Detour Gold's 2015 Production Guidance Achievable – CIBC

Friday January 16, 2015 11:52 AM

Detour Gold Corp.’s (TSX:DGC) 2015 gold production guidance of 475,000 to 500,000 ounces of gold, at all-in sustaining cash costs between $1,050 to $1,150 per ounce, is an achievable target, says Canadian bank CIBC. “In our view, 2015 guidance represents an achievable target, with operational gains made in 2014 providing an important platform on which to build on,” they say. “Operations stand to benefit from improving mining rates (with supporting initiatives), access to stockpiled material, positive USD/CAD exchange rate movements, and declining fuel costs.” They add “financial risk is being managed with the use of a gold hedge position (80,000 ounces at $1,229 per ounce) and currency derivatives to capture exchange rate gains. Overall, we believe Detour Gold’s operating plans support its ability to preserve and grow its cash balance (depending on gold prices).”

By Alex Létourneau of Kitco News aletourneau@kitco.com