Silver streaming

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CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)

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MoneyK

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Silver streaming

posted on Dec 12, 2020 10:23AM

Capstone Mining just signed a 150M deal with Wheaton for a silver stream.

Based on my calculations, one way to see it is that Wheaton is paying $15 US per ounce upfront for 10M ounces. This should take 12-15 years to reach. After that, they get 33% of the production (mine life) for almost nothing (10% of spot price).

That's 63% of the current silver spot price for the next 12-15 years + they have to pay another 10% of spot price at delivery. Capstone also plans to do the same with the gold at Santo Domingo for around $1060 US per ounce.

Imagine the financing options for Schaft Creek! In my opinion, if Teck would stream some gold at Schaft Creek to build the mine, they would only leave a couple hundred millions (NPV) on the table to keep 100% of the district.