- Silver Wheaton (SLW -1.9%) fell 12% yesterday on news that the Canada Revenue Agency was set to target it for back taxes, and the probe raises concerns about the entire precious metals streaming model.
- TD Securities analyst Greg Barnes says such a scenario would have negative implications for Franco Nevada (FNV -1.3%), but that the potential impact probably would not be too material.
- FNV is relatively new to the streaming business and does not have a long history of income from it that the CRA could target, and most of its offshore streaming deals are on projects that are either not yet in production or are recent acquisitions.