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laroplexon Feb 07, 2014 9:06am
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Globe says Detour Gold now a "top pick" for Parkin
Globe says Detour Gold now a "top pick" for Parkin
Globe says Detour Gold now a "top pick" for Parkin
2014-02-07 05:56 ET - In the News
The Globe and Mail reports in its Friday, Feb. 7, edition that Desjardins Securities analyst Michael Parkin upgraded Detour Gold ($7.01) to a "top pick" rating from "buy" after the company released a life-of-mine plan for its Detour Lake project in Northeastern Ontario (all figures Canadian unless otherwise stated). The Globe's Darcy Keith and Jody White write in the Eye On Equities column that Mr. Parkin hiked his price target to $9.50 from $7.50. He says an overview of the project provided by Detour to analysts has increased his "conviction" on the quality of the asset. "We regard Detour as a company with above-average risk given the single producing asset base that remains in ramp-up mode, but we believe the shares offer considerable upside from these levels." Financing challenges also remain, notes Mr. Parkin, who estimates Detour still needs to raise about $75-million (U.S.). The new life-of-mine plan for the Detour Lake mine calls for annual gold production to average 660,000 ounces at total cash costs of $657 (U.S.) per ounce over a 21.7-year mine life. The average analyst target is $8.33. Mr. Parkin cut Detour to "hold" from "buy" in the Eye column on Jan. 23. The shares were then worth $6.06.