The Investment Doctor
Long/short equity, value, debt, base metals

Primero Mining - Low Cost Gold In Mexico


In this article I'll have a closer look at Primero Mining (NYSE:PPP), a gold producer with operations in Mexico where the company acquired an asset from Goldcorp (NYSE:GG) llo project in Mexico, Goldcorp holding the remaining balance. Cerro Del Gallo holds a resource of 2.3 million gold-equivalent ounces (including 1 million ounces in the reserve category) and should be Primero's next step to grow towards the midtier producer status. Primero seems to be very well placed to expand its current production profile through internally generated cash flow.

I'll first give a general overview of the company and discuss the company's expansion plans. Thereafter I'll move over the balance sheet and some cash flow simulations for...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details