VANCOUVER, British Columbia, Jan. 16, 2018 /CNW/ -- Tahoe Resources Inc. ("Tahoe" or the "Company") (TSX: THO, NYSE: TAHO) is pleased to report record gold production of 445,000 ounces in 2017, achieving the high end of its annual gold production guidance range of 400,000 to 450,000 ounces, which was revised upward in September 2017. The strong gold production for the year was driven primarily by La Arena, which exceeded its guidance due to on-going positive mine plan reconciliation with both higher grade and additional tonnes. The outstanding performance from the gold business in 2017 underscores the increasingly meaningful contribution of the gold segment to the overall financial performance of the Company.
Gold Production (000's oz)
|
Q4 2017 |
Full Year |
2017 Revised |
2017 Initial |
|
|
La Arena |
47 |
196 |
170 – 190 |
145 - 155 |
|
Shahuindo |
19 |
79 |
65 – 80 |
65 - 85 |
|
Timmins |
40 |
167 |
165 – 180 |
165 - 185 |
|
Total Gold Production |
106 |
445* |
400 – 450 |
375 - 425 |
* Total Gold production for full-year 2017 includes Escobal gold production of 3,500 ounces
Project capital for the near-term expansion projects is expected to be at the low end of the revised guidance of $100 to $115 million for the year. As a reminder, the initial project capital guidance for 2017 was $150 to $175 million, but was revised downward by $50 to $60 million due to a deferral in timing of spend and prudent capital management by the Company in response to the Escobal mine suspension. Both major expansion projects – the Shahuindo Crushing & Agglomeration Expansion and the Bell Creek Shaft Project – remain within their respective estimated total project spend of $80 million each. The remaining project capital that was not incurred in 2017 will be spent in 2018 to complete the projects. Both projects remain on schedule to be completed by mid-2018.
Total silver production for 2017 was 9.9 million ounces, predominantly from the Escobal mine during the first half of the year. There has been no production at Escobal since June 7, 2017 due to the on-going suspension of operations.
Despite the on-going interruption of mining operations at Escobal, Tahoe ended the year with cash and cash equivalents of approximately $125 million at December 31, 2017. In addition, the Company has access to $75 million of the $300 million revolving credit facility that matures on July 19, 2021, which remains fully undrawn. As previously reported, the credit agreement includes terms that limit borrowing to a maximum of $75 million during the period of suspension of the mining operations at Escobal. The Company is working with its bank syndicate to renegotiate its credit facility which it expects to complete during the first quarter.
More detailed information relating to production and costs as well as updated gold guidance for 2018 to 2020 will be provided together with Tahoe's fourth quarter and full-year 2017 earnings release on Thursday, February 22, 2018, after the market close. Tahoe will host a conference call on February 23, 2018 at 10:00am Eastern Time (7:00 a.m. Pacific Time) to discuss the results.
Q4 2017 & Full-year 2017 Earnings Call Information:
Date: Friday, February 23, 2018
Time: 10:00am Eastern Time (7:00am Pacific Time)
Dial-In Numbers: 800-319-4610 (toll free in U.S. & Canada)
604-638-5340 (International)
About Tahoe Resources Inc.
Tahoe's strategy is to responsibly operate mines to world standards and to develop high quality precious metals assets in the Americas. Tahoe is a member of the S&P/TSX Composite and TSX Global Mining indices and the Russell 3000 on the NYSE. The Company is listed on the TSX as THO and on the NYSE as TAHO.
Qualified Person Statement
Technical information in this press release has been approved by Charlie Muerhoff, Vice President Technical Services, Tahoe Resources Inc., a Qualified Person as defined by NI 43-101.
