VANCOUVER – Silver Wheaton Corp. reported a 20 per cent increase in fourth-quarter earnings on Thursday thanks to higher selling prices of silver and gold.
The Vancouver-based mining company (TSX:SLW) said net earnings were US$ 144.7 million, up from US$ 120.7 million during the same period a year earlier.
On a per-share basis, the earnings amounted to 41 cents, up from 35 cents.
Revenue during the quarter was US$ 191.9 million, on silver-equivalent sales of six million ounces. A year earlier, revenue was US$ 149.6 million.
The average realized selling price of silver rose 22 per cent while that of gold rose 24 per cent, Silver Wheaton said.
“Silver Wheaton finished 2011 with its strongest ever quarter of production and sales,” said CEO Randy Smallwood in a release.
Late last year, Silver Wheaton tripled its dividend under a new plan to link its payout to shareholders to the company’s performance. Under the plan, the company has said it would make a quarterly payment equal to 20 per cent of its operating cash flow in the previous quarter.
On Thursday, the company declared a quarterly dividend of nine cents per share, which will be distributed on or about April 17. Its operating cash flow amounted to 46 cents per share.
“The exceptional growth in cash flows allowed us to initiate an inaugural dividend, which grew threefold by year-end, and positions the company to quickly capitalize on new acquisition opportunities,” said Smallwood.
“We are now stronger than at any other time in our company’s history, and more capable than ever of helping mining companies achieve their production and expansion goals by providing value-enhancing silver streaming funding. And, with low fixed costs, an exceptional production growth profile, and more silver reserves than any other silver company in the world, we believe we offer the premier investment vehicle for silver investors worldwide.”
Silver Wheaton receives silver production from mines around the world, including Goldcorp’s (TSX:G) Penasquito mine and Barrick’s (TSX:ABX) Pascua-Lama project in South America.
Local news from metronews.ca/vancouver
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