* Q3 profit $0.38/share vs. street estimates $0.50/share
* Revenue doubles to $185.2 million on metal prices
(In U.S. dollars unless noted)
Nov 9 (Reuters) - Silver Wheaton Corp SLW.TO reported a 96 percent jump in third-quarter profit, driven by strong precious metal 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’s chief executive, Randy Smallwood, had earlier said he was “embarrassed” by his company’s low dividend yield. [nS1E78F1FF]
On an adjusted basis, net profit in the quarter ended Sept. 30 rose to $135.0 million, or 38 cents a share, compared with $68.9 million, or 20 cents a share, in the year-earlier quarter.
Analysts, on average, has expected earnings of 50 cents a share, according Thomson Reuters I/B/E/S.
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 average realized sales price rose 87 percent to $36.44 per ounce of silver from $19.51 in the same quarter of 2010.
Production attributable to the miner rose slightly to 6.1 million ounces in the third quarter.
The company said it remains confident of achieving production forecast of 25 million-26 million silver equivalent ounces in 2011 as its partners continued to ramp up production at their mines.
Silver Wheaton said it had $716 million in cash on hand at the end of the third quarter, and that it continues to look to make new silver stream deals.
The company plans to increase its attributable production to 43 million ounces by 2015, boosted mainly by output from Goldcorp’s (G.TO) Penasquito mine in Mexico and Barrick Gold’s (ABX.TO) Pascua Lama mine on the border between Argentina and Chile.
Shares of the company closed at C$36.80 on Tuesday on the Toronto Stock Exchange. (Reporting by Julie Gordon in Toronto and Bhaswati Mukhopadhyay in Bangalore; Editing by Sriraj Kalluvila)