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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:

Silver Wheaton Corp. added a 25% gold stream with Vale's Salobo copper-gold mine in Brazil to an initial 25% stream it bought in 2013. Salobo is Brazil's largest copper mine and is expected to run for 40 years. Chris Marchese recently did an updated and comprehensive fundamental review on Silver Wheaton for subscribers to The Morgan Report. In his view, the Salobo gold stream attributable to Silver Wheaton could double and even triple by early in the next decade. The fundamental analysis for Silver Wheaton is really compelling. It's an interesting company to watch." read more >

Charles Gibson, Edison Investment Research (3/27/15)
"Silver Wheaton Corp.'s net earnings in both Q4/14 and FY14 were closely in line with our expectations, at $52M (versus $52.1M forecast) and $268M (versus $268M, respectively) after record full-year silver equivalent ounce sales. . .earnings benefited from a decline in both the cost of sales and depletion compared with Q3/14."

Phil Russo, Raymond James (3/23/15)
"We are resuming coverage of Silver Wheaton Corp. with an Outperform rating and $30.00 target price post the closing of its $900M gold stream deal with Vale S.A. and its parallel $800M equity deal. We view the stream positively with the outlook for the company strengthened given its cash flows, while still underpinned by precious metals, now having a greater weighting toward gold. We believe this changing gold exposure will benefit the stock over time. . .we expect ongoing stability from its key streaming contributors in 2015. Beyond 2015, Silver Wheaton's profile continues to look attractive."

"Royalty companies can be a great way to play it safe. They put up the money and receive a royalty off the top or a guaranteed stream above a fixed cost of future production. This simple royalty business model has none of the risk and juicy, fat margins. Silver Wheaton Corp. has one of the best records in the business when it comes to most revenue per employee and most cash flow per employee. Where can you have less than 30 people with cash flow of $500M a year?" read more >

Canaccord Genuity's Morning Coffee (3/20/15)
"Silver Wheaton Corp. maintains its majority silver exposure with an estimated 39–43% gold contribution over the next five years (up from 27% in 2014). . .the company remains a preferred avenue to silver exposure due to the strong margin base and participation in reserve growth and production expansion at no further cost."

Andrew Quail, Goldman Sachs (3/19/15)
"Fueled by commercial production at Constancia (Q2/15), higher streaming interest at Salobo (50%), increased contribution from San Dimas and Barrick (grades), we anticipate Silver Wheaton Corp.'s production to grow 23% to 43.6 Moz silver-equivalent in FY15. We anticipate a further increase in production by FY19 driven by expansion. . .at San Dimas and higher contribution at Penasquito and Constancia. High-quality assets Rosemont and Pascua Lama provide additional growth upside if and when they commence operations. . .given the company's low-cost business model. . .we anticipate strong earnings before interest, tax, depreciation and amortization deductions margins of 70%, resulting in significant free cash flow generation of $1.7B over FY15–FY19."

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