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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

Bullboard Posts
Post by Capitalist_Pigon Mar 19, 2012 5:01pm
524 Views
Post# 19691691

Timmins vs Argonaught

Timmins vs Argonaught

It makes no sense for Argonaught to be valued at $1 Billion, and for Timmins to be valued at nearly 1/3rd!

I do not see how there can be so much difference in the two companies which receive the same coverage.

Timmins has been slated in the past for being low grade ... But wait ... AR's main asset is almost half the grade of San Francisco!

Timmins has been slated for not having enough resource .. AR has more (approximately double) ... However, half of AR's are locked up in development projects. The Gold aint coming out the ground any time soon at San Antonio. Everything we need is at San Francisco.

 

Production - Both still  expanding, but give or take, probably similar production trajectory and costs moving forward. However, Timmins has lower execution risk (increased expansion due to increased tonnage through plant).

 

Conclusion - AR's resource is double that of TMM. This does not justify a 1/3rd valuation. If TMM were trading at $1 billion, it would look expensive at current metal prices, but nothing out of the ordinary.

 

 

 

 

 

 

Bullboard Posts