Silver Wheaton (SLW) Ok Results but Some Massive Expansion Opportunities

As I've stated in the past, I am not really concerned with quarter to quarter earnings with Silver Wheaton (SLW) - I am looking at it simply as a proxy for silver. Earnings are out this morning and are "fine", but the future expansion is quite astounding. Again, this continues my theme of finding companies with VISIBILITY in VERY uncertain times; companies with pricing power, large backlogs, great macro trends behind them, etc. Doesn't mean the stock price goes up, but while people have been chasing the bottom in home builders, retailers, and financials for half a year (and constantly losing), I just don't see the point when there are a handful of much more "easy" stories out there.

• Silver Wheaton Corp. (NYSE:SLW - News) is pleased to announce record annual 2007 net earnings of US$92 million (US$0.41 per share) and record operating cash flows of US$119 million (US$0.54 per share). Fourth quarter net earnings and operating cash flows were US$25 million (US$0.11 per share) and US$34 million (US$0.15 per share), respectively.
• With 2007 investments in silver purchase contracts (Penasquito and Stratoni) totalling US$558 million, annual silver sales are expected to almost double to 25 million ounces by 2010 without any further capital expenditures. This growth was financed by way of operating cash flows and a US$500 million debt facility.
• The Company has entered into five long-term silver contracts with Goldcorp (Luismin mines in Mexico and Penasquito project in Mexico), Lundin Mining (Zinkgruvan mine in Sweden), Glencore (Yauliyacu mine in Peru) and Hellas Gold (Stratoni mine in Greece), whereby Silver Wheaton acquires silver production from the counterparties at a price of $3.90 per ounce, subject to an inflationary adjustment. [Please note current price of silver is in the $18s!]
• The Company expects, based upon its current contracts, to have annual silver sales of approximately 15 million ounces in 2008, increasing to 19 million ounces in 2009 and 25 million ounces in 2010. Silver Wheaton is actively pursuing further growth opportunities.

Long Silver Wheaton in fund; no personal position