Thursday, 7 February 2013

Silver Wheaton - $1.9bn Gold Streaming Deal with Vale

An interesting $1.9bn deal from Silver Wheaton, with significant diversification from primarily silver streaming into gold.

Here they join large established royalty and streaming companies Franco Nevada, Royal Gold and Sandstorm. 2012 saw ongoing strength in these companies as poor financing conditions saw excellent opportunities and terms for investment open to them.
Investors have liked the companies' exposure to growth in volumes but with no cost risk. As Pierre Lassonde of FNV has commented even low grade high cost operations which may make low returns to the mining company can make a consistent return for the royalty company or streamer so long as the mine breaks even and remains in production.
Article HERE

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