Silver Wheaton (TSE:SLW)

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Silver Wheaton (TSE:SLW)

Postby Pixel8r » Wed Mar 31, 2010 4:02 pm

Thought I'd start a thread on another of my silver favourites. I don't usually like companies with such a high market cap, but SLW is a special case. They have built themselves to have massive leverage to the silver price as they have a guaranteed purchase price of $3.90 per ounce. This gives them limited exposure to inflationary risks but maximum leverage to silver price increases. Their business model is also very interesting in the current times where miners are finding funding hard to raise. A great leveraged play on the price of silver by a well setup unhedged company.

Here's a link to their website and their company profile from their homepage - http://silverwheaton.com/

Established in 2004, Silver Wheaton has quickly positioned itself as the largest silver streaming company in the world. The company has entered into thirteen silver purchase agreements and two precious metals agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions.

Forecast 2010 production, based upon the company's current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. No ongoing capital expenditures are required to generate this growth and Silver Wheaton does not sell forward its silver sales.

Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina. The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.


I think the share price of SLW will double over the next year. I treat this one as a savings account and put any spare cash in whenever it becomes available.

Here's a link to their latest investors presentation which contains lots of info on the company and silver in general - 2.85MB PDF

Here's their chart for the last couple of years and a link to an updated version;

Image


Here is a link to the stockhouse board on Silver Wheaton;

http://www.stockhouse.com/Bullboards/SymbolList.aspx?s=SLW&t=LIST
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Tue May 11, 2010 4:02 pm

This one just keeps plodding higher in a very steady way. The Silver breakout to new highs will increase SLW's earnings, as they have a fixed cost for the silver production of around $3.9. So they offer a good leverage to movements in the silver price.

I keep buying more shares in this company whenever I have cash available and the RSI is below 40. I am holding these within my UK ISA via selftrade.

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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Wed May 12, 2010 10:44 pm

Silver Wheaton First Quarter Net Earnings Almost Triple, Compared To 2009

FIRST QUARTER HIGHLIGHTS
-------------------------------------------------------------------------

- Net earnings almost tripled to US$44.6 million (US$0.13 per share), compared to US$15.1 million (US$0.06 per share) in 2009.

- Operating cash flows increased 149% to US$57.6 million (US$0.17 per share)(1), compared with US$23.1 million (US$0.09 per share)(1) in 2009.

- Attributable silver equivalent production of 5.5 million ounces (4.9 million ounces of silver and 7,700 ounces of gold), representing an increase of 68% over the comparable period in 2009.

- Silver equivalent sales of 5.0 million ounces (4.4 million ounces of silver and 8,600 ounces of gold), representing an increase of 58% over the comparable period in 2009.

- Total cash costs(1) of US$4.04 per silver equivalent ounce compared to US$3.97 per ounce in 2009.

- Cash operating margin(1) increased by 66% to US$13.16 per silver equivalent ounce, compared to US$7.93 per ounce in 2009.

- Recorded first silver sales attributable to the sulphide process line at Goldcorp's Penasquito mine in Mexico. Silver production at Penasquito met expectations during the quarter and is anticipated to ramp up as the year progresses. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life.

- Acquired an amount equal to 100% of the life of mine silver and gold production from Augusta Resource Corporation's ("Augusta") Rosemont Copper project ("Rosemont") in the United States. Once production commences, Rosemont is forecast to increase Silver Wheaton's long-term annual production by approximately 2.4 million ounces of silver, plus any gold production, estimated by Augusta to average up to 15,000 ounces of gold per annum.

- Converted the debenture with Pan American Silver Corp. ("Pan American") into an agreement to acquire an amount equal to 12.5% of the life of mine silver production from the Loma de La Plata zone of the Navidad project located in Argentina. Navidad is forecast to increase Silver Wheaton's long-term annual silver production by approximately 2 million ounces.

- Announced that attributable proven and probable reserves more than doubled in 2009, including an increase of 431 million ounces of silver and 220,000 ounces of gold, to a record 875 million silver equivalent ounces. In addition, attributable measured and indicated resources increased by 72%, including an increase of 141 million ounces of silver and 180,000 ounces of gold, to a record 366 million silver equivalent ounces. Attributable inferred resources increased by 4%, including an increase of 12 million ounces of silver and 50,000 ounces of gold, to a record 408 million silver equivalent ounces.
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Re: Silver Wheaton (TSE:SLW)

Postby preciousmetalsnews » Mon Oct 11, 2010 7:06 am

Buy, Sell or Hold: Silver Wheaton Corp. (NYSE: SLW) Is Poised to Profit from the White Metal’s Rally

Have you ever wanted to invest in a company that owned the supply of a product at a nice fixed rate of cost, but was able to leverage the upside, but not have to take any risk in actually making the product? How about if it's something inherently dangerous and expensive with bad margins like mining?

In the case of Silver Wheaton Corp. (NYSE: SLW) we have a very interesting investment vehicle, because the company does not have to take additional risks to grow its production numbers. Silver Wheaton owns the rights to silver production from mines that produce it as a bi-product. This allows the company to enjoy a growing supply curve, while protecting its balance sheet.


http://moneymorning.com/2010/10/10/nyse-slw/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+USMoneyMorning+%28Money+Morning%29
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Tue Nov 09, 2010 9:20 am

THIRD QUARTER HIGHLIGHTS
-------------------------------------------------------------------------

    - Net earnings more than doubled to a record US$69.2 million (US$0.20 per share), compared with US$33.6 million (US$0.11 per share) in 2009.

    - Operating cash flows increased 55% to US$70.5 million (US$0.20 per share)(1), compared with US$45.4 million (US$0.14 per share)(1) in 2009.

    - Record attributable silver equivalent production of 5.9 million ounces (5.5 million ounces of silver and 7,000 ounces of gold), representing an increase of 41% over the comparable period in 2009.

    - Silver equivalent sales of 4.7 million ounces (4.3 million ounces of silver and 7,100 ounces of gold), lagging production for the quarter due primarily to the build-up of concentrate inventory as the Penasquito mine ramps up production, as well as timing of concentrate shipments from the Yauliyacu and Campo Morado mines.

    - As at September 30, 2010, approximately 2.2 million payable silver equivalent ounces attributable to the Company have been produced at the various mines and will be recognized in future sales as they are delivered to the Company under the terms of their contracts.

    - Total cash costs(1) of US$4.09 per silver equivalent ounce, compared with US$4.08 per ounce in 2009.

    - Cash operating margin(1) increased 42% compared to 2009, to a record US$15.72 per silver equivalent ounce, while average silver prices over the same period increased by 29%.

    - Goldcorp Inc. announced that its world-class gold-silver-lead-zinc Penasquito mine achieved commercial production during the quarter with peak throughput rates as high as 105,000 tonnes per day. The ramp up to full production capacity of 130,000 tonnes per day is anticipated by early 2011. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life.

    - Barrick Gold Corp.'s world-class gold-silver Pascua-Lama project remains on track to enter production in the first quarter of 2013, with detailed engineering and procurement nearing completion and earthworks underway. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first five years of operation, Silver Wheaton's attributable silver production is expected to average 9 million ounces annually.

    - Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp. In conjunction with the sale, Silver Wheaton amended its silver purchase agreement relating to the mine. The term of the silver purchase agreement, which was set to expire in 2029, has been extended to life of mine. During the first four years following closing of the transaction, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. Beginning in the fifth year after closing, Primero will deliver to the Company a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess. Goldcorp will continue to guarantee the delivery by Primero of all silver produced and owing to the Company until 2029, and a payment of US$0.50 per ounce for any shortfall below 215 million cumulative silver ounces delivered to Silver Wheaton by the end of 2031. Primero has provided Silver Wheaton with a right of first refusal on any metal stream or similar transaction it enters into.
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Fri Mar 04, 2011 8:16 am

This should help the share price. :thumbup:

SILVER WHEATON DECLARES INAUGURAL DIVIDEND

VANCOUVER, March 3 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX: SLW), (NYSE: SLW) is pleased to announce that its Board of Directors has approved an inaugural quarterly cash dividend of US$0.03 per common share (US$0.12 per common share, annually), commencing immediately. The initial dividend of US$0.03 per common share will be paid to holders of record of its common shares as of the close of business on March 21, 2011. The dividend will be distributed on or about March 31, 2011.

"The successful ramp up during 2010 of the first of our cornerstone growth assets, Goldcorp's Penasquito mine in Mexico, marked a major milestone for our company, and resulted in record operating cash flows for the year," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With cash on hand in excess of $428 million at year-end, and a business model that consistently results in amongst the highest cash operating margins in the precious metals industry, it is the ideal time for Silver Wheaton to implement a sustainable long-term dividend policy. This will not only allow our shareholders to participate in one of the strongest growth profiles in the industry, but will also provide a dividend yield, with the potential to increase over time, further positively differentiating us from a silver exchange traded fund."

This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes...
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Fri Mar 11, 2011 4:52 pm

Added a few more shares to my SLW holding today on the downdraft.
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Re: Silver Wheaton (TSE:SLW)

Postby Jeremiah » Wed Mar 16, 2011 5:44 pm

Hmmm, not much of a drop so far compared to some of my other silver miners. I felt I was getting in a little late at $32, and have been hoping to top up nearer to that price. Maybe this is one to buy regularly regardless of price, perhaps use as a piggy-bank to channel profits into. The story seems too good to be true, doesn't it? It seems it will have to take a huge natural disaster or geopolitical event to stop this baby from delivering a comfortable early retirement to those canny enough to have piled in early!
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Wed Mar 16, 2011 6:37 pm

Jeremiah wrote:Hmmm, not much of a drop so far compared to some of my other silver miners. I felt I was getting in a little late at $32, and have been hoping to top up nearer to that price. Maybe this is one to buy regularly regardless of price, perhaps use as a piggy-bank to channel profits into. The story seems too good to be true, doesn't it? It seems it will have to take a huge natural disaster or geopolitical event to stop this baby from delivering a comfortable early retirement to those canny enough to have piled in early!

My first buy was in Dec '08 at around $4.10, I mistakingly sold half when they doubled and have been adding ever since. I even bought some last week at $39.80 ish.

I see SLW as a no brainer now, one to be added to whenever cash is going spare.
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Re: Silver Wheaton (TSE:SLW)

Postby Jeremiah » Thu Mar 17, 2011 3:38 am

I've had a gut feeling this last 6 months or so that to protect my (modest)wealth from fiat debasement, I ought to be roughly 30% in PMs (both physical and mining shares, not so much ETFs or allocated storage) This suggests gold may treble before settling/turning down, roughly in line with the $4000/oz some guy has been touting in an article lately. Presumably this means silver will rise 4-5x, and silver miners possibly 7-8x. With the MD of SLW recently stating his hope of almost doubling production over the next couple of years(though some of that optimism may already be priced in) we may be looking at a potential 10-12 fold increase in SLW from here. I also think the S/G ratio will revert (not without pullbacks)to its historical range of 15:1 or 20:1, or less as silver is running out. Of course, we shouldn't count our chickens etc. but it's certainly worthy of attention. I decided a nice pullback would be good to top up, but otherwise why worry whether to buy in at $30/$35/$40 when it may one day be $300/$350/$400? Of course bread/petrol etc. will also be 5x more costly by then as well!
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Re: Silver Wheaton (TSE:SLW)

Postby Jeremiah » Thu Mar 31, 2011 4:05 pm

Is that a reverse head and shoulders i see before me? (Dec 2010 to end Mar 2011)
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Tue Apr 12, 2011 8:24 pm

Watch on cnbc.com
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Re: Silver Wheaton (TSE:SLW)

Postby fexx » Fri Apr 15, 2011 8:44 am

Pixel8r wrote:I see SLW as a no brainer now, one to be added to whenever cash is going spare.


Given the points mentioned and the way the chart is looking, I'd say you are probably on the mark here.
This given, would there be an advantage in spread betting this rather than buying the stock?

Providing you called the low near enough, Couldn't you use a small amount of cash as a gamble, ie a guaranteed stop £50 below and let it just run?
Result: £50 maximum loss, a "leverage on leverage" AG to the upside!! - Could be quite profitable!!

I have never done this myself, but looking at these sort of charts (such as XAG/GBP a while back) with stocks that look to be no-brainers, these sort of plays have to be worth a go, surely??
What do you reckon???
Disclaimer - I am not backed by anything.
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Fri Apr 15, 2011 9:12 am

fexx wrote:
Pixel8r wrote:I see SLW as a no brainer now, one to be added to whenever cash is going spare.


Given the points mentioned and the way the chart is looking, I'd say you are probably on the mark here.
This given, would there be an advantage in spread betting this rather than buying the stock?

Providing you called the low near enough, Couldn't you use a small amount of cash as a gamble, ie a guaranteed stop £50 below and let it just run?
Result: £50 maximum loss, a "leverage on leverage" AG to the upside!! - Could be quite profitable!!

I have never done this myself, but looking at these sort of charts (such as XAG/GBP a while back) with stocks that look to be no-brainers, these sort of plays have to be worth a go, surely??
What do you reckon???

I am not of the opinion that would be a good idea. When I say it is a "no brainer" I mean that in a few years it will be worth a lot more than today. There is bound to be volatility and the stock will go down at times, especially if we see a delay in QE3/QE2+.

I just think that buying this stock is a good thing as a buy and hold for the next few years and will lead to increased stock price and larger dividends. Bear in mind that because SLW is such a good company that it is expensive, why I recommend buying when the silver price is in a dip.

I originally bought this in November '08 when it truly was a "no brainer", now I just add to it when I have cash spare and can't see anything better around. I buy this within my ISA as a longterm leveraged play on the silver price.
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Thu Apr 21, 2011 11:23 pm

Silver Wheaton sees new deals within months

Reuters
10:39 AM, E.T. | April 21, 2011
Energy & Resources


Silver Wheaton (SLW-T 40.45 0.67 1.68%) could close new deals within six months as it seeks to become the world's top silver producer, confident that wary miners will seek out its financing model once soaring prices flatten out.

Silver Wheaton pioneered a business model where it provides up-front financing to miners to build projects in exchange for the right to buy the silver by-product at the time of production, something known as stream deals.

The model has worked well for the company, which has grown from 9.7 million ounces of silver equivalent in 2005 to 23.9 million ounces last year, without mining a single ounce. It was one of the top 2010 performers on the Toronto Stock Exchange.

"I see us continuing to strive towards 100 million ounces a year in silver production," Chief Executive Randy Smallwood told Reuters in an interview. "We'll be at about 43 million ounces by 2015 with our current portfolio, so I believe that that's an achievable target."

But to keep growing Silver Wheaton needs to secure new deals—a daunting task as rising metal prices prompt mining companies to shun hedging and stream deals and hold on to their silver.

Smallwood, who helped found the company in 2004 and took over the top job this month, said interest in stream deals has never been higher.

"We're in discussions with quite a few companies right now," he said. "I'm hopeful that we'll close some acquisitions in the next few months, within the next six months or so."

"But I won't commit to it," Smallwood quickly added. "Mainly because the silver prices are so volatile."...
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Fri Jun 03, 2011 6:48 am

Randy Smallwood: The New CEO of Silver Wheaton

The drivers behind silver

Randy Smallwood, President and CEO of Silver Wheaton, talks with Jim Puplava about the drivers behind silver, and why there might be silver shortages, but not for the reasons you may think.


James J Puplava CFP With Randy Smallwood

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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Mon Aug 08, 2011 11:55 am

SECOND QUARTER HIGHLIGHTS

  • Attributable silver equivalent production increased 5% compared with Q2 2010, to 6.2 million ounces (5.9 million ounces of silver and 6,500 ounces of gold).
  • Revenue more than doubled compared with Q2 2010, to a record US$194.8 million, on silver equivalent sales of 5.1 million ounces (4.9 million ounces of silver and 5,700 ounces of gold).
  • Net earnings almost tripled compared with Q2 2010 (on an adjusted basis1), to a record US$148.1 million (US$0.42 per share).
  • Operating cash flows increased 151% compared with Q2 2010, to a record US$168.3 million (US$0.48 per share1).
  • Cash operating margin1 increased 137% compared with Q2 2010, to a record US$34.21 per silver equivalent ounce, demonstrating Silver Wheaton's significant leverage to increasing silver prices.
  • Average cash costs of US$4.141 per silver equivalent ounce.
  • Quarter-end cash balance of US$701.4 million, with a net cash position of US$608.5 million.
  • Randy Smallwood, the President and one of the founders of Silver Wheaton, was appointed Chief Executive Officer, replacing Peter Barnes who resigned effective April 11, 2011. Since 2004, Mr. Smallwood has been instrumental in building Silver Wheaton into the second largest silver company in the world.
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Re: Silver Wheaton (TSE:SLW)

Postby Jeremiah » Wed Sep 21, 2011 4:28 pm

From the Selftrade website:

COLORADO SPRINGS, Colo., Sept 20 (Reuters) - The head of Silver Wheaton Corp SLW.TO SLW.N said he is "embarrassed" by his company's low dividend yield, but plans to conserve cash for long-term growth.

The company issued its first dividend last March, though as of Tuesday its yield sits at 0.3 percent, well below many peers in the mining sector.

"I'm a bit embarrassed about where we are right now," Chief Executive Randy Smallwood told Reuters at the Denver Gold Forum, one of the world's largest gatherings of mining executives.

"We will get to the median of precious metals companies," he said. "We will have growth in our yield."

Silver Wheaton pioneered a business model where it provides up-front financing to miners to build projects in exchange for the right to buy the silver at the time of production, a business model known as silver streaming.

That model has lifted the company's cash pile to roughly $700 million, an amount that is consciously being conserved, Smallwood said.

"We'd rather do accretive transactions to continue growing our company first, which helps make further yield increases that much more sustainable," he said.

The company pays roughly $4 an ounce up front for silver at the time of production from Barrick Gold ABX.TO , Goldcorp

G.TO and other suppliers.

The price of silver XAG= has nearly doubled in the last 12 months and was trading around $40 an ounce on Tuesday.

"You can imagine the cash flow we have right now," Smallwood said. "We're profiting $36 per ounce."

And Smallwood is bullish; he expects silver prices to hit $50 per ounce within six months.

The silver streaming business model has worked well for the company, which has grown from 9.7 million ounces of silver equivalent in 2005 to 23.9 million ounces last year, without mining a single ounce.

That number should hit 25 million or 26 million ounces in 2011 and 43 million ounces in 2012, Smallwood said.

Silver Wheaton prefers to use its $703 million cash pile either to sign new silver supply contracts or to remunerate shareholders.

"My primary objective is to spend that money on new acquisitions," Smallwood said. "While we see so many opportunities in front of us, we're going to try to keep that war chest full."

(Reporting by Ernest Scheyder; editing by Gunna Dickson)

(([email protected]; +1 646-223-6119; Reuters Messaging:[email protected])) Keywords: SILVERWHEATON/
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Wed Nov 09, 2011 12:03 pm

Silver Wheaton revenues and operating cash flows double in the third quarter

VANCOUVER, Nov. 9, 2011 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW)(NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended September 30, 2011.

THIRD QUARTER HIGHLIGHTS

  • Attributable silver equivalent production increased slightly compared with Q3 2010, to 6.1 million ounces (5.9 million ounces of silver and 5,100 ounces of gold).
  • Revenue doubled compared with Q3 2010, to US$185.2 million, on silver equivalent sales of 5.1 million ounces (4.8 million ounces of silver and 6,300 ounces of gold).
  • Net earnings increased 96% compared with Q3 2010 (on an adjusted basis1), to US$135.0 million (US$0.38 per share).
  • Operating cash flows more than doubled compared with Q3 2010, to US$167.2 million (US$0.47 per share1).
  • Cash operating margin1 more than doubled compared with Q3 2010, to US$32.11 per silver equivalent ounce, demonstrating Silver Wheaton's leverage to increasing silver prices.
  • Average cash costs of US$4.121 per silver equivalent ounce.
  • Quarter-end cash balance of US$715.6 million, with a net cash position of US$629.9 million.
  • Third quarterly dividend for 2011 of US$0.03 per common share was paid.

"Another quarter of increased silver equivalent sales, along with strong silver prices, produced solid financial results," said Randy Smallwood, Silver Wheaton's President and Chief Executive Officer. "During the quarter, several of our partners' mines continued their focus on ramping up silver production, including Goldcorp's Peñasquito mine, which had record throughput levels in the month of September. As a result, we remain confident of achieving our 2011 production guidance of between 25 and 26 million silver equivalent ounces."

"The Company's operating cash flows more than doubled, despite sales continuing to lag production, which was primarily the result of concentrate inventory build-up at Glencore's Yauliyacu mine in Peru. However, in 2012, Glencore anticipates a more consistent schedule of concentrate deliveries, which should result in more regular silver deliveries to Silver Wheaton."

"Our Company's ability to consistently deliver amongst the highest cash operating margins in the precious metals industry, a direct result of our model of essentially fixed operating cash costs, continues to result in significant cash flow generation, particularly in the current environment of strong silver prices. Cash flows will be used to continue making accretive silver stream acquisitions and to return capital to our shareholders in the form of sustainable dividend growth. To this end, we are pleased to have recently amended our dividend policy, which now links to operating cash flows, and has resulted in a tripling of our current dividend."

"In recent months, the resurgence in global economic turmoil has resulted in tighter debt and equity markets, negatively impacting advanced exploration and development stage mining companies' access to project financing. Silver Wheaton is in a unique position to assist these companies with their growth goals by providing a value-enhancing source of capital through silver stream transactions. As such, our Corporate Development team continues to aggressively pursue high-quality and low-risk silver stream opportunities from around the globe, in order to further expand our sector leading production growth profile."
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Silver Wheaton (TSE:SLW)

Postby Pixel8r » Wed Nov 09, 2011 12:17 pm

I am very glad I bought more of these recently. :clap:

Silver Wheaton Announces Dividend Triples In Current Quarter Based On New Dividend Policy Linked To Operating Cash Flows

VANCOUVER, Nov. 9, 2011 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW)(NYSE:SLW) is pleased to announce that its Board of Directors has adopted a new dividend policy that links quarterly dividend payments to operating cash flows in the prior quarter. Commencing immediately, the quarterly dividend per common share will be equal to 20% of the cash generated by operating activities in the previous quarter divided by the Company's outstanding common shares at the time the dividend is approved, all rounded to the nearest cent.

Silver Wheaton's revenues are primarily derived from the sale of silver, with its operating cash costs essentially fixed at approximately US$4 for every ounce of silver sold. This allows for greater predictability in cash generated from operating activities relative to traditional mining companies.

Based on the new policy, the Board of Directors has declared its fourth quarterly cash dividend for 2011 of US$0.09 per common share. The quarterly dividend will be paid to holders of record of its common shares as of the close of business on November 23, 2011, and will be distributed on or about December 5, 2011.

"We are pleased to establish a unique and sustainable dividend policy that allows our shareholders to further benefit from increasing silver prices, as well as Silver Wheaton's sector leading production growth profile," said Randy Smallwood, Silver Wheaton's President and Chief Executive Officer. "Our new policy allows us to return a meaningful portion of our cash flows to our shareholders, with the current quarterly dividend tripling from previous levels. Importantly, it also provides us with the cash flows required to continue creating long-term shareholder value by acquiring further high-quality and accretive silver streams."

The declaration and payment of dividends remains at the discretion of the Board and will depend on the Company's cash requirements, future prospects and other factors deemed relevant by the Board of Directors. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.
"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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