Tahoe Resources Inc.NYSE
The Problems Facing Tahoe Resources
Tue, Jul. 5, 2:23 PM
- Latin America-focused Tahoe Resources (TAHO -2%) is expanding its presence in Canada by agreeing to acquire Goldcorp's (GG +1.5%) 2% net smelter return royalty related to production at Bell Creek Mine in Ontario for $12.5M.
- The companies also agree to increase TAHO’s ownership interest in their Whitney joint venture to 100%; GG’s current interest of 30% would be reduced to a 2% net smelter royalty.
- TAHO says Bell Creek and Whitney are two key components of its strategy to increase gold production in the Timmins, Ont., area to more than 250K oz./year by 2020.
Mon, Apr. 4, 11:40 AM
- 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.
- Now read Tahoe Resources: Free cash flow positive, but will Lake Shore Gold shareholders be happy?
Mon, Feb. 8, 8:57 AM
- 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.
- TAHO -2.7% premarket.
Feb. 9, 2015, 7:59 AM
- Tahoe Resources (NYSE:TAHO) agrees to acquire Rio Alto Mining (NYSE:RIOM) in a cash and stock deal valuing RIOM at ~C$1.4B ($1.12B), based on Friday's closing stock prices, in a bid to expand its presence in Latin America.
- RIOM shareholders would receive 0.227 of a TAHO share and $0.01 cash per share, making the offer worth ~C$4/share, a 22% premium to RIOM's C$3.28 closing price Friday on the Toronto Stock Exchange.
- TAHO controls the Escobal silver mine in Guatemala, while RIOM owns the La Arena gold mine and the Shahuindo gold project in Peru.
- Goldcorp (NYSE:GG) owns ~39% of TAHO shares and is supporting the deal.