Silver Wheaton’s Q1 2017 Earnings Preview: Higher Precious Metal Prices To Drive Earnings Improvement

May 8th, 2017 by Trefis Team
SLW: Wheaton Precious Metals logo
SLW
Wheaton Precious Metals

Silver Wheaton will release its Q1 2017 earnings result on May 9 and conduct a conference call with analysts the next day. [1] We expect the company to report a significant year-over-year increase in its earnings result driven by higher gold and silver prices.

Precious metals are primarily viewed as safe-haven assets from an investment point of view. The investment demand for precious metals rises in times of macroeconomic and geopolitical uncertainty. In addition, since precious metals only offer capital gains in terms of returns (with no coupon or interest component), rising interest rates tend to dampen the investment demand for these commodities. The investment demand for gold and silver rose sharply in Q3 2016 in the wake of the unexpected outcome of the UK’s June 23 EU referendum, pushing up prices of these precious metals. Though precious metal prices declined subsequently due to interest rate hikes by the Federal Reserve in Q4 2016 and Q1 2017, prices still averaged higher in Q1 2017 as compared to the corresponding part of last year. In addition, lingering geopolitical uncertainty produced a conducive environment for elevated levels of gold and silver prices in Q1 2017. The following tables summarize our expectations for Silver Wheaton’s Q1 2017 earnings result.

SLW Q1 2017 Earnings Preview

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

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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Notes:
  1. Silver Wheaton to Release 2017 First Quarter Results on May 9, 2017, Silver Wheaton News Release [↩]