Silver Wheaton CEO Optimistic About Q3 Results

Silver Wheaton Corp. (TSX:SLW,NYSE:SLW) reported its unaudited results for the third quarter of 2014, commenting that its attributable silver equivalent production fell 7 percent from the year-ago period, hitting 8.4 million ounces. That comes to 6.1 million ounces of silver and 35,400 ounces of gold.

Other highlights include:

• Attributable silver equivalent sales volume in Q3 2014 of 8.7 million ounces (6.3 million ounces of silver and 36,700 ounces of gold), compared to 7.8 million ounces in Q3 2013, representing an increase of 12%.
• Revenues of $165.9 million in Q3 2014, consistent with the $166.4 million in Q3 2013.
• Average realized sale price per silver equivalent ounce sold in Q3 2014 of $18.98 ($18.98 per ounce of silver and$1,261 per ounce of gold), representing a decrease of 11% as compared to Q3 2013.
• Adjusted net earnings of $72.6 million ($0.20 per share) in Q3 2014 compared with $77.1 million ($0.22 per share) in Q3 2013, representing a decrease of 6%.
• During the three months ended September 30, 2014, the Company recognized an impairment charge of $68.2 millionrelated to its Mineral Park and Campo Morado silver interests.

• After including the impact of the impairment charge, net earnings was $4.5 million ($0.01 per share) in Q3 2014 compared with $77.1 million ($0.22 per share) in Q3 2013, representing a decrease of 94%.

• Operating cash flows of $120.4 million ($0.34 per share) in Q3 2014 compared with $118.7 million ($0.33 per share) in Q3 2013, representing an increase of 1%.

• Cash operating margin in Q3 2014 of $14.39 per silver equivalent ounce compared with $16.53 in Q3 2013.

• Average cash costs in Q3 2014 were $4.16 and $378 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs decreased to $4.59 compared with $4.73 in Q3 2013.

• Declared quarterly dividend of $0.06 per common share.

President and CEO Randy Smallwood commented:

The strength of Silver Wheaton’s streaming model was once again highlighted in what can only be described as a challenging third quarter for precious metals. Despite silver and gold prices falling 19% and 9%, respectively in the quarter, Silver Wheaton continued to generate cash operating margins of over 70% while maintaining one of the highest production levels in the silver industry. Additionally, we saw excellent progress at our key growth assets with record production from Vale’s Salobo mine as its expansion continued to ramp up, along with Hudbay’s Constancia mine which remains on track for first production in the fourth quarter of 2014.

Click here to read the full Silver Wheaton Corp. (TSX:SLW,NYSE:SLW) press release.