Tahoe Resources announces cessation of dividend
Tahoe Resources announced the cessation of the dividend, beginning August 8, due to the ruling of the Guatemalan court to provisionally suspend the Escobal mining license. The dividend cessation is intended to protect the health of the company's balance sheet and ensure the company has the financial flexibility during the temporary suspension of Escobal operations. The cessation of the dividend will conserve approximately $65 million cash annually at current dividend reinvestment program, or DRIP, enrollment rates. The board will continue to reassess the company's dividend policy from time to time. The company has also suspended the active operation of its DRIP effective immediately. The company may wish to reactivate the DRIP, subject to regulatory approval, at a future date. During the period of suspension of the DRIP, participants may continue to have their existing reinvested common shares held in the DRIP, or they may request a withdrawal by contacting Computershare. Total dividends of $18.7 million were paid to shareholders during the quarter, including $3.2 million in non-cash share-based dividends. A dividend of $6.2 million was declared and paid in July.