Vancouver metals-streaming firm Silver Wheaton (TSX:SLW) recorded record silver production in 2013's third quarter, the company announced November 12.
But despite the increase, Silver Wheaton's net earnings decreased compared with the same period last year.
According to a Silver Wheaton press release, silver equivalent production in Q3 was 8.9 million ounces – 6.8 million ounces of silver and 35,300 ounces of gold – compared with 7.6 million ounces in the third quarter of 2012.
Silver equivalent sales in Q3 was 7.8 million ounces – 5.7 million ounces of silver and 35,300 ounces of gold – compared with 5.1 million ounces in 2012's third quarter.
Revenue in Q3 was $166.4 million, compared with $161.3 million in the same period last year.
Net earnings, however, fell to $77.1 million in the third quarter, down from $119.7 million in Q3 2012.
"Production in the third quarter once again hit record levels, putting us well on track to achieving our best year ever and exceeding our 2013 production guidance of 33.5 million silver equivalent ounces," said Randy Smallwood, Silver Wheaton president and chief executive officer.
"We finished this quarter with our second strongest quarterly sales ever, as the impact of our strong production started flowing through the sales pipeline. Overall, our producing assets performed very well during the quarter, and Sudbury and Salobo added to our strength as these mines began contributing consistent gold deliveries."
Also on November 12, Silver Wheaton announced a US$148.5 million early deposit gold-stream agreement with Sandspring Resources Ltd. (TSX-V:SSP).
Under the agreement, Silver Wheaton gains the right to purchase 10% of the gold production from Sandspring's Toroparu project for US$148.5 million. Production at Toroparu, a copper-gold deposit in Guyana, is expected to begin in 2015.
Once the deal is closed, Silver Wheaton will advance Sandspring US$13.5 million.
Silver Wheaton's early deposit agreement with Sandspring comes on the heels of another large-scale gold deal made with Hudbay Minerals (TSX:HBM) last week.
In that deal, Silver Wheaton acquired 50% of the gold production at Hudbay's Constancia project for US$135 million.
Silver Wheaton is a precious metals streaming company. It buys the rights to the silver and gold produced at mines, for an upfront payment.
