Silver Wheaton profit falls, shares down
(Reuters) - Silver Wheaton Corp (SLW.TO: Quote) reported an 11 percent drop in third-quarter profit, missing analysts' expectations, as sales fell short of production and lower silver prices weighed on revenue.
Shares of Silver Wheaton fell 2 percent on the Toronto Stock Exchange, dragged down by quarterly sales of just 5.1 million ounces, on par with a year earlier. Production jumped 26 percent to a record 7.7 million ounces.
The company, which provides miners with cash up front to finance mine construction in exchange for the right to buy future silver production at a set price, said some 2 million ounces were produced but not shipped in the quarter due to the timing of concentrate shipments.
"It is very important to remember that these ounces will inevitably be sold, it is simply a matter of timing," Chief Executive Randy Smallwood said in a statement.
Profit fell to $119.7 million, or 34 cents per share, in the quarter ended Sept 30. That compared with $135 million, or 38 cents per share, in the year-earlier period.
Analysts, on average, expected 42 cents a share, according to Thomson Reuters I/B/E/S.
Revenue fell 13 percent to $161.3 million as the average realized silver price in the quarter dropped to $31.36 per ounce from $36.23 in the year-ago period. Cost per ounce rose 4 cents, to $4.16.
The company ended the quarter with C$550 million ($551.96 million) in cash on hand and an undrawn credit facility of $400 million.
Shares of Silver Wheaton fell 2 percent to C$38.66 Thursday morning on the Toronto Stock Exchange. ($1 = 0.9965 Canadian dollars) (Reporting by Julie Gordon in Toronto and Maneesha Tiwari in Bangalore; Editing by Supriya Kurane and John Wallace)
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