Tahoe Resources (TAHO +0.1%) says it completed its acquisition of Lake Shore Gold (NYSEMKT:LSG) and provides 2016 production guidance for the combined company.
TAHO says the combined company ended 2015 with pro forma cash and equivalents of $179.3M; excluding debt related to LSG's convertible debentures, pro forma net cash at year-end was $115.8M.
TAHO says FY 2015 pro forma cash flow from operations totaled $243.8M, or $148M net of sustaining capital.
For 2016, TAHO forecasts the combined company to produce 370K-430K oz. of gold at total cash costs of $675-$725/oz. and all-in sustaining costs of $950-$1,000/oz., and maintains previous guidance for silver production of 18M-21M oz.
Lake Shore Gold (NYSEMKT:LSG) +9.3% premarket after agreeing to be acquired by Tahoe Resources (NYSE:TAHO) in an all-stock deal valued at ~C$945M.
TAHO will pay 0.1467 of its stock for each LSG share, which works out to C$1.71, a 14.8% premium to LSG shares, based on both stocks' Friday close; the companies say the deal has an implied equity value of C$945M, assuming the conversion of some debentures.
The deal adds LSG's low-cost gold Timmins West and Bell Creek mines in Timmins, Ontario, to TAHO's portfolio, which already includes the Escobal mine in Guatemala and two mines in Peru.
The combined company is expected to produce 370K-430K oz. of gold in 2016 at total cash costs of $675-$725/oz. and all-in costs of $950-$1,000/oz.