Home / Research Tools
Research Tools
| | Corporate Profile: Lake Shore Gold Corp
Publisher: Kaiser Research Online
Author: Copyright 2009 John A Kaiser
|
| |
Lake Shore Gold Corp (LSG-T)
| Lake Shore Gold Corp is an emerging gold producer with a portfolio of projects in the Timmins mining district of northern Ontario and Québec. Lake Shore is on track to commence processing development ore from its flagship 100% owned Timmins project in 2009, with production at Timmins project expected to increase to approximately 500 tonnes per day by the end of the year, and to 1,500 tonnes per day by the end of 2010. Other projects in Lake Shore's portfolio include the Thunder Creek joint venture, owned 60:40 with partner West Timmins Mining, where high gold grades in porphyry-style mineralization have been reported, and the Bell Creek Complex that surrounds the company's Bell Creek Mill and which is considered as likely the second property the company will eventually be able to place in production. The company is run by CEO Brian Booth, and has a strategic alliance with Hochschild Mining. In August 2009 the company announced plans to merge with West Timmins Mining, its partner on the Thunder Creek project, offering 0.73 LSG share per West Timmins share. |
Key to Understanding IPV Charts and Spec Value Hunter Tables
| An IPV Chart is a graphical presentation of a Spec Value Hunter table that has been constructed according to the Rational Speculation Model developed by John Kaiser. The IPV Chart allows speculators to identify which projects offer poor, fair or good speculative value in both absolute and relative terms. The speculative value depends on the project stage, the project's implied value as calculated by the company's fully diluted capitalization, stock price and net project interest, and the dream target deemed appropriate for the project. A dream target is what a project would be worth in discounted cash flow terms once in production. |
| Green background indicates the dream target judged appropriate for this play by John Kaiser - otherwise unranked. |
Poor Speculative Value -   |
Fair Speculative Value -  |
Good Speculative Value -   |
| Note: narrow arrows indicate IPV is outside the fair value channel but within 25% of the fair value limits |
| Click on the company name to view the company profile, the project name to view project details. |
| Click on the project icon if its background is shaded to get the IPV Chart for that company. |
| Timmins West |  | 100% WI | Canada | 9-Production |
|---|
| Timmins West 43-101 Economic Study (USD except where noted otherwise) |
| PEA | Feb 12, 2012 |
| Stantec | Timmins West |
| Mining Scenario | TR | Mining Costs |
| Mining Type: | UG |
| Cost Currency: | USD |
| Processing Type: |
|
| Capital Cost: | $160,000,000 |
| Operating Rate: | 3,000 tpd |
| Sustaining Cost: | $225,000,000 |
| Operating Days: | 365 |
| Operating Cost: | $99.00/t |
| Strip Rate: |
|
| BC Cash Cost per Unit: USD | $774/oz Au |
| Mine Life: | 10 years |
| BC Cash Cost Net By-Products: USD | $774/oz Au |
| LOM Tonnage: | 8,600,000 t |
| BC All-In Cost Net By-Prod: USD | $1,049/oz Au |
| Est Startup: |
|
| Spot All-In Cost Net By-Prod: USD | $1,049/oz Au |
| Production Potential |
| Metal 1 | Metal 2 | Metal 3 | Metal 4 |
| Metal: | Au |
|
|
|
| Grade: | 5.20 g/t |
|
|
|
| Recovery: | 96.0% |
|
|
|
| Annual Output: | 140,000 oz |
|
|
|
| LOM Output: | 1,400,000 oz |
|
|
|
| Base Case Price: | $1,500/oz |
|
|
|
| Spot Price: | $1,315/oz |
|
|
|
| Base Case NSR: | $191.78/t |
|
|
|
| Spot NSR: | $168.13/t |
|
|
|
| Base Case Valuation |
| Reported Valuation Currency: | USD |
| Pre-Tax NPV: | $575,000,000 |
| Discount Rate: | 5% |
| After-Tax NPV: |
|
| Total Base Case NSR USD: | $191.78/t |
| Pre-Tax IRR: | 105% |
| Total Spot NSR USD: | $168.13/t |
| After-Tax IRR: |
|
| Annual Pre-Tax Cash Flow Base Case and Net CF/FDSH USD: | $101,595,000 | $0.16 | Pre-Tax Payback: |
|
| Annual Pre-Tax Cash Flow Spot and Net CF/FDSH USD: | $75,702,000 | $0.11 | After-Tax Payback: |
|
| Enterprise Value CAD : | $1,063,595,728 | $2.12/sh | Share Price: | $2.08 |
| Note: |
| Comparative Valuations using Life of Mine Averages |
| Discount Rate: | 0% | 5% | 10% | 15% |
| Base Case Pre-Tax NPV USD: | $630,950,000 | $429,286,309 | $296,367,759 | $206,051,743 |
| Base Case Pre-Tax Net NPV/Sh USD: | $1.25 | $0.85 | $0.59 | $0.41 |
| Premium BC PT NPV over EV: | ($0.39) | ($0.79) | ($1.06) | ($1.23) |
| Spot Pre-Tax NPV USD: | $372,020,000 | $238,868,325 | $151,730,236 | $93,050,894 |
| Spot Pre-Tax Net NPV/Sh: | $0.74 | $0.48 | $0.30 | $0.19 |
| Premium Spot PT NPV over EV USD: | ($0.90) | ($1.17) | ($1.34) | ($1.46) |
| The comparative NPV calculations assume constant annual cash flow based on the life of mine average annual payable production and CapEx spent in year one. The operating cost includes the LOM sustaining capital. Due to details such as ore scheduling these NPV figures may differ from those of the 43-101 economic study. |
| After-Tax Valuations using Spot By-Product Prices |
 |
 |
|
| |
| | You can return to the Top of this page
|
|
