Wheaton Precious Metals Corp (WPM)

[trdwatch]

I was watching physical more then ETF's and miners so I didn't catch those two mini flash crashes yesterday in SLW. But Why anyone in there right mind is long the $USD has me scratching my head. It's a total set up in my opinion. Demand for silver and gold is high right now and this is a blatant assault by the big banks in concert with their govts to gain ownership of mines. There is no doubt the Pascua Lama mine was discussed but it's nothing new to SLW investors. If anything I think the status would help the demand side of the price of silver.

[MWM]

Really acting Poorly today!

[rayank]

Yes, we shall see. I am in for now.

[MWM]

Failing knifes are never so easy to catch...

Silver is headed under $20 imo...

[rayank]

Thanks, long term should be good from here IMO.

[MWM]

You might be just fine, I just have a feeling there is a little more left to go to the downside, we'll see, nice move today that is for sure!

[rayank]

I just got in today at $22.07.

[MWM]

I posted all the dd. I still think Silver and Gold have one more big move down but a lot of the miners have found support. So for now it's wait and see...

[Rentier]

So what's your opinion today? It's oversold from your news? Since silver is mostly just going sideways and SLW is up, besides the two mini flash crashes today where it dropped over $1 in 1 minute and then back up.

Also, how much silver did SLW lose what percent of that mine would have been theirs in 2 years time?

[trdwatch]

There is definitely a war on mining by the powers that be. And not just gold and silver. The battle rages on. I just don't see the POS going much lower without a mass of buying to hold it up from here. But it looks like the bears are pushing once or twice a day.

[IIIverson]

Close to it... maybe $20's. It could take a while to get bullish on silver and gold. Not because of SLW (the company), but because of GOLD and the global economy.

[trdwatch]

IIIverson, Buy zone right here for long term hold.

[MWM]

If you don't think losing all that Silver would affect SLW's PPS then I can't help you. No point in arguing. The stock dropped period. Usually SLW is one of the more stronger stocks in this sector, so if you think that normally SLW would have been down 10+% at the top of the decliners then that is your opinion buddy.

My opinion differs...

GL!

[Rentier]

Really then why didn't it tank more today? Why is it still virtually locked to silver's price tracking? I stated Friday also for all those other miner stocks look at their charts they all dropped Friday. SLW is only one of two smaller partners in the mine, Barrick is the primary. There was no call there, it was an already on the wire news article if you had made a call you'd have had it out before the news broke (rolling eyes). 20% by 2015, it's 2013 nobody would have even priced that into the stock that far out...sigh. Besides the fact that the Chile mine project has already had numerous other problems and delays...sigh.

[MWM]

I said friday, again you are not paying attention! Why was SLW down almost 10% on friday? It's not a non event no matter how much u want to pretend it is...

That mine was expected to be around 20% of their revenue by 2015, even if they get all their money back, how is that revenue going to be replaced?

I wasn't here on friday, so that is why I posted Monday...

Regardless it was a great call anyway u look at it buddy!

[Rentier]

No I do, the difference I consider it a non-event. Since, the mine isn't online yet and generating any ROI.

"Accelerated move down" compared to who?

Yesterday:

PAAS down 11.38%
EXK down 10.95%
AG down 12.72%
SSRI down 13.57%


SLW down 9.67% Tell me again how that is accelerated compared to the above? The drops in the 4 others listed is comparable for Friday's move down too. It seems you are the one that doesn't pay very good attention to the broader mining market...

[MWM]

You don't pay very good attention...

ABX RGLD and SLW all have seen an accelerated move down on the back of the Chile situation...

SLW usually tracks Silver almost perfectly, there is no way SLW would have been down 10% friday when Silver was only down 4%...

Today not a big difference but friday's move down was obvious...

[JohnCM]

Buy SLW and SAND

What happens when buying or selling are not based on fundamentals but based on greed/fear and/or margin calls?

The selloff/buying will be more aggressive than the normal course of events. GOLD will find fair value.

I thought we were closing at the lows, but we might catch an upturn in spot GOLD before the stock market opens tomorrow. That would save us another $50.00 on the downside GOLD.

Live Spot Gold
SPOT MARKET IS OPEN
closes in 23 hrs. 12 mins.Apr 15, 2013 18:04 NY Time
Bid/Ask 1360.40 - 1361.40
Low/High 1334.90 - 1459.90
Change +7.80 +0.58%
30daychg -231.70 -14.55%
1yearchg -297.30 -17.93%

IMO

[Rentier]

Not sure I follow you there, SLW got hammered down today just like other miners did because gold and silver tanked.

[MWM]

SLW nice call...

[Tommy]

$SLW - Silver Wheaton: What Is The Impact Of The Latest Delay At Pascua Lama?

http://seekingalpha.com/article/1336351-silver-wheaton-what-is-the-impact-of-the-latest-delay-at-pascua-lama?source=email_rt_article_readmore

... "Silver Wheaton continues to receive the silver from the Lagunas Norte, Pierina and Veladero mines until Barrick brings production at Pasua Lama to 75% of the design capacity. As long as Barrick manages to reach this target before the end of 2015, everything will go according to the existing playbook. Silver Wheaton's growth might be delayed, but the capital cost of this delay should be more than offset by the extra silver from the three mines payable during the time of the delay. Unfortunate, but not a major drama would be our verdict in this case.

The game changes if Barrick cannot bring Pascua Lama online by the end of 2015. Such an event would more than likely spell major trouble for Barrick, which has pegged much credibility and future economic success on bringing Pascua Lama to production. In this case, a lot will depend on whether or not there is still a realistic chance of bringing Pascua Lama into production within a reasonable time. If there is, then we would expect a deal to be cut between Silver Wheaton and Barrick. Even more unfortunate, but probably still no major drama, in our opinion.

The worst outcome for all parties (except maybe environmental activists) would be for December 2015 to roll around and there not being a realistic chance of Pascua Lama going into production in the foreseeable future. Whether or not Barrick would still be able to pay back the upfront cash deposit in such an event is anyone's guess. And even if it is able to pay Silver Wheaton out at this point in time and a decision is made to proceed along these lines, then this would be a decidedly negative outcome for Silver Wheaton. Having had significant funds tied up without realizing the associated growth potential would most likely do some visible damage to the share price. It is probably fair to say that such a course of events would constitute a major drama for Silver Wheaton.

Present development may have the potential to significantly delay the project and put the 2015 deadline into question. In fact, first analyst opinions have already been published putting first production assumptions at 2016. Keeping a close eye on proceedings in Chile is highly advised for Silver Wheaton investors during the coming months." ...

[MWM]

Silver Purchase Agreement

On September 8, 2009, Silver Wheaton entered into a silver purchase agreement with Barrick to acquire 25% of the life of mine silver production from Barrick’s Pascua-Lama project, as well as 100% of the silver production from their Lagunas Norte, Pierina and Veladero mines until the end of 2013. Silver Wheaton will make a total upfront cash payment of US$625 million to Barrick, of which US$487.5 million has been paid to date. The remaining US$137.5 million is due on the third anniversary of the transaction. Silver Wheaton will also make ongoing production payments of the lesser of US$3.90 (subject to an annual inflationary adjustment starting three years after achieving project completion at Pascua-Lama) and the prevailing market price, for each ounce of silver delivered under the agreement. Silver Wheaton will not share in any ongoing capital or exploration expenditures at the various mines.

Barrick has provided Silver Wheaton with a completion guarantee, requiring them to complete Pascua-Lama to at least 75% of design capacity by December 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to the silver production from the Lagunas Norte, Pierina and Veladero mines to the extent of any production shortfall at Pascua-Lama, until Barrick satisfies the completion guarantee. If Barrick fails to satisfy the requirements of the completion guarantee, the agreement may be terminated by Silver Wheaton. In such an event, Silver Wheaton would be entitled to the return of the upfront cash consideration of US$625 million less a credit for silver delivered up to the date of that event.

[MWM]

SLW was forecasting 9 million ozs of Silver a year from the Pascua-Lama project from ABX that is now Halted...

Sounds like a lot of pain coming if that project does not get back on track!

From SLW's Website...

pascUa-lama, chile/argentina
In September 2009, Silver Wheaton entered into
an agreement to purchase 25% of the life of mine
silver production from Barrick Gold’s Pascua-Lama
project, as well as 100% of the silver production
from their Lagunas Norte, Pierina and Veladero
mines until the end of 2013. Once in production,
which is forecast to commence in the second half
of 2014, Pascua-Lama is anticipated to be one
of the largest and lowest-cost gold mines in the
world, with a mine life in excess of 25 years. Silver
Wheaton is forecast to receive approximately nine
million ounces of silver per annum, in the mine’s
first five years of production.2

Barrick Halting Pascua-Lama Project in Chile
By Zacks Equity Research | Zacks – 4 hours ago

Barrick Gold Corporation (ABX) has announced that it is halting construction work at the Pascua-Lama mine in Chile after a Chilean court issued a preliminary injunction citing environmental concerns.

Barrick’s Pascua-Lama mine overlaps the border of Chile and Argentina and the court ruled in favor of indigenous communities who complained that the project threatens their water supply.

Construction activities in Argentina, where the majority of Pascua-Lama's critical infrastructure is located, will not be affected. Barrick also said that it is currently working to address the environmental and other regulatory issues as required by the Chilean authorities.

Barrick’s shares fell roughly 8.4% to close at $24.46 yesterday.

Barrick, which is one of the prominent gold mining companies along with Newmont Mining Corporation (NEM), AngloGold Ashanti Limited (AU) and Kinross Gold Corporation (KGC), released its fourth quarter 2012 results in Feb 2012. Barrick’s adjusted earnings (excluding one-time items) fell to $1.11 per share in the fourth quarter from $1.17 per share in the year-ago quarter, but exceeded the Zacks Consensus Estimate of $1.09.

On a reported basis, Barrick slipped to a loss of $3.06 billion or $3.06 per share compared with profit of $0.96 billion or 96 cents per share in the year-ago quarter. The bottom line was hit by tax impairment charges of $4.2 billion, mainly related to the company’s copper business.

Barrick’s revenues jumped 11.4% year over year to $4,189 million in the reported quarter and exceeded the Zacks Consensus Estimate of $4,044 million. Average realized price of gold increased 3% year over year to $1,714 per ounce. C1 cash cost of copper increased 5.6% year over year to $2.07 per pound.

Barrick expects to produce 7–7.4 million ounces of gold in 2013 at total cash costs of $610-$660 per ounce. Copper production in 2013 is expected to increase to 480-540 million pounds, primarily reflecting improved production from Lumwana. Total C1 cash costs are expected to be in the range of $2.10-$2.30 per pound.

[trdwatch]

Monday morning QB here but once again, $28.00's are looking to be a good buy zone. And I'm tapped out till May. Dang!

[Tibby]

http://seekingalpha.com/article/1326621-the-case-for-shorting-barrick-gold?source=email_rt_article_title

no silver for SLW at Pascua Lama????????????????????????

movie at 11:00

[IIIverson]

SLW is breaking $30 support today...with volume. I would not be surprised to see it trail down to $25 in time.

If SLW were to dip down to $26 - $25 range, III think it would be a good long term buying opportunity. Long term, this is just a good opportunity to add to a great great silver company ($SLW); one of my favorites forever.

Of course anything can happen with PMs in the blink of an eye. However, these charts do not look promising for a rally in the short term. GLD looks the same.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=77713666





IIIIIIIIIIVERSON

[trdwatch]

I'm thinking the fed is going to try and keep the S&P and $ USD up till next election even though there is tremendous pressure to correct right now. & I think N.K. is all mouth.

Looks like $silver is about to bottom this week.

JMO.

[investora2z]

The business model of SLW helps the company keep the costs and risks relatively low. The forecast for 2013 is for production of approximately 33.5 million silver equivalent ounces (including 145 thousand ounces of gold). This figure is expected to increase significantly to 53 million ounces and 180K ounces of silver and gold respectively by 2017. The results for the last year were decent with reasonable growth in revenues and net income. The growth was especially robust for the last quarter of 2012. The stock has, however, been on a downtrend since many months now. The current price of $31 is a significant 25% decline from the 52 week high made on 1st November 2012. The stock is trading way below the 200 DMA of $36.12 and slightly below the 50 DMA of $32.53. Recently, it has shown some strength with $ 30 acting as a support level. The volumes have also been supportive. However, the upward move is still not very convincing. A few more weeks of consolidation, and a move with even more volumes would signal some sort of reversal. The very long term trend (since 2004 when the company was formed) is up, and it has multiplied ten times from the $3 levels in 2004. In fact, in 2009 also, it had hit $3 after a rise to $19 in March 2008. Thus investors who kept the faith during that fall made good money. This is usually the story of the mining / streaming companies where the gestation period is long but the returns make up for that after the production starts. For this reason, even big companies eye exploration stage companies for stake e.g CDE buying stake in Pershing Gold (PGLC) which is about to start production in 2014. The long term story of SLW is obviously dependent on prices of silver and gold.

[Tommy]

$SLW - Silver Wheaton: Unique Silver Miner Appears Cheap

http://seekingalpha.com/article/1304101-silver-wheaton-unique-silver-miner-appears-cheap?source=email_rt_article_readmore

Mining stocks have been ugly across the board for quite some time. Iron ore prices have been declining and copper is also showing declines recently which is disturbing given the market continues to climb (Who is wrong? Bulls or Dr. Copper?). Worse hit of all have been the gold and silver miners who have had miserable performance for the most part over the last year and a half. One large unique silver miner, Silver Wheaton (SLW), does not seem to be getting the right amount of positive attention from investors given some recent positive catalysts. Growth investors should consider it for accumulation as the shares look 50% undervalued according to analysts.

Recent positives for SLW:

It recently announced quarterly earnings of 50 cents a share, 9 cents above estimates. The miner raised silver production by 22% Y/Y and revenue is up 50% from same quarter in 2012.

Silver production was up 80% Q/Q as production increased significantly at several of its mines. The company plans to double production from FY2012 to FY2017.

In addition to the some 27mm ounces of silver produced in FY2012, the company also produced 50,000 ounces of gold in FY2012 which should increase substantially going forward given a recent $1.9B acquisition of some gold streams from Vale.

The company grew reserves over 35% in FY2012.

Silver Wheaton Corp is a mining company that operates as a silver streaming company worldwide. The company has 14 long-term silver purchase agreements and 2 long-term precious metal purchase agreements whereby it acquires silver and gold production from the counterparties.

Four additional reasons SLW has significant upside from $31 a share:

The 11 analysts that cover the shares have a median price target of $48.50 a share on SLW. This is more than 50% above the current stock price.

Analysts expect another impressive 30% hike in revenues in FY2013. The stock sells for a minuscule five year projected PEG (.22).

The stock sells in the bottom third of its five year valuation range based on P/E, P/S and P/B.

The company has grown revenues at better than a 35% CAGR over the last five years. Earnings have grown better than 100% CAGR over that time frame. This consistent growth stock can now be had for just 13.5x 2014's projected earnings.

[IIIverson]

I think it is just going to take time.

I think as long as it can stay sideways, it will eventually be able to rally back to $40 and beyond. GLD is the same. The global economy still has its issues that need to be worked out (in time).

One thing that might trigger another PM rally would be more war (maybe with north korea).

I am in no rush to buy gold or silver these days. I am impressed that the market keeps rallying... when will it top out?

[trdwatch]

Thank you. I'm on the sidelines and agree the company fundamentals are quite good. It seems the bears have been able to hold down the POS in this sideways channel. What's it gonna take for the bulls to move the bears out of the way?

[canucklehead80]

Auguries - March 16, 2013
Too Big To Whale
Kevin Michael Grace

Gold was up (at press time) $17.30 (+1.1%) for the week to $1,592.60, and silver was down $0.45 (-1.6%) to $28.51. Reuters reported March 15, “Gold hovered near $1,590 an ounce on Friday as [insert piffle about US economic “recovery” here—Editor] makes safe-haven assets like the precious metal less attractive.”

Clearly distressed by gold’s resilience, Reuters asked Li Ning of CIFCO Futures in Shanghai for an explanation. He replied, “It is a global trend that the value of paper money is diminishing, which attracts investors to gold, a hard asset.”

And now, an intermission. Commentary will resume shortly. In the interim, readers are invited to meditate upon the following quotations.

Read the rest of this article about gold prices here: http://resourceswire.com/2013/03/auguries-24/

[IIIverson]

yo TRD, just FYI from III

SLW is at a decision point here technically. Here is a clear view of how important the $32 price level is (currently resistance)...

IMO, if $32 is not going to hold up, SLW is going to continue to fall. Today, the 50dma and 200dma are converging together (in a bearish form). However, the fundamentals of SLW could be enough to hold this stock up. Just wanted to point these things out to you all! Best of luck...





IIIIVERSON!!!!!!!!!

[flemsnopes]

A staff writer at Benzinga, Paul Quintaro, apparently reported incorrect figures from the fourth quarter report this morning. I hope no one acted on his article before checking out the facts.

http://www.benzinga.com/news/earnings/13/03/3438966/silver-wheaton-corp-reports-q4-eps-of-0-05-vs-0-48-est-revenue-of-287-20

[flemsnopes]

Record net earnings of $177.7 million ($0.50 per share) compared to $144.7 million ($0.41 per share) in Q4 2011, representing a 23% increase.
http://silverwheaton.com/News1/PressReleases/PressReleaseDetails/2013/Silver-Wheaton-reports-record-2012-operating-and-financial-results/default.aspx

[flemsnopes]

Silver Wheaton Corp. : Silver Wheaton declares first quarterly dividend payment for 2013
US$0.14 per common share
http://www.silverwheaton.com/News1/PressReleases/PressReleaseDetails/2013/Silver-Wheaton-declares-first-quarterly-dividend-payment-for-2013/default.aspx

[flemsnopes]

Revenues
Revenue was $287.2 million in the fourth quarter of 2012, on silver equivalent sales of 9.1 million ounces (7.3 million ounces of silver and 33,000 ounces of gold). This represents a 50% increase from the $191.9 million of revenue generated in the fourth quarter of 2011, due primarily to a comparable increase in the number of ounces sold with relatively unchanged gold and silver prices.
Revenue was $849.6 million for the year ended December 31, 2012, on silver equivalent sales of 27.3 million ounces (24.8 million ounces of silver and 46,100 ounces of gold). This represents a 16% increase from the $730.0 million in revenue generated for the year ended December 31, 2011, due primarily to a 30% increase in the number of ounces sold and a 6% increase in the average realized gold price, which were partially offset by a 10% decrease in the average realized selling price of silver.

[nwsailor]

Silver Wheaton reports record 2012 operating and financial results



http://finance.yahoo.com/news/silver-wheaton-reports-record-2012-224900860.html

[Kev2128]

Up pretty good today!

[Kev2128]

Earnings coming out this thursday! Hoping for good results!

[Tommy]

$SLW - PDAC 2013 Video - We Expect to be at 53 Million Ounces per Year by 2017

[Dutchlion]

Yeah it's possible...
I bet we get back into the $45s this year and work up from there :D
Just gotta grind it out guys
Add on the dips

[Tibby]

http://sgtreport.com:80/2013/03/exclusive-david-vs-goliath-shocking-claims-against-barrick-gold/


Nothing else needs to be said!

[cadillac107]

Whatever you say, but I'm sure you realize, of course, that by then, because of inflation, GM will be a thousand per share, Kmart $ 5,000 per share. and BP $ 50,000 per share. Just kidding.

[Tommy]

$SLW - Silver Wheaton: Is $65 A Share By 2023 Really Possible?

http://seekingalpha.com/article/1265141-silver-wheaton-is-65-a-share-by-2023-really-possible?source=email_rt_article_readmore

... "The streaming deal with VALE is attractive to SLW due to the long life of the streaming contracts, and because the deal is for gold; which will help diversify SLW away from silver. However, what makes the deal ground breaking is the $650 M in warrants, which will likely provoke VALE into additional deals with SLW over the next 10 years, in which to ensure the profitability of these pieces of paper. I like SLW's choice of using these warrants instead of sacrificing other aspects of the agreement, as they will prove more beneficial to SLW than meets the eye, despite possible dilution if the warrants are exercised.

I expect SLW to gain additional streaming contracts in the future with VALE, the world's largest mining company. If Silver Wheaton can gain additional streams from Vale between now and 2023, $65 a share is very much on the table." ...

[Toofuzzy]

And i just added 11% to my holdings of SLW on monday @ $30.41

Toofuzzy

[Tibby]

Van Sun says Canaco ruling could affect Silver Wheaton

2013-03-11 09:31 ET - In the News

See In the News (C-CAN) Canaco Resources Inc

The Vancouver Sun's David Baines wonders how a company can argue that its drill results are "spectacular," yet at the same time not material. That is the predicament that four directors of Canaco Resources find themselves in. B.C. Securities Commission enforcement staff have accused Canaco chief executive officer and director Andrew Lee Smith and three co-directors, Randy Smallwood, David Parsons and Brian Lock, of granting themselves options before releasing drill results that could reasonably have been expected to boost the stock price. Enforcement staff have also alleged that, after issuing themselves options, the four directors staggered the release of those results, from the Magambazi gold discovery in Tanzania, rather than releasing them all at once, to maximize their impact. An 11-day hearing was held in January and closing arguments were delivered last week. For the respondents, it is a high-stakes case. If they lose, they could be suspended from the B.C. securities market, which would have serious consequences for their careers. All are deeply involved in the public market. Mr. Smallwood, for example, is president, CEO and director of Silver Wheaton, one of the world's largest silver companies.

[dawsons creek]

Good interview. Thanks for sharing

[Shermadog]

Link to a pretty good interview with the CEO of Silver Wheaton:

http://www.bloomberg.com/video/silver-wheaton-well-positioned-to-add-streams-ceo-AbrzfyFlRfWI6nBYFYR3Sg.html?cmpid=yhoo

[Dutchlion]

He doesn't work for SLW anymore