Silver Wheaton Corp. (SLW) shines in the silver space, despite being a relatively new entrant. With a low-risk businesses model, the company believes it is well-positioned to take advantage of increases in silver prices.
The company, which was established in 2004, makes deals to buy all or a portion of silver production, at a low fixed-cost, from mines located in politically stable regions. It now has seventeen such agreements in place.
Recently, the company established relationships with two gold giants - Barrick Gold and Goldcorp. - and has a significant interest Goldcorp's Peñasquito mine in Mexico and Barrick's Pascua-Lama project straddling the border of Chile and Argentina. These two mines are forecast to be large silver producers in the world and expected to add significantly to the company's future production.
For the most recent third quarter, the company set a record in silver production and sales. Production rose by 59% to a record 4.3 million silver equivalent ounces, while sales rose 70% to a record 4.6 million silver equivalent ounces.
The total cash cost to produce an ounce of silver was $3.97 per ounce during the quarter, while the sale price realized was $15.14 per ounce. A rough calculation puts the profit at $11.17 per ounce.
Earnings for the third quarter were a record $33.6 million or $0.11 per share, up from year-ago $20.2 million or $0.08 per share. Sales jumped to $69.8 million from $39.4 million last year. Operating cash flows were another record $45.4 million or $0.14 per share, up from year-ago $26.7 million or $0.11 per share.
Forecast silver production for 2009 is 16 million ounces of silver and 17,000 ounces of gold, for total production of 17 million silver equivalent ounces. By 2013, annual production is anticipated to more than double to about 39 million ounces of silver and 20,000 ounces of gold, for total production of about 40 million silver equivalent ounces.
No ongoing capital expenditures are required to generate this production growth, Silver Wheaton says. The company does not sell forward its silver sales.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.