Glencore signs $900m silver streaming deal with Silver Wheaton

The company has also reassured investors that its marketing segment is performing up to the mark and is expected to generate around $2.5-2.6 billion in adjusted EBIT in the fiscal year 2015.

Located 270 kilometres north of Lima, Antamina had produced 344,900 tonnes of copper, 211,000 tonnes of zinc, 3.1 million pounds of molybdenum and 12 million ounces of silver in 2014. The stock was acquired at an average price of C$15.96 per share, for a total transaction of C$126,084.00.

Silver Wheaton expects 2015 production to be 44.5 million silver equivalent ounces. As previously reported, the tax agency has reassessed Silver Wheaton’s returns for 2005 to 2010 and says the company owes more than $200-million (Canadian) on income earned outside of Canada.

Record attributable silver equivalent production in Q3 2015 of 11.0 million ounces (6.9 million ounces of silver and 54,500 ounces of gold), compared with 8.9 million ounces in Q3 2014, representing an increase of 24%. Besides the increase in production at Salobo, higher production from the Penasquito and San Dimas mines also boosted Q3 output.

$0.9bn raised from its first precious metals streaming transaction.

‘We do not suggest that highly indebted mining companies will become insolvent, but we do see situations where the value to current equity holders falls close to zero as such companies are forced to switch their focus to servicing debt as the cost of raising new equity becomes disproportionately high.

Silver Wheaton, the Vancouver-based silver trading company, said it is interested in agreeing further streaming deals with beleaguered Swiss miner Glencore Plc (LON:GLEN), following the $900 million deal signed earlier this week.

The CRA issue is well known and already built into the stock price. Moreover, debt is hard to come by for mining companies, most of which have highly leveraged balance sheets and are looking to deleverage.

Silver Wheaton Corp. (TSE:SLW) is a Canada-based mining company.

It said it would be using its share of production at the Antamina mine in Peru as a reference point to deliver silver from elsewhere across it portfolio.

Other streaming deals this year include Teck’s agreement to supply Royal Gold Inc. with gold from a Chilean mine and Barrick Gold Corp.’s pact to supply Royal Gold with gold and silver from a mine in the Dominican Republic. The Company is engaged in pure precious metals and produces its revenues from the sale of silver and gold. The company management has filed a notice of objection with the CRA pertaining to the reassessment and stated that it is confident of getting a favorable ruling. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.