VANCOUVER, May 2, 2018 /CNW/ - Tahoe Resources Inc.
("Tahoe" or the "Company") (TSX: THO, NYSE: TAHO) today announced
financial and operating results for the first quarter ended
March 31, 2018. The Company produced
90,900 ounces of gold during the quarter at total cash costs and
AISC of $793 and $1,158 per ounce, respectively. The Company ended
the quarter with approximately $254
million in total availability including cash and cash
equivalents of $54 million, a
$175 million undrawn credit facility
plus $25 million accordion, and no
bank debt.
Ron Clayton, President and CEO of
Tahoe: "Earnings this quarter continued to be impacted by the
Escobal mine suspension and our ongoing care and maintenance costs
to maintain readiness for restart. However, we are encouraged by
the constructive public statements made by the new Constitutional
Court President in Guatemala and
we have had productive dialogue at the Casillas roadblock. We
believe we are well-positioned to resume operations at Escobal once
a positive court ruling is received. On the gold side of the
business, we produced 90.9 thousand ounces during the quarter. And
as previously guided, 2018 production is expected to be weighted to
the second half of the year with lower costs and we remain on track
to achieve our 2018 production and cost guidance. In the first
quarter, we also successfully refinanced our revolving credit
facility and repaid $35 million in
debt, leaving us with zero bank debt on the balance sheet.
Conservative capital management remains a hallmark of Tahoe's
management philosophy and it will allow us to comfortably complete
the construction of the Bell Creek shaft and the Shahuindo
Expansion this year, positioning us to achieve our target of
approximately 500,000 ounces of gold production in 2019."
Key Financial and Operating Results
|
|
|
$ millions unless
otherwise indicated
|
Q1
2018
|
Q1 2017
|
Revenue
|
$
|
139.9
|
$
|
251.0
|
Earnings (loss) and
total comprehensive income (loss)
|
$
|
(6.9)
|
$
|
74.7
|
Earnings (loss) per
share
|
$
|
(0.02)
|
$
|
0.24
|
Adjusted earnings
(loss)(1)
|
$
|
(7.2)
|
$
|
75.1
|
Cash provided by
operating activities
|
$
|
30.5
|
$
|
97.2
|
Cash provided by
operating activities before changes in working
capital(1)
|
$
|
38.5
|
$
|
132.9
|
|
|
|
Silver Production
(moz)(3)
|
—
|
5.7
|
Gold production
(koz)
|
91
|
119
|
Total cash cost per
silver oz produced ($/oz)(1)(2)
|
$
|
—
|
$
|
5.73
|
AISC per silver oz
produced ($/oz)(1)(2)
|
$
|
—
|
$
|
8.11
|
Total cash cost per
gold oz produced ($/oz)(1)(2)
|
$
|
793
|
$
|
574
|
AISC per gold oz
produced ($/oz)(1)(2)
|
$
|
1,158
|
$
|
860
|
Sustaining
capital
|
$
|
22.6
|
$
|
17.3
|
Project
capital
|
$
|
36.5
|
$
|
15.5
|
Exploration
expense
|
$
|
2.7
|
$
|
4.2
|
Corporate
G&A(4)
|
$
|
11.8
|
$
|
11.7
|
Weighted average
shares outstanding (basic, in millions)
|
313.19
|
311.95
|
|
|
(1)
|
See "Cautionary Note
on Non-GAAP Financial Measures" at the end of this press
release.
|
(2)
|
Total cash costs and
AISC are presented net of by-product credits.
|
(3)
|
No silver was
produced from Escobal during Q1 2018 while the mine remained on
care and maintenance.
|
(4)
|
Corporate G&A
includes non-cash, stock-based compensation.
|
Q1 2018 Summary & Highlights:
Production on track at La Arena, Shahuindo, and Bell Creek;
Costs higher during Q1 2018 – Q1 2018 gold production totaled
90.9 thousand ounces at total cash costs and AISC of $793 and $1,158 per
ounce, respectively. Production at the La Arena, Shahuindo and Bell
Creek mines met plan during the quarter. Unfortunately, production
at Timmins West was 76,000 tonnes less than planned due to paste
fill delays associated with extreme cold weather in January and
mechanical issues in February (issues that have both subsequently
been resolved). These conditions resulted in changes to the mining
sequence that included lower ore tonnage mined from lower grade
stopes. Overall, total cash costs for the gold operations were
slightly higher than full-year guidance costs of $725 to $775 per
ounce due to the issues encountered at the Timmins West and
slightly higher cost ounces produced in Peru as we continue with the Shahuindo
Expansion. Production is weighted to the second half of the year
with lower costs and the Company remains on track to meet
the 2018 full-year cost and production guidance.
Earnings impacted by Escobal suspension – Loss of
$6.9 million ($0.02 per share) was negatively impacted by the
ongoing suspension of mining activities at Escobal which resulted
in no material revenue for the quarter, compounded by care and
maintenance costs of $10.4 million
($0.03 per share).
Positive cash flow of $38.5
million before changes in working capital – Cash flow
provided by operating activities before changes in working capital
totaled $38.5 million for the
quarter, despite the ongoing suspension at Escobal.
Liquidity position of $253.6
million and zero debt – Tahoe ended the quarter with
$53.6 million in cash and cash
equivalents. In addition, during the quarter, the Company revised
its revolving credit facility for access to $175 million plus a $25
million accordion, structured on the gold operations alone,
for total availability of $200
million. The Company also repaid $35
million in debt in Peru
during the quarter, leaving the Company with no bank debt
outstanding and less than $8 million
in capital leases.
Shahuindo Expansion on track for 36,000 tpd ramp-up by
year-end – Commissioning of the 12,000 tpd crushing and
agglomeration ("C&A") circuit was substantially completed and
construction ramp-up was initiated during the quarter, although a
number of typical commissioning issues were experienced during
start-up operations. Engineering and procurement for the 24,000 tpd
circuit is significantly advanced with initial construction
starting during the quarter. The construction of the primary
projects for the full 36,000 tpd expansion is now scheduled to be
completed in early Q4 2018, with ramp-up and commissioning to be
completed by year-end. This schedule is not expected to impact
annual production guidance. Secondary projects required to support
the expanded mine and leach pad footprint are expected to be
completed throughout 2019.
In terms of costs, the expansion project remains on track with
the original guidance. The Shahuindo Expansion includes the 36,000
tpd C&A circuit (with estimated capital guidance of
$80 million) as well as the expansion
of the adsorption, desorption and refining ("ADR") plant to 36,000
tpd, the installation of a 220kv transmission line and substation,
leach pad 2B and other associated
secondary projects such as the water treatment facilities.
Total estimated cost for the Shahuindo Expansion (including the
$80 million C&A circuit) is
$170 to $180
million, which is in line with the original guidance.
$86.5 million has been spent through
March 31, 2018 ($20.3 million in Q1 2018), with an
additional $35 million committed. Approximately $30 to $35 million
of the total Shahuindo Expansion budget is expected to be spent for
the secondary projects in 2019.
Bell Creek shaft progressing towards completion in early Q4
2018 – The Bell Creek shaft project continues to make
significant progress. While the Company reiterates its annual
production guidance, the schedule has shifted marginally and
construction is now expected to be completed in early Q4 2018, with
final commissioning and full ramp-up by year-end. All lateral
development and sinking of the lower portion of the shaft project
has been completed. Excavation of the third and final pilot raise
from the shaft bottom is also complete and enlarging of this pilot
raise is all that remains to be completed for the vertical
development of the shaft. Surface construction activities increased
during the quarter with multiple tasks in the hoist room and
headframe. The shaft project is now expected to be within 5% of the
original $80 million guidance.
Approximately $60.5 million has been
spent through March 31, 2018
($8.9 million spent in Q1 2018). Of
the remaining amount, the Company has approximately $12 million committed.
Timmins West optimization is a priority during in 2018 –
The Company is focused on optimizing operations at Timmins West in
2018. Costs were negatively impacted during the quarter by lower
production than planned which was primarily driven by paste fill
delays, mechanical issues and lower grade. The February mechanical
issues have been resolved and March production showed improvements.
Efforts to rework the mine plan are underway in order to enhance
flexibility in the stoping sequence and to maximize the development
of stopes in ore rather than in waste. In addition, various cost
efficiency measures are underway which will be completed throughout
the year.
Mineral Resources and Mineral Reserves updated – On
February 15, 2018, the Company
released updated Mineral Resources and Mineral Reserves effective
January 1, 2018, including updated
Mineral Resources for the La Arena II project and increased Mineral
Resources and Mineral Reserves at Shahuindo from discoveries
proximal to the Shahuindo pit. The Company's gold Mineral Reserves
increased 12% year-over-year net of 2017 production and Measured
and Indicated gold Mineral Resources increased 33%
year-over-year.
Joined UN Global Compact & Developing an Indigenous
Peoples Policy – Tahoe announced that it has joined the United
Nations Global Compact (UNGC), the world's largest corporate
sustainability initiative during Q1 2018. As an official
participant of the UNGC, Tahoe joins other international
businesses, including a number of industry-leading mining
companies, in committing to align its strategies and operations
with the ten principles of the UNGC on human rights, labor,
environment and anti-corruption. Tahoe also announced its intention
to develop a comprehensive Indigenous Peoples Policy during 2018
which is currently underway.
La Arena Strike Update:
The Company first reported on the ongoing labor strike at its La
Arena mine in Peru on April 22nd. As a reminder, Tahoe Peru is currently in an active collective
bargaining period with the La Arena Union which occurs annually.
The Union represents approximately 65% of an almost 700 person
workforce at La Arena. The Company recently paid the workers its
annual profit sharing as defined by Peruvian Labor Law. Profit
sharing is not part of the collective bargaining agreement, but is
applicable to all mines in Peru as
defined by regulatory requirements. However, the La Arena Union has
delayed the collective bargaining process by requesting that they
be provided a guarantee payment rather than actual profit sharing
as established in the Labor Law.
The Ministry of Labor has formally declared the strike illegal.
As a result, the Company is not paying employees who do not report
for work, and the Company believes it is now legally within its
rights to terminate those employees on strike.
Subsequent to the Union strike, certain community members of
Caserio La Arena also voiced complaints and temporarily obstructed
the primary access gate to the mine. These community members have
made additional demands above the increased profit sharing issue
raised by the La Arena Union.
Specifically, these La Arena community members are seeking
additional work for their general contractor, Golden. The current
scope of work was agreed to after a joint review by Tahoe Peru and the community in Q4 2017 which
resulted in Tahoe Peru awarding
Golden a unique civil works agreement that directly, and
significantly, benefits the La Arena community. There are
limited additional opportunities for work that have not already
been assigned to other contractors.
The Company has taken appropriate steps to minimize the impact
of the strike on operations. Leaching and processing operations
have been maintained at capacity throughout the strike while mining
operations have been intermittent.
The Company is in active dialogue with the La Arena Union and
the applicable Caserio La Arena community members, and is looking
forward to achieving a solution in the near-term. However, the
Company is prepared to take the time necessary to ensure continued,
long-term viability of operations for the benefit of all of our
stakeholders, including our employees and the communities in which
we operate. The Company will provide notice once an agreement is
reached.
Guatemala Update:
Update on Escobal Mining License and Export Credential –
On July 5, 2017, the Company was
notified that the Supreme Court of Guatemala issued a provisional decision in
respect of the action against the Guatemalan Ministry of Energy and
Mines ("MEM") that suspended the Escobal mining license of the
local subsidiary, Minera San Rafael
("MSR"), until the underlying civil claim was fully heard on the
merits. On September 10, 2017, the
Supreme Court issued a definitive decision on the merits of the
underlying claim and reinstated Escobal's mining license. The
ruling allowed Escobal to restart operations immediately and to
continue to operate during consultation. The ruling also ordered
MEM to consult with the Xinka indigenous communities within a
certain geographic area within 12 months. CALAS, a Guatemalan
anti-development group, and other interested parties appealed the
Supreme Court's decision reinstating the Escobal license to the
Constitutional Court, which heard the matter on October 25th, 2017. The Constitutional Court was
expected to rule on the appeals before the end of 2017, but has not
yet ruled. Given the delay, we cannot predict when the
Constitutional Court will rule on the issue of the Escobal license
suspension.
However, on March 8, 2018, the
Constitutional Court requested that additional information in the
case be provided by certain third parties, including original
copies of documents submitted in July
2017, as well as an anthropological study of the surrounding
communities to establish the current populations of indigenous
people in San Rafael las Flores and several surrounding
communities, a third-party review of the Escobal Environmental
Impact Study and the mitigation measures required by the study, and
a third-party review of the Ministry of Energy and Mines'
consultation process that led to the initial mining license being
granted in 2013. All requested information was provided to the
Constitutional Court by the third parties on April 10th.
On April 14, 2018, Dina Ochoa was appointed as the new
Constitutional Court President, an appointment which changes
annually. Since her appointment, Magistrate Ochoa has publicly
stated it is her priority to expedite unresolved cases, including
the Escobal license appeal.
In June 2017, the Company filed
its annual request to renew the export credential with MEM.
However, MEM did not renew the credential because its renewal had
become contingent on the Supreme Court's reinstatement of the
Escobal mining license, since a mining license is required in order
for an export credential to be issued. The credential therefore
expired in August 2017. The Company
expects that MEM will renew the export credential in the event of a
positive ruling from the Constitutional Court reinstating the
mining license.
Update on Guatemala Road Block – Since June 7, 2017, a group of protesters near the town
of Casillas has blocked the primary highway that connects
Guatemala City to San Rafael Las
Flores and the Escobal mine. Operations were reduced between June 8 and June 19, 2017 and were
ultimately ceased on July 5, 2017,
following the Supreme Court's provisional decision to suspend the
Escobal mining license while the case against MEM was heard on the
merits.
The roadblock has limited the transport of necessary supplies
and fuel for the purpose of mine maintenance and environmental
mitigation measures while the mine remains closed. While some of
the protestors are residents of Casillas, which is approximately 16
kilometers from the mine, many more are from outside the
municipality. The Company has reason to believe the blockade is
politically motivated and substantially funded by anti-mining
groups.
MSR representatives have continued to engage with community
leaders, indigenous groups, government agencies, and international
mediation experts to positive effect. The Company's efforts aimed
at peacefully resolving the roadblock have made significant headway
in recent weeks and constructive dialogue continues today.
Conference Call
Tahoe's senior management will host a conference call and
webcast to discuss the Q1 2018 results on Thursday, May 3, 2018 at 10:00 a.m. ET (7:00 a.m.
PT). To join the call, please dial:
1-800-319-4610 (toll free from
Canada and the U.S.)
+1-604-638-5340 (from outside Canada and the U.S.)
The webcast will be available on the Company's website at
http://www.tahoeresources.com/investor-relations/, as will a
recording of the call later in the day. Complete financial results
for Q1 2018 including the Company's Management Discussion &
Analysis and other filings will be posted on SEDAR (www.sedar.com)
and EDGAR (www.sec.gov) and on the Company's website.
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.
SELECTED OPERATIONAL RESULTS
Selected quarterly
segmented operational information from continuing operations for Q1
2018 and Q1 2017 was as follows:
|
|
|
Q1 2018/Q1
2017
|
|
Escobal
|
La
Arena
|
Shahuindo
|
Timmins
mines
|
Total
|
Revenues ($
000's)
|
$
|
(7)
|
$
|
64,466
|
$
|
25,124
|
$
|
50,359
|
$
|
139,942
|
|
$
|
113,106
|
$
|
59,035
|
$
|
19,448
|
$
|
59,457
|
$
|
251,046
|
Silver
produced (000's ozs)
|
—
|
6
|
24
|
4
|
34
|
|
5,614
|
8
|
34
|
—
|
5,656
|
Gold produced
(000's ozs)
|
—
|
42
|
18
|
30
|
91
|
|
3
|
53
|
20
|
44
|
119
|
Silver sold
(000's ozs)
|
—
|
11
|
25
|
4
|
39
|
|
5,526
|
8
|
27
|
—
|
5,561
|
Gold sold
(000's ozs)
|
—
|
49
|
19
|
38
|
105
|
|
2
|
49
|
16
|
49
|
116
|
Average realized
price (per oz)
|
|
|
|
|
|
|
Silver
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|
$
|
19.22
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
19.22
|
|
Gold
|
$
|
—
|
$
|
1,319
|
$
|
1,328
|
$
|
1,326
|
$
|
1,323
|
|
$
|
—
|
$
|
1,197
|
$
|
1,208
|
$
|
1,204
|
$
|
1,201
|
Costs per ounce
produced(1)
|
|
|
|
|
|
|
Total cash costs net
of by-product credits silver
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|
$
|
5.72
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
5.72
|
|
Total cash costs net
of by-product credits gold
|
$
|
—
|
$
|
619
|
$
|
743
|
$
|
1,068
|
$
|
793
|
|
$
|
—
|
$
|
513
|
$
|
582
|
$
|
645
|
$
|
574
|
|
All-in sustaining
costs net of by-product credits silver
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|
$
|
8.11
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
8.11
|
|
All-in sustaining
costs net of by-product credits gold
|
$
|
—
|
$
|
857
|
$
|
1,192
|
$
|
1,562
|
$
|
1,158
|
|
$
|
—
|
$
|
683
|
$
|
870
|
$
|
1,070
|
$
|
860
|
Capital
Expenditures
|
|
|
|
|
|
|
Sustaining Capital ($
000's)
|
$
|
1,464
|
$
|
6,201
|
$
|
5,077
|
$
|
11,290
|
$
|
22,569
|
|
$
|
9,916
|
$
|
5,905
|
$
|
2,652
|
$
|
14,586
|
$
|
17,254
|
|
Non-Sustaining
Capital ($ 000's)
|
$
|
—
|
$
|
—
|
$
|
20,258
|
$
|
16,202
|
$
|
36,460
|
|
$
|
—
|
$
|
—
|
$
|
5,667
|
$
|
9,829
|
$
|
15,496
|
(1)
|
Non-GAAP financial
measures are described in the "Cautionary Note on Non-GAAP
Financial Measures" section of this press release.
|
(2)
|
Numbers may not
calculate due to rounding.
|
CAUTIONARY NOTE ON NON-GAAP FINANCIAL MEASURES
The Company has included certain non-GAAP financial measures
throughout this document which include total cash costs, all-in
sustaining costs per silver and per gold ounce ("all-in sustaining
costs"), adjusted earnings, adjusted earnings per share, and cash
provided by operating activities before changes in working capital.
These measures are not defined under IFRS and should not be
considered in isolation. The Company's La Arena, Shahuindo and
Timmins mines primarily produce gold with other metals (primarily
silver), produced simultaneously in the mining process, the value
of which represents a small percentage of the Company's revenue
from these mines and is therefore considered "by-product". The
Company's Escobal mine primarily produces silver in concentrates
with other metals (gold, lead and zinc), produced simultaneously in
the mining process, the value of which represents a small
percentage of the Company's revenue from Escobal and is therefore
considered "by-product". The Company believes these measures may
provide investors and analysts with useful information about the
Company's underlying earnings, cash costs of operations, the impact
of by-product credits on the Company's cost structure and its
ability to generate cash flow, as well as providing a meaningful
comparison to other mining companies. Accordingly, these measures
are intended to provide additional information and should not be
substituted for GAAP measures. These non-GAAP financial measures
may be calculated differently by other companies depending on the
underlying accounting principles and policies applied.
The Company also reports total operating costs (cost of sales)
per ounce. The Company believes that this metric is important in
assessing the performance of each of the Company's sold metals and
as a meaningful GAAP-based comparison to other mining companies.
Total operating costs (cost of sales) per ounce sold is calculated
by dividing the total operating costs by gold ounces sold. Total
operating costs (cost of sales) includes production costs,
depreciation and depletion and royalties. The reconciliation of
total operating costs (cost of sales) to total cash costs is
included in the total cash cost and total production cost tables
below.
Consolidated adjusted earnings and consolidated adjusted
earnings per share
The Company has adopted the reporting of consolidated adjusted
earnings ("adjusted earnings") and consolidated adjusted earnings
per share ("adjusted earnings per share") as non-GAAP measures of a
precious metals mining company's operating performance. These
measures have no standardized meaning and the Company's
presentation of adjusted measures are not meant to be substituted
for GAAP measures of consolidated earnings or consolidated earnings
per share and should be read in conjunction with such GAAP
measures. Adjusted earnings and adjusted earnings per share are
calculated as earnings excluding i) non-cash impairment losses and
reversals on mineral interests and other assets, ii) unrealized
foreign exchange gains or losses related to the revaluation of
deferred income tax assets and liabilities on non-monetary items,
iii) unrealized foreign exchange gains or losses related to other
items, iv) unrealized gains or losses on derivatives other than
provisionally priced trade receivables, v) gains or losses on sale
of assets and the related tax impact of these adjustments
calculated at the statutory effective rate for the same
jurisdiction as the adjustment. Non-recurring adjustments from
unusual events or circumstances are reviewed periodically based on
materiality and the nature of the event or circumstance.
The Company calculates adjusted earnings and adjusted earnings
per share on a consolidated basis.
|
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
Q1 2017
|
Earnings
(loss)
|
$
|
(6,862)
|
$
|
74,697
|
|
Unrealized foreign
exchange loss (gain)
|
(346)
|
372
|
Adjusted earnings
(loss)
|
$
|
(7,208)
|
$
|
75,069
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
Basic
(000's)
|
313,193
|
311,948
|
|
Diluted
(000's)
|
313,193
|
312,025
|
Adjusted earnings
(loss) per share
|
|
|
|
Basic
|
$
|
(0.02)
|
$
|
0.24
|
|
Diluted
|
$
|
(0.02)
|
$
|
0.24
|
Total cash costs before and net of by-product credits
The Company reports total cash costs on a silver ounce and a
gold ounce produced basis for the Escobal mine and the La Arena,
Shahuindo and Timmins mines, respectively. The Company follows the
recommendation of the cost standard as endorsed by the Silver
Institute ("The Institute") for the reporting of total cash costs
(silver) and the generally accepted standard of reporting total
cash costs (gold) by precious metal mining companies. The Institute
is a nonprofit international association with membership from
across the silver industry and serves as the industry's voice in
increasing public understanding of the many uses and values of
silver. This remains the generally accepted standard for reporting
cash costs of silver production by silver mining companies. The
Company believes that these generally accepted industry measures
are realistic indicators of operating performance and are useful in
performing year over year comparisons. However, these non-GAAP
measures should be considered together with other data prepared in
accordance with IFRS, and these measures, taken alone, are not
necessarily indicative of operating costs or cash flow measures
prepared in accordance with IFRS. Total cash costs are
divided by the number of silver ounces contained in concentrate or
gold ounces recovered from the leach pads to calculate per ounce
figures. When deriving the total cash costs associated with an
ounce of silver or gold, the Company deducts by-product credits
from sales which are incidental to producing silver and gold.
Total cash costs per ounce of produced silver net of by-product
credits incorporate all production costs, including adjustments to
inventory carrying values, adjusted for changes in estimates in
reclamation which are non-cash in nature, and include by-product
gold, lead and zinc credits, and treatment and refining charges
included within revenue.
In addition to conventional measures, the Company assesses this
per ounce measure in a manner that isolates the impacts of silver
production volumes, the by-product credits, and operating costs
fluctuations such that the non-controllable and controllable
variability is independently addressed. The Company uses total cash
costs per ounce of produced silver net of by-product credits to
monitor its operating performance internally, including operating
cash costs, as well as in its assessment of potential development
projects and acquisition targets. The Company believes this measure
provides investors and analysts with useful information about the
Company's underlying cash costs of operations and the impact of
by-product credits on the Company's cost structure and is a
relevant metric used to understand the Company's operating
profitability and ability to generate cash flow. When deriving the
production costs associated with an ounce of silver, the Company
includes by-product credits as the Company considers that the cost
to produce the silver is reduced as a result of the by-product
sales incidental to the silver production process, thereby allowing
the Company's management and other stakeholders to assess the net
costs of silver production.
Total cash costs (silver)
Total cash costs per ounce of produced
silver, net of by-product credits
|
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
Q1 2017
|
Total operating costs
(cost of sales)(1)
|
$
|
—
|
$
|
53,487
|
|
Depreciation and
depletion
|
—
|
(14,601)
|
|
Change in product
inventory
|
—
|
140
|
|
Treatment and
refining charges
|
—
|
9,271
|
Total cash costs
before by-product credits
|
$
|
—
|
$
|
48,297
|
|
By-product
credits(2)
|
|
(16,151)
|
Total cash costs
net of by-product credits
|
$
|
—
|
$
|
32,146
|
Silver ounces sold in
concentrate (000's)
|
—
|
5,526
|
Silver ounces
produced in concentrate (000's)
|
—
|
5,614
|
Total operating
costs (cost of sales) per ounce sold
|
$
|
—
|
$
|
9.68
|
Total cash costs
per ounce produced before by-product credits
|
$
|
—
|
$
|
8.60
|
Total cash costs
per ounce produced net of by-product credits
|
$
|
—
|
$
|
5.73
|
|
|
(1)
|
Total operating costs
(cost of sales) includes production costs, depreciation and
depletion and royalties.
|
(2)
|
Gold, lead and zinc
by-product credits are calculated as follows:
|
|
|
|
|
Q1
2018
|
Q1 2017
|
|
Quantity
|
Unit
Price
|
Total
Credit
|
Credit per
ounce
|
Quantity
|
Unit Price
|
Total
Credit
|
Credit per
ounce
|
Gold
Ounces
|
—
|
—
|
—
|
—
|
1,935
|
$1,309
|
$2,534
|
$0.45
|
Lead
Tonnes
|
—
|
—
|
—
|
—
|
2,059
|
$2,588
|
$5,328
|
$0.95
|
Zinc
Tonnes
|
—
|
—
|
—
|
—
|
2,801
|
$2,960
|
$8,289
|
$1.48
|
|
(3)
Numbers in tables may not calculate due to rounding.
|
Total cash costs (gold)
Total cash costs per ounce of produced gold, net of
by-product credits
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
|
La
Arena
|
Shahuindo
|
Timmins
mines
|
Total
|
Total operating costs
(cost of sales)(1)
|
$
|
43,571
|
$
|
20,453
|
$
|
50,794
|
$
|
114,818
|
|
Depreciation and
depletion
|
(14,406)
|
(5,858)
|
(15,996)
|
(36,260)
|
|
Change in product
inventory
|
(2,937)
|
(687)
|
(2,535)
|
(6,159)
|
|
Smelting and refining
charges
|
206
|
82
|
29
|
317
|
Total cash costs
before by-product credits
|
26,434
|
13,990
|
32,292
|
72,716
|
|
Silver
credit(2)
|
(178)
|
(410)
|
(84)
|
(672)
|
Total cash costs
net of by-product credits
|
26,256
|
13,580
|
32,208
|
72,044
|
Gold ounces sold
(000's)
|
48.8
|
18.6
|
38.0
|
105.4
|
Gold ounces
produced (000's)
|
42.4
|
18.3
|
30.2
|
90.9
|
Total operating
costs (cost of sales) per ounce sold
|
$
|
893
|
$
|
1,099
|
$
|
1,337
|
$
|
1,089
|
Total cash costs
per ounce produced before by-product credits
|
$
|
623
|
$
|
766
|
$
|
1,071
|
$
|
800
|
Total cash costs
per ounce produced net of by-product
credits(3)
|
$
|
619
|
$
|
743
|
$
|
1,068
|
$
|
793
|
|
|
(1)
|
Total operating costs
(cost of sales) includes production costs, depreciation and
depletion and royalties
|
(2)
|
Consolidated silver
by-product credits are calculated as follows:
|
|
|
|
|
|
Q1
2018
|
|
|
|
Quantity
|
|
Unit
Price
|
|
Total
Credit
|
|
Credit per
ounce
|
|
Silver Ounces
(000's)
|
|
39,244
|
|
$16.72
|
|
$656
|
|
$7.22
|
(3)
|
Numbers in table may
not calculate due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
$ thousands unless
otherwise indicated
|
Q1 2017
|
|
La
Arena
|
Shahuindo
|
Timmins
mines
|
Total
|
Total operating costs
(cost of sales)(1)
|
$
|
31,575
|
$
|
17,395
|
$
|
44,421
|
$
|
93,391
|
|
Depreciation and
depletion
|
(5,968)
|
(6,104)
|
(15,168)
|
(27,240)
|
|
Change in product
inventory
|
1,374
|
553
|
(904)
|
1,023
|
|
Smelting and refining
charges
|
317
|
89
|
58
|
464
|
Total cash costs
before by-product credits
|
27,298
|
11,933
|
28,407
|
67,638
|
|
Silver
credit(2)
|
(131)
|
(469)
|
(103)
|
(703)
|
Total cash costs
net of by-product credits
|
27,167
|
11,464
|
28,304
|
66,935
|
Gold ounces sold
(000's)
|
48.9
|
15.7
|
49.4
|
114.0
|
Gold ounces
produced (000's)
|
53.0
|
19.7
|
43.9
|
116.6
|
Total operating
costs (cost of sales) per ounce sold
|
$
|
646
|
$
|
1,108
|
$
|
899
|
$
|
819
|
Total cash costs
per ounce produced before by-product credits
|
$
|
515
|
$
|
606
|
$
|
647
|
$
|
580
|
Total cash costs
per ounce produced net of by-product credits
|
$
|
513
|
$
|
582
|
$
|
645
|
$
|
574
|
|
|
|
|
|
|
|
|
|
(1)
|
Total operating costs
(cost of sales) includes production costs, depreciation and
depletion, royalties and smelting and refining charges.
|
(2)
|
Silver by-product
credits are calculated as follows:
|
|
|
|
|
Q1 2017
|
|
|
|
Quantity
|
|
Unit Price
|
|
Total
Credit
|
|
Credit per
ounce
|
|
Silver
Ounces
|
|
$34,196
|
|
$20.57
|
|
$703
|
|
$6.04
|
(3)
|
Numbers in table may
not calculate due to rounding.
|
All-in sustaining costs
The Company has also adopted the reporting of all-in sustaining
costs as a non-GAAP measure of a precious metals mining company's
ability to generate cash flow from operations. This measure has no
standardized meaning and the Company has utilized an adapted
version of the guidance released by the World Gold Council ("WGC"),
the market development organization for the gold industry. The WGC
is not a regulatory industry organization and does not have the
authority to develop accounting standards or disclosure
requirements.
All-in sustaining costs include total cash costs incurred at the
Company's mining operations, sustaining capital expenditures,
corporate administrative expense, exploration and evaluations
costs, and reclamation and closure accretion. The Company believes
that this measure represents the total costs of producing silver
and gold from current operations, and provides the Company and
other stakeholders of the Company with additional information of
the Company's operational performance and ability to generate cash
flows. AISC, as a key performance measure, allows the Company to
assess its ability to support capital expenditures and to sustain
future production from the generation of operating cash flows. This
information provides management with the ability to more actively
manage capital programs and to make more prudent capital investment
decisions.
All-in sustaining costs (silver)
Total all-in sustaining costs per ounce of produced
silver, net of by-product credits
The following tables reconciling total all-in sustaining costs
per ounce of produced silver, net of by-product credits to the
consolidated financial statements should be read in conjunction
with the prior tables which reconcile total cash costs net of
by-product credits to total operating costs.
|
|
|
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
|
|
Q1 2017
|
Total cash costs
net of by-product credits
|
$
|
—
|
|
|
$
|
32,146
|
|
Sustaining capital
(1)
|
|
—
|
|
|
|
9,916
|
|
Exploration
|
|
—
|
|
|
|
255
|
|
Reclamation cost
accretion
|
|
—
|
|
|
|
61
|
|
General and
administrative expenses
|
|
—
|
|
|
|
3,137
|
All-in sustaining
costs
|
$
|
—
|
|
|
$
|
45,515
|
Silver ounces
produced in concentrate (000's)
|
—
|
|
|
5,614
|
All-in sustaining
costs per ounce produced net of by-product credits
|
$
|
—
|
|
|
$
|
8.11
|
|
|
(1)
|
Sustaining capital
includes underground development and surface sustaining capital
expenditures.
|
(2)
|
Numbers in table may
not calculate due to rounding.
|
All-in sustaining costs (gold)
Total all-in sustaining costs per ounce of produced gold,
net of by-product credits
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
|
La
Arena
|
|
|
Shahuindo
|
|
|
Timmins
mines
|
|
|
Total
|
Total cash costs
net of by-product credits
|
$
|
26,256
|
|
|
$
|
13,580
|
|
|
$
|
32,208
|
|
|
$
|
72,044
|
|
Sustaining
capital
|
|
6,201
|
|
|
|
5,077
|
|
|
|
11,290
|
|
|
|
22,568
|
|
Exploration
|
|
313
|
|
|
|
802
|
|
|
|
1,148
|
|
|
|
2,263
|
|
Reclamation cost
accretion
|
|
345
|
|
|
|
104
|
|
|
|
48
|
|
|
|
497
|
|
General and
administrative expenses
|
|
3,242
|
|
|
|
2,207
|
|
|
|
2,405
|
|
|
|
7,854
|
All-in sustaining
costs
|
$
|
36,357
|
|
|
$
|
21,770
|
|
|
$
|
47,099
|
|
|
$
|
105,226
|
Gold ounces produced
(000's)
|
42.4
|
|
|
18.3
|
|
|
30.2
|
|
|
90.9
|
All-in sustaining
costs per ounce produced net of by-product credits
|
$
|
857
|
|
|
$
|
1,192
|
|
|
$
|
1,562
|
|
|
$
|
1,158
|
(1)
|
Numbers
in table may not calculate due to
rounding.
|
|
|
$ thousands unless
otherwise indicated
|
Q1 2017
|
|
La Arena
|
|
|
Shahuindo
|
|
|
Timmins
mines
|
|
|
Total
|
Total cash costs net
of by-product credits
|
$
|
27,167
|
|
|
$
|
11,464
|
|
|
$
|
28,304
|
|
|
$
|
66,935
|
|
Sustaining
capital
|
|
5,905
|
|
|
|
2,652
|
|
|
|
14,586
|
|
|
|
23,143
|
|
Exploration
|
|
74
|
|
|
|
1,001
|
|
|
|
2,026
|
|
|
|
3,101
|
|
Reclamation cost
accretion
|
|
351
|
|
|
|
210
|
|
|
|
23
|
|
|
|
584
|
|
General and
administrative expenses
|
|
2,679
|
|
|
|
1,819
|
|
|
|
2,031
|
|
|
|
6,529
|
All-in sustaining
costs
|
$
|
36,176
|
|
|
$
|
17,146
|
|
|
$
|
46,970
|
|
|
$
|
100,292
|
Gold ounces produced
in doré (000's)
|
53.0
|
|
|
19.7
|
|
|
43.9
|
|
|
116.6
|
All-in sustaining
costs per ounce produced net of by-product credits
|
$
|
683
|
|
|
$
|
870
|
|
|
$
|
1,070
|
|
|
$
|
860
|
(1)
|
Numbers in table may
not calculate due to
rounding.
|
The reconciliation which formed the basis for the ranges in
the 2018 total cash cost and all-in sustaining cost guidance is as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
Total cash
costs
|
|
La
Arena
|
|
|
Shahuindo
|
|
|
Timmins
Mines
|
|
|
Gold
|
Production
costs
|
$
|
115,000
|
|
$
|
70,000
|
|
$
|
140,000
|
|
$
|
325,000
|
Treatment and
refining charges
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Total cash costs
before by-product credits
|
$
|
115,000
|
|
$
|
70,000
|
|
$
|
140,000
|
|
$
|
325,000
|
|
By-product
credits
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Total cash costs net
of by-product credits
|
$
|
115,000
|
|
$
|
70,000
|
|
$
|
140,000
|
|
$
|
325,000
|
|
|
|
|
|
|
|
|
|
Gold ounces produced
in doré (000's)
|
|
170
|
|
|
90
|
|
|
175
|
|
|
435
|
Total cash costs
per ounce before by-product credits
|
$
|
676
|
|
$
|
778
|
|
$
|
800
|
|
$
|
747
|
Total cash costs
per ounce net of by-product credits
|
$
|
676
|
|
$
|
778
|
|
$
|
800
|
|
$
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All-in sustaining
costs
|
|
La
Arena
|
|
|
Shahuindo
|
|
|
Timmins
|
|
|
Gold
|
Total cash costs net
of by-product credits
|
$
|
115,000
|
|
$
|
70,000
|
|
$
|
140,000
|
|
$
|
325,000
|
Sustaining
capital
|
|
35,000
|
|
|
15,000
|
|
|
45,000
|
|
|
95,000
|
Exploration
|
|
—
|
|
|
—
|
|
|
4,500
|
|
|
4,500
|
Reclamation cost
accretion
|
|
1,000
|
|
|
1,000
|
|
|
1,000
|
|
|
3,000
|
General and
administrative expenses
|
|
12,000
|
|
|
9,000
|
|
|
9,000
|
|
|
30,000
|
All-in sustaining
costs
|
$
|
163,000
|
|
$
|
95,000
|
|
$
|
199,500
|
|
$
|
457,500
|
|
|
|
|
|
|
|
|
|
Gold ounces produced
in doré (000's)
|
|
170
|
|
|
90
|
|
|
175
|
|
|
435
|
All-in sustaining
costs per ounce produced
net of by-product credits
|
$
|
959
|
|
$
|
1,056
|
|
$
|
1,140
|
|
$
|
1,052
|
Cash provided by operating activities before changes in
working capital
Cash provided by operating activities before changes in working
capital represents the cash flows generated by operating activities
after adjusting for interest expense, income tax expense and
financing fees as well as items not involving cash but before
changes in working capital. Net cash provided by operating
activities represents the cash flows generating by operating
activities after changes in working capital and income taxes paid.
Management believes that these measures provide useful information
to investors to evaluate the Company's ability to generate cash
flows from its mining operations.
The non-GAAP measures described above do not have standardized
meanings prescribed by IFRS. As such, there are likely to be
differences in the method of computation when compared to similar
measures presented by other reporting issuers.
|
|
|
|
|
$ thousands unless
otherwise indicated
|
Q1
2018
|
|
|
Q1 2017
|
Cash provided by
operating activities before changes in working
capital(1)
|
$
|
38,509
|
|
|
$
|
132,851
|
Net cash provided
by operating activities(1)
|
$
|
22,147
|
|
|
$
|
78,575
|
Basic weighted
average common shares outstanding
|
313,193
|
|
|
311,948
|
(1)
|
Refer to the
condensed interim consolidated statements of cash flows in the
Company's interim financial statements for a detailed
reconciliation from earnings and total comprehensive income to cash
provided by operating activities before changes in working capital
and net cash provided by operating activities.
|
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This press release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the US Exchange Act, the United
States Private Securities Litigation Reform Act of 1995, or in
releases made by the United States Securities and Exchange
Commission, all as may be amended from time to time, and
"forward-looking information" under the provisions of applicable
Canadian securities legislation, concerning the business,
operations and financial performance and condition of the Company.
All statements, other than statements of historical fact, are
forward-looking statements. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "guidance",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"believes", or variations or comparable language of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements include, but are not limited to,
statements related to the following: in regards to the status of
the appeals to the Guatemalan Constitutional Court (i) of the
decision by the Supreme Court of Guatemala ordering MEM to conduct consultation
with indigenous populations in certain designated locations in and
around the Escobal Mine, (ii) of the decision by the Supreme Court
of Guatemala reinstating the
Company's mining license in respect of the Escobal mine, and (iii)
relating to Escobal's export credential, the timing for such
appeals to be decided and the likelihood of adverse decisions by
the Constitutional Court; the timing and results of other court
proceedings; the timing and likelihood of resolving the road
blockage affecting the Escobal mine; the timing and likelihood of
resolving the La Arena strike; timing and possible outcome of
pending litigation; the future price of gold, silver, copper, lead
and zinc, the estimation of Mineral Reserves and Mineral Resources,
the realization of Mineral Reserve estimates; production and cost
targets for the Company's gold operations in 2018; the expectation
of meeting production targets; growing gold production to
approximately one half million ounces in 2019; the timing and cost
of the overall expansion at Shahuindo, including the expansion of
the adsorption, desorption and refining (ADR) plant, the power
transmission line and substation, leach pad 2B and associated ancillary projects, the design,
procurement, construction and commissioning of the 24,000 tpd
crushing and agglomeration circuit at Shahuindo, as well as the
expansion of the Shahuindo mine to a production capacity of 36,000
tpd, with construction expected to be completed early in Q4 2018
and commissioning to be completed by year-end; the estimated cost
and timing of completion of the Bell Creek shaft project and
tailings pond expansion, with construction expected to be completed
in early Q4 2018; care and maintenance plans at Escobal; providing
further updates to guidance when additional information regarding
the Escobal license is available; expected working capital
requirements; and the expected development of a comprehensive
Indigenous Peoples Policy during 2018.
Forward-looking statements are based on the reasonable
assumptions, estimates, analyses and opinions of management made in
light of its experience and its perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, but which
may prove to be incorrect. Management believes that the assumptions
and expectations reflected in such forward-looking statements are
reasonable. Assumptions have been made regarding, among other
things: the Company's performance and ability to operate and
implement operational improvements at the Escobal, La Arena,
Shahuindo and Timmins Mines; studies
and development efforts on the La Arena II deposit; the Company's
ability to carry on exploration and development activities,
including land acquisition and construction; the availability and
sufficiency of power and water for operations; the timely receipt
and renewal of permits and other approvals; the successful outcomes
of consultations with indigenous populations; the price of silver,
gold and other metals; prices for key mining supplies, including
labor costs and consumables, remaining consistent with the
Company's current expectations; production meeting expectations and
being consistent with estimates; plant, equipment and processes
operating as anticipated; there being no material variations in the
current tax and regulatory environment; the Company's ability to
operate in a safe, efficient and effective manner; the exchange
rates among the Canadian dollar, Guatemalan quetzal, Peruvian sol
and the USD remaining consistent with current levels; the ability
to resolve the protests and road blockages of the Escobal Mine; the
timing and amount of foregone taxes and royalties; the timing and
likelihood of further workforce reductions; the timing and possible
outcome of the pending appeal with the Constitutional Court; the
timing and ability of the Company to resume operations in the event
the suspension of the mining license to Minera San Rafael for the Escobal Mine is lifted
and all licenses, permits and credentials affecting the operation
of the Company's mines, including the Escobal Mine, are renewed or
re-issued and all roadblocks are resolved, and relationships with
the Company's partners, including employees, vendors and community
populations are maintained or effectively managed; the Company's
ability to obtain financing as and when required and on reasonable
terms; and the Company's ability to continue to comply with the
terms of the credit agreements with its lenders. Readers are
cautioned that the foregoing list is not exhaustive of all factors
and assumptions which may have been used.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause actual
results to be materially different from those expressed or implied
by such forward-looking statements. Such risks, uncertainties and
other factors include but are not limited to: the fluctuation of
the price of silver and gold; opposition to development and mining
operations by one or more groups of indigenous people; actions that
impede or prevent the operations of the Company's mines; the
inability to develop and operate the Company's mines; social unrest
and political or economic instability and uncertainties in the
jurisdictions in which the Company operates; the timing and ability
to maintain and, where necessary, obtain necessary permits and
licenses; changes in national and local government legislation,
taxation and controls or regulations; environmental and other
governmental regulation compliance; un-appealable judicial
decisions; the uncertainty in the estimation of Mineral Resources
and Mineral Reserves; fluctuations in currency exchange rates;
infrastructure risks, including access to roads, water and power;
and the timing and possible outcome of pending or threatened
litigation and the risk of unexpected litigation. For a more
detailed discussion of risks relevant to the Company, see
"Description of Tahoe's Business - Risk Factors Relating to Tahoe's
Business" and "- Risk Factors Relating to Tahoe's Shares" in the
Company's Annual Information Form and Form 40-F, available on SEDAR
at www.sedar.com, on EDGAR at www.sec.gov or on the Company's
website at www.tahoeresources.com.
Although management has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such forward-looking
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. Forward-looking statements are made as
of the date hereof and, accordingly, are subject to change after
such date. Except as otherwise indicated by the Company, these
statements do not reflect the potential impact of any non-recurring
or other special items or of any disposition, monetization, merger,
acquisition, other business combination or other transaction that
may be announced or that may occur after the date hereof.
Forward-looking statements are provided for the purpose of
providing information about management's current expectations and
plans and allowing investors and others to get a better
understanding of the Company's operating environment. The Company
does not intend or undertake to publicly update any forward-looking
statements that are included in this document, whether as a result
of new information, future events or otherwise, except as, and to
the extent required by, applicable securities laws.
CAUTIONARY NOTE TO INVESTORS IN THE
UNITED STATES REGARDING RESERVES AND RESOURCES
The Mineral Resource and Mineral Reserve estimates contained in
this press release have been prepared in accordance with the
requirements of the securities laws in effect in Canada, which differ from the requirements of
United States securities laws and
use terms that are not recognized by the United States Securities
and Exchange Commission ("SEC"). Canadian reporting requirements
for disclosure of mineral properties are governed by NI 43-101. The
definitions used in NI 43-101 are incorporated by reference from
the CIM Definition Standards adopted by CIM Council on May 10, 2014 (the "CIM Definition Standards").
U.S. reporting requirements are governed by the SEC Industry Guide
7 ("Industry Guide 7") under the United States Securities Act of
1933, as amended. These reporting standards have similar goals in
terms of conveying an appropriate level of confidence in the
disclosures being reported, but embody difference approaches and
definitions. For example, the terms "Mineral Reserve", "Proven
Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining
terms as defined in in NI 43-101, and these definitions differ from
the definitions in Industry Guide 7. Under Industry Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves and the primary environmental analysis or report
must be filed with the appropriate governmental authority. Further,
under Industry Guide 7, mineralization may not be classified as
"reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve determination is made.
While the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
defined in and required to be disclosed by NI 43-101, these terms
are not defined terms under Industry Guide 7 and are normally not
permitted to be used in reports and registration statements filed
with the SEC. United States
readers are cautioned not to assume that any part or all of mineral
deposits in these categories will ever be converted into reserves.
In addition, "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. A significant amount of
exploration must be completed in order to determine whether an
Inferred Mineral Resource may be upgraded to a higher category.
Under Canadian regulations, estimates of Inferred Mineral Resources
may not form the basis of feasibility or pre-feasibility studies,
except in rare cases. United
States readers are cautioned not to assume that all or any
part of an Inferred Mineral Resource exists or is economically or
legally mineable. Disclosure of "contained ounces" in a resource is
permitted disclosure under Canadian regulations if such disclosure
includes the grade or quality and the quantity for each category of
Mineral Resource and Mineral Reserve; however, the SEC normally
only permits issuers to report mineralization that does not
constitute "reserves" by SEC standards as in place tonnage and
grade without reference to unit measures.
Accordingly, information contained in this press release
containing descriptions of the Tahoe's mineral deposits may not be
comparable to similar information made public by United States companies subject to the
reporting and disclosure requirements under the United States federal securities laws and
the rules and regulations thereunder.
SELECTED QUARTERLY CONSOLIDATED FINANCIAL RESULTS
Selected quarterly consolidated financial information from
continuing operations is as follows:
|
|
|
|
|
|
$ thousands unless
otherwise indicated
|
|
Q1
2018
|
|
|
Q1 2017
|
Metal
Sold
|
|
|
|
|
|
|
Silver (000's
ozs)
|
|
39.2
|
|
|
5,561
|
|
Gold (000's
ozs)
|
|
105.4
|
|
|
115.9
|
|
Lead (000's
t)
|
|
—
|
|
|
2.2
|
|
Zinc (000's
t)
|
|
—
|
|
|
2.8
|
Realized
Price
|
|
|
|
|
|
|
Silver in concentrate
(per oz)
|
$
|
—
|
|
$
|
19.22
|
|
Gold in doré (per
oz)
|
$
|
1,323
|
|
$
|
1,201
|
|
Lead (per
t)
|
$
|
—
|
|
$
|
2,588
|
|
Zinc (per
t)
|
$
|
—
|
|
$
|
2,960
|
LBMA/LME
Price(1)
|
|
|
|
|
|
|
Silver (per
oz)
|
$
|
16.77
|
|
$
|
17.42
|
|
Gold (per
oz)
|
$
|
1,330
|
|
$
|
1,219
|
|
Lead (per
t)
|
$
|
2,523
|
|
$
|
2,278
|
|
Zinc (per
t)
|
$
|
3,421
|
|
$
|
2,780
|
Revenues
|
$
|
139,942
|
|
$
|
251,046
|
Total operating
costs
|
$
|
125,946
|
|
$
|
146,878
|
Earnings from
operations
|
$
|
13,996
|
|
$
|
88,283
|
Earnings
(loss)
|
$
|
(6,862)
|
|
$
|
74,697
|
Earnings (loss)
per common share
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
$
|
0.24
|
Diluted
|
$
|
(0.02)
|
|
$
|
0.24
|
Adjusted earnings
(loss)(2)
|
$
|
(7,208)
|
|
$
|
75,069
|
Adjusted earnings
(loss) per common share(2)
|
|
|
|
|
|
Basic
|
$
|
(0.02)
|
|
$
|
0.24
|
Diluted
|
$
|
(0.02)
|
|
$
|
0.24
|
Weighted average
shares outstanding - Basic
|
|
313,193
|
|
|
311,948
|
Weighted average
shares outstanding - Diluted
|
|
313,193
|
|
|
312,025
|
Dividends
paid
|
$
|
—
|
|
$
|
18,695
|
Cash flow provided
by operating activities
|
$
|
22,147
|
|
$
|
78,575
|
Cash flow provided
by operating activities before changes in working
capital
|
$
|
38,509
|
|
$
|
132,851
|
Cash and cash
equivalents
|
$
|
53,632
|
|
$
|
175,397
|
Total
assets
|
$
|
3,036,318
|
|
$
|
3,092,942
|
Total long-term
liabilities
|
$
|
293,241
|
|
$
|
340,202
|
Costs per silver
ounce produced(2)
|
|
|
|
|
|
Total cash costs net
of by-product credits
|
$
|
—
|
|
$
|
5.72
|
|
All-in sustaining
costs per silver ounce net of by-product credits
|
$
|
—
|
|
$
|
8.11
|
Costs per gold
ounce produced(2)
|
|
|
|
|
|
Total cash costs net
of by-product credits
|
$
|
793
|
|
$
|
574
|
|
All-in sustaining
costs per gold ounce net of by-product credits
|
$
|
1,158
|
|
$
|
860
|
|
|
(1)
|
London Bullion Market
Association (LBMA)/London Metal Exchange (LME) average closing
prices for each quarter presented.
|
(2)
|
Non-GAAP financial
measures are described in the "Cautionary Note on Non-GAAP
Financial Measures" section of this press release and include a
reconciliation to total operating costs from the Company's interim
financial statements.
|
(3)
|
Numbers may not
calculate due to rounding.
|
View original
content:http://www.prnewswire.com/news-releases/tahoe-reports-q1-2018-financial-results-and-provides-update-on-2018-growth-projects-300641473.html
SOURCE Tahoe Resources Inc.