2014

Silver Wheaton Reports a Strong Start to 2012 With Record Quarterly Revenues of US$200 Million

VANCOUVER, British Columbia, May 14, 2012 /PRNewswire/ --


- TSX: SLW

- NYSE: SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW)(NYSE: SLW) is pleased to announce its unaudited results for the first quarter ended March 31, 2012.

FIRST QUARTER HIGHLIGHTS

  • Attributable silver equivalent production of 6.7 million ounces (6.6 million ounces of silver and 2,100 ounces of gold), an increase of 8% compared with Q1 2011.
  • Revenues increased 26% compared with Q1 2011, to a record US$199.6 million, on record silver equivalent sales of 6.1 million ounces (5.9 million ounces of silver and 3,900 ounces of gold).
  • Net earnings increased 20% compared with Q1 2011, to US$147.2 million (US$0.42 per share).
  • Operating cash flows increased 29% compared with Q1 2011, to US$163.8 million (US$0.46 per share[1]).
  • Cash operating margin[1] increased slightly compared with Q1 2011, to US$28.51 per silver equivalent ounce, amongst the highest in the sector.
  • Average cash costs of US$4.08[1] per silver equivalent ounce (US$4.02 per ounce of silver and US$303 per ounce of gold), relatively unchanged from Q1 2011.
  • Cash balance of US$997.5 million, with a net cash position of US$926.0 million at the end of Q1 2012.
  • Declared quarterly dividend of US$0.09 per common share, representing 20% of the cash generated by operating activities during the three months ended December 31, 2011.
  • Announced attributable proven and probable silver reserves of 798 million ounces, nearly twice the reserves of any other silver company in the world.

"Solid operating performance from across our portfolio of mines led to a strong start in 2012," said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. "We achieved record quarterly revenues, and are on target to attaining our annual production guidance of 27 million silver equivalent ounces. With continued positive progress at our world-class cornerstone assets, including the Peñasquito and Pascua-Lama mines, Silver Wheaton retains one of the strongest growth profiles in the sector."

"While there continues to be a strong trend of expanding capital needs in the mining industry, challenging global financial markets have made access to traditional forms of capital, such as debt and equity, much more difficult. In this environment, Silver Wheaton's streaming model offers a particularly attractive funding solution for mining companies, and we continue pursuing value-enhancing acquisitions. With approximately US$1 billion in cash on hand, a fully undrawn $400 million revolving credit facility, and forecast annual operating cash flows in excess of $600 million at current precious metals prices, Silver Wheaton is exceptionally well-positioned to grow its portfolio of high-quality precious metals streams, further boosting its long-term production levels."

Financial Review

Revenues

Revenue was US$199.6 million in the first quarter of 2012, on silver equivalent sales of 6.1 million ounces (5.9 million ounces of silver and 3,900 ounces of gold), a record for the Company. This represents a 26% increase from the US$158.2 million of revenue generated in the first quarter of 2011, due to a 25% increase in the number of silver equivalent ounces sold. Increased sales were primarily related to the timing of shipments of stockpiled concentrate and to increased production at some of the mines underlying the Company's silver purchase agreements.

Costs and Expenses

Average cash costs in the first quarter of 2012 were US$4.08[1] per silver equivalent ounce, compared with US$4.07[1] during the comparable period of 2011. This resulted in cash operating margins[1]of US$28.51 per silver equivalent ounce, a slight increase compared to the first quarter of 2011.

During the first quarter of 2012, the Company recorded an income tax expense of US$3.3 million, which includes a non-cash deferred income tax expense of US$3.1 million, attributable primarily to the reversal of previously recognized deferred income tax assets relating to the decline in fair value of long-term investments in common shares and to income from Canadian operations. This compared to an income tax recovery of $2.3 million in the comparable period of the previous year, which included a non-cash deferred income tax recovery of $2.5 million.

Earnings and Operating Cash Flows

Net earnings in the first quarter of 2012 were US$147.2 million (US$0.42 per share), compared with US$122.2 (US$0.35 per share) for the same period in 2011, an increase of 20%. Cash flow from operations in the first quarter of 2012 was US$163.8 million (US$0.46 per share[1]), compared with US$127.2 million (US$0.36 per share[1]) for the same period in 2011, an increase of 29% (an increase of 28% on a per share basis). The increase in net earnings and operating cash flows is primarily attributable to a 25% increase in the number of silver equivalent ounces sold.

Balance Sheet

At March 31, 2012, the Company had approximately US$997 million of cash on hand. In addition, the Company had US$400 million of available credit under its revolving bank debt facility. The combination of cash, available credit, and strong operating cash flows, positions the Company well to execute on its growth strategy of acquiring additional accretive silver stream interests.

Operational Highlights

Attributable silver equivalent production was 6.7 million ounces (6.6 million ounces of silver and 2,100 ounces of gold) in the first quarter of 2012, representing an increase of 8% compared to the first quarter of 2011.

Operational highlights for the quarter ended March 31, 2012 are as follows:

Peñasquito -

As stated in Goldcorp Inc.'s ("Goldcorp") press release dated March 28, 2012, the high pressure grinding roll supplemental feed system at the Peñasquito mine was successfully commissioned during the first quarter of 2012. Throughput in the last three weeks of March 2012 averaged over 110,000 tonnes per day, and included record daily throughput of 143,000 tonnes on March 13, 2012. In the ten days prior to mid-April, throughput averaged 123,000 tonnes per day. Activities at Peñasquito over the balance of 2012 will focus on further optimization of the processing line. Peñasquito will become Silver Wheaton's largest contributor of silver production in 2012, with forecast attributable silver production of approximately 7 million ounces.

Pascua-Lama -

As stated by Barrick Gold Corporation in its first quarter 2012 MD&A, the Pascua-Lama project remains on track to commence production in mid-2013, with over 70% of the previously announced pre-production capital budget of $4.7 to $5.0 billion committed. At the end of the first quarter, earthworks in Chile and Argentina were approximately 97% and 73% complete, respectively, with pre-stripping expected to commence during the second quarter. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first full five years of operation, Silver Wheaton's attributable silver production is expected to average nine million ounces annually.

San Dimas -

As per Primero Mining Corp.'s ("Primero") March 28, 2012 disclosure, in an effort to improve mine planning and expand long-term production levels at its San Dimas mine, Primero elected to utilize block modeling to estimate its mineral reserves and resources rather than the polygonal method, which it had used historically. The estimates made using this new approach resulted in a reduction in both silver reserves and inferred resources at the San Dimas mine, as of December 31, 2011.

Primero's disclosure also states that there is significant exploration potential at San Dimas beyond the stated mineral reserves and resources, some of which has been reported as mineral potential. Further details can be found in their March 28, 2012 disclosure. Primero believes that the new estimation approach will improve mine planning, and that further drilling and mine development will result in mineral resources being converted to mineral reserves, a reasonable amount of the exploration potential being converted to inferred resources, and new mineral discoveries being realized.

Produced But Not Yet Delivered -

Payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners was virtually unchanged in the first quarter, with a total of approximately 4.2 million payable ounces at March 31, 2012. The total is primarily attributable to Glencore International AG's Yauliyacu mine, and Goldcorp's Penasquito mine, where approximately 1.7 million and 1.3 million ounces of cumulative payable silver ounces have been produced but not yet delivered to the Company, respectively.

Detailed mine by mine production and sales figures can be found in the Appendix of this press release and in Silver Wheaton's Management's Discussion and Analysis ("MD&A") in the 'Results of Operations and Operational Review' section.

This earnings release should be read in conjunction with Silver Wheaton's MD&A and unaudited Financial Statements, which are available on the Company's website at http://www.silverwheaton.com and have been posted on SEDAR at http://www.sedar.com.

[1] Please refer to non-IFRS measures at the end of this press release.

Webcast and Conference Call Details

A conference call will be held Monday, May 14, 2012, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call please 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:                            71685970
    Live audio webcast:                   http://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: 1-855-859-2056
    Dial from outside Canada or the US:   1-416-849-0833
    Pass code:                            71685970
    Archived audio webcast:               http://www.silverwheaton.com 


About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2012 attributable production is approximately 27 million silver equivalent ounces, including 16,500 ounces of gold. By 2016, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Peñasquito mine and Barrick's Pascua-Lama project.

CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS

The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at http://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 Earnings (unaudited)

                                                         Three Months Ended
                                                              March 31
    (US dollars and shares in thousands, except per
    share amounts - unaudited)                             2012       2011
    Sales                                                $ 199,638  $ 158,183
    Cost of sales
    Cost of sales, excluding depletion                   $  25,019  $  19,948
    Depletion                                               17,206     11,684
    Total cost of sales                                  $  42,225  $  31,632
    Earnings from operations                             $ 157,413  $ 126,551
    Expenses and other income
    General and administrative [1]                       $   7,564  $   6,501
    Foreign exchange gain                                      (30)        (4)
    Other (income) expense                                    (650)       140
                                                         $   6,884  $   6,637
    Earnings before income taxes                         $ 150,529  $ 119,914
    Income tax (expense) recovery                          (3,348)      2,262
    Net earnings                                         $ 147,181  $ 122,176
 
    Basic earnings per share                             $    0.42  $    0.35
    Diluted earnings per share                           $    0.41  $    0.34
 
    Weighted average number of shares outstanding
    Basic                                                  353,529    352,898
    Diluted                                                355,943    355,903

    1) Equity settled stock based compensation (a
    non-cash item) included in general and
    administrative expenses.                             $   1,659  $   1,255


Consolidated Balance Sheets (unaudited)

                                                  March 31           December 31
    (US dollars in thousands - unaudited)          2012                2011
    Assets
    Current assets
    Cash and cash equivalents                  $   997,489         $   840,201
    Accounts receivable                              6,217               3,890
    Other                                            1,336               1,221
    Total current assets                       $ 1,005,042         $   845,312
    Non-current assets
    Silver and gold interests                  $ 1,857,112         $ 1,871,726
    Long-term investments                          141,589             151,621
    Deferred income taxes                              744               2,301
    Other                                            1,352               1,375
    Total non-current assets                   $ 2,000,797         $ 2,027,023
    Total assets                               $ 3,005,839         $ 2,872,335
    Liabilities
    Current liabilities
    Accounts payable and accrued liabilities   $     6,575         $     8,709
    Dividends payable                               31,829                   -
    Current portion of bank debt                    28,560              28,560
    Current portion of silver interest payments    132,989             130,789
    Total current liabilities                  $   199,953         $   168,058
    Non-current liabilities
    Long-term portion of bank debt                  42,920              50,060
    Total liabilities                          $   242,873         $   218,118
    Shareholders' equity
    Issued capital                             $ 1,795,951         $ 1,793,772
    Reserves                                        16,640              25,422
    Retained earnings                              950,375             835,023
    Total shareholders' equity                 $ 2,762,966         $ 2,654,217
    Total liabilities and shareholders' equity $ 3,005,839         $ 2,872,335


Consolidated Statement of Cash Flows (unaudited)

                                                          Three Months Ended
                                                               March 31
    (US dollars in thousands - unaudited)                  2012       2011
    Operating activities
    Net earnings                                         $ 147,181  $  122,176
    Adjustments for
    Depreciation and depletion                              17,267      11,754
    Equity settled stock based
    compensation                                             1,659       1,255
    Deferred income tax expense
    (recovery)                                               3,068      (2,519)
    (Gain) loss on fair value adjustment
    of share purchase warrants held                           (675)         66
    Investment income recognized in net
    earnings                                                  (319)       (209)
    Other                                                      (98)       (133)
    Change in non-cash operating working
    capital                                                 (4,574)     (5,392)
    Operating cash flows before interest
    income                                               $ 163,509  $  126,998
    Interest income received                                   302         198
    Cash generated by operating activities               $ 163,811  $  127,196
    Financing activities
    Bank debt repaid                                     $  (7,140)  $  (7,140)
    Share purchase warrants exercised                           10          61
    Share purchase options exercised                           924       4,395
    Dividends paid                                               -     (10,595)
    Cash applied to financing activities                 $  (6,206)  $ (13,279)
    Investing activities
    Silver and gold interests                            $   (180)  $  (2,542)
    Silver and gold interests - interest
    paid                                                      (215)       (315)
    Dividend income received                                    17          11
    Proceeds on disposal of long-term
    investments                                                  -      24,270
    Other                                                      (20)         (8)
    Cash (applied to) generated by investing
    activities                                           $    (398)  $  21,416
    Effect of exchange rate changes on cash and cash
    equivalents                                          $      81  $      106
    Increase in cash and cash equivalents                $ 157,288  $  135,439
    Cash and cash equivalents, beginning of period         840,201     428,636
    Cash and cash equivalents, end of period             $ 997,489  $  564,075


Summary of Ounces Produced and Sold

                           2012           2011                 2010
    (in thousands)          Q1    Q4    Q3    Q2    Q1    Q4    Q3    Q2
    Silver ounces produced
    [1]
    San Dimas [2]          1,692 1,578 1,251 1,150 1,606 1,586 1,255 1,110
    Zinkgruvan               642   390   379   414   508   428   508   478
    Yauliyacu                550   583   608   674   683   651   633   692
    Peñasquito             1,365 1,633 1,162 1,282 1,207 1,260 1,109   866
    Cozamin                  405   433   395   414   325   335   381   286
    Barrick [3]              667   723   794   741   722   458   682   697
    Other [4]              1,288 1,389 1,272 1,153 1,088 1,245 1,069 1,240
                           6,609 6,729 5,861 5,828 6,139 5,963 5,637 5,369
    Silver equivalent
    ounces of gold
    produced [5]
    Minto                    107   202   257   261    97   205   402   522
    Silver equivalent
    ounces produced        6,716 6,931 6,118 6,089 6,236 6,168 6,039 5,891
    Silver ounces sold
    San Dimas [2]          1,701 1,488 1,232 1,149 1,748 1,438 1,274 1,076
    Zinkgruvan               517   425   319   401   321   421   635   313
    Yauliyacu                497   655    11   471   120   470    87   517
    Peñasquito             1,189   851 1,382   961   941 1,169   692   656
    Cozamin                  376   374   335   281   271   411   306   412
    Barrick [3]              656   755   747   726   680   482   533   727
    Other [4]                992 1,230   770   862   741 1,139   750   943
                           5,928 5,778 4,796 4,851 4,822 5,530 4,277 4,644
    Silver equivalent
    ounces of gold sold
    [5]
    Minto                    198   196   316   227    83   127   411   496
    Silver equivalent
    ounces sold            6,126 5,974 5,112 5,078 4,905 5,657 4,688 5,140
    Gold / silver ratio
    [5]                     51.2  51.9  50.4  40.1  33.0  49.7  57.7  65.4
    Cumulative payable
    silver equivalent
    ounces produced but
    not yet delivered [6]  4,166 4,127 3,805 3,537 3,018 2,275 2,174 1,403


Results of Operations (unaudited)

    1) Ounces produced represent the quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions. Certain
       production figures are based on management estimates.
    2) Beginning in the third quarter of 2010, the ounces produced and sold
       include 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.
    3) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
    4) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno
       Hill, Minto, Aljustrel and Campo Morado silver interests in addition to
       the previously owned La Negra and San Martin silver interests.
    5) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.
    6) Based on management estimates.


Non-IFRS Measures

Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) average cash costs of silver and gold on a per ounce basis; (ii) operating cash flows per share (basic and diluted); and (iii) cash operating margin.

                                                        Three Months Ended March 31, 2012
                                           Average
                                            Cash
                                    Average Cost Average
                                   Realized (US$'s Depletion     Cash Flow
                                     Price  Per   (US$'s  Net      From
                 Ounces Ounces Sales (US$'s Ounce)Per  Earnings Operations Total Assets
                 Produced Sold (US$'s)Per Ounce)  [3] Ounce)(US$'s)(US$'s)     (US$'s) 
                    [2]                              
    Silver
    San Dimas [4]    1,692 1,701  $55,566 $32.66 $4.09 $0.79  $47,267  $48,606   $166,188
    Zinkgruvan         642   517   16,938  32.73  4.14  1.68   13,927   13,495     56,771
    Yauliyacu          550   497   15,586  31.36  4.02  5.02   11,094   13,588    227,518
    Peñasquito       1,365 1,189   38,760  32.61  3.99  2.96   30,500   34,018    501,455
    Cozamin            405   376   12,609  33.58  4.08  4.05    9,557   10,139     23,595
    Barrick [5]        667   656   21,503  32.80  3.90  4.34   16,100   18,946    600,651
    Other [6]        1,288   992   32,200  32.44  3.95  3.99   24,320   27,051    247,933
                     6,609 5,928 $193,162 $32.58 $4.02 $2.79 $152,765 $165,843 $1,824,111
    Gold
    Minto            2,088 3,860    6,476  1,678   303   171    4,648    5,149     33,001
    Silver 
    equivalent [7]   6,716 6,126 $199,638 $32.59 $4.08 $2.81 $157,413 $170,992 $1,857,112
    Corporate
    General and administrative                                $(7,564)
    Other                                                      (2,668)
    Total corporate                                          $(10,232) $(7,181)$1,148,727
                     6,716 6,126 $199,638 $32.59 $4.08 $2.81 $147,181 $163,811 $3,005,839


    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. Certain
       production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 375,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata silver interest.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.


Non-IFRS Measures

Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) average cash costs of silver and gold on a per ounce basis; (ii) operating cash flows per share (basic and diluted); and (iii) cash operating margin.

                                                     Three Months Ended March 31, 2012
                                             Average
                                              Cash
                                      Average Cost Average
                                     Realized (US$'s Depletion     Cash Flow
                                       Price  Per   (US$'s  Net      From
                   Ounces Ounces Sales (US$'s Ounce)Per  Earnings Operations Total Assets
                   Produced Sold (US$'s)Per Ounce)  [3] Ounce)(US$'s)(US$'s)     (US$'s) 
    Silver
    San Dimas [4]1,606 1,748 $  58,371 $ 33.39 $ 4.04 $  0.71 $  50,051 $ 50,203   $170,274
    Zinkgruvan     508   321    11,049   34.41   4.08    1.69     9,195    9,606     59,578
    Yauliyacu      683   120     3,523   29.36   3.98    5.02     2,443    3,045    235,718
    Peñasquito   1,207   941    27,020   28.72   3.90    2.41    21,085   23,351    512,664
    Cozamin        325   271     8,651   31.87   4.04    4.62     6,299    7,776     29,694
    Barrick [5]    722   680    21,663   31.84   3.90    3.55    16,595   17,451    597,453
    Other [6]    1,088   741    24,027   32.44   3.93    3.95    18,186   20,184    264,138
                 6,139 4,822 $ 154,304 $ 32.00 $ 3.98 $  2.33 $ 123,854 $131,616 $1,869,519
    Gold
    Minto        2,925 2,524     3,879   1,537    300     168     2,697    2,870     36,322
    Silver equivalent 
    [7]          6,236 4,905 $ 158,183 $ 32.24 $ 4.07 $  2.38 $ 126,551 $134,486 $1,905,841
    Corporate
    General and administrative                                 $ (6,501)
    Other                                                         2,126
    Total corporate                                            $ (4,375) $(7,290) $ 851,224
                 6,236 4,905 $ 158,183 $ 32.24 $ 4.07 $  2.38 $ 122,176 $127,196 $2,757,065


    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. Certain
       production figures are based on management estimates.
    3) Refer to discussion on non-IFRS measures at the end of this press
       release.
    4) Results for San Dimas include 375,000 ounces received from Goldcorp in
       connection with Goldcorp's four year commitment to deliver to Silver
       Wheaton 1.5 million ounces of silver per annum resulting from their
       sale of San Dimas to Primero.
    5) Comprised of the operating Lagunas Norte, Pierina and Veladero silver
       interests in addition to the non-operating Pascua-Lama silver interest.
    6) Comprised of the operating Los Filos, Keno Hill, Mineral Park,
       Neves-Corvo, Stratoni, Campo Morado, Minto and Aljustrel silver
       interests in addition to the non-operating Rosemont silver and gold
       interest and Loma de La Plata silver interest.
    7) Gold ounces produced and sold are converted to a silver equivalent
       basis on the ratio of the average silver price received to the average
       gold price received during the period from the assets that produce both
       gold and silver.


Non-IFRS Measures

Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) average cash costs of silver and gold on a per ounce basis; (ii) operating cash flows per share (basic and diluted); and (iii) cash operating margin.

    i.   Average cash cost of silver and gold on a per ounce basis is
         calculated by dividing the total cost of sales, less depletion, by
         the ounces sold. In the precious metals mining industry, this is a
         common performance measure but does not have any standardized
         meaning. The Company believes that, in addition to conventional
         measures prepared in accordance with IFRS, certain investors use this
         information to evaluate the Company's performance and ability to
         generate cash flow.
    ii.  Operating cash flow per share (basic and diluted) is calculated by
         dividing cash generated by operating activities by the weighted
         average number of shares outstanding (basic and diluted). The Company
         presents operating cash flow per share as it believes that certain
         investors use this information to evaluate the Company's performance
         in comparison to other companies in the precious metals mining
         industry who present results on a similar basis.
    iii. Cash operating margin is calculated by subtracting the average cash
         cost of silver and gold on a per ounce basis from the average
         realized selling price of silver and gold on a per ounce basis. The
         Company presents cash operating margin as it believes that certain
         investors use this information to evaluate the Company's performance
         in comparison to other companies in the precious metals mining
         industry who present results on a similar basis.


These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more detailed information, please refer to pages 14 to 16 of Silver Wheaton's Management Discussion and Analysis available on the Company's website at http://www.silverwheaton.com and posted on SEDAR at http://www.sedar.com.

For further information:
Brad Kopp
Senior Vice President, Investor Relations
Silver Wheaton Corp.
Tel: +1-800-380-8687
Email: info@silverwheaton.com
Website: http://www.silverwheaton.com

SOURCE Silver Wheaton Corp.



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.