Silver Wheaton reports record profit, record silver equivalent production

Silver Wheaton CEO Peter Barnes called it "very pleasing to report record attributable silver production, sales earnings and cash flows" during the third quarter and first nine months of this year.

RENO, NV - 

Silver Wheaton reported record attributable production of 4.3 million silver equivalent ounces and record net earnings of US$33.6 million or 11-cent per share during the third quarter of this year.

However, net income for the first nine months of this year dropped from $71.4 million or 32-cents per share a year ago to $67.1 million or 23-cents per share.

During the first nine months of the year, Silver Wheaton reported the production of 11,761,000 silver equivalent ounces, compared to 8.7 million ounces for the same period of 2008.

Silver Wheaton generates its revenue primarily from the sale of silver streams produced by other mining companies. The company reported record silver equivalent sales of 4.6 million silver equivalent ounces for the third quarter and 10.7 million silver equivalent ounces for the first nine months of the year. This compares to silver sales of 2.7 million and 8.4 million ounces, respectively for the comparable quarters of 2008.

Forecast production this year is 17 million silver equivalent ounces or 16 million ounces of silver and 17,000 ounces of gold. Silver Wheaton is hoping to more than double total production to 40 million silver equivalent ounces by 2013.

The decline in net earnings for the first nine months of this year was primarily attributed to the following factors: a decrease in the average realized selling price of silver; a 27% increase in the number of silver equivalent ounces sold; a $6.6 million reduction in corporate costs; and a 41% increase in depletion per ounce.

As of September 30, 2009, the company had cash and cash equivalents of $304.9 million and working capital of $5.6 million.

During the third quarter, the company entered into an agreement with Barrick Gold to acquire 25% of the life of mine silver production from Barrick's Pascua-Lama project, as well as all of the silver production from Barrick's Lagunas Norte, Pierina and Veladero mines until the end of 2013. Silver Wheaton will pay $625 million in cash in installments, of which $212.5 million has been paid to date.

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SILVER WHEATON Jose Ignacio, noticias de SLW by JAIME BLANCO on November 10 2009, 11:56 Find this comment inappropriate? Report it

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