Timmins Gold Corp.

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

Expert Comments:

Philip Ker, PI Financial (3/11/15)
"For 2014, Timmins Gold Corp. managed to meet annual guidance by selling ~121 Koz Au eq. . .more recently, the company made a high-grade discovery of parallel veins in the south side of the San Francisco pit wall. Management is investigating its economic potential, but it could provide a higher-grade source of feed to the operation's crushing circuit."

Derek Macpherson, M Partners (3/11/15)
"Our view regarding the long-term growth potential for Timmins Gold Corp. remains intact. We continue to believe the company could produce 347 Koz in 2019 at total cash costs of $658/oz once Caballo Blanco and Ana Paula are ramped up. . .we are maintaining our Buy recommendation and our 12-month target price of CA$2.40/share."

Derek Macpherson, M Partners (3/10/15)
"Timmins Gold Corp. reported Q4/14 and full-year 2014 financials, which missed our and consensus estimates; however, this miss appears to be as a result of above average rainfalls in Q3/14, which impacted operations in Q4/14. . .should the company continue to underperform peers, we would view it as a buying opportunity, not only because of the apparent one-time nature of the Q4/14 miss, but also because of Timmins’ growth potential. Assuming the Newstrike acquisition is completed, we model Timmins producing 347 Koz in 2019 at total cash cost of $658/oz, once Caballo Blanco and Ana Paula are ramped up."

Canadian Mining Journal (3/10/15)
"Timmins Gold Corp. can't help but be pleased with a year that met guidance figures both on the number of ounces produced and the cash costs per ounce. In 2014 the company sold 121,441 oz gold (up 2.5%) and 85,252 oz silver (up 24.4%). . .drilling directly below the San Francisco pit identified multiple high-grade veins sub-parallel to the pit wall, extending along strike and open down dip below the pit and Timmins Gold's regional exploration program was successful in confirming areas for high-priority follow-up drilling."

Joseph Fazzini, Dundee Capital Markets (3/9/15)
"With the Caballo Blanco acquisition closing just prior to year-end, we expect Timmins Gold Corp. to end 2014 with $32M of cash. Including the $10M private placement to Sentry and Adolf Lundin estate completed in Q1/15, the company's balance sheet continues to strengthen; this cash has been earmarked for an optimization study and subsequent development of Caballo Blanco."

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

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

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Investing Highlights
Direct leverage to gold with good cash to debt ratio
Strong growth profile - production growing to over 220,000 oz gold/yr
Results driven - Profitable since first day of production
Timmins Gold Corp. Content