VANCOUVER, B.C. (November 11, 2014) – Tahoe Resources Inc. (TSX: THO, NYSE: TAHO) today reported financial results for the quarter ending September 30, 2014, and announced the initiation of a monthly shareholder dividend. This inaugural dividend coincides with the Company’s initial year of commercial production.
Highlights for the third quarter of 2014 include (all amounts in U.S. dollars unless otherwise stated):
Dividend
On November 11, 2014, the Board of Directors approved a monthly dividend of $0.02 per share on the common shares of the Company, payable on December 19, 2014 to shareholders of record on December 12, 2014. This dividend qualifies as an “eligible dividend” for Canadian income tax purposes. Pursuant to tax legislation enacted in 2007, Canadian resident individuals who receive “eligible dividends” will be entitled to an enhanced gross-up and dividend tax credit on such dividends. The Company plans to continue this monthly dividend subject to Board discretion.
Tahoe Vice Chair and CEO Kevin McArthur said, “We have produced strong free cash flow in each of our first three quarters of production and paid down $25 million of our term debt this quarter. As the Escobal mine approaches our goal of 18 to 21 million ounces of silver production in its first year, the time is right to initiate a dividend that we believe is sustainable and can grow over time.”
“This dividend complements our ‘New Leader in Silver’ identity, and is an important part of our commitment to delivering shareholder value,” he added.
Escobal Mine
Production at the Escobal mine improved during the quarter with average mill throughput of 3,710 tonnes per day (tpd) versus the design throughput of 3500 tpd. The silver grade of ore processed averaged 547 grams per tonne during the quarter.
Expansion and Sustaining Capital
The 4500 tpd expansion continued on track during the third quarter. Subject to timely development of the first stopes in the east zone, the mine and processing facilities are expected to be ready for 4500 tpd operations by late 2015.
Construction of the paste backfill plant expansion is on schedule for completion during the fourth quarter. Commissioning of the plant is planned for the first quarter of 2015. The existing plant is capable of maintaining backfill placement requirements at current production levels.
Construction of Phase 4 of the dry stack tailing facility was completed in the third quarter. Installation of vertical drains and monitoring instrumentation in response to elevated tailing pore pressures in Phases 1 and 2 was completed in the quarter as well. The vertical drains are successfully removing residual water entrained in the tailing. Concurrent reclamation continues (topsoil placement and re-vegetation) for the dry stack facility’s front slope.
Engineering and equipment procurement for the 4500 tpd tailing filtration expansion advanced in the third quarter. The fourth tailing filter press is slated for commissioning in the second quarter of 2015. The project remains on budget and on schedule.
2014 Guidance Confirmed
Production and cost guidance for the year remains unchanged as listed in the table below:
Silver Production 18 – 21 million ounces
Production Cash Cost per tonne $90.00 – $95.00
Total Cash Cost per Silver ounce $5.25 – $6.25
All-in Sustaining Cost per Silver ounce (AISC) $8.85 – $9.85
Total Capital Costs $40 – $45 million
Corporate G&A (excluding non-cash items) $25 – $30 million
Exploration $5 – $10 million
Conference Call
Tahoe’s senior management will host a conference call to discuss the third quarter results on Wednesday, November 12, 2014, at 8:00 a.m. PST. To join the call, please dial 1-800-319-4610 (toll free from Canada and the U.S.) or 604-638-5340 (from outside Canada and the U.S.). A slide deck to accompany the call is available at www.tahoeresourcesinc.com/earnings, and a recording of the call will be available later that day at the same site.
Complete financial results, the Company’s management discussion and analysis, and other filings will be filed on SEDAR (www.sedar.com) and the Company’s website (www.tahoeresourcesinc.com).
About Tahoe Resources Inc.
Tahoe’s strategy is to responsibly operate the Escobal mine to world standards, to pay significant shareholder dividends 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.