stoppage occured back in early april... so the headlines are not accurate as of right now... It is possible that the news is ABX stops any activity going forward at Pascua lama. This event would be a negative but considering they will get back around 500 million isnt so bad... keep in mind regardless of suspension at Pascua SLW will still produce 33.5 million ounces this year and may potentially have an extra 500 million to do some acguiring of streams... or pay down a large portion of debt from the VALE deal either way stocks first move in my opinion will be down ...
Good points . Right now the Chilean government only temporary blocked construction. ABX can continue construction when it builds a 30 million water system.
Understand if that is the case the ounces removed from Slw books represent a serious haircut to the model....Barrick may be forced into BK rendering any payment null and void...Either way SLW is in for a problem here especially considering their primary commodity is falling in price.....
Yeah, what a massive problem. Get back their 500 million dollars and use it AFTER silver has fallen in price to get an even better deal with another miner. I see this as an opportunity (maybe even a "golden one") and certainly not an event that damages their business, business model or their prospects, in the slightest. Which of course begs the question why trading was stopped and remains so.
As usual, the hedgies do the reporting agencies work for them by writing and submitting the copy, and they will attempt to accentuate the negative. But when the smoke clears, this is a total non-event and will prove to be so after
I really don't see the problem for Silver Wheaton Maybe for Barrick, but I don't see anything negative for SLW. Here's a quote directly from the SLW website regarding the mine:
"If Barrick fails to satisfy the requirements of the completion guarantee, the agreement may be terminated by Silver Wheaton. In such an event, Silver Wheaton would be entitled to the return of the upfront cash consideration of US$625 million less a credit for silver delivered up to the date of that event."
I've been adding to SLW ever since the PM swoon last month. I see a GREAT buying opportunity coming up, and will be buying if this stock opens lower when it starts trading again.
i think your way off base claiming barrick will go BK... thats just crazy.. if they were even in a remote possibility of that do you think they would have been able to sell 3 billion in notes just days ago ? barrick is profitable even without Pascua no chance of BK...