Tahoe Resources (TAHO) Misses Q3 EPS by 5c, Revenues Miss

Tahoe Resources (NYSE: TAHO) reported Q3 EPS of ($0.06), $0.05 worse than the analyst estimate of ($0.01). Revenue for the quarter came in at $111.8 million versus the consensus estimate of $132.07 million.

Jim Voorhees, President and CEO of Tahoe: "The Company remains on track for its full year 2018 guidance near the low end of production and the high end of costs. During the third quarter, La Arena production was impacted by stacking at the highest levels of the leach pad which delayed gold production. In October, La Arena solution grades started improving and the mine achieved its second highest production month for the year, contributing to the expected production rebound in the fourth quarter. Construction at the Shahuindo Expansion and Bell Creek shaft projects continues to progress well. We received our 36,000 tpd operating permit for Shahuindo in mid-October and we expect to begin hoisting ore at the Bell Creek shaft in the coming weeks. By achieving these milestones, both projects remain on track for completion, positioning the business for an improved fourth quarter and execution of our 2019 growth plans."

Mr. Voorhees continued: “During the third quarter, we reported a loss of $(0.61) per share reflecting a $170 million non-cash impairment of our Escobal mine, the continued impact of the Escobal mine suspension and our ongoing care and maintenance costs. Excluding the impairment charge, we reported an adjusted loss of $(0.06) per share. On September 3rd we received the final resolution from the Constitutional Court on the Escobal mining license. Although the mining license remains suspended, the resolution provides a path forward to a restart of Escobal. We are encouraged that Stage 1 of the four-stage ILO 169 consultation process is well advanced. The relevant entities have agreed on the area of influence, which is the same as the original EIS boundary. The proposed boundary has been submitted to MARN for their approval, which is expected soon. Once finalized, Stage 2 of the consultation process can commence."

For earnings history and earnings-related data on Tahoe Resources (TAHO) click here.

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