In the second quarter of 2012, we achieved production of 6.7 million silver equivalent ounces. Silver equivalent sales reached an all time high of 6.9 million ounces. This strong quarter resulted in record financial results including revenues of over $200 million and operating cash flows in excess of a $170 million which represent a cash operating margin of 86%.
More detail on the finances will be provided shortly by our Senior Vice President and Chief Financial Officer, Gary Brown.
On the operations front, production from most of our assets was very solid with Zinkgruvan once again delivering a storing quarter and with sales of concentrate produced, but not yet delivered from Yauliyacu contributing considerably to our revenues and cash flow.
While we did see some temporary short falls in production at Peñasquito mine and a delay announced at Pascua-Lama, we remain confident in our partners and view both of these assets as core streams which solidify our industry leading growth profile.Second quarter mill throughput at Goldcorp's Peñasquito mine was impacted by water shortages due to prolonged drought conditions in the region resulting in a reduction of a 2012 forecast silver production attributable to Silver Wheaton. Gold Corp is working to improve water supplies through additional wells and improvements in decanting of their tailings. At Pascua-Lama Barrick announced a one-year delay to the expected project start up and a substantial increase to its capital cost forecast. So the weakness is not subject to these capital cost increases, but production is now slated to begin in mid 2014. Even with this delay Pascua-Lama remains a world class project and will be one of the best gold, silver mines in the world once it begins operations. Read the rest of this transcript for free on seekingalpha.com
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