play in the PM market along with rgld...These two have fared much better than the miners themselves HOWEVER this model doesnt work when the price of the stream deminishes and possibly crashes...Be very weary of these shysters controlling this BS....This stock could have the most downside left in it if silver breaks down below 20 and they are gunning for it!!!
As I recall, SLW is still profitable with silver below $20; below $15 and even below $10. It's all a matter of magnitude.
What scenarios do you envision that could possibly keep PMs, and silver in particular, at such levels for any appreciable amount of time with the members of the Shanghai Cooperation Organization in accumulation mode as well?
Correct the company will still be profitable. One must delve a lot further into the books of SLW. The company still lists the silver from the Pascua Mine on their future stream which has allowed a tremendous benefit of the modeling from analysts. That silver will never hit the stream here as Barrick does not own the ore body of the mine on the Chile side. Barrick will need to give back the 600 million dollars if they dont claim BK before. Barrick is on very shaky ground. As far as this stream is concerned be careful. Ive been a staunch SLW supporter from 5 to 35,,,,,