My view is in this environment, TMM will continue to follow the POG for obvious reasons. That said, TMM is trading at a significant disount to its peers. We should be looking at a 20% increase in valuation just to get close to the bottom range.
Some notes:
TD: Target price of C$2.25 is based on 1.0x NAV and 8.0x 2015E CFPS, weighted 60% and 40%, respectively. We value Timmins in the middle of the junior/interme
diate producers’ target multiple ranges of 0.7x–1.3x NAV and 7.0x–14.0x 2015E CFPS to attempt to reflect the strong FCF-generating capabilities of the existingassets as well as the potential resource expansion from current exploration drilling programs.
Dundee Capital: Raises target to C$2 from C$1.75; rating buy