Will Silver Wheaton Plummet Further?

Shares of Silver Wheaton Corp. (SLW) have sharply decreased during December: The stock fell by 5.8% since the beginning of the month (up-to-date). The weak silver market especially after last week’s FOMC decision to taper QE3 by $10 billion is also dragging down Silver Wheaton’s stock. Gold and silver ETFs such as iShares Silver Trust (SLV), SPDR Gold Trust (GLD) have also suffered from the weakness of precious metals and sharply declined during December. Will Silver Wheaton continue to plunge? What should we expect from the company’s performance in the fourth quarter?

Fourth-quarter report

The company is likely to release its fourth-quarter earnings report during the middle of January 2014. Until then, let’s see how the company may have done during the quarter. Based on the company’s expectations, production of gold and silver in the first three quarters of 2013, and the changes in the prices of precious metals, I guess the company’s revenues will sharply decline in the fourth-quarter compared to the parallel quarter in 2012. The main reason for the drop in revenues is sharp fall in precious metal prices. The fall in prices will offset the expected rise in both gold and silver production.

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