Just over two months ago, Makuch said the following:

"Tony Makuch , President and CEO of Lake Shore Gold, commented: "The $35 million of cash available from the Gold Note and $35 million of additional liquidity through the Standby Line will provide important balance sheet strength for Lake Shore Gold. With this Facility, as well as our $50 million of cash and gold bullion inventory and plans to reduce 2012 capital expenditures by $15 to $20 million, announced yesterday, we are now well positioned to finance our business as we progress towards strong production growth and positive free cash flow from Timmins West Mine in 2013. We very much appreciate Sprott's support for our company, and its hard work and commitment in completing the due diligence period and documentation required to close the transaction."

So what happened to being well positioned financially? Is Makuch a liar or just incompetent? This company is well positioned to go bust with guidance like that!

http://agoracom.com/ir/LakeShore/forums/discussion/topics/535557-lake-shore-gold-slows-mill-expansion/messages/1691614#message