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Detour GoldDGC.TOCOMMENTJan 03, 2013Stock price when the opinion was issued
As of Feb 04, 2020. Market Open.
It is a higher cost asset. It is more volatile. They have a cash flow profile that will drop in a couple of years. The stock is off while investors plan to come back to it in a couple of years. You are buying it for the cost of the infrastructure. He would prefer to hold it for two years. (Analysts’ target: $20.44).
Thinks gold will be staying around this level and doesn’t expect much upside. This company has to get into production now and is reaching that vital difficult stage, which generally isn’t successful in the 1st year of mining companies.