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Silver Wheaton Corp. Message Board

  • drugsman12 drugsman12 Apr 16, 2011 8:41 PM Flag

    who needs to do a streaming deal now?

    now that silver is so high, why would any company do a streaming deal in the future? And if they did, who would do it for less than $30/oz. I just don't see the long term business model here. Except for the contracts that they already got that are for the life of mine deals. Going forward though, i'm worried.

    So unless the deals already in hand make SLW really worth $15 billion. Then i would get away from this one. Maybe they are, i'm not sure how the Net asset values stack up to other mining co's. Or if SLW trades at a premium of its current book of steaming deals relative to other miners cash flows.

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    • I can relate to your concerns at 38 ,but i more than 20 yrs older and im satified slw will be a real money pit for some time to come,we havent even begun to show our true potencial yet,imo one must make their own decissions when enough is enough,and thats when you should be thinking on the level youre on dude.
      if your afraid to deal with the volitility that goes along with this gem,then by a mutual fund like phk and just collect the .122 monthly dividend and reinvest w/ the drip plan compunded monthly.
      avery safe income play,4 sure imo,jim

    • I disagree. More of a question of how much upfront money the miner can extract in exchange for the long term contract for their silver. I do not think the level of price really matters, but stabilty of price may be another matter.

    • Final word here. Do you think a miner can walk into Bank of America with a deal that says give me $100M and I'll dig a hole in the ground, and pay you 12% on the loan? And if I don't find quantities of ore sufficient to maintain loan and company, we all die at the end of the movie, is going to get much traction?

      This mine investment is a dangerous niche investment for both lender and borrower. The guys making the loans at Bank of America aren't miners. The $3.95 for an ounce of silver covers cost of extraction only, and for sure, that may go to $4.95 or $5.95, but at SLW we've experts that can tell a dry hole from a gusher.

      Maybe Bank of America OUGHT to buy SLW instead of just the stock. That's win win all over the place.

      But buyout--that's another story.

      For now, SLW for many bankers is the only bank in town.

    • As a result, I am considering selling my shares this week. If you believe that silver will continue to rise then SLV or PSLV are the places to be.

      • 2 Replies to bklynrickel
      • <<As a result, I am considering selling my shares this week. If you believe that silver will continue to rise then SLV or PSLV are the places to be.>>

        it is not nearly as complex as u purport it to be...

        SLW makes money by "in exchange for an UPFRONT payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions."

        vital keyword is "UPFRONT" payment. brilliant negotiations i gotta admit!

        best, davdddd

      • <<As a result, I am considering selling my shares this week. If you believe that silver will continue to rise then SLV or PSLV are the places to be.>>

        it is not as complex as u purport it to be...

        SLW makes money by "in exchange for an UPFRONT payment, it has the right to purchase all or a portion of the silver production, at a low fixed cost, from high-quality mines located in politically stable regions."

        keyword is "UPFRONT" payment. brilliant negotiations i gotta admit!

        best, davdddd

    • That's a stock price suppressor for sure. I was thinking about just that exact thing last night. Randy Smallwood himself said that in order to acquire new streaming contracts the price of silver would have to "stabilize." Strange, because I don't see that happening at all. That's a big problem for SLW in the future just as you point out. That might have been part of the issue with Mr. Barnes resignation. That's why SLV moves when SLW doesn't. It's a question of pinpointing future SLW contracts that is causing the stock to stay in neutral. The business model indeed appears to be limited. I could well be wrong, but that's how I see it. SLW thrives on lower silver prices and on the differential between the contract price and the POS.

 
SLW
20.75+0.46(+2.27%)Dec 18 4:03 PMEST

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