2Q Earnings Call Slide Deck
Tahoe 2Q Earnings Call
August 13, 2014
August 13, 2014
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On the Call
Kevin McArthur, Vice Chair & CEO
Ron Clayton, President & COO
Mark Sadler, Vice President & CFO
Brian Brodsky, VP Exploration
Don Gray, VP Operations
Edie Hofmeister, VP Corporate Affairs
Charlie Muerhoff, VP Technical Services
Ira Gostin, VP Investor Relations
Deliver long‐term shareholder value
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Safe Harbour Disclaimer
CAUTIONARY STATEMENT ON FORWARD‐LOOKING INFORMATION
This presentation contains “forward‐looking information” within the meaning of applicable Canadian securities legislation and “forward‐looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward‐looking information”). In particular, this news release describes potential future events related to (i) expected improvements in metal recoveries as mill performance is optimized; (ii) estimated production during 2014 of between 18 to 21 million ounces of silver contained in metals concentrates; (iii) silver production estimates being lower and cost projections being higher in the first half versus second half of 2014; (iv) the scope and timing of the proposed feasibility study; (v) the increase in expected capital costs in 2014; (vi) the expected timing for completion of the paste plant modifications; (vii) expected total cash cost, total production costs and all‐in sustaining cost figures for 2014; and (viii) Tahoe’s strategy to operate the Escobal mine to world standards, pay dividends and develop precious metals assets in the Americas. Forward‐looking information is based on management’s reasonable assumptions, estimates, expectations, analyses and opinions, which are based on management’s experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances, but which may prove to be incorrect. Assumptions have been made regarding, among other things, Tahoe’s ability to implement operational improvements at the Escobal mine, Tahoe’s ability to carry on exploration and development activities, the timely receipt of required approvals, the price of silver and other metals, costs of development and production, Tahoe’s ability to operate in a safe and effective manner, and its ability to obtain financing on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive. Tahoe’s actual results, programs and financial position could differ materially from those anticipated in such forward‐looking statements as a result of numerous factors, risks and uncertainties, many of which are beyond the Company’s control. These include, but are not necessarily limited to, results of exploration activities and development of mineral properties, the interpretation of drilling results and other geological data, the uncertainties of resource and reserve estimations, receipt and security of mineral property titles, receipt of licenses to conduct mining activities, country risks, civil unrest, the timing and possible outcome of pending litigation, cost overruns or unanticipated costs and expenses, the availability of funds, fluctuations in metal prices, currency fluctuations, and general market and industry conditions. There is no assurance that forward‐looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on this information. Tahoe does not undertake to update any forward‐looking information, except as, and to the extent required by, applicable securities laws. For more information about the risks and challenges of Tahoe’s business, investors should review Tahoe’s current Annual Information Form available at www.sedar.com.
Cautionary Note
Investors are cautioned that the May 2012 Preliminary Economic Assessment (PEA) is considered preliminary in nature and includes mineral resources, including inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. Additional disclosure and footnotes are located in the appendix or on Tahoe’s website. Unless otherwise indicated, all dollar values herein are in US$. Revised August 2014
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Average Throughput Above 3,500 tpd
2014 Daily Mill Feed Tonnes
4,500
4,000
3,000
2,500
2,000
1,500
1,000
500
30‐Jul
20‐Jul
10‐Jul
30‐Jun
20‐Jun
10‐Jun
31‐May
21‐May
11‐May
1‐May
21‐Apr
11‐Apr
1‐Apr
22‐Mar
12‐Mar
2‐Mar
20‐Feb
10‐Feb
31‐Jan
21‐Jan
11‐Jan
0
1‐Jan
Tonnes per Day
3,500
scheduled preventativemaintenance
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2014 Monthly Mill Throughput
4,000
3,709
3,788
3,500
Average Tonnes per Day
3,000
3,217
3,275
3,277
Mar
Apr
May
3,031
2,873
2,500
2,000
1,500
1,000
500
0
Jan
Feb
Jun
Jul
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2014 Silver Production
Silver Ounces in Concentrate
2,500,000
Ag Ounces
2,000,000
1,500,000
1,000,000
500,000
0
Jan
Feb
Mar
Apr
May
Jun
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Estimated Net Revenue in Concentrates
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
Expected Net Revenue ‐ Lead Concentrate
Expected Net Revenue ‐ Zinc Concentrate
30‐Jun
20‐Jun
10‐Jun
31‐May
21‐May
11‐May
1‐May
21‐Apr
11‐Apr
1‐Apr
22‐Mar
12‐Mar
2‐Mar
20‐Feb
10‐Feb
31‐Jan
21‐Jan
11‐Jan
1‐Jan
$0
Estimated Daily Costs
Assumes metal prices of $20.00/oz Ag, $1300/oz Au, $0.95/lb Pb, $0.90/lb Zn
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Estimated Production Value (as produced)
2014 Monthly Net Revenue
$250
$45.0
$40.0
$200
$30.0
$150
$25.0
$20.0
$100
$15.0
$10.0
Cumulative NSR ($M)
Monthly NSR ($M)
$35.0
$50
$5.0
$0
$0.0
Jan
Feb
NSR Lead Concentrate
Mar
Apr
May
NSR Zinc Concentrate
Jun
Cumulative NSR
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Website Links
IR Web Pages: www.tahoeresourcesinc.com/investors
Financials:
www.tahoeresourcesinc.com/investor‐relations/financials
Call Recording:
www.tahoeresourcesinc.com/investor‐relations/events
CSR:
www.tahoeresourcesinc.com/social‐responsibility
CSR Blog:
www.tahoecsr.com
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Tahoe Resources Investor Relations [email protected] 775.448.5807
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