Primero Mining (NYSE:PPP)

Gold price is bouncing back and revenues and production is up for PPP over the last few years

The metals sell off appears to be both a capitulation of many gold investors and probable margin calls on long positions in the metals market. Irrational pessimism in the metals space will persist until JPM and friends find it profitable to go long and harvest profits from the momentum players who decided to go short at the wrong time. As weak miners go bust, the ones that weather the storm will be rewarded. PPP is likely to among them.

Just follow Sprott ...

UUU

solid company: high profit margin, low P/E

low debt and 6x cash...in an area of the market expected to do pretty well in the coming years

I think their recent acquisition and excellent management will outperform the market in the next 24 to 36 months. Precious metals are stable and will always be in demand for many reasons besides a hedge against the market.

expect precious metals to keep moving

great yr over yr growth 111.11%
rev growth 159.70% rev ttm 12 Q 101.06 M
earnings per share 0.17 price th free cash flow 150.7 price book 0.85

Found additional gold reserves in the San Dimas mine.
P/E is far too low for a mining stock for a mine with a known history of performance.

all gold miners will prosper when gold hits 2000usd an ounce

signal

Over the next 4 to 5 years the bear market will continue. Gold will stay strong and outpace the market return and gold mining will profit from from this. I will sell when the S&P falls below 800, signaling me to move back into more aggressive equities.

This is a fantastic bargain at current levels (~2.70). The company is literally raking in cash right now, bringing up 23,000 oz of gold per quarter at only 640 $/oz cost. This translates to profits of 1000 per ounce for a 100,000 ounces, or around 92MM in cash in the forward TM. With 80-100MM already banked, this puts the company in the fantastically enviable position of having liquid capital of 200+MM, an amount equal to their *entire market cap*. Stunningly they could purchase themselves and buy back a mountain of their own stock within 18 mos.

The reason for the low P/E is not completely known; however the ticker, relatively new company structure, lack of current financials on certain brokers (TDA for example) makes it difficult to find information on this stock for some people, and also unavailable for purchase by types of funds, while it is below a certain PPS.

As the company reports more, grows more, becomes more widely known, and exists longer, buzz about this striking gold play and its formidable executive team with extensive experience will spread. With a lower bound because of great free cash flow, the upside is not only significant but potentially a five to ten bagger in the next three years.

Yes I am long. Who wouldnt be, at this price?

Low P/E even if they don't get relief from an unfair tax situation, with a free call on any upside if they do.

Great increases in extraction efficiency should help this company get more out of its limited resources.

Excellent management team, applying the latest mining technologies to efficiently exploit the San Dimas mine. Low cost structure with resultant high margins. Very favorable current valuation limits the downside from here forward.

This a pick & hold until it reachs 0, or take your
lose now.

undervalued in many respects