Tahoe Resources (TAHO, Financial) (3.0%) (THO – $12.82 | $16.82 CAD – Toronto Stock Exchange) owns the Escobal mine in Guatemala, one of the largest primary silver mines in the world. Tahoe also owns two assets in Peru. One is an operating mine and one is a development project. The combined company will be cash flow generative, and be able to finance the build of its next project with free cash flow from its two producing assets and cash on its balance sheet. The company recently completed the acquisition of Ontario-based Lakeshore Gold. Tahoe aims to expand Lakeshore’s mineral inventory through an aggressive exploration program. If successful, the company will likely expand plant capacity on site and grow production. Tahoe pays a dividend, and we expect this will increase if the prices of gold and silver rise.
From the Gabelli Gold Fund third-quarter 2016 shareholder letter.
