TORONTO (miningweekly.com) – Silver miner Tahoe Resources has reported strong results for its first full year of operations at the Escobal silver/lead/zinc mine, in south-eastern Guatemala, having produced 20.3-million ounces of silver in concentrate.

Vancouver-based Tahoe on Wednesday noted that net earnings attributable to common shareholders amounted to $9.8-million, or $0.07 a share, in the fourth quarter ended December 31 and $90.8-million, or $0.62 a share, for the full year.

The company had a substantial concentrate inventory at the end of the quarter, which would be sold during the first quarter, and was equal to between $0.08 and $0.10 a share in unrealised earnings for the fourth quarter and year.

Revenue from concentrate sales was $350.3-million for full year.

Net cash provided by operating activities was $119.3-million and Tahoe had a healthy $80.4-million cash in the bank for the 12-month period.

The Escobal operation, which declared commercial production in January last year, reported all-in sustaining costs (AISC) a silver ounce produced net of by-product credits of $9.15 for the full year.

Tahoe expected mine and mill production to rise from 3 500 t/d in the first half of the year to 4 500 t/d in the second half of the year. Full-year 2015 silver output was estimated at between 18-million ounces and 21-million ounces, at AISC of between $9.75/oz and $11.50/oz of silver.

Tahoe and Rio Alto Mining last month announced a definitive agreement to combine their businesses in a C$1.3-billion cash-and-scrip deal that would see Tahoe gain a footing in Peru while creating a new intermediate precious metals producer.

The combined company was expected to offer shareholders significant low-cost production from Tahoe’s Escobal silver mine, in Guatemala, and Rio Alto’s established La Arena gold mine, in Peru, as well as long-term sustainable growth fuelled by the development of Rio Alto’s Shahuindo gold project, from which first output was expected in early 2016.

With strong operating margins and low capital risk, the combined company was expected to have industry-leading free cash flow generation, strong financial returns and a robust balance sheet with zero net debt.

Tahoe TSX-listed stock had lost 40% in value over the past 12 months and on Thursday traded around C$14.93 apiece.