Our Global Assets

Precious Metals Streaming

Precious metals streaming allows Silver Wheaton to purchase, in exchange for an upfront payment, the by-product silver or gold production of a mine that it does not own or operate. The operating costs that Silver Wheaton pays for future production are pre-determined in the agreements, typically at approximately US$4 per ounce of silver and US$400 per ounce of gold produced, with a small inflationary adjustment in most contracts. This amount offsets our partners’ typical cost to produce an ounce of silver or gold.

Fixed costs reduce our shareholders’ downside risk while at the same time providing the upside to increases in the precious metals price. As well, other than the initial upfront cash payment, Silver Wheaton typically does not contribute to future capital expenditures or exploration costs invested by the mine; yet  it benefits from the production and exploration growth that results from these expenditures. This business model often translates into significant value creation for Silver Wheaton shareholders. 

Current Purchase Agreements

Silver Wheaton pursues acquisitions that are accretive to shareholders and low-risk in terms of asset quality and political jurisdiction. To this end, the company currently has fifteen silver purchase agreements and four precious metal purchase agreements with fifteen mining partners around the globe. These agreements cover nineteen mining operations and four development stage projects, and are set out in the table below.
 

1. Until August 6, 2014, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp. After August 6, 2014, Primero will deliver a per annum amount to Silver Wheaton equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess.
2. To a maximum of 4.75 million ounces per annum. 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.
3. The Company is entitled to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
4. Silver Wheaton is entitled to acquire 100% of the life of mine gold production from Hudbay’s 777 mine until Hudbay’s Constancia project satisfies a completion test, or the end of 2016, whichever is later. At that, point Silver Wheaton’s share of gold production from 777 will be reduced to 50% for the life of the mine.
5. Definitive terms of the agreement are in the process of being finalized.
6. Barrick will deliver to Silver Wheaton silver production from the currently producing mines until December 31, 2013. In addition, during 2014 and 2015, Silver Wheaton will be entitled to all or a portion of the silver production from these mines to the extent of any production shortfall relative to the production guarantee levels at Pascua-Lama, until Barrick satisfies the completion guarantee.
7. Silver Wheaton's attributable silver production is subject to a maximum of 8% of the silver contained in the ore mined at Veladero during the period.
8. 95% owned by Eldorado Gold Corporation.