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Silver Wheaton's Golden Investment Turns to Lead

While Silver Wheaton (NYSE: SLW  ) remains one of the best-run companies in the silver sector, the company recently diversified by buying a series of gold streams. One of these gold streams was to come from Barrick Gold's (NYSE: ABX  ) Pascua-Lama mine that was recently delayed by roughly a year and a half due to cash concerns. While news for precious metals has been somewhat improved lately, particularly from the Federal Reserve, this is not great news for Silver Wheaton.

In the video below, contributor Doug Ehrman discusses the developments at Pascua-Lama and their ramifications for Silver Wheaton.

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Read/Post Comments (2) | Recommend This Article (6)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On July 17, 2013, at 3:41 PM, Maxwell0819 wrote:

    I think this is typical of not giving "all" of the info and helping make the market less stable by headlining only the alleged "bad" news. True, project delayed, true SLW is on the hook for 625M. HOwever, they could have gotten that back as true to form, they had a clause for investment recovery. However, they decided to extend the investment for an additional year. Why? The excellent management at SLW have still determined that the investment will be a major payoff, AND, most importantly, meanwhile, the gold they should have been getting has to be made up from other Barrick properties, AND, they could still get their investment back if another delay hits. For SLW, it is a WIN-Win-WIn. No loss current, and future still secured. Go SLW.

  • Report this Comment On July 19, 2013, at 7:59 AM, dummthum wrote:

    Well said Maxwell, Gold would have to fall below about $400, silver below $4 for SLW to actually lose money on most their contracts.

    SLW is poised to be a "profit machine' long into the future, Go Go Go SLW.

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Related Tickers

9/30/2016 4:01 PM
ABX $17.72 Down -0.22 -1.23%
Barrick Gold CAPS Rating: ***
SLW $27.03 Down -0.62 -2.24%
Silver Wheaton CAPS Rating: ****