Silver Wheaton Corp.

Silver Wheaton is the largest pure precious metals streaming company in the world. The Company has streams on some of the largest and lowest cost mines in the world. Silver Wheaton’s production and growth are founded on cornerstone assets including the Salobo mine in Brazil, the Peñasquito and San Dimas mines in Mexico, and the Antamina mine in Peru. Based upon its current agreements, forecast 2016 estimated annual attributable production is approximately 32 million ounces of silver and 305,000 ounces of gold. Silver Wheaton’s estimated average annual attributable production over the next five years is anticipated to be approximately 31 million ounces of silver and 330,000 ounces of gold per year.

Expert Comments:

Kevin MacKenzie, PI Financial (10/5/16)
"We are adding Silver Wheaton Corp. as a TOP Pick. . .given the political and economic uncertainty worldwide, we view Silver Wheaton to be a strong overall market hedge, and levered proxy to precious metal prices. . .Furthermore, given the company’s expanding margins, fix cost structure (2016-2020E: US$405/oz gold, US$4.57/oz silver), and robust asset base (96% producing assets within first half of cash cost curve), we view it as a preferred play among the senior producers. . .at present, we recommend Silver Wheaton with a BUY rating, US$35.50/sh target price and AVERAGE risk rating."

Josh Wolfson, Dundee Capital Markets (9/30/16)
"Beyond Silver Wheaton Corp.'s average 2016-2020 production guidance of 31 MMoz Ag & 330 koz Au, it maintains several key development projects which could add an incremental 19 MMoz AgEq annually to its production profile. . .Key principles for SLW's investment in precious metals streams include the security structure of its investment, and a preference for long life, low cost operations . . .We maintain our BUY rating and our C$45.00 target, based on 2.1x our NAVPS at a long term gold price of $1,350/oz and 26x our sustainable FCF est(unch)."

Michael Gray, Macquarie Equity Research (9/30/16)
"The key messages in the initial Silver Wheaton Corp. session in our view were: 1) Streaming deals have commanded $19 of every $20 raised in equity (or debt) vs royalties at only $1 - this highlights the importance of the streaming model; 2) Technical due diligence is done at a high level - partners feedback to the SLW due diligence team is that their insights are typically value-add to the operations - we have stressed in a number of reports that this in-house due diligence team provides SLW with a key competitive advantage. . .We reiterate our Outperform recommendation and C$40.00 target."

Kevin MacKenzie, PI Financial (9/30/16)
"With 96% of its streams now from assets within the lower half of the cash cost curve, fix attributable production costs of $4.57/oz silver and $405/oz gold, significant leverage to precious metal prices and an increasing dividend, Silver Wheaton Corp. continues to tick all of the investment boxes. . .In addition to the inherent investment leverage associated with a)advancing to production cheaper development stage ounces, and b) commodity cycle related investment timing, Silver Wheaton now benefits from the active concurrent exploration/discovery being conducted by its development staged streaming counterparties. . .At present, we maintain our current valuation of US $35.50/sh target price and AVERAGE risk rating."

Phil Russo, Raymond James (9/30/16)
"We viewed the company’s maiden analyst day favorably overall as Silver Wheaton Corp. reaffirmed its core assets are long life, significant cash flow contributors with projections largely in-line with our expectations. . .From a valuation perspective, today we estimate Silver Wheaton trades at 1.5x P/NAV vs.the peer group at 1.8x (and Franco Nevada at 2.1x). On a P/CF basis, Silver Wheaton trades at 16.6x 2017 P/CF vs peer group at 20.1x. . .We continue to like Silver Wheaton Corp today for its leading portfolio of mines, peer leading cash flow profile and favorable valuation profile."

Charles Gibson, Edison Investment Research (9/29/16)
"Silver Wheaton Corp.'s Q2/16 earnings were close to Edison's forecast, but were still almost 50% better than the previous quarter. Performance was buoyed by record gold sales, driven by the continued ramp up at Salobo, a record production performance at Sudbury, continued outperformance at Antamina and continued inventory drawdown. . .SLW is trading on near-term financial ratios that are cheaper than those of its royalty/streaming peers and the miners themselves on a majority of valuation measures, despite being associated with materially less risk."

Citing a strong balance sheet and a large portfolio of diverse gold and silver streaming assets worldwide, Deutsche Bank has initiated coverage of Silver Wheaton with a Buy rating.
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More Expert Comments

Experts Following This Company

Jay Albany, Healthcare Analyst – SeeThruEquity
Ralph Aldis, Portfolio Manager, Gold and Natural Resources – U.S. Global Investors
Jorge Beristain, Analyst – Deutsche Bank
Luke Burgess – Hard Money Millionaire
Cosmos Chiu, Executive Director of Precious Metals Equity Research – CIBC World Markets
Adrian Day, Founder – Adrian Day Asset Management
Charles Gibson, Director, Mining – Edison Investment Research
Michael Gray, Analyst – Macquarie Capital Markets
Ash Guglani, Analyst – Salman Partners
Jason Hamlin, Founder – Gold Stock Bull
Tom Hayes, Analyst – Edison Investment Research
Frank Holmes, Chairman – U.S. Global Investors
Andrew Kaip, Analyst – BMO Capital Markets
Marin Katusa, Analyst – Katusa Research
Ben Kramer-Miller, Chief Analyst miningWEALTH
Tony Lesiak, Head of Canadian Mining Research – Canaccord Genuity
Kevin MacKenzie, Analyst – PI Financial
Brad Mills, Fund Manager/CEO – Plinian Capital
David Morgan, Publisher – Silver Investor
Bob Moriarty, Author 321 Gold
Phil Russo, Research Associate – Raymond James
Josh Wolfson, VP, Senior Analyst Gold & Precious Metals – Dundee Capital Markets

The information provided above is from analysts, newsletters, the company and other contributors.

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