On Monday, Tahoe Resources Inc. (NYSE: TAHO) shares surged almost 40% after the company announced that the Guatemalan Supreme Court reinstated their license for the Escobal silver mine. Last month, the court sided with a Guatemalan human rights group called Centro de Accion Legal Ambiental y Social de Guatemala (CALAS) against the country’s ministry of energy and mines claiming that the ministry violated the rights of people’s right of consultation in advance of granting the Escobal license. After the ruling was reversed, the ministry was ordered to consult with communities and report within a year.
Until the company is able to restart, they are only able to access $75 million of a $300 million revolving credit facility they entered 2 months ago. The mine contains proved and probable mineral reserves of 23.7 million metric tons with an average silver grade of 351 grams that contains 267.5 million ounces of silver. Last year, production totaled to 21.2 million ounces.
After the late August Supreme Court ruling, shares posted a 52-week low of $4.24 and traded about 39% Monday morning at $6.53. The 52 week high reported at $14.60 with a 12-month price target at $7.98. On Monday morning, silver futures traded around $18 an ounce which is the highest level since mid April but below a 12-month top at $21 an ounce.