Seeking Alpha

Silver Wheaton Corp. (SLW)

  • Mon, Mar. 2, 5:19 PM
    • Silver Wheaton (NYSE:SLW) -3% AH after agreeing to sell ~$800M of stock to fund its purchase of an additional supply of gold from a Vale's (NYSE:VALE) Salobo mine in Brazil.
    • SLW says it will use the proceeds of the offering to fund its acquisition of an additional 25% gold stream from the mine, which is in addition to the 25% of the mine's gold production SLW acquired in 2013.
    • The deal raises SLW’s production and cash flow profile by adding expected average gold production of 70K oz./year for the first 10 years and 60K oz./year over the first 30 years.
    | Mon, Mar. 2, 5:19 PM | 21 Comments
  • Thu, Jan. 15, 12:35 PM
    • Gold, silver, platinum and palladium are spiking today on Switzerland's surprise move to abandon its currency floor, and shares of the miners are following suit: GDX +6.1%.
    • "Gold is much stronger as the 'safety' of the Swiss Franc vanishes,” commented Dave Lutz of JonesTrading.
    • Peter Boockvar believes that in "a world of currency battles with printing presses that are extraordinarily large... gold will be the last man standing... the gold bear market is over and will go substantially higher from here."
    • Against a backdrop of concerns about global growth, deflation and renewed volatility, gold has been climbing since November as other growth-sensitive commodities such as oil and copper have sold off.
    • Among precious metals miners: BTG +9.5%, GG +8.9%, KGC +8.7%, NEM +8.3%, AUY +8.1%, EGO +7.4%, AGI +7%, ABX +6.2%, NG +5.9%, AUQ +5.6%, FNV +5.5%, RGLD +5.4%, IAG +4.8%, GFI +4.2%, HL +4.2%, SLW +3.1%.
    | Thu, Jan. 15, 12:35 PM | 36 Comments
  • Tue, Jan. 6, 5:45 PM
    • Silver Wheaton's (NYSE:SLW) amended agreement with Barrick Gold (NYSE:ABX) to receive silver from the Pascua-Lama mine benefits both companies, Cowen analysts say, helping ABX conserve cash while allowing SLW to hold optionality at $1,200/oz. gold.
    • For ABX, the new deal provides three additional years to repair its balance sheet, find alternative financing, or wait for a higher gold price, as well as delaying the potential impact of a multimillion dollar payout to SLW; in return, SLW will maintain its optionality in Pascua-Lama, which - if the mine ever achieves production - could provide nearly 60M additional silver oz. over the asset’s first 10 years of mine-life at a cost of ~$4/oz.
    • J.P. Morgan says the deal should have no material impact on ABX’s valuation since Pascua-Lama is seen by the market as an out-of-the-money option to which little value is assigned for now.
    | Tue, Jan. 6, 5:45 PM | Comment!
  • Tue, Jan. 6, 3:33 PM
    | Tue, Jan. 6, 3:33 PM | 43 Comments
  • Mon, Jan. 5, 5:30 PM
    • Early-year pain for stocks has meant gain for gold, as February gold rose 1.5% today to settle at $1,203.90/oz., its best level in three weeks, as concerns about political upheaval in Greece and falling crude prices sparked a flight from risky assets; silver added $0.46 to $16.23.
    • Rising gold prices also lifted shares of miner stocks, sending the Market Vectors Gold Miners ETF (NYSEARCA:GDX) +2.6% while the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) +4.3%.
    • Gainers included IAG +7.4%, HL +3.1%, GOLD +2.4%, KGC +1.7%, NG +8.4%, EGO +4.7%, EXK +4.8%, RGLD +2.4%, CDE +2.6%, FNV +5.3%, SLW +1%, PAAS +3.3%, AG +6.1%, SVM +2.9%.
    • Of course, two days of gains in 2015 hardly make up for two years of declines, and Barron’s Michael Kahn is among observers suggesting that investors wait for clearer signs of progress before making a move.
    | Mon, Jan. 5, 5:30 PM | 9 Comments
  • Mon, Jan. 5, 10:25 AM
    • Silver Wheaton (SLW -0.3%) says it has again extended a silver streaming agreement related to Barrick Gold's (ABX -2%) halted Pascua-Lama project, giving it another 15 months of silver production from three of ABX’s other projects.
    • SLW’s streaming agreement for Pascua-Lama started in 2009, when it agreed to buy 25% of the silver production from the project plus 100% of the production from ABX’s Lagunas Norte, Pierina and Veladero mines; when ABX suspended construction of Pascua-Lama to cut costs amid slumping gold prices, SLW began receiving additional production from the other three ABX mines.
    • SLW now will be entitled to additional production from the three mines until March 2018.
    | Mon, Jan. 5, 10:25 AM | Comment!
  • Dec. 26, 2014, 3:34 PM
    | Dec. 26, 2014, 3:34 PM | 28 Comments
  • Dec. 1, 2014, 4:45 PM
    • Gold futures surged 3.6% to reclaim the $1,200 level for the first time since late October, sparked in part by the downgrade of Japan’s sovereign debt rating and a retreat in the dollar, as well as India easing its import restrictions and some short covering.
    • Gold had sold off initially amid news that Swiss voters rejected a referendum to force the Swiss National Bank to hold 20% of its reserves in gold, slumping to overnight lows near $1,140/oz. before rallying to settle at $1,218.
    • As a result, gold miners were among the strongest sectors, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) finishing 7.7% higher; investors also may have reacted to takeover speculation, as weekend reports said Paramount Gold (NYSEMKT:PZG) was is in talks to be acquired by Coeur Mining (NYSE:CDE).
    • Among the top precious metals miners: ABX +4.3%, AEM +6.9%, AU +9.1%, GG +8.2%, GFI +9.2%, SLW +7.2%, NEM +6.8%, AGI +7.7%, IAG +11.3%, AUY +7.4%, KGC +8.5%, NGD +13.7%, GOLD +6.4%, RGLD +7%.
    | Dec. 1, 2014, 4:45 PM | 14 Comments
  • Nov. 28, 2014, 1:21 PM
    • Already hit hard over the last two years by declining prices, gold and silver miners saw more pain today as commodity stocks in general got hammered thanks to OPEC's decision not to slash crude production.
    • Decliners: ABX -8%. GG -6.1%. AUY -9.8%. KGC -8.2%. GFI -9.9%. SLW -7%. NEM -5.8%. AGI -6.9%. PAAS -9%. AG -15.4%. SSRI -11.6%. CDE -11.4%. HL -8.8%. TAHO -7.8%.
    • Previous: Precious metals slide alongside oil; Swiss vote ahead
    | Nov. 28, 2014, 1:21 PM | 12 Comments
  • Nov. 20, 2014, 3:13 PM
    • Given the uncertain and volatile outlook for the dollar and thus gold prices, J.P. Morgan's commodities team suggests three "conservative" pair trades it expects to be profitable in a neutral or weaker metal price environment.
    • The firm recommends buying Newmont Mining (NYSE:NEM) and selling Barrick Gold (NYSE:ABX), “driven by the idea that the deal where Barrick buys Newmont could be back."
    • Buy Agnico Eagle Mines (NYSE:AEM) and sell New Gold (NYSEMKT:NGD), as JPM sees underground mines as more resilient than open pits, and AEM has fallen more sharply than deserved.
    • Also, JPM likes buying Silver Wheaton (NYSE:SLW) and selling Coeur Mining (NYSE:CDE), as it believes royalty/streaming companies will be more robust in times of weak metals prices than pure-play miners.
    | Nov. 20, 2014, 3:13 PM | 8 Comments
  • Nov. 18, 2014, 3:59 PM
    • Gold prices jumped 1.2% to settle just shy of $1,200/oz. as the dollar eased against major currencies amid tensions in eastern Europe and the Middle East, and some observers are starting to ask if gold mining and production stocks (GDX +4.8%) have finally found a bottom.
    • 24/7's Chris Lange thinks gold giants may have hit their lows on Nov. 5, followed by an impressive recovery since that date with gold fundamentals apparently not changing drastically.
    • Major precious metals miners are strong across the board: ABX +6.5%, AEM +4.4%, AU +6.2%, GG +3.7%, GFI +7.6%, SLW +3.6%, NEM +3.4%, AGI +4.9%, IAG +6.6%, AUY +6.8%, KGC +9.2%, NGD +2.8%, GOLD +1.9%, RGLD +3.7%.
    | Nov. 18, 2014, 3:59 PM | 36 Comments
  • Nov. 12, 2014, 8:44 AM
    • Silver Wheaton (NYSE:SLW) declares $0.06/share quarterly dividend, in line with previous.
    • Forward yield 1.28%
    • Payable Dec. 9; for shareholders of record Nov. 26; ex-div Nov. 21.
    | Nov. 12, 2014, 8:44 AM | 1 Comment
  • Nov. 12, 2014, 6:32 AM
    • Silver Wheaton (NYSE:SLW): Q3 EPS of $0.20 misses by $0.01.
    • Revenue of $165.9M (-0.3% Y/Y) misses by $11.38M.
    • Press Release
    | Nov. 12, 2014, 6:32 AM | 2 Comments
  • Nov. 11, 2014, 5:30 PM
  • Nov. 10, 2014, 6:46 PM
    • With gold trading down as low as $1,131/oz., precious metals miners were hit hard again today, with the Market Vectors Gold Miners ETF (NYSEARCA:GDX) tumbling 6.3% and now 17% lower YTD.
    • Barrick Gold (NYSE:ABX), which fell 6.7% today, was the subject of negative comments from Deutsche Bank, which said, “Management’s target net debt of $7B, conveyed on its 3Q14 earnings conference call, is a tall order without a combination of a higher gold price and asset sales.”
    • Mining companies at least can look forward to the modest consolation prize of weaker local currencies and falling oil prices that will help trim their costs; for example, Agnico Eagle Mines (NYSE:AEM) estimates local currency declines could reduce its U.S. dollar-denominated cash production costs by 5%-6%.
    • Also today: AU -9.8%, GG -4.8%, GFI -4.6%, SLW -4.7%, NEM -5.9%, AGI -6.8%, IAG -6.1%, AUY -6.6%, KGC -6.4%, NGD -7.2%, GOLD -5.1%, RGLD -5.3%.
    | Nov. 10, 2014, 6:46 PM | 14 Comments
  • Oct. 31, 2014, 11:35 AM
    • Precious metals miners are slammed for a third straight session as gold prices plunged to multiyear lows.
    • Japan’s surprise stimulus move is supporting the U.S. dollar and driving the ICE U.S. Dollar index to a four-year high, making gold more expensive to overseas buyers; while the prospect for more monetary stimulus usually increases the lure of gold, the threat of global deflation has withered gold’s appeal as a hedge against rising prices, Barron's Chris Dieterich explains.
    • Nearly everyone in the sector is hitting 52-week lows (again): ABX -4.5%, NEM -7.7%, GG -0.5%, SLW -3.6%, AGI -5.8%, AEM -4.1%, AUY -10.6%, IAG -4.6%, KGC -16.2%, NGD -6.1%, AU -2%, GOLD -1.6%.
    • Also: GFI -7.4%, RGLD -3.8%.
    | Oct. 31, 2014, 11:35 AM | 41 Comments
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Company Description
Silver Wheaton Corp is a mining company engaged in sale of silver and gold.
Industry: Silver
Country: Canada