Wheaton Precious Metals

Silver Wheaton was established in 2004. It was previously controlled by Goldcorp until December 7, 2006 when Goldcorp's sale of 18 million shares reduced its ownership to 48%. On February 14, 2008 Goldcorp divested itself completely of Silver Wheaton, selling 108 million shares for C$1.566 billion.{{cite press release | url=https://www.wheatonpm.com/news/news-details/2008/Goldcorp-Completes-Sale-of-its-48-Interest-in-Silver-Wheaton/default.aspx | title=Goldcorp Completes Sale of its 48% Interest in Silver Wheaton | publisher=Wheaton Precious Metals Corp. | date=February 14, 2008 | access-date=December 17, 2024}}

Silverstone Resources, acquired in 2009 previously traded on the TSX Venture Exchange under the symbol SST (delisted May 25, 2009 just after the takeover) as a Tier 1 stock (the exchange's premier tier).{{Cite web |title=Silverstone Resources Corp |url=http://ih.advfn.com/p.php?pid=squote&symbol=TSX:SST |access-date=2010-11-09}}{{Cite web |date=2010-06-14 |title=tsx venture exchange Tiers and Industry Segments |url=http://www.tmx.com/en/pdf/Policy2-1.pdf |access-date=2010-11-09 |archive-date=2010-12-01 |archive-url=https://web.archive.org/web/20101201184508/http://tmx.com/en/pdf/Policy2-1.pdf |url-status=dead }}

In October 2020, the company was admitted in the London Stock Exchange{{Cite web |last=Ellis |first=Dominic |title=Wheaton Precious Metals lists on London Stock Exchange {{!}} Supply Chain & Operations {{!}} Mining Global |url=https://www.miningglobal.com/supply-chain-and-operations/wheaton-precious-metals-lists-london-stock-exchange |access-date=12 February 2021 |website=www.miningglobal.com |date=28 October 2020 |language=en}} under the ticker WPM.{{Cite web |title=Admission to Trading on the Main Market of the LSE – 07:00:03 28 Oct 2020 – WPM News article {{!}} London Stock Exchange |url=https://www.londonstockexchange.com/news-article/WPM/admission-to-trading-on-the-main-market-of-the-lse/14734411 |access-date=12 February 2021 |website=www.londonstockexchange.com}}

Although most agreements it makes are short-term contracts, at least one with the Penasquito mine in Mexico lasts the length of the mine's life. Until the third quarter of 2012 all of the gold it sold came from the Minto Mine in the Yukon, acquired in mid-2009 following the Cdn $190 million acquisition of Silverstone Resources Corp.{{Cite web |date=2009-05-22 |title=Vancouver silver companies close $190 million merger deal |url=http://www.bivinteractive.com/index.php?option=com_content&task=view&id=1640&Itemid=46|archive-url=https://web.archive.org/web/20110826235422/http://www.bivinteractive.com/index.php?option=com_content&task=view&id=1640&Itemid=46|url-status=usurped|archive-date=August 26, 2011}} In 3q2012 it started receiving gold from HudBay's 777 polymetallic mine in Manitoba [http://www.silverwheaton.com/SilverStreams/seven/default.aspx]. In 2013 it began receiving gold from 3 new mines: Sudbury (33,000 oz), Salobo (29,100 oz), and Constancia. Average realized price for gold produced at 777 was $1390 which is similar to Minto however, average realized cash cost is 32% higher at mine 777 ($400 vs $303).{{Cite web |date=2013-03-21 |title=Silver Wheaton 2012 Annual Report |url=http://www.silverwheaton.com/files/docs_financials/SILV_Financials_Web_Sedar_FINAL.pdf |access-date=2013-07-01 |archive-date=2013-06-01 |archive-url=https://web.archive.org/web/20130601120732/http://www.silverwheaton.com/files/docs_financials/SILV_Financials_Web_Sedar_FINAL.PDF |url-status=dead }}

In total, there are 15 agreements with 11 different companies; being able to pay a large portion of the contract price in cash initially, and having already developed extensive relationships with mining companies, helps it gain access to the commodity.{{Cite web |title=Silver Wheaton (SLW) |url=http://www.wikinvest.com/stock/Silver_Wheaton_%28SLW%29 |archive-url=https://web.archive.org/web/20080914031947/http://www.wikinvest.com/stock/Silver_Wheaton_(SLW) |url-status=dead |archive-date=September 14, 2008 |access-date=2010-11-07}} In 2013 the average price paid per ounce of pure silver was $4.12 up from $4.06, $3.99, $3.97 in 2012, 2011, 2010. Penasquito (one of the largest silver deposits in the world, Silver Wheaton's 25% interest would rank in the top 25 silver mines in the world) will give the company an average of 7 million ounces annually for 22 years (begins early production in 2010–2011). In 2013 Penasquito produced 6.216 million ounces for Silver Wheaton (down from 6.572m in 2012, 5.284m in 2011) at a cost of $4.02 per ounce (up from $3.99, $3.93). Like over half of the world's silver producing mines, the Penasquito mine also produces lead, copper and zinc.{{Cite web |title=The Canadian Business Journal |url=http://www.canadianbusinessjournal.ca/business_in_action/energy/silver_wheaton_e.html |access-date=27 December 2010}} In 2013 company production totaled 35.823 million ounces (26.754 million of that pure silver +0%, the rest being gold) 22.0% higher than 2012, 41.2% more than 2011, +110% vs 2009. In 2013 it sold 29.963 million ounces of silver equivalent (+9.6%) at an average price per ounce of $23.58 ($31.09 in 2012, $34.65 in 2011). In 2013 the unit price paid for pure silver was up six cents to $4.12 (incl gold $4.65) while the realized price was down 717 cents to $23.86 (incl gold $23.58). In 2011 though the unit price paid per silver equivalent ounce was only five cents higher at $4.09 it sold each ounce for 67.6% more, in 2010 it was 36.6% more. Total revenue was down 17% in 2013, up 16% in 2012, up 72% in 2011.

The silver it has agreed to purchase is in Mexico (40%), Portugal (20%), US (10%), Chile (9%), Peru (9%), Argentina (7%), Sweden (4%), Greece and Canada (about 1%).{{Cite web |date=2010-03-04 |title=Silver Wheaton 2009 Annual Report |url=http://www.silverwheaton.com/Theme/SilverWheaton/files/docs_financials/Silver%20Wheaton%202009%20Annual%20Report%20%28long%20form%29.pdf}} Silver Wheaton doesn't own or operate the mines but the contracts it has with their owners gives it full access to any silver (gold at the Minto Mine) mined there. The six mines from which the company gets most of its silver are : San Dimas, Penasquito, Barrick (made up of five parts), Yauliyacu, Zinkgruvan, Cozamin and Minto. In addition there are six other smaller mines that contribute about 22% of the total.{{Cite web |date=2010-08-11 |title=Silver Wheaton 2010 First Half Results |url=http://www.silverwheaton.com/News/PressReleases/PressReleaseDetails/2010/Silver-Wheaton-reports-record-second-quarter-earnings1122546/default.aspx}}

The San Dimas mine was sold by Goldcorp in the summer of 2010 to Mala Noche Resources Corp. (later renamed Primero Mining) for half a billion dollars complicating things for Silver Wheaton which had already made an agreement with Goldcorp for the silver.{{Cite news |last=Bouw |first=Brenda |date=2010-06-02 |title=Goldcorp selling Mexican gold-and-silver mine |work=The Globe and Mail |location=Toronto |url=https://www.theglobeandmail.com/globe-investor/goldcorp-selling-mexican-gold-and-silver-mine/article1589113/}} In response Silver Wheaton agreed to a new contract agreement.{{Cite web |date=2010-06-02 |title=Goldcorp Announces Sale Of San Dimas Min |url=http://www.goldcorp.com/news/goldcorp/index.php?&content_id=780}} The Penasquito mine which began producing in September 2010 (and has a mine life of 22 years) is Mexico's largest open pit mine.{{Cite web |date=2010-10-19 |title=Peñasquito Mine |url=http://www.infomine.com/minesite/PenasquitoMinesitereport.html}}{{Cite web |date=2010-09-13 |title=Goldcorp hits commercial production at Penasquito |url=http://www.miningweekly.com/article/goldcorp-hits-commercial-production-at-penasquito-2010-09-13}}{{Cite web |date=2010-08-11 |title=Silver Wheaton Third Quarter Report 2010 |url=http://www.silverwheaton.com/Theme/SilverWheaton/files/2010%20Q3%20Financial%20Statements%20and%20MDA.pdf}}

The agreement it has with Barrick Gold involves the silver produced at 4 mines; Pascua Lama, Lagunas Norte (Peru), Pierina (Peru) and Veladero (Argentina).{{Cite web |date=September 22, 2009 |title=Silver Wheaton closes acquisition of silver production from Barrick Gold Corporation |url=http://www.24hgold.com/english/news-company-gold-silver-closes-acquisition-of-silver-production-from-barrick-gold-corporation.aspx?articleid=480205}} The deal involving the Lagunas Norte, Pierina and Veladero mines was made in September 2009, required an initial deposit of $212.2 million, gives Silver Wheaton 100% of the silver produced and ends at the conclusion of 2013.{{Cite web |date=2009-09-14 |title=The Warrant Report |url=http://www.preciousmetalswarrants.com/thewarrantreport/9-14-09_SilverWheaton.htm}} The Pascua-Lama mine (at the border of Chile and Argentina) contract gives Silver Wheaton access to a quarter of the silver produced there from 2013 to 2017 and could raise silver sales by 30%.

Subsidiary Silverstone Resources Corp. owns 100% of the life of mine silver produced at mines in Neves-Corvo and Aljustrel, Portugal. The Lundin Mining owned Neves-Corvo mine located near the Iberian Pyrite Belt is primarily a copper and zinc producer.{{Cite web |date=May 2010 |title=Neves-Corvo |url=https://docs.google.com/viewer?a=v&q=cache:RWvMwfdY0-YJ:www.lundinmining.com/i/pdf/Summary_Report_Neves-Corvo.pdf+silverstone+resources+portugal+life+of+mine&hl=en&gl=ca&pid=bl&srcid=ADGEESgbh95W-PUeIp-qeLE28CU0eypfp5WSJJIRU1Mx6-4H7MOLef-55q2oxGg5pS6b4JCR_CMgZ6tAd4qI_24cZI-IeJ4aoAuQ12p6hPNerWQqdTC83VNSO3EaXeV0gC9T4ydkm_en&sig=AHIEtbQCBJeLFHyAs8AeDxFY0AOmmtJ1qw}}

Mine 777 in Manitoba belongs to HudBay Minerals. The mine was the source of 62.8% of Silver Wheaton's gold produced in 2012. In the last quarter alone it accounted for 19,615 ounces of gold, more than Silver Wheaton's other gold mine produced over the entire year (18,600 oz). When converted to silver equivalent using the gold to silver ratio, gold from 777 accounted for 40.5% of the increase in total production in 2012.

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