JM: Detour Gold Corp. (DGC:TSX) has come through the valley of death and is on its way to production in about six months. Its capital risk is almost out of the way. The company is capitalized now and it looks quite cheap by most measures.

TGR: It published guidance of 350,000–400,000 ounces gold this year. Has Detour said what it plans to do with its cash flow?

JM: Management says it wants Detour to remain a single-purpose mining company. It does not want the headache of running more than one mine. I suppose its first step would be to pay down debt or perhaps issue a dividend.

TGR: It is a pretty impressive mine, located in a very stable jurisdiction in northeastern Ontario. Do you want to see a dividend?

JM: We would be delighted with a dividend. Dividends help the market value an equity differently. The idea is to start with a dividend program that allows a company to improve its business without taking on additional debt. When companies pay too much dividend, it hurts their stock

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