Wednesday morning, a little after 7:00 am EST, and gold is down $3.60 for .26%, but silver is off considerably more, down $.18, for a nearly 1% decline. Let me bring you some intelligence on one more of our holdings, Silver Wheaton.

“Precious metals streaming company Silver Wheaton (NYSE: SLW) announced record gold production of 130,000 ounces in the first half of the year (70,000 for the quarter). Silver production was up about 5% year over year for the quarter, to 7.6 million ounces.

Revenue climbed 29% year over year to $212 million for the quarter – beating analyst estimates by $10 million. Operating cash flows are up 23% on the quarter to $134 million. The company indicated it would reward shareholders with a $0.05 per share quarterly dividend after the strong results.

And Silver Wheaton continues to add attractive assets. Earlier this month, the company announced a deal with base-metal miner Vale S.A. (VALE) to increase its gold stream from the Salobo mine in Brazil. Vale is desperate to pay down debt after declaring a $12 billion loss last year. For $800 million in upfront cash, Silver Wheaton will gain an additional 25% of the gold production for the life of the mine – for a total exposure of 75%.

The Salobo mine is the largest copper mine in Brazil and has an estimated mine life of at least 50 years. Gold production is expected to average around 300,000 ounces per year over the next five years. This acquisition adds another 3.2 million ounces to Silver Wheaton’s proven and probable reserves.

Silver Wheaton will finance the deal with cash on hand along with its $2 billion revolving credit facility. The deal takes effect immediately and increases the company’s 2016 gold production forecast by 40,000 ounces to 305,000 total ounces.”

Sounds like we’re holding an incredible winner in SLW, and so we do, with a near 100% gain in it already.

Here’s to your accumulation of real wealth!
Harold F Crowell


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