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Detour GoldDGC.TOWATCHMar 06, 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).
To him this is a test mine to see how these things really work. Large, low grade disseminated deposit, but not well disseminated as the deposit is spiky which can cause troubles to a mining operation. Have done a lot of work to try and deal with this and he is watching to see what happens. There are big expectations and usually when you start something this big, there are hiccups.