silverwheaton.com
Silver Wheaton is the largest public mining company with 100% of its operating revenue from silver production. Silver Wheaton expects, based upon its current contracts, to have annual silver sales of 15 to 17 million ounces in 2009, increasing to approximately 30 million ounces in 2013, without any capital expenditures being required to generate that growth.
Silver Wheaton closes Silverstone acquisition, cementing position as top silver stream company
The deal was approved Thursday with 0.185 shares of Silver Wheaton being issued to Silverstone shareholders for every share held. The all stock deal was valued at $190 million.
During Silver Wheaton's annual general meeting Thursday President and CEO Peter Barnes said the acquisition increases the company's total reserves and resources to 1.4 billion ounces of silver and 405,000 ounces of gold. The company forecasts sales of 17 million to 19 million silver equivalent ounces this year,
Noting that 70% of mined silver is produced as a by-product, Silver Wheaton management said acquisition also provides three new silver streams from low-cost copper mines: Minto in Canada, Cozanin in Mexico, and Neves Corvo in Portugal. The three operations will generate 4.5 million ounces of silver equivalent this year.
The merger gives Silver Wheaton a total of 12 silver stream agreements with eight operating partners.
In a presentation to shareholders, Barnes said the silver stream from Goldcorp's Peñasquito gold, silver, lead and zinc mine will add significant growth to Silver Wheaton. He estimated that approximately 70% of Silver Wheaton's revenue will come from four mines, Luismin, Yauliyacu, Zinkgruvan and Peñasquito.
During the past four years, Barnes noted that Silver Wheaton has almost tripled the ounces of silver backing every share.
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