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Timmins Gold Corp T.TMM

"Timmins Gold Corp is engaged in acquiring, exploring, developing and operating mineral resource properties in Mexico. It owns and operates the San Francisco open pit and Ana Paula gold project in Guerrero and the Caballo Blanco gold project in Veracruz."


TSX:TMM - Post by User

Post by ryehigh2014on Jan 25, 2014 5:05am
267 Views
Post# 22133335

So Debt will not be repayed

So Debt will not be repayedhttps://www.marketwired.com/press-release/timmins-gold-completes-amendment-credit-facility-with-sprott-resource-lending-partnership-tsx-tmm-1872412.htm

Now to rebutt some of the other postings. it would make sense for Timmins to keep an efficient mix of debt and equity composition. M&M - simple finance. 

I expected Timmins to amend the loan because capital is simply NOT available for junior miners. Paying off a $500k signing bonus & 1.8mil a year in interest makes more sense then paying off the entire loan, once again for obvious reasons.

Short term there will be pain for shareholders. Long term I smell exploration, a minor acquisition, or even conservation as Honestabe pointed out which seems like the most rational explanation on this forum.

HEDGING would be the most FOOLISH step Timmins can take for obvious reasons. If you would like me to explain i will but I trust everyone on this forum is finance literate. If timmins decides to hedge I will dump shares and move to a better miner. 

Upon Analysis one cannot make a conclusion about the financial strength of Timmins yet. Some of the valuations which I have seen are simply incorrect on this forum. Timmins ALL-IN cash costs are 1100. There cash-costs are 850. Please do not confuse these 2 figures as the all-in costs are the mining benchmark now.
- as I pointed out before timmins has a tax liability due 
- mexican tax effects have not been realized entirely
- the grade used in future reports will be something to watch very closely.

Finally firecracker I do not understand where you see $2mil cash growth a week. This was not the case last quarter and certainly will not be the case this quarter. 

I predict a break-even final quarter. If timmins does manage to raise its cash reserves through operations and walk away with decent growth I will be impressed. Its a waiting game.



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