NEW YORK ( TheStreet) --The rollercoaster ride that has characterized precious metals markets this year continues, with silver prices hitting recent highs above $25 before heading lower.
This volatility has extended to silver-streaming company Silver Wheaton (SLW - Get Report) as well, which is trading nearly 30% lower on the year, even after its rally during the summer months. But as the broader metals market attempts to stabilize, the stock's weakness has run its course and long-term opportunities can be seen at current levels.
So, while we have seen some major declines in the company's year-over-year earnings, there is mounting evidence that the worst days are behind us and that Silver Wheaton is positioned once again to start producing the stronger earnings numbers seen in the past.
During the second quarter, Silver Wheaton's production rose to a record at 8.6 million silver-equivalent ounces -- a yearly increase of nearly 30%. Rising productivity, however, failed to generate similar increases in sales. Annualized sales were only higher by 4% for the period, coming in at 7.2 million ounces.But where Silver Wheaton really establishes itself as a industry leader with its streaming model is in its ability to keep silver costs low, at an average of $4.14 per ounce.