Silver Wheaton Reports Record Operating and Financial Results in 2010; Production Increased 37% With Operating Cash Flows Almost Doubling
By Silver Wheaton Corp., PRNEWednesday, March 2, 2011
VANCOUVER, British Columbia, March 3, 2011 - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX: SLW)
(NYSE: SLW) is pleased to announce its unaudited results for the fourth
quarter and the year ended December 31, 2010.
FOURTH QUARTER HIGHLIGHTS (3 Months)
The Company had record quarterly net earnings, operating cash flows,
attributable production and sales, as follows:
- Net earnings more than doubled to US$123.0 million (US$0.35 per share)
compared with US$50.8 million (US$0.15 per share) in 2009.
- Operating cash flows increased 76% to US$124.7 million (US$0.36 per
share)(1) compared with US$71.0 million (US$0.21 per share)(1) in 2009.
- Attributable silver equivalent production of 6.3 million ounces (6.1
million ounces of silver and 4,100 ounces of gold), representing an
increase of 10% over the comparable period in 2009.
- Silver equivalent sales of 5.7 million ounces (5.5 million ounces of
silver and 2,600 ounces of gold), representing an increase of 11% over
the comparable period in 2009.
- Total cash costs were US$4.02(1) per silver equivalent ounce, compared
with US$4.04(1) per ounce in 2009.
- Cash operating margin(1) increased 64% compared to 2009, to a record
US$22.42 per silver equivalent ounce, while average silver prices over
the same period increased by 50%.
- Acquired 3.0 million common shares of Bear Creek Mining Corporation for
total consideration of C$19.1 million. At December 31, 2010, Silver
Wheaton owned 13.3 million common shares of Bear Creek representing
approximately 14% of the outstanding shares on an undiluted basis.
2010 HIGHLIGHTS (12 Months)
The Company had record annual net earnings, operating cash flows,
attributable production and sales, as follows:
- Net earnings more than doubled to US$290.1 million (US$0.84 per share)
compared to US$117.9 million (US$0.39 per share) in 2009.
- Operating cash flows increased 93% to US$319.8 million (US$0.93 per
share)(1) compared to US$165.9 million (US$0.54 per share)(1) in 2009.
- Attributable silver equivalent production of 23.9 million ounces (22.1
million ounces of silver and 28,800 ounces of gold), representing an increase
of 37% compared to 2009.
- Silver equivalent sales of 20.5 million ounces (18.9 million ounces of
silver and 25,900 ounces of gold), representing an increase of 29% compared
to 2009.
- Total cash costs were US$4.04(1) per silver equivalent ounce, compared
with US$4.03(1) per ounce in 2009.
- Cash operating margin(1) increased 50% compared to 2009, to a record
US$16.63 per silver equivalent ounce, while average silver prices over the
same period increased by 38%.
- As at December 31, 2010, approximately 2.4 million payable silver
equivalent ounces attributable to the Company have been produced at the
various mines and will be recognized in future sales as they are delivered to
the Company under the terms of their contracts.
- Acquired an amount equal to 100% of the life of mine silver and gold
production from Augusta Resource Corporation's Rosemont Copper project in the
United States. Once production commences, Rosemont is forecast to increase
Silver Wheaton's long-term annual production by approximately 2.4 million
ounces of silver, plus any gold production, estimated by Augusta to average
up to 15,000 ounces of gold per annum.
- Converted the debenture with Pan American Silver Corp. into an
agreement to acquire an amount equal to 12.5% of the life of mine silver
production from the Loma de La Plata zone of the Navidad project located in
Argentina. Navidad is forecast to increase Silver Wheaton's long-term annual
silver production by up to 2 million ounces.
- Acquired 1.8 million units of Ventana Gold Corp. for total
consideration of C$20.7 million (US$19.8 million). As part of this
transaction, Silver Wheaton has been granted a right of first refusal over
any silver streams relating to Ventana's Colombian properties, including the
highly prospective La Bodega project, which has the potential to host a
world-class gold deposit with significant silver by product credits.
- Goldcorp completed the sale of the San Dimas mine to Primero Mining
Corp. In conjunction with the sale, Silver Wheaton amended its silver
purchase agreement relating to the mine. The term of the agreement, which was
set to expire in 2029, was extended to the life of mine. During the first
four years following closing of the transaction, Primero will deliver to
Silver Wheaton a per annum amount equal to the first 3.5 million ounces of
payable silver produced at San Dimas and 50% of any excess, plus Silver
Wheaton will receive an additional 1.5 million ounces of silver per annum to
be delivered by Goldcorp. Beginning in the fifth year after closing, Primero
will deliver to the Company a per annum amount equal to the first 6 million
ounces of payable silver produced at San Dimas and 50% of any excess. Primero
has provided Silver Wheaton with a right of first refusal on any metal stream
or similar transaction it enters into.
- Goldcorp Inc. announced that its world-class gold-silver-lead-zinc
Penasquito mine achieved commercial production, on schedule, with peak
throughput rates as high as 105,000 tonnes per day. The ramp up to full
production capacity of 130,000 tonnes per day is anticipated by the end of
the first quarter of 2011. Annual production attributable to Silver Wheaton
from the mine is expected to average approximately 7 million ounces of silver
over the estimated 22 year mine life.
- Barrick Gold Corporation's world-class gold-silver Pascua-Lama project
is forecast to commence production in the first half of 2013, with detailed
engineering and procurement nearing completion and earthworks well underway.
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 five years of operation, Silver Wheaton's attributable
silver production is expected to average 9 million ounces annually.
———————-
(1) Refer to discussion on non-GAAP measures at the end of this press
release.
"2010 was a tremendously successful year, with the Company setting new
records on all financial and operating metrics. In just six years, Silver
Wheaton has grown its market capitalization to in excess of US$15 billion,
and has more silver reserves than any silver company in the world," said
Peter Barnes, Chief Executive Officer of Silver Wheaton. "We were especially
pleased that the production ramp up at the first of our cornerstone assets,
Goldcorp's world-class Penasquito mine in Mexico, exceeded expectations and
contributed to Silver Wheaton's peer-leading 37% annual production growth.
This was particularly timely as silver prices climbed to 30 year highs which
resulted in record quarterly and annual results."
"This momentum is expected to continue into 2011, with forecast
production growth of another 15%, which will result in operating cash flows
of over US$700 million at current metal prices. Production growth over the
next five years is forecast at approximately 80%, which represents one of the
strongest growth profiles in the precious metals industry and is driven by
the continued ramp up at Penasquito and the forecast 2013 production start at
Barrick's world-class Pascua-Lama project."
"To supplement our growth in 2014 and beyond, important transactions were
completed in 2010. These include a life-of-mine precious metals purchase
agreement relating to the Rosemont project in Arizona and converting a
debenture allowing us to acquire a portion of the life-of-mine silver
production from the Loma de La Plata zone of the Navidad project in
Argentina. Combined, these projects are forecast to increase our long-term
silver equivalent production by up to 5 million ounces per annum, once in
production. We also acquired a right of first refusal on all future silver
streams from one of the most exciting gold discoveries in the last decade,
the La Bodega project in Colombia, and amended the silver purchase agreement
relating to the San Dimas mine in Mexico, which should result in lasting
benefits to our shareholders, including the potential for increased silver
production."
"With cash on hand of over US$428 million, a fully undrawn US$400 million
revolving credit facility and strong cash flows from operations, we remain
exceptionally well-positioned to continue growing our silver stream
portfolio. Merger and acquisition activity in the mining industry is
anticipated to remain robust in 2011, and Silver Wheaton continues to offer
an attractive mainstream financing solution to assist companies in achieving
their growth goals."
2011 and Five Year Silver Equivalent Production Forecast
The Company estimates, based upon its current agreements, to have 2011
attributable production of 27 to 28 million silver equivalent ounces,
including 15,000 ounces of gold. This represents a 15% increase compared to
2010. Total cash costs in 2011 are anticipated to be approximately US$4 per
silver equivalent ounce, unchanged from 2010. By 2015, based upon its current
agreements, annual attributable production is anticipated to increase by 80%
to approximately 43 million silver equivalent ounces, including 35,000 ounces
of gold. Attributable mine-by-mine actual 2010 production and forecast 2011
production are as follows:
Attributable Production
2010 2011
Actual(2) Forecast
Silver ounces produced (000's)
Penasquito 3,792 6,800
San Dimas(3) 5,157 5,700
Barrick(4) 2,617 3,600
Yauliyacu 2,713 2,600
Zinkgruvan 1,801 1,800
Cozamin 1,403 1,700
Other(5) 4,608 4,550
22,091 26,750
Gold ounces produced
(000's in silver equivalent)(6)
Minto 1,774 750
Silver equivalent ounces produced (000's) 23,865 27,500
1) Ounces produced represent the quantity of silver and gold contained in
concentrate or dore prior to smelting or refining deductions.
2) Certain production figures are based on management estimates.
3) Production includes 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.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
5) 2010 attributable production includes the Los Filos, San Martin, La
Negra, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto and Campo Morado
silver interests. 2011 forecast attributable production includes the Los
Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado
and Aljustrel silver interests. 6) The Minto mine produced 28,795 oz of gold
in 2010 and is forecast to produce approximately 15,000 oz of gold in 2011.
Webcast and Conference Call Details
A conference call will be held Friday, March 4, 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 Canada or the US: 1-888-231-8191
Dial from outside Canada or the US: 1-647-427-7450
Pass code: 37642529
Live audio webcast: www.silverwheaton.com
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:
Dial toll free from Canada or the US: 1-800-642-1687
Dial from outside Canada or the US: 1-416-849-0833
Pass code: 37642529
Archived audio webcast: www.silverwheaton.com
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world.
Based upon its current agreements, forecast 2011 attributable production is
27 to 28 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 Penasquito mine
and Barrick's Pascua-Lama project.
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 and reserve conversion
rates. 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.
Summarized Financial Results (unaudited)
Years Ended December 31
2010 2009 2008
Silver equivalent production (1)
Attributable silver ounces produced 22,091 16,263 11,915
(000's)
Attributable gold ounces produced 28,795 18,021 -
Attributable silver equivalent 23,865 17,395 11,915
ounces produced (000's) (1)
Silver equivalent sales (1)
Silver ounces sold (000's) 18,878 14,744 11,137
Gold ounces sold 25,884 17,132 -
Silver equivalent ounces sold 20,483 15,823 11,137
(000's) (1)
Average realized price ($'s per
ounce)
Average realized silver price $ 20.75 $ 15.02 $ 14.97
Average realized gold price $ 1,224.46 $ 1,041.92 n/a
Average realized silver equivalent $ 20.67 $ 15.13 $ 14.97
price
Average cash cost ($'s per ounce) (2)
Average silver cash cost $ 3.97 $ 3.97 $ 3.94
Average gold cash cost $ 300.00 $ 300.00 n/a
Average silver equivalent cash cost $ 4.04 $ 4.03 $ 3.94
Total revenue ($000's) $ 423,353 $ 239,293 $ 166,719
Net earnings ($000's) $ 290,093 $ 117,924 $ 17,252
Earnings per share
Basic $ 0.84 $ 0.39 $ 0.07
Diluted $ 0.83 $ 0.38 $ 0.07
Cash flow from operations ($000's) $ 319,761 $ 165,932 $ 111,142
Total assets ($000's) $ 2,635,069 $ 2,237,224 $1,270,646
Total liabilities ($000's) $ 373,120 $ 513,299 $ 382,621
Total shareholders' equity ($000's) $ 2,261,949 $ 1,723,925 $ 888,025
1) 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.
2) Refer to discussion on non-GAAP measures.
Consolidated Statement of Operations (unaudited)
Years Ended December 31
(US dollars and shares in thousands, 2010 2009 2008
except per share amounts)
Sales $ 423,353 $ 239,293 $ 166,719
Cost of sales 82,749 63,715 43,890
Depletion 57,571 41,156 19,491
140,320 104,871 63,381
Earnings from operations 283,033 134,422 103,338
Expenses and other income
General and administrative (1) 24,669 17,288 17,476
(Gain) loss on long-term investments (10,719) (335) 65,066
held
Other (income) expense (7,410) (455) 631
6,540 16,498 83,173
Earnings before tax 276,493 117,924 20,165
Future income tax recovery (expense) 13,600 - (2,913)
Net earnings $ 290,093 $ 117,924 $ 17,252
Basic earnings per share $ 0.84 $ 0.39 $ 0.07
Diluted earnings per share $ 0.83 $ 0.38 $ 0.07
Weighted average number of shares
outstanding
Basic 344,288 306,040 232,855
Diluted 350,429 309,500 249,244
1) Stock based compensation (a $ 7,732 $ 4,010 $ 5,530
non-cash item) included in general and
administrative
Consolidated Balance Sheets (unaudited)
December 31 December 31
(US dollars in thousands) 2010 2009
Assets
Current
Cash and cash $ 428,636 $ 227,566
equivalents
Accounts receivable 7,088 4,881
Other 727 1,027
Total current 436,451 233,474
assets
Long-term investments 284,448 73,747
Silver and gold interests 1,912,877 1,928,476
Other 1,293 1,527
Total assets $ 2,635,069 $ 2,237,224
Liabilities
Current
Accounts payable $ 1,148 $ 5,397
Accrued liabilities 8,381 4,578
Current portion of bank 28,560 28,560
debt
Current portion of silver 133,243 130,788
interest payments
Total current 171,332 169,323
liabilities
Future income tax 822 -
liability
Long-term portion of bank debt 78,620 107,180
Long-term portion of silver 122,346 236,796
interest payments
Total 373,120 513,299
liabilities
Shareholders' Equity
Issued capital and contributed 1,449,351 1,333,191
surplus
Retained earnings 633,927 343,834
Accumulated other comprehensive 178,671 46,900
income
Total retained earnings and 812,598 390,734
accumulated other comprehensive
income
Total shareholders' 2,261,949 1,723,925
equity
Total liabilities and $ 2,635,069 $ 2,237,224
shareholders' equity
Consolidated Statement of Cash Flows (unaudited)
Years Ended December 31
(US dollars in 2010 2009 2008
thousands)
Operating Activities
Net earnings $ 290,093 $ 117,924 $ 17,252
Items not affecting
cash
Depreciation and 57,839 41,413 19,491
depletion
Stock based 7,732 4,010 5,530
compensation
(Gain) loss on (10,719) (335) 65,066
long-term investments
held
Gain on disposal of (5,911) - -
silver purchase
agreement
Future income tax (13,600) - 2,913
(recovery) expense
Other (3,664) 967 398
Change in non-cash (2,009) 1,953 492
operating working
capital
Cash generated by operating 319,761 165,932 111,142
activities
Financing Activities
Bank debt drawn down - 140,200 198,500
Bank debt repaid (28,560) (382,260) (240,560)
Shares issued - 517,955 -
Share issue costs (85) (22,117) (1,939)
Share purchase warrants 76,093 13,779 115,796
exercised
Share purchase options 32,335 8,776 2,667
exercised
Cash generated by financing 79,783 276,333 74,464
activities
Investing Activities
Silver and gold (172,400) (220,644) (184,532)
interests
Acquisition of (201) 2,281 -
Silverstone Resources
Corp., net of cash
acquired
Long-term investments (54,107) - -
Proceeds on disposal of 25,000 - -
silver purchase
agreement
Other 383 (2,849) (4,348)
Cash applied to investing (201,325) (221,212) (188,880)
activities
Effect of exchange rate 2,851 (597) 419
changes on cash and cash
equivalents
Increase (decrease) in cash 201,070 220,456 (2,855)
and cash equivalents
Cash and cash equivalents, 227,566 7,110 9,965
beginning of year
Cash and cash equivalents, $ 428,636 $ 227,566 $ 7,110
end of year
Summary of Ounces Produced and Sold (unaudited)
2010
(in thousands) Q4 Q3 Q2 Q1
Silver ounces produced
San Dimas (3) 1,586 1,255 1,110 1,206
Zinkgruvan 428 508 478 387
Yauliyacu 651 633 692 737
Penasquito 1,260 1,109 866 557
Cozamin 335 381 286 401
Barrick (4) 458 682 697 780
Other (5) 1,352 1,069 1,240 947
6,070 5,637 5,369 5,015
Silver equivalent ounces of
gold produced (6)
Minto 205 402 522 645
Silver equivalent ounces 6,275 6,039 5,891 5,660
produced
Silver ounces sold
San Dimas (3) 1,438 1,274 1,076 1,206
Zinkgruvan 421 635 313 498
Yauliyacu 470 87 517 581
Penasquito 1,169 692 656 424
Cozamin 411 306 412 281
Barrick (4) 482 533 727 783
Other (5) 1,139 750 943 654
5,530 4,277 4,644 4,427
Silver equivalent ounces of
gold sold (6)
Minto 127 411 496 571
Silver equivalent ounces 5,657 4,688 5,140 4,998
sold
(table contines) 2009
(in thousands) Q4 Q3 Q2 Q1
Silver ounces produced
San Dimas (3) 1,275 1,232 1,264 1,323
Zinkgruvan 505 415 480 461
Yauliyacu 783 750 870 739
Penasquito 441 165 162 160
Cozamin 388 366 262 -
Barrick (4) 756 223 - -
Other (5) 1,068 829 787 559
5,216 3,980 3,825 3,242
Silver equivalent ounces of
gold produced (6)
Minto 471 233 428 -
Silver equivalent ounces produced 5,687 4,213 4,253 3,242
Silver ounces sold
San Dimas (3) 1,264 1,234 1,254 1,352
Zinkgruvan 357 433 469 451
Yauliyacu 1,027 698 546 743
Penasquito 191 190 130 135
Cozamin 359 384 213 -
Barrick (4) 751 187 - -
Other (5) 725 848 326 477
4,674 3,974 2,938 3,158
Silver equivalent ounces of
gold sold (6)
Minto 441 626 12 -
Silver equivalent ounces sold 5,115 4,600 2,950 3,158
1) Ounces produced represent the quantity of silver and gold contained in
concentrate or dore prior to smelting or refining deductions. As at
December 31, 2010, approximately 2.4 million payable silver equivalent
ounces attributable to the Company have been produced and the
respective payable ounces will be recognized in future sales as they
are delivered to the Company under the terms of their contracts.
2) Certain production figures are based on management estimates.
3) The ounces produced and sold during the third and fourth quarters of
2010 include 250,000 ounces and 375,000 ounces, respectively, 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.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
5) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
Neves-Corvo, Stratoni, Keno Hill, Minto and Campo Morado silver
interests.
6) 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.
Results of Operations (unaudited)
(US Year Ended
dollars) December 31,
2010
Average
realized
price
Ounces Ounces ($'s per
produced (3) sold Sales ounce)
Silver
San Dimas 5,157 4,994 $ 105,747 $ 21.18
Zinkgruvan 1,801 1,867 39,447 21.12
Yauliyacu 2,713 1,655 31,998 19.33
Penasquito 3,792 2,941 63,632 21.64
Cozamin 1,403 1,410 29,180 20.71
Barrick (5) 2,617 2,525 48,311 19.13
Other (6) 4,608 3,486 73,345 21.04
22,091 18,878 $ 391,660 $ 20.75
Gold
Minto 28,795 25,884 $ 31,693 $ 1,224
Silver 23,865 20,483 $ 423,353 $ 20.67
Equivalent
(7)
Corporate
23,865 20,483 $ 423,353 $ 20.67
(table continues)
(US dollars)
Total cash Total Cash flow
cost depletion from
($'s per ($'s per (used in)
ounce) (4) ounce) (4) Net earnings operations
Silver
San Dimas $ 4.04 $ 0.78 $ 81,659 $ 86,666
Zinkgruvan 4.04 1.71 28,697 30,178
Yauliyacu 3.98 3.47 19,669 25,418
Penasquito 3.90 2.54 44,683 52,163
Cozamin 4.03 4.62 16,987 23,252
Barrick (5) 3.90 3.55 29,498 36,787
Other (6) 3.92 4.49 44,010 58,182
$ 3.97 $ 2.73 $ 265,203 $ 312,646
Gold
Minto $ 300 $ 236 $ 17,830 $ 23,174
Silver Equivalent (7) $ 4.04 $ 2.81 $ 283,033 $ 335,820
Corporate 7,060 (16,059)
4.04 $ 2.81 $ 290,093 $ 319,761
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 dore prior to smelting or refining deductions.
3) Certain production figures are based on management estimates.
4) Refer to discussion on non-GAAP measures.
5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
6) Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo,
Stratoni, Keno Hill, Minto, Campo Morado and La Negra 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.
(US dollars) Year Ended
December 31,
2009
Average
realized
price
Ounces Ounces ($'s per
produced sold Sales ounce)
Silver
San Dimas 5,094 5,104 $ 75,371 $ 14.77
Zinkgruvan 1,861 1,710 25,569 14.95
Yauliyacu 3,142 3,014 44,829 14.87
Penasquito 928 646 9,398 14.55
Cozamin 1,016 956 15,005 15.70
Barrick (4) 979 938 16,000 17.06
Other (5) 3,243 2,376 35,271 14.82
16,263 14,744 $ 221,443 $ 15.02
Gold
Minto 18,021 17,132 $ 17,850 $ 1,042
Silver
Equivalent (6) 17,395 15,823 $ 239,293 $ 15.13
Corporate
17,395 15,823 $ 239,293 $ 15.13
(table continues)
(US dollars) Year Ended
December 31,
2009
Total
cash
cost
($'s Total Cash flow
per depletion Net from
ounce) ($'s per earnings (used in)
(3) ounce) (3) (loss) operations
Silver
San Dimas $ 4.02 $ 0.70 $ 51,266 $ 54,829
Zinkgruvan 4.02 1.78 15,645 19,066
Yauliyacu 3.93 3.47 22,520 32,980
Penasquito 3.90 2.35 5,357 6,878
Cozamin 4.00 4.71 6,686 12,186
Barrick (4) 3.90 3.56 9,004 15,578
Other (5) 3.91 4.12 16,163 25,488
$ 3.97 $ 2.46 $ 126,641 $ 167,005
Gold
Minto $ 300 $ 288 $ 7,781 $ 12,865
Silver
Equivalent
(6) $ 4.03 $ 2.60 $ 134,422 $ 179,870
Corporate (16,498) (13,938)
$ 4.03 $ 2.60 $ 117,924 $ 165,932
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 dore prior to smelting or refining deductions.
3) Refer to discussion on non-GAAP measures.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
5) Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo,
Stratoni, Minto, Campo Morado and La Negra silver interests.
6) 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.
(US Three Months
Dollars) Ended December
1, 2010
Average
realized
price
Ounces Ounces ($'s per
produced (3) sold Sales ounce)
Silver
San Dimas 1,586 1,438 $ 39,283 $ 27.33
Zinkgruvan 428 421 12,483 29.64
Yauliyacu 651 470 10,627 22.61
Penasquito 1,260 1,169 31,166 26.66
Cozamin 335 411 10,953 26.67
Barrick (5) 458 482 11,369 23.58
Other (6) 1,352 1,139 30,149 26.47
6,070 5,530 $ 146,030 $ 26.41
Gold
Minto 4,130 2,562 $ 3,547 $ 1,384
Silver 6,275 5,657 $ 149,577 $ 26.44
Equivalent
(7)
Corporate
6,275 5,657 $ 149,577 $ 26.44
(US Dollars)
Total
cash Total Cash flow
cost depletion from
($'s per ($'s per Net (used in)
ounce) (4) ounce) (4) earnings operations
Silver
San Dimas $ 4.05 $ 0.78 $ 32,351 $ 34,567
Zinkgruvan 4.05 1.69 10,062 10,600
Yauliyacu 3.98 3.47 7,124 8,756
Penasquito 3.90 2.54 23,634 26,607
Cozamin 4.04 4.62 7,396 8,729
Barrick (5) 3.90 3.61 7,749 10,890
Other (6) 3.92 4.81 20,207 24,452
$ 3.97 $ 2.81 $ 108,523 $ 124,601
Gold
Minto $ 300 $ 237 $ 2,172 $ 3,816
Silver $ 4.02 $ 2.86 $ 110,695 $ 128,417
Equivalent (7)
Corporate 12,277 (3,730)
$ 4.02 $ 2.86 $ 122,972 $ 124,687
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 dore prior to smelting or refining deductions.
3) Certain production figures are based on management estimates.
4) Refer to discussion on non-GAAP measures.
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 La Negra 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.
(US dollars) Three Months
Ended December
31, 2009
Average
realized
price
Ounces Ounces ($'s per
produced sold Sales ounce)
Silver
San Dimas 1,275 1,264 $ 22,380 $ 17.71
Zinkgruvan 505 357 6,547 18.32
Yauliyacu 783 1,027 17,948 17.48
Penasquito 441 191 3,293 17.24
Cozamin 388 359 6,334 17.66
Barrick (4) 756 751 12,991 17.31
Other (5) 1,068 725 12,916 17.80
5,216 4,674 $ 82,409 $ 17.63
Gold
Minto 7,500 7,033 $ 8,142 $ 1,158
Silver 5,687 5,115 $ 90,551 $ 17.70
Equivalent (6)
Corporate
5,687 5,115 $ 90,551 $ 17.70
Total
cash Total Cash flow
cost depletion Net from
($'s per ($'s per earnings (used in)
ounce) (3) ounce) (3) (loss) operations
Silver
San Dimas $ 4.04 $ 0.65 $ 16,449 $ 17,276
Zinkgruvan 4.03 1.78 4,470 6,273
Yauliyacu 3.94 3.47 10,337 13,899
Penasquito 3.90 2.35 2,098 2,548
Cozamin 4.00 4.72 3,207 4,569
Barrick (4) 3.90 3.59 7,373 13,299
Other (5) 3.91 4.27 6,978 9,795
$ 3.97 $ 2.77 $ 50,912 $ 67,659
Gold
Minto $ 300 $ 288 $ 4,008 $ 7,342
Silver $ 4.04 $ 2.93 $ 54,920 $ 75,001
Equivalent (6)
Corporate (4,109) (4,020)
$ 4.04 $ 2.93 $ 50,811 $ 70,981
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 dore prior to smelting or refining deductions.
3) Refer to discussion on non-GAAP measures.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
5) Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo,
Stratoni, Minto, Campo Morado and La Negra silver interests.
6) 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.
Non-GAAP Measures
Silver Wheaton has included, throughout this press release, certain
non-GAAP performance measures, including total cash costs of silver and gold
on a sales basis, as well as operating cash flows per share and cash
operating margin. These non-GAAP measures do not have any standardized
meaning prescribed by GAAP, nor are they necessarily comparable with similar
measures presented by other companies. Cash costs are presented as they
represent an industry standard method of comparing certain costs on a per
unit basis. Cash operating margin is defined as the realized selling price
less total cash cost per silver equivalent ounce. The Company believes that
certain investors use this information to evaluate the Company's performance.
The data 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 GAAP. During the year ended December 31, 2010,
the Company's total cash costs, which were equivalent to the Company's cost
of sales in accordance with GAAP, were $3.97 per ounce of silver and $300 per
ounce of gold (2009 - $3.97 per ounce of silver and $300 per ounce of gold).
For further information:
Brad Kopp
Vice President, Investor Relations
Silver Wheaton Corp.
Tel: 1-800-380-8687
Email: info@silverwheaton.com
Website: http;//www.silverwheaton.com
Brad Kopp, Vice President, Investor Relations, Silver Wheaton Corp.,
Tel: 1-800-380-8687, Email: info at silverwheaton.com
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