Page 29 bad year for junior Page 28 Cont’d on pg. 30 By Gregory Reynolds Last year was the best of tim es and the worst of times for Lake Shore Gold Corp. as it put it’ s Bell Creek Mine into commercial production but it incurred a net loss of $317.9 million. Bell Creek gave the company two operating mines in the City of T im - mins that produced 85,782 ounces of gold in 2012. The T immins W est Mine is the other producer . T ony Makuch, president and CEO of Lake Shore, commented: “Last year was our peak year for capital invest - ment, development and construction as we advance d the T immin s W est Mine and kept our mill expansion on track for completion during the sec - ond quarter of 2013. It was also a year in which we achieved our production guidance, reported average cash costs per tonne below expected levels and capital expenditures at the low end of our tar get range. Based on the progress achieved in 2012, we are now poised for strong production growth, sharp - ly lower capita l investment and im - proved operating costs in 2013.” Explaining the huge net loss (77 cents per common share), the com - pany said if one excluded “a non- cash impairment char ge of $302.5 mil - lion and related deferred tax recovery of $2.1 million, net loss for 2012 was $17.5 million or four cents per com - mon share, higher than the net loss in 201 1 of $10.9 million or three cents per common share, due lar gely to high - er depletion and depreciation expenses compared to 201 1. The $302.5 million non-cash char ge relates to the write down of the com - pany’ s mining interests as a result of the impairment assessment performed by the company at Dec. 31, 2012.” The company’ s annual impairment assessment as required under Interna - tional Financial Reporting Standards reduced the carrying value of its T im - mins and Mexican assets as part of its fourth quarter and year -end 2012 results. The extent of the non-cash ac - counting char ge was based on the esti - mated recoverable value of the assets in the current market environment, which is valuing mining and explora - tion assets at lower multiple s than in recent years. Makuch comm ented on Feb. 25: “Re - ducing the carrying value of our assets represents a non-cash accounting ad - justment that lar gely refects changes in market conditions and the dif ference between our book value and current market capitalization. Our focus is on increasing our market capitalization through a higher share price. Our strategy to increase near -term value includes achieving at least 40% growth in production in 2013, to be - tween 120,000 ounces and 135,000 ounces of gold, improving cash oper - ating costs, reducing capital spending and, by the second half of this year , beginning to generate positive free cash fow .” Stocks of both senior and junior gold producers were hammered during the past year as investors turned their backs on such companies. At the T immin s W est Complex, the company is in commercial production at the T immins W est Mine (including the T immins Deposit and adjacent Thunder Creek Deposit) and is evalu - ating the Gold River T rend project, where an updated resource was re - leased early in 2012, as well as the 144 exploration property . On the east side of T immins, the Bell Creek Complex hosts the company’ s milling facility as well as the Bell Creek Mine, where commercial pro - duction commenced ef fective Jan. 1, 2012. The company’ s central mill has a 2012 both good and bad year for junior pr oducer Lake Shor e