_____________________________ [ 1] 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.
Developments Subsequent to 2012 Year End
Salobo and Sudbury - In February 2013, Silver Wheaton announced a deal with Vale S.A. to acquire 25% of the life of mine gold production from the Salobo Mine in Brazil and 70% of the gold production from its Canadian Sudbury mines for a 20-year term. The Salobo mine, the largest copper deposit ever found in Brazil, began operating in 2012 at a capacity of 12 million tonnes per annum (mtpa) of mill throughput capacity. The mine is already undergoing an expansion to 24 mtpa and is expected to produce approximately 70 thousand ounces of gold annually for Silver Wheaton for the first ten years of full production. Sudbury is one of the largest nickel producing areas globally and has an operating history dating back to 1885. Vale's integrated operations in Sudbury are amongst the largest in the world and are expected to contribute 50 thousand ounces of gold annually on average over the next 20 years.
2013 and Long-Term Silver Equivalent Production ForecastBased upon its current agreements -- including the gold streams from Vale's Salobo and Sudbury mines -- the Company forecasts 2013 attributable production of approximately 33.5 million silver equivalent ounces, including 145 thousand ounces of gold. This represents a 13% increase compared to 2012, which is primarily driven by a full year of production from Hudbay's 777 mine as well as the addition of gold production from Vale's Salobo and Sudbury mines. By 2017, based upon its current agreements, annual attributable production is anticipated to increase by 79% to approximately 53 million silver equivalent ounces, including 180 thousand ounces of gold. The increase is the result of the anticipated ramp up of three new mines, including Barrick's Pascua-Lama project, Hudbay's Constancia project, and Augusta Resource's Rosemont project. The world-class Pascua-Lama project is forecast to commence production in mid-2014 and, in its first full five years of operation, will contribute approximately 9 million ounces of attributable silver production annually to Silver Wheaton. Attributable mine-by-mine actual 2011 and 2012 production and forecast 2013 production are as follows:
Attributable Production, 2011 2012 2013 Actual Actual Forecast Silver ounces produced (000's) Peñasquito 5,284 6,572 5,800 San Dimas 5,585 5,905 6,500 Barrick 2,980 2,696 1,700 Zinkgruvan 1,691 2,502 2,400 Yauliyacu 2,548 2,412 2,500 Cozamin 1,567 1,576 1,800 Other 4,902 5,231 5,100 24,557 26,894 25,800 Gold ounces produced (000's) Minto 18.4 18.6 20 777 - 31.4 70 Sudbury and Salobo - - 55 18.4 50.0 145 Silver equivalent ounces produced (000's) 25,374 29,571 33,500
1) Ounces produced represent quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. 2) Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available. 3) Production at Peñasquito is lower in 2013 due to lower grades in the mine plan. 4) 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 5) Comprised of the Lagunas Norte, Pierina and Veladero silver interests. Production in 2013 is lower due to forecasted lower grades at Lagunas Norte and Veladero, and declining production from Pierina as Barrick waits for approval to commence pushback. 6) Includes the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Campo Morado, Minto, 777 and Aljustrel silver interests. 7) Gold ounces produced 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 from the assets that produce both gold and silver. For the 2013 forecast, a silver price of $30 and gold price of $1,600 were used for the silver equivalent conversion.Reserves and Resources