By Matt Smith
Motley Fool Canada
The recent spike in the gold price has seen renewed investor interest in heavily beaten-down gold mining stocks. This not surprisingly sees two of the biggest gainers on the TSX for the year-to-date being gold mining stocks. Already for the year-to-date, Detour Gold (TSX:DGC) is up an incredible 141%, while Osisko Gold (TSX:OSK) has shot up 48%. Let’s take a closer look why these gold miners are performing so strongly and whether they will continue to do so.
Detour Gold’s flagship asset is its 100% operating interest in Canada’s largest gold mine, the Detour Lake gold mine, which commenced operation in February 2013. The company has gold reserves of 15.6 million ounces calculated using a particularly conservative gold price of $850 per ounce.
This price is significantly lower than Yamana Gold’s (TSX:YRI)(NYSE:AUY) $950 per ounce and Barrick Gold’s (TSX:ABX)(NYSE:ABX) $1,100 per ounce. And with gold continuing to rally, the potential for Detour Gold to boost reserves as greater quantities of gold ore become economical to mine increases.