Tahoe Achieves Record Production And Cash Flow Per Share In 2016

Q4 2016 earnings include non-cash, non-recurring tax charge – Earnings in Q4 2016 were  $0.3 million or $0.00 per share, while adjusted earnings for the quarter were $18.4 million or $0.06 per share. The $0.06 per share difference between earnings and adjusted earnings was due to a $19.3 million or $0.06 per share non-cash, non-recurring deferred tax expense related to an increase in the statutory tax rate in Peru to 29.5% as of January 1, 2017.

Q4 2016 adjusted earnings and cash flows impacted by weaker realized metal prices and higher expenses –Cash flow provided by operating activities before changes in working capital in Q4 2016 totaled $74.7 million or $0.24 per share, a reduction of 40% from the previous quarter ("Q3 2016") on a per-share basis. The $18.4 million or $0.06 per share of adjusted earnings in Q4 2016 were $47.3 million or $0.15 per share lower than the prior quarter. Of the after-tax $0.15 reduction in adjusted earnings, approximately two-thirds or $0.10 per share relates to  a $45.3 million or 19% decrease in revenue resulting from lower metal prices and sales. Approximately 70% of the reduction in revenue is due to lower prices, with the largest impact being a $6.19 per ounce or 30% decrease in the average realized silver price in Q4 2016 to $14.45 per ounce. The average realized price was 16% below the average spot price of $17.19 per ounce, reflecting negative pricing adjustments on provisionally priced silver ounces and final settlements. Contributing approximately 30% of the reduction in revenue were lower gold and silver sales, reflecting timing differences between production, final settlements and the shipment of inventories. Higher depreciation, royalty, exploration and general and administrative expenses accounted for the remainder of the reduction from the prior quarter.^{(See Endote)}

2016

Record silver production and per ounce costs – Total silver production in 2016 was a record 21.3 million ounces, which beat the Company's guidance for the year. Total cash costs and AISC per ounce of silver produced, net of byproduct credits, were also a record and included total cash costs of $5.84 and AISC of $8.06. Both total cash costs and AISC achieved the Company's improved guidance that was announced in August 2016.

Strong growth in gold production – Record gold production of 385.1 thousand ounces in 2016 achieved guidance and more than doubled from 2015. The strong production growth reflected the acquisition of Lake Shore Gold on April 1, 2016, the achievement of commercial production at the Shahuindo mine in Peru (at 10,000 tonnes per day) on May 1, 2016 and a full year of results at the La Arena mine in 2016, after it was acquired with Shahuindo in April 2015. Total cash costs and AISC per ounce of gold produced in 2016 of $620 and $943, respectively, were below their respective target ranges for the year.

Record cash flow per share highlights strong 2016 financial results – Cash flow provided by operating activities before changes in working capital totaled a record $385.9 million or $1.33 per share in 2016, an increase of 22% from 2015 on a per-share basis. Adjusted earnings were $180.4 million or $0.62 per share versus $98.9 million or $0.48 per share the prior year. Strong growth in cash flow and adjusted earnings in 2016 largely resulted from a 51% increase in revenue, to a record $784.5 million, and lower per ounce operating costs at Escobal.  Earnings of $117.9 million or $0.41 per share were lower than adjusted earnings largely due to non-cash, non-recurring deferred tax expense related to an increase in tax rates in Peru, a non-cash, non-recurring loss on redemption of debentures and acquisition costs related to the Lake Shore Gold transaction.

Industry-leading dividend – $69.4 million was paid to shareholders in dividends in 2016.

Positive results from 2016 exploration programs in Peru and Canada – Exploration results in 2016 succeeded in identifying new near-pit, sandstone-hosted oxide zones as well as three large mineralized district targets at Shahuindo and extended mineralization at and around the Timmins West and Bell Creek mines in Canada. The exploration results highlight the potential to extend mine life and grow production in both countries. (See press release entitled, "Tahoe Resources Reports 2016 Exploration Results," dated January 9, 2017.) 

New guidance highlights strong near-term growth in low-cost gold production – New three-year guidance includes growth to over 500,000 ounces of gold production in 2019, with capital requirements and AISC to peak in 2017 before declining over the next two years. Both of the Company's two key growth projects, expanding Shahuindo to 36,000 tonnes per day and the deepening of the Bell Creek shaft, are on track for completion in mid-2018. With their completion, annual sustaining capital expenditures are expected to decline to between $100 and $125 million, with project capital being reduced to $10 million or less (assuming no new projects) and AISC per ounce of gold improving to below $1,000.   

Ron Clayton, President and CEO of Tahoe, commented: "For the third consecutive year, our team met, and in some cases exceeded, our annual production and cost guidance. Escobal achieved record silver production, total cash costs and AISC, and once again demonstrated why it is one of the world's finest and most responsible silver producers. In our gold business, our operating cost performance was outstanding, which is very satisfying when you consider there are major capital projects ongoing at two of our mines. In Q4 2016, our Canadian operations had their best quarter since being acquired in April 2016. Financial results for the quarter were impacted by declining metal prices and non-cash, non-recurring items. I am pleased to say that we have seen an improvement in metal prices since the beginning of 2017.

"Looking ahead, we recently received the construction permit for the first crushing and agglomeration circuit at Shahuindo and, through an optimization review, have confirmed that recovery rates of at least 80% can be achieved at the mine through crushing and agglomeration to a capacity of 36,000 tonnes per day. Through the review, we have also identified opportunities to achieve slight reductions in capital and operating cost. With our plans at Shahuindo in place, we are in a position to release multi-year guidance for capital expenditures, as well as production and costs. Our new three-year guidance provides a clear road map for growing to over a half million ounces of gold production in 2019 with low capital requirements and operating costs. At that point, we will be well positioned to generate substantial amounts of free cash flow at anything close to current spot prices and to achieve our stated goal of 550,000 ounces of gold production by 2020."

Performance Against 2016 Guidance 
In 2016, the Company achieved all of its full-year production, cost and expenditure guidance. Performance exceeded target levels in such areas as silver production as well as total cash costs and AISC per ounce of gold produced.

Expanded 2017 Guidance 
Capital expenditures in 2017 are expected to increase from 2016, mainly reflecting peak investment levels for the expansion of Shahuindo and the Bell Creek shaft project.  Higher total cash costs and AISC for gold largely result from higher production from Shahuindo, where expansion work will continue throughout 2017, with expenditures related to further development of leach pads, waste dumps and other infrastructure being included in sustaining rather than growth capital and therefore AISC. Production at Shahuindo in 2017 is expected to be weighted to the second half of the year, with the commissioning of the first crushing and agglomeration circuit expected during the third quarter. Production, total cash costs and AISC for silver are similar to the guidance initially released for 2016 in January of last year.    

2017 Guidance

Production (silver – moz; gold – koz)

Cash Costs ($/oz)

All-in Sustaining Costs ($/oz)

Project Capital ($ millions)

Sustaining Capital ($ millions)

Exploration ($ millions)

Low

High

Low

High

Low

High

Low

High

Low

High

Low

High

Escobal (silver)

18

21

7.00

8.00

9.50

10.50

- Werbung Mehr Nachrichten zur Tahoe Resources Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:22 - ARIVA.DE Redaktion Airbus-Aktie verliert 2,38 Prozent (158,30 €) 08:18 - PR Newswire Cohen & Steers Capital Management - Form 8.3 - Tritax Big Box REIT plc 02:00 - PR Newswire BlackRock Energy and Resources Income Trust Plc - Total Voting Rights SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59