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Detour GoldDGC.TOHOLDMay 14, 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).
Management team is former Barrick Gold. Concerns about whether they can raise capital through equity or debt. Feels that the price could go to $24 in the next 12 months. If you can be patient you may see a phenomenal return in 12-18 months. May see a 15% return.