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Timmins Gold Trading Card
Website: http://www.timminsgold.com Symbol: TMM.v | US routing symbol: TMGOF
Timmins Gold Corp is one of my favorite canadian mining stocks with projects based in Mexico and have met my requirements to be added to my hot penny stock picks list. They are strategically positioned for years of continuous growth as a gold production and development company. Focused solely in Mexico, Timmins Gold is now ramping up for full commercial production at its wholly owned San Francisco Gold Mine in Sonora, Mexico. Timmins Gold is a canadian gold stock with very high potential and very little risk. My Timmins Gold analysis resulted in a target share price of $5.18 which is an increase of 4.5x!
Opportunity($):
Current Share Price: $1.13 | Target Share Price: $5.18 | Share Price Increase: 4.58x
With its current share price $1.13 & 108 M shares outstanding at the time of this writing, Timmins Gold is an incredible bargain and value play. It also happens to be one of the lowest risk junior mining companies around. At an average gold price of $1100/oz, est. production of 100,000 oz/yr, and a conservative valuation of 8x times earnings, you are looking at a target share price of $5.18! Wow, that’s about 4.58 X increase over the current share price!
Strengths:
| Status- | Current Gold Producer as of Jan. 2010, Est. Prod.- 80k – 100k oz/yr, Production Cost: ~$400/oz |
| People- | Exceptionally Strong Veteran Management with proven track records and reliable execution! |
| Property- | San Francisco Gold Mine in Sonora Mexico, NI-43-101 Compliant, 600 koz probable gold reserve, 100% Ownership, Open Pit Operation |
| Share Ownership- | Institutions:45%, Insiders:14% |
| Financials- | Fully financed, Low Debt- payable by gold ounces instead of fixed dollar price. |
| Recommended by- | Bob Moriaty, Trey Wasser, Peter Spina, Jay Taylor, and many more. |
| Promotion- | First gold pour 12/2009, fully permitted, started commercial production 1/2010, currently trying to expand/prove up additional gold reserves |
| Push/Time Frame- | Share price should start appreciating again after 2-3 quarters of successful gold production and/or once the current gold correction has ended. Also, Timmins gold is an exploration company as well. At any point they could announce additional significant gold discoveries that can also move the share price fairly quickly. |
Weaknesses/Threats:
| Minor Weakness- | Shares Outstanding has increased to 125M, fully diluted 142M. This is still decent, but less would be better. |
| Medium Weakness- | General market weakness since late December 2009 has put some selling pressure gold and gold mining stocks. Therefore the Timmins share price has come down quite a bit. This presents an extraordinary low risk entry point since the long term fundamentals are excellent and have not changed. This weakness should be temporary and blow over once the current gold correction has run its course. This threat is not specific to just Timmins, but the whole sector. |
| Major Weakness- | None. |
Summary:
I would like to conclude my Timmins Gold review with this summary. Timmis is perhaps one of the lowest risk junior mining companies around with significant upside potential. Everything is in place such as great management, permits, equipment, financing, first gold pour, production start, etc. This junior miner has just started production! At this point, just need to play the waiting game as the current gold correction is winding down. This stock pick is highly recommended by many of the top analyst and has an institutional/insider ownership total of 59%! This is not a stock to day trade, but to buy and hold long term. I love investing in gold stocks like Timmins Gold, that are dramatically undervalued companies. Timmins is right at top of my hot penny stock picks list, and for the most part, about as safe as you can get among the penny mining stocks.
Related Posts:
- Timmins Gold Up 116%!
- Timmins Gold Now In Commercial Production
- Timmins Gold Production Update
- Metanor Resources Trading Card
- Petaquilla Minerals Trading Card
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Disclosure: I have not received any compensation from Revett Minerals, Timmins Gold, Metanor, or Petaquilla Minerals. None of these companies are advertisers on GoldStockMania.com. I am extremely bullish on Petaquilla, Timmins Gold, & Metanor and currently hold shares.
Disclaimer: I am not a professional/qualified investment advisor. Readers should note I am not responsible for errors or omissions in this report. Also, I am not responsible for your trading decisions as you should do your own due diligence before making any investment decisions.
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Great post. Gold is the best way to protect wealth in this failing economy.