For the 3rd quarter of 2011, attributable production reached 6.1 silver equivalent ounces (5.9 million ounces of silver with 5,100 ounces of gold). Revenues doubled to $185.2 million dollars as earnings per share came in at $0.38 per share.
Revenue growth is expected to continue over the coming years as Penasquito ramps up to full production and Pascua-Lama comes online. Penasquito will supply on average 7 million ounces of silver over the life of the mine while Pascua-Lama provides 9 million ounces per annum for the first five years.
As of September 30, Silver Wheaton had cash on hand of $716 million, after making a scheduled upfront payment of $137.5 million dollars to Barrick Gold (ABX) related to the Pascua-Lama project.
Investors watching the cash flow stream in have clamored for yield as the low total cash costs meant operating margins exploded. In response, Silver Wheaton will be instituting a new dividend policy which will pay out 20% of the previous quarter's operating cash flow. The fourth quarter dividend will now be $0.09 per share, an increase of 200% from the previous quarter, giving the stock a yield of around 1%.
Investors looking at investing in the silver sector should consider Silver Wheaton as the first stock on their list behind bullion. The low cost silver streams have rewarded investors and as we move into the seasonally strong first quarter of the year, Silver Wheaton will lead the silver stocks higher. Source: Silver Wheaton's websiteFor the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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