Detour Gold (DGC.TO) announced earlier this week they started production at their Detour Lake Gold project in Ontario and expects to pour its first gold bar within the next few days.
CEO Gerald Panneton is hinting at some start-up problems, but as Detour released an official guidance of between 350,000 and 400,000 ounces of gold at an average cash cost between $800/oz and $900/oz this year these problems don’t seem to be very severe.
It’ll be interesting to see if Detour Gold will be able to reach its anticipated cash costs, as our fears are that they’ll remain above $1000/oz for this year.
Disclosure: No position in common shares, but a naked put position. Please see our disclaimer for current positions.
