A Vancouver junior miner with an impeccable pedigree – Tahoe Resources Inc. (TSX:THO) – is reporting its first ever cash-positive earnings from its new silver mine in Guatemala.
In its first quarter financials released May 8, the company reports net income of US $24.8 million (US$0.17 per share). It’s the first time the company has reported positive income.
Tahoe’s only operating mine, the Escobal, went into production in September 2013 and is now generating income for the new mining company.
“We are extremely pleased with the company’s first quarter of commercial production,” said Tahoe CEO Kevin McArthur, the former CEO of Goldcorp Inc. (TSX:G)
“The ramp-up to 3,500 tonnes per day proceeded according to plan, and despite a handful of normal startup issues, the operations team maintained operating costs within expectations.”
The mine has produced 4.1 million ounces of silver at a cost of US$10.25 per ounce produced, and a sale price of US$20.20 per ounce.
It also produced 2,687 ounces of gold, 2,342 tonnes of lead and 2,645 tonnes of zinc during the first quarter.
The mine generated total revenue of US$89.9 million from sales in the first quarter, with operating costs of US$46.7 million.
Tahoe’s earnings fell slightly short of analyst estimates of US$0.21 per share for Q1. The company’s shares were down 1.3% to $23.71 per share at close or markets May 8.
