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Detour GoldDGC.TOBUYFeb 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).
When you have this race to devalue global currencies, at some point gold has to gravitate higher. You don’t want to be without gold in this environment. The stocks are cheap relative to gold. You are also seeing the amazing political risk in the world so you are really getting a premium for the Canadian mine that this one has. He likes it here. He was buying this morning. He thinks there is a good chance it will get taken out in the future.