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PAN AMERICAN SILVER AND TAHOE RESOURCES CREATE THE WORLD'S PREMIER SILVER MINING COMPANY
NOVEMBER 14, 2018
https://www.tahoeresources.com/English/investors/news-releases/press-release-details/2018/Pan-American-Silver-and-Tahoe-Resources-Create-the-Worlds-Premier-Silver-Mining-Company/default.aspx
* * $TAHO Video Chart 11-14-18 * *
Link to Video - click here to watch the technical chart video
Tahoe Resources Ordi (TAHO)
3.27 ? 1.07 (+48.64%)
Volume: 42,914,796 @ 7:42:58 PM EST
Tahoe Announces Results of Annual General Meeting of Shareholders
VANCOUVER, May 3, 2018 /PRNewswire/ - Tahoe Resources Inc. ("Tahoe") (TSX: THO; NYSE: TAHO) is pleased to announce that the 10 nominees for the board of directors as listed in the Company's 2018 Management Information Circular dated March 9, 2018, have been elected at the Company's Annual General Meeting of shareholders ("AGM") held today in Vancouver.
https://web.tmxmoney.com/article.php?newsid=7754285247981782&qm_symbol=THO
God Bless America
SILVER MINING STOCKS ANALYSIS PART 3 - TAHO RESOURCES
Here seems a nice breakout.
But just what does Tahoe Resources produce ?
I think it's molybdenum etc., etc.
But - Nope - it is Silver primarily (I just here now learnt)
That and 2 a 1/2 percent dividend.
Same chart from a month ago : (on the day of the February 9th LSG news )
Today LSG moving in sympathy with THO
These LSG charts from back on Feb the 9th :
Would be chasing the whole freaking story now though....
Something I hates to do
.
Great signal today! Nice to see a break through of the 200 day moving average on Feburary 23rd and see it act as support today at 12.45! I bought this stock on the Lake shore gold takeover news and I am not sure why this stock doesn't have more attention right now. It's making money every quarter, has a fantastic balance sheet, and if it's able to get Lake Shore for the price they are asking they'll make out like bandits on this deal. The icing on the cake here is if gold can go into a bull market then you'll see this run to $20-30 easily
jsc52033 welcome to Tahoe Resources (THO) -
my friend - it be no surprise to me if
a bidding war for LSG starts -
it still a Au bargain -
its in the richest Au-golden money pit -
in the world -
- God Bless -
Looks like I will be watching this one when it merges
Welcome to Tahoe Resorces (TAHO) -
Its a good hike back UP - some resistance @ 10 - next target 14 - )
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=120655235
- God Bless -
TAHOE RESOURCES AND LAKE SHORE GOLD ANNOUNCE BUSINESS COMBINATION -
http://www.lsgold.com/Investor-Centre/Tahoe---Lake-Shore-Gold-Combination/default.aspx
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=120548744
Lake Shore Gold Corporation (AMEX:LSG) - COMPANY WEBCAST -
http://www.lsgold.com/files/doc_presentations/LSGmarketingPresentation-20150910.pdf
http://www.lsgold.com/Investor-Centre/Press-Releases/Press-Release-Details/2015/Lake-Shore-Gold-Completes-Acquisition-of-Temex-Resources-Corp/default.aspx
http://www.lsgold.com
http://www.tahoeresources.com/news/
Its a good hike back UP -
- God Bless -
Tahoe Resources and Lake Shore Gold Announce Business Combination
Print
Alert
Tahoe Resources Ordinary Shares (Canada) (NYSE:TAHO)
Intraday Stock Chart
Today : Tuesday 9 February 2016
Click Here for more Tahoe Resources Ordinary Shares (Canada) Charts.
VANCOUVER, British Columbia, Feb. 8, 2016 /CNW/ -- Tahoe Resources Inc. ("Tahoe") (TSX, BVL: THO, NYSE: TAHO) and Lake Shore Gold Corp. ("Lake Shore Gold") (TSX: LSG) are pleased to announce that they have entered into a definitive agreement (the "Arrangement Agreement") whereby Tahoe will acquire all of the issued and outstanding shares of Lake Shore Gold (the "Transaction"). Under the terms of the Arrangement Agreement, all of the Lake Shore Gold issued and outstanding common shares will be exchanged on the basis of 0.1467 of a Tahoe common share per each Lake Shore Gold common share (the "Exchange Ratio"). Upon completion of the Transaction, existing Tahoe and Lake Shore Gold shareholders will own approximately 74% and 26% of the pro forma company, respectively, on a fully-diluted in-the-money basis.
New Tahoe Logo
The Exchange Ratio implies a consideration of C$1.71 per Lake Shore Gold common share, based on the closing price of Tahoe common shares on the Toronto Stock Exchange (TSX) on February 5, 2016, representing a 14.8% premium to the closing price of Lake Shore Gold on February 5, 2016 and a 28.6% premium to the closing share of Lake Shore Gold on February 4, 2016. Based on each company's 20-day volume weighted average price on the TSX, the Exchange Ratio implies a premium of 25.7% and 30.4% to Lake Shore Gold common shares for the periods ending February 5, 2016 and February 4, 2016, respectively. The implied equity value (assuming the conversion of in-the-money convertible debentures) is equal to C$945 million.
Lake Shore Gold operates the low-cost Timmins West and Bell Creek mines in Timmins, Ontario, Canada. Together with Tahoe's world class Escobal mine in Guatemala and its low-cost La Arena and Shahuindo mines in Peru, the combined company is firmly established as a premier Americas-based precious metals producer. With a diversified suite of low-cost, highly prospective assets and a quality pipeline of new development opportunities, Tahoe is well positioned to sustain and grow its production base. Further, with zero net debt, sector leading operating margins, and moderate capital requirements, the combined company will continue to generate strong free cash flows. Accordingly, following completion of the Transaction, Tahoe intends to continue its dividend of US$0.02 cents per share per month.
Highlights of the Transaction
Key investment highlights of the pro forma company include:
A leading Americas based precious metals producer: The combined company will have a strong diversified producing platform anchored by the Escobal mine, one of the largest and highest grade silver mines globally, and low-cost growing operations in Peru and Ontario.
Significant low-cost production: 2016 production guidance of 18-21 million ounces (mozs) of silver at total cash costs of US$7.50-US$8.50/oz and all-in sustaining costs (AISC) of US$10.00-US$11.00/oz and 370,000-430,000 ounces of gold at total cash costs of US$675-US$725/oz and AISC of US$950-US$1,000/oz. All operations generate free cash flow in the current commodity price environment.
Low-risk growth: Growth to be driven by the expansion of Shahuindo to 36,000 tpd and the advancement of a number of growth initiatives in Timmins, including the ramp up of the 144 Gap Deposit, extending the Bell Creek mine to depth, and the potential for an open-pit mining operation at the Whitney project.
Exciting exploration potential: Over 3.4 mozs of M&I gold resources and 6 mozs of inferred gold resources across 8 exploration projects in Peru and Canada with strong near-mine potential to add additional gold resources. Large unexplored land packages across all regions.
Strong balance sheet and superior financial performance: Zero net debt, modest capital requirements and strong free cash flow generation from operations provide industry leading financial strength and flexibility.
Kevin McArthur, Executive Chair of Tahoe, said, "The combination with Lake Shore Gold enhances Tahoe's position as the new leader in precious metals by adding another low-cost operation in Timmins, one of the most prolific gold camps in the world. We are impressed by the long-term presence and see tremendous regional opportunities going forward. We look forward to continuing the strong relationships that Lake Shore Gold has fostered in Timmins with local stakeholders. Finally, I am very pleased to welcome Alan Moon, the current Chair of Lake Shore Gold, to our Board of Directors upon completion of the Transaction, as well as Tony Makuch, the current CEO of Lake Shore Gold, to Tahoe's management team as President of Canadian Operations."
Tony Makuch, President and CEO of Lake Shore Gold, stated, "The combination with Tahoe represents a unique opportunity for our shareholders to gain exposure to a high-quality portfolio of long life producing mines with substantial mineral reserves. Today's announcement of an initial resource at our 144 Gap Deposit is a perfect example of the long-term growth potential of our Timmins portfolio. Tahoe's strong balance sheet and superior cash generating capabilities will provide Lake Shore Gold with the financial resources to unlock the enormous growth potential of our asset base."
Benefits to Tahoe Shareholders
Establishes a significant presence in Canada with well-established, low-cost operations, and a talented and focused management team.
Enhanced high-margin gold production with organic growth opportunities.
Strengthens Tahoe's ability to generate strong free cash flow on a per share basis.
Addition of significant exploration potential at existing operations as well as attractive targets in close proximity to established, well-built mining and milling infrastructure.
Positions Tahoe to evaluate further consolidation opportunities in Ontario.
Benefits to Lake Shore Gold Shareholders
Immediate up-front premium while maintaining meaningful equity participation.
Superior financial strength and flexibility to support advancement of Timmins projects.
Exposure to a large, long-life reserve base pro forma through Tahoe's world-class Escobal mine and growing low-cost platform in Peru.
Expands operational capabilities, adding proven expertise in open pit mining.
Access to an attractive dividend policy.
Increased trading liquidity, enhanced value proposition and capital markets profile.
Board of Directors' Recommendations
The Arrangement Agreement has been unanimously approved by the Boards of Directors of Tahoe and Lake Shore Gold, and each board recommends that their respective shareholders vote in favor of the Transaction.
GMP Securities L.P. and BMO Capital Markets have provided opinions to the Board of Directors of Tahoe and to the Lake Shore Gold Special Committee, respectively, stating that, and based upon and subject to the assumptions, limitations, and qualifications set forth therein, the consideration offered pursuant to the Transaction is fair, from a financial point of view, to the Tahoe shareholders and Lake Shore Gold shareholders, respectively.
Transaction Summary
The proposed business combination will be effected by way of a Plan of Arrangement completed under the Canada Business Corporations Act. The Transaction will require approval by 66 2/3 percent of the votes cast by the shareholders of Lake Shore Gold at a special meeting of Lake Shore Gold shareholders. The issuance of Tahoe common shares in connection with the Transaction will require the approval of a simple majority of the shareholders of Tahoe voting at a special meeting. Officers and directors of Lake Shore Gold and Tahoe intend to enter into voting support agreements, pursuant to which they will vote their common shares held in favor of the Transaction. In addition to shareholder and court approvals, the Transaction is subject to applicable regulatory approvals and the satisfaction of certain other closing conditions customary in transactions of this nature.
The Arrangement Agreement includes customary provisions including non-solicitation provisions, a right to match any superior proposal and a C$37.8 million termination fee payable to Tahoe under certain circumstances. A C$20.0 million termination fee is payable to Lake Shore Gold under certain circumstances.
A change of control offer will be made for Lake Shore Gold's outstanding 6.25% convertible senior unsecured debentures (the "Debentures") in accordance with their trust indenture dated September 7, 2012. During the 30 day period following the effective date of the Arrangement Agreement, Debenture holders will receive notice (the "Debenture Change of Control Notice") stating that a change of control has occurred along with an offer to purchase the Debentures at 100% of the principal amount plus accrued and unpaid interest on the date that is 30 business days following delivery of the Debenture Change of Control Notice. As part of the Arrangement Agreement, Lake Shore Gold has agreed not to purchase any of its outstanding securities. Accordingly, Lake Shore Gold is suspending its normal course issuer bid for the Debentures.
Timing
Full details of the Transaction will be included in the management information circulars of Tahoe and Lake Shore Gold and are expected to be mailed to their respective shareholders in early March 2016. It is anticipated that both shareholder meetings and closing of the Transaction will take place in early April 2016.
Advisors and Counsel
GMP Securities L.P. and Canaccord Genuity Corp. acted as financial advisors to Tahoe and McMillan LLP acted as its legal advisor.
BMO Capital Markets acted as financial advisor to Lake Shore Gold. Cassels, Brock & Blackwell LLP acted as Lake Shore Gold's legal advisor.
Conference Call
Tahoe and Lake Shore Gold will host a joint conference call on Monday, February 8, 2016 at 1:30 p.m. Eastern Time, or 10:30 a.m. Pacific, for members of the investment community to discuss the transaction. The call-in details are as follows:
Canada & USA toll-free: 1-800-319-4610
Outside of Canada & USA: 1-604-638-5340
A copy of the merger investor presentation is also available on the Tahoe and Lake Shore Gold investor pages at www.tahoeresourcesinc.com/merger and www.lsgold.com, respectively. An audio recording of the conference call will be made available shortly after the call on the Tahoe and Lake Shore Gold investor pages.
About Tahoe
Tahoe's strategy is to responsibly operate precious metals mines in the Americas and to deliver long-term shareholder value through share price appreciation, shareholder dividends and bottom-line growth. Tahoe is a member of the S&P/TSX Composite and TSX Global Mining indices and the Russell 3000 on the NYSE. Tahoe is listed on the TSX and BVL as THO and on the NYSE as TAHO.
In accordance with IFRS requirements Tahoe is conducting an annual review of the carrying value of its assets, including goodwill, for possible impairment charges in the fourth quarter. The analysis, which is dependent upon various assumptions including metal price forecasts over the remaining life of the assets, is expected to be finalized in Q1 for inclusion in the fourth quarter financial results.
About Lake Shore Gold
Lake Shore Gold is a Canadian-based gold producer with operations based in the Timmins Gold Camp of Northern Ontario. Lake Shore Gold produces gold from two mines, Timmins West and Bell Creek, with material being delivered for processing to the Bell Creek Mill. In addition to current mining and milling operations, Lake Shore Gold also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. Lake Shore Gold's common shares trade on the TSX and NYSE MKT under the symbol LSG.
Qualified Person Statement
The technical and scientific information contained in this news release has been reviewed and approved by Charlie Muerhoff, Tahoe's Vice President Technical Services and Qualified Person as defined by National Instrument 43-101 (NI 43-101) and Eric A. Kallio, P.Geo., Lake Shore Gold's Senior Vice President of Exploration and a Qualified Persons according to the definitions of NI 43-101.
Cautionary Notes
This press release includes certain non-GAAP financial measures throughout this document which include total cash costs and all-in sustaining costs per silver and per gold ounce. These measures are not defined under IFRS and should not be considered in isolation. Further information regarding the use of these measures and quantitative reconciliations from such non GAAP financial measures to the most directly comparable measure presented in each company's financial statements are provided in Tahoe's press release dated January 14, 2016 and are referenced in Lake Shore Gold's press release dated January 8, 2016.
Forward-Looking Statements
This release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as "forward-looking statements"). All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements include, but are not limited to, statements or information related to: the expected benefits of the Transaction and the details related to the expected completion of the Transaction; the Company's dividend policy following completion of the Transaction; 2016 operations outlook and production guidance for both Tahoe and Lake Shore Gold, including estimated unit costs per ounce of silver and gold and estimated capital costs; and the expected change of control offer for the Lake Shore Gold convertible debentures.
Forward-looking statements are based on the reasonable assumptions, estimates, analyses and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Management believes that the assumptions and expectations reflected in such forward-looking statements are reasonable. Assumptions have been made regarding, among other things: obtaining shareholder, regulatory and court approvals, and the timing therefor; the Tahoe and Lake Shore Gold's ability to carry on exploration and development activities, including construction; the timely receipt of required approvals; the price of silver, gold and other metals; prices for key mining supplies, including labor costs and consumables, remaining consistent with the Company's current expectations; production meeting expectations and being consistent with estimates; plant, equipment and processes operating as anticipated; there being no material variations in the current tax and regulatory environment; the Company's ability to operate in a safe, efficient and effective manner; the exchange rates among the Canadian dollar, Guatemalan quetzal, Peruvian nuevo sol and the United States dollar remaining consistent with current levels; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors include but are not limited to: the Company's dependence on the Escobal and La Arena mines; the fluctuation of the price of silver, gold and other metals; changes in national and local government legislation, taxation and controls or regulations; social unrest, and political or economic instability in Guatemala and/or Peru; the availability of additional funding as and when required; the speculative nature of mineral exploration and development; the timing and ability to maintain and, where necessary, obtain necessary permits and licenses; the uncertainty in the estimation of mineral resources and mineral reserves; the uncertainty in geologic, hydrological, metallurgical and geotechnical studies and opinions; infrastructure risks, including access to water and power; the impact of inflation; changes in the administration of governmental regulation, policies and practices; environmental risks and hazards; insurance and uninsured risks; land title risks; risks associated with illegal mining activities by unauthorized individuals on the Company's mining or exploration properties; risks associated with competition; risks associated with currency fluctuations; contractor, labor and employment risks; dependence on key management personnel and executives; the timing and possible outcome of pending or threatened litigation; the risk of unanticipated litigation; risks associated with the repatriation of earnings; risks associated with negative operating cash flow; risks associated with the Company's hedging policies; risks associated with dilution; and risks associated with effecting service of process and enforcing judgments. For a further discussion of risks relevant to the Company, see the Company's Annual Information Form available on SEDAR under the heading "Description of Our Business – Risk Factors".
Although management has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There is no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements, except as, and to the extent required by, applicable securities laws.
For Further Information, Please Contact:
Tahoe Resources Inc.
Ira M. Gostin, Vice President Investor Relations
investors@tahoeresourcesinc.com
Tel: 775-448-5807
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298
Mark Utting
Vice-President, Investor Relations
Lake Shore Gold
(416) 703-6298
Website: www.lsgold.com
Logo - http://photos.prnewswire.com/prnh/20150428/212381LOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/tahoe-resources-and-lake-shore-gold-announce-business-combination-300216456.html
SOURCE Tahoe Resources Inc.
More on Royalty Legislation (Negative)
Tahoe announced that the Guatemalan Congress had passed legislation that would see the net smelter return (NSR) royalty on mining projects increased to 10%.
Analyst Daniel Earle notes that the Guatemalan President, Otto Molina, has approximately two weeks to exercise his veto power to block the legislation before it will become law. Daniel Earle views the proposed fiscal regime as being one of the most punitive in the world
Escobal currently pays a 5.5% royalty (including a 0.5% voluntary royalty to local landowners) – the 7% 'tax' (also an NSR royalty) that the project is subject to would be unaffected, bringing the total royalty burden on the project to an eye-watering 17%
As an exceptionally low-cost operation at the start of its mine life with the highest grades, Daniel Earle believes Escobal can withstand the higher royalty and continue to generate strong free cash flow in the short and mid-term
However, incorporating the royalty our 2015E CFPS decreases by 11%, the change in royalty itself responsible for 11% and the balance from reducing the value of the exploration upside associated with the large (~2,000 sq. km) and prospective land package surrounding Escobal to zero as, on a risk-adjusted basis, Daniel Earle don't see the merit in further exploration in Guatemala outside of Escobal given the odds against finding a deposit that would be economic in the potential new royalty regime
Tahoe's shares closed down 8%, while its precious metals peers traded up 8-10% on average so the stock may be due for somewhat of a rebound
Daniel Earle estimates that the company trades at 1.49x he is maintaining his BUY recommendation, but reducing his target price to $22.00 (from $27.00)
Royalty Legislation a Significant Negative
Daniel Earle released a progress report on the recent legislation made to raise royalties on the precious metal industry.
The Guatemalan Congress passed legislation that would increase royalties on mining projects if enacted:
President Otto Molina must sign off on the legislation for it to become law
The legislation requires a total royalty rate of 10% – 9% to the federal government and 1% to local municipalities
Tahoe currently pays a 5.5% NSR (0.5% being a voluntary royalty to land owners) and a 7% NSR'tax'
Daniel Earle notes that Tahoe Resources CEO Kevin McArthur said, "It is unfortunate that Congress wants to raise royalties on precious metals at a time when the industry is struggling and facing the lowest metals prices in four years. In addition to voluntary royalty payments, the Escobal mine has been supporting a number of national, regional, and local community programs that we would expect the higher royalty payments to fund in the future."
Daniel Earle would go further and suggest that a combined 17% NSR royalty/tax structure would be among the most burdensome anywhere in the mining industry globally. For reference, Argentina's Santa Cruz Province, which Daniel Earle views as one of the most expensive jurisdictions in the world, currently applies royalties of 8% with an additional 35% income tax.
Potential Dividend for THO
Here's some recent equity research I found from analyst Daniel Earle.
With the ramp up of Escobal having exceeded nominal design rates, discussion re Tahoe has turned to the potential dividend, with questions as to its rate, timing and sustainability in the context of a recently-weak silver price
In Daniel Earle's view, it would be an incredible achievement for a single-mine company to institute a significant dividend in the first year of its commercial production – in fact, he cannot recall another example of this in recent history
As to the potential dividend, Ron Clayton, the company's President and COO, suggested at a conference this past September that a potential dividend of $0.04/mth (~2%) could be paid beginning in December or early 2015
The silver price has since declined a little over US$1/oz; however, Daniel Earle views the implied payout ratio as being feasible and broadly in keeping with that suggested previously by the company's CEO, Kevin McArthur
Daniel Earle's forecast production profile suggests that, with all things being equal, we should expect a flat dividend of $0.48/yr through 2016 and modest growth to $0.55/yr by 2018
Up 8 bucks in 2 months. That's pretty good. Now lets see if it breaks through the overhead resistance.
Tahoe Resources Investor Presentation Now Available for On-demand Viewing at RetailInvestorConferences.com
PR Newswire
NEW YORK, Feb. 6, 2012
NEW YORK, Feb. 6, 2012 /PRNewswire/ -- Tahoe Resources (TSX: THO) is pleased to announce that their February 2nd RetailInvestorConferences.com presentation is now available for on-demand viewing.
LINK: www.retailinvestorconferences.com > Click the red "register/ watch event now" button.
Tahoe Resources' presentation will be available 24/7 for 90 days. Investors may download shareholder materials from the "virtual trade booth" for the next three months.
Not bad. Up about $4 - $5 in the past 2 weeks. I can live with that.
Interesting chart. It shows how Tahoe is actually up over the past 2-1/2 months, while SLW, GORO and USSIF are actually under water for the same period.
http://barchart.com/chart.php?sym=THOEF&style=classic&p=DO&d=L&x=40&y=13&size=M&log=0&ed=11%2F16%2F2011&v=1&g=1&late=1&evnt=1&divd=1&o1=SLW&o2=USSIF&o3=GORO&ch1=011&ch1a=&ch1b=&ch1c=&ov1=&ov1a=&ov1b=&ov1c=&ch2=&ch2a=&ch2b=&ch2c=&ov2=&ov2a=&ov2b=&ov2c=&submitted=1&fpage=&txtDate=11%2F16%2F2011#jump
it's certainly understandable
==
4kids
all jmo
You notice more and more of the miners are going the divvie route, and the buyback route. It will help fend off some of the shorters.
added tho about a week ago for the div
very happy camper ..
THO ex-Dividend for $0.15 on 9/28/2011
Announce Date: 8/10/2011
Record Date: 9/30/2011
Pay Date: 10/14/2011
==
4kids
all jmo
Looking at the chart over the past several months, Tahoe has been swinging up and down by a couple of bucks per share. Wonder if it will continue to be a swing play?
Tahoe has continued to look good to me during the latest softness in the miners stocks. I can't wait ot see what it does when there is an upturn in the metals miners.
Still looks like it is holding its own versus the more popular miners.
Looking at THOEF vs some of the other mining stocks out there, it would appear that Tahoe has done better than USSIF by a bit, worse than GPL by more than that, and about the same as SLW.
I think I will reserve judgement on changing my current position for a little bit.
TAHOE RESOURCES UPDATES ESCOBAL DRILLING-EXPANDS KNOWN MINERALIZATION
VANCOUVER, B.C. (June 8, 2011) – Tahoe Resources Inc. (TSX: THO) is pleased to provide an update to 2010 and 2011 drilling results in the East and Central zones and in veins proximal to the Escobal project.
http://www.tahoeresourcesinc.com/tahoe-resources-updates-escobal-drilling-expands-known-mineralization/
Looks like we've bottomed, and starting to climb out as silver resumes its upward trend. Lets see where things go over the next week, both for silver and for Tahoe.
Looks like they gave me the Mod slot on this one. At least its in the "family" of for real longs in the PM arena.
Thanks, Hockmir. I tried to apply, but didn't have enough posts.
I'm trying to hold this one long term. I think it has great potential over time. In fact, it has already proven itself to a large degree.
Tell ya what. I'll apply for Mod position, then UI can fix it and few other things up on the I-Box.
That's the chart that I-H automatically throws onto the board, based on symbol. Obviously they are using the Canadian Symbol, but it is decoding it against US symbol base.
Wrong chart. Your chart is for Thor.
Should be:
THOEF.PK
Just sayin'
For some time we have held the silver royalty company, Silver Wheaton (SLW) for its play on the price of silver without any of the risks associated with operating mines. However, we are now concerned that the gold miners which sell their silver to Silver Wheaton will start demanding higher prices once existing contracts expire. SLW could then lose much of its leverage to the metal.
Consequently, we recommend replacing SLW with silver miner, Tahoe Resources, owner of a property in Guatemala with some 235.2 million ounces of silver in indicated resources. The property will also produce significant amounts of gold, lead, and zinc once operations begining in 2014. Production costs are expected to be around $6 per ounce, which would make Tahoe one of the lowest-cost producers in the industry.
Kevin McArthur, the head of Tahoe, formerly ran Goldcorp (GG), a leading gold miner that took a 40% stake in Tahoe when it sold the property to the junior miner. Under the terms of the purchase, Goldcorp has the right to acquire all of Tahoe at a later date, which could also benefit Tahoe shares.
Meanwhile, Japan’s reconstruction will add to the world's demand for industrial raw materials, so we expect our recommended resource stocks will continue to rack up gains.
Finally, just a clarification from last week’s update. The labor protests in Wisconsin, like the protest movements in the Arab world, have their roots in people not making forward economic progress. Whether you’re a middle class Midwesterner or a Cairo resident scraping by on a subsistence wage, inflation is going to take an ever-greater toll on your income. All the more reason to own precious metals stocks.
Stephen Leeb's recent recommendation:
Tahoe Resources (THOEF). This start-up company is fully funded, giving it more downside protection and the potential for more reliable gains. We think it stands a better chance of doubling over the next 12-18 months.
It just takes a while to find them. Word is getting out now about Tahoe.
I'm surprised to see very few posters or interest on this one. The prospects look great and the price increase has been fantastic.
Tahoe Resources Inc. Announces Approximately C$306 Million Bought Deal Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.
Tahoe Resources Inc. ("Tahoe" or the "Company") (TSX:THO) announced today that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (the "Underwriters"), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 21,704,080 common shares (the "Common Shares") of the Company, at a price of C$14.10 per Common Share (the "Offering Price") for aggregate gross proceeds to the Company of C$306,027,528 (the "Offering").
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 3,255,612 Common Shares at the Offering Price, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Offering to cover over-allotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional amount of approximately C$45,904,129 will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be approximately C$351,931,657.
Goldcorp Inc. has indicated that they intend to subscribe for such number of Common Shares from the Offering that will maintain their current ownership position of 41.2%.
The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada, other than Québec.
The Company intends to use the net proceeds to fund the advancement and development of the Escobal Project, for acquisitions and for general corporate purposes.
The Offering is expected to close by December 24, 2010 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Toronto Stock Exchange and the applicable securities regulatory authorities.
The Common Shares have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States, or for the account or benefit of any person in the United States, absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any Common Shares in the United States, or in any other jurisdiction in which such offer, solicitation or sale would be unlawful.
About Tahoe Resources Inc.
Tahoe's strategy is to develop the Escobal Project into a profitable mining operation and to position itself as a leading silver producer with high quality, low cost assets in the Americas. Additional information can be found on Tahoe's website: www.tahoeresourcesinc.com
Forward Looking Statements
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, which is also referred to as "forward-looking statements." Wherever possible, words such as "plans," "expects," or "does not expect," "budget," "scheduled," "estimates," "forecasts," "anticipate" or "does not anticipate," "believe," "intend," and similar expressions or statements that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved, have been used to identify forward-looking information. In particular, this news release describes future events and conditions related to Tahoe's plans for exploration and studies at the Escobal project. Forward-looking information is based on management's reasonable assumptions, estimates, expectations, analyses and opinions on the date of this news release. These are based on management's experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, Tahoe's ability to carry on exploration and development activities, the timely receipt of required approvals, the price of silver and other metals, Tahoe's ability to operate in a safe, efficient and effective manner and Tahoe's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used. Tahoe's actual results, programs and financial position could differ materially from those anticipated in such forward-looking statements as a result of numerous factors, many of which are beyond the Company's control. These factors include, but are not necessarily limited to, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, country risks, project cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. There is no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update any forward-looking information, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe's business, investors should review Tahoe's prospectus available at www.sedar.com.
For more information, please contact
Tahoe Resources Inc.
Ira M. Gostin
Business Director
775-448-5807 / Mobile: 775-771-1461
775-562-8888 (FAX)
investors@tahoeresourcesinc.com
www.tahoeresourcesinc.com
http://www.marketwire.com/press-release/Tahoe-Resources-Inc-Announces-Approximately-C306-Million-Bought-Deal-Financing-TSX-THO-1364080.htm
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Tahoe Resources Announces Updated NI 43-101 Resource and Positive Preliminary Economic Assessment for Escobal Project
http://www.marketwire.com/press-release/Tahoe-Resources-Announces-Updated-NI-43-101-Resource-Positive-Preliminary-Economic-Assessment-TSX-THO-1360035.htm
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Tahoe Resources THO quotes.barchart.com/quotes//THO.TO
Tahoe Resources Inc. THOEF www.otcmarkets.com/stock/THOEF/quote
$117 million in cash and no debt
115 million shares outstanding
122 million shares fully diluted
Tahoe wasn’t even in existence a year ago, now all of the sudden it’s worth over $1 billion and owns one of the largest, highest grade silver projects in the world.
The company believes that Escobal could rival the Fresnillo mine which produces 34 million oz of silver per year.
Tahoe is still in the early stages of the project, and it will be at least 3 years before the mine enters production. Over the next year they will complete more drilling to better define the resource, as well as explore for new silver veins.
Management is the big selling point here. You basically have the former team who ran Glamis Gold, including Kevin McArthur who was the CEO of Glamis and then Goldcorp. And Goldcorp owns a 40% interest in Tahoe, so they are looking for the company to succeed as well.
What are some negatives? Well, this is the same team that constructed the Marlin mine in Guatemala, which could be shut down due to environmental concerns. Goldcorp claims that there is no proof that the mine is causing damage. Tahoe doesn’t seem to be worried about this effecting Escobal, but I would still be a little concerned.
Also, the shares aren’t exactly cheap, but they aren’t overvalued either. Let’s be conservative and say that Escobal can produce 20 million oz of silver per year. That’s $440 million using current silver prices. I think if this mine was in operation today the company would have about a $2.5 billion market cap. Remember this is very high grade silver, so cash cost will be very low. High margin gold and silver producers always trade at premiums. However, the mine is still 3 years out, so I would say that it currently trades at fair value.
If Escobal produces over 30 million oz of silver then that is a different story. We could be talking a $4 billion market cap for Tahoe, and that’s using current silver prices. In the end who knows how big the mine will be. Odds are though it will become a mine, and it will be at least 15 million oz per year and very low cash cost.
Escobal was discovered by Goldcorp when McArthur was the CEO, so he knows exactly what type of deposit it is and the real potential of it. He basically had insider knowledge, and when you have that type of information, plus about $400 million in cash, you can confidently go out and buy projects like Escobal.
I would imagine that Tahoe Resources will soon become a more popular name among gold and silver investors.
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