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Wheaton Precious ups Q2 dividend by 43%; earnings jump 12% YOY

Wheaton Precious Metals Corp. boosted its second-quarter dividend by 43% quarter over quarter to 10 U.S. cents apiece.

The company's second-quarter attributable silver output fell 5% to 7.19 million ounces, while gold output rose 10% to 78,100 ounces of gold.

Revenue in the period fell 6% year over year to US$200 million due to an 11% decrease in silver ounces sold, partially offset by a 2% increase in gold ounce sales. Quarterly silver sales totaled 6.37 million ounces and gold sales came in at 71,965 ounces.

Wheaton Precious's net earnings climbed 12% year over year to US$67.6 million, it said Aug. 10.

The company forecasts attributable production at 28 million silver ounces and 340,000 gold ounces for the full year. Meanwhile, average annual attributable silver and gold output over the next five years is anticipated to be about 29 million ounces and 340,000 ounces, respectively.

Additionally, Wheaton entered into a non-binding early deposit precious metals purchase agreement with Desert Star Resources Ltd. to acquire up to 100% of payable silver and gold output from the Kutcho project for US$65 million, according to a same-day separate release.

In June, Desert Star agreed to acquire Capstone Mining Corp. to secure the Kutcho copper-zinc-gold-silver project in British Columbia.

Wheaton Precious will be entitled to purchase 100% of production from the Kutcho project until 5.6 million ounces of silver and 51,000 ounces of gold have been delivered, at which point the stream will decrease to 66.67% of the silver and gold production for the life of the mine.

Under the deal, Desert Star will receive US$7 million as an early deposit, with payments to be used to fund feasibility study expenditures. The balance of the payments will be received in installments during construction of the Kutcho project.

Wheaton Precious also agreed to participate in up to 14% of a proposed Desert Star equity financing to a maximum of C$4 million, with the proceeds to be used for the acquisition of the Kutcho project.

In addition, Desert Star agreed with Capstone to extend completion of the acquisition of Kutcho from Aug. 31 to Sept. 30.