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TheStreet Open House

Silver Wheaton Reports Fifth Consecutive Year Of Record Production And Sales Volume

VANCOUVER, British Columbia, March 20, 2014 /PRNewswire/ --

TSX:SLW NYSE:SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE:SLW) is pleased to announce its results for the fourth quarter and year ended December 31, 2013. All figures are presented in United States dollars unless otherwise noted.

FULL YEAR HIGHLIGHTS

  • Record attributable silver equivalent production for the year ended December 31, 2013 of 35.8 million ounces (26.8 million ounces of silver and 151,000 ounces of gold), compared to 29.4 million ounces in 2012, representing an increase of 22%.
  • Record silver equivalent sales volume for the year ended December 31, 2013 of 30.0 million ounces (22.8 million ounces of silver and 117,300 ounces of gold), compared to 27.3 million ounces in 2012, representing an increase of 10%.
  • Revenues of $706.5 million compared with $849.6 million in 2012, representing a decrease of 17%.
  • Average realized sale price per silver equivalent ounce sold for the year ended December 31, 2013 of $23.58 ( $23.86 per ounce of silver and $1,380 per ounce of gold), representing a decrease of 24% as compared to 2012.
  • Net earnings of $375.5 million ( $1.06 per share) compared with $586.0 million ( $1.66 per share) in 2012, representing a decrease of 36%.
  • Operating cash flows of $534.1 million ( $1.50 per share [ 1]) compared with $719.4 million ( $2.03 per share [ 1]) in 2012, representing a decrease of 26%.
  • Cash operating margin [ 1] of $18.93 per silver equivalent ounce compared with $26.79 in 2012.
  • Average cash costs [ 1] were $4.12 and $386 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs [ 1] rose to $4.65 compared with $4.30 in 2012, due primarily to an increase in the percentage of revenue from gold sales.
  • Subsequent to year end, on March 20, 2014, the Company announced that it will be implementing a dividend reinvestment plan whereby shareholders can elect to have cash dividends reinvested directly into additional Silver Wheaton common shares. It is intended that the plan will be effective commencing with the second dividend of 2014 which will be paid after the announcement of the First Quarter 2014 Earnings Results. The plan remains subject to regulatory approval.

FOURTH QUARTER HIGHLIGHTS

  • Record attributable silver equivalent production for the three months ended December 31, 2013 of 9.7 million ounces (7.3 million ounces of silver and 40,700 ounces of gold), compared to 8.3 million ounces in Q4 2012, representing an increase of 17%.
  • Attributable silver equivalent sales volume for the three months ended December 31, 2013 of 8.0 million ounces (6.1 million ounces of silver and 31,200 ounces of gold), compared to 9.1 million ounces in Q4 2012, representing a decrease of 13%.
  • Revenues of $167.4 million compared with $287.2 million in Q4 2012, representing a decrease of 42%.
  • Average realized sale price per silver equivalent ounce sold for the three months ended December 31, 2013 of $21.00 ( $21.03 per ounce of silver and $1,277 per ounce of gold), representing a decrease of 33% as compared to Q4 2012.
  • Net earnings of $93.9 million ( $0.26 per share) compared with $177.7 million ( $0.50 per share) in Q4 2012, representing a decrease of 47%.
  • Operating cash flows of $124.6 million ( $0.35 per share [ 1]) compared with $254.0 million ( $0.72 per share [ 1]) in Q4 2012, representing a decrease of 51%.
  • Cash operating margin [ 1] of $16.30 per silver equivalent ounce compared with $26.76 in Q4 2012.
  • Average cash costs [ 1] were $4.14 and $394 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs [ 1] were $4.70, virtually unchanged from Q4 2012.
  • Declared quarterly dividend of $0.07 per common share as the result of the Company's dividend policy whereby the quarterly dividend per share is equal to 20% of the average cash generated by operating activities in the previous four quarters divided by the Company's outstanding common shares at the time the dividend is approved.
  • On October 31, 2013, the Company announced that, as a result of Barrick Gold Corp.'s ("Barrick") decision to temporarily suspend construction activities at Pascua-Lama, the Company has amended its silver purchase agreement with Barrick to extend the outside completion test deadline by an additional year until December 31, 2017 in exchange for extending Silver Wheaton's entitlement to the silver production from three of Barrick's other mines by one year to December 31, 2016.
  • On November 4, 2013, the Company announced that it had amended its precious metal purchase agreement with Hudbay Minerals Inc. ("Hudbay") to include an amount equal to 50% of the life of mine gold production from its Constancia project.
  • On November 11, 2013, the Company announced that it had entered into an Early Deposit Gold Stream Agreement to acquire from Sandspring Resources Ltd. ("Sandspring") an amount of gold equal to 10% of the life of mine gold production from its Toroparu project located in the Republic of Guyana, South America. 

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