PROFIT & LOSS

"We remain focused on those issues within our control"

Tahoe reports loss as Escobal remains in limbo after a year

Staff reporter

This article is 6 years old. Images might not display.

Protestors have maintained a road block since June 7, 2017, near the town of Casillas forcing operations at Escobal to be reduced. The mine was then fully suspended on July 5 last year in line with a court ruling while a case was heard over adequate community consultation.

"While we are disappointed that the Constitutional Court decision is still pending, we remain focused on those issues within our control," recently-appointed president and CEO Jim Voorhees said.

"We continue to have constructive dialogue at the Casillas roadblock and we believe we are well-positioned to resume operations at Escobal following a positive court ruling."

Previously a director, Voorhees took over from Ron Clayton as president and CEO when Clayton retired in June.

The company reiterated it was on track to meet its 2018 production, cost and capital guidance as it increased its gold focus and expected production to be weighted to the second half.

Tahoe produced 102,600 ounces of gold in the June quarter at an all-in sustaining cost of $1,060/oz.

"Construction at our two expansion projects, the Bell Creek shaft and the Shahuindo expansion, continue to progress nicely and both remain on track for completion by the end of the year, positioning us to achieve our target of approximately 500,000 ounces of gold production in 2019," Voorhees said.

Tahoe ended the quarter with $69.7 million in cash and equivalents.

Its shares have ranged from C$4.75-$8.80 over the past year and closed down 3.94% yesterday to $5.61.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

ESG Mining Company Index: Benchmarking the Future of Sustainable Mining

The ESG Mining Company Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.