Silver Wheaton (SLW) agrees to acquire from Vale (VALE) an amount of gold equal to 25% of the...

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Paulo Santos Comments (11607)
 
Weird deal ... very weird deal. What does SLW gain from it?
5 Feb, 05:29 PM Reply Like

Blutopaz Comments (58)
 
...They get to re-process the tailings....lot of $$s to recover.
6 Feb, 07:55 AM Reply Like

SafisKusai Comments (191)
 
10 million warrants is equal to like 2.8% of the entire number of shares... would be interesting to see the terms of these warrants. And that is a lot of cash. Wonder how much gold is expected to be pulled form this mine.
5 Feb, 05:34 PM Reply Like

SafisKusai Comments (191)
 
accounting for no growth in the mine, number of gold ozs is 110,000 per year for the next 20 years. At a price of $1500 per ounce of gold (being conservative for next 20 years) - the cost of acquiring the gold $400 that means that in total they would get $2.42 billion. I'm not seeing a huge benefit. They better hope gold stays high and the mines grow in size.
5 Feb, 05:41 PM Reply Like

youngman442002 Comments (4972)
 
What do they get...GOLD...real gold...not the paper gold you can buy today with GLD....and this is the future..the people with the real gold wins
6 Feb, 02:06 AM Reply Like

vfr750 Comments (2)
 
they are expecting higher gold prices as well as higher production. Plus the new credit lines and continued cash flow will allow them sufficent cash for new deals. They have probably 750M in cash now, and 2.5bn in new lines. 2013 will give 900m+ in new cash.
6 Feb, 04:24 AM Reply Like

SafisKusai Comments (191)
 
i'm bullish on gold & silver but i feel this deal leaves very little room for error and when the cost is amortized it seems to me that the return they are able to get is quite slim.
6 Feb, 05:26 AM Reply Like