In the following video, Fool contributor Dan Caplinger explains the basics of the silver streaming business model that Silver Wheaton uses to contract with partner mining companies.
Dan also highlights a new agreement with Brazil's Vale as an example of a new partner streaming agreement that features a focus on gold. Can Silver Wheaton continue to profit from future agreements with partners such as Barrick Gold , Primaro Mining , and Hudbay Minerals ?
Dan discusses how the price of silver may affect Silver Wheaton's dividend, which is currently based on 20% of cash flow. And he also points out why the Federal Reserve's change in tone regarding future stimulus policy is a factor that investors should monitor closely.
If you're looking for a company whose success is determined by the metals market, but without involving itself in the risks of physically mining the metals, Silver Wheaton provides a unique play on the future of silver. SLW chooses to finance the mining of silver; it has grown sales and net income every year since 2008, and also has increased competitive advantages over its limited peer group. To learn more about Silver Wheaton, click here now to access The Motley Fool's premium research report on the company.
The article Silver Wheaton: 3 Areas to Focus On originally appeared on Fool.com.
Fool contributor Dan Caplinger owns shares of Silver Wheaton. The Motley Fool owns shares of Vale and Primero Mining. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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