Huge win for Timmins The purchase mentioned this morning is from GoldGroup, not GoldCorp.
I am an investor in GoldGroup, and based on the status of the deal, I'd say it's a win-win. More specifically, in the short run it's going to be a bigger win for Goldgroup in terms of stock price as the fact that Caballo Blanco was not totally permitted yet made it not even show up in Goldgroup's market cap (so they just monetized the asset).
However, in the longer term Timmins is by far the bigger winner. They just got the crown jewel of Goldgroup, one of a few mines that's considered a company maker. Based on the geology and Goldgroup's incredible mine next door, for years it was felt that conservatively Caballo Blanco will produce ultimately at least 3 million ounces...and it's an open-pit (tend to be lower cost). Timmins just got this gem for a bargain price because we are at the low end of the gold cycle, and Goldgroup was getting no credit for it in terms of stock price. They need the cash to buy a mine that they can put in production quickly, and can participate in Timmins' good fortune when Caballo is fully permitted (through the Timmins shares they got). I know that Goldgroup is not thrilled at all about parting with this mine before full permitting is complete (they would have gotten a heck a lot more for it if this were the case).
I will now keep track of Timmins and accumulate shares as the permitting process advances. I don't want to lose track of Caballo Blanco. The way the deal is structured Goldgroup has a big incentive to keep helping Timmins with that process until full permitting is accomplished.
Can anyone summarize what you know about Timmins? Is Management considered to be good? I know nothing about them except that they were smart enough to pull the trigger on one heck of a purchase at a depressed price. Thanks.