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Silver Wheaton Corp. Message Board

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  • hailurban hailurban Nov 2, 2012 12:29 PM Flag

    This stock should still move up today if the trend continues

    This company will eventually price in at 1.6 times the silver price. I would like to see silver stay low and slow. The management claims to be "Busier than ever" in deal negotiations.

    "TORONTO (miningweekly.com) –

    Silver Wheaton CEO Randy Smallwood told Mining Weekly Online that although year-on-year profit for the June-quarter slid by 5% to 141.4-million, the company was in a strong cash position, with about $600-million cash in the bank and another $400-million available in its revolving loan facility to pursue funding and streaming agreements with other companies holding quality assets.

    “Our low-risk business model entails investing in companies on the lowest end of the production cost curve, sheltering us from the extreme fluctuations in production and market cycles,” he said during an interview.

    He pointed to numerous companies holding assets that could suit Silver Wheaton’s profile of low-cost, high-value projects with large quantities of by-products. Among those was Turquoise Hill Resources and its massive Mongolian Oyu Tolgoi copper/gold project, as well as the world’s top copper producer Codelco’s numerous development projects."

    From Bloomberg...
    “The challenge for financing mines right now is that the traditional forms of financing, debt and equity, aren’t very strong,” Smallwood said. “Forms of financing like streaming are very much in demand, so we’re busier than we’ve ever been.”

    "It’s easiest to negotiate deals when metal prices are stable, Smallwood said. When they rise, Silver Wheaton benefits from increased cash flow, “but expectations start shooting up quite rapidly.” “If we see continued stability of silver, trading between the high $20s, low $30s, then I’m hopeful that we will be able to make a few more acquisitions,” he said."

    More good solid deals coming our way, especially if silver stays in the price range mentioned by Smallwood. Thank you, JPM?

    Sentiment: Hold

 
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