hoothoot wins a prize for best post of 2013 thus far as it actually contains information that is highly important and useful to a long.




Not a lot of speculation here on if this merger could occur. IMO no one would acquire Timmins because from an acquistion standpoint the risks far outweigh the benefits at their current valuation as they would have to be taken out at 1.00X NAV and then you are exposed to risks of cash costs increases as grade transitions from .8g/t they have put on leach pads the last two years down to .6g/t which is the 43-101 LOM grade though managment claims grade is closer to .7g/t with all the drilling they have done. Other risk is write-off of "ore under leach" inventory near end of mine life.


That leaves option as merger of equals or acquisition by Timmins. I could see goldgroup (GGA.TO) be a target in the near future only if they get their environmental permit for Caballo Blanco on the gulf coast as at this point Goldgroup would have three heap-leach mines with two operating - Cerro Colorada and Cerro Prieto which goldgroup is about to acquire from Oroco resources (OCO.V) and is simple open pit heap leach with about 500k oz in mine plan.


Only merger of equals I could see would be Timmins and Atna resources (ATN.TO), though Atna would have a lot of work to do before this happens.


Just my speculation. Anyone care to speculate as well.