2Q Production - How cheap can SST get?Read the numbers, and note the EPS progression analysis:
https://www.kitco.com/pr/1669/article_07212008122504.pdf
403,000 ozs. in 1Q EPS of $0.04
462,000 ozs. in 2Q my EPS forecast of $0.05
Forecast 2,155,000 for full year – means 1,290,000 ozs. in second half of year, or on average 645,000 per quarter, which back of the envelope would produce $0.065 of EPS per quarter, for a full-year total (assuming no change in silver prices) of $0.22.
Of course, what is more likely is a ramp up that produces something closer to 700,000-750,000 oz’s in 4Q, as remember they have a steep rise coming to get to the 2009 forecast of 3,175,000 ozs. produced. At that rate, 4Q EPS (again, assuming no change in silver prices) should be something closer to $0.070-$0.075, projecting to a (growing) annualized rate of $0.28-$0.30.
And since we’re already near August, that 2009 number is going to carry much bigger weight soon with investors. At the current SP, the multiple is now a silly 10x for 2008, which is more than half over, and 6.5x for a company with built-in growth of at least 30% from 2008-2010, not including the new Lundin discovery, the company’s own resources, the potential for higher silver prices amidst a roaring silver bull market, the potential for new silver streams, and the Aquiline project.
And based on Silver Wheaton's 1Q EPS of $0.13, it is currently trading at a P/E of roughly 30x!