Research Desk Line-up: Fortuna Silver Mines Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 /Pro-Trader Daily has just published a free post-earnings coverage on Wheaton Precious Metals Corp. (NYSE: WPM) ("WPM"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=WPM, following the Company's posting of its Wheaton Precious Metals Corp. (NYSE:WPM) announced its second quarter fiscal 2017 operating results on August 10, 2017. The Company's bottom-line beat market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Silver industry. Pro-TD has currently selected Fortuna Silver Mines Inc. (NYSE: FSM) for due-diligence and potential coverage as the Company reported on August 14, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Fortuna Silver Mines when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WPM; also brushing on FSM. With the links below you can directly download the report of your stock of interest free of charge at:
For Q2 2017, WPM's revenue was $200 million, reflecting a 6% decrease from the $212 million of revenue generated in Q2 2016, primarily due to an 11% decrease in the number of silver ounces sold, partially offset by a 2% increase in the number of gold ounces sold. The Company's sales fell short of analysts' estimates of $217.55 million.
For Q2 2017, WPM's average cash costs were $4.51 per silver ounce sold and $393 per gold ounce sold compared with $4.46 per silver ounce and $401 per gold ounce during Q2 2016. This resulted in a cash operating margin of $12.58 per silver ounce sold and $870 per gold ounce sold, a decrease of 1% per silver ounce sold while the cash operating margin per ounce of gold sold was virtually unchanged compared with Q2 2016. The decrease in the cash operating margin was primarily due to a 1% decrease in the average realized silver price in Q2 2017 compared to Q2 2016.
WPM's net earnings and cash flow from operations were $68 million, or $0.15 per share, and $125 million, or $0.28 per share, respectively, in Q2 2017 compared to $60 million, or $0.14 per share, and $134 million, or $0.31 per share, respectively, in Q2 2016; reflecting an increase of 12% and a decrease of 7%, respectively. The Company's earnings exceeded Wall Street's estimates of $0.14 per share.
During Q2 2017, WPM's attributable production was 7.2 million ounces of silver and 78,100 ounces of gold, respectively, representing a decrease of 5% and an increase of 10% compared to Q2 2016 related results.
On a silver equivalent basis and gold equivalent basis attributable production in Q2 2017 was 12.9 million silver equivalent ounces ("SEOs") or 176,600 gold equivalent ounces ("GEOs"), compared to 12.9 million SEOs, or 172,600 GEOs, in Q2 2016, with SEO production being virtually unchanged and GEO production increasing 2%.
WPM recorded sales volume of 6.4 million ounces of silver and 72,000 ounces of gold, compared with 7.1 million ounces of silver and 70,800 ounces of gold in Q2 2016, with silver sales volume having decreased 11% and gold sales volume having increased 2%.
On a silver equivalent basis and gold equivalent basis, WPM's sales volume in Q2 2017 was 11.6 million SEOs, or 159,200 GEOs, compared to 12.5 million SEOs, or 165,900 GEOs, in Q2 2016, a decrease of 7% and 4%, respectively.
WPM's average realized sale price per ounce sold in Q2 2017 of $17.09 per ounce of silver and $1,263 per ounce of gold with the sale price of silver having decreased 1%, while sale price of gold was virtually unchanged compared to Q2 2016.
For Q2 2017, WPM's Salobo produced 57,500 ounces of attributable gold; reflecting an increase of approximately 61% relative to Q2 2016. This growth was primarily due to the acquisition of an additional 25% of attributable gold from the Salobo mine in Q3 2016.
In Q2 2017, WPM's Peñasquito produced 1.5 million ounces of attributable silver, an increase of approximately 71% relative to Q2 2016. For Q2 2017, the Company's Antamina produced 1.9 million ounces of attributable silver, an increase of approximately 11% on a y-o-y basis. The increase was primarily the result of higher grade ore being processed in the quarter, partially offset by lower silver recovery. WPM's San Dimas produced 1.0 million ounces of attributable silver in Q2 2017, a decrease of approximately 39% relative to Q2 2016.
In Q2 2017, WPM's Constancia produced 0.5 million ounces of attributable silver and 2,300 ounces of attributable gold, a decrease of approximately 30% and 50% for silver and gold production, respectively, relative to Q2 2016. The decrease in production was primarily the result of the processing of lower grade ore as expected in Hudbay Mineral Inc.'s mine plan.
Produced but Not Yet Delivered
As at June 30, 2017, WPM's payable ounces attributable to the Company produced but not yet delivered amounted to 4.2 million payable silver ounces and 52,900 payable gold ounces, representing an increase of 0.2 million payable silver ounces and 2,000 payable gold ounces during the three month period ended June 30, 2017.
At June 30, 2017, WPM had approximately $77 million of cash on hand and $953 million outstanding under the Company's $2 billion revolving term loan. In Q2 2017, WPM increased the percentage of cash flow used for the dividend distribution calculation from 20% to 30%, resulting in an increase to the quarterly dividend of over 40%.
On Monday, August 21, 2017, Wheaton Precious Metals' stock closed the trading session at $19.22, climbing 1.69% from its previous closing price of $18.90. A total volume of 1.90 million shares were exchanged during the session. Shares of the Company have a PE ratio of 38.13 and have a dividend yield of 2.08%. The stock currently has a market cap of $8.50 billion.
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