Primero Mining Corp.

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.

Expert Comments:

Mike Parkin, Desjardins Securities (1/21/15)
"After market close yesterday, Primero Mining Corp. announced the issuance of US$75M of convertible unsecured debentures at an interest rate of 5.75% per annum on a bought-deal basis, with an option for the underwriters to expand the offering by 15%. . .the company stated that it intends to use the funds for a variety of purposes, including development of the underground at San Dimas (US$15.2M budgeted in 2015), expansion of the mill at San Dimas to 3 Ktpd from the current nameplate capacity of 2.5 Ktpd (US$15.4M budgeted in 2015) and development of the underground at the Black Fox complex (US$13.4M budgeted in 2015), and to repay the US$27.9M outstanding (as of Q3/14) on its revolving credit facility, which bears interest at a floating rate but was around 5% in H2/14."

Brian Szeto, PI Financial (1/20/15)
"Primero Mining Corp. announced its Q4/14 production results and 2015 guidance before market open on January 20, 2015. . .the company produced 56.1 Koz Au and 1.7 Moz Ag in Q4/14, which was in line with our estimates of 55 Koz Au and 1.5 Moz Ag. . .similar to last year, all eyes will continue to focus on Black Fox, where we highlight that the company expects it to generate some free cash flow this year with all-in sustaining costs cost of US$1,075–1,125/oz."

Mike Parkin, Desjardins Securities (1/20/15)
"This morning before market open, Primero Mining Corp. announced its Q4/14 production results and 2015 guidance, which we view to be slightly positive overall. . .the outperformance at San Dimas in Q4/14, strong operational outlook for 2015 and 2016, and expectation for reserves to be more than replaced will outweigh the underperformance at the smaller Black Fox mine. . .the San Dimas expansion to 3,000 tpd could be completed sooner than the current mid-2016 target. . .the ramp-up of the Black Fox underground mine to 1,000 tpd is expected to be achieved by mid-2015."

Mike Parkin, Desjardins Securities (1/7/15)
"We believe that Primero Mining Corp.'s Black Fox turnaround will eventually prove successful. . .reflected in our 26% year-over-year higher milled-grade assumption at the mine and increased mining rates from underground ore, which we predict will more than double in 2015. . .we expect cash costs to decline 4.9% year-over-year based on a combination of factors, including the results of optimization efforts at Black Fox, a larger production base, and slightly lower operating costs. . .we see Primero generating positive free cash flow this year of $57.9M. . .and able to fully pay off its debt and grow its cash position further in 2016."

"A number of intermediates are quite acquisitive. One of the names we expect to lead future consolidation of the sector is Primero Mining Corp., a name that we cover that has been acquisitive. . .Primero is committed to moving the Black Fox project forward and there are very good indications that the mineralized structures that host gold at Black Fox continue at depth. Brian Quast, the intermediate analyst here at BMO, would point out that the real driver for Primero at this point is very much San Dimas and the growth opportunity there." read more >

Desjardins Capital Markets (12/15/14)
"Overall, Primero Mining Corp.'s Black Fox has proved more challenging than originally thought, but the exploration work at depth continues to support a brighter future for the mine. For 2015, Primero will be focused on bringing more attention to San Dimas, the flagship mine, which is performing very well, and will work to communicate that Black Fox is a good asset in transition."

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