Think about it they are issuing debt and using cash to finance this deal doesn't leave slw with much cash to do other deals . It's almost 10 percent of slw market cap surely this is gonna hurt the balance sheet !! While I like the fact they did a deal just think they spent a great deal of money for 110,000 ounces a year do the math at current prices they do 185 mil in revenue , it costs them 44 million to get the 110,000 ounces so it leaves them with a profit of 141 million a year on this deal, it's going to take them 15 years to pay this stream off !! It's life is 20 years so nice to see the revenue just cost them to much !!! They could have done at least 5 silver deals for same money and greater returns
One other thing slw basically just spent almost 2 billion to get the profit equivalent of 5.2 million ounces of silver a year !!! Once again this deal just ruined the company for years to come mark my words if an idiot like me came up with these numbers anyone can.
life is all about choices. you place your bets and you takes your chances.
if the 7 deadly sins influence your poor planing and you think you have a emergency.
it does not constitute a emergence on any body else's part.
You are assuming the mines will only net SLW 110 million. But you forget this part...
"Excellent expansion and exploration potential exist for both Salobo, which currently has an extensive reserve base and good depth and strike potential, and Sudbury, which currently has the Totten mine in start-up and the Victor development project."
In 5 or 10 years time there could be far more gold being mined than is currently being mined.