Shares of Tahoe Resources Inc (TSX:THO)(NYSE:TAHO) was up 40% an hour into trading on September 11 as Guatemala’s Supreme Court reinstated the company’s license for the Escobal mine. In early July the silver mining company saw its stock price almost halve when the Supreme Court upheld a decision by a lower tribunal to suspend two mining licenses. There was an intense debate in the days and weeks following as many sections of the government argued that suspension of the mine would seriously damage the local economy.
Tahoe was quick to point out that the decision may still be appealed so the fight could continue for some time. Because of the temporary loss of the mining license Tahoe Resources has missed out on the gains seen for silver. If silver continues its upward climb Tahoe is likely to be a beneficiary as the stock reached double digits the last time the base price breached the $18 mark.
Tahoe CEO Ron Clayton released a statement in a press release. The statement read: “The company respects the rights of indigenous people in all jurisdictions in which we operate and are always willing to engage with any community members in those jurisdictions. We remain focused on peacefully resolving the blockage at Casillas.”
The Supreme Court decision should inject some optimism but Tahoe may be embroiled in a battle that will keep the stock from feasting on future upward movement in silver in 2017.
