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
TheStreet Open House

Silver Wheaton: Major Miners Are Knocking

Silver Wheaton: Major Miners are Knocking

Juniors take note — Silver Wheaton (TSX:SLW,NYSE:SLW) believes major miners are on the prowl for streaming contracts. That could make a tough financial environment even tougher.

“The mining industry is very, very hungry for capital right now and there are not a lot of sources out there,” Silver Wheaton CEO Randy Smallwood told Bloomberg.

His company is what some call an alternative source. And tough access to capital seems to be making its services more attractive.

What is a streaming company?

Silver Wheaton is the world's largest streaming company. For those unfamiliar with the business model, that means the company makes upfront payments to miners to help them to fund their projects and fulfill their capital needs. In return, those mining companies grant Silver Wheaton the right to purchase metal at a low fixed rate of about $4 an ounce for silver and $400 an ounce for gold.

“With early-stage juniors that have strong indications of a resource, we're willing to front them anywhere from $5 to $15 million. Instead of being an equity shareholder, we come in and give the cash up front and within 10 years we'll put that as a credit towards the silver stream,” Smallwood told Resource Investing News last year.

Major miners finding streaming attractive

Juniors miners are not the only companies showing interest in streaming agreements. Smallwood said major miners are also making proposals for funding.

“Doors that we've been knocking on for a long time, they are all of a sudden knocking on our door,” he told Bloomberg.

And if those miners come with an attractive enough deal, Silver Wheaton has shown that it is willing to answer the call.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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