Tahoe Achieves Record Production And Cash Flow Per Share In 2016

Tahoe Resources Inc. (“Tahoe” or the “Company”) (TSX: THO, NYSE: TAHO) today announced financial and operating results for the fourth quarter and full-year 2016. Full-year 2016 results include strong operating performances from both the silver and gold businesses, record cash flow per share and improved balance sheet strength, with cash and cash equivalents of $163.4 million at year end. Q4 2016 earnings declined from the prior quarter largely reflecting lower revenue, the impact of a non-cash, non-recurring deferred tax charge related to an increase in tax rates in Peru and increased expenses.
As quoted in the press release:

Ron Clayton, President and CEO of Tahoe, commented: “For the third consecutive year, our team met, and in some cases exceeded, our annual production and cost guidance. Escobal achieved record silver production, total cash costs and AISC, and once again demonstrated why it is one of the world’s finest and most responsible silver producers. In our gold business, our operating cost performance was outstanding, which is very satisfying when you consider there are major capital projects ongoing at two of our mines. In Q4 2016, our Canadian operations had their best quarter since being acquired in April 2016. Financial results for the quarter were impacted by declining metal prices and non-cash, non-recurring items. I am pleased to say that we have seen an improvement in metal prices since the beginning of 2017.
“Looking ahead, we recently received the construction permit for the first crushing and agglomeration circuit at Shahuindo and, through an optimization review, have confirmed that recovery rates of at least 80% can be achieved at the mine through crushing and agglomeration to a capacity of 36,000 tonnes per day. Through the review, we have also identified opportunities to achieve slight reductions in capital and operating cost. With our plans at Shahuindo in place, we are in a position to release multi-year guidance for capital expenditures, as well as production and costs. Our new three-year guidance provides a clear road map for growing to over a half million ounces of gold production in 2019 with low capital requirements and operating costs. At that point, we will be well positioned to generate substantial amounts of free cash flow at anything close to current spot prices and to achieve our stated goal of 550,000 ounces of gold production by 2020.”

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