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Silver Wheaton Ups Brazilian Gold Production

Citation:世紀矿业信息网 Date:2016-8-5 17:40:46

Vancouver-based Silver Wheatons (TSX:SLW,NYSE:SLW) stock price jumped almost 3% on Tuesday on news of the upcoming increase in its gold stream from the Salobo mine in Brazil. The company has made a US$800 million deal with a Vale subsidiary that will increase its gold equivalent output by 25% over the mines life.


Silver Wheaton already takes 50% of Salobos gold production from Brazils largest known copper deposit. President and CEO Randy Smallwood says: We did not hesitate at the opportunity to increase our exposure to a mine with one of the lowest copper cash costs in the world, 50 years of mine life on reserves alone, and what we believe to be substantial exploration and expansion potential.


Silver Wheaton has revised its production guidance to reflect the new stream, upping its 2016 forecast to 305,000 ounces, while projecting average annual gold production over the next five years of 330,000 ounces a year.


Rising gold and silver prices have lifted Silver Wheaton shares in recent months. The deal will help Vale, under pressure from low iron ore prices and construction costs, to reduce its debt from US$27 to US$15 billion. Vale shares were also up on Tuesday following the news.