Silver Wheaton Reports Record Second Quarter Earnings
By Silver Wheaton Corp., PRNETuesday, August 10, 2010
VANCOUVER, August 11, 2010 - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW
) is pleased to announce its unaudited results for the second quarter ended
June 30, 2010.
SECOND QUARTER HIGHLIGHTS
-------------------------------------------------------------------------
- Net earnings increased by almost 200% to a record US$53.3 million
(US$0.16 per share), compared with US$18.4 million (US$0.07 per
share) in 2009.
- Operating cash flows increased by more than 150% to US$67.0 million
(US$0.20 per share)(1), compared with US$26.5 million (US$0.09 per
share)(1) in 2009.
- Attributable silver equivalent production of 5.7 million ounces (5.3
million ounces of silver and 5,800 ounces of gold), representing an
increase of 33% over the comparable period in 2009.
- Record silver equivalent sales of 5.1 million ounces (4.6 million
ounces of silver and 7,600 ounces of gold), representing an increase
of 74% over the comparable period in 2009.
- Total cash costs(1) of US$4.03 per silver equivalent ounce, compared
with US$3.99 per ounce in 2009.
- Cash operating margin(1) increased by 44% to US$14.45 per silver
equivalent ounce, compared with US$10.05 per ounce in 2009.
- Production at Goldcorp Inc.'s world-class gold-silver-lead-zinc
Penasquito mine continued to ramp up on or ahead of schedule, with the
second sulphide processing line achieving mechanical completion ahead
of its previously expected third quarter completion date. Penasquito's
Line 1 is regularly operating at a designed daily throughput of 50,000
tonnes, and Line 2 is now in the commissioning phase and ramping up to
add another 50,000 tonnes per day of capacity. Upon completion of the
high pressure grinding circuit, Penasquito is anticipated to ramp up
to full production capacity of 130,000 tonnes per day 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.
Detailed engineering and procurement is nearing completion with many
major items now purchased. Once in production, Pascua Lama is forecast
to be one of the largest and lowest cost gold mines in the world with
average annual production attributable to Silver Wheaton, in its first
five years, of approximately 9 million ounces of silver. Pascua-Lama
is a long-life asset with an expected mine life in excess of 25 years.
- Acquired, by way of a private placement financing, 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.
- Subsequent to quarter end, Goldcorp completed the sale of the San
Dimas mine to Primero Mining Corp. ("Primero"). In conjunction with
the sale, Silver Wheaton agreed to amend 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.
"Another very solid quarter resulted in record sales and earnings,"
said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With
Goldcorp's Penasquito mine in Mexico, the first of our cornerstone assets,
continuing to ramp up silver production ahead of schedule, we look forward
to an even stronger second half to the year and maintain our annual
attributable silver equivalent production guidance of 23.5 million ounces.
In the face of continued global economic uncertainty, the price of silver
performed very well in the quarter, leading to record cash operating
margins of US$14.45 per ounce, and clearly demonstrating the advantages of
Silver Wheaton's business model of low fixed operating costs."
"Two transactions, both having potential to further increase Silver
Wheaton's industry leading production growth profile, were also completed
in the quarter. First, in connection with Goldcorp's sale of its San Dimas
mine to Primero Mining, an emerging mid-tier gold producer, Silver Wheaton
agreed to amend its silver purchase agreement to the benefit of both
parties. The final agreement provides 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."
"Second, Silver Wheaton acquired a right of first refusal over any
silver streams relating to Ventana Gold Corp.'s Colombian properties,
including its flagship high-grade gold-silver La Bodega project, one of the
most exciting gold discoveries in the last decade. As Ventana continues to
advance this potential world-class project closer to production and
evaluates project financing options, we anticipate working towards
completing a silver streaming agreement."
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 Thursday, August 12, 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: 80637046
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: 80637046
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 22.2
million ounces of silver and 20,000 ounces of gold, for total production of
23.5 million silver equivalent ounces. By 2013, annual production is
anticipated to increase significantly to approximately 38 million ounces of
silver and 59,000 ounces of gold, for total production of over 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 thousands, except Three Months Ended Six Months Ended
per share amounts June 30 June 30
- unaudited) 2010 2009 2010 2009
-------------------------------------------------------------------------
Sales $ 95,004 $ 41,403 $ 180,942 $ 78,975
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Cost of sales 20,700 11,764 40,868 24,304
Depletion 15,360 6,419 28,911 13,006
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36,060 18,183 69,779 37,310
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Earnings from operations 58,944 23,220 111,163 41,665
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Expenses and other income
General and
administrative(1) 6,118 4,433 13,313 9,011
Gain on mark-to-market
of warrants held (397) (30) (233) (33)
Other (35) 379 196 (862)
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5,686 4,782 13,276 8,116
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Net earnings 53,258 18,438 97,887 33,549
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic earnings per share $ 0.16 $ 0.07 $ 0.29 $ 0.12
Diluted earnings per
share $ 0.15 $ 0.06 $ 0.28 $ 0.12
Weighted average number
of shares outstanding
Basic 342,898 297,973 342,618 284,205
Diluted 348,441 301,235 347,492 286,976
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1) Stock based compensation
(a non-cash item)
included in general
and administrative $ 2,017 $ 830 $ 5,125 $ 2,689
Consolidated Balance Sheets (unaudited)
June 30 December 31
(US dollars in thousands - unaudited) 2010 2009
-------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 322,896 $ 227,566
Accounts receivable 7,912 4,881
Other 1,971 1,027
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332,779 233,474
Long-term investments 97,133 73,747
Silver and gold interests 1,948,208 1,928,476
Other 1,352 1,527
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$2,379,472 $2,237,224
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-------------------------------------------------------------------------
Liabilities
Current
Accounts payable $ 1,760 $ 5,397
Accrued liabilities 4,270 4,578
Current portion of bank debt 28,560 28,560
Current portion of silver interest payments 158,326 130,788
-------------------------------------------------------------------------
192,916 169,323
Long-term portion of bank debt 92,900 107,180
Long-term portion of silver interest payments 244,829 236,796
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530,645 513,299
-------------------------------------------------------------------------
Shareholders' Equity
Issued capital and contributed surplus 1,357,623 1,333,191
-------------------------------------------------------------------------
Retained earnings 441,721 343,834
Accumulated other comprehensive income 49,483 46,900
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491,204 390,734
-------------------------------------------------------------------------
1,848,827 1,723,925
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$2,379,472 $2,237,224
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Consolidated Statement of Cash Flows (unaudited)
Three Months Ended Six Months Ended
(US dollars in thousands June 30 June 30
- unaudited) 2010 2009 2010 2009
-------------------------------------------------------------------------
Operating Activities
Net earnings $ 53,258 $ 18,438 $ 97,887 $ 33,549
Items not affecting cash
Depreciation and
depletion 15,426 6,482 29,042 13,130
Stock based compensation 2,017 830 5,125 2,689
Gain on mark-to-market
of warrants held (397) (30) (233) (33)
Other 244 (325) 372 190
Change in non-cash operating
working capital (3,558) 1,058 (7,603) 48
-------------------------------------------------------------------------
Cash generated by operating
activities 66,990 26,453 124,590 49,573
-------------------------------------------------------------------------
Financing Activities
Bank debt repaid (7,140) (7,140) (14,280) (227,780)
Shares issued - - - 230,424
Share issue costs - (427) (85) (9,975)
Share purchase warrants
exercised 839 77 1,006 163
Share purchase options
exercised 15,008 1,502 18,302 1,589
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Cash generated by (applied
to) financing activities 8,707 (5,988) 4,943 (5,579)
-------------------------------------------------------------------------
Investing Activities
Silver and gold interests (13,194) (1,276) (13,711) (4,647)
Acquisition of Silverstone
Resources Corp., net of
cash acquired - 2,668 (201) 2,668
Long-term investments (19,754) - (20,889) -
Other 417 (72) 406 16
-------------------------------------------------------------------------
Cash (applied to) generated
by investing activities (32,531) 1,320 (34,395) (1,963)
-------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents 72 61 192 (551)
-------------------------------------------------------------------------
Increase in cash and cash
equivalents 43,238 21,846 95,330 41,480
Cash and cash equivalents,
beginning of period 279,658 26,744 227,566 7,110
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Cash and cash equivalents,
end of period $ 322,896 $ 48,590 $ 322,896 $ 48,590
-------------------------------------------------------------------------
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Results of Operations (unaudited)
Three Months Ended June 30, 2010
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced(3) sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 1,110 1,076 $ 19,999 $ 18.58
Zinkgruvan 478 313 5,727 18.29
Yauliyacu 692 517 9,688 18.74
Penasquito 800 656 12,111 18.46
Minto 49 46 860 18.63
Cozamin 286 412 7,588 18.44
Barrick(5) 697 727 13,242 18.20
Other(6) 1,159 897 16,544 18.45
-------------------------------------------------------------------------
5,271 4,644 $ 85,759 $ 18.46
Gold
Minto 5,802 7,584 $ 9,245 $ 1,219
-------------------------------------------------------------------------
Silver Equivalent(7) 5,651 5,140 $ 95,004 $ 18.48
Corporate
-------------------------------------------------------------------------
5,651 5,140 $ 95,004 $ 18.48
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended June 30, 2010
-------------------------------------------------------------------------
Cash flow
Total Total Net 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 $ 0.79 $ 14,804 $ 15,651
Zinkgruvan 4.04 1.72 3,924 4,352
Yauliyacu 3.98 3.47 5,835 7,610
Penasquito 3.90 2.54 7,885 9,553
Minto 3.90 3.69 510 819
Cozamin 4.04 4.62 4,022 5,620
Barrick(5) 3.90 3.55 7,825 9,205
Other(6) 3.92 4.53 8,965 12,844
-------------------------------------------------------------------------
$ 3.97 $ 2.92 $ 53,770 $ 65,654
Gold
Minto $ 300 $ 237 $ 5,174 $ 7,633
-------------------------------------------------------------------------
Silver Equivalent(7) $ 4.03 $ 2.99 $ 58,944 $ 73,287
Corporate (5,686) (6,297)
-------------------------------------------------------------------------
$ 4.03 $ 2.99 $ 53,258 $ 66,990
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(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.
Three Months Ended June 30, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 1,264 1,254 $ 17,577 $ 14.02
Zinkgruvan 480 469 6,746 14.38
Yauliyacu 870 546 7,593 13.91
Penasquito 162 130 1,853 14.28
Minto 37(5) (1)(4) (7)(4) 13.11
Cozamin 262(5) 213 2,935 13.78
Other(6) 750(5) 327 4,571 13.92
-------------------------------------------------------------------------
3,825 2,938 $ 41,268 $ 14.04
Gold
Minto 6,823(5) 145(4) $ 135(4) $ 925
-------------------------------------------------------------------------
Silver Equivalent(7) 4,253 2,950 $ 41,403 $ 14.04
Corporate
-------------------------------------------------------------------------
4,253 2,950 $ 41,403 $ 14.04
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended June 30, 2009
-------------------------------------------------------------------------
Cash flow
Total Total Net 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 $ 11,721 $ 12,538
Zinkgruvan 4.02 1.78 4,024 5,159
Yauliyacu 3.94 3.47 3,546 5,442
Penasquito 3.90 2.35 1,041 1,347
Minto 3.90 4.42 (3) 15
Cozamin 4.00 4.66 1,090 3,388
Other(6) 3.92 4.67 1,751 3,656
-------------------------------------------------------------------------
$ 3.99 $ 2.17 $ 23,170 $ 31,545
Gold
Minto $ 300 $ 284 $ 50 $ 192
-------------------------------------------------------------------------
Silver Equivalent(7) $ 3.99 $ 2.18 $ 23,220 $ 31,737
Corporate (4,782) (5,284)
-------------------------------------------------------------------------
$ 3.99 $ 2.18 $ 18,438 $ 26,453
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) All figures in thousands except gold ounces produced and sold and per
ounce amounts.
(2) Ounces produced represent the quantity of silver 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) No concentrate shipments were made during the period. Amounts
reflected above represent provisional invoice adjustments.
(5) Production figures for Silverstone assets acquired have been pro
rated based on the number of days in the quarter following the
Silverstone acquisition.
(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.
Six Months Ended June 30, 2010
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced(3) sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 2,316 2,282 $ 40,850 $ 17.90
Zinkgruvan 865 811 14,284 17.61
Yauliyacu 1,429 1,098 19,824 18.05
Penasquito 1,320 1,080 19,486 18.05
Minto 111 93 1,649 17.61
Cozamin 687 693 12,401 17.91
Barrick(5) 1,477 1,510 26,740 17.71
Other(6) 2,012 1,504 26,987 17.95
-------------------------------------------------------------------------
10,217 9,071 $ 162,221 $ 17.88
Gold
Minto 13,358 16,194 $ 18,721 $ 1,156
-------------------------------------------------------------------------
Silver Equivalent(7) 11,097 10,138 $ 180,942 $ 17.85
Corporate
-------------------------------------------------------------------------
11,097 10,138 $ 180,942 $ 17.85
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six Months Ended June 30, 2010
-------------------------------------------------------------------------
Cash flow
Total Total Net 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 $ 0.79 $ 29,837 $ 31,631
Zinkgruvan 4.04 1.72 9,615 10,056
Yauliyacu 3.98 3.47 11,645 15,460
Penasquito 3.90 2.54 12,528 15,275
Minto 3.90 3.69 939 1,227
Cozamin 4.03 4.62 6,413 9,656
Barrick(5) 3.90 3.52 15,530 17,615
Other(6) 3.92 4.32 14,598 21,417
-------------------------------------------------------------------------
$ 3.97 $ 2.77 $ 101,105 $ 122,337
Gold
Minto $ 300 $ 235 $ 10,058 $ 13,386
-------------------------------------------------------------------------
Silver Equivalent(7) $ 4.03 $ 2.85 $ 111,163 $ 135,723
Corporate (13,276) (11,133)
-------------------------------------------------------------------------
$ 4.03 $ 2.85 $ 97,887 $ 124,590
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(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.
Six Months Ended June 30, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces Sales (US$'s per
produced sold (US$'s) ounce)
-------------------------------------------------------------------------
Silver
San Dimas 2,587 2,606 $ 34,104 $ 13.09
Zinkgruvan 941 920 12,162 13.22
Yauliyacu 1,609 1,289 16,282 12.63
Penasquito 322 265 3,414 12.89
Minto 37(5) (1)(4) (7)(4) 13.11
Cozamin 262(5) 213 2,935 13.78
Other(6) 1,309(5) 804 9,950 12.36
-------------------------------------------------------------------------
7,067 6,096 $ 78,840 $ 12.93
Gold
Minto 6,823(5) 145(4) $ 135(4) $ 925
-------------------------------------------------------------------------
Silver Equivalent(7) 7,495 6,108 $ 78,975 $ 12.93
Corporate
-------------------------------------------------------------------------
7,495 6,108 $ 78,975 $ 12.93
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Six Months Ended June 30, 2009
-------------------------------------------------------------------------
Cash flow
Total Total Net 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 $ 0.74 $ 21,697 $ 23,628
Zinkgruvan 4.02 1.78 6,825 8,379
Yauliyacu 3.92 3.47 6,758 11,233
Penasquito 3.90 2.35 1,758 2,381
Minto 3.90 4.42 (3) 15
Cozamin 4.00 4.66 1,090 3,388
Other(6) 3.92 4.10 3,490 7,487
-------------------------------------------------------------------------
$ 3.98 $ 2.13 $ 41,615 $ 56,511
Gold
Minto $ 300 $ 284 $ 50 $ 192
-------------------------------------------------------------------------
Silver Equivalent(7) $ 3.98 $ 2.13 $ 41,665 $ 56,703
Corporate (8,116) (7,130)
-------------------------------------------------------------------------
$ 3.98 $ 2.13 $ 33,549 $ 49,573
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(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) No concentrate shipments were made during the period. Amounts
reflected above represent provisional invoice adjustments.
(5) Production figures for Silverstone assets acquired have been pro
rated based on the number of days in the quarter following the
Silverstone acquisition.
(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.
Non-GAAP Measures
Silver Wheaton has included, throughout this document, 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
June 30, 2010, the Company's total cash costs, which were equivalent to the
Company's cost of sales in accordance with GAAP, were US$3.97 per ounce of
silver and US$300 per ounce of gold (three months ended June 30, 2009 - US$
3.97 per ounce of silver and US$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: www.silverwheaton.com (SLW. SLW)
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 (SLW. SLW)
Tags: August 11, canada, Silver Wheaton Corp, Vancouver
