Silver Wheaton (TSX: T.SLW, Stock Forum) Monday reported a 20% increase in first-quarter earnings to $147.2 million, or 41 cents a share, from $122.2 million, or 34 cents a share, a year earlier. The Thomson Reuters analyst consensus forecast was for earnings of 44 cents a share.
The silver royalty firm attributed the earnings rise to increased output from mines with which the company has silver purchase agreements. Revenue for the quarter rose 26% to a record US$199.6 million on record silver equivalent sales of 6.1 million ounces (5.9 million ounces of silver and 3,900 ounces of gold).
"We achieved record quarterly revenues, and are on target to attaining our annual production guidance of 27 million silver equivalent ounces. With continued positive progress at our world-class cornerstone assets, including the Peñasquito and Pascua-Lama mines, Silver Wheaton retains one of the strongest growth profiles in the sector," said Silver Wheaton President and CEO Randy Smallwood.
Silver Wheaton said its average cash cost per ounce of silver was $4.08, while its average realized silver selling price in the quarter was $32.59.
Shares of Silver Wheaton were off 4% to $25.28 in early Monday trading.