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


Primero Mining Corp.

TICKER: PPP:NYSE; P:TSX

Primero Mining Corp. is a Canada-based precious metals producer with operations in Mexico and intentions to become a leading intermediate gold producer. The company offers exposure to unhedged, low cash cost gold production with a substantial resource base in a low political risk jurisdiction.


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:

Mike Parkin, Desjardins Securities (4/7/14) "We believe Primero Mining Corp.'s Black Fox mine will return to higher production and profitability levels later this year after the company invests some much-needed capital, unlike the former operator that had failed to do so. . .we believe the addition of a second producing asset located in a jurisdiction with low political risk should help to rerate Primero's shares to trade more in line with the midtier producer average."

Morning Coffee (4/4/14) "We expect that the planned investment in exploration/development by Primero Mining Corp. could drive reserve/resource growth and production/cost improvements, thereby unlocking further value over the next few years for the company's shareholders. . .management's proven track record with San Dimas should increase investor confidence in the team's ability to unlock value from the Black Fox complex."

Barry Allan, Mackie Research Capital (4/4/14) "Primero Mining Corp. has provided initial guidance for the Black Fox complex. . .underground throughput declined to a low of 350 tpd in Q1/14, largely due to continued water issues ranging from a lack of water in the winter to flooding of the site during the spring thaw. This is now being addressed, and once resolved, is expected to allow for underground throughput of 1 Ktpd by year-end and sustainable production of ~100 Koz/year beginning in 2015."

Jeff Killeen, CIBC World Markets (3/28/14) "We are reinstating coverage of Primero Mining Corp. following the secondary offering of 31,151,200 Primero common shares held by Goldcorp Inc. In our view, the closing of the Brigus Gold Corp. acquisition, positive reserve update at San Dimas and sale of Goldcorp's block warrant a rerating for the company's shares; our price target increases to $10 from $8."

The Gold Report Interview with Jeff Killeen (3/26/14) "TGR: Which other gold producers do you like?

JK: Primero Mining Corp. The company put out a revised resource and reserve estimate for San Dimas mine that showed increases in all categories for total ounces and grade. Its acquisition of Brigus Gold Corp. will help bring total production for the company into a new bracket. It remains one of the lower-cost producers in the space." More >

more comments

Adam Melnyk, Desjardins Securities (3/20/14) "We are maintaining our Buy rating on Primero Mining Corp. and increasing our target price to CA$10 (from CA$8.25). . .we believe the addition of a second producing asset located in a jurisdiction with low political risk should help to rerate the shares of the company to trade more in line with the midtier producer average."

The Gold Report Interview with Rick Rule (3/17/14) "Primero Mining Corp. outperformed production expectations and then announced an acquisition of a development project that allowed the market some visibility as to how it might grow going forward." More >

Rob Chang, Cantor Fitzgerald (3/13/14) "Primero Mining Inc. has announced this morning that it has successfully produced the annual threshold of 3.5 Moz silver for Silver Wheaton Corp. . .Primero has done so six weeks earlier than in 2013, further underscoring the quality of San Dimas and the operating team there."

Barry Allan, Mackie Research Capital (3/6/14) "Primero Mining Corp. released 2013 year-end reserves and resources for the San Dimas mine in Mexico, highlighting a 32% increase in reserves and a 28% increase in Measured and Indicated resources (inclusive of reserves) over year-end 2012. . .as a result of excellent exploration success, the company was actually able to increase reserves despite the implementation of a lower $1,250/oz gold price and lower $20/oz silver price, while also increasing the reserve gold grade by 23% and silver grade by 18%."

Rob Chang, Cantor Fitzgerald (3/6/14) "Reserve, resource and grade increases at Primero Mining Corp.'s San Dimas are positive and can lead toward justification of a further plant expansion to 3 Ktpd; today's results validate the further potential for the Victoria vein, which was discovered in 2012. Incorporating the new mineral estimates, we are increasing our target price to $9.10/share (or by 30%) and are raising our rating to Buy."

Mike Parkin, Desjardins Securities (3/5/14) "We view Primero Mining Corp.'s acquisition of Brigus Gold Corp. as being greatly accretive to our NAV and CFPS estimates. . .we believe this deal should help rerate the shares of the company to trade more in line with its peer group. We are increasing our target price on Primero to CA$8.25 (from CA$6.25). . .we are also upgrading the company to a Buy—Above Average risk rating (from Buy—Speculative)."

Joseph Fazzini, Dundee Capital Markets (3/5/14) "This morning, Primero Mining Corp. announced its updated resources and reserves for the company's flagship San Dimas project. . .in short, the update was positive as it demonstrated a significant increase in gold (+36%) and silver (+26%) reserves. We estimate that net of depletion, the new reserves add an additional ~2 years of mine life to San Dimas, assuming the current production rate."

Mike Parkin, Desjardins Securities (2/27/14) "Today during market hours, Primero Gold Corp. announced that both its shareholders and Brigus Gold Corp.'s shareholders have completed voting and approved the previously announced plan of arrangement, with Primero acquiring all of the outstanding shares of Brigus. . .the acquisition is expected to close on March 5, 2014. Primero will acquire Brigus' principal assets, including the currently producing Black Fox mine and mill together with the adjoining properties of Grey Fox and Pike River, all of which are located near Timmins, Ontario. . .we feel that the acquisition is accretive on both a cash flow per share and a NAV/share basis."

Michael Gray, Macquarie Equity Research (2/14/14) "Primero Mining Corp. was able to increase YOY revenues 9.5% from San Dimas to $200M despite a 16% decline in the realized gold price in 2013. . .the Brigus Gold acquisition [is] only a few weeks away [and] will transform the company. . .the Black Fox mine adds 106 Koz consolidated production in 2014 and 120 Koz in 2015, with a 13-year life of mine. . .we maintain our Outperform recommendation and increase our target to $8.10. . .we would be buying Primero ahead of the closing of the Brigus deal as Primero transforms into a two-mine company."

Jeff Killeen, CIBC World Markets (2/14/14) "Primero Mining Corp. reported Q4/13 adjusted earnings of $0.01 per share. . .Q4 production of 29,027 oz of gold (34,371 gold eq oz [GEO]) and cash costs of $550/oz (or $660/GEO) had been prereleased. During Q4, the company sold 32,157 oz of gold and 1.7 Moz of silver at an average realized price of $1,265/oz and $4.16/oz, respectively. . .with the San Dimas expansion near completion, capital spending in 2014 is set to fall to $48.7M (ex-Brigus) from $56.5M in 2013. . .in 2014, all eyes will be on the acquisition and integration of Brigus Gold."

Rob Chang, Cantor Fitzgerald (2/14/14) "Despite the overall positive results for the year, Primero Mining Corp.'s Q4/13 earnings miss may be a catalyst for some profit taking as the company's stock price has performed very well year to date. . .we are increasing our target price to $7/share (or by 3%)."

Mike Parkin, Desjardins Securities (2/13/14) "Primero Mining Corp. reported Q4/13 cash flow per share (before changes in working capital) of $0.12, which was in line with consensus of $0.11. . .in addition to its current cash position of $110.7M, the company will further bolster its liquidity by securing a $75M line of credit, which is expected to close later this quarter."

Rob Chang, Cantor Fitzgerald (2/12/14) "Primero Mining Corp. was successful at controlling costs, reducing total cash costs for FY13 to an expected $599/oz gold equivalent. This represents a figure 6% lower than that of 2012. . .we are reiterating our Buy rating."

Joseph Fazzini, Dundee Capital Markets (2/12/14) "Primero Mining Corp.'s low-cost operating structure should help free cash flow follow production higher and result in ~$28M of estimated free cash flow in 2014. . .given the company's operational track record, expanded production base and impressive cash cost profile, we expect Primero to garner a premium valuation in time."

Jordan Roy-Byrne, The Daily Gold (2/9/14) "Primero Mining Corp.'s expansion at San Dimas to 2.5 Ktpd, which the company announced in October 2012, remains on track for Q1/14. Primero is guiding for production of 160 Koz Au eq in 2014. . .I do believe that it has the financial strength ($147M in cash and ample ongoing cash flow) and technical expertise to achieve its goals and become one of the leading growth-oriented producers of the next cyclical bull market."

Rupert Hargreaves, The Motley Fool (2/3/14) "While some miners have been overspending and struggling with rising costs, others have remained prudent and profitable from the outset; Primero Mining Inc. is one such company. . .production costs were $974/oz in Q3/13, down 22% year-on-year. The company is also financially stable. . .with this robust financial position, Primero has made a swoop on Brigus Gold Corp., an equally profitable gold miner. . .[the acquisition], if conducted correctly, should be beneficial for shareholders long term."

Rob Chang, Cantor Fitzgerald (1/24/14) "Primero Mining Corp.'s FY/13 production figures have been announced with a total of 143,114 oz Au eq produced, representing a year-over-year increase of 29%. Production guidance for San Dimas has once again been tightened for FY/14; it is now guided to between 155–165 Koz Au eq (we are modeling at the midpoint of the range). Our new target price increases by 4.6% to $6.80/share."

Mike Parkin, Desjardins Securities (1/15/14) "By our estimates, Primero Mining Corp. has the potential to produce 8.7% more Au eg ounces this year versus a year ago at total cash costs that are up to 12.6% lower. . .the company is well positioned to generate good cash flow in the current metals price environment."

Mike Parkin, Desjardins Securities (1/14/14) "Primero Mining Corp. produced 143,114 oz Au eq in 2013 (111,983 oz gold and 6.05 Moz silver), beating the upper end of company guidance of 135–140 Koz Au eq. . .for 2014, Primero is guiding to production of 155–165 Koz Au eq."

Jordan Roy-Byrne, The Daily Gold (1/13/14) "Primero Gold Corp.'s acquisition was accretive and the company is one of our absolute favorites in terms of long-term fundamentals. It does not look like the stock will test its bottom."

Adam Melnyk, Desjardins Securities (1/9/14) "Primero Mining Corp. is currently guiding to production of 135–140 Koz gold equivalent at $620–640/gold equivalent ounce in 2013, which we believe the company achieved. . .if Primero is successful in acquiring Brigus Gold Corp. and the Black Fox gold mine (not in our base case estimates), we estimate it has the potential to produce over 350 Koz gold equivalent on an annual basis by year-end 2016."

Jordan Roy-Byrne, The Daily Gold (12/29/13) "Primero Mining Corp. has excellent long-term relative strength and technicals. . .we love it over the long term."

Mike Parkin, Desjardins Securities (12/20/13) "Yesterday after market close, Primero Mining Corp. announced that it has closed the deal to acquire the remaining 30.8% of the Cerro del Gallo project from a subsidiary of Goldcorp Inc. . .we believe the acquisition of the remaining interest is accretive."

Jordan Roy-Byrne, The Daily Gold (12/19/13) "Primero Mining Corp.'s rich and cash flowing San Dimas project and share price strength over the past 15 months have provided it an excellent foundation, which it leveraged to make two acquisitions to launch itself from junior producer to midtier producer status. . .the company has the financial strength ($147M in cash and ample ongoing cash flow) and technical expertise to achieve its goals and become one of the leading, growth-oriented producers of the next cyclical bull market."

Barry Allan, Mackie Research Capital (12/17/13) "Primero Mining Corp. announced a $220M equity offer (0.175 Primero = 1 Brigus) to acquire the operating assets of Brigus Gold Corp. The assets bought are a mine and mill in Timmins called Black Fox, a 0.77 Moz reserve that has the capacity to produce ~105 Koz/year. . .we remain a Buy."

Mike Parkin, Desjardins Securities (12/17/13) "Yesterday, Primero Mining Corp. announced that it had agreed to acquire all outstanding common shares of Brigus Gold Corp. through an all-share deal valued at $220M. . .this deal could potentially be a catalyst for a rerating in the shares of Primero as the company moves to become a multi-asset, low-cost producer. We maintain our Speculative Buy rating."

Jeff Killeen, CIBC World Markets (12/17/13) "Primero Mining Corp. has announced that it has entered into an arrangement to acquire Brigus Gold Corp. . .the acquisition transforms Primero into a multi-asset producer. . .the acquisition provides a meaningful increase to the company's production profile."

Rob Chang, Cantor Fitzgerald (12/17/13) "Primero Mining Corp.'s acquisition of Brigus Gold Corp. provides geographical diversification and makes Primero a two-asset producer, each at low cost. . .we reiterate our Buy recommendation."

Brian Szeto, Stonecap Securities (12/17/13) "Primero Mining Corp. announced the friendly acquisition of Brigus Gold Corp. . .we view the transaction favorably as it substantially increases Primero's production profile to 265 Koz Au eq annually from 150 Koz Au eq previously, which effectively elevates the company's status to that of an intermediate gold producer, as opposed to a junior gold producer. Assuming that Primero decides to move forward with the construction of its Cerro del Gallo project, the company has the potential to further expand its production profile to close to 375 Koz Au eq annually by 2016. All of Primero's production and development projects continue to reside in our most favored mining jurisdictions."

Jordan Roy-Byrne, The Daily Gold (12/15/13) "Primero Mining Corp. is one of our top five picks. . .the company could be one of the first stocks to break to new high all-time highs. . .the stock has been very strong. Primero's long-term chart is in great shape and the stock should pick up steam as it bottoms and rebounds."

Mike Parkin, Desjardins Securities (12/9/13) "By our estimates, Primero Mining Corp. has the potential to grow gold production by more than 60% to 171.8 Koz by 2017 through a successful expansion underway at the flagship San Dimas mine and development of the Cerro Del Gallo mine. The company currently holds a 69.2% interest in Cerro Del Gallo and is working to secure the remaining interest from Goldcorp before year‐end. . .Primero's AISC (Desjardins standard) profile should remain below US$1,100/oz over the next several years, making the company one of the lowest cost producers among its peer group."

Morning Coffee (12/5/13) "Primero Mining Inc. announced results of recent drilling at both its San Dimas mine and its Cerro del Gallo development project in Mexico, highlighted by the discovery of another new high-grade vein at San Dimas and the intersection of new mineralization at Cerro Del Gallo. Exploration highlights included: 1.) Discovery of another new high-grade vein in the West Block, including 7.4 g/t Au and 528 g/t Ag over 11.9m. . .and 2.) Discovery of a 'bonanza' area in the Victoria vein, including 85 g/t Au and 2,716 g/t Ag over 9.1m (VIC13_291) and 81.7 g/t Au and 4,536 g/t Ag over 7.2m (VIC13_289) and extending the known mineralization in the Victoria vein to the west."

Jordan Roy-Byrne, The Daily Gold (11/26/13) "We believe Primero Mining Corp. is one of the top five best long-term plays in the growth-oriented producer space. . .the company continues to report strong results from its San Dimas property. . .the stock continues to perform fabulously relative to the entire sector."

The Gold Report Interview with Sean Brodrick (11/12/13) "There are companies that can make it at the current price. Primero Mining Corp. has a great low-cost gold structure. It also continues to do exploration, when some companies have pulled back because they don't have the money for it. That's what I look for in an earnings report. If a company can't make it at $1,400/oz gold, it definitely won't make it at $1,100/oz gold. . .Primero is a great gold miner. Management knows what it is doing. The company has a really bright future. It also produces silver, though it sells most of that to Silver Wheaton." More >

Barry Allan, Mackie Research Capital (11/8/13) "Primero Mining Corp. reported strong Q3/13 results, with record production of 42 Koz Au eq beating our 35 Koz Au eq due to better gold grades (5.08 g/t versus our 4 g/t), achieved by mining high-grade pillars and a reduction in mining dilution, which resulted in cash costs of $516/oz, well below our $615/oz expectation. Adjusted earnings per share were $0.09/share with cash flow of $0.18/share, both well ahead of our $0.05/share and $0.12/share estimates, as well as consensus estimates. The company has increased production guidance yet again to 135– 140 Koz Au eq."

Brian Szeto, Stonecap Securities (11/7/13) "We view Primero Mining Corp.'s Q3/13 results positively as both the financial and production results came in better than expected; the company is likely the only company in the sector that has revised its guidance upward two consecutive quarters in a row this year. Ramp-up to 2,500 tpd is going well, and we continue to anticipate that Primero will commit to 3 Ktpd in H1/14; we maintain our Outperform rating."

Morning Coffee (11/7/13) "Shares of Primero Mining Corp. jumped after the precious metals producer reported Q3/13 results and increased 2013 production guidance. Highlights from the most recently completed quarter, ended Sept. 30, 2013, included: 1) Record production: Gold equivalent production increased by 64% over the same period last year and 2) Low cash costs and all-in sustaining costs: Cash costs dropped by 26% over the same period last year."

Michael Gray, Macquarie Capital Markets (11/6/13) "Primero Mining Corp. reported Q3/13 results. Its flagship San Dimas Au-Ag mine achieved record production of 42 Koz Au eq (Macq est. 37.5 Koz Au eq) at coproduct cash costs of $516/oz (Macq est. $483/oz). . .the company also signed a binding letter of intent with Goldcorp to acquire its 30.8% joint venture interest in the Cerro del Gallo Au-Ag-Cu development project in Mexico. . .we reiterate our Outperform recommendation; Primero is a top pick as a high-grade/high-margin producer with a core asset in Mexico."

Rob Chang, Cantor Fitzgerald (11/1/13) "Primero Mining Corp. is an undervalued gold producer with near-term growth catalysts. . .the company's recent Cerro del Gallo acquisition is expected to add an average of about 80 Koz gold annually beginning in 2016. We reiterate our Buy rating."

The Gold Report Interview with Marshall Berol (10/30/13) "We like Primero Mining Corp., which is making good progress at its San Dimas mine and Cerro del Gallo project in Mexico. It is producing cash flow, is growing and expanding and has a very accomplished, experienced management team. Despite recent questions about Mexico instituting a new tax and royalty structure, Mexico remains an attractive mining jurisdiction." More >

Jordan Roy-Byrne, The Daily Gold (10/7/13) "Primero Mining Corp. has all of the criteria we seek; it is cash flowing already, has significant capital and has multiple assets that can grow. It operates in a great jurisdiction. . .the stock has performed beautifully in relative terms as most companies have been crushed in this downturn."

Michael Gray, Macquarie Capital Markets (10/4/13) "Our broad takeaway [from the Precious Metals Summit in Beaver Creek] is that North American projects are likely easier to fund in this lower gold price environment. . .among our producing companies under coverage at the conference, Primero Mining Corp. best fits the definition. . .investments and funding will continue to focus on companies with assets in safe jurisdictions such as Canada, Mexico and the U.S. Our top producer picks at the conference [included] Primero." More >

Barry Allan, Mackie Research Capital (10/1/13) "We attended a site visit last week to Primero Mining Corp.'s San Dimas mine and the Cerro del Gallo project in Mexico. Overall we were pleased to see the progress being made on the mill ramp-up to 2,500 tpd at San Dimas as well as further optimization potential at Cerro del Gallo. . .expansion of the mill was 60% complete at the end of June, with a third ball mill now on site. . .the company is well positioned to expand the mill given tailings capacity, and 'only limited optimization' of the processing plant required."

Michael Gray, Macquarie Equity Research (10/1/13) "We visited Primero Mining Corp.'s 100%-owned San Dimas gold-silver mine and Primero's 69.2%-owned Cerro del Gallo project. . .we gained confidence that San Dimas will be expanded beyond the 2500 tpd it is designed to reach at year-end 2013. . .we were able to view long-hole mining at the Roberta and Alexa veins where stopes clearly showed bulk mining attributes of excellent ground conditions along with optimal steep vein orientations. . .the underground development costs at San Dimas are the lowest in our coverage universe. . .we reiterate our Outperform rating of Primero and have increased our target to $8.25 (was $7.25). . .the stock is one of our top picks as a defensive name."

Rob Chang, Cantor Fitzgerald (10/1/13) "After a full day of viewing mining operations, the mill, and the tailings facility, we left with the impression that not only is Primero Mining Corp.'s San Dimas on track, it has the potential to improve further. . .a big driver of the improvements is the ongoing plan to maximize the use of the long-hole mining method. . .our increased confidence in the production at San Dimas has led to the aforementioned increase in our gold grade assumptions to 4.25 g/t Au for the remaining two quarters of the year. . .we reiterate our Buy rating and are raising our target price to $7.05/share."

Morning Coffee (9/30/13) "P's mine and plant continue to operate sustainably at levels consistent with recent above-nameplate throughputs (recall mine throughput averaged 2,278 tpd and mill throughput averaged 2,216 tpd in Q2/13, versus nameplate mill capacity of 2,150 tpd). . .an updated mine plan incorporating long-hole mining is expected in October 2013."

Kwong-Mun Achong Low, Jennings Capital (9/30/13) "Mill expansion to 2,500 tpd [at Primero Mining Corp.'s San Dimas] is well underway and on course for completion toward the end of the year. . .drilling has further built out the higher-grade Alexa and Victoria veins. . .drilling at depth for the Robertita vein, central block, has also seen similar success, with highlight drill hole ROB13-287: 2.5m of 101 g/t gold and 732 g/t silver. . .San Dimas has been a reliable gold producer for centuries and looks set for growth as new discoveries drive planned increases to mill throughput and expected increases to mill feed grades."

Michael Gray, Macquarie Capital Markets (9/20/13) "Primero Mining Corp. reported bonanza-grade drill results at San Dimas. . .several notable intersections included: 18.3 g/t Au and 452 g/t Ag over 1.2m (Alexa – hole AL13-072); 134.8 g/t Au and 9,731 g/t Ag over 1.1m (Victoria – hole VIC13-258); 100.8 g/t Au and 732 g/t Ag over 2.5m (Robertita – hole ROB13-287). . .we reiterate our Outperform rating and $7.25 target for Primero; the stock is one of our top picks as a defensive name."

The Gold Report Interview with Barry Allan (9/4/13) "Primero Mining Corp.'s San Dimas mine would operate fairly well at $1,000/oz gold. . .San Dimas is largely under control and operating quite well. . .I suspect [The Royal Bank of Canada's rerating of the stock] has everything to do with the good performance of the San Dimas mine. For a company of this size, Primero has done a good job of taking an asset that initially had a low profile to come out into the public market as a standalone entity. After the IPO there were a few bumps and grinds before the mine started to live up to market expectations. It also has silver, which is sold through to Silver Wheaton Corp. Overall, Primero has done very well and ultimately rewarded shareholders." More >

Jordan Roy-Byrne, The Daily Gold (9/2/13) "Primero Mining Corp. remains setup very well (both technically and fundamentally) for the next few years."

Morning Coffee (8/14/13) "Shares of Primero Mining Corp. continued to trade higher as investors applaud the company for its solid Q2/13 results. . .Canaccord Genuity Precious Metals Analyst Rahul Paul views the continued improvement in throughput as very positive and has greater confidence in the mine's ability to expand throughput further to 2,500 tpd by early 2014; Primero remains a 2013 Canaccord Genuity Focus List pick based on an attractive production growth profile with low associated capital spending. . .thanks to a strong balance sheet and robust cash flow profile, Paul believes the company remains in a position to deliver its stated growth targets with no external financing requirements."

Morning Coffee (8/9/13) "Shares of Primero Mining Corp. were higher after the company reported excellent Q2/13 results; for the quarter adjusted earnings per share came in at $0.16 versus consensus of $0.12 and our estimates of $0.11. The variance was driven by higher gold production, which was 13% higher than estimates. . .the production beat was the result of higher-than-expected throughput and higher gold grades."

Brian Szeto, Stonecap Securities (8/9/13) "Due to stronger than expected Q2/13 production results, Primero Mining Corp. is increasing its production guidance for the year to between 125–135 Koz Au eq, which is an increase relative to the company's previous guidance of 120–130 Koz Au eq. . .ramp up from 2,150 tpd to 2,500 tpd is going well. . .the company expects to make a decision to further increase capacity to 3,000 tpd by October. . .overall, we view the Q2/13 results positively as both the financial and production results came in better than our estimates. . .our Outperform rating is maintained."

Barry Allan, Mackie Research Capital (8/9/13) "Primero Mining Corp. reported strong Q2/13 results, with production of 39.1 Koz Au eq beating our 35.3 Koz Au eq due to better gold grades. . .given the strong gold grades, the company has increased annual guidance to 125–135 Koz Au eq from 120–130 Koz Au eq, while retaining cash cost guidance of $620–640/oz. . .Primero is in a good position with a strong balance sheet consisting of $130.4M cash and $27.2M in long-term debt. The company retains more than enough cash needed to build Cerro del Gallo."

Rob Chang, Cantor Fitzgerald (8/8/13) "Primero Mining Corp. announced Q2/13 financial results that beat estimates; it also revised its 2013 guidance higher. . .adjusted earnings for the quarter came in at $0.16/share, which was higher than our estimate of $0.13/share. . .with a strong second quarter, Primero Mining continues to progress well with its optimization and expansion plans at the low-cost San Dimas mine. . .the company is well positioned operationally and has the balance sheet strength (cash balance of $130M) to weather the current gold price environment."

Michael Gray, Macquarie Capital Markets (7/29/13) "Primero Mining Corp. provided an update on its 69.2%-controlled Cerro del Gallo gold-silver-copper development project. . .the company has lowered its capital budget to $15M (from $56M) and will still be in a position to make a construction decision in early Q4/13. . .permit filing is on track for late Q4/13 or early 2014. . .we reiterate our Outperform recommendation and $7.25 target. Primero is one of our top defensive picks."

Brian Szeto, Stonecap Securities (7/29/13) "Primero Mining Corp. has provided an update for its 69%-owned Cerro del Gallo project located in Guanajuato, Mexico; the company has reduced capital spending on the project this year to $15M as a result of a weaker commodity price environment. . .despite a reduction in capital spending at the project this year, the project's timeline remains intact. In particular, the company is expected to make a production decision at Cerro del Gallo before the end of the year."

Jordan Roy-Byrne, The Daily Gold (7/14/13) "Primero Mining Corp. is struggling in the short term but we expect it to bounce back when the sector does. The long-term chart is quite bullish."

Brian Szeto, Stonecap Securities (7/9/13) "We are initiating coverage on Primero Mining Corp. with an Outperform rating; we believe the company's solid asset base in Mexico, strong treasury and growing production profile allows it to stand out relative to its peers. In addition, we expect that Primero will be active on the mergers and acquisitions front in the short and medium term as it continues to build out its development pipeline through accretive acquisitions."

Jordan Roy-Byrne, The Daily Gold (5/31/13) "Primero Mining Corp. has the financial strength ($141M in cash and ongoing cash flow) and the people to achieve its goals. . .it is a serious, growth-oriented producer."

Jordan Roy-Byrne, The Daily Gold (5/30/13) "Primero Mining Corp. has all of the criteria we seek: It has cash flowing already, has significant cash and has multiple assets that can grow. The company is trading at a reasonable valuation which, in our opinion, has upside. It operates in a great jurisdiction."

Shawn Campbell, Macquarie Capital Markets (5/21/13) "Primero Mining Corp. reported drill results for nine holes from its high-grade San Dimas Au-Ag mine. . .drilling at the Victoria vein could expand the ore body, while remaining open. . .the western extension of the Alexa vein was intercepted from the surface. . .the Victoria vein will contribute to long-hole mining tonnage."

Jordan Roy-Byrne, The Daily Gold (5/11/13) "Primero Mining Corp. is one of my favorites. . .it has held above its 2012 lows, unlike other favored producers and most companies. . .the company is going to be the next Argonaut Gold Inc., and if it can successfully develop Cerro del Gallo in 2015, it will have over 100% production growth within the next three years."

Shawn Campbell, Macquarie Capital Markets (5/10/13) "Primero Mining Corp. exceeded our expectations with adjusted EPS of $0.10 ($0.07 estimate) and on cash flow of $0.20/sh vs. our estimate of $0.14/sh. . .its balance sheet is strong and our analysis of the company indicates it remains fully funded for both the San Dimas expansion and the Cerro del Gallo development project at $1,200 Au and $24 Ag. . .we reiterate our Outperform recommendation. . .Primero is one of out top picks."

Morning Coffee (5/10/13) "Primero Mining Corp. released its Q1/13 results and announced that the Cerro Resources acquisition has been approved. . .the company's Q1/13 adjusted earnings per share of $0.10 came in above consensus estimate of $0.07. . .Q1/13 production of 27,656 oz Au eq at total cash costs of $719/oz Au eq was also above the estimate of 26,400 oz. At $721/oz Au eq. . .the beat was due to better gold grade (4.2 g/t vs. 3.9 g/t) and recoveries."

Barry Allan, Mackie Research Capital (5/9/13) "Primero Mining Corp. had a solid operating result in Q1/13. . .the company has had one of the best performing share prices in the sector, not being crushed along with senior gold producers. We continue to like Primero's prospects for improving operating performance."

Chitimukulu Musonda, CIBC World Markets (5/9/13) "Primero Mining Corp.'s San Dimas mine, operationally posted a solid quarter with production matching our estimate of 24 Koz Au and 1.4 Moz Ag. . .cash costs of $710/oz were ~6% lower than our estimate. . .throughput expansion plans at San Dimas appear to be progressing well. . .the stage is set for expansion to 2,500 tpd by Q1/14. . .the company's shares currently trade at very attractive multiples and we maintain our Sector Outperform rating."

Rob Chang, Cantor Fitzgerald (5/8/13) "Primero Mining Corp. beat expectations this morning with Q1/13 adjusted earnings of $0.10/share versus our and Street expectations of $0.05/share and $0.06/share, respectively. We are encouraged by management's capability to expand production to record levels and have a positive view on the company's plans to increase production to 2,500 tpd (from the new current 2,150 tpd) by the end of the year. . .record production levels led to the beat as mill throughput capacity of 2,150 tpd was reached during the quarter."

Rob Chang, Cantor Fitzgerald (5/7/13) "Primero Mining Corp. is an undervalued gold producer with near-term growth catalysts. It is currently in the process of expanding production from 2 Ktpd to 2.5 Ktpd, and its recent acquisition of Cerro Del Gallo is expected to add about 80 Koz gold annually on average, beginning in 2015; we reiterate our Buy rating."

Jordan Roy-Byrne, The Daily Gold (5/3/13) "Primero Mining Corp. has had success, multiple mines and will end up with more than 100M shares. . .the company will have no problem increasing production at San Dimas and should be well funded when the time comes to develop Cerro del Gallo. This is an example of growth while the share structure remains intact. . .Primero has an extremely impressive, world-class board. . .another thing that attracted us to the company was the 40%+ ownership from GoldCorp Inc. . .Primero is a clear leader in the space."

Shawn Campbell, Macquarie Capital Markets (4/23/13) "Primero Mining Corp. reached the annual threshold of 3.5 Moz of silver for the Silver Wheaton streaming contract and will begin selling 50% of the silver it produces at spot prices. . .the company has been the top-performing gold producer equity in our coverage list year to date. . .Primero's San Dimas mine, with head grades in 2012 of 3.9 g/t Au and 234 g/t Ag, is a high-grade/high-margin asset in a safe jurisdiction with strong management—we expect the stock to continue to outperform in this environment."

ValuEngine (4/18/13) "ValuEngine has issued a Buy recommendation for Primero Mining Corp. . .we feel that the company has the probability to outperform average market performance for the next year. It exhibits attractive momentum, risk and P/E ratio."

Morning Coffee (3/27/13) "Canaccord gave a bullish rating on Primero Mining Corp. following the release of year-end 2012 reserves, which increased 31% year-on-year or 13% when compared to the mid-year reserve update. . .the favorable rating is based on the company's growth profile and the upside potential from improved grades from lower dilution, the impact of further expansion to 3 Ktpd and the accretion on the Cerro Resources NL deal."

The Gold Report Interview with Jordan Roy-Byrne (3/25/13) "Primero Mining Corp. is a company that I really like. The stock had a huge move in 2012 because of a positive resolution to its tax status. The stock peaked at about $8/share and it has digested that huge run. It bottomed just above $5/share. I forecast that it will likely trade in a range from $6–8/share during the next four to five months. Fundamentally, Primero has very strong cash flow from its San Dimas mine in Mexico, which is a world-class asset. The company also has more than $100M in cash. Primero has a strong management team and a world-class board of directors. The roster of people involved with this company is simply stellar. They have done this before, so Primero is a good model for what I'm looking for.

"The company has already been a huge winner for us because we got in at less than $3/share. Primero has the capital to continue to grow the San Dimas asset, but it also made an acquisition last year and is hoping to put that asset into production in 2015. This is a company that's very strong financially. It's strong on the charts. It's not falling apart during this downturn. It has the financial strength to grow its production." More >

Jordan Roy-Byrne, The Daily Gold (3/11/13) "Primero Mining Corp. has all of the criteria we seek. It has cash flowing already, has significant cash and has multiple assets that can grow. It is trading at a reasonable valuation which, in our opinion, has upside. . .with over $130M in cash, a strong stock price and a mandate of 400-500 Koz Au production, look for the company to make another acquisition. . .this is my top warrant choice long-term and I have started to build a position in recent weeks."

Brian Quast, BMO Capital Markets (3/1/13) "Yesterday, we were given the opportunity to tour Primero Mining Corp.'s San Dimas mine. . .in general, we were impressed by the operations, reaffirming the Outperform rating."

Shawn Campbell, Macquarie Capital Markets (2/22/13) "We like Primero Mining Corp.'s San Dimas for its ability to generate strong cash flows. . .its advantage at San Dimas is the ability to discover high-grade veins near development infrastructure and quickly place such discoveries into the mine plan. . .we reiterate our Outperform recommendation. . .the company is a defensive name as a low cash-cost producer with 2013 guidance of 120–130 Koz Au equ at $620–640/oz co-product basis and $280–300/oz byproduct basis."

Rob Chang, Cantor Fitzgerald (2/22/13) "Primero Mining Corp.'s year-over-year results continue to improve. . .the company reported record revenues of $182.9M in 2012, which was higher than 2011 revenues of $156.5M. . .it also generated record operating cash flows of $88.8M, leading to year-end cash position of $139.2M. . .Primero also managed to moderately lower costs as total cash costs for 2012 were $636/oz Au, compared to $640/oz Au in 2011. . .we reiterate our Buy recommendation."

Barry Allan, Mackie Research Capital (2/22/13) "Primero Mining Corp.'s recently announced acquisition of Cerro Resources NL is expected to transform the company into a Mexican-based multi-asset producer, with annualized production growth of 24% over the next four years to 260 Koz Au eq by 2016. . .given the company's cheap valuation, generation of solid levels of cash flow, throughput expansion, high historical conversion rate of resources to reserves, and the addition of the Cerro Del Gallo project, we reiterate our Buy recommendation."

Richard Gray, Cormark Securities (2/22/13) "Primero Mining Corp. ended the year with $139M cash, leaving the company well positioned to internally fund its growth that should see production more than double from 2012 to 2016. . .with milestones continually being hit, we believe the shares should trade higher as the gold market rebounds and the valuation discount on the company relative to its midtier peers narrows. . .we are maintaining our Buy rating."

Steven Butler, Canaccord Genuity (2/21/13) "We reiterate our Buy rating on Primero Mining Corp. following the release of Q4/12 financial results. . .our Buy rating is based on growth profile and upside potential from increased long-hole stoping mining, which will decrease dilution and reduce operating costs. . .the company prereleased Q4/12 production of 26,310 oz Au eq and cash costs of $677/oz Au eq. . .Primero's optimization program has been successful at reducing process variation, increasing throughput and improving mining dilution."

Andrew Mikitchook, GMP Securities (2/21/13) "Primero Mining Corp. released full Q4/12 and FY/12 financial results [that] were roughly in line with expectations. . .[we] believe costs will continue to decline as San Dimas ramps up to 2,500 tpd. . .we continue to see upside to current resources. . .with long-life high-grade San Dimas now unencumbered, significantly improved free cash flow and the company's strong, experienced management team, we believe Primero is positioned for success and likely to grow and join the ranks of larger intermediate producers longer-term."

Shawn Campbell, Macquarie Capital Markets (2/5/13) "The silver lining to investors is that the effects of Primero Mining Corp.'s Silver Wheaton silver streaming contract are predictable and represent an investment opportunity, in our view. The silver contract timing means higher reported cash costs every Q4. . .we reiterate our Outperform recommendation and $9 target price. . .our comprehensive understanding of the silver stream contract allows us to show that all else being equal, an investor can expect higher cash costs and lower production on a gold equivalent basis in Q4 compared to Q3."

Shawn Campbell, Macquarie Capital Markets (2/1/13) "In December 2012, Primero Mining Corp. announced a friendly deal to acquire Cerro Resources NL. We believe the transaction will be approved. . .the company, with a 2013 budget of $50–60M, sees potential for Cerro del Gallo to produce 94.6 oz/year Au eq. . .we reiterate our Outperform recommendation of Primero and target price of $9."

Shawn Campbell, Macquarie Capital Markets (1/29/13) "On Jan. 21, 2013 we visited Primero Mining Corp.'s 100%-owned San Dimas gold-silver mine. . .long-hole stoping is targeted to contribute 30% of mill feed by the end of 2013 and would reduce costs and dilution. . .the mill is being expanded from 2,100 tpd to 2,500 tpd. . .we reiterate our Outperform recommendation of Primero and have increased our target price to $9 (was $8.75)."

Richard Gray, Cormark Securities (1/24/13) "Primero Mining Corp.'s 2013 guidance of 120–130 Koz Au eq at $620–640/oz compares well with our estimates of 127 Koz at $588/oz. . .longer-term guidance is for 150–160 Koz in 2014 and over 250 Koz beyond 2016. . .the company is putting together a string of solid quarters that will further increase investor confidence. . .its execution track record, production growth, attractive multiples and solid balance sheet shine a bright light on the company as an emerging midtier gold producer."

Steven Butler, Canaccord Genuity (1/23/13) "We reiterate our Buy rating on Primero Mining Corp. following the release of Q4/12 operating results, 2013 guidance and positive results from the long-hole stoping trial at San Dimas. . .it reported Q4/12 production of 26.3 Koz Au eq at $677/oz versus our estimate of 27,800 Koz at $680/oz. . .2013 production guidance calls for 120–130 Koz Au eq at $620–640/oz versus our estimate of 126 Koz at $632/oz. . .preliminary conclusions of the trial suggest an overall reduction in dilution from 58% to 40% and potential 15% mining cost reduction."

Ovais Habib, Scotia Capital (1/23/13) "Primero Mining Corp. reported solid operating results for Q4/12 and the full year. . .Au production for the year came in at 111.13 Koz Au eq, beating our estimate of 110.7 Koz. . .included was 26.3 Koz produced in Q4/12, an increase of 14% over Q4/11. . .2013 guidance of 120–130 Koz Au eq with cash costs of $620–640/oz versus our estimate of 134.7 Koz at $579/oz. . .we expect Au eq production in 2014 to ramp up to ~168 Koz. . .estimate is for long-hole mining to reduce costs ~15%. . .we rate the company Sector Outperform."

Rob Chang, Cantor Fitzgerald (1/23/13) "We are maintaining our Buy recommendation on Primero Mining Corp. and increasing our target price. . .Q4/12 Au and Ag production beat our estimate by 5.6% and 3.1% respectively. . .Q4/12 cash costs were 4.2% lower than forecast and 5.1% lower on a by-product basis. . .2013 production guidance is roughly in-line with estimate but in its capex guidance, the company's sustaining capital component of $11.6M is notably lower than our more conservative estimate of $20M."

Steven Butler, Canaccord Genuity (1/17/13) "We have added Primero Mining Corp. to our Canadian 2013 Focus List based on valuation, growing production profile, reserve outlook and the accretion on the Cerro Resources acquisition. . .we estimate that the company can fully fund the development of Cerro Del Gallo through internal cash flows, with initial startup estimated for 2015."

Rob Chang, Cantor Fitzgerald (1/3/13) "We are maintaining our Buy recommendation on Primero Mining Corp."

Ovais Habib, Scotia Capital (12/19/12) "We have initiated coverage on the common shares of Primero Mining Corp. . .the company has a solid production base at San Dimas, located in Sinaloa, Mexico. We model Au eq production of 110,600 oz at $641/oz in 2012, ramping up to ~168 Koz in 2014 with the ongoing expansion and optimization of the mine and mill from current throughput rates of ~1,950 tpd to 2,500 tpd expected in Q1/14."

Rob Chang, Cantor Fitzgerald (12/17/12) "Primero Mining Corp. has entered into a definitive agreement to acquire Cerro Resources NL in an all-stock deal valued at approximately $119M. . .the addition of the feasibility-stage, 69%-ownership stake in the Cerro del Gallo project adds approximately 1 Moz gold equivalent in the 2P category and 1.3 Moz gold equivalent in the Measured and Indicated category. . .this acquisition notably increases Primero's resource size and production profile. We maintain our Buy rating and $8.95 target price."

Michael Gray, Macquarie Capital Markets (12/14/12) "Primero Mining Corp. announced a friendly deal with Cerro Resources NL. . .Cerro's primary asset is its 69% interest in the Cerro del Gallo project, which contains 1 Moz Au eq in reserves and 1.3 Moz Au eq in Measured and Indicated resources. . .the acquisition diversifies Primero into a two-asset company in Mexico. . .we reiterate our Outperform recommendation."

Richard Gray, Cormark Securities (12/14/12) "Primero Mining Corp. is acquiring Cerro Resources NL in an all-share valued at $114M. . .we like this deal for the company as it adds a simple, undervalued development-stage project in Mexico, a region where it has operating experience and expertise. . .this is a low-risk first step for the company as it looks to grow to midtier status through acquisition. . .we believe the shares could trade higher as the Cerro del Gallo project is digested. . .we are maintaining our Buy rating."

Barry Allan, Mackie Research Capital (12/14/12) "Primero Mining Corp. has entered into an agreement to acquire Cerro Resources NL, an exploration company whose primary asset is the feasibility-stage Cerro Del Gallo project. . .the company is getting a good deal on a feasibility-stage project. . .the acquisition of Cerro Resources will transform Primero into a Mexican-based multi-asset producer, with annualized production growth of 24% over the next four years to 260 Koz by 2016."

Steven Butler, Canaccord Genuity (12/13/12) "Primero Mining Corp. has announced a definitive agreement to acquire all outstanding shares of Cerro Resources NL in an all-share transaction valued at $119M. . .following the close of the transaction, the company will own 69.2% of the Cerro del Gallo project with Goldcorp Inc. holding the remaining 30.8%. . .the acquisition of Cerro del Gallo is expected to be very accretive to reserves, production and valuation on a per share basis."

Rob Chang, Cantor Fitzgerald (11/15/12) "We are initiating coverage of Primero Mining Corp. with a Buy recommendation and an $8.95/share target price. We believe that the company is an undervalued gold producer as it plans to increase production to 2,500 tpd, or by 28%, by Q1/14. . .since its initial public offering in August 2010, Primero has consistently delivered growth."

Richard Gray, Cormark Securities (11/9/12) "As a prerequisite to Primero Mining Corp.'s San Dimas mine and mill expansion, an optimization program was initiated in Q3/12 to expand throughput to the current milling capacity of 2,150 tpd exclusively through productivity improvements. Since its initiation, this program has successfully increased average throughput rates from 1,915 tpd in Q2/12 to 1,950 tpd in Q3/12 and 2,180 tpd in October, an encouraging sign for Q4/12 production from the mine. . .we are maintaining our Buy rating and CA$10 target price."

Barry Allan, Mackie Research Capital (11/9/12) "We continue to anticipate a better grade profile for Primero Mining Corp. in Q4/12 and into 2013, allowing quarterly production of ~35 Koz. We see Q3/12 as an unfortunate speed bump on an otherwise good 2012 path. . .cost performance was actually good. . .on a dollar per tonne [basis], processed operating costs continued to be flat QOQ. . .post Q3/12, the company realized a huge win on income tax with a Mexican ruling that taxes may be paid based on realized silver prices—the impact was the disappearance of a $56M contingent liability. . .we maintain our Buy recommendation."

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

Primero Mining Corp. Content



Back to Top