This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Silver Wheaton Management Presents At Bank Of America Merrill Lynch 18th Annual Mining Conference (Transcript)

Stocks in this article: SLW

That high quality portfolio of assets is highlighted by two cornerstone assets, one is the 25% life of mine silver stream that we have relative to GoldCorp’s Penasquito asset located in Mexico and the other one is the 25% life of mine silver stream relative to Barrick’s Pascua Lama operation which is currently being built in straddles Chile and Argentina. Penasquito is expected to deliver about 7 million ounces of silver production to Silver Wheaton’s account over the life of mine and has been operational since 2010, and the Pascua Lama mine is expected to have first production in the middle of 2014 and will deliver about 9 million ounces to Silver Wheaton’s account for the first five years of production. Until that time we receive 100% of the silver produced from three currently operating mines of Barrick’s, which generate about 2.5 million ounces of silver production for our account per year. Barrick recently announced that there was a delay in initial start-up of Pascua Lama by a year which doesn’t really negatively affect us at all because of the – we will continue to receive silver from these other three operating mines until Pascua Lama satisfies a completion test.

And we just recently added to our high quality portfolio of assets with the deal that we struck with Hudbay. It was announced in early August and it is a deal that involves us receiving 100% of the silver from the currently operating 777 mine and 100% of the gold from that mine until the later of 2016 or when Hudbay completes Constancia, which time the gold stream will drop down to 50%. We also obtained 100% of the life of mine silver production from Constancia, an asset under development in Peru. We are paying $750 million for those two streams, $500 million will be paid upon the closing which is imminent and $250 million will be paid in two tranches; the first tranche will be paid to Hudbay once they have invested $500 million into Constancia and the second tranche of $125 million will be made once Hudbay has invested $1 billion into Constancia. And Constancia’s estimated CapEx is about $1.5 billion currently and that includes 15% contingency. So we are quite comfortable with that CapEx figure.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs