Timmins Gold Corp T.TMM

DARN! We are in for worse trouble ...

[gbenga]

... CEO/Director quits;  
- TMM puts containment plan in place (= stopping current operations);
- TMM to write down assets (=abandon current operations);
- TMM goes around looking for cash (= starting all over, including bankruptcy possibility!)

What story can be worse?

[Goldhound3]

So are you guys saying that Tmm could drop back into the .20's or lower with this news.

[gbenga]

I hate to say so but that's what I think.  I am already in too deep so I am holding.  But I dont think the SP can stay above .20s given these revelations (and probably more coming).  Of course one can spin it that perhaps a "white knight" would come to the rescue, but the problem is TMM itself seems to be hinting that it has no valuable assets (no profitable mines) and

[Czicfwillgetermit]

Dreadful news indeed.  Significicant impairment charge and new CEO. And stock is only up 8%. I want more dreadful news like this daily.   More dreadful news may be the new underground tunnels at SF were only significantly adding OZs instead of phenomenally adding OZs.  We will suffer through.  

[quietobserver]

I get the feeling from he way the news release was worded that Mr Bragnolo was ousted by the board. Maybe this is what the market was waiting for as we are up 8.5%

[gbenga]

Hope springs eternal for us LONGS ... but as Gold is up today, its hard to say whether we are moving in tandem with gold generally or the market likes some of the TMM news.  Still scratching my head about "cost containment" though - to me  that could only mean abandoning operations and moving on due to lack of economically viable gold in current pits.

[Czicfwillgetermit]

Im not sure what they are abandoning since they have a new mine plan.  Seems to me the underground operations may be added to the mix plus new leach pads with better oversite as stated in CC to get more cost effective OZs to market.   Cost containment sounds like a blanket statement to find every penny in the couch cushions from fuel to labor to a more realistic approach to getting new

[fdjens1]

Wrong. Underground mining would require mega capital to "SUDDENLY" start building underground. It means the current cheaper open pit is flailing. 

[Czicfwillgetermit]

Im fairly certain I said adding underground to the mix, not abandoning the pit, fairly certain the test program was paying for itself per CC and Im fairly certain the deferred strip capital expenses are winding down so any additional capital probably easily absorbed if payback is swift.  We shall see how it plays out.

[handyrandy321]

Underground costs are far higher than open pit, Nevermind the required capex to build a shaft with levels. Right now they are losing money with the open pit  

[MisterB]

QuietObserver, My thoughts exactly.  This was the BOD making a decision on Bruce considering the terrible performance of TMM since the Newstrike acquisition and his inability to control the resulting damage. In this move, Sentry investments (who were also invested in Newstrike) get a CEO that is familiar with TMM's most important asset for their future, can raise the capital to move the

[gbenga]

AMEN @ MisterB and QB!!  It doesnt hurt to pray and be positive as I am beginning to fear for my heart over this one.

[blade86ca]

well said MisterB , all those posts I keep seeing from bashers with their TMM had "explosive" costs last quarter somehow still cannot understand it was cost of dynamite (AKA explosives) that went up , not their costs "exploding" I think they will need a couple quarters but based on this news they should be able to reduce costs (AKA "cost containment")

[blade86ca]

gbenga when a company writes down assets , it means its lowering its book value (typically that helps with taxes) , its not writing OFF its assets as if the land is garbage. BIG difference Yes TMM is looking around for cash to get Ana paula started , if there was bankruptcy possibility this would be trading in the 0.20 range by now