The Energy Report - Timmins Gold Corp. TSX.V:TMM

>About The Energy Report/Streetwise

>Legal

>Site Index

Timmins Gold Corp.

TICKER: TSX.V:TMM

DESCRIPTION: Timmins Gold Corp. is strategically positioned to become a gold production and development company. Focused in Mexico, the company has formulated a development plan to take its wholly owned San Francisco Gold Mine in Sonora, Mexico into production in 2009. Timmins Gold's portfolio consists of four other gold properties. Its goal is to utilize future cash flow to expand existing reserves and lifespan at the San Francisco Mine, explore its other properties and grow the company through strategic acquisitions. The combination of production and advanced exploration positions Timmins Gold for future growth and increased shareholder value.

Click here to view Timmins Gold’s Fact Sheet.
Click here to view Timmins Gold’s Corporate Presentation.
Listen now. Korelin Economics Report - Bruce Bragagnolo, CEO of Timmins Gold, provides Al with an update on the company (10/9/09)
Listen now.Timmins Gold President and CEO, Bruce Bragagnolo, tells listeners about gold production in Mexico. (2/09/10)

WEBSITE: http://www.timminsgold.com

The information below is based on the most recent information we have received from analysts and the companies participating in The Gold Report. We encourage you to visit the company's web site for updates.

"I've basically been with Timmins Gold Corp. since they were doing the seed financing. They're just putting a mine into operation in Mexico, where they're going to produce between 80,000 and 100,000 ounces at just over $400 an ounce. Right now they have only about 600,000 ounces there, so it's a mine life of only about five years. However, the exploration potential there is quite significant, and I really can see that mine operating probably three times longer.

In addition, Timmins Gold also has some other excellent potential exploration properties in Mexico. So I like this company a lot; I like the management a lot. A very good Mexican contingent, including the president, gives them a lot of help strategically in the country."
- The Gold Report Interview with Ian Gordon (02/22/10)

"I believe the chart for Timmins Gold Corp. is a positive chart, with a broad uptrend and rising 200-day moving average (MA). Nice bull hammer in Timmins last Friday, which has strong underlying support above its 200-day MA. If gold breaks out upside from its current wedge pattern Timmins should take off with it."
- The Gold Report Interview with Clive Maund (02/17/10)

"Timmins Gold rallied after it released an update on the operations at its San Francisco mine in Sonora, Mexico. Commercial production is expected to be achieved in Q2/10. Timmins is also expecting to issue a new resource estimate and mine plan in Q2/10. For 2010, the company is projecting production of 80,100 ounces of gold with sales of 68,700 ounces of gold, compared with Canaccord Adams' forecast for production and sales of 73,700 ounces of gold in 2010.

This updated resource estimate, as well as exploration, is expected to be a significant driver for Timmins. The company currently has roughly a five-year mine life at San Francisco. Canaccord Adams Mining Analyst Nicholas Campbell believes that as the company moves from development to production and establishes positive cash flow it should undergo a revaluation in the market. Timmins is currently trading at 3.7x 2010E CFPS versus an average multiple of 8.7x 2010E CFPS for junior gold producers. As Timmins ramps up and achieves commercial production at San Francisco, Campbell believes the valuation gap should start to narrow. Additionally, the San Francisco project has a mine life of only five years. In order to achieve a valuation in line with the junior producer average, Campbell thinks the company will need to demonstrate an 8- to 10-year mine life. He sees potential for this to be achieved through a combination of near pit reserve expansions and development of satellite deposits.

Finally, given the deep discount Timmins trades at on a Price/NAV basis compared with other junior gold producers, Campbell expects Timmins to attract attention from potential suitors."
- Morning Coffee, Canaccord Capital (02/16/10)

"Vancouver-based Timmins Gold Corp. . .is on target to produce up to 80,000 gold ounces this year and 100,000 ounces in 2011. With the pouring of its first gold bars in December at its 100%-owned San Francisco gold mine in Sonora State, it became the latest of only several 'primary' gold producers (as opposed to the mining of gold on a small-scale as a by-product of silver mining) in Mexico.

. . .The latest expansion-minded gold producer to decide to flex its muscles in the mining marketplace is Timmins Gold—which has the corporate objective of significantly increasing its output over the next couple of years. Having just reached the all-important milestone of achieving production status last month, it is already looking to acquire new gold assets. . ."
- Marc Davis, BNW News (01/20/10)

"Another one I'm looking to move up in the model this year is Timmins Gold Corp. (TSX.V:TMM). They just did their first pour at the San Francisco Gold Mine in Sonora. I'm going down to see the mine in operation in late January. I think they're behind schedule and somewhat over budget, but $1100 gold pretty much solves those issues. Timmins also has some very interesting exploration properties through Mexico. So I look for this to be a very attractive growth story as they get San Francisco into production and have the cash flow to develop some of these other properties."
- The Gold Report Interview with Trey Wasser (Pt. II) (01/11/10)

PRINT THIS PAGE EMAIL THIS PAGE