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Detour GoldDGC.TOWAITMar 25, 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).
Gold companies doing well last year were operating in geographies where they benefited from declining currencies. In the last little while we saw the Canadian dollar getting back some of the ground so the trade goes the other way. The gold price itself is fighting against the idea that the Fed will raise rates. He is not near term bullish on gold, but it will do better in 3 to 5 years.