Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Wheaton River shares boosted by BHP mine deal ***

Wednesday March 26, 11:19 am ET

(Figures U.S. dollars, unless noted)
TORONTO, March 26 (Reuters) - Shares of Wheaton River Minerals Ltd. (Toronto:WRM.TO - News) pushed higher in strong volume on Wednesday, after the Canadian miner upped its stake in Argentina's Alumbrera copper and gold mine.

Wheaton stock was up 5 Canadian cents at C$1.34 at mid-morning on the Toronto Stock Exchange (News - Websites). Volume was more than 5.6 million shares, making it the most actively traded issue on the market.

Vancouver-based Wheaton said on Thursday it had purchased an additional 25 percent stake in Alumbrera from Australia's BHP Billiton (Australia:BHP.AX - News), the world's largest diversified miner, for $180 million, with $50 million deferred until May 2005.

Wheaton said it expects to sell half the 25 percent stake to a third party. It said it will finance its 12.5 percent acquisition with debt and does not expect to issue additional equity.

Earlier this year, Wheaton bought a 25 percent interest in the mine from Rio Tinto Ltd. (Australia:RIO.AX - News).

In a morning research note, Sprott Securities analyst David Stein said the acquisition should ultimately push shares higher, particularly if gold prices improve.

"We have tested our valuation model amidst a number of possible outcomes, and we are confident that this acquisition adds value," the analyst wrote.

Stein has a "top pick" rating and a 12-month target of C$2.60 on the stock, implying a rise of 93 percent over the year.

Meanwhile, Research Capital Corp. agreed the deal will increase Wheaton River's exposure to the price of gold, while pointing out that Alumbrera will represent 58 percent of the company's underlying operating value.

As a result, analyst Barry Allan raised his full-year 2004 earnings estimate to 14 cents from 6 cents per share.

"We view this as an excellent deal for Wheaton River," Allan wrote in a morning research report.

He maintained a "buy" rating and a stock price target of C$2.00.

($1=$1.47 Canadian)

http://biz.yahoo.com/rf/030326/minerals_wheatonriver_stock_1.html

Regards,
Dan