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Detour GoldDGC.TODON'T BUYJan 02, 2015Stock 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: $20.44).
Building a big mine with relatively high costs, but it is strategic. Ultimately could be a takeover target. As far as gold companies go, they screen very well. He is not positive on the gold companies. Gold has done surprisingly well given that we are now at a 10 year high in the US$, so he is not quite sure where the strength for gold is going to come from in the future. He can see gold at around $1000 an ounce by the end of this year.