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Silver Wheaton Reports Strong First Quarter Results for 2014

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SOURCE Silver Wheaton Corp.

VANCOUVER, May 8, 2014 /PRNewswire/ --


TSX: SLW
NYSE: SLW

Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE:SLW) is pleased to announce its unaudited results for the first quarter ended March 31, 2014. All figures are presented in United States dollars unless otherwise noted.

FIRST QUARTER HIGHLIGHTS

  • Attributable silver equivalent production in Q1 2014 of 9.0 million ounces (6.9 million ounces of silver and 33,800 ounces of gold), compared to 8.3 million ounces in Q1 2013, representing an increase of 8%.
  • Attributable silver equivalent sales volume in Q1 2014 of 8.1 million ounces (6.2 million ounces of silver and 30,100 ounces of gold), compared to 6.9 million ounces in Q1 2013, representing an increase of 17%.
  • Revenues of $165.4 million in Q1 2014 compared with $205.8 million in Q1 2013, representing a decrease of 20%.
  • Average realized sale price per silver equivalent ounce sold in Q1 2014 of $20.38 ($20.36 per ounce of silver and $1,283 per ounce of gold), representing a decrease of 31% as compared to Q1 2013.
  • Net earnings of $79.8 million ($0.22 per share) in Q1 2014 compared with $133.4 million ($0.38 per share) in Q1 2013, representing a decrease of 40%.
  • Operating cash flows of $114.8 million ($0.32 per share¹) in Q1 2014 compared with $165.6 million ($0.47 per share¹) in Q1 2013, representing a decrease of 31%.
  • Cash operating margin¹ Q1 2014 of $15.81 per silver equivalent ounce compared with $25.33 in Q1 2013.
  • Average cash costs¹ in Q1 2014 were $4.12 and $381 per ounce of silver and gold, respectively. On a silver equivalent basis, average cash costs¹ rose to $4.57 compared with $4.39 in Q1 2013.
  • Declared quarterly dividend of $0.07 per common share. On March 20, 2014, the Company announced that it will be implementing a dividend reinvestment plan whereby shareholders can elect to have dividends reinvested directly into additional Silver Wheaton common shares. The plan will be effective commencing with this quarter's dividend, which will be distributed on or about May 30, 2014.
  • On March 26, 2014, the Company paid $125 million to Hudbay Minerals Inc. ("Hudbay") in satisfaction of the final upfront payment relative to the silver stream on the Constancia project.

[1] Please refer to non-IFRS measures at the end of this press release.

"Silver Wheaton started the year on a strong note, achieving production of 9.0 million silver equivalent ounces in the first quarter of 2014. Production and sales increased, 8% and 17% respectively, compared with the first quarter of 2013," said Randy Smallwood, President and Chief Executive Officer of Silver Wheaton. "Furthermore, we maintained a very healthy cash operating margin of around 70% and operating cash flows of nearly $115 million, despite precious metal prices being down over 30% compared to a year ago. These numbers once again highlight one of the key strengths of our low-cost business model - that even in lower commodity price environments Silver Wheaton can generate some of the highest margins in the industry."

"This is an exciting year for Silver Wheaton as some of our key mining assets are expected to expand and come on line in 2014. During the first quarter, Primero's San Dimas mine completed an expansion from 2,150 to 2,500 tonnes per day, and we expect the true impact of this expansion to be fully realized by Silver Wheaton in 2015 and beyond. Furthermore, towards the end of the first quarter, we made the final payment for the silver stream on Hudbay's Constancia project, where production is expected to begin by the end of 2014. In addition, Vale's Totten mine in Sudbury, which commenced production in the first quarter, is now adding to the gold production we have already been receiving from five of Vale's other mines in Sudbury. Moreover, the expansion of Vale's Salobo mine continues to progress and remains on track to be commissioned in the middle of this year. All things considered, we see 2014 as a step forward for Silver Wheaton as these core assets continue to grow, adding significantly to our growth profile in 2015 and beyond."

Financial Review 

Revenues 

Revenue was $165.4 million in the first quarter of 2014, on silver equivalent sales of 8.1 million ounces (6.2 million ounces of silver and 30,100 ounces of gold). This represents a 20% decrease from the $205.8 million of revenue generated in the first quarter of 2013, due primarily to a 31% decrease in the average realized silver equivalent price ($20.38 in Q1 2014 compared to $29.72 in Q1 2013), partially offset by a 17% increase in the number of silver equivalent ounces sold.

Costs and Expenses 

Average cash costs[1] in the first quarter of 2014 were $4.57 per silver equivalent ounce as compared to $4.39 during the comparable period of 2013. This resulted in a cash operating margin[1]of $15.81 per silver equivalent ounce, a reduction of 38% as compared to Q1 2013. The decrease in the cash operating margin was due to a 31% decrease in the silver equivalent price realized in Q1 2014 compared to Q1 2013.

Cash costs rose year over year primarily due to an increase in gold sales (30,100 ounces in Q1 2014 compared to 16,900 ounces in Q1 2013) associated with Vale S.A.'s ("Vale") Sudbury and Salobo mines. The average cash cost per gold ounce[1] was $381, or $6.06 per silver equivalent ounce[2].

Earnings and Operating Cash Flows 

Net earnings and cash flow from operations in the first quarter of 2014 were $79.8 million ($0.22 per share) and $114.8 million ($0.32 per share¹), compared with $133.4 million ($0.38 per share) and $165.6 million ($0.47 per share¹) for the same period in 2013, a decrease of 40% and 31%, respectively. Earnings and cash flow continued to be impacted by lower gold and silver prices.

Balance Sheet 

At March 31, 2014, the Company had approximately $82.0 million of cash on hand. The combination of cash and ongoing operating cash flows, combined with the credit available under the Company's $1 billion Revolving Facility, positions the Company well to fund all outstanding commitments as well as provide flexibility to acquire additional accretive precious metal stream interests.

In accordance with the provisions of the Company's US$1 billion non-revolving term loan ("NRT Loan"), Silver Wheaton has extended the term of the NRT Loan by one year to May 28, 2017. As of March 31, 2014, Silver Wheaton had $1 billion outstanding under the NRT Loan.

____________________________
[1] Please refer to non-IFRS measures at the end of this press release.
[2] Cash cost per silver equivalent ounce calculated using a gold to silver ratio 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.

Operational and Development Highlights  

During the first quarter of 2014, attributable silver equivalent production was 9.0 million ounces (6.9 million ounces of silver and 33,800 ounces of gold), representing an increase of 8% compared to the first quarter of 2013.

Operational highlights for the quarter ended March 31, 2014, are as follows:

San Dimas - 

As per Primero Mining Corp.'s ("Primero") first quarter 2014 Management's Discussion and Analysis ("MD&A"), the expansion of the San Dimas mine from 2,150 tonnes per day ("tpd") to 2,500 tpd was completed during the first quarter of 2014. Throughput in the first quarter averaged 2,422 tpd. In addition, Primero also indicated that recoveries are expected to improve in the second quarter 2014 with the completion of an additional leaching tank and additional thickener. Primero continues to review the option to further expand the San Dimas mine to 3,000 tpd.

Peñasquito  -  

As stated in Goldcorp Inc.'s ("Goldcorp") first quarter 2014 MD&A, permitting for the Northern Well Field project, which will add 25 new production wells, has been delayed due to unanticipated additional regulatory requirements related to the interconnection with the existing well fields, securing surface land access rights, and additional permitting requirements by the environmental authority. Goldcorp now expects construction to begin during mid-2014 with completion expected around mid-2015. Contingency plans have been developed for fresh water production at the mine to ensure plant production continues as planned. The long term tailings study continued on schedule this quarter with results still expected in the second quarter of 2014.

Goldcorp has indicated that Peñasquito's exploration drilling program continued in the first quarter of 2014, resulting in a total of 6,334 metres drilled. The exploration program continues to define the intersection of the copper-gold sulphide rich skarn ore body and porphyry deposit located below and adjacent to the diatreme ore body. In addition to exploration, Goldcorp is investigating the potential for producing a saleable copper concentrate at Peñasquito as well as assessing the viability of leaching a pyrite concentrate from the zinc flotation tailings. Successful implementation of one or both of these new process improvements has the potential to significantly improve the overall economics and add to the mineral reserves of Peñasquito. As highlighted in Goldcorp's Investor Day presentation on April 10, 2014, these initiatives, if successfully implemented, could also result in an additional 4 to 5 million ounces of silver dore production per year (or 1 to 1.25 million ounces net to Silver Wheaton).

Salobo -  

As per Vale's first quarter 2014 MD&A, the expansion of the mill throughput capacity at the Salobo mine to 24 million tonnes per annum ("Mtpa") from its current 12 Mtpa reached 97% physical completion in the first quarter of 2014. The expansion is expected to come on stream in the second quarter of this year.

Sudbury -  

As per Vale's February 21, 2014 news release, Vale officially opened the Totten mine during the first quarter of 2014. Vale stated that the mine is expected to ramp up to full production in 2016 and process 2,200 tons per day of ore containing copper, nickel and precious metals for approximately 20 years.

Constancia -  

As per Hudbay's first quarter 2014 MD&A, the Constancia project in Peru remains on track for initial production in the fourth quarter of 2014 and commercial production in the second quarter of 2015. Hudbay has incurred $1.2 billion in costs as of March 31, 2014, and the project is now over 71% complete. As per the agreement with Hudbay, in the first quarter Silver Wheaton paid Hudbay the final payment of $125 million in connection with the silver stream on the Constancia Project as Hudbay's total expenditures related to Constancia reached $1 billion. An additional $135 million[1] relative to the gold stream on Constancia will be paid to Hudbay once $1.35 billion in capital expenditures has been incurred on Constancia.

Produced But Not Yet Delivered[2]-

Payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners increased by 0.1 million ounces to approximately 6.3 million silver equivalent payable ounces at March 31, 2014, primarily as a result of an increase related to the 777 mine largely offset by a decrease related to the Yauliyacu mine.

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.

________________________________
[1]Silver Wheaton has the option to make the $135 million payment in either cash or Silver Wheaton shares, calculated with the number of shares determined at the time the payment is made.

[2] 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.

Webcast and Conference Call Details 

A conference call will be held Friday, May 9, 2014, 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:                              27157266

   
Live audio webcast:                     http://www.silverwheaton.com


Participants should dial in five to ten minutes before the call.

The conference call will be recorded. 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:                              27157266

     Archived audio webcast:                 http://www.silverwheaton.com

About Silver Wheaton 

Silver Wheaton is the largest precious metals streaming company in the world. Based upon its current agreements, forecast 2014 annual attributable production is approximately 36 million silver equivalent ounces[1] including 155,000 ounces of gold. By 2018, annual attributable production is anticipated to increase significantly to approximately 48 million silver equivalent ounces[1], including 250,000 ounces of gold. This growth is driven by the Company's portfolio of low-cost and long-life assets, including precious metal and gold streams on Hudbay's Constancia project and Vale's Salobo and Sudbury mines.

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 http://www.silverwheaton.com and have been posted on SEDAR at http://www.sedar.com.

____________________________
[1] Silver equivalent production forecast assumes a gold/silver ratio of 60:1.

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, 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 or 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 http://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, that Silver Wheaton will be successful in challenging any reassessment by the Canada Revenue Agency 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 http://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 toUnited 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.


                        Consolidated Statement of Earnings


                                                                 Three Months Ended
    (US dollars and shares in thousands,                              March 31
      except per share amounts - unaudited)                 2014                   2013

    Sales                                                 $ 165,379              $ 205,761

    Cost of sales
                     Cost of sales, excluding depletion   $  37,088              $  30,410
                     Depletion                               36,621                 24,341

    Total cost of sales                                   $  73,709              $  54,751

    Earnings from operations                              $  91,670              $ 151,010

    Expenses and other income
                  General and administrative [1]          $  10,110              $   9,893
                  Foreign exchange gain                        (281)                  (111)
                  Interest expense                            1,108                    680
                  Other expense                                 910                  2,845
                                                          $  11,847              $  13,307
    Earnings before income taxes                          $  79,823              $ 137,703
    Income tax expense                                          (14)                (4,282)
    Net earnings                                          $  79,809              $ 133,421

    Basic earnings per share                              $    0.22              $    0.38
    Diluted earnings per share                            $    0.22              $    0.37

    Weighted average number of shares outstanding
                                          Basic             357,398                354,423
                                          Diluted           357,940                356,382
                                                          $   2,182              $   1,470

1) Equity settled stock based compensation (a non-cash item) included in
general and administrative expenses.



    Consolidated Balance Sheets

                                                                                  December
                                                          March 31                      31
    (US dollars in thousands
    - unaudited)                                           2014                       2013

    Assets
    Current assets
               Cash and cash
               equivalents                             $    81,970             $    95,823
               Accounts
               receivable                                    5,064                   4,619
               Other                                         1,212                     845
    Total current assets                               $    88,246             $   101,287
    Non-current assets
               Silver and gold
               interests                               $ 4,320,048             $ 4,228,484
               Early deposit -
               gold interest                                13,599                  13,602
               Long-term
               investments                                  48,945                  40,801
               Other                                         6,027                   5,670
    Total non-current assets                           $ 4,388,619             $ 4,288,557
    Total assets                                       $ 4,476,865             $ 4,389,844

    Liabilities
    Current liabilities
               Accounts
               payable and
               accrued
               liabilities                             $    17,655             $    20,416
               Dividends
               payable                                      25,019                       -
               Current portion
               of performance
               share units                                   1,380                     718
    Total current liabilities                          $    44,054             $    21,134
    Non-current liabilities
               Long-term
               portion of bank
               debt                                    $   997,750             $   998,136
               Deferred income
               taxes                                         2,151                   2,191
               Performance
               share units                                   1,235                   1,837
    Total non-current
    liabilities                                        $ 1,001,136             $ 1,002,164
    Total liabilities                                  $ 1,045,190             $ 1,023,298

    Shareholders' equity
    Issued capital                                     $ 1,880,013             $ 1,879,475
    Reserves                                               (15,817)                (25,618)
    Retained earnings                                    1,567,479               1,512,689
    Total shareholders'
    equity                                             $ 3,431,675             $ 3,366,546
    Total liabilities and
    shareholders' equity                               $ 4,476,865             $ 4,389,844


                             Consolidated Statement of Cash Flows

                                                               Three Months Ended
                                                                    March 31
    (US dollars in thousands - unaudited)               2014                      2013

    Operating activities
    Net earnings                                    $    79,809              $     133,421
    Adjustments for
           Depreciation and depletion                    36,688                     24,393
           Amortization of credit facility
           origination fees:
                        Interest expense                     55                        146
                        Amortization of
                        credit facility
                        origination fees -
                        undrawn facilities                  251                      1,005
           Interest expense                               1,053                        534
           Equity settled stock based
           compensation                                   2,182                      1,470
           Performance share units                          147                        214
           Deferred income tax (recovery)
           expense                                         (40)                      4,239
           Loss (gain) on fair value
           adjustment of share purchase
           warrants held                                      -                      1,330
           Investment income recognized in
           net earnings                                     (85)                      (231)
           Other                                            (78)                        (4)
    Change in non-cash working capital                   (4,132)                    (1,110)
    Cash generated from operations                  $   115,850              $     165,407
    Interest paid - expensed                             (1,046)                         -
    Interest received                                        28                        205
    Cash generated from operating
    activities                                      $   114,832              $     165,612

    Financing activities
    Bank debt repaid                                $         -              $     (50,060)
    Bank debt drawn                                           -                  1,090,000
    Credit facility origination fees                       (600)                   (11,518)
    Share purchase warrants exercised                         -                      2,975
    Share purchase options exercised                         13                      1,042
    Cash generated from (applied to)
    financing activities                            $      (587)             $   1,032,439

    Investing activities
    Silver and gold interests                       $  (125,082)             $  (1,900,620)
    Interest paid - capitalized to silver
    interests                                            (2,891)                      (138)
    Silver and gold interests - early
    deposit                                                (149)                         -
    Dividend income received                                 57                         57
    Other                                                   (26)                       (19)
    Cash applied to investing activities            $  (128,091)              $ (1,900,720)

    Effect of exchange rate changes on
    cash and cash equivalents                       $        (7)              $        (12)
    Decrease in cash and cash equivalents           $   (13,853)              $   (702,681)
    Cash and cash equivalents, beginning
    of period                                            95,823                    778,216
    Cash and cash equivalents, end of
    period                                          $    81,970              $      75,535


                             Summary of Ounces Produced and Sold

                       2014                  2013                           2012
                        Q1       Q4       Q3       Q2       Q1       Q4       Q3      Q2

    Silver ounces
    produced
    squared
    San Dimas cubed    1,608    1,979    1,660    1,160    1,743    1,694    1,288   1,231
    Yauliyacu
    squared              718      687      639      668      624      616      640     606
    Peñasquito         2,052    2,047    1,636    1,440    1,093    1,445    1,940   1,822
    Barrick [4]          301      423      465      556      741      769      617     455
    Other [5]          2,181    2,119    2,450    2,586    2,038    2,345    2,251   2,378
    Total silver
    ounces produced    6,860    7,255    6,850    6,410    6,239    6,869    6,736   6,492

    Gold ounces
    produced
    squared

    777               12,785   14,134   18,259   16,986   16,951   19,615   11,824[8]    -
    Sudbury            6,082    6,920    7,341    8,840    9,846        -        -       -
    Salobo             8,903   10,067    8,061    6,342    4,677        -        -       -
    Other [6]          6,016    9,530    2,894    4,226    5,967    6,785    5,200   3,710
    Total gold
    ounces produced   33,786   40,651   36,555   36,394   37,441   26,400   17,024   3,710
    Silver
    equivalent
    ounces of gold
    produced [7]       2,117    2,468    2,237    2,269    2,095    1,432      881     218

    Silver
    equivalent
    ounces produced
    [7]                8,977    9,723    9,087    8,679    8,334    8,301    7,617   6,710
    Silver ounces
    sold
    San Dimas cubed    1,529    2,071    1,560    1,194    1,850    1,629    1,178   1,295
    Yauliyacu          1,097      674       13      559      149    1,097      184   1,155
    Peñasquito         1,840    1,412    1,388    1,058    1,459    1,642    1,304   1,845
    Barrick [4]          361      397      447      560      753      826      528     470
    Other [5]          1,398    1,510    2,257    1,771    1,741    2,153    1,592   2,024
    Total silver
    ounces sold        6,225    6,064    5,665    5,142    5,952    7,347    4,786   6,789

    Gold ounces
    sold
    777                6,294   15,889   16,972   23,483    9,414   28,084        -       -
    Sudbury            6,878    6,551    6,534    4,184      111        -        -       -
    Salobo            10,560    6,944    6,490    2,793      720        -        -       -
    Other [6]          6,390    1,840    5,287    3,409    6,698    4,876    6,905   2,369
    Total gold
    ounces sold       30,122   31,224   35,283   33,869   16,943   32,960    6,905   2,369
    Silver
    equivalent
    ounces of gold
    sold [7]           1,891    1,909    2,163    2,097      971    1,784      357     139
    Silver
    equivalent
    ounces sold[7]     8,116    7,973    7,828    7,239    6,923    9,131    5,143   6,928
    Gold / silver
    ratio [7]           62.8     61.1     61.3     61.9     57.3     54.1     51.7    58.7
    Cumulative
    payable silver
    equivalent
    ounces
    produced but
    not yet
    delivered [9]      6,332    6,273    5,492    4,994    4,264    3,478    5,038   3,114

    1)  All figures in thousands except gold ounces produced and sold.
        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. The Company has been informed by
        Glencore that reported production related to the Yauliyacu mine may have been
        overstated by a total of approximately 200,000 ounces for all or some portion of
        the period between April 1, 2011 and June 30, 2012. The required adjustments to
        production, if any, related to the Yauliyacu mine for these periods will be made
        once management completes a review of the timing and amount of any production
    2)  variance.
        The ounces produced and sold include ounces received from Goldcorp in connection
        with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million
    3)  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.
        Comprised of the Los Filos, Zinkgruvan, Mineral Park, Cozamin, Neves-Corvo,
    5)  Stratoni, Keno Hill, Minto, 777, Aljustrel and Campo Morado silver interests.
    6)  Comprised of the Minto gold interest.
        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
    7)  gold.
    8)  Represents production for the period August 8, 2012 to September 30, 2012.
        Payable silver equivalent ounces produced but not yet delivered are based on
        management estimates. These figures may be updated in future periods as additional
    9)  information is received

Results of Operations (unaudited) 

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.


                              Ounces Ounces       Sales     Average             Average
              Producedsquared  Sold   Realized               Cash
                                        Price                Cost
                                      ($'s Per             ($'s Per
                                       Ounce)              Ounce)[3]
    Silver
              San Dimas [4]    1,608  1,529    $  31,608     $   20.67         $    4.17
              Yauliyacu          718  1,097       22,166         20.21              4.12
              Peñasquito       2,052  1,840       37,562         20.42              4.05
              Barrick [5]        301    361        7,407         20.53              3.9
              Other [6]        2,181  1,398       28,001         20.02              4.19
                               6,860  6,225    $ 126,744     $   20.36         $    4.12
    Gold
                          777 12,785  6,294    $   8,039     $   1,277         $  400
              Sudbury          6,082  6,878        8,812         1,281            400
              Salobo           8,903 10,560       13,479         1,276            400
              Other [7]        6,016  6,390        8,305         1,300            309
                              33,786 30,122    $  38,635     $   1,283         $  381
    Silver equivalent [8]      8,977  8,116    $ 165,379     $   20.38         $    4.57
    Corporate
              General and
              administrative
              Other
    Total corporate
                               8,977  8,116    $ 165,379     $   20.38         $    4.57

    (table continued)
                                                                          Three Months Ended
                                                                             March 31, 2014

                                 Average        Net        Cash Flow              Total
                    Depletion         Earnings       From      Assets
                     ($'s Per                     Operations
                      Ounce)

    Silver
              San Dimas [4]        $   0.81    $  23,986     $  25,232      $      156,246
              Yauliyacu                5.92       11,147        17,646             200,778
              Peñasquito               2.98       24,632        30,111             466,810
              Barrick [5]              3.26        4,823         6,765             602,315
              Other [6]                3.99       16,551        23,288             670,088
                                   $   3.21    $  81,139     $ 103,042      $    2,096,237
    Gold
                          777      $    823    $     344     $   5,522      $      274,848
              Sudbury                   841          273         6,060           1,317,606
              Salobo                    462        4,378         9,255             603,666
              Other [7]                 124        5,536         5,886              27,691
                                   $    552    $  10,531     $  26,723      $    2,223,811
    Silver equivalent [8]          $   4.51    $  91,670     $ 129,765      $    4,320,048
    Corporate
              General and
              administrative                   $ -10,110
              Other                               -1,751
    Total corporate                            $ -11,861     $ -14,933      $      156,817
                                   $   4.51    $  79,809     $ 114,832      $    4,476,865

        All figures in thousands except gold ounces produced and sold and per ounce
    1)  amounts.
        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
    2)  periods as additional information is received.
    3)  Refer to discussion on non-IFRS measures at the end of this press release.
        Results for San Dimas include 375,000 ounces received from Goldcorp in connection
        with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million
    4)  ounces of silver per annum resulting from their sale of San Dimas to Primero.
        Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in
    5)  addition to the non-operating Pascua-Lama silver interest.
        Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Mineral Park ,
        Cozamin, Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
        interests in addition to the non-operating Rosemont, Loma de La Plata and
    6)  Constancia silver interests.
        Comprised of the operating Minto gold interest in addition to the non-operating
    7)  Constancia and Rosemont gold interests.
        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
    8)  gold.

                              Ounces Ounces       Sales     Average           Average
              Producedsquared  Sold   Realized               Cash
                                        Price                Cost
                                      ($'s Per             ($'s Per
                                       Ounce)              Ounce)[3]
    Silver
              San Dimas [4]    1,743  1,850    $  53,903     $   29.13      $     4.13
              Yauliyacu          624    149        4,759         31.94            4.08
              Peñasquito       1,093  1,459       43,574         29.87            4.02
              Barrick [5]        741    753       23,625         31.37             3.9
              Other [6]        2,038  1,741       52,037          29.9            4.15
                               6,239  5,952    $ 177,898     $   29.89      $     4.08
    Gold
                        777   16,951  9,414    $  15,372     $   1,633      $      400
              Sudbury          9,846    111          179         1,609             400
              Salobo           4,677    720        1,153         1,602             400
              Other [7]        5,967  6,698       11,159         1,666             304
                              37,441 16,943    $  27,863     $   1,645      $      362
    Silver equivalent [8]      8,334  6,923    $ 205,761     $   29.72      $     4.39
    Corporate
              General and
              administrative
              Other
    Total corporate
                               8,334  6,923    $ 205,761     $   29.72      $     4.39

    (table_continued)
                                                                       Three Months Ended
                                                                         March 31, 2014

                                 Average        Net        Cash Flow           Total
                    Depletion         Earnings       From      Assets
                     ($'s Per                     Operations
                      Ounce)

    Silver
              San Dimas [4]        $   0.82    $  44,753     $  46,262       $    161,427
              Yauliyacu                5.75        3,295         4,151            214,439
              Peñasquito               2.66       33,834        37,709            483,397
              Barrick [5]              2.54       18,776        24,592            596,621
              Other [6]                4.07       37,738        45,692            447,675
                                   $   2.56    $ 138,396     $ 158,406       $  1,903,559
    Gold
                          777      $    802    $   4,060     $   7,634       $    325,191
              Sudbury                   823           44           134          1,330,022
              Salobo                    463          531           865            623,776
              Other [7]                 171        7,979         8,734             29,443
                                   $    538    $  12,614     $  17,367       $  2,308,432
    Silver equivalent [8]          $   3.52    $ 151,010     $ 175,773       $  4,211,991
    Corporate
              General and
              administrative                   $  -9,893
              Other                               -7,696
    Total corporate                            $ -17,589     $ -10,161       $    188,262
                                   $   3.52    $ 133,421     $ 165,612       $  4,400,253

        All figures in thousands except gold ounces produced and sold and per ounce
    1)  amounts.
        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
    2)  periods as additional information is received.
    3)  Refer to discussion on non-IFRS measures at the end of this press release.
        Results for San Dimas include 375,000 ounces received from Goldcorp in connection
        with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million
    4)  ounces of silver per annum resulting from their sale of San Dimas to Primero.
        Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in
    5)  addition to the non-operating Pascua-Lama silver interest.
        Comprised of the operating Los Filos, Zinkgruvan, Keno Hill, Mineral Park ,
        Cozamin, Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver
        interests in addition to the non-operating Rosemont, Loma de La Plata and
    6)  Constancia silver interests.
        Comprised of the operating Minto gold interest in addition to the non-operating
    7)  Rosemont gold interest.
        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
    8)  gold.

Non-IFRS Measures 

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.


            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
      i.    precious metals mining industry who present results on a similar basis.

            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
      ii.   flow.

            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
      iii.  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 http://www.silverwheaton.com and posted on SEDAR at http://www.sedar.com.

For further information:

Patrick Drouin
Senior Vice President, Investor Relations
Silver Wheaton Corp.
Tel: +1-800-380-8687
Email: info@silverwheaton.com
Website: http://www.silverwheaton.com


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