Silver Wheaton Corp. (SLW) has been doing well in the stock market in the past several weeks: Shares of Silver Wheaton spiked by 37.6% since the beginning of July (up-to-date). This recent rally was partly driven by the recovery in the silver market: The price of silver jumped by 17%. Will Silver Wheaton’s latest run continue? Or will it reach a halt? Let’s analyze the latest developments related to Silver Wheaton.
Second quarter results
During the second quarter of 2013, the company’s revenues fell by 17% compared to the second quarter in 2012. Moreover, the company’s operating profit tumbled down by 49.5% to its lowest level in years.
Let’s break-down Silver Wheaton’s earnings results between its two main precious metals: Silver and gold.
During the second quarter, the amount of silver sold fell by over 24% (year-over-year).
But this wasn’t the only factor that adversely affected the company’s revenues. The price of silver also decline by over 20%. These two factors contributed to the nearly 40% plunge in silver revenues.
Looking forward for the third quarter, if we assume the company will reach its annual goals in terms of silver produced, and if we assume the current average price for the third quarter won’t change, then the company’s revenues from silver will fall again by nearly 21% (year-over-year).
For the rest of the analysis see in Seeking Alpha
For further reading:
- Gold and Silver Outlook for August
- Gold and Silver Weekly Outlook for August 19-23
- Will Gold Recover from its Recent Fall?
- Will These Gold Producers Bounce Back?
- Is it Time to Sell Gold?
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