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Silver Wheaton Corp. Message Board

  • michaelhouar michaelhouar Sep 27, 2012 10:05 PM Flag

    Why is Silver Wheaton Corp. current business model is such a winner...

    Why Silver Wheaton has great leader ship and for-site in the industry. Inflation is growing because of of all the QE going on... Is it possible that Silver Wheatons business model has protected them from growing mining cost that are a direct result of QE inflation.

    So again if QE kicks inflation up so fast that these mining companies have to pay more to mine but Silver Wheaton risk is capped because of up front agreements. I know there is a little room but really cost is capped.

    Why is this amazing... well think if the price to mine a metal is going up through inflation and effects the over all profit of a company... unless a streamer like SLW cost is capped...

    Let me get this strait mining cost goes up... around the world... YES for sure....

    It does not matter what the product cost is... it has to be passed to the consumer plus profit... So unavoidable cost of production drives non negotiable price up because it is the cost of production... then the profit section is added...

    The biggest way to save money is to avoid cost that can be without sacrificing quality... One way it saves is larger price mines more tax paid... well if it is money that was never spent then taxes are not applied to that inflation either...

    Example was just in the news

    Barrick Gold's or ABX Pascua-Lama

    This mine was going to open but because of all the red tap and "inflation" the project has been put off until mid 2014...

    Well yes this could be a bummer because production goes down and estimates go down... Remember SLW put out the money already and that is already in the price... Ok, so no extra production but larger profit when it is mined later because of inflation... and larger taxes... Remember people in other countries see all the wealth being created and will want more... Just like a the mouse that asked for a glass of mile with the cookie book(GOOGLE IT)... This will lead to another inflation cost... the larges one... wage and benefits... With IPHONE and kids technology is speeding up and each generation in depressed countries will want what American have... After all we have all these projects that are making them so much money.... I am not saying this will happen over night but I image ever blow or demands given in will just lead to more... This equals more cost...

    This is the value

    Ok well this alone is great news... just depends on how you look at it...

    But Silver Wheaton still is a shaker and mover... buying another mine that needed funding now... for not even 5.50 an oz for the silver produced and 400 for an oz of gold...

    "The long awaited new stream appeared on August 8th when Silver Wheaton announced that they reached an agreement with Hudbay Minerals (HBM) to acquire 100% of the life of mine gold and silver from the 777 mine and 100% of the silver production from the Constancia project. The gold production will remain at 100% until the later of 2016 or a completion test to be regarding Constancia after which it will be reduced to 50% for the remainder of the mine life." David Urban SA

    This deal was closed when silver price was down... I mean down...

    That was paid out of cash flow... hello still no dept

    Return on their investment just got turned on by EQ around the world and still more to come...

    I think the price will take off shortly... Sudden Rise in silver price will just make it quicker...

    I would say 35 is the new floor but could be as high as 37... PEOPLE are just now seeing this a will be willing to pay a much hire P/E for this stock that will be raising dividend...

    This stock will be in the top 10 stock next year and maybe #1...

    Sentiment: Strong Buy

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