GREY:DRGDF - Post by User
Post by
laroplexon Feb 06, 2014 9:34am
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Post# 22178556
FP/wire say Detour risks already priced into its stock
FP/wire say Detour risks already priced into its stock 2014-02-06 08:53 ET - In the News
The Financial Post reports in its Thursday, Feb. 6, edition that Detour Gold shares jumped two cents on Wednesday to close at $6.78 after the company announced a revised plan for its Detour Lake mine, including slightly higher production than previously forecast. A Reuters dispatch to the Post reports that the Toronto-based company is ramping up Detour Lake, its only mine, and operating costs at the low-grade operation in Northeastern Ontario are expected to be relatively high during 2014. Concerns about costs and fears that the miner could be forced to raise more money have weighed heavily on shares over the last year. TD Securities analyst David Earle said Tuesday the risks Detour faces are more than priced into its shares. Mr. Earle reiterated a "buy" rating. Detour said it expects to produce an average of 660,000 ounces of gold per year over a 21.7 year mine life, up from a previous estimate of 657,000 ounces per year over 21.5 years. RBC Dominion Securities analyst Dan Rollins says Detour's estimated production over the next five years -- 600,000 ounces per year -- was better than expected. Clarus Securities analyst Jamie Spratt was bearish on Detour in the Post on May 9, 2013. It was then worth $12.32