Mackie Research Increases Target Price for Primero Mining (TSX:P) (NYSE:PPP) - Video Summary on www.investmentpitch.com
(Thomson Reuters ONE) -
Vancouver, British Columbia, April 2, 2013 - Investment firm Mackie Research has
updated its coverage on Primero Mining (TSX:P) (NYSE:PPP). Following the release
of year-end gold mineral reserves and resources, analyst Barry Allan reiterated
his buy recommendation, increasing his 12-month target to $9.50, from $9.00,
giving a projected return of 47% from the $6.47 price the day the report was
issued.
InvestmentPitch.com has produced a "video news alert" which provides a brief
overview of Primero Mining, based on the research report. If this link is not
enabled, please visit www.InvestmentPitch.com and enter "Primero" in the search
box.
The company reported that Probable Gold Mineral Reserves increased 31% over
year-end 2011, to 660,400 ounces, or 19% on a per share basis and that Indicated
Gold Resources increased 35% over year- end 2011 to 779,600 ounces, inclusive of
Mineral Reserves, at the San Dimas mine.
The San Dimas mine, which the company acquired in 2010, is located on the border
of the States of Sinaloa and Durango, some 125 kilometres northeast of Mazatlan
in central west Mexico. San Dimas is historically one of the richest precious
metals deposits in Mexico, being located in the central part of the Sierra Madre
Occidental. The mine has already produced approximately 11 million ounces of
gold and 580 million ounces of silver.
Joseph F. Conway, President & CEO stated, "Our exploration team was very
successful at discovering new ounces in 2012, adding value per share for
shareholders and demonstrating the high quality of the San Dimas asset. We
increased the contained gold and silver ounces in Mineral Reserves and Mineral
Resources, replacing the 12 month gold depletion by a significant 269%."
Primero continues to expand the San Dimas mill, which achieved throughput of
2,066 tonnes per day in the fourth quarter of 2012, up from 1,738 tonnes per day
in the fourth quarter of 2011. The company remains on track to reach the 2,150
tonnes per day level by the end of the first quarter in 2013, with a final
target of 2,500 tonnes per day to be reached in the first quarter of 2014.
Given throughput increases over the course of the year, Primero expects to
produce 120,000 to 130,000 ounces of gold equivalent in 2013 at cash costs of
$620 to $640 per ounce, based on a $1,700 price for gold and a $30 price for
silver.
The company has planned a $15.4 million expansion program for 2013 that aims to
again increase reserves and resources and define higher-grade underground
mineralization.
Analyst Barry Allan stated, "We have not yet factored in the additional upside
of a mill expansion to 3,000 tonnes per day given that a decision has not yet
been officially announced by the company. With a historical resource to reserve
conversion rate of over 90%, and the discovery of over 120 veins since 1928,
there is a good probability that an expansion to 3,000 tonnes per day may be in
the cards."
The shares are currently trading at $6.70, and with approximately 106 million
shares outstanding, the company is capitalized at $710 million.
For more information, please visit the company's website www.primeromining.com
or contact Tamara Brown, VP Investor Relations 416-814-3168 or email
tbrown(at)primeromining.com.
For more information about Mackie Research or to obtain the report on Primero
Mining, contact your nearest Mackie Research office. Their branches are listed
on their website at www.mackieresearch.com.
About InvestmentPitch
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research reports.
CONTACT:
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Barry Morgan, CFO
bmorgan(at)investmentpitch.com
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Datum: 02.04.2013 - 18:23 Uhr
Sprache: Deutsch
News-ID 245263
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