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:

Charles Gibson, Edison Investment Research (11/24/16)
"Silver Wheaton Corp.'s Q316 results were characterized by silver production in line with Edison's expectations, but an exceptionally strong performance from its gold assets. . .we forecast a value per share of US$33.09, or C$44.72, in FY20 (prices of US$23.98/oz Ag and US$1,362/oz Au). . .SLW's shares are trading on near-term financial ratios that are cheaper than those of its royalty/streaming 'peers' in at least 87% of measures considered, and the miners themselves in at least 46% of measures considered, despite being associated with materially less risk."

Phil Russo, Raymond James (11/10/16)
"Production from Silver Wheaton Corp.'s streams were generally in-line with our overall expectations as strong performance from Antamina and Salobo offset significant underperformance from San Dimas . . . earnings came in below our estimate primarily as a result of an increase in ounces produced but not sold. We view 4Q16 favorably as Silver Wheaton should see increased production at Peñasquito, and the latest Salobo interest positively contribute to revenue and earnings. . . Silver Wheaton remains our highest FCF yielding name amongst our large caps and has increased the quarterly dividend by 20% this quarter."

Michael Gray, Macquarie Capital Markets (11/10/16)
"Although Primero’s San Dimas asset is struggling in the near term with guidance revised lower for the second time, we think the market has overreacted to the downside and this is a key opportunity to buy Silver Wheaton Corp. at a discount. . .we expect a strong Q4/16 driven by inventory draw-downs from producers toward year-end. . .Salobo [is] delivering as the cornerstone asset. . .we think the recent copper price move will incentivize partner VALE to continue pushing a phase III expansion as Salobo is one of VALE’s best performing assets."

Josh Wolfson, Dundee Capital Markets (11/10/16)
"Silver Wheaton Corp. reported silver equivalent production in concentrate of 15.1 MMoz [in Q3 results]. . .SEO production in concentrate was largely aided by higher gold output (+21 koz Au or 1.4 MMoz SEO) due to materially higher output at SLW’s Salobo mine (+12 koz variance) and the company's 'other' mines (+12 koz variance), which include Constancia, 777, and Minto. . .Silver Wheaton revised its production targets, with 2016 gold production now forecast to be 335 koz, up from 305 koz previously (DCM est 311 koz), due to better YTD results and the company’s expectations for 4Q Salobo and Sudbury output."

Michael Gray, Macquarie Capital Markets (11/10/16)
"Silver Wheaton Corp.'s gold production was a strong beat while silver production missed forecasts. . .SLW trades in-line with peers at ~1.4x NAV (FNV at ~1.6x NAV) while offering high quality streams with the majority of the assets operating in the bottom half of their respective cost curves."

Andrew Kaip, BMO Capital Markets (11/9/16)
"Silver Wheaton Corp. reported Q3/16 adjusted EPS of $0.19, a beat relative to our expectations. . .Q3/16 production of 7.7 Moz of silver and 109.2 Koz of gold was a strong beat relative to our expectations of 7 Moz silver and 83.9 Koz gold. The production beat was due to higher gold production at Salobo. . .given the strong YTD performance of Salobo and Sudbury, SLW raised 2016 gold guidance to 335 Koz (from 305 Koz). . .SLW also announced that Chuck Jeannes, former president and CEO of Goldcorp, has joined the board of directors."

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
Jason Hamlin, Founder – Gold Stock Bull
Tom Hayes, Analyst – Edison Investment Research
Timothy Hayes – Davenport & Co.
Frank Holmes, Chairman – U.S. Global Investors
Andrew Kaip, Analyst – BMO Capital Markets
Ben Kramer-Miller, Chief Analyst miningWEALTH
Tony Lesiak, Head of Canadian Mining Research – Canaccord Genuity
Kevin MacKenzie, Analyst – PI Financial
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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