Forecasts weighted to H2

Silver Wheaton 25 May 2016 Update

Silver Wheaton

Forecasts weighted to H2

Q1 results

Metals & mining

 

25 May 2016

Price

C$24.19

Market cap

C$10,608m

US$1/C$1.2831

Net debt (US$m) at end-March 2015

1,284

Shares in issue*

438.5m

*Post-bought deal.

Free float

100%

Code

SLW

Primary exchange

TSX

Secondary exchange

NYSE

Share price performance

%

1m

3m

12m

Abs

3.5

11.6

1.3

Rel (local)

2.9

1.9

10.4

52-week high/low

C$26.29

C$14.76

Business description

Silver Wheaton is the world’s pre-eminent pure precious metals streaming company with more than 25 precious metals streaming and early deposit agreements relating to assets in Mexico, Peru, Canada, Brazil, Chile, Argentina, Sweden, Greece, Portugal, the US and Guyana.

Next events

Q2 results

August 2016

Third quarterly dividend payment

August 2016

Analyst

Charles Gibson

+44 (0)20 3077 5724

Silver Wheaton is a research client of Edison Investment Research Limited

After four quarters in which the production of both gold and silver achieved successive new records, output attributable to Silver Wheaton (SLW) moderated in Q116 – albeit to only the second-best ever – with good quarterly performances (again) from Antamina and Salobo offset by headwinds at San Dimas and SLW’s ‘other’ assets. However, sales of material closely approximated production, with the result that inventories decreased by 0.9Moz AgE.

Year end

Revenue (US$m)

PBT* (US$m)

EPS* (c)

DPS (c)

P/E (x)

Yield (%)

12/14

620.2

268.8

75

26

25.1

1.4

12/15

648.7

223.6

53

20

35.6

1.1

12/16e

809.5

239.0

55

24

34.3

1.3

12/17e

1,057.6

488.5

111

34

16.9

1.8

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items.

Depletion and expensed interest changes

Other features of the results were a continuation of the (non-cash) depletion charge at the elevated levels of Q415 and a decision to change the accounting treatment of interest paid, such that all interest is now expensed and none capitalised (whereas, previously, the majority, relating to the Barrick silver interest, in particular, was capitalised). We estimate that these two effects alone have a combined negative effect of 10c/sh on reported EPS in FY16.

Estimates in line; upside potential

Our revised EPS estimate of 55c for FY16 compares to an average consensus basic EPS estimate of 55c within the range 37-68c (source: Bloomberg, 11 May 2016). Our production forecasts are now close to the bottom of the range of estimates for FY16. Apart from metals prices, upside opportunity exists in the form of production outperformance at Antamina, in particular, and/or a reduction in the future depletion charge potentially on account of higher metals’ prices. By contrast, our basic EPS estimate of 111c for FY17 (assuming US$24.18/oz Ag and US$1,347/oz Au) compares to an average consensus estimate of 65c, within the range 33-82c (excluding Edison). If silver and gold prices remain at the current levels of US$17.01/oz and US$1,265/oz (at the time of writing), we estimate that basic EPS in FY17 will be 61c per share (all other things being equal).

Valuation: 31.3% IRR over four years

Assuming no material purchases of additional streams (which is unlikely), we forecast a value per share for SLW of US$37.62, or C$48.27, in FY19 (at prices of US$26.57/oz Ag and US$1,483/oz Au), representing a total internal rate of return to investors at the current share price of 31.3% in US dollar terms over four years. In the meantime, SLW is trading on near-term financial ratios that are cheaper than those of its royalty/streaming ‘peers’ on at least 83% of valuation measures considered and the miners themselves on at least 61% of measures considered, despite being associated with materially less operational and cost risk, in particular.

Q116 results

After four successive quarters in which the production of gold and silver ounces each achieved new records, output attributable to Silver Wheaton moderated in Q116 – albeit to only the second-best ever – with good quarterly performances (again) from Antamina and Salobo offset to some extent by headwinds at San Dimas and SLW’s ‘other’ assets. In another positive development, sales of material closely approximated production, with the result that payable silver equivalent ounces produced but not yet delivered to Silver Wheaton decreased by 0.9Moz AgE (although this is anticipated to reverse later in the year as production increases once again).

Other features of the results were a continuation of the (albeit non-cash) depletion charge at the elevated levels of Q415 and a decision to change the accounting treatment of interest paid, such that all interest is now expensed and none capitalised (whereas previously the majority, relating to the Barrick silver interest in particular, was capitalised). Excluding impairments, a summary of SLW’s Q116 results, compared with the previous quarter plus our prior expectation is as follows:

Exhibit 1: Silver Wheaton Q116, by quarter*

US$000s (unless otherwise stated)

FY15

Q115

Q215

Q315

Q415

Q116e

Q116a

Variance1 (%)

Change2 (%)

Silver production (koz)

30,717

6,342

7,201

6,890

10,284

8,373

7,570

(9.6)

(26.4)

Gold production (oz)

228,764

55,106

50,509

54,513

69,176

63,126

64,942

2.9

(6.1)

AgE production (koz)

47,697

10,371

10,904

10,993

15,463

13,412

12,733

(5.1)

(17.7)

Silver sales (koz)

26,566

5,665

5,575

6,575

8,751

8,373

7,552

(9.8)

(13.7)

Gold sales (oz)

202,349

28,399

60,974

48,077

64,899

63,126

65,258

3.4

0.6

AgE sales (koz)

41,574

7,723

10,043

10,194

13,614

13,412

12,759

(4.9)

(6.3)

Avg realised Ag price (US$/oz)

15.64

16.95

16.42

15.05

14.75

14.77

14.68

(0.6)

(0.5)

Avg realised Au price (US$/oz)

1,152

1,214

1,195

1,130

1,100

1,179

1,175

(0.3)

6.8

Avg realised AgE price (US$/oz)

15.60

16.90

16.38

15.03

14.73

14.77

14.70

(0.5)

(0.2)

Avg Ag cash cost (US$/oz)

4.17

4.14

4.26

4.26

4.06

4.70

4.14

(11.9)

2.0

Avg Au cash cost (US$/oz)

393

388

395

389

396

394

389

(1.3)

(1.8)

Avg AgE cash cost (US$/oz)

4.58

4.46

4.76

4.58

4.50

4.79

4.44

(7.3)

(1.3)

Sales

648,687

130,504

164,435

153,251

200,497

198,088

187,511

(5.3)

(6.5)

Cost of sales

 

 

Cost of sales, excluding depletion

190,214

34,464

47,795

46,708

61,247

64,225

56,636

(11.8)

(7.5)

Depletion

198,581

32,045

53,327

45,248

67,962

60,513

71,344

17.9

5.0

Total cost of sales

388,795

66,509

101,122

91,956

129,208

124,738

127,980

2.6

(1.0)

Earnings from operations

259,892

63,995

63,313

61,295

71,289

73,350

59,531

(18.8)

(16.5)

Expenses and other income

 

 

- General and administrative

32,237

8,170

7,886

7,170

9,011

9,011

10,844

20.3

20.3

- Foreign exchange (gain)/loss

0

(373)

0

0

373

0

0

N/A

(100.0)

- Net interest paid/(received)

4,090

1,500

798

428

1,364

2,010

6,932

244.9

408.2

- Other (income)/expense

4,076

2,297

992

763

24

24

1,160

4,733.3

4,733.3

Total expenses and other income

40,403

11,594

9,676

8,361

10,772

11,045

18,936

71.4

75.8

Earnings before income taxes

219,489

52,401

53,637

52,934

60,517

62,305

40,595

(34.8)

(32.9)

Income tax expense/(recovery)

9,132

2,982

(89)

**3,133

**3,107

0

(384)

N/A

(112.4)

Marginal tax rate (%)

4.2

5.7

(0.2)

5.9

5.1

0.0

(0.9)

N/A

(118.5)

Net earnings

210,357

49,419

53,726

49,801

57,410

62,305

40,979

(34.2)

(28.6)

 

 

Basic EPS (US$)

0.53

0.13

0.15

0.12

0.14

0.16

0.10

(37.5)

(28.6)

Diluted EPS (US$)

0.53

0.13

0.15

0.12

0.14

0.16

0.10

(37.5)

(28.6)

Source: Silver Wheaton, Edison Investment Research. Note: *Excluding impairments. **After excluding taxation effect of impairments. 1Q116a vs Q116e. 2Q116a vs Q415a.

Performance and outlook
The good

Vale reported that production at Salobo in Q415 was near full capacity. Nevertheless, production increased to a record 37,871oz in Q116 and is expected to continue to improve throughout the remainder of the year as rainfall decreases. Compared to 125,624oz in FY15, Edison is forecasting production from Salobo attributable to Silver Wheaton of 148,871oz in FY16 – although this has scope to increase as and when operations engage higher grade ore faces in H216.

Antamina produced 2,021koz silver attributable to SLW in Q116 (vs 2,403koz in Q415) – its second successive quarter of outperformance relative to prior expectations – as higher grades and recoveries more than offset the impact of planned maintenance during the period. SLW has issued guidance to the market of 5.5Moz of production for FY16. This compares to Edison’s forecast of 6.146Moz. Self-evidently, four quarters of production at the levels of Q1 would imply output of 8.084Moz and could therefore add up to 2Moz to Edison’s forecast and 2.5Moz to SLW’s.

The not quite so good

After an almost uninterrupted run of good production results, output at San Dimas fell to 0.9Moz attributable silver (vs 2.3Moz in Q415) as Primero implemented new safety standards at the mine. As a result, mill throughput was limited to 1,639tpd. This recovered to above 2,500tpd in April. However the addition of ground support has resulted in a modified mine plan for the remainder of 2016, with the company targeting higher grade stopes at lower tonnages, with the result that the mill expansion to 3,000tpd has been deferred. As a consequence, Edison has reduced its forecast output from San Dimas for FY16 from 7.5Moz (ie effectively the same level as FY15) to 5.6Moz.

Similarly, Penasquito recorded its worst quarter since Q113, with output falling 23.4%, quarter-on-quarter, from 1,766koz to 1,352koz, owing to lower grades being mined as part of mine sequencing. As disclosed in Goldcorp’s Q116 results, these lower grades are now expected to persist throughout the remainder of the year. In addition, there will be a 10-day maintenance shutdown in Q216.

Headline production from SLW’s ‘other’ assets increased 8.1%, quarter-on-quarter, compared to Q415. However, given that this now includes production from Barrick’s mines, this suggests an underlying decline. Similarly, headline production from SLW’s ‘other’ gold assets increased 84.3%, quarter-on-quarter, from 8,043oz to 14,824oz. Again, this includes 8,275oz of production from the 777 mine, suggesting an underlying decline from the remaining assets contributing to this division. Within this context, it is notable that output from Minto declined 40.5%, from 5,237oz Au to 3,114oz, quarter-on-quarter, owing to lower grades and recoveries more than offsetting higher throughput (a pocket of high-grade underground ore in close proximity to existing development was opportunistically mined and processed at Minto in Q415). Mining rates are reported to be on schedule, as is stripping at Minto North, where low-grade ore was reached, as expected, in December and high-grade ore is expected to be delivered to the mill in Q216.

FY16 by quarter

At the time of its Q415/FY15 results, SLW’s outlook for production for FY16 was 54Moz AgE, including 265koz Au. At the time, our equivalent forecast was 53.1Moz, comprising 33.5Moz Ag and 252.5koz Au. We have now adjusted this expectation to output of 49.9Moz for the full year – the majority of the decline is attributable to performance at San Dimas, followed by Penasquito. Other changes include the continuation of an elevated depletion charge, the continued expensing of interest and elevated general and administrative charges to reflect higher legal costs, relating to SLW’s dispute with the CRA (note that non-stock G&A expenses are forecast to be in the range US$31-34m for the full-year). Our revised forecasts are as follows:

Exhibit 2: Silver Wheaton FY16 forecasts, by quarter*

US$000s (unless otherwise stated)

Q116a

Q216e

(previous)

Q216e

(current)

Q316e

(previous)

Q316e

(current)

Q416e

(previous)

Q416e

(current)

FY16e

(previous)

FY16e

(current)

FY17e

Silver production (koz)

7,570

8,373

7,587

8,373

7,760

8,373

7,760

33,490

30,677

29,539

Gold production (oz)

64,942

63,126

63,126

63,126

63,126

63,126

63,126

252,504

254,320

254,788

AgE production (koz)

12,733

13,397

12,501

13,169

12,321

13,169

12,332

53,146

49,886

43,734

Silver sales (koz)

7,552

8,373

7,587

8,373

7,760

8,373

7,760

33,490

30,659

29,539

Gold sales (oz)

65,258

63,126

63,126

63,126

63,126

63,126

63,126

252,504

254,320

254,788

AgE sales (koz)

12,759

13,397

12,501

13,169

12,321

13,169

12,332

53,146

49,912

43,734

Avg realised Ag price (US$/oz)

14.68

15.89

16.25

16.11

17.01

16.11

16.97

15.72

16.24

24.18

Avg realised Au price (US$/oz)

1,175

1,265

1,265

1,224

1,229

1,224

1,229

1,223

1,224

1,347

Avg realised AgE price (US$/oz)

14.70

15.89

16.25

16.11

17.01

16.11

16.97

15.72

16.22

24.18

Avg Ag cash cost (US$/oz)

4.14

4.75

4.49

4.77

4.52

4.79

4.52

4.75

4.42

5.22

Avg Au cash cost (US$/oz)

389

394

394

394

394

394

394

394

385

396

Avg AgE cash cost (US$/oz)

4.44

4.82

4.71

4.92

4.86

4.93

4.86

4.87

4.72

5.84

Sales

187,511

212,917

203,143

212,148

209,577

212,148

209,266

835,300

809,496

1,057,595

Cost of sales

Cost of sales, excluding depletion

56,636

64,628

58,911

64,812

59,914

64,920

59,937

258,586

235,398

255,347

Depletion

71,344

60,513

66,055

60,513

66,582

60,513

66,582

242,050

270,563

259,974

Total cost of sales

127,980

125,141

124,966

125,325

126,496

125,433

126,520

500,637

505,962

515,321

Earnings from operations

59,531

87,776

78,177

86,823

83,081

86,715

82,746

334,664

303,534

542,274

Expenses and other income

- General and administrative

10,844

9,011

10,844

9,011

10,844

9,011

10,844

36,044

43,376

43,376

- Foreign exchange (gain)/loss

0

0

0

0

0

0

0

0

0

- Net interest paid/(received)

6,932

1,077

4,737

1,077

4,737

1,077

4,737

5,241

21,144

10,390

- Other (income)/expense

1,160

24

814

24

814

24

814

96

3,602

Total expenses and other income

18,936

10,112

16,395

10,112

16,395

10,112

16,395

41,381

68,122

53,766

Earnings before income taxes

40,595

77,664

61,781

76,711

66,685

76,603

66,351

293,283

235,412

488,509

Income tax expense/(recovery)

(384)

0

0

0

0

0

0

0

(384)

0

Marginal tax rate (%)

(0.9)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

(0.2)

0.0

Net earnings

40,979

77,664

61,781

76,711

66,685

76,603

66,351

293,283

235,796

488,509

Ave. no. shares in issue (000s)

402,952

438,453

438,453

438,453

438,453

438,453

438,453

428,970

429,578

438,453

Basic EPS (US$)

0.10

0.18

0.14

0.17

0.15

0.17

0.15

0.68

0.55

1.11

Diluted EPS (US$)

0.10

0.18

0.14

0.17

0.15

0.17

0.15

0.68

0.55

1.11

Source: Silver Wheaton, Edison Investment Research.

Our EPS estimate of 14c for Q216 compares to an average consensus basic EPS estimate of 13c from revenue of US$204.25.0m, EBITDA of US$134.5m, operating profit of US$70.9m and net income of US$62.0m (source: Bloomberg, 11 May 2016). Consensus EPS estimates for Q316 and Q416 are 14c and 15c, respectively (vs 14.6c and 15.7c respectively in April).

Our FY16 EPS estimate of 55c compares to an average consensus basic EPS estimate of 55c within the range 37-68c (source: Bloomberg, 11 May 2016). By contrast, our basic EPS estimate of 111c for FY17 compares to an average consensus estimate of 65c, within the range 33-82c (excluding Edison), albeit this depends on higher precious metals prices (see Exhibit 2). Should silver and gold prices remain at the current levels of US$17.01/oz and US$1,265/oz (at the time of writing), we estimate that basic EPS in FY17 will instead be 61c per share (all other things being equal).

Valuation

Excluding FY04 (part year) and FY08 (when there was an exceptional write-down), SLW’s shares have historically traded on an average P/E multiple of 25.9x current year basic EPS (cf 34.3x Edison FY16e or 33.3x consensus FY16e, currently).

Exhibit 3: Silver Wheaton historic current year P/E multiples

Source: Edison Investment Research. Note: FY14 EPS excludes impairment charge.

Applying this multiple to our long-term EPS forecast of US$1.45 per share in FY19 implies a potential share value of US$37.62, or C$48.38. Note that this EPS estimate has declined compared to the US$1.64/sh estimate in our note of 18 April. This is almost exclusively a function of an elevated depletion charge and a higher G&A expenses (implicitly including ongoing legal expenses). Note that this EPS forecast also depends on a continued recovery in the gold price to US$1,483/oz and a rebalancing of the gold:silver ratio from an almost unprecedented 74x currently to 56x – implying a silver price of US$26.57/oz. In the event that silver and gold prices remain at current levels, our FY19 EPS forecast moderates to 69cps.

From a relative perspective, meanwhile, it is notable that SLW is cheaper than its royalty/streaming ‘peers’ on 23 out of 24 valuation measures in Exhibit 4 (ie 96% of instances considered or 83% using consensus forecasts) and on multiples that are cheaper than the gold miners themselves on 38 out of 54 valuation measures (ie 70% of instances considered or 61% using consensus forecasts), despite being associated with materially less operational and cost risk, in particular.

Exhibit 4: Silver Wheaton comparative valuation vs a sample of operating and royalty/streaming companies

P/E (x)

Yield (%)

P/CF

Year 1

Year 2

Year 1

Year 2

Year 1

Year 2

Royalty companies

Franco-Nevada

97.5

82.6

1.2

1.2

29.8

29.2

Royal Gold

55.6

37.2

1.6

1.6

17.9

14.0

Sandstorm Gold

95.4

52.6

0.0

0.0

16.1

13.7

Osisko

58.3

54.1

1.0

1.0

34.7

33.3

Average

76.7

56.6

0.9

1.0

24.6

22.5

Silver Wheaton (Edison forecasts)

34.3

*16.9

1.3

*1.8

15.6

*11.0

SLW (consensus)

33.3

28.3

1.3

1.5

14.9

14.1

Operators

Barrick

34.5

26.2

0.4

0.4

9.1

8.2

Newmont

28.9

21.8

0.3

0.4

7.8

6.9

Goldcorp

69.0

45.6

0.6

0.4

11.7

10.1

Newcrest

45.1

25.1

0.2

0.8

12.5

9.8

Kinross

396.0

102.7

0.0

0.0

6.7

6.3

Agnico-Eagle

144.2

63.0

0.7

0.7

14.6

13.1

Eldorado

241.2

31.6

0.1

0.1

16.8

10.3

Yamana

45.1

36.2

0.5

0.4

7.3

6.3

Randgold Resources

32.0

28.1

0.8

0.8

17.0

14.4

Average

115.1

44.0

0.4

0.4

11.5

9.5

Indices

NYSE Arca Gold BUGS index

38.9

26.4

0.6

0.7

7.8

6.9

Source: Bloomberg, Edison Investment Research. Note: *FY17 forecasts assume precious metals’ prices of US$24.18/oz Ag and US$1,347/oz Au. Peers priced on 11 May 2016.

Financials

As at 31 March 31, SLW had US$1,284.2m of net debt on its balance sheet (vs US$1,362.7m as at end-December and US$566.5m as at end-September), which is consistent with its generating c US$100m from operating activities per quarter and paying US$900m for the Antamina stream acquisition in Q415.

In the aftermath of its March bought deal (the proceeds from which had not been received at 31 March), we estimate that SLW’s net debt will reduce to US$445.9m by the end of FY16 and that SLW will be ostensibly debt free in FY17, all other things being equal and contingent on its making no further major acquisitions (which is unlikely).

We estimate that net debt of US$445.9m as at end-2016 will equate to gearing (net debt/equity) of 9.1% and a leverage (net debt/[net debt+equity]) of 8.4%. Self-evidently, such a level of debt is well within the tolerances required of its banking covenants that:

net debt should be no more than 0.75x tangible net worth (which was US$4,156m as at end-March 2016 and is forecast to be US$4,890m as at end-December 2016); and

interest should be no less than 3x covered by EBITDA (we estimate that net interest cover will be 25x in FY16).

Note that the C$191.7m letter of guarantee that SLW has posted re 50% of the disputed taxes relating to its dispute with the CRA has been done so under a separate agreement and is therefore specifically excluded from calculations regarding SLW’s banking covenants. SLW’s revolving debt facility attracts an interest rate of Libor plus 120-220bp.

Canadian Revenue Agency (CRA)

There have been no further substantive developments regarding SLW’s dispute with the CRA since our last update note.

Silver Wheaton notes the CRA’s position is that the transfer pricing provisions of the Income Tax Act (Canada) in relation to income earned by SLW’s foreign subsidiaries should apply “such that the income of Silver Wheaton subject to tax in Canada should be increased by an amount equal to substantially all of the income earned outside of Canada by the Company’s foreign subsidiaries for the 2005-2010 taxation years.” Should this interpretation be upheld, we would expect it to have potentially profound consequences for Canada’s status as an attractive investment destination for suppliers of finance and capital to overseas destinations.

Any further developments will be communicated to investors as and when they occur.

Exhibit 5: Financial summary

US$'000s

2012

2013

2014

2015

2016e

2017e

Dec

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

PROFIT & LOSS

Revenue

 

 

849,560

706,472

620,176

648,687

809,496

1,057,595

Cost of Sales

(117,489)

(139,352)

(151,097)

(190,214)

(235,398)

(255,347)

Gross Profit

732,071

567,120

469,079

458,473

574,098

802,249

EBITDA

 

 

701,232

531,812

431,219

426,236

530,722

758,873

Operating Profit (before amort. and except.)

600,003

387,659

271,039

227,655

260,158

498,898

Intangible Amortisation

0

0

0

0

0

0

Exceptionals

0

0

(68,151)

(384,922)

0

0

Other

788

(11,202)

(1,830)

(4,076)

(3,602)

0

Operating Profit

600,791

376,457

201,058

(161,343)

256,556

498,898

Net Interest

0

(6,083)

(2,277)

(4,090)

(21,144)

(10,390)

Profit Before Tax (norm)

 

 

600,003

381,576

268,762

223,565

239,014

488,509

Profit Before Tax (FRS 3)

 

 

600,791

370,374

198,781

(165,433)

235,412

488,509

Tax

(14,755)

5,121

1,045

3,391

384

0

Profit After Tax (norm)

586,036

375,495

267,977

222,880

235,796

488,509

Profit After Tax (FRS 3)

586,036

375,495

199,826

(162,042)

235,796

488,509

Average Number of Shares Outstanding (m)

353.9

355.6

359.4

395.8

429.6

438.5

EPS - normalised (c)

 

 

166

106

75

53

55

111

EPS - normalised and fully diluted (c)

 

165

105

74

53

55

111

EPS - (IFRS) (c)

 

 

166

106

56

(-41)

55

111

Dividend per share (c)

35

45

26

20

24

34

Gross Margin (%)

86.2

80.3

75.6

70.7

70.9

75.9

EBITDA Margin (%)

82.5

75.3

69.5

65.7

65.6

71.8

Operating Margin (before GW and except.) (%)

70.6

54.9

43.7

35.1

32.1

47.2

BALANCE SHEET

Fixed Assets

 

 

2,403,958

4,288,557

4,309,270

5,526,335

5,360,253

5,172,278

Intangible Assets

2,281,234

4,242,086

4,270,971

5,494,244

5,328,162

5,140,187

Tangible Assets

1,347

5,670

5,427

12,315

12,315

12,315

Investments

121,377

40,801

32,872

19,776

19,776

19,776

Current Assets

 

 

785,379

101,287

338,493

105,876

417,123

945,731

Stocks

966

845

26,263

1,455

1,815

2,371

Debtors

6,197

4,619

4,132

1,124

2,218

2,898

Cash

778,216

95,823

308,098

103,297

413,091

940,462

Other

0

0

0

0

0

0

Current Liabilities

 

 

(49,458)

(21,134)

(16,171)

(12,568)

(25,121)

(27,089)

Creditors

(20,898)

(21,134)

(16,171)

(12,568)

(25,121)

(27,089)

Short term borrowings

(28,560)

0

0

0

0

0

Long Term Liabilities

 

 

(32,805)

(1,002,164)

(1,002,856)

(1,468,908)

(862,292)

(862,292)

Long term borrowings

(21,500)

(998,136)

(998,518)

(1,466,000)

(859,000)

(859,000)

Other long term liabilities

(11,305)

(4,028)

(4,338)

(2,908)

(3,292)

(3,292)

Net Assets

 

 

3,107,074

3,366,546

3,628,736

4,150,735

4,889,963

5,228,629

CASH FLOW

Operating Cash Flow

 

 

720,209

540,597

434,582

435,783

538,219

759,604

Net Interest

0

(6,083)

(2,277)

(4,090)

(21,144)

(10,390)

Tax

(725)

(154)

(204)

(208)

768

0

Capex

(641,976)

(2,050,681)

(146,249)

(1,791,275)

(104,481)

(72,000)

Acquisitions/disposals

0

0

0

0

0

0

Financing

12,919

58,004

6,819

761,824

607,000

0

Dividends

(123,852)

(160,013)

(79,775)

(68,593)

(103,569)

(149,843)

Net Cash Flow

(33,425)

(1,618,330)

212,896

(666,559)

916,794

527,372

Opening net debt/(cash)

 

 

(761,581)

(728,156)

902,313

690,420

1,362,703

445,909

HP finance leases initiated

0

0

0

0

0

0

Other

0

(12,139)

(1,003)

(5,724)

0

0

Closing net debt/(cash)

 

 

(728,156)

902,313

690,420

1,362,703

445,909

(81,462)

Source: Company sources, Edison Investment Research

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