Funny you should ask that, dude. Here's the link to the note*, here's the cover mail pasted:
Tahoe Resources Inc.
THO : TSX : C$18.37 | C$2,635.0M | Speculative Buy, C$36.00 ↓
Steven Butler, 416.869.XXXX
- Positive Escobal update; valuation tempered on grade; reiterate SPEC BUY rating; target reduced to C$36.00 (from C$37.50)
We reiterate our SPECULATIVE BUY rating on Tahoe Resources following the release of a resource and PEA update on the Escobal project, which contemplates throughput increases to 4,500 and 5,500 tpd. We continue to see re-rating potential for Escobal on expected receipt of exploitation permit, exploration upside potential, and advancement toward production expected by early 2014.
- Escobal's global resource has grown by 27% to 404 Moz silver at a grade of 398 g/t from 317 Moz silver at 419 g/t (dated November 2010). The PEA reflected a 22% increase in mineable resource to 367 Moz grading 383 g/t (vs. the 2010 mineable resource of 302 Moz silver grading 415 g/t). Our previous valuation assumed a mineable resource of approximately 400 Moz silver at a grade of 397 g/t. Given the exploration potential on the project, our revised valuation assumes a 10% increase in mineable resource.
- The released PEA contemplates two expansion scenarios from the 3,500 tpd scenario assumed in the November 2010 PA: to 4,500 tpd at capex of $46 million and 5,500 tpd at incremental capex of $33 million (both internally financed from future cash flow). Overall project construction cost to production (at 3,500 tpd) remains unchanged at $326.6 million, and commercial start-up is still envisioned by early 2014 (both positive).
- Management maintains that it expects to receive the exploitation permit for Escobal in H1/12. The shares of Tahoe Resources will begin trading in the United States on the NYSE under the ticker "TAHO" starting at market open on May 8, 2012.
Our target price has been revised to C$36.00 from C$37.50 based on 1.0x our 5%/peak NAVPS estimate of US$35.79 (previously US$37.47), translated assuming USD/CAD parity.
*until they pull the link, that is