Cautionary Statements

December 2007 Cautionary Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS Safe Harbor Statement under the United States Private Secur...
Author: Jemimah Austin
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December 2007

Cautionary Statements CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation: Except for the statements of historical fact contained herein, the information presented constitutes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Such forward-looking statements, including but not limited to those with respect to the price of silver, 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 and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Silver Wheaton to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions, the absence of control over mining operations from which Silver Wheaton purchases silver and risks related to these mining operations, including risks related to international operations, actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled “Description of the Business-Risk Factors” in Silver Wheaton’s Annual Information Form for the year ended December 31, 2006 incorporated by reference into Silver Wheaton’s Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Although Silver Wheaton has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described 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 such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES This presentation uses the terms “Measured”, “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred 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 resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into reserves. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.

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A Unique Mining Company ƒ 100% Pure Silver ƒ Simple investment model ƒ Strong upside potential • 95% organic sales growth by 2010 • Well positioned for further growth • No hedging

ƒ Best leverage to silver price • 10% increase in silver price results in a 15% increase in 2008 cash flow

ƒ Very low political risk profile ƒ Significant stake in 6 of the top 30 silver deposits in the world

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Key Advantages ƒ Costs are essentially fixed ƒ Structured to minimize income taxes ƒ No ongoing CAPEX requirements • For 4 of 5 contracts, SLW benefits from all production / exploration growth

ƒ No environmental/closure responsibilities ƒ Downside protection ƒ Very limited currency risk • All contracts in $US

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Mine Locations

Zinkgruvan

Peñasquito Luismin

Yauliyacu

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Stratoni

Peñasquito ƒ Goldcorp’s world-class zinc-gold-

ƒ Continued excellent potential for exploration growth

silver-lead deposit in Mexico ƒ Largest silver deposit in the world

ƒ Positive deep drilling shows underground potential ƒ Construction on schedule; initial

P&P

June

June

2006

2007

575 M oz

864 M oz

Change

+50%

Reserves M&I Resources

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production expected by Q4, 2008 ƒ 30% boost in daily tonnage over 2006 feasibility

247 M oz

413 M oz

+67%

• Average payable silver of 31 M/oz per year

Peñasquito Transaction Terms ƒ 25% of silver production for the life of mine ƒ Upfront cash payment of US$ 485 million ƒ 100% debt financed; no shareholder dilution ƒ Purchase price is the lower of US$3.90/oz or spot silver ƒ Goldcorp completion guarantee

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ƒ No significant tax is to be paid by Silver Wheaton ƒ ROFR on future silver streams from the mine ƒ Goldcorp retains right to maintain its interest in SLW until 2009 ƒ 25% interest in Peñasquito would rank as one of the top 10 silver deposits in the world

Peñasquito Production 45 40

Silver M oz

35 30 25 20 15 10 5 0 2008

2010

Total Production 9

2012

2014

25% of Production

2016

2018

2020

2006 Feasibility Production

2022

WHERE ARE WE NOW?

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Silver Sales Growth No Further CAPEX To Be Paid 30

112% 27

95%

Silver production (M oz)

24 21 18 15 12 9 6 3 0 2004 Source: Company Reports

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2005

2006

Luismin

2007E

2008E 2009E

Zinkgruvan

2010E

Yauliyacu

2011E

Stratoni

2012E

2013E

Penasquito

2014E

Attributable Reserves & Resources Pro-forma M&I Resources Contained Silver (M oz)

Contained Silver (M oz)

P&P Reserves 350 250

331%

150 50 -50

Dec. 31, 2005

200 150 100

168%

50 0 Dec. 31, 2005

Jun. 25, 2007

Jun. 25, 2007

Peñasquito Stratoni Zinkgruvan Yauliyacu Luismin

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Contained Silver (M oz)

Inferred Resources 500 400 300

50%

200 100 0 Dec. 31, 2005

Jun. 25, 2007

Attributable Reserves & Resources With Peñasquito Update

Contained Silver (M oz)

1600 1400 1200

122%

1000 P&P Reserves

800 600

M& I Resource

400

Inferred

200 0 Coeur Source: Company Reports * Including Attributable from Peñasquito

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Silver Wheaton 2005

Apex

Pan Silver Silver American Wheaton Standard 2007*

Cash Flow Per Share At $14/oz Silver $1.30

28m oz 25m oz

$1.10

$0.90

$0.70 Silver sales (w/ Peñasquito & Stratoni) Silver sales (w/o Peñasquito & Stratoni)

$0.50

Oper. CFPS (equity financed) Oper. CFPS (debt financed) Oper. CFPS (w/o Peñasquito & Stratoni)

$0.30 2008 14

2009

2010

2011

2012

2013

2014

Projected EBITDA Existing Contracts $380m $17/oz $320m $15/oz $260m $13/oz $200m $11/oz $140m

$80m 2008 15

2009

2010

2011

2012

2013

2014

Debt Sensitivity

Silver Price (US$)

Debt Repayment By $15/oz $13/oz $11/oz $9/oz Dec-08 ƒ

Dec-10

Dec-11

Assuming in-the-money warrants are exercised in 2009 and proceeds are applied to debt

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Dec-09

Capital Structure As of Oct., 2007 Shares Outstanding

222.6 million 23.5 million(1)

exercise @ C$ 4.00

SLW.WT.A Warrants

8.1 million(1)

exercise @ C$ 5.50

SLW.WT.B Warrants

7.8 million

exercise @ C$10.00

Options

3.2 million

avg.exercise @ C$6.15

SLW.WT Warrants

Shares Fully Diluted 3 Month Avg. Daily Volume TSX: NYSE:

265.2 million

1,200,000 shares 2,600,000 shares

1 Consolidated based on 0.2 SLW.wt and SLW.WT.A for every common share of SLW

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0

18 Rock Creek

Montanore

San Dimas

Xiacun

Cananea

MacArthur River

Hackett River

Rochester

Metates

Cerro Colorado

Olympic Dam

Kholodninskoe

25% of Peñasquito

Cannington

Corani

Que River

Toquepala

Pittarilla

Ocampo

Dukat

25% of Penasquito

Las Minitas

1,200

San Cristobal

Toromocho

1,600

East Region Operations

Source: Metals Economics Group Grasberg

Navidad

Mt Isa

Pascua Lama

KGHM Polska Miedz

Bolshoi Kalimansur

Penasquito

Reserves & Resources (Moz)

Top 30 Silver Deposits in the World

Producing Mines and Development Projects 2,000

Silver Wheaton Relationship (6) Apex Silver

Silver Standard Coeur d’Alene

800

400

Leverage to Silver Price Performance Since Inception (Oct. ’04) SLW

300%

200%

Silver SSRI HL PAAS

100%

0%

CDE

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Source: Bloomberg

Oct-07

Jun-07

Feb-07

Oct-06

Jun-06

Feb-06

Oct-05

Jun-05

Feb-05

Oct-04

-100%

Financial Performance $0.60

CFPS/EPS (USD)

$0.50 $0.40 $0.30 $0.20 $0.10 $0.00 2004

2005

EPS 20

2006

CFPS

First 9 Months/2007

21 Source: Michael Jalonen, Merrill Lynch Research

Silver Wheaton

Yamana

Agnico

Eldorado

Barrick

Meridian

Pan American

Hecla

Average

Kinross

Goldcorp

Norhtgate

Centerra

Newmont

IAMGOLD

Teck Gold

Golden Star

Net Profit Margin – 9 months/2007 Precious Metal Companies

Change in Total Cash Costs – Precious Metals Companies

Source: Michael Jalonen, Merrill Lynch Research

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Hecla

IAMGOLD

Golden Star

Newmont

Northgate

Meridian

Teck Gold

Average

Barrick

Kinross

Centerra

Eldorado

Agnico

9 Months ’07 vs. 9 Months ‘06

Silver Wheaton – Pure Silver 2006 Revenue 100% 80% 60% 40% 20% 0% Silver Wheaton Source: Cormark Securities

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Coeur Silver

Pan American Other Metals

Hecla

2006E Co-product Cash Cost

Silver Wheaton – A Low Cost Producer

$6.00

$5.96

$5.60 $5.00 $3.90

$4.00

$2.00

$0.00 Hecla Source: Cormark Securities

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Pan American

Coeur

Silver Wheaton

Silver Production Contracts Luismin

Zinkgruvan

Yauliyacu

Stratoni

Peñasquito 25%

25 yrs

LOM

20 yrs

LOM

LOM

Ag Prod.

100%

100%

4.75 M oz/yr 100%

25%

Mine Life

25+ yrs

25+ yrs

25+ yrs

7+ yrs

17+ yrs

Cash Costs

$3.90/oz1

$3.90/oz1

$3.90/oz

$3.90/oz1

$3.90/oz1

Annual Ag

7-12 M oz

2 M oz

4.75 M oz

1-2 M oz

.5-10 M oz

Company Contract Length

Production 1 SLW pays the lesser of $3.90 and spot price on these contracts

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SLW Equity Investments

Property of Interest Ownership Stage Resource (Ag M oz) Est. Annual Ag Production Source: Company Reports

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Corani

Rock Creek

Hackett River

Montanore

18%

17%

12%

11%

Pre-Feasibility

Pre-Feasibility

Advanced Exploration M&I 278 Inf. N/A

40

Inf.

229

6 M oz/yr

Advanced Exploration

Ind.

205

M&I

164

Inf.

52

Inf.

65

12 M oz/yr

N/A

WHY SILVER?

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Silver Supply & Demand

Moz

1000

700

Demand Source: GFMS & RBC Capital Markets

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Supply (mining & scrap)

2009E

2008E

2007E

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

400

Silver Inventories Are At A Historical Low 2500

Inventory (Moz)

2000 1500 1000 500

Source: CPM Group, 2006

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2000

1990

1980

1970

1960

1950

0

Demand For Industrial Applications ƒ Roughly 4% in average annual growth (11% in 2005) ƒ Demand is relatively inelastic to the price of silver (low proportion of cost) Primary Uses • Electrical & Electronics • Chemicals • Brazing Alloys

New Areas of Growth • • • •

Solar LCD/Plasma Screens Medical Instruments Biocides Source: CPM Group, RBC Capital Markets

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Positive Trends • Growth in Middle Class in China & India • Growing use of Mobile Phones • Computerization in Third World • More Stringent Environmental Laws

Investment - A Major Catalyst of Silver Price • Demand for silver ETF’s expected to increase • iShares growing applied for +360 M oz • New ETF’s emerging

• Increased mine production expected to be offset by increased industrial demand • Silver demand for ETF’s expected to result in a tightening of the silver market Source: GFMS & RBC Capital Markets

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Silver Wheaton vs Silver ETF SILVER WHEATON

Pure Silver Best Leverage to Silver Price Organic Growth Further Growth Potential

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Silver ETF

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Goldcorp

Coeur

Rio Tinto

Grupo Mexico

Polymetal

Kazakhyms

Buenaventura

Source: The 2007 World Silver Survey

BHP

KGHM

50 45 40 35 30 25 20 15 10 5 0 Penoles

M oz

Top Ten Silver Producing Companies

Silver Wheaton – Going Forward ƒ Take advantage of huge growth opportunities • Valuation arbitrage • Financing tool • Hedging tool

ƒ How will we do this? • Leverage existing partnerships • New partnerships • Strategic investments

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Near-term Catalysts

ƒ Strengthening silver prices ƒ H2/2008: Peñasquito heap leach operation commences ƒ Take advantage of growth opportunities

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Summary ƒ 100% Pure Silver ƒ Established, long life, low cost mines ƒ Strong cash flow & earnings ƒ Strongly leveraged to increases in silver price ƒ Downside protection ƒ Very low political risk profile ƒ Well positioned for further growth 36