- Provides immediate cash flow and enhances Silver Wheaton's growth profile
- Silver Wheaton will receive 25% of the gold production from Vale's newly constructed and currently expanding Salobo mine, and 70% of the gold production from certain of its Sudbury mines;
- This immediately increases Silver Wheaton's production and cash flow profile by adding expected average gold production of 110 thousand ounces per year over the next 20 years (5.9 million silver equivalent ounces [ 2]), which includes approximately 60 thousand ounces per year from Salobo and approximately 50 thousand ounces per year from Sudbury.
- Excellent expansion and exploration potential exist for both Salobo, which currently has an extensive reserve base and good depth and strike potential, and Sudbury, which currently has the Totten mine in start-up and the Victor development project.
- Significantly increases Silver Wheaton's exposure to gold
- The addition of the Vale streams will increase Silver Wheaton's percentage of revenue generated from gold production over the next five years from an average of 12% to a peak of around 25%.
- Adds another world-class partner and further endorses the competitiveness of Silver Wheaton's streaming model
- Vale is the world's largest producer of iron ore and one of the largest mining companies in the world, having a market capitalization of over $100 billion.
- The use of precious metal streaming by Vale further validates the benefits of streaming in unlocking the value of by-product precious metals production.
- Increases Silver Wheaton's organic growth profile
- With the addition of these streams, Silver Wheaton is also pleased to announce its updated production guidance. In 2013, Silver Wheaton forecasts 33.5 million ounces of silver equivalent production [ 2] (including 145 thousand ounces of gold). In 2017, the Company forecasts 53 million ounces of silver equivalent production [ 2] (including 180 thousand ounces of gold), which represents an increase of over 80% from 2012.
Silver Wheaton Acquires Gold Streams From Vale's Salobo And Sudbury Mines
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