Wednesday, October 9, 2013

A SILVER BASED STOCK YOU SHOULD INVEST IN!!

Silver Wheaton is not like most other mining companies. It is the biggest silver streaming company in the world.
Silver Wheaton is not exposed to the vagaries of the mining industry. The company forges contracts with other miners to buy the silver production of those other miners at a pre-determined, fixed cost. That way the company can absorb price/market fluctuations, unlike other mining companies.

Precious metal streaming allows Silver Wheaton to purchase, in exchange for an upfront
payment, the by-product silver or gold production of a mine that it does not own or operate.
The operating costs that Silver Wheaton pays for future production are pre-determined in the
agreements, typically at approximately US$4 per ounce of silver and US$400 per ounce of gold
produced, with a small inflationary adjustment in most contracts. This amount offsets our
partners’ typical cost to produce an ounce of silver or gold.
Fixed costs reduce our shareholders’ downside risk while at the same time providing the upside
to increases in the precious metals price. As well, other than the initial upfront cash payment,
Silver Wheaton typically does not contribute to future capital expenditures or exploration costs
invested by the mine; yet we benefit from the production and exploration growth that results
from these expenditures. This business model often translates into significant value creation for
Silver Wheaton shareholders.  


Here is an overview of the company
http://silverwheaton.com/files/docs_company%20fact%20sheet/2013-08%20Silver%20Wheaton%20Fact%20Sheet%20(for%20web).pdf

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