Silver Wheaton Corp. Announces Unaudited Consolidated Earnings and Production Results for the Second Quarter and Earnings Results for the Six Months Ended June 30, 2015; Provides Earnings Guidance for the Year 2015
Aug 11 15
Silver Wheaton Corp. announced unaudited consolidated earnings and production results for the second quarter and earnings results for the six months ended June 30, 2015. For the quarter, the company's sales were $164,435,000 against $148,570,000 a year ago. Earnings from operations were $63,313,000 against $74,688,000 a year ago. Earnings before income taxes were $53,637,000 against $62,642,000 a year ago. Net earnings were $53,726,000 against $63,492,000 a year ago. Basic and diluted earnings per share were $0.13 against $0.18 a year ago, the decrease being primarily attributable to declines in commodity prices. Cash generated from operating activities was $109,292,000 or $0.27 per share against $102,543,000 or $0.29 per share a year ago.
For the six months, the company's sales were $294,939,000 against $313,949,000 a year ago. Earnings from operations were $127,308,000 against $166,357,000 a year ago. Earnings before income taxes were $106,038,000 against $142,465,000 a year ago. Net earnings were $103,145,000 against $143,301,000 a year ago. Basic and diluted earnings per share were $0.27 against $0.40 a year ago. Cash generated from operating activities was $198,423,000 against $217,375,000 a year ago. Net debt as of June 30, 2015 was $643 million.
During the second quarter of 2015, attributable silver equivalent production was 10.9 million ounces (7.2 million ounces of silver and 50,500 ounces of gold), representing an increase of 29% compared with the second quarter of 2014. Silver equivalent sales of over 10 million ounces. The record production in sales were driven by strong results from all of assets, the Salobo, San Dimas and Peñasquito mines as well as the first substantive production from Constancia, which achieved commercial production earlier this year. Sales volume also increased 34% from the previous year to over 10 million ounces for the quarter. The average realized sale price per silver equivalent ounce, which was 17% lower than a year ago. These lower commodity prices obviously, impacted net earnings. The increased sales volumes being partially offset by a 17% decrease in the average realized silver equivalent selling price, which was $16.38 per ounce for second quarter of 2015 compared to $19.83 for second quarter of 2014. Attributable production relative to the San Dimas mine amounted to 1.8 million ounces, representing a 60% increase compared to the second quarter of 2014. The increase in production is attributable to higher throughput due to the mill expansion, which was completed in 2014, but also higher grades and recoveries. In addition, the annual threshold over which Primero retains 50% of any silver produced rose from 3.5 million ounces to 6 million ounces, effective August 6, 2014. This was partially offset by the cessation of the supplemental silver deliveries from Goldcorp, which contributed 375,000 ounces of production and sales in the second quarter of 2014. Silver sales relative to San Dimas amounted to 1.3 million ounces, 6% higher than sales volumes for the comparable period of the prior year. The difference between production and sales for the second quarter of 2015 was due to the suspension of Primero's import and export licenses. As at June 30, 2015, approximately 800,000 ounces of payable silver had been produced in San Dimas, but not yet delivered to Silver Wheaton, representing an increase of 500,000 ounces from the prior quarter. Silver production relative to Yauliyacu amounted to 700,000 ounces for the second quarter of 2015, consistent with production from the prior year. However, silver sales amounted to 800,000 ounces in the second quarter of 2015 compared to 100,000 ounces in the second quarter of the prior year, with the variance being due to changes in payable silver produced, but not yet delivered to Silver Wheaton. As at June 30, 2015, approximately 800,000 ounces of payable silver had been produced relative to Yauliyacu, but not yet delivered to Silver Wheaton. Gold production from the 777 mines in the second quarter of 2015 amounted to 6,700 ounces or 500,000 silver equivalent ounces, which represented a 43% decrease from the second quarter of 2014, with the decrease being primarily attributable to lower throughput and grades. This lower production resulted in a decrease in gold sales volumes relative to 777, with about 9,500 ounces of gold, or 700,000 silver equivalent ounces being sold in the second quarter of 2015 compared with 13,600 ounces of gold, or 900,000 silver equivalent ounces in the comparable quarter in the prior year. The Sudbury mines produced 8,600 ounces of gold, or 600,000 silver equivalent ounces in the second quarter of 2015, representing a 15% increase relative to the comparable quarter in the prior year due to higher throughput, with the Totten mine continuing to ramp up. Gold sales relative to Sudbury amounted to over 12,500 ounces, or 900,000 silver equivalent ounces, representing an 86% increase relative to the second quarter of 2014. The increased sales volume is primarily attributable to a decrease in payable gold ounces produced, but not shipped during the second quarter of 2015, coupled with the increased production.
The company reiterates guidance of over 23% production growth in 2015, climbing to 43.5 million silver equivalent ounces for the year. And this growth will continue next year and beyond, as climbed to 51 million silver equivalent ounces by 2019, most of which occurs in the next few years and all of which is again, fully funded.