Monday, 5 November 2012

Casimir Capital: preview of Timmins Gold Q3 results

In an intra-day update, Casimir Capital offered a preview of Timmins Gold's (TSE:TMM) third quarter financial and operating results. 
Casimir analyst Stuart McDougall says he is looking for adjusted earnings per share of 8 cents, and operating cash flow per share of 11 cents, on production of 25,153 ounces of gold. 
Production numbers were revealed to the markets in early October. 
Cash costs are also projected at $735 per ounce, McDougall notes. 
Third quarter results are planned for release on Thursday, November 8, before market open. A conference call is scheduled to occur at 9:30 am. 
Casimir continues to rate Timmins Gold a "strong buy", with a target price of C$4.25 per share, compared to its current trading price of $2.98 per share. 
In October, the company's target price was raised substantially by Canaccord Genuity as the gold producer announced a record amount of gold output for its third quarter. 
Indeed, the Mexico-focused gold producer's share price is up almost 53 per cent so far this year. 
For the three months that ended September 30, Timmins produced 25,153 ounces of gold, and 13,857 ounces of silver from its San Francisco mine in Sonora, Mexico. 
The gold ounces produced were up from 17,287 ounces in the year ago period, an increase of more than 45 per cent, due largely to improvements in process and "commitment to [its] expansion plan", which started late last year. 
Modifications to the existing crushing circuit, changes in Timmins' blasting patterns and optimization of its heap leaching process led to the stronger production results. 
The company said that 40,490 ounces of gold were placed on heap leach pads, compared to 35,282 ounces a year earlier, with this number set to increase in the remainder of the year as the mine continues expansion.
The higher production led Timmins to sell over 48 per cent more gold in the latest third quarter than the same period last year. The gold miner maintained its production target of 100,000 ounces of gold for the year. 

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