Timmins Gold Corp T.TMM

Production & Los Filos Sale

[MisterB]

Great Production numbers for this year - nice to see TMM breach the 100K level again, and I expect the financials should be stellar considering the lower ore processed, low strip ratio and low Mexican Peso.

I am somewhat dismayed about the FY17 guidance. Backens indicated Q1 and Q2 would be strong, which made me think it would be upwards of 23k oz each Q.  I see TMM as backed off of this now and suggest the POG has made them more conservative.  I think the market, seeing lower production of SF over the next 6 years, combined with little visibility on how AP will augment that production, is the reason for the lull in SP.  I do expect things to pick up towards the end of Jan and going forward.

Backens did his job, but I can't wait to have him replaced.  TMM needs a CEO that can execute but also market the company and its prospects.

BTW, Los Filos sold for $438M - 3x TMM's market cap.  I feel we need AP feasibility or drilling results to show the world the Class A property TMM owns. 

B

[auburn2]

About $570 million CAD. This is more than was anticipated so there must have been good buying interest.

[MisterB]

If I recall, GC was looking for about $350M - $400M for Los Filos.  The area is world class so I was pleased to see the price paid.  I am excited to get progress reports on AP  and this is the biggest Catalyst for TMM going forward.  My hope is drill results or similar are released prior to PDAC.    I am still perplexed at the valuation today, but TMM seems to