Precious metal investing is risky. Obviously, the company thinks the price of gold and silver are on the rise long term. $400 per oz gold is cheap now and will be real cheap 3-5 years from now. Average cost to mine gold is around $1400 per oz. I agree with Jim Sinclair that gold is moving towards the money system, not away from it. This new stream will pay very well for many years to come. Keep in mind that Randy Smallwood has stated a goal for zero cash on hand.
“What we’ve seen over the last four months is that even the large companies are all of a sudden receptive” to Silver Wheaton’s funding model, known as streaming, Smallwood said yesterday in an interview at Bloomberg’s Toronto office. “Doors that we’ve been knocking on for a long time, they are all of a sudden knocking on our door.”
“When I look at the opportunities that we have out there right now, I think for the first time ever I might not be able to pay for them all, there’s that many good opportunities out there.”
The Bloomberg article shows what a bright future Silver Wheaton has. Investors should be happy to hear the CEO talking about the magnitude of streaming opportunities knocking at the door of SLW. The next four years are going to be great for the share price and dividend. Let's hope that silver prices stay stable. We want to acquire as much silver and gold as possible before the mania phase takes hold.
Any guesses five to seven years out? Does anyone see real potential in the other properties? Will exploration of the other properties nix a potential dividend?
Good question. (We do have Jan 19 options expiration today. I normally do not comment on day to day pricing, but these options moves are almost like clock work.) Eventually the good PM stocks will break out. They have been in a funk for almost two years.
It has been hitting the fan for quite some time. Jim Rickards made a good case for this in his book, "Currency Wars." You are correct in directing attention to action over words.
I am not sure that what you say is in line with their operations. They claim from time to time to enter the futures market for short term purposes. To withhold inventory does not fit their stated goal of maximum cash flow generation.
Silver Wheaton carried over 5,195,000 silver equivalent ounces of silver from 3rd to 4th quarter 2012, after reporting record production for the 3rd quarter. This number represents the highest carry over of product ever for the company. Reports are out there that refiners are backlogged all over the world. The company probably produced around 6.5-7 million ounces in the 4th quarter. Is it a negative for the company to have such a high inventory of unsold product?
The mine will be completed. Barrick will make billions of dollars. Stuff happens. This is mining. Silver Wheaton knows the game, and I am confident in their judgement.
The CEO stated awhile back that silver in the high 20's and low 30's is good for the company. Long term holders need to listen what he is saying very carefully. The manipulation is helping Silver Wheaton. With cash flows and current cash on hand, deals are ripe for the making. The streaming model is a win win for the company's partnets and potential partners. Dillution is not a good option, and bank financing is even worse for miners.
I think we will see some nice business this year. I would like to see over 2 billion ounces in reserves by the end of the year. According to Silver Wheaton's latest presentation, they have a target market of 700 million ounces being produced by base metal and gold mines. The company currently has a paltry 4% of the pie as of 2012! The growth potential in their words is "Significant." I agree.
Those that stick with their shares will be richly rewarded over the long haul. Let us not forget that the dividend payout has massive potential as well. Here's to 2013!
"An amateur is generally considered a person attached to a particular pursuit, study,
or science without formal training, also referred to as an autodidact."
I have been an owner of SLW since 2009. I have seen many an amateur trader come and go on this board. Trading SLW is like a weekend golfer trying to compete against Tiger Woods in match play. I am sure a few who comment here have done well. Maybe 5% at best. The rest have lost their #$%$
"Rubicon Minerals Corporation (RMX:TSX | RBY:NYSE-AMEX) ("Rubicon") is pleased to announce the appointment, effective June 1, 2012, of Michael Lalonde to the position of President and Chief Operating Officer of the Company. Following his appointment and a transition period of up to six months, Mr. Lalonde will then assume the position of President and Chief Executive Officer of the Company. David Adamson will remain as Chief Executive Officer during the transition period and thereafter will assume the position of Chairman of the Board."
The six month period ends at the end of this month. Will we have a new CEO as of 1 December 2012?
I dis not hear any mention of raising the dividend. I do recall few quarters back, the CEO expressed they will be able to raise the cash flow percentage tied to the dividend down the line. I think they are comfortable with the 20% metric for now. Their main focus is on making solid purchase agreements. I wonder what their ultimate production goal might be? 100 million ounces? Makes sense, and is obtainable considering their target market.