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Edison's report, A precious alternative, discusses the company's business plan, the prospects for its 24 streaming agreements, its positioning as a supplier of finance to the mining industry globally and how it compares to other precious metals investments, including ETFs, royalty and operating companies. In particular, it is notable that Silver Wheaton offers exposure to exploration success and production expansion without exposure to cost inflation. It also pays a dividend, has geared exposure to precious metals prices and optionality provided by major projects such as Barrick's Pascua-Lama.
Since its creation and listing in 2004, Silver Wheaton has recorded a 39.4% compound increase in silver sales pa, an 81.4% pa increase in earnings, a 55.4% pa increase in basic EPS and a 58.7% pa increase in operating cash flows. While such explosive growth rates will inevitably moderate, we are still forecasting a further 44.8% increase in basic EPS to FY19, driven by a 23.7% increase in silver equivalent production as a result of
Despite this, Silver Wheaton trades on a rating that is uniformly cheaper than its royalty company contemporaries and is often little different to those of major mining companies, despite its having a materially lower risk profile.
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Key links/tags: Metals, mining, gold, silver, precious metals, Franco-Nevada, Royal Gold, Sandstorm Gold, Barrick, Newmont, Goldcorp, Newcrest, Kinross, Agnico-Eagle, Eldorado, Yamana
Overview of Company:
Silver Wheaton is the world's pre-eminent silver streaming company. It acquires streams of precious metals from producing or near-producing mines in return for a combination of a fixed upfront payment (in US$m in either cash or SLW shares) and an ongoing payment (in US$/oz). It currently has agreements relating to 24 different mining projects, 19 of which are in production and two of which are expected to be in production in the foreseeable future (Constancia in FY15 and Rosemont in FY18).
About Edison: Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in
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