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Detour Gold (T.DGC) up 9.5% on Ontario mill repairs update

Stockhouse Editorial
1 Comment| January 2, 2014

Detour Gold Corp. (TSX: T.DGC, Stock Forum) said it has finished repairs and expected to resume operations at its processing plant Thursday.

The processing facility has been shut down since December 17, 2013, due to mechanical issues with the pre-leach thickener system.

The company had expected the mill to restart prior to year-end, Scotia Capital said in a research note, adding that repairs were expected to start on December 24, and there is no scheduled downtime in the first quarter of 2014.

The Detour Lake mine is located 185 kilometres northeast of Cochrane, Ont.

Assuming the shutdown lasts only until the start of 2014, Detour Gold expects production of 81,000 ounces in the fourth quarter of 2013 and 231,000 ounces for the year.

That’s down from an earlier estimate of between 240,000 ounces and 260,000 ounces. Scotia Capital has said, the company’s cash cost guidance remains unchanged. Scotia expects the company’s cash costs to be US$1,151 an ounce.

“We feel this is an isolated incident (cold weather a contributor),” the investment firm said in its recent report.

Detour Gold shares rose 9.5% to $4.49 on Thursday, leaving a market cap of $620.3 million, based on 138.2 million shares outstanding. The 52-week range is $25.47 and $2.88.

Tags: GOLD

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