Silver purchase agreements allow the Company rights to the silver production even though it is not the owner or operator of the mine. In the initial contract, the price for future production is pre-determined, ensuring costs are fixed. This allows Silver Wheaton to avoid variations in operational costs and overhead, long term liabilities and, most importantly, allows the Company to be 100% pure to silver.
Currently, there are three contracts in place: Luismin Mines in
Mexico, operated by Goldcorp Inc., Yauliyacu Mine in Peru, operated
by Glencore International AG and Zinkgruvan Mine in Sweden, operated
by Lundin Mining Corporation.