BUZZ-Tahoe Resources Inc: Guatemala raises royalty

lunes 1 de diciembre de 2014 13:39 GYT

** Gold and silver producer's shares down 10.4 pct on the NYSE; Toronto-listed shares down 7 pct

** Dundee Capital Markets and BMO Capital Markets cut rating on Tahoe's stock after Guatemala passed a legislation that would raise government's royalties in the production from the company's mine, Escobal, to 10 pct from the existing 5 pct

** Analysts expect the hike in royalty to shrink the net asset value of the mine by 11 pct

** The legislation is intended to raise statutory royalties in the mining law and requires Guatemalan President's approval to become a law, the company said on Monday (

** Escobal mine, which started commercial production in January, has produced 12 million ounces of silver, 7,600 ounces of gold till June. The mine also produces lead and zinc

** Up to Friday, Company's U.S.-listed shares had fallen about 10 pct in the past 12 months