Silver Wheaton’s Q3 2016 Earnings Preview: Elevated Precious Metal Prices To Drive Improvement In Earnings

SLW: Wheaton Precious Metals logo
SLW
Wheaton Precious Metals

We expect Silver Wheaton to report a significant improvement in its Q3 earnings, driven by elevated levels of silver and gold prices in the third quarter. Precious metals, which are considered safe-haven assets from an investment point of view, saw a significant surge in their prices in the third quarter, as a result of the uncertainty caused by the outcome of the UK’s June 23 EU referendum and global economic weakness. Precious metal prices have declined somewhat in Q4 in anticipation of a potential interest rate hike by the Fed in December, which could negatively impact the company’s results going forward. However, the favorable pricing environment over the course of Q3 will be reflected in Silver Wheaton’s results, as illustrated by the tables shown below:

SLW Q3 2016 Pre-Earnings

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Silver Wheaton

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