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Wheaton Precious Metals tops 2Q estimates but silver production falls

The mining company saw silver production fall 15% to 6.1 million ounces in its second quarter

Silver bars
Sales price per ounce for silver dropped to US$16.52 from US$17.09

Wheaton Precious Metals Corp (NYSE:WPM, TSX:WPM) reported better-than-expected second-quarter results but saw lower silver production.

The silver miner reported earnings of US$0.72 per share on revenue of US$212mln compared with US$0.15 EPS on revenue of US$199mln in the previous year’s second quarter.

The Vancouver-based company reported adjusted earnings of US$0.16, beating Wall Street estimates of US$0.14 EPS. Its revenue surpassed estimates of US$204mln.

Silver production fell 15% to 6.1 million ounces compared with 7.2 million ounces in the previous second quarter.

However, gold production increased by 7% to 85.2 ounces compared with 79.6 ounces in last year’s second quarter.

READ: First Majestic reports US$40mln loss; shares drop

Sales price per ounce for silver dropped to US$16.52 from US$17.09 while gold’s price per ounce increased to US$1,305 from US$1,263.

For the year ahead, the company reaffirmed its estimated production of approximately 355,000 ounces of gold, 22.5 million ounces of silver and 10,400 ounces of palladium.

Its quarterly dividend was maintained at US$0.09 per share.

In the second quarter, the company completed the acquisition of a cobalt stream on Vale's Voisey's Bay mine and later closed a gold and palladium stream on Sibanye-Stillwater's Stillwater and East Boulder mines.

“We expect Stillwater to contribute production and cash flow starting in the third quarter of 2018 and Voisey’s Bay starting in 2021. These additions ideally fit within our existing portfolio as they are both high-margin and long-life mines with significant exploration potential,” said CEO Randy Smallwood in the company’s press release.

Shares of the mining company were down around 1% to US$19.70 in Wednesday pre-market trading.

Quick facts: Wheaton Precious Metals

Price: 66.56 CAD

TSX:WPM
Market: TSX
Market Cap: $29.88 billion
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