analyst day 2016

213 Pages·2016·63.81 MB·English

ANALYST DAY 2016
SEPTEMBER 29, 2016
CAUTIONARY STATEMENTS
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained in this Presentation 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 Canadian
securities legislation. There can be no assurance that forward-looking statements will prove to be accurate, as actual results
and futureevents could differmaterially fromthoseanticipated in suchstatements.
Readers are strongly cautioned to carefully review the cautionary notes to this Presentation starting on slide 194
and in particular:
Note 1 at the end of this Presentation contains our cautionary note regarding forward-looking statements and sets out the
material assumptions and risk factors that could cause actual results to differ, including, but not limited to, fluctuations in the
price of commodities, the outcome of the challenge by the CRA of Silver Wheaton’s tax filings, the absence of control over
mining operations from which Silver Wheaton purchases silver or gold, and risks related to such mining operations. Readers
should also consider the section entitled “Description of the Business – Risk Factors” in Silver Wheaton’s Annual
Information Form and the risks identified under “Risks and Uncertainties” in Management's Discussion and Analysis for the
period ended December 31, 2015, both available on SEDAR and in Silver Wheaton’s Form 40-F and Silver Wheaton’s Form
6-K filed March 16, 2016, both on file with the U.S. Securities and Exchange Commission. Where applicable, readers should
also consider any updates to such “Risks and Uncertainties” that may be provided by Silver Wheaton in its quarterly
Management’s Discussion and Analysis.
Note 2 at the end of this Presentation contains our cautionary note regarding the presentation of mineral reserve and
mineral resourceestimates.
A number of third parties have provided information used in this presentation, including, but not limited to, information from
our partners concerning the status of their mining operations and business. While we do not believe that this information is
inaccurate,we are notresponsible orliable forthatinformationand cannotconfirmtheaccuracyofthatinformation.
2
WELCOME & INTRODUCTION
AGENDA
SEPTEMBER 29, 2016
9:00 – 10:10 Silver Wheaton Corp. and Silver Wheaton (Caymans) Ltd. Management
 Welcome – Randy Smallwood
 Corporate Development and Contract Structuring – Haytham Hodaly & Curt Bernardi
 Financials – Gary Brown
 Silver Wheaton (Caymans) Introduction – Nik Tatarkin
 Q&A with management teams – time permitting
10:10 – 11:20 Key Development & Early Deposit Streams
 Pascua Lama – Maurice Tagami / Neil Burns
 Rosemont – Hudbay
 Toroparu – Sandspring
 Cotabambas – Panoro
 Keno Hill –Alexco
11:20 – 11:35 Coffee Break
11:35 – 12:25 Key Operating Assets
 Antamina, San Dimas, Penasquito, Yauliyacu - Maurice Tagami / Neil Burns
 Constancia – Hudbay
 Salobo and Sudbury – Vale
12:25 – 12:30 Closing – Randy Smallwood
12:30 – 1:30 Lunch
TODAY’S SPEAKERS AND KEY PERSONNEL
RANDY SMALLWOOD GARY BROWN CURT BERNARDI HAYTHAM HODALY PATRICK DROUIN NIK TATARKIN
President & Senior Vice President & Senior Vice President, Senior Vice President, Senior Vice President, President
Chief Executive Officer Chief Financial Officer Legal & Corporate Secretary Corporate Development Investor Relations (Silver Wheaton Caymans)
JAMIE BEIRNES BETTINA CHARPENTIER NEIL BURNS VINCENT LAU MAURICE TAGAMI OUNESH REEBYE
Vice President, Controller Vice President, Tax Vice President, Vice President, Finance Vice President, Vice President, Streaming
Technical Services Mining Operations Operations & Metal Sales
(Silver Wheaton Caymans)
5
LAUNCH OF SILVER WHEATON’S
CORPORATE HANDBOOK
LAUNCH OF THE CORPORATE GUIDEBOOK
SILVER WHEATON – FROM A TO Z
More than just an asset handbook
 Streaming model explained
• Why Production ≠ Sales
• Production vs. payable
 Operations and results
• Acquisition history
 Asset by asset description
 Corporate Social Responsibility
 Corporate Structure / Matters
• Description of senior personnel
and boards of directors for both
Silver Wheaton Corp. and Silver
Wheaton (Caymans) Ltd.
7
EVOLUTION OF MINE FINANCE
Randy Smallwood
“Streaming has gone mainstream”
- Randy Smallwood
THE EVOLUTION OF MINE FINANCING
PRINCIPLE SOURCES OF FUNDING
 The mining industry is extremely capital intensive
 Principal mining industry funding sources include:
• Debt (bank loans or bond issues)
Rigid repayment structure
o
Increases financial risk
o
Often requires hedging
o
• Equity
Flexible and no fixed repayment structure
o
Dilutes current shareholders
o
• Portfolio Optimization (asset sales, royalties, streaming)
Constructing portfolio to maximize expected return
o
Transfers / sharing of operational risk
o
Available to mine developers with the right assets
o
9
THE EVOLUTION OF MINE FINANCING
PRINCIPAL SOURCES OF FUNDING
3
s) $80
n
o
i
l
il $70
B

$
S
U $60
(

s
e
v $50 17%
i
t
a
n
r $40 18%
e
t
l
A

g $30
n
i
c
n
a $20
n 65%
i
F

e
$10
n
i
M

al $0
t
o
T 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
YTD
Bonds Loans Equity Portfolio Optimization
Extensive use of debt in 2012 – 2015 has created
more opportunity for portfolio optimization (including streaming) in current market
10