2. CAUTIONARY STATEMENTS
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are
not limited to, statements with respect to the future price of silver and 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 and statements as to any future dividends. 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, 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 and 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, 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; and differences in the interpretation or application of tax laws
and 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 at
www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions
management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or 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, 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. 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.
forward looking
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, 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
y g ,
“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.
p g g
1
3. Our vision
To be the world’s premier silver focused
streaming company.
t i
To provide shareholders with high quality,
long-term exposure to precious metals.
To offer mine owners an attractive
alternative to debt or equity.
2
4. WHAT IS SILVER STREAMING?
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
Upfront payment (Cash and/or SLW shares)
Partner Mining Company
D li
Delivery payment ($ per ounce of silver)
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
3
5. A WIN-WIN MODEL
WHY IT WORKS
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
value arbitrage
Arbitrage opportunity exists
am
to create value for both
NPV o Silver Strea
Silver Wheaton’s and the
(Illustrative)
Partner’s Shareholders
Value of Future
Silver Stream
of
Value of Future
Silver
Production
Base Metal or Gold Silver Wheaton
Producer
4
7. INDUSTRY LEADER
BY MARKET CAPITALIZATION
Metals Streaming and Worldwide Senior
Royalty Co pa es
oya ty Companies S e
Silver Producers
oduce s
4%
5%
6%
21%
($5.0B)
7%
45%
49%
($12.0B)
($12 0B) ($16.5B)
30%
($7.1B) 33%
($12.0B)
Silver Wheaton Franco-Nevada Royal Gold Fresnillo Silver Wheaton
Pan American
P A i Hochschild
H h hild
Coeur d'Alene Hecla
* As of Aug. 27, 2012
6
8. MORE SILVER RESERVES AND RESOURCES
THAN ANY OTHER SILVER COMPANY IN THE WORLD
1,800
Inferred
1,600
zs)
Measured & Indicated
sources (Moz
1,400 Reserves
1,200
1,000
1 000
rves and Res
800
600
Silver Reser
400
200
0
Silver Fresnillo Pan Silver Bear Creek Polymetal Coeur Levon Hecla Tahoe
Wheaton American Standard Mining d'Alene Resources Mining
Silver Resources Mining
Silver Wheaton has more than twice the silver reserves
of any other silver company in the world
*Source: Company Reports, Metals Economics Group data for Polymetal, Silver Standard Resources and Fresnillo
7
9. WORLD’S SECOND LARGEST SILVER PRODUCER
2012 Silver Production Guidance*
45 ** Silver Wheaton’s 2012 silver equivalent production
Wheaton s
41.00
41 00
guidance is 28Mozs, including 42koz of gold
40
35
30
Silver (Mozs)
25.90 ** 24.88
25
19.25
20
14.40
14 40
15
10 7.00
5
0
Fresnillo Silver Wheaton Pan American Coeur Hochschild Hecla
Silver D'Alene
Silver Wheaton is the world’s 2nd largest silver producer
* Based on Company Reports, Pan American Silver and Coeur D’Alene is midpoint of 2012 production guidance
8
10. HIGH QUALITY ASSET BASE
DIVERSIFIED PORTFOLIO
Operating Mines (17) Development Projects (4)
Well diversified with low political risk
9
11. HIGH QUALITY ASSET BASE
LOW-COST MINES
2012 Forecast Production 2016 Forecast Production
By Cost Quartile* By Cost Quartile*
9%
12%
6%
%
3%
9% 5%
76%
80%
First Second Third Fourth
85% of long-term attributable production comes from low-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
10
12. HIGH QUALITY ASSET BASE
LONG-LIFE MINES
2012 Forecast Production 2016 Forecast Production
By Mine Life*
y By Mine Life*
y e e
20%
32% 24%
44%
8%
14% 30%
28%
Mine life:
Mine life:
20+yrs 15-20yrs 10-15yrs <10yrs
~ 80% of long-term attributable production comes from long-life mines
* Source: Company Reports, based on mine life from 2012, 777 Mine production annualized for 2012
11
13. WORLD-CLASS CORNERSTONE ASSETS
POSITIVE PROGRESS CONTINUES
Mine Peñasquito Pascua Lama
Pascua-Lama
Operator
Location Mexico Chile/Argentina
Status Operating Prod start forecast mid 2014
mid-2014
Av. Annual Silver Production* 28Moz 35Moz (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+
Cornerstone assets run by two of the world’s largest gold companies
*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
12
14. THE HUDBAY DEAL
CONTINUING THE GROWTH
Announced on August 8, 2012
777 Mine & Constancia Project
Provides Immediate Cash Flow
Hudbay’s 777 Mine (Canada)
Enhances Long Term Growth
Increases Portfolio Diversification
Provides Downside Protection
Hudbay’s Constancia Project (Peru)
13
15. THE HUDBAY DEAL
TWO NEW HIGH-QUALITY PRECIOUS METAL STREAMS
• 100% life-of-mine silver production
777 Stream • 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
life of mine
• Cash payment of US$500M paid on closing
Consideration • US$125M p
$ paid after US$500M CAPEX spent at Constancia
$ p
• Remaining US$125M paid after US$1B CAPEX spent at Constancia
• $5.90/oz for silver*
Production Payments
• $ 00/ f gold*
$400/oz for *
Constancia Completion
• 90% of expected throughput and recovery by the end of 2020
Test
* Subject to an inflationary adjustment of 1% beginning in the fourth year
14
16. THE HUDBAY DEAL
ACCRETIVE ON ALL KEY METRICS
Accretion per Share to Silver Wheaton Shareholders*
15% 14.0%
13.5% 13.5%
12.9%
10.7%
10 7%
10% 9.4%
5%
0%
Production Production Proven and Total AgEq Cash Flow Cash Flow
(Short Term) (Long Term) Probable AgEq Resources (Short Term) (Long Term)
Reserves** (excl. Inf.)**
* 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 $1,600, respectively; ** Based on
P&P reserves and M&I resources, reserves and resources are on a silver equivalent basis assuming a 50:1 Au/Ag ratio, see appendix for full reserve and resource tables
15
17. THE HUDBAY DEAL
POSITIVE PROGRESS CONTINUES
Mine 777 Constancia
Location Manitoba, Canada Peru
Status Operating Prod start forecast 2014
820koz Ag & 68koz Au (2012-2016)** 2.4Moz (2015-2019)
Av.
Av Annual Production*
870koz Ag & 50koz Au (life-of-mine) 2.2Moz (life-of-mine)
P&P Silver Reserves*** 10.9Moz Ag & 0.7Moz Au 48.8Moz Ag
M&I Silver Resources*** 33.9Moz
Inferred Resource*** 1.5Moz Ag & 0.1Mz Au 13.4Moz
By-product Cash Costs ($/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
16
18. THE HUDBAY DEAL
LOW COST MINING OPERATIONS
2011 - Copper Mines - Total Cash Costs per lb Cu
$4.50
$4.00
$4 00
$3.50
$3.00
$2.50
Constancia
Constancia**
US$ / lb Cu
u
$2.00
$1.50
$1.00
$0.50
$0 50
777*
$0.00
-$0.50
-$1.00
-$1.50
0 10 20 30 40 50 60 70 80 90 100
Cumulative Percentile Production (%)
777 is in the lowest cost quartile,
while Constancia is on the lower end of the second cost quartile
* Byproduct cash costs are based on Wood Mackenzie estimates; ** From Hudbay Minerals press release dated August 8, 2012
17
19. THE HUDBAY DEAL
INCREASED DIVERSIFICATON BY METAL
2012-2016 Forecast 2012-2016 Proforma Forecast
Average Annual Revenue*
g Average Annual Revenue*
g
5%
15%
95%
85%
Silver Gold
Significant increase in gold production
* 777 Mine production annualized for 2012, revenues based silver and gold prices of $28 and $1,600, respectively
18
20. THE HUDBAY DEAL
INCREASED DIVERSIFICATION BY MINE
2012 Proforma Forecast 2016 Proforma Forecast
Production by Mine
Mine* Production by Mine
16% 12%
20% Pascua-Lama
P L
Peñasquito 3% 25% Peñasquito
3% San Dimas**** 3%
San Dimas****
5% 777 4% Rosemont
Yauliyacu
777
Barrick Other*** 5%
8% Constancia
19% Zinkgruvan Yauliyacu
Cozamin 12%
Zinkgruvan
8% Minto (gold)*****
6%
Cozamin
Other Minto (gold)*****
8%
13% Other
8% 8%
14%
Diversified asset base with no single asset accounting for more that 25% of production
* 777 Mine annualized for 2012
19
21. STRONG PRODUCTION GROWTH
INDUSTRY LEADING GROWTH PROFILE
~48Moz**
oz)
50 Constancia
C t i
oduction (Mo
777
40 Pascua-Lama
Barrick Other***
~28Moz
~28Moz**
Silver Equivalent Pro
Rosemont
R t
30 25.4Moz*
Peñasquito
San Dimas****
20
Yauliyacu
Zinkgruvan
Zi k
10 Minto (gold)*****
Cozamin
0 Other
2008A 2009A 2010A 2011A 2012E 2016E
5 Year Production Growth ~90%
Silver Wheaton is forecast to receive silver from 17 operating mines in 2012
g
* 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 inlcudes 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
20
23. SIGNIFICANT MARKET SHARE
INVESTMENT IN THE SILVER INDUSTRY
Percentage Allocation of Investment Dollars*
100%
12%
90%
80%
70%
60%
50% 62%
40%
30%
20%
26%
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 LTM Aug.
28, 2012
= Silver Wheaton = Silver ETFs** = Senior Silver Producers***
* Measured by average daily trading volume in US dollars, source is Bloomberg market data as of May 30, 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
22
24. SILVER WHEATON VERSUS SILVER PRODUCERS
Greater upside to increases in the silver price
Fixed operating* and capital costs
N ongoing exploration costs
No i l ti t
Unique and sustainable dividend policy
Greater diversity of assets
Tax efficient business model
Strong upside potential with downside protection
* 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
23
25. FOCUSED ON SILVER
Silver revenue as a percentage of total revenue*
Width of bars based on actual 2011 production**
100% 97%
Post Hudbay Acquisition:
90%
Forecast Revenue 85% Ag &15% Au***
80% 70% 71%
65%
70%
60%
60%
40%
50%
40%
30%
20%
10% 25.4 15 21.9 19.1 41.9 9.5
Moz Moz Moz Moz Moz Moz
0%
Silver Wheaton Hochschild Pan American Coeur D'Alene Fresnillo Hecla
Silver
Sil
* 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
24
26. EXPANDING CASH OPERATING MARGINS
FIXED OPERATING COSTS
$40
$34.60
Silver Pric (US$/oz)
$35
$30.73
$30
$
$25
ce
$20.75
$31.25
$20
$14.97 $15.02
$15 $13.42 $16.63
$11.72
$11.10
$10 $9.51
$9 51 $11.03
$11 03
$7.30 $7.31 $7.82
$3.40 $3.41
$5
$3.90 $3.90 $3.90 $3.91 $3.94 $3.97 $3.97 $3.99 $4.03
$0
2004 2005 2006 2007 2008 2009 2010 2011 H1 2012
Total Cash Cost/oz* Cash Operating Margins*
Fixed cash costs** provide shareholders
with full benefit of increasing silver prices
* 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
25
27. SUPERIOR ASSET DIVERSIFICATION
25
Producing Assets
P d i A t Development A
D l t Assets
t
21
20
4
ets
mber of Asse
15 14
13
10 7 5
17 7 7
Num
1 5
5 3
7 8 3
6
4
2
0
Silver
Sil Fresnillo
F ill Pan A
P American
i Coeur D'Al
C D'Alene Hochschild
H h hild Hecla
H l
Wheaton Silver
Silver Wheaton offers superior asset diversification compared to other silver producers
p p p
* Source: Company disclosure, development assets include projects with defined resources
26
32. GROWING RESERVES AND RESOURCES
THROUGH ACQUISITIONS AND EXPLORATION
Silver Reserves and Resources (in Moz)*
219
219 275
275
370
(Inf)
482
1,411 (M&I)
1,411
857
(P&P)
173 (Inf)
4(M&I)
69 (P&P)
2004 R+R Total Acquired Total Mined Total Exploration R+R incl. Hudbay *
Silver Wheaton’s production has been more than replaced through
successful exploration b our partners
f l l ti by t
* 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
31
34. CREATING SHAREHOLDER VALUE
TRACK RECORD OF ACCRETIVE ACQUISITIONS
Total attributable reserves and resources per share since inception*
6.0
5.0
share
4.0
Silver oz/s
3.0
2.0
1.0
0.0
2004 2005 2006 2007 2008 2009 2010 2011 Current **
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
33
35. LARGE TARGET MARKET
Silver Wheaton vs. Global Silver Production
oz)
al)*
1000
roduction (Mo
(Silver Output by Mine’s Source Meta
Traditional
900
Silver
800 Companies
700 Primary Silver Mines
obal Silver Pr
600 Gold Mines
500 Base Metal Mines
400 Silver Wheaton’s Silver Wheaton’s
Potential Target
g Forecast Production
o ecas oduc o
Forecast Glo
300 Market (% of potential target
200 market)
100 6%
4%
0
2011A 2012E 2013E 2014E 2015E 2016E SLW SLW
2012 2016
>70% of mined silver is produced as a by-product from base metal or gold mines
i ifi t th t ti l i th il t
= significant growth potential in the silver stream space
* Source: CPM Group silver production forecasts by source metal
34
36. CORPORATE DEVELOPMENT
FAVORABLE DEAL MAKING ENVIRONMENT
Spot Silver Prices vs. Long-term Analyst Consensus
$50
$45
Spot Silver Price Analyst Consensus LT Silver Price
$40
z.)
Mineral Park
Silver Price (US$ / oz
$35
$ Hudbay
Campo Morado
$30 Silverstone
Barrick
$25 Keno Rosemont
Peñasquito
Hill
$20 Yauliyacu Stratoni
Luismin
Zinkgruvan
$15
$10
$5
$0
Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Transactions have typically occurred when long-term
long term
analyst consensus silver prices are approximately 75% of spot silver prices
35
37. STRONG BALANCE SHEET
TO FUND FUTURE GROWTH
$1.1Bn
$500M payable to
Hudbay upon closing
of Hudbay precious
metal and silver
streams transaction
$610M
$400M $388M**
$138M*
$64M
Cash and cash equivalents Undrawn credit facility Silver interest commitments Total debt
net of initial payment
p y (installments of $7M
( $
(as of 03/31/12) per quarter)
Strong balance sheet and future operating cash flows leave us exceptionally
well-positioned to pursue additional accretive silver stream opportunities
p p pp
* Includes remaining upfront cash payment of US$137.5M for Barrick transaction, ** 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)
36
39. DIVIDEND YIELD
A 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
quarter s
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%
p g
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
* 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
38
41. THE PROOF…
IS IN THE PRICE PERFORMANCE
1400%
1200%
1000%
SLW
800%
600%
400% Silver
200%
PAAS
0% SSRI
-200% HL
CDE
-05
-06
-07
-08
-09
-10
-12
-11
-11
-04
-05
-05
-06
-06
-07
-07
-08
-08
-09
-09
-10
-10
-12
-11
-11
-05
-06
-07
-08
-09
-10
Jul-
Jan-
Apr-
Oct-
Jan-
Jan-
Jan-
Jan-
Jan-
Jan-
Jan-
Oct-
Apr-
Oct-
Apr-
Oct-
Apr-
Oct-
Apr-
Oct-
Apr-
Oct-
Apr-
Oct-
Apr-
Jul-
Jul-
Jul-
Jul-
Jul-
Jul-
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
Source: Thomson One, as of Aug. 27, 2012
40
42. FASTEST GROWING COMPANY
BREAKING NEWS – SEPTEMBER 6, 2012
,
Rank Company Earnings Growth* Revenue Growth* Total Return*
1 Silver Wheaton 340% 76% 49%
2 Cirrrus Logic 450% 39% 88%
3 Baidu 99% 72% 56%
4 HollyFrontier 93% 51% 64%
5 HFF 341% 41% 53%
6 lululemon athletica 81% 45% 109%
7 Northern Oil and Gas 122% 237% 36%
8 Apple 70% 52% 60%
9 IPG Photonics 100% 37% 58%
10 RPC 121% 38% 50%
Silver Wheaton Ranked as the Fastest Growing Company Internationally by Fortune
* 3 year average. ** Fortune Magazine’s methodology: To qualify, a company - domestic or foreign - must be trading on a major U.S. stock exchange; report data in U.S. dollars;
file quarterly reports with the SEC; have a minimum market capitalization of $250 million and a stock price of at least $5 on June 29, 2012; and have been trading continuously
since June 30, 2009.The overall rank is based on the sum of the three ranks. Once the 100 companies are identified, they are then re-ranked within the 100, using the three
equally weighted variables. If there is a tie, the company with the larger four-quarter revenue receives the higher rank. To view the complete methodology and full Top 100 list,
please visit http://money.cnn.com/magazines/fortune.
43. 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.
42
46. LIQUID STOCK
CAPITAL STRUCTURE AS OF JUNE 30, 2012
,
Shares Outstanding
g 353.9 million
Warrants Outstanding (in-the-money) 2.7 million
Options Outstanding (in-the-money) 1.7 million
Shares Fully Diluted 358.3 million
3 Month Average Daily Trading Volume:
TSX:
TSX 1.3
1 3 million shares
NYSE: 4.8 million shares
45
47. SILVER STREAM AGREEMENTS
PRODUCERS
Peñasquito San Dimas 777 Yauliyacu Zinkgruvan Cozamin
Company
Status Producing Producing Producing Producing Producing Producing
Contract
LOM LOM LOM 20 yrs LOM 10 yrs
Length
up to 4.75 M
Ag Prod.
g 25% 100%* 100%** 100% 100%
oz/yr
/
Mine Life 22+ yrs 15+ yrs 9+ yrs 10+ yrs 10+ yrs 7+ yrs
$5.90/oz Ag
Cash Costs $
$3.99/oz $
$4.09/oz $
$4.02/oz $
$4.14/oz $
$4.08/oz
$400/oz Au
$400/ A
Annual Ag 820 koz Ag Up to
7 Moz 5+ Moz 2 Moz 1.5 Moz
Production 68 koz Au*** 4.75 M oz
* 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
46
48. SILVER STREAM AGREEMENTS
PRODUCERS (CONTINUED)
Lagunas
Minto Stratoni Campo Morado Pierina Veladero
Norte
Company
Status Producing Producing Producing Producing Producing Producing
Contract
LOM LOM LOM to 2014** to 2014** to 2014**
Length
Ag Prod.
g 100%* 100% 75% 100% 100% 100%***
Mine Life 10+ yrs 6+ yrs 10+ yrs 9+ yrs 4+ yrs 21+ yrs
$3.94/oz Ag
Cash Costs $3.98/oz $3.90/oz $3.90/oz $3.90/oz $3.90/oz
$303/oz Au
Annual Ag 0.2 Moz Ag
1+ Moz 1+ Moz 0.5 Moz 1+ Moz 1+ Moz
Production 20,000 oz Au
* I l d 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 th
Includes ld d ti d ti d 30,000 f ld Sil Wh t i titl d t f th ld d d t th th h ld d f 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
47
49. SILVER STREAM AGREEMENTS
PRODUCERS (CONTINUED)
( )
Neves-Corvo Mineral Park Los Filos Keno Hill Aljustrel
Company
Status Producing Producing Producing Producing Producing
Contract
LOM LOM 25 yrs LOM LOM
Length
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
0.5 Moz 0.5+ Moz 0.2-0.3 Moz 0.5+ Moz 0.1Moz
Production
48
50. SILVER STREAM AGREEMENTS
DEVELOPMENT ASSETS
Pascua-Lama Constancia Rosemont Navidad
Company
Status Development Development Development Development
Contract
LOM LOM LOM LOM
Length
Ag Prod. 25% 100% 100%*** 12.5%*****
Mine Life 25+ yrs 16+ yrs 21+ yrs 15+ yrs
$3.90/oz Ag
Cash Costs $3.90/oz $5.90/oz US$4.00/oz
$450/oz Au
Annual Ag 2.4 Moz Ag
9 M oz* 2.2 Moz** 1.0-2.0 Moz
Production 15,000 oz Au****
* 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
49
51. SILVER WHEATON’S EQUITY INVESTMENTS
Property of
Corani Rock Creek Montanore Hackett River
Interest
Ownership 15% 17% 11% 7%
Advanced
Stage Permitting Pre-Feasibility Pre-Feasibility
Exploration
P&P 270
Resource M&I 166 Ind. 200
M&I 89 Inf. 229
(Ag M o )
oz) Inf.
I f 65 Inf.
I f 64
Inf. 48
Est. Annual Ag
+13 M oz/yr* 6 M oz/yr N/A 12 M oz/yr
Production
Source: Company Reports, * For first 5yrs, 8M oz/yr LOM
50
52. SIGNIFICANT GROWTH POTENTIAL
SILVER WHEATON’S RIGHT OF FIRST REFUSAL PORTFOLIO
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
D l t Hermosa Sil
H Silver P j t
Project
*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
51
53. PASCUA-LAMA
DRIVER 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
i f th il d ti f th f B i k’
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
Average annual production to SLW of approx. 9Moz Ag in the mine’s first full five years***
*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
52
54. 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
53
55. PEÑASQUITO
PRIMARY GROWTH ENGINE UNTIL 2013
Key driver of growth until Pascua-Lama commences production in 2013
Sil
Silver Wh
Wheaton to receive 2 % of lif f i silver production
i 25% f life-of-mine il d i
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
Average annual production of approximately 7Moz Ag to Silver Wheaton over life-of-mine
54
56. 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
finalized,
of US$230 million plus ongoing production payment
Rosemont Project in Arizona
Entitled to 12.5% of life of mine silver production from
the Loma de La Plata zone of Pan American Silver’s
Silver s
Navidad project
• One of the largest undeveloped silver deposits in the world
• Forecast to increase long-term silver production by up to
g p y p
2Moz per annum**
•
Once permits finalized and construction commences, SLW to
make upfront cash payments of US$32.4 million plus ongoing
Navidad Project in Argentina
production payment
Two projects provide ~5Moz of long-term silver production
* Based on Augusta Resource Corporation’s Jul. 24, 2012 disclosure; ** Based on Pan American Silver’s Jan. 2011Preliminary Economic Assessment
55
57. FAVORABLE POLITICAL RISK PROFILE
THE RIGHT JURISDICTIONS
NAV Weighted Political Risk Rankings*
Following the
4.00
4.00
4.00
completion of the
4
4
4
4.0
Hudbay Deal, the
addition of 777
3.00
3.00
3.00
3.00
3.00
3.00
Mine in Canada will
2.97
lower risk profile
2.71
3.0
2.62
39
2.3
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
2.0
1.59
1.50
1.30
00
00
00
00
00
00
1.0
1.0
1.0
1.0
1.0
1.0
1.0
0.0
DGC
YRI
XG
AEM
NSU
CAN
BSX
PAA
ABX
XRC
K
P
NMC
CG
JAG
AGI
AUM
SGR
CNL
SMF
G
RMX
LSG
AUQ
NGD
OSK
IMZ
IMG
LYD
ELD
BTO
SLW**
FNV
GUY
THO
Silver Wheaton ranks very favorably on the political risk spectrum
*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
56
58. SILVER IS OFTEN A NON-CORE ASSET
World’s 10 Largest Companies by
Silver Reserves & Resources
3,000
3 000
Silver Reserve and Resources (Mozs)
)
Inferred
2,500 Measured and Indicated
Reserves
2,000
1,500
es
1,000
500
S
0
Xstrata KGHM Goldcorp Silver Fresnillo Silver Barrick Pan BHP Billiton Allied
Polska Wheaton Standard American Nevada
Silver
Copyright Metals Economics Group - MineSearch - 2012
Significant silver reserves and resources within non-silver dominant companies
57
