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Inches Away From Production

Bob Moriarty
Aug 3, 2009

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.

Timmins Gold Corp
TMM-V $.63 (Jul 31, 2009)
TMGOF-PK 103.5 million shares
Timmins Gold website

Bob Moriarty
President: 321gold

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