Lake Shore Gold Corp. (TSX:LSG,NYSE MKT:LSG) announced its second quarter financial and operating results today. The company also discussed results for the six months ended June 2014. Highlights included record production of 52,300 ounces, a 70 percent increase from Q2 of 2013, nearly doubled gold sales year over year, and recorded net earnings of $13.1 million.
As quoted in the press release:
Revenues in Q2/14 totaled $75.1 million based on an average selling price of US$1,289 ($1,404) per ounce, which compared to revenues of $39.7 million and an average selling price of US$1,409 ($1,441) per ounce in Q2/13. Strong growth in sales volumes, reflecting higher production levels, accounted for the significant increase in revenues year over year. Net earnings in Q2/14 were $13.1 million, or $0.03 per common share, versus a net loss of $5.4 million, or $0.01 per common share, in Q2/13. Total capital expenditures during Q2/14 were $11.8 million, a reduction of 57% from $27.8 million in Q2/13. The $14.3 million increase in cash and bullion during Q2/14 was after debt repayments of $13.7 million during the quarter, including a $10.0 million prepayment made on the Company’s standby line of credit on June 4, 2014.
Lake Shore President and CEO, Tony Makuch, said:
Our company has performed very well so far in 2014 as demonstrated by our record results in both the second quarter and first six months of the year. Driven by our strong first-half results, we are well positioned to meet or exceed our 2014 performance targets. Performing well against our targets is a top priority for our company as it is the key to generating free cash flow and building our financial strength. In the first six months of 2014, we increased our cash and bullion by $19.4 million, to $53.4 million, while at the same time repaying $17.4 million of debt.