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Detour GoldDGC.TOCOMMENTMar 25, 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).
Thinks they have a great mine and a great asset and the valuation is certainly fair, but there are going to be some hiccups in the next year. When you see a pullback, it is a world-class asset and you should be adding to it. Also, when you see it taking off with valuations getting ridiculous, recognize that they may trip up and fall so you might want to take some profits here and there.