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Silver Wheaton Corp. Message Board

  • all4reel all4reel May 7, 2013 10:51 AM Flag

    Was wondering about ABX - Pascua...

    and how it would affect SLW streaming contracts. Then saw great summary on seeking alpha and following:

    "One major risk for future production is the Pascua-Lama mine owned by Barrick Gold, for which Silver Wheaton will receive 25% of the silver for the life of the mine. The mine straddles the Argentina-Chile border, and work has been stopped since mid-April on the Chilean side due to environmental concerns. The newly precarious financial position of Barrick Gold does not inspire confidence in this situation. However, Silver Wheaton has agreements in place to shield them from the worst of this situation. According to their annual report, they have a completion guarantee from Barrick, requiring Barrick to operate the mine at 75% capacity or greater by December 31, 2015. Silver Wheaton is entitled to silver production during 2014 and 2015 from other mines owned by Barrick to make up any shortfall from Pascua-Lama, and it has the right to terminate the agreement and receive its $625 million upfront payment back, minus credit for received silver, if the completion guarantee is violated."

    Seems that we have some strong guarantees in place...

    Sentiment: Hold

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