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Detour GoldDGC.TOTOP PICKJun 17, 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).
(A Top Pick May 30/14. Up 46.78%.) Really starting to hit its stride. Has been commissioning the Detour Lake mine in Northern Ontario. A huge mine, 500,000 ounces a year in production and a 20 year mine life. Initial operations haven’t met what they were guiding for the full year, so there was some concern that this ramp-up was going to take longer than expected, and perhaps the balance sheet would weaken. They are now running well above their full-year guidance. Thinks there is potential for this to see analysts’ upgrades on free cash flow estimates for 2015.