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Message: Gabelli Funds Comments on Detour Gold

Gabelli Funds Comments on Detour Gold

November 17, 2016

- By Holly LaFon

Detour Gold (DGC.TO) (3.7%) (DGC CN - $21.75 | $28.54 CAD - Toronto Stock Exchange), is a single asset company based in Toronto, with its sole operating mine in northern Ontario. The Detour Lake mine is a large, bulk tonnage open pit operation which is currently the biggest gold mine in Canada. The mine's cost base is largely fixed, with labor and electricity being large components, both are priced in Canadian dollars. The company is generating free cash flow, and will use a portion of this cash to pay down convertible debt which will come due in 2017. We expect the company to pay dividends to shareholders once the balance sheet has been sorted.

From the Gabelli Gold Fund third-quarter 2016 shareholder letter.

This article first appeared on GuruFocus.

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