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PURE PRECIOUS METALS MAY 2014
CAUTIONARY STATEMENTS
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but
are not limited to, statements with respect to the future price of silver or gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production (including 2014 and 2018 attributable annual production), costs of production, reserve determination, reserve conversion rates, statements as
to any future dividends, the ability to fund outstanding commitments and continue to acquire accretive precious metal stream interests and assessments of the impact and resolution of
various legal and tax matters. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is
expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that
certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, operations, level of activity, performance or achievements of Silver Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including but not limited to: fluctuations in the price of silver or gold; the absence of control over mining operations from which
Silver Wheaton purchases silver and gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such
operations, actual results of mining and exploration activities, environmental, economic and political risks of the jurisdictions in which the mining operations are located and changes in
project parameters as plans continue to be refined; differences in the interpretation or application of tax laws and regulations; and the Company’s interpretation of, or compliance with,
tax laws, is found to be incorrect; as well as those factors discussed in the section entitled “Description of the Business - Risk Factors” in Silver Wheaton's Annual Information Form
available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements
are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases
silver and gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their
public statements and achieve their stated production outcomes, the continuing ability to fund or obtain funding for outstanding commitments, the ability to source and obtain accretive
precious metal stream interests, expectations regarding the resolution of legal and tax matters, and such other assumptions and factors as set out herein. Although Silver Wheaton has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results
not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue
reliance on forward-looking statements and are cautioned that actual outcomes may vary. Silver Wheaton does not undertake to update any forward-looking statements that are
included or incorporated by reference herein, except in accordance with applicable securities laws.
CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES
For further information on Mineral Reserves and Mineral Resources and on Silver Wheaton more generally, readers should refer to Silver Wheaton’s Annual Information Form for the
year ended December 31, 2013, and other continuous disclosure documents filed by Silver Wheaton since January 1, 2014, available on SEDAR at www.sedar.com. Silver Wheaton’s
Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources which are not Mineral Reserves do not have demonstrated
economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: The information contained herein uses the terms
“Measured”, “Indicated” and “Inferred” Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United
States Securities and Exchange Commission does not recognize them and expressly prohibits U.S. registered companies from including such terms in their filings with the SEC. “Inferred
Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred
Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic
studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves or that any
exploration potential will ever be converted to any category of Mineral Reserves or Mineral Resources. United States investors are also cautioned not to assume that all or any part of an
Inferred Mineral Resource exists, or is economically or legally mineable. United States investors are urged to consider closely the disclosure in Silver Wheaton’s Form 40-F, a copy of
which may be obtained from Silver Wheaton or from http://www.sec.gov/edgar.shtml.
1
2
Our vision
To be the world’s premier precious metals
focused streaming company.
To provide shareholders with high quality,
long-term exposure to precious metals.
To offer mine owners an attractive
alternative to debt or equity.
Silver Wheaton makes an upfront payment in return for the right to purchase
a fixed percentage of the future silver and/or gold production from a mine
As the mine owner delivers precious metal to Silver Wheaton, an additional
delivery payment* is made to them
3
WHAT IS PRECIOUS METAL STREAMING?
Partner Mining Company
Upfront payment (Cash and/or SLW shares)
SLW receives a % of life-of-mine silver and/or gold production
*Delivery payments are typically subject to an inflationary adjustment of approximately 1% per annum after the third year of production
Delivery payment ($ per ounce)
A WIN-WIN MODEL WHY IT WORKS
4
Precious metal stream agreements create shareholder value for both the
purchaser (streamer) and the seller (traditional miner)
Precious metal produced at a traditional miner is given a lower valuation
by the market than if it had been produced by a streaming company
• Results in ‘value arbitrage’ opportunity
NP
V o
f P
recio
us M
eta
l S
tre
am
(Illu
str
ative
)
Traditional Miner Streaming
Company
Arbitrage opportunity exists
to create value for both
the Streamer and the
Partner’s shareholders
Value of Future
Precious Metal
Production
Value of Future
Precious Metal
Stream
WHO IS SILVER WHEATON?
5
27%
11%
7%
4%
4%4%
3%3%
Fresnillo Fresnillo Float CapSilver Wheaton TahoePan American First MajesticHecla HochschildCoeur Mining Silver Standard
6
INDUSTRY LEADER WORLDWIDE SENIOR SILVER PRODUCERS
*As of May 2, 2014; **Fresnillo’s float cap is only $2.6B of the total market cap of $10.3B as it is 75% owned by Peñoles according to ThomsonReuters, October 4, 2013;
***Liquidity calculated as total value in US dollars of shares traded FY 2013 on NYSE, TSX & LSE; Source:ThomsonReuters as of December 31, 2013
By Market Cap* By Liquidity***
$8.1B
$2.6B**
Float
36%
$160M / day
55%
11%
9%
7%
7%
6%
4%
0.5% 0.5%
Silver Wheaton Pan AmericanCoeur Mining First MajesticHecla FresnilloSilver Standard HocschildTahoe
46%
33%
21%
Silver Wheaton Franco-Nevada Royal Gold
63%18%
19%
Silver Wheaton Franco Nevada Royal Gold
INDUSTRY LEADER PRECIOUS METAL STREAMING / ROYALTY COMPANIES
7
By Enterprise Value* By Liquidity**
*Source: ThomsonReuters as of May 2, 2014, Royal Gold Q2 2014 Financials, Silver Wheaton & Franco Nevada FY 2013 Financials; **Liquidity calculated as total value in US
dollars of shares traded FY 2013 on NYSE, TSX & LSE; Source:ThomsonReuters as of December 31, 2013
Silver Wheaton is the largest and most liquid precious metal streaming company
$9.0B
$160M / day
66%
24%
10%
Silver Wheaton Franco Nevada Royal Gold
56%26%
19%
Silver Wheaton Franco Nevada Royal Gold
INDUSTRY LEADER PRECIOUS METAL STREAMING / ROYALTY COMPANIES
8
By Operating Cash flow FY 2013 By Earnings FY 2013
*Source: Company reports, 2013 Year End Report for Franco Nevada and Silver Wheaton, 2013 Q3 & Q4 and 2014 Q1 & Q2 10-K for Royal Gold; A $112.9M Franco Nevada
impairment charge and a $10.2M Royal Gold realized loss on available-for-sale securities is not included in Franco Nevada & Royal Gold earnings figures. Silver Wheaton
experienced no write down or loss.
Silver Wheaton generates significantly higher Cash Flow and Earnings than its peers
$534M $375M
REVENUE EXPOSURE REVENUE BREAKDOWN BY COMMODITY
9
Revenue based on Metal
*Source: Company Reports, from most recent reporting period as at March 25, 2014
Royalty / Streaming Gold / Silver Producers
Silver Wheaton generates 100% of revenue from precious metals
100%
80% 76%
96% 93% 92% 89%84%
78%71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Oil & Gas
Other
Nickel
Lead / Zinc
Copper
Precious Metals
HIGH-QUALITY ASSET BASE DIVERSIFIED PORTFOLIO
10
Well-diversified with low political risk and strong partnerships
Operating Mines (19) Development Projects (5)
Partners:
Vale
Glencore
Goldcorp
Barrick
Eldorado
Lundin
Pan American
Hudbay
Primero
Capstone
Nyrstar
Augusta
Alexco
Sandspring
Mercator
0
10
20
30
40
50
60
2010A 2011A 2012A 2013A 2014E 2018E
Pascua Lama
Toroparu
Salobo
Sudbury
777
Constancia
Rosemont
Peñasquito
San Dimas***
Yauliyacu
Zinkgruvan
Barrick (other)**
Other
FIVE YEAR PRODUCTION GROWTH STRONG GROWTH PROFILE WITH SIGNIFICANT OPTIONALITY
11
Silv
er
Eq
uiv
ale
nt P
rod
uctio
n*
(M
oz)
Production is forecast to grow ~35% to 48 Moz Ag Eq. in 2018
Pascua Lama is not in 2018 forecast but would add an additional 9Moz in its first 5 years
*Assumes a Au/Ag ratio of 60:1; **Comprised of the Veladero, Lagunas Norte and Pierina mines; ***Production includes Goldcorp ’s four year commitment from August 2010 –
2014, to deliver to Silver Wheaton 1.5Moz of Ag per annum resulting from their sale of San Dimas to Primero
5 Year Forecast Production Growth of ~35%
29.4Moz
35.8Moz ~36Moz
~48Moz ~9Moz
~1.4Moz
Optionality
2014 Forecast Production
by Cost Quartile*
2018 Forecast Production
by Cost Quartile*
12
HIGH-QUALITY ASSET BASE LOW-COST PRODUCTION
*From company reports and Wood Mackenzie estimates of July 2013 byproduct cost curves for gold, zinc, copper, nickel and silver mines
Over 90% of SLW’s production comes from assets in the lowest half of the cost curve
92%
7%
1%
80%
12%
5%3%
~35%
Production
Growth
13
In the Sandspring Agreement, only $13.5M paid initially by Silver Wheaton
*Standard condition for a stream agreement include permits, financing, security, etc. **If stream is cancelled, Silver Wheaton is entitled to a return of the deposit less $2M that is
nonrefundable. The $11.5M is payable in either cash or a prorata stream of 0.774% at Sandsrpings option. *** Based on May 2013 pre-feasibility report by Sandspring.
Early Deposit Structure: Silver Wheaton / Sandspring example
Agreement secures right to purchase 10% of life of mine gold stream from
Toroparu, an early-stage development project, for minimal upfront capital
Paid early deposit of $13.5M (~9% of predefined upfront payment)
Will advance remaining $135M if Silver Wheaton decides to proceed
If Silver Wheaton decides not to proceed, Sandspring will return $11.5M**
HIGH QUALITY ASSET BASE SANDSPRING EARLY DEPOSIT AGREEMENT
Paid
$13.5M
Early Deposit
Positive
feasibility study
received
Negative
feasibility study
received
Construction
commences
Advance
remaining $135M
upfront payment
Cancel stream
and receive
$11.5M**
Permitting
& financing*
in place?
Yes
No
Forecast attributable
production of up to
23koz gold/year***
20%
13%
12%
9%
8%
7%
6%
6%
6%
13% Peñasquito
San Dimas**
Constancia
Salobo*
Rosemont*
Yauliyacu
Sudbury*
Zinkgruvan
777*
Other*
19%
16%
12%
8%7%
7%
5%
4%
22%Peñasquito
San Dimas**
777*
Salobo*
Yauliyacu
Zinkgruvan
Sudbury*
Barrick (Other)***
Other*
14
DIVERSIFICATION BY MINE 19 PRODUCING MINES IN 2014
2014 Forecast
Production by Mine
2018 Forecast
Production by Mine
*Silver Eq. production assuming Ag:Au ratio of 60:1; **Production includes Goldcorp’s four year commitment commencing in August 2010 to deliver to Silver Wheaton 1.5Moz
of Ag per annum resulting from their sale of San Dimas to Primero; ***Comprised of the Veladero, Lagunas Norte and Pierina mines
Diversified asset base with no single asset accounting for more than 20% of production
WHY INVEST IN SILVER WHEATON?
15
SILVER WHEATON VERSUS TRADITIONAL MINERS
16
Silver Wheaton Traditional
Miners
100% Precious Metals Exposure
Fixed operating* and capital costs
No exploration costs but exploration upside
Highly diverse asset base Sustainable dividend at
all commodity prices
*Ongoing delivery payments are fixed at approximately US$4/oz with an inflationary adjustment of approximately 1% per annum after the third year of production
Strong upside with downside protection
SILVER WHEATON VERSUS TRADITIONAL MINERS FIXED OPERATING AND CAPITAL COSTS
17
*Total cash costs for silver only. Refer to non-IRFS measures at the end of this presentation; **Operating costs are fixed at approximately US$4/oz with an inflationary
adjustment of approximately 1% per annum after the third year of production; ***2014 & 2018 expected cash costs are calculations based on existing agreements contributing to
2014 & 2018 production forecasts
Cash Operating Margins* Total Cash Cost/oz*
Fixed cash costs** provide for industry leading margin and free cash flow
$7.30 $7.31
$11.72$13.42
$14.97 $15.02
$20.75
$34.60
$31.03
$23.86
$3.90 $3.90 $3.90 $3.91 $3.94 $3.97 $3.97 $3.99 $4.06 $4.12 $4.15 $4.39 $0
$5
$10
$15
$20
$25
$30
$35
$40
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E*** 2018E***
Silv
er
Price
(U
S$
/oz)
SILVER WHEATON VERSUS ETF / BULLION
18
Silver Wheaton ETF/Bullion
100% Precious Metals Exposure
Leverage to Commodity Price
Exploration and Expansion
Acquisition Growth Potential
Dividend Yield
Silver Wheaton provides much more than precious metals exposure
43%56%
192%
256%
0%
50%
100%
150%
200%
250%
300%
Gold Price* Silver Price* Silver Wheaton SharePrice*
Cash Flow/Share**
SILVER WHEATON VERSUS ETF / BULLION LEVERAGE TO PRECIOUS METAL PRICES
19
*Source: ThomsonOne May 2, 2014 – May 1, 2009; **2014 Q1 – 2009 Q1, Refer to non-IRFS measures at the end of this presentation
Five year growth
$33.20/share
SILVER WHEATON VERSUS ETF / BULLION EXPANSION AND GROWTH THROUGH ACCRETIVE ACQUISITIONS
20
Total attributable silver equivalent reserves and resources per share since inception*
Reserves Measured & Indicated Inferred
*From Dec. 31, 2004 to Dec. 31, 2013, Reserves and Resources are as of Dec. 31 for each year (see Silverwheaton.com); **Current reserves and resources include reserves
and resources updated to Dec 31 2013
Significant growth in reserves and resources per share since inception
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Silv
er
Eq o
z/s
hare
0
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Silv
er
Price
(U
S$
/ o
z.)
Spot Silver Price Analyst Consensus LT Silver Price
21
SILVER WHEATON VERSUS ETF / BULLION
ACQUISITION GROWTH POTENTIAL - FAVORABLE ENVIRONMENT
Spot Silver Prices vs. Long-term Analyst Consensus
Luismin
Zinkgruvan
Yauliyacu
Peñasquito
Stratoni
Barrick
Keno
Hill
Mineral Park
Campo Morado Rosemont
Silverstone
Hudbay
Transactions have typically occurred when long-term
analyst consensus silver prices are approximately 75% of spot silver prices
Vale*
*Gold only stream; **Early Deposit structure
Constancia*
Toroparu**
SILVER WHEATON VERSUS ETF / BULLION
STRONG BALANCE SHEET FOR FUTURE GROWTH
22
*Silver Wheaton has extended the term of the NRT loan by one year to May 28, 2017; **Operating cash flow based on projected production of 36Moz AgEq and silver price of
$20 and gold price of $1200; ***Includes one final payment to Hudbay of US$135M (which can be made in cash of SLW shares) once $1.35B has been spent on Constancia for
the Gold stream and US$230M for the Rosemont transaction contingent upon receipt of key operating permits and commitments of financing (does note include US$32.4M for
the Navidad transaction)
Forecasted operating cash flow more than offsets capital commitments,
leaving over $900 million in available capacity for growth
Au
gu
sta
’s
Ro
se
mo
nt
$1B Non-Revolving
Term Loan
Fully Drawn*
$1B Revolving
Credit Facility
5-year term
Projected
12-month
Op. Cash Flow
Capital
Commitments
of $365M
>$900M Capacity
Balance Sheet as of March 31st, 2014
Hudbay A
u
**
***
>$80M in Cash
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
2011 2012 2013 2014 YTD
23
*The declaration and payment of dividends remains at the discretion of the Board and will depend on the Company’s cash requirements, future prospects and other factors deemed
relevant by the Board; **In respect of Treasury Acquisitions under the DRIP, the Company can issue the common shares at a discount of up to 5% of the Average Market Price, as
defined in the DRIP, but has no obligation to issue with any discount
DIVIDEND YIELD - UNIQUE AND SUSTAINABLE DIVIDEND REINVESTMENT PROGRAM ADOPTED
Unique Dividend Policy: Dividends linked to operating cash flows
whereby 20% of the average of the previous four quarter’s operating cash
flows are distributed to shareholders*
Dividend Reinvestment Program (DRIP): Adopted for 2nd 2014 dividend
• The Company can issue common shares at a discount of up to 5%**
Benefits: • Direct Silver Price Exposure
• Participation in Sector-Leading Production Growth
• Sustainable
• Flexible
$0.18
$0.35
$0.45
$0.14
24
IF YOU LIKE PRECIOUS METALS….
SILVER WHEATON PROVIDES:
Cost certainty
Leverage to increasing silver prices
High quality asset base
Exceptional growth profile
Dividend yield
AND REMAINS STRATEGICALLY POSITIONED FOR FURTHER GROWTH.
INVESTOR RELATIONS Tel: 604-684-9648
Toll Free: 1-800-380-8687
Email: [email protected]
TRANSFER AGENT CST Trust Company
Toll Free: 1-800-387-0825
Email: [email protected]
NYSE: SLW TSX: SLW
www.silverwheaton.com
25
APPENDIX
26
27
HIGH QUALITY ASSET BASE CURRENT CORNERSTONE ASSETS
*Source: Company Reports
San Dimas: Acquired in 2004
Average production 5+ Moz silver
Phase 1 mill expansion to 2,500 tpd completed in Q1
Phase 2 Scoping Study to review 2,750 & 3,000 tpd alternatives
80,000 meters of drilling planned for 2014 – targeting high grade corridor
Stream: 100% of the first 3.5Moz of silver plus 50% thereafter plus 1.5Moz
from Goldcorp until August 2014 after which 100% of silver up to 6Moz
plus 50% thereafter. Life of mine.
Peñasquito: Acquired in 2007
Mining in the higher grade portion of the pit to continue through 2014
Exploration success with copper-gold skarn
Throughput 110k tpd in 2014 to 115k tpd in 2015 and beyond
Northern Well Field project, designed to increase water availability (25
new production wells) expected to be operational mid-year 2015
Positive study results regarding additional copper & pyrite concentrates
Average production 5.5 – 6.25 Moz. Life of mine.
Salobo and Sudbury: Acquired in 2013
Salobo I ramping-up initial (12 mtpa) line, ~85% of nominal capacity
Salobo II, 12mtpa (24mtpa total) expansion at 97% of physical progress –
expected to come on stream below budget in H1 2014
At Sudbury, Totten mine began operating Q1 2014
Average production: Salobo: 45koz Au (2013-2015), 60koz (30yr avg.)
Sudbury: 30koz Au (2013-2015), 50koz (20yr avg.)
28
HIGH QUALITY ASSET BASE DEVELOPMENT ASSETS
*Source: Company Reports
Pascua Lama: Acquired in 2009
Temporarily suspended construction activities except environmental work
Ramp down carried out in a way that allows for an efficient re-start
Extended completion test deadline to Dec 31, 2017
Extended production from other South American mines to Dec 31, 2016
Average production ~9 Moz Ag for 1st 5 years.
Stream: 25% of silver. Life of mine
Constancia: Acquired in 2012 – Expanded to include gold November 2013
Approx. 71% complete, $1.2B of $1.7B total CAPEX spent at end of Q1
Pre-stripping activities commenced on schedule in March
Power transmission line construction is forecast to be complete Q3
Initial production expected late 2014, commercial production Q2 2015
Reserve increase of 12Moz Ag & 70koz Au to 61Moz Ag & 560koz Au
Average production 2.4Moz Ag & 35koz Au (2015-2019)
Stream: 100% of silver. 50% of gold. Life of mine
Rosemont: Acquired in 2010
US Forest Service has completed the Environmental Impact Statement
ROD expected by Augusta in mid-2014
Only 404 water permit outstanding
2 year construction schedule
Average production 2.9Moz Ag / 15koz Au starting in 2016
Stream: 100% of silver and gold. Life of mine
STENGHTENING PARTNERSHIPS CSR PROGRAM FOCUSSES ON COMMUNITIES NEAR PARTNER’S MINES
PARTNER CSR PROJECTS:
First streaming / royalty company to focus support on actual mining communities
• Funding given to Partners to focus on giving back to local communities in which mines are located
Recently funded first partner initiative with Barrick Gold
• Addresses vital need to conserve water for purpose of irrigating crops in San Juan, Argentina
Other partner initiatives will be implemented going forward
29
0.40%
0.50%
0.30%
0.49%
0.56%
0.45%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Silver Wheaton iShares Silver Trust(SLV)
ETFS PhysicalSilver - New York
(SIVR)
ETFS PhysicalSilver - London
(PHAG)
Sprott PhysicalSilver Trust (PSLV)
Bullion Storage Fee(Industrial quantity)
30
SILVER WHEATON VERSUS ETF / BULLION ALL THE ADVANTAGES AND A LOW COST
Administrative Costs
SLW administrative costs are competitive compared to ETF and Bullion storage fees
1) Presented as a % of Enterprise Value for SLW; as a % of NAV for SLV, SIVR and PSLV; as a % of Bullion held in custody for PHAG; 2) 2013 G&A of $35.8M / Enterprise
Value of $9.0B per Thomson as of May 2, 2014; 3) As reported in May 10-13 10Q; 4) As reported in Oct-31-12 fact sheet; 5) As reported in Dec-31-11 Report to Unit Holders.
Management fee of 0.45% + operating expense of 0.15% of NAV. 2011 operating expense of $1.67 million / NAV of $1.5B as of Sep-28-12; 6) Approx. industry average as per
ScotiaMocatta for $10M minimum storage amount.
2
3
3 4
5 6
1
31
THE PROOF… IS IN THE PRICE PERFORMANCE
SLW
*Source: ThomsonOne, as of May 2, 2014; **Na Ag, North American senior silver producer average, includes: CDE, HL, FR-T, PAAS & SSRI
Silver
NA Ag**
PHLX
SLW’s share price has significantly outperformed the price of silver, its silver producing
peer group, and the Philadelphia Gold & Silver Index since the Company’s inception
-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
Oct-
04
Feb-0
5
Jun-0
5
Oct-
05
Feb-0
6
Jun-0
6
Oct-
06
Feb-0
7
Jun-0
7
Oct-
07
Feb-0
8
Jun-0
8
Oct-
08
Feb-0
9
Jun-0
9
Oct-
09
Feb-1
0
Jun-1
0
Oct-
10
Feb-1
1
Jun-1
1
Oct-
11
Feb-1
2
Jun-1
2
Oct-
12
Feb-1
3
Jun-1
3
Oct-
13
Feb-1
4
32
LIQUID STOCK CAPITAL STRUCTURE AS OF MARCH 31, 2014
Shares Outstanding 357.4 million
Warrants Outstanding (in-the-money) 0.0 million
Options Outstanding (in-the-money) 0.8 million
Shares Fully Diluted 358.2 million
3 Month Average Daily Trading Volume:
TSX: 1.2 million shares
NYSE: 4.3 million shares
33
COMPANY ACQUISITION HISTORY TIMELINE
2004 2005 2006 2007 2008 2009 2010 2011 2012
Date of Contract: 10/15/2004
Current Owner: Primero Mining
Upfront Payment: $190 million
Term of Agreement: LOM
Attr. Production: 100% Silver
San Dimas (Mexico)
Date of Contract: 12/8/2004
Current Owner: Lundin Mining
Upfront Payment: $78 million
Term of Agreement: LOM
Attr. Production: 100% Silver
Zinkgruvan (Sweden)
Date of Contract: 3/23/2006
Current Owner: Glencore
Upfront Payment: $285 million
Term of Agreement: 20 years
Attr. Production: 100% Silver
Yauliyacu (Peru)
Date of Contract: 4/23/2007
Current Owner: Eldorado Gold
Upfront Payment: $58 million
Term of Agreement: LOM
Attr. Production: 100% Silver
Stratoni (Greece)
Date of Contract: 7/24/2007
Current Owner: Goldcorp
Upfront Payment: $485 million
Term of Agreement: LOM
Attr. Production: 25% Silver
Peñasquito (Mexico)
Date of Contract: 3/17/2008
Current Owner: Mercator Minerals
Upfront Payment: $42 million
Term of Agreement: LOM
Attr. Production: 100% Silver
Mineral Park (United States)
Date of Contract: 5/13/2008
Current Owner: Nyrstar NV
Upfront Payment: $79 million
Term of Agreement: LOM
Attr. Production: 75% Silver
Campo Morado (Mexico)
Date of Contract: 10/2/2008
Current Owner: Alexco
Upfront Payment: $50 million
Term of Agreement: LOM
Attr. Production: 25% Silver
Keno Hill (Canada)
Date of Contract: 10/15/2004
Current Owner: Goldcorp
Upfront Payment: $4 million
Term of Agreement: 25 years
Attr. Production: 100% Silver
Los Filos (Mexico)
Date of Contract: 2/11/2010
Current Owner: Augusta Resources
Upfront Payment: $230 million
Term of Agreement: LOM
Attr. Production: 100% Silver
100% Gold
Rosemont (United States)
Date of Contract: 8/8/2012 & 11/4/2013
Current Owner: Hudbay
Upfront Payment: $430 million
Term of Agreement: LOM
Attr. Production: 100% Silver
50% Gold
Constancia (Peru)
Date of Contract: 8/8/2012
Current Owner: Hudbay
Upfront Payment: $455 million
Term of Agreement: LOM
Attr. Production: 100% Silver
100% / 50% Gold*
777 (Canada)
Date of Transaction: 5/21/2009
Interests Acquired: (mine / owner / location)
Minto Capstone Mining Canada
Cozamin Capstone Mining Mexico
Neves-Corvo Lundin Mining Portugal
Aljustrel I’M SGPA Portugal
Silverstone Resources
Date of Contract: 9/8/2009
Current Owner: Barrick
Upfront Payment: $625 million
Term of Agreement: LOM
Attr. Production: 25% Silver
Additional Consideration: (mine / location)
Lagunas Norte Peru
Pierina Peru
Veladero Argentina
Pascua-Lama (Chile / Argentina)
10/22/2004: Silver Wheaton began
trading on the TSX under the symbol
SLW. In December, the Company’s
name was changed from Chap
Mercantile Inc. to Silver Wheaton Corp.
and the outstanding shares were
consolidated on a
5 for 1 basis.
Note: Upfront payment denoted in US$ millions; excludes closing costs and capitalized interest, where applicable
*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 its 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; **Early Deposit structure
Date of Contract: 2/28/2013
Current Owner: Vale
Upfront Payment: $1.33 billion
Term of Agreement: LOM
Attr. Production: 25% Gold
Salobo (Brazil)
Date of Contract: 2/28/2013
Current Owner: Vale
Upfront Payment: $570 million
Term of Agreement: 20 years
Attr. Production: 70% Gold
Additional Consideration:
10 million SLW warrants w/$65 strike
& 10yr term
Sudbury (Canada)
2013 2014
Date of Contract: 11/11/2013
Current Owner: Sandspring Resources
Upfront Payment: $148.5 million
Term of Agreement: LOM
Attr. Production: 10% Gold
Early Deposit: $13.5 million
Toroparu (Guyana)**
NON-IFRS MEASURES
34
Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) operating cash flow per
share (basic and diluted); (ii) average cash costs of silver and gold on a per ounce basis; and (iii) cash operating margin.
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.
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more detailed information,
please refer to Silver Wheaton’s Management Discussion and Analysis available on the Company’s website at www.silverwheaton.com
and posted on SEDAR at www.sedar.com.