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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 MisterBon Mar 26, 2017 9:13am
159 Views
Post# 26031874

RE:Rough comparison....

RE:Rough comparison....That is a good comparison list.  I think there are three items of significance that have impacted TMM's perception with analysts and within the market space as a whole.

1) TMM pre-emptively (and stupidly imo) wrote off SF in Nov 2015.  This did not need to be done with POG fluctuating, but clearly on the downtrend.  The result was the stock hitting .105 and many funds and institutional investors getting hosed.   Unnecessary action, predictble result with SP and impact to funds. Funds have long memories as there are always other stocks to invest in - and you invest in management. That said, this allowed me to up my position buying a 300k plus from .12 to .29.

2) Forward PE. Although TMM looks like a shining star among its peers based on FY16, FY17 will be a tad different as production is decreasing and exp will rise.  TMM needs to show better future SF production and raise estimates.  I see this as a hurdle for analysts right now, despite AP progressing

3) PP's and future funding.  I think the PP in Nov was unnecessarily pre-emptive.  Poor timing and the cash was not needed.  This again rubbed some institutions the wrong way and they have long memories.  TD, after being an adament supporter of TMM did not even release an update post Q4 financials.  They had done so every quarter, even at the worst of times.   My view is once the SF mining plan is restated or guidance is updated, TD will update their morning notes on TMM. 

All said, TMM management turned things around, but also made some poor decisions. These decisions are haunting them now.  As a friend said, they are in the "penalty box".  This is today, but 3 Months from now, I see the story changing rapidly and TMM's market cap going up significantly.   TMM Management just needs to avoid dumb mistakes and deliver patch up the damage.

For me, that simply means "Check in and read the MD&A" and watch for news.  Today is an opportunity.  Cash is there.  AP is progressing.  All things look up.  It just takes time.

B
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