NEW YORK (TheStreet) -- Lake Shore Gold (LSG) shares are up 5.38% to $1.05 on heavy volume in morning trading on Monday after the company announced that it is expanding its drilling operation at the 144 Gap Zone in its Bell Creek mine in Ontario, Canada.
The expansion is a result of the success of its operations at the mine with the company expecting the expanded drilling to add $7 million to the company's exploration expenditures in 2015.
"Success drives growth and that is what we are seeing at both the 144 Gap Zone and Bell Creek. Over the last few years, our business has been focused on stabilizing our operations and achieving our key performance targets, generating cash, reducing debt and building overall financial strength. We have achieved success in all of these areas. We are now in a position to pursue growth, both in terms of building out mine life and pursuing opportunities to grow production," said CEO Tony Makuch.
TheStreet Ratings team rates LAKE SHORE GOLD CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAKE SHORE GOLD CORP (LSG) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."