Streaming Discount Based on U.S. current spot prices, here’s what the deal is worth to Wheaten in U.S dollars:
Platinum: 106,000 oz x $1,053 = $111,618,000
Gold: 158,000 oz x $2,006 = $316,948,000
Silver: 3,156,000 oz x $25.46 = $80,352,000
Total to Wheaton $508,918,000
Total to GENM $180,000,000
Profit to Wheaton. $328,918,000
Here are the spot prices and exchange rate in effect at the time GENM did the streaming deal:
Platinum: 106,000 oz x $ 991 = $105,046,000
Gold: 158,000 oz x $1,938 = $306,204,000
Silver: 3,156,000 oz x $24.80 = $78,269,,000
Total to Wheaton $489,519,000
Total to GENM $192,195,000
Profit to Wheaton. $297,324,000
When they did the deal, GENM took a 61% reduction from spot price. Of Course you have to discount the amount over time it will take to pay back Wheaton. The length of time until Wheaten is paid back is approximately 7 years (14 year mine life that includes 2 years for construction) so the discount rate was probably 8 or 9 percent per year.
Kerry in the last Renmark presentation said GENM might have to stream some copper if Gov’t loans don’t come thru. Based on the above, you would expect a streaming price to GENM of $1.56 per pound of copper.