http://www.theaureport.com/pub/na/european-investor-olivier-tielens-in-a-sideways-gold-market-explorers-offer-the-most-upside
TGR: Returning to Mexico, which is your favorite gold producer there?
OT: We're long-term supporters of Timmins Gold Corp. (TMM:TSX; TGD:NYSE.MKT), which announced record production for 2014: 122,000 oz (122 Koz) gold equivalent. In December, the company bought Caballo Blanco from Goldcorp Inc. (G:TSX; GG:NYSE). That was a smart move. If Timmins can get that permitted, say in the next year, that would add production of 90 Koz per year. In addition, Timmins has recently announced good discoveries on its land adjacent to its San Francisco mine: 1.29 grams per ton (1.29 g/t) gold over 33.9 meters (33.9m), 5.52 g/t over 10.2m and 8 g/t over 14m.
So Timmins looks to be able to increase production and reserves, while lowering cash costs. This will have a double effect on its bottom line. As suggested above, the company has much exploration potential on these two properties because little of it has been explored. It has eight other properties in its portfolio, which results in a pipeline of years of organic growth. And this is a company that has proved it can deliver. Timmins Gold's all-in cash cost guidance for 2015 is $800–850/oz.
Timmins announced very recently that it would take over Newstrike Capital Inc. (NES:TSX.V), which gives it a superb pipeline if the deal gets confirmed. Indeed, with Newstrike's Ana Paula project, Timmins can add substantial production at even lower cost than what it produces at today. Clearly for us it is a winner down the road, led by a superb team that managed to go into production in 2009, just after the financial crisis, and so far only has had quarters with positive cash flow.
