Profile:
Silver Wheaton Corp.
666 Burrard Street
Suite 3150
Vancouver, BC V6C 2X8
Canada - Map
Phone: 604-684-9648
Fax: 604-684-3123
Web Site: http://www.silverwheaton.com
DETAILS
Index Membership: N/A
Sector: Basic Materials
Industry: Silver
Full Time Employees: NaN
BUSINESS SUMMARY
Silver Wheaton Corp., a mining company, engages in the silver production. The company purchases silver from Goldcorp mines in Mexico, Zinkgruvan Mine in Sweden, Yauliyacu Mine in Peru, and Stratoni Mine in Greece. Silver Wheaton Corp. was incorporated in 1994. It was formerly known as Chap Mercantile, Inc. and changed name to Silver Wheaton Corp. in 2004. The company is headquartered in Vancouver, Canada.
Silver Wheaton: More than Likely to Move Up.......
The Silver Lining to a Dismal Morning
On a day like today, it's tough to get excited about stocks.
But someone sure was excited about Silver Wheaton Corp (NYSE: SLW) Tuesday morning. It gapped up 2% and kept rising from there. Silver Wheaton is one of a few well-known silver plays. And I'm behind silver for a lot of reasons...
Over the last 200 years, the mean gold/silver ratio has been 31.32. Tuesday it surged to 69. A simple reversion to the mean makes a great play here. For those of you without finance books handy, it means that silver is more likely to move up to maintain the average ratio.
But that's not all...
Silver – A Consumption Commodity
Silver isn't just a store of value, it's a consumption commodity.
Globally, 63% of demand for silver comes from industry or photography. Only 27% ends up in coins, medals or jewelry. Silver goes into everything from batteries to ball bearings, electronics to electroplating, and medical devices to mirrors.
Only 11% of gold demand comes from industrial uses, and the gap is widening.
Researchers find new uses for silver constantly. For example, UK researchers found that coating medical equipment in silver ions prevents infections. Coating lumber with a fine silver mist makes it resistant to mold and mildew.
As industrial consumption increases, less of each year's production will be available for holding as a precious metal.
However, this does make silver dependent on a consumption economy... which we seem to be lacking at the moment. Silver won't really move until we get a turnaround in the global economy. But that doesn't mean that Silver Wheaton Corp will have to wait that long.
52wk Range: 2.51 - 19.54
Volume: 14,479,749
Avg Vol (3m): 9,243,660
Market Cap: 1.85B
P/E (ttm): 19.04 x
EPS (ttm): 0.39
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
inf%above 13-day MA
19.04%above 50-day MA
RS Rating: 97
Fundamentals
Key Data:
Market Cap (M): $1,798.12
P/E Ratio: 18.54
PEG Ratio: 10.1
Next Earnings: 04/27/2009
Last Analyst Rating: Outperform
Trend continues... probably the best silver play, IMO ;)
initial improvement in gold probably preceding silver but silver likely to catch up and pass.
Quote from: setravis on February 20, 2009, 07:12:02 PM
Silver Wheaton: More than Likely to Move Up.......
The Silver Lining to a Dismal Morning
On a day like today, it's tough to get excited about stocks.
But someone sure was excited about Silver Wheaton Corp (NYSE: SLW) Tuesday morning. It gapped up 2% and kept rising from there. Silver Wheaton is one of a few well-known silver plays. And I'm behind silver for a lot of reasons...
But that's not all...
Silver – A Consumption Commodity
Silver isn't just a store of value, it's a consumption commodity.
Globally, 63% of demand for silver comes from industry or photography. Only 27% ends up in coins, medals or jewelry. Silver goes into everything from batteries to ball bearings, electronics to electroplating, and medical devices to mirrors.
Only 11% of gold demand comes from industrial uses, and the gap is widening.
Trend continues... probably the best silver play, IMO ;)
initial improvement in gold probably preceding silver but silver likely to catch up and pass.
Strong breakout based on QE2, short covering, and dollar sinking.
Gold Silver Palladium appear to be good medium term bets. But this play should be good until Bernanke appears exhausted or deflation appears to be winning.
Day's Range: 33.37 - 35.00
52wk Range: 13.04 - 35.00
Volume: 12,933,732
Avg Vol (3m): 6,457,030
Market Cap: 12.02B
P/E (ttm): 65.07
EPS (ttm): 0.54
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
19.45%above 13-day MA
32.84%above 50-day MA
RS Rating: 96
below the 2 year chart...
Silver Rallies On: Three Things To Consider...
Monday, 8 Nov 2010 | 3:27 PM ET
Silver has been rallying off the charts, fueled in part by some of the same issues behind the gold rally: very low interest rates, easy money and fear of inflation.
But, here are three things to consider before jumping into the pool.
Silver cost of production is really low. How low? Brian Hicks, U.S. Global Investors Co-Manager, Natural Resources provided the following cash cost per once of silver on a few companies they follow:
Pan American Silver [PAAS 36.425 1.845 (+5.34%) ] — $5.90/oz (net of by-product credits)
Silver Wheaton [SLW 35.05 2.10 (+6.37%) ] —company typically buys silver production streams at $3.90 per ounce.
Coeur D'Alene Mines [CDE 24.69 1.21 (+5.15%) ] — reported cash costs of $4.87 per ounce
Hecla Mining [HL 8.995 1.065 (+13.43%) ] — after netting out its lead production, actually reported negative cash costs of -$1.92/oz for the first 9 months of the year
With the price of silver at over $27 per ounce — the highest in 3 decades — I expect silver miners would be thinking about nothing but ramping up production. Or at the very least, might be considering that it's time to hedge. I know if I were on a metals desk, I would be certainly be marketing the concept that forward sales or options at these prices might be worth a look potentially, putting downward pressure on prices.
But, that only covers about 40 percent of the mined silver market. David Wilson, Director of Research at Societe Generale in London says about 60 percent of silver production is a byproduct of other mine production including zinc and copper. And while global demand for these metals is on the rise, mining operations are generally stretched and he does not expect they will be able to increase production to accommodate increased demand.
Central banks do not hoard silver. That's right—central bankers don't buy silver, they buy gold. And pretty sure there aren't any central bankers lying in bed thinking ...where can I find a vault big enough to hoard the silver equivalent of $1 billion in gold bars — taking one very long-term buyer out of this market.
Volatility. Silver is a smaller and more volatile market than gold—it goes up fast and could come down faster. I know of no silver volatility index (and the trading desk at Soc-Gen didn't either) so, it's hard to quantify. But, take my word, it moves.
None of which stopped investors from piling into silver today. Called a "poor man's gold" by many, it is a cheaper alternative to gold for investors looking to get long hard assets—the iShare Silver Trust [SLV 27.11 0.91 (+3.47%) ] almost traded more than double its 3-month average daily volume today.
Momentum is still to the upside, but most of the investors and money managers have been speaking to suggest a more cautionary long-term view.
Forget Gold: Buy Silver Stocks Instead
Zacks
Gold, gold, gold.
Aren't you getting sick of hearing about gold all the time?
Sure it's hitting new all-time highs. It's a good 'story'. But other metals have been outperforming gold all year and they get no love.
Silver, gold's less glamorous precious metal cousin, has never gotten the same kind of love but it's time it did. It just has, frankly, a bad image. Maybe it needs a new PR rep.
It's the 'working' metal as it's not just used in jewelry and silverware but also in many industrial uses such as in cars and in computers and other electronics. That gives it two different customers and as the global recovery continues, demand from the industrial side should increase.
How Do You Invest in Silver?
Because it's not hitting all-time highs, silver gets very little press. No matter that over the last month it has been outperforming gold by a mile.
Silver over the last 30 days: up 20%
Gold over the last 30 days: up 9%
You can always buy the physical metal, either in bars, coins or jewelry. Be sure to check your wallet. Quarters minted before 1964 actually have real silver content and I have occasionally nabbed one that is still in circulation.
Another way to invest is through ETFs. There is a silver ETF that invests in the physical silver.
But a more intriguing investment option is to buy the mining stocks. There actually are mining companies that specialize solely in silver. There are fewer of them than for gold, but they do exist.
Isn't Everyone Already In the Stocks?
Investor interest in the silver miners has been rising in recent weeks as silver prices have surged. Many of them are at new 52-week highs.
They also aren't cheap. As a group, they are trading with a forward P/E of 29 and a price-to-sales ratio of 10.
An investor in the silver miners is banking on rising earnings, as silver prices rise, to provide value.
With silver at 30-year highs and poised to possibly go higher, as long as the miners can get the metal out of the ground (which is always the hardest part, of course), and keep costs down, the future looks bright.
3 Silver Mining Companies Expected To Grow Earnings in 2010
Hecla Mining (NYSE: HL) is the largest silver miner in the United States and mines a little bit of gold on the side as an added bonus.
With an average cash cost per ounce forecast between $1.90 and $2.25 per ounce and silver now trading over $24 an ounce, the company is seeing tremendous cash flow.
In the second quarter, it boosted its cash on the balance sheet to $197 million from $116 million. The company also reaffirmed its full year guidance of 10 to 11 million ounces of silver produced.
2010 Estimates Revised
3 estimates have been revised for 2010 in the last month with 2 being lower and 1 higher out of 8 estimates. The Zacks Consensus has actually risen a penny to 24 cents during that time.
This is earnings growth of 18% over 2009. The company is scheduled to report again on Oct 26.
It's P/E is 29?
Hecla might seem expensive at 29x forward earnings and compared to the S&P 500, it is. But it is in line with its peers.
Hecla is a Zacks #3 Rank (hold) stock.
Despite the soaring silver price, Hecla is trading well below its 2008 high.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49688)
Silver Wheaton (NYSE: SLW) is a different play on silver than the other two companies. It is a metals streaming company which means that it doesn't actually mine the silver but it pays others to do so.
The company currently has 15 silver purchase agreements, and 2 precious metal agreements, where it can then purchase its silver production.
It doesn't hedge its silver production so it is taking advantage of these 30-year high prices. Another one of its advantages are that its mines are in politically stable regions.
Silver Wheaton is forecasting production of 22.2 million ounces of silver and 20,000 ounces of gold in 2010. Its total cash cost for the first six months of 2010 were $4.03 per ounce.
In the second quarter, silver production increased 33% over the same quarter in 2009 which pushed earnings up 200%.
Analysts Revising 2010 Estimates Higher
2 out of 12 estimates have moved higher on 2010 in just the last week. The Zacks Consensus is holding at 70 cents, however.
Earnings are expected to grow 85% as the company made just 38 cents last year.
How Expensive Is It?
The P/E ratio is at nose bleed levels of 39x forward earnings.
But with earnings expected to grow at an average of 71% over the next 5 years, the company has a PEG ratio of just 0.6 which puts it into the more affordable camp.
The stock has been on a tear, however, now trading at 5-year highs.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49689)
Pan American Silver Corporation (NasdaqGS: PAAS) operates 7 silver mines in Peru, Mexico, Bolivia and southern Argentina.
On Aug 11, the company reported second quarter results which saw record silver production that increased 18% to 6.9 million ounces. Cash costs also declined 6% to $5.64 per ounce.
The balance sheet isn't too shabby either, with cash and short term investments at $237.7 million at the end of June and no debt. It also has a $70 million credit facility but it hasn't had to draw on it.
Analysts Raising Estimates In the Last Week
The higher silver prices are playing with the analysts estimates. How do they keep up with the rising prices? 1 estimate has moved higher in the last week for 2010.
Earnings are expected to climb 25.5% to 89 cents in 2010. Analysts are even more bullish about 2011, with earnings forecasted to climb another 59.2%.
It's Not Cheap
Once again, Pan American Silver is not exactly a cheap stock. It is trading with a forward P/E of 34 and has a price-to-sales ratio of 5.
It is also a Zacks #3 Rank (hold) stock. We'll have to wait until Nov 11 to get third quarter results.
Shares have also been jumping, along with silver prices, but the stock is still trading well-below its 2008 high.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=49690)
This is the best silver stock. Because they don't have to dig it up.
Made a small pullback and now has resumed its strong uptrend.
Silver has been rallying off the charts, fueled in part by some of the same issues behind the gold rally...very low interest rates...easy money and fear of inflation.
Day's Range: 39.74 - 40.99
52wk Range: 13.04 - 40.99
Volume: 14,195,691
Avg Vol (3m): 9,156,110
Market Cap: 14.15B
P/E (ttm): 65.14
EPS (ttm): 0.63
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
11.00%above 13-day EMA
29.31%above 50-day EMA
RS Rating: 96
The two best silver miners stocks are SLW and HL. Silver is outpeforming Gold these days
Let's take advantage of this rally while it lasts.
GLTA
Silver surged to a 30-year high on a day when the markets ended mixed on Monday.
Silver for March delivery was testing $30 in midday trading. Silver prices were rising 68 cents to $29.96 as investors sought the inflation protection attributes of gold's "poorer cousin" and security from economic uncertainties. Speculators took advantage of the spike.
Silver Wheaton Reports Record Quarterly Earnings
THIRD QUARTER HIGHLIGHTS:
- Net earnings more than doubled to a record US$69.2 million (US$0.20 per share), compared with US$33.6 million (US$0.11 per share) in 2009.
- Operating cash flows increased 55% to US$70.5 million (US$0.20 per share)(1), compared with US$45.4 million (US$0.14 per share)(1) in 2009.
- Record attributable silver equivalent production of 5.9 million ounces (5.5 million ounces of silver and 7,000 ounces of gold), representing an increase of 41% over the comparable period in 2009.
- Silver equivalent sales of 4.7 million ounces (4.3 million ounces of silver and 7,100 ounces of gold), lagging production for the quarter due primarily to the build-up of concentrate inventory as the Penasquito mine ramps up production, as well as timing of concentrate shipments from the Yauliyacu and Campo Morado mines.
- As at September 30, 2010, approximately 2.2 million payable silver equivalent ounces attributable to the Company have been produced at the various mines and will be recognized in future sales as they are delivered to the Company under the terms of their contracts.
- Total cash costs(1) of US$4.09 per silver equivalent ounce, compared with US$4.08 per ounce in 2009.
- Cash operating margin(1) increased 42% compared to 2009, to a record US$15.72 per silver equivalent ounce, while average silver prices over the same period increased by 29%.
- Goldcorp Inc. announced that its world-class gold-silver-lead-zinc Penasquito mine achieved commercial production during the quarter with peak throughput rates as high as 105,000 tonnes per day. The ramp up to full production capacity of 130,000 tonnes per day is anticipated by early 2011. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life.
- Barrick Gold Corp.'s world-class gold-silver Pascua-Lama project remains on track to enter production in the first quarter of 2013, with detailed engineering and procurement nearing completion and earthworks underway. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first five years of operation, Silver Wheaton's attributable silver production is expected to average 9 million ounces annually.
- Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp. In conjunction with the sale, Silver Wheaton amended its silver purchase agreement relating to the mine. The term of the silver purchase agreement, which was set to expire in 2029, has been extended to life of mine. During the first four years following closing of the transaction, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. Beginning in the fifth year after closing, Primero will deliver to the Company a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess. Goldcorp will continue to guarantee the delivery by Primero of all silver produced and owing to the Company until 2029, and a payment of US$0.50 per ounce for any shortfall below 215 million cumulative silver ounces delivered to Silver Wheaton by the end of 2031. Primero has provided Silver Wheaton with a right of first refusal on any metal stream or similar transaction it enters into.
(1) Refer to discussion on non-GAAP measures at the end of this press release.
"Silver Wheaton had record production in the quarter, anchored by the continued successful ramp up of one of our cornerstone growth assets, Goldcorp's world-class Penasquito mine in Mexico," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "Penasquito reached commercial production during the quarter and expects to achieve full production capacity in early 2011, in what promises to be another year of significant production growth for Silver Wheaton."
"While quarterly sales were lower than production, due in part to the build-up of concentrate inventory as Penasquito ramps up production, as well as the timing of shipments from the Yauliyacu and Campo Morado mines, we still achieved record earnings. Increased shipments in the fourth quarter are expected to make up for the sales shortfall and we remain on track to meet production guidance of 23.5 million silver equivalent ounces in 2010, growing to approximately 40 million ounces by 2013."
"In an environment of continued economic uncertainty, investment demand for silver remains very strong, and silver prices approached 30 year highs in the quarter. This resulted in record cash operating margins of US$15.72 per ounce, generating strong free cash flows to fund future growth."
"Lastly, during the quarter, Goldcorp finalized the sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer. In conjunction with this, Silver Wheaton amended its silver purchase agreement, which continues to provide Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine. San Dimas remains a key asset within our portfolio and we are confident that the amended silver purchase agreement will create additional long term value for our stakeholders."
This earnings release should be read in conjunction with Silver Wheaton's unaudited MD&A and Financial Statements, which are available on the Company's website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.0 million ounces of silver and 28,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 40 million silver equivalent ounces. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Penasquito mine and Barrick's Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
Non-GAAP Measures
Silver Wheaton has included, throughout this press release, certain non-GAAP performance measures, including total cash costs of silver and gold on a sales basis, as well as operating cash flows per share and cash operating margin. These non-GAAP measures do not have any standardized meaning prescribed by GAAP, nor are they necessarily comparable with similar measures presented by other companies. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Cash operating margin is defined as the realized selling price less total cash cost per silver equivalent ounce. The Company believes that certain investors use this information to evaluate the Company's performance. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. During the three months ended September 30, 2010, the Company's total cash costs, which were equivalent to the Company's cost of sales in accordance with GAAP, were $3.98 per ounce of silver and $300 per ounce of gold (2009 - $3.97 per ounce of silver and $300 per ounce of gold).
For further information: Brad Kopp, Vice President, Investor Relations, Silver Wheaton Corp., Tel: 1-800-380-8687, Email: info(at)silverwheaton.com, Website: www.silverwheaton.com
Quote from: hectorgr on December 06, 2010, 10:53:19 PM
The two best silver miners stocks are SLW and HL. Silver is outpeforming Gold these days
Let's take advantage of this rally while it lasts.
GLTA
Agree ! ;D ;)
Have a thread on HL, which I have posted an update to it as well...
Silver Wheaton Series "B" Common Share Purchase Warrants Expiring December 22, 2010
Press Release Source: Silver Wheaton Corp. On Thursday December 2, 2010, 5:30 pm EST
TSX: SLW
NYSE: SLW
VANCOUVER, Dec. 2 /PRNewswire/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW) advises holders of the Series "B" common share purchase warrants (TSX:SLW.WT.B.to - News) (the "Warrants") that the deadline for exercising the Warrants is December 22, 2010. Warrant holders are entitled to receive one share of Silver Wheaton upon exercise of one Warrant and payment of the exercise price of C$10.00 prior to their expiry.
U.S. persons may only exercise the Warrants pursuant to certain exemptions as set out in the subscription form on the back of the Warrant certificate.
Warrant holders who hold their Warrants in the account of a brokerage firm can instruct their broker to exercise the Warrants on their behalf.
If you are a registered Warrant holder and have questions or require assistance for the exercise of your Warrants, please contact CIBC Mellon Trust Company at 1-800-387-0825.
The Warrants described herein and the securities issued upon exercise of the Warrants have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions there from. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the Company's securities in the United States.
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.0 million ounces of silver and 28,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 40 million silver equivalent ounces. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Penasquito mine and Barrick's Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
Top Strategist: Silver Surging To At Least $50
Should you buy silver on the pullback? According to strategist John Stephenson there's no time like the present.
He thinks silver is on the brink of a surge. In fact, he's calling for silver to hit new record highs - - $50 / ounce. The Fast Money traders were so intrigued by this very bold call they wanted to hear more.
In a live interview Stephenson, the author of "The Little Book Of Commodity Investing" tells the desk that his $50 prediction may be conservative. That's right, conservative.
"If you look at the ratio of silver to gold during the 1970's (which is the last time it hit an all time) it was 16-1." Now that ratio is even greater. "It's currently at 50-1. That would imply silver should be at $88," he says.
***********************************************
John Stephenson's Ways To Play Silver
Silver Futures [SIC1 29.31 -0.057 (-0.19%) ]
iShares Silver Trust [SLV 28.61 0.04 (+0.14%) ]
Pan American Silver [PAAS 40.04 0.4475 (+1.13%) ]
Hecla Mining [HL 10.77 0.03 (+0.28%) ]
Silver Wheaton [SLW 36.74 0.31 (+0.85%) ]
***********************************************
If you're concerned about demand for silver falling off, Stephenson says don't be. He thinks money continues to rotate into silver (and all precious metals for that matter) due to growing "concerns with the level of debt that the government is racking up in the US." In other words Stephenson expects the so-called race to debase will generate investor interest in metals for some time to come.
How should you trade?
Of all the names listed above, Stephenson tells the desk he likes Silver Wheaton best "because it's not really a miner it's a royalty company. And its going to double production over the next two years."
SLW Silver Wheaton Reports Record Operating and Financial... by PR Newswire Mar 3 2011 6:30PM
VANCOUVER, British Columbia, March 3, 2011 /PRNewswire via COMTEX/ -- Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (SLW) is pleased to announce its unaudited results for the fourth quarter and the year ended December 31, 2010.
FOURTH QUARTER HIGHLIGHTS (3 Months)
The Company had record quarterly net earnings, operating cash flows, attributable production and sales, as follows:
- Net earnings more than doubled to US$123.0 million (US$0.35 per share)
compared with US$50.8 million (US$0.15 per share) in 2009.
- Operating cash flows increased 76% to US$124.7 million (US$0.36 per
share)(1) compared with US$71.0 million (US$0.21 per share)(1) in 2009.
- Attributable silver equivalent production of 6.3 million ounces (6.1
million ounces of silver and 4,100 ounces of gold), representing an
increase of 10% over the comparable period in 2009.
- Silver equivalent sales of 5.7 million ounces (5.5 million ounces of
silver and 2,600 ounces of gold), representing an increase of 11% over
the comparable period in 2009.
- Total cash costs were US$4.02(1) per silver equivalent ounce, compared
with US$4.04(1) per ounce in 2009.
- Cash operating margin(1) increased 64% compared to 2009, to a record
US$22.42 per silver equivalent ounce, while average silver prices over
the same period increased by 50%.
- Acquired 3.0 million common shares of Bear Creek Mining Corporation for
total consideration of C$19.1 million. At December 31, 2010, Silver
Wheaton owned 13.3 million common shares of Bear Creek representing
approximately 14% of the outstanding shares on an undiluted basis.
2010 HIGHLIGHTS (12 Months)
The Company had record annual net earnings, operating cash flows, attributable production and sales, as follows:
Net earnings more than doubled to US$290.1 million (US$0.84 per share) compared to US$117.9 million (US$0.39 per share) in 2009.
Operating cash flows increased 93% to US$319.8 million (US$0.93 per share)(1) compared to US$165.9 million (US$0.54 per share)(1) in 2009.
Attributable silver equivalent production of 23.9 million ounces (22.1 million ounces of silver and 28,800 ounces of gold), representing an increase of 37% compared to 2009.
Silver equivalent sales of 20.5 million ounces (18.9 million ounces of silver and 25,900 ounces of gold), representing an increase of 29% compared to 2009.
Total cash costs were US$4.04(1) per silver equivalent ounce, compared with US$4.03(1) per ounce in 2009.
Cash operating margin(1) increased 50% compared to 2009, to a record US$16.63 per silver equivalent ounce, while average silver prices over the same period increased by 38%.
As at December 31, 2010, approximately 2.4 million payable silver equivalent ounces attributable to the Company have been produced at the various mines and will be recognized in future sales as they are delivered to the Company under the terms of their contracts.
Acquired an amount equal to 100% of the life of mine silver and gold production from Augusta Resource Corporation's Rosemont Copper project in the United States. Once production commences, Rosemont is forecast to increase Silver Wheaton's long-term annual production by approximately 2.4 million ounces of silver, plus any gold production, estimated by Augusta to average up to 15,000 ounces of gold per annum.
Converted the debenture with Pan American Silver Corp. into an agreement to acquire an amount equal to 12.5% of the life of mine silver production from the Loma de La Plata zone of the Navidad project located in Argentina. Navidad is forecast to increase Silver Wheaton's long-term annual silver production by up to 2 million ounces.
Acquired 1.8 million units of Ventana Gold Corp. for total consideration of C$20.7 million (US$19.8 million). As part of this transaction, Silver Wheaton has been granted a right of first refusal over any silver streams relating to Ventana's Colombian properties, including the highly prospective La Bodega project, which has the potential to host a world-class gold deposit with significant silver by product credits.
Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp. In conjunction with the sale, Silver Wheaton amended its silver purchase agreement relating to the mine. The term of the agreement, which was set to expire in 2029, was extended to the life of mine. During the first four years following closing of the transaction, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. Beginning in the fifth year after closing, Primero will deliver to the Company a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess. Primero has provided Silver Wheaton with a right of first refusal on any metal stream or similar transaction it enters into.
Goldcorp Inc. announced that its world-class gold-silver-lead-zinc Penasquito mine achieved commercial production, on schedule, with peak throughput rates as high as 105,000 tonnes per day. The ramp up to full production capacity of 130,000 tonnes per day is anticipated by the end of the first quarter of 2011. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life.
Barrick Gold Corporation's world-class gold-silver Pascua-Lama project is forecast to commence production in the first half of 2013, with detailed engineering and procurement nearing completion and earthworks well underway. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first five years of operation, Silver Wheaton's attributable silver production is expected to average 9 million ounces annually.
(1) Refer to discussion on non-GAAP measures at the end of this press release.
"2010 was a tremendously successful year, with the Company setting new records on all financial and operating metrics. In just six years, Silver Wheaton has grown its market capitalization to in excess of US$15 billion, and has more silver reserves than any silver company in the world," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "We were especially pleased that the production ramp up at the first of our cornerstone assets, Goldcorp's world-class Penasquito mine in Mexico, exceeded expectations and contributed to Silver Wheaton's peer-leading 37% annual production growth. This was particularly timely as silver prices climbed to 30 year highs which resulted in record quarterly and annual results."
"This momentum is expected to continue into 2011, with forecast production growth of another 15%, which will result in operating cash flows of over US$700 million at current metal prices. Production growth over the next five years is forecast at approximately 80%, which represents one of the strongest growth profiles in the precious metals industry and is driven by the continued ramp up at Penasquito and the forecast 2013 production start at Barrick's world-class Pascua-Lama project."
"To supplement our growth in 2014 and beyond, important transactions were completed in 2010. These include a life-of-mine precious metals purchase agreement relating to the Rosemont project in Arizona and converting a debenture allowing us to acquire a portion of the life-of-mine silver production from the Loma de La Plata zone of the Navidad project in Argentina. Combined, these projects are forecast to increase our long-term silver equivalent production by up to 5 million ounces per annum, once in production. We also acquired a right of first refusal on all future silver streams from one of the most exciting gold discoveries in the last decade, the La Bodega project in Colombia, and amended the silver purchase agreement relating to the San Dimas mine in Mexico, which should result in lasting benefits to our shareholders, including the potential for increased silver production."
"With cash on hand of over US$428 million, a fully undrawn US$400 million revolving credit facility and strong cash flows from operations, we remain exceptionally well-positioned to continue growing our silver stream portfolio. Merger and acquisition activity in the mining industry is anticipated to remain robust in 2011, and Silver Wheaton continues to offer an attractive mainstream financing solution to assist companies in achieving their growth goals."
2011 and Five Year Silver Equivalent Production Forecast
The Company estimates, based upon its current agreements, to have 2011 attributable production of 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. This represents a 15% increase compared to 2010. Total cash costs in 2011 are anticipated to be approximately US$4 per silver equivalent ounce, unchanged from 2010. By 2015, based upon its current agreements, annual attributable production is anticipated to increase by 80% to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold.
For further information:
Brad Kopp
Vice President, Investor Relations
Silver Wheaton Corp.
Tel: 1-800-380-8687
Email:
[email protected] Website: http;//
www.silverwheaton.com
SOURCE Silver Wheaton Corp.
SLW Silver Wheaton Declares Inaugural Dividend by PR Newswire Mar 3 2011 6:34PM
VANCOUVER, British Columbia, March 3, 2011 /PRNewswire via COMTEX/ -- Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW) is pleased to announce that its Board of Directors has approved an inaugural quarterly cash dividend of US$0.03 per common share (US$0.12 per common share, annually), commencing immediately. The initial dividend of US$0.03 per common share will be paid to holders of record of its common shares as of the close of business on March 21, 2011. The dividend will be distributed on or about March 31, 2011.
"The successful ramp up during 2010 of the first of our cornerstone growth assets, Goldcorp's Penasquito mine in Mexico, marked a major milestone for our company, and resulted in record operating cash flows for the year," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With cash on hand in excess of $428 million at year-end, and a business model that consistently results in amongst the highest cash operating margins in the precious metals industry, it is the ideal time for Silver Wheaton to implement a sustainable long-term dividend policy. This will not only allow our shareholders to participate in one of the strongest growth profiles in the industry, but will also provide a dividend yield, with the potential to increase over time, further positively differentiating us from a silver exchange traded fund."
This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Penasquito mine and Barrick's Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at http://www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
For further information, please contact:
Brad Kopp
Vice President, Investor Relations
Silver Wheaton Corp.
Tel: +1-800-380-8687
Email:
[email protected] Website:
http://www.silverwheaton.com
SOURCE Silver Wheaton Corp.
Canadian Miners Shine On Takeover Chatter, Earnings News
After taking a breather on Thursday, gold and silver miners are charging higher again today with the Canadian Mining Stocks Index jumping 2.2%, driven higher by some speculative takeover chatter and some impressive profit results from one of the Index's biggest members.
On the mergers and acquisitions front, First Majestic Silver (NYSE: AG) CEO Keith Neumeyer just can't figure out why a larger mining company hasn't acquired his firm yet. "I can't believe it hasn't happened yet," Neumyer said in an interview with Reuters. At a time when silver prices are surging, First Majestic, with a market cap of $1.5 billion, said it is looking to double its silver production to 16 million ounces over the next three years.
Companies such as Hecla Mining (NYSE: HL) and Pan American Silver (NASDAQ: PAAS) recently announced lower silver production forecasts, Reuters reported. First Majestic, which operates exclusively in Mexico, only mines silver and Neumeyer said he sees the price of the white metal going to $100.
Shares of larger rival Silver Wheaton (NYSE: SLW) are up 2% today after the company said it earned 35 cents a share in the fourth quarter, topping the Wall Street estimate of 30 cents. Silver Wheaton also gave investors reason to cheer by announcing it would begin paying a quarterly dividend of three cents a share. The dividend is payable on March 31 to shareholders of record on March 21.
Barrick Gold (NYSE: ABX), the largest Index component by market value, is up 1% while New Gold (AMEX: NGD) is up 6% after the company said its fourth-quarter gold production jumped 11%.
Investors can track the Canadian Mining Stocks Index for performance trends and a suite of other metrics at tickerspy.com.
Fun and informative, tickerspy.com is a free investing website where you can track multiple stock portfolios and compare against 250 proprietary Indexes tracking themes from dividends to ETFs to green energy to precious metals. Best of all, tickerspy.com lets you spy on the portfolios of nearly 3,000 Wall Street institutions and hedge funds and see graphs of their performance. Try tickerspy.com today and find out how you stack up against investing legends like Warren Buffett!
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Day's Range: 44.15 - 45.40
52wk Range: 14.83 - 45.40
Volume: 18,138,645
Avg Vol (3m): 12,089,300
Market Cap: 15.55B
P/E (ttm): 72.01
EPS (ttm): 0.62
Div & Yield: N/A (N/A)
Technicals
Last Price Quote is:
11.40%above 13-day EMA
23.38%above 50-day EMA
RS Rating: 82
Demand Fundamentals Favor Silver Wheaton and Great Panther Silver
The Bedford Report Provides Equity Research on Silver Wheaton and Great Panther Silver
Press Release Source: The Bedford Report On Tuesday July 12, 2011, 8:16 am EDT
NEW YORK, NY--(Marketwire - 07/12/11) - Silver stocks have been steady this month as favorable demand reports have helped offset concerns regarding the slowing economic recovery. With silver demand on the upswing in several emerging economies, silver companies are feverishly boosting production. The Bedford Report examines the outlook for the Silver Market and provides equity research on Silver Wheaton Corporation (NYSE:SLW) (TSX:SLW) and Great Panther Silver Ltd. (AMEX:GPL) (TSX:GPR). Access to the full company reports can be found at:
www.bedfordreport.com/SLW
www.bedfordreport.com/GPL
According to reports from SilverSeek, silver's availability on the Comex has fallen 38 percent to 29 million since 2011 began. Meanwhile, the amount available for Comex clients has increased 23 percent to 72 million ounces.
The Silver Institute forecasts that total industrial use of the metal will rise 36 percent over the next five years to more than 665 million troy ounces annually. New technologies in solar energy, water purification and medical instruments are expected to keep industrial demand for the metal surging going forward.
The Bedford Report releases investment research on The Silver Market so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.
Great Panther Silver has instituted a three year plan to boost production. Last month the company posted a 95% year-on-year increase in revenue to $15.5 million for the quarter ended March 31, 2011. The company backed its production target of 3.8 million silver equivalent ounces for 2012.
As of December, 2010, Silver Wheaton had entered into 14 long-term silver purchase agreements and two long-term precious metal purchase agreements. The Company operates in nine business segments: the silver produced by the San Dimas, Zinkgruvan, Yauliyacu, Penasquito, Cozamin, Barrick and Other mines, the gold produced by the Minto mine and corporate operations.
The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer.
Contact:
Contact:The Bedford ReportEmail Contact
Continued market momentum in both gold and silver.
13-day MA crossover the 50-day MA
Day's Range: 38.02 - 38.81
52wk Range: 17.64 - 47.60
Volume: 7,598,238
Avg Vol (3m): 12,729,000
Market Cap: 13.71B
P/E (ttm): 37.24
EPS (ttm): 1.04
Div & Yield: 0.12 (0.30%)
Technicals
Last Price Quote is:
7.92%above 13-day EMA
9.92%above 50-day EMA
RS Rating: 29
SILVER WHEATON TO RELEASE SECOND QUARTER 2011 RESULTS ON AUGUST 8th
SILVER WHEATON TO RELEASE SECOND QUARTER 2011 RESULTS ON AUGUST 8th
VANCOUVER, July 5, 2011 /PRNewswire/ - Silver Wheaton Corp. (TSX:SLW.to) (NYSE:SLW) will release second quarter financial results on Monday, August 8, 2011, prior to market open.
A conference call will be held Monday, August 8, 2011, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:
Live audio webcast: www.silverwheaton.com
Dial toll free from Canada or the US: 1-888-231-8191
Dial from outside Canada or the US: 1-647-427-7450
Pass code: 80457512
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and you can listen to an archive of the call by
Archived audio webcast: www.silverwheaton.com
Also by dialing same numbers above with pass code.
Silver Wheaton revenues more than double...
Press Release Source: Silver Wheaton Corp. On Monday August 8, 2011, 6:30 am EDT
SECOND QUARTER HIGHLIGHTS
Attributable silver equivalent production increased 5% compared with Q2 2010, to 6.2 million ounces (5.9 million ounces of silver and 6,500 ounces of gold).
Revenue more than doubled compared with Q2 2010, to a record US$194.8 million, on silver equivalent sales of 5.1 million ounces (4.9 million ounces of silver and 5,700 ounces of gold).
Net earnings almost tripled compared with Q2 2010 (on an adjusted basis1), to a record US$148.1 million (US$0.42 per share).
Operating cash flows increased 151% compared with Q2 2010, to a record US$168.3 million (US$0.48 per share1).
Cash operating margin1 increased 137% compared with Q2 2010, to a record US$34.21 per silver equivalent ounce, demonstrating Silver Wheaton's significant leverage to increasing silver prices.
Average cash costs of US$4.141 per silver equivalent ounce.
Quarter-end cash balance of US$701.4 million, with a net cash position of US$608.5 million.
Randy Smallwood, the President and one of the founders of Silver Wheaton, was appointed Chief Executive Officer, replacing Peter Barnes who resigned effective April 11, 2011. Since 2004, Mr. Smallwood has been instrumental in building Silver Wheaton into the second largest silver company in the world.
"Silver Wheaton delivered another quarter of record financial results in Q2 2011," said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. "Though quarterly silver sales have lagged production over the past year, primarily due to a build-up of concentrate inventories at Glencore's Yauliyacu mine in Peru and Goldcorp's Peñasquito mine in Mexico, we have now had five consecutive quarters of increasing operating cash flows. With silver production rates forecast to grow by 80% over the next five years, and ongoing global economic and political uncertainties supporting robust silver prices, our shareholders should continue benefiting from strong free cash flow generation in the years ahead."
"Quarterly production was impacted by operational challenges at some of our partners' mines, including lower quarterly throughput than anticipated at the Peñasquito mine in Mexico, which continues to ramp up production levels; and a one month mill workers' strike at the San Dimas Mine in Mexico, which is now resolved. As previously reported, Silver Wheaton has reduced its 2011 attributable silver equivalent production guidance, primarily due to decreased annual production guidance at the Peñasquito mine, which is now anticipated to reach full production capacity in early 2012. Our long-term 2015 attributable production guidance remains unchanged at approximately 43 million silver equivalent ounces, including 35,000 ounces of gold, which is one of the strongest growth profiles in the entire precious metals industry."
"The mining industry once again finds itself facing significant inflationary pressures, resulting in accelerating operating and capital costs. The benefits to Silver Wheaton in this environment are twofold. First, Silver Wheaton is immune from inflationary cost pressures as our unique business model guarantees essentially fixed operating costs of approximately US$4/oz. Fixed costs provide our investors with significant margin expansion as silver prices climb. Second, as mining companies' capital commitments continue to materially increase, and cash needs arise, Silver Wheaton can offer a very attractive source of funds compared to other forms such as debt and equity. When combined with one of the strongest growth profiles in the precious metals industry and a dividend yield with the potential to grow over time, we believe that Silver Wheaton continues to be the premier investment vehicle for investors desiring silver exposure."
Financial Review
Revenues
Revenue was US$194.8 million in the second quarter of 2011, on silver equivalent sales of 5.1 million ounces (4.9 million ounces of silver and 5,700 ounces of gold). This represents a 105% increase from the US$95 million in revenue generated in the second quarter of 2010, due primarily to increases in the average realized selling price of silver and gold of 108% and 24%, respectively.
Costs and Expenses
Average cash costs in the second quarter of 2011 were US$4.141 per silver equivalent ounce, compared with US$4.031 during the comparable period of 2010. This resulted in cash operating margins1 of US$34.21 per silver equivalent ounce, a 137% increase compared with the second quarter of 2010, demonstrating Silver Wheaton's leverage to increasing silver prices.
Second quarter net earnings included several non-cash expenses. These included a US$3.0 million expense, classified as 'Other', primarily in relation to a US$2.7 million non-cash, fair value loss recorded on the Company's share purchase warrants held. In addition, the Company recorded a non-cash deferred income tax expense of US$2.2 million, primarily in relation to income from Canadian operations.
Earnings and Operating Cash Flow
Net earnings in the second quarter of 2011 were US$148.1 million (US$0.42 per share), compared with adjusted net earnings1 of US$52.7 million (US$0.15 per share) for the same period in 2010, an increase of 181%. Cash flow from operations in the second quarter of 2011 were US$168.3 million (US$0.48 per share1), compared with US$67.0 million (US$0.20 per share1) for the same period in 2010, an increase of 151%. The increase in net earnings and operating cash flow is primarily attributable to increased selling prices of silver and gold.
Balance Sheet
At the end of the second quarter, the Company had approximately US$701 million of cash on hand and US$400 million of available credit under its revolving bank debt facility. The cash and available credit, together with strong operating cash flows, position the Company well to execute on its growth strategy of acquiring additional accretive silver stream interests.
Operations Highlights
Attributable silver equivalent production was 6.2 million ounces (5.9 million ounces of silver and 6,500 ounces of gold) in the second quarter of 2011, a 5% increase compared to the second quarter of 2010.
At Goldcorp's world-class Peñasquito mine, silver grades and recoveries continued to meet or exceed expectations; however, processing rates were less than anticipated in the quarter. This was due to lower than forecast pebble feed from the SAG mills to the high pressure grinding roll circuit, and slower-than-expected progress on the raising of the tailings dam embankment resulting in insufficient water for full operation of the milling circuit. Goldcorp is undertaking measures to remedy these issues and full production capacity of 130,000 tonnes-per-day is anticipated to be achieved by the end of the first quarter of 2012.
Primero's San Dimas mine experienced a 31-day mill workers' strike, beginning on March 30, 2011, resulting in reduced mill throughput levels during the second quarter. The strike was resolved on May 2, 2011. As the San Dimas mill has been running below its nameplate capacity of 2,100 tonnes-per-day, Primero expects that the ore stock-piled during the stoppage can be processed in addition to regular daily production, and anticipates meeting its annual forecast silver production.
Barrick Gold Corporation's world-class gold-silver Pascua-Lama project remains on track to commence production in the first half of 2013. Over 40% of the pre-production capital budget of $4.7 to $5.0 billion has been committed with the engineering design approximately 90% complete. In Chile, earthworks are more than 80% complete, with significant infrastructure development in Argentina also advancing. Preparations are underway to commence pre-strip mining in Q4 2011. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first full five years of operation, Silver Wheaton's attributable silver production is expected to average nine million ounces annually.
Payable silver equivalent ounces produced but not yet delivered by our partners increased by over 500,000 ounces in the second quarter, resulting in a total of approximately 3.5 million payable ounces at June 30, 2011. This was primarily the result of a continued build-up in concentrate inventories at the Peñasquito mine as it ramps up production levels, as well as at the Yauliyacu mine which continues to experience an irregular concentrate shipment schedule.
Since mid-2009, concentrate shipments from the Yauliyacu mine have been affected by the shut-down of the Doe Run Peru smelter, the largest buyer of the concentrate produced at the mine. Since that time, Glencore has had to make alternative smelting arrangements for its stockpiled bulk concentrates at Yauliyacu. This has led to an inconsistent delivery schedule and a corresponding increase in the cumulative payable silver equivalent ounces produced but not yet delivered to Silver Wheaton.
In the second quarter of 2011, Glencore began producing separate, and more marketable, copper and lead concentrates, replacing the bulk concentrate. The consistency and quantity of these new concentrates are expected to increase in future quarters, and we anticipate more consistent silver deliveries to Silver Wheaton as this occurs.
As at June 30, 2011, approximately 1.3 million ounces of cumulative payable silver equivalent ounces have been produced at Yauliyacu but not yet delivered to Silver Wheaton. Approximately 900,000 ounces are attributable to the bulk concentrate, while 400,000 ounces are attributable to the new copper and lead concentrates.
Detailed mine by mine production and sales figures can be found in the Appendix of the press release or in Silver Wheaton's MD&A in the 'Results of Operations and Operational Review' section.
Operational highlights do not include material updates at mines with which Silver Wheaton has a silver purchase agreement but our partners have yet to report their quarterly results.
This earnings release should be read in conjunction with Silver Wheaton's unaudited MD&A and Financial Statements, which are available on the Company's website at www.silverwheaton.com and have also been posted on SEDAR at www.sedar.com.
Webcast and Conference Call Details
A conference call will be held Monday, August 8, 2011, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:
Dial toll free from Canada or the US:
Dial from outside Canada or the US:
Pass code:
Live audio webcast: 1-888-231-8191
1-647-427-7450
80457512
www.silverwheaton.com
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and you can listen to an archiv e of the call by one of the following methods:
Dial toll free from Canada or the US:
Dial from outside Canada or the US:
Pass code:
Archived audio webcast: 1-800-642-1687
1- 416-849-0833
80457512
www.silverwheaton.com
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 25 to 26 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Peñasquito mine and Barrick's Pascua-Lama project.
1. Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) average cash costs of silver and gold on a per ounce basis; (ii) operating cash flows per share (basic and diluted); (iii) cash operating margin and; (iv) adjusted net earnings and adjusted net earnings per share.
i. Average cash cost of silver and gold on a per ounce basis is calculated by dividing the cost of sales by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
ii. Cash operating margin is calculated by subtracting the average cash cost of silver and gold on a per ounce basis from the average realized selling price of silver and gold on a per ounce basis. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
iii. Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
iv. Adjusted net earnings and adjusted net earnings per share is calculated by removing the effects of the non-cash, fair value adjustment on the Company's previously issued and outstanding share purchase warrants which had an exercise price denominated in Canadian dollars from net earnings of the Company. As more fully described in the financial statements, these warrants are classified as a financial liability with any fair value adjustments being reflected as a component of net earnings. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance. For the three months ended June 30, 2010, the net effect of these adjustments was to increase net earnings by US$37.4 million. As there were no share purchase warrants with an exercise price denominated in Canadian dollars outstanding during 2011, there were no fair value adjustments recorded as a component of net earnings during the three months ending June 30, 2011. As a result, adjusted net earnings is equivalent to net earnings for this period.
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
Silver Wheaton Declares Third Quarterly Dividend Payment For 2011
VANCOUVER, Aug. 8, 2011 /PRNewswire/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW.to) (NYSE:SLW) is pleased to announce that its Board of Directors has declared its third quarterly cash dividend payment for 2011 of US$0.03 per common share. The quarterly dividend will be paid to holders of record of its common shares as of the close of business on September 20, 2011, and will be distributed on or about September 30, 2011.
The Company's dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.
Day's Range: 32.32 - 34.58
52wk Range: 19.06 - 47.60
Volume: 5,274,677
Avg Vol (3m): 10,297,900
Market Cap: 12.21B
P/E (ttm): 33.18
EPS (ttm): 1.04
Div & Yield: 0.12 (0.40%)
Technicals
Last Price Quote is:
-4.72%below 13-day EMA
-4.53%below 50-day EMA
RS Rating: 69
lots of resistance ahead as prices hear are around the neckline of the nasty top formed in March - April.
Here's one with very good fundamentals. Let's play silver.
Oversold...
Day's Range: 28.75 - 29.49
52wk Range: 25.84 - 47.60
Volume: 4,679,321
Avg Vol (3m): 5,752,440
Market Cap: 10.24B
P/E (ttm): 17.12
EPS (ttm): 1.69
Div & Yield: 0.36 (1.20%)
Technicals
Last Price Quote is:
-1.65%below 13-day EMA
-8.73%below 50-day EMA
RS Rating: 23