Silver Wheaton (SLW)

Business description

Silver Wheaton is the world's pre-eminent precious metal streaming company with 24 precious metals' streaming agreements relating to assets in Mexico, Peru, Canada, Brazil, Chile, Argentina, Sweden, Greece, Portugal, the US and Guyana.

Share price chart

Share chart

Stock data

Market cap.C$8442.6m
Last closeC$23.58
High / Low (52 weeks)C$ / C$
Stock market listingCN, US
Forecast net debt (US$m)812.4
Forecast gearing ratio (%)23
TeamResources - Mining

Price performance

Relative *(13.7)(13.8)(26.4)

* % Relative to local index

Other companies in sector Show

Afferro Mining Afri-Can Marine Minerals
African Barrick Gold African Eagle Resources
African Minerals Alderon Iron Ore
Alkane Resources All Star Minerals
Allied Gold Mining Almonty Industries
Altius Minerals Altona Energy
Amara Mining Amerigo Resources
Amur Minerals Corporation Angel Mining
Anglesey Mining Anglo Pacific Group
Antofagasta Aquarius Platinum
Arian Silver Ariana Resources
Aspire Mining Atlantic Gold NL
Aurcana Corporation Aureus Mining
Aurizon Mines Avalon Rare Metals
Avnel Gold Mining Baobab Resources
Bellzone Mining Bezant Resources
Blackthorn Resources Bushveld Minerals
Cabral Resources Caledon Resources
Caledonia Mining Cameco
Canada Lithium Corporation Carpathian Gold
Celamin Holdings Central Asia Metals
Centrex Metals Champion Iron
Chatham Rock Phosphate Chieftain Metals
Coal of Africa Condor Gold
Continental Coal Dalradian Resources
Denison Mines Discovery Metals
Doray Minerals DRDGOLD
Duluth Metals Eastern Platinum
ECR Minerals Edgewater Exploration
EMED Mining Energy Fuels
Equatorial Resources Euromax Resources
European Goldfields Forsys Metals Corp
Fronteer Gold Frontier Mining
Frontline Gold Galaxy Resources
Gascoyne Resources Gemfields
GMA Resources Gold One
Gold Road Resources Goldcrest Resources
Golden Minerals Company Goldplat
Gunson Resources Hambledon Mining
Highland Gold Highlands Pacific
Hummingbird Resources International Mining & Infrastructure Corp
Ironwood Gold Jameson Resources
Kefi Minerals Kenmare Resources
Kingsgate Kinross Gold Corporation
Kopy Goldfields Lemur Resources
London Mining MacPhersons Resources
Majestic Gold Mandalay Resources Corp
Mariana Resources Matamec Explorations
MDM Engineering Group Medusa Mining
Metallica Minerals Minera IRL
Minotaur Exploration Mkango Resources
MMG Mwana Africa
Natural Resource Partners Ncondezi Energy
Nevsun Resources Nkwe Platinum
Nordgold North American Palladium
Northern Dynasty Minerals Norton Gold Fields
NovaCopper OceanaGold
Oracle Coalfields Orbis Gold
Ormonde Mining Orosur Mining
Orpheus Energy Pan African Resources
Pan American Goldfields Papillon Resources
Petropavlovsk Pilot Gold
Platmin PolyMet Mining
Polymetals Mining Randgold Resources
Rare Element Resources Red Rock Resources
Regency Mines Richmont Mines
Rio Tinto Robust Resources
Rutila Resources Sable Mining
Shore Gold Sirius Minerals
South American Silver Corp Spanish Mountain Gold
Sumatra Copper & Gold Syndicated Metals
Teck Resources Titanium Resources Group
Torex Gold True North Gems
U3O8 Holdings Universal Coal
Vatukoula Gold Mines Veris Gold Corp
Victoria Gold W Resources
Western Areas Wits Gold
Wolf Minerals Woulfe Mining
Zanaga Iron Ore Company Zazu Metals Corporation

Investment summary

Q2 EPS declined 11% y-o-y, despite a 14% decline in the AgE price. Silver production was close to plan at 6.3Moz; however, gold production was 13.8% lower cf Q213. While superficially analogous to both miners and royalty companies, Silver Wheaton's (SLW) streaming business plan is almost unique, as it offers exposure to exploration success and production expansion without exposure to cost inflation. It also pays a dividend and has geared exposure to precious metals prices.

Last updated on 30/09/2014

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2012A 849.6 701.2 600.0 166.0 12.6 10.3
2013A 706.5 531.8 381.6 106.0 19.7 13.7
2014E 680.8 480.4 310.3 87.0 24.0 14.3
2015E 884.3 637.8 424.4 119.0 17.5 11.6

Last updated on 29/09/2014

Latest research

Equity and earnings outperform metal

Update | Mining | 21/08/2014

A precious alternative

Initiation | Mining | 10/06/2014

Growing streaming opportunities

QuickView | Mining | 02/12/2013

Latest video

Analyst Interview - Silver Wheaton

Industry outlook

Taking into account likely future streaming agreements, we conservatively forecast a share price of US$36.63 (C$40.18) in FY19. In the meantime, SLW trades on multiples that are consistently cheaper than its royalty ‘peers’ and more akin to (and sometimes cheaper than) its operating contemporaries, despite being associated with materially less risk. Q3 estimates assume US$19.74/oz Ag and US$1,280/oz Au. NB the Mineral Park mine has been removed from our forecasts from Q414; as a result, our FY14 production forecast is 35.9Moz AgE.

Last updated on 30/09/2014

Key management

Randy V. J. Smallwood , CEO
Gary D. Brown , CFO
Patrick Drouin , Head of IR
Rory Quinn , IR

Company address

Suite 3150
666 Burrard Street
V6C 2X8
View website