Timmins Gold Corp.

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.

Expert Comments:

"Timmins Gold Corp. is benefiting from a weaker peso. Timmins has been trimming costs at its San Francisco gold mine in Mexico at every corner possible over the past year. It has brought down cash costs to ~US$800/oz in order to offset the decreasing grades the company expects to experience in the coming years. Additionally, exploration costs across Mexico have dropped since a new tax regime was established last year and scaring off junior explorers from testing prospective ground. This makes negotiation of drilling contracts much easier as drillers and equipment become underutilized. This helps stretch exploration dollars much, much further and is more favorable to explorers who pursue drill testing targets and advancing projects. Furthermore, Timmins recently acquired the Caballo Blanco project from Goldgroup Mining, and is in the process of acquiring Newstrike Capital, which owns the Ana Paula project within the Guerrero Gold Belt. With these two pipeline growth projects in its portfolio, we expect Timmins to endure an extensive amount of exploration and development work in the coming years to help advance them into production.

Ana Paula is definitely located within a prospective gold belt. I could see Goldcorp's Los Filos mine off in the distance while touring both Torex Gold Resources' El Limon project and Ana Paula. To me, that demonstrates the potential along trend and the Guerrero Gold Belt remains relatively underexplored, including Ana Paula and surrounding land claims being acquired by Timmins Gold. Ana Paula is a high-grade (2.24 g/t) gold system with a potentially low stripping ratio (2.6:1) that is expected to average 116 Koz of annual gold production over its eight-year mine life. This is a very attractive project and a good bolt-on asset for Timmins to possess and develop under its new growth initiatives." read more >

Derek Macpherson, M Partners (2/25/15)
"Recently, Timmins Gold Corp. entered into a definitive arrangement agreement to acquire all the outstanding shares of Newstrike Capital Inc. . .based on our estimates, the company could produce 347 Koz in 2019 at total cash costs of $658/oz once Caballo Blanco and Ana Paula are ramped up. . .we are maintaining our Buy recommendation."

"We're long-term supporters of Timmins Gold Corp., which announced record production for 2014: 122 Koz gold equivalent. In December, the company bought Caballo Blanco from Goldcorp. That was a smart move. If Timmins can get that permitted, say in the next year, that would add production of 90 Koz per year. In addition, Timmins has recently announced good discoveries on its land adjacent to its San Francisco mine: 1.29 g/t gold over 33.9m, 5.52 g/t over 10.2m and 8 g/t over 14m. So Timmins looks to be able to increase production and reserves, while lowering cash costs. This will have a double effect on its bottom line. As suggested above, the company has much exploration potential on these two properties because little of it has been explored. It has eight other properties in its portfolio, which results in a pipeline of years of organic growth. And this is a company that has proved it can deliver. Timmins Gold's all-in cash cost guidance for 2015 is $800–850/oz.

Timmins announced very recently that it would take over Newstrike Capital, which gives it a superb pipeline if the deal gets confirmed. Indeed, with Newstrike's Ana Paula project, Timmins can add substantial production at even lower cost than what it produces at today. Clearly for us it is a winner down the road, led by a superb team that managed to go into production in 2009, just after the financial crisis, and so far only has had quarters with positive cash flow." read more >

Jay Taylor, Gold, Energy & Tech Stocks (2/20/15)
"Timmins Gold Corp. announced the agreement with Newstrike Capital Inc. to merge the two companies into Timmins Gold. This would result in the company becoming a midtier gold producer in Mexico with a large portfolio of producing and developing gold properties in that country with the Timmins San Francisco mine providing the foundational asset for further growth."

Philip Ker, PI Financial (2/18/15)
"Timmins Gold Corp. announced a 100% acquisition of Newstrike Capital Inc. for total proceeds equaling ~CA$140M. The acquisition target is Newstrike's flagship Ana Paula project. . .the Ana Paula acquisition is a bold move for Timmins and presents a significant growth scenario for the company that could yield ~170% growth to its production profile to in excess of 325 Koz/year."

Ovais Habib, Scotia Capital (2/18/15)
"Timmins Gold Corp. and Newstrike Capital Inc. have entered into a definitive agreement to combine the two companies. . .we see the potential for Ana Paula to contribute meaningfully to Timmins' production profile while helping to reduce per-ounce costs, and believe the company is paying a good price for Newstrike."

More Comments

Experts Commenting on This Company

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
Direct leverage to gold with good cash to debt ratio
Strong growth profile - production growing to over 220,000 oz gold/yr
Results driven - Profitable since first day of production
Timmins Gold Corp. Content