Tahoe Resources soars on Q2 earnings
Latin America-focused Canadian mining firm Tahoe Resources (TSX, NYSE:THO) stock rose 7.3% on Wednesday after the company announced Q2 results that beat expectations.
The Vancouver-based miner revealed a record half-year production of 11.4 million ounces of silver and 167,168 ounces of gold. The company said it expects to reach the top end of its silver production target by the end of 2016.
Tahoe listed a US$16.7 million net income and a 5 cent gain per share in Q2 with adjusted earnings of $57.9 million or 19 cents per share. Its total revenue for the quarter was $228.3 million. Last year during the same quarter the firm reported net losses of $9.3 million or 4 cents per share.
Earlier this year, Tahoe bought Canadian miner Lake Shore Gold (TSX:LSG) for $540 million and added the firm's low-cost Timmins West and Bell Creek mines in Northern Ontario to its portfolio.
Tahoe expects to reach the top end of its silver production target by the end of 2016.
Tahoe acquired a 2% net smelter return royalty related to production at the Bell Creek mine from Goldcorp (TSX: G; NYSE: GG) for $12.5 million in July. Goldcorp and Tahoe also signed a letter of intent to increase Tahoe's ownership interest in the Whitney joint venture to 100%.
Last year, Tahoe combined business with Rio Alto Mining (TSE:RIO) to benefit from production at the Escobal silver mine in Guatemala and the La Arena and the Shahuindo gold mines in Peru. Commercial production began at the Shahuindo mine in May, 2016.
Tahoe produced 5.7 million ounces of silver and 109,687 ounces of gold in Q2 and said its 2016 production guidance remains unchanged at 370,000 to 430,000 ounces. The miner's stock has risen by almost 90% in the last 12 months in the TSX.
The firm also announced the appointment of new president and chief executive officer Ron Clayton and Elizabeth McGregor as Vice President and chief financial officer.