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Silver Wheaton Corp.

Silver Wheaton Corp. is the largest precious metals streaming company in the world. Based upon its current agreements, forecasted annual attributable production for 2014 is approximately 36 Moz Ag eq, including 155 Koz gold. By 2018, annual attributable production is anticipated to increase significantly to approximately 48 Moz Ag eq, including 250 Koz gold. This growth is driven by the company's portfolio of low-cost and long-life assets, including precious metal and gold streams on Hudbay Minerals Inc.'s Constancia project and Vale S.A.'s Salobo and Sudbury mines.

Expert Comments:

Andrew Kaip, BMO Capital Markets (3/2/15)
"Silver Wheaton Corp. announced that it has amended its revolving credit facility to increase available credit to $2B from $1B and has extended the term by two years. The facility now matures on Feb. 27, 2020. Proceeds from the amended facility (together with cash on hand) were used to repay the $1B debt previously outstanding under the non-revolving term loan. . .restructuring of the credit facility appears to be motivated by a view of enhancing financial flexibility."

Andrew Kaip, BMO Capital Markets (2/24/15)
"Silver Wheaton Corp.'s operating costs are essentially fixed at ~US$3.90/oz silver and ~US$400/oz gold, allowing the company to fully participate in any rise in precious metal prices. . .Silver Wheaton remains well positioned to pursue additional transactions with $230M cash on hand, strong projected cash flow,and a US$1.0B revolving credit facility."

"I follow Silver Wheaton Corp., a royalty/streaming company, and rate it Outperform. The company has approximately $1B of available liquidity to put toward acquisitions. . .a couple of the streams in its portfolio are a bit unpredictable in terms of timing of sales, which creates some inconsistency in quarterly results, I don't see any structural issues with any of its existing portfolio. Over 75% Silver Wheaton's streaming/royalty sales come from mines operating in the lower half of the cost curve. With production increases at mines like Goldcorp's Peñasquito mine or Primero Mining's San Dimas gold-silver mine (both in Mexico), as well as new production coming on line from HudBay Minerals's Constancia operation in Peru, we see significant production growth for Silver Wheaton in the years to come—all of it coming from streams within its existing portfolio. read more >

"Royalty companies such as Silver Wheaton Corp. excite investors because they provide exposure to rising gold and silver prices without the risks inherent in exploration and development." read more >

"We like Silver Wheaton Corp. . .we like to have our foot in the door on silver and Silver Wheaton is our favorite way to do that." read more >

Charles Gibson, Edison Investment Research (1/19/15)
"In respect to its agreement with Barrick Gold Corp., Silver Wheaton Corp. has agreed to extend the completion test deadline from December 31, 2017 to June 30, 2020 in return for an extension to its entitlement to production from Lagunas Norte, Pierina and Veladero from December 31, 2016 to March 31, 2018. . .if the completion test is not satisfied, Silver Wheaton will be entitled to the return of its initial cash consideration of $625M less a credit for silver delivered up to that date. . .we estimate peak production and earnings per share (excluding Pascua-Lama) of 44.5 Moz silver eq and $1.50 per share, respectively, in FY/19."

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