Opinions
Jon Case
Primero Mining Corp
P-T
TOP PICK
Jun 17, 2015
$5.290
Stock price when the opinion was issued
Mining
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Almost went bankrupt. They are trying to get an electronic version for the rail lines. Had high debts and were burning a lot of cash. Were losing money on their first 2 projects. Recently found some financing with convertible debts from Teachers. Needs to see some contracts being signed.
transportation equip & components
DON'T BUY
Changing power systems of rail changers. Technology has been good but weren't able to make any profits. Have been selling at a loss. Trying to restructure and now that they have a financing in place they possibly can be more successful in getting sales. Would like to see some sales ramp up.
transportation equip & components
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A gold producer out of Mexico. 250,000 ounces a year. Costs are about $1,000 all in, so you have a good margin of a couple of hundred dollars an ounce. That generates free cash flow which is the main driver. Sees free cash flow of around 6%-7%, coming mainly from the San Dimas mine in Mexico. What is really compelling, which is lost on a lot of investors, is the wealth creation potential from that mine. A new discovery called Jessica has 2X the grade in gold and 4X the silver grade, and is not far from their existing mine.