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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

Comment by own_qualityon Sep 09, 2016 5:00pm
172 Views
Post# 25223710

RE:RE:RE:RE:RE:Timmins holding

RE:RE:RE:RE:RE:Timmins holding
I've felt the same way all along.  There is no reason to hire a CEO if they are working on a deal.  If they do hire a CEO, then you have to figure a takeover isn't being actively pursued at this time.  I still believe that it is nearly certain that Goldcorp will be the buyer when the time comes.  I'd take an offer with a 50% premium right now, even though the company is obviouslyly worth more.   Besides, the buyer has to feel like they are getting a good deal or they probably wouldn't do the deal.  Goldcorp has had its share of problems in Mexico and I know they discount the value somewhat on Mexico projects vs. Canada for instance.

An offer in the $300 million USD range would probably be about right at this time.  I've said before that I think they might wait until permitting for Ana Paula is complete, but that's not a given.  A deal could happen at any time.  Most miners have a bullish perspective on gold these days and there is incentive to act before investment opportunities get more expensive.  Access to capital for deals is also relatively easy now.

Once again, I have no knowledge of anything that isn't already public.  I'm just speculating on gold price going much higher and Goldcorp looking to grow assets and cut costs.  Timmins is an obvious target for Goldcorpp and a good fit with existing Mexico operations and Ana Paula will certainly lower Goldcorp's average production cost profile.  The fact that it would be a relatively near-term contributor is also a big plus.  Who knows, one Monday we could wake to find that we are all 50% richer.  That will be a good day no matter when it happens.
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