Companies

Request More Information

Last:
Change: Change(%):
Volume: Open:
High: Low:
52Wk High: 52Wk Low:

Experts Commenting on This Company

 

Visit Company Website

View Company News


Timmins Gold Corp.

TICKER: TMM:TSX; TGD:NYSE.MKT

Timmins Gold Corp. is well positioned for continuous growth as a gold production and development company. The company owns and operates the open-pit, heap-leach San Francisco Gold Mine in Sonora State, Mexico. Timmins Gold's experienced management team has delivered increased mine life and expanded production year over year since commercial production began in 2010. On the exploration front, Timmins Gold has over 200,000 hectares of claims contiguous to the mine along the highly prolific Northern Sonora Gold District. Past exploration success around the mine has significantly increased gold resources and reserves.


The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Comments:

Ovais Habib, Scotia Capital (12/18/14) "Timmins Gold Corp. has entered into an agreement to purchase 100% of the Caballo Blanco gold project from Goldgroup Mining Inc. The initial purchase price is ~$25M ($10M in cash and about ~16.1M Timmins common shares). . .we view the acquisition positively. . .on an standalone basis, we estimate the deal is 8% NAV accretive."

Derek Macpherson, M Partners (12/18/14) "Timmins Gold Corp. announced that it has agreed to acquire the Caballo Blanco gold project from Goldgroup Mining Inc. . .at first glance, the deal structure and acquisition price appear attractive. The company acquired Caballo Blanco for $10M in cash and 16.065M Timmins shares, which equates to $14.6M at yesterday's close."

Andrew Kaip, BMO Capital Markets (12/18/14) "Timmins Gold Corp. announced plans to acquire 100% of the Caballo Blanco gold project, located in Veracruz state, Mexico, from Goldgroup Mining Inc. for $10M in cash and 16M Timmins shares and a further $5M upon permitting. . .acquisition of the Caballo Blanco project looks to provide the company with a reasonably priced growth strategy that: 1) leverages its operational capabilities learned at the San Francisco heap-leach mine, 2) offsets single mine risk and 3) is potentially accretive to NPV."

Dundee Capital Markets (12/4/14) "Compared to Q3/13, Timmins Gold Corp. experienced more severe rainfall as well as lower grades which resulted in increased costs. . .with the rains subsiding, the company expects to return to business as usual in Q4/14 with access to higher-grade portions of the San Francisco pit restored."

Tickerscores (12/4/14) "Timmins Gold Corp. came in at first place [in the Mexican Gold Producers list] overall with a score of 78. . .the company has the lowest cost operations in Mexico for gold, with an all-in cost of $1,149/oz. "

more comments

Stuart McDougall, Jennings Capital (10/30/14) "Timmins Gold Corp. released Q3/14 financials, reporting EPS of $0.01. . .we were looking for $0.01. . .the company maintains a healthy balance sheet, ending the quarter with cash of $50.0M, working capital of $65.0M and total debt of $13.2M. . .we expect cash to decrease to approximately $43M by year-end, before increasing again in 2015. The decrease reflects the scheduled repayment of the Sprott Lending facility."

Derek Macpherson, M Partners (10/29/14) "Timmins Gold Corp. announced Q3/14 financial results slightly ahead of our estimates, however moderately below consensus. . .the beat was due in large part to lower-than-expected cash costs. . .cash costs of $856/oz gold, which was below our estimate of $943/oz. . .despite generating negative free cash flow in Q3/14, we expect. . .$4.1M free cash flow in Q4/14. . .and a year-end cash balance of $41M following the $13M debt repayment in Q4/14. . .we believe that the company's next leg of near-term growth is likely to come via an acquisition."

Joseph Fazzini, Dundee Capital Markets (10/29/14) "Timmins Gold Corp.'s Q3/14 financial results. . .were right in-line with our expectations and reflected the challenges associated with higher rainfall in the quarter. Looking into Q4/14, we expect these issues will have been resolved with free cash flow returning to positive territory, while production continues to track toward the high end of guidance. . .total cash costs of $856/oz in Q3/14 beat our estimate of $872/oz and consensus of $907/oz. . .the company's strong balance sheet continues to provide it with ample financial flexibility to fund its exploration program and potential expansion at La Chicharra."

Philip Ker, PI Financial (10/29/14) "Despite the abnormal quarter where record rainfall impacted the San Francisco operation, Timmins Gold Corp. demonstrated that it was still capable of generating positive net income of $1.6M in Q3/14 even in a challenging gold price environment and processing below-average ore grades. . .the San Francisco operation continues to improve on its operating costs. . .cash costs were $856/oz versus our estimate of $924/oz. . .and all-in sustaining costs were $994/oz versus our estimate of $1,080/oz. . .going forward, we anticipate Timmins to remain in a strong financial position into 2015 after it eliminates the remaining $11.5M of outstanding debt with Sprott Lending."

Joseph Fazzini, Dundee Capital Markets (10/28/14) "For Q3/14, we forecast an EPS of $0.01/share for Timmins Gold Corp., in line with consensus and a CFPS of $0.05/share, above consensus of $0.04/share. On the cash cost side, we expect quarterly total cash costs of $872/oz, below consensus of $907/oz."

Andrew Kaip, BMO Capital Markets (10/28/14) "Timmins Gold Corp. reported headline and adjusted Q3/14 EPS of $0.01, slightly above our estimate of $0.00 and in line with consensus. The slight earnings beat was attributable to lower-than-expected operating costs."

Stuart McDougall, Jennings Capital (10/20/14) "On Friday, Timmins Gold Corp. released preliminary Q3/14 operating results, reporting production and sales of 26,671 oz gold and 18,600 oz silver. . .noting that heavy rains in September restricted access to the pit, necessitating the use of lower-grading stockpiles. . .we are maintaining our 12-month target price but upgrading our recommendation, to Buy from Sell, for price depreciation since our last update in late July."

Andrew Kaip, BMO Capital Markets (10/17/14) "Timmins Gold Corp. is on track to meet the upper end of full-year production guidance and has indicated that normal operations have resumed following a period of record rainfall near the end of Q3/14. . .we are maintaining our Market Perform rating."

Derek Macpherson, M Partners (10/17/14) "Timmins Gold Corp. announced Q3/14 production. . .below our estimates largely due to substantial rainfall in the month of September, which resulted in power outages and limited access to the pit. The company produced 26,671 oz gold at a head grade of 0.5 g/t, which represents a 13% and 16% miss vs. our production and grade estimates, respectively. . .a one-time event and we would expect head grades in Q4/14 to be more in-line with our modeled grade of 0.6 g/t. . .we continue to expect positive full-year 2014 free cash flow. . .the company's next leg of near-term growth is likely to come via an acquisition."

Philip Ker, PI Financial (10/17/14) "Timmins Gold Corp. announced gold production of 26,671 oz for Q3/14. . .the operation continues to have above-average recovery rates, which realized 74% in Q3/14, beating our expectation of 68%. This has been a strong point for the company over 2014."

Joseph Fazzini, Dundee Capital Markets (10/17/14) "Pre-market, Timmins Gold Corp. announced its Q3/14 operational results and reported production of 27 Koz Au. . .with the company expected to remain one of few companies generating positive free cash flow in the currently weak gold price environment, we maintain our Buy rating and $2.25 target."

Joseph Fazzini, Dundee Capital Markets (10/14/14) "We expect Timmins Gold Corp. to report its Q3/14 operational results this week. . .relative to consensus expectations, our Q3/14 estimates suggest slightly lower production along with slightly better cash costs. . .we maintain our Buy rating and introduce our $2.25 price target on the company's stock (down from $2.50). We note that our price target was revised in conjunction with the release of our commodity price update. . .with a defensive balance sheet and low operating costs, we note that Timmins is well positioned to weather the weakened gold price."

The Mining Report Interview with Derek Macpherson (10/7/14) "We continue to prefer lower-risk, high-margin names like Timmins Gold Corp." More >

Tickerscores (9/3/14) "Timmins Gold Corp. is a 'go to' name for any investor in gold producers. At current gold prices, the company is generating free cash flow and building its cash position quarter over quarter."

The Gold Report Interview with Björn Paffrath (8/18/14) "Timmins Gold Corp. is one of our bigger positions. Timmins had another great quarter. It recently fended off a move by Sentry Investments to take over the board. In my view, Sentry only wanted to sell it. CEO Bruce Bragagnolo did a fantastic job during that struggle. He does not come from a mining background but he runs that company better than most people I see in the mining industry. At around $2/share, Timmins either buys something else, which it needs, or gets taken out. On a pullback, it's a great buy, even if you only want to speculate on a takeout. . .but of course there's a chance of a takeover by other companies. There are certainly a few sniffing around. In general, Timmins would be a nice fit at120–130 Koz gold annually. It would have to be a company where adding 120–130 Koz significantly increases its production profile and also the region has to make sense. Timmins probably can't lower its all-in costs much more but it has some healthy margins at the moment and even more if the gold price rises. Even at $1,300/oz gold, Timmins added another $11M to the cash balance last quarter. I think management is building up the cash to find a good takeover target itself; Timmins appears to be very selective, and that's probably because there are not many options out there that make sense." More >

Derek Macpherson, M Partners (7/30/14) "Timmins Gold Corp.'s strong Q2/14 operations led to lower-than-expected cash costs, which largely offset the significantly higher G&A expenses related to the dissident shareholder action during the quarter. . .and with H1/14 production at 59% of the bottom end of full-year guidance and costs well below guidance. . .our full-year estimate is for 128 Koz gold produced at total cash cost of $765/oz (was 128 Koz at $780/oz). . .with multiple organic throughput expansion options, we expect that once the new board has met, the future is likely to be better defined. . .and future production and free cash flow growth will come via acquisition."

Philip Ker, PI Financial (7/29/14) "Timmins Gold Corp.'s San Francisco mine is running smoothly and efficiently. . .with realized cash costs of $730/oz, beating our estimate of $791/oz. . .as a result of continued profitable operations and improvements to its balance sheet, the company ended Q2/14 with $56M cash; we continue to expect management to be diligent at strengthening its balance sheet over the remainder of 2014 from cash from operations, receipt of VAT and eliminating its $13M debt with Sprott Lending. . .and we anticipate that Timmins can produce 132,500 oz gold in 2014 (was 125,700 oz). . .at cash costs of $743/oz (was $803/oz)."

Sam Crittenden, RBC Capital Markets (7/29/14) "Timmins Gold Corp.'s Q2/14 financials were roughly in line with production of 33 Koz gold previously released and cash costs of $730/oz were in line with our $729/oz estimate. The company has generated $14M in H1/14, supporting our view that it can generate $25–30M in annual free cash flow at current gold prices. This implies an 8–10% yield, which is one of the highest in our coverage universe. . .Timmins' balance sheet remains robust: Cash balance increased by $12M in Q2/14, to $56M ($0.34/share)."

Andrew Kaip, BMO Capital Markets (7/29/14) "Timmins Gold Corp.'s Q2/14 earnings were in line with our expectations. The company's current cash position of $56M and our forecast of $7.5M of free cash flow over H2/14E at spot metal prices should be sufficient to easily extinguish the remaining CA$13M principal balance on the Sprott loan facility by year-end."

Derek Macpherson, M Partners (7/29/14) "Timmins Gold Corp. released Q2/14 financial results that we would characterize as essentially in line. The company reported revenue of US$42.4M which was in line with our estimate, along with cash flow per share of US$0.08, EPS of US$0.02 and cash costs of US$730/oz. Cash costs came in below expectations, which helped offset much higher than expected general and administrative costs. . .the company's continued operational execution supports our view that although processed grade is expected to decline for the balance of the year, Timmins' 2014 guidance is achievable."

Ovais Habib, Scotia Capital (7/10/14) "Timmins Gold Corp. reported Q2/14 gold production of 32.9 Koz, 4% above our estimate of 31.5 Koz but a 7% decrease from Q1/14. . .the production beat versus our estimate was due to better calendar-quarter gold recoveries (72% versus our estimate of 66%) offset by a slightly lower processed gold grade for the quarter (0.65 g/t versus our estimate of 0.68 g/t). . .we believe the company can realize additional efficiencies from ongoing optimization."

Philip Ker, PI Financial (7/10/14) "Timmins Gold Corp. announced further strong gold production of 32,932 oz for Q2/14. . .a direct result of higher-than-expected recoveries (72.1% versus our estimate of 63.5%). . .the beats in production and recovery have increased our annual production target to the high end of management's guidance of approximately 125Koz, reduced our targeted annual cash costs to $803/oz. . .positive operations are leading to free cash flow: Another beat in gold production should lead to lower-than-expected cash costs (per ounce sold) when the company reports its Q2/14 financial results."

Derek Macpherson, M Partners (7/10/14) "Solid production results should lead to continued free cash flow generation: Timmins Gold Corp. announced Q2/14 production results that were slightly ahead of our estimates. . .which appears to be related to better-than-expected recoveries (72% versus our estimate of 67%). . . .the positive production results should be a first step in increasing investor confidence. . .we are increasing our 12-month target price to CA$2.50/share. . . the company's low balance sheet leverage, operational experience and improving valuation may allow it to grow via acquisition."

Derek Macpherson, M Partners (7/10/14) "Timmins Gold Corp. announced Q2/14 production results that were slightly ahead of our estimates with production of 32.9 Koz Au at a head grade of 0.65 g/t. . .we now model free cash flow of $5.7M in Q2/14. . .we believe that the company's next leg of near-term growth is likely to come via an acquisition. We are maintaining our Buy recommendation and increasing our 12-month price target to CA$2.50/share. . .the company's low balance sheet leverage, operational experience and improving valuation may allow it to grow via acquisition."

Andrew Kaip, BMO Capital Markets (7/10/14) "Timmins Gold Corp. announced Q2/14 production of 32.9 Koz gold, ~2% above our estimate of 32.3 Koz. The slight beat was attributed to better-than-expected recoveries. . .gold grades delivered to the pads (0.65 g/t over Q2/14) appear to be converging toward reserve grade (0.54 g/t)."

Joseph Fazzini, Dundee Capital Markets (7/10/14) "This morning, Timmins Gold Corp. announced its Q2/14 operational results and reported production of 33 Koz Au, beating our estimate of 29 Koz Au. We attribute the better-than-expected production primarily to improved recoveries, which averaged ~72% in the quarter versus historical recoveries of ~62%. . .this is the second consecutive quarter where the company has had elevated recoveries."

Scott Wright, Zeal Reports (7/3/14) "Timmins Gold Corp. has the makeup to be an investor favorite as gold's bull gets its legs back underneath it; there aren't many low-cost, unhedged gold producers with exceptionally strong longevity, and the company is among the best. It has performed very well with gold in the past, and it ought to continue to do so in the future."

Joseph Fazzini, Dundee Capital Markets (7/2/14) "This morning, Timmins Gold Corp. announced that it has reached a settlement with Sentry Investments Inc. . .the settlement ends the potentially costly proxy contest and allows management and the new board to return their focus to optimizing operations and unlocking shareholder value. With a new more independent board in place, we believe the company is now better positioned to move forward with asset optimization."

Joseph Fazzini, Dundee Capital Markets (6/23/14) "This morning, Timmins Gold Corp. announced its own slate of new independent directors ahead of the July 31 annual general meeting. . .whatever the outcome, we believe the recent events continue to draw attention to the undervalued nature of the company. As the process continues, we believe this should help to further unlock value for shareholders. . .our Buy rating remains unchanged."

Joseph Fazzini, Dundee Capital Markets (6/2/14) "We consider Timmins Gold Corp.'s San Francisco mine to be a solid, free cash flow generating, well-located mine (Mexico) with an extensive mine life (9.5 years) and low-all in costs (US$1,117/oz in 2014); given these metrics, we believe the asset would be a welcome addition in the portfolio of a larger producer looking to add production and cash flow. Whether under the current board or a substantially revised one, we believe the current events will help draw investor attention to the undervalued nature of these assets and in turn, help unlock value for Timmins shareholders."

Derek Macpherson, M Partners (6/2/14) "Timmins Gold Corp. has had a dissident shareholder action launched against it by Sentry Investments Inc. . .we are maintaining our Buy recommendation and our 12-month target price of CA$2.10/share. . .while a proxy fight could distract management in the near term, as well as result in increased legal costs, it is unlikely to impact our fundamental value, as operations are nearing steady state."

The Gold Report Interview with Ian Parkinson (6/2/14) "Timmins Gold Corp. is a single-asset story and that may help explain the underappreciation of the name. It has solid cash flow, solid earnings per share but not a great deal of growth beyond the San Francisco mine in Mexico. Having said that, in a higher gold price environment the company's land package has some exploration upside. Timmins added crushing capacity last year and made incremental improvements on the ground without spending a lot of capital. Timmins is a solid operating group doing what it said it was going to do, exceeding expectations the first part of the year and operating in a very safe part of the world. . .AuRico's El Chanate mine is geologically similar to Timmins' and not too far away. If you're looking for consolidation stories, it makes a lot of sense." More >

Joseph Fazzini, Dundee Capital Markets (5/29/14) "We recently joined Timmins Gold Corp.'s management on a tour of their San Francisco gold mine. . .the tour confirmed many of our expectations, and the operation appears to be running well. In addition, this morning the company announced plans for a $5M exploration program this year for three targets near its existing operations."

Philip Ker, PI Financial (5/29/14) "Timmins Gold Corp. announced a $5M regional exploration program that will test three regional targets all within relative proximity (2–16 km) of the San Francisco operation. With the recent success and cash generation attributed to rising production levels at San Francisco, the company has become more financially stable in order to initiate a new exploration campaign."

Andrew Kaip, BMO Capital Markets (5/29/14) "Timmins Gold Corp. announced a US$5M exploration program for 2014, with the focus of conducting first stage drilling on the North trend, Marisol and Las Barajitas targets. . .we like the exploration potential within the company's land holdings."

Andrew Kaip, BMO Capital Markets (5/27/14) "Timmins Gold Corp. has moved the San Francisco mine towards improving performance with a 10-year reserve base allowing the company to begin to focus on greenfield exploration. BMO Research likes the exploration potential within the Timmins land holdings; however, the early stage nature of priority targets means investors will have to wait a while before the company can daylight value."

Stuart McDougall, Jennings Capital (5/1/14) "Yesterday, Timmins Gold Corp. released Q1/14 financial results, reporting EPS of $0.05 and operating CFPS of $0.12, versus our expectations for $0.02 and $0.06, respectively. . .our target implies a 14% return over the next year and warrants the continuation of our Buy rating."

Philip Ker, PI Financial (4/30/14) "Timmins Gold Corp. announced its Q4/13 operating and financial results from its flagship San Francisco operation. The company prereleased Q1/14 record gold production and sales resulting in net earnings of $8.1M, or $0.05/share, which is a beat to our estimate of $0.04/share for the quarter. Additionally, combined with the record production levels, the quarter was highlighted with low all-in sustaining costs of $790/oz and reduction in its long term debt ($4.5M) and accounts payable ($8.5M)."

Andrew Kaip, BMO Capital Markets (4/29/14) "Timmins Gold Corp. reported headline and adjusted Q1/14 EPS of $0.05, in line with our expectations. . .the company finished Q1/14 with a cash balance of $44.4M, which includes net proceeds from the CA$26.7M bought deal financing completed in February."

Joseph Fazzini, Dundee Capital Markets (4/29/14) "Following Q4/13's positive free cash flow (FCF) of US$8.7M, we expect Timmins Gold Corp. to generate ~US$6.4M of FCF in Q1/14. With the majority of its capital programs completed (sizeable drill program and crushing expansion work), we expect the company to continue generating positive FCF in 2014. . .by delivering operationally and generating consistent FCF, we expect Timmins to rebuild investor sentiment and close the valuation gap with its heap-leach peers over time."

Zacks Equity Research (4/25/14) "Timmons Gold Corp. could be an interesting play for investors. . .not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front. . .these positive earnings estimate revisions suggest that analysts are becoming more optimistic on the company's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these timeframes over the past four weeks, suggesting that Timmins could be a solid choice for investors." - Zacks Equity Research

Joseph Fazzini, Dundee Capital Markets (4/9/14) "With its third consecutive quarter of record production, we believe Timmins Gold Corp. continues to make progress towards rebuilding investor sentiment. With meaningful free cash flow expected to be generated this year, we maintain our Buy rating and $1.75 target."

Derek Macpherson, M Partners (4/9/14) "Timmins Gold Corp.'s strong operational results should see a second consecutive quarter of free cash flow. The company announced Q1/14 production results that were slightly ahead of our estimates. . .we continue to believe that Timmins' derisked cash flows for 2014 are likely to attract a premium valuation as investor confidence improves."

Andrew Kaip, BMO Capital Markets (4/9/14) "Timmins Gold Corp. reported Q1/14 gold production of 35.2 Koz, ~19% above our estimate of 29.6 Koz. . .the production beat was due to the company's ability to mine above processing rates and deliver higher-grade ore (0.76 g/t gold versus our estimate of 0.56 g/t) to the leach pad. . .incorporating production and sales has increased our Q1/14 EPS estimate to $0.05 from $0.01."

Philip Ker, PI Financial (4/9/14) "Timmins Gold Corp. announced record gold production of 35,197 oz for Q1/14, which is a beat to our target of ~33,700 oz and is a direct result of higher-than-expected grades and throughput to its optimized crushing circuit. . .the record production during Q1/14 is a good sign that the increased crushing capacity at San Francisco is aiding increased production levels."

Ovais Habib, Scotia Capital (4/9/14) "Timmins Gold Corp. reported Q1/14 gold production of 35.2 Koz, 8% above our estimate of 32.6 Koz and a 3% increase over Q4/13. The production beat versus our estimate was due to higher gold grades (0.76 g/t Au versus 0.7 g/t Au) and also slightly better-than-expected calendar-quarter gold recoveries of 68% versus 67%."

Andrew Kaip, BMO Capital Markets (4/8/14) "Timmins Gold Corp. announced Q1/14 gold production of 35.2 Koz, ~19% above our estimate of 29.6 Koz. . .the production beat was due to the company's ability to mine above processing rates and deliver higher-grade ore. . .the strong quarter of production is a solid first step toward achieving full-year production guidance of 115 Koz gold."

The Gold Report Interview with Oliver Gross (4/2/14) "I have a Buy rating for junior producer Timmins Gold Corp. Its San Francisco gold mine in Mexico is one of the lowest-cost producers in the world." More >

Erik Bermel, M Partners (3/10/14) "Timmins Gold Corp. announced Q4/13 results that were generally in line with our estimates . . .an improved 2014 outlook [has the] potential to surprise. . .we now expect stockpiling of lower grade ore to end in Q2/14. . .we now anticipate annual production of 124.5 Koz gold, which is at the top end of management's 2014 production guidance of 115–125 Koz gold. . .we believe that as the company continues to demonstrate its ability to generate free cash flow over both the near- and long-term, it should rerate toward similar cost-structure peers."

Joseph Fazzini, Dundee Capital Markets (3/7/14) "Timmins Gold Corp.'s Q4/13 free cash flow (FCF) came in at $8.7M, beating our estimate of $6.2M, primarily due to lower-than-expected capital spending. With its infill drill program complete and little expansion capital planned, the company should be well positioned to continue generating meaningful FCF in 2014."

Philip Ker, PI Financial (3/7/14) "Timmins Gold Corp.'s record Q4/13 production combined with in line all-in sustaining costs (AISCs) and receipt of $5.3M for a value-added tax contributed to higher-than-expected free cash flow. . .with a majority of capital-intensive projects completed at San Francisco, the company is now positioned to capitalize from low AISCs and good profit margins in order to continue adding cash and strengthening its balance sheet."

Derek Macpherson, M Partners (3/7/14) "Timmins Gold Corp. announced Q4/13 revenue of $41.5M, EBITDA of $15.2M, CFPS of $0.10 and cash costs of $723/oz. Results were generally in line with our estimates while slightly ahead of consensus. . .free cash flow begins as San Francisco reaches a steady state."

Andrew Kaip, BMO Capital Markets (3/7/14) "Timmins Gold Corp. reported headline Q4/13 EPS of US$0.03. . .the adjusted EPS beat was largely attributable to a lower-than-expected current tax expense. . .earnings came in above BMO Research's expectations. The recently completed equity issuance improves the company's cash position leading into a more capital-intensive period of the San Francisco mine plan."

Andrew Kaip, BMO Capital Markets (2/26/14) "Timmins Gold Corp. expects to produce at least 115 Koz gold from San Francisco over 2014E. . .the company plans to begin production at La Chicharra in 2016E. . .Timmins is also actively exploring 200 kha of contiguous mining claims within the Northern Sonora gold district."

Philip Ker, PI Financial (2/13/14) "Timmins Gold Corp. recently closed a CA$28.4M bought-deal financing at $1.50/share. . .this financing allows the company to significantly strengthen its balance sheet at a turning point of the San Francisco operation, where substantial capital expenditures have dwindled and increasing free cash flow becomes imminent. The cash injection brings our estimated working capital to ~$63.6M and we anticipate Timmins announcing a 2013 end-of-year cash balance of ~$18.5M in its upcoming financials (prior to this financing)."

Stuart McDougall, Jennings Capital (1/27/14) "Timmins Gold Corp. has been a capable junior operator, consistently delivering profits from its San Francisco mine. . .preliminary operating results for Q4/13 suggest a continuation of this trend, setting the company up for another profitable year. . .we are initiating coverage on Timmins Gold with a Buy recommendation and 12-month target price of CA$1.75 per fully diluted share."

Joseph Fazzini, Dundee Capital Markets (1/23/14) "On Jan. 22, Timmins Gold Corp. announced a bought-deal financing for gross proceeds of $25M. . .we feel the equity raise benefits the company in that the new funds will be used to clean up the balance sheet and greatly improve Timmins' financial flexibility going forward. . .we maintain our Buy rating."

Erik Bermel, M Partners (1/22/14) "Timmins Gold Corp. announced a bought-deal equity financing with expected gross proceeds of CA$25M. . .net proceeds from the offering will be used for general corporate, including debt repayment and working capital. . .with expansion spending behind it, the company should generate free cash flow in 2014."

(1/16/14) "Timmins Gold Corp. is growing production in 2014 and has an all-in sustaining cash cost below $1,000/oz. Insider ownership within the company is the highest out of the five Mexican gold producers we have covered."

Philip Ker, PI Financial (1/13/14) "Timmins Gold Corp. announced its Q4/13 production results from San Francisco, which reported 34,166 oz gold versus our estimate of ~33 Koz gold. . .the record production during Q4/13 is a good sign that the increased crushing capacity at San Francisco is aiding increased production levels. . .we reiterate our Buy recommendation."

Andrew Kaip, BMO Capital Markets (1/13/14) "Timmins Gold Corp. announced Q4/13 gold production of 34.6 Koz, 3.7% above our estimate of 33.3 Koz. The company's payable production came in at 33.2 Koz gold, in line with our estimate."

Joseph Fazzini, Dundee Capital Markets (1/10/14) "We expect Timmons Gold Corp. to report its Q4 (and full-year) production estimates early next week and our model calls for Q4/13 production of 32 Koz Au. . .average daily crushing capacity is forecast to have increased to ~23 Ktpd in Q4/13. . .the company will have notably lower capex requirements next year and thus, we expect all-in cash costs to remain compelling at ~$US1,090/oz. . .by delivering on the operational front, generating free cash flow and building up its cash position, we expect Timmons will be able to rebuild investor sentiment over time."

Erik Bermel, M Partners (12/16/13) "Timmins Gold Corp. announced today that it reached an agreement with Sprott Resource Lending Partnership to extend its CA$18M loan facility. . . we continue to have confidence in the company's balance sheet and believe the share price should react favorably to the extension. . .we believe that as Timmins demonstrates the ability to generate free cash flow over both the near- and long-term it should rerate toward similar cost-structure peers, which trade at a premium."

Joseph Fazzini, Dundee Capital Markets (12/16/13) "Timmins Gold Corp. has announced a one-year extension to its $18M credit facility with Sprott Resource Lending Partnership. . .in completing this arrangement, the company has successfully alleviated investor concerns by removing a near-term financing overhang. . .Timmins is well positioned to repay the entire debt balance in 2014 through a combination of cash on hand ($14.4M) and free cash flow and as such, we reiterate our Buy rating."

Brian Szeto, Stonecap Securities (12/16/13) "Timmins Gold Corp. has announced that it has agreed with Sprott Resource Lending Partnership to an extension to the term of its existing $18M credit facility: The new credit agreement will have a term of 12 months from Jan. 1, 2014. . .fortunately, with no additional exploration spending in Q4/13 and only a limited amount of deferred stripping in Q4/13, Timmins should be in a position to rebuild its cash position."

Jay Taylor, Gold, Energy & Tech Stocks (11/22/13) "Q3/13 was a record production quarter for Timmins Gold Corp. with 29,139 oz gold produced. Management was able to generate some free cash flow during a quarter where it had significant capital expenditures. . .even at current low gold prices, the company remains self-financed and expects to generate free cash flow for the remainder of the year."

Erik Bermel, M Partners (11/18/13) "Timmons Gold Corp.'s recently completed resource update and mine plan has extended reserve life to almost 10 years. . .we expect the company to generate free cash flow in Q4/13 and into 2014 even if gold prices fall below current levels. . .the resource update should build investor confidence in operations being viable at current gold prices or lower over the medium to long-term."

Peter Grandich, The Grandich Letter (11/11/13) "Timmins Gold Corp. has now completed its expansion, and is one of the lowest-cost producers out there; the company is well positioned to start generating some significant free cash flow. Once the price of gold starts to show some positive upside momentum, it is companies like Timmins that can show the greatest gains."

Andrew Kaip, BMO Capital Markets (11/11/13) "Timmins Gold Corp. announced an updated reserve and resource estimate along with a revised mine plan for the San Francisco gold mine. . .the company reported reserve growth of 20% to 1.6 Moz gold. . .the revised mine plan outlines life-of-mine annual production of 122 Koz gold over ~9.5 years."

Adam Graf, Cowen & Co. (11/8/13) "Timmins Gold Corp.'s 100%-owned San Francisco mine is on track to meet 125 Koz Au in 2013. . .the company is managed by a sound operating team, which succeeded in achieving goals by expanding nameplate capacity from 10 Ktpd originally to the current 24 Ktpd. The mine is expected to reach 30 Ktpd capacity by 2014."

Brian Szeto, Stonecap Securities (11/7/13) "Timmins Gold Corp. has announced its updated reserves and resources estimate as well as its new mine plan for its 100%-owned San Francisco mine. . .the new mine plan envisions a 122 Koz/year operation with a mine life of 9.5 years. . .we continue to believe that with 3.7 Moz in total global resources, the mine life at San Francisco will continue to be expanded upon."

Henry Lazenby, Mining Weekly (11/6/13) "A recent drilling program has enabled Timmins Gold Corp. to update its Canadian NI 43-101 compliant 2P reserves by 20% net of depletion, compared with the previous July 1, 2011 estimate, to 1.59 Moz gold. . .the company also lifted its Measured and Indicated resources, including the reserves, by 30% to 1.87 Moz. . .over the estimated life of the mine, San Francisco is expected to produce about 1.16 Moz gold based on the current reserves."

Philip Ker, PI Financial (11/6/13) "Timmins Gold Corp. announced a new reserve/resource estimate and a subsequent new mine plan for its flagship San Francisco mine in Sonora, Mexico. . .the estimate outlined 91 Mt at 0.54 g/t totalling 1.59 Moz gold and represents a 43% increase in contained gold versus the previous estimate outlined in November 2011 (excluding depletion). At the present processing rate, this reserve can support a 9.5-year mine life with the potential of further upside through increasing confidence on the 122 Mt. . .we estimate that a 12-year mine life is more realistic as future tonnage is brought into mine reserves."

Joseph Fazzini, Dundee Capital Markets (11/5/13) "Timmins Gold Corp. announced an updated reserve and resource estimate as well as an updated mine plan. . .rolling the updated reserves into a new life-of-mine plan results in an updated 9.5-year mine life with average annual production of ~122 Koz. . .we believe the updated mine plan better reflects the current metal price environment given its emphasis on free cash flow (FCF) generation rather than production growth. With many producers struggling to generate FCF in the current environment, we believe this represents a positive step forward. . .with few small-cap gold producers generating FCF, we consider Timmons' all-in costs to be very competitive."

Andrew Kaip, BMO Capital Markets (11/5/13) "Timmins Gold Corp. released a resource and reserve update as well as a revised mine plan for its San Francisco mine. . .the company reported reserve growth of 20% (from the July 1, 2011 update) to 1.6 Moz gold. The revised mine plan outlines life-of-mine annual production of 122 Koz gold over ~9.5 years."

Erik Bermel, M Partners (11/5/13) "Timmins Gold Corp. released an updated resource estimate and mine plan for its San Francisco mine, which extended mine life from 5 years to 9.5 years as reserves grew by 20% (after depletion). . .[our] confidence is increased in the company's ability to generate positive free cash flow (FCF). . .we believe that as Timmins demonstrates the ability to generate FCF in both the near and long term, it should rerate toward similar cost-structure peers, which trade at a premium. . .we believe that the increased mine life should support our view that multiple expansion is likely allowing the company to rerate toward peers."

Michael Siperco, Macquarie Capital Markets (10/30/13) "Timmins Gold Corp.'s resource update and new mine plan could come as soon as next week. . .the update (incorporating 150,000m of new drilling) could add upside to our valuation."

Andrew Kaip, BMO Capital Markets (10/30/13) "Timmins Gold Corp. reported headline and adjusted Q3/13 earnings per share (EPS) of US$0.03. . .the slight EPS miss was attributable to higher-than-expected general and administrative expenses and depreciation, offsetting lower operating costs. The company also reported by-product cash costs of US$738/oz gold, below the BMO Research [forcast of] US$809/oz gold. . .Timmins is rated Outperform with a CA$2.75 target price."

The Gold Report Interview with Derek Macpherson (10/22/13) "In Mexico, you want to look for companies that have low all-in cash costs. For example, we like Timmins Gold Corp., which sold off on the royalty news. We think the selloff was unjustified, because the company has generally low all-in cash costs and higher margins than many of its peers. . .once Timmins' resource report comes out, the stock should move up as investor confidence improves. There has always been concern about Timmins' long-term grade profile and the mine life at San Francisco. The pending resource update will answer those questions. . .considering its cash cost profile, Timmins is trading below three times 2014 EBITDA. If you look at the company's low cash cost peers in Mexico, similar open-pit, heap-leach operations trade at six to eight times EBITDA." More >

Philip Ker, PI Financial (10/10/13) "The record production during Q3/13 is a good sign Timmons Gold Corp.'s San Francisco is moving in a positive direction but further clarity is still needed from a long overdue updated mine plan for San Francisco. . .we expect expansion of a third crushing unit to be completed in Q1–Q2/14, which would bring daily throughput up to 30,000 tpd. . .the company continues to demonstrate positive operations from San Francisco. Notably during the quarter, strong recoveries were recognized at 64.7%, which are the highest on recent record."

Joseph Fazzini, Dundee Capital Markets (10/10/13) "Overall, we're satisfied with Timmins Gold Corp.'s Q3/13 operating results. . .the company is still slated to show a 25% production increase relative to 2012. With the daily crushing rate on the rise, cost cutting underway and production continuing to improve, we believe the stock has been oversold; hence, we maintain our Buy rating and $3 target on Timmins."

Brian Szeto, Stonecap Securities (10/10/13) "For Q3/13, Timmins Gold Corp. produced at its San Francisco mine 29,139 oz gold and sold 28,665 oz. . .overall grades were in line with our expectations (0.77 g/t gold versus our expectations of 0.79 g/t gold) and recoveries came in better than expected (64.7% versus our expectations of 60%). . .we continue to maintain our Outperform rating and a $3 target price."

Erik Bermel, M Partners (10/8/13) "Timmins Gold Corp.'s completion of expansion to 24 Ktpd in Q3/13 should lead to free cash flow (FCF) in Q4/13. . .a resource update is expected in early Q4/13. . .the mine life based on reserves could be extended to 10+ years. . .the updated resource should provide increased confidence in our view that the company can generate FCF in most gold price environments over the long-term. . .we believe that as Timmins demonstrates the ability to generate FCF in both the near and long-term they should rerate toward similar cost structure peers that trade at a premium."

Joseph Fazzini, Dundee Capital Markets (9/25/13) "The simple, cost-efficient nature of Timmins Gold Corp.'s San Francisco mine provides for competitive all-in cash costs. . .and the company's cash position remains solid. . .Timmins plans to release an updated resource in the next few weeks along with new mine plan that will reflect the company's efforts to convert inferred ounces into the Measured & Indicated category (and subsequently reserves). We expect the drill program will both expand the existing resource base and upgrade a sizeable portion of resources into reserves."

Derek Macpherson, M Partners (9/11/13) "We reiterate our Buy rating and $3.20 price target on Timmins Gold Corp. We believe the recent selloff offers a very attractive entry point; this is particularly true given its discounted valuation to peers and significant near-term catalyst."

Ian Parkinson, GMP Securities (9/10/13) "Since its acquisition in 2007, Timmons Gold has grown annual production [at the San Francisco gold mine] to the ~125 Koz/year range and established an operating track record. We see room for further growth from this asset. . .given the company's strong track record and high-quality assets, we see meaningful upside potential as investors recognize the value inherent in the stock. . .we are initiating coverage with a Buy rating and a $3 target. . .we view Timmons' combination of a successful operation with organic upside and a large collection of prospective holdings as an appealing investment opportunity."

Andrew Kaip, BMO Capital Markets (9/4/13) "The rebound in the price of gold, corresponding with a period of poor share price performance, has drastically improved Timmins Gold Corp.'s valuation relative to peers. The lower valuation improves the prospect for a rerate following successful completion of the plant expansion, updated reserves and resources statements, and a mine plan. . .we are upgrading the company to an Outperform rating."

Brian Szeto, Stonecap Securities (8/9/13) "Timmins Gold Corp. completed a sizeable exploration program in H1/13 that consisted of more than 135,000m of drilling at both the San Francisco and La Chicharra projects. . .we continue to expect to see a substantial increase in overall reserves from the current 1.3 Moz (at 0.57 g/t gold) and could see it reach the 2 Moz mark. . .with no additional exploration spending in H2/13 and approximately US$15–18M to be spent in Q3/13–Q4/13, the company should be in a position to rebuild its cash position over the remainder of the year."

Philip Ker, PI Financial (8/8/13) "Timmins Gold Corp. announced its Q2/13 financial results, reporting net earnings of $1.0M or $0.01/share and operating cash flow of $12.1M or $0.08/share. . .the company continues to maintain low cash costs at its flagship San Francisco mine. . .with further increases expected to San Francisco's crushing capacity up to 24 Ktpd by Q4/13, we continue to anticipate growing production levels over the course of 2013. . .the company's cost and production profile remains attractive under tighter margins from weaker metal prices, and we believe upside exists for Timmins as the company continues to minimize capex and strengthen its balance sheet."

Erik Bermel, M Partners (7/22/13) "We are initiating coverage on Timmins Gold Corp. with a Buy recommendation. . .the company has the majority of ramp-up risk and development capex behind it, setting it up to generate free cash flow in the current gold price environment. We believe the combination of favorable jurisdiction and low all-in cash costs has Timmins poised to rerate toward similarly located peers with comparable cost structures. . .the pending updated resource estimate could result in upside to our estimates as we believe both grade and mine life are likely to improve."

Philip Ker, PI Financial (7/18/13) "Timmins Gold Corp. announced Q2/13 production numbers from its San Francisco open-pit heap-leach operation, [achieving] 28,024 oz of production during the quarter in 2013. . .San Francisco has produced ~56 Koz of gold with a strong H2/13 expected as throughput gradually increases to target 24,000 tpd. . .based on steady recoveries, mining and processing 0.8 g/t and higher throughput levels, we believe the company will be capable of targeting its guidance of 125 Koz for 2013. . .and believe in management's ability to increase its crushing capacity."

Brian Szeto, Stonecap Securities (7/18/13) "Timmins Gold Corp. has reported its Q2/13 operating results for its San Francisco mine. . .the company produced 28,024 oz gold and sold 28,024 oz. . .overall grades came in better than expected. . .at present, we continue to rate the shares with an Outperform rating."

Joseph Fazzini, Dundee Capital Markets (7/18/13) "Timmins Gold Corp. announced operational results from its 100%-owned San Francisco mine in Mexico. In short, the company reported its Q2/13 production results of 28 Koz, which came relatively in line with our estimate of 29 Koz. . .we believe that Timmins' full-year guidance of 125 Koz is still achievable."

The Investment Doctor, Seeking Alpha (7/9/13) "Because of the relatively low all-in cost/oz gold and the robust balance sheet, I think Timmins Gold Corp. is headed toward a very bright future. I expect the company to increase its cash balance from $26.9M at the end of Q1/13 to approximately $35–40M by year's end. . .I expect a resource update that should considerably increase the amount of ounces in the ground, which will make Timmins more valuable."

The Gold Report Interview with Roger Wiegand (6/24/13) "One of the standards out there that has been very good to our readers for the last four years is Timmins Gold Corp. It is a steady play, always on the upswing. When the futures and the cash markets rise, Timmons runs alongside. The near-term price is between $2.50 and $2.75/share. We're looking at $2.85 to $3/share in the next 30–60 days, roughly." More >

The Gold Report Interview with Jay Taylor (6/17/13) "Timmins Gold Corp. is a company with good cash flow and is certainly in a position to grow organically from its San Francisco mine in Mexico." More >

Ivan Lo, The Equedia Weekly Letter (6/9/13) "In a recent article published by The Globe and Mail, Timmins Gold Corp. was named one of the top stocks that might appeal to anyone looking for a bargain on the TSX. . .Timmins showed a 33.3% return on equity and a P/E ratio of 8.3, which means it has a demonstrated ability to produce profits while also being considerably cheaper than the market norm. . .from a scale of 1 (Sell) to 5 (Buy), recent analyst consensus for the company was pegged at 4.5. You have to love a company that continually produces profits for its shareholders."

Andrew Kaip, BMO Capital Markets (5/30/13) "Timmins Gold Corp. has largely de-risked the San Francisco mine in Mexico over the last two years and is now in the position to grow production through low-cost optimization. . .the company provides investors with near-term growth with annual production projected to move into the 125—135Koz range in 2014. . .low sustaining capital requirements translate into superior free cash flow yield relative to peers."

The Gold Report Interview with Ivan Lo (5/24/13) "Timmins Gold Corp. is a favorite. The company continues to increase revenues, cut costs and expand its mine life with funds paid from production. It just had another record-breaking quarter. Its profit from operations grew 40%; earnings are up 155%; cash flow is up 50% or 51%, and it sold 30% to 35% more gold than it did last year. This is all at a cash cost per ounce on a byproduct basis of $703. That's an all-in cost. Even if prices fall to $1,000/oz, Timmins is still making money. In the gold space that's rare. . .it's still undervalued compared to its peers. Timmins isn't even close to being fairly valued. Some of the analysts have price targets double where Timmins is currently trading." More >

The Gold Report Interview with Peter Grandich (5/13/13) "Without a doubt, the best performer among my client companies has been Timmins Gold Corp. You really have to marvel at what it has achieved. Timmins began its quest to become a significant producer during the worst financial crisis in decades and is now a clear leader in the next generation of major producers. . .unlike many other gold stocks that have gotten creamed, Timmins did not decline close to them percentage-wise. It's a sign that investors have recognized it to be an amazingly well-run company that is either going to be an acquirer or a takeover target. It's doing too well to sit back. I would suggest that in 12 to 24 months we will learn that Timmins has gone on the acquisition trail, or was attempted to be taken over by a larger company." More >

fewer comments
Due to permission requirements, not all quotes are shown.

Timmins Gold Corp. Content






Back to Top