Many investors love [penny stocks] due to the massive returns they can yield; but risk-adverse investors should take heed. Penny stocks are highly speculative and very risky. Penny stock companies in the resource sector have even more inherent risks.
There is no concrete agreed upon definition of a penny stock. Some define a penny stock as any stock that trades below $1.00 per share; others believe that this minimum trading value is $5.00. Others look at [market capitalization] or the exchange on which the company trades. To generalize, penny stocks are very small and often have limited liquidity and assets. When it comes to gold miners these small companies can be particularly hard hit by the cyclical nature of the commodity's price. With little money or resources to fall back on, a big price collapse can bankrupt these companies. On the positive side, an upswing in gold's price or
…show more content…
Its assets include the San Francisco open pit, heap leach gold mine in Sonora; the Ana Paula gold project in Guerrero and the Caballo Blanco gold project in Veracruz. A feasibility study on the company's Ana Paula gold project is expected to be completed in mid-2015. Ana Paula was acquired in 2015. The high-grade gold project is expected to favorably add to Timmins Gold's overall economics as it advances the project.
Timmins Gold's recent focus has been on lowering overall costs to survive the downturn. In early 2016 the company refinanced its credit facility. As of late, Timmins Gold's share performance has not been promising, with the company's stock declining 7% over 2015. But, the company’s ability to cut costs to stay afloat, the recent refinancing of its credit facility and the on-boarding of the Ana Paula gold project have the company well positioned, for a penny stock, to profit in this tricky gold price environment.
<>Minco Gold