Escobal mine ramps up according to plan
Tahoe Resources Inc. (TSE: THO, NYSE: TAHO) reported Thursday positive financial results for this year's first quarter at its 100% owned Guatemala Escobal silver mine.
The Vancouver-based mining company reported net earnings of $24.8 million or 17 cents per share and revenue of $89.9 million.
The company said its ramp-up to 3,500 tonnes per day proceeded according to plan at its Escobal project located in southeastern Guatemala, approximately 70 kilometres from Guatemala City.
"Despite a handful of normal start-up issues, the operations team maintained operating costs within expectations,” said Tahoe Chief Executive Officer Kevin McArthur in a statement.
Escobal mine's silver production amounted to 4.1 million ounces at a total cash cost of $6.68 per ounce and production cost of $9.14 per ounce.
The company said it will expand to 4,500 tonnes per day with a target of 20 million ounces of silver annually.
Escobal mine began production last September and reached commercial production in January.
Tahoe ran into trouble bringing the mine on stream including a Guatemalan appeals court's challenge to its mining license and a complaint filed with the Ontario Securities Commission related to a shooting in the project vicinity.