Potential Dividend for THO
Here's some recent equity research I found from analyst Daniel Earle.
With the ramp up of Escobal having exceeded nominal design rates, discussion re Tahoe has turned to the potential dividend, with questions as to its rate, timing and sustainability in the context of a recently-weak silver price
In Daniel Earle's view, it would be an incredible achievement for a single-mine company to institute a significant dividend in the first year of its commercial production – in fact, he cannot recall another example of this in recent history
As to the potential dividend, Ron Clayton, the company's President and COO, suggested at a conference this past September that a potential dividend of $0.04/mth (~2%) could be paid beginning in December or early 2015
The silver price has since declined a little over US$1/oz; however, Daniel Earle views the implied payout ratio as being feasible and broadly in keeping with that suggested previously by the company's CEO, Kevin McArthur
Daniel Earle's forecast production profile suggests that, with all things being equal, we should expect a flat dividend of $0.48/yr through 2016 and modest growth to $0.55/yr by 2018 |
