76
NOVEMBER 2012 SCOTIABANK GBM MINING CONFERENCE
NOVEMBER 2012
SCOTIABANKGBM MINING CONFERENCE
CAUTIONARY STATEMENTS
1
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTSThe information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-lookinginformation” within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but arenot limited to, statements with respect to the future price of silver and gold, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing andamount of estimated future production, costs of production, reserve determination, reserve conversion rates and statements as to any future dividends. Generally, these forward-lookingstatements 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, level ofactivity, 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 and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operationsincluding risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of thejurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax lawsand regulations; 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 atwww.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 assumptionsmanagement believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no materialadverse 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 andachieve their stated production outcomes, and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could causeactual 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. Therecan be no assurance that forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton doesnot 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 RESOURCESFor 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, 2011, and other continuous disclosure documents filed by Silver Wheaton since January 1, 2012, 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.
2
Our vision
To be the world’s premier silver 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 production from a mine
As the mine owner delivers silver to Silver Wheaton, an additional delivery payment* is made to them
3
WHAT IS SILVER STREAMING?
Partner Mining Company
Upfront payment (Cash and/or SLW shares)
SLW receives a % of life-of-mine silver production* Delivery payments are approximately US$4/oz with an inflationary adjustment of approximately 1% per annum after the third year of production
Delivery payment ($ per ounce of silver)
A WIN-WIN MODEL WHY IT WORKS
4
Silver stream agreements create shareholder value for both the purchaser (Silver Wheaton) and the seller (mine owner)
Silver produced at base metal and gold mines is given a lower valuation by the market than if it had been produced by a silver company• Results in ‘value arbitrage’ opportunity
NP
V o
f Silv
er S
tream
(Il
lust
rativ
e)
Base Metal or Gold Producer
Silver Wheaton
Arbitrage opportunity exists to create value for both
Silver Wheaton’s and the Partner’s Shareholders
Value of Future Silver
Production
Value of Future Silver Stream
WHO IS SILVER WHEATON?
5
49%29%
7%
6%5%
4%
Fresnillo Silver Wheaton Pan American HochschildCoeur d'Alene Hecla
48%
32%
20%
Silver Wheaton Franco-Nevada Royal Gold
6
INDUSTRY LEADERBY MARKET CAPITALIZATION
Metals Streaming and Royalty Companies
* As of November 23, 2012; ** Float cap is only $5.2bn of the total market cap of $22.3B as Fresnillo is 77% owned by Peñoles according to ThomsonReuters, Oct. 1, 2012
Worldwide Senior Silver Producers
($13.1B)
($5.5B)
($8.6B)($13.1B)
($22.6B)
Actualfloat is only$5.2B**
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Silver Wheaton
Fresnillo Pan American
Silver
Silver Standard
Resources
Bear Creek Mining
Polymetal Coeur d'Alene Mining
Levon Resources
Hecla Mining
Tahoe
Inferred
Measured & Indicated
Reserves
MORE SILVER RESERVES AND RESOURCESTHAN ANY OTHER SILVER COMPANY IN THE WORLD
7
*Source: Company Reports, Metals Economics Group data for Polymetal, Silver Standard Resources and Fresnillo
Silv
er R
eser
ves
and
Res
ourc
es (M
ozs)
Silver Wheaton has more than twice the silver reserves of any other silver company in the world
41.00
25.90 24.88
19.25
14.40
7.00
0
5
10
15
20
25
30
35
40
45
Fresnillo Silver Wheaton Pan American Silver
Coeur D'Alene
Hochschild Hecla
WORLD’S SECOND LARGEST SILVER PRODUCER
8
* Based on Company Reports, Pan American Silver and Coeur D’Alene is midpoint of 2012 production guidance
Silv
er (M
ozs)
Silver Wheaton is the world’s 2nd largest silver producer
2012 Silver Production Guidance*
** Silver Wheaton’s 2012 silver equivalent production guidance is 28Mozs, including 42koz of gold
**
HIGH QUALITY ASSET BASEDIVERSIFIED PORTFOLIO
9
Well diversified with low political risk
Operating Mines (17) Development Projects (4)
10
HIGH QUALITY ASSET BASELOW-COST MINES
* Based on Wood Mackenzie estimates of 2011 byproduct cost curves for gold, zinc, copper and silver mines; Constancia byproduct costs From Hudbay Minerals press release dated August 8, 2012; 777 Mine production is annualized for 2012
85% of long-term attributable production comes from low-cost mines
2012 Forecast Production By Cost Quartile*
2016 Forecast ProductionBy Cost Quartile*
80%
5%
12%
3%
44%
28%
8%
20%24%
30%14%
32%
11
HIGH QUALITY ASSET BASELONG-LIFE MINES
* Source: Company Reports, based on mine life from 2012, 777 Mine production annualized for 2012
20+yrs 15-20yrs 10-15yrs <10yrs
Mine life:Mine life:
2012 Forecast Production By Mine Life*
2016 Forecast Production By Mine Life*
~ 80% of long-term attributable production comes from long-life mines
12
WORLD-CLASS CORNERSTONE ASSETSPOSITIVE PROGRESS CONTINUES
Mine Peñasquito Pascua-Lama
Operator
Location Mexico Chile/Argentina
Status Operating Prod start forecast H2-2014
Av. Annual Silver Production* 28Moz /7Moz to SLW 35Moz /9Moz to SLW (first 5 years)
P&P Silver Reserves ** 960Moz 676Moz
M&I Silver Resources** 266Moz 185Moz
By-product Cash Costs*** <$0/oz Au <$0/oz Au (first 5 years)
Mine Life* 22+ 25+
*Source: Company Reports, Pascua-Lama life-of-mine (LOM ) average annual production of 20-25Moz Ag; **Peñasquito reserves and resources on a 100% basis and as at Dec. 31, 2011, Pascua-Lama reserves and resources on a 100% basis and as at Dec. 31, 2011; *** Source: Company Reports
Cornerstone assets run by two of the world’s largest gold companies
13
THE HUDBAY DEAL CONTINUING THE GROWTH
Announced on August 8, 2012 777 Mine & Constancia Project Provides Immediate Cash Flow Enhances Long Term Growth Increases Portfolio Diversification Provides Downside Protection
Hudbay’s 777 Mine (Canada)
Hudbay’s Constancia Project (Peru)
14
THE HUDBAY DEALTWO NEW HIGH-QUALITY PRECIOUS METAL STREAMS
777 Stream• 100% life-of-mine silver production • 100% gold production, until later of 2016 or completion of Constancia,
then gold stream drops to 50% for the remainder of the mine life
Constancia Stream • 100% life-of-mine silver production
Consideration• Cash payment of US$500M paid on closing• US$125M paid after US$500M CAPEX spent at Constancia• Remaining US$125M paid after US$1B CAPEX spent at Constancia
Production Payments• $5.90/oz for silver*• $400/oz for gold*
Constancia Completion Test
• 90% of expected throughput and recovery by the end of 2020
* Subject to an inflationary adjustment of 1% beginning in the fourth year
THE HUDBAY DEAL ACCRETIVE ON ALL KEY METRICS
15
* ST (2013 – 2015); LT (2016 – 2020); Production is Ag Eq assuming 50:1 Ag:Au ratio; Cash flow based on silver and gold prices of $28 and $1,600, respectively; ** Based on P&P reserves and M&I resources, reserves and resources are on a silver equivalent basis assuming a 50:1 Au/Ag ratio, see appendix for full reserve and resource tables
Accretion per Share to Silver Wheaton Shareholders*
14.0% 13.5%
10.7%9.4%
13.5%12.9%
0%
5%
10%
15%
Production (Short Term)
Production (Long Term)
Proven and Probable AgEq
Reserves**
Total AgEq Resources (excl. Inf.)**
Cash Flow (Short Term)
Cash Flow (Long Term)
16
THE HUDBAY DEAL POSITIVE PROGRESS CONTINUES
Mine 777 Constancia
Location Manitoba, Canada Peru
Status Operating Prod start forecast 2014
Av. Annual Production*820koz Ag & 68koz Au (2012-2016)**870koz Ag & 50koz Au (life-of-mine)
2.4Moz (2015-2019)2.2Moz (life-of-mine)
P&P Silver Reserves*** 10.9Moz Ag & 0.7Moz Au 48.8Moz Ag
M&I Silver Resources*** 33.9Moz
Inferred Resource*** 1.5Moz Ag & 0.1Mz Au 13.4Moz
By-product Cash Costs ($/lbCu) -$0.72 $0.92
Mine Life (yrs) 9* 16***
Immediate production plus longer term growth from Hudbay’s cornerstone assets* Based on company forecasts; ** 2012 assumes annualized production; *** 777 reserves from Hudbay press release dated April 2, 2012 & Constancia from Hudbay Minerals press release dated August 8, 2012; ****Based on Wood Mackenzie estimates for 777 and Hudbay Minerals press release dated August 8, 2012, for Constancia
****
-$1.50
-$1.00
-$0.50
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
$4.50
0 10 20 30 40 50 60 70 80 90 100
US
$ / l
b C
u
Cumulative Percentile Production (%)
2011 - Copper Mines - Total Cash Costs per lb Cu
THE HUDBAY DEALLOW COST MINING OPERATIONS
777 is in the lowest cost quartile, while Constancia is on the lower end of the second cost quartile
17
* Byproduct cash costs are based on Wood Mackenzie estimates; ** From Hudbay Minerals press release dated August 8, 2012
Constancia**
777*
18
THE HUDBAY DEAL INCREASED DIVERSIFICATON BY METAL
Significant increase in gold production
2012-2016 Forecast Average Annual Revenue*
2012-2016 Proforma Forecast Average Annual Revenue*
* 777 Mine production annualized for 2012, revenues based silver and gold prices of $28 and $1,600, respectively
95%
5%
Silver Gold
85%
15%
19
THE HUDBAY DEAL INCREASED DIVERSIFICATION BY MINE
2012 Proforma ForecastProduction by Mine*
2016 Proforma Forecast Production by Mine
* 777 Mine annualized for 2012 ; **Comprised of the Veladero, Lagunas Norte and Pierina mines; ***Production includes Goldcorp’s four year commitment commencing in August of 2010 to deliver to Silver Wheaton 1.5Moz of Ag per annum resulting from their sale of San Dimas to Primero; ****Silver Eq. production assuming Au:Ag ratio of 50:1
Diversified asset base with no single asset accounting for more that 25% of production
20%
19%
14%8%
8%
8%
5%
3%
16% PeñasquitoSan Dimas***777YauliyacuBarrick Other**ZinkgruvanCozaminMinto (gold)****Other
25%
13%
12%8%8%
6%
5%
4%
3%3%
12% Pascua-LamaSan Dimas***PeñasquitoRosemont777ConstanciaYauliyacuZinkgruvanCozaminMinto (gold)****Other
0
10
20
30
40
50
2008A 2009A 2010A 2011A 2012E 2016E
Constancia777Pascua-LamaBarrick Other***RosemontPeñasquitoSan Dimas****YauliyacuZinkgruvanMinto (gold)*****CozaminOther
Silver Wheaton is forecast to receive silver from 17 operating mines in 2012
5 Year Production Growth ~90%
20
* Includes gold production of 18,400oz in 2011; **Forecast Ag Eq. production includes gold production of approx. 42,000oz and 100,000oz in 2012 and 2016, respectively, and assumes a Au/Ag ratio of 50:1;***Comprised of the Veladero, Lagunas Norte and Pierina mines; ****Production incudes Goldcorp’s four year commitment commencing in August of 2010 to deliver to Silver Wheaton 1.5Moz of Ag per annum resulting from their sale of San Dimas to Primero; *****Silver Eq. production assuming Au:Ag ratio of 50:1
Silv
er E
quiv
alen
t Pro
duct
ion
(Moz
) ~48Moz**
~28Moz**25.4Moz*
STRONG PRODUCTION GROWTHINDUSTRY LEADING GROWTH PROFILE
WHY INVEST IN SILVER WHEATON?
21
22
SIGNIFICANT MARKET SHAREINVESTMENT IN THE SILVER INDUSTRY
* Measured by average daily trading volume in US dollars, source is Bloomberg market data as of Sept 28, 2012, Data from US and Cdn exchanges except for Fresnillo and Hochschild which trade on LSE, ** Includes iShares Silver Trust, ETF Securities’ Silver ETFs, ZKB Silver ETF and Sprott Silver Trust; *** Includes Coeur d’Alene, Hecla, Pan American Silver, Fresnillo and Hochschild
Percentage Allocation of Investment Dollars*
26%
62%
12%
= Silver Wheaton = Silver ETFs** = Senior Silver Producers***
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2004 2005 2006 2007 2008 2009 2010 2011 LTM Sep-28-12
23
* 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
Greater upside to increases in the silver price
Fixed operating* and capital costs
No ongoing exploration costs
Unique and sustainable dividend policy
Greater diversity of assets
Tax efficient business model
Strong upside potential with downside protection
SILVER WHEATON VERSUS SILVER PRODUCERS
97%
70% 71% 65%60%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Silver Wheaton Hochschild Pan American Silver
Coeur D'Alene Fresnillo Hecla
24
FOCUSED ON SILVER
* Source: Company Reports, first half ending Jun. 30, 2012, ** Source: Company Reports, ***As of Aug.1, 2012 Silver Wheaton forecast to receive 68,000 oz of gold per year from Hudbay’s 777 mine, through the end of 2016
Silver revenue as a percentage of total revenue*Width of bars based on actual 2011 production**
25.4Moz
15Moz
21.9Moz
19.1Moz
41.9Moz
9.5Moz
Post Hudbay Acquisition: Forecast Revenue 85% Ag &15% Au***
$7.30 $7.31
$11.72$13.42
$14.97 $15.02
$20.75
$34.60
$30.73
$3.90 $3.90 $3.90 $3.91 $3.94 $3.97 $3.97 $3.99 $4.03$0
$5
$10
$15
$20
$25
$30
$35
$40
2004 2005 2006 2007 2008 2009 2010 2011 H1 2012
Silv
er P
rice
(US
$/oz
)EXPANDING CASH OPERATING MARGINSFIXED OPERATING COSTS
25
* 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; *** Source CPM Group, 2012 Silver Yearbook
Cash Operating Margins*Total Cash Cost/oz*
Fixed cash costs** provide shareholders with full benefit of increasing silver prices
17
7 8 6 4 2
4
7 5
1 33
0
5
10
15
20
25
Silver Wheaton
Fresnillo Pan American Silver
Coeur D'Alene Hochschild Hecla
Num
ber o
f Ass
ets
Producing Assets Development Assets
SUPERIOR ASSET DIVERSIFICATION
26
21
1413
7 75
Silver Wheaton offers superior asset diversification compared to other silver producers
* Source: Company disclosure, development assets include projects with defined resources
SILVER WHEATON VERSUS SILVER ETF
27
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
SILVER WHEATON VERSUS SILVER ETF
28
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
111%
215%
356%
0%
50%
100%
150%
200%
250%
300%
350%
400%
Silver Price* Silver Wheaton Share Price Cash Flow/Share**
LEVERAGE TO SILVER PRICES
29
* Source: LBMA Silver Fixings;** Refer to non-IRFS measures at the end of this presentation
(09/30/2009 – 09/30/2012)Three year growth
$34.65/oz
$33.20/share
$1.78/share
$39.71/share
SILVER WHEATON VERSUS SILVER ETF
30
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
GROWING RESERVES AND RESOURCESTHROUGH ACQUISITIONS AND EXPLORATION
31
Silver Reserves and Resources (in Moz)*
Silver Wheaton’s production has been more than replaced through successful exploration by our partners
69 (P&P)4(M&I)
173 (Inf)
1,411
275219
* Reserves and resources are as of Dec. 31 for each year and do not include gold reserves and resources (see appendix for reserve and resource tables); ** Current reserves include reserves and resources updated up until Jul. 31 plus reserves and resources of acquisitions since Dec. 31, 2011 including 777 and Constancia; *** From Dec. 31, 2004 to Dec. 31, 2011
SILVER WHEATON VERSUS SILVER ETF
32
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
CREATING SHAREHOLDER VALUETRACK RECORD OF ACCRETIVE ACQUISITIONS
33
Total attributable reserves and resources per share since inception*
Reserves Measured & Indicated Inferred
27% annualized growth in proven and probable reserves per share since inception*** 17% annualized growth in reserves and resources per share since inception***
* Reserves and resources are as of Dec. 31 for each year and do not include gold reserves and resources (see appendix for reserve and resource tables); ** Current reserves include reserves and resources updated up until Jul. 31 plus reserves and resources of acquisitions since Dec. 31, 2011 including 777 and Constancia; *** From Dec. 31, 2004 to Dec. 31, 2011
**0.0
1.0
2.0
3.0
4.0
5.0
6.0
2004 2005 2006 2007 2008 2009 2010 2011 Current
Silv
er o
z/sh
are
34
LARGE TARGET MARKET
Silver Wheaton vs. Global Silver Production
* Source: CPM Group silver production forecasts by source metal
Fore
cast
Glo
bal S
ilver
Pro
duct
ion
(Moz
)(S
ilver
Out
put b
y M
ine’
s S
ourc
e M
etal
)*
Silver Wheaton’s Potential Target
Market
4% 6%
Traditional Silver
Companies
Silver Wheaton’s Forecast Production (% of potential target market)
>70% of mined silver is produced as a by-product from base metal or gold mines = significant growth potential in the silver stream space
Primary Silver MinesGold MinesBase Metal Mines
0
100
200
300
400
500
600
700
800
900
1000
2011A 2012E 2013E 2014E 2015E 2016E SLW 2012
SLW 2016
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Silv
er P
rice
(US
$ / o
z.)
Spot Silver Price Analyst Consensus LT Silver Price
35
CORPORATE DEVELOPMENTFAVORABLE DEAL MAKING ENVIRONMENT
Spot Silver Prices vs. Long-term Analyst Consensus
LuisminZinkgruvan
Yauliyacu
Peñasquito
Stratoni
Barrick
Keno Hill
Mineral ParkCampo Morado
Rosemont
Silverstone
Hudbay
Transactions have typically occurred when long-term analyst consensus silver prices are approximately 75% of spot silver prices
Cash and cash equivalents Undrawn credit facility Silver interest commitments Total debt
STRONG BALANCE SHEETTO FUND FUTURE GROWTH
36
$400M
$57M
* Includes two further payments to Hudbay of US$125M each to be made upon satisfaction of minimum capital expenditures at Constancia; (additional payments of US$230M for the Rosemont transaction and US$32.4M for the Navidad transaction are contingent upon receipt of key operating permits)
Strong balance sheet and future operating cash flows leave us exceptionally well-positioned to pursue additional accretive silver stream opportunities
(installments of $7M per quarter)
(as of 09/30/12)
$555M
$638M*
$388M**
$250M*
SILVER WHEATON VERSUS SILVER ETF
37
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
38
* Operating cash costs are approx. US$4/oz (with an inflationary adjustment of approx. 1% per annum after the third year of production); **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
DIVIDEND YIELDA UNIQUE AND SUSTAINABLE DIVIDEND POLICY
Unique Dividend Policy: Dividends linked to operating cash flows whereby 20% of previous quarter’s operating cash flows is distributed to shareholders
Benefits:• Direct Silver Price Exposure – Fixed cash cost* business model allows
shareholders to benefit from silver price increases
• Participation in Sector-Leading Production Growth – Greater than 65% organic attributable production growth forecast over the next 5 years
• Sustainable – Dividend can be provided in all silver price environments
• Flexible – Ensures Silver Wheaton has the cash flows required to deliver additional long-term production growth
Unique and sustainable dividend policy further differentiates Silver Wheaton from silver exchange traded funds
SILVER WHEATON VERSUS SILVER ETF
39
Silver Wheaton Silver ETF
Primarily Silver Exposure Leverage to Silver Price
Exploration and Expansion Upside Acquisition Growth Potential
Dividend Yield
40
LOW ADMINISTRATIVE COSTSCOMPARED TO SILVER ETFs
Administrative Costs1
SLW administrative costs are lower than Silver ETFs 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. 2011 G&A of $25.2M / Enterprise Value of $13.9B per Bloomberg as of Sep-28-12; 3. As reported in Mar-31-12 10Q; 4. As reported in Dec-3-10 Prospectus; 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.
2
3 3 4 5
0.18%
0.50%
0.30%
0.49%
0.56%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
Silver Wheaton iShares Silver Trust(SLV)
ETFS Physical Silver -New York (SIVR)
ETFS Physical Silver -London (PHAG)
Sprott Physical SilverTrust (PSLV)
41
THE PROOF…IS IN THE PRICE PERFORMANCE
SLW
Source: Thomson One, as of Nov 23, 2012
Silver
PAAS
HLSSRI
CDE
SLW share price has significantly outperformed the price of silver and the share price of its silver producing peers since the Company’s inception in October 2004
-200%
0%
200%
400%
600%
800%
1000%
1200%
1400%
Oct
-04
Jan-
05A
pr-0
5Ju
l-05
Oct
-05
Jan-
06A
pr-0
6Ju
l-06
Oct
-06
Jan-
07A
pr-0
7Ju
l-07
Oct
-07
Jan-
08A
pr-0
8Ju
l-08
Oct
-08
Jan-
09A
pr-0
9Ju
l-09
Oct
-09
Jan-
10A
pr-1
0Ju
l-10
Oct
-10
Jan-
11A
pr-1
1Ju
l-11
Oct
-11
Jan-
12A
pr-1
2Ju
l-12
Oct
-12
42
IF YOU LIKE SILVER….
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 RELATIONSTel: 604-684-9648Toll Free: 1-800-380-8687Email: [email protected]
TRANSFER AGENTCIBC Mellon Trust Company Toll Free: 1-800-387-0825 Email: [email protected]
NYSE: SLW TSX: SLWwww.silverwheaton.com
43
APPENDIX
44
45
LIQUID STOCK CAPITAL STRUCTURE AS OF SEPT. 30, 2012
Shares Outstanding 354.2 million
Warrants Outstanding (in-the-money) 2.7 million
Options Outstanding (in-the-money) 2.1 million
Shares Fully Diluted 356.6 million
3 Month Average Daily Trading Volume:TSX: 1.3 million sharesNYSE: 4.6 million shares
46
SILVER STREAM AGREEMENTSPRODUCERS
Peñasquito San Dimas 777 Yauliyacu Zinkgruvan Cozamin
Company
Status Producing Producing Producing Producing Producing Producing
Contract Length
LOM LOM LOM 20 yrs LOM 10 yrs
Ag Prod. 25% 100%* 100%**up to 4.75 M
oz/yr100% 100%
Mine Life 22+ yrs 15+ yrs 9+ yrs 10+ yrs 10+ yrs 7+ yrs
Cash Costs $3.99/oz $4.09/oz $5.90/oz Ag$400/oz Au $4.02/oz $4.14/oz $4.08/oz
Annual Ag Production
7 Moz 5+ Moz 820 koz Ag68 koz Au***
Up to 4.75 M oz 2 Moz 1.5 Moz
* Silver Wheaton will receive 100% of first 3.5Moz Ag produced plus 50% of excess plus 1.5Moz of Ag from Goldcorp until Aug 2014 after which Silver Wheaton will receive 100% of first 6Moz Ag produced plus 50% of excess; ** Also includes 100% of gold production until later of 2016 or completion of Constancia, then drops to 50% of gold for the remainder of the mine life; *** Production rates for 2012-2016, LOM production is forecasted to be 870 koz Ag and 50koz Au
47
SILVER STREAM AGREEMENTSPRODUCERS (CONTINUED)
Minto Stratoni Campo MoradoLagunas
NortePierina Veladero
Company
Status Producing Producing Producing Producing Producing Producing
Contract Length
LOM LOM LOM to 2014** to 2014** to 2014**
Ag Prod. 100%* 100% 75% 100% 100% 100%***
Mine Life 10+ yrs 6+ yrs 10+ yrs 9+ yrs 4+ yrs 21+ yrs
Cash Costs $3.94/oz Ag$303/oz Au $3.98/oz $3.90/oz $3.90/oz $3.90/oz $3.90/oz
Annual Ag Production
0.2 Moz Ag20,000 oz Au 1+ Moz 1+ Moz 0.5 Moz 1+ Moz 1+ Moz
* Includes gold production, If production exceeds 30,000 ounces of gold per year, Silver Wheaton is entitled to 100% of the gold produced up to these thresholds and 50% of the amount in excess of these thresholds; **100% Ag Prod. effective September 2009 until end of 2013; During 2014 and 2015, Silver Wheaton will be entitled to the silver production from the Lagunas Norte, Pierina and Veladero mines to the extent of any production shortfall at Pascua-Lama until Barrick satisfies a Completion Guarantee;***SLW’s attributable silver production is subject to a maximum of 8% of the silver contained in the ore mined at Veladero during the period
48
Neves-Corvo Mineral Park Los Filos Keno Hill Aljustrel
Company
Status Producing Producing Producing Producing Producing
Contract Length
LOM LOM 25 yrs LOM LOM
Ag Prod. 100% 100% 100% 25% 100%
Mine Life 10+ yrs 23+ yrs 18+ yrs 4+ yrs 10+ yrs
Cash Costs $3.98/oz $3.90/oz $4.13/oz $3.90/oz $3.94/oz
Annual Ag Production
0.5 Moz 0.5+ Moz 0.2-0.3 Moz 0.5+ Moz 0.1Moz
SILVER STREAM AGREEMENTSPRODUCERS (CONTINUED)
49
Pascua-Lama Constancia Rosemont Navidad
Company
Status Development Development Development Development
Contract Length
LOM LOM LOM LOM
Ag Prod. 25% 100% 100%*** 12.5%*****
Mine Life 25+ yrs 16+ yrs 21+ yrs 15+ yrs
Cash Costs $3.90/oz $5.90/oz $3.90/oz Ag$450/oz Au US$4.00/oz
Annual Ag Production
9 M oz* 2.2 Moz** 2.4 Moz Ag15,000 oz Au**** 1.0-2.0 Moz
* 9Moz for first 5 years and approx. 5.5 M oz over LOM ** Based on compnay estimates and Hudbay Minerals press release dated August 8, 2012 ***Also includes 100% of the future gold production; ****Based on a Jan 2009 Feasibility Report, Augusta forecasts that up to 15,000 ozs of gold may be produced annually; ***** Silver Wheaton has converted a debenture to acquire an amount equal to 12.5% of the Loma de La Plata zone of the Navidad deposit
SILVER STREAM AGREEMENTSDEVELOPMENT ASSETS
50
SILVER WHEATON’S EQUITY INVESTMENTS
Property of Interest
Corani Rock Creek Montanore Hackett River
Ownership 15% 17% 11% 7%
Stage Permitting Pre-FeasibilityAdvanced
ExplorationPre-Feasibility
Resource (Ag M oz)
P&P 270M&I 89Inf. 48
Inf. 229M&I 166Inf. 65
Ind. 200Inf. 64
Est. Annual Ag Production
+13 M oz/yr* 6 M oz/yr N/A 12 M oz/yr
Source: Company Reports, * For first 5yrs, 8M oz/yr LOM
Company Type Projects Covered by ROFR
Producer Pascua-Lama
Producer Yauliyacu*
Producer 777 / Constancia**
Producer All Projects
Producer All Projects***
Producer All Projects
Producer Kutcho Project
AUX Canada Development La Bodega and Cal Vetas Projects (including 5km area of interest)
Development Hackett River, Del Norte and Red Lake
Development All Projects in Montana
Development Hermosa Silver Project
51
SIGNIFICANT GROWTH POTENTIALSILVER WHEATON’S RIGHT OF FIRST REFUSAL PORTFOLIO
*Also includes a right of first offer on any project owned by Glencore and its affiliates as of Mar 23, 2006 other than the Yauliyacu Mine; ** Includes any future streaming agreement or royalty agreement related to the production of silver or gold from Constancia or 777; *** Right of first refusal applies to European Goldfields and its affiliates
PASCUA-LAMADRIVER OF LONG-TERM PRODUCTION GROWTH
SLW to receive 25% of the life-of-mine silver production from the world-class Pascua-Lama mine commencing in mid-2014
Pascua-Lama is forecast to be one of the largest and lowest-cost gold mines in the world
SLW receives 100% of the silver production from three of Barrick’s currently producing mines* through 2013 (~ 2.5Moz per annum)
Barrick Completion Guarantee, requiring them to complete Pascua-Lama to at least 75% of design capacity by Dec. 31, 2015• If required, top-up to 75% of Pascua-Lama design in 2014 and 2015
from three of Barrick’s currently producing mines*
Pre-stripping activities commenced in Q2 2012 and as of July 26, 2012, approximately US$3 billion** has been spent advancing the project
52
*Lagunas Norte, Pierina and Veladero, Silver Wheaton's attributable silver production from Veladero is subject to a maximum of 8% of the silver contained in the ore mined during the period; ** As per Barrick’s Jul. 26, 2012 disclosure, capital costs are forecast to be 50-60% higher than the previously announced estimate of US$4.7-US$5 billion
Average annual production to SLW of approx. 9Moz Ag in the mine’s first full five years***
53
PEÑASQUITO PROJECT GROWTH SINCE APRIL 2007 ACQUISITION
April 2007 Current* Growth
Silver Reserves/Resources
P&P Reserves (25%) 144 M oz 240 M oz +67%
M&I Resources (25%) 62 M oz 66 M oz +7%
LOM Silver Production Attributable to SLW (25%) 92 M oz 159 M oz +73%
Average Annual Silver Production Attributable to SLW (25%) 5.4 M oz 7.0 M oz +30%
Anticipated Mine Life 17 yrs 22 yrs +29%
Underground Potential Not contemplated Yes +%??
* Reserves and Resources as of Dec 31, 2011, remaining data based on March 2009 Technical Report
Key driver of growth until Pascua-Lama commences production in 2013
Silver Wheaton to receive 25% of life-of-mine silver production
Commercial production achieved in 2010
High pressure grinding roll system commissioned in Q1 2012 positioning the mine to reach full design capacity of 130,000 tonnes per day
Upside remains
• Significant underground exploration success
• Evaluating potential for a future high grade underground operation – could add additional mine life
54
PEÑASQUITO PRIMARY GROWTH ENGINE UNTIL 2013
Average annual production of approximately 7Moz Ag to Silver Wheaton over life-of-mine
DEVELOPMENT STAGE ASSETS
Entitled to 100% of life of mine silver and gold production from Augusta Resource’s Rosemont Project
• Anticipated to be a very long-life, low-cost Cu-Mo-Ag-Au mine• Forecast to increase long-term annual production by approx.
2.9Moz of silver and up to 15,000 ozs of gold*• Once permits finalized, SLW to make upfront cash payments
of US$230 million plus ongoing production payment
Entitled to 12.5% of life of mine silver production from the Loma de La Plata zone of Pan American Silver’s Navidad project
• One of the largest undeveloped silver deposits in the world• Forecast to increase long-term silver production by up to
2Moz per annum**• Once permits finalized and construction commences, SLW to
make upfront cash payments of US$32.4 million plus ongoing production payment
55
* Based on Augusta Resource Corporation’s Jul. 24, 2012 disclosure; ** Based on Pan American Silver’s Jan. 2011Preliminary Economic Assessment
Rosemont Project in Arizona
Navidad Project in Argentina
Two projects provide ~5Moz of long-term silver production
4.00
4.00
4.00
3.00
3.00
3.00
3.00
3.00
3.00
2.97
2.71
2.62
2.39
2.25
2.23
2.22
2.15
2.09
2.08
2.03
2.00
2.00
1.97
1.86
1.77
1.67
1.59
1.50
1.30
1.00
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56
Silver Wheaton ranks very favorably on the political risk spectrum
NAV Weighted Political Risk Rankings*
*Source – July 9th edition of TD Gold and Precious Metals Weekly, Fraser Institute risk ratings to rank countries by quartile; ** Silver Wheaton ranking does not include 777 and Constancia
FAVORABLE POLITICAL RISK PROFILETHE RIGHT JURISDICTIONS
Following the completion of the Hudbay Deal, the addition of 777 Mine in Canada will lower risk profile
Significant silver reserves and resources within non-silver dominant companies
SILVER IS OFTEN A NON-CORE ASSET
57
Silv
er R
eser
ves
and
Res
ourc
es (M
ozs)
Copyright Metals Economics Group - MineSearch - 2012
World’s 10 Largest Companies by Silver Reserves & Resources
0
500
1,000
1,500
2,000
2,500
3,000
Xstrata KGHM Polska
Goldcorp Silver Wheaton
Fresnillo Silver Standard
Barrick Pan American
Silver
BHP Billiton Allied Nevada
Inferred
Measured and Indicated
Reserves
0
200
400
600
800
1,000
1,200
1,400
1,600
KG
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LARGEST 40 SILVER DEPOSITS IN THE WORLDPRODUCING MINES AND DEVELOPMENT PROJECTS
58
Source: Data from Metals Economics Group and includes producing mines and development stage projects with reserve and resource updates subsequent to Jan 1, 2007
Silver Wheaton Relationships (8)
Res
erve
s &
Res
ourc
es (M
oz)
Copyright Metals Economics Group - MineSearch - 2012
Stake in 2 of the top 3 (and 8 of the top 40) silver deposits in the world.
HISTORY OF RESERVE AND RESOURCE GROWTH
59
Total attributable reserves and resources since inception*
* Reserves and resources are as of Dec. 31 for each year and do not include gold reserves and resources (see appendix for reserve and resource tables); ** Current reserves and resources include reserves and resources updated up until Jul. 31 plus reserves and resources of acquisitions since the Dec. 31, 2011 including 777 and Constancia; *** From Dec. 31, 2004 to Dec. 31, 2011
Reserves Measured & Indicated Inferred
42% annualized growth in proven and probable reserves since inception*** 30% annualized growth in reserves and resources since inception***
**0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2004 2005 2006 2007 2008 2009 2010 2011 Current
Silv
er R
&R
(Moz
)
ATTRIBUTABLE RESERVES AND RESOURCESTOTAL PROVEN & PROBABLE
60
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Process Recovery(7)
Mt g/t Moz Mt g/t Moz Mt g/t Moz %
SILVER
Peñasquito (25%)
Mill 156.6 28.9 145.5 129.3 20.2 83.8 285.9 24.9 229.3 53-65%
Heap Leach 8.3 14.4 3.9 23.0 9.4 6.9 31.4 10.7 10.8 24%
San Dimas(10) - - - 3.5 281.5 31.8 3.5 281.5 31.8 94%
Pascua-Lama (25%) 9.9 59.5 18.9 86.3 54.1 150.2 96.2 54.7 169.1 82%
Lagunas Norte(11) 3.3 3.2 0.3 37.6 3.2 3.9 40.9 3.2 4.2 22%
Pierina(11) 2.1 19.9 1.3 18.9 10.8 6.6 21.0 11.8 8.0 37%
Veladero(11) 3.7 13.4 1.6 61.3 13.4 26.5 65.0 13.4 28.1 6%
Yauliyacu(12) 1.0 99.6 3.3 2.7 105.9 9.1 3.7 104.2 12.4 85%
777 (13) 4.9 26.8 4.2 7.5 27.9 6.7 12.4 27.4 10.9 63%
Neves-Corvo
Copper 23.2 44.0 32.9 4.5 45.0 6.5 27.7 44.2 39.4 35%
Zinc 19.4 67.0 41.7 3.8 64.0 7.8 23.1 66.5 49.5 23%
Rosemont(14) 128.8 4.5 18.5 366.8 3.8 44.5 495.6 3.9 62.9 80%
Constancia 359.0 3.3 38.3 91.0 3.6 10.6 450.0 3.4 48.8 72%
Mineral Park(14) 293.9 2.7 25.7 74.5 2.9 7.0 368.4 2.8 32.6 49%
Zinkgruvan
Zinc 8.2 103.0 27.2 2.4 60.0 4.7 10.7 93.1 31.9 70%
Copper 2.8 32.0 2.8 0.1 29.0 0.1 2.8 31.9 2.9 78%
Aljustrel
Copper 2.2 19.2 1.3 8.4 15.3 4.1 10.6 16.1 5.5 30%
Campo Morado (75%) 0.7 166.7 3.8 0.1 123.4 0.3 0.8 162.6 4.1 55%
Stratoni 1.7 174.0 9.3 0.1 225.0 0.7 1.8 177.0 10.0 84%
Minto 5.5 5.4 1.0 5.9 4.6 0.9 11.4 5.0 1.8 80%
Cozamin(15)
Copper 0.9 63.0 1.7 4.9 50.7 8.0 5.8 52.5 9.8 74%
Los Filos 81.0 5.2 13.5 231.2 5.4 40.2 312.2 5.3 53.610 5%
TOTAL SILVER 396.5 460.8 857.4
GOLD777 (13) 4.9 1.97 0.31 7.5 1.82 0.44 12.4 1.88 0.75 72%
Minto 5.5 0.69 0.12 5.9 0.51 0.10 11.4 0.60 0.22 74%
TOTAL GOLD 0.43 0.53 0.97
Proven & Probable Reserves Attributable to Silver Wheaton (1,2,3,8,16,17)
As of December 31, 2011 unless otherwise noted(6)
Proven Probable Proven & Probable
ATTRIBUTABLE RESERVES AND RESOURCESTOTAL MEASURED & INDICATED
61
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained
Mt g/t Moz Mt g/t Moz Mt g/t Moz
SILVER
Peñasquito (25%)
Mill 34.1 13.1 14.4 128.2 12.4 51.1 162.3 12.6 65.5
Heap Leach 1.0 4.6 0.2 6.2 3.9 0.8 7.2 4.0 0.9
Pascua-Lama (25%) 5.3 24.5 4.2 55.9 23.4 42.1 61.2 23.5 46.3
Yauliyacu(12) 0.7 108.5 2.5 6.1 192.4 37.8 6.8 183.5 40.3
Neves-Corvo
Copper 15.4 53.0 26.2 3.4 51.2 5.6 18.8 52.7 31.8
Zinc 42.7 54.3 74.6 14.5 49.5 23.0 57.2 53.1 97.6
Rosemont(14) 7.2 3.9 0.9 103.0 2.7 8.8 110.2 2.7 9.7
Constancia 119.0 2.3 8.6 344.0 2.0 21.9 463.0 2.1 30.5
Mineral Park(14) 101.0 2.6 8.4 175.6 2.7 15.2 276.6 2.7 23.6
Zinkgruvan
Zinc 0.9 123.4 3.8 3.3 109.5 11.5 4.2 112.6 15.2
Copper 2.7 24.4 2.1 0.1 38.5 0.1 2.8 24.9 2.2
Aljustrel
Zinc 1.3 65.6 2.7 20.5 60.3 39.7 21.8 60.7 42.4
Copper - - - 0.1 11.7 0.04 0.1 11.7 0.04
Campo Morado (75%) 2.1 162.1 10.8 4.4 158.0 22.5 6.5 159.3 33.2
Loma de La Plata (12.5%) - - - 3.6 169.0 19.8 3.6 169.0 19.8
Minto 9.4 3.9 1.2 27.2 3.2 2.8 36.5 3.3 3.9
Keno Hill (25%)
Underground - - - 0.3 545.4 4.5 0.3 545.4 4.5
Elsa Tailings - - - 0.6 119.0 2.4 0.6 119.0 2.4
Los Filos 7.9 9.5 2.4 42.7 7.2 9.9 50.6 7.6 12.4
TOTAL SILVER 162.9 319.4 482.3
GOLDMinto 9.4 0.44 0.13 27.2 0.28 0.24 36.5 0.32 0.38
TOTAL GOLD 0.13 0.24 0.38
Measured & Indicated
Measured & Indicated Resources Attributable to Silver Wheaton (1,2,3,4,5,9,16,17)
As of December 31, 2011 unless otherwise noted(6)
Measured Indicated
ATTRIBUTABLE RESERVES AND RESOURCESTOTAL INFERRED
62
Tonnage Grade Contained
Mt g/t Moz
SILVER
Peñasquito (25%)
Mill 36.7 8.8 10.4
Heap Leach 14.1 1.7 0.8
San Dimas(10) 5.8 324.0 60.8
Pascua-Lama (25%) 8.1 15.5 4.0
Yauliyacu(12) 13.8 163.5 72.7
777 (13) 1.2 39.2 1.5
Neves-Corvo
Copper 28.5 40.0 36.6
Zinc 33.0 55.0 58.3
Rosemont(14) 163.0 2.1 11.2
Constancia 223.0 1.9 13.4
Mineral Park(14) 320.1 2.3 23.9
Zinkgruvan
Zinc 5.6 69.0 12.4
Copper 0.8 36.0 0.9
Aljustrel
Zinc 8.7 50.4 14.0
Copper 4.7 16.0 2.4
Campo Morado (75%) 2.4 117.3 9.1
Stratoni 0.7 217.0 4.7
Loma de La Plata (12.5%) 0.2 76.0 0.4
Minto 8.5 2.9 0.8
Keno Hill (25%)
Underground 0.1 340.1 1.4
Los Filos 158.4 5.9 29.9
TOTAL SILVER 369.5
GOLD777 (13) 1.2 1.96 0.07
Minto 8.5 0.24 0.07
TOTAL GOLD 0.14
Inferred Resources Attributable to Silver Wheaton (1,2,3,4,5,9,16,17)
As of December 31, 2011 unless otherwise noted(6)
Inferred
ATTRIBUTABLE RESERVES AND RESOURCESFOOTNOTES
63
1. All Mineral Reserves and Mineral Resources have been calculated in accordance with the CIM Standards and NI 43-101, or the AusIMM JORC equivalent.2. Mineral Reserves and Mineral Resources are reported above in millions of metric tonnes (“Mt”), grams per metric tonne (“g/t”) and millions of ounces (“Moz”).3. Individual qualified persons (“QPs”), as defined by the NI 43-101, for the technical information contained in this document (including the Mineral Reserve and Mineral Resource estimates) for the
following operations are as follows:a. Peñasquito – Maryse Belanger, P.Geo. (Vice President, Technical Services, Goldcorp Inc.)b. San Dimas – Rodney Webster, MAusIMM, MAIG (Geology Manager, Principal Geologist), Herbert A. Smith, P.Eng (Mining Manager, Principal Mining Engineer) and J. Morton
Shannon, P.Geo (Geology Manager, Principal Geologist) all of whom are employees of AMC Mining Consultants (Canada) Ltd.c. Pascua-Lama – Dino Pilotto, P.Eng. (Principal Mining Consultant, SRK Consulting (Canada) Inc.); Bart A. Stryhas, Ph.D., CPG (Principal Resource Geologist, SRK Consulting (U.S.)
Inc.)d. 777 – Robert Carter, P.Eng. (Director, Technical Services, Hudbay Minerals Inc.)e. Yauliyacu – Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); Samuel Mah, M.A.Sc., P.Eng. (Director of Engineering), both employees of the Company (the “Company’s
QPs”)f. All other operations and development projects: the Company’s QPs
4. The Mineral Resources reported in the above tables are exclusive of Mineral Reserves. The Minto, Campo Morado, Neves-Corvo, Zinkgruvan and Aljustrel mines report Mineral Resourcesinclusive of Mineral Reserves. The Company’s QPs have made the exclusive Mineral Resource estimates for these mines based on average mine recoveries and dilution.
5. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.6. Other than as detailed below, Mineral Reserves and Mineral Resources are reported as of December 31, 2011 based on information available to the Company as of the date of this document,
and therefore will not reflect updates, if any, after such date. The most current Mineral Reserves and Mineral Resources are available on the Company’s website.a. Resources and Reserves for Yauliyacu, Neves-Corvo and Zinkgruvan are reported as of June 30, 2011.b. Resources for Rosemont are reported as of October 22, 2008 and Reserves as of March 17, 2009.c. Resources for the Constancia and Pampacancha deposits are reported as of November 2, 2011 and April 2, 2012 respectively. Reserves for both Constancia and Pampacancha
deposits are reported as of August 7, 2012.d. Resources for Mineral Park are reported as of December 29, 2006.e. Resources and Reserves for Aljustrel’s Feitais and Moinho deposits are reported as of November 30, 2010, Resources for the Estaçao deposit are reported as of December 31, 2007.f. Resources for Campo Morado’s El Rey, Naranjo and Reforma deposits are reported as of October 13, 2005.g. Resources and Reserves for Stratoni are reported as of August 10, 2010.h. Resources for Keno Hill’s Lucky Queen and Onek deposits are reported as of June 30, 2011 and Elsa Tailings as of April 22, 2010.i. Resources for Loma de La Plata are reported as of May 20, 2009.
7. Process recoveries are the average percentage of silver in a saleable product (doré or concentrate) recovered from mined ore at the applicable site process plants as reported by the operators.8. Mineral Reserves are estimated using appropriate process recovery rates and commodity prices of $20.00 per ounce of silver, unless otherwise noted below:
a. Pascua-Lama, Lagunas Norte, Veladero, Pierina, and 777 – $22.00 per ounce.b. Constancia - $23.00 per ounce.c. Yauliyacu - $30.00 per ounce.d. Neves-Corvo – 1.4% Cu cut-off for the copper Reserve and 5.0% Zn cut-off for the all zinc Reserves except for Lombador which was reported above a cut-off of 6.0% Zn.e. Rosemont –$10.00 per ounce.f. Mineral Park – $7.50 per ounce.g. Zinkgruvan – 3.7% Zn equivalent cut-off for the zinc Reserve and 1.8% Cu cut-off for the copper Reserve.h. Aljustrel – 1.5% Cu cut-off for all copper Reserves, 4.5% Zn cut-off for all zinc Reserves.i. Campo Morado - $30.00 per ounce.j. Minto – $3.90 per ounce silver and $300 per ounce gold.
ATTRIBUTABLE RESERVES AND RESOURCESFOOTNOTES (CONTINUED)
64
9. Mineral Resources are estimated using appropriate recovery rates and commodity prices of $24.00 per ounce of silver, unless otherwise noted below:a. San Dimas - $25.00 per ounce.b. Pascua-Lama, Lagunas Norte, Veladero and Pierina – $28.00 per ounce.c. 777 and Constancia - $22.00 per ounced. Yauliyacu – $30.00 per ounce.e. Neves-Corvo – 1.0% Cu cut-off for the copper Resource and 3.0% Zn cut-off for the zinc Resource.f. Rosemont – 0.2% Cu cut-off.g. Zinkgruvan – 3.1% Zn equivalent cut-off for the zinc Resource and 1.5% Cu cut-off for the copper Resource.h. Mineral Park – $7.50 per ounce.i. Aljustrel – 1.5% Cu cut-off for all copper Resources, 4.5% Zn cut-off for Feitais and Moinho zinc Resources and 4.0% for Estação zinc Resources.j. Campo Morado – $30.00 per ounce for the G-9 zones and 5% Zn cut-off for the El Rey, Naranjo and Reforma deposits.k. Loma de La Plata – $12.50 per ounce.l. Minto – 0.5% Cu cut-off.m. Keno Hill – $15.25 per ounce for the Southwest and 99 Zones, $14.50 per ounce for the East Zone, $17.00 per ounce for the Elsa Tailings and $18.50 per ounce for the Lucky Queen
and Onek deposits.10. The San Dimas silver purchase agreement provides that from August 6, 2010 until August 5, 2014, Primero Mining Corp. (“Primero”) will deliver to the Company a per annum amount equal to
the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus the Company will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. Beginning August 6, 2014, Primero will deliver to the Company a per annum amount equal to the first 6.0 million ounces of payable silver produced at San Dimas and 50% of any excess, for the life of the mine.
11. The Company’s attributable tonnage at Pierina was estimated by assuming 2011 production level for the remaining two years. The Company’s attributable tonnage at Lagunas Norte and Veladero was estimated by assuming 2012 and 2013 processed tonnes based on Barrick’s life of mine (“LOM”) plans. Tonnes for all three operations were pro-rated between Proven and Probable Mineral Reserves according to the ratio of Barrick’s December 31, 2011 Proven and Probable Mineral Reserves. Average reserve grades were applied to the Pierina estimates and the average LOM plan grades were applied to Lagunas Norte and Veladero. LOM plans and December 31, 2011 Mineral Reserves estimates are as published by Barrick.
12. The Company’s Yauliyacu silver purchase agreement (March 2006) with Glencore International AG provides for the delivery of up to 4.75 million ounces of silver per year for 20 years. In the event that silver sold and delivered to Silver Wheaton in any year totals less than 4.75 million ounces, the amount sold and delivered to Silver Wheaton in subsequent years will be increased to make up for any cumulative shortfall, to the extent production permits. Depending upon production levels it is possible that the Company’s current attributable tonnage may not be mined before the agreement expires.The 777 purchase agreement provides that Hudbay Minerals Inc. will deliver 100% of the payable silver for the life of the mine and 100% of the payable gold until completion of the Constancia project, after which the gold stream will reduce to 50%. The gold figures in this table represent 100% of 777 Resources and Reserves.
13. In reliance upon Section 9.2 of NI 43-101, all technical information in this document regarding 777 was sourced by the Company from the Annual Information Form of Hubday Minerals Inc. filed by Hudbay on March 13, 2012 on SEDAR at www.sedar.com. The Company QP’s have approved the disclosure in this document in reliance on such Annual Information Form.
14. The Mineral Park and Rosemont Resources and Reserves do not include the SX/EW leach material since this process does not recover silver.15. The Company’s attributable tonnage at Cozamin was estimated by assuming Capstone Mining Corp’s (“Capstone”) 2012 production guidance of 1.1 million tonnes until the end of the
Company’s Cozamin silver purchase agreement with Capstone. Tonnes were pro-rated between Proven and Probable Mineral Reserves according to the ratio of Capstone’s December 31, 2011 published Proven and Probable Mineral Reserves, applying average reserve grades.
16. The Company has filed a technical report for Yauliyacu, Peñasquito, San Dimas and Pascua-Lama, which are available on SEDAR at www.sedar.com. Please see footnote 13 for further information regarding 777.
17. Silver is produced as a by-product metal at all operations with the exception of the Keno Hill mine and Loma de La Plata project; therefore, the economic cut-off applied to the reporting of silver Resources and Reserves will be influenced by changes in the commodity prices of other metals at the time.
Silver is a unique precious metal• Silver price has high correlation with gold price• Produced primarily as a by-product• Significant industrial applications
Silver is a store of value• Physical silver demand has risen significantly in the past several years
reflecting strong investor interest• ETF inventories remain at historically high levels
Silver is a versatile industrial metal• The best conductor of heat and electricity, the most reflective, malleable yet
strong• Used in a very wide range of products• New uses are being developed at a staggering pace• Relied upon in advancement of developed and emerging economies
65
WHY SILVER?
66
Source: Thomson Reuters GFMS
SILVER DEMANDWHAT IS SILVER USED FOR?
2011 Actual2010 Actual
67
INVESTMENT DEMAND
Silver ETF demand was more volatile in 2011 with a decline of approximately 26Moz**
• This decline was more than offset by continued strong silver bar demand
• Year-to-date ETF demand has been relatively flat
* GFMS estimates; **CPM Group; *** Mitsui
Coins and medals demandincreased by 19% in 2011 posting a new record of 118Moz*
Coins and Medals Demand (in Mozs)
Silver ETF Investment (in Mozs)***
0
50
100
150
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
USA Canada Other
INDUSTRIAL DEMAND
68
Industrial demand estimated to have decreased 2.7% in 2011, due primarily to weaker year-over-year fourth quarter demand
Industrial demand is relatively inelastic to the price of silver (low proportion of input cost)
Source: GFMS
0
100
200
300
400
500
600
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Silv
er (m
illio
n ou
nces
)
Other
Brazing Alloys
Electrical
The largest component of industrial demand is:• Electrical and Electronics• Brazing alloys and solders
Given silver’s unique characteristics of being the best conductor and the most reflective of all metals, and of possessing natural antimicrobial properties, several new industrial uses are forecast to increase future demand
69
DEMAND FROM INDUSTRIAL APPLICATIONS
Source: VM Group July 2011Silver Book
2010 Actual
70
Source: Thomson Reuters GFMS
SILVER SUPPLY
2011 Actual
71
Source: GFMS
SILVER SUPPLY – PRODUCTION GROWTH
World silver mine production was estimated to have increased 1% in 2011
0
100
200
300
400
500
600
700
800
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Silv
er P
rodu
ctio
n (M
ozs)
Latin America North America Asia Oceana CIS Europe Africa
72
Source: GFMS
SILVER SUPPLY – SCRAP
Silver scrap supply was estimated to have risen by 28Moz or 12% in 2011
0
20
40
60
80
100
120
140
160
180
200
220
240
260
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Silv
er S
crap
(M
ozs)
SILVER BULLION INVENTORIES*
73
*Source: CPM Group; **Other inventories include all reported inventories at exchanges, some industry-reported inventories, CPM Group’s estimates of bullion in bar form. It excludes coins and silver held as a form of savings in silverware and jewelry as well.
Total silver bullion inventories declined from 1988-2005 The introduction of silver ETFs in 2006 reversed this trend Government inventories have been declining since 1980 and are estimated at
less than 60Moz of silver
Silv
er (m
illion
s of
oun
ces)
Other silver inventories**
Government silver inventories
Silver inventories held in ETFs
0
500
1,000
1,500
2,000
2,500
3,000
70 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10
0
20
40
60
80
100
120
1833 1843 1853 1863 1873 1883 1893 1903 1913 1923 1933 1943 1953 1963 1973 1983 1993 2003
74
GOLD/SILVER PRICE RATIO1833 - PRESENT
Gol
d/si
lver
ratio
Average Price Ratio = 37:1
Source: Average yearly gold and silver price sourced from www.kitco.com
The ratio of silver to gold in the earth’s crust is approximately 19:1
NON-IFRS MEASURES
75
Silver Wheaton has included, throughout this presentation, certain non-IFRS performance measures, including (i) average cash costs of silver and gold on a per ounce basis; (ii) operating cash flows per share (basic and diluted) and; (iii) cash operating margin.
i. Average cash cost of silver and gold on a per ounce basis is calculated by dividing the cost of sales by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company’s performance and ability to generate cash flow.
ii. 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 it believes that certain investors use this information to evaluate the Company’s performance in comparison to other companies in the preciousmetals mining industry who present results on a similar basis.
iii. 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 it believes that certain investors use this information to evaluate the Company’s performance in comparison to other companies in the preciousmetals 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 pages 19 to 21 of Silver Wheaton’s Q2 2012 Management Discussion and Analysis available on the Company’s websiteat www.silverwheaton.com and posted on SEDAR at www.sedar.com.
