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Detour GoldDGC.TOTOP PICKDec 23, 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).
This came under additional pressure, because the West Detour looks like there was some delays and costs coming a little higher than initially expected. This is still going to come on, just a little later than expected. The drawdown on the stock is more than offset. The balance sheet is in good shape. Good cash flow generation. Long lifeline. This will make a great take out candidate for one of the larger players at some point. (Analysts’ price target is $28.76.)