Timmins Gold Corp.

Timmins Gold Corp is positioned for future 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 is developing its two economically robust growth projects, the Ana Paula gold project in Guerrero and the Caballo Blanco gold project in Veracruz.

The Company’s focus is to structure its operations and balance sheet to protect the company as we advance our development projects. The mine plan has been modified to maximize cash flow while maintaining flexibility to respond to changing market conditions. We have implemented many cost savings efforts including the reduction of workforce, primarily at the San Francisco Mine along with other mine site, operations and corporate G&A savings.

Recent acquisition of the El Sauzal processing plant and sundry equipment for the Ana Paula gold project will yield major savings in capex and has immediately and positively impacted the economics at Ana Paula.

Given the higher grade and capital efficiency of Ana Paula coupled with in-house Mexican expertise the corporation is highly confident much value will be added to the benefit of our shareholders.

Expert Comments:

Philip Ker, PI Financial (11/13/15)
"Timmins Gold Corp. announced positive infill and delineation drill results from its now flagship Ana Paula project. The drill efforts were part of a 2,000m drill program to increase confidence in the project's block model and twin drill holes for collection of metallurgical evaluation for incorporation in the upcoming feasibility study expected mid-2016."

Derek Macpherson, M Partners (10/5/15)
"Importantly, after a challenging H1/15, we expect Timmins Gold Corp.'s production to increase 11% in Q3/15 and cash costs to decrease 14% quarter over quarter, suggesting operations are returning to steady state. As well, we anticipate the company will have $22M in cash at Q3/15E."

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 >

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
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