Post Earnings Coverage as Tahoe Achieved Full Year Production and Cost Guidance

Upcoming AWS Coverage on US Silica Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 23, 2017 / Active Wall St. announces its post-earnings coverage on Tahoe Resources Inc. (NYSE: TAHO). The Company posted its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) earnings on March 09, 2017. The Vancouver, British Columbia-based Company’s achieved production and cost guidance for the third consecutive year. Register with us now for your free membership at:

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One of Tahoe Resources’ competitors within the Industrial Metals & Minerals space, US Silica Holdings, Inc. (NYSE: SLCA), reported on February 22, 2017, its Q4 and full year 2016 results. AWS will be initiating a research report on US Silica in the coming days.

Today, AWS is promoting its earnings coverage on TAHO; touching on SLCA. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

During Q4 FY16, Tahoe’s revenues grew to $189.40 million from $154.89 million in Q4 FY15. However, revenues’ number for Q4 FY16 missed market expectations of $229.5 million.

The gold and copper mining Company reported earnings attributable to common shareholders of $0.32 million, or $0.00 per diluted share, in Q4 FY16 versus loss attributable to common shareholders of $107.72 million, or $0.47 loss per diluted share, in the prior year’s comparable quarter. The Company’s adjusted earnings for Q4 FY16 came in at $18.42 million, or $0.06 per share, compared to $51.01 million, or $0.22 per share, in Q4 FY15. Additionally, Wall Street had expected the Company to report adjusted earnings of $0.16 per diluted share.

Tahoe’s revenues rose during FY16 to $784.50 million from $519.72 million in FY15. The Company’s earnings attributable to common shareholders for FY16 were $117.88 million, or $0.41 per diluted share, compared to a loss attributable to common shareholders of $71.91 million, or $0.35 loss per diluted share, in FY15. Furthermore, adjusted earnings for FY16 stood at $180.39 million, or $0.62 per diluted share, versus $98.91 million, or $0.48 per diluted share, in FY15.

Production Numbers

Silver – In Q4 FY16, silver production volume was 4.83 million ounces, up from 5.22 million ounces, in last year’s comparable quarter. For the reported quarter, cash costs net of by-product credits attribute to silver production increased to $6.48 per ounce from $2.23 per ounce in Q4 FY15. The all-in sustaining costs associated with silver production increased to $9.76 per ounce in Q4 FY16 from $4.85 per ounce in Q4 FY15.

Tahoe reported silver production volume of 21.27 million ounce in FY16, beating FY16 silver production guidance range of 18 million ounce to 21 million ounce. The total silver cash cost in FY16 was $5.84 per ounce compared to guidance of $5.50 per ounce and $6.50 per ounce. Furthermore, all-in sustaining costs for silver during FY16 were $8.06 per ounce, which was in-line with the Company’s guidance range of $8.00 per ounce to $9.00 per ounce.

Gold- The Company’s gold production volume in Q4 FY16 was 119.9 thousand ounces, compared to 59.8 thousand ounces in the previous year’s same quarter. The gold cash costs net of by-product credits increased during Q4 FY16 to $594 per ounce from $541 per ounce in Q4 FY15. The gold’s all-in sustaining costs were $945 per ounce in Q4 FY16 versus $774 per ounce in the prior year’s comparable period.

The gold production volume for full-year FY16 was 385.1 thousand ounces, meeting the Company’s gold production guidance range of 370 thousand ounces to 430 thousand ounces. Total cash cost associated with gold production during FY16 was $620 per ounce compared to guidance range of $675 per ounce to $725 per ounce. Additionally, gold all-in sustaining costs for FY16 came in at $943 per ounce versus the Company’s guidance range of $950 per ounce to $1,000 per ounce.

Cash Flow and Balance Sheet

In the three months ended December 31, 2016, net cash generated by operating activities rose to $107.02 million from $54.16 million in Q4 FY15. As on December 31, 2016, cash and cash equivalents balances stood at $163.37 million compared to $108.67 million as on December 31, 2015. Furthermore, the Company’s total non-current liabilities position stood at $348.66 million as on December 31, 2016, compared to $187.55 million as on December 31, 2015.

Dividend

In a separate press release on March 09, 2017, Tahoe’s Board of Directors declared the third monthly dividend for 2017 of $0.02 per common share. The monthly dividend is payable on Thursday, March 30, 2017, to shareholders of record at the close of business on Thursday, March 23, 2017.

Earnings Outlook

The Company in its outlook for full year FY17 anticipates silver production in the range of 18 million to 21 million ounces. The Company projects cash cost applicable to silver during FY17 to be between $7.00 and $8.00 per ounce. Additionally, silvers’ all-in sustaining costs guidance range for FY17 is $9.50 to $10.50 per ounce to $1,250 per ounce.

For gold, the production guidance range for FY17 is of 375 thousand to 4.25 thousand ounces. The Company forecasts cash cost applicable to gold during FY17 to be between $700 and $750 per ounce. Furthermore, all-in sustaining costs guidance range for gold is anticipated to be in the range of $1,150 per ounce to $1,250 per ounce.

Stock Performance

At the close of trading session on Wednesday, March 22, 2017, Tahoe Resources’ stock price slipped 1.06% to end the day at $7.46. A total volume of 2.05 million shares were exchanged during the session. Furthermore, the stock is trading at a PE ratio of 207.22 and has a market cap of $2.32 billion.

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