Ben Kramer-Miller
Gold & precious metals, macro, research analyst, deep value

Timmins Gold: Soaring Production Cost Estimates Detract From Resource And Production Growth

Since I last wrote about Timmins Gold (NYSEMKT:TGD) back in August the stock is down roughly 30% from $1.91 to $1.35 per share, underperforming the broader sector by a great deal. In part this is due to the recently passed mining royalty in Mexico, which will hit mining companies for 7.5% of their profits. For a company that pays a 30% corporate tax rate such as Timmins this new royalty brings the total figure up to about 35%

But I think there is another explanation for the company's weak share price. In November the company announced the results of its latest technical report in which it updated its resource estimate and mine plan. At first glance it appears...

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