Fri, May 8, 8:45 AM
- Silver Wheaton (NYSE:SLW) flat premarket after reporting Q1 earnings and revenues that fell short of expectations, amid record attributable silver equiv. production of 10.4M oz., 15% more than in the prior-year quarter.
- Q1 silver equiv. sales volume fell 5% Y/Y to 7.7M oz., with the average realized price per silver equiv. oz. falling 17% Y/Y to $16.90 from $20.38.
- SLW's 2015 forecast includes estimated annual attributable production of 43.5M silver equiv. oz., including 230K oz. of gold; by 2019, estimated annual attributable production is expected to rise to 51M silver equiv. oz., including 325K oz. of gold.
- SLW says it raised the limit on its revolving credit facility during Q1 to $2B from $1B and used the proceeds, together with cash on hand, to repay a $1B outstanding debt on a non-revolving term loan.
Fri, May 8, 5:10 AM
Thu, May 7, 6:07 PM
Thu, May 7, 6:04 PM
Fri, Apr. 24, 6:50 PM
- In another day of broad losses among in precious metals miners, Newmont Mining (NYSE:NEM) enjoyed a 6.5% surge following strong Q1 results that included impressive cost reductions in gold and copper production.
- J.P. Morgan analysts especially liked the strong first quarter at Batu Hijau and Yanacocha and the deferral of some capex that allowed NEM to generate $344M in free cash flows and pay down $200M in debt; the firm says full-year guidance could be raised if cost reductions can be maintained in Q2.
- Otherwise, it was not a good day for mining equities, following another drop in gold futures which tumbled to their lowest level in more than a month.
- NEM CEO Gary Goldberg expects gold prices to gain ~25% to $1,500/oz. by 2020 on rising demand from China and a weaker dollar; for now, Goldberg says the strong U.S. dollar is “definitely having an adverse effect” on gold prices, and he expects the dollar will “eventually come back off of its highs in the next couple of years."
- In today's trade: ABX -0.9%, AU -4.2%, GG -2.6%, SBGL -7.7%, GOLD -2%, AUY -2.5%, NGD -1.9%, GFI -4.4%, SLW -1%, PAAS -1.6%, EGO -4.1%, RGLD -2.7%, FNV -2.1%, KGC -0.4%, IAG -1.4%, BTG -1.9%, HL -1.9%, AGI -1.6%, AUQ -3.1%.
Wed, Apr. 22, 6:36 PM
- Gold tumbled today to its sharpest single session loss in more than six weeks, after the strong U.S. existing home sales report that raised expectations for a Fed interest rate hike in June.
- U.S. gold futures for June delivery fell $16.20 (-1.4%) to settle at $1,186.90/oz., while silver fell 1.3% to $15.77.
- Among precious metals miners today: ABX -3.4%, AU -4%, GG -2.8%, SBGL -6.8%, GOLD -1.5%, AUY -3.7%, NG -1.9%, GFI -5%, SLW -2.1%, PAAS -3.5%, NEM -3.1%, EGO -1.4%, RGLD -2.1%, FNV -3.4%, KGC -1.7%, IAG -4.1%, BTG -2.5%, HL -3.8%, AGI -5.4%, AUQ -4.4%.
- ETFs: GLD, SLV, GDX, NUGT, IAU, AGQ, DUST, SIL, USLV, SIVR, SGOL, ZSL, UGL, GLDX, DGP, GLL, UGLD, DZZ, SLVO, GLDI, SGDM, DSLV, OUNZ, SLVP, DGL, DBS, DGZ, RING, DGLD, AGOL, PSAU, USV, TBAR, GEUR, UBG, GYEN, BAR, GDXX
Thu, Mar. 26, 7:15 PM
- Timmins Gold (NYSEMKT:TGD) calls off a private placement worth up to $10M that had been announced on Feb. 17; the offering was priced at C$1.25/share, but shares currently are trading below C$1.
- Also today, Orbite Aluminae (OTCQX:EORBF) called off an offering of debentures and warrants that was expected to raise as much as C$15.5M.
- Six gold companies raised nearly $800M in the span of two days in January, but raising capital has been a challenge ever since; the one major offering that was announced in March - Silver Wheaton’s (NYSE:SLW) $800M bought-deal - was priced too high and led to big losses for the underwriters, and has put a chill in the mining financing market.
Wed, Mar. 18, 6:51 PM
- Silver Wheaton (NYSE:SLW) expects 43.5M silver equivalent ounces of 2015 production, a 20% Y/Y increase. Silver production is expected to total 26.9M ounces (up from 2014's 25.7M), and gold production 230K ounces (up from 142.8K).
- The company forecasts 2019 production will total 51M silver equivalent ounces (+40% from 2014 levels), including 325K ounces of gold. Peru's Constancia mine and Brazil's Salobo mine are expected to account for much of the growth.
- Q4 silver equivalent production fell 8% Y/Y to 9M ounces (6.4M silver, 34.5K gold). However, silver equivalent sales volume rose 7% to 8.5M ounces (5.7M silver, 37.9K gold). With precious metal prices swooning, average realized sale price fell 22% to $16.43 - silver was at $16.46/oz., and gold at $1,213/oz.
- On a silver equivalent basis, average cash costs fell $0.19 Y/Y to $4.51/oz. - silver was at $4.13, and gold at $391. Op. cash flow fell 27% to $94.1M.
- SLW -1.1% AH to $18.81.
- Q4 results, dividend cut, PR
Wed, Mar. 18, 5:13 PM
Wed, Mar. 18, 5:06 PM
Tue, Mar. 17, 5:35 PM
Fri, Mar. 6, 2:42 PM
- Precious metals miners are bludgeoned as April Comex gold tumbles 2.7% to $1,164.30/oz. for its lowest settlement of the year so far.
- The culprit was the upbeat February jobs report, which sparked fears that the improving economy will prompt the Fed to hike interest rates sooner rather than later.
- ABX -6%, GG -6.6%, NEM -7.9%, AU -6.1%, AUY -6.6%, KGC -7.8%, SLW -3.4%, GOLD -5.4%, EGO -5%, GFI -7.9%, HL -10.4%, RGLD -8.6%, FNV -3.2%, NG -4.3%, SBGL -6.4%, PAAS -4.3%,BTG -6.5%, IAG -6.2%, AUQ -5.6%, AGI -2.8%.
- Precious metals ETFs: GLD, SLV, AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, GLTR, DGZ, DGLD, AGOL, DBP, WITE, TBAR, USV, UBG, JJP, BAR, GYEN, GEUR, BARS, RGRP, BLNG
- Precious metals mining ETFs: GDX, NUGT, DUST, SIL, GLDX, SLVP, RING, SGDM, PSAU, GDXX
Wed, Mar. 4, 10:26 AM
- Canadian banks are getting nervous as they struggle to find buyers for Silver Wheaton's (SLW -1.2%) $800M bought deal financing, Financial Post reports, as the company's stock continues to trade below the offer price.
- Sources say a very large portion remains unsold, with one describing the deal as a "train wreck.”
- The bought deal, announced Monday after the close, was priced at US$20.55/share, representing a 3% discount to SLW’s closing price that day.
- This is the third time in recent months where banks had trouble selling a very large mining stock offering, following Barrick Gold and Franco Nevada offerings that proved to be tough sells; FP says it shows that investor appetite for these stocks is not endless amid rough market conditions.
Mon, Mar. 2, 5:19 PM
- Silver Wheaton (NYSE:SLW) -3% AH after agreeing to sell ~$800M of stock to fund its purchase of an additional supply of gold from a Vale's (NYSE:VALE) Salobo mine in Brazil.
- SLW says it will use the proceeds of the offering to fund its acquisition of an additional 25% gold stream from the mine, which is in addition to the 25% of the mine's gold production SLW acquired in 2013.
- The deal raises SLW’s production and cash flow profile by adding expected average gold production of 70K oz./year for the first 10 years and 60K oz./year over the first 30 years.
Thu, Jan. 15, 12:35 PM
- Gold, silver, platinum and palladium are spiking today on Switzerland's surprise move to abandon its currency floor, and shares of the miners are following suit: GDX +6.1%.
- "Gold is much stronger as the 'safety' of the Swiss Franc vanishes,” commented Dave Lutz of JonesTrading.
- Peter Boockvar believes that in "a world of currency battles with printing presses that are extraordinarily large... gold will be the last man standing... the gold bear market is over and will go substantially higher from here."
- Against a backdrop of concerns about global growth, deflation and renewed volatility, gold has been climbing since November as other growth-sensitive commodities such as oil and copper have sold off.
- Among precious metals miners: BTG +9.5%, GG +8.9%, KGC +8.7%, NEM +8.3%, AUY +8.1%, EGO +7.4%, AGI +7%, ABX +6.2%, NG +5.9%, AUQ +5.6%, FNV +5.5%, RGLD +5.4%, IAG +4.8%, GFI +4.2%, HL +4.2%, SLW +3.1%.
- Other ETFs: NUGT, GDXJ, DUST, SIL, JNUG, GLDX, JDST, SLVP, SILJ, RING, SGDM, PLTM, PSAU
Tue, Jan. 6, 5:45 PM
- Silver Wheaton's (NYSE:SLW) amended agreement with Barrick Gold (NYSE:ABX) to receive silver from the Pascua-Lama mine benefits both companies, Cowen analysts say, helping ABX conserve cash while allowing SLW to hold optionality at $1,200/oz. gold.
- For ABX, the new deal provides three additional years to repair its balance sheet, find alternative financing, or wait for a higher gold price, as well as delaying the potential impact of a multimillion dollar payout to SLW; in return, SLW will maintain its optionality in Pascua-Lama, which - if the mine ever achieves production - could provide nearly 60M additional silver oz. over the asset’s first 10 years of mine-life at a cost of ~$4/oz.
- J.P. Morgan says the deal should have no material impact on ABX’s valuation since Pascua-Lama is seen by the market as an out-of-the-money option to which little value is assigned for now.
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