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SLW bought a silver stream from Hudbay recently to fund the Constancia mine; and I guess Hudbay doesn't even mind that, since to them they're just selling an afterthought byproduct.
Anyway, Silver Wheaton's CEO
1. He'd rather have silver ounces in the ground than money at bank right now;
2. He thinks Humala's actually done a pretty good job, and he's not scared of projects in Peru.
Also of interest: Hudbay asserts (in this other article here) that they've locked in a lot of construction work with fixed-price contracts to limit cost creep. Sounds like a good business plan! Hey, maybe Hudbay has good management?
Though I'd wonder whether a "locked-in price" really works out as such in Peru. They don't even work out that way in Canada. A Contractor (see, I capitalize it so those in the know will know immediately what business I work in) can, whenever he so wants, win 50-100% in cost over-runs. It's crazy simple to do. But maybe Peruvian contractors are naifs by comparison?
Yeah, the same way the Kuntur consortium won the South Peru gas pipeline contract by using a $1,5Bn construction budget in its project, but now says the thing will cost $5Bn to build.
ReplyDeleteLocked in prices. We love them there locked in prices.
Ah. Not naifs then.
ReplyDeleteBy the way, is that the best you can come up with for 'Randy Smallwood'? That name's just a-beggin' for some trite puerility, dude.
ReplyDeleteYeah, well, not all of us have the luxury of living in a non-litigable country.
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