Silver Wheaton revenues and operating cash flows double in the third quarter
TSX: SLW
NYSE: SLW
VANCOUVER, Nov. 9, 2011 /CNW/ - Silver Wheaton Corp. ('Silver Wheaton' or the 'Company')
is pleased to announce its unaudited results for the third quarter ended September 30, 2011.THIRD QUARTER HIGHLIGHTS
------------------------------
-- Attributable silver equivalent production increased slightly
compared with Q3 2010, to 6.1 million ounces (5.9 million
ounces of silver and 5,100 ounces of gold).
-- Revenue doubled compared with Q3 2010, to US$185.2 million, on
silver equivalent sales of 5.1 million ounces (4.8 million
ounces of silver and 6,300 ounces of gold).
-- Net earnings increased 96% compared with Q3 2010 (on an
adjusted basis1), to US$135.0 million (US$0.38 per share).
-- Operating cash flows more than doubled compared with Q3 2010,
to US$167.2 million (US$0.47 per share1).
-- Cash operating margin1 more than doubled compared with Q3 2010,
to US$32.11 per silver equivalent ounce, demonstrating Silver
Wheaton's leverage to increasing silver prices.
-- Average cash costs of US$4.121 per silver equivalent ounce.
-- Quarter-end cash balance of US$715.6 million, with a net cash
position of US$629.9 million.
-- Third quarterly dividend for 2011 of US$0.03 per common share
was paid.
'Another quarter of increased silver equivalent sales, along with strong silver prices, produced solid financial results,' said Randy Smallwood, Silver Wheaton's President and Chief Executive Officer. 'During the quarter, several of our partners' mines continued their focus on ramping up silver production, including Goldcorp's Peñasquito mine, which had record throughput levels in the month of September. As a result, we remain confident of achieving our 2011 production guidance of between 25 and 26 million silver equivalent ounces.'
'The Company's operating cash flows more than doubled, despite sales continuing to lag production, which was primarily the result of concentrate inventory build-up at Glencore's Yauliyacu mine in Peru. However, in 2012, Glencore anticipates a more consistent schedule of concentrate deliveries, which should result in more regular silver deliveries to Silver Wheaton.'
'Our Company's ability to consistently deliver amongst the highest cash operating margins in the precious metals industry, a direct result of our model of essentially fixed operating cash costs, continues to result in significant cash flow generation, particularly in the current environment of strong silver prices. Cash flows will be used to continue making accretive silver stream acquisitions and to return capital to our shareholders in the form of sustainable dividend growth. To this end, we are pleased to have recently amended our dividend policy, which now links to operating cash flows, and has resulted in a tripling of our current dividend.'
'In recent months, the resurgence in global economic turmoil has resulted in tighter debt and equity markets, negatively impacting advanced exploration and development stage mining companies' access to project financing. Silver Wheaton is in a unique position to assist these companies with their growth goals by providing a value-enhancing source of capital through silver stream transactions. As such, our Corporate Development team continues to aggressively pursue high-quality and low-risk silver stream opportunities from around the globe, in order to further expand our sector leading production growth profile.'
Financial Review
Revenues
Revenue was US$185.2 million in the third quarter of 2011, on
silver equivalent sales of 5.1 million ounces (4.8 million
ounces of silver and 6,300 ounces of gold). This represents a
100% increase from the US$92.8 million in revenue generated
in the third quarter of 2010, due primarily to increases in
the average realized selling price of silver and gold of 87%
and 26%, respectively.
Costs and Expenses
Average cash costs in the third quarter of 2011 were US$4.121
per silver equivalent ounce, compared with US$4.091 during
the comparable period of 2010. This resulted in cash
operating margins1of US$32.11 per silver equivalent ounce, a
104% increase compared with the third quarter of 2010,
demonstrating Silver Wheaton's leverage to increasing silver
prices.
During the third quarter, the Company recorded a non-cash
deferred income tax expense of US$8.4 million, attributable
primarily to the reversal of previously recognized deferred
income tax assets relating to the decline in fair value of
long-term investments in common shares, and to a lesser
extent, income from Canadian operations.
Earnings and Operating Cash Flow
Net earnings in the third quarter of 2011 were US$135.0
million (US$0.38 per share), compared with adjusted net
earnings1 of US$68.9 million (US$0.20 per share) for the same
period in 2010, an increase of 96% (an increase of 90% on a
per share basis). Cash flow from operations in the third
quarter of 2011 was US$167.2 million (US$0.47 per share1),
compared with US$70.5 million (US$0.20 per share1) for the
same period in 2010, an increase of 137%. The increase in net
earnings and operating cash flow is primarily attributable to
increased selling prices of silver and gold.
Balance Sheet
At the end of the third quarter, the Company had
approximately US$716 million of cash on hand, after making a
scheduled upfront payment to Barrick of US$137.5 million,
relating to the Barrick silver stream agreement. In addition,
it had US$400 million of available credit under its revolving
bank debt facility. The cash and available credit, together
with strong operating cash flows, position the Company well
to execute on its growth strategy of acquiring additional
accretive silver stream interests.
Operational Highlights
Attributable silver equivalent production was 6.1 million ounces (5.9 million ounces of silver and 5,100 ounces of gold) in the third quarter of 2011, a slight increase compared to the third quarter of 2010. Operational highlights in the quarter are as follows:
Peñasquito -As per their October 26, 2011 disclosure,
Goldcorp Inc. continues to focus on ramping up metal
production at its world-class Peñasquito mine, with ore
grades and metalurgical recoveries as anticipated. The mine
remains on track to achieve its revised schedule of full
production capacity of 130,000 tonnes per day by the end of
the first quarter of 2012. Lower production was experienced
during July and August as sulphide plant modifications and
tests were completed. However, normal operating conditions in
September led to record weekly and monthly plant throughput
in excess of 100,000 tonnes per day.
Progress continued on the supplemental ore feed system in
order to ensure a sufficient quantity of pebble feed to the
high pressure grinding roll circuit. An additional project
underway to increase the height of the tailings dam proceeded
as planned. In conjunction with this project, additional
water supplies, required for the grinding and process plant,
were added to eliminate current and potential future water
shortfalls. Completion of these projects is the final step in
bringing the Peñasquito plant's throughput to its full design
capacity.
Pascua-Lama -As per Barrick Gold Corporation's October 27,
2011 disclosure, its world-class gold-silver Pascua-Lama
project remains on track to commence production in mid-2013,
with over 50% of the pre-production capital budget of $4.7 to
$5.0 billion committed. At the end of the third quarter,
earthworks in Chile and Argentina were approximately 80% and
60% complete, respectively. Once in production, Pascua-Lama
is forecast to be one of the largest and lowest cost gold
mines in the world with an expected mine life in excess of 25
years. In its first full five years of operation, Silver
Wheaton's attributable silver production is expected to
average 9 million ounces annually.
Zinkgruvan - As per Lundin Mining Corporation's October 26,
2011 disclosure, metal production, including silver, at its
Zinkgruvan mine was lower than expected due to technical
problems in the grinding mills at its zinc/lead plant.
Elevated vibrations experienced during the quarter were
controlled by reducing the zinc mill throughput, which in
turn led to lower than expected silver produced in
concentrate. Normal mill throughput rates are expected to
resume after the re‐setting of the girth gear in
October 2011.
Mineral Park - As per Mercator Minerals Ltd.'s October 4,
2011 disclosure, construction of the Phase II expansion to
50,000 tons per day was completed at its Mineral Park mine
during the third quarter of 2011. During the quarter, the
plant achieved peak throughput in excess of 60,000 tons per
day, averaging over 45,000 tons per day in the first 45 days
of commissioning.
Produced But Not Yet Delivered - Payable silver equivalent
ounces produced but not yet delivered to Silver Wheaton by
its partners increased by over 300,000 ounces in the third
quarter, resulting in a total of approximately 3.8 million
payable ounces at September 30, 2011. This was primarily due
to an increase in concentrate inventory at the Yauliyacu
mine, offset in part by reduced concentrate inventory levels
at the Peñasquito mine.
Since mid-2009, concentrate shipments from Glencore
International's ('Glencore') Yauliyacu mine have been
affected by the shut-down of the Doe Run La Oroya smelter in
Peru, previously the largest buyer of the bulk concentrate
produced at the mine. Since that time, Glencore has had to
make alternative smelting arrangements for its stockpiled
bulk concentrates at Yauliyacu. This has led to an
inconsistent delivery schedule, delaying the eventual
complete reduction of this bulk concentrate.
In the second quarter of 2011, Glencore began replacing the
bulk concentrate by producing separate, and more marketable,
copper and lead concentrates. The consistency and quantity of
these new concentrates has now stabilized, with more regular
silver deliveries to Silver Wheaton from the copper
concentrates expected in future quarters. Discussions between
Glencore and prospective offtakers for the new lead
concentrates are ongoing, however Glencore expects these
discussions to be finalized in early 2012.
As at September 30, 2011, approximately 1.8 million ounces of
cumulative payable silver equivalent ounces have been
produced at Yauliyacu but not yet delivered to Silver
Wheaton. Approximately 900,000 ounces are attributable to the
bulk concentrate, while 900,000 ounces are attributable to
the new copper and lead concentrates.
Detailed mine by mine production and sales figures can be found in the Appendix of this press release and in Silver Wheaton's MD&A in the 'Results of Operations and Operational Review' section.
Operational highlights do not include material updates for mines with which Silver Wheaton has a silver purchase agreement but where our partners have yet to report their quarterly results.
Webcast and Conference Call Details
A conference call will be held Wednesday, November 9, 2011, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:
Dial
toll
free
from
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or the
US:
Dial 1-888-231-8191
from 1- 647-427-7450
outside 11993265
Canada www.silverwheaton.com
or the
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Pass
code:
Live
audio
webcast:
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and you can listen to an archive of the call by one of the following methods:
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or the
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from 1-416-849-0833
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Archived
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About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 25 to 26 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Peñasquito mine and Barrick's Pascua-Lama project.
1. Silver Wheaton has included, throughout this document, certain
non-IFRS performance measures, including (i) average cash costs of
silver and gold on a per ounce basis; (ii) operating cash flows
per share (basic and diluted); (iii) cash operating margin and;
(iv) adjusted net earnings and adjusted net earnings per share.
i. Average cash cost of silver and gold on a per ounce basis
is calculated by dividing the cost of sales by the ounces
sold. In the precious metals mining industry, this is a
common performance measure but does not have any
standardized meaning. The Company believes that, in
addition to conventional measures prepared in accordance
with IFRS, certain investors use this information to
evaluate the Company's performance and ability to generate
cash flow.
ii. Cash operating margin is calculated by subtracting the
average cash cost of silver and gold on a per ounce basis
from the average realized selling price of silver and gold
on a per ounce basis. The Company presents cash operating
margin as it believes that certain investors use this
information to evaluate the Company's performance in
comparison to other companies in the precious metals
mining industry who present results on a similar basis.
iii. Operating cash flow per share (basic and diluted) is
calculated by dividing cash generated by operating
activities by the weighted average number of shares
outstanding (basic and diluted). The Company presents
operating cash flow per share as it believes that certain
investors use this information to evaluate the Company's
performance in comparison to other companies in the
precious metals mining industry who present results on a
similar basis.
iv. Adjusted net earnings and adjusted net earnings per share
are calculated by removing the effects of the non-cash,
fair value adjustment on the Company's previously issued
and outstanding share purchase warrants which had an
exercise price denominated in Canadian dollars from net
earnings of the Company. As more fully described in the
financial statements, these warrants are classified as a
financial liability with any fair value adjustments being
reflected as a component of net earnings. The Company
believes that, in addition to conventional measures
prepared in accordance with IFRS, the Company and certain
investors use this information to evaluate the Company's
performance. For the three months ended September 30,
2010, the net effect of these adjustments was to increase
net earnings by US$45.3 million. As there were no share
purchase warrants with an exercise price denominated in
Canadian dollars outstanding during 2011, there were no
fair value adjustments recorded as a component of net
earnings during the three months ending September 30,
2011. As a result, adjusted net earnings is equivalent to
net earnings for this period.
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS
measures is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as 'plans', 'expects' or 'does not expect', 'is expected', 'budget', 'scheduled', 'estimates', 'forecasts', 'intends', 'anticipates' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled 'Description of the Business - Risk Factors' in Silver Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
Condensed Interim Consolidated Statement of Operations (unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars and 2010 2011
shares in
thousands,
except per share
amounts -
unaudited) 2011 2010
Sales $ 185,195 $ 92,834 $ 538,130 $ 273,776
Cost of sales $ 21,036 $ 19,154 $ 61,983 $ 60,022
Depletion 13,647 12,505 40,065 41,416
$ 34,683 $ 31,659 $ 102,048 $ 101,438
Earnings from
operations $ 150,512 $ 61,175 $ 436,082 $ 172,338
Expenses and
other income
General and
administrative
1 $ 6,311 $ 4,947 $ 19,065 $ 18,260
Loss on fair
value
adjustment of
Canadian
dollar share
purchase
warrants
issued - 45,276 - 76,378
Foreign
exchange gain (11) (505) (518) (687)
Other expense
(income) 787 (7,717) 4,139 (7,421)
$ 7,087 $ 42,001 $ 22,686 $ 86,530
Earnings before
tax $ 143,425 $ 19,174 $ 413,396 $ 85,808
Deferred income
tax (expense)
recovery (8,385) 4,497 (8,115) 3,674
Net earnings $ 135,040 $ 23,671 $ 405,281 $ 89,482
Basic earnings
per share $ 0.38 $ 0.07 $ 1.15 $ 0.26
Diluted earnings
per share $ 0.38 $ 0.07 $ 1.14 $ 0.26
Weighted average
number of shares
outstanding
Basic 353,327 344,253 353,165 343,168
Diluted 356,014 346,242 355,935 344,779
1) Equity
settled stock
based
compensation (a
non-cash item)
included in
general and
administrative
expenses. $ 1,700 $ 1,306 $ 4,769 $ 6,431
Condensed Interim Consolidated Balance Sheets (unaudited)
September December 31 January 1
30
(US dollars in 2011 2010 2010
thousands -
unaudited)
Assets
Current assets
Cash and $ 715,622 $ 428,636 $ 227,566
cash
equivalents
Accounts 11,743 7,088 4,881
receivable
Other 1,115 727 1,027
Total current $ 728,480 $ 436,451 $ 233,474
assets
Non-current
assets
Silver and $ 1,886,235 $ 1,912,877 $ 1,928,476
gold
interests
Long-term 140,667 284,448 73,747
investments
Deferred 3,787 - -
income
taxes
Other 1,506 1,607 1,852
Total $ 2,032,195 $ 2,198,932 $ 2,004,075
non-current
assets
Total assets $ 2,760,675 $ 2,635,383 $ 2,237,549
Liabilities
Current
liabilities
Accounts $ 15,291 $ 9,843 $ 10,302
payable and
accrued
liabilities
Current 28,560 28,560 28,560
portion of
bank debt
Current 128,625 133,243 130,788
portion of
silver
interest
payments
Total current $ 172,476 $ 171,646 $ 169,650
liabilities
Non-current
liabilities
Deferred $ - $ 822 $ -
income
taxes
Liability - - 51,967
for
Canadian
dollar
share
purchase
warrants
Long-term 57,200 78,620 107,180
portion of
bank debt
Long-term - 122,346 236,796
portion of
silver
interest
payments
Total $ 57,200 $ 201,788 $ 395,943
non-current
liabilities
Total $ 229,676 $ 373,434 $ 565,593
liabilities
Shareholders'
Equity
Issued capital $ 1,814,434 $ 1,801,786 $ 1,497,095
and contributed
surplus
Retained 722,091 344,075 190,865
earnings
Long-term (5,526) 116,088 (16,004)
investment
revaluation
reserve (net of
tax)
Total $ 2,530,999 $ 2,261,949 $ 1,671,956
shareholders'
equity
Total $ 2,760,675 $ 2,635,383 $ 2,237,549
liabilities and
shareholders'
equity
Condensed Interim Consolidated Statement of Cash Flows (unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars in 2011 2010 2011 2010
thousands -
unaudited)
Operating
Activities
Net earnings $ 135,040 $ 23,671 $ 405,281 $ 89,482
Items not
affecting cash
Depreciation 13,709 12,573 40,266 41,615
and
depletion
Equity 1,700 1,306 4,769 6,431
settled
stock based
compensation
Deferred 8,385 (4,497) 8,115 (3,674)
income tax
expense
(recovery)
Loss on fair
value
adjustment
of Canadian
dollar share
purchase
warrants
issued - 45,276 - 76,378
Loss on fair 597 (7,861) 3,380 (8,094)
value
adjustment
of share
purchase
warrants
held
Other expense 703 (1,252) 392 (729)
(income)
Change in 7,113 1,269 543 (6,334)
non-cash
operating
working
capital
Cash generated $ 167,247 $ 70,485 $ 462,746 $ 195,075
by operating
activities
Financing
Activities
Bank debt $ (7,140) $ (7,140) $ (21,420) $ (21,420)
repaid
Share issue - - - (85)
costs
Share purchase - 5,017 61 6,022
warrants
exercised
Share purchase 2,756 8,579 7,818 26,881
options
exercised
Dividends paid (10,603) - (31,797) -
Cash (applied $ (14,987) $ 6,456 $ (45,338) $ 11,398
to) generated
by financing
activities
Investing
Activities
Silver and $ (137,755) $ (144,465) $ (141,013) $ (158,176)
gold interests
Long-term - (644) (13,674) (21,533)
investments
Proceeds on - - 24,270 -
disposal of
long-term
investments
Other (15) (10) (48) 195
Cash applied $ (137,770) $ (145,119) $ (130,465) $ (179,514)
to investing
activities
Effect of $ (218) $ 471 $ 43 $ 664
exchange rate
changes on
cash and cash
equivalents
Increase in $ 14,272 $ (67,707) $ 286,986 $ 27,623
cash and cash
equivalents
Cash and cash 701,350 322,896 428,636 227,566
equivalents,
beginning of
period
Cash and cash $ 715,622 $ 255,189 $ 715,622 $ 255,189
equivalents,
end of period
Interest paid $ 249 $ 486 $ 950 $ 1,253
Interest $ 242 $ 154 $ 634 $ 290
received
Results of Operations (unaudited)
Three Months Ended September 30, 2011
Average
Average cash
realized cost Average Cash flow
price (US$'s depletion Net from
Ounces (US$'s per (US$'s earnings (used in)
produced Ounces Sales per ounce) per (loss) operations
2 sold (US$'s) ounce) 3 ounce) (US$'s) (US$'s)
Silver
San Dimas 4 1,245 1,232 $ 42,567 $ 34.56 $ 4.07 $ 0.71 $ 36,675 $ 37,550
Zinkgruvan 379 319 12,168 38.15 4.08 1.69 10,326 12,406
Yauliyacu 608 11 454 41.31 4.02 5.02 355 410
Peñasquito 1,162 1,382 49,401 35.75 3.96 2.41 40,601 43,929
Cozamin 395 335 12,270 36.58 4.08 4.62 9,350 11,752
Barrick 5 794 747 28,681 38.42 3.90 3.60 23,081 25,770
Other 6 1,272 770 29,192 37.90 3.94 4.60 22,609 26,823
5,855 4,796 $ 174,733 $ 36.44 $ 3.99 $ 2.62 $ 142,997 $ 158,640
Gold
Minto 5,110 6,280 10,462 1,666 300 169 7,515 9,114
Silver
Equivalent7 6,112 5,112 $ 185,195 $ 36.23 $ 4.12 $ 2.67 $ 150,512 $ 167,754
Corporate
General and
administrative $ (6,311)
Other (9,161)
Total corporate $ (15,472) $ (507)
6,112 5,112 $ 185,195 $ 36.23 $ 4.12 $ 2.67 $ 135,040 $ 167,247
1) All figures in thousands except gold ounces produced and sold and
per ounce amounts.
2) Ounces produced represent the quantity of silver and gold
contained in concentrate or doré prior to smelting or refining
deductions and certain production figures are based on management
estimates.
3) Refer to discussion on non-IFRS measures at the end of this press
release.
4) Results for San Dimas include 375,000 ounces received from
Goldcorp in connection with Goldcorp's four year commitment to
deliver to Silver Wheaton 1.5 million ounces of silver per annum
resulting from their sale of San Dimas to Primero.
5) Comprised of the Lagunas Norte, Pierina and Veladero silver
interests.
6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni,
Keno Hill, Minto, Campo Morado and Aljustrel silver interests.
7) Gold ounces produced and sold are converted to a silver
equivalent basis on the ratio of the average silver price
received to the average gold price received during the period
from the assets that produce both gold and silver.
Three Months Ended September 30, 2010
Average
Average cash
realized cost Average Cash flow
price (US$'s depletion Net from
Ounces (US$'s per (US$'s earnings (used in)
produced Ounces Sales per ounce) per (loss) operations
2 sold (US$'s) ounce) 3 ounce) (US$'s) (US$'s)
Silver
San Dimas 4 1,255 1,274 $ 25,613 $ 20.11 $ 4.04 $ 0.78 $ 19,471 $ 20,468
Zinkgruvan 508 635 12,680 19.95 4.04 1.72 9,021 9,522
Yauliyacu 633 87 1,548 17.79 3.98 3.47 900 1,202
Peñasquito 1,109 692 12,980 18.76 3.90 2.54 8,521 10,281
Cozamin 381 306 5,825 19.06 4.04 4.62 3,177 4,868
Barrick 5 682 533 10,202 19.16 3.90 3.58 6,218 8,281
Other 6 1,069 750 14,561 19.42 3.93 4.46 8,268 11,085
5,637 4,277 $ 83,409 $ 19.51 $ 3.98 $ 2.53 $ 55,576 $ 65,707
Gold
Minto 6,961 7,127 9,425 1,323 300 237 5,599 5,972
SilverEquivalent7 6,039 4,688 $ 92,834 $ 19.81 $ 4.09 $ 2.67 $ 61,175 $ 71,679
Corporate
General and
administrative $ (4,947)
Loss on fair value adjustment of Canadian dollar share purchase warrants issued (45,276)
Other 12,719
Total corporate $ (37,504) $ (1,194)
6,039 4,688 $ 92,834 $ 19.81 $ 4.09 $ 2.67 $ 23,671 $ 70,485
1) All figures in thousands except gold ounces produced and sold and
per ounce amounts.
2) Ounces produced represent the quantity of silver and gold
contained in concentrate or doré prior to smelting or refining
deductions and certain production figures are based on management
estimates.
3) Refer to discussion on non-IFRS measures at the end of this press
release.
4) Results for San Dimas include 250,000 ounces received from
Goldcorp in connection with Goldcorp's four year commitment to
deliver to Silver Wheaton 1.5 million ounces of silver per annum
resulting from their sale of San Dimas to Primero.
5) Comprised of the Lagunas Norte, Pierina and Veladero silver
interests.
6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni,
Minto and Campo Morado silver interests in addition to the
previously owned La Negra and San Martin silver interests.
7) Gold ounces produced and sold are converted to a silver
equivalent basis on the ratio of the average silver price
received to the average gold price received during the period
from the assets that produce both gold and silver.
Nine Months Ended September 30, 2011
Average
Average cash
realized cost Average Cash flow
price (US$'s depletion Net from
Ounces (US$'s per (US$'s earnings (used in)
produced Ounces Sales per ounce) per (loss) operations
2 sold (US$'s) ounce) 3 ounce) (US$'s) (US$'s)
Silver
San Dimas 4 4,001 4,129 $ 143,736 $ 34.81 $ 4.05 $ 0.71 $ 124,059 $ 125,902
Zinkgruvan 1,301 1,041 39,437 37.88 4.08 1.69 33,427 35,316
Yauliyacu 1,965 602 21,641 35.95 4.01 5.02 16,205 19,226
Peñasquito 3,651 3,284 115,695 35.24 3.93 2.41 94,901 102,808
Cozamin 1,134 887 31,204 35.14 4.07 4.62 23,487 30,325
Barrick 5 2,257 2,153 77,781 36.12 3.90 3.58 61,685 67,826
Other 6 3,513 2,373 85,734 36.13 3.94 4.29 66,209 76,113
17,822 14,469 $ 515,228 $ 35.61 $ 3.98 $ 2.60 $ 419,973 $ 457,516
Gold
Minto 14,545 14,478 22,902 1,582 300 169 16,109 17,926
SilverEquivalent7 18,437 15,095 $ 538,130 $ 35.65 $ 4.11 $ 2.65 $ 436,082 $ 475,442
Corporate
General and
administrative $ (19,065)
Other (11,736)
Total corporate $ (30,801) $ (12,696)
18,437 15,095 $ 538,130 $ 35.65 $ 4.11 $ 2.65 $ 405,281 $ 462,746
1) All figures in thousands except gold ounces produced and sold and
per ounce amounts.
2) Ounces produced represent the quantity of silver and gold
contained in concentrate or doré prior to smelting or refining
deductions and certain production figures are based on management
estimates.
3) Refer to discussion on non-IFRS measures at the end of this press
release.
4) Results for San Dimas include 1,125,000 ounces received from
Goldcorp in connection with Goldcorp's four year commitment to
deliver to Silver Wheaton 1.5 million ounces of silver per annum
resulting from their sale of San Dimas to Primero.
5) Comprised of the Lagunas Norte, Pierina and Veladero silver
interests.
6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni,
Keno Hill, Minto, Campo Morado and Aljustrel silver interests.
7) Gold ounces produced and sold are converted to a silver
equivalent basis on the ratio of the average silver price
received to the average gold price received during the period
from the assets that produce both gold and silver.
Nine Months Ended September 30, 2010
Average
Average cash
realized cost Average Cash flow
price (US$'s depletion Net from
Ounces (US$'s per (US$'s earnings (used in)
produced Ounces Sales per ounce) per (loss) operations
2 sold (US$'s) ounce) 3 ounce) (US$'s) (US$'s)
Silver
San Dimas 4 3,571 3,556 $ 66,463 $ 18.69 $ 4.04 $ 0.78 $ 49,308 $ 52,099
Zinkgruvan 1,373 1,446 26,964 18.64 4.04 1.72 18,635 19,578
Yauliyacu 2,062 1,185 21,372 18.04 3.98 3.47 12,545 16,662
Peñasquito 2,532 1,772 32,466 18.32 3.90 2.54 21,050 25,556
Cozamin 1,068 999 18,226 18.26 4.03 4.62 9,590 14,524
Barrick 5 2,159 2,043 36,942 18.08 3.90 3.54 21,749 25,896
Other 6 3,256 2,347 43,197 18.40 3.92 4.34 23,803 33,730
16,021 13,348 $ 245,630 $ 18.40 $ 3.97 $ 2.69 $ 156,680 $ 188,045
Gold
Minto 24,665 23,321 28,146 1,207 300 235 15,658 19,357
Silver
Equivalent7 17,590 14,826 $ 273,776 $ 18.47 $ 4.05 $ 2.79 $ 172,338 $ 207,402
Corporate
General and
administrative $ (18,260)
Loss on fair value adjustment of Canadian dollar share purchase warrants issued (76,378)
Other 11,782
Total corporate $ (82,856) $ (12,327)
17,590 14,826 $ 273,776 $ 18.47 $ 4.05 $ 2.79 $ 89,482 $ 195,075
1) All figures in thousands except gold ounces produced and sold and
per ounce amounts.
2) Ounces produced represent the quantity of silver and gold
contained in concentrate or doré prior to smelting or refining
deductions and certain production figures are based on management
estimates.
3) Refer to discussion on non-IFRS measures at the end of this press
release.
4) Results for San Dimas include 1,000,000 ounces received from
Goldcorp in connection with Goldcorp's four year commitment to
deliver to Silver Wheaton 1.5 million ounces of silver per annum
resulting from their sale of San Dimas to Primero.
5) Comprised of the Lagunas Norte, Pierina and Veladero silver
interests.
6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni,
Minto and Campo Morado silver interests in addition to the
previously owned La Negra and San Martin silver interests.
7) Gold ounces produced and sold are converted to a silver
equivalent basis on the ratio of the average silver price
received to the average gold price received during the period
from the assets that produce both gold and silver.
Silver Wheaton Corp.
CONTACT: Brad Kopp
Senior Vice President, Investor Relations
Silver Wheaton Corp.
Tel: 1-800-380-8687
Email: info@silverwheaton.com
Website: www.silverwheaton.com
