With another 22.5% climb in silver prices recorded during the first quarter of 2011, quality silver miners are poised to enjoy still more of that epic margin expansion that has fueled the sector’s truly epic outperformance of the market. Although Silver Wheaton (NYSE: SLW ) already approached the pinnacle of corporate profitability in the fourth quarter of 2010 — with an astonishing 82% net profit margin — the company’s unique, fixed-cost business model could yield a further 25% sequential expansion of its cash operating margin for the first quarter of 2011.
Fellow growth machine Endeavour Silver (NYSE: EXK ) posted operating results for the first quarter this week, and reported a gorgeous average realized silver price of $33.18 for the period.
via Your Sneak Preview of the Next Silver Bonanza (EXK, GPL, HL, PAAS, SLW, SVM)