Timmins Gold Corp.

Timmins Gold Corp is positioned for continuous growth as a gold production and development company in Mexico. The Company owns and operates the San Francisco open pit, heap leach gold mine in Sonora and recently acquired the Caballo Blanco gold project in Veracruz. Timmins Gold has consistently drilled off new reserves at the San Francisco mine.

Timmins Gold also recently announced a proposed combination with Newstrike Capital (to be closed imminently) and its top tier Ana Paula gold project. When the two projects are operational, Timmins’ production is projected at 320,000 ounces of gold per year at all-in sustaining costs of approximately $777 per ounce.

A combination of production growth, positive cash flow and exploration success positions Timmins Gold to continue to deliver shareholder value.

Expert Comments:

Philip Ker, PI Financial (9/25/15)
"On Sept. 18, Timmins Gold Corp. announced a positive acquisition of the 6 Ktpd El Sauzal processing plant from Goldcorp for an attractive price of $8M. The plant acquisition results in an expected capex reduction of $40–60M and generates a more favorable project NPV with mitigated financing risk."

Derek Macpherson, M Partners (9/21/15)
"Timmins Gold Corp. announced the acquisition of the El Sauzal process plant in Mexico. The acquisition includes a mill and other infrastructure for the Ana Paula project. As a result of the acquisition, capital costs are expected to decrease by $40–60M. . .we are maintaining our Buy recommendation and our 12-month target price to CA$1.50/share."

Sam Crittenden, RBC Capital Markets (9/21/15)
"Timmins Gold Corp.'s CA$8M purchase of plant equipment from Goldcorp for the Ana Paula project makes sense, with estimated capex savings of $40–60M and it is funded through shares. . .in conjunction with the deal, Goldcorp will invest CA$6M in a private placement of 20M units at CA$0.30/unit."

"One company I really like is Timmins Gold Corp. The company has been punished since the beginning of the year for the Caballo Blanco and Newstrike Capital Inc. acquisitions. The stock traded in 2012 above $3 and now it is at $0.36, but I think it is wise to buy gold assets when prices are cheap. If gold reaches $1,500/oz or higher, those projects are going to heat up again. The management team has proven to be good operators. The same team built the producing San Francisco mine on time and on budget. I saw the numbers from Q2/15 and I think the company could eventually get to $13–15M in operating cash flows if gold averages $1,250/oz per annum. Timmins has a lot of leverage if the market recovers. At $1,350–1,500/oz gold, the company could easily fund Ana Paula and/or Caballo Blanco, and be in a good position for the next bull market. . .I'm confident that CEO Bruce Bragagnolo will see the company through the tough times. I think we will see higher gold prices in the next 12–18 months. My price target on Timmins is $1.40." read more >

"Timmins Gold Corp. just made two acquisitions in Mexico over the last eight months. I think the market is overly concerned over whether the company has the capability to bring the two gold projects into production in the foreseeable future. But Timmins, with its existing San Francisco mine in Mexico, financed and put this mine into production in the last down cycle in 2008 and 2009, so management has proven it knows how to execute. The company has US$40M in net working capital and can sequence the development of the two new projects to manage the capital requirements. It is producing around 120 Koz annually. It reduced guidance a little bit, but the underlying asset portfolio has the potential to become a 300 Koz producer. The market cap in U.S. dollars is down to $100M, which I think is ridiculously cheap. Timmins looks very undervalued, in my opinion." read more >

Carsten Ringler, Ringler Research (8/3/15)
"We like Timmins Gold Corp.'s high resource base of approximately 6.4 Moz Au eq and the medium to long-term production growth potential in the next few years. The company currently has a very low market valuation and offers a high leverage in a rising precious metal prices environment. "

More Expert Comments

Experts Following This Company

Sam Crittenden, Research Analyst – RBC Capital Markets
Joseph Fazzini, Vice President, Senior Analyst
Ovais Habib, Analyst – Scotia Capital
Andrew Kaip, Analyst – BMO Capital Markets
Philip Ker, Mining Analyst – PI Financial
Henk Krasenberg, Chairman – European Gold Centre
Thibaut Lepouttre, Editor Caesars Report
Derek Macpherson, Analyst – M Partners
Stuart McDougall, VP Research Analyst – Jennings Capital
Björn Paffrath, Director – Stabilitas-Fonds
Carsten Ringler, Founder – Ringler Research
Florian Siegfried, Senior Portfolio Manager – AgaNola
Jay Taylor, Author Gold, Energy & Tech Stocks
Olivier Tielens, Mining and Metals Investment Advisor

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