Why We’re Raising Our Price Estimate For Silver Wheaton To $20

We are raising our price estimate for Silver Wheaton to $20.12, primarily as a result of an improvement in the outlook for gold and silver prices. An increase in macroeconomic uncertainty leading up to, and post the UK’s EU referendum, has increased the demand for safe haven assets such as precious metals. This has resulted in a surge in the investment demand for gold and silver and the prices of these metals. The extent of the impact of the referendum on global markets in the long term would depend upon how quickly and amicably the UK and the EU recalibrate their geopolitical and trade relationships. However, uncertainty created as a result of the outcome of the referendum would certainly boost the short term demand for precious metals. Moreover, the Fed is unlikely to raise interest rates in the midst of rising global macroeconomic uncertainty, which would provide additional support to gold and silver prices. We have accordingly modified our realized price and margin forecasts for Silver Wheaton’s various divisions, resulting in our new price estimate for the company.

Have more questions about Silver Wheaton? See the links below.

• What Is Silver Wheaton’s Revenue And EBITDA Breakdown?
• What Is Silver Wheaton’s Fundamental Value Based On Expected 2015 Results?
• How Has Silver Wheaton’s Revenue Composition Changed Over The Last 4 Years?
• By What Percentage Did Silver Wheaton’s Revenue & EBITDA Decline In The Last 4 Years?
• By What Percentage Can Silver Wheaton’s Revenue & EBITDA Grow In The Next 3 Years?
• By What Percentage Will Silver Wheaton’s Silver Equivalent Production Increase If Production Commences At The Pascua-Lama Mine?
• How Will Silver Wheaton’s Revenue Composition Change Over The Next 5 Years?
• How Do Silver Wheaton’s Margins Compare With Those Of Traditional Precious Metal Mining Companies?

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