From Jan 22nd 2015

Lake Shore Gold Corp. (C$) LSG-T $2.00 BUY HIGH Our blended target price is derived from a 60% weighting on 1.1x our corporate NAV5%, calculated using our long-term gold price of $1,300/oz, and a 40% weighting on 9.0x our 2016 EBITDA estimate. Our target price methodology is similar to what we use for other gold producers, but incorporates slightly discounted multiples. Our multiples attempt to reflect, the increased confidence we have in the company’s operations, low cost structure, free cash flow generation, and residence in a premier mining jurisdiction.

The main risks facing the company include forecast, financial, technical and political risks. Among other things, these include risks related to the gold and fuel prices, the governing fiscal and legislative regimes, the timing of key developments, forecasting risk relating to deposit size, market conditions, capital and operating costs, the cost and availability of financing, foreign exchange rates, resources and reserves, operating parameters, permitting, environmental, indigenous peoples, labour strikes/disputes, and staffing and key personnel retention.