Silver Wheaton Corp. Message Board
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7% return
$1.9B to get $140M/yr at current prices. Not a great return
I think the CEO felt pressure to justify his existence and made a bad deal. These are the kinds of deals Barnes did not want to make so he left.-
actually less as they have to pay interest on the loans for the first 5 years. so maybe the return on capital is 4%
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To get your hand on 2.2 mln PHYSICAL gold ounces at today's gold price or lower is always a good deal.
- 1 Reply to mblimon2000
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I recently bot 8 silver bars 1.2 troy ounce marked "FIRST STRIKE" and each with a 500-800 serial number. .999 PURITY. Anyone familiar with this stuff? I was able to scoff them for $35/per, AND CAN BUY MORE TOMORROW.
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You should be the CEO of SLW. Not.
- 1 Reply to hailurban
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I was here at $4...Twice. when did you get in? $40?
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You've entirely discounted both future values and appreciating volumes. When those are factored into the equation, it becomes a tidy little deal.
- 1 Reply to moses_on_wall_street
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What happens to gold and or silver if or when China, India, or Germany decides to back its curriency with such ? Germany is re-patrioting its gold and China is getting all they can.
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I have a question - a question from someone who's never invested in SLW, not studied it deeply but have found the streaming concept interesting. I thought the basic premise of the streaming model was to grab a healthy share of future revenues streams by providing financing, i.e. up front money for developing companies who do not have a myriad of options open to them. How does the VALE deal fit into that model? Surely they have lots of options and don't really need the financing, do they? Why would VALE do this deal with SLW unless they thought they were getting the better of the deal by a wide margin? And yes, I admit this is a question of ignorance, but please don't take it as a bash...
- 2 Replies to foreverwhiteroses
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foreverwhiteroses,Vale made the deal because they need money, they have $ 31.63 Billion in DEBT, it is that simple, and SLW took advantage of the situation. I would not be surprised if SLW sp hits $ 100 within 18 months.
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because VALE ironically sees the gold as a by product metal. I don't know these mines but I am guessing the primary metal is copper or nickel. They really don't care about the gold. They could get financing from a bank, but they don't want to pay the interest or have the risk of lower gold prices in the future
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