I've said many times before that the sweet spot of investing
in precious metals companies is just as they
are about to go into production. I was in Mexico a week ago with
Bruce Bragagnolo visiting one of his silver projects and the
subject of going into production came up.
We were both baffled by the failure of Timmins to go higher even
after his production
announcement of July 16th came out. Timmins is stacking ore
on the pads at San Francisco and will begin leaching in September.
Bruce expects them to be pouring dore bars in the 4th quarter.
I did some looking into it. One fairly large shareholder has
been dumping shares. When they run out of ammunition, the price
is probably going to jump.
Timmins expects to be producing 80,000 ounces a year of gold
at a cash cost of $412. With $950 gold, that looks pretty attractive.
If you are looking for a gold producer with limited risk, TMM
looks attractive to me.
Naturally readers are reminded to do their own due diligence.
We are biased, Timmins is an advertiser.