Total Cash Costs of US$595/oz
Here's analyst Daniel Earle's short analysis of the preliminary Q3/14 cash costs that Lake Shore Gold Corp. reported.
As of now, Preliminary total cash costs in Q3/14 came in at US$595/oz (US$556/oz in Q2/14), while preliminary AISC were US$862/oz (US$784/oz in Q2/14); we expected total cash costs and AISC to increase, given that Daniel Earle believed the grade would trend towards the reserve grade.
On both measures, the company significantly beat its full year guidance for total cash costs of US$675-US$775/oz and AISC of US$950-US$1,050/oz; its year-to date preliminary total cash costs are US$588/oz and AISC are US$862/oz, which are 13% and 9% lower, respectively, than the low end of the company's guidance range.
The slight increase on costs comes from the lower grade in the quarter, but was in line of the reserve grade of 4.6 g/t; however the lower costs versus Daniel Earle's estimate appears to be because of lower than anticipated unit costs.
Lake Shore increased its cash and bullion by approximately $14mm in Q3/14 to $67mm (up from $53mm at the end of Q2/14), while repaying approximately $3mm of debt in the quarter ($20mm paid year-to-date).We can expect the Q3/14 financial results to be released after-market on Wednesday, October 29, with the conference call at 2:00 PM, the following day.
More news to come then! |
