- Wheaton Precious Metals ( NYSE: WPM ) said on Thursday that it agreed to end its so-called silver "streaming" deal with Glencore Plc on Peru's Yauliyacu mine for $150M, so that Glencore could divest the mine.
- Glencore had entered the Yauliyacu silver streaming transaction with Wheaton in 2006 for an upfront payment of $285M. Wheaton has since earned over $485M in cash flow from the stream, it said on Thursday.
- Combined with the termination payment, Wheaton will have generated an absolute return of over 220% of the original investment.
- Glencore currently owns and operates the Yauliyacu mine, which has been producing minerals for over 100 years.
- The ending of the silver stream is contingent on the global mining and trading giant selling the mine by the end of this year.
- Take a look at Wheaton Precious Metals Q2 earnings released last week .
- See recent reports from Seeking Alpha contributor Macrotips Trading, Wheaton Precious Metals: Superior Business Model and by Fun Trading, Wheaton Precious Metals: Salobo And Stillwater Underperformance .
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Wheaton Precious Metals to terminate existing silver stream on Yauliyacu Mine