Newmont Mining Corp (NEM), Silver Wheaton Corp. (USA) (SLW): A Troubling Trend Emerging in the Gold Industry

The silver miner noted at the time that its revenues are primarily derived from the sale of silver, with its operating cash costs essentially fixed at approximately US$4 for every ounce of silver sold.

However, the silver streamer found that it didn’t eliminate volatility at all and just changed over to a new schedule of basing its payout on cash flows generated over the past year. Needless to say, Silver Wheaton Corp. (USA) (NYSE:SLW)’s dividend payment has begun sliding as well.

The fevered hope at the moment is that precious-metal prices continue their slow climb back, or at the very least don’t fall further. That way, the spending cuts and production delays these companies have engineered will be enough to stave off having to cut their payouts further. Yet if price weakness returns, look for gold to lose even more of its luster.

The article A Troubling Trend Emerging in the Gold Industry originally appeared on Fool.com is written by Rich Duprey.

Fool contributor Rich Duprey and The Motley Fool have no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.