Canaccord Morning Coffee comment today on TMM:

“Timmins Gold* (TMM : TSX-V : $1.98), Net Change: 0.09, % Change: 4.76%, Volume: 612,195
Potential re-rating story? Timmins Gold strengthened as Q2 results confirm that ramp-up to full production is proceeding on schedule. As the company continues to progress towards full operation at its San Francisco mine in Mexico, it has successfully demonstrated quarter-on-quarter improvements in production and costs. Reported cash flow from operations was US$0.04 pershare (from US$0.03 in Q1/10), and earnings increased to C$0.03 per share (from (C$0.01) in Q1/10). Cash cost of sales, net of by-product credits, was US$606 per ounce in Q2/10 compared to US$683 in the previous quarter. Timmins anticipates a full production rate of 9,000 ounces of gold per #REF!month at a cash cost of US$412 per ounce. Meanwhile gold sales for thisfiscal quarter were 15,690 ounces representing an increase of 39% over the prior quarter. Bruce Bragagnolo, CEO, commented, “We achieved or surpassed all our production targets and saw continuing increases in all operating metrics, including mine production, ore deposited on leach pads, gold recovery and gold and silver sales. We are also very pleased with the exploration efforts this year in the vicinity of the San Francisco Mine which we anticipate will result in ongoing increases in reserves and an
extension of the mine life.” Potential near-term catalysts for the story include developments from Timmins offer for Capital Gold (CGC), as well as a new plan for the San Francisco mine.”