RBC ups Target to $18Let me know if this link works... https://rbc.bluematrix.com/docs/pdf/99519.pdf
An excellent 9 page report...
Here is a highlight, if the link doesnt work, let me know and I will post more of it...
Event
Silver Wheaton's headline EPS of $0.11/sh for Q1/07 was in-line with our estimate.
Investment Opinion
• Financial Results. Backing out extra-ordinary and non-cash items, operating EPS remained at $0.11/sh for Q1/07. CFPS of $0.14/sh was slightly better than our estimate of $0.13/sh.
• Operating Results. Attributable silver output of 3.3MMoz of silver was slightly lower than the 3.5MMoz we were looking for. Cash costs were as expected, at the contracted rate of $3.90/oz.
• Operating Outlook. The company maintained guidance for attributable silver output of 15 million ounces for 2007, with output growing to 23 million ounces per annum by 2009 and 28 million ounces per annum in 2012. The company reiterated that it continues to seek additional silver production stream opportunities. With the recent Stratoni acquisition, our estimate of attributable silver production for SLW rises to 15.7 million ounces.
We recently upgraded our rating of Silver Wheaton on the view that the recent share overhang was likely related to investor
concerns that the size and funding requirements of a potential transaction on the Peñasquito deposit. With our positive
analysis of the recent transactions for future Peñasquito and current Stratoni mine silver, we believe SLW shares will continue
to react positively. We are maintaining our Outperform rating on the company, and are increasing our 12-month target price
from $17 to $18 per share.