Wheaton Precious Metals Reports Higher 2Q Adjusted Profit
(Kitco News) - Streaming company Wheaton Precious Metals Corp. (TSX, NYSE:WPM) late Tuesday reported a rise in its second-quarter adjusted profit asrevenues got a boost from higher gold sales and prices.
Adjustednet earnings were $73 million, or 16 cents per share, up from $67 million, or15 cents, in the same period of 2017.
Netearnings were $318 million, up from $67 million. The April-June net profit includeda $246 million gain on the disposal of the San Dimas silver stream.
InMay, First Majestic Silver Corp. closed the acquisition of Primero Mining Corp.In conjunction, Wheaton terminated the San Dimas silver purchase agreement andentered into a new San Dimas precious-metal purchase agreement with FirstMajestic, resulting in a gain on disposal of $246 million, the companyexplained.
Second-quarterrevenue rose to $212 million from $200 million a year ago. This occurred onsales volume of 6 million silver ounces and 87,140 gold ounces. The number ofgold ounces rose 21% year-on-year, while the average price increased to $1,305 from$1,263. This more than offset a 6% decline in silver ounces sold and a drop inthe average realized silver price to $16.52 from $17.09.
Second-quarterproduction of 6.1 million ounces of silver was down 15% year-on-year, whileoutput of 85,292 gold ounces was up 7%. As of June 30, payable ouncesattributable to the company but not yet delivered amounted to some 4.3 millionsilver ounces and 75,600 payable gold ounces, Wheaton said. This was a decreaseof 0.6 million payable silver ounces and 6,400 gold ounces.
SilverWheaton maintained a quarterly dividend of 9 cents per share.
Thecompany reconfirmed its estimated 2018 production forecast of approximately355,000 ounces of gold, 22.5 million ounces of silver and 10,400 ounces ofpalladium.
Duringthe second quarter, Wheaton completed the acquisition of a cobalt stream onVale’s Voisey’s Bay mine. The company also later closed a gold and palladiumstream on SibanyeStillwater’s Stillwater and East Boulder mines.
“Weexpect Stillwater to contribute production and cash flow starting in the thirdquarter of 2018 and Voisey’s Bay starting in 2021,” said Randy Smallwood,president and chief executive officer. “These additions ideally fit within ourexisting portfolio as they are both high-margin and long-life mines with significantexploration potential.”
By Allen SykoraFor Kitco News
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