41 41 Page 40 Contd on pg 42 Acquisition of Lake Shor e helps T ahoe to r ecord year By Gregory Reynolds T ahoe Resources Inc states 2016 was a record year for its precious met als production and sees even better achievements ahead The company achieved production and cost guidance for a third consecu tive year Record silver and gold production were racked up at its fve mines two in Canada two in Peru and one in Guatemala with lowest ever total cash and allin sustaining costs AISC at the Escobal Mine in Guatemala The company mined 3851 thousand gold ounces in 2016 New threeyear guidance includes gold productio n growth to over 500 thousand ounces in 2019 with low AISC and declining capital expendi tures Ron Clayton president and CEO of T ahoe commented For the third consecutive year our team met and in some cases exceeded our annual production and cost guidance Escobal achieved record silver pro duction total cash costs and AISC and once again demonstrated why it is one of the world s fnest and most responsible silver producers In our gold business our operating cost performance was outstanding which is very satisfying when you consider there are major capi tal proj ects ongoing at two of our mines In Q4 2016 our Canadian operations had their best quarter since being ac quired in April 2016 Financial results for the quarter were impacted by declining metal prices and noncash nonrecurring items I am plea sed to say that we have seen an improvement in metal prices since the beginning of 2017 he said Clayton added looking ahead we recently recei ved the construction permit for the frst crushing and ag glomeration circuit at Shahuindo in Peru and through an optimization review have confrmed that recovery rates of at least 80 can be achieved at the mine through crushing and ag glomeration to a capacity of 36000 tonnes per day Through the review we have also identifed opportunities to achieve slight reductio ns in capital and oper ating cost W ith our plans at Shahuin do in place we are in a position to re lease multiyear guidance for capital expenditures as well as production and costs Our new threeyear guidance provides a clear road map for growing to over a half million ounces of gold produc tion in 2019 with low capital require ments and operating costs At that point we will be well posi tioned to generate substantial amounts of free cash fow at anything close to current spot prices and to achieve our stated goal of 550000 ounces of gold production by 2020 T otal silver production in 2016 was a record 213 million ounces which beat the company s guidance for the year T otal cash costs and AISC per ounce of silver produced net of byproduct credits were also a record and includ ed total cash costs of 584 and AISC of 806 Both total cash costs and AISC achieved the company s improved guidance that was announced in Au gust 2016 Earnings of 1 179 million or 041 per share were lower than adjusted earnings of 1804 million lar gely due to noncash nonrecurring de ferred tax expense related to an in crease in tax rates in Peru a noncash nonrecurring loss on redemption of debentures acquisition costs related Page 41 Acquisition of Lake Shor e helps T ahoe to r ecord year