Higher grades and lower costs help Lake Shore Gold to narrow Q3 loss
TORONTO (miningweekly.com) – TSX- and Amex-listed Lake Shore Gold this week said it had narrowed its third-quarter loss to $1.7-million, or nil per share, down from a loss of C$10.8-million, or C$0.03 a share, in the same period a year earlier, helped, in part, by higher grades and lower costs.
The Toronto-based miner said revenue in the three months ended September 30, climbed 31% to C$44.3-million, up from C$33.73-million a year earlier.
Lake Shore reported total gold sales of 32 300 oz, almost 60% more than in the same period last year, at an average price of C$1 324/oz, which was 20% lower.
The company, which owns three multimillion-ounce gold complexes in the century-old Timmins Gold Camp, in Northern Ontario, produced 28 300 oz of the yellow metal during the period, and poured 25 900 oz. Output was boosted by an average grade of 4.7 g/t, which was 34% higher than the comparable 2012 period.
Lake Shore said it was on track to produce 120 000 oz to 135 000 oz of gold, at cash operating costs of between $800/oz and $875/oz, and total capital investment of about $90-million.
Cash operating cost per ounce sold during the third quarter averaged $701/oz, including $29/oz for royalties, compared with $1 014/oz, including $31 for royalties, in the same period of 2012, and $908/oz in the second quarter.
For the fourth quarter, the company expects to achieve all-in sustaining costs below $1 000/oz and to generate its first quarter of net free cash flow, based on current gold prices.
“We came out of the third quarter with considerable momentum, well positioned for a strong finish to 2013,” president and CEO Tony Makuch said.
Meanwhile, the company also reported that Diane Francis had joined the board effective from Tuesday.
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