RE: ABX short 65mm oz Pascua Lama silver? PG;
I believe Silver Wheaton was the biggest recipient of those silver ounces. If ABX doesnt pay up, Silver Wheaton is entitled to ABX silver from ABX's other silver mines, or failing that, their money back from the funds SLW forwared ABX for construction of Pascua Lama.....
Under the agreement Barrick also provided a completion guarantee that requires it to complete Pascua-Lama to at least 75% of design capacity by Dec. 31, 2015. Silver Wheaton is also entitled during 2014 and 2015 to silver production from Laguna Norte, Pierina and Veladero mines to the extent of any production shortfall at Pascua-Lama, until Barrick satisfies the completion guarantee. If Barrick does not satisfy the guarantee, Silver Wheaton can terminate the agreement. If that were to happen, Silver Wheaton would be entitled to the return of the upfront cash consideration of US$625 million, less a credit for silver delivered up to the date the contract was cancelled.
In addition, Silver Wheaton has a five-year right of first refusal on any further metal stream sales from Pascua-Lama, where more than 50% of the value is from silver.