SILVER WHEATON CORP. T.SLW

Lovely numbers

[materialsgirl]

Here is a snippet from the SLW Q1 report

• Average realized sale price per silver equivalent ounce sold in Q1 2016 of $14.70 ($14.68 per ounce of silver and $1,175 per ounce of gold), compared with$16.90 in Q1 2015, representing a decrease of 13%.

Look at the realized prices.  Today, prices are 15% to 20% higher and almost all of that price increase is cash flow and profit before tax for SLW.
If 2016 revenue exceeds $1b for the first time ever that would be a flashpoint.
We are on a staircase to heaven. 

mat

[materialsgirl]

This is a reply to self. Regarding current commodity prices versus Q1 prices I grossly understated the price difference. My bad. Q1 silver was $14.68 for SLW  and today we have $19.77 for a 35% increase Q1 gold was $1,175  for SLW and today we have $1,340 for a 14% increase With a ratio of 60 / 40 for silver / gold the price increase for SLW would be 26.6% Wow. And there may be more

[zentrarianNZ]

mat: Are you suggesting that SLW is still playing catch-up to the increased cash flow of its partners? That would seem to imply that the market doesn't yet accept that silver is going to hold its recent gains over the longer term. For years, SLW roughly matched the price of silver, but it appears that this is no longer true. (Especially now that it has almost as much gold as silver!) We need

[materialsgirl]

No zentrarian; My point was singular. If the commodity prices rise by 26% and the SLW cost if fixed at say $4.50 for silver and say $400 for gold then the SLW revenue will rise by 26% and cash flow and profits will rise by a much greater amount;  for example 35% to 40%. It is easy to compute the precise amount but I did not bother to do so as the selling prices will be very volatile

[zentrarianNZ]

Thanks, mat....I think we all understand the leverage implied in holding the miners (and especially streamers), otherwise we would not be here! I was curious though, if you thought SLW was still not keeping up with the spike in gold & silver. And if so, for what reason(s).  Apart from the tax issue, that is, which as I've stated, I think is considerably overblown.

[materialsgirl]

Arguably, SLW has underperformed FNV for several years for severlal reasons; 1  The silver commodity fell (in percentage terms) by a far greater amount than gold. Gold only fell by 40% to 45% from all time peak to the recent low (I did not look it up).  Silver fell by about 70% from the peak to the recent low. Therefore, underperformance was justified to a certain point 2  SLW