PURE PRECIOUS METALS - Mining Press€¦ · PURE PRECIOUS METALS MAY 2014 . CAUTIONARY STATEMENTS...

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%


56%26%

19%


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


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**


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

mailto:[email protected]





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)


Current Owner: Lundin Mining




Zinkgruvan (Sweden)


Current Owner: Glencore


Term of Agreement: 20 years


Yauliyacu (Peru)


Current Owner: Eldorado Gold




Stratoni (Greece)


Current Owner: Goldcorp




Peñasquito (Mexico)


Current Owner: Mercator Minerals




Mineral Park (United States)


Current Owner: Nyrstar NV




Campo Morado (Mexico)


Current Owner: Alexco




Keno Hill (Canada)


Current Owner: Goldcorp




Los Filos (Mexico)


Current Owner: Augusta Resources




100% Gold

Rosemont (United States)

Date of Contract: 8/8/2012 & 11/4/2013

Current Owner: Hudbay




50% Gold

Constancia (Peru)


Current Owner: Hudbay




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


Current Owner: Barrick




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


Current Owner: Vale

Upfront Payment: $1.33 billion


Attr. Production: 25% Gold

Salobo (Brazil)


Current Owner: Vale




Additional Consideration:

10 million SLW warrants w/$65 strike

& 10yr term

Sudbury (Canada)

2013 2014


Current Owner: Sandspring Resources

Upfront Payment: $148.5 million



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.

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