On Monday, Vancouver-based Silver Wheaton (SLW) reported higher mining output and revenues for the third quarter. Still, actual Silver Wheaton earnings fell, and SLW stock tumbled along with it.
Silver Wheaton earnings tallied $77.1 million, down 36% from $119.7 million in the same period last year. Silver Wheaton earnings per share came in at 22 cents — in line with analyst expectations but down from 34 cents in the prior year.
The Silver Wheaton earnings report showed that revenue rose 3% year-over-year to $166.4 million, but that fell far short of the $186.6 million SLW stock analysts had forecast. CEO Randy Smallwood noted that third quarter production marked a new record for SLW and that the company was “on track” to surpass previously issued production guidance of 33.5 million silver equivalent ounces for 2013.
SLW, which is the largest precious metals streaming company, also noted that its quarterly operating cash flow fell to $118.7 million, down 8% from the prior year. The average cash cost for SLW, on a silver equivalent basis, increased from $4.16 per ounce last year, to $4.73. For silver, the average cast cost increased from $4.04 per ounce in the prior year, to $4.13. For gold, the average cash cost increased from $303 per ounce last year, to $386.
During the three months ending in September, the Silver Wheaton earnings report also noted that the price per silver equivalent ounce sold declined 32% from the same time last year, dropping to $21.26. Silver equivalent production for SLW during the quarter jumped 17% over last year, rising to 8.9 million ounces. That included 6.8 million ounces of silver and 34,800 ounces of gold.
SLW stock investors got some good news when the company said it would issue a dividend of 9 cents per share, to be distributed on Dec. 11 to shareholders of record on Nov. 27. The company amended its dividend policies earlier this year.
SLW also anticipates production to rise to 42.5 million silver equivalent ounces by 2017.
Shares of SLW stock fell almost 2% in Monday morning trading.