Silver Wheaton reports strong production during first half

The first half of the year was productive for Silver Wheaton as far as generation is concerned, according to a published report. But turning profits is another story.

The geology services firm generated a record amount of equivalent ounces, which totaled 16.9 million, MineWeb reports. But during the same time frame, profits fell by more than 50 percent.

“Record first half production of 16.9 million ounces [12.6 million ounces of silver and 73,000 gold ounces] puts Silver Wheaton well on track to meet our 2013 forecast of 33.5 million silver equivalent ounces [including 145,000 gold ounces],” chief executive officer Randy Smallwood with Silver Wheaton said, according to the publication. He noted that will be “an increase of 14 percent over the previous year.”

Thus far this year, gold prices have dropped roughly 21 percent, according to Bloomberg. That puts in peril the precious metal’s annual gains streak, which presently stands at 12. Whether bullion accomplishes that 13th year will become clear during the next four-plus months.

Silver Wheaton generated 8,615,000 silver equivalent ounces during the second quarter of this year, amounting to an increase of 28 percent from the 6,710,000 silver equivalent ounces during the same period from one year prior. The firm underscored the importance of maintaining a strong portfolio during periods when prices are volatile. Functioning mines will continue producing despite weaker prices of commodities, according to the company.

Bloomberg reports worldwide jewelry demand has climbed 37 percent during the second quarter, amounting to 575.5 tons. That represents the biggest gain since the third quarter of 2008.

Acquisitions skyrocketed in China and India 54 percent and 51 percent, respectively.

Indian consumer demand pushed to 310 tons, exceeding that of China, which amounted to 275.7 tons. Purchases of gold from the Middle East advanced 37 percent to amount to 67.4 percent.

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