From an article from today showing the upside potential of SLW.
Silver Wheaton has an advantage over most stocks in the sector in that they don’t explore themselves. The company instead acquires the rights to buy gold and silver from various mines around the world. Silver Wheaton then pays out an operating cost fee of $4 per silver ounce and $400 per gold ounce.
The business model may seem pretty good, and that’s because it is. The twelve months ending December 31, 2012 brought the company some $894 million in sales. $586 million in net earnings was generated from those sales.
I think if any of these companies in this article are able to make it back to steady ground, it will be Silver Wheaton. The company has a lot of upside potential and a decent supply of downside protection. They also happen to pay a dividend that’s yielding 2.45%.