Silver Wheaton Corp.Vancouver, BC, TSX:SLW; NYSE:SLW is the largest public mining company with 100% of its operating revenue from silver production.

Largest Pure Silver Streaming Company

Established in 2004, Silver Wheaton has quickly positioned itself as the largest metals streaming company in the world.

The company currently has fourteen silver purchase agreements and two precious metals agreements where, in exchange for an upfront payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions.

Based upon its current agreements, forecast 2011 attributable production is 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold.

By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold.

Beyond the initial upfront payment, no ongoing capital expenditures are required to generate this growth and Silver Wheaton does not hedge its silver production.

Silver Wheaton’s industry-leading growth profile is driven by a portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine in Mexico and Barrick’s Pascua-Lama project straddling the border of Chile and Argentina.

The company’s unique business model creates significant shareholder value by providing considerable leverage to increases in the silver price while reducing the downside risks faced by traditional mining companies. Silver Wheaton has an experienced management team with a strong track record of success and is well positioned for further growth.

Silver Streaming

Silver stream or silver purchase agreements allow Silver Wheaton to purchase, in exchange for an up-front payment, the by-product silver production of a mine that it does not own or operate. Since approximately 70% of all silver production occurs as a by-product of base or precious metals production, there are numerous potential opportunities for further growth with this business model.

The price that Silver Wheaton pays for future silver production is pre-determined in the agreements, typically US$3.90 per ounce with a small inflationary adjustment, which ensures costs are fixed.

This allows Silver Wheaton to avoid variations in operating costs, reducing downside risk, while providing the upside of significant leverage to increases in the price of silver. As well, other than the initial up-front payment,

Silver Wheaton does not contribute to future capital expenditures or exploration costs invested by the mine, yet benefits from the production and exploration growth that results from these expenditures. This often translates into significant value creation for our shareholders.

A silver stream allows a mine operator that produces silver as a by-product, such as a base metal company, to monetize the value of its future, non-core silver production.

Mine operators typically receive the upfront payment in the form of cash which can be used to continue growing their company, either through exploration, capital or production expansions, or by making acquisitions.

Alternatively, the proceeds can be used to strengthen their capital structure by paying down debt. In short, Silver Wheaton helps mining companies grow their businesses by offering a very attractive financing alternative over traditional sources of capital such as debt or equity.

Current Silver Purchase Agreements

Silver Wheaton pursues acquisitions that are accretive to shareholders and low-risk in terms of asset quality and political jurisdiction. To this end, the company currently has fourteen silver purchase agreements and two precious metal purchase agreements with thirteen mining partners around the globe.

Why invest in Silver Wheaton?

Silver Wheaton is the largest metals streaming company in the world, and the only company that derives more than 95% of its revenue from the sale of silver.

The company has entered into fourteen silver purchase agreements and two precious metals agreements with nine operating partners, including Barrick Gold Corporation and Goldcorp Inc.

It is estimated that 70 percent of silver production comes as a by-product from base metal and gold mines. This characteristic, along with Silver Wheaton management’s bullish sentiment for long-term silver prices, was the basis for creating Vancouver-based Silver Wheaton in 2004.

Silver stream agreements allow Silver Wheaton to purchase, in exchange for an up-front payment, the by-product silver production from a base or precious metal mine that it does not own or operate. The predetermined price that Silver Wheaton pays for future silver production is typically US$3.90 per ounce, with a small inflationary adjustment, ensuring that costs are fixed.

This allows the company to stabilize operating costs and reduce downside risk, while providing the upside of significant leverage to the price of silver. Other than the initial up-front payment, no additional capital expenditures or exploration costs are required. Yet, Silver Wheaton benefits from the production and exploration growth of its operating partners.

Silver Wheaton’s low-risk business model, which was designed specifically to create long-term shareholder value, has a number of unique aspects. At its core are multi-year agreements to purchase, at a low fixed cost, all or a portion of the silver production, and a small amount of gold, from high-quality mines in Mexico, Chile, Argentina, Peru, Sweden, Greece, Portugal, Canada and the United States.

The company has fixed operating costs, no currency risk, and no ongoing capital expenditures or exploration costs. In addition, a large percentage of the company’s revenue is derived from low-cost and long-life mining operations and it does not sell forward its silver sales. All of this provides significant leverage to increases in the price of silver while mitigating the downside risks associated with traditional mining companies.

As a result, Silver Wheaton has an industry-leading growth profile, and it is very well positioned for further, sustained growth

Market Cap:

US $13.7B (as at Dec. 31, 2010)