Groups is asking the SEC to determine whether Tahoe failed to meet legal requirements for disclosing human rights abuses and lawsuits related to its Escobal mine in Guatemala.
Tahoe Resources Mining News
Stock rose 7.3% on Wednesday after the company announced Q2 results that beat expectations.
As part of the miner's strategy to grow gold production in Timmins, Northern Ontario, to over 250,000 ounces per year by 2020.
The company has emerged as a new leader in the precious metals sector with a well-diversified, Americas-based operating platform, a strong balance sheet and an attractive growth profile.
Tahoe Resources' founder and executive chair Kevin McArthur said the operations present "nice synergies".
Tahoe Resources has agreed to buy Canadian precious-metals miner Lake Shore Gold in an all-stock deal valued at Cdn$945 million ($678 million).
Stock in Guatemala focused miner in double digit gain Friday as silver operations throw off cash and newly-acquired gold properties outperform.
The Canadian firm said its Escobal mine remains unaffected by the ongoing political turmoil in the country, which has forced President Otto Perez to resign amid a corruption scandal that gutted his government.
Tahoe’s executive chair becomes CEO.
The company also said it will spend between $850 and $900 to produce an ounce of gold this year, less than its previous forecast of between $875 and $950.
The news came on the same day Royal Bank of Canada downgraded Goldcorp’s stock to “sector perform” from “outperform,” citing concerns over the miner’s ability to continue paying its monthly dividend.
Operations continue to perform within guidance.
The deal will also result in a spinoff company called AuRico Metals, which will hold the Kemess Property in northern British Columbia and three royalty assets.
Silver produced in concentrate was 5.2 million ounces and 20.3 million ounces during the fourth quarter and year ended December 31, 2014, respectively.
The industry is generally optimistic after a difficult year. According to a recent study by the EY Global Mining & Metals Center, the mining sector was battered and bruised in 2014, but is expecting a strong performance in 2015.
A new intermediate precious metals producer.
The mine generated 20.3 million ounces (moz) of silver contained in concentrates recovered from 1.246 million tonnes of ore at an average grade of 585 grams per tonne (gpt).
President Otto Perez Molina has approved a new rule passed by the Congress last week, which rises taxes to transnational miners operating in the country from 1% to 10%.
The country’s congress passed Friday legislation to increase mining royalties from 5% to 10%.
Seven Guatemalan men have filed a civil lawsuit in a Vancouver court against Canadian mining company Tahoe Resources Inc. for injuries they suffered last year when the miner’s security personnel opened fire on them at close range.
"Despite a handful of normal start-up issues, the operations team maintained operating costs within expectations.”
Analysts say it could soon become one of the world’s largest producers of the precious metal.
Tahoe expects to ramp-up to full production of 3,500 tonnes per day by the first quarter of 2014.
The mine is expected to produce 20 million ounces a year when it goes into operation next year, but the project has been plagued by violence and unrest.