Eyeing Par for Silver's Brightest Star
May 17, 2010
– Comments (6) |
RELATED TICKERS: SLW
I'm on the record, Fools. SLW will hit $100 per share during this decade, adjusting for any splits that might occur, and of course barring the unforeseen event of a buyout.
http://www.fool.com/investing/international/2010/05/17/eyeing-par-for-silvers-brightest-star.aspx
"With the world's credit markets still highly uncertain and tenuous, I believe that Silver Wheaton's capacity to provide miners with up-front development capital in return for silver streams will remain in high demand. Punctuating that broader expectation, Taseko Mines (AMEX: TGB) reported last week that it sold 22% of future gold production from the Prosperity mine to Franco-Nevada for $350 million. Unlike typical royalty arrangements, this deal notably mimics the Silver Wheaton business model."
"In conclusion, I believe Silver Wheaton's expanding cash flow, combined with sustained demand for mine development capital, will yield further acquisitive growth and greater shareholder value. Based upon current assets and silver prices, and despite the incredible share advance noted above, I still consider the shares fundamentally undervalued. Coupled with my long-held silver target price of $50 per ounce, I expect that sustained acquisition activity and continued organic growth will propel Silver Wheaton shares into triple-digit territory (adjusting for any splits, of course) by the time this precious-metals bull market reaches its zenith."
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