not sure that it's a strong sell. i think it's close to fair value at current gold prices & current production / costs (may even be a little on the high side based on the money they are losing).
Q3 earnings should help somewhat tell the story, if indeed they are lowering costs to a reasonable level (their power point is what-high 800s for q3 12?)/ increasing output / and have made all the cap ex that they said they need to before rocketing away. if not stellar, even if in the right direction, i'd expect the shorts to continue to exert pressure.
realistically, i don't expect much for LSG for the rest of the year ... & likely tax loss selling at year end to boot.
on the plus side, company will not go bankrupt, actually has funding lined up, is in a good jurisdiction, OK mgt, etc. so it is not likely to disappear.
big ifs, if gold goes up & they come close to their production cost goals, there's upside of many multiples of current price. that's pie in the sky....