Loading ...Silver Wheaton saw its stock price jump almost 3% on Tuesday, following a report that the company will increase its goldstream from the Salobo mine in Brazil. The $800 million deal with a Vale subsidiary provides Silver Wheaton an additional 25% of output of gold equivalent over the mine’s life.
This latest acquisition will add to Silver Wheaton’s existing 50% of gold production from Salobo; Brazil’s largest known copper deposit. President and CEO of Silver Wheaton, Randy Smallwood, announced on Tuesday that; “We did not hesitate at the opportunity to increase our exposure to a mine with one of the lowest copper cash costs in the world, 50 years of mine life on reserves alone, and what we believe to be substantial exploration and expansion potential.”
The Vancouver based company has revised its production guidance to reflect the new stream. The forecast for 2016 has been upped to 305,000 ounces, while projected annual gold production over the coming 5 years is expected to reach an average of 330,000 ounces a year.
cont. http://www.mining.com/silver-wheaton-bullish-on-brazilian-gold-after-800-million-buy/