Tahoe Reports Profit, Record Gold Output In 4Q
Tahoe Resources Inc. (TSX: THO; NYSE: TAHO), which became a larger company last year with the acquisition of Lake Shore Gold Corp., reports fourth-quarter earnings of $0.3 million, while adjusted earnings were $18.4 million, or 6 cents. The main difference between the two figures was a $19.3 million non-cash, non-recurring deferred tax expense related to an increase in the statutory tax rate in Peru to 29.5% as of Jan. 1, Tahoe says. The company reports record quarterly gold production of 119,900 ounces, with silver production of 4.8 million ounces. All-in sustaining costs averaged $945 per ounce for gold and $9.76 for silver. "For the third consecutive year, our team met, and in some cases exceeded, our annual production and cost guidance,” says Ron Clayton, president and chief executive officer. Silver production in 2016 was a record 21.3 million ounces, which beat guidance. Record gold production of 385,100 ounces achieved guidance and more than doubled from 2015, Tahoe says. The production growth reflected the acquisition of Lake Shore Gold on April 1, achievement of commercial production at the Shahuindo mine in Peru on May 1, and a full year of results at the La Arena mine in 2016 after it was acquired with Shahuindo in April 2015. Adjusted full-year 2016 earnings were $180.4 million, or 62 cents per share, versus $98.9 million, or 48 cents, for the prior year. Net earnings of $117.9 million, or 41 cents, were lower than adjusted earnings largely due to non-cash, non-recurring deferred tax expense related to an increase in tax rates in Peru , a non-cash, non-recurring loss on redemption of debentures and acquisition costs for Lake Shore. Tahoe says it is on track to achieve over a half million ounces of annual gold production in 2019. Both of the company's two key growth projects, expanding Shahuindo to 36,000 tonnes per day and the deepening of the Bell Creek shaft, are on track for completion in mid-2018. For 2017, Tahoe lists output guidance of 18 million to 21 million ounces of silver and 375,000 to 425,000 ounces of gold.
By Allen Sykora of Kitco News; firstname.lastname@example.org
Pretium: Brucejack Dry Commissioning Planned For March
Friday March 10, 2016 08:00
Pretium Resources Inc. (TSX, NYSE: PVG) says construction of the Brucejack Mine in British Columbia is ahead of schedule and dry commissioning of the mill is now planned for this month, with wet commissioning expected in early April. Commissioning was previously planned for mid-2017. Over 144,000 tonnes of ore have been stockpiled in preparation for mill commissioning, the company says, adding that all major mechanical and electrical components have been delivered to site and installation and assembly is ongoing. The 330-person camp, which includes mine dry, offices, recreation facilities, dining hall and kitchen, is fully operational. Last month, Pretium completed an offering of $100 million of 2.25% unsecured convertible senior subordinated notes due in 2022. The proceeds are for working capital during start-up of the Brucejack Mine and general corporate purposes.