Silver Wheaton Corp (SLW: 35.96 -0.69 -1.88%) is a pure play on silver mining with a unique business structure. The company has contracts with 5 different mines to purchase their silver production at a fixed contract price. These mines are in Mexico, Peru, Greece and Sweden are primarily mining another metal and silver is a by product of the mines primary operation.
Silver Wheaton has purchased the silver rights to these mines for upfront cash purchases, then have the right to buy silver at $3.90 per oz. The company has almost no overhead with 1/2 dozen employees and a structure to pay little or no taxes. All contracts are is U.S.$.
The company expects to sell Continue Reading »