Tahoe Completes First Year of Commercial Production at Escobal

- March 11th, 2015

Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) released its financial and operational results for Q4 2014, as well as 2014 as a whole, noting that it’s now completed the first year of commercial production at its Guatemala-based Escobal mine.

Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) released its financial and operational results for Q4 2014, as well as 2014 as a whole, noting that it’s now completed the first year of commercial production at its Guatemala-based Escobal mine.

In terms of 2015 guidance, the company said it expects mine and mill production to rise from 3,500 tonnes per day in H1 to 4,500 tonnes per day in H2. Silver production for the year is expected to total 18 to 21 million ounces at an all-in sustaining cost per silver ounce produced, net of by-product credits, of $9.75 to $11.50.

Highlights include:

  • Silver produced in concentrate was 5.2 million ounces and 20.3 million ounces during the fourth quarter and year ended December 31, 2014, respectively.
  • Revenue generated from concentrate sales was $65.4 million and $350.3 million for the fourth quarter and year ended December 31, 2014, respectively. Fourth quarter revenues were impacted by a large year-end inventory of concentrate which is being sold in the first quarter of 2015. Additionally, provisional pricing and sales adjustments negatively impacted revenue and resulted in a realized price of $14.99 per ounce of silver in the fourth quarter, compared to an average LBMA price of $16.50.
  • Total cash cost per silver ounce produced net of byproduct credits for the fourth quarter and year ended December 31, 2014 was $6.26 and $6.37, respectively.
  • All-in sustaining cost per silver ounce produced net of byproduct credits for the fourth quarter and year ended December 31, 2014 was $9.09 and $9.15, respectively. Net earnings attributable to common shareholders amounted to $9.8 million and $90.8 million for the fourth quarter and year ended December 31, 2014 or $0.07 and $0.62 basic earnings per share, respectively.
  • After-tax realizable value of year-end concentrate inventories in excess of normal levels ranged between $12 and $15 million. This equates to a range $0.08 to $0.10 per share in unrealized earnings for the fourth quarter and year ended December 31, 2014.
  • Net cash provided by operating activities was $17.8 million and $119.3 million for the fourth quarter and year ended December 31, 2014, respectively.
  • Cash and cash equivalents at December 31, 2014 were $80.4 million.
  • Mill throughput during the fourth quarter totaled 319,632 tonnes and averaged 3,474 tonnes per day (tpd) while totals for the year were 1.25 million tonnes and averaged 3,413 tpd.
  • The Company reported its first Proven and Probable Mineral Reserve estimates with the publication of a NI 43-101 Feasibility Study released November 5, 2014.
  • The Company drew and repaid $25 million of its debt facility during the year.
  • The Board of Directors approved a monthly dividend of $0.02 per share commencing in December 2014.

Click here to read the full Tahoe Resources Inc. (TSX:THO,NYSE:TAHO) press release.

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