Silver Wheaton Proves Its Worth (SLW, SLV)

Silver Wheaton Corp. (NYSE: SLW) is out with its reserves news this morning and it is showing why it has risen so much in the last year.  The company showed a 9% increase in its attributable  proven and probable reserves in 2010 over 2009.  The iShares Silver Trust (NYSE: SLV) is trading higher as well again, but the move in the shares of Silver Wheaton has been even more impressive than silver’s move.

The company’s data is as follows:

• An increase of 80 million ounces of silver and 23,000 ounces of gold, to a record 954 million silver equivalent ounces. 
• Attributable measured and indicated resources increased by 1% as a result of an increase of four million ounces of silver and 22,000 ounces of gold to 377 million silver equivalent ounces. 
• Attributable inferred resources increased by 22% from an increase of 89 million ounces of silver to 497 million silver equivalent ounces.

The acquisition of silver and gold production from Augusta Resource Corporation’s Rosemont Copper Project in Arizona helped to increase these attributable reserves by approximately 7%.

The company said that its silver stream agreements relate to 16 operating mines and three development stage assets, giving Silver Wheaton more silver reserves and resources than any other silver company in the world.

So far we are seeing a 1.4% gain to $45.50 in pre-market trading and the 52-week trading range is $14.83 to $46.38.  Here is a Yahoo! chart of Silver Wheaton against the iShares Silver Trust over the last year:

JON C. OGG