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Detour GoldDGC.TOCOMMENTJun 27, 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).
There was some cycling of capital from Osisko, with its Quebec Malartic mine into this company with its Ontario mine. Thinks they will both ultimately be 600,000 ounce a day producers. This is a single asset project, so you begin to wonder about the next step. At least with Osisko, they put together other projects that could work at higher gold prices. This company has nothing but exploration around where they are. He owns it, just because he likes the re-rating as it continues to show better throughput and better grades and growth of production into 2015-2016.