News, Breakouts, Momentum Plays & Bottoms – May 15, 2017

My Journal For Monday Morning – May 15, 2017in-the-news

Commodities Countdown Video Recording 2017-05-11

Greg Schnell |

Timmins Gold: The Sum Of Its PartsTaylor Dart

In a sector that’s been derailed over the past couple months, my goal has been to try and separate what’s being thrown out with the mining stock bathwater. Oftentimes, the relative strength of a stock compared to its sector can give clues as to whether it’s a laggard or a leader. Timmins Gold (TSX:TMM) is one of those companies and one of only 15 of the 250 miners I follow that is holding above its February highs. This prompted me to dig a little deeper on the company, and it’s hard to ignore the compelling valuation.

Timmins Gold currently has 356 million shares outstanding and is trading for a share price of $0.60 CAD. This gives it a market capitalization of $213 million (CAD). In order for the company to move to fair value, the shares would need to nearly double to the $1.04 level. Given the fact that Timmins Gold will likely need to dilute its shares to raise money for Ana Paula, my fair valuation could come in near $0.85 – $0.88 depending on how the financing is done (shares issuance? royalties? debt?). Having said that, this is still a premium of 40% to the current share price. – READ MORE

 

Capital Ideas Research

The resurgent Avigilon (TSX:AVO). How it got back on top & why it’s got 60% upside. Only in the new Digest.

Breakouts, Momentum Plays & Bottoms – Dwight Galusha

Detour Gold Corp. (TSX:DGC)
OceanaGold Corp. (TSX:OGC)
Franco-Nevada Corp. (TSX:FNV)
Sprott Inc. (TSX:SII)

Kinross Gold Corp. (TSX:K)
Agnico-Eagle Mines Ltd. (TSX:AEM)
Atlantic Gold Corp. (TSX:AGB)
Timmins Gold Corp. (TSX:TMM)

Kirkland Lake Gold Ltd. (TSX:KL)
Great Panther Resources (TSX:GPR)
Semafo, Inc. (TSX:SMF)
NewCastle Gold Ltd. (TSX:NCA)

Have a great day! 🙂

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