Kees Dekker
Research analyst, base metals, gold & precious metals, deep value

Primero Mining Corporation: How Much Upside Do You Want To Price In?

Executive Summary

Primero Mining Corporation ("Primero") (NYSE:PPP) [TSX: (P)] is a company that has since 2010 aggressively purchased a number of precious metal operations. Whereas the first project, San Dimas in Mexico, is an attractive high-grade underground operation in Mexico, the two subsequent acquisitions were respectively a dog and a disappointment. Primero management would have benefited from more rigorous prior due diligence exercises on these acquisitions, instead of finding out within one year from purchase that they had made a mistake.

The Cerro del Gallo project in Mexico acquired in 2013 is unlikely to be developed until the gold price exceeds US$1,800/oz.

The Back Fox project purchased in 2014 seems to be hitting a brick wall after the

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