Yikes... they were part of the consortium marketing the bought deal, and as soon as it closes, they issue a downgrade. Not nice.

Here is a portion of the four page report published by TDW this morning:

"We believe the substantial increase in budgeted capital expenditures may be indicative of the commencement of an extended period of development at Rice Lake. We see two important implications.

Firstly, given the additional development required, we believe our prior forecasts with respect to the ramp-up of production and decline of cash costs were too aggressive, suggesting that our previously forecast earnings and cash flow were also too aggressive.

Secondly - and we believe this may be more important - investors may begin
to focus on the pace of development and the ramp-up of production, which
has consistently disappointed us, rather than focus on exploration, which has
consistently returned impressive results, in our view."

And elsewhere in the report:

"We continue to see a number of potentially positive catalysts for the stock in the near-term including bulk sample results from the 007 zone and results from ongoing exploration drilling of the L-13, Hinge and 007 zones."

The report also includes TD's revisions of production estimates:

2010: 63,249oz (previous estimate 79,954oz)
2011: 94,558oz (previous 137,329oz)
2012: 130,223oz (previous 173,995oz)
2013: 187,276oz (previous 179,413oz)

And in case anybody is interested, the report includes revisions of TD's price of gold forecast. Here are their current forecast numbers in USD, as well as their previous forecast:

2010: $1214 (previous $1139)
2011: $1300 (previous $1100)
2012: $1400 (previous $1000)
2013: $1200 (previous $900)
2014: $1000 (previous $900)