Detour Gold Corp DRGDF

Hey curve: No need for cash raise, here's why

[shermandrock]

Some facts:
- Cost of production = 1, 214
- Margin = 126

Presumptions going forward:
- production Q4 = 90K ozs (Oct = 29.5)
- Margin = 125
- Expenses = 8M
- Total costs + "net finance costs" (no time to assess this) = 3.7M (same as Q3)

Metal sales Q4 = (90,000 X 1300) = 117M
Production costs = (90,000 X 1215) = 109.3M
Margin = 7.7M
Shortfall = 4M
Keep in mind that some of the Admin costs are non-cash, not broken out here

Available to fund shortfall and to satisfy st liabilities:
- cash & st = 156M
- finished metal = 15.8M
- credit facility  = 135M

Liabilities and earnings shortfall:
- operating = 4M as above
- current liabilities per f/s = 135.5M

If 100% of current liabilities and operating shortfall were to be paid entirely in Q4, DGC would not - need to raise cash: Avail = 171.8M ( cash & metal)
- payments: 139.5M (4M = 135.5M)
- excess of cash and credit available = 167.5M (32.3M + 135M)

Nope, no need to raise for Q4

For subsequent 2014Qs:
- production 440K ozs
- sales at 1300 
- cost 1150
- margin 150
- contribution margin = 66M
- generate 22M excess cash

Nope, no need to raise for 2014

What do you think dude?

Discussions?