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Strong mine operating earnings from gold for Tahoe in 3Q17

Published by
Global Mining Review,

Tahoe Resources has reported solid financial and operating results for the third quarter and nine months ended 30 September 2017. The company's balance sheet remains strong, with cash and cash equivalents of CAN$182.1 million at 30 September 2017.

Ron Clayton, President and CEO of Tahoe, commented: "Despite challenges in Guatemala during the quarter, we are very pleased with our team's performance, particularly at our gold operations, which produced 109 000 oz at a total cash cost of CAN$747/oz. The company remains focused on executing our strategy to advance near-term development projects in Canada and Peru. Although we reported a loss for the quarter, the results were negatively impacted by CAN$14 million in costs (CAN$0.04 per share) related to the suspension and care and maintenance of Escobal and a CAN$9 million non-recurring pre-tax expense (CAN$0.03 per share) at La Arena as a result of completing negotiations to fulfill historical commitments made to the community. Except for these items, we would have reported positive earnings for the quarter on the strength of our gold operations alone.”

3Q17 gold production for Tahoe totalled 108 700 oz, including 19 400 oz from Shahuindo. Production and costs reflected strong results at all of the company's gold mines, with total cash costs and AISC averaging CAN$747 and CAN$1088/oz, respectively, in the quarter.

Construction of the initial 12 000 tpd crushing and agglomeration circuit at Shahuindo is now nearly complete with commissioning initiated at the end of September. The additional 24 000 tpd crushing and agglomeration circuit remains on schedule and within guidance for commissioning by mid-year 2018. 

In September, the company re-instated and increased its guidance for gold production to 400 000 – 450 000 oz for 2017 due, in large part, to the positive mine plan reconciliation (higher grade and additional tonnes) experienced at La Arena year to date. Total cash cost estimates have been decreased by CAN$50/oz to an estimated CAN$650 – CAN$700 per ounce, reflecting the higher anticipated production levels and better than anticipated cost performance year to date. 

The company also announced updated figures for mineral resources and mineral reserves at Timmins West in Canada. The company had significant growth in mineral reserves attributable to the initial mineral reserve for the 144 Gap deposit, a part of the Timmins West mine. Proven and probable mineral reserves at Timmins West increased from 233 000 oz of gold at an average grade of 3.7 gpt as reported 1 January 2017 to 738 000 oz of gold at an average grade of 3.2 gpt effective 15 May 2017. 

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Canadian mining news