RE:Comparing DGC to EDVbustarhymes wrote:
I am not sure it this is a fair comparison, but Detour Gold (DGC) came out with their qtr1 #s and they are not that great (loss of 38 cents per share). Stock is up 8% today and market cap is in excess of 1.7 billion. Their production is not that far from EDV and they only report cash costs, not AISC like EDV. Comparing market caps, EDV should be a $5+ stock if the same metrics apply, but .83 cents !!. What is wrong here.
I mentioned this to EDV
In 2014 (forecast according to them)
Production of 400 000 ounces of gold (between 400 000 and 440 000)
Average Price of Gold: $ 1,300 (according to me)
AISC (All-In Sustaining cost) $ 1,050 (according to them between $ 985 and $ 1,070)
Profit: 100 millions. (if gold is at $ 1350 profit 120 M)
4 producing mines
Book value: $ 3.29
DGC is the production of 450 000 to 500 000 ounces in 2014.
Currently, in their Q1 is what they did.
Production of 119,700 ounces of gold sold
Average Price of Gold: $ 1,283
AISC (All-In Sustaining cost) $ 1,182
Profit: 12 millions.
Book value: $ 20.46
With the number of shares outstanding, compare the carrying value:
DGC $ 20.46. Starting at $ 11.90. Possible increase of 71%
EDV $ 3.29 from $ 0.81. Possible increase of 306%
I stay with EDV.