Exhibit 99.1
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| FOR IMMEDIATE RELEASE | TSX:SLW |
| Nov 8, 2010 | NYSE:SLW |
SILVER WHEATON REPORTS RECORD QUARTERLY EARNINGS
Vancouver, British Columbia – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX, NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended September 30, 2010.
THIRD QUARTER HIGHLIGHTS
Net earnings more than doubled to a record US$69.2 million (US$0.20 per share),compared with US$33.6 million (US$0.11 per share) in 2009.
Operating cash flows increased 55% to US$70.5 million (US$0.20 per share)1,compared with US$45.4 million (US$0.14 per share)1in 2009.
Record attributable silver equivalent production of 5.9 million ounces (5.5 millionounces of silver and 7,000 ounces of gold), representing an increase of 41% over thecomparable period in 2009.
Silver equivalent sales of 4.7 million ounces (4.3 million ounces of silver and 7,100ounces of gold), lagging production for the quarter due primarily to the build-up ofconcentrate inventory as the Peñasquito mine ramps up production, as well as timingof concentrate shipments from the Yauliyacu and Campo Morado mines.
As at September 30, 2010, approximately 2.2 million payable silver equivalent ouncesattributable to the Company have been produced at the various mines and will berecognized in future sales as they are delivered to the Company under the terms oftheir contracts.
Total cash costs1of US$4.09 per silver equivalent ounce, compared with US$4.08 perounce in 2009.
Cash operating margin1increased 42% compared to 2009, to a record US$15.72 persilver equivalent ounce, while average silver prices over the same period increasedby 29%.
Goldcorp Inc. announced that its world-class gold-silver-lead-zinc Peñasquito mineachieved commercial production during the quarter with peak throughput rates ashigh as 105,000 tonnes per day. The ramp up to full production capacity of 130,000tonnes per day is anticipated by early 2011. Annual production attributable to SilverWheaton from the mine is expected to average approximately 7 million ounces ofsilver over the estimated 22 year mine life.
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| 1Refer to discussion on non-GAAP measures at the end of this press release. |
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Barrick Gold Corp.’s world-class gold-silver Pascua-Lama project remains on track toenter production in the first quarter of 2013, with detailed engineering andprocurement nearing completion and earthworks underway. Once in production,Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in theworld with an expected mine life in excess of 25 years. In its first five years ofoperation, Silver Wheaton’s attributable silver production is expected to average 9million ounces annually.
Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp. Inconjunction with the sale, Silver Wheaton amended its silver purchase agreementrelating to the mine. The term of the silver purchase agreement, which was set toexpire in 2029, has been extended to life of mine. During the first four years followingclosing of the transaction, Primero will deliver to Silver Wheaton a per annum amountequal 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 ofsilver per annum to be delivered by Goldcorp. Beginning in the fifth year afterclosing, Primero will deliver to the Company a per annum amount equal to the first 6million 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 andowing to the Company until 2029, and a payment of US$0.50 per ounce for anyshortfall below 215 million cumulative silver ounces delivered to Silver Wheaton bythe end of 2031. Primero has provided Silver Wheaton with a right of first refusal onany metal stream or similar transaction it enters into.
“Silver Wheaton had record production in the quarter, anchored by the continued successful ramp up of one of our cornerstone growth assets, Goldcorp’s world-class Peñasquito mine in Mexico,” said Peter Barnes, Chief Executive Officer of Silver Wheaton. “Peñasquito reached commercial production during the quarter and expects to achieve full production capacity in early 2011, in what promises to be another year of significant production growth for Silver Wheaton.”
“While quarterly sales were lower than production, due in part to the build-up of concentrate inventory as Peñasquito ramps up production, as well as the timing of shipments from the Yauliyacu and Campo Morado mines, we still achieved record earnings. Increased shipments in the fourth quarter are expected to make up for the sales shortfall and we remain on track to meet production guidance of 23.5 million silver equivalent ounces in 2010, growing to approximately 40 million ounces by 2013.”
“In an environment of continued economic uncertainty, investment demand for silver remains very strong, and silver prices approached 30 year highs in the quarter. This resulted in record cash operating margins of US$15.72 per ounce, generating strong free cash flows to fund future growth.”
“Lastly, during the quarter, Goldcorp finalized the sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer. In conjunction with this, Silver Wheaton amended its silver purchase agreement, which continues to provide Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine. San Dimas remains a key asset within our portfolio and we are confident that the amended silver purchase agreement will create additional long term value for our stakeholders.”
This earnings release should be read in conjunction with Silver Wheaton’s unaudited MD&A and Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.
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A conference call will be held Tuesday, November 9, 2010, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call use one of the following methods:
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| Dial toll free from Canada or the US: | 1- 888-231-8191 |
| Dial from outside Canada or the US: | 1-647-427-7450 |
| Pass code: | 15809030 |
| Live audio webcast: | www.silverwheaton.com |
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and you can listen to an archive of the call by one of the following methods:
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| Dial toll free from Canada or the US: | 1- 800-642-1687 |
| Dial from outside Canada or the US: | 1-416-849-0833 |
| Pass code: | 15809030 |
| Archived audio webcast: | www.silverwheaton.com |
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.0 million ounces of silver and 28,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine and Barrick’s Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, reserve determination 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”, “an ticipates” 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 atwww.sedar.comand 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
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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.
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Consolidated Statement of Operations (unaudited)
| | Three Months Ended
September 30 | Nine Months Ended
September 30 |
(US dollars and shares in thousands, except per share amounts - unaudited) | | 2010 | 2009 | 2010 | 2009 |
Sales | | $ | 92,834 | | $ | 69,767 | | $ | 273,776 | | $ | 148,742 | |
| | | | | | | | | | | | | |
Cost of sales | | 19,154 | | | 18,765 | | | 60,022 | | | 43,069 | |
Depletion | | | 12,505 | | | 13,164 | | | 41,416 | | | 26,170 | |
| | | 31,659 | | | 31,929 | | | 101,438 | | | 69,239 | |
Earnings from operations | | | 61,175 | | | 37,838 | | | 172,338 | | | 79,503 | |
| | | | | | | | | | | | | |
Expenses and other income | | | | | | | | | | | | | |
General and administrative1 | | | 4,947 | | | 3,906 | | | 18,260 | | | 12,917 | |
Gain on mark-to-market of warrants held | | | (7,861) | | | - | | | (8,094) | | | (33) | |
Other | | | (360) | | | 366 | | | (164) | | | (496) | |
| | (3,274) | | | 4,272 | | | 10,002 | | | 12,388 | |
| | | | | | | | | | | | | |
Earnings before tax | | | 64,449 | | | 33,566 | | | 162,336 | | | 67,115 | |
Future income tax recovery | | | 4,785 | | | - | | | 4,785 | | | - | |
Net earnings | $ | 69,234 | | $ | 33,566 | | $ | 167,121 | | $ | 67,115 | |
| | | | | | 0.11 | | | | | | 0.23 | |
Basic earnings per share | $ | 0.20 | | $ | $ | 0.49 | | $ |
Diluted earnings per share | | $ | 0.20 | | $ | 0.11 | | $ | 0.48 | | $ | 0.23 | |
Weighted average number of shares
outstanding | | | | | | | | | | | | | |
Basic | | | 344,253 | | | 313,445 | | | 343,168 | | | 294,208 | |
Diluted | | | 350,361 | | | 317,431 | | | 348,469 | | | 297,936 | |
| | | | | | | | | | | | | | |
1) Stock based compensation (a non-cash item) included in general and administrative | | $ | 1,306 | | $ | 623 | | $ | 6,431 | | $ | 3,312 | |
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Consolidated Balance Sheets (unaudited)
| | | September 30 | December 31 |
(US dollars in thousands - unaudited) | 2010 | 2009 |
| | | | | | | | |
Assets | | | | | | | |
Current | | | | | | | |
| Cash and cash equivalents | | $ | 255,189 | | $ | 227,566 | |
| Accounts receivable | | | 7,798 | | | 4,881 | |
| Other | | | 924 | | | 1,027 | |
| | | | 263,911 | | | 233,474 | |
| | | | | | | | |
Long-term investments | | | 155,122 | | | 73,747 | |
Silver and gold interests | | | 1,943,224 | | | 1,928,476 | |
Other | | | 1,368 | | | 1,527 | |
| | $ | 2,363,625 | | $ | 2,237,224 | |
| | | | | | | |
Liabilities | | | | | | | |
Current | | | | | | | |
| Accounts payable | | $ | 1,398 | | $ | 5,397 | |
| Accrued liabilities | | | 4,606 | | | 4,578 | |
| Current portion of bank debt | | | 28,560 | | | 28,560 | |
| Current portion of silver interest payments | | | 145,317 | | | 130,788 | |
| | | | 179,881 | | | 169,323 | |
| | | | | | | |
Long-term portion of bank debt | | 85,760 | | | 107,180 | |
Long-term portion of silver interest payments | | | 120,323 | | | 236,796 | |
| | | | 385,964 | | | 513,299 | |
Shareholders' Equity | | | | | | | |
Issued capital and contributed surplus | | | 1,372,525 | | | 1,333,191 | |
Retained earnings | | | 510,955 | | | 343,834 | |
Accumulated other comprehensive income | | | 94,181 | | | 46,900 | |
| | | | 605,136 | | | 390,734 | |
| | | | 1,977,661 | | | 1,723,925 | |
| | | $ | 2,363,625 | | $ | 2,237,224 | |
| | | | | | | |
| | | | | | | | |
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Consolidated Statement of Cash Flows (unaudited)
| | Three Months Ended
September 30 | Nine Months Ended
September 30 |
(US dollars in thousands - unaudited) | | 2010 | 2009 | 2010 | 2009 |
| | | | | | | | | | | | | |
Operating Activities | | | | | | | | | | | | | |
Net earnings | | $ | 69,234 | | $ | 33,566 | | $ | 167,121 | | $ | 67,115 | |
Items not affecting cash | | | | | | | | | | | | | |
Depreciation and depletion | | | 12,573 | | | 13,229 | | | 41,615 | | | 26,359 | |
Stock based compensation | | | 1,306 | | | 623 | | | 6,431 | | | 3,312 | |
Gain on mark-to-market of warrants held | | | (7,861) | | | - | | | (8,094) | | | (33) | |
Future income tax recovery | | | (4,785) | | | - | | | (4,785) | | | - | |
Other | | | (1,251) | | | (338) | | | (879) | | | (148) | |
Change in non-cash operating working capital | | | 1,269 | | | (1,700) | | | (6,334) | | | (1,652) | |
Cash generated by operating activities | | 70,485 | | | 45,380 | | | 195,075 | | | 94,953 | |
| | | | | | | | | | | | | |
Financing Activities | | | | | | | | | | | | | |
Bank debt drawn down | | | - | | | 140,200 | | | - | | | 140,200 | |
Bank debt repaid | | | (7,140) | | | (7,140) | | | (21,420) | | | (234,920) | |
Shares issued | | | - | | | 287,531 | | | - | | | 517,955 | |
Share issue costs | | | - | | | (11,645) | | | (85) | | | (21,620) | |
Share purchase warrants exercised | | | 5,017 | | | 10,345 | | | 6,022 | | | 10,508 | |
Share purchase options exercised | | 8,579 | | | 4,200 | | | 26,881 | | | 5,789 | |
Cash generated by financing activities | | 6,456 | | | 423,491 | | | 11,398 | | | 417,912 | |
| | | | | | | | | | | | | |
Investing Activities | | | | | | | | | | | | | |
Silver and gold interests | | | (144,465) | | | (213,819) | | | (158,176) | | | (218,466) | |
Acquisition of Silverstone Resources Corp.,
net of cash acquired | | | - | | | (261) | | | (201) | | | 2,407 | |
Long-term investments | | | (644) | | | - | | | (21,533) | | | - | |
Other | | | (10) | | | 1,599 | | | 396 | | | 1,615 | |
Cash applied to investing activities | | (145,119) | | | (212,481) | | | (179,514) | | | (214,444) | |
Effect of exchange rate changes on cash and cash
equivalents | | 471 | | | (122) | | | 664 | | | (673) | |
(Decrease) increase in cash and cash equivalents | | (67,707) | | | 256,268 | | | 27,623 | | | 297,748 | |
Cash and cash equivalents, beginning of period | | 322,896 | | | 48,590 | | | 227,566 | | | 7,110 | |
Cash and cash equivalents, end of period | $ | 255,189 | | $ | 304,858 | | $ | 255,189 | | $ | 304,858 | |
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Results of Operations (unaudited)
| | | | | | | | | | Three Months Ended September 30, 2010 |
| Ounces produced3 | Ounces sold | Sales | Average realized
price
($'s per ounce) | Total cash cost
($'s per ounce)4 | Total depletion
($'s per ounce)4 | Net earnings
(loss) | Cash flow from
(used in) operations |
| | | | | | | | | | | | | | | | | | | | |
Silver | | | | | | | | | | | | | | | | | | | | |
San Dimas | 1,255 | 1,274 | $ | 25,613 | | $ | 20.11 | | $ | 4.04 | | $ | 0.78 | | $ | 19,471 | | $ | 20,468 | |
Zinkgruvan | 508 | 635 | | 12,680 | | | 19.95 | | | 4.04 | | | 1.72 | | | 9,021 | | | 9,522 | |
Yauliyacu | 633 | 87 | | 1,548 | | | 17.79 | | | 3.98 | | | 3.47 | | | 900 | | | 1,202 | |
Peñasquito | 1,017 | 692 | | 12,980 | | | 18.76 | | | 3.90 | | | 2.54 | | | 8,521 | | | 10,281 | |
Minto | 46 | 40 | | 912 | | | 22.92 | | | 3.90 | | | 3.69 | | | 610 | | | 567 | |
Cozamin | 381 | 306 | | 5,825 | | | 19.06 | | | 4.04 | | | 4.62 | | | 3,177 | | | 4,868 | |
Barrick5 | 682 | 533 | | 10,202 | | | 19.16 | | | 3.90 | | | 3.58 | | | 6,218 | | | 8,281 | |
Other6 | 1,023 | 710 | | 13,649 | | | 19.22 | | | 3.93 | | | 4.51 | | | 7,658 | | | 10,518 | |
| 5,545 | 4,277 | $ | 83,409 | | $ | 19.51 | | $ | 3.98 | | $ | 2.53 | | $ | 55,576 | | $ | 65,707 | |
Gold | | | | | | | | | | | | | | | | | | | | |
Minto | 6,961 | 7,127 | $ | 9,425 | | $ | 1,323 | | $ | 300 | | $ | 237 | | $ | 5,599 | | $ | 5,972 | |
Silver Equivalent7 | 5,947 | 4,688 | $ | 92,834 | | $ | 19.81 | | $ | 4.09 | | $ | 2.67 | | $ | 61,175 | | $ | 71,679 | |
Corporate | | | | | | | | | | | | | | | | 8,059 | | | (1,194 | ) |
| 5,947 | 4,688 | $ | 92,834 | | $ | 19.81 | | $ | 4.09 | | $ | 2.67 | | $ | 69,234 | | $ | 70,485 | |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Certain production figures are based on management estimates. |
| 4) | Refer to discussion on non-GAAP measures. |
| 5) | The ounces produced and sold during the third quarter of 2010 include 250,000 ounces received from Goldcorp, in connection with Goldcorp’s four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. |
| 6) | Comprised of the Lagunas Norte, Pierina and Veladero mines. |
| 7) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 8) | 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. |
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| | | | | | | | | | Three Months Ended September 30, 2009 |
| Ounces produced | Ounces sold | Sales | Average realized
price
($'s per ounce) | Total cash cost
($'s per ounce)3 | Total depletion
($'s per ounce)3 | Net earnings
(loss) | Cash flow from
(used in) operations |
| | | | | | | | | | | | | | | | | | | | |
Silver | | | | | | | | | | | | | | | | | | | | |
San Dimas | 1,232 | 1,234 | $ | 18,886 | | $ | 15.30 | | $ | 4.02 | | $ | 0.65 | | $ | 13,120 | | $ | 13,925 | |
Zinkgruvan | 415 | 433 | | 6,861 | | | 15.85 | | | 4.02 | | | 1.78 | | | 4,350 | | | 4,415 | |
Yauliyacu | 750 | 698 | | 10,600 | | | 15.19 | | | 3.94 | | | 3.47 | | | 5,426 | | | 7,849 | |
Peñasquito | 165 | 190 | | 2,691 | | | 14.15 | | | 3.90 | | | 2.36 | | | 1,502 | | | 1,950 | |
Minto | 46 | 68 | | 1,043 | | | 15.29 | | | 3.90 | | | 4.48 | | | 472 | | | 794 | |
Cozamin | 366 | 384 | | 5,736 | | | 14.94 | | | 4.00 | | | 4.72 | | | 2,389 | | | 4,229 | |
Barrick4 | 223 | 187 | | 3,008 | | | 16.07 | | | 3.90 | | | 3.46 | | | 1,631 | | | 2,278 | |
Other5 | 783 | 780 | | 11,369 | | | 14.56 | | | 3.91 | | | 3.95 | | | 5,224 | | | 7,398 | |
| 3,980 | 3,974 | $ | 60,194 | | $ | 15.14 | | $ | 3.97 | | $ | 2.59 | | $ | 34,114 | | $ | 42,838 | |
Gold | | | | | | | | | | | | | | | | | | | | |
Minto | 3,698 | 9,953 | $ | 9,573 | | $ | 962 | | $ | 300 | | $ | 288 | | $ | 3,724 | | $ | 5,330 | |
Silver Equivalent6 | 4,213 | 4,600 | $ | 69,767 | | $ | 15.16 | | $ | 4.08 | | $ | 2.86 | | $ | 37,838 | | $ | 48,168 | |
Corporate | | | | | | | | | | | | | | | | (4,272) | | | (2,788) | |
| 4,213 | 4,600 | $ | 69,767 | | $ | 15.16 | | $ | 4.08 | | $ | 2.86 | | $ | 33,566 | | $ | 45,380 | |
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| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Refer to discussion on non-GAAP measures. |
| 4) | Comprised of the Lagunas Norte, Pierina and Veladero mines. |
| 5) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 6) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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| | | | | | | | | | | | Nine Months Ended September 30, 2010 |
| Ounces produced3 | Ounces sold | Sales | Average realized
price
($'s per ounce) | Total cash cost
($'s per ounce) 4 | Total depletion
($'s per ounce)4 | Net earnings
(loss) | Cash flow from
(used in) operations |
| | | | | | | | | | | | | | | | | | | | |
Silver | | | | | | | | | | | | | | | | | | | | |
San Dimas | 3,571 | 3,556 | $ | 66,463 | | $ | 18.69 | | $ | 4.04 | | $ | 0.78 | | $ | 49,308 | | $ | 52,099 | |
Zinkgruvan | 1,373 | 1,446 | | 26,964 | | | 18.64 | | | 4.04 | | | 1.72 | | | 18,635 | | | 19,578 | |
Yauliyacu | 2,062 | 1,185 | | 21,372 | | | 18.04 | | | 3.98 | | | 3.47 | | | 12,545 | | | 16,662 | |
Peñasquito | 2,337 | 1,772 | | 32,466 | | | 18.32 | | | 3.90 | | | 2.54 | | | 21,050 | | | 25,556 | |
Minto | 157 | 133 | | 2,562 | | | 19.19 | | | 3.90 | | | 3.69 | | | 1,549 | | | 1,795 | |
Cozamin | 1,068 | 999 | | 18,226 | | | 18.26 | | | 4.03 | | | 4.62 | | | 9,590 | | | 14,524 | |
Barrick5 | 2,159 | 2,043 | | 36,942 | | | 18.08 | | | 3.90 | | | 3.54 | | | 21,749 | | | 25,896 | |
Other6 | 3,099 | 2,214 | | 40,635 | | | 18.35 | | | 3.92 | | | 4.38 | | | 22,254 | | | 31,935 | |
| 15,826 | 13,348 | $ | 245,630 | | $ | 18.40 | | $ | 3.97 | | $ | 2.69 | | $ | 156,680 | | $ | 188,045 | |
Gold | | | | | | | | | | | | | | | | | | | | |
Minto | 24,665 | 23,321 | $ | 28,146 | | $ | 1,207 | | $ | 300 | | $ | 235 | | $ | 15,658 | | $ | 19,357 | |
Silver Equivalent7 | 17,395 | 14,826 | $ | 273,776 | | $ | 18.47 | | $ | 4.05 | | $ | 2.79 | | $ | 172,338 | | $ | 207,402 | |
Corporate | | | | | | | | | | | | | | | | (5,217) | | | (12,327) | |
| 17,395 | 14,826 | $ | 273,776 | | $ | 18.47 | | $ | 4.05 | | $ | 2.79 | | $ | 167,121 | | $ | 195,075 | |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Certain production figures are based on management estimates. |
| 4) | Refer to discussion on non-GAAP measures. |
| 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. |
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| | | | | | | | | | Nine Months Ended September 30, 2009 |
| Ounces produced | Ounces sold | Sales | Average realized
price
($'s per ounce) | Total cash cost
($'s per ounce)3 | Total depletion
($'s per ounce)3 | Net earnings
(loss) | Cash flow from
(used in) operations |
| | | | | | | | | | | | | | | | | | | | |
Silver | | | | | | | | | | | | | | | | | | | | |
San Dimas | 3,819 | 3,840 | $ | 52,990 | | $ | 13.81 | | $ | 4.02 | | $ | 0.71 | | $ | 34,817 | | $ | 37,553 | |
Zinkgruvan | 1,356 | 1,353 | | 19,023 | | | 14.06 | | | 4.02 | | | 1.78 | | | 11,175 | | | 12,793 | |
Yauliyacu | 2,359 | 1,987 | | 26,881 | | | 13.53 | | | 3.93 | | | 3.47 | | | 12,184 | | | 19,082 | |
Peñasquito | 487 | 455 | | 6,106 | | | 13.42 | | | 3.90 | | | 2.35 | | | 3,260 | | | 4,331 | |
Minto | 83 | 67 | | 1,036 | | | 15.31 | | | 3.90 | | | 4.48 | | | 469 | | | 808 | |
Cozamin | 628 | 597 | | 8,671 | | | 14.53 | | | 4.00 | | | 4.70 | | | 3,479 | | | 7,617 | |
Barrick4 | 223 | 187 | | 3,008 | | | 16.07 | | | 3.90 | | | 3.46 | | | 1,631 | | | 2,278 | |
Other5 | 2,092 | 1,584 | | 21,319 | | | 13.44 | | | 3.91 | | | 4.03 | | | 8,715 | | | 14,883 | |
| 11,047 | 10,070 | $ | 139,034 | | $ | 13.80 | | $ | 3.97 | | $ | 2.31 | | $ | 75,730 | | $ | 99,345 | |
Gold | | | | | | | | | | | | | | | | | | | | |
Minto | 10,521 | 10,098 | $ | 9,708 | | $ | 961 | | $ | 300 | | $ | 288 | | $ | 3,773 | | $ | 5,522 | |
Silver Equivalent6 | 11,708 | 10,708 | $ | 148,742 | | $ | 13.89 | | $ | 4.02 | | $ | 2.44 | | $ | 79,503 | | $ | 104,867 | |
Corporate | | | | | | | | | | | | | | | | (12,388) | | | (9,914) | |
| 11,708 | 10,708 | $ | 148,742 | | $ | 13.89 | | $ | 4.02 | | $ | 2.44 | | $ | 67,115 | | $ | 94,953 | |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Refer to discussion on non-GAAP measures. |
| 4) | Comprised of the Lagunas Norte, Pierina and Veladero mines. |
| 5) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 6) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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Non-GAAP Measures
Silver Wheaton has included, throughout this press release, certain non-GAAP performance measures, including total cash costs of silver and gold on a sales basis, as well as operating cash flows per share and cash operating margin. These non-GAAP measures do not have any standardized meaning prescribed by GAAP, nor are they necessarily comparable with similar measures presented by other companies. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Cash operating margin is defined as the realized selling price less total cash cost per silver equivalent ounce. The Company believes that certain investors use this information to evaluate the Company’s performance. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. During the three months ended September 30, 2010, the Company’s tot al cash costs, which were equivalent to the Company’s cost of sales in accordance with GAAP, were $3.98 per ounce of silver and $300 per ounce of gold (2009 – $3.97 per ounce of silver and $300 per ounce of gold).
| |
| For further information, please contact: | |
| | |
| Brad Kopp | |
| Vice President, Investor Relations | |
| Silver Wheaton Corp. | |
| Tel: 1-800-380-8687 | |
| Email: info@silverwheaton.com | |
| Website: www.silverwheaton.com | |
