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Silver Wheaton Corp. Message Board

  • you_know_me_al you_know_me_al May 24, 2013 3:01 PM Flag

    I think there is nothing to worry about

    After all, the whole point of SLW is that it AVOIDS the risks and pitfalls of operating mines. That's in all their literature. So ABX received the news today everybody knew about weeks and months ago. So?

    On the other hand, I'd guess that the long halt—insanely long. Godot already came and went long—is so that certain financial interests can get squared away before the reopening. Just hoping that they're wanting to get IN!!

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Yeah, it had to be one of the most ridiculous halts I have ever seen. The news was so boring and already known...besides the measly $16 million dollar fine to ABX. Once SLW reopened, it dropped a whopping 2% on the news...joke!

      SLW will move back up next week.

    • I hope they are adequately protected. As I write this, the stock is getting hit harder than ABX. ABX is above $19 and volume back up to pre-halt, at least for the moment. SLW down to $22.68 and a fair amount of volume still exiting.

      • 2 Replies to honda_carl
      • Some weeks ago I had same concerns. All one has to do is go to SLW website and do some research. Here is the pertinent section:

        "1. Assuming a silver price of US$25 per ounce

        Silver Purchase Agreement

        On September 8, 2009, Silver Wheaton entered into a silver purchase agreement with Barrick to acquire 25% of the life of mine silver production from Barrick’s Pascua-Lama project, as well as 100% of the silver production from their Lagunas Norte, Pierina and Veladero mines until the end of 2013. Silver Wheaton will make a total upfront cash payment of US$625 million to Barrick, of which US$487.5 million has been paid to date. The remaining US$137.5 million is due on the third anniversary of the transaction. Silver Wheaton will also make ongoing production payments of the lesser of US$3.90 (subject to an annual inflationary adjustment starting three years after achieving project completion at Pascua-Lama) and the prevailing market price, for each ounce of silver delivered under the agreement. Silver Wheaton will not share in any ongoing capital or exploration expenditures at the various mines.

        Barrick has provided Silver Wheaton with a completion guarantee, requiring them to complete Pascua-Lama to at least 75% of design capacity by December 31, 2015. During 2014 and 2015, Silver Wheaton will be entitled to the silver production from the Lagunas Norte, Pierina and Veladero mines to the extent of any production shortfall at Pascua-Lama, until Barrick satisfies the completion guarantee. 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.

        Barrick has granted Silver Wheaton a five year right of first refusal on any further metal stream sales in connection with Pascua-Lama, where more than 50% of the value is from s

        Sentiment: Hold

      • the stocks are following the spot price for gold and silver and %-wise silver is down double gold..

        Sentiment: Hold

    • shorts may want to cover in here, the more news that filters looks like SLW is pretty well protected, now ABX will have to deliver silver from other mines, or buy on open market to seliver to SLW.. SLW should make ABX post a big 600 million $$ bond, and get penalties, and/or sue for several of their mines.

 
SLW
26.02-0.41(-1.55%)Jul 24 4:02 PMEDT

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