Detour Gold Corp.’s stock got a double digit boost Tuesday after the company reported better-than-expected production guidance for 2017 and a plan to delay development at one of its mines that will conserve cash.
Shares in the company, which operates the Detour Mine in northeastern Ontario, jumped 13 per cent to $17.80 apiece Tuesday morning on the Toronto Stock Exchange. Detour announced 2016 gold production of 537,765 ounces and all-in sustaining costs — the industry standard — of $1,005 per ounce sold.
The company also said it reduced its debt by $142 million and ended the year with about $129 million on the balance sheet.For 2017, it projected higher gold production — between 550,000 and 600,000 an ounce, with all-in sustaining costs coming in slightly higher than in 2016 at between $1,025 and $1,125 per ounce.
The company also announced its decision to delay its mining plan at the West Detour project “given the current uncertainties associated with the permitting process.”
“It is no longer reasonable to assume that the permits required will be obtained in time to allow mining to commence in January 2018.”
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