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Tahoe Resources TAHO

"Tahoe Resources Inc is a mining firm. It is engaged in the operation of mineral properties for the mining of precious metals in America."


NYSE:TAHO - Post by User

Comment by xauxag9on Feb 13, 2018 2:35pm
260 Views
Post# 27552478

RE:Bargains!

RE:Bargains!The geo-political risks are very high. Would you ever take your family to Guatemala for a trip ? Of course not, the rule of law is "flexible". Many investors would never touch this company. That's why it trades so low. It could yield a high return but it remains high risk. Even if the mine re-opens, the market value of the mine will always be lower than before because the discount rate used to value the earnings stream will stay jacked higher to reflect the geo-political risk. Discount rates used to evaluate new mining projects in less developed nations have all gone up significantly. Royalty excesses, export controls, expropriations, the list goes on and on.
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