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SILVER WHEATON CORP. T.SLW

"Silver Wheaton is a pure, unhedged paper proxy on silver prices with a unique business model. The company purchases silver for sale through long-term purchase contracts from counterparties. Currently, the company has long-term silver purchase contracts with more than a dozen mines. Silver Wheaton purchased and sold roughly 28 million silver-equivalent ounces in 2012 through its purchase sales contracts."


TSX:SLW - Post by User

Bullboard Posts
Comment by bob4977on Mar 01, 2013 6:42pm
310 Views
Post# 21065156

RE: RE: Deal with Vale SA

RE: RE: Deal with Vale SA

Good point Matgirl. The only risk is that if anything were to wrong with the deal we would still owe money on the loan we took out. I am not slagging the deal nor am I seriously suggesting that there is a serious risk of default. I am just pointing out that if SLW borrows instead of issuing shares there are risks attached to that. That said the risk is pretty minimal and I trust your numbers are accurate.

One thing on the news release was that there were 2 parts to the SLW loan, one of them being bridge financing. I was guessing they plan to issue shares to pay off that part of the loan but was not sure of that. They might want to wait for a more favourable share price for something like that.

Bob

Bullboard Posts