Tahoe Resources beats by $0.02, beats on revs; halts dividend; FY17 gold production expected to meet targets
- Reports Q2 (Jun) earnings of $0.11 per share, $0.02 better than the Capital IQ Consensus of $0.09; revenues fell 8.2% year/year to $209.6 mln vs the $207.39 mln Capital IQ Consensus.
- Cessation of dividend --
- The Company announced the cessation of the dividend, beginning August 8, due to the ruling of the Guatemalan court to provisionally suspend the Escobal mining license.
- The dividend cessation is intended to protect the health of the Company's balance sheet and ensure the Company has the financial flexibility during the temporary suspension of Escobal operations.
- The cessation of the dividend will conserve ~$65 million cash annually at current dividend reinvestment program enrollment rates.
- Suspension of 2017 and multi-year guidance -- The Company has suspended previously issued 2017 and multi-year company-wide guidance given the uncertainty of timing of various court decisions related to the Escobal license.
- Gold production and total cash costs are expected to meet targets of 375,000 to 425,000 ounces of gold and total cash costs of $700 to $750 at operations in Canada and Peru in 2017.
- Co will issue updated guidance when we have clarity on the status of the Escobal license in Guatemala.
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