One incredibly attractive selling point of Silver Wheaton is that it negotiates all of its contracts over the long term at a low fixed cost. Because of these contracts, Silver Wheaton is able to purchase most of its silver at a fraction more than $4 per ounce and gold at around $400 per ounce, then turn around and profit from the difference between these prices and current silver and gold spot pricing. It would take a huge drop in metal prices for Silver Wheaton not to be wildly profitable.
Silver Wheaton is also absolved from any additional mine costs beyond its up-front payment and perhaps build-out milestone installments. Upkeep and maintenance, as well as future expansion, are fully the responsibility of the mine owner and not Silver Wheaton.
With predictable costs, a decent yield of 1.8%, and long-term built-in cash flow, there aren't