Tahoe Resources loss less then forecast but wider than last year

7th November 2018 By: Reuters

Tahoe Resources Inc posted a quarterly loss on Tuesday that was less then Wall Street expected although it widened from a year earlier, while the gold and silver miner predicted that its production for the year would be at the low end of guidance.

Tahoe's Escobal silver mine in Guatemala, the world's second largest, has been effectively mothballed since last year after officials suspended the miner's license to operate, part of a long-simmering feud with the Xinca indigenous population.

The company has been ordered to undertake a new consultation process with the Xinca, the length of which remains unclear. Tahoe CEO Jim Voorhees said in a statement on Tuesday that the first stage of the consultation is nearly complete, which would allow the second stage to begin.

Some investors and analysts have expressed concern the process could take years.

Reno, Nevada-based Tahoe posted a third-quarter net loss of $190-million, or 61c a share, compared to a loss of $8.4-million, or 3ca a share, in the year-ago period.

Excluding one-time items, Tahoe lost 6c a share.

By that measure, analysts expected a loss of 7c a share share, according to IBES data from Refinitiv.

Tahoe produced no silver during the quarter. Gold output fell 17% to 91 000 oz.

The company expects 2018 gold production to come in at the low end of its guidance of 400 000 to 475 000 ounces. It expects costs to be at the high end of guidance.

Shares of Tahoe, which have lost about half of their value this year, were unchanged in after-hours trading. The company plans to hold a conference call to discuss the quarterly results on Wednesday morning.