50% off Premium Yearly
Detour GoldDGC.TOTOP PICKMar 09, 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).
Everybody is devaluing in the International currencies. At some point, he believes that you need some gold in your portfolio to protect you. This one has a decent mine production and levered to the upside of the gold price. He doesn’t want geopolitical risks. The risk is that you have a higher breakeven on it.