Canada NewsWire
VANCOUVER, March 3
TSX: SLW
NYSE: SLW
VANCOUVER, March 3 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX: SLW) (NYSE: SLW) is pleased to announce its unaudited results for the fourth quarter and the year ended December 31, 2010.
FOURTH QUARTER HIGHLIGHTS (3 Months)
The Company had record quarterly net earnings, operating cash flows, attributable production and sales, as follows:
2010 HIGHLIGHTS (12 Months)
The Company had record annual net earnings, operating cash flows, attributable production and sales, as follows:
_______________________
1 Refer to discussion on non-GAAP measures at the end of this press release.
"2010 was a tremendously successful year, with the Company setting new records on all financial and operating metrics. In just six years, Silver Wheaton has grown its market capitalization to in excess of US$15 billion, and has more silver reserves than any silver company in the world," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "We were especially pleased that the production ramp up at the first of our cornerstone assets, Goldcorp's world-class Peñasquito mine in Mexico, exceeded expectations and contributed to Silver Wheaton's peer-leading 37% annual production growth. This was particularly timely as silver prices climbed to 30 year highs which resulted in record quarterly and annual results."
"This momentum is expected to continue into 2011, with forecast production growth of another 15%, which will result in operating cash flows of over US$700 million at current metal prices. Production growth over the next five years is forecast at approximately 80%, which represents one of the strongest growth profiles in the precious metals industry and is driven by the continued ramp up at Peñasquito and the forecast 2013 production start at Barrick's world-class Pascua-Lama project."
"To supplement our growth in 2014 and beyond, important transactions were completed in 2010. These include a life-of-mine precious metals purchase agreement relating to the Rosemont project in Arizona and converting a debenture allowing us to acquire a portion of the life-of-mine silver production from the Loma de La Plata zone of the Navidad project in Argentina. Combined, these projects are forecast to increase our long-term silver equivalent production by up to 5 million ounces per annum, once in production. We also acquired a right of first refusal on all future silver streams from one of the most exciting gold discoveries in the last decade, the La Bodega project in Colombia, and amended the silver purchase agreement relating to the San Dimas mine in Mexico, which should result in lasting benefits to our shareholders, including the potential for increased silver production."
"With cash on hand of over US$428 million, a fully undrawn US$400 million revolving credit facility and strong cash flows from operations, we remain exceptionally well-positioned to continue growing our silver stream portfolio. Merger and acquisition activity in the mining industry is anticipated to remain robust in 2011, and Silver Wheaton continues to offer an attractive mainstream financing solution to assist companies in achieving their growth goals."
2011 and Five Year Silver Equivalent Production Forecast
The Company estimates, based upon its current agreements, to have 2011 attributable production of 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. This represents a 15% increase compared to 2010. Total cash costs in 2011 are anticipated to be approximately US$4 per silver equivalent ounce, unchanged from 2010. By 2015, based upon its current agreements, annual attributable production is anticipated to increase by 80% to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. Attributable mine-by-mine actual 2010 production and forecast 2011 production are as follows:
Attributable Production | ||||
2010 Actual2 |
2011 Forecast | |||
Silver ounces produced (000's) | ||||
Peñasquito | 3,792 | 6,800 | ||
San Dimas3 | 5,157 | 5,700 | ||
Barrick4 | 2,617 | 3,600 | ||
Yauliyacu | 2,713 | 2,600 | ||
Zinkgruvan | 1,801 | 1,800 | ||
Cozamin | 1,403 | 1,700 | ||
Other5 | 4,608 | 4,550 | ||
22,091 | 26,750 | |||
Gold ounces produced (000's in silver equivalent)6 | ||||
Minto | 1,774 | 750 | ||
Silver equivalent ounces produced (000's) | 23,865 | 27,500 |
1) Ounces produced represent the quantity of silver and gold contained
in concentrate or doré prior to smelting or refining deductions.
2) Certain production figures are based on management estimates.
3) 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.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver
interests.
5) 2010 attributable production includes the Los Filos, San Martin, La
Negra, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto and Campo
Morado silver interests. 2011 forecast attributable production includes
the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto,
Campo Morado and Aljustrel silver interests.
6) The Minto mine produced 28,795 oz of gold in 2010 and is forecast to
produce approximately 15,000 oz of gold in 2011.
Webcast and Conference Call Details
A conference call will be held Friday, March 4, 2011, 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: Dial from outside Canada or the US: Pass code: Live audio webcast: |
1-888-231-8191 1-647-427-7450 37642529 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: Dial from outside Canada or the US: Pass code: Archived audio webcast: |
1-800-642-1687 1-416-849-0833 37642529 www.silverwheaton.com |
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. This growth is driven by the Company's portfolio of world-class assets, including silver streams on Goldcorp's Peñasquito mine and Barrick's Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the meaning
of applicable Canadian securities legislation. Forward-looking
statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with
respect to the future price of silver and gold, the estimation of
mineral reserves and resources, the realization of mineral reserve
estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates.
Generally, these forward-looking statements can be identified by the
use of forward-looking terminology such as "plans", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements that
certain actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking statements
are subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of Silver Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to: fluctuations in the price of silver and gold; the
absence of control over mining operations from which Silver Wheaton
purchases silver or gold and risks related to these mining operations
including risks related to fluctuations in the price of the primary
commodities mined at such operations, actual results of mining and
exploration activities, economic and political risks of the
jurisdictions in which the mining operations are located and changes in
project parameters as plans continue to be refined; and differences in
the interpretation or application of tax laws and regulations; as well
as those factors discussed in the section entitled "Description of the
Business - Risk Factors" in Silver Wheaton's Annual Information Form
available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and
Exchange Commission in Washington, D.C. Forward-looking statements are
based on assumptions management believes to be reasonable, including
but not limited to: the continued operation of the mining operations
from which Silver Wheaton purchases silver or gold, no material adverse
change in the market price of commodities, that the mining operations
will operate and the mining projects will be completed in accordance
with their public statements and achieve their stated production
outcomes, and such other assumptions and factors as set out herein.
Although Silver Wheaton has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to
be accurate. Accordingly, readers should not place undue reliance on
forward-looking statements. Silver Wheaton does not undertake to update
any forward-looking statements that are included or incorporated by
reference herein, except in accordance with applicable securities laws.
Summarized Financial Results (unaudited)
Years Ended December 31 | ||||||
2010 | 2009 | 2008 | ||||
Silver equivalent production1 | ||||||
Attributable silver ounces produced (000's) | 22,091 | 16,263 | 11,915 | |||
Attributable gold ounces produced | 28,795 | 18,021 | - | |||
Attributable silver equivalent ounces produced (000's) 1 | 23,865 | 17,395 | 11,915 | |||
Silver equivalent sales1 | ||||||
Silver ounces sold (000's) | 18,878 | 14,744 | 11,137 | |||
Gold ounces sold | 25,884 | 17,132 | - | |||
Silver equivalent ounces sold (000's) 1 | 20,483 | 15,823 | 11,137 | |||
Average realized price ($'s per ounce) | ||||||
Average realized silver price | $ | 20.75 | $ | 15.02 | $ | 14.97 |
Average realized gold price | $ | 1,224.46 | $ | 1,041.92 | n/a | |
Average realized silver equivalent price | $ | 20.67 | $ | 15.13 | $ | 14.97 |
Average cash cost ($'s per ounce) 2 | ||||||
Average silver cash cost | $ | 3.97 | $ | 3.97 | $ | 3.94 |
Average gold cash cost | $ | 300.00 | $ | 300.00 | n/a | |
Average silver equivalent cash cost | $ | 4.04 | $ | 4.03 | $ | 3.94 |
Total revenue ($000's) | $ | 423,353 | $ | 239,293 | $ | 166,719 |
Net earnings ($000's) | $ | 290,093 | $ | 117,924 | $ | 17,252 |
Earnings per share | ||||||
Basic | $ | 0.84 | $ | 0.39 | $ | 0.07 |
Diluted | $ | 0.83 | $ | 0.38 | $ | 0.07 |
Cash flow from operations ($000's) | $ | 319,761 | $ | 165,932 | $ | 111,142 |
Total assets ($000's) | $ | 2,635,069 | $ | 2,237,224 | $ | 1,270,646 |
Total liabilities ($000's) | $ | 373,120 | $ | 513,299 | $ | 382,621 |
Total shareholders' equity ($000's) | $ | 2,261,949 | $ | 1,723,925 | $ | 888,025 |
1) | 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. |
2) | Refer to discussion on non-GAAP measures. |
Consolidated Statement of Operations (unaudited)
Years Ended December 31 | ||||||||
(US dollars and shares in thousands, except per share amounts) | 2010 | 2009 | 2008 | |||||
Sales | $ | 423,353 | $ | 239,293 | $ | 166,719 | ||
Cost of sales | 82,749 | 63,715 | 43,890 | |||||
Depletion | 57,571 | 41,156 | 19,491 | |||||
140,320 | 104,871 | 63,381 | ||||||
Earnings from operations | 283,033 | 134,422 | 103,338 | |||||
Expenses and other income | ||||||||
General and administrative 1 | 24,669 | 17,288 | 17,476 | |||||
(Gain) loss on long-term investments held | (10,719) | (335) | 65,066 | |||||
Other (income) expense | (7,410) | (455) | 631 | |||||
6,540 | 16,498 | 83,173 | ||||||
Earnings before tax | 276,493 | 117,924 | 20,165 | |||||
Future income tax recovery (expense) | 13,600 | - | (2,913) | |||||
Net earnings | $ | 290,093 | $ | 117,924 | $ | 17,252 | ||
Basic earnings per share | $ | 0.84 | $ | 0.39 | $ | 0.07 | ||
Diluted earnings per share | $ | 0.83 | $ | 0.38 | $ | 0.07 | ||
Weighted average number of shares outstanding | ||||||||
Basic | 344,288 | 306,040 | 232,855 | |||||
Diluted | 350,429 | 309,500 | 249,244 | |||||
1) Stock based compensation (a non-cash item) included in general and administrative | $ | 7,732 | $ | 4,010 | $ | 5,530 | ||
Consolidated Balance Sheets (unaudited)
December 31 | December 31 | ||||||||||
(US dollars in thousands) | 2010 | 2009 | |||||||||
Assets | |||||||||||
Current | |||||||||||
Cash and cash equivalents | $ | 428,636 | $ | 227,566 | |||||||
Accounts receivable | 7,088 | 4,881 | |||||||||
Other | 727 | 1,027 | |||||||||
Total current assets | 436,451 | 233,474 | |||||||||
Long-term investments | 284,448 | 73,747 | |||||||||
Silver and gold interests | 1,912,877 | 1,928,476 | |||||||||
Other | 1,293 | 1,527 | |||||||||
Total assets | $ | 2,635,069 | $ | 2,237,224 | |||||||
Liabilities | |||||||||||
Current | |||||||||||
Accounts payable | $ | 1,148 | $ | 5,397 | |||||||
Accrued liabilities | 8,381 | 4,578 | |||||||||
Current portion of bank debt | 28,560 | 28,560 | |||||||||
Current portion of silver interest payments | 133,243 | 130,788 | |||||||||
Total current liabilities | 171,332 | 169,323 | |||||||||
Future income tax liability | 822 | - | |||||||||
Long-term portion of bank debt | 78,620 | 107,180 | |||||||||
Long-term portion of silver interest payments | 122,346 | 236,796 | |||||||||
Total liabilities | 373,120 | 513,299 | |||||||||
Shareholders' Equity | |||||||||||
Issued capital and contributed surplus | 1,449,351 | 1,333,191 | |||||||||
Retained earnings | 633,927 | 343,834 | |||||||||
Accumulated other comprehensive income | 178,671 | 46,900 | |||||||||
Total retained earnings and accumulated other comprehensive income | 812,598 | 390,734 | |||||||||
Total shareholders' equity | 2,261,949 | 1,723,925 | |||||||||
Total liabilities and shareholders' equity | $ | 2,635,069 | $ | 2,237,224 | |||||||
Consolidated Statement of Cash Flows (unaudited)
Years Ended December 31 | ||||||||||
(US dollars in thousands) | 2010 | 2009 | 2008 | |||||||
Operating Activities | ||||||||||
Net earnings | $ | 290,093 | $ | 117,924 | $ | 17,252 | ||||
Items not affecting cash | ||||||||||
Depreciation and depletion | 57,839 | 41,413 | 19,491 | |||||||
Stock based compensation | 7,732 | 4,010 | 5,530 | |||||||
(Gain) loss on long-term investments held | (10,719) | (335) | 65,066 | |||||||
Gain on disposal of silver purchase agreement | (5,911) | - | - | |||||||
Future income tax (recovery) expense | (13,600) | - | 2,913 | |||||||
Other | (3,664) | 967 | 398 | |||||||
Change in non-cash operating working capital | (2,009) | 1,953 | 492 | |||||||
Cash generated by operating activities | 319,761 | 165,932 | 111,142 | |||||||
Financing Activities | ||||||||||
Bank debt drawn down | - | 140,200 | 198,500 | |||||||
Bank debt repaid | (28,560) | (382,260) | (240,560) | |||||||
Shares issued | - | 517,955 | - | |||||||
Share issue costs | (85) | (22,117) | (1,939) | |||||||
Share purchase warrants exercised | 76,093 | 13,779 | 115,796 | |||||||
Share purchase options exercised | 32,335 | 8,776 | 2,667 | |||||||
Cash generated by financing activities | 79,783 | 276,333 | 74,464 | |||||||
Investing Activities | ||||||||||
Silver and gold interests | (172,400) | (220,644) | (184,532) | |||||||
Acquisition of Silverstone Resources Corp., net of cash acquired | (201) | 2,281 | - | |||||||
Long-term investments | (54,107) | - | - | |||||||
Proceeds on disposal of silver purchase agreement | 25,000 | - | - | |||||||
Other | 383 | (2,849) | (4,348) | |||||||
Cash applied to investing activities | (201,325) | (221,212) | (188,880) | |||||||
Effect of exchange rate changes on cash and cash equivalents | 2,851 | (597) | 419 | |||||||
Increase (decrease) in cash and cash equivalents | 201,070 | 220,456 | (2,855) | |||||||
Cash and cash equivalents, beginning of year | 227,566 | 7,110 | 9,965 | |||||||
Cash and cash equivalents, end of year | $ | 428,636 | $ | 227,566 | $ | 7,110 | ||||
Summary of Ounces Produced and Sold (unaudited)
2010 | 2009 | ||||||||
(in thousands) | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |
Silver ounces produced | |||||||||
San Dimas 3 | 1,586 | 1,255 | 1,110 | 1,206 | 1,275 | 1,232 | 1,264 | 1,323 | |
Zinkgruvan | 428 | 508 | 478 | 387 | 505 | 415 | 480 | 461 | |
Yauliyacu | 651 | 633 | 692 | 737 | 783 | 750 | 870 | 739 | |
Peñasquito | 1,260 | 1,109 | 866 | 557 | 441 | 165 | 162 | 160 | |
Cozamin | 335 | 381 | 286 | 401 | 388 | 366 | 262 | - | |
Barrick 4 | 458 | 682 | 697 | 780 | 756 | 223 | - | - | |
Other 5 | 1,352 | 1,069 | 1,240 | 947 | 1,068 | 829 | 787 | 559 | |
6,070 | 5,637 | 5,369 | 5,015 | 5,216 | 3,980 | 3,825 | 3,242 | ||
Silver equivalent ounces of gold produced 6 | |||||||||
Minto | 205 | 402 | 522 | 645 | 471 | 233 | 428 | - | |
Silver equivalent ounces produced | 6,275 | 6,039 | 5,891 | 5,660 | 5,687 | 4,213 | 4,253 | 3,242 | |
Silver ounces sold | |||||||||
San Dimas 3 | 1,438 | 1,274 | 1,076 | 1,206 | 1,264 | 1,234 | 1,254 | 1,352 | |
Zinkgruvan | 421 | 635 | 313 | 498 | 357 | 433 | 469 | 451 | |
Yauliyacu | 470 | 87 | 517 | 581 | 1,027 | 698 | 546 | 743 | |
Peñasquito | 1,169 | 692 | 656 | 424 | 191 | 190 | 130 | 135 | |
Cozamin | 411 | 306 | 412 | 281 | 359 | 384 | 213 | - | |
Barrick 4 | 482 | 533 | 727 | 783 | 751 | 187 | - | - | |
Other 5 | 1,139 | 750 | 943 | 654 | 725 | 848 | 326 | 477 | |
5,530 | 4,277 | 4,644 | 4,427 | 4,674 | 3,974 | 2,938 | 3,158 | ||
Silver equivalent ounces of gold sold 6 | |||||||||
Minto | 127 | 411 | 496 | 571 | 441 | 626 | 12 | - | |
Silver equivalent ounces sold | 5,657 | 4,688 | 5,140 | 4,998 | 5,115 | 4,600 | 2,950 | 3,158 |
1) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. As at December 31, 2010, approximately 2.4 million payable silver equivalent ounces attributable to the Company have been produced and the respective payable ounces will be recognized in future sales as they are delivered to the Company under the terms of their contracts. |
2) | Certain production figures are based on management estimates. |
3) | The ounces produced and sold during the third and fourth quarters of 2010 include 250,000 ounces and 375,000 ounces, respectively, 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. |
4) | Comprised of the Lagunas Norte, Pierina and Veladero silver interests. |
5) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto and Campo Morado silver interests. |
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. |
Results of Operations (unaudited)
(US dollars) | Year Ended December 31, 2010 | ||||||||||||||
Ounces produced 3 |
Ounces sold | Sales |
Average realized price ($'s per ounce) |
Total cash cost ($'s per ounce) 4 |
Total depletion ($'s per ounce) 4 | Net earnings |
Cash flow from (used in) operations | ||||||||
Silver | |||||||||||||||
San Dimas | 5,157 | 4,994 | $ | 105,747 | $ | 21.18 | $ | 4.04 | $ | 0.78 | $ | 81,659 | $ | 86,666 | |
Zinkgruvan | 1,801 | 1,867 | 39,447 | 21.12 | 4.04 | 1.71 | 28,697 | 30,178 | |||||||
Yauliyacu | 2,713 | 1,655 | 31,998 | 19.33 | 3.98 | 3.47 | 19,669 | 25,418 | |||||||
Peñasquito | 3,792 | 2,941 | 63,632 | 21.64 | 3.90 | 2.54 | 44,683 | 52,163 | |||||||
Cozamin | 1,403 | 1,410 | 29,180 | 20.71 | 4.03 | 4.62 | 16,987 | 23,252 | |||||||
Barrick 5 | 2,617 | 2,525 | 48,311 | 19.13 | 3.90 | 3.55 | 29,498 | 36,787 | |||||||
Other 6 | 4,608 | 3,486 | 73,345 | 21.04 | 3.92 | 4.49 | 44,010 | 58,182 | |||||||
22,091 | 18,878 | $ | 391,660 | $ | 20.75 | $ | 3.97 | $ | 2.73 | $ | 265,203 | $ | 312,646 | ||
Gold | |||||||||||||||
Minto | 28,795 | 25,884 | $ | 31,693 | $ | 1,224 | $ | 300 | $ | 236 | $ | 17,830 | $ | 23,174 | |
Silver Equivalent 7 | 23,865 | 20,483 | $ | 423,353 | $ | 20.67 | $ | 4.04 | $ | 2.81 | $ | 283,033 | $ | 335,820 | |
Corporate | 7,060 | (16,059) | |||||||||||||
23,865 | 20,483 | $ | 423,353 | $ | 20.67 | $ | 4.04 | $ | 2.81 | $ | 290,093 | $ | 319,761 |
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 silver interests. |
6) | Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado and La Negra 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. |
(US dollars) | Year Ended December 31, 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 | 5,094 | 5,104 | $ | 75,371 | $ | 14.77 | $ | 4.02 | $ | 0.70 | $ | 51,266 | $ | 54,829 |
Zinkgruvan | 1,861 | 1,710 | 25,569 | 14.95 | 4.02 | 1.78 | 15,645 | 19,066 | ||||||
Yauliyacu | 3,142 | 3,014 | 44,829 | 14.87 | 3.93 | 3.47 | 22,520 | 32,980 | ||||||
Peñasquito | 928 | 646 | 9,398 | 14.55 | 3.90 | 2.35 | 5,357 | 6,878 | ||||||
Cozamin | 1,016 | 956 | 15,005 | 15.70 | 4.00 | 4.71 | 6,686 | 12,186 | ||||||
Barrick 4 | 979 | 938 | 16,000 | 17.06 | 3.90 | 3.56 | 9,004 | 15,578 | ||||||
Other 5 | 3,243 | 2,376 | 35,271 | 14.82 | 3.91 | 4.12 | 16,163 | 25,488 | ||||||
16,263 | 14,744 | $ | 221,443 | $ | 15.02 | $ | 3.97 | $ | 2.46 | $ | 126,641 | $ | 167,005 | |
Gold | ||||||||||||||
Minto | 18,021 | 17,132 | $ | 17,850 | $ | 1,042 | $ | 300 | $ | 288 | $ | 7,781 | $ | 12,865 |
Silver Equivalent 6 | 17,395 | 15,823 | $ | 239,293 | $ | 15.13 | $ | 4.03 | $ | 2.60 | $ | 134,422 | $ | 179,870 |
Corporate | (16,498) | (13,938) | ||||||||||||
17,395 | 15,823 | $ | 239,293 | $ | 15.13 | $ | 4.03 | $ | 2.60 | $ | 117,924 | $ | 165,932 |
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 silver interests. |
5) | Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Minto, Campo Morado and La Negra silver interests. |
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. |
(US Dollars) | Three Months Ended December 31, 2010 | ||||||||||||||
Ounces produced 3 |
Ounces sold | Sales |
Average realized price ($'s per ounce) |
Total cash cost ($'s per ounce)4 |
Total depletion ($'s per ounce) 4 | Net earnings |
Cash flow from (used in) operations | ||||||||
Silver | |||||||||||||||
San Dimas | 1,586 | 1,438 | $ | 39,283 | $ | 27.33 | $ | 4.05 | $ | 0.78 | $ | 32,351 | $ | 34,567 | |
Zinkgruvan | 428 | 421 | 12,483 | 29.64 | 4.05 | 1.69 | 10,062 | 10,600 | |||||||
Yauliyacu | 651 | 470 | 10,627 | 22.61 | 3.98 | 3.47 | 7,124 | 8,756 | |||||||
Peñasquito | 1,260 | 1,169 | 31,166 | 26.66 | 3.90 | 2.54 | 23,634 | 26,607 | |||||||
Cozamin | 335 | 411 | 10,953 | 26.67 | 4.04 | 4.62 | 7,396 | 8,729 | |||||||
Barrick 5 | 458 | 482 | 11,369 | 23.58 | 3.90 | 3.61 | 7,749 | 10,890 | |||||||
Other 6 | 1,352 | 1,139 | 30,149 | 26.47 | 3.92 | 4.81 | 20,207 | 24,452 | |||||||
6,070 | 5,530 | $ | 146,030 | $ | 26.41 | $ | 3.97 | $ | 2.81 | $ | 108,523 | $ | 124,601 | ||
Gold | |||||||||||||||
Minto | 4,130 | 2,562 | $ | 3,547 | $ | 1,384 | $ | 300 | $ | 237 | $ | 2,172 | $ | 3,816 | |
Silver Equivalent 7 | 6,275 | 5,657 | $ | 149,577 | $ | 26.44 | $ | 4.02 | $ | 2.86 | $ | 110,695 | $ | 128,417 | |
Corporate | 12,277 | (3,730) | |||||||||||||
6,275 | 5,657 | $ | 149,577 | $ | 26.44 | $ | 4.02 | $ | 2.86 | $ | 122,972 | $ | 124,687 |
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 silver interests. |
6) | Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado and La Negra 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. |
(US dollars) | Three Months Ended December 31, 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 | 1,275 | 1,264 | $ | 22,380 | $ | 17.71 | $ | 4.04 | $ | 0.65 | $ | 16,449 | $ | 17,276 | |
Zinkgruvan | 505 | 357 | 6,547 | 18.32 | 4.03 | 1.78 | 4,470 | 6,273 | |||||||
Yauliyacu | 783 | 1,027 | 17,948 | 17.48 | 3.94 | 3.47 | 10,337 | 13,899 | |||||||
Peñasquito | 441 | 191 | 3,293 | 17.24 | 3.90 | 2.35 | 2,098 | 2,548 | |||||||
Cozamin | 388 | 359 | 6,334 | 17.66 | 4.00 | 4.72 | 3,207 | 4,569 | |||||||
Barrick 4 | 756 | 751 | 12,991 | 17.31 | 3.90 | 3.59 | 7,373 | 13,299 | |||||||
Other 5 | 1,068 | 725 | 12,916 | 17.80 | 3.91 | 4.27 | 6,978 | 9,795 | |||||||
5,216 | 4,674 | $ | 82,409 | $ | 17.63 | $ | 3.97 | $ | 2.77 | $ | 50,912 | $ | 67,659 | ||
Gold | |||||||||||||||
Minto | 7,500 | 7,033 | $ | 8,142 | $ | 1,158 | $ | 300 | $ | 288 | $ | 4,008 | $ | 7,342 | |
Silver Equivalent 6 | 5,687 | 5,115 | $ | 90,551 | $ | 17.70 | $ | 4.04 | $ | 2.93 | $ | 54,920 | $ | 75,001 | |
Corporate | (4,109) | (4,020) | |||||||||||||
5,687 | 5,115 | $ | 90,551 | $ | 17.70 | $ | 4.04 | $ | 2.93 | $ | 50,811 | $ | 70,981 |
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 silver interests. |
5) | Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Minto, Campo Morado and La Negra silver interests. |
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. |
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 year ended December 31, 2010, the Company's total cash costs, which were equivalent to the Company's cost of sales in accordance with GAAP, were $3.97 per ounce of silver and $300 per ounce of gold (2009 - $3.97 per ounce of silver and $300 per ounce of gold).