GLOBE ARTICLE. Looking Bleak at the moment. Globe says Primero Mining cut to "sell" from "hold"
Primero Mining Corp (C:P)
Shares Issued 191,834,973
Last Close 5/16/2017 $0.68
Wednesday May 17 2017 - In the News
The Globe and Mail reports in its Wednesday, May 17, edition that Desjardins analyst Michael Parkin expects Primero Mining to generate negative free cash flow over the next two years, downgrading it to "sell" from "hold."
The Globe's David Leeder writes that Mr. Parkin says, "We will be more positive on Primero when we see progress on the financing overhang, clarity on the San Dimas tax dispute and/or the asset base generating cash." He cut his target to 40 cents from 75 cents. Mr. Parkin says in a note: "Despite expectations for a weak quarter with the strike at San Dimas occurring over about half of the quarter, the production and operating results still missed consensus and our estimates.
In the quarter, the positive trend at Black Fox reversed, with all-in sustaining cost of $1,233 (U.S.) per ounce after three consecutive quarters of decline and 4Q16 AISC (WGC) of $1,101 per ounce. What is more of a concern than one of its two operations producing at an AISC (WGC) roughly in line with spot prices is that we expect AISC to trend higher at Black Fox after stockpiles are depleted. ... The company will need to find some serious exploration success at the property, and soon, to avoid this outcome."