This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Silver Wheaton Reports Record 2012 Operating And Financial Results

2) Refer to discussion on non-IFRS measures at the end of this press release. Consolidated Statements of Earnings

                                                               Years Ended December 31
    (US dollars and shares in thousands, except per share amounts) 2012           2011
    Sales                                                    $  849,560      $ 729,997
    Cost of sales
                       Cost of sales, excluding
                       depletion                             $  117,489      $  86,266
                       Depletion                                101,229         57,457
    Total cost of sales                                      $  218,718      $ 143,723
    Earnings from operations                                 $  630,842      $ 586,274
    Expenses and other income
                       General and administrative [1]        $   30,839      $  25,180
                       Foreign exchange loss (gain)                  29           (453)
                       Other (income) expense                      (817)         3,182
                                                             $   30,051      $  27,909
    Earnings before income taxes                             $  600,791      $ 558,365
    Income tax expense                                          (14,755)        (8,337)
    Net earnings                                             $  586,036      $ 550,028

    Basic earnings per share                                 $     1.66      $    1.56
    Diluted earnings per share                               $     1.65      $    1.55

    Weighted average number of shares outstanding
                       Basic                                    353,874        353,249
                       Diluted                                  356,008        355,904
    1) Equity settled stock based compensation (a non-cash item)
    included in general and administrative expenses.         $    6,420      $   6,329

Consolidated Statements of Comprehensive Income

                                                       Years Ended December 31
    (US dollars in thousands)                  2012           2011
    Net earnings                              $ 586,036      $  550,028
    Other comprehensive income (loss)
                    Loss on long-term
                    investments - common
                    shares held               $ (31,134)     $ (119,114)
                    Deferred income tax
                    recovery                      2,479          10,699
    Total other comprehensive loss            $ (28,655)     $ (108,415)
    Total comprehensive income                $ 557,381      $  441,613

Consolidated Balance Sheets

                                                  December 31      December 31
    (US dollars in thousands)                      2012             2011
    Assets
    Current assets
                      Cash and cash
                      equivalents                 $   778,216      $   840,201
                      Accounts receivable               6,197            3,890
                      Other                               966            1,221
    Total current assets                          $   785,379      $   845,312
    Non-current assets
                      Silver and gold
                      interests                   $ 2,281,234      $ 1,871,726
                      Long-term investments           121,377          151,621
                      Deferred income taxes                 -            2,301
                      Other                             1,347            1,375
    Total non-current assets                      $ 2,403,958      $ 2,027,023
    Total assets                                  $ 3,189,337      $ 2,872,335
    Liabilities
    Current liabilities
                      Accounts payable and
                      accrued liabilities         $    20,898      $     8,345
                      Current portion of
                      bank debt                        28,560           28,560
                      Current portion of
                      silver interest
                      payments                              -          130,789
    Total current liabilities                     $    49,458      $   167,694
    Non-current liabilities
                      Long-term portion of
                      bank debt                   $    21,500      $    50,060
                      Deferred income taxes             9,250                -
                      Performance share
                      units                             2,055              364
    Total non-current liabilities                 $    32,805      $    50,424
    Total liabilities                             $    82,263      $   218,118
    Shareholders' equity
    Issued capital                                $ 1,811,577      $ 1,793,772
    Reserves                                           (1,710)          25,422
    Retained earnings                               1,297,207          835,023
    Total shareholders' equity                    $ 3,107,074      $ 2,654,217
    Total liabilities and shareholders'
    equity                                        $ 3,189,337      $ 2,872,335

Consolidated Statements of Cash Flows

                                                       Years Ended December 31
    (US dollars in thousands)                      2012             2011
    Operating activities
    Net earnings                                  $   586,036      $   550,028
    Adjustments for
                      Depreciation and
                      depletion                       101,457           57,720
                      Equity settled
                      stock based
                      compensation                      6,420            6,329
                      Cash settled
                      stock based
                      compensation                      1,685              377
                      Deferred income
                      tax expense                      14,031            7,575
                      (Gain) loss on
                      fair value
                      adjustment of
                      share purchase
                      warrants held                      (496)           3,118
                      Investment income
                      recognized in net
                      earnings                         (1,367)            (929)
                      Other                               (15)             (97)
    Change in non-cash operating
    working capital                                    10,366            1,422
    Operating cash flows before
    interest received                             $   718,117      $   625,543
    Interest received                                   1,287              884
    Cash generated by operating activities        $   719,404      $   626,427

    Financing activities
    Bank debt repaid                              $   (28,560)     $   (28,560)
    Share purchase warrants exercised                   1,878               99
    Share purchase options exercised                   11,030            7,839
    Dividends paid                                   (123,852)         (63,612)
    Cash applied to financing activities          $  (139,504)     $   (84,234)

    Investing activities
    Silver and gold interests                     $  (640,718)     $  (140,063)
    Silver and gold interests -
    interest paid                                        (671)          (1,260)
    Acquisition of long-term
    investments                                          (395)         (13,674)
    Proceeds on disposal of long-term
    investments                                             -           24,270
    Dividend income received                               80               45
    Other                                                (192)             (54)
    Cash applied to investing activities          $  (641,896)     $  (130,736)

    Effect of exchange rate changes on
    cash and cash equivalents                     $        11      $       108
    (Decrease) increase in cash and cash
    equivalents                                   $   (61,985)     $   411,565
    Cash and cash equivalents, beginning
    of year                                           840,201          428,636
    Cash and cash equivalents, end of year        $   778,216      $   840,201

                                 Summary of Ounces Produced and Sold

                                   2012                                     2011
    (in
    thousands)      Q4         Q3        Q2      Q1        Q4        Q3     Q2        Q1

    Silver
    ounces
    produced
    [1]
    San Dimas
    [2]            1,694      1,288     1,231   1,692     1,578     1,251  1,150    1,606
    Zinkgruvan       566        621       673     642       390       379    414      508
    Yauliyacu        616        640       606     550       583       608    674      683
    Peñasquito     1,445      1,940     1,822   1,365     1,633     1,162  1,282    1,207
    Cozamin          372        370       429     405       433       395    414      325
    Barrick
    [3]              934        627       468     667       723       794    741      722
    Other [4]      1,407      1,260     1,276   1,288     1,389     1,272  1,153    1,088
                   7,034      6,746     6,505   6,609     6,729     5,861  5,828    6,139
    Silver
    equivalent
    ounces of
    gold
    produced
    [5]
    Minto            373        337       189     107       202       257    261       97
    777            1,059        612[6]      -       -         -         -      -        -
    Silver
    equivalent
    ounces
    produced
    [5]            8,466      7,695     6,694   6,716     6,931     6,118  6,089    6,236
    Silver
    ounces
    sold
    San Dimas
    [2]            1,629      1,178     1,295   1,701     1,488     1,232  1,149    1,748
    Zinkgruvan       532        495       580     517       425       319    401      321
    Yauliyacu      1,097        184     1,155     497       655        11    471      120
    Peñasquito     1,642      1,304     1,845   1,189       851     1,382    961      941
    Cozamin          406        301       395     376       374       335    281      271
    Barrick
    [3]              826        528       470     656       755       747    726      680
    Other [4]      1,215        796     1,049     992     1,230       770    862      741
                   7,347      4,786     6,789   5,928     5,778     4,796  4,851    4,822
    Silver
    equivalent
    ounces of
    gold sold
    [5]
    Minto            268        357       139     198       196       316    227       83
    777            1,516          -         -       -         -         -      -        -
    Silver
    equivalent
    ounces
    sold [5]       9,131      5,143     6,928   6,126     5,974     5,112  5,078    4,905
    Gold /
    silver
    ratio [5]       54.1       51.7      58.7    51.2      51.9      50.4   40.1     33.0
    Cumulative
    payable
    silver
    equivalent
    ounces
    produced
    but not
    yet
    delivered
    [7]            3,824      5,195     3,212   4,166     4,127     3,805  3,537    3,018

1. Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions.  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.  Certain production figures may be updated in future periods as additional information is received.  The Company has been informed that reported production related to the Yauliyacu mine may have been overstated by a total of approximately 200,000 ounces for all or some portion of the period between April 1, 2011 and June 30, 2012.  The required adjustments to production, if any, related to the Yauliyacu mine for these periods will be made once management completes a review of the timing and amount of any production variance.

2. The ounces produced and sold include 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.

9 of 14

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,135.82 -36.86 -0.21%
S&P 500 1,991.05 -3.24 -0.16%
NASDAQ 4,522.9140 -4.7750 -0.11%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs