Silver Wheaton Q3 Profit Plunges On Lower Prices, Higher Costs

(RTTNews) - Silver and gold streaming company Silver Wheaton Corp. (SLW.TO, SLW) Monday reported a sharp decline in third-quarter profit, hit by lower prices for metals, as well as higher costs.

Net earnings plunged to $77.1 million or $0.22 per share from $119.7 million or $0.34 per share in the previous year.

On average, 12 analysts polled by Thomson Reuters expected earnings of $0.22 per share for the quarter. Analysts' estimates typically exclude special items.

The company noted that earnings were impacted by lower gold and silver prices, as well as increased costs due to a spike in gold sales.

Revenue rose 3 percent to $166.4 million from $161.3 million in the previous year. Analysts expected revenues of $186.59 million.

Attributable silver equivalent production climbed 17 percent to 8.9 million ounces and attributable silver equivalent sales jumped 52 percent to 7.8 million ounces. Average realized sale price per silver equivalent ounce sold declined 32 percent to $21.26.

Average cash costs increased to $4.13 per ounce from $4.04 per ounce for silver and $386 per ounce from $303 per ounce for gold. On a silver equivalent basis, average cash costs rose to $4.73 from last year's $4.16, primarily because of an increase in the percentage of revenue from gold sales.

Randy Smallwood, President and CEO, of Silver Wheaton, said, ''Production in the third quarter once again hit record levels, putting us well on track to achieving our best year ever and exceeding our 2013 production guidance of 33.5 million silver equivalent ounces."

The company's board declared a quarterly dividend of $0.09 per share in line its dividend policy, where the quarterly dividend is equal to 20 percent of the average of the previous four quarters' operating cash flow.

Further, Silver Wheaton added Chantal Gosselin to its Board of Directors. Gosselin brings over 20 years of experience in the financial services and mining industry. Most recently, she served as Vice President and Portfolio Manager at Goodman Investment Counsel. Prior to this, she was a senior mining analyst at investment firm Sun Valley Gold LLP.

SLW closed at $21.60 on Friday. SLW.TO settled down 0.1 percent at C$22.62.