August 9, 2012 / 10:18 PM / 5 years ago

Silver Wheaton profit falls on lower prices

Aug 9 (Reuters) - Canada’s Silver Wheaton Corp’s second-quarter profit fell 5 percent as lower silver price offset increased sales.

The silver company said net earnings fell to $141.4 million, or 40 cents per share, in the quarter ended June 30 from $148.1 million, or 42 cents per share, a year earlier.

Revenue rose 3 percent to $201.4 million on silver equivalent sales of 6.9 million ounces, up 36 percent.

April-June silver prices fell 24 percent to average $29.4 per ounce.

Silver Wheaton pays miners a lump sum upfront for the right to buy future precious metal production well below current market value. Success depends on prices for gold, silver and other precious metals staying high.

The company signed a $750 million stream financing deal with HudBay Minerals Inc on Wednesday, wherein Silver Wheaton will get a share of the precious metal produced at two of HudBay’s mines.

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