measures, the Company's definitions conform to the all-in sustaining
    costs definition as set out by the World Gold Council in its guidance
    note dated June 27, 2013. The Company defines all-in sustaining costs as
    the sum of production costs, sustaining capital (capital required to
    maintain current operations at existing levels), corporate general and
    administrative expenses, in-mine exploration expenses and reclamation
    cost accretion related to current operations. All-in sustaining costs
    exclude growth capital, reclamation cost accretion not related to
    current operations, interest expense, debt repayment and taxes. The most
    directly comparable measure prepared in accordance with GAAP is total
    production costs. The costs included in the calculation of all-in
    sustaining costs are divided by commercial gold ounces sold; US$ all-in
    sustaining cost per ounce sold is translated using the average Bank of
    Canada C$/US$ exchange rate. A reconciliation of all-in sustaining cost
    per ounce to amounts included in the Consolidated Statements of
    Comprehensive Loss (Income) for the three and six months ended June 30,
    2014 and 2013 will be provided in the Company's MD&A accompanying the
    interim financial statements for the period ended June 30, 2014, which
    will be issued on July 31, 2014, and will be available on SEDAR at
    www.sedar.com and the Company's website at www.lsgold.com. 

Contacts:
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298

Lake Shore Gold Corp.
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
www.lsgold.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
Actian Corporation has announced the latest version of the Actian Vector in Hadoop (VectorH) database, generally available at the end of July. VectorH is based on the same query engine that powers Actian Vector, which recently doubled the TPC-H benchmark record for non-clustered systems at the 3000GB scale factor (see tpc.org/3323). The ability to easily ingest information from different data sources and rapidly develop queries to make better business decisions is becoming increasingly importan...
Is the ongoing quest for agility in the data center forcing you to evaluate how to be a part of infrastructure automation efforts? As organizations evolve toward bimodal IT operations, they are embracing new service delivery models and leveraging virtualization to increase infrastructure agility. Therefore, the network must evolve in parallel to become equally agile. Read this essential piece of Gartner research for recommendations on achieving greater agility.
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Kubernetes, Docker and containers are changing the world, and how companies are deploying their software and running their infrastructure. With the shift in how applications are built and deployed, new challenges must be solved. In his session at @DevOpsSummit at19th Cloud Expo, Sebastian Scheele, co-founder of Loodse, will discuss the implications of containerized applications/infrastructures and their impact on the enterprise. In a real world example based on Kubernetes, he will show how to ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
To paraphrase someone famous, "The definition of insanity is to do something the same way over and over again and expect a different result". Humans are creatures of habit and when it comes to storage, old habits die hard. Why do we continue to put our faith in legacy storage providers when they haven't invented anything new in decades. Sure, they re-badge their products every couple of years to make their messaging look modern, but ultimately, it's the same old stuff with a new coat of lipsti...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...