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Detour GoldDGC.TOBUYJan 18, 2016Stock 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: $20.44).
It is in a category he would look in. Their output is in US$ and their costs are in CAD$. It has been out of favour for the last few years. He thinks the outlook for gold is better going forward than for the last 2 or 3 years. This is a well managed company with lots of funding in place.