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Wednesday August 15, 2012
Silver Wheaton: An 'aggressive buy'
by Gordon Pape, editor Internet Wealth Builder Silver Wheaton (SLW) moved higher on the news that the Vancouver-based silver streaming company has entered into a $750 million deal with HudBay Minerals to acquire production from mines in Canada and Peru. SLW said the deal will provide immediate cash flow and estimated annual output from the acquisitions at approximately 4.2 million silver equivalent ounces. The company's total forecast 2012 silver equivalent production increases from 27 million ounces to approximately 28 million ounces, including 42,000 ounces of gold. Long-term, the company expects the output from 777 and Constancia to increase annual silver equivalent production by about 4.9 million ounces. Meanwhile, Silver Wheaton also released second-quarter results after the markets closed. The company said that revenue increased 3% year-over-year to a record $201.4 million (SLW reports in U.S. dollars). However, earnings dropped slightly compared to the same quarter of 2011, coming in at $141.4 million ($0.40 a share) compared to $148.1 million ($0.42 a share) last year. The decline was attributed to a drop in world silver prices. Cash in the bank was $1.1 billion. The company said it had proven and probable silver reserves of 798 million ounces, "nearly twice the reserves of any other silver company in the world". A quarterly dividend of $0.10 a share was declared, payable on Sept. 13 to shareholders of record as of Aug. 30. Action now: The stock remains a Buy for aggressive investors. Learn more about this financial newsletter at Gordon Pape's Internet Wealth Builder. Related articles: 
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