Lake Shore Gold Corp. (TSX:LSG,NYSEMKT:LSG) announced its financial and operating results for Q4 2014 as well as 2014 as a whole, noting that it achieved record yearly production of 185,600 ounces.
Lake Shore Gold Corp. (TSX:LSG,NYSEMKT:LSG) announced its financial and operating results for Q4 2014 as well as 2014 as a whole, noting that it achieved record yearly production of 185,600 ounces. That’s up 38 percent from 2013 and above targeted 2014 production of 160,000 to 180,000 ounces.
Other highlights include:
- 23% improvement in cash operating cost per ounce sold to US$592
- 2014 target: US$675 to US$775
- 23% improvement in all-in sustaining cost per ounce sold to US$872 (based on production costs of $120.3 million)
- 2014 target: US$950 to US$1,050
- $44.7 millionof debt repayments
- 2014 target: $20.0 to $25.0 million
- 29% increase in ore reserves
- 2014 target: replace reserves mined in 2014
Tony Makuch, president and CEO of Lake Shore, commented:
We had a record year in 2014 with production, cash operating costs, all-in sustaining costs and total production costs all beating our targets for the year. We also grew our cash position by over 80% and paid off most of our senior secured debt. During the fourth quarter, we achieved a major milestone, reaching a half million ounces of total gold production from our Timmins operations. We finished the year strong, with both cash operating costs and all-in sustaining costs during the fourth quarter continuing to beat our full-year target ranges.
Turning to 2015, we have continued to generate strong operating results, increase our cash and reduce debt during the first quarter. We also recently announced a 29% increase in our reserves, adding to mine life at both Timmins West and Bell Creek. At the 144 Gap Zone, we have made additional progress with exploration drilling, tripling the minimum strike length of the Zone and identifying a sizable high-grade core. We now have seven drills working at the 144 Gap and have advanced our exploration drift from Thunder Creek over 200 metres. We plan on having considerable news flow about the 144 Gap discovery throughout 2015, and are planning to establish a first resource for the end of 2015, to be released in the first quarter of 2016.
2015 plans include:
In 2015, the Company is targeting gold production of 170,000 – 180,000 ounces with estimated cash operating costs per ounce sold in the range of US$650 to US$700, all-in sustaining costs per ounce sold between US$950 and US$1,000 and total production costs of$125.0 million. The 2015 targets for production and units costs are similar to the target ranges established a year earlier for 2014.