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Douglas OLanghlin Michael Freeland Tatiya Chattanapanich

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Agenda Our recommendation: Hold Business Description Industry Overview and Competitive Positioning Investment Summary Valuation Investment Risks Q&A

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Business Description Founding and History Silver Wheaton was founded in 2004, and was previously controlled by Goldcorp In 2008, Goldcorp divested its ownership in Silver Wheaton completely and sold its stake Management The company has 28 full time employees in 2013 The current CEO, Randy Smallwood, has been in place since 2011

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Business Description Silver Wheaton is the largest precious metal streaming company in the world The company engages in a stream of precious metal from a mine at a fixed cost, in exchange for an upfront payment. Silver Wheaton has 19 active streams Most contracts are for life of mine or 25 years long high quality assets

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Operating Mines (19) Development Projects (5)

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Precious Metal Production

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Industry CompanyMarket Cap (millions of $'s)Type of CompanyMetal Focus Silver Wheaton8,998.80StreamingSilver focus Franco-Nevada7598.6Streaming/RoyaltyGold focus Sandstorm Gold675StreamingGold focus Royal Rold4200.8Streaming/RoyaltyGold focus First Majestic1266.4MiningSilver focus Hecla Mining1062.3MiningSilver focus Pan American2190.7MiningSilver focus Gold Corp20218.8MiningGold focus Barrick Gold23642.8MiningGold focus

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SWOT Analysis Strengths Silver Wheaton has no operating costs, and low fixed costs Profit is booked in the Cayman Islands, subject to no tax Weaknesses Increased Gold streaming, which weakens margins Silver Wheaton has very little controlling power over the mine Opportunities They have another 1 billion in revolving credit, and strong cash flow for acquisitions Attractive to companies who cant get more debt, and dont want to issue equity Threats If the price of Silver and Gold falls, the Silver Wheatons top line will suffer Threat of new entrants and existing competitors

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Valuation Discounted cash flow Intrinsic value of 14.40-37.18 Assumptions Residual growth Terminal value Production estimates

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Five year production growth

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Valuation Comparable Model: $15.04-$21.63 Price to book value per share Price to cash flow per share EV/EBITDA

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Valuation Price Target Range: $18.34- $25.79 Market Price: $22.78

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Margins Fixed cost will stay relatively low If the price of silver significantly increase or decreased, the margins would do the same

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Cash Flows

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Investment Risks Silver Prices New Market Entrants No control over mining operations Dependence on Key Management Litigation Information from streaming partners

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Silver Price Estimates

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Conclusion Recommendation: Hold Strong business model with low fixed costs Organic production growth and future acquisition Significant silver price headwinds Steady increase in dividends

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Q&A

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Appendix

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