|
|
|
|||
|
SILVER WHEATON CORP.
|
|
|||
May 7, 2015
|
By:
|
/s/ Curt Bernardi
|
|
||
|
|
Name:
|
Curt Bernardi
|
|
|
|
|
Title:
|
Senior Vice President, Legal
|
|
|
|
and Corporate Secretary
|
|
|
3-
|
FOR IMMEDIATE RELEASE | TSX: | SLW |
May 7, 2015 | NYSE: | SLW |
●
|
Record attributable silver equivalent production in Q1 2015 of 10.4 million ounces (6.3 million ounces of silver and 55,100 ounces of gold), compared with 9.0 million ounces in Q1 2014, representing an increase of 15%.
|
●
|
Attributable silver equivalent sales volume in Q1 2015 of 7.7 million ounces (5.7 million ounces of silver and 28,400 ounces of gold), compared with 8.1 million ounces in Q1 2014, representing a decrease of 5%.
|
●
|
During the three month period ending March 31, 2015, payable silver equivalent ounces attributable to the Company produced but not yet delivered increased by 1.6 million ounces to approximately 6.5 million ounces.
|
●
|
Revenues of $130.5 million in Q1 2015 compared with $165.4 million in Q1 2014, representing a decrease of 21%.
|
●
|
Average realized sale price per silver equivalent ounce sold in Q1 2015 of $16.90 ($16.95 per ounce of silver and $1,214 per ounce of gold) compared with $20.38 in Q1 2014, representing a decrease of 17%.
|
●
|
Net earnings of $49.4 million ($0.13 per share) in Q1 2015 compared with $79.8 million ($0.22 per share) in Q1 2014, representing a decrease of 38%.
|
●
|
Operating cash flows of $89.1 million ($0.24 per share¹) in Q1 2015 compared with $114.8 million ($0.32 per share¹) in Q1 2014, representing a decrease of 22%.
|
●
|
Cash operating margin1 in Q1 2015 of $12.44 per silver equivalent ounce compared with $15.81 in Q1 2014, representing a decrease of 21%.
|
1 |
Please refer to non-IFRS measures at the end of this press release.
|
●
|
Average cash costs1 in Q1 2015 were $4.14 and $388 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs¹ decreased to $4.46 compared with $4.57 in Q1 2014.
|
●
|
Declared quarterly dividend of $0.05 per common share.
|
●
|
On January 5, 2015, the Company announced that it had amended its silver purchase agreement related to Barrick Gold Corporation’s (“Barrick”) Pascua-Lama project (“Pascua-Lama”), located on the border of Chile and Argentina.
|
●
|
On February 27, 2015, the Company announced that it had amended and restated its revolving credit facility (“Revolving Facility”). Silver Wheaton increased the available credit from $1 billion to $2 billion and used proceeds drawn from the Revolving Facility together with cash on hand to repay the $1 billion of debt previously outstanding under the Company’s non-revolving term loan.
|
●
|
On March 2, 2015, Silver Wheaton announced that it had acquired from Vale S.A. ("Vale") an additional 25% of the life of mine gold production from its Salobo mine, located in Brazil, for an upfront payment of $900 million.
|
●
|
On March 2, 2015, the Company announced that it had entered into an agreement with a syndicate of underwriters led by Scotiabank, pursuant to which they agreed to purchase, on a bought deal basis, 38,930,000 common shares of Silver Wheaton at a price of US$20.55 per share (the “Offering”), for aggregate gross proceeds to Silver Wheaton of approximately US$800 million.
|
●
|
On March 17, 2015, the Company announced that it had closed the Offering and received $800 million in gross proceeds (net proceeds of approximately $769 million after payment of underwriters’ fees and expenses).
|
●
|
Events Subsequent to the Quarter
|
o
|
Hudbay Minerals Inc.’s (“Hudbay”) Constancia mine in Peru achieved commercial production on April 30, 2015.
|
1 |
Please refer to non-IFRS measures at the end of this press release.
|
1 | In the prior year, the San Dimas mine reached the previous sharing threshold of 3.5 million ounces of silver on March 13, 2014. |
2 | Primero’s first quarter of 2015 MD&A dated May 6, 2015. |
Dial toll free from Canada or the US: | 888-231-8191 |
Dial from outside Canada or the US: | 647-427-7450 |
Pass code: | 25021471 |
Live audio webcast: | www.silverwheaton.com |
Dial toll free from Canada or the US: | 855-859-2056 |
Dial from outside Canada or the US: | 416-849-0833 |
Pass code: | 25021471 |
Archived audio webcast: | www.silverwheaton.com |
Three Months Ended
March 31
|
|||||
(US dollars and shares in thousands, except per share amounts - unaudited)
|
2015
|
2014
|
|||
Sales
|
$
|
130,504
|
$
|
165,379
|
|
Cost of sales
|
|||||
Cost of sales, excluding depletion
|
$
|
34,464
|
$
|
37,088
|
|
Depletion
|
32,045
|
36,621
|
|||
Total cost of sales
|
$
|
66,509
|
$
|
73,709
|
|
Earnings from operations
|
$
|
63,995
|
$
|
91,670
|
|
Expenses and other income
|
|||||
General and administrative 1
|
$
|
8,170
|
$
|
10,110
|
|
Foreign exchange gain
|
(373)
|
(281)
|
|||
Interest expense
|
1,500
|
1,108
|
|||
Other expense
|
2,297
|
910
|
|||
|
$
|
11,594
|
$
|
11,847
|
|
Earnings before income taxes
|
$
|
52,401
|
$
|
79,823
|
|
Income tax expense
|
(2,982)
|
(14)
|
|||
Net earnings
|
$
|
49,419
|
$
|
79,809
|
|
Basic earnings per share
|
$
|
0.13
|
$
|
0.22
|
|
Diluted earnings per share
|
$
|
0.13
|
$
|
0.22
|
|
Weighted average number of shares outstanding
|
|||||
Basic
|
370,844
|
357,398
|
|||
Diluted
|
371,115
|
357,940
|
|||
1) Equity settled stock based compensation (a non-cash item) included in general and administrative expenses.
|
$
|
1,922
|
$
|
2,182
|
March 31
|
December 31
|
||||
(US dollars in thousands - unaudited)
|
2015
|
2014
|
|||
Assets
|
|||||
Current assets
|
|||||
Cash and cash equivalents
|
$
|
88,008
|
$
|
308,098
|
|
Accounts receivable
|
2,479
|
4,132
|
|||
Other
|
1,250
|
26,263
|
|||
Total current assets
|
$
|
91,737
|
$
|
338,493
|
|
Non-current assets
|
|||||
Silver and gold interests
|
$
|
5,118,826
|
$
|
4,248,265
|
|
Early deposit - gold interest
|
13,613
|
13,599
|
|||
Royalty interest
|
9,107
|
9,107
|
|||
Long-term investments
|
25,157
|
32,872
|
|||
Other
|
9,634
|
5,427
|
|||
Total non-current assets
|
$
|
5,176,337
|
$
|
4,309,270
|
|
Total assets
|
$
|
5,268,074
|
$
|
4,647,763
|
|
Liabilities
|
|||||
Current liabilities
|
|||||
Accounts payable and accrued liabilities
|
$
|
15,060
|
$
|
14,798
|
|
Dividends payable
|
20,198
|
-
|
|||
Current portion of performance share units
|
3,328
|
1,373
|
|||
Total current liabilities
|
$
|
38,586
|
$
|
16,171
|
|
Non-current liabilities
|
|||||
Bank debt
|
$
|
800,000
|
$
|
998,518
|
|
Deferred income taxes
|
133
|
942
|
|||
Performance share units
|
1,859
|
3,396
|
|||
Total non-current liabilities
|
$
|
801,992
|
$
|
1,002,856
|
|
Total liabilities
|
$
|
840,578
|
$
|
1,019,027
|
|
Shareholders' equity
|
|||||
Issued capital
|
$
|
2,815,338
|
$
|
2,037,923
|
|
Reserves
|
(36,717)
|
(28,841)
|
|||
Retained earnings
|
1,648,875
|
1,619,654
|
|||
Total shareholders' equity
|
$
|
4,427,496
|
$
|
3,628,736
|
|
Total liabilities and shareholders' equity
|
$
|
5,268,074
|
$
|
4,647,763
|
Three Months Ended
March 31
|
|||||
(US dollars in thousands - unaudited)
|
2015
|
2014
|
|||
Operating activities
|
|||||
Net earnings
|
$
|
49,419
|
$
|
79,809
|
|
Adjustments for
|
|||||
Depreciation and depletion
|
32,142
|
36,688
|
|||
Amortization of credit facility origination fees:
|
|||||
Interest expense
|
113
|
55
|
|||
Amortization of credit facility origination fees - undrawn facilities
|
248
|
251
|
|||
Write off of credit facility origination fees upon repayment of NRT Loan
|
1,315
|
-
|
|||
Interest expense
|
1,387
|
1,053
|
|||
Equity settled stock based compensation
|
1,922
|
2,182
|
|||
Performance share units
|
782
|
147
|
|||
Deferred income tax expense (recovery)
|
2,936
|
(40)
|
|||
Investment income recognized in net earnings
|
(132)
|
(85)
|
|||
Other
|
(38)
|
(78)
|
|||
Change in non-cash working capital
|
150
|
(4,132)
|
|||
Cash generated from operations
|
$
|
90,244
|
$
|
115,850
|
|
Interest paid - expensed
|
(1,188)
|
(1,046)
|
|||
Interest received
|
75
|
28
|
|||
Cash generated from operating activities
|
$
|
89,131
|
$
|
114,832
|
|
Financing activities
|
|||||
Bank debt repaid
|
$
|
(1,000,000)
|
$
|
-
|
|
Bank debt drawn
|
800,000
|
-
|
|||
Credit facility origination fees
|
(4,112)
|
(600)
|
|||
Shares issued
|
800,000
|
-
|
|||
Share issue costs
|
(30,344)
|
-
|
|||
Share purchase options exercised
|
2,887
|
13
|
|||
Cash generated from (applied to) financing activities
|
$
|
568,431
|
$
|
(587)
|
|
Investing activities
|
|||||
Silver and gold interests
|
$
|
(900,003)
|
$
|
(125,082)
|
|
Interest paid - capitalized to silver interests
|
(1,824)
|
(2,891)
|
|||
Silver and gold interests - early deposit
|
(13)
|
(149)
|
|||
Proceeds on disposal of silver interest
|
25,000
|
-
|
|||
Dividend income received
|
57
|
57
|
|||
Other
|
(612)
|
(26)
|
|||
Cash applied to investing activities
|
$
|
(877,395)
|
$
|
(128,091)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
$
|
(257)
|
$
|
(7)
|
|
Decrease in cash and cash equivalents
|
$
|
(220,090)
|
$
|
(13,853)
|
|
Cash and cash equivalents, beginning of period
|
308,098
|
95,823
|
|||
Cash and cash equivalents, end of period
|
$
|
88,008
|
$
|
81,970
|
2015
|
2014
|
2013
|
||||||
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
|
Silver ounces produced 2
|
||||||||
San Dimas 3
|
1,928
|
1,744
|
1,290
|
1,118
|
1,608
|
1,979
|
1,660
|
1,160
|
Yauliyacu
|
576
|
687
|
875
|
658
|
718
|
687
|
639
|
668
|
Peñasquito
|
1,447
|
1,582
|
1,630
|
2,054
|
2,052
|
2,047
|
1,636
|
1,440
|
Barrick 4
|
640
|
690
|
397
|
299
|
301
|
423
|
465
|
556
|
Other 5
|
1,751
|
1,701
|
1,903
|
2,182
|
2,185
|
2,119
|
2,450
|
2,586
|
Total silver ounces produced
|
6,342
|
6,404
|
6,095
|
6,311
|
6,864
|
7,255
|
6,850
|
6,410
|
Gold ounces produced ²
|
||||||||
777
|
12,081
|
9,669
|
12,105
|
11,611
|
12,785
|
14,134
|
18,259
|
16,986
|
Sudbury 6
|
10,112
|
9,924
|
12,196
|
7,473
|
6,426
|
7,060
|
7,341
|
8,840
|
Salobo
|
27,185
|
12,253
|
10,415
|
8,486
|
8,903
|
10,067
|
8,061
|
6,342
|
Other 7
|
5,728
|
3,435
|
6,959
|
5,185
|
5,749
|
9,530
|
2,894
|
4,226
|
Total gold ounces produced
|
55,106
|
35,281
|
41,675
|
32,755
|
33,863
|
40,791
|
36,555
|
36,394
|
Silver equivalent ounces of gold produced 8
|
4,029
|
2,615
|
2,786
|
2,144
|
2,121
|
2,476
|
2,237
|
2,269
|
Silver equivalent ounces produced 8
|
10,371
|
9,019
|
8,881
|
8,455
|
8,985
|
9,731
|
9,087
|
8,679
|
Silver equivalent ounces produced - as originally reported 2, 8
|
n.a.
|
8,964
|
8,447
|
8,365
|
8,977
|
9,723
|
8,948
|
8,615
|
Increase (Decrease) 2
|
n.a.
|
55
|
434
|
90
|
8
|
8
|
139
|
64
|
Silver ounces sold
|
||||||||
San Dimas 3
|
1,901
|
1,555
|
1,295
|
1,194
|
1,529
|
2,071
|
1,560
|
1,194
|
Yauliyacu
|
320
|
761
|
1,373
|
111
|
1,097
|
674
|
13
|
559
|
Peñasquito
|
1,573
|
1,640
|
1,662
|
1,958
|
1,840
|
1,412
|
1,388
|
1,058
|
Barrick 4
|
648
|
671
|
377
|
291
|
361
|
397
|
447
|
560
|
Other 5
|
1,223
|
1,106
|
1,592
|
1,673
|
1,398
|
1,510
|
2,257
|
1,771
|
Total silver ounces sold
|
5,665
|
5,733
|
6,299
|
5,227
|
6,225
|
6,064
|
5,665
|
5,142
|
Gold ounces sold
|
||||||||
777
|
6,629
|
8,718
|
15,287
|
13,599
|
6,294
|
15,889
|
16,972
|
23,483
|
Sudbury 6
|
8,033
|
11,251
|
5,566
|
6,718
|
6,878
|
6,551
|
6,534
|
4,184
|
Salobo
|
9,794
|
14,270
|
7,180
|
11,902
|
10,560
|
6,944
|
6,490
|
2,793
|
Other 7
|
3,943
|
3,665
|
8,685
|
2,559
|
6,390
|
1,840
|
5,287
|
3,409
|
Total gold ounces sold
|
28,399
|
37,904
|
36,718
|
34,778
|
30,122
|
31,224
|
35,283
|
33,869
|
Silver equivalent ounces of gold sold 8
|
2,058
|
2,808
|
2,441
|
2,267
|
1,891
|
1,909
|
2,163
|
2,097
|
Silver equivalent ounces sold 8
|
7,723
|
8,541
|
8,740
|
7,494
|
8,116
|
7,973
|
7,828
|
7,239
|
Gold / silver ratio 8
|
72.5
|
74.1
|
66.5
|
65.2
|
62.8
|
61.1
|
61.3
|
61.9
|
Cumulative payable silver equivalent ounces produced but not yet delivered 9
|
6,485
|
4,893
|
5,147
|
5,996
|
6,042
|
5,997
|
5,283
|
4,736
|
1)
|
All figures in thousands except gold ounces produced and sold.
|
2)
|
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.
|
3)
|
The ounces produced and sold include ounces received from Goldcorp in connection with Goldcorp’s four year commitment commencing on August 6, 2010 to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero.
|
4)
|
Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
|
5)
|
Comprised of the Los Filos, Zinkgruvan, Cozamin, Neves-Corvo, Stratoni, Keno Hill, Minto, 777, Aljustrel and Constancia silver interests in addition to the previously owned Mineral Park and Campo Morado silver interests.
|
6)
|
Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests.
|
7)
|
Comprised of the Minto and Constancia gold interests.
|
8)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
9)
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates. These figures may be updated in future periods as additional information is received.
|
Three Months Ended March 31, 2015
|
||||||||||||||||
Ounces
Produced2
|
Ounces
Sold
|
Sales
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash
Cost
($'s Per
Ounce)3
|
Average
Depletion
($'s Per
Ounce)
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total Assets
|
||||||||
Silver
|
||||||||||||||||
San Dimas
|
1,928
|
1,901
|
$
|
32,054
|
$
|
16.86
|
$
|
4.20
|
$
|
0.88
|
$
|
22,398
|
$
|
24,069
|
$
|
151,280
|
Yauliyacu
|
576
|
320
|
5,289
|
16.53
|
4.16
|
6.43
|
1,899
|
3,958
|
185,419
|
|||||||
Peñasquito
|
1,447
|
1,573
|
27,010
|
17.17
|
4.07
|
2.85
|
16,128
|
20,607
|
446,667
|
|||||||
Barrick 4
|
640
|
648
|
10,877
|
16.79
|
3.90
|
3.24
|
6,253
|
8,350
|
605,783
|
|||||||
Other 5
|
1,751
|
1,223
|
20,782
|
16.99
|
4.26
|
3.83
|
10,886
|
15,984
|
555,058
|
|||||||
|
6,342
|
5,665
|
$
|
96,012
|
$
|
16.95
|
$
|
4.14
|
$
|
2.65
|
$
|
57,564
|
$
|
72,968
|
$
|
1,944,207
|
Gold
|
||||||||||||||||
777
|
12,081
|
6,629
|
$
|
7,929
|
$
|
1,196
|
$
|
400
|
$
|
823
|
$
|
(176)
|
$
|
5,643
|
$
|
238,459
|
Sudbury 6
|
10,112
|
8,033
|
9,682
|
1,205
|
400
|
841
|
(291)
|
6,053
|
577,103
|
|||||||
Salobo
|
27,185
|
9,794
|
12,096
|
1,235
|
400
|
420
|
4,067
|
8,178
|
2,198,143
|
|||||||
Other 7
|
5,728
|
3,943
|
4,785
|
1,213
|
311
|
184
|
2,831
|
3,450
|
160,914
|
|||||||
|
55,106
|
28,399
|
$
|
34,492
|
$
|
1,214
|
$
|
388
|
$
|
600
|
$
|
6,431
|
$
|
23,324
|
$
|
3,174,619
|
Silver equivalent 8
|
10,371
|
7,723
|
$
|
130,504
|
$
|
16.90
|
$
|
4.46
|
$
|
4.15
|
$
|
63,995
|
$
|
96,292
|
$
|
5,118,826
|
Corporate
|
||||||||||||||||
General and administrative
|
$
|
(8,170)
|
||||||||||||||
Other
|
(6,406)
|
|||||||||||||||
Total corporate
|
$
|
(14,576)
|
$
|
(7,161)
|
$
|
149,248
|
||||||||||
|
10,371
|
7,723
|
$
|
130,504
|
$
|
16.90
|
$
|
4.46
|
$
|
4.15
|
$
|
49,419
|
$
|
89,131
|
$
|
5,268,074
|
1)
|
All figures in thousands except gold ounces produced and sold and per ounce amounts.
|
2)
|
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.
|
3)
|
Refer to discussion on non-IFRS measures at the end of this press release.
|
4)
|
Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
5)
|
Comprised of the operating Los Filos, Zinkgruvan, Cozamin, Neves-Corvo, Stratoni, Minto, 777 and Constancia silver interests in addition to the non-operating Aljustrel, Keno Hill, Rosemont and Loma de La Plata silver interests.
|
6)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests in addition to the non-operating Victor gold interest.
|
7)
|
Comprised of the operating Minto and Constancia gold interests in addition to the non-operating Rosemont gold interest.
|
8)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
Three Months Ended March 31, 2014
|
||||||||||||||||
Ounces
Produced 2
|
Ounces
Sold
|
Sales
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash
Cost
($'s Per
Ounce) 3
|
Average
Depletion
($'s Per
Ounce)
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total Assets
|
||||||||
Silver
|
||||||||||||||||
San Dimas 4
|
1,608
|
1,529
|
$
|
31,608
|
$
|
20.67
|
$
|
4.17
|
$
|
0.81
|
$
|
23,986
|
$
|
25,232
|
$
|
156,246
|
Yauliyacu
|
718
|
1,097
|
22,166
|
20.21
|
4.12
|
5.92
|
11,147
|
17,646
|
200,778
|
|||||||
Peñasquito
|
2,052
|
1,840
|
37,562
|
20.42
|
4.05
|
2.98
|
24,632
|
30,111
|
466,810
|
|||||||
Barrick 5
|
301
|
361
|
7,407
|
20.53
|
3.90
|
3.26
|
4,823
|
6,765
|
602,315
|
|||||||
Other 6
|
2,185
|
1,398
|
28,001
|
20.02
|
4.19
|
3.99
|
16,551
|
23,288
|
670,088
|
|||||||
|
6,864
|
6,225
|
$
|
126,744
|
$
|
20.36
|
$
|
4.12
|
$
|
3.21
|
$
|
81,139
|
$
|
103,042
|
$
|
2,096,237
|
Gold
|
||||||||||||||||
777
|
12,785
|
6,294
|
$
|
8,039
|
$
|
1,277
|
$
|
400
|
$
|
823
|
$
|
344
|
$
|
5,522
|
$
|
274,848
|
Sudbury 7
|
6,426
|
6,878
|
8,812
|
1,281
|
400
|
841
|
273
|
6,060
|
603,666
|
|||||||
Salobo
|
8,903
|
10,560
|
13,479
|
1,276
|
400
|
462
|
4,378
|
9,255
|
1,317,606
|
|||||||
Other 8
|
5,749
|
6,390
|
8,305
|
1,300
|
309
|
124
|
5,536
|
5,886
|
27,691
|
|||||||
|
33,863
|
30,122
|
$
|
38,635
|
$
|
1,283
|
$
|
381
|
$
|
552
|
$
|
10,531
|
$
|
26,723
|
$
|
2,223,811
|
Silver equivalent 9
|
8,985
|
8,116
|
$
|
165,379
|
$
|
20.38
|
$
|
4.57
|
$
|
4.51
|
$
|
91,670
|
$
|
129,765
|
$
|
4,320,048
|
Corporate
|
||||||||||||||||
General and administrative
|
$
|
(10,110)
|
||||||||||||||
Other
|
(1,751)
|
|||||||||||||||
Total corporate
|
$
|
(11,861)
|
$
|
(14,933)
|
$
|
156,817
|
||||||||||
|
8,985
|
8,116
|
$
|
165,379
|
$
|
20.38
|
$
|
4.57
|
$
|
4.51
|
$
|
79,809
|
$
|
114,832
|
$
|
4,476,865
|
1)
|
All figures in thousands except gold ounces produced and sold and per ounce amounts.
|
2)
|
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.
|
3)
|
Refer to discussion on non-IFRS measures at the end of this press release.
|
4)
|
Results for San Dimas include 375,000 ounces received from Goldcorp in connection with Goldcorp’s four year commitment commencing on August 6, 2010 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 operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
6)
|
Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777 and Aljustrel silver interests; the non-operating Rosemont, Loma de La Plata and Constancia silver interests; and the previously owned Mineral Park and Campo Morado silver interests.
|
7)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Totten and Creighton gold interests in addition to the non-operating Victor gold interest.
|
8)
|
Comprised of the operating Minto gold interest in addition to the non-operating Rosemont and Constancia gold interests.
|
9)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
i.
|
Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
|
ii.
|
Average cash cost of silver and gold on a per ounce basis is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.
|
iii.
|
Cash operating margin is calculated by subtracting the average cash cost of silver and gold on a per ounce basis from the average realized selling price of silver and gold on a per ounce basis. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
|
•
|
Record attributable silver equivalent production for the three months ended March 31, 2015 of 10.4 million ounces (6.3 million ounces of silver and 55,100 ounces of gold) representing an increase of 15% over the comparable period of 2014.
|
•
|
Attributable silver equivalent sales volume for the three months ended March 31, 2015 of 7.7 million ounces (5.7 million ounces of silver and 28,400 ounces of gold) representing a decrease of 5% compared to the comparable period of 2014.
|
•
|
As at March 31, 2015, approximately 6.5 million payable silver equivalent ounces attributable to the Company have been produced at the various mines and will be recognized in future sales as they are delivered to the Company under the terms of their contracts. This represents an increase of 1.6 million payable silver equivalent ounces during the three month period ended March 31, 2015. Payable ounces produced but not yet delivered to Silver Wheaton are expected to average approximately 2 to 3 months of annualized production but may vary from quarter to quarter due to a number of factors including mine ramp-up, delays in shipments, etc.1
|
•
|
Average realized sale price per silver equivalent ounce sold for the three months ended March 31, 2015 of $16.90 ($16.95 per ounce of silver and $1,214 per ounce of gold), compared with $20.38 for the comparable period in 2014, representing a decrease of 17%.
|
•
|
Revenue for the three months ended March 31, 2015 of $130.5 million compared with $165.4 million for the comparable period in 2014, representing a decrease of 21%.
|
•
|
Net earnings for the three months ended March 31, 2015 of $49.4 million ($0.13 per share) compared with $79.8 million ($0.22 per share) for the comparable period in 2014, representing a decrease of 38%.
|
•
|
Operating cash flows for the three months ended March 31, 2015 of $89.1 million ($0.24 per share2) compared with $114.8 million ($0.32 per share2) for the comparable period in 2014, representing a decrease of 22%.
|
•
|
On May 7, 2015, the Board of Directors declared a dividend in the amount of $0.05 per common share as per the Company’s stated dividend policy whereby the quarterly dividend will be equal to 20% of the average of the operating cash flow of the previous four quarters. This dividend is payable to shareholders of record on May 20, 2015 and is expected to be distributed on or about June 2, 2015. The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to have dividends reinvested directly into additional Silver Wheaton common shares at a discount of 3% of the Average Market Price, as defined in the DRIP.
|
1 | Statements made in this section contain forward-looking information with respect to forecast ounces produced but not yet delivered and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
2 |
Refer to discussion on non-IFRS measure (ii) of page 18 of this MD&A
|
•
|
Average cash costs1 for the three months ended March 31, 2015 of $4.46 per silver equivalent ounce compared with $4.57 per silver equivalent ounce for the comparable period in 2014.
|
•
|
Cash operating margin2 for the three months ended March 31, 2015 of $12.44 per silver equivalent ounce compared with $15.81 per silver equivalent ounce for the comparable period in 2014.
|
•
|
On March 2, 2015, the Company announced that it had agreed to amend its agreement with Vale S.A (“Vale”) to acquire an additional amount of gold equal to 25% of the life of mine gold production from any minerals from the Salobo mine that enter the Salobo mineral processing facility from and after January 1, 2015. This acquisition is in addition to the 25% of the Salobo mine gold production that the Company acquired pursuant to its agreement in 2013.
|
•
|
On April 22, 2015, the Company amended its early deposit precious metal purchase agreement with Sandspring Resources Ltd. ("Sandspring") to include the acquisition of an amount equal to 50% of the silver production from its Toroparu project located in the Republic of Guyana, South America.
|
•
|
On February 27, 2015, the Company announced that it had amended its $1 billion revolving credit facility (the “Revolving Facility”) by increasing the available credit from $1 billion to $2 billion and extending the term by 2 years, with the facility now maturing on February 27, 2020. The Company used proceeds drawn from this amended Revolving Facility together with cash on hand to repay the non-revolving term loan.
|
•
|
On January 5, 2015, the Company announced that it had amended its silver purchase agreement related to Barrick Gold Corporation’s (“Barrick”) Pascua-Lama project (“Pascua-Lama”). The amendment entails Silver Wheaton being entitled to 100% of the silver production from Barrick’s Lagunas Norte, Pierina and Veladero mines until March 31, 2018 - an extension of 1 ¼ years, and extending the completion test deadline an additional 2 ½ years to June 30, 2020. As a reminder, if the requirements of the completion test have not been satisfied by the amended completion date, the agreement may be terminated by Silver Wheaton. In such an event, Silver Wheaton will be entitled to the return of the upfront cash consideration of $625 million less a credit for any silver delivered up to that date.
|
•
|
On March 2, 2015, the Company announced that, in connection with the amended Salobo precious metal purchase agreement, it had entered into an agreement with a syndicate of underwriters led by Scotiabank, pursuant to which they agreed to purchase, on a bought deal basis, 38,930,000 common shares of Silver Wheaton at a price of $20.55 per share (the "Offering"), for aggregate gross proceeds to Silver Wheaton of approximately $800 million.
|
•
|
On March 17, 2015, the Company announced that it had closed the Offering and received $800 million in gross proceeds (net proceeds of approximately $769 million after payment of underwriters’ fees and expenses).
|
•
|
As per Hudbay Minerals Inc.’s (“Hudbay”) first quarter 2015 MD&A, Hudbay’s Constancia mine in Peru achieved commercial production on April 30, 2015.
|
1 | Refer to discussion on non-IFRS measure (iii) of page 19 of this MD&A |
2 | Refer to discussion on non-IFRS measure (iv) of page 20 of this MD&A |
1
|
Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding commitments and continuing to acquire accretive precious metal stream interests and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
|
Silver and Gold
Interests
|
Mine
Owner
|
Location of
Mine
|
Upfront Consideration 1
|
Attributable
Production to be
Purchased
|
Term of
Agreement
|
Date of
Original
Contract
|
|
Silver
|
Gold
|
||||||
San Dimas
|
Primero
|
Mexico
|
$ 189,799
|
100% 2
|
0%
|
Life of Mine
|
15-Oct-04
|
Yauliyacu
|
Glencore
|
Peru
|
$ 285,000
|
100% 3
|
0%
|
20 years
|
23-Mar-06
|
Peñasquito
|
Goldcorp
|
Mexico
|
$ 485,000
|
25%
|
0%
|
Life of Mine
|
24-Jul-07
|
777
|
Hudbay
|
Canada
|
$ 455,100
|
100%
|
100%/50% 4
|
Life of Mine
|
8-Aug-12
|
Salobo
|
Vale
|
Brazil
|
$ 2,230,000 5
|
0%
|
50%
|
Life of Mine
|
28-Feb-13
|
Sudbury
|
$ 623,572 6
|
||||||
Coleman
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Copper Cliff
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Garson
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Stobie
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Creighton
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Totten
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Victor
|
Vale
|
Canada
|
0%
|
70%
|
20 years
|
28-Feb-13
|
|
Barrick
|
$ 625,000
|
||||||
Pascua-Lama
|
Barrick
|
Chile/Argentina
|
25%
|
0%
|
Life of Mine
|
8-Sep-09
|
|
Lagunas Norte
|
Barrick
|
Peru
|
100%
|
0%
|
8.5 years
|
8-Sep-09
|
|
Pierina
|
Barrick
|
Peru
|
100%
|
0%
|
8.5 years 7
|
8-Sep-09
|
|
Veladero
|
Barrick
|
Argentina
|
100% 8
|
0%
|
8.5 years
|
8-Sep-09
|
|
Other
|
|||||||
Los Filos
|
Goldcorp
|
Mexico
|
$ 4,463
|
100%
|
0%
|
25 years
|
15-Oct-04
|
Zinkgruvan
|
Lundin
|
Sweden
|
$ 77,866
|
100%
|
0%
|
Life of Mine
|
8-Dec-04
|
Stratoni
|
Eldorado Gold 9
|
Greece
|
$ 57,500
|
100%
|
0%
|
Life of Mine
|
23-Apr-07
|
Minto
|
Capstone
|
Canada
|
$ 54,805
|
100%
|
100% 10
|
Life of Mine
|
20-Nov-08
|
Cozamin
|
Capstone
|
Mexico
|
$ 41,959
|
100%
|
0%
|
10 years
|
4-Apr-07
|
Neves-Corvo
|
Lundin
|
Portugal
|
$ 35,350
|
100%
|
0%
|
50 years
|
5-Jun-07
|
Aljustrel
|
I'M SGPS
|
Portugal
|
$ 2,451
|
100% 11
|
0%
|
50 years
|
5-Jun-07
|
Keno Hill
|
Alexco
|
Canada
|
$ 50,000
|
25%
|
0%
|
Life of Mine
|
2-Oct-08
|
Rosemont
|
Hudbay
|
United States
|
$ 230,000 12
|
100%
|
100%
|
Life of Mine
|
10-Feb-10
|
Loma de La Plata
|
Pan American
|
Argentina
|
$ 43,289 13
|
12.5%
|
0%
|
Life of Mine
|
n/a 14
|
Constancia
|
Hudbay
|
Peru
|
$ 429,900
|
100%
|
50% 15
|
Life of Mine
|
8-Aug-12
|
Early Deposit
|
|
||||||
Toroparu
|
Sandspring
|
Guyana
|
$ 153,500 16
|
50%
|
10% 16
|
Life of Mine
|
11-Nov-13
|
1)
|
Expressed in United States dollars, rounded to the nearest thousand; excludes closing costs and capitalized interest, where applicable.
|
2)
|
Until August 6, 2014, Primero delivered to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton received an additional 1.5 million ounces of silver per annum which was delivered by Goldcorp. Beginning August 6, 2014, Primero will deliver a per annum amount to Silver Wheaton equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess.
|
3)
|
To a maximum of 4.75 million ounces per annum. In the event that silver sold and delivered to Silver Wheaton in any year totals less than 4.75 million ounces, the amount sold and delivered to Silver Wheaton in subsequent years will be increased to make up for any cumulative shortfall, to the extent production permits.
|
4)
|
Silver Wheaton is entitled to acquire 100% of the life of mine gold production from Hudbay’s 777 mine until Hudbay’s Constancia project satisfies a completion test, or the end of 2016, whichever is later. At that point, Silver Wheaton’s share of gold production from 777 will be reduced to 50% for the life of the mine.
|
5)
|
Does not include the contingent payment related to the Salobo mine expansion. Vale has recently completed the expansion of the mill throughput capacity at the Salobo mine to 24 million tonnes per annum (“Mtpa”) from its previous 12 Mtpa. If actual throughput is expanded above 28 Mtpa within a predetermined period, Silver Wheaton will be required to make an additional payment to Vale based on a set fee schedule ranging from $88 million if throughput is expanded beyond 28 Mtpa by January 1, 2036, up to $720 million if throughput is expanded beyond 40 Mtpa by January 1, 2018.
|
6)
|
Comprised of a $570 million upfront cash payment plus warrants to purchase 10 million shares of Silver Wheaton common stock at a strike price of $65, with a term of 10 years.
|
7)
|
As per Barrick’s disclosure, closure activities were initiated at Pierina in August 2013.
|
8)
|
Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore processed at Veladero during the period.
|
9)
|
95% owned by Eldorado Gold Corporation.
|
10)
|
The Company is entitled to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
|
11)
|
Silver Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
12)
|
The upfront consideration is currently reflected as a contingent obligation, payable on an installment basis to partially fund construction of the Rosemont mine once certain milestones are achieved, including the receipt of key permits and securing the necessary financing to complete construction of the mine.
|
13)
|
Comprised of $10.9 million allocated to the silver interest upon the Company’s acquisition of Silverstone Resources Corp. in addition to a contingent liability of $32.4 million, payable upon the satisfaction of certain conditions, including Pan American receiving all necessary permits to proceed with the mine construction.
|
14)
|
Definitive terms of the agreement to be finalized.
|
15)
|
Gold recoveries will be set at 55% for the Constancia deposit and 70% for the Pampacancha deposit until 265,000 ounces of gold have been delivered to the Company.
|
16)
|
Comprised of $13.5 million paid to date, $2.0 million to be paid in four equal installments over the course of 2015, subject to the satisfaction of certain conditions, and $138.0 million to be payable on an installment basis to partially fund construction of the mine. During the 60 day period following the delivery of a feasibility study, environmental study and impact assessment, and other related documents (collectively, the “Feasibility Documentation”), or after December 31, 2016 if the Feasibility Documentation has not been delivered to Silver Wheaton by such date, Silver Wheaton may elect not to proceed with the precious metal purchase agreement, at which time Silver Wheaton will be entitled to a return of the amounts advanced less $2.0 million which is non-refundable or, at Sandspring’s option, the gold stream percentage will be reduced from 10% to 0.909% and the silver stream percentage will be reduced from 50% to nil. Silver Wheaton may also elect to terminate the Early Deposit Agreement upon the occurrence of certain events prior to the payment of any initial construction payment and elect to reduce the stream percentages or obtain a return of the amounts advanced less $2.0 million.
|
1
|
Statements made in this section contain forward-looking information including the timing and amount of estimated future production and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
|
1
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
|
1 |
Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
|
2 |
Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore processed at Veladero during the period.
|
i.
|
Pascua-Lama SMA Regulatory Sanctions
|
ii.
|
Pascua-Lama Chilean Environmental Court Ruling
|
1
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
|
i.
|
As part of the agreement with Goldcorp to acquire silver from the Luismin mining operations, on October 15, 2004, the Company entered into an agreement with Goldcorp to acquire 100% of the silver production from its Los Filos mine in Mexico for a period of 25 years, commencing October 15, 2004. In addition, pursuant to Goldcorp’s sale of the San Dimas mine, Goldcorp delivered to Silver Wheaton 1.5 million ounces of silver per year until August 6, 2014, which is reflected in this MD&A and financial statements as part of the silver production and sales relating to San Dimas;
|
ii.
|
On December 8, 2004, the Company entered into an agreement with Lundin Mining Corporation (“Lundin”) to acquire 100% of the silver produced by Lundin’s Zinkgruvan mining operations in Sweden for the life of mine;
|
iii.
|
On April 23, 2007, the Company entered into an agreement with European Goldfields Limited, which was acquired by Eldorado Gold Corporation (“Eldorado Gold”) on February 24, 2012, to acquire 100% of the life of mine silver production from its 95% owned Stratoni mine in Greece;
|
1
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
|
iv.
|
On October 2, 2008, the Company entered into an agreement with Alexco Resource Corp. (“Alexco”) to acquire an amount equal to 25% of the life of mine silver production from its Keno Hill silver district in Canada, including the Bellekeno mine (see additional discussion below);
|
v.
|
On May 21, 2009, the Company completed the acquisition of Silverstone Resources Corp. (the “Silverstone Acquisition”). As part of the Silverstone Acquisition, the Company acquired a precious metal purchase agreement with Capstone Mining Corp. (“Capstone”) to acquire 100% of the silver and gold produced (subject to certain thresholds) from Capstone’s Minto mine in Canada for the life of mine. The Company is entitled to acquire 100% of all the silver produced and 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter;
|
vi.
|
As part of the Silverstone Acquisition, the Company acquired a silver purchase agreement with Capstone to acquire 100% of the silver produced from Capstone’s Cozamin mine in Mexico for a period of 10 years, commencing on April 4, 2007;
|
vii.
|
As part of the Silverstone Acquisition, the Company acquired an agreement with Lundin to acquire 100% of the silver production from its Neves-Corvo mine in Portugal for a period of 50 years, commencing June 5, 2007;
|
viii.
|
As part of the Silverstone Acquisition, the Company acquired an agreement with I’M SGPS to acquire 100% of the silver production from its Aljustrel mine in Portugal for a period of 50 years, commencing June 5, 2007. As part of an agreement with I'M SGPS dated July 16, 2014, Silver Wheaton agreed to limit its rights to only silver contained in concentrates containing less than 15% copper;
|
ix.
|
As part of the Silverstone Acquisition, the Company acquired an agreement with Aquiline Resources Inc., which was acquired by Pan American Silver Corp. (“Pan American”) on December 22, 2009, to acquire an amount equal to 12.5% of the life of mine silver production from the Loma de La Plata zone of the Navidad project in Argentina, the definitive terms of which are to be finalized. The Company is committed to pay Pan American total upfront cash payments of $32.4 million following the satisfaction of certain conditions, including Pan American receiving all necessary permits to proceed with the mine construction;
|
x.
|
On February 10, 2010, the Company entered into an agreement with Augusta Resource Corporation, which was acquired by Hudbay on July 16, 2014, to acquire an amount equal to 100% of the life of mine silver and gold production from the Rosemont Copper project (“Rosemont”) in the United States. The Company is committed to pay Hudbay total upfront cash payments of $230 million, payable on an installment basis to partially fund construction of the Rosemont mine once certain milestones are achieved, including the receipt of key permits and securing the necessary financing to complete construction of the mine; and
|
xi.
|
On August 8, 2012, the Company entered into an agreement with Hudbay to acquire an amount equal to 100% of the life of mine silver production from the Constancia project (“Constancia”) in Peru. On November 4, 2013, the Company amended its agreement with Hudbay to include the acquisition of an amount equal to 50%1 of the life of mine gold production from Constancia. If the Constancia processing plant fails to achieve at least 90% of expected throughput and silver recovery by December 31, 2016, Silver Wheaton would be entitled to continued delivery of 100% of the gold production from Hudbay’s 777 mine. If the completion test has not been satisfied by December 31, 2020, Silver Wheaton would be entitled to a proportionate return of the upfront cash consideration relating to Constancia. In addition, Silver Wheaton would be entitled to additional compensation in respect of the gold stream should there be a delay in achieving completion or mining the Pampacancha deposit beyond the end of 2018. Hudbay has granted Silver Wheaton a right of first refusal on any future streaming agreement, royalty agreement, or similar transaction related to the production of silver or gold from Constancia (see additional discussion below).
|
1
|
Gold recoveries will be set at 55% for the Constancia deposit and 70% for the Pampacancha deposit until 265,000 ounces of gold have been delivered to the Company.
|
1
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
|
2
|
Mineral reserves and mineral resources are reported as of December 31, 2014, other than as disclosed in footnote 6 to the Attributable Reserves and Resources tables on page 30 of this MD&A.
|
Mar 31, 2015
|
Three Months
Ended
Mar 31, 2015
|
Dec 31, 2014
|
|
(in thousands)
|
Fair Value
|
Fair Value
Adjustment
Losses Included
in OCI
|
Fair Value
|
Bear Creek
|
$ 12,236
|
$ (4,000)
|
$ 16,236
|
Revett
|
2,459
|
(1,414)
|
3,873
|
Other
|
10,462
|
(2,302)
|
12,763
|
Total common shares held
|
$ 25,157
|
$ (7,716)
|
$ 32,872
|
Mar 31, 2014
|
Three Months
Ended
Mar 31, 2014
|
|
(in thousands)
|
Fair Value
|
Fair Value
Adjustment
Gains Included
in OCI
|
Bear Creek
|
$ 22,201
|
$ 3,993
|
Revett
|
4,256
|
430
|
Other
|
22,488
|
3,721
|
Total common shares held
|
$ 48,945
|
$ 8,144
|
2015
|
2014
|
2013
|
||||||
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
|
Silver ounces produced 2
|
||||||||
San Dimas 3
|
1,928
|
1,744
|
1,290
|
1,118
|
1,608
|
1,979
|
1,660
|
1,160
|
Yauliyacu
|
576
|
687
|
875
|
658
|
718
|
687
|
639
|
668
|
Peñasquito
|
1,447
|
1,582
|
1,630
|
2,054
|
2,052
|
2,047
|
1,636
|
1,440
|
Barrick 4
|
640
|
690
|
397
|
299
|
301
|
423
|
465
|
556
|
Other 5
|
1,751
|
1,701
|
1,903
|
2,182
|
2,185
|
2,119
|
2,450
|
2,586
|
Total silver ounces produced
|
6,342
|
6,404
|
6,095
|
6,311
|
6,864
|
7,255
|
6,850
|
6,410
|
Gold ounces produced 2
|
||||||||
777
|
12,081
|
9,669
|
12,105
|
11,611
|
12,785
|
14,134
|
18,259
|
16,986
|
Sudbury 6
|
10,112
|
9,924
|
12,196
|
7,473
|
6,426
|
7,060
|
7,341
|
8,840
|
Salobo
|
27,185
|
12,253
|
10,415
|
8,486
|
8,903
|
10,067
|
8,061
|
6,342
|
Other 7
|
5,728
|
3,435
|
6,959
|
5,185
|
5,749
|
9,530
|
2,894
|
4,226
|
Total gold ounces produced
|
55,106
|
35,281
|
41,675
|
32,755
|
33,863
|
40,791
|
36,555
|
36,394
|
Silver equivalent ounces of gold produced 8
|
4,029
|
2,615
|
2,786
|
2,144
|
2,121
|
2,476
|
2,237
|
2,269
|
Silver equivalent ounces produced 8
|
10,371
|
9,019
|
8,881
|
8,455
|
8,985
|
9,731
|
9,087
|
8,679
|
Silver equivalent ounces produced - as originally reported 2, 8
|
n.a.
|
8,964
|
8,447
|
8,365
|
8,977
|
9,723
|
8,948
|
8,615
|
Increase (Decrease) 2 |
n.a.
|
55
|
434
|
90
|
8
|
8
|
139
|
64
|
Silver ounces sold
|
||||||||
San Dimas 3
|
1,901
|
1,555
|
1,295
|
1,194
|
1,529
|
2,071
|
1,560
|
1,194
|
Yauliyacu
|
320
|
761
|
1,373
|
111
|
1,097
|
674
|
13
|
559
|
Peñasquito
|
1,573
|
1,640
|
1,662
|
1,958
|
1,840
|
1,412
|
1,388
|
1,058
|
Barrick 4
|
648
|
671
|
377
|
291
|
361
|
397
|
447
|
560
|
Other 5
|
1,223
|
1,106
|
1,592
|
1,673
|
1,398
|
1,510
|
2,257
|
1,771
|
Total silver ounces sold
|
5,665
|
5,733
|
6,299
|
5,227
|
6,225
|
6,064
|
5,665
|
5,142
|
Gold ounces sold
|
||||||||
777
|
6,629
|
8,718
|
15,287
|
13,599
|
6,294
|
15,889
|
16,972
|
23,483
|
Sudbury 6
|
8,033
|
11,251
|
5,566
|
6,718
|
6,878
|
6,551
|
6,534
|
4,184
|
Salobo
|
9,794
|
14,270
|
7,180
|
11,902
|
10,560
|
6,944
|
6,490
|
2,793
|
Other 7
|
3,943
|
3,665
|
8,685
|
2,559
|
6,390
|
1,840
|
5,287
|
3,409
|
Total gold ounces sold
|
28,399
|
37,904
|
36,718
|
34,778
|
30,122
|
31,224
|
35,283
|
33,869
|
Silver equivalent ounces of gold sold 8
|
2,058
|
2,808
|
2,441
|
2,267
|
1,891
|
1,909
|
2,163
|
2,097
|
Silver equivalent ounces sold 8
|
7,723
|
8,541
|
8,740
|
7,494
|
8,116
|
7,973
|
7,828
|
7,239
|
Gold / silver ratio 8
|
72.5
|
74.1
|
66.5
|
65.2
|
62.8
|
61.1
|
61.3
|
61.9
|
Cumulative payable silver equivalent ounces produced but not yet delivered 9
|
6,485
|
4,893
|
5,147
|
5,996
|
6,042
|
5,997
|
5,283
|
4,736
|
1)
|
All figures in thousands except gold ounces produced and sold.
|
2)
|
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.
|
3)
|
The ounces produced and sold include ounces received from Goldcorp in connection with Goldcorp’s four year commitment, commencing August 6, 2010, to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero.
|
4)
|
Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
|
5)
|
Comprised of the Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777, Aljustrel and Constancia silver interests in addition to the previously owned Campo Morado and Mineral Park silver interests.
|
6)
|
Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests.
|
7)
|
Comprised of the Minto and Constancia gold interests.
|
8)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
9)
|
Payable silver equivalent ounces produced but not yet delivered are based on management estimates. These figures may be updated in future periods as additional information is received.
|
2015
|
2014
|
2013
|
||||||||||||||||||||||
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
|||||||||||||||||
Total silver ounces sold (000's)
|
5,665
|
5,733
|
6,299
|
5,227
|
6,225
|
6,064
|
5,665
|
5,142
|
||||||||||||||||
Average realized silver price¹
|
$
|
16.95
|
$
|
16.46
|
$
|
18.98
|
$
|
19.81
|
$
|
20.36
|
$
|
21.03
|
$
|
21.22
|
$
|
23.12
|
||||||||
Silver sales (000's)
|
$
|
96,012
|
$
|
94,395
|
$
|
119,535
|
$
|
103,540
|
$
|
126,744
|
$
|
127,549
|
$
|
120,255
|
$
|
118,885
|
||||||||
Total gold ounces sold
|
28,399
|
37,904
|
36,718
|
34,778
|
30,122
|
31,224
|
35,283
|
33,869
|
||||||||||||||||
Average realized gold price¹
|
$
|
1,214
|
$
|
1,213
|
$
|
1,261
|
$
|
1,295
|
$
|
1,283
|
$
|
1,277
|
$
|
1,308
|
$
|
1,417
|
||||||||
Gold sales (000's)
|
$
|
34,492
|
$
|
45,980
|
$
|
46,317
|
$
|
45,030
|
$
|
38,635
|
$
|
39,867
|
$
|
46,150
|
$
|
48,005
|
||||||||
Total silver equivalent ounces sold (000's) 2
|
7,723
|
8,541
|
8,740
|
7,494
|
8,116
|
7,973
|
7,828
|
7,239
|
||||||||||||||||
Average realized silver equivalent price 1, 2
|
$
|
16.90
|
$
|
16.43
|
$
|
18.98
|
$
|
19.83
|
$
|
20.38
|
$
|
21.00
|
$
|
21.26
|
$
|
23.05
|
||||||||
Total sales (000's)
|
$
|
130,504
|
$
|
140,375
|
$
|
165,852
|
$
|
148,570
|
$
|
165,379
|
$
|
167,416
|
$
|
166,405
|
$
|
166,890
|
||||||||
Average cash cost,
silver 1, 3
|
$
|
4.14
|
$
|
4.13
|
$
|
4.16
|
$
|
4.15
|
$
|
4.12
|
$
|
4.14
|
$
|
4.13
|
$
|
4.14
|
||||||||
Average cash cost,
gold 1, 3
|
$
|
388
|
$
|
391
|
$
|
378
|
$
|
393
|
$
|
381
|
$
|
394
|
$
|
386
|
$
|
391
|
||||||||
Average cash cost, silver equivalent 1, 2, 3
|
$
|
4.46
|
$
|
4.51
|
$
|
4.59
|
$
|
4.72
|
$
|
4.57
|
$
|
4.70
|
$
|
4.73
|
$
|
4.77
|
||||||||
Net earnings (000's)
|
$
|
49,419
|
$
|
52,030
|
$
|
4,496
|
$
|
63,492
|
$
|
79,809
|
$
|
93,900
|
$
|
77,057
|
$
|
71,117
|
||||||||
Add back - impairment loss
|
-
|
-
|
68,151
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||
Adjusted net earnings 4 (000's)
|
$
|
49,419
|
$
|
52,030
|
$
|
72,647
|
$
|
63,492
|
$
|
79,809
|
$
|
93,900
|
$
|
77,057
|
$
|
71,117
|
||||||||
Earnings per share
|
||||||||||||||||||||||||
Basic
|
$
|
0.13
|
$
|
0.14
|
$
|
0.01
|
$
|
0.18
|
$
|
0.22
|
$
|
0.26
|
$
|
0.22
|
$
|
0.20
|
||||||||
Diluted
|
$
|
0.13
|
$
|
0.14
|
$
|
0.01
|
$
|
0.18
|
$
|
0.22
|
$
|
0.26
|
$
|
0.22
|
$
|
0.20
|
||||||||
Adjusted earnings per share 4
|
||||||||||||||||||||||||
Basic
|
$
|
0.13
|
$
|
0.14
|
$
|
0.20
|
$
|
0.18
|
$
|
0.22
|
$
|
0.26
|
$
|
0.22
|
$
|
0.20
|
||||||||
Diluted
|
$
|
0.13
|
$
|
0.14
|
$
|
0.20
|
$
|
0.18
|
$
|
0.22
|
$
|
0.26
|
$
|
0.22
|
$
|
0.20
|
||||||||
Cash flow from operations (000's)
|
$
|
89,131
|
$
|
94,120
|
$
|
120,379
|
$
|
102,543
|
$
|
114,832
|
$
|
124,591
|
$
|
118,672
|
$
|
125,258
|
||||||||
Cash flow from operations per share 5
|
||||||||||||||||||||||||
Basic
|
$
|
0.24
|
$
|
0.26
|
$
|
0.34
|
$
|
0.29
|
$
|
0.32
|
$
|
0.35
|
$
|
0.33
|
$
|
0.35
|
||||||||
Diluted
|
$
|
0.24
|
$
|
0.26
|
$
|
0.34
|
$
|
0.29
|
$
|
0.32
|
$
|
0.35
|
$
|
0.33
|
$
|
0.35
|
||||||||
Dividends
|
||||||||||||||||||||||||
Dividends declared (000's)
|
$
|
20,198 6
|
$
|
21,861
|
$
|
21,484
|
$
|
25,035
|
$
|
25,019 7
|
$
|
32,165
|
$
|
35,629
|
$
|
42,573
|
||||||||
Dividends declared per share
|
$
|
0.05
|
$
|
0.06
|
$
|
0.06
|
$
|
0.07
|
$
|
0.07
|
$
|
0.09
|
$
|
0.10
|
$
|
0.12
|
||||||||
Total assets (000's)
|
$
|
5,268,074
|
$
|
4,647,763
|
$
|
4,618,131
|
$
|
4,521,595
|
$
|
4,476,865
|
$
|
4,389,844
|
$
|
4,398,445
|
$
|
4,396,012
|
||||||||
Total liabilities (000's)
|
$
|
840,578
|
$
|
1,019,027
|
$
|
1,017,815
|
$
|
1,021,391
|
$
|
1,045,190
|
$
|
1,023,298
|
$
|
1,078,137
|
$
|
1,178,859
|
||||||||
Total shareholders' equity (000's)
|
$
|
4,427,496
|
$
|
3,628,736
|
$
|
3,600,316
|
$
|
3,500,204
|
$
|
3,431,675
|
$
|
3,366,546
|
$
|
3,320,308
|
$
|
3,217,153
|
1)
|
Expressed as United States dollars per ounce.
|
2)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
3)
|
Refer to discussion on non-IFRS measure (iii) on page 19 of this MD&A.
|
4)
|
Refer to discussion on non-IFRS measure (i) on page 18 of this MD&A
|
5)
|
Refer to discussion on non-IFRS measure (ii) on page 18 of this MD&A.
|
6)
|
On March 18, 2015, the Company declared dividends of $0.05 per common share for total dividends of $20.2 million, which was paid on April 14, 2015.
|
7)
|
On March 20, 2014, the Company declared dividends of $0.07 per common share for total dividends of $25.0 million, which was paid on April 15, 2014.
|
Three Months Ended March 31, 2015
|
||||||||||||||||
Ounces
Produced²
|
Ounces
Sold
|
Sales
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash
Cost
($'s Per
Ounce)3
|
Average
Depletion
($'s Per
Ounce)
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total Assets
|
||||||||
Silver
|
||||||||||||||||
San Dimas
|
1,928
|
1,901
|
$
|
32,054
|
$
|
16.86
|
$
|
4.20
|
$
|
0.88
|
$
|
22,398
|
$
|
24,069
|
$
|
151,280
|
Yauliyacu
|
576
|
320
|
5,289
|
16.53
|
4.16
|
6.43
|
1,899
|
3,958
|
185,419
|
|||||||
Peñasquito
|
1,447
|
1,573
|
27,010
|
17.17
|
4.07
|
2.85
|
16,128
|
20,607
|
446,667
|
|||||||
Barrick 4
|
640
|
648
|
10,877
|
16.79
|
3.90
|
3.24
|
6,253
|
8,350
|
605,783
|
|||||||
Other 5
|
1,751
|
1,223
|
20,782
|
16.99
|
4.26
|
3.83
|
10,886
|
15,984
|
555,058
|
|||||||
6,342
|
5,665
|
$
|
96,012
|
$
|
16.95
|
$
|
4.14
|
$
|
2.65
|
$
|
57,564
|
$
|
72,968
|
$
|
1,944,207
|
|
Gold
|
||||||||||||||||
777
|
12,081
|
6,629
|
$
|
7,929
|
$
|
1,196
|
$
|
400
|
$
|
823
|
$
|
(176)
|
$
|
5,643
|
$
|
238,459
|
Sudbury 6
|
10,112
|
8,033
|
9,682
|
1,205
|
400
|
841
|
(291)
|
6,053
|
577,103
|
|||||||
Salobo
|
27,185
|
9,794
|
12,096
|
1,235
|
400
|
420
|
4,067
|
8,178
|
2,198,143
|
|||||||
Other 7
|
5,728
|
3,943
|
4,785
|
1,213
|
311
|
184
|
2,831
|
3,450
|
160,914
|
|||||||
55,106
|
28,399
|
$
|
34,492
|
$
|
1,214
|
$
|
388
|
$
|
600
|
$
|
6,431
|
$
|
23,324
|
$
|
3,174,619
|
|
Silver equivalent 8
|
10,371
|
7,723
|
$
|
130,504
|
$
|
16.90
|
$
|
4.46
|
$
|
4.15
|
$
|
63,995
|
$
|
96,292
|
$
|
5,118,826
|
Corporate
|
||||||||||||||||
General and administrative
|
$
|
(8,170)
|
||||||||||||||
Other
|
(6,406)
|
|||||||||||||||
Total corporate
|
$
|
(14,576)
|
$
|
(7,161)
|
$
|
149,248
|
||||||||||
|
10,371
|
7,723
|
$
|
130,504
|
$
|
16.90
|
$
|
4.46
|
$
|
4.15
|
$
|
49,419
|
$
|
89,131
|
$
|
5,268,074
|
1)
|
All figures in thousands except gold ounces produced and sold and per ounce amounts.
|
2)
|
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.
|
3)
|
Refer to discussion on non-IFRS measure (iii) on page 19 of this MD&A.
|
4)
|
Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
5)
|
Comprised of the operating Los Filos, Zinkgruvan, Cozamin, Neves-Corvo, Stratoni, Minto, 777 and Constancia silver interests in addition to the non-operating Keno Hill, Rosemont, Aljustrel and Loma de La Plata silver interests.
|
6)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests in addition to the non-operating Victor gold interest.
|
7)
|
Comprised of the operating Minto and Constancia gold interests in addition to the non-operating Rosemont gold interest.
|
8)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
Three Months Ended March 31, 2014
|
||||||||||||||||
Ounces
Produced²
|
Ounces
Sold
|
Sales
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash
Cost
($'s Per
Ounce)3
|
Average
Depletion
($'s Per
Ounce)
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total Assets
|
||||||||
Silver
|
||||||||||||||||
San Dimas 4
|
1,608
|
1,529
|
$
|
31,608
|
$
|
20.67
|
$
|
4.17
|
$
|
0.81
|
$
|
23,986
|
$
|
25,232
|
$
|
156,246
|
Yauliyacu
|
718
|
1,097
|
22,166
|
20.21
|
4.12
|
5.92
|
11,147
|
17,646
|
200,778
|
|||||||
Peñasquito
|
2,052
|
1,840
|
37,562
|
20.42
|
4.05
|
2.98
|
24,632
|
30,111
|
466,810
|
|||||||
Barrick 5
|
301
|
361
|
7,407
|
20.53
|
3.90
|
3.26
|
4,823
|
6,765
|
602,315
|
|||||||
Other 6
|
2,185
|
1,398
|
28,001
|
20.02
|
4.19
|
3.99
|
16,551
|
23,288
|
670,088
|
|||||||
|
6,864
|
6,225
|
$
|
126,744
|
$
|
20.36
|
$
|
4.12
|
$
|
3.21
|
$
|
81,139
|
$
|
103,042
|
$
|
2,096,237
|
Gold
|
||||||||||||||||
777
|
12,785
|
6,294
|
$
|
8,039
|
$
|
1,277
|
$
|
400
|
$
|
823
|
$
|
344
|
$
|
5,522
|
$
|
274,848
|
Sudbury 7
|
6,426
|
6,878
|
8,812
|
1,281
|
400
|
841
|
273
|
6,060
|
603,666
|
|||||||
Salobo
|
8,903
|
10,560
|
13,479
|
1,276
|
400
|
462
|
4,378
|
9,255
|
1,317,606
|
|||||||
Other 8
|
5,749
|
6,390
|
8,305
|
1,300
|
309
|
124
|
5,536
|
5,886
|
27,691
|
|||||||
|
33,863
|
30,122
|
$
|
38,635
|
$
|
1,283
|
$
|
381
|
$
|
552
|
$
|
10,531
|
$
|
26,723
|
$
|
2,223,811
|
Silver equivalent 9
|
8,985
|
8,116
|
$
|
165,379
|
$
|
20.38
|
$
|
4.57
|
$
|
4.51
|
$
|
91,670
|
$
|
129,765
|
$
|
4,320,048
|
Corporate
|
||||||||||||||||
General and administrative
|
$
|
(10,110)
|
||||||||||||||
Other
|
(1,751)
|
|||||||||||||||
Total corporate
|
$
|
(11,861)
|
$
|
(14,933)
|
$
|
156,817
|
||||||||||
|
8,985
|
8,116
|
$
|
165,379
|
$
|
20.38
|
$
|
4.57
|
$
|
4.51
|
$
|
79,809
|
$
|
114,832
|
$
|
4,476,865
|
1)
|
All figures in thousands except gold ounces produced and sold and per ounce amounts.
|
2)
|
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.
|
3)
|
Refer to discussion on non-IFRS measure (iii) on page 19 of this MD&A.
|
4)
|
Results for San Dimas include 375,000 ounces received from Goldcorp in connection with Goldcorp’s four year commitment, commencing August 6, 2010, 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 operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
6)
|
Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777 and Aljustrel silver interests, the non-operating Rosemont, Loma de La Plata and Constancia silver interests; and the previously owned Campo Morado and Mineral Park silver interests.
|
7)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Totten and Creighton gold interests in addition to the non-operating Victor gold interest.
|
8)
|
Comprised of the operating Minto gold interest in addition to the non-operating Rosemont and Constancia gold interests.
|
9)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
•
|
1.5 million silver equivalent ounce (264%) increase related to gold production at the Salobo mine (18,300 gold ounces), primarily due to higher throughput as a result of the continuing ramp up of the first 12 Mtpa line, the commissioning of the second 12 Mtpa line which commenced late in the second quarter of 2014, and the acquisition of an additional 25% gold interest in the Salobo mine as explained in the Silver and Gold interest section of this MD&A, partially offset by lower grades;
|
•
|
339,000 ounce (112%) increase related to the Barrick mines, due primarily to higher grades at Veladero;
|
•
|
321,000 silver equivalent ounce (80%) increase related to gold production at the Sudbury mines (3,700 gold ounces), primarily due to higher grades; and
|
•
|
320,000 ounce (20%) increase related to the San Dimas mine, due to a combination of (i) the annual sharing threshold increasing from 3.5 million ounces to 6.0 million ounces per year, effective August 6, 2014; and (ii) a 30% increase in mill throughput, partially offset by the cessation of Goldcorp's 4 year obligation to deliver 1.5 million ounces of silver to the Company on August 6, 2014; partially offset by
|
•
|
605,000 ounce (29%) decrease related to the Peñasquito mine, due primarily to the mining of lower grade material; and
|
•
|
434,000 ounce (20%) decrease related to the Other mines, due primarily to the disposal of the Campo Morado silver interest, the cessation of silver deliveries from the Mineral Park mine and lower grades at the Cozamin mine;
|
•
|
$4.9 million decrease related to a 6% decrease in payable silver ounces produced; and
|
•
|
$6.9 million increase related to a 62% increase in payable gold ounces produced; and
|
•
|
$1.3 million increase related to the composition of mines from which silver is produced; and
|
•
|
$0.6 million decrease related to the composition of mines from which gold is produced; and
|
•
|
$8.2 million decrease as a result of the timing of shipments of stockpiled concentrate and doré, primarily attributable to the following factors:
|
i.
|
$6.7 million decrease relating to the Yauliyacu mine which continues to have an inconsistent delivery schedule as a result of the shut-down of the La Oroya smelter in Peru; and
|
ii.
|
$7.5 million decrease relating to the Salobo mine; partially offset by
|
iii.
|
$4.1 million increase relating to the Peñasquito mine; and
|
iv.
|
$2.9 million increase relating to the Other mines, primarily related to the Zinkgruvan mine; and
|
•
|
$22.2 million decrease due to a reduction in the operating margin per ounce, due primarily to a 17% decrease in the average realized selling price per silver equivalent ounce sold; and
|
•
|
$2.7 million decrease as a result of an increase in corporate costs as explained in the Corporate Costs section of this MD&A ($7.8 million increase from a cash flow perspective).
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
General and administrative
|
$ 8,170
|
$ 10,110
|
Foreign exchange gain
|
(373)
|
(281)
|
Interest expense
|
1,500
|
1,108
|
Other expense
|
2,297
|
910
|
Income tax expense
|
2,982
|
14
|
Total corporate costs
|
$ 14,576
|
$ 11,861
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
Salaries and benefits
|
||
Salaries and benefits, excluding PSUs
|
$ 2,968
|
$ 3,424
|
PSUs
|
886
|
1,045
|
Total salaries and benefits
|
$ 3,854
|
$ 4,469
|
Depreciation
|
96
|
67
|
Charitable donations
|
646
|
646
|
Other
|
1,652
|
2,746
|
Cash settled general and administrative
|
$ 6,248
|
$ 7,928
|
Equity settled stock based compensation (a non-cash expense)
|
1,922
|
2,182
|
Total general and administrative |
$ 8,170
|
$ 10,110
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
Dividend income
|
$ (57)
|
$ (57)
|
Interest income
|
(75)
|
(28)
|
Stand-by fees
|
787
|
715
|
Amortization of credit facility origination fees - undrawn facilities
|
248
|
251
|
Write off of debt issue costs upon the repayment of the NRT Loan
|
1,315
|
-
|
Other
|
79
|
29
|
Total other expense
|
$ 2,297
|
$ 910
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
Current income tax expense related to foreign jurisdictions
|
$ 46
|
$ 54
|
Deferred income tax expense (recovery) related to:
|
||
Origination and reversal of temporary differences
|
$ (317)
|
$ (40)
|
Write down of previously recognized temporary differences
|
3,253
|
-
|
Total deferred income tax expense (recovery)
|
$ 2,936
|
$ (40)
|
Total income tax expense
|
$ 2,982
|
$ 14
|
i.
|
Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of the non-cash impairment charges. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company’s performance.
|
ii.
|
Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
|
Three Months Ended
March 31
|
||||||
(in thousands, except for per share amounts)
|
2015
|
2014
|
||||
Cash generated by operating activities
|
$
|
89,131
|
$
|
114,832
|
||
Divided by:
|
||||||
Basic weighted average number of shares outstanding
|
370,844
|
357,398
|
||||
Diluted weighted average number of shares outstanding
|
371,115
|
357,940
|
||||
Equals:
|
||||||
Operating cash flow per share - basic
|
$
|
0.24
|
$
|
0.32
|
||
Operating cash flow per share - diluted
|
$
|
0.24
|
$
|
0.32
|
iii.
|
Average cash cost of silver and gold on a per ounce basis is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.
|
Three Months Ended
March 31
|
||||||
(in thousands, except for gold ounces sold and per ounce amounts)
|
2015
|
2014
|
||||
Cost of sales
|
$
|
66,509
|
$
|
73,709
|
||
Less: depletion
|
(32,045)
|
(36,621)
|
||||
Cash cost of sales
|
$
|
34,464
|
$
|
37,088
|
||
Cash cost of sales is comprised of:
|
||||||
Total cash cost of silver sold
|
$
|
23,454
|
$
|
25,620
|
||
Total cash cost of gold sold
|
11,010
|
11,468
|
||||
Total cash cost of sales
|
$
|
34,464
|
$
|
37,088
|
||
Divided by:
|
||||||
Total silver ounces sold
|
5,665
|
6,225
|
||||
Total gold ounces sold
|
28,399
|
30,122
|
||||
Total silver equivalent ounces sold 1
|
7,723
|
8,116
|
||||
Equals:
|
||||||
Average cash cost of silver (per ounce)
|
$
|
4.14
|
$
|
4.12
|
||
Average cash cost of gold (per ounce)
|
$
|
388
|
$
|
381
|
||
Average cash cost (per silver equivalent ounce 1)
|
$
|
4.46
|
$
|
4.57
|
1)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
iv.
|
Cash operating margin is calculated by subtracting the average cash cost of silver and gold on a per ounce basis from the average realized selling price of silver and gold on a per ounce basis. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metals mining industry who present results on a similar basis.
|
Three Months Ended
March 31
|
||||||
(in thousands, except for per ounce amounts)
|
2015
|
2014
|
||||
Average realized selling price of silver and gold
|
||||||
Sales
|
$
|
130,504
|
$
|
165,379
|
||
Divided by - total silver equivalent ounces sold 1
|
7,723
|
8,116
|
||||
Equals - average realized price ($'s per silver equivalent ounce 1)
|
$
|
16.90
|
$
|
20.38
|
||
Less - average cash cost ($'s per silver equivalent ounce 1, 2)
|
(4.46)
|
(4.57)
|
||||
Cash operating margin per silver equivalent ounce 1
|
$
|
12.44
|
$
|
15.81
|
1)
|
Gold ounces produced and sold are converted to a silver equivalent basis based on either (i) 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; or (ii) the ratio of the price of silver to the price of gold on the date of sale as per the London Bullion Metal Exchange for the assets which produce only gold.
|
2)
|
Refer to discussion on non-IFRS measure (iii) on page 19 of this MD&A.
|
1
|
Statements made in this section contain forward-looking information with respect to funding outstanding commitments and continuing to acquire accretive precious metal stream interests and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
|
Silver and Gold Interests
|
Attributable Payable
Production to be
Purchased
|
Per Ounce Cash
Payment 1, 2
|
Term of
Agreement
|
Date of
Original
Contract
|
||||
Silver
|
Gold
|
Silver
|
Gold
|
|||||
San Dimas
|
100% 3
|
0%
|
$
|
4.20
|
n/a
|
Life of Mine
|
15-Oct-04
|
|
Yauliyacu
|
100% 4
|
0%
|
$
|
4.20
|
n/a
|
20 years
|
23-Mar-06
|
|
Peñasquito
|
25%
|
0%
|
$
|
4.07
|
n/a
|
Life of Mine
|
24-Jul-07
|
|
777
|
100%
|
100%/50% 5
|
$
|
5.90⁶
|
$
|
400⁶
|
Life of Mine
|
8-Aug-12
|
Salobo
|
0%
|
50%
|
n/a
|
$
|
400
|
Life of Mine
|
28-Feb-13
|
|
Sudbury
|
0%
|
70%
|
n/a
|
$
|
400
|
20 years
|
28-Feb-13
|
|
Barrick
|
||||||||
Pascua-Lama
|
25%
|
0%
|
$
|
3.90
|
n/a
|
Life of Mine
|
8-Sep-09
|
|
Lagunas Norte
|
100%
|
0%
|
$
|
3.90
|
n/a
|
8.5 years
|
8-Sep-09
|
|
Pierina
|
100%
|
0%
|
$
|
3.90
|
n/a
|
8.5 years 7
|
8-Sep-09
|
|
Veladero
|
100% 8
|
0%
|
$
|
3.90
|
n/a
|
8.5 years
|
8-Sep-09
|
|
Other
|
||||||||
Los Filos
|
100%
|
0%
|
$
|
4.24
|
n/a
|
25 years
|
15-Oct-04
|
|
Zinkgruvan
|
100%
|
0%
|
$
|
4.25
|
n/a
|
Life of Mine
|
8-Dec-04
|
|
Stratoni
|
100%
|
0%
|
$
|
4.14
|
n/a
|
Life of Mine
|
23-Apr-07
|
|
Minto
|
100%
|
100% 9
|
$
|
4.06
|
$
|
312
|
Life of Mine
|
20-Nov-08
|
Cozamin
|
100%
|
0%
|
$
|
4.24
|
n/a
|
10 years
|
4-Apr-07
|
|
Neves-Corvo
|
100%
|
0%
|
$
|
4.10
|
n/a
|
50 years
|
5-Jun-07
|
|
Aljustrel
|
100% 10
|
0%
|
$
|
4.06
|
n/a
|
50 years
|
5-Jun-07
|
|
Keno Hill
|
25%
|
0%
|
$
|
3.90¹¹
|
n/a
|
Life of Mine
|
2-Oct-08
|
|
Rosemont
|
100%
|
100%
|
$
|
3.90
|
$
|
450
|
Life of Mine
|
10-Feb-10
|
Loma de La Plata
|
12.5%
|
0%
|
$
|
4.00
|
n/a
|
Life of Mine
|
n/a 12
|
|
Constancia
|
100%
|
50% 13
|
$
|
5.90⁶
|
$
|
400⁶
|
Life of Mine
|
8-Aug-12
|
Early Deposit
|
||||||||
Toroparu
|
50% 14
|
10% 14
|
$
|
3.90
|
$
|
400
|
Life of Mine
|
11-Nov-13
|
1)
|
Subject to an annual inflationary adjustment with the exception of Loma de La Plata and Sudbury.
|
2)
|
Should the prevailing market price for silver or gold be lower than this amount, the per ounce cash payment will be reduced to the prevailing market price, with the exception of Yauliyacu.
|
3)
|
Silver Wheaton is committed to purchase from Primero a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess.
|
4)
|
To a maximum of 4.75 million ounces per annum. In the event that silver sold and delivered to Silver Wheaton in any year totals less than 4.75 million ounces, the amount sold and delivered to Silver Wheaton in subsequent years will be increased to make up for any cumulative shortfall, to the extent production permits. The cumulative shortfall as at March 23, 2015, representing the nine year anniversary, was 19.7 million ounces.
|
5)
|
The Company’s share of gold production at 777 will remain at 100% until the later of the end of 2016 or the satisfaction of a completion test relating to Hudbay’s Constancia project, after which it will be reduced to 50% for the remainder of the mine life.
|
6)
|
Subject to an increase to $9.90 per ounce of silver and $550 per ounce of gold after the initial 40 year term.
|
7)
|
As per Barrick’s disclosure, closure activities were initiated at Pierina in August 2013.
|
8)
|
Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore processed at Veladero during the period.
|
9)
|
The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
|
10)
|
Silver Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
11)
|
In June 2014, the Company amended its silver purchase agreement with Alexco to increase the production payment to be a function of the silver price at the time of delivery. In addition, the area of interest was expanded to include properties currently owned by Alexco and properties acquired by Alexco in the future which fall within a one kilometer radius of existing Alexco holdings in the Keno Hill Silver District. The amended agreement is conditional on Alexco paying Silver Wheaton $20 million by December 31, 2015.
|
12)
|
Terms of the agreement not yet finalized.
|
13)
|
Gold recoveries will be set at 55% for the Constancia deposit and 70% for the Pampacancha deposit until 265,000 ounces of gold have been delivered to the Company.
|
14)
|
During the 60 day period following the delivery of a feasibility study, environmental study and impact assessment, and other related documents (collectively, the “Feasibility Documentation”), or after December 31, 2016 if the Feasibility Documentation has not been delivered to Silver Wheaton by such date, Silver Wheaton may elect not to proceed with the precious metal purchase agreement, at which time Silver Wheaton will be entitled to a return of the amounts advanced less $2.0 million which is non-refundable or, at Sandspring’s option, the gold stream percentage will be reduced from 10% to 0.909% and the silver stream percentage will be reduced from 50% to nil. Silver Wheaton may also elect to terminate the Early Deposit Agreement upon the occurrence of certain events prior to the payment of any initial construction payment and elect to reduce the stream percentages or obtain a return of the amounts advanced less $2.0 million.
|
1
|
Statements made in this section contain forward-looking information and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
|
Obligations With Scheduled Payment Dates
|
Other
Commitments
|
|||||||||||||
(in thousands)
|
2015
|
2016 - 2018
|
2019 - 2020
|
After 2020
|
Sub-Total
|
Total
|
||||||||
Bank debt 1
|
$
|
-
|
$
|
-
|
$
|
800,000
|
$
|
-
|
$
|
800,000
|
$
|
-
|
$
|
800,000
|
Interest 2
|
9,453
|
63,837
|
31,345
|
-
|
104,635
|
-
|
104,635
|
|||||||
Silver and gold interest payments 3
|
||||||||||||||
Rosemont 4
|
-
|
-
|
-
|
-
|
-
|
231,150
|
231,150
|
|||||||
Loma de La Plata
|
-
|
-
|
-
|
-
|
-
|
32,400
|
32,400
|
|||||||
Toroparu
|
2,000
|
-
|
-
|
-
|
2,000
|
138,000
|
140,000
|
|||||||
Operating leases
|
1,007
|
4,056
|
2,352
|
3,880
|
11,295
|
-
|
11,295
|
|||||||
Other
|
2,641
|
-
|
-
|
-
|
2,641
|
-
|
2,641
|
|||||||
Total contractual obligations
|
$
|
15,101
|
$
|
67,893
|
$
|
833,697
|
$
|
3,880
|
$
|
920,571
|
$
|
401,550
|
$
|
1,322,121
|
1)
|
At March 31, 2015, the Company had $800 million outstanding on the Revolving Facility.
|
2)
|
As the applicable interest rates are floating in nature, the interest charges are estimated based on market-based forward interest rate curves at the end of the reporting period.
|
3)
|
Does not reflect the contingent payment due related to the Salobo gold purchase agreement (see the Salobo section, below).
|
4)
|
Includes contingent transaction costs of $1.1 million.
|
·
|
IFRS 15 – Revenue from Contracts with Customers: In May 2014 the IASB and the Financial Accounting Standards Board (“FASB”) completed its joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for IFRS and US GAAP. IFRS 15 establishes principles to address the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company is currently evaluating the impact this standard is expected to have on its consolidated financial statements.
|
1
|
The assessment by management of the expected impact of the CRA Audit on the Company is “forward-looking information”. Statements in respect of the impact of the CRA Audit are based on the expectation that the Company will be successful in challenging any assessment by CRA. Statements in respect of the CRA Audit are subject to known and unknown risks including that the Company’s interpretation of, or compliance with, tax laws, is found to be incorrect and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
|
·
|
IFRS 9 (2014) – Financial Instruments (amended 2014): In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments (“IFRS 9”). The Company adopted IFRS 9 (2009) – Financial Instruments effective January 1, 2010. The Company is currently evaluating the impact this amended standard is expected to have on its consolidated financial statements.
|
·
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
·
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company’s management and directors; and,
|
·
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the annual financial statements or interim financial statements.
|
Proven
|
Probable
|
Proven & Probable
|
||||||||
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Process Recovery % (7)
|
|
Mt
|
g/t
|
Moz
|
Mt
|
g/t
|
Moz
|
Mt
|
g/t
|
Moz
|
||
Silver
|
||||||||||
Peñasquito (25%) (14)
|
||||||||||
Mill
|
84.1
|
33.3
|
90.0
|
52.7
|
25.0
|
42.4
|
136.7
|
30.1
|
132.4
|
53-65%
|
Heap Leach
|
10.9
|
31.7
|
11.1
|
11.5
|
25.0
|
9.2
|
22.4
|
28.3
|
20.4
|
22-28%
|
San Dimas (10, 14)
|
1.2
|
411.7
|
16.3
|
3.2
|
329.6
|
34.2
|
4.5
|
352.3
|
50.5
|
94%
|
Pascua-Lama (25%) (14)
|
8.0
|
69.8
|
17.9
|
73.2
|
64.1
|
150.8
|
81.2
|
64.7
|
168.7
|
82%
|
Lagunas Norte (11)
|
12.4
|
4.5
|
1.8
|
52.9
|
4.5
|
7.7
|
65.3
|
4.5
|
9.5
|
19%
|
Veladero (11)
|
5.5
|
14.8
|
2.6
|
90.5
|
14.8
|
43.2
|
96.0
|
14.8
|
45.8
|
6%
|
Yauliyacu (11, 12)
|
0.8
|
123.5
|
3.1
|
3.4
|
109.8
|
11.9
|
4.1
|
112.4
|
15.0
|
85%
|
777 (13)
|
3.7
|
27.4
|
3.3
|
3.9
|
24.1
|
3.1
|
7.7
|
25.7
|
6.3
|
64%
|
Neves-Corvo
|
||||||||||
Copper
|
4.9
|
38.8
|
6.1
|
20.5
|
36.1
|
23.8
|
25.4
|
36.6
|
29.9
|
35%
|
Zinc
|
10.4
|
73.1
|
24.4
|
10.2
|
66.9
|
22.0
|
20.6
|
70.0
|
46.4
|
20%
|
Rosemont (15)
|
279.5
|
4.1
|
37.0
|
325.8
|
4.1
|
43.1
|
605.3
|
4.1
|
80.1
|
76%
|
Constancia
|
506.0
|
3.1
|
50.3
|
114.0
|
2.9
|
10.8
|
620.0
|
3.1
|
61.1
|
71%
|
Zinkgruvan
|
||||||||||
Zinc
|
7.4
|
87.0
|
20.6
|
4.2
|
51.0
|
6.9
|
11.6
|
73.9
|
27.5
|
87%
|
Copper
|
3.3
|
35.0
|
3.7
|
0.1
|
35.0
|
0.1
|
3.4
|
35.0
|
3.8
|
78%
|
Stratoni
|
0.5
|
174.0
|
2.9
|
0.3
|
182.0
|
1.5
|
0.8
|
176.7
|
4.5
|
84%
|
Minto
|
2.9
|
6.4
|
0.6
|
4.8
|
5.8
|
0.9
|
7.7
|
6.0
|
1.5
|
78%
|
Cozamin (11)
|
||||||||||
Copper
|
-
|
-
|
-
|
2.8
|
41.9
|
3.8
|
2.8
|
41.9
|
3.8
|
72%
|
Los Filos
|
48.8
|
5.7
|
8.9
|
198.4
|
5.0
|
32.2
|
247.2
|
5.2
|
41.1
|
5%
|
Metates Royalty (20)
|
4.1
|
18.0
|
2.3
|
13.2
|
13.1
|
5.5
|
17.2
|
14.2
|
7.9
|
76%
|
Total Silver
|
303.1
|
453.1
|
756.1
|
|||||||
Gold
|
||||||||||
Salobo (50%) (16)
|
331.7
|
0.39
|
4.13
|
257.9
|
0.31
|
2.57
|
589.6
|
0.35
|
6.70
|
66%
|
Sudbury (70%) (11)
|
-
|
-
|
-
|
54.3
|
0.39
|
0.68
|
54.3
|
0.39
|
0.68
|
81%
|
777 (13)
|
2.6
|
1.78
|
0.15
|
2.8
|
1.78
|
0.16
|
5.4
|
1.78
|
0.31
|
73%
|
Constancia (50%)
|
253.0
|
0.05
|
0.42
|
57.0
|
0.07
|
0.14
|
310.0
|
0.06
|
0.56
|
61%
|
Minto
|
2.9
|
0.93
|
0.09
|
4.8
|
0.63
|
0.10
|
7.7
|
0.74
|
0.18
|
74%
|
Toroparu (10%) (17)
|
3.0
|
1.10
|
0.10
|
9.7
|
0.98
|
0.31
|
12.7
|
1.01
|
0.41
|
89%
|
Metates Royalty (20)
|
4.1
|
0.68
|
0.09
|
13.2
|
0.44
|
0.19
|
17.2
|
0.50
|
0.28
|
89%
|
Total Gold
|
4.98
|
4.14
|
9.11
|
Measured
|
Indicated
|
Measured & Indicated
|
|||||||
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
|
Mt
|
g/t
|
Moz
|
Mt
|
g/t
|
Moz
|
Mt
|
g/t
|
Moz
|
|
Silver
|
|||||||||
Peñasquito (25%) (14)
|
|||||||||
Mill
|
34.4
|
26.1
|
28.9
|
91.7
|
21.5
|
63.5
|
126.2
|
22.8
|
92.4
|
Heap Leach
|
5.1
|
19.3
|
3.1
|
24.1
|
16.7
|
13.0
|
29.2
|
17.2
|
16.1
|
San Dimas (10, 14)
|
0.3
|
154.3
|
1.5
|
0.9
|
161.1
|
4.9
|
1.2
|
159.5
|
6.4
|
Pascua-Lama (25%) (14)
|
3.7
|
26.4
|
3.1
|
35.7
|
22.3
|
25.5
|
39.4
|
22.7
|
28.7
|
Yauliyacu (11, 12)
|
1.0
|
127.3
|
4.0
|
6.0
|
216.6
|
41.5
|
6.9
|
204.2
|
45.5
|
777 (13)
|
-
|
-
|
-
|
0.7
|
26.1
|
0.6
|
0.7
|
26.1
|
0.6
|
Neves-Corvo
|
|||||||||
Copper
|
5.8
|
48.5
|
9.0
|
25.7
|
50.8
|
42.0
|
31.5
|
50.3
|
51.0
|
Zinc
|
14.1
|
59.6
|
27.0
|
60.2
|
55.7
|
107.8
|
74.3
|
56.4
|
134.8
|
Rosemont (15)
|
38.5
|
3.0
|
3.7
|
197.7
|
2.7
|
17.1
|
236.2
|
2.7
|
20.8
|
Constancia
|
73.0
|
2.4
|
5.6
|
299.0
|
2.0
|
19.4
|
372.0
|
2.1
|
25.0
|
Zinkgruvan
|
|||||||||
Zinc
|
2.2
|
66.8
|
4.6
|
4.7
|
107.1
|
16.3
|
6.9
|
94.5
|
20.9
|
Copper
|
1.6
|
20.0
|
1.0
|
0.4
|
39.1
|
0.5
|
2.0
|
23.9
|
1.5
|
Aljustrel (19)
|
|||||||||
Zinc
|
1.3
|
65.6
|
2.7
|
20.5
|
60.3
|
39.7
|
21.8
|
60.7
|
42.4
|
Stratoni
|
0.2
|
200.4
|
1.5
|
0.2
|
213.3
|
1.4
|
0.4
|
206.4
|
2.9
|
Minto
|
8.0
|
3.3
|
0.8
|
32.3
|
3.4
|
3.5
|
40.3
|
3.4
|
4.4
|
Keno Hill (25%)
|
|||||||||
Underground
|
-
|
-
|
-
|
0.8
|
467.2
|
11.5
|
0.8
|
467.2
|
11.5
|
Elsa Tailings
|
-
|
-
|
-
|
0.6
|
119.0
|
2.4
|
0.6
|
119.0
|
2.4
|
Los Filos
|
11.4
|
11.0
|
4.0
|
112.3
|
7.4
|
26.9
|
123.7
|
7.8
|
30.9
|
Loma de La Plata (12.5%)
|
-
|
-
|
-
|
3.6
|
169.0
|
19.8
|
3.6
|
169.0
|
19.8
|
Toroparu (50%) (17)
|
22.2
|
1.2
|
0.8
|
97.9
|
0.7
|
2.3
|
120.1
|
0.8
|
3.1
|
Total Silver
|
101.5
|
459.4
|
561.0
|
||||||
Gold
|
|||||||||
Salobo (50%) (16)
|
24.6
|
0.47
|
0.37
|
97.7
|
0.37
|
1.16
|
122.2
|
0.39
|
1.53
|
Sudbury (70%) (11)
|
-
|
-
|
-
|
28.9
|
0.34
|
0.32
|
28.9
|
0.34
|
0.32
|
777 (13)
|
-
|
-
|
-
|
0.4
|
1.81
|
0.02
|
0.4
|
1.81
|
0.02
|
Constancia (50%)
|
36.5
|
0.05
|
0.06
|
149.5
|
0.04
|
0.18
|
186.0
|
0.04
|
0.23
|
Minto
|
8.0
|
0.39
|
0.10
|
32.3
|
0.32
|
0.34
|
40.3
|
0.34
|
0.44
|
Toroparu (10%) (17)
|
0.9
|
0.87
|
0.03
|
7.9
|
0.83
|
0.21
|
8.8
|
0.84
|
0.24
|
Total Gold
|
0.56
|
2.23
|
2.78
|
Inferred
|
|||
Tonnage
|
Grade
|
Contained
|
|
Mt
|
g/t
|
Moz
|
|
Silver
|
|||
Peñasquito (25%) (14)
|
|||
Mill
|
4.4
|
19.5
|
2.7
|
Heap Leach
|
6.1
|
13.7
|
2.7
|
San Dimas (10, 14)
|
6.5
|
292.7
|
61.3
|
Pascua-Lama (25%) (14)
|
4.9
|
20.1
|
3.2
|
Yauliyacu (11, 12)
|
5.0
|
178.7
|
28.7
|
777 (13)
|
0.7
|
32.9
|
0.8
|
Neves-Corvo
|
|||
Copper
|
25.1
|
43.5
|
35.1
|
Zinc
|
21.4
|
48.9
|
33.6
|
Rosemont (15)
|
104.5
|
3.3
|
11.1
|
Constancia
|
200.0
|
1.9
|
12.0
|
Zinkgruvan
|
|||
Zinc
|
6.1
|
75.0
|
14.7
|
Copper
|
0.5
|
34.0
|
0.6
|
Aljustrel (19)
|
|||
Zinc
|
8.7
|
50.4
|
14.0
|
Stratoni
|
0.5
|
169.0
|
2.7
|
Minto
|
16.2
|
3.2
|
1.6
|
Keno Hill (25%)
|
|||
Underground
|
0.3
|
363.4
|
3.0
|
Los Filos
|
175.9
|
6.3
|
35.7
|
Loma de La Plata (12.5%)
|
0.2
|
76.0
|
0.4
|
Toroparu (50%) (17)
|
64.8
|
0.1
|
0.2
|
Metates Royalty (20)
|
1.0
|
9.7
|
0.3
|
Total Silver
|
264.3
|
||
Gold
|
|||
Salobo (50%) (16)
|
74.0
|
0.31
|
0.74
|
Sudbury (70%) (11)
|
5.5
|
0.67
|
0.12
|
777 (13)
|
0.4
|
1.79
|
0.02
|
Constancia (50%)
|
100.0
|
0.03
|
0.10
|
Minto
|
16.2
|
0.30
|
0.16
|
Toroparu (10%) (17)
|
13.0
|
0.74
|
0.31
|
Metates Royalty (20)
|
1.0
|
0.38
|
0.01
|
Total Gold
|
1.46
|
1.
|
All Mineral Reserves and Mineral Resources have been calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum - CIM Standards on Mineral Resources and Mineral Reserves and National Instrument 43-101 – Standards for Disclosure for Mineral Projects (“NI 43-101), or the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.
|
2.
|
Mineral Reserves and Mineral Resources are reported above in millions of metric tonnes (“Mt”), grams per metric tonne (“g/t”) and millions of ounces (“Moz”).
|
3.
|
Individual qualified persons (“QPs”), as defined by the NI 43-101, for the technical information contained in this document (including the Mineral Reserve and Mineral Resource estimates) for the following operations are as follows:
|
a.
|
Salobo mine – Christopher Jacobs, CEng MIMMM (Vice President and Mining Economist), James Turner, CEng MIMMM (Senior Mineral Process Engineer), Barnard Foo, P. Eng., M. Eng, MBA (Senior Mining Engineer) and Jason Ché Osmond, FGS, C.Geol, EurGeol (Senior Geologist) all of whom are employees of Micon International Ltd.
|
b.
|
All other operations and development projects: the Company’s QPs Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); Samuel Mah, M.A.Sc., P.Eng. (Senior Director, Project Evaluations), both employees of the Company (the “Company’s QPs”).
|
4.
|
The Mineral Resources reported in the above tables are exclusive of Mineral Reserves. The San Dimas mine, Minto mine, Neves-Corvo mine, Zinkgruvan mine, Stratoni mine and Toroparu project report (gold only) Mineral Resources inclusive of Mineral Reserves. The Company’s QPs have made the exclusive Mineral Resource estimates for these mines based on average mine recoveries and dilution.
|
5.
|
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
|
6.
|
Other than as detailed below, Mineral Reserves and Mineral Resources are reported as of December 31, 2014 based on information available to the Company as of the date of this document, and therefore will not reflect updates, if any, after such date.
|
a.
|
Mineral Resources and Mineral Reserves for the Pascua-Lama project are reported as of December 31, 2013.
|
b.
|
Mineral Resources and Mineral Reserves for gold at the Toroparu project are reported as of March 31, 2013 and Mineral Resources for silver are reported as of September 1, 2014.
|
c.
|
Mineral Resources and Mineral Reserves for the Neves-Corvo and Zinkgruvan mines are reported as of June 30, 2014.
|
d.
|
Mineral Resources and Mineral Reserves for the Rosemont project are reported as of August 28, 2012.
|
e.
|
Mineral Resources for the Constancia project (including the Pampacancha deposit) are reported as of September 30, 2013 and Mineral Reserves as of December 31, 2013.
|
f.
|
Mineral Resources for Aljustrel’s Feitais and Moinho mines are reported as of November 30, 2010. Mineral Resources for the Estaçao project are reported as of December 31, 2007.
|
g.
|
Mineral Resources for Keno Hill’s Elsa Tailings project are reported as of April 22, 2010, Lucky Queen project as of July 27, 2011, Onek project as of October 15, 2014, Flame and Moth and Bermingham projects as of April 28, 2015, Bellekeno mine Inferred Mineral Resources as of September 30, 2012 and Bellekeno mine Indicated Mineral Resources as of September 30, 2013.
|
h.
|
Mineral Resources for the Loma de La Plata project are reported as of May 20, 2009.
|
i.
|
Mineral Resources for Metates are reported as of February 16, 2012 and Mineral Reserves as of March 18, 2013.
|
7.
|
Process recoveries are the average percentage of silver or gold in a saleable product (doré or concentrate) recovered from mined ore at the applicable site process plants as reported by the operators.
|
8.
|
Mineral Reserves are estimated using appropriate process recovery rates and the following commodity prices:
|
a.
|
Peñasquito mine - $1,300 per ounce gold, $22.00 per ounce silver, $0.90 per pound lead and $0.90 per pound zinc.
|
b.
|
San Dimas mine – 2.94 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $18.00 per ounce silver.
|
c.
|
Pascua-Lama project - $1,100 per ounce gold, $21.00 per ounce silver and $3.00 per pound copper.
|
d.
|
Lagunas Norte and Veladero mines - $1,100 per ounce gold and $17.00 per ounce silver.
|
e.
|
Yauliyacu mine - $20.00 per ounce silver, $3.29 per pound copper, $1.02 per pound lead and zinc.
|
f.
|
777 mine – $1,260 per ounce gold, $21.00 per ounce silver, $3.15 per pound copper and $1.07 per pound zinc.
|
g.
|
Neves-Corvo mine – 1.6% copper cut-off for the copper Reserve and 4.8% zinc equivalent cut-off for all the zinc Reserves, both assuming $2.50 per pound copper, $1.00 per pound lead and zinc
|
h.
|
Rosemont project - $4.90 per ton NSR cut-off assuming $20.00 per ounce silver, $2.50 per pound copper and $15.00 per pound molybdenum.
|
i.
|
Constancia project - $1,250 per ounce of gold, $25.00 per ounce silver, $3.00 per pound copper and $14.00 per pound molybdenum.
|
j.
|
Zinkgruvan mine – 3.98% zinc equivalent cut-off for the zinc Reserve and 1.5% copper cut-off for the copper Reserve, both assuming $2.50 per pound copper and $1.00 per pound lead and zinc.
|
k.
|
Stratoni mine – 18.02% zinc equivalent cut-off assuming $16.50 per ounce silver, $3.00 per pound copper, $0.95 per pound lead and zinc.
|
l.
|
Minto mine – 0.5% copper cut-off for Open Pit and $64.40 per tonne NSR cut-off for Underground assuming $300 per ounce gold, $3.90 per ounce silver and $2.50 per pound copper.
|
m.
|
Cozamin mine - $42.50 per tonne NSR cut-off assuming $20.00 per ounce silver, $2.50 per pound copper, $0.85 per pound lead and $0.80 per pound zinc.
|
n.
|
Los Filos mine - $1,300 per ounce gold and $22.00 per ounce silver.
|
o.
|
Salobo mine – 0.253% copper equivalent cut-off assuming $1,250 per ounce gold and $3.45 per pound copper.
|
p.
|
Sudbury mines - $1,250 per ounce gold, $22.00 per ounce silver, $10.43 per pound nickel, $3.45 per pound copper, $1,800 per ounce platinum, $1,000 per ounce palladium and $13.00 per pound cobalt.
|
q.
|
Toroparu project – 0.38 grams per tonne gold cut-off assuming $1,070 per ounce gold for fresh rock and 0.35 grams per tonne gold cut-off assuming $970 per ounce gold for saprolite.
|
r.
|
Metates royalty – 0.35 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $24.00 per ounce silver.
|
9.
|
Mineral Resources are estimated using appropriate recovery rates and the following commodity prices:
|
a.
|
Peñasquito mine - $1,500 per ounce gold, $24.00 per ounce silver, $1.00 per pound lead and $1.00 per pound zinc.
|
b.
|
San Dimas mine – 2.00 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $18.00 per ounce silver.
|
c.
|
Pascua-Lama project – $1,500 per ounce gold, $24.00 per ounce silver and $3.50 per pound copper.
|
d.
|
Yauliyacu mine – $20.00 per ounce silver, $3.29 per pound copper and $1.02 per pound lead and zinc.
|
e.
|
777 mine – $1,260 per ounce gold, $21.00 per ounce silver, $3.15 per pound copper and $1.07 per pound zinc.
|
f.
|
Neves-Corvo mine – 1.0% copper cut-off for the copper Resource and 3.0% zinc cut-off for the zinc Resource, both assuming $2.50 per pound copper and $1.00 per pound lead and zinc.
|
g.
|
Rosemont project – 0.30% copper equivalent cut-off for Mixed and 0.15% copper equivalent for Sulfide assuming $20.00 per ounce silver, $2.50 per pound copper and $15.00 per pound molybdenum.
|
h.
|
Constancia project – 0.12% copper cut-off for Constancia and 0.10% copper cut-off for Pampacancha.
|
i.
|
Zinkgruvan mine – 3.8% zinc equivalent cut-off for the zinc Resource and 1.0% copper cut-off for the copper Resource, both assuming $2.50 per pound copper and $1.00 per pound lead and zinc
|
j.
|
Aljustrel mine – 4.5% zinc cut-off for Feitais and Moinho mines zinc Resources and 4.0% zinc cut-off for Estação zinc Resources.
|
k.
|
Stratoni mine – Cut-off is geological due to the sharpness of the mineralized contacts and the high grade nature of the mineralization
|
l.
|
Minto mine – 0.5% copper cut-off.
|
m.
|
Keno Hill mines:
|
i.
|
Bellekeno mine - $185 per tonne NSR cut-off assuming $22.50 per ounce silver, $0.85 per pound lead and $0.95 per pound zinc.
|
ii.
|
Flame and Moth and Bermingham projects - $185 per tonne NSR cut-off assuming $1,300 per ounce gold, $20.00 per ounce silver, $0.94 per pound lead and $1.00 per pound zinc.
|
iii.
|
Bermingham project - $185 per tonne NSR cut-off assuming $1,250 per ounce gold, $20.00 per ounce silver, $0.90 per pound lead and $0.95 per pound zinc.
|
iv.
|
Lucky Queen project - $185 per tonne NSR cut-off assuming $1,100 per ounce gold, $18.50 per ounce silver, $0.90 per pound lead and $0.95 per pound zinc.
|
v.
|
Onek project - $185 per tonne NSR cut-off assuming $1,250 per ounce gold, $20.00 per ounce silver, $0.90 per pound lead and $0.95 per pound zinc.
|
vi.
|
Elsa Tailings project – 50 grams per tonne silver cut-off.
|
n.
|
Los Filos mine - $1,500 per ounce gold and $24.00 per ounce silver.
|
o.
|
Loma de La Plata project – 50 gram per tonne silver equivalent cut-off assuming $12.50 per ounce silver and $0.50 per pound lead.
|
p.
|
Salobo mine – 0.296% copper equivalent cut-off assuming $1,500 per ounce gold $3.70 per pound copper.
|
q.
|
Sudbury mines - $1,250 per ounce gold, $22.00 per ounce silver, $10.43 per pound nickel, $3.45 per pound copper, $1,800 per ounce platinum, $1,000 per ounce palladium and $13.00 per pound cobalt.
|
r.
|
Toroparu project – 0.30 grams per tonne gold cut-off assuming $1,350 per ounce gold.
|
s.
|
Metates royalty – 0.35 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $24.00 per ounce silver.
|
10.
|
The San Dimas silver purchase agreement provides that Primero will deliver to the Company a per annum amount equal to the first 6.0 million ounces of payable silver produced at the San Dimas mine and 50% of any excess, for the life of the mine.
|
11.
|
The Company’s attributable Mineral Resources and Mineral Reserves for the Lagunas Norte, Veladero, Cozamin and Yauliyacu silver interests, in addition to the Sudbury and 777 gold interests, have been constrained to the production expected for the various contracts.
|
12.
|
The Company’s Yauliyacu silver purchase agreement (March 2006) with Glencore provides for the delivery of up to 4.75 million ounces of silver per year for 20 years. In the event that silver sold and delivered to Silver Wheaton in any year totals less than 4.75 million ounces, the amount sold and delivered to Silver Wheaton in subsequent years will be increased to make up for any cumulative shortfall, to the extent production permits. Depending upon production levels it is possible that the Company’s current attributable tonnage may not be mined before the agreement expires.
|
13.
|
The 777 precious metal purchase agreement provides that Hudbay will deliver 100% of the payable silver for the life of the mine and 100% of the payable gold until completion of the Constancia project, after which the gold stream will reduce to 50%. The gold figures in this table represent the attributable 777 mine Mineral Resources and Mineral Reserves constrained to the production expected for the 777 precious metal purchase agreement.
|
14.
|
The scientific and technical information in this document regarding the Peñasquito and San Dimas mines and the Pascua-Lama project was sourced by the Company from the following SEDAR (www.sedar.com) filed documents:
|
a.
|
Peñasquito - Goldcorp Management’s annual information form filed on March 17, 2015;
|
b.
|
San Dimas - Primero annual information form filed on March 31, 2015; and
|
c.
|
Pascua-Lama - Barrick Gold Corp.’s annual information form filed on March 27, 2015.
|
15.
|
The Rosemont mine Mineral Resources and Mineral Reserves do not include the SX/EW leach material since this process does not recover silver.
|
16.
|
The Company has filed a technical report for the Salobo mine, which is available on SEDAR at www.sedar.com.
|
17.
|
The Company’s agreement with Sandspring is an early deposit structure whereby the Company will have the option not to proceed with the 10% gold stream and 50% silver stream on the Toroparu project following the delivery of a bankable definitive feasibility study.
|
18.
|
Silver and gold are produced as by-product metal at all operations with the exception of silver at the Keno Hill mines and Loma de La Plata project and gold at the Toroparu project; therefore, the economic cut-off applied to the reporting of silver and gold Mineral Resources and Mineral Reserves will be influenced by changes in the commodity prices of other metals at the time.
|
19.
|
Silver Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
20.
|
Effective August 7, 2014, the Company entered into an agreement for a 1.5% net smelter returns royalty on Chesapeake Gold Corp’s (Chesapeake) Metates property, located in Mexico. As part of the agreement, Chesapeake will have the right at any time for a period of five years to repurchase two-thirds of the royalty, with the Company retaining a 0.5% royalty interest.
|
Three Months Ended
March 31
|
|||||
(US dollars and shares in thousands, except per share amounts - unaudited)
|
Note
|
2015
|
2014
|
||
Sales
|
5
|
$
|
130,504
|
$
|
165,379
|
Cost of sales
|
|||||
Cost of sales, excluding depletion
|
$
|
34,464
|
$
|
37,088
|
|
Depletion
|
32,045
|
36,621
|
|||
Total cost of sales
|
$
|
66,509
|
$
|
73,709
|
|
Earnings from operations
|
$
|
63,995
|
$
|
91,670
|
|
Expenses and other income
|
|||||
General and administrative 1
|
6
|
$
|
8,170
|
$
|
10,110
|
Foreign exchange gain
|
(373)
|
(281)
|
|||
Interest expense
|
13
|
1,500
|
1,108
|
||
Other expense
|
7
|
2,297
|
910
|
||
|
$
|
11,594
|
$
|
11,847
|
|
Earnings before income taxes
|
$
|
52,401
|
$
|
79,823
|
|
Income tax expense
|
19
|
(2,982)
|
(14)
|
||
Net earnings
|
$
|
49,419
|
$
|
79,809
|
|
Basic earnings per share
|
$
|
0.13
|
$
|
0.22
|
|
Diluted earnings per share
|
$
|
0.13
|
$
|
0.22
|
|
Weighted average number of shares outstanding
|
|||||
Basic
|
17
|
370,844
|
357,398
|
||
Diluted
|
17
|
371,115
|
357,940
|
||
1) Equity settled stock based compensation (a non-cash item) included in general and administrative expenses
|
$
|
1,922
|
$
|
2,182
|
Three Months Ended
March 31
|
|||||
(US dollars in thousands - unaudited)
|
Note
|
2015
|
2014
|
||
Net earnings
|
$
|
49,419
|
$
|
79,809
|
|
Other comprehensive income (loss)
|
|||||
Items that will not be reclassified to net earnings
|
|||||
(Loss) gain on long-term investments - common shares held
|
9
|
(7,716)
|
8,144
|
||
Total comprehensive income
|
$
|
41,703
|
$
|
87,953
|
Note
|
March 31
|
December 31
|
|||
(US dollars in thousands - unaudited)
|
2015
|
2014
|
|||
Assets
|
|||||
Current assets
|
|||||
Cash and cash equivalents
|
18
|
$
|
88,008
|
$
|
308,098
|
Accounts receivable
|
8
|
2,479
|
4,132
|
||
Other
|
1,250
|
26,263
|
|||
Total current assets
|
$
|
91,737
|
$
|
338,493
|
|
Non-current assets
|
|||||
Silver and gold interests
|
10
|
$
|
5,118,826
|
$
|
4,248,265
|
Early deposit - gold interest
|
11
|
13,613
|
13,599
|
||
Royalty interest
|
12
|
9,107
|
9,107
|
||
Long-term investments
|
9
|
25,157
|
32,872
|
||
Other
|
9,634
|
5,427
|
|||
Total non-current assets
|
$
|
5,176,337
|
$
|
4,309,270
|
|
Total assets
|
$
|
5,268,074
|
$
|
4,647,763
|
|
Liabilities
|
|||||
Current liabilities
|
|||||
Accounts payable and accrued liabilities
|
$
|
15,060
|
$
|
14,798
|
|
Dividends payable
|
14.2
|
20,198
|
-
|
||
Current portion of performance share units
|
16.1
|
3,328
|
1,373
|
||
Total current liabilities
|
$
|
38,586
|
$
|
16,171
|
|
Non-current liabilities
|
|||||
Bank debt
|
13
|
$
|
800,000
|
$
|
998,518
|
Deferred income taxes
|
19
|
133
|
942
|
||
Performance share units
|
16.1
|
1,859
|
3,396
|
||
Total non-current liabilities
|
$
|
801,992
|
$
|
1,002,856
|
|
Total liabilities
|
$
|
840,578
|
$
|
1,019,027
|
|
Shareholders' equity
|
|||||
Issued capital
|
14
|
$
|
2,815,338
|
$
|
2,037,923
|
Reserves
|
15
|
(36,717)
|
(28,841)
|
||
Retained earnings
|
1,648,875
|
1,619,654
|
|||
Total shareholders' equity
|
$
|
4,427,496
|
$
|
3,628,736
|
|
Total liabilities and shareholders' equity
|
$
|
5,268,074
|
$
|
4,647,763
|
|
Commitments and contingencies
|
13, 20
|
Three Months Ended
March 31
|
|||||
(US dollars in thousands - unaudited)
|
Note
|
2015
|
2014
|
||
Operating activities
|
|||||
Net earnings
|
$
|
49,419
|
$
|
79,809
|
|
Adjustments for
|
|||||
Depreciation and depletion
|
32,142
|
36,688
|
|||
Amortization of credit facility origination fees:
|
|||||
Interest expense
|
113
|
55
|
|||
Amortization of credit facility origination fees - undrawn facilities
|
7
|
248
|
251
|
||
Write off of credit facility origination fees upon repayment of NRT Loan
|
7
|
1,315
|
-
|
||
Interest expense
|
1,387
|
1,053
|
|||
Equity settled stock based compensation
|
1,922
|
2,182
|
|||
Performance share units
|
16.1
|
782
|
147
|
||
Deferred income tax expense (recovery)
|
19
|
2,936
|
(40)
|
||
Investment income recognized in net earnings
|
(132)
|
(85)
|
|||
Other
|
(38)
|
(78)
|
|||
Change in non-cash working capital
|
18
|
150
|
(4,132)
|
||
Cash generated from operations
|
$
|
90,244
|
$
|
115,850
|
|
Interest paid - expensed
|
(1,188)
|
(1,046)
|
|||
Interest received
|
75
|
28
|
|||
Cash generated from operating activities
|
$
|
89,131
|
$
|
114,832
|
|
Financing activities
|
|||||
Bank debt repaid
|
13
|
$
|
(1,000,000)
|
$
|
-
|
Bank debt drawn
|
13
|
800,000
|
-
|
||
Credit facility origination fees
|
13
|
(4,112)
|
(600)
|
||
Shares issued
|
14
|
800,000
|
-
|
||
Share issue costs
|
(30,344)
|
-
|
|||
Share purchase options exercised
|
2,887
|
13
|
|||
Cash generated from (applied to) financing activities
|
$
|
568,431
|
$
|
(587)
|
|
Investing activities
|
|||||
Silver and gold interests
|
10
|
$
|
(900,003)
|
$
|
(125,082)
|
Interest paid - capitalized to silver interests
|
(1,824)
|
(2,891)
|
|||
Silver and gold interests - early deposit
|
11
|
(13)
|
(149)
|
||
Proceeds on disposal of silver interest
|
10
|
25,000
|
-
|
||
Dividend income received
|
57
|
57
|
|||
Other
|
(612)
|
(26)
|
|||
Cash applied to investing activities
|
$
|
(877,395)
|
$
|
(128,091)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
$
|
(257)
|
$
|
(7)
|
|
Decrease in cash and cash equivalents
|
$
|
(220,090)
|
$
|
(13,853)
|
|
Cash and cash equivalents, beginning of period
|
308,098
|
95,823
|
|||
Cash and cash equivalents, end of period
|
18
|
$
|
88,008
|
$
|
81,970
|
Reserves
|
|||||||||||||||||
(US dollars in thousands - unaudited)
|
Number of Shares (000's)
|
Issued
Capital
|
Share Purchase Warrants Reserve
|
Share Purchase Options Reserve
|
Restricted Share Units Reserve
|
Long-Term Investment Revaluation Reserve
(Net of Tax)
|
Total
Reserves
|
Retained Earnings
|
Total
|
||||||||
At January 1, 2014
|
357,397
|
$
|
1,879,475
|
$
|
53,717
|
$
|
19,443
|
$
|
2,833
|
$
|
(101,611)
|
$
|
(25,618)
|
$
|
1,512,689
|
$
|
3,366,546
|
Total comprehensive income
|
|||||||||||||||||
Net earnings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
79,809
|
$
|
79,809
|
|
OCI 1
|
-
|
-
|
-
|
-
|
8,144
|
8,144
|
-
|
8,144
|
|||||||||
Total comprehensive income (loss)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
8,144
|
$
|
8,144
|
$
|
79,809
|
$
|
87,953
|
|
Fair value of SBC 1
|
$
|
-
|
$
|
-
|
$
|
1,925
|
$
|
257
|
$
|
-
|
$
|
2,182
|
$
|
-
|
$
|
2,182
|
|
Options 1 exercised
|
2
|
17
|
-
|
(4)
|
-
|
-
|
(4)
|
-
|
13
|
||||||||
RSUs 1 released
|
22
|
521
|
-
|
-
|
(521)
|
-
|
(521)
|
-
|
-
|
||||||||
Dividends (Note 14.2)
|
-
|
-
|
-
|
-
|
-
|
-
|
(25,019)
|
(25,019)
|
|||||||||
At March 31, 2014
|
357,421
|
$
|
1,880,013
|
$
|
53,717
|
$
|
21,364
|
$
|
2,569
|
$
|
(93,467)
|
$
|
(15,817)
|
$
|
1,567,479
|
$
|
3,431,675
|
Total comprehensive income
|
|||||||||||||||||
Net earnings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
120,017
|
$
|
120,017
|
|
OCI 1
|
-
|
-
|
-
|
-
|
(16,073)
|
(16,073)
|
-
|
(16,073)
|
|||||||||
Total comprehensive income (loss)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(16,073)
|
$
|
(16,073)
|
$
|
120,017
|
$
|
103,944
|
|
Fair value of SBC 1
|
$
|
-
|
$
|
-
|
$
|
5,274
|
$
|
738
|
$
|
-
|
$
|
6,012
|
$
|
-
|
$
|
6,012
|
|
Options 1 exercised
|
598
|
9,437
|
-
|
(2,424)
|
-
|
-
|
(2,424)
|
-
|
7,013
|
||||||||
Shares issued
|
6,112
|
135,000
|
-
|
-
|
-
|
-
|
-
|
-
|
135,000
|
||||||||
Share issue costs
|
(152)
|
-
|
-
|
-
|
-
|
-
|
-
|
(152)
|
|||||||||
DRIP 1
|
647
|
13,625
|
-
|
-
|
-
|
-
|
-
|
-
|
13,625
|
||||||||
Dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
(68,381)
|
(68,381)
|
|||||||||
Reallocation
|
-
|
-
|
-
|
-
|
(539)
|
(539)
|
539
|
-
|
|||||||||
At December 31, 2014
|
364,778
|
$
|
2,037,923
|
$
|
53,717
|
$
|
24,214
|
$
|
3,307
|
$
|
(110,079)
|
$
|
(28,841)
|
$
|
1,619,654
|
$
|
3,628,736
|
Total comprehensive income
|
|||||||||||||||||
Net earnings
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
49,419
|
$
|
49,419
|
|
OCI 1
|
-
|
-
|
-
|
-
|
(7,716)
|
(7,716)
|
-
|
(7,716)
|
|||||||||
Total comprehensive income
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(7,716)
|
$
|
(7,716)
|
$
|
49,419
|
$
|
41,703
|
|
Shares issued
|
38,930
|
$
|
800,000
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
800,000
|
Share issue costs
|
(31,299)
|
-
|
-
|
-
|
-
|
-
|
-
|
(31,299)
|
|||||||||
DIT 1 recovery
|
3,745
|
-
|
-
|
-
|
-
|
-
|
-
|
3,745
|
|||||||||
Fair value of SBC 1
|
-
|
-
|
1,687
|
235
|
-
|
1,922
|
-
|
1,922
|
|||||||||
Options 1 exercised
|
229
|
4,127
|
-
|
(1,240)
|
-
|
-
|
(1,240)
|
-
|
2,887
|
||||||||
RSUs 1 released
|
32
|
842
|
-
|
-
|
(842)
|
-
|
(842)
|
-
|
-
|
||||||||
Dividends (Note 14.2)
|
-
|
-
|
-
|
-
|
-
|
-
|
(20,198)
|
(20,198)
|
|||||||||
At March 31, 2015
|
403,969
|
$
|
2,815,338
|
$
|
53,717
|
$
|
24,661
|
$
|
2,700
|
$
|
(117,795)
|
$
|
(36,717)
|
$
|
1,648,875
|
$
|
4,427,496
|
1)
|
Definitions as follows: “OCI” = Other Comprehensive Income (Loss); “SBC” = Equity Settled Stock Based Compensation; “Options” = Share Purchase Options; “RSUs” = Restricted Share Units; “Warrants” = Share Purchase Warrants; “DRIP” = Dividend Reinvestment Plan; “DIT” = Deferred Income Taxes.
|
1.
|
Description of Business and Nature of Operations
|
2.
|
Significant Accounting Policies
|
2.1.
|
Basis of Presentation
|
2.2.
|
Future Changes in Accounting Policies
|
·
|
IFRS 15 – Revenue from Contracts with Customers: In May 2014 the IASB and the Financial Accounting Standards Board (“FASB”) completed its joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for IFRS and US GAAP. IFRS 15 establishes principles to address the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company is currently evaluating the impact this standard is expected to have on its consolidated financial statements.
|
·
|
IFRS 9 (2014) – Financial Instruments (amended 2014): In July 2014, the IASB issued the final version of IFRS 9 – Financial Instruments (“IFRS 9”). The Company adopted IFRS 9 (2009) – Financial Instruments effective January 1, 2010. The Company is currently evaluating the impact this amended standard is expected to have on its consolidated financial statements.
|
3.
|
Key Sources of Estimation Uncertainty and Critical Accounting Judgments
|
3.1.
|
Attributable Reserve and Resource Estimates
|
3.2.
|
Depletion
|
1
|
Statements made in this section contain forward-looking information. Please see “Cautionary Note Regarding Forward-Looking Statements” in the Management’s Discussion and Analysis (“MD&A”) for material risks, assumptions and important disclosure associated with this information.
|
3.3.
|
Impairment of Assets
|
3.4.
|
Valuation of Stock Based Compensation
|
3.5.
|
Provisionally Priced Concentrate Sales
|
3.6.
|
Contingencies
|
3.7.
|
Functional Currency
|
·
|
The Company’s revenue is denominated in US dollars;
|
·
|
The Company’s cash cost of sales is denominated in US dollars;
|
·
|
The majority of the Company’s cash is held in US dollars; and
|
·
|
The Company generally seeks to raise capital in US dollars.
|
1
|
Statements made in this section contain forward-looking information. Please see “Cautionary Note Regarding Forward-Looking Statements” in the Management’s Discussion and Analysis (“MD&A”) for material risks, assumptions and important disclosure associated with this information.
|
3.8.
|
Income Taxes
|
4.
|
Fair Value Measurements
|
Level 1 - | Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets. |
Level 2 - | Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
Level 3 - | Unobservable inputs which are supported by little or no market activity. |
March 31, 2015
|
||||||||
(in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
$
|
1,685
|
$
|
-
|
$
|
1,685
|
$
|
-
|
Long-term investments - common shares held
|
25,157
|
25,157
|
-
|
-
|
||||
|
$
|
26,842
|
$
|
25,157
|
$
|
1,685
|
$
|
-
|
December 31, 2014
|
||||||||
(in thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
$
|
2,343
|
$
|
-
|
$
|
2,343
|
$
|
-
|
Long-term investments - common shares held
|
32,872
|
32,872
|
-
|
-
|
||||
|
$
|
35,215
|
$
|
32,872
|
$
|
2,343
|
$
|
-
|
5.
|
Revenue1
|
Three Months Ended
March 31
|
||||||
(in thousands)
|
2015
|
2014
|
||||
Sales
|
||||||
Silver
|
||||||
Silver credit sales
|
$
|
76,749
|
59%
|
$
|
104,592
|
63%
|
Concentrate sales
|
19,263
|
15%
|
22,152
|
14%
|
||
$
|
96,012
|
74%
|
$
|
126,744
|
77%
|
|
Gold
|
||||||
Gold credit sales
|
$
|
29,707
|
23%
|
$
|
30,330
|
18%
|
Concentrate sales
|
4,785
|
3%
|
8,305
|
5%
|
||
$
|
34,492
|
26%
|
$
|
38,635
|
23%
|
|
Total sales revenue
|
$
|
130,504
|
100%
|
$
|
165,379
|
100%
|
1
|
Statements made in this section contain forward-looking information. Please see “Cautionary Note Regarding Forward-Looking Statements” in the MD&A for material risks, assumptions and important disclosure associated with this information.
|
6.
|
General and Administrative
|
Three Months Ended
March 31
|
|||||
(in thousands)
|
Note
|
2015
|
2014
|
||
Salaries and benefits
|
|||||
Salaries and benefits, excluding PSUs
|
$
|
2,968
|
$
|
3,424
|
|
PSUs
|
16.1
|
886
|
1,045
|
||
Total salaries and benefits
|
$
|
3,854
|
$
|
4,469
|
|
Depreciation
|
96
|
67
|
|||
Charitable donations
|
646
|
646
|
|||
Other
|
1,652
|
2,746
|
|||
Cash settled general and administrative
|
$
|
6,248
|
$
|
7,928
|
|
Equity settled stock based compensation (a non-cash expense)
|
1,922
|
2,182
|
|||
Total general and administrative
|
$
|
8,170
|
$
|
10,110
|
7.
|
Other Expense (Income)
|
Three Months Ended
March 31
|
|||||
(in thousands)
|
Note
|
2015
|
2014
|
||
Dividend income
|
$
|
(57)
|
$
|
(57)
|
|
Interest income
|
(75)
|
(28)
|
|||
Stand-by fees
|
13
|
787
|
715
|
||
Amortization of credit facility origination fees - undrawn facilities
|
13
|
248
|
251
|
||
Write off of debt issue costs upon the repayment of the NRT Loan
|
13
|
1,315
|
-
|
||
Other
|
79
|
29
|
|||
Total other expense (income)
|
$
|
2,297
|
$
|
910
|
8.
|
Accounts Receivable
|
March 31
|
December 31
|
||||
(in thousands)
|
Note
|
2015
|
2014
|
||
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
5
|
$
|
1,685
|
$
|
2,343
|
Other receivables
|
794
|
1,789
|
|||
Total accounts receivable
|
$
|
2,479
|
$
|
4,132
|
9.
|
Long-Term Investments
|
Mar 31, 2015
|
Three Months
Ended
Mar 31, 2015
|
Dec 31, 2014
|
|
(in thousands)
|
Fair Value
|
Fair Value
Adjustment Losses
Included
in OCI
|
Fair Value
|
Bear Creek
|
$ 12,236
|
$ (4,000)
|
$ 16,236
|
Revett
|
2,459
|
(1,414)
|
3,873
|
Other
|
10,462
|
(2,302)
|
12,763
|
Total common shares held
|
$ 25,157
|
$ (7,716)
|
$ 32,872
|
Mar 31, 2014
|
Three Months
Ended
Mar 31, 2014
|
|
(in thousands)
|
Fair Value
|
Fair Value
Adjustment
Gains Included
in OCI
|
Bear Creek
|
$ 22,201
|
$ 3,993
|
Revett
|
4,256
|
430
|
Other
|
22,488
|
3,721
|
Total common shares held
|
$ 48,945
|
$ 8,144
|
10.
|
Silver and Gold Interests
|
Three Months Ended March 31, 2015
|
||||||||||||||
Cost
|
Accumulated Depletion & Impairment
|
Carrying
Amount
Mar 31, 2015
|
||||||||||||
(in thousands)
|
Balance
Jan 1, 2015
|
Additions
|
Balance
Mar 31, 2015
|
Balance
Jan 1, 2015
|
Depletion
|
Balance
Mar 31, 2015
|
||||||||
Silver interests
|
||||||||||||||
San Dimas
|
$
|
190,331
|
$
|
-
|
$
|
190,331
|
$
|
(37,380)
|
$
|
(1,671)
|
$
|
(39,051)
|
$
|
151,280
|
Yauliyacu
|
285,292
|
-
|
285,292
|
(97,814)
|
(2,059)
|
(99,873)
|
185,419
|
|||||||
Peñasquito
|
524,626
|
-
|
524,626
|
(73,481)
|
(4,478)
|
(77,959)
|
446,667
|
|||||||
Barrick 1
|
650,924
|
2,552
|
653,476
|
(45,596)
|
(2,097)
|
(47,693)
|
605,783
|
|||||||
Other 2
|
692,159
|
-
|
692,159
|
(132,412)
|
(4,689)
|
(137,101)
|
555,058
|
|||||||
|
$
|
2,343,332
|
$
|
2,552
|
$
|
2,345,884
|
$
|
(386,683)
|
$
|
(14,994)
|
$
|
(401,677)
|
$
|
1,944,207
|
Gold interests
|
||||||||||||||
777
|
$
|
354,459
|
$
|
-
|
$
|
354,459
|
$
|
(110,546)
|
$
|
(5,454)
|
(116,000)
|
$
|
238,459
|
|
Sudbury 3
|
623,864
|
-
|
623,864
|
(40,002)
|
(6,759)
|
(46,761)
|
577,103
|
|||||||
Salobo
|
1,330,311
|
900,052
|
2,230,363
|
(28,109)
|
(4,111)
|
(32,220)
|
2,198,143
|
|||||||
Other 4
|
183,831
|
2
|
183,833
|
(22,192)
|
(727)
|
(22,919)
|
160,914
|
|||||||
|
$
|
2,492,465
|
$
|
900,054
|
$
|
3,392,519
|
$
|
(200,849)
|
$
|
(17,051)
|
$
|
(217,900)
|
$
|
3,174,619
|
|
$
|
4,835,797
|
$
|
902,606
|
$
|
5,738,403
|
$
|
(587,532)
|
$
|
(32,045)
|
$
|
(619,577)
|
$
|
5,118,826
|
1)
|
Comprised of the Pascua-Lama, Lagunas Norte, Pierina and Veladero silver interests.
|
2)
|
Comprised of the Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777, Aljustrel, Loma de La Plata, Constancia and Rosemont silver interests.
|
3)
|
Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
|
4)
|
Comprised of the Minto, Constancia and Rosemont gold interests.
|
Year Ended December 31, 2014
|
||||||||||||||||||||
Cost
|
Accumulated Depletion & Impairment
|
Carrying
Amount
Dec 31, 2014
|
||||||||||||||||||
(in thousands)
|
Balance
Jan 1, 2014
|
Additions
|
Disposal
|
Balance
Dec 31, 2014
|
Balance
Jan 1, 2014
|
Depletion
|
Disposal
|
Impairment
|
Balance
Dec 31, 2014
|
|||||||||||
Silver interests
|
||||||||||||||||||||
San Dimas
|
$
|
190,331
|
$
|
-
|
$
|
-
|
$
|
190,331
|
$
|
(32,839)
|
$
|
(4,541)
|
$
|
-
|
$
|
-
|
$
|
(37,380)
|
$
|
152,951
|
Yauliyacu
|
285,292
|
-
|
-
|
285,292
|
(78,015)
|
(19,799)
|
-
|
-
|
(97,814)
|
187,478
|
||||||||||
Peñasquito
|
524,626
|
-
|
-
|
524,626
|
(52,337)
|
(21,144)
|
-
|
-
|
(73,481)
|
451,145
|
||||||||||
Barrick 1
|
641,155
|
9,769
|
-
|
650,924
|
(40,048)
|
(5,548)
|
-
|
-
|
(45,596)
|
605,328
|
||||||||||
Other 2, 3, 4, 5
|
690,182
|
129,636
|
(127,659)
|
692,159
|
(140,255)
|
(24,517)
|
100,511
|
(68,151)
|
(132,412)
|
559,747
|
||||||||||
|
$
|
2,331,586
|
$
|
139,405
|
$
|
(127,659)
|
$
|
2,343,332
|
$
|
(343,494)
|
$
|
(75,549)
|
$
|
100,511
|
$
|
(68,151)
|
$
|
(386,683)
|
$
|
1,956,649
|
Gold interests
|
||||||||||||||||||||
777
|
$
|
354,459
|
$
|
-
|
$
|
-
|
$
|
354,459
|
$
|
(74,433)
|
$
|
(36,113)
|
-
|
-
|
$
|
(110,546)
|
$
|
243,913
|
||
Sudbury 6
|
623,864
|
-
|
-
|
623,864
|
(14,410)
|
(25,592)
|
-
|
-
|
(40,002)
|
583,862
|
||||||||||
Salobo
|
1,330,311
|
-
|
-
|
1,330,311
|
(7,828)
|
(20,281)
|
-
|
-
|
(28,109)
|
1,302,202
|
||||||||||
Other 7
|
47,976
|
135,855
|
-
|
183,831
|
(19,547)
|
(2,645)
|
-
|
-
|
(22,192)
|
161,639
|
||||||||||
|
$
|
2,356,610
|
$
|
135,855
|
$
|
-
|
$
|
2,492,465
|
$
|
(116,218)
|
$
|
(84,631)
|
$
|
-
|
$
|
-
|
$
|
(200,849)
|
$
|
2,291,616
|
|
$
|
4,688,196
|
$
|
275,260
|
$
|
(127,659)
|
$
|
4,835,797
|
$
|
(459,712)
|
$
|
(160,180)
|
$
|
100,511
|
$
|
(68,151)
|
$
|
(587,532)
|
$
|
4,248,265
|
1)
|
Comprised of the Pascua-Lama, Lagunas Norte, Pierina and Veladero silver interests.
|
2)
|
Comprised of the Los Filos, Zinkgruvan, Keno Hill, Mineral Park, Cozamin, Neves-Corvo, Stratoni, Campo Morado, Minto, 777, Aljustrel, Constancia, Loma de La Plata and Rosemont silver interests.
|
3)
|
As part of an agreement with I’M SGPS dated July 16, 2014, Silver Wheaton agreed to waive its rights to silver contained in copper concentrate at the Aljustrel mine. The Company has reported this agreement as a disposal of the portion of the silver interest related to silver contained in copper concentrate. The Aljustrel mine has been reflected as a component of Other silver interests in these financial statements. The Company has not waived its rights to the silver contained in zinc concentrate at the Aljustrel mine.
|
4)
|
Silver Wheaton entered an agreement with Nyrstar Mining Ltd. resulting in the cancellation of the silver purchase agreement relating to the Campo Morado mine in Mexico in exchange for cash consideration of $25 million.
|
5)
|
On November 4, 2014, the United States Bankruptcy Court for the District of Delaware approved a settlement agreement which provides for the termination of any claim Silver Wheaton may have against the Mineral Park mine.
|
6)
|
Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
|
7)
|
Comprised of the Minto, Constancia and Rosemont gold interests.
|
March 31, 2015
|
December 31, 2014
|
|||||||||||
(in thousands)
|
Depletable
|
Non-
Depletable
|
Total
|
Depletable
|
Non-
Depletable
|
Total
|
||||||
Silver interests
|
||||||||||||
San Dimas
|
$
|
24,168
|
$
|
127,112
|
$
|
151,280
|
$
|
35,099
|
$
|
117,852
|
$
|
152,951
|
Yauliyacu
|
53,285
|
132,134
|
185,419
|
51,052
|
136,426
|
187,478
|
||||||
Peñasquito
|
266,953
|
179,714
|
446,667
|
260,082
|
191,063
|
451,145
|
||||||
Barrick 1, 2
|
15,830
|
589,953
|
605,783
|
11,681
|
593,647
|
605,328
|
||||||
Other 3
|
415,779
|
139,279
|
555,058
|
151,410
|
408,337
|
559,747
|
||||||
|
$
|
776,015
|
$
|
1,168,192
|
$
|
1,944,207
|
$
|
509,324
|
$
|
1,447,325
|
$
|
1,956,649
|
Gold interests
|
||||||||||||
777
|
$
|
156,086
|
$
|
82,373
|
$
|
238,459
|
$
|
200,935
|
$
|
42,978
|
$
|
243,913
|
Sudbury 4
|
423,683
|
153,420
|
577,103
|
474,330
|
109,532
|
583,862
|
||||||
Salobo
|
1,806,552
|
391,591
|
2,198,143
|
961,852
|
340,350
|
1,302,202
|
||||||
Other 5
|
153,163
|
7,751
|
160,914
|
18,131
|
143,508
|
161,639
|
||||||
|
$
|
2,539,484
|
$
|
635,135
|
$
|
3,174,619
|
$
|
1,655,248
|
$
|
636,368
|
$
|
2,291,616
|
|
$
|
3,315,499
|
$
|
1,803,327
|
$
|
5,118,826
|
$
|
2,164,572
|
$
|
2,083,693
|
$
|
4,248,265
|
1)
|
Comprised of the Pascua-Lama, Lagunas Norte, Pierina and Veladero silver interests.
|
2)
|
The amount reflected as depletable is based on the value of the reserves relating to the Lagunas Norte, Pierina and Veladero silver interests.
|
3)
|
Comprised of the Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777, Aljustrel, Loma de La Plata, Constancia and Rosemont silver interests.
|
4)
|
Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
|
5)
|
Comprised of the Minto, Constancia and Rosemont gold interests.
|
11.
|
Early Deposit – Gold Interest
|
12.
|
Royalty Agreement
|
13.
|
Bank Debt
|
March 31, 2015
|
||||||
(in thousands)
|
NRT
Loan 1
|
Revolving
Facility ²
|
Total
|
|||
Current portion
|
$
|
-
|
$
|
-
|
$
|
-
|
Long-term portion
|
-
|
800,000
|
800,000
|
|||
Gross bank debt outstanding³
|
$
|
-
|
$
|
800,000
|
$
|
800,000
|
Interest capitalized during the period
|
$
|
1,533
|
$
|
1,019
|
$
|
2,552
|
Interest expensed during the period
|
1,332
|
168
|
1,500
|
|||
Total interest incurred during the period
|
$
|
2,8654
|
$
|
1,187
|
$
|
4,052
|
Effective interest rate
|
1.72%
|
1.98%
|
1.80%
|
1)
|
The NRT Loan was fully repaid on February 27, 2015.
|
2)
|
The Company incurred stand-by fees of $0.8 million related to the undrawn portion of the Revolving Facility during the three months ended March 31, 2015.
|
3)
|
There is $7.2 million unamortized debt issue costs associated with the Revolving Facility which have been recorded as an asset under the classification Other.
|
4)
|
Interest costs incurred under the NRT Loan and the Revolving Facility during the three months ended March 31, 2015 includes the amortization of debt issue costs in the amount of $167,000 and $40,000, respectively.
|
December 31, 2014
|
||||||
(in thousands)
|
NRT
Loan
|
Revolving Facility 1
|
Total
|
|||
Current portion
|
$
|
-
|
$
|
-
|
$
|
-
|
Long-term portion
|
1,000,000
|
-
|
1,000,000
|
|||
Gross bank debt outstanding
|
$
|
1,000,000
|
$
|
-
|
$
|
1,000,000
|
Less: unamortized debt issue costs²
|
(1,482)
|
-
|
(1,482)
|
|||
Net bank debt outstanding
|
$
|
998,518
|
$
|
-
|
$
|
998,518
|
Three months ended March 31, 2014:
|
||||||
Interest capitalized during the period
|
$
|
3,131
|
$
|
-
|
$
|
3,131
|
Interest expensed during the period
|
1,108
|
-
|
1,108
|
|||
Total interest incurred during the period
|
$
|
4,239³
|
$
|
-
|
$
|
4,239
|
Effective interest rate
|
1.70%
|
n/a
|
1.70%
|
1)
|
The Company incurred stand-by fees of $0.7 million related to the undrawn portion of the Revolving Facility during the three months ended March 31, 2014.
|
2)
|
In addition to the $1.5 million unamortized debt issue costs associated with the NRT Loan, there was $3.2 million unamortized debt issue costs at December 31, 2014 associated with the Revolving Facility which have been recorded as an asset under the classification Other.
|
3)
|
Interest costs incurred under the NRT Loan during three months ended March 31, 2014 includes the amortization of debt issue costs in the amount of $213,000.
|
Fiscal Year
|
Revolving
Facility
|
|
2015
|
$
|
-
|
2016
|
-
|
|
2017
|
-
|
|
2018
|
-
|
|
2019
|
-
|
|
Thereafter
|
800,000
|
|
|
$
|
800,000
|
14.
|
Issued Capital
|
March 31 |
December 31
|
||||
(US dollars in thousands)
|
Note
|
2015
|
2014
|
||
Issued capital
|
|||||
Share capital issued and outstanding: 403,969,215 common shares (December 31, 2014: 364,777,928 common shares)
|
14.1
|
$
|
2,815,338
|
$
|
2,037,923
|
14.1.
|
Shares Issued
|
Number
of
Shares
|
Weighted
Average
Price
|
|
At January 1, 2014
|
357,396,778
|
|
Share purchase options exercised ¹
|
1,666
|
Cdn$9.08
|
Restricted share units released ¹
|
22,088
|
$0.00
|
At March 31, 2014
|
357,420,532
|
|
Shares issued ²
|
6,112,282
|
US$22.09
|
Share purchase options exercised ¹
|
598,496
|
Cdn$13.03
|
Dividend reinvestment plan ³
|
646,618
|
US$21.08
|
At December 31, 2014
|
364,777,928
|
|
Shares issued 4
|
38,930,000
|
US$20.55
|
Share purchase options exercised ¹
|
229,000
|
Cdn$15.89
|
Restricted share units released ¹
|
32,287
|
$0.00
|
At March 31, 2015
|
403,969,215
|
1)
|
The weighted average price of share purchase options exercised and restricted share units released represents the respective exercise price.
|
2)
|
The Company issued 6,112,282 common shares at an average price of $22.09 per share in satisfaction of the $135 million upfront cash payment to Hudbay Minerals Inc. for the Constancia gold interest, which was due once capital expenditures of $1.35 billion had been incurred at Constancia.
|
3)
|
The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to have dividends reinvested directly into additional Silver Wheaton common shares. The weighted average price for common shares issued under the DRIP represents the volume weighted average price of the common shares on the five trading days preceding the dividend payment date, less a discount of 3%.
|
4)
|
In connection with the amended Salobo precious metal purchase agreement (Note 10), the Company raised gross proceeds of $800 million through the issuance of 38,930,000 common shares at $20.55 per share.
|
14.2.
|
Dividends Declared
|
15.
|
Reserves
|
Note
|
March 31
|
December 31
|
|||
(in thousands)
|
2015
|
2014
|
|||
Reserves
|
|||||
Share purchase warrants
|
15.1
|
$
|
53,717
|
$
|
53,717
|
Share purchase options
|
15.2
|
24,661
|
24,214
|
||
Restricted share units
|
15.3
|
2,700
|
3,307
|
||
Long-term investment revaluation reserve, net of tax
|
15.4
|
(117,795)
|
(110,079)
|
||
Total reserves
|
$
|
(36,717)
|
$
|
(28,841)
|
15.1.
|
Share Purchase Warrants
|
Warrants
Outstanding
|
Weighted
Average
Exercise
Price
|
Exchange
Ratio
|
Share
Purchase
Warrants
Reserve
|
||
At December 31, 2014 and March 31, 2015
|
10,000,000
|
$65.00
|
1.00
|
$
|
53,717
|
15.2.
|
Share Purchase Options
|
Three Months Ended
March 31
|
||
2015
|
2014
|
|
Black-Scholes weighted average assumptions
|
||
Grant date share price and exercise price
|
Cdn$25.48
|
Cdn$26.07
|
Expected dividend yield
|
1.06%
|
1.18%
|
Expected volatility
|
35%
|
40%
|
Risk-free interest rate
|
0.44%
|
1.15%
|
Expected option life, in years
|
2.5
|
2.5
|
Weighted average fair value per option granted
|
Cdn$5.23
|
Cdn$6.24
|
(in thousands)
|
Share
Purchase
Options
Reserve
|
At January 1, 2014
|
$ 19,443
|
Recognition of fair value of share purchase options issued
|
1,925
|
Share purchase options exercised
|
(4)
|
At March 31, 2014
|
$ 21,364
|
Recognition of fair value of share purchase options issued
|
5,274
|
Share purchase options exercised
|
(2,424)
|
At December 31, 2014
|
$ 24,214
|
Recognition of fair value of share purchase options issued
|
1,687
|
Share purchase options exercised
|
(1,240)
|
At March 31, 2015
|
$ 24,661
|
Number of
Options
Outstanding
|
Weighted Average
Exercise Price
|
|
At January 1, 2014
|
3,029,762
|
Cdn$27.28
|
Granted (fair value - $6.1 million or Cdn$6.24 per option)
|
1,098,000
|
26.07
|
Exercised
|
(1,666)
|
9.08
|
At March 31, 2014
|
4,126,096
|
Cdn$26.75
|
Granted (fair value - $0.1 million or Cdn$6.53 per option)
|
17,000
|
27.29
|
Exercised
|
(598,496)
|
13.03
|
Forfeited
|
(43,000)
|
33.85
|
At December 31, 2014
|
3,501,600
|
Cdn$28.93
|
Granted (fair value - $4.2 million or Cdn$5.23 per option)
|
1,012,700
|
25.48
|
Exercised
|
(229,000)
|
15.89
|
At March 31, 2015
|
4,285,300
|
Cdn$28.34
|
15.3.
|
Restricted Share Units (“RSUs”)
|
(in thousands)
|
Restricted
Share Units
Reserve
|
At January 1, 2014
|
$ 2,833
|
Recognition of fair value of RSUs issued
|
257
|
Restricted share units released
|
(521)
|
At March 31, 2014
|
$ 2,569
|
Recognition of fair value of RSUs issued
|
738
|
At December 31, 2014
|
$ 3,307
|
Recognition of fair value of RSUs issued
|
235
|
Restricted share units released
|
(842)
|
At March 31, 2015
|
$ 2,700
|
15.4.
|
Long-Term Investment Revaluation Reserve
|
Change in Fair
Value due to:
|
||||||||
(in thousands)
|
Share Price
|
Foreign
Exchange
|
Tax Effect | Total | ||||
At January 1, 2014
|
$ |
(123,744)
|
$ |
21,594
|
$ |
539
|
$ |
(101,611)
|
Unrealized loss on LTIs 1
|
10,063
|
(1,919)
|
-
|
8,144
|
||||
At March 31, 2014
|
$ |
(113,681)
|
$ |
19,675
|
$ |
539
|
$ |
(93,467)
|
Unrealized loss on LTIs 1
|
(15,047)
|
(1,026)
|
-
|
(16,073)
|
||||
Reallocate reserve to retained earnings
|
-
|
-
|
(539)
|
(539)
|
||||
At December 31, 2014
|
$ |
(128,728)
|
$ |
18,649
|
$ |
-
|
$ |
(110,079)
|
Unrealized loss on LTIs 1
|
(5,369)
|
(2,347)
|
-
|
(7,716)
|
||||
At March 31, 2015
|
$ |
(134,097)
|
$ |
16,302
|
$ |
-
|
$ |
(117,795)
|
1)
|
LTI’s refers to long-term investments in common shares held.
|
16.
|
Stock Based Compensation
|
16.1.
|
Performance Share Units (“PSUs”)
|
Number of
PSUs
outstanding
|
|
At January 1, 2014
|
276,912
|
Granted
|
267,250
|
Paid
|
(34,873)
|
Forfeited
|
(3,050)
|
At March 31, 2014
|
506,239
|
Granted
|
3,500
|
Dividend equivalent participation
|
5,875
|
Paid
|
(3,624)
|
Forfeited
|
(39)
|
At December 31, 2014
|
511,951
|
Granted
|
216,200
|
Paid
|
(5,207)
|
At March 31, 2015
|
722,944
|
17.
|
Earnings per Share (“EPS”) and Diluted Earnings per Share (“Diluted EPS”)
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
Basic weighted average number of shares outstanding
|
370,844
|
357,398
|
Effect of dilutive securities
|
||
Share purchase options
|
105
|
392
|
Share purchase warrants
|
-
|
-
|
Restricted share units
|
166
|
150
|
Diluted weighted average number of shares outstanding
|
371,115
|
357,940
|
Three Months Ended
March 31
|
||
(in thousands)
|
2015
|
2014
|
Share purchase options
|
2,292
|
3,061
|
Share purchase warrants
|
10,000
|
10,000
|
Total
|
12,292
|
13,061
|
18.
|
Supplemental Cash Flow Information
|
Three Months Ended
March 31
|
||||
(in thousands)
|
2015
|
2014
|
||
Change in non-cash working capital
|
||||
Accounts receivable
|
$
|
1,653
|
$
|
(445)
|
Accounts payable and accrued liabilities
|
(1,516)
|
(3,320)
|
||
Other
|
13
|
(367)
|
||
Total change in non-cash working capital
|
$
|
150
|
$
|
(4,132)
|
March 31
|
December 31
|
||||
(in thousands)
|
2015
|
2014
|
|||
Cash and cash equivalents comprised of:
|
|||||
Cash
|
$
|
88,008
|
$
|
118,832
|
|
Cash equivalents
|
-
|
189,266
|
|||
Total cash and cash equivalents
|
$
|
88,008
|
$
|
308,098
|
19.
|
Income Taxes
|
Three Months Ended
March 31
|
||||
(in thousands)
|
2015
|
2014
|
||
Current income tax expense related to foreign jurisdictions
|
$
|
46
|
$
|
54
|
Deferred income tax (recovery) expense
|
||||
Origination and reversal of temporary differences
|
$
|
(317)
|
$
|
(40)
|
Write down of previously recognized temporary differences
|
3,253
|
-
|
||
Total deferred income tax expense (recovery)
|
$
|
2,936
|
$
|
(40)
|
Income tax expense recognized in net earnings
|
$
|
2,982
|
$
|
14
|
Three Months Ended
March 31
|
||||
(in thousands)
|
2015
|
2014
|
||
Deferred income tax recovery relating to share issue costs recognized directly in equity
|
$
|
(3,745)
|
$
|
-
|
Three Months Ended
March 31
|
||||
(in thousands)
|
2015
|
2014
|
||
Earnings before income taxes
|
$
|
52,401
|
$
|
79,823
|
Canadian federal and provincial income tax rates
|
26.00%
|
26.00%
|
||
Income tax expense based on above rates
|
$
|
13,624
|
$
|
20,754
|
Non-deductible stock based compensation and other
|
614
|
695
|
||
Differences in tax rates in foreign jurisdictions
|
(15,472)
|
(21,435)
|
||
Current period unrecognized temporary differences
|
963
|
-
|
||
Write down of previously recognized temporary differences
|
3,253
|
-
|
||
Income tax expense
|
$
|
2,982
|
$
|
14
|
Three Months Ended March 31, 2015
|
||||||||
Opening
Balance
|
Recovery
(Expense)
Recognized
In Net
Earnings
|
Recovery
Recognized
In
Shareholders'
Equity
|
Closing
Balance
|
|||||
Recognized deferred income tax assets and liabilities
|
||||||||
Deferred tax assets
|
||||||||
Non-capital losses
|
$
|
14,069
|
$
|
(632)
|
$
|
-
|
$
|
13,437
|
Financing fees
|
1,422
|
(869)
|
3,745
|
4,298
|
||||
Other
|
2,111
|
(1,486)
|
-
|
625
|
||||
Deferred tax liabilities
|
||||||||
Interest capitalized for accounting
|
(84)
|
-
|
-
|
(84)
|
||||
Silver and gold interests
|
(18,348)
|
72
|
-
|
(18,276)
|
||||
Other
|
(112)
|
(21)
|
-
|
(133)
|
||||
Total
|
$
|
(942)
|
$
|
(2,936)
|
$
|
3,745
|
$
|
(133)
|
Year Ended December 31, 2014
|
||||||||
Recognized deferred income tax assets and liabilities
|
Opening
Balance
|
Recovery
(Expense)
Recognized
In Net
Earnings
|
In
Shareholders'
Equity
|
Closing
Balance
|
||||
Deferred tax assets
|
||||||||
Non-capital losses
|
$
|
12,437
|
$
|
1,632
|
$
|
-
|
$
|
14,069
|
Financing fees
|
1,725
|
(303)
|
-
|
1,422
|
||||
Other
|
1,333
|
778
|
-
|
2,111
|
||||
Deferred tax liabilities
|
||||||||
Interest capitalized for accounting
|
(84)
|
-
|
-
|
(84)
|
||||
Silver and gold interests
|
(17,547)
|
(801)
|
-
|
(18,348)
|
||||
Other
|
(55)
|
(57)
|
-
|
(112)
|
||||
Total
|
$
|
(2,191)
|
$
|
1,249
|
$
|
-
|
$
|
(942)
|
March 31
|
December 31
|
|||
2015
|
2014
|
|||
Capital losses
|
$
|
8,947
|
$
|
8,947
|
Unrealized losses on long-term investments
|
16,132
|
15,129
|
||
Non-capital losses
|
1,933
|
-
|
||
Financing fees
|
5,044
|
-
|
||
Other
|
1,633
|
-
|
||
Total
|
$
|
33,689
|
$
|
24,076
|
20.
|
Commitments and Contingencies1
|
Silver and Gold Interests
|
Attributable Payable
Production to be
Purchased
|
Per Ounce Cash
Payment 1, 2
|
Term of
Agreement
|
Date of
Original
Contract
|
||||
Silver
|
Gold
|
Silver
|
Gold
|
|||||
San Dimas
|
100% 3
|
0%
|
$
|
4.20
|
n/a
|
Life of Mine
|
15-Oct-04
|
|
Yauliyacu
|
100% 4
|
0%
|
$
|
4.20
|
n/a
|
20 years
|
23-Mar-06
|
|
Peñasquito
|
25%
|
0%
|
$
|
4.07
|
n/a
|
Life of Mine
|
24-Jul-07
|
|
777
|
100%
|
100%/50% 5
|
$
|
5.90⁶
|
$
|
400⁶
|
Life of Mine
|
8-Aug-12
|
Salobo
|
0%
|
50%
|
n/a
|
$
|
400
|
Life of Mine
|
28-Feb-13
|
|
Sudbury
|
0%
|
70%
|
n/a
|
$
|
400
|
20 years
|
28-Feb-13
|
|
Barrick
|
||||||||
Pascua-Lama
|
25%
|
0%
|
$
|
3.90
|
n/a
|
Life of Mine
|
8-Sep-09
|
|
Lagunas Norte
|
100%
|
0%
|
$
|
3.90
|
n/a
|
8.5 years
|
8-Sep-09
|
|
Pierina
|
100%
|
0%
|
$
|
3.90
|
n/a
|
8.5 years 7
|
8-Sep-09
|
|
Veladero
|
100% 8
|
0%
|
$
|
3.90
|
n/a
|
8.5 years
|
8-Sep-09
|
|
Other
|
||||||||
Los Filos
|
100%
|
0%
|
$
|
4.24
|
n/a
|
25 years
|
15-Oct-04
|
|
Zinkgruvan
|
100%
|
0%
|
$
|
4.25
|
n/a
|
Life of Mine
|
8-Dec-04
|
|
Stratoni
|
100%
|
0%
|
$
|
4.14
|
n/a
|
Life of Mine
|
23-Apr-07
|
|
Minto
|
100%
|
100% 9
|
$
|
4.06
|
$
|
312
|
Life of Mine
|
20-Nov-08
|
Cozamin
|
100%
|
0%
|
$
|
4.24
|
n/a
|
10 years
|
4-Apr-07
|
|
Neves-Corvo
|
100%
|
0%
|
$
|
4.10
|
n/a
|
50 years
|
5-Jun-07
|
|
Aljustrel
|
100% 10
|
0%
|
$
|
4.06
|
n/a
|
50 years
|
5-Jun-07
|
|
Keno Hill
|
25%
|
0%
|
$
|
3.90¹¹
|
n/a
|
Life of Mine
|
2-Oct-08
|
|
Rosemont
|
100%
|
100%
|
$
|
3.90
|
$
|
450
|
Life of Mine
|
10-Feb-10
|
Loma de La Plata
|
12.5%
|
0%
|
$
|
4.00
|
n/a
|
Life of Mine
|
n/a 12
|
|
Constancia
|
100%
|
50% 13
|
$
|
5.90⁶
|
$
|
400⁶
|
Life of Mine
|
8-Aug-12
|
Early Deposit
|
||||||||
Toroparu
|
50% 14
|
10% 14
|
$
|
3.90
|
$
|
400
|
Life of Mine
|
11-Nov-13
|
1)
|
Subject to an annual inflationary adjustment with the exception of Loma de La Plata and Sudbury.
|
2)
|
Should the prevailing market price for silver or gold be lower than this amount, the per ounce cash payment will be reduced to the prevailing market price, with the exception of Yauliyacu.
|
3)
|
Silver Wheaton is committed to purchase from Primero a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess.
|
4)
|
To a maximum of 4.75 million ounces per annum. In the event that silver sold and delivered to Silver Wheaton in any year totals less than 4.75 million ounces, the amount sold and delivered to Silver Wheaton in subsequent years will be increased to make up for any cumulative shortfall, to the extent production permits. The cumulative shortfall as at March 23, 2015, representing the nine year anniversary, was 19.7 million ounces.
|
5)
|
The Company’s share of gold production at 777 will remain at 100% until the later of the end of 2016 or the satisfaction of a completion test relating to Hudbay’s Constancia project, after which it will be reduced to 50% for the remainder of the mine life.
|
6)
|
Subject to an increase to $9.90 per ounce of silver and $550 per ounce of gold after the initial 40 year term.
|
7)
|
As per Barrick’s disclosure, closure activities were initiated at Pierina in August 2013.
|
8)
|
Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore processed at Veladero during the period.
|
9)
|
The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
|
10)
|
Silver Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
11)
|
In June 2014, the Company amended its silver purchase agreement with Alexco to increase the production payment to be a function of the silver price at the time of delivery. In addition, the area of interest was expanded to include properties currently owned by Alexco and properties acquired by Alexco in the future which fall within a one kilometer radius of existing Alexco holdings in the Keno Hill Silver District. The amended agreement is conditional on Alexco paying Silver Wheaton $20 million by December 31, 2015.
|
12)
|
Terms of the agreement not yet finalized.
|
13)
|
Gold recoveries will be set at 55% for the Constancia deposit and 70% for the Pampacancha deposit until 265,000 ounces of gold have been delivered to the Company.
|
14)
|
During the 60 day period following the delivery of a feasibility study, environmental study and impact assessment, and other related documents (collectively, the “Feasibility Documentation”), or after December 31, 2016 if the Feasibility Documentation has not been delivered to Silver Wheaton by such date, Silver Wheaton may elect not to proceed with the precious metal purchase agreement, at which time Silver Wheaton will be entitled to a return of the amounts advanced less $2.0 million which is non-refundable or, at Sandspring’s option, the gold stream percentage will be reduced from 10% to 0.909% and the silver stream percentage will be reduced from 50% to nil. Silver Wheaton may also elect to terminate the Early Deposit Agreement upon the occurrence of certain events prior to the payment of any initial construction payment and elect to reduce the stream percentages or obtain a return of the amounts advanced less $2.0 million.
|
1
|
Statements made in this section contain forward-looking information. Please see “Cautionary Note Regarding Forward-Looking Statements” in the MD&A for material risks, assumptions and important disclosure associated with this information.
|
Obligations With Scheduled Payment Dates
|
Other Commitments
|
|||||||||||||
(in thousands)
|
2015
|
2016 - 2018
|
2019 - 2020
|
After 2020
|
Sub-Total
|
Total
|
||||||||
Bank debt 1
|
$
|
-
|
$
|
-
|
$
|
800,000
|
$
|
-
|
$
|
800,000
|
$
|
-
|
$
|
800,000
|
Interest 2
|
9,453
|
63,837
|
31,345
|
-
|
104,635
|
-
|
104,635
|
|||||||
Silver and gold interest payments 3
|
||||||||||||||
Rosemont 4
|
-
|
-
|
-
|
-
|
-
|
231,150
|
231,150
|
|||||||
Loma de La Plata
|
-
|
-
|
-
|
-
|
-
|
32,400
|
32,400
|
|||||||
Toroparu
|
2,000
|
-
|
-
|
-
|
2,000
|
138,000
|
140,000
|
|||||||
Operating leases
|
1,007
|
4,056
|
2,352
|
3,880
|
11,295
|
-
|
11,295
|
|||||||
Other
|
2,641
|
-
|
-
|
-
|
2,641
|
-
|
2,641
|
|||||||
Total contractual obligations
|
$
|
15,101
|
$
|
67,893
|
$
|
833,697
|
$
|
3,880
|
$
|
920,571
|
$
|
401,550
|
$
|
1,322,121
|
1)
|
At March 31, 2015, the Company had $800 million outstanding on the Revolving Facility.
|
2)
|
As the applicable interest rates are floating in nature, the interest charges are estimated based on market-based forward interest rate curves at the end of the reporting period.
|
3)
|
Does not reflect the contingent payment due related to the Salobo gold purchase agreement (see the Salobo section, below).
|
4)
|
Includes contingent transaction costs of $1.1 million.
|
1
|
The assessment by management of the expected impact of the CRA Audit on the Company is “forward-looking information”. Statements in respect of the impact of the CRA Audit are based on the expectation that the Company will be successful in challenging any assessment by CRA. Statements in respect of the CRA Audit are subject to known and unknown risks including that the Company’s interpretation of, or compliance with, tax laws, is found to be incorrect. Please see “Cautionary Note Regarding Forward-Looking Statements” in the MD&A for material risks, assumptions and important disclosure associated with this information.
|
21.
|
Segmented Information
|
Three Months Ended March 31, 2015
|
||||||||||||
Sales
|
Cost
of Sales
|
Depletion
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
|||||||
(in thousands)
|
||||||||||||
Silver
|
||||||||||||
San Dimas
|
$
|
32,054
|
$
|
7,985
|
$
|
1,671
|
$
|
22,398
|
$
|
24,069
|
$
|
151,280
|
Yauliyacu
|
5,289
|
1,331
|
2,059
|
1,899
|
3,958
|
185,419
|
||||||
Peñasquito
|
27,010
|
6,404
|
4,478
|
16,128
|
20,607
|
446,667
|
||||||
Barrick 1
|
10,877
|
2,527
|
2,097
|
6,253
|
8,350
|
605,783
|
||||||
Other 2
|
20,782
|
5,207
|
4,689
|
10,886
|
15,984
|
555,058
|
||||||
|
$
|
96,012
|
$
|
23,454
|
$
|
14,994
|
$
|
57,564
|
$
|
72,968
|
$
|
1,944,207
|
Gold
|
||||||||||||
777
|
$
|
7,929
|
$
|
2,651
|
$
|
5,454
|
$
|
(176)
|
$
|
5,643
|
$
|
238,459
|
Sudbury 3
|
9,682
|
3,214
|
6,759
|
(291)
|
6,053
|
577,103
|
||||||
Salobo
|
12,096
|
3,918
|
4,111
|
4,067
|
8,178
|
2,198,143
|
||||||
Other 4
|
4,785
|
1,227
|
727
|
2,831
|
3,450
|
160,914
|
||||||
|
$
|
34,492
|
$
|
11,010
|
$
|
17,051
|
$
|
6,431
|
$
|
23,324
|
$
|
3,174,619
|
Total silver and gold interests
|
$
|
130,504
|
$
|
34,464
|
$
|
32,045
|
$
|
63,995
|
$
|
96,292
|
$
|
5,118,826
|
Corporate
|
||||||||||||
General and administrative
|
$
|
(8,170)
|
||||||||||
Other
|
(6,406)
|
|||||||||||
Total corporate
|
$
|
(14,576)
|
$
|
(7,161)
|
$
|
149,248
|
||||||
Consolidated
|
$
|
130,504
|
$
|
34,464
|
$
|
32,045
|
$
|
49,419
|
$
|
89,131
|
$
|
5,268,074
|
1)
|
Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
2)
|
Comprised of the operating Los Filos, Zinkgruvan, Cozamin, Neves-Corvo, Stratoni, Minto, 777, Constancia silver interests in addition to the non-operating Keno Hill, Aljustrel, Rosemont and Loma de La Plata silver interests.
|
3)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests in addition to the non-operating Victor gold interest.
|
4)
|
Comprised of the operating Minto and Constancia gold interests and the non-operating Rosemont gold interest.
|
Three Months Ended March 31, 2014
|
||||||||||||
Sales
|
Cost
of Sales
|
Depletion
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
|||||||
(in thousands)
|
||||||||||||
Silver
|
||||||||||||
San Dimas 1
|
$
|
31,608
|
$
|
6,376
|
$
|
1,246
|
$
|
23,986
|
$
|
25,232
|
$
|
156,246
|
Yauliyacu
|
22,166
|
4,520
|
6,499
|
11,147
|
17,646
|
200,778
|
||||||
Peñasquito
|
37,562
|
7,451
|
5,479
|
24,632
|
30,111
|
466,810
|
||||||
Barrick 2
|
7,407
|
1,407
|
1,177
|
4,823
|
6,765
|
602,315
|
||||||
Other 3
|
28,001
|
5,866
|
5,584
|
16,551
|
23,288
|
670,088
|
||||||
|
$
|
126,744
|
$
|
25,620
|
$
|
19,985
|
$
|
81,139
|
$
|
103,042
|
$
|
2,096,237
|
Gold
|
||||||||||||
777
|
$
|
8,039
|
$
|
2,517
|
$
|
5,178
|
$
|
344
|
$
|
5,522
|
$
|
274,848
|
Sudbury 4
|
8,812
|
2,751
|
5,788
|
273
|
6,060
|
603,666
|
||||||
Salobo
|
13,479
|
4,224
|
4,877
|
4,378
|
9,255
|
1,317,606
|
||||||
Other 5
|
8,305
|
1,976
|
793
|
5,536
|
5,886
|
27,691
|
||||||
|
$
|
38,635
|
$
|
11,468
|
$
|
16,636
|
$
|
10,531
|
$
|
26,723
|
$
|
2,223,811
|
Total silver and gold interests
|
$
|
165,379
|
$
|
37,088
|
$
|
36,621
|
$
|
91,670
|
$
|
129,765
|
$
|
4,320,048
|
Corporate
|
||||||||||||
General and administrative
|
$
|
(10,110)
|
||||||||||
Other
|
(1,751)
|
|||||||||||
Total corporate
|
$
|
(11,861)
|
$
|
(14,933)
|
$
|
156,817
|
||||||
Consolidated
|
$
|
165,379
|
$
|
37,088
|
$
|
36,621
|
$
|
79,809
|
$
|
114,832
|
$
|
4,476,865
|
1)
|
Results for San Dimas include 375,000 ounces received from Goldcorp in connection with Goldcorp’s four year commitment, commencing August 6, 2010, to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero.
|
2)
|
Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest.
|
3)
|
Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Cozamin, Neves-Corvo, Stratoni, Minto, 777 and Aljustrel silver interests; the non-operating Rosemont, Loma de La Plata and Constancia silver interests; and the previously owned Mineral Park and Campo Morado silver interests.
|
4)
|
Comprised of the operating Coleman, Copper Cliff, Garson, Stobie, Totten and Creighton gold interests in addition to the non-operating Victor gold interest.
|
5)
|
Comprised of the operating Minto gold interest and the non-operating Rosemont and Constancia gold interests.
|
Three Months Ended March 31, 2015
|
||||||
Sales
|
Carrying Amount
|
|||||
(in thousands)
|
Silver
Interests
|
Gold
Interests
|
||||
North America
|
||||||
Canada
|
$
|
23,437
|
$
|
130,965
|
$
|
840,417
|
United States
|
-
|
433
|
-
|
|||
Mexico
|
64,635
|
608,526
|
-
|
|||
Europe
|
||||||
Greece
|
3,544
|
25,530
|
-
|
|||
Portugal
|
2,462
|
26,117
|
-
|
|||
Sweden
|
8,165
|
47,597
|
-
|
|||
South America
|
||||||
Argentina / Chile 1
|
6,058
|
611,059
|
-
|
|||
Brazil
|
12,095
|
-
|
2,198,142
|
|||
Peru
|
10,108
|
493,980
|
136,060
|
|||
Consolidated
|
$
|
130,504
|
$
|
1,944,207
|
$
|
3,174,619
|
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
|
Three Months Ended March 31, 2014
|
||||||
Sales
|
Carrying Amount
|
|||||
(in thousands)
|
Silver
Interests
|
Gold
Interests
|
||||
North America
|
||||||
Canada
|
$
|
27,483
|
$
|
138,027
|
$
|
905,949
|
United States
|
833
|
37,835
|
-
|
|||
Mexico
|
80,106
|
696,013
|
-
|
|||
Europe
|
||||||
Greece
|
2,941
|
30,911
|
-
|
|||
Portugal
|
3,608
|
30,000
|
-
|
|||
Sweden
|
7,356
|
50,412
|
-
|
|||
South America
|
||||||
Argentina / Chile 1
|
1,650
|
609,806
|
-
|
|||
Brazil
|
13,479
|
-
|
1,317,605
|
|||
Peru
|
27,923
|
503,233
|
257
|
|||
Consolidated
|
$
|
165,379
|
$
|
2,096,237
|
$
|
2,223,811
|
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
|
22.
|
Subsequent Events
|
CANADA – HEAD OFFICE
SILVER WHEATON CORP.
Park Place, Suite 3150
666 Burrard Street
Vancouver, BC V6C 2X8
Canada
T: 1 604 684 9648
F: 1 604 684 3123
CAYMAN ISLANDS OFFICE
Silver Wheaton (Caymans) Ltd.
Unit #5 - 201 Governors Square
23 Lime Tree Bay Avenue
P.O. Box 1791 George Town, Grand Cayman
Cayman Islands KY1-1109
STOCK EXCHANGE LISTING
Toronto Stock Exchange: SLW
New York Stock Exchange: SLW
DIRECTORS
LAWRENCE BELL
GEORGE BRACK
JOHN BROUGH
PETER GILLIN
CHANTAL GOSSELIN
DOUGLAS HOLTBY, CHAIRMAN
EDUARDO LUNA
WADE NESMITH
RANDY SMALLWOOD
OFFICERS
RANDY SMALLWOOD
President & Chief Executive Officer
CURT BERNARDI
Senior Vice President,
Legal & Corporate Secretary
GARY BROWN
Senior Vice President &
Chief Financial Officer
PATRICK DROUIN
Senior Vice President,
Investor Relations
HAYTHAM HODALY
Senior Vice President,
Corporate Development
|
TRANSFER AGENT
CST Trust Company
1600 - 1066 West Hastings Street
Vancouver, BC V6E 3X1
Toll-free in Canada and the United States:
1 800 387 0825
Outside of Canada and the United States:
1 416 682 3860
E: inquiries@canstockta.com
AUDITORS
Deloitte LLP
Vancouver, BC
INVESTOR RELATIONS
PATRICK DROUIN
Senior Vice President, Investor Relations
T: 1 604 684 9648
TF: 1 800 380 8687
E: info@silverwheaton.com
|
|||
Silver Wheaton® is a registered trademark of Silver Wheaton Corp. in Canada, the United States and certain other jurisdictions.
|
1.
|
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Silver Wheaton Corp. (the “issuer”) for the interim period ended March 31, 2015.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4.
|
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
|
5.
|
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
|
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
|
(i)
|
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
|
(ii)
|
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
|
(b)
|
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|
5.1
|
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2
|
N/A
|
5.3
|
N/A
|
6.
|
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2015 and ended on March 31, 2015 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
Date: |
May 7, 2015
|
/s/ Randy Smallwood
|
Name:
|
Randy Smallwood
|
Title:
|
President and Chief Executive Officer
|
1.
|
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Silver Wheaton Corp. (the “issuer”) for the interim period ended March 31, 2015.
|
2.
|
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3.
|
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4.
|
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
|
5.
|
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
|
(a)
|
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
|
(i)
|
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
|
(ii)
|
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
|
|
(b)
|
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
|
5.1
|
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2
|
N/A
|
5.3
|
N/A
|
6.
|
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2015 and ended on March 31, 2015 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
Date: |
May 7, 2015
|
/s/ Gary Brown
|
Name:
|
Gary Brown
|
Title:
|
Senior Vice President and Chief Financial Officer
|
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