Timmins Gold Corp T.TMM

So Debt will not be repayed

[ryehigh2014]

https://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.

[firecracker74]

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[firecracker74]

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[HonestAbe]

The debt is not being paid paid off immediately.  Timmins could have done an equity issue numerous times during the past two years to pay off the loan and at much higher sp too.  I think they are in bed with Sprott and this is their way of giving them a sweetheart deal by issuing those free bonus shares or options for a perpetual extension of the loan several times now.  Really

[bob4977]

Abe, I am sure if TMM knew that gold was going down to $1200 they would have issued shares at close to $3 to pay off the loan. The problem was that they assumed that gold was going to stay above $1530. Their plan was to have the loan paid off by July 2013. We all know what happened to the price of gold. In order to figure out the logic of a particular move you have to look at the circumstances

[HonestAbe]

Bob, so what was their excuse way back in mid-2012 for not issuing shares and wiping out the debt completely right there and then?  They knew in all likelihood that they end up paying extra $540K in bonus shares plus paying 8% annual interest.  Gold was around $1600 and the sp around $2.  Simple matter of issuing 9M shares at $2 would have saved at least $2M in known fees and

[firecracker74]

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[pdcon1]

seems like a bit of hindsight here , time to move on . Most were expecting a drop in gold price monday but the opposite happened . since chinese new year is upon us.  Were due for a breakout .

[firecracker74]

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