From todays Midas:

Bill,
Some Silver Wheaton fodder for MIDAS tonight

When I said SLW would be producing 20-30 million Ag ounces by 2013, I was wrong. Per the commentary below, that number is closer to 40 million ounces with an average cost of $3.90/oz and among the lowest overhead costs of any company around.

Silver Wheaton is the largest silver streaming company in the world. Forecast 2009 production is 16 million ounces of silver and 17,000 ounces of gold, for total production of 17 million silver equivalent ounces. By 2013, annual production is anticipated to more than double to approximately 39 million ounces of silver and 20,000 ounces of gold, for total production of approximately 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine and Barrick’s Pascua-Lama project.

At $50 silver, 40 million ounces equates to $1.9 billion of EBITDA, which probably translates to EPS of $3.00-$3.50/share. Put a 35x multiple on it, and voila a $105-$117 stock price.

At just $30 silver, EPS would be close to $2.50-$2.75/share, which at a 35x multiple yields a SP of $88-$96/sh.

And remember, this scenario is projected for 2013, although the stock would likely be discounting these earnings as far back as 2011, which is coming up pretty quickly.

What if silver is $100/oz in 2013, which is hardly what I’d call a longshot?

Earnings would be roughly $10.8 billion paper dollars, EPS would be roughly $32/share, and the stock at a 35x multiple $1,128/sh (for a market cap of $378 billion).

And obviously the silver price and/or multiple can become a lot higher, plus I guarantee they will be adding more acquisitions in that time.

Hence, my prediction that SLW will, by the time all is said and done, become THE LARGEST MARKET CAP STOCK OF ALL TIME!
Andy