Silver Wheaton Corporation, a Vancouver-based company, realizes its profits by providing stream financing for mining companies, worldwide. In the first quarter of 2012, silver purchase agreements drove increased profits for the mine operation financing company. The reason for the gains was increasing output from silver mines for which Silver Wheaton holds purchase agreements.
Silver Wheaton provides initial upfront money to finance the construction of mines. The company exchanges their cash contribution for an interest in the mine’s future metal production. The price for metal retrieved from the asset is given a set price for the purpose of the exchange.
The company announced on May 14th that their revenue for the first quarter of 2012 had surged to $199.6 million. The number represents a rise of twenty-six percent over the previous quarter. Net income rose to $147.2 million. This $25 million increase made Silver Wheaton’s share price jump seven cents per share over their 2011 first quarter price.
http://af.reuters.com/article/metalsNews/idAF1E8GE0VW20120514
