NYSEAM:SVLC - Post by User
Comment by
KevinF2848on Jun 12, 2012 10:17pm
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Post# 20006495
RE: Physical Silver & Barrick Gold.........
RE: Physical Silver & Barrick Gold......... This article is a little bit misleading. Silver Wheaton expects to receive around 9 million ounces a year from Barrick once in production.
From the Silver Wheaton website: "Barrick Gold Corporation’s (“Barrick”) 100% owned Pascua-Lama gold-silver project (“Pascua-Lama) straddles the border of Chile and Argentina and is one of the largest silver deposits in the world. In addition to being a key growth asset for Barrick, Pascua-Lama significantly increases Silver Wheaton’s long term growth profile and will be a cornerstone asset for years to come. Silver Wheaton’s 25% share of the estimated average annual silver production for the first full five years (2013 to 2017) is nine million ounces."
If you read the article, it sounds as if there will be a 200 million ounce short squeeze. 5 years times 9 million ounces is 45 million ounces spread over 5 years. I don't see this as a big deal to the supply of silver. I do believe that silver is in short supply and that it will go up in price over time, but not because of Barrick having to repay Silver Wheaton.