Post Earnings Coverage as Silver Wheaton’s Q4 Sales Rose 29%; Proposes Name Change

Upcoming AWS Coverage on Hecla Mining Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 31, 2017 / Active Wall St. announces its post-earnings coverage on Silver Wheaton Corp. (NYSE: SLW). The Company reported its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) earnings on March 21, 2017. The Vancouver, Canada-based Company reported a year-over-year growth in its quarterly sales and adjusted diluted EPS, outperforming market consensus estimates. Register with us now for your free membership at:

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One of Silver Wheaton’s competitors within the Silver space, Hecla Mining Co. (NYSE: HL), reported on February 23, 2017, its fourth quarter and year end 2016 financial and operating results. AWS will be initiating a research report on Hecla Mining in the coming days.

Today, AWS is promoting its earnings coverage on SLW; touching on HL. Get our free coverage by signing up to

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Earnings Reviewed

During the Q4 FY16, Silver Wheaton reported total sales of $258.49 million, rising 29% from $200.50 million in Q4 FY15. Total sales number for Q4 FY16 topped market expectations of $252.9 million. Additionally, the Company’s gross margin increased to $93.31 million in Q4 FY16 from $71.29 million in the last year’s comparable quarter.

The precious metals streaming Company reported net earnings of $10.87 million in Q4 FY16, versus net loss of $169.26 million in the prior year’s quarter. The Company’s adjusted earnings for Q4 FY16 came in at $81.87 million, or $0.19 per diluted share, compared to $57.41 million, or $0.14 per diluted share in Q4 FY15. Meanwhile, Wall Street had expected the Company to report adjusted earnings of $0.17 per diluted share.

In FY16, Silver Wheaton’s total sales surged 37% during FY16 to a record $891.56 million from $648.69 million in FY15. The Company attributed the annual sales growth to 63% y-o-y and 7% y-o-y rise in number of gold and silver ounces sold, respectively, along with 8% growth in average realized price in both the precious metals.

The Company’s net earnings for FY16 were $195.14 million, or $0.45 per diluted share, compared to a net loss of $162.04 million, or $0.41 loss per diluted share, in FY15. Moreover, the Company’s adjusted earnings increased to $266.14 million, or $0.62 per diluted share, during FY16 from $210.36 million, or $0.53 per diluted share, in FY15.

Segment

The Company’s silver production volume during Q4 FY16 was 7.59 million ounces compared with 10.28 million ounces in Q4 FY15. In the reported quarter, total silver sales volume was 7.51 million ounces compared to 8.75 million ounces in Q4 FY15. Average silver released price in Q4 FY16 was $16.95 per ounce versus $14.75 per ounce in the prior year’s same quarter. Total silver sales for Q4 FY16 stood at $127.21 million compared to $129.09 million in Q4 FY15. Furthermore, the Company reported gross margin and net earnings of $53.23 million, each, in the silver segment during Q4 FY16 compared to gross margin and net loss of $57.03 million $73.26 million, respectively, in the previous year’s comparable quarter.

In Q4 FY16, Gold production volume surged 48% to 107,332 ounces from 72,366 ounces in the year ago same quarter. Gold sales volume increased to 108,931 ounces in Q4 FY16 from 64,899 ounces in the prior year’s corresponding quarter. In Q4 FY16, average gold realized price was $1,205 per ounce compared to $1,100 per ounce in Q4 FY15. Gold sales contributed $131.28 million to the Company’s total sales in Q4 FY16 compared to $71.41 million in Q4 FY15. In the reported quarter, gold gross margin was $40.09 million, while there was a segment net loss of $30.92 million. This compared to gross margin of $71.29 million and net loss of $159.61 million in Q4 FY15.

Cash Flow and Balance Sheet

In the three months ended December 31, 2016, net cash generated by operating activities rose to $174.70 million from $133.39 million in Q4 FY15. As on December 31, 2016, cash and cash equivalents balance stood at $124.30 million compared to $103.30 million as on December 31, 2015. Furthermore, the Company’s bank debt outstanding as on December 31, 2016, was $1.19 billion compared to $1.47 billion as on December 31, 2015.

Proposed Change in Name

In its earnings press release, the Company announced that its Board of Directors has recommended changing the Company’s name to Wheaton Precious Metals Corp., to better align with the corporate identity with the Company’s diverse portfolio of both silver and gold assets. Moreover, the Company plans to seek shareholders’ approval for the proposed name change at its annual shareholder meeting in May 2017.

Earnings Outlook

In its guidance for full year FY17, Silver Wheaton anticipates silver production to be 28 million ounces, while gold production is anticipated at 340,000 ounces.

Dividends and Share Repurchases

In a separate press release on March 21, 2017, Silver Wheaton Board of Directors hiked the first quarterly cash dividend by 17%, or $0.01 per share, to $0.07 per share. The dividend will be payable on April 21, 2017, to the holders of Silver Wheaton’s common shares as of the close on April 05, 2017.

Stock Performance

Silver Wheaton’s share price finished yesterday’s trading session at $20.31, marginally down 0.93%. A total volume of 2.58 million shares exchanged hands. The stock has surged 9.90% and 23.42% in the last three months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 5.12%. The stock is trading at a PE ratio of 44.93 and has a dividend yield of 1.38%. Additionally, the stock currently has a market cap of $9.00 billion.

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