Silver Wheaton (SLW) reports earnings

Real Deal portfolio member Silver Wheaton (SLW) reports increased earnings for the first quarter. Earnings were up 165% year over year.

“Record net earnings of $13.8 million ($0.07 per share) from the sale of 2.7 million ounces of silver, compared to $5.2 million ($0.03 per share) from the sale of 2.3 million ounces of silver in 2005.”Reports

 ”Record operating cash flows of $13.9 million (2005 – $5.2 million).”

“These results are spectacular, obviously assisted by continuing strong silver prices,” said Eduardo Luna, Chairman. “We expect our second quarter to be even better, as a result of silver sales starting up under our new Yauliyacu silver contract.”

Analysis: This is really a case of you aint seen nothing yet. As prices for silver move higher over the next several years I expect cashflow and earnings will explode upward. However I would be cautious here in committing new money as I expect the price of silver to pullback.