Pascua Lama Here is a pararaph from the last quarterly report:
Until December 31, 2015, Silver Wheaton will be entitled to all or a portion of the silver production from Barrick's Veladero, Pierina and Lagunas Norte mines, to the extent Pascua-Lama is operating below 75% of design capacity. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first full five years of operation, Silver Wheaton's attributable silver production is expected to average nine million ounces annually.
If Barrick does not complete Pascua Lama we are not SOL. SLW operates as a bank and banks have collateral. This paragraph covers what happens if Barrick is behind schedule. I am sure there are other covenants that cover what happens if Barrick cannot get the mine up and running. That is why lending money to the large miners is safer. They have more collateral. I heard the analyst say that SLW would be SOL if there were problems with the mine but he is an analyst that follows hundreds of stocks. He cannot be expected to know the intricacies of every deal.
Bob