From hoothoot on SH -

"Many thanks to the dedicated bloggers who have kept us informed over the months on this fantastic value play!
I have lurked on this board for the past four months, and this posting is my first commentary.
In the interest of full disclosure, I must tell you that I have committed all of my investment money to this single company, as I am fully confident in the management of the firm for the conservative and systematic way by which it brought this gem of a mine into production in such a remarkably short period of time, within budget.
Here are the reasons why I consider this a great "long term hold" type of investment, and not just a speculation.
a) Though currently identified by the investment community as a tier 2 explorer-developer, this company under the direction of a competent and forward thinking management and exploraton team has transformed the company's status to that of a serious physical gold producer which also happens to possess exciting exploration properties within its portfolio. Significantly, TMM is now a bona-fide gold factory, which is still listed as a Tier 2 company on the Canadian Venture Exchange! Amazing but true. At $1.60 per share it is still a bargain.
b) Having sold physical gold during April May and June when gold posted record high prices, the company has demonstrated that it can comfortably meet its debt obligations to Sprott. If I am not mistaken as things stand, the twelfth and last Sprott payment for retirement of the October 2009 $15,000,000 loan will be completed at the end of July 2011, after which all future ounces will be 100% unencumbered. Not a bad position to be in as the world economy enters what may be a stormy period. A gold factory = safe harbor for wealth preservation. They are making a product which is in relatively short supply, and which is more desirable than paper money in the opinion of a broad range of international investors, both institutional and individual. And they are doing so with their infrastructure in place and almost completely paid for. Mr. Warren Buffett has said that when he looks for companies to aquire, that they must have low debt obligations, a proven increasing cash flow, and sound management. TMM possesses all three!
c) Exploration and development work can be fully funded by the existing cash flow of the company moving forward. The company advises that expansion of the all-important "proven ounces in the ground" statistic will cost only $10 an ounce. The San Francisco pit hosts a respectable body of ore, one which can be mined at only USD$412 per gold ounce. With production projected to increase at the rate of roughly 1000 ounces of gold per month for the next six months, to approximately 9000 ounces by December of the current fiscal year, this enterprise will not stay under the radar any longer. If the international money markets experience another liquidity crisis, Timmins Gold will be well positioned to forge ahead without having to dilute itself to death in search of investment capital. A good thing for long time holders of the stock. And for future investors as well!
d) For realistic evaluation of total number of shares out there right now, it is best to employ the fully diluted number which is acknowledged by management as being 143,000,000, as opposed to the 112,000,000 which some bloggers have too often cited on this board in the recent past. Computing the market cap of this company conservatively still provides a very impressive potential for Share Price increase over the near and the medium term. . If Management refrains from going to the markets for unnecessary loans, share dilution is not likely to be a problem here. I am confident that lawyer Bob knows the pitfalls of over-zealous expansion goals when the world economy enters round two of a liquidity crisis. TMM is unlikely to fall into the trap that Coeur D'Aleine Mines experienced when CDE was USD$80,000,000 short of completing Its Mexican based Palmejero gold & silver play in 2008-2009 (which forced it to sell off 50% of the mine's on-going gold stream producton to a vulture fund in return for the capital needed to bring their mine into commercial production. The subsequent share dilution of CDE had pissed off a lot of the then long-term CDE share holders- myself included! My advice to management of TMM is "Don't let expansion goals take place at the expense of the long-term share holders. Say no to share dilution, and yes to steady, reliable, and sustainable growth" This can be achieved with the revenue stream emanating from its SanFransico "gold factory".
e) Prospects for imminent listing on the Toronto Stock Exchange are excellent. If I understand things correctly, the company filed for listing on the TSX "big board" around four months ago. We have need for financial statements which reflect the costs of current operation resulting from current fiscal year 2010 production activity. Fiscal year 2009 reports are yesterdays news and these need to be supplement to show the 2010 production picture. When investment researchers take note of its "in the black" balance sheet, and the accuracy of management's forward forecasting throughout the history of this company, institutional investors and serious private individuals will likely want a goodly piece of this action. This, naturally, will be good for existing long term holders of this stock. When the company is fully listed as a "big board" TSX gold producer, it is reasonable to forecast that good things will continue to happen to the share price.
f) The product: GOLD is what this company "makes". If things go horribly wrong with international fiat currencies and or if paper based ETFs and their derivatives get black eyes, expect to see physical gold's price to rise in price impressively. This part of the equation is of course the "speculative" side of this venture. I do not over do it here. Even at current rates of value, between $1,000 and $1200 per ounce going forward, this company is a cash cow! If gold ever does pass the USD$1500 per ounce threshold its even more so! Lots of upside potential for share price increase here.
Looking into the near term, TMM stockholders should keep an eye out for the following confirmations.
i) The announcement of the appointment of the new CEO of operations.
ii) Announcement of listing on the TSX "Big Board".
iii) Issuance of more drilling results for the company's spring and summer 2010 exploration and resource definition programs. (to extend the life of mine projection)
iv) Posting of the fiscal year 2009-2010 annual statement, and subsequent financials to be filed for the first quarter of fiscal year 2010-2011.
v) Possibility of an attractive take over offer from a larger gold producer. (this of course just a speculation on my part at this particular time) - but it could happen nonetheless.
As each of the above pieces of information are incorporated into one's due diligence, they should reinforce a continued bullish trend for this stock. As they say, "do your own due diligence, and act on it accordingly". This TMM Stockhouse Bulletin Board has been tremendous. I found it contributed to by wise people, and in most cases the discourse between the members has been respectful and good natured. Bravo to all of you.
From where I see things, investors who currently hold TMM.V shares stand to be real winners going forward for many years to come! At $1.60 you ain't seen nothin' yet! Its going to be "a fun ride"
GLTA"