Silver Wheaton Closes Deal With Hudbay To Ensure It Has A Robust Pipeline
Sunday, October 7, 2012 22:10
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by Trefis, Seeking Alpha:
Silver Wheaton (NYSE:SLW) has closed its previously announced deal with HudBay Minerals, Inc. It will buy Hudbay’s silver production from two of its mines along with some gold production from one of them for about $750 million, plus additional ongoing payments.
We think this deal will benefit Silver Wheaton in multiple ways. The increased availability of silver will allow it to leverage its unique business model to take further advantage of high silver prices in the market. The company’s business model insulates it from the rising cost of silver production as well as the downside resulting from lower production. In short, the deal provides significant upside as well as downside protection.
2012-10-07 22:05:56
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