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speedybure (< 20)

SLW Valuation Model

Recs

5

April 13, 2009 – Comments (1)

This is the best I could do..  Inputs [1] Silver Price 2009 14 Silver price 2010 22 Silver Price 2011 28 Silver Pirce 2012 40 Silver Price 2013 65 Silver Price 2014-2015 35 Silver Price (Terminal) 24 Require Rate of Return 6.00% Total Resources 1,260,000 Current Reserves 609,000 Net Measured/Inferred Reserves 651,000 Reserve Multiple 60.00% Resource Multiple 15.00% Fully Diluted Shares 329000 Net Debt -239000 Tax Rate 10.00% Silver Wheaton Royalty Costs/oz 2009 Production 17400 2009 Purchasing Price $3.95 2010 Prodcution 27400 2010 Purchasing Price $3.98 2011 Production 32400 2011 Purchasing Price $4.01 2012 Production 34186 2012 Purchasing Price $4.07 2013 Production 36200 2013 Purchasing Price $4.14 2014 Production 38430 2014 Purchasing Price $4.20 2015 Production 39890 2015 Purchasing Price $4.30 Terminal Production 41000 Terminal Purchasing Price $4.90 Net Reserves 342,094 
  Year 2009 2010 2011 2012 2013 2014 2015 Royalty Revenue $243,600 $602,800 $907,200 $1,367,440 $2,353,000 $1,345,050 $1,396,150 Purchasing Costs $68,730 $109,052 $129,924 $139,137 $149,868 $161,406 $171,527 Operating Income $174,870 $493,748 $777,276 $1,228,303 $2,203,132 $1,183,644 $1,224,623 Interest Expense -$16,730 -$7,001 $0 $0 $0 $0 $0 Taxes $19,160 $48,675 $77,728 $122,830 $220,313 $118,364 $122,462 NOPAT $138,980 $438,072 $699,548 $1,105,473 $1,982,819 $1,065,280 $1,102,161 Debt Repayment $138,980 $100,020 $0 $0 $0 $0 $0 Capital Reinvestment $0 $0 $0 $0 $0 $0 $0 FCF $0 $338,052 $699,548 $1,105,473 $1,982,819 $1,065,280 $1,102,161 Ke 1.06 1.12 1.19 1.26 1.34 1.42 1.59 Net Present Value 0 $300,865 $587,354 $875,638 $1,481,678 $750,980 $691,509 Debt Remaining -$100,020 0 0 0 0 0 0 NPV OF 2009-2015   $14.25 Terminal Value           29.87 Net Reserve Value      22.97 Net Resourve Value   9.69 VPS of Equity 1 )$44.12 VPS of Equity 2 )$46.91  

1 Comments – Post Your Own

#1) On April 14, 2009 at 8:53 AM, XMFSinchiruna (27.78) wrote:

You've put a lot of work into this... Great Job! I look forward to taking a closer look after I get my taxes in. :P 

P.S. Taxes Suck!

P.S.S. I had never noticed the Cayman Islands thing with SLW until you pointed it out. I also look forward to taking a closer look at the tax implications there. :)

P.S.S.S.  Speedybure rocks!

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