Lake Shore Gold (TSE:LSG)(NYSE MKT:LSG) has managed to keep its cash operating costs for the first nine months of the year 13 percent below the low end of its 2014 target range, the company said Thursday.
The gold miner, which operates three gold complexes in the Timmins Gold Camp of Ontario, announced its preliminary cost results for the third quarter and first nine months of 2014.
It said its cash operating cost per ounce sold of US$595 in the latest period is 15 percent better than the same quarter last year, while its all-in sustaining cost of US$862 per ounce is 16 percent lower than US$1,027 per ounce in the third quarter of 2013.
For the nine-month period, cash operating costs per ounce sold came in at US$588, 13 percent below the low end of its full year 2014 target range of US$675 to US$775 per ounce.
All-in costs estimated at US$862 per ounce for the same period were 9 percent better than its targeted range of US$950 to US$1,050 an ounce.
The company said preliminary total production costs in the third quarter were approximately $30 million.
The final figures will be released on October 29, when Lake Shore announces its third quarter financial results.
"We continue to show very effective cost management with both cash operating costs and AISC remaining much better than the low end of our target ranges," said president and chief executive officer, Tony Makuch.
"We have now had four consecutive quarters of solid operating and financial performance and net free cash flow generation. We are a low cost producer in our industry, which in the current price environment provides us with a significant advantage."
The company said that with its competitive cost profile, cash balance and its ability to generate cash flow, it is well positioned to finance the work required to replenish reserves and extend mine life at its operations.
Lake Share Gold is forecasting production of 160,000 to 180,000 ounces of gold in 2014. For the first nine months of the year, output increased 72 percent from the same period of 2013.
Shares of Lake Shore reversed earlier gains, to fall 5.5 percent to C$1.03 in Toronto on Thursday.