Tahoe Posts 3Q Loss After Mining Halt At Escobal
Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) reports a net loss in the third quarter as revenue fell due to closure the Escobal mine in Guatemala, one of the largest silver mines in world, over a license issue. The company lists a loss of $8.4 million, or 3 cents per share, compared to income of $63 million, or 20 cents, in the same quarter a year ago. Escobal was shut down in early July over a license issue. The Guatemalan Supreme Court reinstated the company’s mining license near end of the third quarter, but the issue must still be resolved by the Constitutional Court. Also, protesters near the town of Casillas are blocking a supply road connecting Guatemala City to San Rafael Las Flores and the Escobal mine. Tahoe listed no silver output in the third quarter, compared to 5 million ounces in the same period a year ago. Companywide revenue fell to $155.2 million from $234.7 million. However, Tahoe’s gold output rose to 109,000 ounces from 98,000. “Although we reported a loss for the quarter, the results were negatively impacted by $14 million in costs ($0.04 per share) related to the suspension and care and maintenance of Escobal and a $9 million non-recurring pre-tax expense ($0.03 per share) at La Arena as a result of completing negotiations to fulfill historical commitments made to the community,” says Ron Clayton, president and chief executive officer. “Except for these items, we would have reported positive earnings for the quarter on the strength of our gold operations alone.” Tahoe improved its guidance for 2017 gold output to between 400,000 to 450,000 ounces, largely due to higher grade and additional tonnes at La Arena for the year to date. Total cash cost estimates were decreased by $50 per ounce to an estimated $650 to $700 per ounce, and guidance for all-in sustaining costs were decreased by $100 per ounce to a range of $1,050 to $1,150.