Silver Wheaton sinks on Pascua-Lama suspension

|By:, SA News Editor

Barrick Gold's (ABX -5.6%) surprise move to suspend construction at its Pascua-Lama mine in South America also affects Silver Wheaton (SLW -6.7%), which in 2009 bought 25% of the mine's silver production, paying cash in exchange for future silver sales at a discounted price.

SLW says it is now entitled to silver output from three of ABX's currently producing mines - the Lagunas Norte, Pierina and Veladero mines - until the end of 2016 to make up for the production it is losing from Pascua-Lama.

SLW also agrees to extend a completion test deadline on Pascua-Lama until the end of 2017; SLW says it still expects its silver output to top 33.5M silver equiv. oz. this year.