With Silverstone merger, Silver Wheaton claims title of number one and only
During Silver Wheaton's annual general meeting, CEO Peter Barnes forecast sales of 17 million to 19 million silver equivalent ounces this year.
Author: Dorothy Kosich
Posted: Friday , 22 May 2009
RENO, NV -
mineweb.com
Silver Wheaton has completed the acquisition of its rival Silverstone Resources, emerging as the number one and only pure silver stream company.
The deal was approved Thursday with 0.185 shares of Silver Wheaton being issued to Silverstone shareholders for every share held. The all stock deal was valued at $190 million.
During Silver Wheaton's annual general meeting Thursday President and CEO Peter Barnes said the acquisition increases the company's total reserves and resources to 1.4 billion ounces of silver and 405,000 ounces of gold. The company forecasts sales of 17 million to 19 million silver equivalent ounces this year,
Noting that 70% of mined silver is produced as a by-product, Silver Wheaton management said acquisition also provides three new silver streams from low-cost copper mines: Minto in Canada, Cozanin in Mexico, and Neves Corvo in Portugal. The three operations will generate 4.5 million ounces of silver equivalent this year.
The merger gives Silver Wheaton a total of 12 silver stream agreements with eight operating partners.
In a presentation to shareholders, Barnes said the silver stream from Goldcorp's Peñasquito gold, silver, lead and zinc mine will add significant growth to Silver Wheaton. He estimated that approximately 70% of Silver Wheaton's revenue will come from four mines, Luismin, Yauliyacu, Zinkgruvan and Peñasquito.
During the past four years, Barnes noted that Silver Wheaton has almost tripled the ounces of silver backing every share. |
