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Cube Psytech Holdings Inc. T.P


Primary Symbol: P.CUUB

Cube Psytech intends to trade on the Canadian Security Exchange. There is no date set for the closing of their Initial Public Offering at this time.


P.CUUB - Post by User

Post by the_ocotilloon Aug 29, 2017 11:07am
310 Views
Post# 26632288

Hasn't Wheaton been compensated enough already?

Hasn't Wheaton been compensated enough already?There are some interesting quotes in the Northern Miner article that was posted by Ridgeback, Primero CFO Kevin said the Wheaton agreement is equivalent to a 39% net smelter returns (NSR) royalty on the project, which he noted was “probably one of the largest streams in the industry. Joseph Conway is quoted as saying, “Many of the proposals we’ve seen have been based on a reduced silver streaming arrangement on the asset, and [Wheaton Precious Metals] has noted publicly they’d be interested in reducing the stream in return for appropriate compensation.”

Appropriate compensation? Really?!? From the last Wheaton financial report, "As at June 30, 2017, the Company has received approximately 77.4 million ounces of silver related to San Dimas under the agreement, generating cumulative operating cash flows of approximately $1.1 billion..."  I would say Wheaton has been compensated enough already. I would rather see Primero declare bankruptcy before they consider giving any more "appropriate compensation" to Wheaton or be forced to sell the mine at a firesale price. Especially if the purchaser enjoys a fairer streaming agreement rather than the current usury one, which is defined by Wikipedia as " the practice of making unethical or immoral monetary loans that unfairly enrich the lender". Over a billion to the lender while Primero is stuck with the tax bill on a depleted asset and faces bankruptcy, sounds rather usury to me.
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