Clayton saying they will not unless dispute resolvedAnalyst Actions: Credit Suisse Maintains Neutral Rating, $9 TP on Tahoe Resources After Denver Presentation
12:24 PM EDT, 09/26/2017 (MT Newswires) -- Tahoe Resource's CEO Ron Clayton presented at the Denver Gold Forum.
Credit Suisse reports that THO expects guidance for 2019 to increase from 400-450kozs in 2017 to ~500koz, with 32% produced from Timmins, 29% from La Arena and 39% from Shahuindo.
THO reiterated that it expects that most of the increase in gold production will be from its Shahuindo expansion and Bell Creek Shaft projects. At Shahuindo, capex is expected to increase the mining rate to 36ktpd by mid-2018. The 12ktpd crushing and agglomeration circuit is nearly complete and commissioning is expected to commence within a few weeks. Recovery rate is expected to reach ~80%. At Bell Creek, the installation of the shaft is expected to double production and reach 80koz/year in 2020. It has the potential to grow the mine life in excess of 10 years and it is on schedule and budget for completion in mid-2018.
Escobal Update: Tahoe spoke about its negotiations with the protestors at Casillas, stating that its preferred solution is continuing talks and coming to a resolution, rather than taking up the government on the offer of clearing the blockades. THO hopes to have a resolution in the next couple of weeks. The export credential renewal license is still pending (could not be renewed until mining license was renewed). CALAS appealed the Supreme Court's decision to reinstate the license to the Constitutional Court. All appeals are expected to ruled on by year-end.
Maintain Outperform, $9 TP.