Silver Wheaton Poised to Complete 'Astute' Acquisition / Seeking Alpha
posted on
May 23, 2009 01:22PM
Largest Pure Silver Streaming Company
http://seekingalpha.com/article/1387...
Silver Wheaton Poised to Complete 'Astute' Acquisition
After a successful shareholders vote on Tuesday, Silver Wheaton Corp. (SLW) is poised to complete the C$243-million acquisition of smaller rival Silverstone Resources Corp. Analysts are pleased to see it.
UBS Securities analyst Dan Rollins pointed out that with C$400-million available under Silver Wheaton's revolving debt facility, the company has the financial capability to make more silver stream acquisitions within the next 12 months. He also suggested that Silver Wheaton will sell Silverstone's exploration assets, because the company is not seen as an operator.
David Haughton of BMO Capital Markets wrote that Silver Wheaton's main catalyst for growth is still Goldcorp Inc.'s (GG) Penasquito mine, but the Silverstone acquisition appears accretive to "all" valuation metrics, and has the potential to provide additional royalty revenue in the future through expansions and development of new products.
All three analysts call Silver Wheaton a "buy" (or "outperform") and have price targets between $11.00 and $12.00 a share.