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Primero Mining Corp. / P.v in Canada

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Primero Mining Corp. / P.t in Canada
Primero Mining / P.t .. All-data : 5-yr : 2yrW : 2yrD : 6-mo : 10d :: 3/24/17: C$0.74 x 187.7shs = C$138.9mn

One of the Canadian brokers has recently issued a Buy note.
The stock was formerly known as Malanoche, and they raised big money at C$6.00
to acquire a Mexican mine from Goldcorp

: C$5.35 | C$482.00M
Buy, C$8.00

New structure(s) will unlock upside at San Dimas; initiating coverage with a BUY rating and C$8.00 target (full report)

We are initiating coverage on Primero Mining (P : TSX-V) with a BUY rating and a 12-month target price of C$8.00 based on a multiple of 1 times our 5%/peak NAVPS ($1,300 Au/$21.50 Ag) estimate of US$7.98 (@ US$/C$ parity). Primero recently acquired the San Dimas gold-silver mine in Mexico from Goldcorp for US$510 million. Our BUY rating is based on the following:

Experienced and well-known management team. Headed by Joseph Conway (President and CEO), a well known mining executive with a proven track record as the former President & CEO, IAMGOLD. Eduardo Luna, Exec VP and President-Mexico, formerly served as President of Luismin (1991-2007), the company/Goldcorp subsidiary that ran the San Dimas mine.

Organic growth potential and new Sinaloa Graben structure. Organic growth via potential capacity expansion and new Sinaloa Graben area which is estimated to potentially host a higher grade resource of 1.1 Moz gold and 82.1 Moz silver (not yet on the books). We currently assume a 20% expansion to 2,300 tpd which enhances our 5%/peak NAVPS estimate by 20% (US$1.35/share). We also assume conversion of a significant portion of existing resources (i.e., 1.45 Moz gold and 120 Moz silver) but exclude any incremental upside from Sinaloa Graben.

New silver stream structure improves valuation. The restructured silver stream agreement allows Primero to sell at spot prices, 50% of Ag production above 3.5 Moz for four years and above 6.0 Moz thereafter. This increases our gold-eq production profile and lowers costs, improves valuation/leverage and justifies the economics of expanding the mine.
Immediate producer status with attractive relative valuation.

Primero currently trades at a P/ NAV (@5%/spot) multiple of 0.69x and 2011E P/CF multiple of 6.6x versus the junior averages of 1.03x and 10.8x, respectively. We believe there is excellent re-rating opportunity for the shares as the mine's expansion and exploration upside potential and revised silver stream deal is better understood.


> Debs. : http://www.stockhouse.com/companies/quote?symbol=t.p.db.v
> ShOS : http://www.stockhous...te?symbol=t.p

> symb. :

T.P | T.P.DB.V 6.5% Feb. 2020 (see below) | P.WT.C : wts exp. 6/24/18 at C$3.35


On February 9, 2015, the Company issued $75 million of 5.75% convertible unsecured subordinated debentures (the 5.75% convertible debentures) maturing on February 28, 2020. The 5.75% Debentures bear interest at a rate of 5.75% per annum, payable in U.S. dollars semi-annually on August 28 and February 28 each year, commencing on August 28, 2015. The 5.75% convertible debentures are convertible into the Company’s common shares at a conversion price of approximately $6.55 per share, representing a conversion rate of 152.6718 common shares per $1,000 principal amount of the debentures. Upon conversion, holders will be entitled to receive accrued and unpaid interest up to, but excluding, the date of conversion.

Corp. website- :: http://www.primeromining.com/
Resources - - - :: http://www.primeromining.com/Operations/Re...es/default.aspx

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Why Primero?



Market Cap.: 86mn shares* x C$5.40 = C$ 465 Million




Cash flow engine to fund growth

Strong balance sheet allows financial flexibility

~$50 million cash

~$70 million annual cash flow



Continual reserve growth

90% resource to reserve conversion rate over 30 year span

Aggressive production growth targeted



Industry leading cash cost profile

Management focused on maximizing shareholder value by increasing production levels at low cost



Politically stable, pro-mining jurisdiction

Unhedged gold



Industry leading health and safety initiatives

'Clean Industry’ Certified

Renowned community development programs


/see: http://www.primeromining.com/Investors/why...ro/default.aspx

== == ==



Exchange: Toronto Venture Exchange

Common Share Trading Symbol: TSX.V:P

Common Share CUSIP number: 74164W106

Warrant Trading Symbol: TSX.V:P.WT

Warrant CUSIP number: 74164W114

Number of issued and outstanding shares (as at August 6, 2010): 86 million

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Why Primero?

May want to disclose your position bubb

I hold some warrants - actually, quite a few !

And I may add to my position, when I feel the markets are at the right level.

Not yet, since I see a big selloff coming


P.v looks cheap on relative valuation measures (see above)


Eduardo Luna knows the asset, and may use it as a base to build a very interesting company:

Wheaton River Two, perhaps?

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  • 2 months later...

Primero / P.t ... update




P.t : 5.51 Change: -0.09 // Percent Change: -1.63%

Open: 5.50 High: 5.58 Low: 5.50 // Volume: 38,595

== ==



Primero Appoints Vice President of Corporate Development;

to Release Third Quarter 2010 Results on November 10, 2010 - 10/19/2010


TORONTO, ONTARIO--(Marketwire - Oct. 19, 2010) - Primero Mining Corp. (TSX:P) ("Primero" or the "Company") is pleased to announce the appointment of David Sandison as Vice President, Corporate Development. The Company also announced that it will be releasing its third quarter 2010 operating and financial results before market on Wednesday, November 10, 2010.


Mr. Sandison brings over 25 years of mining industry experience specializing in corporate development. He has been instrumental in several transforming deals during his career and brings an extensive track record in South America. Mr. Sandison holds a Bachelor of Applied Science, majoring in mineral exploration from the University of Toronto and Masters in Business Administration from Queen's University. He has held several senior management roles in both operations and corporate development, is experienced at building technical acquisition teams and speaks Spanish.


"David's background and experience is a great addition to our new team," said Joseph F. Conway, President & Chief Executive Officer. "With Primero poised to grow through both exploration and acquisition, his unique technical and business development skills will complement our existing management group. His wide industry knowledge, business relationships and proven track record will be an important element of our future successes. Together the Primero team will continue to focus on optimizing San Dimas as well as pursuing strategic growth opportunities."


Conference Call Details


A conference call will be held on Wednesday, November 10, 2010 at 11:00 a.m. (ET) to discuss the third quarter operating and financial results. Participants may join the call by dialing North America toll free 1-866-946-0484, or 1-646-216-4773 for calls outside Canada and the U.S., and entering the participant passcode 8992639#.


A recorded playback of the call will be available until December 10th, 2010 by dialing 1-866-551-4520 and entering the call back passcode 267392#.


A live and archived webcast will also be available at www.primeromining.com.



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  • 8 months later...
  • 5 years later...

( Note);


I was very lucky wth Primero, I sold out at a profit years ago

And bought back in a small position at under C$0.80 (to get me motivated to do some research)


I am considering adding more, but need to do some deeper research first

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Q4 2016 Operating Results

*See final slide for endnotes.
------------------------------ : 2016 : 2015 :: 2016 : 2015 :
Gold equiv. production : 45.8 : 68.2 :: 176.1 : 259.5 : (koz AuEq)
Gold production -------- : 40.7 : 59.2 :: 156.1 : 221.1 : (koz Au)
Silver production ------- : 1.42 : 2.32 :: 5.32 : 8.30 : (Moz Ag)
Total cash costs ------- : $777 : $613 :: $865 : $637 : ($/oz AuEq)
All-in sustaining costs: $1,159 : $985 : $1,333: $960 : ($/oz Au)


> http://s1.q4cdn.com/439504096/files/doc_presentations/2017/mar/Primero-Q4-Results-Presentation-FINAL.pdf

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TARGETS for 2016 , in 2015 Annual Report were:


• Produce 260,000 to 280,000 Au eq ounces
• Replace reserves with 100% of production
• Complete expansion to 3,000 tonnes per day at San Dimas
• Continue to optimize and improve Black Fox operation
• Advance project pipeline (Cerro del Gallo, Truchas, Ventanas, Grey Fox, and Froome) within budgeted
• Increase operating cash flow and earnings per share
• Maintain strong balance sheet and ensure the Company has access to sufficient funds to achieve its objectives
• Earnings per share maintained despite the decline in metals price
• $71 million total liquidity (pro forma convertible debt repaid), $46 million cash

• Create a transformational shift in attitude towards safety culture resulting in zero level 4 or 5 safety,
community or environmental incidents and a safety performance tRIFR of 0.61 or less
• Maintain “Clean Industry” standards in Mexico (certification awarded every two years)


> http://s1.q4cdn.com/439504096/files/doc_financials/annual/2015/Primero-AR-2015-FINAL_REVISED.pdf

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