Timmins Gold Corp T.TMM

TD Target $3.00

[MisterB]

We continue to like Timmins as a straightforward producer with, strong

cash flow and organic growth prospects in a good jurisdiction

with an attractive valuation in our view. We are maintaining our BUY rating

and C$3.00 target price.

Outlook

•

2013 guidance maintained

at 125

-

130k oz. Cash operating costs are expected to be in the range

of $700

-

750/oz.

•

Reserve and resource update expected in Septembe

r

:

management indicated they expect to see a

material increase based on the encouraging preliminary drill results released in H1/13. Drilling is now

complete and has largely been

in

-

fill and b

elow the bottom of the existing pit design, suggesting good

potential for conversion of resources into reserves and adding additional resources. Also drill results from

the new San Francisco East target are encouraging as they support the continuity of the

mineral trend and

potential for additional satellite deposits

.

The company will use $1,100 gold for its reserve calculation and

$1,200/oz gold for its mine plan.

•

Planned shift of production and cost profile:

the company expects to realize sequentially h

igher

production for the remainder of the year, however is guiding towards an increase in total net cash costs per

ounce due to the processing of lower grade material.

[Java7]

in today, hopefully that bottom is in, I really like the no debt, steady production and positive earnings a rare gold company find. Java7

[TimTimmins]

Guess TD's goin way out on a limb on this call eh....expecially seein how the 1 year high is already in the books @ $3.48! When the hell is that new mine plan coming and what's the hold up....little disconcerting...as is the fact we're supposed to be in the strong part of the gold and gold miners yearly cycle... Has gold lost it's luster? Even Grandich seems to have thrown in the

[ShatnersRug]

My observations over the past week are a rise in POS/POG and a drop in miner share prices. This is prevalent in almost all the miners that I follow. It's impossible for me to tell for sure, but I feel that this could be sue to two forces: 1) The uncertainty over QE. Some speculate that this month we will see tapering. 2) Default. Investors do not like being vested in risk assets, in this case,

[jims101]

On being risk averse .... I think that has much to do with the miners weakness. There is probably a good body of trade selling the miners and buying the metals. Until the metals reestablish themselves in an uptrend with some fundamental bias I fear the miners will languish...consequently I am nearly out of them all, though still holding silver and gold through the Sprott funds, which I notice are

[pdcon1]

now is not the time to sell tmm but wait for new res est and news on higher profits  mean while gold still hasnt got the increase due to the debt ceiling that will be increased , jmo

[TimTimmins]

By the time the new res estimate, mine plan gets released this stock will be trading @ a buck to a buck and a quarter AND if they don't add at least a million more oz's all the best you're gonna get is back to where the stock is at today... How goos can the 3rd quarter be? Even if they produced more oz's for the quarter the price they've been selling at isn't much higher