Tahoe Resourcesannounced record half-year production of 11.4 million ounces (oz) silver and 167,168 oz gold. The company achieved commercial production for the Phase 1 operation at the Shahuindo gold mine, and the advancement of Phase 2 development at Shahuindo. It also started a new shaft project at the Bell Creek mine in Timmins designed to increase production and significantly extend mine life. In addition, Tahoe Resources also acquired a 2% net smelter return royalty related to production at Bell Creek and signed a letter of intent to acquire the 30% of the Whitney project that Tahoe does not already own. The Whitney project covers nearly 9 km2 of highly prospective property located approximately 4 km from the Bell Creek Mill in Timmins, Ontario.
“We had a very strong first half of 2016, including record performance from Escobal in Guatemala and excellent progress growing gold production in Peru and Canada,” said Kevin McArthur, Tahoe’s executive chairman. “We achieved commercial production at Shahuindo in May and have seen our Peruvian operations perform very well.”
“With the completion of the Lake Shore Gold acquisition, we have added significant gold production in Canada, as well a number of very attractive growth opportunities around the Timmins Camp,” McArthur said. “Given our low-cost operations and higher precious metals prices, we achieved record operating cash flow per share in the first half of the year. Our balance sheet remains strong, which will sustain our dividends program and allow us to execute our growth initiatives at Shahuindo and the Timmins operations.”
Based on operating results during the first six months of 2016, and expectations for the second half of the year, Tahoe Resources expects to achieve the top end of its 2016 guidance for silver production of 18 million to 21 million oz of silver in concentrates. The company’s 2016 gold production guidance remains unchanged at 370,000 oz to 430,000 oz.
Tahoe also announced a number of management changes. Ron Clayton will be promoted from president and COO to president and CEO for Tahoe Resources. He joined Tahoe prior to the company’s IPO in 2010, was instrumental in the design and development of the Escobal mine, and led two successful post-merger integration efforts. As CEO, Clayton will also join the company’s board of directors.
Elizabeth McGregor will become vice president and CFO. Currently the vice president and treasurer, McGregor previously served as the controller of Minera San Rafael in Guatemala. Mark Sadler, currently vice president and CFO, is moving to the position of vice president, project development, where he will continue to direct the metals marketing division. Sadler will also direct the development group responsible for financing and executing new mine projects, namely the La Arena sulfide project in Peru and the Fenn-Gib and other projects in Canada.
Tom Fudge was promoted vice president, operations. He was responsible for the startup of operations and ongoing improvements at the Escobal mine, in addition to providing strong leadership to the Guatemalan division. David Howe, who joins Tahoe as vice president of operations, Guatemala and managing director, Minera San Rafael replaces Fudge in Guatemala. Howe has extensive experience in Latin America, most recently serving as vice president, operations, with Endeavour Silver.
Phil Dalke has been promoted to vice president, Peru operations, and managing director, Rio Alto SAC. He was most recently the operations manager of the Escobal mine in Guatemala and has many years of mining experience in Peru.
Tim Williams, who helped develop developing the La Arena and Shahuindo, has departed as vice president of operations. Peter Van Alphen will serve as vice president, Timmins operations in Ontario. He will be responsible for operations at Bell Creek and Timmins West and for overseeing the growth initiatives at the company’s Timmins mines.