Silver Wheaton Reports Record Quarterly Earnings
By Silver Wheaton Corp., PRNESunday, November 7, 2010
VANCOUVER, November 9, 2010 - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE: SLW)
is pleased to announce its unaudited results for the third quarter ended
September 30, 2010.
THIRD QUARTER HIGHLIGHTS
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- Net earnings more than doubled to a record US$69.2 million (US$0.20
per share), compared with US$33.6 million (US$0.11 per share) in
2009.
- Operating cash flows increased 55% to US$70.5 million (US$0.20 per
share)(1), compared with US$45.4 million (US$0.14 per share)(1) in
2009.
- Record attributable silver equivalent production of 5.9 million
ounces (5.5 million ounces of silver and 7,000 ounces of gold),
representing an increase of 41% over the comparable period in 2009.
- Silver equivalent sales of 4.7 million ounces (4.3 million ounces of
silver and 7,100 ounces of gold), lagging production for the quarter
due primarily to the build-up of concentrate inventory as the
Penasquito mine ramps up production, as well as timing of concentrate
shipments from the Yauliyacu and Campo Morado mines.
- As at September 30, 2010, approximately 2.2 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.
- Total cash costs(1) of US$4.09 per silver equivalent ounce, compared
with US$4.08 per ounce in 2009.
- Cash operating margin(1) increased 42% compared to 2009, to a record
US$15.72 per silver equivalent ounce, while average silver prices
over the same period increased by 29%.
- Goldcorp Inc. announced that its world-class gold-silver-lead-zinc
Penasquito mine achieved commercial production during the quarter
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 early 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 Corp.'s world-class gold-silver Pascua-Lama project
remains on track to enter production in the first quarter of 2013,
with detailed engineering and procurement nearing completion and
earthworks 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.
- 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 silver
purchase agreement, which was set to expire in 2029, has been
extended to 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. Goldcorp will continue to guarantee the
delivery by Primero of all silver produced and owing to the Company
until 2029, and a payment of US$0.50 per ounce for any shortfall
below 215 million cumulative silver ounces delivered to Silver
Wheaton by the end of 2031. Primero has provided Silver Wheaton with
a right of first refusal on any metal stream or similar transaction
it enters into.
----------------------
(1) Refer to discussion on non-GAAP measures at the end of this press
release.
"Silver Wheaton had record production in the quarter, anchored by the
continued successful ramp up of one of our cornerstone growth assets,
Goldcorp's world-class Penasquito mine in Mexico," said Peter Barnes, Chief
Executive Officer of Silver Wheaton. "Penasquito reached commercial
production during the quarter and expects to achieve full production capacity
in early 2011, in what promises to be another year of significant production
growth for Silver Wheaton."
"While quarterly sales were lower than production, due in part to the
build-up of concentrate inventory as Penasquito ramps up production, as well
as the timing of shipments from the Yauliyacu and Campo Morado mines, we
still achieved record earnings. Increased shipments in the fourth quarter are
expected to make up for the sales shortfall and we remain on track to meet
production guidance of 23.5 million silver equivalent ounces in 2010, growing
to approximately 40 million ounces by 2013."
"In an environment of continued economic uncertainty, investment demand
for silver remains very strong, and silver prices approached 30 year highs in
the quarter. This resulted in record cash operating margins of US$15.72 per
ounce, generating strong free cash flows to fund future growth."
"Lastly, during the quarter, Goldcorp finalized the sale of its San Dimas
mine to Primero Mining, an emerging mid-tier gold producer. In conjunction
with this, Silver Wheaton amended its silver purchase agreement, which
continues to provide Silver Wheaton with a Goldcorp guarantee, extends the
agreement from a fixed term to life-of-mine and, most importantly,
incentivizes Primero Mining to increase silver production at this
high-quality, low-cost, mine. San Dimas remains a key asset within our
portfolio and we are confident that the amended silver purchase agreement
will create additional long term value for our stakeholders."
This earnings release should be read in conjunction with Silver Wheaton's
unaudited MD&A and Financial Statements, which are available on the Company's
website at www.silverwheaton.com and have been posted on SEDAR at
www.sedar.com.
A conference call will be held Tuesday, November 9, 2010, 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: 15809030
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: 15809030
Archived audio webcast: www.silverwheaton.com
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world.
Forecast 2010 production, based upon its current agreements, is 22.0 million
ounces of silver and 28,000 ounces of gold, for total production of 23.5
million silver equivalent ounces. By 2013, annual production is anticipated
to increase significantly to approximately 40 million silver equivalent
ounces. 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.
Consolidated Statement of Operations (unaudited)
(US dollars and shares in Three Months Ended Nine Months Ended
thousands, except per September 30 September 30
share amounts - unaudited) 2010 2009 2010 2009
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Sales $ 92,834 $ 69,767 $ 273,776 $ 148,742
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Cost of sales 19,154 18,765 60,022 43,069
Depletion 12,505 13,164 41,416 26,170
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31,659 31,929 101,438 69,239
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Earnings from operations 61,175 37,838 172,338 79,503
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Expenses and other income
General and
administrative(1) 4,947 3,906 18,260 12,917
Gain on mark-to-market
of warrants held (7,861) - (8,094) (33)
Other (360) 366 (164) (496)
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(3,274) 4,272 10,002 12,388
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Earnings before tax 64,449 33,566 162,336 67,115
Future income tax recovery 4,785 - 4,785 -
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Net earnings $ 69,234 $ 33,566 $ 167,121 $ 67,115
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Basic earnings per share $ 0.20 $ 0.11 $ 0.49 $ 0.23
Diluted earnings per share $ 0.20 $ 0.11 $ 0.48 $ 0.23
Weighted average number
of shares outstanding
Basic 344,253 313,445 343,168 294,208
Diluted 350,361 317,431 348,469 297,936
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1) Stock based compensation
(a non-cash item) included
in general and
administrative $ 1,306 $ 623 $ 6,431 $ 3,312
Consolidated Balance Sheets (unaudited)
September 30 December 31
(US dollars in thousands - unaudited) 2010 2009
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Assets
Current
Cash and cash equivalents $ 255,189 $ 227,566
Accounts receivable 7,798 4,881
Other 924 1,027
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263,911 233,474
Long-term investments 155,122 73,747
Silver and gold interests 1,943,224 1,928,476
Other 1,368 1,527
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$ 2,363,625 $ 2,237,224
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Liabilities
Current
Accounts payable $ 1,398 $ 5,397
Accrued liabilities 4,606 4,578
Current portion of bank debt 28,560 28,560
Current portion of silver interest payments 145,317 130,788
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179,881 169,323
Long-term portion of bank debt 85,760 107,180
Long-term portion of silver interest payments 120,323 236,796
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385,964 513,299
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Shareholders' Equity
Issued capital and contributed surplus 1,372,525 1,333,191
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Retained earnings 510,955 343,834
Accumulated other comprehensive income 94,181 46,900
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605,136 390,734
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1,977,661 1,723,925
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$ 2,363,625 $ 2,237,224
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Consolidated Statement of Cash Flows (unaudited)
Three Months Ended Nine Months Ended
(US dollars in thousands - September 30 September 30
unaudited) 2010 2009 2010 2009
-------------------------------------------------------------------------
Operating Activities
Net earnings $ 69,234 $ 33,566 $ 167,121 $ 67,115
Items not affecting cash
Depreciation and depletion 12,573 13,229 41,615 26,359
Stock based compensation 1,306 623 6,431 3,312
Gain on mark-to-market of
warrants held (7,861) - (8,094) (33)
Future income tax recovery (4,785) - (4,785) -
Other (1,251) (338) (879) (148)
Change in non-cash operating
working capital 1,269 (1,700) (6,334) (1,652)
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Cash generated by
operating activities 70,485 45,380 195,075 94,953
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Financing Activities
Bank debt drawn down - 140,200 - 140,200
Bank debt repaid (7,140) (7,140) (21,420) (234,920)
Shares issued - 287,531 - 517,955
Share issue costs - (11,645) (85) (21,620)
Share purchase
warrants exercised 5,017 10,345 6,022 10,508
Share purchase
options exercised 8,579 4,200 26,881 5,789
-------------------------------------------------------------------------
Cash generated by
financing activities 6,456 423,491 11,398 417,912
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Investing Activities
Silver and gold interests (144,465) (213,819) (158,176) (218,466)
Acquisition of Silverstone
Resources Corp., net of
cash acquired - (261) (201) 2,407
Long-term investments (644) - (21,533) -
Other (10) 1,599 396 1,615
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Cash applied to
investing activities (145,119) (212,481) (179,514) (214,444)
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and
cash equivalents 471 (122) 664 (673)
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(Decrease) increase in cash
and cash equivalents (67,707) 256,268 27,623 297,748
Cash and cash equivalents,
beginning of period 322,896 48,590 227,566 7,110
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Cash and cash equivalents,
end of period $ 255,189 $ 304,858 $ 255,189 $ 304,858
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Results of Operations (unaudited)
Three Months Ended September 30, 2010
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced(3) sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas(5) 1,255 1,274 $ 25,613 $ 20.11
Zinkgruvan 508 635 12,680 19.95
Yauliyacu 633 87 1,548 17.79
Penasquito 1,017 692 12,980 18.76
Minto 46 40 912 22.92
Cozamin 381 306 5,825 19.06
Barrick(6) 682 533 10,202 19.16
Other(7) 1,023 710 13,649 19.22
-------------------------------------------------------------------------
5,545 4,277 $ 83,409 $ 19.51
Gold
Minto 6,961 7,127 $ 9,425 $ 1,323
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Silver Equivalent(8) 5,947 4,688 $ 92,834 $ 19.81
Corporate
-------------------------------------------------------------------------
5,947 4,688 $ 92,834 $ 19.81
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended September 30, 2010
-------------------------------------------------------------------------
Cash
Total Total Net flow from
cash cost depletion earnings (used in)
(US$'s per (US$'s per (loss) operations
ounce)(4) ounce)(4) (US$'s) (US$'s)
-------------------------------------------------------------------------
Silver
San Dimas(5) $ 4.04 $ 0.78 $ 19,471 $ 20,468
Zinkgruvan 4.04 1.72 9,021 9,522
Yauliyacu 3.98 3.47 900 1,202
Penasquito 3.90 2.54 8,521 10,281
Minto 3.90 3.69 610 567
Cozamin 4.04 4.62 3,177 4,868
Barrick(6) 3.90 3.58 6,218 8,281
Other(7) 3.93 4.51 7,658 10,518
-------------------------------------------------------------------------
$ 3.98 $ 2.53 $ 55,576 $ 65,707
Gold
Minto $ 300 $ 237 $ 5,599 $ 5,972
-------------------------------------------------------------------------
Silver Equivalent(8) $ 4.09 $ 2.67 $ 61,175 $ 71,679
Corporate 8,059 (1,194)
-------------------------------------------------------------------------
$ 4.09 $ 2.67 $ 69,234 $ 70,485
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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.
3) Certain production figures are based on management estimates.
4) Refer to discussion on non-GAAP measures at the end of this press
release.
5) The ounces produced and sold during the third quarter of 2010 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.
6) Comprised of the Lagunas Norte, Pierina and Veladero mines.
7) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
Neves-Corvo, Stratoni and Campo Morado mines.
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.
Three Months Ended September 30, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 1,232 1,234 $ 18,886 $ 15.30
Zinkgruvan 415 433 6,861 15.85
Yauliyacu 750 698 10,600 15.19
Penasquito 165 190 2,691 14.15
Minto 46 68 1,043 15.29
Cozamin 366 384 5,736 14.94
Barrick(4) 223 187 3,008 16.07
Other(5) 783 780 11,369 14.56
-------------------------------------------------------------------------
3,980 3,974 $ 60,194 $ 15.14
Gold
Minto 3,698 9,953 $ 9,573 $ 962
-------------------------------------------------------------------------
Silver Equivalent(6) 4,213 4,600 $ 69,767 $ 15.16
-------------------------------------------------------------------------
Corporate
4,213 4,600 $ 69,767 $ 15.16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended September 30, 2009
-------------------------------------------------------------------------
Cash
Total Total Net flow from
cash cost depletion earnings (used in)
(US$'s per (US$'s per (loss) operations
ounce)(3) ounce)(3) (US$'s) (US$'s)
-------------------------------------------------------------------------
Silver
San Dimas $ 4.02 $ 0.65 $ 13,120 $ 13,925
Zinkgruvan 4.02 1.78 4,350 4,415
Yauliyacu 3.94 3.47 5,426 7,849
Penasquito 3.90 2.36 1,502 1,950
Minto 3.90 4.48 472 794
Cozamin 4.00 4.72 2,389 4,229
Barrick(4) 3.90 3.46 1,631 2,278
Other(5) 3.91 3.95 5,224 7,398
-------------------------------------------------------------------------
$ 3.97 $ 2.59 $ 34,114 $ 42,838
Gold
Minto $ 300 $ 288 $ 3,724 $ 5,330
-------------------------------------------------------------------------
Silver Equivalent(6) $ 4.08 $ 2.86 $ 37,838 $ 48,168
Corporate (4,272) (2,788)
-------------------------------------------------------------------------
$ 4.08 $ 2.86 $ 33,566 $ 45,380
-------------------------------------------------------------------------
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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.
3) Refer to discussion on non-GAAP measures at the end of this press
release.
4) Comprised of the Lagunas Norte, Pierina and Veladero mines.
5) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
Neves-Corvo, Stratoni and Campo Morado mines.
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.
Nine Months Ended September 30, 2010
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced(3) sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 3,571 3,556 $ 66,463 $ 18.69
Zinkgruvan 1,373 1,446 26,964 18.64
Yauliyacu 2,062 1,185 21,372 18.04
Penasquito 2,337 1,772 32,466 18.32
Minto 157 133 2,562 19.19
Cozamin 1,068 999 18,226 18.26
Barrick(5) 2,159 2,043 36,942 18.08
Other(6) 3,099 2,214 40,635 18.35
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15,826 13,348 $ 245,630 $ 18.40
Gold
Minto 24,665 23,321 $ 28,146 $ 1,207
-------------------------------------------------------------------------
Silver Equivalent(7) 17,395 14,826 $ 273,776 $ 18.47
Corporate
-------------------------------------------------------------------------
17,395 14,826 $ 273,776 $ 18.47
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nine Months Ended September 30, 2010
-------------------------------------------------------------------------
Cash
Total Total Net flow from
cash cost depletion earnings (used in)
(US$'s per (US$'s per (loss) operations
ounce)(4) ounce)(4) (US$'s) (US$'s)
-------------------------------------------------------------------------
Silver
San Dimas $ 4.04 $ 0.78 $ 49,308 $ 52,099
Zinkgruvan 4.04 1.72 18,635 19,578
Yauliyacu 3.98 3.47 12,545 16,662
Penasquito 3.90 2.54 21,050 25,556
Minto 3.90 3.69 1,549 1,795
Cozamin 4.03 4.62 9,590 14,524
Barrick(5) 3.90 3.54 21,749 25,896
Other(6) 3.92 4.38 22,254 31,935
-------------------------------------------------------------------------
$ 3.97 $ 2.69 $ 156,680 $ 188,045
Gold
Minto $ 300 $ 235 $ 15,658 $ 19,357
-------------------------------------------------------------------------
Silver Equivalent(7) $ 4.05 $ 2.79 $ 172,338 $ 207,402
Corporate (5,217) (12,327)
-------------------------------------------------------------------------
$ 4.05 $ 2.79 $ 167,121 $ 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.
(3) Certain production figures are based on management estimates.
(4) Refer to discussion on non-GAAP measures at the end of this press
release.
(5) Comprised of the Lagunas Norte, Pierina and Veladero mines.
(6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
Neves-Corvo, Stratoni and Campo Morado mines.
(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.
Nine Months Ended September 30, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 3,819 3,840 $ 52,990 $ 13.81
Zinkgruvan 1,356 1,353 19,023 14.06
Yauliyacu 2,359 1,987 26,881 13.53
Penasquito 487 455 6,106 13.42
Minto 83 67 1,036 15.31
Cozamin 628 597 8,671 14.53
Barrick(4) 223 187 3,008 16.07
Other(5) 2,092 1,584 21,319 13.44
-------------------------------------------------------------------------
11,047 10,070 $ 139,034 $ 13.80
Gold
Minto 10,521 10,098 $ 9,708 $ 961
-------------------------------------------------------------------------
Silver Equivalent(6) 11,708 10,708 $ 148,742 $ 13.89
Corporate
-------------------------------------------------------------------------
11,708 10,708 $ 148,742 $ 13.89
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Nine Months Ended September 30, 2009
-------------------------------------------------------------------------
Cash
Total Total Net flow from
cash cost depletion earnings (used in)
(US$'s per (US$'s per (loss) operations
ounce)(3) ounce)(3) (US$'s) (US$'s)
-------------------------------------------------------------------------
Silver
San Dimas $ 4.02 $ 0.71 $ 34,817 $ 37,553
Zinkgruvan 4.02 1.78 11,175 12,793
Yauliyacu 3.93 3.47 12,184 19,082
Penasquito 3.90 2.35 3,260 4,331
Minto 3.90 4.48 469 808
Cozamin 4.00 4.70 3,479 7,617
Barrick(4) 3.90 3.46 1,631 2,278
Other(5) 3.91 4.03 8,715 14,883
-------------------------------------------------------------------------
$ 3.97 $ 2.31 $ 75,730 $ 99,345
Gold
Minto $ 300 $ 288 $ 3,773 $ 5,522
-------------------------------------------------------------------------
Silver Equivalent(6) $ 4.02 $ 2.44 $ 79,503 $ 104,867
Corporate (12,388) (9,914)
-------------------------------------------------------------------------
$ 4.02 $ 2.44 $ 67,115 $ 94,953
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(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.
(3) Refer to discussion on non-GAAP measures at the end of this press
release.
(4) Comprised of the Lagunas Norte, Pierina and Veladero mines.
(5) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
Neves-Corvo, Stratoni and Campo Morado mines.
(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 three months ended September 30,
2010, the Company's total cash costs, which were equivalent to the Company's
cost of sales in accordance with GAAP, were $3.98 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(at)silverwheaton.com,
Website: www.silverwheaton.com
For further information: Brad Kopp, Vice President, Investor Relations, Silver Wheaton Corp., Tel: 1-800-380-8687, Email: info(at)silverwheaton.com, Website: www.silverwheaton.com
Tags: British columbia, November 9, Silver Wheaton Corp, Vancouver, Western Europe
