Silver Wheaton Reports Record Results; Institutes Dividend (SLW)

Silver Wheaton SLW released its Q4 earnings results on Thursday after the closing bell. The company reported net earnings of $123 million, or $0.35 per share, compared to $50.8 million, or $0.15 per share, in the year ago period. This compared to analysts' estimates of $0.30 per share. Revenue came in at $149.58 million versus $90.55 million in last year's comparable quarter. This came in just under analysts' consensus revenue estimates of $151.78 million. The company also announced that it is instituting a dividend of $0.03 per quarter or $0.12 annually. In the after hours trading session, SLW shares are up 0.07% to $43.75. "The successful ramp up during 2010 of the first of our cornerstone growth assets, Goldcorp's Penasquito mine in Mexico, marked a major milestone for our company, and resulted in record operating cash flows for the year," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With cash on hand in excess of $428 million at year-end, and a business model that consistently results in amongst the highest cash operating margins in the precious metals industry, it is the ideal time for Silver Wheaton to implement a sustainable long-term dividend policy. This will not only allow our shareholders to participate in one of the strongest growth profiles in the industry, but will also provide a dividend yield, with the potential to increase over time, further positively differentiating us from a silver exchange traded fund."