Tahoe Resources Inc. (THO.TO, TAHO), which fell 3.5% Thursday,
today reported financial results for the quarter ending March 31,
2013, and provided updates regarding its flagship Escobal silver
project in Guatemala and the company's Five Year Plan, which was
updated to reflect royalty and loan repayment.
It said: Projected spending differences are largely due to
timing of Escobal project expenditures and payments. The project
remains on time and on budget. Capital spending projected for 2014
through 2017 is a combination of sustaining capital and the 4,500
tpd expansion project. Assuming $25 per silver ounce; a full draw
on the $50 million credit facility; payment of interest expenses;
and the new 5% NSR mining royalty.
Financial Highlights for the first quarter of 2013 include
(stated in U.S. dollars):
Net earnings/(loss) for the quarter amounted to ($24.9 million)
or ($0.17) per share.
Cash outflow from operating activities amounted to $28.0
Corporate G&A expense amounted to $3.4 million, excluding
non-cash share-based compensation of $1.3 million.
Exploration expenses amounted to $1.3 million.
A project-to-date total of $288.7 million of the $326.6 million
budget has been spent towards construction of the 3,500 tonne per
day (tpd) Escobal project.
Cash and equivalents at quarter-end were $107.2 million.
Escobal Project Update: The construction and underground
development of the Escobal project is continuing on-schedule and on
budget. Engineering, procurement and construction management was at
79% completion and underground development necessary for
commencement of production was at 90% completion as of March 31,
2013. The company completed 1,937 metres of underground development
during the first quarter and 7,144 metres to date.
Mill commissioning is projected to begin in the second half of
2013 with commercial production expected in early 2014. All major
components are in place, and the focus has turned to piping and
electrical systems in the mill, completion of steel erection,
conveyor installation and civil engineering work at the tailings
facility. Dry commissioning of the crusher and milling circuit is
expected to take place in the second quarter.
Underground work has been expanded to primary stope development.
Numerous vein cross-cuts on the 1290 and 1265 levels have been
established, and drilling of the first slot raises and stope
blastholes are underway. Rock conditions in the production areas
are as projected in the model defined in the May, 2012 Preliminary
Economic Analysis (PEA).
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