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$9731.6m
Last closeC$27.180
High / Low (52 weeks)C$ / C$
Stock market listingCN, US
Forecast net debt (US$m)809.2
Forecast gearing ratio (%)23
TeamResources - Mining
SectorMining

Price performance

%1m3m12m
Actual(5.2)15.4(1.8)
Relative *(7)8.7(20.6)

* % Relative to local index

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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. Nevertheless, production guidance was maintained at 36Moz AgE, suggesting a relatively strong Q3 and Q4. 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 01/09/2014

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 15.3 12.5
2013A 706.5 531.8 381.6 106.0 23.9 16.7
2014E 684.9 484.5 314.4 88.0 28.8 17.2
2015E 884.3 637.8 424.4 119.0 21.3 14.1

Last updated on 21/08/2014

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$37.02 (C$40.37) 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. NB forecasts currently exclude San Dimas's planned expansion to 3ktpd in 2016.

Last updated on 01/09/2014

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
Vancouver
BC
V6C 2X8
Canada
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