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:

Josh Wolfson, Dundee Capital Markets (9/20/16)
"Silver Wehaton Corp. founded the streaming business model, and views an arbitrage opportunity available where precious metals output from a base metal mine can be valued more favourably by the market within its portfolio. Management outlined it maintains a sector-leading low-cost portfolio, with >95% of production sourced from assets within the lower half of the cost curve. . .at Salobo. . .SLW is expected to receive >225 koz annually. At Penasquito the completion of the pyrite leach circuit in 2019 will improve recoveries, and grades will improve from near-term lower grade ore."

Sean Williams, The Motley Fool (9/19/16)
"When we take a step back and analyze the catalysts behind the move higher in precious metal spot prices, it's silver that could have considerably more upside than gold. . .Silver Wheaton Corp. is a royalty and asset streaming company in the silver- and gold-mining space. In return for upfront capital that miners use to develop and expand their mines, Silver Wheaton receives long-term or life-of-mine contracts that allow it to purchase a specified amount of gold or silver at a fraction of the current spot price. . .if silver rises substantially, so should Silver Wheaton's payout."

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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Jorge Beristain, Deutsche Bank (9/9/16)
"We initiate coverage of Silver Wheaton Corp., the largest precious metals focused streaming company globally, with a Buy. . .we forecast silver equivalent production of 54.7m oz in 2016 and 57m oz in 2017 which then has the potential to increase in forward years through deals and/or project development with minimal additional overhead. . .Silver Wheaton is more levered than some peers, its Balance Sheet remains solid. Despite the recent share price rally, we still see upside."

"Several royalty and streaming companies, including Silver Wheaton Corp., have generated above-average returns in the long run, having outperformed mining stocks, broader stock market indexes and the underlying precious metals. . . the stream that Silver Wheaton owns on Primero Mining's San Dimas mine, it purchased more than 10 years ago back when Goldcorp owned the project. Silver Wheaton now generates ~50% of its initial investment on an annual basis, and the investment has already more than paid for itself. . .Silver Wheaton is inexpensive relative to its peers on a price-to-operating-cash-flow basis. Shares trade at ~20X forward cash flow, which sounds high. But the company's cash flow will be bolstered through mine expansions at two of its biggest streaming assets—Salobo and Peñasquito—over the next few years. The company also has exposure to some of the most efficient mines in the world, which will likely not shut down in the event of a commodity price slump. Such exposure makes up the bulk of Silver Wheaton's portfolio." read more >

"Silver Wheaton Corp. has seen higher revenue, as expected with high gold and silver prices (offset partly by the lower production as Penasquito, expectedly to be only temporary). Silver Wheaton has a good project pipeline and available resources for future acquisitions. Though cash is only $103 million against debt of about $1.5 billion, the debt is very serviceable and a line of credit is available as needed. SLW is trading at only a modest discount to industry leader Franco Nevada (just 2% if the reserves for the Canadian tax dispute are eventually used for that purpose). But of course, should Silver Wheaton win the case, there is considerable upside. Given the rally in the stock price, the risk from lower silver prices, and the valuation, we are holding." read more >

Charles Gibson, Edison Investment Research (8/30/16)
"Silver Wheaton Corp.'s Q2/16 earnings were within 2.5% of our forecast and 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 (which was almost 6,000oz ahead of our expectations), continued outperformance at Antamina (for a third consecutive quarter) and inventory drawdown (for a second consecutive quarter)."

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
Ash Guglani, Analyst – Salman Partners
Jason Hamlin, Founder – Gold Stock Bull
John Hathaway, Senior Managing Director – Tocqueville Asset Management L.P.
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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