Primero Mining Corp. (fka PPPMF)

[wshaw14]

Primero is either grossly under promising or we are in some serious trouble at SanDimas. I derive this from the following statements and the grades stated from the deep zones.

"Primero anticipates 2017 production levels will be in-line with 2016 but at reduced unit costs. Total capital expenditures are also expected be reduced on an overall basis, but year-over-year spending will increase in specific focus areas such as mine development and near-mine exploration."

"There are a total of four active working faces on these levels that delivered 800 tonnes per day of ore production in Q4 2016. Black Fox mill throughput in 2016 established a new record averaging 2,495 TPD (based on 366 day availability)."

If they are currently processing 800 TPD from underground at Black Fox and filling in the mill volume with 1gpt stockpile Black Fox should produce over 22K more ounces than 2016. Are they planning for SanDimas to lose another 22K in production?

I think not. I believe they are purposely under promising so that they can easily exceed guidance each and every quarter. A smart move IMHO.