Will Silver Wheaton Resume Its Uptrend?

Silver Wheaton Corp. (SLW) has made a comeback in the stock market in the past three months: Shares of Silver Wheaton rose by 21.5% since the end of July (up-to-date). Nonetheless, during September the company’s stock fell by nearly 6%. Moreover, during the month the price of silver also fell by 6.8%. Other silver related investments such as iShares Silver Trust (SLV) have also tumbled down during the month. Looking forward, will Silver Wheaton resume its upward trend? Let’s examine the latest developments related to Silver Wheaton.

Upcoming third quarter results

The company is likely to release its third quarter earnings report during the first week of October. Until then, let’s examine the expected changes in Silver Wheaton’s profit margins and revenues.

Based on the company’s projections, the production of gold and silver in the first half of 2013, and the changes in the prices of precious metals, I expect the company’s revenues will rise in the third quarter compared to the same quarter last year. In particular, I estimate the company’s revenues will reach $179 million in the third quarter. This will represent an 11.1% gain compared to the same quarter in 2013. This estimate, however, could change significantly if gold and silver production doesn’t meet expectations.

For the rest of the analysis see at Seeking Alpha 

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