Tahoe Reports 2012 Results; Escobal Project On-Track for 2013 Mill Commissioning
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/08/13 -- Tahoe
Resources Inc. (TSX:THO)(NYSE:TAHO) is pleased to announce financial
results for the year ending December 31, 2012, and to update
construction progress at its flagship Escobal project in Guatemala.
Significant results for 2012 include (stated in U.S. dollars):
-- Net earnings/(loss) for 2012 amounted to ($93.5 million) or ($0.65) per
-- 2012 cash outflow from operating activities amounted to $87.8 million.
-- Corporate G&A expense amounted to $11.0 million, excluding non-cash
share-based compensation of $8.0 million.
-- Exploration expense amounted to $10.6 million.
-- Capital additions for the year amounted to $122.9 million.
-- A project-to-date total of $250.7 million of the $326.6 million budget
has been spent towards construction of the 3500 tpd Escobal project.
-- Cash and equivalents at year-end were $164.6 million.
Escobal Project Construction Update
EPCM activities for the process plant and ancillary facilities
reached 69 percent completion by year-end. The project remains on
schedule and on budget for mill commissioning in the second half of
2013 and commercia
l production in early 2014.
Nearly all structural concrete pours were completed and significant
progress was made by year-end in the area of structural steel
erection. By the end of December, structural steel was completed at
the primary crusher and operations buildings, and was nearly complete
at the secondary crushing facility and fine ore storage/reclaim
The current focus is on mechanical and electrical installation, and
the completion of the ball mill, flotation and filtration facilities.
Progress is continuing on the dry tailings placement facility and the
backfill paste plant.
Underground development advance is currently meeting expectations and
is 70 percent complete. Stope development on the 1265 and 1290 levels
is underway, and the mine is expected to be ready for mill
commissioning in the second half of this year. Primary decline
development completed to date will support five years of production.
The declines are expected to reach the 1190 level in the fourth
quarter of 2013 and once completed to that elevation will support an
additional two years of production.
Work on the main ventilation raise from the 1290 level to the surface
has commenced. By the end of January, the pilot Alimak raise (2.4
metre x 2.4 metre) had reached the surface. A steel lined collar will
be installed in March, and the raise will be enlarged to six metre
diameter down to the 1290 level.
A bulk sample from vein crosscut on the 1265 level was shipped and
pilot plant testing has commenced. Concentrates from this test work
will be sent to potential customer smelters and labs for conformation
analysis prior to finalizing commercial contracts. Tailings samples
will be used to fine tune backfill paste plant parameters.
Tahoe's year-end financials, MD&A and AIF will be available on SEDAR
and the Company's website later in the day. Recent construction
photographs are on the Company's website at
The Company continues to work with the Guatemalan government
regarding the issuance of the exploitation license. The Company was
notified by the Guatemalan government in the first quarter of 2012
that all legal requirements for approval of the exploitation license
have been fulfilled. "We have met with Guatemalan President Otto
Perez Molina and he continues to assure us that the final Escobal
permit will be issued soon," said Tahoe President and CEO Kevin
McArthur. He added that no delays to the project schedule are
Tahoe also announced today that Jaime Mondragon has resigned as the
Company's vice president and chief financial officer effective
immediately. He is replaced by Mark T. Sadler who has been vice
president metal sales and concentrate marketing. Mr. Sadler joined
the Company in 2012 following employment with Glencore Ltd. and over
18 years with Rio Tinto, plc. He holds an MBA from Westminster
College and a B.S. in accounting from the University of Utah. Mr.
Sadler is a member of the American Institute of Certified Public
"On behalf of the Board, I wish to thank Jaime for his outstanding
achievements since our IPO in June, 2010. Mr. Mondragon has been
integral to Tahoe's startup activities and was a key participant in
Tahoe's growth from an early-stage exploration story to one of near
production," said Mr. McArthur.
About Tahoe Resources Inc.
Tahoe's strategy is to develop the Escobal project into a profitable
mining operation and to position itself as a leading silver producer
with high quality, low cost assets in the Americas. Tahoe is a member
of the S&P/TSX Composite and TSX Global Mining indices and the
Russell 3000 on the NYSE. The Company is listed on the TSX as THO and
on the NYSE as TAHO.
Tahoe Resources is a Canadian corporation operating in Canada,
United States and Guatemala. This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities legislation, and "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 (collectively referred to as "forward-looking
information"). Wherever possible, words such as "plans", "expects",
or "does not expect", "budget", "scheduled", "estimates",
"forecasts", "anticipate" or "does not anticipate", "believe",
"intend", and similar expressions or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be
taken, occur or be achieved, have been used to identify
forward-looking information. In particular, this news release
describes potential future events related to: receiving an
exploitation permit for Escobal; meeting the project schedule;
achieving mill commissioning in the second half of 2013 and
commercial production in early 2014; and Tahoe's strategy to develop
the Escobal project. Forward-looking information is based on
management's reasonable assumptions, estimates, expectations,
analyses and opinions which are based on management's experience and
perception of trends, current conditions and expected developments,
and other factors that management believes are relevant and
reasonable in the circumstances, but which may prove to be incorrect.
Assumptions have been made regarding, among other things, Tahoe's
ability to carry on exploration and development activities, the
timely receipt of required approvals (including the exploitation
permit for the Escobal project), the price of silver and other
metals, costs of development and production, Tahoe's ability to
operate in a safe, and effective manner and its ability to obtain
financing on reasonable terms. Readers are cautioned that the
foregoing list is not exhaustive. Tahoe's actual results, programs
and financial position could differ materially from those anticipated
in such forward-looking statements as a result of numerous factors,
risks and uncertainties, many of which are beyond the Company's
control. These include, but are not necessarily limited to, results
of exploration activities and development of mineral properties, the
interpretation of drilling results and other geological data, the
uncertainties of resource and reserve estimations, receipt and
security of mineral property titles, receipt of licenses to conduct
mining activities, country risks, civil unrest, project cost overruns
or unanticipated costs and expenses, the availability of funds,
fluctuations in metal prices, currency fluctuations, and general
market and industry conditions. There is no assurance that
forward-looking information will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not
place undue reliance on this information. Tahoe does not undertake to
update any forward-looking information, except as, and to the extent
required by, applicable securities laws. For more information about
the risks and challenges of Tahoe's business, investors should review
Tahoe's current AIF available at www.sedar.com.
Tahoe Resources Inc.
Ira M. Gostin
Vice President Investor Relations
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