After reporting better than expected Q4 earnings and revenues and giving 2017 production guidance last night after the bell, shares of mining firm Silver Wheaton (SLW 21.10, +1.17) trade about 5.9% higher today.
The Vancouver-based gold and silver miner reported Q4 earnings per share (EPS) of $0.19 on revenues which rose 29.0% compared to last year to about $258.5 million.
In the quarter, attributable production was 7.6 million ounces of silver and 107,300 ounces of gold, compared with 10.3 million ounces of silver and 72,400 ounces of gold in Q4 2015, with silver production having decreased 26% and gold production having increased 48%.
Sales volume in Q4 2016 of 7.5 million ounces of silver and a record 108,900 ounces of gold, compared with 8.8 million ounces of silver and 64,900 ounces of gold in Q4 2015, with silver sales volume having decreased 14% and gold sales volume, which represented a record, having increased 68%. Additionally, average realized sale price per ounce sold in Q4 2016 of $16.95 per ounce of silver and $1,205 per ounce of gold representing an increase of 15% and 10%, respectively, compared to Q4 2015.
Breaking it down a bit more, SLW posted record Salobo attributable gold production in Q4 2016 of 71,328 ounces compared with 39,395 ounces in Q4 2015, representing an increase of 81% due to the acquisition of an additional 25% of attributable gold in the third quarter of 2016 and increased throughput.
Looking ahead, SLW’s estimated attributable production in 2017 is forecast to be 28 million ounces of silver and 340,000 ounces of gold. For 2017 guidance, Silver Wheaton has assumed the ongoing strike at San Dimas will continue for a three-month period and that San Dimas will otherwise achieve production in line with 2016.
In addition to reporting the results and giving 2017 production guidance, SLW’s Board of Directors has recommended changing the company’s name to Wheaton Precious Metals Corp. to better align the corporate identity with the company’s diverse portfolio of both silver and gold assets. If shareholders agree to the name change the company’s TSX and NYSE ticker would change from SLW to WPM.
Even further, SLW’s Board announced the introduction of a quarterly dividend payment for 2017 of $0.07 per common share.