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:

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."

Andrew Kaip, BMO Capital Markets (1/11/15)
"Silver Wheaton Corp. remains our preferred senior silver stock with low-cost streaming arrangements ensuring free cash flow even at low silver prices. The company's current streaming arrangements are forecasted to support growth of 35% to 48 Moz Ag eq by 2018E. . .Silver Wheaton remains well positioned for further acquisition with US$230M in cash and US$1B in undrawn facilities."

Salman Partners (1/9/15)
"Silver Wheaton Corp. remains a top pick as the company continues to show progress towards growing its attributable production forecast to 48 Moz Ag eq (with 250 Koz gold) by 2018 from the current estimate of 36 Moz Ag eq (with 155 Koz gold) today."

Michael Jalonen, Merrill Lynch (1/8/15)
"Ten years since the founding of Silver Wheaton Corp. the strength of the streaming model continues to shine despite depressed metal prices. Attributes include a cash operation margin in excess of 70%, generation of 86% of Q3/14 production from assets with first-quartile cost structures, the company forecasting production growth to 48 Moz silver equivalent level by 2018, and payout of 20% of its cash flow as dividends. Backed by its strong free cash flow, Silver Wheaton is well financed to pursue new transactions. It is currently trading at a 27% discount to its royalty/streaming peers. . .Silver Wheaton remains our top pick among the royalty/streaming companies for 2015."

Adrian Day, Global Analyst (1/8/15)
"Silver Wheaton Corp. announced it had agreed with Barrick Gold Corp. to extend the silver streaming agreement on Barrick's stalled Pascua-Lama project. The company will continue for another 15 months to receive silver production from three other Barrick mines. The completion test deadline for Pascua has been extended to June 30, 2020. If the deadline is not met, Silver Wheaton is entitled to repayment of its upfront payment of $625M, less silver already received. This is a positive for Silver Wheaton, though not unexpected."

Raymond James (1/7/15)
"We anticipate Silver Wheaton Corp. will have a strong Q4/14, with a startup at Constancia and further ramp-up at Salobo helping the early 2015 results. . .the company's strong operating cash flows (~$900M over 2015E–2016E) are rapidly improving its balance sheet, positioning it well to make additional accretive acquisitions in 2015."

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