Second Quarter 2014 ("Q2/14")
-- Record production of 52,300 ounces, 70% increase from second quarter 2013 ("Q2/13") -- Record gold sales of 53,500 ounces, close to double the 27,600 ounces sold in Q2/13 -- Cash operating cost(1) per ounce sold of
US$556, 39% better than US$908in Q2/13 -- All-in sustaining cost(2) per ounce sold of US$784, 38% improvement from Q2/13 -- Total production costs(3) of $32.5 millioncompared to $26.0 millionin Q2/13, reflecting significantly higher volumes -- Cash and bullion increased $14.3 millionin Q2/14 to $53.4 millionat June 30, 2014
Six Months 2014 ("6M/14")
-- Record production of 96,900 ounces, 79% increase from first six months of 2013 ("6M/13") -- Record gold sales of 96,500 ounces, 80% increase from 53,700 ounces sold in 6M/13 -- Cash operating cost per ounce sold of
US$585, 38% better than US$944in 6M/13 -- All-in sustaining cost per ounce sold of US$862, 38% improvement from 6M/13 -- Total production costs of $62.1 millionversus $52.1 millionin 6M/13, reflecting higher production volumes -- Cash and bullion increased $19.4 millionin 6M/14 to $53.4 millionat June 30, 2014
Revenues in Q2/14 totaled
For 6M/14, higher gold sales resulted in a 66% increase in revenues to
"Another key priority is extending mine life with drilling continuing at both our Timmins West and
The Company's key performance targets for the full-year 2014 include:
-- Gold production of 160,000 - 180,000 ounces; -- Cash operating cost per ounce sold of
US$675to US$775; -- All-in sustaining cost per ounce sold between US$950and US$1,050; -- Total production costs of $128.0 million; and, -- Total principal debt repayments of $25 million.
The Company is well positioned to achieve the top end of its full-year 2014 target range for production and to meet, and possibly beat, its targets for cash operating costs and all-in sustaining costs. In addition, after repaying
The Company's Outlook section contains forward-looking information within the meaning of certain securities laws. The Outlook section, also included in the Company's MD&A, represents the Company's guidance and forms the basis for most of the forward-looking information disclosed elsewhere in these documents and in other areas such as other press releases, newsletters, fact sheets and the Company's website. Readers are directed to the Forward-Looking Statements advisory at the end of this press release for cautionary language relating to forward-looking information.
Conference Call & Webcast
Conference ID: 75046433 Participant call-in: 647-788-4922 or 877-223-4471 (North American toll free number) Replay number: 416-621-4642 or 800-585-8367 (North American toll free number) Re-dial ID: 75046433 Available until:
11:59 pm( August 7, 2014)
Scientific and technical information contained in this press release related to mine engineering and production has been reviewed and approved by
Scientific and technical information related to resources, exploration drilling and all matters involving mine production geology contained in this press release, or source material for this press release, was reviewed and approved by
1. Cash operating costs and cash operating cost per ounce are Non-GAAP measures. In the gold mining industry, cash operating costs and cash operating costs 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 cash operating costs 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 costs and cash operating cost per ounce to total production costs for the three and six months ended
June 30, 2014and 2013 is set out on page 18 s set of the Company's MD&A filed on SEDAR at www.sedar.com and at www.lsgold.com. 2. Starting in the second quarter 2013, the Company has adopted a total all-in sustaining cost performance measure, which is a non-GAAP measure. The measure is intended to assist readers in evaluating the total costs of producing gold from current operations. While there is no standardized meaning across the industry for this measure, the Company's definition conforms to the all-in sustaining cost definition as set out by the World Gold Councilin its guidance note dated June 27, 2013. The Company defines all-in sustaining cost 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 cost excludes growth capital, reclamation cost accretion not related to current operations, interest and other financing costs and taxes. The most directly comparable measure prepared in accordance with GAAP is total production costs. A reconciliation of all-in sustaining cost to amounts included in the Consolidated Statements of Comprehensive Loss (Income) for the three and six months ended June 30, 2014is set out on page 18 of the Company's MD&A filed on SEDAR at www.sedar.com and at www.lsgold.com. 3. Total production cost is the most directly comparable GAAP measure for both cash operating costs and all-in sustaining costs. Included in total production cost for the periods covered in this press release are non- cash share based payment expense including: $0.1 millionfor both the second quarter of 2014 and 2013, as well as $0.2 millionfor both the first six months of 2014 and 2013. The calculation of cash operating cost per ounce sold and all-in sustaining cost per ounce sold exclude this non-cash payment expense.
All statements, other than statements of historical fact, contained or incorporated by reference in this press release including, but not limited to, any information as to the future financial or operating performance of
Other than as specifically required by law, the Company does not intend, and does not assume any obligation, to explain any material difference between subsequent actual events and such forward-looking statements, or to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or otherwise. These forward-looking statements represent management's best judgment based on facts and assumptions that management considers reasonable, including that: there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, power disruptions, damage to equipment or otherwise; permitting, development, operations, expansion and acquisitions at the
Forward-looking statements include, but are not limited to, possible events, statements with respect to possible events, statements with respect to the future price of gold and other metals, the estimation of mineral resources and reserves, the realization of mineral reserve and resource estimates, the timing and amount of estimated future production, costs of production, expected capital expenditures, costs and timing of the development of new deposits, success of exploration and development activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of exploration and mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, completion of acquisitions and their potential impact on the Company and its operations, limitations on insurance coverage and the timing and possible outcome of pending litigation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".
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. As well as those factors discussed in the section entitled "Risk Factors" in this press release and the Company's most recently filed AIF, known and unknown risks which could cause actual results to differ materially from projections in forward-looking statements include, among others: fluctuations in the currency markets; fluctuations in the spot and forward price of gold or certain other commodities (such as diesel fuel and electricity); changes in interest rates; changes in national and local government legislation, taxation, controls, regulations and political or economic developments in
Although the Company has attempted to identify important factors (which it believes are reasonable) that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements
FOR FURTHER INFORMATION PLEASE CONTACT:
Lake Shore Gold Corp. Tony MakuchPresident & CEO (416) 703-6298 Lake Shore Gold Corp. Mark UttingVice-President, Investor Relations (416) 703-6298 www.lsgold.com Source: Lake Shore Gold Corp.