NYSE listed company Pan American Silver will report earnings after the market closes today. The expectations are high calling for 1.22 dollars per share. That would mean the earnings doubled from Q3 to Q4. At first it sounds unrealistic that a mature company can increase its earnings by 100% in just one quarter. Taking a look at the development of the silver price it does not seem so unrealistic at all. The silver price almost exactly doubled over the course of 6 months. As the costs for the company stay almost the same every increase in the price of this precious metals makes more profit. Therefore it is most likely that we will see this giant increase in profits and I would not wonder if the dividend gets a juicy hike.
We already saw a big hike in dividend payments by Barrick Mining and Agnico Eagle Mines.
I think right now is a great time to own mining companies, although there is of course also a risk. Just recently we saw a sharp drop in precious metals prices that impact the earnings all the same as an increase.
Really excited about the next month and quarterly earnings of mining companies.
