Detour Golds price and the valuation question for TGZDetour Gold got a crazy offer from Kirkland which will have consequences for all gold companies. In summary they had roughly 15 million ounces in reserves, mined around 600K a year at around 1100-1180 AISC. That roughly equates to paying for the reserves in the ground at todays prices. To be fair, it's not exactly gone down as a great deal but at that valuation it would mean TGZ is significantly undervalued. By the same calculation, TGZ has proven reserves in operating mines of around 4 million ounces and it's AISC is around 850-950 per ounce. Using a similar valuation model strictly on cost, TGZ should be worth closer to 2 billion. Obviously ounces and juristictions make massive differences to valuations but at a minimum I think we are starting to see the consolidation we have long summaized would occur and that will likely drive up valuations.
https://www.businesswire.com/news/home/20191125005355/en/Kirkland-Lake-Gold-Add-New-Cornerstone-Asset