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Detour GoldDGC.TOBUYDec 20, 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 this would be a good acquisition for somebody. Right now their all-in costs are a little bit high because they had just started up the mine. Had a management change which created a really good trading opportunity. Once the mine is fully running it will be producing about 700,000 ounces a year at an average cost of about $700.