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:

"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. "

Derek Macpherson, M Partners (7/31/15)
"Timmins Gold Corp. released Q2/15 operating and financial results. . .and revised its 2015 guidance to 100–110 Koz gold (was 115–125 Koz). . .this updated guidance does not include the potential underground production from the higher-grade lens at San Francisco; however, based on the information provided we expect underground production to start in Q4/15. . .we continue to view Timmins as an attractive investment and believe that as the company advances Caballo Blanco and Ana Paul, its stock should close the valuation gap with peers."

Philip Ker, PI Financial (7/31/15)
"After a disappointing H1/15, Timmins Gold Corp.'s management expects to have a more back-end loaded production rate from San Francisco. Amendments to the mine plan will occur to target high-grade ore zones that are easily accessible requiring less waste stripping. In the near term, the operation should benefit from stacking ore onto fresh leach pads, resulting in higher recovery levels and faster leach rates. The reduced guidance by management coupled with the recent sell-off of the company's shares could lend a good buying opportunity should management succeed in its operations and development projects."

Joseph Fazzini, Dundee Capital Markets (7/30/15)
"Timmins Gold Corp. announced Q2/15 operational and financial results. . .we maintain our Neutral rating. . .our target price continues to reflect the last published mine plan and now excludes production from Ana Paula due to a challenging financing environment. Management has suggested plans to recast its San Francisco mine plan in the near term, and depending on the changes, it could lead to improvement in our estimates. . .management indicated they will now target the lowest strip portion of the San Francisco pit to maximize near-term cash flow."

More Expert Comments

Experts Commenting on This Company

Joseph Fazzini, Vice President, Senior Analyst – Dundee Capital Markets
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

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