RE:RE:RE:RE:RE:Yikes!With an AISC of $1,025 to $1,125, the margins don't leave much wriggle room That is one of the main reasons why I own this stock. On a rising gold price, DGC cash flow goes much much higher so it offers tremendous leverage to the gold price. It is certainly not a good stock to own when gold falls but if you think gold is going to go higher like I do, it is one of the best stocks to own.
Paul Martin discussed this on BNN as well as mining costs last year. Note that the stock price was well over $30 at the time at about 1350 gold. The big funds love to trade this stock. I think if we get to 1350 again, you will easily see prices in the mid to high twenties. The shovels are big money and they just bought another one. When you go from 5 to 6 or 7 shovels, it makes a big difference. This should really add to production.
The second quarter is not over yet. It ends June 30th and comes out the end of July. I have no reason to think they will disappoint with financing but even if they do, cash costs, grades and production are far more important to me.
Different opinions make a market and FWIW, I think you are being too negative.
https://www.bnn.ca/video/my-costs-were-up-but-its-a-one-off-detour-gold-ceo-says~932180
- Detour Gold's guidance for 2017 is between 550,000 and 600,000 ounces of gold at total cash costs of $690 to $750 per ounce sold. All-in sustaining costs are expected to be between $1,025 and $1,125 per ounce sold.
- Mining rates are expected to commence trending higher starting in the second quarter with the addition of a CAT6060 shovel and four haul trucks, bringing the available fleet to six shovels and 32 trucks and supported by the addition of a ROM fleet.
- Both head grade and gold recovery are expected to improve during the second half of the year. The installation of a lead nitrate and oxygen control system to assist with improving recoveries is expected to be completed in the second quarter and commissioned in the third quarter.
- Projected capital expenditures for 2017 remain as previously stated at approximately $160 to $180 million, including $14 million of capitalized stripping and $5 million of non-sustaining expenditures for the development of West Detour.
- The Company is in the process of arranging up to $500 million in bank debt which will be used to repay the outstanding convertible notes (currently $338 million) and replace the Company's senior secured credit facility of Cdn$135 million. The Company has received indicative term sheets from the members of its banking syndicate and anticipates, subject to final negotiations, closing the facility by the end of the second quarter of 2017.