TSX:LSG.DB - Post by User
Post by
redawnlivon Feb 12, 2016 2:05pm
354 Views
Post# 24553405
different view
different view "We cover Tahoe Resources Inc. (Buy, $16.50 TP). It is underpinned by Escobal in Guatemala, which truly is one of the few large, low-cost silver assets out there. Any hallmark for long-term, midtier or large-tier companies is to have a world-class asset as a cornerstone to both furnish and stabilize future cash flow. That certainly typifies Escobal. Tahoe changed its focus somewhat through the acquisition of Rio Alto Mining Ltd. and subsuming gold production out of Peru with La Arena, and now Shahuindo. It certainly has shown some prudence by diversifying jurisdiction but also its commodity base, while adding some growth in production through that. Tahoe is very clear on what the company's goals are through growth and then delivering a dividend paid monthly. If you like where precious metals are going and you like margin underpinned by a world-class asset, Tahoe works really well. . .The move by Tahoe to combine with Lake Shore Gold is certainly consistent with CEO Kevin McArthur's aim to achieve growth by consolidation. The Lake Shore Gold acquisition would seem perfectly timed as that company has matured its operations to deliver lower cost production that would augment Tahoe's production base. Completion of the acquisition would add jurisdictional and asset diversification leading to an overall lower risk profile albeit at a modest level of dilution with Tahoe shareholders owning 74% of the pro-forma company."
....wow a buy at $16.50