The mill could have been completed to 3000 tpd by the end of 2012. The main problem in not meeting that date was too many delays in making key decisions at the corporate level. Too much time wasted at the corporate level trying to decide what tonnage the mill should run at. BUT, the deadline for completion of mill construction didnt change. Something has to give....when you compress the construction schedule costs rise because you have to accelerate equipment deliveries and fabrication, and make contractors work overtime and night shifts. So another corporate decision was made to add a "phase" of construction to achieve only 2500 tpd by the end of 2012, NOT the original 3000 tpd...Brilliant!...or is it? Construction period is extended by at LEAST another 6 months!!, resulting in lost valuable production time and wasting valuable shareholder cash.
In mid 2012 LSG reported $15 to $20 million in savings by reducing capital spending....yet just last week they announce that they need to borrow another $35 million.????
TORONTO, ONTARIO -- (MARKETWIRE -- June 13, 2012) - Lake Shore Gold Corp. (TSX:LSG) (NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced plans to target a reduction in its 2012 capital spending program of $15 to $20 million....
TORONTO, ONTARIO -- (Marketwire -- February 01, 2013) - Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced that the Company has finalized the drawdown of the Company's $35 million standby credit facility
Where is all the money going??? The company hasnt even turned a profit yet and doesnt expect to until at least the end of this year...maybe.
With all the accumulated debt it could take decades to pay it off. They keep dangling the Fenn Gibb carrot and the Bell Creek shaft carrot in front of shareholders...what they dont tell them is that Fenn Gibb will cost about a $Billion to build and a new shaft at Bell Creek could be a $1/4Billion. Where is that cash supposed to come from??
The strongest horn blowers here are the ones who have invested heavily in LSG stock when it bottomed, hoping to bail out after convincing other poor souls to invest their life savings to drive the price up.
Dont be fooled by the smoke and mirrors magic act. Be informed before you sell the farm and dive in. I bought in at $4 a share and could kick myself now for having been so gullible.