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.”

The company filed a provincial environmental study report Monday. But it believes a recent request by one of the indigenous communities near the project for a federal environmental assessment, a process that typically takes two to three years, will likely delay mining until 2021, it said.

The company’s 2018 production outlook was unchanged at between 600,000 to 670,000 ounces, but expects 2019 and 2020 production to be lower due to the delay at West Detour. The company plans to release a modified plan for the project next month.

BMO Capital Markets noted the decision to remove West Detour from the 2017 mine plan reduced capital spending projections for the year,” which should alleviate concerns of an imminent capital raise.”

“While there has been some shareholder concern regarding a capital raise, a lower capital spend in 2017, combined with a 2016 cash balance of $129 million ensures that the company has enough liquidity for the foreseeable future.”