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SILVER WHEATON

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20082009201020112012201320142015TERMINAL

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PRODUCTION GROWTH-15.00%55.00%47.00%18.00%11.00%9.00%8.00%5.00%2.50%

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SILVER PRICE (E)$14$16$24$36$45$41$35$31$24

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PRODUCTION $11,137$17,262$25,376$29,943$33,237$36,228$39,127$41,083$42,110

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COGP3.94 [1]3.953.984.024.084.154.284.44.75

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GROSS REVENUE$112,038$208,011$508,021$957,586$1,360,059$1,335,015$1,201,970$1,092,807$810,618

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EBIT$108,677$201,771$492,780$928,858$1,319,258$1,294,965$1,165,911$1,060,023$786,300

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EBT$96,427$189,521$480,530$916,608$1,307,008$1,282,715$1,153,661$1,047,773$774,050

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EAT$94,499 [2]$185,731$470,919$898,276$1,280,867$1,257,061$1,130,588$1,026,817$758,569

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REINVESTMENT-$500,000-$20,000-$20,000-$20,000-$20,000-$25,000-$25,000-$25,000-$50,000

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FCF-$405,501$205,731$490,919$918,276$1,300,867$1,282,061$1,155,588$1,051,817$808,569

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DISCOUNT RATE7.00% [3]

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NPV-$378,973$192,272$428,788$749,587$992,426$914,091$770,017$655,019$11,189,688

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SENSITIVITY ANALYSIS (DISCOUNT RATE & LONG TERM SILVER PRICE)

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VALUATION$47.82$16$19$22$25$28$31

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LTD175,0004.00%$90.96$109.45$127.94$146.44$164.93$183.42

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CASH+M/S150005.00%$57.27$67.64$78.02$88.40$98.77$109.15

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SHARES OUTSTANDING329,0006.00%$42.63$49.56$56.50$63.43$70.37$77.30

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VALUE OF FIRM$15,891,8878.00%$28.97$32.84$36.72$40.59$44.46$48.33

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VALUE OF EQUITY$15,731,8879.00%$25.17$28.24$31.31$34.38$37.45$40.53

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VALUE OF EQUITY PER SHARES$47.8210.00%$22.31$24.81$27.31$29.80$32.30$34.80

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[1] Valued Acer Customer: CONTRACTED PRICE
[2] Valued Acer Customer: SLW CURRENTLY DOES NOT PAY INCOME TAX, BUT I ASSUMED A 3% RATE FOR THE HELL OF IT
[3] Valued Acer Customer: ROYALTY COMPANY TAKES OUT SUBSTANCIAL MINIING RISK