Lake Shore Gold reports lower cost per ounce for Q2
Lake Shore Gold Corp. has announced preliminary cash operating costs of US$570 per ounce of gold for Q2 2014. The $570, which includes US$30 per ounce for royalties, represents a 37 per cent improvement over cash operating costs of US$908 per ounce in Q2 2013.
Preliminary all-in sustaining cost per ounce for the quarter was US$810, an improvement of 36 per cent from US$1,257 in Q2 2013.
Total production costs in Q2 2014 are estimated at approximately $33 million.
Final numbers were to be announced on July 31 when the company was to release its full second quarter financial results.
“Effectively managing unit costs is a key driver of our success and our ability to generate free cash flow,” said Tony Makuch, president and CEO of Lake Shore Gold. “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.”
Also in Q2, the company reported record gold production of 52,300 ounces.
Lake Shore Gold 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.