Record Silver Equivalent Production and Sales Volume During the Second Quarter of 2015
FOR IMMEDIATE RELEASE TSX: SLW August 11, 2015 NYSE: SLW
RECORD SILVER EQUIVALENT PRODUCTION AND SALES VOLUME DURING THE SECOND QUARTER OF 2015
Vancouver, British Columbia – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX:SLW) (NYSE:SLW) is pleased to announce its unaudited results for the second quarter ended June 30, 2015. All figures are presented in United States dollars unless otherwise noted.
SECOND QUARTER HIGHLIGHTS
- Record attributable silver equivalent production in Q2 2015 of 10.9 million ounces (7.2 million ounces of silver and 50,500 ounces of gold), compared with 8.5 million ounces in Q2 2014, representing an increase of 29%.
- Record silver equivalent sales volume in Q2 2015 of 10.0 million ounces (5.6 million ounces of silver and 61,000 ounces of gold), compared with 7.5 million ounces in Q2 2014, representing an increase of 34%.
- During the three month period ending June 30, 2015, payable silver equivalent ounces attributable to the Company produced but not yet delivered were virtually unchanged at approximately 6.5 million ounces.
- Revenues of $164.4 million in Q2 2015 compared with $148.6 million in Q2 2014, representing an increase of 11%.
- Average realized sale price per silver equivalent ounce sold in Q2 2015 of $16.38 ($16.42 per ounce of silver and $1,195 per ounce of gold), compared with $19.83 in Q2 2014, representing a decrease of 17%.
- Net earnings of $53.7 million ($0.13 per share) in Q2 2015 compared with $63.5 million ($0.18 per share) in Q2 2014, representing a decrease of 15%.1
Operating cash flows of $109.3 million ($0.27 per share¹) in Q2 2015 compared with $102.5 million ($0.29 per share¹) in Q2 2014, representing an increase of 7%.2
- Cash operating margin¹ in Q2 2015 of $11.62 per silver equivalent ounce compared with $15.11 in Q2 2014, representing a decrease of 23%.
- Average cash costs¹ in Q2 2015 were $4.26 and $395 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs¹ increased to $4.76 compared with $4.72 in Q2 2014.
1 Please refer to non-IFRS measures at the end of this press release.
2 On a per share basis, operating cash flow decreased as a result of the increase in common shares in the first
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- Declared quarterly dividend of $0.05 per common share.
- Hudbay Minerals Inc.’s (“Hudbay”) Constancia mine in Peru achieved commercial production on April 30, 2015.
- Events Subsequent to the Quarter
- On July 6, 2015, Silver Wheaton received a proposal letter (the “Proposal”) from the Canada Revenue Agency (the “CRA”) proposing to reassess the Company under various rules contained in the Income Tax Act (Canada).
“Production hit record levels for a second straight quarter, as Silver Wheaton produced nearly 11 million silver equivalent ounces in the second quarter of 2015. To provide some context, in the first half of 2015 we produced over 21 million silver equivalent ounces, whereas in 2011 the Company produced just over 25 million ounces for the whole year. Adding to the production growth, in the second quarter of 2015 we also saw record sales volumes of ten million silver equivalent ounces. We are proud to be delivering on our 2015 production growth guidance of over 20% and reiterate that this growth is fully-funded,” said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. “Events subsequent to the quarter, including the selloff in the precious metals markets and the receipt of the Proposal from the CRA, have been unfortunate; however, we remain confident in our business structure and will defend our tax filing positions vigorously. We do not anticipate any changes to our business operations, and we look forward to continued production growth in the second half of this year. Furthermore, we currently see a robust pipeline of very high quality corporate development opportunities.”
Financial Review
Revenues
Revenue was $164.4 million in the second quarter of 2015, on silver equivalent sales of 10.0 million ounces (5.6 million ounces of silver and 61,000 ounces of gold). This represents an 11% increase from the $148.6 million of revenue generated in the second quarter of 2014 due primarily to a 34% increase in the number of silver equivalent ounces sold, partially offset by a 17% decrease in the average realized silver equivalent price ($16.38 in Q2 2015 compared with $19.83 in Q2 2014).
Costs and Expenses
Average cash costs¹ in the second quarter of 2015 were $4.76 per silver equivalent ounce as compared with $4.72 during the comparable period of 2014. This resulted in a cash operating margin¹ of $11.62 per silver equivalent ounce, a reduction of 23% as compared with Q2 2014. The decrease in the cash operating margin was primarily due to a 17% decrease in the average realized silver equivalent price in Q2 2015 compared with Q2 2014.1
Earnings and Operating Cash Flows
Net earnings and cash flow from operations in the second quarter of 2015 were $53.7 million ($0.13 per share) and $109.3 million ($0.27 per share¹), compared with $63.5 million ($0.18 per share) and $102.5 million ($0.29 per share¹) for the same period in
1 Please refer to non-IFRS measures at the end of this press release.
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2014, a decrease of 15% and an increase of 7%, respectively.1 Earnings and cash flow continued to be impacted by lower gold and silver prices.
Balance Sheet
At June 30, 2015, the Company had approximately $72 million of cash on hand and $715 million outstanding under the Company's $2 billion revolving term loan.
CRA Audit Update
On July 6, 2015, the Company announced that it had received a Proposal letter from the CRA in which the CRA is proposing to reassess Silver Wheaton under various rules contained in the Income Tax Act (Canada). The Proposal outlines CRA's position that the transfer pricing provisions of the Income Tax Act (Canada) relating to income earned by the Company’s foreign subsidiaries outside of Canada should apply such that the income of Silver Wheaton subject to tax in Canada should be increased for the 2005 to 2010 taxation years (the "Relevant Taxation Years") by approximately Cdn$715 million, which represents substantially all of the income of the Company's foreign subsidiaries. This amount represents a potential income inclusion and does not reflect the resultant tax liability. If Silver Wheaton is reassessed, the Company currently estimates on a preliminary basis that this would result in federal and provincial tax of approximately Cdn$190 million. The Proposal also indicates that the CRA is seeking to apply transfer pricing penalties of approximately Cdn$72 million in respect of the Relevant Taxation Years. The Proposal does not indicate the amount of interest or other penalties in respect of the Relevant Taxation Years. The issuance of the Proposal does not require the Company to pay any amount to the CRA at this time. If Silver Wheaton receives a notice of reassessment, Silver Wheaton intends to file a notice of objection and would be required to pay 50% of the reassessed amount of tax, interest and penalties. Management believes that the Company has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, and as a result no amounts have been recorded for any potential liability arising from this matter (including other penalties and interest). Silver Wheaton intends to vigorously defend its tax filing positions.
Second Quarter Asset Highlights
During the second quarter of 2015, attributable silver equivalent production was 10.9 million ounces (7.2 million ounces of silver and 50,500 ounces of gold), representing an increase of 29% compared with the second quarter of 2014.
Operational highlights for the quarter ended June 30, 2015, are as follows:
Salobo
In the second quarter of 2015, Salobo produced 27,805 ounces of gold attributable to Silver Wheaton, an increase of approximately 230% relative to the second quarter of 2014. This increase was primarily due to the doubling of the percentage of gold that Silver Wheaton is entitled to and the increased throughput as a result of the expansion to 24 million tonnes per annum (“Mtpa”) which commenced production in mid-2014.
1 On a per share basis, operating cash flow decreased as a result of the increase in common shares in the first
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Constancia
As disclosed in Hudbay’s second quarter of 2015 MD&A, the Constancia mine achieved commercial production on April 30, 2015. Attributable production to Silver Wheaton from Constancia in the second quarter was approximately 0.6 million ounces of silver and 3,510 ounces of gold. Hudbay also reported that ocean shipments began in April 2015 and that the mine and concentrator are currently operating at or above design capacity.
Hudbay reports that during the second quarter, shipments of concentrate from the Constancia mine to the port in Matarani, Peru were constrained by several factors including truck availability, protests (unrelated to Constancia) along the lower part of the trucking route, and road refurbishment activities along the route that increased cycle times for concentrate trucks. According to Hudbay, steps have been taken to increase the size of the trucking fleet, and the excess inventory is expected to be drawn down over the second half of 2015.
Peñasquito
In the second quarter of 2015, the Peñasquito mine produced 1.9 million ounces of silver attributable to Silver Wheaton, a decrease of approximately 6% relative to the record second quarter of 2014 due to lower grades being mined. As disclosed in Goldcorp Inc.’s (“Goldcorp”) second quarter of 2015 MD&A, progress on the construction of the Northern Well Field ("NWF") project was limited due to continued social issues with local communities. According to Goldcorp, the remaining NWF work is on hold until a fair resolution of the issues is reached with the communities; however, contingency plans remain in place for a fresh water supply to Peñasquito until the NWF is fully operational. It was also reported that the Metallurgical Enhancement Project ("MEP") continues to demonstrate the potential to significantly enhance the overall economics and mine life of Peñasquito, and that during the quarter, the pilot plant construction was completed and pilot plant testing commenced. MEP permit applications were submitted in May 2015 and the feasibility study remains on track for completion in early 2016.
San Dimas
In the second quarter of 2015, attributable production from San Dimas was 1.8 million ounces of silver, an increase of approximately 60% relative to the second quarter of 2014. This was primarily due to increased production as a result of the expansion to 2,500 tonnes per day (“tpd”) which was completed early in 2014 and to the sharing threshold increasing to 6 million ounces1, partially offset by the cessation of Goldcorp's four-year obligation to deliver 1.5 million ounces of silver to the Company on August 6, 2014. As per Primero Mining Corp.’s (“Primero”) second quarter MD&A, the San Dimas mill averaged 2,816 tpd in the second quarter, and the expansion of the San Dimas
1 On August 6, 2010, Goldcorp completed the sale of the San Dimas mine to Primero. In conjunction with the sale, Silver Wheaton amended its silver purchase agreement such that during the first four years following the closing of the transaction, 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, and Silver Wheaton received an additional 1.5 million ounces of silver per annum that was delivered by Goldcorp. Beginning on August 6, 2014, Primero delivers 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, and Goldcorp's obligation to deliver supplemental silver ceased. In the prior year, the San Dimas mine reached the previous sharing threshold of 3.5 million ounces of silver on March 13, 2014.
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mine and mill from 2,500 tpd to 3,000 tpd is ahead of its originally planned completion of mid-2016 and now expected to be completed in April 2016 following the completion of the tailings filter system.
As per Primero’s July 20, 2015, news release, drilling results through the end of June 2015 have increased the Jessica vein’s known extent to approximately 300 meters of strike length and 300 meters of dip, and remains open laterally for 1.7 kilometers between two major faults. The Jessica vein was not included in Primero’s year-end 2014 reserve and resource estimation, but has since been included in its 2015 mine plan and is expected to provide approximately 5% of San Dimas' total mill feed in 2015. According to Primero, based on the full drill results through the end of June 2015, the Company expects to replace its estimated full-year 2015 production.
As at June 30, 2015, approximately 0.8 million ounces of cumulative payable silver ounces have been produced at San Dimas but not yet delivered to the Company, representing an increase of 0.5 million payable silver ounces during the second quarter of 2015. As reported by Primero on July 6, 2015, silver deliveries had been delayed due to the suspension of Primero's import and export licenses in May 2015 by the Mexican customs authorities due to a discrepancy over Primero's address related to its corporate office relocation from Mexico City to Durango, Mexico. As per Primero’s August 6, 2015, news release, the import and export license has been reinstated and normal course imports and exports have resumed, including the commencement of sales of all inventoried silver.
Barrick
In the second quarter of 2015, attributable silver production from Barrick was 0.6 million ounces, an increase of approximately 104% relative to the second quarter of 2014, primarily due to higher grades at the Veladero mine and higher recoveries at the Lagunas Norte mine.
In the second quarter of 2015, attributable gold production from Hudbay’s 777 mine was 6,668 ounces, a decrease of approximately 43% relative to the second quarter of 2014 primarily due to lower throughput and grades.
Produced But Not Yet Delivered 1
As at June 30, 2015, payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners amounted to approximately 6.5 million silver equivalent payable ounces virtually unchanged from the balance at March 31, 2015, as increases at San Dimas and Peñasquito were largely offset by decreases at Salobo and Sudbury. Payable ounces produced but not yet delivered to Silver Wheaton are expected to average approximately two to three months of annualized production but may vary from quarter to quarter due to a number of mining operation factors including mine ramp-up, delays in shipments, and so forth.
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.
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Detailed mine by mine production and sales figures can be found in the Appendix to this press release and in Silver Wheaton’s MD&A in the ‘Results of Operations and Operational Review’ section.
Webcast and Conference Call Details
A conference call will be held Wednesday, August 12, 2015, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call, please use one of the following methods:
Dial toll free from Canada or the US: 888-231-8191 Dial from outside Canada or the US: 647-427-7450 Pass code: 84883183 Live audio webcast: www.silverwheaton.com
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until August 19, 2015. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 855-859-2056 Dial from outside Canada or the US: 416-849-0833 Pass code: 84883183 Archived audio webcast: www.silverwheaton.com
This earnings release should be read in conjunction with Silver Wheaton’s MD&A and unaudited Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.
Mr. Neil Burns, Vice President, Technical Services for Silver Wheaton, is a “qualified person” as such term is defined under National Instrument 43-101, and has reviewed and approved the information on mineral reserves and mineral resources disclosed in this news release.
About Silver Wheaton
Silver Wheaton is the largest pure precious metals streaming company in the world. Based upon its current agreements, forecast 2015 estimated annual attributable production is approximately 43.5 million silver equivalent ounces1, including 230,000 ounces of gold. By 2019, estimated annual attributable production is anticipated to increase significantly to approximately 51 million silver equivalent ounces1, including 325,000 ounces of gold. This anticipated growth is expected to be driven by the Company’s portfolio of low-cost and longlife assets, including gold and precious metal streams on Vale’s Salobo mine and Hudbay’s Constancia mine.
1 Silver equivalent production forecast assumes a gold/silver ratio of 72:1
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Condensed Interim Consolidated Statement of Earnings
Three Months Ended Six Months Ended June 30 June 30
| (US dollars and shares in thousands, except per share amounts - unaudited) | 2014 | 2014 | ||||||
| 2015 | 2015 | |||||||
| Sales | $ 148,570 | $ 313,949 | ||||||
| $ | 164,435 | $ | 294,939 | |||||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 35,368 38,514 | $ 72,456 75,136 | ||||||
| $ | 47,795 | $ | 82,259 | |||||
| 53,327 | 85,372 | |||||||
| Total cost of sales | $ 73,882 | $ 147,592 | ||||||
| $ | 101,122 | $ | 167,631 | |||||
| Earnings from operations | $ 74,688 | $ 166,357 | ||||||
| $ | 63,313 | $ | 127,308 | |||||
| Expenses and other income General and administrative 1 Interest expense Other expense | $ 10,375 591 1,080 | $ 20,485 1,699 1,708 | ||||||
| $ | 7,886 | $ | 16,056 | |||||
| 798 | 2,298 | |||||||
| 992 | 2,916 | |||||||
| $ 12,046 | $ 23,892 | |||||||
| $ | 9,676 | $ | 21,270 | |||||
| Earnings before income taxes Income tax recovery (expense) | $ 62,642 850 | $ 142,465 836 | ||||||
| $ | 53,637 | $ | 106,038 | |||||
| 89 | (2,893) | |||||||
| Net earnings | $ 63,492 | $ 143,301 | ||||||
| $ | 53,726 | $ | 103,145 | |||||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ 0.18 $ 0.18 357,655 358,097 | $ 0.40 $ 0.40 357,453 357,945 | ||||||
| $ | 0.13 | $ | 0.27 | |||||
| $ | 0.13 | $ | 0.27 | |||||
| 404,138 | 387,464 | |||||||
| 404,308 | 387,672 | |||||||
| 1) Equity settled stock based compensation (a non-cash item) included in general and administrative expenses. | 1,420 | 2,034 | 3,341 | 4,216 | ||||
| $ | $ | $ | $ |
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Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | June 30 | December 31 2014 | |
|---|---|---|---|
| 2015 | |||
| Assets Current assets Cash and cash equivalents Accounts receivable Other | $ 308,098 4,132 26,263 | ||
| $ | 71,892 | ||
| 2,234 | |||
| 2,071 | |||
| Total current assets | $ 338,493 | ||
| $ | 76,197 | ||
| Non-current assets Silver and gold interests Early deposit - gold interest Royalty interest Long-term investments Other | $ 4,248,265 13,599 9,107 32,872 5,427 | ||
| $ | 5,067,975 | ||
| 14,717 | |||
| 9,107 | |||
| 24,717 | |||
| 10,658 | |||
| Total non-current assets | $ 4,309,270 | ||
| $ | 5,127,174 | ||
| Total assets | $ 4,647,763 | ||
| $ | 5,203,371 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current portion of performance share units | $ 14,798 1,373 | ||
| $ | 15,946 | ||
| 2,211 | |||
| Total current liabilities | $ 16,171 | ||
| $ | 18,157 | ||
| Non-current liabilities Bank debt Deferred income taxes Performance share units | $ 998,518 942 3,396 | ||
| $ | 715,000 | ||
| 136 | |||
| 2,379 | |||
| Total non-current liabilities | $ 1,002,856 | ||
| $ | 717,515 | ||
| Total liabilities | $ 1,019,027 | ||
| $ | 735,672 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 2,037,923 (28,841) 1,619,654 | ||
| $ | 2,821,029 | ||
| (21,075) | |||
| 1,667,745 | |||
| Total shareholders' equity | $ 3,628,736 | ||
| $ | 4,467,699 | ||
| Total liabilities and shareholders' equity | $ 4,647,763 | ||
| $ | 5,203,371 |
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Condensed Interim Consolidated Statement of Cash Flows
Three Months Ended Six Months Ended June 30 June 30
| (US dollars in thousands - unaudited) | 2014 | 2014 | ||||
| 2015 | 2015 | |||||
| Operating activities Net earnings Adjustments for Depreciation and depletion Amortization of credit facility origination fees: Interest expense Amortization of credit facility origination fees - undrawn facilities Write off of credit facility origination fees upon repayment of NRT Loan Interest expense Equity settled stock based compensation Performance share units Deferred income tax expense (recovery) Investment income recognized in net earnings Other Change in non-cash working capital | $ 63,492 38,580 35 257 - 556 2,034 1,349 (907) (74) 32 (2,253) | $ 143,301 75,268 90 508 - 1,609 4,216 1,496 (947) (159) (46) (6,385) | ||||
| $ | 53,726 | $ | 103,145 | |||
| 53,448 | 85,590 | |||||
| 138 | 251 | |||||
| 225 | 474 | |||||
| - | 1,315 | |||||
| 660 | 2,047 | |||||
| 1,420 | 3,341 | |||||
| (684) | 98 | |||||
| (130) | 2,806 | |||||
| (39) | (171) | |||||
| (162) | (200) | |||||
| 1,432 | 1,582 | |||||
| Cash generated from operations Interest paid - expensed Interest received | $ | 110,034 | $ 103,101 (575) 17 | $ | 200,278 | $ 218,951 (1,621) 45 |
| (758) | (1,946) | |||||
| 16 | 91 | |||||
| Cash generated from operating activities | $ 102,543 | $ 217,375 | ||||
| $ | 109,292 | $ | 198,423 | |||
| Financing activities Bank debt repaid Bank debt drawn Credit facility origination fees Shares issued Share issue costs Share purchase options exercised Dividends paid | $ - - (19) - - 3,683 (44,792) | $ - - (619) - - 3,696 (44,792) | ||||
| $ | (85,000) | $ | (1,085,000) | |||
| - | 800,000 | |||||
| (129) | (4,241) | |||||
| - | 800,000 | |||||
| (1,045) | (31,389) | |||||
| - | 2,887 | |||||
| (34,444) | (34,444) | |||||
| Cash generated from (applied to) financing activities | $ (41,128) | $ (41,715) | ||||
| $ | (120,618) | $ | 447,813 | |||
| Investing activities Silver and gold interests Interest paid - capitalized to silver interests Silver and gold interests - early deposit Proceeds on disposal of silver interest Proceeds on disposal of long-term investments Dividend income received Other | $ (52) (3,607) - - - 57 (642) | $ (125,134) (6,498) (149) - - 114 (668) | ||||
| $ | (55) | $ | (900,058) | |||
| (2,508) | (4,332) | |||||
| (1,045) | (1,058) | |||||
| - | 25,000 | |||||
| 12 | 12 | |||||
| 23 | 80 | |||||
| (1,447) | (2,059) | |||||
| Cash applied to investing activities | $ (4,244) | $ (132,335) | ||||
| $ | (5,020) | $ | (882,415) | |||
| Effect of exchange rate changes on cash and cash equivalents | $ 58 | $ 51 | ||||
| $ | 230 | $ | (27) | |||
| (Decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of period | $ 57,229 81,970 | $ 43,376 95,823 | ||||
| $ | (16,116) | $ | (236,206) | |||
| 88,008 | 308,098 | |||||
| Cash and cash equivalents, end of period | $ 139,199 | $ 139,199 | ||||
| $ | 71,892 | $ | 71,892 |
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Condensed Interim Summary of Ounces Produced and Sold
2015 2014 2013
| Q4 Q3 Q2 Q1 Q4 Q3 | |||
|---|---|---|---|
| Q2 | Q1 | ||
| Silver ounces produced ² San Dimas ³ Yauliyacu Peñasquito Barrick ⁴ Other ⁵ | 1,744 1,290 1,118 1,608 1,979 1,660 687 875 658 718 687 639 1,582 1,630 2,054 2,052 2,047 1,636 690 397 299 301 423 465 1,701 1,903 2,182 2,185 2,119 2,450 | ||
| 1,786 | 1,928 | ||
| 696 | 576 | ||
| 1,932 | 1,447 | ||
| 610 | 640 | ||
| 2,177 | 1,751 | ||
| Total silver ounces produced | 6,404 6,095 6,311 6,864 7,255 6,850 | ||
| 7,201 | 6,342 | ||
| Gold ounces produced ² 777 Sudbury ⁶ Salobo Other ⁷ | 9,669 12,105 11,611 12,785 14,134 18,259 9,924 12,196 7,473 6,426 7,060 7,341 12,253 10,415 8,486 8,903 10,067 8,061 4,256 6,959 5,185 5,749 9,530 2,894 | ||
| 6,668 | 12,081 | ||
| 8,622 | 8,666 | ||
| 27,805 | 27,185 | ||
| 7,414 | 5,728 | ||
| Total gold ounces produced | 36,102 41,675 32,755 33,863 40,791 36,555 | ||
| 50,509 | 53,660 | ||
| Silver equivalent ounces of gold produced ⁸ | 2,675 2,786 2,144 2,121 2,476 2,237 | ||
| 3,703 | 3,926 | ||
| Silver equivalent ounces produced ⁸ | 9,079 8,881 8,455 8,985 9,731 9,087 | ||
| 10,904 | 10,268 | ||
| Silver equivalent ounces produced - as originally reported 2, 8 | 8,964 8,447 8,365 8,977 9,723 8,948 | ||
| n.a. | 10,371 | ||
| Increase (Decrease) 2 | 115 434 90 8 8 139 | ||
| n.a. | (103) | ||
| Silver ounces sold San Dimas ³ Yauliyacu Peñasquito Barrick ⁴ Other ⁵ | 1,555 1,295 1,194 1,529 2,071 1,560 761 1,373 111 1,097 674 13 1,640 1,662 1,958 1,840 1,412 1,388 671 377 291 361 397 447 1,106 1,592 1,673 1,398 1,510 2,257 | ||
| 1,265 | 1,901 | ||
| 809 | 320 | ||
| 1,420 | 1,573 | ||
| 633 | 648 | ||
| 1,448 | 1,223 | ||
| Total silver ounces sold | 5,733 6,299 5,227 6,225 6,064 5,665 | ||
| 5,575 | 5,665 | ||
| Gold ounces sold 777 Sudbury ⁶ Salobo Other ⁷ | 8,718 15,287 13,599 6,294 15,889 16,972 11,251 5,566 6,718 6,878 6,551 6,534 14,270 7,180 11,902 10,560 6,944 6,490 3,665 8,685 2,559 6,390 1,840 5,287 | ||
| 9,490 | 6,629 | ||
| 12,518 | 8,033 | ||
| 32,156 | 9,794 | ||
| 6,810 | 3,943 | ||
| Total gold ounces sold | 37,904 36,718 34,778 30,122 31,224 35,283 | ||
| 60,974 | 28,399 | ||
| Silver equivalent ounces of gold sold ⁸ | 2,808 2,441 2,267 1,891 1,909 2,163 | ||
| 4,468 | 2,058 | ||
| Silver equivalent ounces sold⁸ | 8,541 8,740 7,494 8,116 7,973 7,828 | ||
| 10,043 | 7,723 | ||
| Gold / silver ratio ⁸ | 74.1 66.5 65.2 62.8 61.1 61.3 | ||
| 73.3 | 72.5 | ||
| Cumulative payable silver equivalent ounces produced but not yet delivered ⁹ | 4,952 5,147 5,996 6,042 5,997 5,283 | ||
| 6,452 | 6,445 |
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.
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Results of Operations
The Company currently has nine reportable operating segments: the silver produced by the San Dimas, Yauliyacu, Peñasquito and Barrick mines, the gold produced by the 777, Sudbury and Salobo mines, the silver and gold produced by the Other mines and corporate operations.
Three Months Ended June 30, 2015 Average Average Realized Cash Average Price Cost Depletion Cash Flow Ounces Ounces ($'s Per ($'s Per ($'s Per Net From Produced² Sold Sales Ounce) Ounce)3 Ounce) Earnings Operations Total Assets
Silver
| San Dimas | 1,786 | 1,265 $ | 20,762 $ 16.42 $ | 4.20 $ | 0.88 $ 14,339 $ | 15,451 $ | 150,169 | ||
| Yauliyacu | 696 | 809 | 13,296 | 16.44 | 4.20 | 6.43 | 4,693 | 9,898 | 180,214 |
| Peñasquito | 1,932 | 1,420 | 23,896 | 16.83 | 4.07 | 2.85 | 14,077 | 18,118 | 442,626 |
| Barrick4 | 610 | 633 | 10,320 | 16.31 | 3.90 | 3.24 | 5,806 | 8,003 | 606,209 |
| Other5 | 2,177 | 1,448 | 23,278 16.07 | 4.67 | 4.93 | 9,368 | 16,596 | 547,917 | |
| 7,201 | 5,575 $ | 91,552 $ 16.42 $ | 4.26 $ | 3.51 $ 48,283 $ | 68,066 $ 1,927,135 |
Gold
| 777 | 6,668 | 9,490 $ | 11,251 $ 1,186 $ | 400 $ | 823 $ | (353) $ | 8,461 $ | 230,652 | |
| Sudbury6 | 8,622 12,518 | 15,074 | 1,204 | 400 | 841 | (466) | 10,044 | 566,569 | |
| Salobo | 27,805 32,156 | 38,360 | 1,193 | 400 | 420 | 11,999 | 25,498 | 2,184,649 | |
| Other7 | 7,414 | 6,810 | 8,198 1,204 | 353 | 285 | 3,850 | 5,817 | 158,970 | |
| 50,509 60,974 $ | 72,883 $ 1,195 $ | 395 $ | 554 $ 15,030 $ | 49,820 $ 3,140,840 |
Silver
equivalent 8 10,904 10,043 $ 164,435 $ 16.38 $ 4.76 $ 5.31 $ 63,313 $ 117,886 $ 5,067,975
Corporate General and administrative $ (7,886)
Other (1,701)
Total corporate $ (9,587) $ (8,594) $ 135,396
10,904 10,043 $ 164,435 $ 16.38 $ 4.76 $ 5.31 $ 53,726 $ 109,292 $ 5,203,371
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.
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Three Months Ended June 30, 2014 Average Average Realized Cash Average Price Cost Depletion Cash Flow Ounces Ounces ($'s Per ($'s Per ($'s Per Net From Produced² Sold Sales Ounce) Ounce)3 Ounce) Earnings Operations Total Assets
Silver
| San Dimas4 | 1,118 | 1,194 $ | 23,775 $ 19.92 $ | 4.17 $ | 0.81 $ | 17,822 $ | 18,794 $ | 155,274 | |
| Yauliyacu | 658 | 111 | 2,184 | 19.67 | 4.16 | 5.92 | 1,065 | 1,722 | 200,120 |
| Peñasquito | 2,054 | 1,958 | 38,366 | 19.60 | 4.05 | 2.98 | 24,607 | 30,437 | 460,980 |
| Barrick5 | 299 | 291 | 5,853 | 20.11 | 3.90 | 3.26 | 3,768 | 3,580 | 603,799 |
| Other6 | 2,182 | 1,673 | 33,362 19.94 | 4.29 | 4.45 | 18,730 | 25,189 | 663,924 | |
| 6,311 | 5,227 $ 103,540 $ 19.81 $ | 4.15 $ | 3.03 $ | 65,992 $ | 79,722 $ 2,084,097 |
Gold
777 11,611 13,599 $ 17,621 $ 1,296 $ 400 $ 823 $ 994 $ 12,181 $ 263,661 Sudbury ⁷ 7,473 6,718 8,692 1,294 400 841 352 6,005 598,013
| Salobo | 8,486 11,902 | 15,379 1,292 | 400 | 462 | 5,121 | 10,618 | 1,312,108 |
| Other8 | 5,185 2,559 | 3,338 1,304 | 309 | 124 | 2,229 | 2,340 | 27,468 |
| 32,755 34,778 $ | 45,030 $ 1,295 $ | 393 $ | 651 $ | 8,696 $ | 31,144 $ 2,201,250 |
Silver
equivalent 9 8,455 7,494 $ 148,570 $ 19.83 $ 4.72 $ 5.14 $ 74,688 $ 110,866 $ 4,285,347
Corporate General and administrative $ (10,375)
Other (821)
Total corporate $ (11,196) $ (8,323) $ 236,248
8,455 7,494 $ 148,570 $ 19.83 $ 4.72 $ 5.14 $ 63,492 $ 102,543 $ 4,521,595
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.