Tahoe Resources has provided an update on the construction progress at its Escobal project located in Guatemala. The company has also declared the year-end financial results for December 31, 2011.
Major results for 2011 are:
- The company’s shares on the Toronto Stock Exchange closed the year at CAD$17.68 per share, which is an increase by 20%, regardless of reduced silver price of 11% for 2011.
- Net earnings or loss for 2011 totaled $69.2 million.
- Cash and equivalents at the end of the year were $349.8 million.
- Expenses for operating activities totaled $49.5 million.
- G&A totaled $19.1 million; this comprised $10.7 million for non-cash share-based compensation.
$39.6 million for project development costs were expensed in 2011.
- Capital expenses totaled $43.4 million, comprising plant, property and equipment acquirements.
- In December 2011, the entire project work force was 428 employees, which represent over 95% are Guatemalan.
- The project is continuing on budget and schedule for mill commissioning in the mid-half of 2013 and commercial production in the first quarter of 2014.
Tahoe Resources' President and CEO, Kevin McArthur stated that the development progress on Tahoe’s mine has been quite positive. About 317 million silver ounces can be extracted over the next 18 years. Commercial production is scheduled for early 2014 and the project is completely financed. McArthur added that the company holds surplus funds in case of any unexpected start-up problems.
McArthur further added that over the last year, significant reconnaissance results specify the possibility of mine expansion in the future. In the Q2 of 2011, the company anticipates updating the mineral resource and intends to devise a plan to boost future throughput from the presently planned 3,500 tpd to 5,000 tpd. Furthermore, it is expected that internal cash flow will be used to fund the expansion plan, which will be concluded within the next five years.