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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

Post by xauxag9on Feb 24, 2018 6:37pm
260 Views
Post# 27615628

favorable capital structure for common share investors

favorable capital structure for common share investorsCommon shareholders only have a claim on the corporate assets after all creditors claims have been met. Always keep a sharp eye out for new tranches of debt that give up the hard assets as collateral. You may have a great mining operation but if the juice you pay on the loan is too high and you don't own any of the assets, the risk of common share ownership rises significantly. This risk can be particularly acute in the mining sector when favorable creditor terms are sometimes very onerous in down cycles. It can eliminate the chances of returning any capital to shareholders. When a company has no debt or property liens, the common shareholders own everything. This represents a much more favorable environment for investors. Fortunately, at Tahoe, the common shareholders now have claim to all the assets. Clean as a whistle.
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