Lake Shore Gold (TSE:LSG)(NYSE MKT:LSG) says it is on track to meet or surpass the top end of its production guidance for the year, after posting a 72 percent year-over-year increase in gold output for the first nine months of 2014.
The company said it produced 142,500 ounces in the first nine months of this year, of which 45,600 ounces were produced in the third quarter, up 58 percent from the same period in 2013.
The gold miner, which operates three gold complexes in the Timmins Gold Camp of Ontario, is forecasting production of 160,000 to 180,000 ounces of gold in 2014.
In the third quarter, mill throughput totaled 3,490 tonnes per day, at an average grade of 4.6 grams per tonne, with average mill recoveries of 96.7 percent, Lake Shore said.
The company sold 45,500 ounces in the quarter, at an average price of US$1,284 an ounce. Its cash and bullion increased to about $67 million at the end of September.
The Canadian gold producer said it would announce its full third quarter results after market close on October 29, but based on its results so far, it is on track to produce at least 180,000 ounces of gold this year.
"Our number one priority for growing value is continuing to generate strong quarterly results and building on our track record of effective execution and operating performance," said president and chief executive Tony Makuch.
"Our solid production numbers so far this year have contributed to very competitive unit operating costs and to a rapid increase in our cash position.
"In addition to continued strong operating results, we are working to grow value by drilling to extend mine life at our operations and by advancing our projects and exploration properties."
Lake Shore recently announced encouraging drill results at its Bell Creek property, which highlighted the potential to add to the mine's reserve base. It has also been doing metallurgical work at both the Fenn-Gib and Gold River assets, and has recently resumed surface drilling at its 144 property, a high-potential exploration target adjacent to the Timmins West Mine's Thunder Creek deposit.
Shares fell 6.9 percent to C$1.08 in Toronto on Friday, as gold prices suffered in the face of better-than-expected US jobs data.