Silver Wheaton Corp. (SLW), which resells silver bought from mining companies, gained the most in two months after the company reported fourth-quarter earnings that beat analysts’ estimates and prices for the metal rose.
Silver Wheaton climbed 5.3 percent to close at C$33.66 in Toronto, the most since Jan. 25.
Net income more than doubled to $144.7 million, or 41 cents a share, from $63.9 million, or 18 cents, a year earlier, the Vancouver-based company said on its website. Analysts projected profit of 40 cents a share, the average of nine estimates compiled by Bloomberg. Sales increased 28 percent to $191.9 million from $149.6 million.
“They did have a very good quarter,” David West, a Vancouver-based analyst at Salman Partners Inc., said today in a telephone interview. “It’s probably one of the best stories out there.”
Silver Wheaton pays mining companies upfront to buy a percentage of future metal output at a fixed price and sells the silver and gold at market prices.
The company’s financial results “highlight the strength of our model,” Chief Executive Officer Randy Smallwood said today in a telephone interview. “People are starting to realize that the growth that we’ve got is real.”
Silver futures for May delivery rose 3 percent to $32.272 an ounce on the Comex in New York, the most since Feb. 28.
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