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02:02 PM EDT, 06/09/2016 (MT Newswires) -- Credit Suisse has increased TP to C$35 from C$29 on Detour Gold Corp, while maintaining its Outperform recommendation on the stock. Following DGC's June 7th mine tour, the broker is increasing its NAV by 25% to C$24.56/sh. The NAV increase is driven by higher average annual LOM production and lower costs. "Based on the mill's recent strong performance, we have increased confidence that DGC will have the ability to expand the mill beyond the current 63ktpd nameplate."
CS increases near term cash flow estimates on higher throughput. FY16/17 OpCFa increased to C$1.73/sh from C$1.62/sh. Modelling production of 652koz in 2017, up from 617koz previously on 62ktpd mill throughput (from 59ktpd). 2017 AISC estimate to $813/oz from $839/oz.
Target multiples adjusted to reflect maturing operations and upside as the company moves from ramp up to pursuing value creating options such as plant optimization, ore feed optimization and exploration.
"In our view DGC remains an attractive holding due to its long reserve life (+22 years), strong FCF, scale (+0.5Moz) and location."
Raising FY 2016-18 estimates to $0.33/$0.95/$1.06 from $0.32/$0.83/$0.93 respectively.
Price: 31.29, Change: +0.84, Percent Change: +2.76
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