Tomahawk, WI 03/14/2014 (Basicsmedia) – Primero Mining Corp (NYSE:PPP) shares kept creeping up in yesterday’s trade and retreated to $7.51 at the market close. The stock touched a new high range of $7.66 in the intraday trading. The stocks journey on the screener has largely been in green this year. However, yesterday’s move came after the company announced that it has reached a milestone silver production limit from its San Dimas Mines, which it acquired in 2004 along with all the liabilities under a (renewed) Silver purchase agreement with a Subsidiary of Silver Wheaton corp.

Revenue Growth Is Not Enough To Dispel the Hold Rating Rating

Crossing a threshold production means that Primero Mining Corp (NYSE:PPP) can sell 50% of its production in access of 3.5 million ounces in open market at spot rate, by August 5, 2014. Beyond that date, the company will have to meet up a higher threshold of 6 million ounce. The threshold production and 50% of excess over it is mandatorily saleable to Silver Wheaton Corp under the acquired purchase agreement.

In its recent rating for Primero Mining Corp (NYSE:PPP)’s shares, TheStreet downgrade the stock to a “Hold” on the basis of factors such as; a disappointing growth in net income (and EPS) and declining return on equity.

Can It Put Up A Strong Fight?

The overall rating asserted that despite a visible top-line improvement the stock is “over-valued”, owing to a weak bottom-line; so it is bound to stumble in a few months ahead. Going by that the current achievement of the silver purchase agreement threshold, is also a cosmetic change that will bring in more cash. Any further price moves in reaction to such news will also add to the bubble that is already nearing a burst.

Overall, the stock price has inched up 36.61% in the current year. Yesterday, it was trading above the long and short EMAs; daily volume was twofold the average volume of 394,054 shares. Shares of GoldCorp Inc (NYSE:GC) that holds a 19.8% stake in Primero Mining Corp (NYSE:PPP) moved up by 2.8%.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.