Tahoe Resources up startling 200% since IPO

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For all the doom and gloom in the mining world today, Tahoe Resources is a rare glimmer of light.

Since January, the S&P/TSX materials subindex has tumbled 15 per cent, while Tahoe's stock is pretty much flat. More important, since the company's 2010 initial public offering, Tahoe has climbed just under 200 per cent. That's quite the feat, considering that silver , its main resource, has fallen back down to around $30 (U.S.) per ounce.

Tahoe has long been trusted because the development of its flagship Escobal project in Guatemala has so far come in on time and on budget. And the project keeps growing. On Monday, Tahoe increased its silver resource estimate by half to 367 million ounces at an average grade of 422 grams per tonne. (The previous estimate was made back in November, 2010, shortly after the IPO.)

If Tahoe stays on track, production should start in 2014 and is estimated to hit 20 million ounces of silver a year for over 10 years. Cash costs are expected to be less than $5 per silver ounce and daily production is estimated to be 3,500 tonnes.

With so much going for it, Tahoe has been trying to boost its public presence. One of the big steps was landing a U.S. listing, and as of Tuesday, the company trades on the New York Stock Exchange.

But, as always, there are legitimate worries. Earlier this year, Guatemala raised taxes and royalty rates on miners, and silver prices could continue to slide. On the latter front, though, Tahoe has continued to surprise. Last year the price of silver fell 11 per cent, yet Tahoe's share still climbed 20 per cent.

If only such strong results were replicated across the rest of 2010's mining IPO class. There have been other winners, such as Pretium Resources , which is up around 140 per cent since going public, but there have also been some big losers. Royal Nickel Corp. , for instance, is down a stunning 83 per cent since 2010.

Tahoe Resources was formed by Kevin McArthur, the former head of Goldcorp Inc. .