Silver Wheaton Reports Record 2012 Operating and Financial Results

VANCOUVER, British Columbia, March 22, 2013 /PRNewswire/ --


TSX: SLW
NYSE: SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE: SLW) is pleased to announce its audited results for the fourth quarter and year ended December 31, 2012. All figures are presented in United States dollars unless otherwise noted.

FULL YEAR HIGHLIGHTS

  • Fourth consecutive year of record attributable silver equivalent production of 29.6 million ounces compared to 25.4 million ounces in 2011, representing an increase of 17%.
  • Record silver equivalent sales of 27.3 million ounces compared to 21.1 million ounces in 2011, representing an increase of 30%.
  • Record revenues of $849.6 million compared to $730.0 million in 2011, representing a 16% increase.
  • Record net earnings of $586.0 million ($1.66 per share) compared to $550.0 million ($1.56 per share) in 2011, representing a 7% increase.
  • Record operating cash flows of $719.4 million ($2.03 per share[1]) compared to $626.4 million ($1.77 per share[1]) in 2011, representing a 15% increase.
  • Cash operating margin[1] of $26.79 per silver equivalent ounce, compared to $30.56 in 2011, representing a 12% decrease.
  • Average cash costs[1] rose to $4.30 per silver equivalent ounce, compared to $4.09 in 2011, representing a 5% increase.
  • In August 2012, acquired from Hudbay Minerals Inc. ("Hudbay") a precious metals stream from its currently producing 777 mine ("777") and a silver stream from its cornerstone development project, Constancia.
  • During 2012, Silver Wheaton paid $123.9 million in dividends ($0.35 per share) compared to $63.6 million in 2011 ($0.18 per share), representing a 95% increase.

FOURTH QUARTER HIGHLIGHTS

  • Record attributable silver equivalent production of 8.5 million ounces compared to 6.9 million ounces in Q4 2011 and 7.7 million ounces in Q3 2012, representing an increase of 22% and 10%, respectively.
  • Record silver equivalent sales of 9.1 million ounces compared to 6.0 million ounces in Q4 2011 and 5.1 million ounces in Q3 2012, representing an increase of 53% and 78%, respectively.
  • Record revenues of $287.2 million compared to $191.9 million in Q4 2011, representing a 50% increase.
  • Record net earnings of $177.7 million ($0.50 per share) compared to $144.7 million ($0.41 per share) in Q4 2011, representing a 23% increase.
  • Record operating cash flows of $254.0 million ($0.72 per share[1]) compared to $163.7 million ($0.46 per share[1]) in Q4 2011, representing a 55% increase.
  • Cash operating margin[1] of $26.76 per silver equivalent ounce, compared to $28.06 in Q4 2011, representing a 5% decrease.
  • Average cash costs[1] rose to $4.70 per silver equivalent ounce, compared to $4.06 per silver equivalent ounce in Q4 2011, representing a 16% increase, driven primarily by higher costs associated with silver and gold from the Hudbay 777 mine ($5.90 and $400 per ounce of silver and gold, respectively).
  • Declared quarterly dividend of $0.14 per common share, representing 20% of the cash generated by operating activities during the three months ended December 31, 2012.

2013 OUTLOOK

  • Silver Wheaton anticipates a 13% year over year increase in its 2013 attributable production to approximately 33.5 million silver equivalent ounces, including 145 thousand ounces of gold.
  • In 2017, the Company forecasts 53 million ounces of silver equivalent production (including 180 thousand ounces of gold), which represents an increase of 79% from 2012.
  • The acquisition of the Salobo and Sudbury gold streams from Vale S.A. ("Vale") subsequent to December 31, 2012, is expected to double Silver Wheaton's attributable gold production over the next five years. Coupled with a full year of attributable production from Hudbay's 777 mine, acquired in August 2012, these cornerstone assets will drive the company's production growth in 2013.
  • As per the Company's news release dated March 19, 2013, attributable silver and gold reserves increased to 851.4 million ounces and 4.96 million ounces, respectively, as a result of organic and acquisition growth, inclusive of the acquisition of gold streams from Vale's Salobo and Sudbury mines.  Based on reserve estimates as at December 31, 2012[1], following the Vale transaction, silver equivalent reserves attributable to Silver Wheaton have grown to 1.12 billion ounces[2].

___________________________

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

[2] Silver equivalent reserves and resources assume a gold/silver ratio of 53.3:1.

"2012 was another exceptional year for Silver Wheaton, anchored by a fourth quarter that saw record production, sales, revenue, net income, and cash flow for the company," said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. "With the addition of production from Hudbay's 777 mine midway through the year, plus growing production from Peñasquito, San Dimas and Zinkgruvan, 2012 production exceeded our forecast by over one and a half million ounces."

"This translated into sales of over 27 million ounces, with the fourth quarter coming in at over nine million ounces, and full year cash flows of over $719 million. Given our dividend policy of paying out 20% of the trailing quarter's cash flow, Silver Wheaton's strong production growth profile directly translates into higher dividends, with $0.35 per common share paid during 2012, almost double what was paid in 2011, and our strong fourth quarter resulted in our first dividend in 2013 being $0.14 per share."

"With the recently announced acquisition of gold streams from Vale S.A.'s Salobo and Sudbury mines, we are confident that 2013 and beyond will bring further growth and many new records to Silver Wheaton. While our organic growth profile now forecasts roughly an 80% increase of silver equivalent production over the next five years, we firmly believe there are yet more accretive opportunities for us to further add to our world-class portfolio of precious metals streams."

Financial Review

Revenues

Revenue was $287.2 million in the fourth quarter of 2012, on silver equivalent sales of 9.1 million ounces (7.3 million ounces of silver and 33,000 ounces of gold). This represents a 50% increase from the $191.9 million of revenue generated in the fourth quarter of 2011, due primarily to a comparable increase in the number of ounces sold with relatively unchanged gold and silver prices.

Revenue was $849.6 million for the year ended December 31, 2012, on silver equivalent sales of 27.3 million ounces (24.8 million ounces of silver and 46,100 ounces of gold). This represents a 16% increase from the $730.0 million in revenue generated for the year ended December 31, 2011, due primarily to a 30% increase in the number of ounces sold and a 6% increase in the average realized gold price, which were partially offset by a 10% decrease in the average realized selling price of silver.

Costs and Expenses

Average cash costs[1] in the fourth quarter of 2012 were $4.70 per silver equivalent ounce, compared with $4.06 during the comparable period of 2011. This resulted in cash operating margins[1] of $26.76 per silver equivalent ounce, a 5% decrease compared with the fourth quarter of 2011.  The slightly lower margins were primarily a result of the higher production payments associated with the precious metals stream on Hudbay's 777 mine ($5.90 and $400 per ounce of silver and gold, respectively).

Average cash costs[1] for the year ended December 31, 2012, were $4.30 per silver equivalent ounce, compared with $4.09 during the comparable period of 2011. This resulted in cash operating margins[1]of $26.79 per silver equivalent ounce, a 12% decrease compared with the year ended December 31, 2011, resulting primarily due to a 10% decrease in the average realized silver price.

Earnings and Operating Cash Flows

Net earnings in the fourth quarter of 2012 were $177.7 million ($0.50 per share), compared with net earnings of $144.7 ($0.41 per share) for the same period in 2011, an increase of 23%. Cash flow from operations in the fourth quarter of 2012 was $254.0 million ($0.72 per share[1]), compared with $163.7 million ($0.46 per share[1]) for the same period in 2011, an increase of 55%. The increase in net earnings and operating cash flows is primarily attributable to the increase in the amount of gold and silver sold in the quarter.

Net earnings for the year ended December 31, 2012, were $586.0 million ($1.66 per share), compared with net earnings of $550.0 million ($1.56 per share) for the same period in 2011, an increase of 7%. Cash flow from operations for the year ended December 31, 2012, was $719.4 million ($2.03 per share[1]) compared with $626.4 million ($1.77 per share[1]) for the same period in 2011, an increase of 15%. The increase in net earnings and operating cash flow is primarily attributable to the increase in the amount of gold and silver sold, slightly offset by the decrease in the average realized silver price.

Balance Sheet

At December 31, 2012, the Company had approximately $778 million of cash on hand. Subsequent to the year end, Silver Wheaton announced the acquisition of two gold streams from Vale for a cash consideration of $1.90 billion (plus 10 million Silver Wheaton warrants with a strike price of $65 and a term of 10 years).  As part of the funding for this transaction, Silver Wheaton entered into two new unsecured credit facilities, comprised of (1) a $1 billion revolving credit facility having a 5 year term (the "Revolving Facility"); and (2) a $1.5 billion bridge financing facility having a 1 year term (the "Bridge Facility"). The Revolving Facility and Bridge Facility replaced the $400 million Revolver Loan and the Term Loan, with the latter being repaid in full on February 22, 2013.  The $778 million of cash and cash equivalents as at December 31, 2012 combined with the liquidity provided by the $2.5 billion of new credit facilities positions the Company well to fund all outstanding commitments as well as providing flexibility to acquire additional accretive precious metal stream interests.

Operational Highlights

Attributable silver equivalent production was a record 8.5 million ounces (7.0 million ounces of silver and 26,400 ounces of gold) in the fourth quarter of 2012, a 22% increase compared to the fourth quarter of 2011. In 2012, Silver Wheaton experienced its fourth year of record annual attributable production of 29.6 million silver equivalent ounces (26.9 million ounces of silver and 50,000 ounces of gold), a 17% increase compared to 2011.

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

Operational highlights for the year ended December 31, 2012 are as follows:

Peñasquito - In 2012, the Peñasquito mine produced 6.6 million ounces of attributable silver, an increase of 24% over 2011.  Though production was higher than 2011, an unprecedented regional drought resulted in water shortages causing mill throughput to average 100,000 tonnes per day in 2012, below the design capacity of 130,000 tonnes per day.  As stated in Goldcorp Inc.'s ("Goldcorp") press release dated January 7, 2013, the Peñasquito mine continues to be impacted by the drought and as a result, throughput is expected to average 105,000 tonnes per day in 2013 as additional water wells are brought into production within the Cedros Basin in addition to new dewatering wells within the Chile Colorado pit.  A water and tailings study to develop a comprehensive long-term water strategy for the Peñasquito district is underway and Goldcorp expects this study to be completed during the first half of 2013.  

San Dimas- Attributable production from the San Dimas mine was 5.9 million ounces[1] in 2012, an increase of 6% over 2011.  On October 15, 2012, Primero Mining Corp. ("Primero") announced a mine and mill expansion of San Dimas. Primero has elected a staged approach to the full expansion and has approved the expenditure of a total of $14.4 million to expand the San Dimas mine and mill from 2,000 tonnes per day currently to 2,500 tonnes per day.  Construction of the mine and mill expansion began in October 2012, with an estimated completion during the first quarter of 2014.  A further plant expansion to 3,000 tonnes per day continues to be assessed and is dependent on future exploration success by Primero.

Zinkgruvan - Attributable production in 2012 was a record 2.5 million ounces, an increase of 48% over 2011, due to high ore grades, good recoveries, and continued strong throughput levels.  Production for 2013 is forecast to be 2.4 million ounces as more normalized grades are expected while throughput and recoveries are expected to remain strong.

Barrick & Pascua-Lama - Silver Wheaton's 2012 attributable production from the currently producing Barrick silver interests, consisting of Veladero, Lagunas Norte and Pierina mines, was 2.7 million ounces of silver.

As per Barrick's year-end 2012 MD&A, during the fourth quarter of 2012 Barrick finalized the cost estimate and schedule for its Pascua-Lama project. Initial production remains on track for the second half of 2014 and the total pre-production capital budget remained at $8.0 to $8.5 billion, of which $4.2 billion had been spent as of the end of 2012.  At the end of 2012, construction was approximately 40% complete with the four kilometer long conveyance tunnel approximately 70% complete.  Construction of the primary crusher in Chile commenced in January 2013, and, in Argentina, construction of the process plant facility advanced with approximately 60% of structural steel erected.  Also noted in Barrick's 2012 MD&A, Barrick halted all pre-stripping activities during the fourth quarter as increased dust, exacerbated by stronger than normal winds, was observed in the open pit area.  Regulatory authorities in Chile subsequently issued an order to suspend pre-stripping activities until strengthened dust mitigation and control measures could be implemented. To date, the suspension of pre-stripping has not altered Barrick's target of first production in the second half of 2014.

Until December 31, 2015, Silver Wheaton will be entitled to all or a portion of the silver production from Barrick's Veladero, Pierina and Lagunas Norte mines, to the extent Pascua-Lama is operating below 75% of design capacity. 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.

Produced But Not Yet Delivered  - Payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners decreased by 1.4 million ounces in the fourth quarter, resulting in a total of approximately 3.8 million payable ounces at December 31, 2012. This was primarily due to decreases in concentrate inventories at the 777, Yauliyacu, and Peñasquito mines.

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.

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[1] Production includes Goldcorp's four year commitment  to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero.

Developments Subsequent to 2012 Year End

Salobo and Sudbury - In February 2013, Silver Wheaton announced a deal with Vale S.A. to acquire 25% of the life of mine gold production from the Salobo Mine in Brazil and 70% of the gold production from its Canadian Sudbury mines for a 20-year term. The Salobo mine, the largest copper deposit ever found in Brazil, began operating in 2012 at a capacity of 12 million tonnes per annum (mtpa) of mill throughput capacity.  The mine is already undergoing an expansion to 24 mtpa and is expected to produce approximately 70 thousand ounces of gold annually for Silver Wheaton for the first ten years of full production.  Sudbury is one of the largest nickel producing areas globally and has an operating history dating back to 1885.  Vale's integrated operations in Sudbury are amongst the largest in the world and are expected to contribute 50 thousand ounces of gold annually on average over the next 20 years.

2013 and Long-Term Silver Equivalent Production Forecast

Based upon its current agreements -- including the gold streams from Vale's Salobo and Sudbury mines -- the Company forecasts 2013 attributable production of approximately 33.5 million silver equivalent ounces, including 145 thousand ounces of gold. This represents a 13% increase compared to 2012, which is primarily driven by a full year of production from Hudbay's 777 mine as well as the addition of gold production from Vale's Salobo and Sudbury mines.

By 2017, based upon its current agreements, annual attributable production is anticipated to increase by 79% to approximately 53 million silver equivalent ounces, including 180 thousand ounces of gold. The increase is the result of the anticipated ramp up of three new mines, including Barrick's Pascua-Lama project, Hudbay's Constancia project, and Augusta Resource's Rosemont project. The world-class Pascua-Lama project is forecast to commence production in mid-2014 and, in its first full five years of operation, will contribute approximately 9 million ounces of attributable silver production annually to Silver Wheaton.

Attributable mine-by-mine actual 2011 and 2012 production and forecast 2013 production are as follows:


                                                    Attributable Production[1],[2]
                                                     2011        2012        2013
                                                    Actual      Actual     Forecast

    Silver ounces produced (000's)
                           Peñasquito[3]             5,284       6,572       5,800
                           San Dimas[4]              5,585       5,905       6,500
                           Barrick[5]                2,980       2,696       1,700
                           Zinkgruvan                1,691       2,502       2,400
                           Yauliyacu                 2,548       2,412       2,500
                           Cozamin                   1,567       1,576       1,800
                           Other[6]                  4,902       5,231       5,100

                                                    24,557      26,894      25,800

    Gold ounces produced (000's)
                           Minto                      18.4        18.6          20
                           777                           -        31.4          70
                           Sudbury and Salobo            -           -          55
                                                      18.4        50.0         145

    Silver equivalent ounces produced (000's)[7]    25,374      29,571      33,500



    1) Ounces produced represent quantity of silver and gold contained in
       concentrate or doré prior to smelting or refining deductions.
    2) Production figures are based on information provided by the operators
       of the mining operations to which the silver or gold interests relate
       or management estimates in those situations where other information is
       not available.
    3) Production at Peñasquito is lower in 2013 due to lower grades in the
       mine plan.
    4) Production includes Goldcorp's four year commitment to deliver to
       Silver Wheaton 1.5 million ounces of silver per annum resulting from
       their sale of San Dimas to Primero
    5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
       Production in 2013 is lower due to forecasted lower grades at Lagunas
       Norte and Veladero, and declining production from Pierina as Barrick
       waits for approval to commence pushback.
    6) Includes the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill,
       Campo Morado, Minto, 777 and Aljustrel silver interests.
    7) Gold ounces produced 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. For the 2013 forecast, a silver price of $30 and gold price of
       $1,600 were used for the silver equivalent conversion.



Reserves and Resources

Silver Wheaton's attributable reserves and resources, as of December 31, 2012, can be found in the Company's news release dated March 19, 2013, and are available on the Company's website at http://www.silverwheaton.com and in its MD&A, also available on the Company's website and posted on SEDAR at http://www.sedar.com. Attributable reserves and resources are based on information available to the Company as of March 18, 2013.

This earnings release should be read in conjunction with Silver Wheaton's MD&A and audited 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.

Webcast and New Conference Call Details

A conference call will be held Friday, March 22, 2013, 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:                        26000662
    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:                        26000662
    Archived audio webcast:           http://www.silverwheaton.com



ABOUT SILVER WHEATON

Silver Wheaton is the largest precious metals streaming company in the world. Based upon its current agreements, forecast 2013 attributable production is approximately 33.5 million silver equivalent ounces[1], including 145 thousand ounces of gold. By 2017, annual attributable production is anticipated to increase significantly to approximately 53 million silver equivalent ounces[1], including 180 thousand ounces of gold. This growth is driven by the Company's portfolio of low-cost and long-life assets, including silver and precious metal streams on Barrick's Pascua-Lama project, Hudbay's Constancia project, and Vale's Salobo and Sudbury mines.

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.

CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES

For further information on Mineral Reserves and Mineral Resources and on Silver Wheaton more generally, readers should refer to Silver Wheaton's Annual Information Form for the year ended December 31, 2011, and other continuous disclosure documents filed by Silver Wheaton since January 1, 2012, available on SEDAR at http://www.sedar.com. Silver Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: The information contained herein uses the terms "Measured", "Indicated" and "Inferred" Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them and expressly prohibits U.S. registered companies from including such terms in their filings with the SEC. "Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves or that any exploration potential will ever be converted to any category of Mineral Reserves or Mineral Resources. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.  United States investors are urged to consider closely the disclosure in Silver Wheaton's Form 40-F, a copy of which may be obtained from Silver Wheaton or from http://www.sec.gov/edgar.shtml.

_____________________________
[1] Silver equivalent production forecast assumes a gold/silver ratio of 53.3:1.

Summarized Financial Results

                                                           Years Ended December 31
                                                       2012          2011          2010
    Silver equivalent production [1]
                Attributable silver ounces
                produced (000's)                     26,894        24,557        21,984
                Attributable gold ounces
                produced                             50,039        18,436        28,795
                Attributable silver equivalent
                ounces produced (000's) [1]          29,571        25,374        23,758
    Silver equivalent sales [1]
                Silver ounces sold (000's)           24,850        20,247        18,878
                Gold ounces sold                     46,094        18,256        25,884
                Silver equivalent ounces sold
                (000's) [1]                          27,328        21,069        20,483
    Average realized price ($'s per ounce)
                Average realized silver price   $     31.03   $     34.60   $     20.75
                Average realized gold price     $     1,701   $     1,609   $     1,224
                Average realized silver
                equivalent price [1]            $     31.09   $     34.65   $     20.67
    Average cash cost ($'s per ounce) [2]
                Average silver cash cost        $      4.06   $      3.99   $      3.97
                Average gold cash cost          $       362   $       300   $       300
                Average silver equivalent cash
                cost [1]                        $      4.30   $      4.09   $      4.04
    Total revenue ($000's)                      $   849,560   $   729,997   $   423,353
    Net earnings ($000's)                       $   586,036   $   550,028   $   153,381
    Add back - loss on fair value adjustment of Canadian dollar
    share purchase warrants issued                        -             -       133,210
    Adjusted net earnings [2] ($000's)          $   586,036   $   550,028   $   286,591
    Earnings per share
                                   Basic        $      1.66   $      1.56   $      0.45
                                   Diluted      $      1.65   $      1.55   $      0.44
    Adjusted earnings per share [2]
                                   Basic        $      1.66   $      1.56   $      0.83
                                   Diluted      $      1.65   $      1.55   $      0.83
    Cash flow from operations ($000's)          $   719,404   $   626,427   $   319,726
    Dividends
                Dividends paid ($000's)         $   123,852   $    63,612   $         -
                Dividends paid per share        $      0.35   $      0.18   $         -
    Total assets ($000's)                       $ 3,189,337   $ 2,872,335   $ 2,635,383
    Total non-current financial
    liabilities ($000's)                        $    23,555   $    50,424   $   200,966
    Shareholders' equity ($000's)               $ 3,107,074   $ 2,654,217   $ 2,261,949


1) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver pricereceived to the average gold price received during the period from the assets that produce both gold and silver.  

2) Refer to discussion on non-IFRS measures at the end of this press release. Consolidated Statements of Earnings

                                                               Years Ended December 31
    (US dollars and shares in thousands, except per share amounts) 2012           2011
    Sales                                                    $  849,560      $ 729,997
    Cost of sales
                       Cost of sales, excluding
                       depletion                             $  117,489      $  86,266
                       Depletion                                101,229         57,457
    Total cost of sales                                      $  218,718      $ 143,723
    Earnings from operations                                 $  630,842      $ 586,274
    Expenses and other income
                       General and administrative [1]        $   30,839      $  25,180
                       Foreign exchange loss (gain)                  29           (453)
                       Other (income) expense                      (817)         3,182
                                                             $   30,051      $  27,909
    Earnings before income taxes                             $  600,791      $ 558,365
    Income tax expense                                          (14,755)        (8,337)
    Net earnings                                             $  586,036      $ 550,028

    Basic earnings per share                                 $     1.66      $    1.56
    Diluted earnings per share                               $     1.65      $    1.55

    Weighted average number of shares outstanding
                       Basic                                    353,874        353,249
                       Diluted                                  356,008        355,904
    1) Equity settled stock based compensation (a non-cash item)
    included in general and administrative expenses.         $    6,420      $   6,329


Consolidated Statements of Comprehensive Income

                                                       Years Ended December 31
    (US dollars in thousands)                  2012           2011
    Net earnings                              $ 586,036      $  550,028
    Other comprehensive income (loss)
                    Loss on long-term
                    investments - common
                    shares held               $ (31,134)     $ (119,114)
                    Deferred income tax
                    recovery                      2,479          10,699
    Total other comprehensive loss            $ (28,655)     $ (108,415)
    Total comprehensive income                $ 557,381      $  441,613


Consolidated Balance Sheets

                                                  December 31      December 31
    (US dollars in thousands)                      2012             2011
    Assets
    Current assets
                      Cash and cash
                      equivalents                 $   778,216      $   840,201
                      Accounts receivable               6,197            3,890
                      Other                               966            1,221
    Total current assets                          $   785,379      $   845,312
    Non-current assets
                      Silver and gold
                      interests                   $ 2,281,234      $ 1,871,726
                      Long-term investments           121,377          151,621
                      Deferred income taxes                 -            2,301
                      Other                             1,347            1,375
    Total non-current assets                      $ 2,403,958      $ 2,027,023
    Total assets                                  $ 3,189,337      $ 2,872,335
    Liabilities
    Current liabilities
                      Accounts payable and
                      accrued liabilities         $    20,898      $     8,345
                      Current portion of
                      bank debt                        28,560           28,560
                      Current portion of
                      silver interest
                      payments                              -          130,789
    Total current liabilities                     $    49,458      $   167,694
    Non-current liabilities
                      Long-term portion of
                      bank debt                   $    21,500      $    50,060
                      Deferred income taxes             9,250                -
                      Performance share
                      units                             2,055              364
    Total non-current liabilities                 $    32,805      $    50,424
    Total liabilities                             $    82,263      $   218,118
    Shareholders' equity
    Issued capital                                $ 1,811,577      $ 1,793,772
    Reserves                                           (1,710)          25,422
    Retained earnings                               1,297,207          835,023
    Total shareholders' equity                    $ 3,107,074      $ 2,654,217
    Total liabilities and shareholders'
    equity                                        $ 3,189,337      $ 2,872,335



Consolidated Statements of Cash Flows

                                                       Years Ended December 31
    (US dollars in thousands)                      2012             2011
    Operating activities
    Net earnings                                  $   586,036      $   550,028
    Adjustments for
                      Depreciation and
                      depletion                       101,457           57,720
                      Equity settled
                      stock based
                      compensation                      6,420            6,329
                      Cash settled
                      stock based
                      compensation                      1,685              377
                      Deferred income
                      tax expense                      14,031            7,575
                      (Gain) loss on
                      fair value
                      adjustment of
                      share purchase
                      warrants held                      (496)           3,118
                      Investment income
                      recognized in net
                      earnings                         (1,367)            (929)
                      Other                               (15)             (97)
    Change in non-cash operating
    working capital                                    10,366            1,422
    Operating cash flows before
    interest received                             $   718,117      $   625,543
    Interest received                                   1,287              884
    Cash generated by operating activities        $   719,404      $   626,427

    Financing activities
    Bank debt repaid                              $   (28,560)     $   (28,560)
    Share purchase warrants exercised                   1,878               99
    Share purchase options exercised                   11,030            7,839
    Dividends paid                                   (123,852)         (63,612)
    Cash applied to financing activities          $  (139,504)     $   (84,234)

    Investing activities
    Silver and gold interests                     $  (640,718)     $  (140,063)
    Silver and gold interests -
    interest paid                                        (671)          (1,260)
    Acquisition of long-term
    investments                                          (395)         (13,674)
    Proceeds on disposal of long-term
    investments                                             -           24,270
    Dividend income received                               80               45
    Other                                                (192)             (54)
    Cash applied to investing activities          $  (641,896)     $  (130,736)

    Effect of exchange rate changes on
    cash and cash equivalents                     $        11      $       108
    (Decrease) increase in cash and cash
    equivalents                                   $   (61,985)     $   411,565
    Cash and cash equivalents, beginning
    of year                                           840,201          428,636
    Cash and cash equivalents, end of year        $   778,216      $   840,201



                                 Summary of Ounces Produced and Sold

                                   2012                                     2011
    (in
    thousands)      Q4         Q3        Q2      Q1        Q4        Q3     Q2        Q1

    Silver
    ounces
    produced
    [1]
    San Dimas
    [2]            1,694      1,288     1,231   1,692     1,578     1,251  1,150    1,606
    Zinkgruvan       566        621       673     642       390       379    414      508
    Yauliyacu        616        640       606     550       583       608    674      683
    Peñasquito     1,445      1,940     1,822   1,365     1,633     1,162  1,282    1,207
    Cozamin          372        370       429     405       433       395    414      325
    Barrick
    [3]              934        627       468     667       723       794    741      722
    Other [4]      1,407      1,260     1,276   1,288     1,389     1,272  1,153    1,088
                   7,034      6,746     6,505   6,609     6,729     5,861  5,828    6,139
    Silver
    equivalent
    ounces of
    gold
    produced
    [5]
    Minto            373        337       189     107       202       257    261       97
    777            1,059        612[6]      -       -         -         -      -        -
    Silver
    equivalent
    ounces
    produced
    [5]            8,466      7,695     6,694   6,716     6,931     6,118  6,089    6,236
    Silver
    ounces
    sold
    San Dimas
    [2]            1,629      1,178     1,295   1,701     1,488     1,232  1,149    1,748
    Zinkgruvan       532        495       580     517       425       319    401      321
    Yauliyacu      1,097        184     1,155     497       655        11    471      120
    Peñasquito     1,642      1,304     1,845   1,189       851     1,382    961      941
    Cozamin          406        301       395     376       374       335    281      271
    Barrick
    [3]              826        528       470     656       755       747    726      680
    Other [4]      1,215        796     1,049     992     1,230       770    862      741
                   7,347      4,786     6,789   5,928     5,778     4,796  4,851    4,822
    Silver
    equivalent
    ounces of
    gold sold
    [5]
    Minto            268        357       139     198       196       316    227       83
    777            1,516          -         -       -         -         -      -        -
    Silver
    equivalent
    ounces
    sold [5]       9,131      5,143     6,928   6,126     5,974     5,112  5,078    4,905
    Gold /
    silver
    ratio [5]       54.1       51.7      58.7    51.2      51.9      50.4   40.1     33.0
    Cumulative
    payable
    silver
    equivalent
    ounces
    produced
    but not
    yet
    delivered
    [7]            3,824      5,195     3,212   4,166     4,127     3,805  3,537    3,018


1. Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions.  Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available.  Certain production figures may be updated in future periods as additional information is received.  The Company has been informed that reported production related to the Yauliyacu mine may have been overstated by a total of approximately 200,000 ounces for all or some portion of the period between April 1, 2011 and June 30, 2012.  The required adjustments to production, if any, related to the Yauliyacu mine for these periods will be made once management completes a review of the timing and amount of any production variance.

2. 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, 777, Aljustrel and Campo Morado 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. Represents production for the period August 8, 2012 to September 30, 2012.

7. Based on management estimates.


                             Results of Operations and Operational Review

                                             Three Months Ended December 31, 2012
                                                                  Average       Average
                                                                  Realized        Cash
                                                                   Price          Cost
                             Ounces        Ounces                 ($'s Per      ($'s Per
                         Producedsquared    Sold       Sales       Ounce)      Ounce) [3]
    Silver
          San Dimas [4]            1,694    1,629   $  52,080   $    31.97   $       4.13
          Zinkgruvan                 566      532      16,485        30.99           4.15
          Yauliyacu                  616    1,097      30,753        28.03           4.08
          Peñasquito               1,445    1,642      53,697        32.71           3.99
          Cozamin                    372      406      13,109        32.25           4.12
          Barrick [5]                934      826      26,920        32.59           3.90
          Other [6]                1,407    1,215      38,182        31.43           4.43
                                   7,034    7,347   $ 231,226   $    31.47   $       4.12
    Gold
          Minto                    6,785    4,876   $   8,247   $    1,691   $        303
          777                     19,615   28,084      47,768        1,701            400
                                  26,400   32,960   $  56,015   $    1,699   $        386
    Silver equivalent
    [7]                            8,466    9,131   $ 287,241   $    31.46   $       4.70
    Corporate
          General and
          administrative
          Other
    Total corporate
                                   8,466    9,131   $ 287,241   $    31.46   $       4.70


Table continues...


                       Results of Operations and Operational Review

                                                  Three Months Ended December 31, 2012
                              Average
                             Depletion                  Cash Flow
                             ($'s Per        Net           From          Total
                              Ounce)       Earnings     Operations      Assets
    Silver
          San Dimas [4]    $      0.79   $   44,059   $     45,351   $   162,936
          Zinkgruvan              1.68       13,387         16,668        54,075
          Yauliyacu               5.02       20,773         32,106       215,295
          Peñasquito              2.96       42,287         47,147       487,272
          Cozamin                 4.05        9,790         11,873        19,135
          Barrick [5]             4.34       20,112         23,561       597,736
          Other [6]               6.29       25,167         33,296       381,467
                           $      3.46   $  175,575   $    210,002   $ 1,917,916
    Gold
          Minto            $       171   $    5,937   $      8,052   $    30,586
          777                      773       14,813         40,507       332,732
                           $       684   $   20,750   $     48,559   $   363,318
    Silver equivalent
    [7]                    $      5.25   $  196,325   $    258,561   $ 2,281,234
    Corporate
          General and
          administrative                 $   (9,159)
          Other                              (9,422)
    Total corporate                      $  (18,581)  $     (4,535)  $   908,103
                           $      5.25   $  177,744   $    254,026   $ 3,189,337


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.  Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available.  Certain production figures may be updated in future periods as additional information is received.

3. Refer to discussion on non-IFRS measures at the end of this press release.

4. Results for San Dimas include 1.5 million 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, 777 and Aljustrel silver interests in addition to the non-operating Rosemont silver and gold interest and Loma de La Plata and Constancia silver interests.

7. Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver.

                                Three Months Ended December 31, 2011
                                                                    Average     Average
                                                                    Realized     Cash
                                                                     Price       Cost
                                      Ounces    Ounces              ($'s Per   ($'s Per
                                   Produced [2]  Sold     Sales      Ounce)   Ounce) [3]
    Silver
                San Dimas [4]             1,578  1,488   $  44,641    $ 30.00     $  4.09
                Zinkgruvan                  390    425      13,537      31.87        4.10
                Yauliyacu                   583    655      22,270      34.00        4.02
                Peñasquito                1,633    851      27,374      32.17        3.96
                Cozamin                     433    374      12,786      34.18        4.08
                Barrick [5]                 723    755      24,673      32.67        3.90
                Other [6]                 1,389  1,230      40,120      32.63        3.94
                                          6,729  5,778   $ 185,401    $ 32.09     $  4.01
    Gold
                Minto                     3,891  3,777       6,466      1,712         301
    Silver equivalent [7]                 6,931  5,974   $ 191,867    $ 32.12     $  4.06
    Corporate
                General and administrative
                Other
    Total corporate
                                          6,931  5,974   $ 191,867    $ 32.12     $  4.06


Table continues...

                                 Three Months Ended December 31, 2011
                                      Average
                                     Depletion                 Cash Flow
                                     ($'s Per       Net          From
                                      Ounce)      Earnings    Operations     Total Assets
    Silver
                San Dimas [4]         $  0.71    $  37,494     $  38,551      $   167,527
                Zinkgruvan               1.69       11,077        14,061           57,639
                Yauliyacu                5.02       16,350        19,637          230,012
                Peñasquito               2.41       21,954        24,004          504,973
                Cozamin                  4.62        9,531        10,260           25,115
                Barrick [5]              3.60       19,008        21,728          601,085
                Other [6]                4.22       30,089        36,301          251,716
                                      $  2.90    $ 145,503     $ 164,542      $ 1,838,067
    Gold
                Minto                     169        4,689         6,314           33,659
    Silver equivalent [7]             $  2.91    $ 150,192     $ 170,856      $ 1,871,726
    Corporate
                General and administrative       $  (6,115)
                Other                                  670
    Total corporate                              $  (5,445)    $  (7,142)     $ 1,000,609
                                      $  2.91    $ 144,747     $ 163,714      $ 2,872,335


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.  Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available.  Certain production figures may be updated in future periods as additional information is received.

3. Refer to discussion on non-IFRS measures at the end of this press release.

4. Results for San Dimas include 1.5 million 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, 777 and Aljustrel silver interests in addition to the non-operating Rosemont silver and gold interest and Loma de La Plata and Constancia silver interests.

7. Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver.

                           Year Ended December 31, 2012
                                                          Average     Average
                                                          Realized     Cash
                                                           Price       Cost
                            Ounces    Ounces              ($'s Per   ($'s Per
                         Produced [2]  Sold     Sales      Ounce)   Ounce) [3]
    Silver
          San Dimas [4]         5,905  5,803   $ 181,906    $ 31.35     $  4.11
          Zinkgruvan            2,502  2,124      65,914      31.03        4.14
          Yauliyacu             2,412  2,933      86,185      29.38        4.07
          Peñasquito            6,572  5,980     186,085      31.12        3.99
          Cozamin               1,576  1,478      46,601      31.54        4.11
          Barrick [5]           2,696  2,480      78,359      31.60        3.90
          Other [6]             5,231  4,052     126,118      31.12        4.10
                               26,894 24,850   $ 771,168    $ 31.03     $  4.06
    Gold
          Minto                18,600 18,010   $  30,624    $ 1,700     $   303
          777                  31,439 28,084      47,768      1,701         400
                               50,039 46,094   $  78,392    $ 1,701     $   362
    Silver equivalent
    [7]                        29,571 27,328   $ 849,560    $ 31.09     $  4.30
    Corporate
          General and
          administrative
          Other
    Total corporate
                               29,571 27,328   $ 849,560    $ 31.09     $  4.30


Table continues...

                             Year Ended December 31, 2012
                           Average
                          Depletion                  Cash Flow
                          ($'s Per        Net           From
                           Ounce)      Earnings      Operations     Total Assets
    Silver
          San Dimas [4]      $  0.79    $  153,469     $  158,060      $   162,936
          Zinkgruvan            1.68        53,553         55,855           54,075
          Yauliyacu             5.02        59,531         80,077          215,295
          Peñasquito            2.96       144,524        162,225          487,272
          Cozamin               4.05        34,552         40,143           19,135
          Barrick [5]           4.34        57,926         69,504          597,736
          Other [6]             4.72        90,381        108,208          381,467
                             $  3.08    $  593,936     $  674,072      $ 1,917,916
    Gold
          Minto              $   171    $   22,094     $   25,059      $    30,586
          777                    773        14,812         40,507          332,732
                             $   538    $   36,906     $   65,566      $   363,318
    Silver equivalent
    [7]                      $  3.70    $  630,842     $  739,638      $ 2,281,234
    Corporate
          General and
          administrative                $  (30,839)
          Other                            (13,967)
    Total corporate                     $  (44,806)    $  (20,234)     $   908,103
                             $  3.70    $  586,036     $  719,404      $ 3,189,337


 

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.  Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available.  Certain production figures may be updated in future periods as additional information is received.

3. Refer to discussion on non-IFRS measures at the end of this press release.

4. Results for San Dimas include 1.5 million 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, 777 and Aljustrel silver interests in addition to the non-operating Rosemont silver and gold interest and Loma de La Plata and Constancia silver interests.

7. Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver.

                           Year Ended December 31, 2011
                                                          Average     Average
                                                          Realized     Cash
                                                           Price       Cost
                            Ounces    Ounces              ($'s Per   ($'s Per
                         Produced [2]  Sold     Sales      Ounce)   Ounce) [3]
    Silver
          San Dimas [4]         5,585  5,617   $ 188,377    $ 33.54     $  4.06
          Zinkgruvan            1,691  1,466      52,974      36.14        4.08
          Yauliyacu             2,548  1,257      43,911      34.93        4.02
          Peñasquito            5,284  4,135     143,069      34.61        3.93
          Cozamin               1,567  1,261      43,990      34.85        4.07
          Barrick [5]           2,980  2,908     102,454      35.23        3.90
          Other [6]             4,902  3,603     125,854      34.93        3.94
                               24,557 20,247   $ 700,629    $ 34.60     $  3.99
    Gold
          Minto                18,436 18,256      29,368      1,609         300
    Silver equivalent
    [7]                        25,374 21,069   $ 729,997    $ 34.65     $  4.09
    Corporate
          General and
          administrative
          Other
    Total corporate
                               25,374 21,069   $ 729,997    $ 34.65     $  4.09


Table continues...

                             Year Ended December 31, 2011
                           Average
                          Depletion                  Cash Flow
                          ($'s Per        Net           From
                           Ounce)      Earnings      Operations     Total Assets
    Silver
          San Dimas [4]      $  0.71    $  161,554     $  164,453      $   167,527
          Zinkgruvan            1.69        44,503         49,377           57,639
          Yauliyacu             5.02        32,555         38,863          230,012
          Peñasquito            2.41       116,855        126,812          504,973
          Cozamin               4.62        33,018         40,586           25,115
          Barrick [5]           3.58        80,692         89,554          601,085
          Other [6]             4.27        96,298        112,414          251,716
                             $  2.69    $  565,475     $  622,059      $ 1,838,067
    Gold
          Minto                  169        20,799         24,240           33,659
    Silver equivalent
    [7]                      $  2.73    $  586,274     $  646,299      $ 1,871,726
    Corporate
          General and
          administrative                $  (25,180)
          Other                            (11,066)
    Total corporate                     $  (36,246)    $  (19,872)     $ 1,000,609
                             $  2.73    $  550,028     $  626,427      $ 2,872,335


  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.  Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available.  Certain production figures may be updated in future periods as additional information is received.
  3. Refer to discussion on non-IFRS measures at the end of this press release.
  4. Results for San Dimas include 1.5 million 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) operating cash flow per share (basic and diluted); (ii) average cash costs of silver and gold on a per ounce basis; (iii) cash operating margin; and (iv) adjusted net earnings and adjusted net earnings per share.

  1. 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.
  2. 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.
  3. 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.
  4. Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of the non-cash, fair value adjustment on the Company's previously issued and outstanding share purchase warrants, which had an exercise price denominated in Canadian dollars, from net earnings of the Company.  These share purchase warrants are classified as a financial liability with any fair value adjustments being reflected as a component of net earnings.  This accounting treatment was applicable to the share purchase warrants which expired or were exercised prior to December 22, 2010.  The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance.

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

(SLW. SLW)

SOURCE Silver Wheaton Corp.



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