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

Silver Wheaton reported a significant improvement in its Q3 earnings, driven by elevated precious metal prices and higher shipments as a result of the signing of a new precious metal streaming deal. Macroeconomic uncertainty created in the wake of the UK’s June 23 EU referendum and weakness in global economic growth drove up the investment demand for precious metals, translating into higher prices in Q3. Adding to the impact of higher prices was the surge in shipments from the Salobo mine, with Silver Wheaton signing a streaming deal for an additional 25% of the gold produced at the Salobo mine in August, adding to the the existing 50% gold stream from the mine. However, despite the strong earnings result, Silver Wheaton’s ongoing tax-related dispute with the Canada Revenue Agency (CRA) is a source of uncertainty around the stock. The company management did not disclose any new developments pertaining to its dispute with the CRA in the conference call. More clarity on this front will throw more light on the road ahead for Silver Wheaton.

Have more questions about Silver Wheaton? See the links below.

• What Is Silver Wheaton’s Revenue And EBITDA Breakdown?
• What Is Silver Wheaton’s Fundamental Value Based On Expected 2015 Results?
• How Has Silver Wheaton’s Revenue Composition Changed Over The Last 4 Years?
• By What Percentage Did Silver Wheaton’s Revenue & EBITDA Decline In The Last 4 Years?
• By What Percentage Can Silver Wheaton’s Revenue & EBITDA Grow In The Next 3 Years?
• By What Percentage Will Silver Wheaton’s Silver Equivalent Production Increase If Production Commences At The Pascua-Lama Mine?
• How Will Silver Wheaton’s Revenue Composition Change Over The Next 5 Years?
• How Do Silver Wheaton’s Margins Compare With Those Of Traditional Precious Metal Mining Companies?

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