Detour Gold Corp DRGDF

RE: RE: RE: RE: What is DGC up to?

[auingot]

A nice helping of magic mushrooms were used.

Or is it crazy?  What you need is $1400 gold price and some non-dilutive fantasy financing.  $60/share equals $200/oz.  Not so outrageous given what other mid tier producers are selling for.  The major snag is the dilution/financing part.  The gold price will co-operate in time. Unfortunately, ABX will bite before then.

The merger between DGC and PLG will make a potential takeover far more straight forward.  The old set-up (DGC and PLG) was a convoluted mess. 

It doesn’t surprise me that DGC is taking their time on the BFS.  The longer they leave it the higher their NAV and IRR.  Deflation is a wonderful thing when you are pricing up a new mining operation.  Capital costs are falling big time. In fact, a growing number of long lead time items are being canceled by base metal companies. Caterpillar are desperate for sales.  Labour availability and costs are improving on a daily basis.  Energy costs are also falling nicely.  The C$ - US$ exchange rate is also very favourable compared to 2008.  All these significant improvements help to boost NAV and IRR.

Osisko is an example of how things can change in a hurry.  Interesting times.....

Auingot