Upcoming AWS Coverage on Hecla Mining Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 17, 2016 / Active Wall St. announces its post-earnings coverage on Silver Wheaton Corp. (NYSE: SLW). The company announced its financial results for the third quarter fiscal 2016 on November 09, 2016. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Silver Wheaton's competitors within the Silver space, Hecla Mining Co. (NYSE: HL), announced ON November 08, 2016, its third quarter financial and operating results. AWS will be initiating a research report on Hecla Mining in the coming days.

Today, AWS is promoting its earnings coverage on SLW; touching on HL. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SLW

http://www.activewallst.com/registration-3/?symbol=HL

Earnings Reviewed

For the three months ended on September 30, 2016, Silver Wheaton reported revenue of $233 million, on sales volume of 6.1 million ounces of silver and 85,100 ounces of gold. This represents a 52% increase from the $153 million of revenue generated in Q3 2015 due primarily to a 77% increase in the number of gold ounces sold; a 30% increase in the average realized silver price ($19.53 in Q3 2016 compared with $15.05 in Q3 2015); and an 18% increase in the average realized gold price from $1,336 in Q3 2016 compared to $1,130 in Q3 2015, this was partially offset by a 7% decrease in the number of silver ounces sold. The revenue numbers were below analysts' forecasts of $257.2 million.

The company's net earnings and cash flow from operations in Q3 2016 were $83 million, or $0.19 per share, and $162 million, or $0.37 per share, compared to adjusted net earnings of $50 million, or $0.12 per share, and cash flow from operations of $100 million, or $0.25 per share, for the same period in 2015, an increase of 67% and 62%, respectively. The results missed Wall Street's expectations of earnings of $0.22 per share.

Production Results

During Q3 2016, Silver Wheaton's attributed production was 7.7 million ounces of silver and 109,200 ounces of gold, respectively, with silver production having increased 11% and gold production, which represented a record, having increased 86% compared to Q3 2015.

In Q3 2016, the company's Salobo mine produced 68,168 ounces of attributed gold, an increase of approximately 91% relative to Q3 2015. Salobo achieved a monthly production record of 17,000 tons of copper in September, running at nominal capacity on a monthly basis.

On August 16, 2016, Silver Wheaton completed its previously announced amendment to its agreement with Vale to acquire an additional amount of gold equal to 25% of the life of mine gold production from its Salobo mine located in Brazil. This acquisition is in addition to the 50% of the Salobo gold production that Silver Wheaton acquired pursuant to its existing agreement with Vale. Silver Wheaton paid an upfront cash consideration of US$800 million for the increased gold stream and the 10 million Silver Wheaton's common share purchase warrants previously issued to a subsidiary of Vale were amended to reduce the exercise price from US$65 to US$43.75 per common share.

For Q3 2016, the company's Antamina mine produced 1.5 million ounces of attributed silver with production being lower than the previous quarters as expected due to lower tonnage and recovery, offset partially by higher grades. Antamina is on track to exceed the Company's original production guidance for 2016. Silver Wheaton produced 1.5 million ounces of attributed silver from Peñasquito, a decrease of approximately 29% relative to Q3 2015. During Q3 2016, San Dimas produced 1.3 million ounces of attributed silver, a decrease of approximately 11% relative to Q3 2015. The decrease in production was primarily driven by lower throughput and lower grades.

During the reported quarter, the company's total Other Gold attributed production was a record 31,070 ounces, almost twice as much as Q3 2015. The increase was driven primarily by record gold production at Minto and strong production from 777.

Balance Sheet

As of September 30th, 2016, Silver Wheaton had approximately $126 million of cash on hand and $1.3 billion outstanding under the Company's $2 billion revolving term loan. The revolving term loan matures on February 27, 2021. The company's Board of Directors also declared Q4 2016 cash dividend of $0.06 to be paid to holders of record of Silver Wheaton's common shares as of the close of business on November 23, 2016, and will be distributed on or about December 7, 2016.

Outlook

Silver Wheaton's Gold production for FY16 is now expected to be 335,000 ounces in 2016, up from previous guidance of 305,000 ounces. Silver production for 2016 is now expected to be 30 million ounces in 2016, down from previous guidance of 32 million ounces. Silver Wheaton's FY16 forecast remains unchanged on a silver-equivalent basis at 55 million SEOs and on a gold-equivalent basis at 740,000 GEOs.

Stock Performance

Silver Wheaton's stock is trading marginally up by 0.66%, closing Wednesday's session at $19.81 on volume of 5.69 million shares. The company's shares gained 60.65% since the beginning of the year. Additionally, the stock has advanced 65.17% in the last twelve months. The company's shares have a dividend yield of 1.21% and currently have a market cap of $10.50 billion.

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SOURCE: Active Wall Street