SLw does not buy silver at $4 and sell at $22. The real cost is much higher. Look at the books!!!
They paid $2 billion for the existing contracts to acquire silver at $4. That is "2" with a billion. SLW pays the miners part of the mine capex expenditures which is then capitalized on the balance sheet of SLW. It is going to take a lot of years to make that $2 billion back after taxes paid on the revenues generated each year.
Share price is expensive if you consider that at the current price of the stock shareholders are paying $8 billion dollars for the silver contracts based upon price of the shares. That is triple what Silver Wheaton paid for the contracts.
The problem is that silver was only $5 not that long ago. Cost $4 sell @ $5, isn't all that great considering how many hundreds of millions they paid out to get those contracts. Not sure what is going to happen so sitting on the sideless watching for now.
You are right in calling them idiots! Guess they can't see a profitable company when they see one. They must not be able to add and subtract.
The idiots are the ones who buy this stock on margin and have to sell when the call comes in.
If any stock should be in your core this is one!