VANCOUVER, Aug. 11 /PRNewswire-FirstCall/ -- Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW) is pleased to announce its unaudited results for the second quarter ended June 30, 2010.
SECOND QUARTER HIGHLIGHTS ------------------------------------------------------------------------- - Net earnings increased by almost 200% to a record US$53.3 million (US$0.16 per share), compared with US$18.4 million (US$0.07 per share) in 2009. - Operating cash flows increased by more than 150% to US$67.0 million (US$0.20 per share)(1), compared with US$26.5 million (US$0.09 per share)(1) in 2009. - Attributable silver equivalent production of 5.7 million ounces (5.3 million ounces of silver and 5,800 ounces of gold), representing an increase of 33% over the comparable period in 2009. - Record silver equivalent sales of 5.1 million ounces (4.6 million ounces of silver and 7,600 ounces of gold), representing an increase of 74% over the comparable period in 2009. - Total cash costs(1) of US$4.03 per silver equivalent ounce, compared with US$3.99 per ounce in 2009. - Cash operating margin(1) increased by 44% to US$14.45 per silver equivalent ounce, compared with US$10.05 per ounce in 2009. - Production at Goldcorp Inc.'s world-class gold-silver-lead-zinc Penasquito mine continued to ramp up on or ahead of schedule, with the second sulphide processing line achieving mechanical completion ahead of its previously expected third quarter completion date. Penasquito's Line 1 is regularly operating at a designed daily throughput of 50,000 tonnes, and Line 2 is now in the commissioning phase and ramping up to add another 50,000 tonnes per day of capacity. Upon completion of the high pressure grinding circuit, Penasquito is anticipated to ramp up to full production capacity of 130,000 tonnes per day by early 2011. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life. - Barrick Gold Corp.'s world-class gold-silver Pascua-Lama project remains on track to enter production in the first quarter of 2013. Detailed engineering and procurement is nearing completion with many major items now purchased. Once in production, Pascua Lama is forecast to be one of the largest and lowest cost gold mines in the world with average annual production attributable to Silver Wheaton, in its first five years, of approximately 9 million ounces of silver. Pascua-Lama is a long-life asset with an expected mine life in excess of 25 years. - Acquired, by way of a private placement financing, 1.8 million units of Ventana Gold Corp. for total consideration of C$20.7 million (US $19.8 million). As part of this transaction, Silver Wheaton has been granted a right of first refusal over any silver streams relating to Ventana's Colombian properties, including the highly prospective La Bodega project, which has the potential to host a world-class gold deposit with significant silver by product credits. - Subsequent to quarter end, Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp. ("Primero"). In conjunction with the sale, Silver Wheaton agreed to amend its silver purchase agreement relating to the mine. The term of the silver purchase agreement, which was set to expire in 2029, has been extended to life of mine. During the first four years following closing of the transaction, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. Beginning in the fifth year after closing, Primero will deliver to the Company a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess. Goldcorp will continue to guarantee the delivery by Primero of all silver produced and owing to the Company until 2029, and a payment of US$0.50 per ounce for any shortfall below 215 million cumulative silver ounces delivered to Silver Wheaton by the end of 2031. Primero has provided Silver Wheaton with a right of first refusal on any metal stream or similar transaction it enters into. --------------------------------------- (1) Refer to discussion on non-GAAP measures at the end of this press release.
"Another very solid quarter resulted in record sales and earnings," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With Goldcorp's Penasquito mine in Mexico, the first of our cornerstone assets, continuing to ramp up silver production ahead of schedule, we look forward to an even stronger second half to the year and maintain our annual attributable silver equivalent production guidance of 23.5 million ounces. In the face of continued global economic uncertainty, the price of silver performed very well in the quarter, leading to record cash operating margins of US$14.45 per ounce, and clearly demonstrating the advantages of Silver Wheaton's business model of low fixed operating costs."
"Two transactions, both having potential to further increase Silver Wheaton's industry leading production growth profile, were also completed in the quarter. First, in connection with Goldcorp's sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer, Silver Wheaton agreed to amend its silver purchase agreement to the benefit of both parties. The final agreement provides Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine."
"Second, Silver Wheaton acquired a right of first refusal over any silver streams relating to Ventana Gold Corp.'s Colombian properties, including its flagship high-grade gold-silver La Bodega project, one of the most exciting gold discoveries in the last decade. As Ventana continues to advance this potential world-class project closer to production and evaluates project financing options, we anticipate working towards completing a silver streaming agreement."
This earnings release should be read in conjunction with Silver Wheaton's unaudited MD&A and Financial Statements, which are available on the Company's website at http://www.silverwheaton.com/ and have been posted on SEDAR at http://www.sedar.com/.
A conference call will be held Thursday, August 12, 2010, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:
Dial toll free from Canada or the US: 1-888-231-8191 Dial from outside Canada or the US: 1-647-427-7450 Pass code: 80637046 Live audio webcast: 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: 1-800-642-1687 Dial from outside Canada or the US: 1-416-849-0833 Pass code: 80637046 Archived audio webcast: http://www.silverwheaton.com/ About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Penasquito mine and Barrick's Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Silver Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's Annual Information Form available on SEDAR at 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 Operations (unaudited) (US dollars and shares in thousands, except Three Months Ended Six Months Ended per share amounts June 30 June 30 - unaudited) 2010 2009 2010 2009 ------------------------------------------------------------------------- Sales $ 95,004 $ 41,403 $ 180,942 $ 78,975 ------------------------------------------------------------------------- Cost of sales 20,700 11,764 40,868 24,304 Depletion 15,360 6,419 28,911 13,006 ------------------------------------------------------------------------- 36,060 18,183 69,779 37,310 ------------------------------------------------------------------------- Earnings from operations 58,944 23,220 111,163 41,665 ------------------------------------------------------------------------- Expenses and other income General and administrative(1) 6,118 4,433 13,313 9,011 Gain on mark-to-market of warrants held (397) (30) (233) (33) Other (35) 379 196 (862) ------------------------------------------------------------------------- 5,686 4,782 13,276 8,116 ------------------------------------------------------------------------- Net earnings 53,258 18,438 97,887 33,549 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Basic earnings per share $ 0.16 $ 0.07 $ 0.29 $ 0.12 Diluted earnings per share $ 0.15 $ 0.06 $ 0.28 $ 0.12 Weighted average number of shares outstanding Basic 342,898 297,973 342,618 284,205 Diluted 348,441 301,235 347,492 286,976 ------------------------------------------------------------------------- 1) Stock based compensation (a non-cash item) included in general and administrative $ 2,017 $ 830 $ 5,125 $ 2,689 Consolidated Balance Sheets (unaudited) June 30 December 31 (US dollars in thousands - unaudited) 2010 2009 ------------------------------------------------------------------------- Assets Current Cash and cash equivalents $ 322,896 $ 227,566 Accounts receivable 7,912 4,881 Other 1,971 1,027 ------------------------------------------------------------------------- 332,779 233,474 Long-term investments 97,133 73,747 Silver and gold interests 1,948,208 1,928,476 Other 1,352 1,527 ------------------------------------------------------------------------- $2,379,472 $2,237,224 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities Current Accounts payable $ 1,760 $ 5,397 Accrued liabilities 4,270 4,578 Current portion of bank debt 28,560 28,560 Current portion of silver interest payments 158,326 130,788 ------------------------------------------------------------------------- 192,916 169,323 Long-term portion of bank debt 92,900 107,180 Long-term portion of silver interest payments 244,829 236,796 ------------------------------------------------------------------------- 530,645 513,299 ------------------------------------------------------------------------- Shareholders' Equity Issued capital and contributed surplus 1,357,623 1,333,191 ------------------------------------------------------------------------- Retained earnings 441,721 343,834 Accumulated other comprehensive income 49,483 46,900 ------------------------------------------------------------------------- 491,204 390,734 ------------------------------------------------------------------------- 1,848,827 1,723,925 ------------------------------------------------------------------------- $2,379,472 $2,237,224 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated Statement of Cash Flows (unaudited) Three Months Ended Six Months Ended (US dollars in thousands June 30 June 30 - unaudited) 2010 2009 2010 2009 ------------------------------------------------------------------------- Operating Activities Net earnings $ 53,258 $ 18,438 $ 97,887 $ 33,549 Items not affecting cash Depreciation and depletion 15,426 6,482 29,042 13,130 Stock based compensation 2,017 830 5,125 2,689 Gain on mark-to-market of warrants held (397) (30) (233) (33) Other 244 (325) 372 190 Change in non-cash operating working capital (3,558) 1,058 (7,603) 48 ------------------------------------------------------------------------- Cash generated by operating activities 66,990 26,453 124,590 49,573 ------------------------------------------------------------------------- Financing Activities Bank debt repaid (7,140) (7,140) (14,280) (227,780) Shares issued - - - 230,424 Share issue costs - (427) (85) (9,975) Share purchase warrants exercised 839 77 1,006 163 Share purchase options exercised 15,008 1,502 18,302 1,589 ------------------------------------------------------------------------- Cash generated by (applied to) financing activities 8,707 (5,988) 4,943 (5,579) ------------------------------------------------------------------------- Investing Activities Silver and gold interests (13,194) (1,276) (13,711) (4,647) Acquisition of Silverstone Resources Corp., net of cash acquired - 2,668 (201) 2,668 Long-term investments (19,754) - (20,889) - Other 417 (72) 406 16 ------------------------------------------------------------------------- Cash (applied to) generated by investing activities (32,531) 1,320 (34,395) (1,963) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 72 61 192 (551) ------------------------------------------------------------------------- Increase in cash and cash equivalents 43,238 21,846 95,330 41,480 Cash and cash equivalents, beginning of period 279,658 26,744 227,566 7,110 ------------------------------------------------------------------------- Cash and cash equivalents, end of period $ 322,896 $ 48,590 $ 322,896 $ 48,590 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Results of Operations (unaudited) Three Months Ended June 30, 2010 ------------------------------------------------------------------------- Average realized price Ounces Ounces Sales (US$'s per produced(3) sold (US$'s) ounce) ------------------------------------------------------------------------- Silver San Dimas 1,110 1,076 $ 19,999 $ 18.58 Zinkgruvan 478 313 5,727 18.29 Yauliyacu 692 517 9,688 18.74 Penasquito 800 656 12,111 18.46 Minto 49 46 860 18.63 Cozamin 286 412 7,588 18.44 Barrick(5) 697 727 13,242 18.20 Other(6) 1,159 897 16,544 18.45 ------------------------------------------------------------------------- 5,271 4,644 $ 85,759 $ 18.46 Gold Minto 5,802 7,584 $ 9,245 $ 1,219 ------------------------------------------------------------------------- Silver Equivalent(7) 5,651 5,140 $ 95,004 $ 18.48 Corporate ------------------------------------------------------------------------- 5,651 5,140 $ 95,004 $ 18.48 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three Months Ended June 30, 2010 ------------------------------------------------------------------------- Cash flow Total Total Net from cash cost depletion earnings (used in) (US$'s per (US$'s per (loss) operations ounce)(4) ounce)(4) (US$'s) (US$'s) ------------------------------------------------------------------------- Silver San Dimas $ 4.04 $ 0.79 $ 14,804 $ 15,651 Zinkgruvan 4.04 1.72 3,924 4,352 Yauliyacu 3.98 3.47 5,835 7,610 Penasquito 3.90 2.54 7,885 9,553 Minto 3.90 3.69 510 819 Cozamin 4.04 4.62 4,022 5,620 Barrick(5) 3.90 3.55 7,825 9,205 Other(6) 3.92 4.53 8,965 12,844 ------------------------------------------------------------------------- $ 3.97 $ 2.92 $ 53,770 $ 65,654 Gold Minto $ 300 $ 237 $ 5,174 $ 7,633 ------------------------------------------------------------------------- Silver Equivalent(7) $ 4.03 $ 2.99 $ 58,944 $ 73,287 Corporate (5,686) (6,297) ------------------------------------------------------------------------- $ 4.03 $ 2.99 $ 53,258 $ 66,990 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) All figures in thousands except gold ounces produced and sold and per ounce amounts. (2) Ounces produced represent the quantity of silver and gold contained in concentrate or dore prior to smelting or refining deductions. (3) Certain production figures are based on management estimates. (4) Refer to discussion on non-GAAP measures at the end of this press release. (5) Comprised of the Lagunas Norte, Pierina and Veladero mines. (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. (7) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. Three Months Ended June 30, 2009 ------------------------------------------------------------------------- Average realized price Ounces Ounces Sales (US$'s per produced sold (US$'s) ounce) ------------------------------------------------------------------------- Silver San Dimas 1,264 1,254 $ 17,577 $ 14.02 Zinkgruvan 480 469 6,746 14.38 Yauliyacu 870 546 7,593 13.91 Penasquito 162 130 1,853 14.28 Minto 37(5) (1)(4) (7)(4) 13.11 Cozamin 262(5) 213 2,935 13.78 Other(6) 750(5) 327 4,571 13.92 ------------------------------------------------------------------------- 3,825 2,938 $ 41,268 $ 14.04 Gold Minto 6,823(5) 145(4) $ 135(4) $ 925 ------------------------------------------------------------------------- Silver Equivalent(7) 4,253 2,950 $ 41,403 $ 14.04 Corporate ------------------------------------------------------------------------- 4,253 2,950 $ 41,403 $ 14.04 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three Months Ended June 30, 2009 ------------------------------------------------------------------------- Cash flow Total Total Net from cash cost depletion earnings (used in) (US$'s per (US$'s per (loss) operations ounce)(3) ounce)(3) (US$'s) (US$'s) ------------------------------------------------------------------------- Silver San Dimas $ 4.02 $ 0.65 $ 11,721 $ 12,538 Zinkgruvan 4.02 1.78 4,024 5,159 Yauliyacu 3.94 3.47 3,546 5,442 Penasquito 3.90 2.35 1,041 1,347 Minto 3.90 4.42 (3) 15 Cozamin 4.00 4.66 1,090 3,388 Other(6) 3.92 4.67 1,751 3,656 ------------------------------------------------------------------------- $ 3.99 $ 2.17 $ 23,170 $ 31,545 Gold Minto $ 300 $ 284 $ 50 $ 192 ------------------------------------------------------------------------- Silver Equivalent(7) $ 3.99 $ 2.18 $ 23,220 $ 31,737 Corporate (4,782) (5,284) ------------------------------------------------------------------------- $ 3.99 $ 2.18 $ 18,438 $ 26,453 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) All figures in thousands except gold ounces produced and sold and per ounce amounts. (2) Ounces produced represent the quantity of silver contained in concentrate or dore prior to smelting or refining deductions. (3) Refer to discussion on non-GAAP measures at the end of this press release. (4) No concentrate shipments were made during the period. Amounts reflected above represent provisional invoice adjustments. (5) Production figures for Silverstone assets acquired have been pro rated based on the number of days in the quarter following the Silverstone acquisition. (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. (7) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. Six Months Ended June 30, 2010 ------------------------------------------------------------------------- Average realized price Ounces Ounces Sales (US$'s per produced(3) sold (US$'s) ounce) ------------------------------------------------------------------------- Silver San Dimas 2,316 2,282 $ 40,850 $ 17.90 Zinkgruvan 865 811 14,284 17.61 Yauliyacu 1,429 1,098 19,824 18.05 Penasquito 1,320 1,080 19,486 18.05 Minto 111 93 1,649 17.61 Cozamin 687 693 12,401 17.91 Barrick(5) 1,477 1,510 26,740 17.71 Other(6) 2,012 1,504 26,987 17.95 ------------------------------------------------------------------------- 10,217 9,071 $ 162,221 $ 17.88 Gold Minto 13,358 16,194 $ 18,721 $ 1,156 ------------------------------------------------------------------------- Silver Equivalent(7) 11,097 10,138 $ 180,942 $ 17.85 Corporate ------------------------------------------------------------------------- 11,097 10,138 $ 180,942 $ 17.85 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Six Months Ended June 30, 2010 ------------------------------------------------------------------------- Cash flow Total Total Net from cash cost depletion earnings (used in) (US$'s per (US$'s per (loss) operations ounce)(4) ounce)(4) (US$'s) (US$'s) ------------------------------------------------------------------------- Silver San Dimas $ 4.04 $ 0.79 $ 29,837 $ 31,631 Zinkgruvan 4.04 1.72 9,615 10,056 Yauliyacu 3.98 3.47 11,645 15,460 Penasquito 3.90 2.54 12,528 15,275 Minto 3.90 3.69 939 1,227 Cozamin 4.03 4.62 6,413 9,656 Barrick(5) 3.90 3.52 15,530 17,615 Other(6) 3.92 4.32 14,598 21,417 ------------------------------------------------------------------------- $ 3.97 $ 2.77 $ 101,105 $ 122,337 Gold Minto $ 300 $ 235 $ 10,058 $ 13,386 ------------------------------------------------------------------------- Silver Equivalent(7) $ 4.03 $ 2.85 $ 111,163 $ 135,723 Corporate (13,276) (11,133) ------------------------------------------------------------------------- $ 4.03 $ 2.85 $ 97,887 $ 124,590 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) All figures in thousands except gold ounces produced and sold and per ounce amounts. (2) Ounces produced represent the quantity of silver and gold contained in concentrate or dore prior to smelting or refining deductions. (3) Certain production figures are based on management estimates. (4) Refer to discussion on non-GAAP measures at the end of this press release. (5) Comprised of the Lagunas Norte, Pierina and Veladero mines. (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. (7) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. Six Months Ended June 30, 2009 ------------------------------------------------------------------------- Average realized price Ounces Ounces Sales (US$'s per produced sold (US$'s) ounce) ------------------------------------------------------------------------- Silver San Dimas 2,587 2,606 $ 34,104 $ 13.09 Zinkgruvan 941 920 12,162 13.22 Yauliyacu 1,609 1,289 16,282 12.63 Penasquito 322 265 3,414 12.89 Minto 37(5) (1)(4) (7)(4) 13.11 Cozamin 262(5) 213 2,935 13.78 Other(6) 1,309(5) 804 9,950 12.36 ------------------------------------------------------------------------- 7,067 6,096 $ 78,840 $ 12.93 Gold Minto 6,823(5) 145(4) $ 135(4) $ 925 ------------------------------------------------------------------------- Silver Equivalent(7) 7,495 6,108 $ 78,975 $ 12.93 Corporate ------------------------------------------------------------------------- 7,495 6,108 $ 78,975 $ 12.93 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Six Months Ended June 30, 2009 ------------------------------------------------------------------------- Cash flow Total Total Net from cash cost depletion earnings (used in) (US$'s per (US$'s per (loss) operations ounce)(3) ounce)(3) (US$'s) (US$'s) ------------------------------------------------------------------------- Silver San Dimas $ 4.02 $ 0.74 $ 21,697 $ 23,628 Zinkgruvan 4.02 1.78 6,825 8,379 Yauliyacu 3.92 3.47 6,758 11,233 Penasquito 3.90 2.35 1,758 2,381 Minto 3.90 4.42 (3) 15 Cozamin 4.00 4.66 1,090 3,388 Other(6) 3.92 4.10 3,490 7,487 ------------------------------------------------------------------------- $ 3.98 $ 2.13 $ 41,615 $ 56,511 Gold Minto $ 300 $ 284 $ 50 $ 192 ------------------------------------------------------------------------- Silver Equivalent(7) $ 3.98 $ 2.13 $ 41,665 $ 56,703 Corporate (8,116) (7,130) ------------------------------------------------------------------------- $ 3.98 $ 2.13 $ 33,549 $ 49,573 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) All figures in thousands except gold ounces produced and sold and per ounce amounts. (2) Ounces produced represent the quantity of silver and gold contained in concentrate or dore prior to smelting or refining deductions. (3) Refer to discussion on non-GAAP measures at the end of this press release. (4) No concentrate shipments were made during the period. Amounts reflected above represent provisional invoice adjustments. (5) Production figures for Silverstone assets acquired have been pro rated based on the number of days in the quarter following the Silverstone acquisition. (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. (7) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. Non-GAAP Measures
Silver Wheaton has included, throughout this document, certain non-GAAP performance measures, including total cash costs of silver and gold on a sales basis, as well as operating cash flows per share and cash operating margin. These non-GAAP measures do not have any standardized meaning prescribed by GAAP, nor are they necessarily comparable with similar measures presented by other companies. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Cash operating margin is defined as the realized selling price less total cash cost per silver equivalent ounce. The Company believes that certain investors use this information to evaluate the Company's performance. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. During the three months ended June 30, 2010, the Company's total cash costs, which were equivalent to the Company's cost of sales in accordance with GAAP, were US$3.97 per ounce of silver and US$300 per ounce of gold (three months ended June 30, 2009 - US$3.97 per ounce of silver and US$300 per ounce of gold).
Silver Wheaton Corp.
CONTACT: Brad Kopp, Vice President, Investor Relations, Silver Wheaton
Corp., Tel: 1-800-380-8687, Email: info@silverwheaton.com, Website:
http://www.silverwheaton.com/
