November 9, 2011 / 12:28 PM / 7 years ago

UPDATE 1-Silver Wheaton Q3 profit jumps; raises dividend

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Nov 9 (Reuters) - Silver Wheaton Corp reported a 96 percent jump in third-quarter profit, driven by strong silver prices, and the company tripled its dividend for the current quarter.

The company has linked dividend payments to operating cash flows in the prior quarter and will now pay a dividend of 9 cents per share in the fourth quarter.

Silver Wheaton CEO had earlier said he was “embarrassed” by his company’s low dividend yield.

On an adjusted basis, third-quarter net profit rose to $135.0 million, or 38 cents a share, compared with $68.9 million, or 20 cents a share, a year ago.

Revenue for Vancouver-based Silver Wheaton, which buys silver by-product from other miners and then resells it, doubled to $185.2 million.

Average cash costs in the quarter were $4.12 per silver equivalent ounce, compared with $4.09 last year.

The company said it remains confident of achieving production forecast of 25-26 million silver equivalent ounces in the year as its partners continued to ramp up production at their mines.

Shares of the company closed at C$36.80 on Tuesday on the Toronto Stock Exchange. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)

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