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Detour GoldDGC.TOWATCHFeb 10, 2014Stock 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).
You could easily see this gold stock into the mid-teens in a better gold environment. Expects there will be an equity raise sometime soon so he would be watching for that as another entry point. They’ll probably need to do an equity financing. They are one of the highest cost producers out there. They only have the one asset so you are playing it pretty close to the line, which is why the stock got pummelled last year.