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Detour GoldDGC.TODON'T BUYMay 02, 2018Stock 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).
Costs are going up and revenues are going down. They have done many stock issues and not rewarded their investors. When production forecasts fall short of expectations investors will go elsewhere.