Layoffs at Lake Shore Gold [in Timmins] – by Benjamin Aubé (Timmins Daily Press – May 25, 2013)

The Daily Press is the city of Timmins broadsheet newspaper.

TIMMINS – Despite laying off approximately 35 employees on Friday, Lake Shore Gold Corp. remains confident in its main commodity.

“We have a lot of confidence in the future of gold and we expect the price to go back up,” said Mark Utting, Lake Shore Gold’s vice-president, investor relations. “You just have to manage your business to be successful in the current price environment.”

The company employed “about 560” workers prior to Friday’s cuts. With localized operations in the region including the Timmins West Mine, the Bell Creek Mine, the Fenn-Gib Project and a rapidly expanding mill site, a large majority of the company’s employees are Timmins residents.

“You never want to do this, and it’s not something you do lightly,” said Utting. “But if you look at our company, we’re very proud of the fact that we’ve grown from 10 employees in 2007 to over 500 employees, even after these reductions today.

“The gold price is down over $250 an ounce so far this year, and we’re a rapidly growing company that’s currently in the heaviest part of its capital spending period. We’re investing a lot of capital in Timmins and as a company like that, we have to be responsive to changes in market conditions.

“To succeed, for our company to succeed, for our more than 500 employees to succeed long-term, you’ve just got be able to respond to changes in the market.”

Those affected by the cuts include both hourly and salaried workers employed across the organization. Utting said compensation packages have being offered on a case-by-case basis. There was also a “small number” of temporary layoffs.

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