Looks like Silver Wheaton struck it rich with its newest silver streaming agreement with Glencore. According to the deal, Silver Wheaton paid Glencore $900 million for future silver production from its share of its Antamina copper mine in Peru. Silver Wheaton receives silver from this Glencore deal at 20% of the silver spot price.
Which means, Silver Wheaton currently pays about $2.85 per silver ounce at the current market price of $14.26. That’s not a bad deal, especially when your cost is only 20%. I would imagine any of the primary silver mining companies would die to produce silver at a 20% cost.
Peru’s copper Antamina mine (picture), is owned by Glencore (33.75%), BHP Billiton (33.75%), Teck Resources (22.5%) and Mitsubishi Corporation (10%). It produced a third of Peru’s copper production in 2013.