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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:

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."

more comments

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."

James Fraser, Visual Capitalist (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 >

Erik Bermel, M Partners (5/9/13) "With Timmins Gold Corp.'s in-line results and expansion initiatives on track, we continue to believe in the company's ability to generate cash flow, supported by low capex requirements and strong operating metrics. This stable production profile is coupled with near-term exploration potential and an updated mine plan; we are maintaining our Buy recommendation."

Stuart McDougall, Casimir Capital (5/8/13) "Timmins Gold Corp. has released Q1/13 financial and detailed operating results. . .record gold production and sales (28,328 oz and 28,642 oz, respectively) were prereleased in early-April. . .we expect resources to increase with the updated mine plan scheduled for completion in Q3/13. . .overall, we are encouraged by the results, particularly management's ongoing focus on costs, but are leaving our target and recommendation unchanged. That said, we note the potential for a beat on our 2013 forecasts, with management reiterating guidance for 125–130 Koz of production, at a cash cost of $700–750/oz."

Brian Szeto, Stonecap Securities (5/8/13) "Timmins Gold Corp. announced its Q1/13 financial results. . .the company reported better-than-expected earnings per share ($0.10 vs. $0.08) and cash flow per share ($0.16 vs. $0.15). . .cash costs came in at $703/oz, which was better than the full-year cash costs of $747/oz. . .cash costs are now at the lowest level since Q4/11. . .the company did not disappoint with its results. . .operationally, it is ramping up well as it targets to exit the year with a production rate in excess of 30,000 tpd. . .the next big catalyst will be the reserves and resources estimate update in mid-2013, which should see a substantial increase in the company's mine life to 8–10 years."

Joseph Fazzini, Dundee Capital Markets (5/8/13) "Timmins Gold Corp. released record production of 28.3 Koz gold for the quarter, as well as financial results for Q1/13. The company reported EPS of $0.10. . .and cash flow per share of $0.16 for the quarter. . .we expect to see additional positive news flow in the near term as the drill program at the San Francisco mine wraps up. Given the recent encouraging results, we continue to believe the company will materially increase the resource base in the Q3/13 update and in turn, should extend the mine's life."

Michael Siperco, Macquarie Capital Markets (5/8/13) "Timmins Gold Corp. followed up good operational results released in April with good financial results. Headline EPS was $0.10, with the adjusted number coming in at $0.09 versus consensus of $0.08 and our forecast of $0.07. . .operationally, the San Francisco project is ticking along as expected with throughput up to 20 Ktpd in the quarter and on the way to ~30 Ktpd in late 2013/2014 when the crushing expansion is completed. . .given the volatility in the gold price and the mixed operating/financial results seen industry wide, beating consensus and delivering on expectations has to be seen as a significant positive."

Erik Bermel, M Partners (5/1/13) "Timmins Gold Corp. announced drill results from its ongoing drill program at the San Francisco and La Chicharra pits, which continue to support a significant update to the resource and mine plan. . .the program continues to extend and expand mineralization at San Francisco and La Chicharra and could support an extension of the mine life to an estimated 10 years, which would derisk the current five-year mine life. . .management believes the results could point to the discovery of a new satellite deposit (in addition to the three new zones at La Chicharra). . .we are maintaining our Buy recommendation and our 12-month target price of $4.10/share."

Stuart McDougall, Casimir Capital (5/1/13) "Timmins Gold Corp. has released new drilling results at its San Francisco heap‐leach gold mine in Mexico. . .the company also released results from one of four step‐out holes collared 1km east of the San Francisco pit. Hole TFD‐141 intersected several lenses, including 1.5m grading 15 g/t gold, starting at 147m. . .an updated reserve/resource scheduled for release in Q3/13. . .we rate Timmons a Buy."

Peter Grandich, Grandich Letter (4/30/13) "Today, Timmins Gold Corp. demonstrated strong upside potential remains, and the share price has done well given the massacre in gold stocks and the take-down of the gold price. It would come as no surprise to see the company making new, all-time highs in conjunction with the resumption of the gold price above $1,600/oz."

Philip Ker, PI Financial (4/30/13) "Timmins Gold Corp. reported positive drilling results from its existing drill campaign. . .quality intercepts from within the current San Francisco pit as well as at La Chicharra confirms our thesis that an abundance of the Inferred resources will be converted to Measured and Indicated in an upcoming report and resource estimate anticipated in August/13. . .we expect the company to achieve 30% growth to its production profile in 2013. . .we are maintaining our Buy recommendation."

Stonecap Securities (4/22/13) "Our analysis illustrates that Timmins Gold Corp.'s open-pit, heap-leach operation (Sonora, Mexico) is profitable at any gold price environment that we have looked at. Under our current assumptions, we expect that the company will free cash-flow in excess of US$50M in 2013 and reach US$64M in 2014 once the La Chicharra satellite deposit is up and running. Even at a US$1,000/oz gold price environment, Timmins' operations continues to produce positive cash flow. . .the key reason why the company is able to achieve this feat is due to the low sustaining capex nature of its operations (i.e., US$3M per year based on our current estimates)."

Jay Taylor, Hotline (4/12/13) "Timmins Gold Corp. is on line to produce upwards of 100 Koz gold in 2013 at its San Franscisco mine. . .this company has an excellent potential to continue increasing its gold production and do it with internally generated funds."

The Gold Report Interview with Phillip Ker (4/12/13) "As for Timmins Gold Corp., I believe this is a pivotal year. It is working toward increasing gold production from about 95 Koz in 2012 to 130 Koz in 2013, while reducing cash costs through several different initiatives. The major increase in production comes as a result of increasing its crushing capacity. Several new crushing components have been installed during 2012 with a new circuit anticipated to come on-line for the nearby La Chicharra deposit that will ultimately bring daily crushing capacity up to 30,000 tpd. . .the 200,000m drill program should better define and bring a lot of the Measured and Indicated resources up into the Reserve category. This will aid in extending the total mine life of San Francisco as well as prove up additional reserves at its nearby satellite pit, La Chicharra." More >

Joseph Fazzini, Dundee Capital Markets (4/11/13) "After the release of Q1/13 production results from its wholly owned San Francisco gold property in Mexico, we believe Timmins Gold Corp. remains on track to meet 2013 production guidance of 125–130 Koz Au. . .the shares are currently trading below its peer-group average. . .this discounted valuation suggests to us an attractive entry point to either build or increase a position in the company at this time."

Stuart McDougall, Casimir Capital (4/10/13) "Timmins Gold Corp. reported record quarterly gold production of 28,328 oz, which was 10% better than our forecast, reflecting a 15% beat on grade. . .the company confirmed its expectations for increasing crushing rates as optimization measures continue. . .we continue to recommend the shares as a Strong Buy, which is warranted by the company's success to date and relatively low capital requirements over the balance of the mine life."

Philip Ker, PI Financial (4/10/13) "Timmins Gold Corp. announced record production of 28,328 oz Au for Q1/13 at its San Francisco mine. . .the company's flagship asset continues to achieve rising production levels while expanding its crushing circuit to target 30 Ktpd of throughput by year-end. . .we believe considerable upside could exist for the shares as it continues to increase its production profile, balance sheet and operating cash flow. . .we are maintaining our Buy recommendation."

Ingrid Rico, M Partners (4/10/13) "Timmins Gold Corp. produced a record 28,328 oz Au in Q1/13 at an average grade of 0.83 g/t Au, which was than our estimate. . .this is largely a reflection of higher throughput as the San Francisco mine starts to realize the benefit of the phase 2 expansion completed at the end of 2012. . .phase 3 of the expansion to 30 Ktpd, which should bring La Chicharra into production in Q3/12, which should start later in April. . .with a good start to the year, the company continues to deliver good operational performance. . .we are maintaining our Buy recommendation."

The Gold Report Interview with Peter Krauth (3/27/13) "We hold Timmins Gold Corp., a small producer whose San Francisco mine is in Mexico. The company had record gold production last year, a 27% increase YOY. It is expanding its crushing capacity, which should allow for another 25–30% growth in 2013. For a small producer, its P/E is 10.5, and its forward P/E is 7. It has a $28M cash balance and roughly $20M in debt. Timmins is very well run. It is a smaller producer with a great future.

"Timmins is expanding its crushing capacity, drilling off and expanding its resource. I believe that as it was drilling off and delineating more ounces, its finding costs were $10/oz—an incredible return. Its exploration program is relatively aggressive, but it also is confirming the gold in higher confidence categories." More >

Stuart McDougall, Casimir Capital (3/21/13) "Timmins Gold Corp. completed about 60,000m around the main San Francisco pit in January and February. . .another 100,000m is planned until May, mainly to infill that deposit's Inferred resource of 93.2 Mt grading 0.45 g/t Au. . .an updated mine plan will follow, with completion anticipated in late July or early August. . .we are reiterating our Strong Buy recommendation largely on the back of management's continued guidance for 125–130 Koz at a cash cost of $700–750/oz in 2013."

Brian Szeto, Stonecap Securities (3/21/13) "Timmins Gold Corp. announced its Q4/12 financial results. . .the company reported adjusted EPS of $0.08. . .Timmins prereleased its Q4/12 production results, where they produced 24,556 oz and sold 24,241 oz. . .the company's exploration program for 2013 consists of a 150km/$15M drill program that will consist of 100km of drilling at San Francisco and 50km at La Chicharra and other regional targets. . .Timmins had a solid quarter. . .although we are conservatively assuming a slightly slower ramp up at La Chicharra, we still expect that the company will generate free cash flow in excess of $50M in 2013."

Ingrid Rico, M Partners (3/21/13) "Timmins Gold Corp.'s 2012 cash flow from operations of $46.9M and earnings of $36.1M ($0.25/share) were in line with our estimate of $0.24/share. . .a good operational year that saw improvements in the operation, completion of the 22–24 Ktpd expansion and record production of 94,444 oz Au reflected well in the financial results, highlighted by the increasing cash flow generation."

Michael Siperco, Macquarie Capital Markets (3/21/13) "We expect strong free-cash-flow (FCF) generation to come for Timmins Gold Corp.: Using forward curve gold prices, we forecast FCF (prior to the planned $18M debt repayment in July) of $44M in 2013 (11% yield versus peers at 3%) and $64M in 2014 (16% versus peers at 7%). The company has held in well during the recent market turmoil, and we are looking for positive news flow over the next 3–6 months to support the stock and further valuation increases."

Joseph Fazzini, Dundee Capital Markets (3/19/13) "With $15–20M budgeted for a 200,000m drill program, we expect Timmins Gold Corp. will be successful in substantially increasing the current reserve base and extending the mine life. In addition, we look forward to results from drilling regional targets to the north and the east of the main San Francisco pit."

Peter Grandich, The Grandich Letter (3/13/13) "Timmins Gold Corp. has been a refreshing breeze in a sea of red. . .I think it's very important to note how well the company is doing on many fronts, none of them more important than free cash flow. . .the company continues to demonstrate it can be a model for the industry."

Peter Grandich, The Grandich Letter (3/11/13) "Like so many other emerging producers, Timmins Gold Corp. got thrown out with the bath water. In my humble opinion, it may become a takeover target down at these levels."

Henk Krasenberg, European Gold Centre (3/11/13) "Timmins Gold Corp.'s exploration activities continue at an impressive level; for 2013, an extensive 200,000m drilling program is underway to expand the deposit in all directions around and beneath the main pit with significant regional exploration. Expanding the existing gold reserve of 1.33 Moz (72.3 Mmt at 0.572 g/t gold) is one of the objectives for 2013; I am very positive about the quality growth that this quality gold producer will continue to realize."

Joseph Fazzini, Dundee Capital Markets (3/8/13) "Even after its 20% run-up, we still consider Timmins Gold Corp. stock undervalued. In our opinion, the company's 100%-owned San Francisco mine remains an example of operational stability, capital efficiency and growing production. Add in Timmins' modest all-in costs and an attractive valuation and it's easy to see the rationale for our BUY rating. In the current volatile gold price environment, we continue to favor producers who exhibit the combination of solid free cash flows, growing production and capital efficient operations. Timmins, we submit, satisfies these criteria and [has] five attributes we believe will enable Timmins to weather any future volatility in the current gold market: production growth in 2013, capital-efficient operations, internally financed growth from free cash flows, a long-term dividend objective and a compelling valuation."

Steven Green, TD Securities (3/7/13) "Free cash flow (FCF) and simplicity set Timmins Gold Corp. apart. . .the company has largely completed development spending at its San Francisco mine and is now generating solid FCF; we forecast a 2013 FCF yield of over 15%, the highest in our universe, and well above the producer group average of 4%. . .we are initiating coverage of Timmins with a $4.25 target price and a Buy recommendation. . .in our view, the market is currently seeking uncomplicated stories and strong FCF, which describes Timmins perfectly."

The Gold Report Interview with Alka Singh (3/1/13) "Timmins Gold Corp. continues to be undervalued. Its San Francisco property is ramping up pretty well and will continue to ramp up." More >

Philip Ker, PI Financial (2/25/13) "Timmins Gold Corp.'s management is aggressively expanding its crushing circuit at San Francisco in order to bring throughput up to 30 Ktpa and begin targeting 125–130 Koz/year of gold production. . .we continue to like the company and its growth profile as it heads into 2013 with continued strong production numbers. Furthermore, we are confident that current operations will be operated smoothly and efficiently in order to reduce cash costs and maintain strong profit margins. . .we are maintaining our Buy recommendation and $3.90 target price, which currently represents a potential 73% return to investors."

The Gold Report Interview with Henk Krasenberg (2/22/13) "Timmins Gold Corp. is doing great and is looking at even better results in the next few years. . .Timmins Gold is on the right track. The potential at its project is great and it has the cash flow to do it." More >

Ovais Habib, Scotia Capital (2/19/13) "We have initiated coverage on the common shares of Timmins Gold Corp. with a Sector Outperform rating and a one-year target price of CA$4/share. . .we believe the company has a solid production base at the San Francisco mine, where the company plans to increase gold production by continuing to expand the crushing capacity and optimize processing efficiency."

The Gold Report Interview with Ingrid Rico (2/11/13) "Timmins Gold Corp. has been one of our best performing companies. The company had an excellent operational year in 2012. It is at the point where it has proven to the market that it can deliver operational performance. This year, Timmins is going to concentrate on drilling, getting that visibility of a bigger resource and further production expansion. . .because Timmins is generating cash, it does become pretty attractive. We have seen that before, such as when B2Gold Corp. went after CGA Mining Ltd. . .but Timmins would like to keep growing on its own. I assume it is already actively looking at different properties and seeing what's out there so it can evolve into a more-than-one-asset operating mining company. . . at Timmins you could see near-term production because there is so much infrastructure in place." More >

Peter Grandich, SmallCapPower (2/1/13) "There are a handful of juniors [that] not only withstood the worst bear market I've seen in 30 years, but actually prospered through it. . .one of them was Timmins Gold Corp. The company has grown to be a significant producer and [is] at the point where either it is going to have to make acquisitions to stay independent or somebody's going to target it."

Brian Szeto, Stonecap Securities (1/14/13) "For Q4/12, Timmins Gold Corp. produced 24,556 oz gold (in line with our expectations of 24,800 oz) at its 100%-owned San Francisco mine and sold 24,241 oz gold. . .the company had record monthly production in December."

Shane Nagle, National Bank Financial (1/11/13) "Throughput for Timmins Gold Corp. exited the year at 22 Ktpd and is scheduled to increase to +24 Ktpd in H1/13, with further optimization of the circuit. . .the company is targeting completion for stage three of the crusher expansion (to +30 Ktpd) in H2/13. . .and is targeting production of 125–130 Koz in 2013. . .we reiterate our Outperform rating."

Ingrid Rico, M Partners (1/11/13) "Timmins Gold Corp. released quarterly operational results reporting 24,556 oz Au produced resulting in 94,444 oz Au produced in 2012. Operational improvements and the processing capacity expansion program led to a record production year. ..we are pleased with the operational performance of the San Francisco mine. . .we expect the company will continue to deliver with operational improvements, steady production increase and cost reduction initiatives. . .we are maintaining our Buy recommendation and our 12-month target price of $4.10/share."

Joseph Fazzini, Dundee Capital Markets (1/11/13) "We maintain our Buy rating and $4 price target on Timmins Gold Corp. at this time. . .the company reported a record December 2012, producing 9.35 Koz. . .we forecast 2013 production of 127 Koz and expect production to gradually increase throughout the year. . .we expect cash costs to improve in 2013."

The Equedia Weekly Letter (12/30/12) "Timmins Gold Corp. continues to impress and outperform its peers. It continually beats market expectations and is a significant cash-flow machine, on track to produce more than 100 Koz gold next year."

Ivan Lo, The Equedia Weekly Letter (12/16/12) "Timmins Gold Corp. has been one of the best performing gold stocks of 2012 and we believe there is further upside because its cash generating abilities and exploration upside are not fully priced in. . .we forecast free cash flow (FCF)of $41M in 2013, growing to $84M in 2014 once San Francisco reaches a steady state and capital projects are completed. . .this translates to an FCF yield of 9% based on 2013, the highest in our coverage universe, and 18% based on 2014."

Philip Ker, PI Financial (12/13/12) "Timmins Gold Corp. offers considerable upside as it expands and grows its earnings and production profile. . .we are initiating coverage of the company with a target price of $3.90 and a Buy recommendation, which represents a potential 24% return to investors. As a current gold producer in one of the world's largest mineralized precious metal belts with consistent operations and positive cash flows, we believe it justifies a Buy recommendation."

Joseph Fazzini, Dundee Capital Markets (12/11/12) "Timmins Gold Corp. has built its reputation on the back of its 100%-owned, open-pit, heap-leach San Francisco mine in Mexico: After restarting the mine in 2010, the company has made steady progress in expanding production to a 100 Koz/a run-rate while cash costs declined to ~US$715/oz in 2012. By keeping things simple and delivering on its objectives, shareholders have benefitted and we expect this trend to continue. Accordingly, we are initiating coverage of Timmins with a Buy rating. . .ample room for upside exists as the company continues to expand production and deliver on its strategic initiatives."

Sam Crittenden, RBC Capital Markets (12/11/12) "We are initiating coverage of Timmins Gold Corp. with an Outperform, Above Average Risk rating and $4.50 price target. . .the company has been one of the best performing gold stocks in 2012 (up 59% year to date vs. the S&PTSX Index up 2%) and we believe there is further upside because its cash generating abilities and exploration upside are not fully priced in. . .we believe Timmins could create value through acquisition by using its relatively strong paper and balance sheet to acquire an asset trading at a discount in a challenging market. . .it could also become a takeover candidate if it can execute its strategy over the next year."

The Gold Report Interview with Peter Grandich (12/10/12) "Timmins Gold Corp. started its road to riches during the worst financial crisis ever and is near an all-time share price high in a market where most companies have gone the opposite direction. It continues to come out with good news of advancing resources and higher production." More >

Brian Szeto, Stonecap Securities (11/26/12) "Timmins Gold Corp. has announced the highlights from 35,455m of new drilling from its 100%-owned San Francisco mine. . .highlights from La Chicharra include 15.53 g/t gold over 4.57m and 1.89 g/t gold over 13.71m. . .we were the most encouraged by some of the results at La Chicharra, which continues to be an interesting target for the company due to the oxide nature of the ore. . .we highlight that there are already enough ounces within its existing resource to extend San Francisco's mine life to well beyond 10 years."

Ingrid Rico, M Partners (11/26/12) "Timmins Gold Corp. announced results from its ongoing drill program at the San Francisco mine. . .the results continued to confirm mineralization outside the limits of the pit with a new mineralized zone (East zone) . . .we expect that with the successful completion of the 2013 drill program, San Francisco and La Chicharra could approach a total resource of 3.5–4 Moz Au (currently, the Measured and Indicated plus Inferred resource stands at 2.9 Moz Au). We are maintaining our Buy recommendation."

Shane Nagle, National Bank Financial (11/23/12) "Timmins Gold Corp.'s drilling in the East zone from July to September has intersected an average of 4.8m grading 0.72 g/t. . .core results confirm similar lithologies to those found within the San Francisco pit along a magnetic trend that continues for at least 2 km to the east of the current pit. . .near-mine exploration potential continues to support our $4 target price and Outperform rating."

Brian Szeto, Stonecap Securities (11/22/12) "Timmins Gold Corp. has announced the results from new metallurgical test work for its 100%-owned San Francisco mine located in Sonora, Mexico. . .at San Francisco, the column testing results indicated an average gold extraction of 71%. . .we anticipate that the company will continue to assume recoveries of 68.6% in its new mine plan, which is expected to be announced in Q1/13. . .going forward, we would like to see stabilization in gold recoveries quarter over quarter. We believe that these latest results suggest that this is a definite possibility."

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