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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 blue0987on Apr 18, 2017 6:05pm
237 Views
Post# 26134762

RE:Regarding the reverse split;

RE:Regarding the reverse split;
Reverse Split - Those exploration/production companies having weak balance sheets/negative cash flows, that execute a reverse stock split from a position of weakness are normally looked at by the markets as desperation measures, that then create downward pressure on their stock afterwards.
 
If, as in Timmins case, a reverse stock split is executed from a position of strength, there can be positive results, some of which are:
 
1) A strengthening of its Capital Structure, allowing Financial flexibility with current & future expenses and Investment Opportunities.
 
2) Timmins becomes more viable for other Fund & Institutional money to invest in, with a more attractive share price that meets their prospectus criteria.
 
3) Eliminates one of the biggest knocks new investors have with investing in Timmins, our share count.
 
A reverse stock split from a position of strength (FCF, $39M Balance Sheet, Upcoming Remolded SF Mine Plan, and AP PFS), will strengthen the company if utilized correctly in future financing, investment opportunities, improved stock listings, greater fund, institutional, and retail involvement. GLTA
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