After a brief courtship that started at the Denver Gold Forum in September 2014, Tahoe Resources (TSX: THO; NYSE: TAHO) and Rio Alto Mining (TSX: RIO; NYSE: RIOM) have decided to tie the knot.
It was their similarities and strengths that really brought them together, says Tahoe CEO Kevin McArthur, who founded the company after retiring at the end of 2008 as CEO of Goldcorp (TSX: G; NYSE: GG). (Goldcorp is Tahoe’s largest shareholder with a 39% stake, and has given its formal blessing to the union.)
“We have the leading return on equity in the silver space and they have the leading return on equity in the gold space,” McArthur says. “They have one of the strongest operating margins in the gold space and we have one of the strongest operating margins in the silver space, so we have similar attributes. And I think with the strong management at both companies, and the free cash flow, we are very similar too.”
Read the complete article at NorthernMiner.com/news/tahoe-resources-and-rio-alto