Lake Shore Gold says it is on track to meet its 2013 guidance after announcing positive results for its year-to-date production.
The company produced 16,700 ounces of gold during November 2013 from processing 102,600 tonnes (3,420 tonnes per day) at an average grade of 5.3 grams per tonne. Year-to-date production to the end of November totaled 117,100 ounces of gold.
Based on strong production results in the first two months of the fourth quarter of 2013, the company expects its cost performance in the fourth quarter to improve from the US$701 per ounce of cash operating costs and US$1,027 per ounce of all-in sustaining costs previously reported for the third quarter of the year. With increased production and lower costs, the company is generating net free cash flow, with cash and bullion at November 30, 2013 totalling approximately $26.0 million versus $15.2 million at September 30, 2013.
“We are firing on all cylinders with both throughput levels and grades meeting and exceeding target levels,” Lake Shore president Tony Makuch said in a statement. “In fact, since completing mill commissioning in the third quarter, monthly throughput levels have consistently been greater than the mill’s nameplate capacity.
“Very importantly, we are generating net free cash flow, which means cash flow after all requirements, including our operating, corporate and exploration costs, growth and sustaining capital, as well as interest expense and debt servicing.”
Lake Shore Gold operates three gold complexes and a number of exploration projects, all in the Timmins area.