You're browsing: Home » Silver Wheaton Corporation



Silver Wheaton Corporation

Print This Post Print This Post | Topic: Silver Mining Companies — August 14th, 2006
Himcolin For Sale Altace No Prescription Buy Danazol No Prescription Buy Online Mircette Buy Depakote Online Flonase For Sale Geriforte No Prescription Buy Styplon No Prescription Buy Online Lynoral Buy Protonix Online Lozol For Sale Yerba Diet No Prescription Buy Aricept No Prescription Buy Online Claritin Buy Procardia Online Lamictal For Sale Lincocin No Prescription Buy Pilex No Prescription Buy Online Herbolax Buy Cozaar Online Tulasi For Sale Maxaquin No Prescription Buy Cardizem No Prescription Buy Online Diflucan Buy Levaquin Online

If Silver Wheaton Corporation reaches its sales target of 20,000,000 ounces by 2009 and silver prices hit $20, what will the shares be worth?

This company is planning to sell 15 million ounces of silver this year at the prevailing spot price having bought it for $3.90 an ounce. If we use the current silver price of $12.0 then they are earning $8.0 per ounce multiplied by 15 million, which equals $120,000,000. The current Market capitalisation is around $2 billion, which equates to around 20 times current earnings.

Now this is ambitious but not outside the realms of possibility. Suppose Silver Wheaton achieves its target sales of 20.0 million ounces by 2009 and the silver price hits $20.0? Wow! Impossible some will shout! Not to us though, we think it is more than just possible.

Earning will be $16.0 per ounce multiplied by 20 million ounces, which equals $320 million. If the earnings multiple remains at about 20 then the Market Capitalisation would be around $6.4 billion. Divide this Market capitalisation by the number of outstanding shares, say 220 million then we have a share price of $32.0.

Now consider Silver Wheaton’s vast overheads, in 2005 they had a massive staff of 4 people and I understand that has increased to about 6 people. Overheads, what overheads?

Now consider their tax liability. They are registered in the Cayman Islands, so no tax revenue for Uncle Sam.

This is still a buy for us, SLW on the NYSE, currently trading at $9.71.
See previous report and update on SLW, just click on the link.

14 August 2006


Silver Prices Newsletter:


Related Articles
Silver Wheaton Corp: A 25% increase to 362 million ounces
Silver Wheaton Corporation: Update 05 August 2006
Silver Wheaton Corporation: BUY!
Silver Wheaton Corporation Call Options Update
Silver Wheaton: Approaching Buying Opportunity

  


No Comments »

No comments yet.

Leave a comment


Whats New
Endeavour Silver Corporation Identifies Three New Veins
Silver and Gold Fall from Favor
Silver Wheaton Corporation Call Options Closed with a Profit of 79.46%
Silver Wheaton Corporation Call Options Up 40.35% Today
Silver Wheaton Corporation Call Options Bounce 80.95% in One Day
The 10 Biggest Mistakes Investors Must Avoid in the Coming Decade
Silver Wheaton Call Options Move Up Today

  

Search Silver-Prices.net
 
International Speculator
Silver Price Banner: [Most Recent Quotes from www.kitco.com]
 Silver Updates by Mail
 
 
 Sponsored Information

 
 Latest News On:
 Our RSS Feed
 
 Price of Silver
 
 Categories
 
 New Comments
 
 

About Us | Disclaimer
© 2010 silver-prices.net