Shares of Silver Wheaton Corp. (SLW) have kicked off the year on a positive note as they have rallied by more than 10% (up-to-date). Further, the price of silver has increased by nearly 5% during January; the price of gold has rallied by 4%. As a result, Gold and silver ETFs such as iShares Silver Trust (SLV), SPDR Gold Trust (GLD) have also bounced back during the month. The recent recovery of silver might be a correction to its tumble in the last two month of 2013. Moreover, the market’s reaction in December to the FOMC’s decision to taper QE3 might have been harsh. Will Silver Wheaton continue to rally? How has the company performed in the fourth-quarter?
The company is likely to release its fourth-quarter earnings report during March 2014. Until then, let’s examine how the company has done during the last quarter of 2013. According the company’s annual projections, production of gold and silver in the first three quarters of 2013, and the shifts in the prices of bullion, I guess the company’s revenues may have tumbled down by nearly 21% in the fourth-quarter year over year. Moreover, the company’s profit margin has also narrowed by several percentage points.
For the rest of the analysis see at Seeking Alpha
For further reading
- Is Gold Making a Comeback?
- What is These Gold Companies’ Silver Lining?
- Could These Gold Producers Surprise You?
Disclaimer: The author holds no positions in stocks mentioned and does not plan to initiate positions within 120 hours of the posting of this article. This article is to be used for educational, research and informational purposes only and does not constitute investment advice. There are no guarantees, expressed or implied, of future positive returns in regards to the subject matter contained herein. Understand the risks inherent in investing before making the decision to invest or consult an investment professional for more information. Reasonable due diligence has been performed in regards to the information in this article. However, the author expressly disclaims any liability for accidental omissions of information or errors in fact.