Precious Metals Commodities

I'm no expert in the precious metals mining industry, but Silver Wheaton caught my eye recently. They are the only company that derives 100% of their revenue from silver production, and are owned by Goldcorp (NYSE:GG), who do gold production and exploration. Besides jewellery, silver is used in many other applications, including heavy use in photography, electric conductivity, and dental fillings.

Their most recent Q1 report seemed too good to be true: - they beat analyst estimates of $0.06 per share by reporting earnings per share of $0.07, doubling earnings since a year ago - Silver Wheaton sold 2.6 million ounces at an average realized price of $9.62, compared with a 2.3 million ounces at an average price of $6.92 per ounce a year ago. - they announced that they expect to sell 15 million ounces of silver by the end of this year, and 20 million by the end of 2009. Despite this, SLW's shares managed to drop $0.84 yesterday amidst a drop in precious metals prices. Still, at $12.51 per ounce, silver is trading 63% above year-ago levels. They are unhedged, debt-free, and looking for new opportunities to expand. If you can get over the risk of being 100% reliant on silver, they are an all round solid company and definitely worth looking into.

Precious Metals

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