Lake Shore Gold bounces after optimistic Q2 announcement
Lake Shore Gold (NYSE:LSG) announced on Monday that it anticipates a "significant improvement from the first quarter of 2013" in its Q2 results. Following the announcement, the company jumped 56% on the Toronto stock exchange.
"We decided to update the market at this time, given that we are seeing a disconnect between the excellent progress we are making with our operations and projects and recent movements in our share price," said Tony Makuch, president and CEO of Lake Shore Gold in the press release.
The company expects yield reports of 29,000 ounces at an average grade exceeding 4.0 grams per tonne. Quarter to date, output is averaging about 27,000 ounces of gold.
In 2012, Lake Shore Gold entered into agreement for a credit facility of up to $70 million with Sprott Resource Lending Partnership which it will use to expand production at its Bell Creek project. The expansion will likely be completed by September, the company said in today's announcement.
Creative Commons image by: Rodrigo Paoletti