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SILVER WHEATON CORP. T.SLW

"Silver Wheaton is a pure, unhedged paper proxy on silver prices with a unique business model. The company purchases silver for sale through long-term purchase contracts from counterparties. Currently, the company has long-term silver purchase contracts with more than a dozen mines. Silver Wheaton purchased and sold roughly 28 million silver-equivalent ounces in 2012 through its purchase sales contracts."


TSX:SLW - Post by User

Comment by materialsgirlon Aug 11, 2016 10:13am
431 Views
Post# 25130392

RE:Resolution to CRA issues and Pascua Lama would be great.....

RE:Resolution to CRA issues and Pascua Lama would be great.....Steve;

I agree with your two points and I will add my comments;

1  Pascua Lama.  The analysts and investors attach zero value to Pascua Lama.
   It is known to be there but uncertainty makes the future opaque.
   The good thing then is that the benefit to SLW will be a windfall if it
   does get going by 2020 or later just like you said.
   It is heads I win, and tails I break even
  This was intended to be a whopper;   long long life and 9 million ounces of silver per year for SLW
  This scale is unlikely to happen in the short term but by 2025?????

2  CRA issue.  An unfavourable ruling might cut 10% from the real NAV of SLW.   There are many ways to do the calculation but 10% is a reasonable guess. The product mix and the larger scale of SLW make it intrinsically a better company than that great company Franco Nevada.  Yet, we are trading at 50% the valuation of FNV

So, we are well covered for adversity over the next 2 or 3 years.   I feel safe here and we have a great upside potential.

Annualised revenue, starting on July 1 2016, is now US$1.1b or almost $1.5b CAD

Let's enjoy the ride

Mat
 
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