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Silver Wheaton Corp. Message Board

  • cgreens72 cgreens72 Aug 13, 2014 6:24 PM Flag

    Why all the fuss about earnings?

    It isn't like they are shutting down the place. If they want to decrease the dividend to make up for the price in silver drop, I am ok with that. Notes from the earnings:

    Average realized sale price per silver equivalent ounce sold in Q2 2014 of $19.83 ( $19.81 per ounce of silver and $1,295 per ounce of gold), representing a decrease of 14% as compared to Q2 2013. - Yes, the price of silver was lower (this means cash will be lower also)

    Cash operating margin1 in Q2 2014 of $15.11 per silver equivalent ounce compared with $18.28 in Q2 2013 & Average cash costs in Q2 2014 were $4.15 and $393 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs decreased to $4.72 compared with $4.77 in Q2 2013.- Costs are reduced (that is good)

    Bottom line: If you think the price of silver is going down? Don't invest here.

    Sentiment: Buy

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    • FT reports:

      “Indeed, there are already rumours in the market place that some big silver producers and consumers are preparing to pepper the market with orders.”

      This creates the possibility of the short squeeze that many market participants and silver analysts have been expecting for some time.

      The FT says that the uncertainty is “only to be expected” and the list of participants may simply be released Friday...

      All that is clear is that the 117 year old silver fix is being replaced by a new “London Silver Price” with the handy acronym LSP.

      The LSP is due to be administered on behalf of the LBMA by the CME Group and Thomson Reuters.

      There is uncertainty as to whether the new price will be made publicly available through data providers, brokers etc.

      Here is what the Bullion Desk had to say about the confusing situation:

      The terms of the agreement state that the LSP should be equally available live for participating vendors With two days to go, it is far from clear that we – or other vendors – will be able to source the LSP and distribute it to our subscribers and data feed customers.

      What we do know is that the LSP will be discovered through an electronic auction process. There will be no chairman; instead, the system algorithm will move the auction price up and down until buy and sell orders are matched to within a reasonable tolerance of 300,000 ounces.

      There will be a wider number of participants than the old fix, although we do not who they will be."

      In addition to the actual LSP price, it will theoretically be possible to follow the live auction process, observing net supply and demand at the various trial prices. Access to the LSP will initially be free but after

      Sentiment: Buy

 
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