Monday, November 8, 2010

Silver Wheaton Reports Earnings

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Silver Wheaton (SLW) reported Q3 earnings after the close tonight and they hit it out of the ball park. Itz has been targeting $40 for SLW as posted in this past blog post >>READ

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%. >>More info

Gold, Silver & Energy Outlook

Using options to protect against a pullback in silver, with Mike Khouw of Cantor Fitzgerald.

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