November 11, 2013
TSX: SLW NYSE: SLW
Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE:SLW) is pleased to announce its unaudited results for the third quarter ended
September 30, 2013
. All figures are presented in
dollars unless otherwise noted.
THIRD QUARTER HIGHLIGHTS
- Record attributable silver equivalent production for the three months ended September 30, 2013 of 8.9 million ounces (6.8 million ounces of silver and 34,800 ounces of gold), compared to 7.6 million ounces in Q3 2012, representing an increase of 17%.
- Attributable silver equivalent sales for the three months ended September 30, 2013 of 7.8 million ounces (5.7 million ounces of silver and 35,300 ounces of gold), compared to 5.1 million ounces in Q3 2012, representing an increase of 52%.
- Revenues of $166.4 million compared with $161.3 million in Q3 2012, representing an increase of 3%.
- Average realized sale price per silver equivalent ounce sold for the three months ended September 30, 2013 of $21.26 ( $21.22 per ounce of silver and $1,308 per ounce of gold), representing a decrease of 32% as compared to the comparable period of 2012.
- Net earnings of $77.1 million ( $0.22 per share) compared with $119.7 million ( $0.34 per share) in Q3 2012, representing a decrease of 36%.
- Operating cash flows of $118.7 million ( $0.33 per share¹) compared with $128.7 million ( $0.36 per share [ 1 ]) in Q3 2012, representing a decrease of 8%.
- Cash operating margin [ 1 ] of $16.53 per silver equivalent ounce compared with $27.20 in Q3 2012.
- Average cash costs [ 1 ] were $4.13 and $386 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs1 rose to $4.73 compared with $4.16 in Q3 2012, due primarily to an increase in the percentage of revenue from gold sales.
- Declared quarterly dividend of $0.09 per common share as the result of the Company's dividend policy whereby the quarterly dividend is equal to 20% of the average of the previous four quarters' operating cash flow.
- Subsequent to quarter end, the Company announced an amendment to the precious metal purchase agreement with Hudbay Minerals Inc. ("Hudbay") to include the acquisition of an amount equal to 50% of the gold production from the Constancia project ("Constancia") in Peru for the life of mine.
- Subsequent to quarter end, Barrick Gold Corp. ("Barrick") announced it will temporarily suspend construction activities at its Pascua-Lama project ("Pascua-Lama"), except those required for environmental protection and regulatory compliance. As a result, Silver Wheaton agreed to amend its silver purchase agreement to extend the Company's entitlement to 100% of the production from three of Barrick's currently producing mines by one year until the end of 2016, and to extend the completion test deadline an additional year to the end of 2017.
- Silver Wheaton recently revised 2017 guidance to reflect recent developments as stated in the Company's November 4, 2013 news release. 2017 guidance is now forecast to be 42.5 million silver equivalent ounces [ 2 ] including 210,000 ounces of gold. Silver Wheaton's 2013 silver equivalent production is still expected to exceed 33.5 million ounces [ 2 ] including 145,000 ounces of gold.
- Silver Wheaton announces the appointment of Chantal Gosselin to the Board of Directors.
Please refer to non-IFRS measures at the end of this press
Silver equivalent production forecast assumes a
 gold/silver ratio of 53.3:1.
"Production in the third quarter once again hit record levels, putting us well on track to achieving our best year ever and exceeding our 2013 production guidance of 33.5 million silver equivalent ounces," said
, President and Chief Executive Officer of Silver Wheaton. "We finished this quarter with our second strongest quarterly sales ever, as the impact of our strong production started flowing through the sales pipeline. Overall, our producing assets performed very well during the quarter, and
and Salobo added to our strength as these mines began contributing consistent gold deliveries."
"While we are somewhat disappointed about the delay at Pascua-Lama, we believe that securing an additional year of production from three of Barrick's other mines adequately compensates Silver Wheaton for extending Pascua-Lama's completion test deadline. We see Barrick's decision as fiscally prudent and important in order to improve the economics and allow Pascua-Lama to ultimately be developed into a world-class gold and silver mine."