Silver Wheaton: What to Focus On

A broad overview of this unique business model.

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The Motley Fool

In the following video, Fool contributor Dan Caplinger explains the basics of the silver streaming business model that Silver Wheaton  (TSX:SLW) uses to contract with partner mining companies.

Dan highlights a new agreement with Brazil’s Vale as an example of a partner streaming agreement that focuses on gold. Can Silver Wheaton continue to profit from future agreements with partners such as Barrick Gold (TSX:ABX), Primaro Mining, and Hudbay Minerals (TSX:HBM)?

In addition, the price of silver and its impact on Silver Wheaton’s dividend is also discussed.  The dividend is currently based on 20% of cash flow.

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An original version of this post appeared on Fool.com

Fool contributor Dan Caplinger owns shares of Silver Wheaton.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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