Though the golden age of film launched a slew of great careers, there can only be one Katharine Hepburn. In a sector full of stars with staying power, Silver Wheaton
This low-cost producer with the unique business model achieved record production of 4 million silver-equivalent ounces (SEOs) during the second quarter, earning a respectable $18.4 million despite a 19% decline in realized silver prices from $17.35 to $14.04 year over year.
The volume of silver delivered to the company lagged attributable production by about 1 million SEOs, so sales revenue for the quarter was based upon flat volume of 2.9 million ounces, while delivery of the remaining produced ounces will boost results going forward. Variable timing of shipments will impact sales from time to time because of temporary snags like the semi-annual freezing of the Yukon River near the Minto Mine in Canada. As I've said before, within a rising long-term price environment for silver, delayed sales can conceal a silver lining.
Although I am vocally bullish on gold, my regular readers know that I have consistently considered silver a superior investment vehicle until long-term historical ratios between the two metals are restored. Now that Coeur d'Alene Mines
From well-established names like Pan American Silver
In a nutshell, Silver Wheaton enjoys essentially fixed operating costs of around $4 per ounce, clinching a massive margin advantage over the competition. With additional silver streams coming online, especially Goldcorp's
What's not to like?
This is not a rhetorical question, fools. I take my objectivity seriously. Using the comments section below, or my CAPS pitch for Silver Wheaton, I invite you to poke holes in my glowing praise for this company. Aside from a manageable bank debt of $150 million, as a prospective investment this stock reminds me of a vintage Hepburn performance: virtually flawless.
More than 1,500 CAPS members, including 500-plus All-Stars, have selected four-star pick Silver Wheaton to outperform the S&P 500. Create your own portfolio at Motley Fool CAPS and get on your way to becoming an All-Star investor. It's free and fun!
Fool contributor Christopher Barker carries a silver coin which reads: "Honest value never fails." He can be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He tweets. He owns shares of Coeur d'Alene Mines, Hecla Mining, Pan American Silver, Silver Standard Resources, and Silver Wheaton. The Motley Fool's disclosure policy is 0.999 pure.