NEW YORK, NY -- (Marketwire) -- 11/11/11 -- Silver prices have fluctuated along with the markets recently but are still high as investors continue to seek safe havens in precious metals. While gold may be grabbing most of the headlines, silver has been on a good run with both streaming and mining stocks performing well. The Paragon Report examines investing opportunities in the Silver Industry and provides equity research on Silver Wheaton Corporation (NYSE: SLW) (TSX: SLW) and Silvercorp Metals, Inc. (NYSE: SVM) (TSX: SVM). Access to the full company reports can be found at:
Silver production has been on a steep upswing in recent years aided by new projects in Mexico and Argentina. According to the Silver Institute, production gains have come from primary silver mines and as a by-product of lead/zinc mining activity, whereas silver volumes produced as a by-product of gold fell 4 percent last year. Mexico eclipsed Peru as the world's largest silver producing country in 2010, and Peru is followed by China, Australia and Chile. Global primary silver supply recorded a 5 percent increase to account for 30 percent of total mine production in 2010.
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Silver Wheaton Corp., a silver streamer, has benefitted from higher silver prices. The company agrees to buy silver from mines, pays up front, and then has the right to purchase some or all of the silver produced from the mine at a fixed cost. Streamers may be more susceptible to major price swings, but for now strong silver prices have provided a boost to revenues. The company has tripled its dividend to nine cents per quarter, beginning in the fourth quarter, and is making dividends equal to 20 percent of cash flows in the prior three-month period. The company forecasts 2011 attributable production of 25 to 26 million silver equivalent ounces, including 15,000 ounces of gold.
Aided by higher revenues, Silvercorp Metals also hiked its dividend going forward. The miner with operations in China raised its dividend from two cents a quarter to 2.5 cents. Silvercorp reported third quarter earnings of $18.5 million or 11 cents a share, up from $12.4 million or eight cents a share in the same quarter of 2010, on revenues of $62.1 million, up 71 per cent from 2010 revenues of $36.4 million
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.paragonreport.com/disclaimer
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