THE HIGH MARGIN PRECIOUS METALS COMPANY NOVEMBER 2015

Transcription

1 THE HIGH MARGIN PRECIOUS METALS COMPANY NOVEMBER 2015

2 CAUTIONARY STATEMENTS CAUTIONARY NOTE REGARDING FORWARD LOOKING-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 payment by Silver Wheaton of US$900 million to Glencore and the satisfaction of each party's obligations in accordance with the Silver Purchase Agreement, the anticipated receipt by Silver Wheaton of estimated silver production in respect of the Antamina mine, projected increases to Silver Wheaton's production and cash flow profile, projected changes to Silver Wheaton's production mix, the estimated future production, the future price of commodities, the future price of silver or gold, the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production (including 2015 and 2019 attributable annual production and produced but not yet delivered ounces), estimated costs of future production, reserve determination, estimated reserve conversion rates, the ability to fund outstanding commitments and continue to acquire accretive precious metal stream interests, and assessments of the impact and resolution of various legal and tax matters, including proceedings with the Canada Revenue Agency and proceedings before the courts. 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", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", 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: any specific risks relating to the satisfaction of each party's obligations in accordance with the terms of the Glencore Silver Purchase Agreement, fluctuations in the price of commodities, the absence of control over the mining operations from which Silver Wheaton purchases silver or gold (the "Mining Operations") 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, environmental, 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, risks relating to having to rely on the accuracy of the public disclosure and other information Silver Wheaton receives from the owners and operators of the Mining Operations as the basis for its analyses, forecasts and assessments relating to its own business, risks relating to production estimates from Mining Operations, credit and liquidity risks, hedging risk, competition in the mining industry, risks related to Silver Wheaton's acquisition strategy, risks related to the market price of Silver Wheaton's shares, risks related to Silver Wheaton's holding of long-term investments in other exploration and mining companies, risks related to the declaration, timing and payment of dividends, the ability of Silver Wheaton and the Mining Operations to retain key management employees or procure the services of skilled and experienced personnel, risks related to claims and legal proceedings against Silver Wheaton or the Mining Operations, risks relating to unknown defects and impairments, risks related to the adequacy of internal control over financial reporting, risks related to governmental regulations, including environmental regulations, risks related to international operations of Silver Wheaton and the Mining Operations, risks relating to exploration, development and operations at the Mining Operations, the ability of Silver Wheaton and the Mining Operations to obtain and maintain necessary permits, the ability of Silver Wheaton and the Mining Operations to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support the Mining Operations, uncertainty in the accuracy of mineral reserves and mineral resources estimates, production estimates from Mining Operations, inability to replace and expand mineral reserves, uncertainties related to title and indigenous rights with respect to the mineral properties of the Mining Operations, commodity price fluctuations, the ability of Silver Wheaton and the Mining Operations to obtain adequate financing, the ability of Mining Operations to complete permitting, construction, development and expansion, challenges related to global financial conditions, risks related to future sales or issuance of equity securities, differences in the interpretation or application of tax laws and regulations or accounting policies and rules, as well as those factors discussed in the section entitled "Description of the Business Risk Factors" in Silver Wheaton's Annual Information Form and the additional risks identified under "Risks and Uncertainties" in Management's Discussion and Analysis for the period ended June 30, 2015, both available on SEDAR at and in Silver Wheaton's Form 40-F and Form 6-K filed August 11, 2015, both 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 payment of US$900 million to Glencore and the satisfaction of each party s obligations in accordance with the terms of the Silver Purchase Agreement, the continued operation of the Mining Operations, 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 public statements and achieve their stated production estimates, the continuing ability to fund or obtain funding for outstanding commitments, the ability to source and obtain accretive precious metal stream interests, expectations regarding the resolution of legal and tax matters, the estimate of the carrying value of the precious metal purchase agreements (as defined in the Annual Information Form) and such other assumptions and factors as set out herein. Although Silver Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward-looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Silver Wheaton. Accordingly, readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein for the purpose of providing investors with information to assist them in understanding Silver Wheaton's expected performance and may not be appropriate for other purposes. Any forward looking statement speaks only as of the date on which it is made. 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. CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The terms mineral reserve, proven mineral reserve and probable mineral reserve are Canadian mining terms defined in accordance with Canadian National Instrument Standards of Disclosure for Mineral Projects ( NI ) and the Canadian Institute of Mining, Metallurgy and Petroleum (the CIM ) CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the CIM Standards ). These definitions differ from the definitions in Industry Guide 7 ( SEC Industry Guide 7 ) under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act ). Under U.S. standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. Also, under SEC Industry Guide 7 standards, a final or bankable feasibility study is required to report reserves, the three-year historical average price is used in any reserve or cash flow analysis to designate reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. In addition, the terms mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource are defined in and required to be disclosed by NI ; however, these terms are not defined terms under SEC Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. 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 pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Disclosure of contained ounces in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute reserves by SEC standards as in place tonnage and grade without reference to unit measures. Accordingly, information contained herein that describes the Corporation s mineral deposits may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States investors are urged to consider closely the disclosure in the U.S. prospectus, a copy of which is available at 2

3 WHAT IS PRECIOUS METAL STREAMING? Silver Wheaton makes an upfront payment in return for the right to purchase a fixed percentage of the future silver and/or gold production from a mine Upfront payment (Cash and/or SLW shares) Delivery payment ($ per ounce) Partner Mining Company As the mine owner delivers precious metal to Silver Wheaton, an additional delivery payment* is made to them 3 SLW receives a % of life-of-mine silver and/or gold production at a fixed cost *Delivery payments are typically subject to an inflationary adjustment of approximately 1% per annum after the third year of production

4 A WIN-WIN MODEL THE FIRST STEP IN CREATING VALUE Precious metal stream agreements create shareholder value for both the purchaser (streamer) and the seller (traditional miner) Precious metal produced by a traditional miner is given a lower valuation by the market than if it had been produced by a streaming company Results in value arbitrage opportunity Value of Future Precious Metal Production Arbitrage opportunity exists to create value for both the Streamer and the Partner s shareholders Value of Future Precious Metal Stream Traditional Miner Streaming Company Silver Wheaton shares this arbitrage with its partners resulting in a win-win model 4

5 WHO IS SILVER WHEATON?

6 HIGH-QUALITY ASSET BASE DIVERSIFIED PORTFOLIO Operating Mines (22) Development Projects (7) Partners: Vale Glencore Goldcorp Barrick Lundin Eldorado Hudbay Pan American Primero Capstone Alexco Sandspring Corporate Offices Well-diversified with low political risk 6

7 HIGH-QUALITY ASSET BASE LOW-COST PRODUCTION 2015 Forecast Production by Cost Quartile 2019 Forecast Production by Cost Quartile 8% 5% 7% 4% 7% 5% ~24% 80% Production Growth 84% 44.5Moz Ag. Eq. 55Moz Ag. Eq. 7 80% of SLW s production comes from assets in the lowest cost quartile *From Company reports and Wood Mackenzie estimates of Q byproduct cost curves for gold, zinc / lead, copper, nickel and silver mines

8 ANTAMINA - ADDING ANOTHER CORNERSTONE OUR MOST RECENT ACQUISITION Antamina Stream Consideration Production Payments Guarantors: Stream agreement with a wholly-owned subsidiary of Glencore plc ("Glencore") and Silver Wheaton (Caymans) Ltd % share of silver produced at Antimina, reduced after 140Moz delivered to 22.50% of silver production for the life of mine Silver payable rates in lead & copper concentrates are fixed at 100% Deliveries to begin accruing October 1, 2015 Closing expected prior to the end of November 2015 Stream applies to 169 concessions of >700km 2 around Antamina Cash payment of US$900 million to be paid on closing 20% of the spot silver price per ounce delivered Guaranteed by Glencore Plc; and Guaranteed by a debt free entity holding Glencore s interest in Antamina ( Holdco ) Holdco is limited on incurring debt*, not allowed to grant any security interest over its assets, & is restricted on making any distributions if there is an event of default*** * Subject to the completion of certain corporate matters and customary conditions; **Except for certain subordinated intercompany debt for Antamina operations; *** Subject to certain exceptions, Holdco is restricted on making any distributions or other payments to affiliates if there is an event of default 8

9 ANTAMINA IMMEDIATE PRODUCTION Mine Type / Deposit Type Location Open Pit / Polymetallic Skarn Peru Startup October 2001 Estimated Avg. Annual Stream * 2016 & years Copper By-product Cash Cost ** Additional P&P Reserves *** Additional M&I Resources *** Additional Inferred Resources *** Significant Exploration Potential 5.1 Moz Ag 4.7 Moz Ag 1 st Quartile 75 Moz Ag 56 Moz Ag 126 Moz Ag At Depth & Regional Average annual production to Silver Wheaton of 4.7 million ounces of silver for 20 years *Based on mine plan provided by Glencore, **From Company reports and Wood Mackenzie estimates of Q byproduct cost curves for gold, zinc / lead, copper, nickel and silver mines; ***Current reserves and resources include reserves & resources updated to Dec. 31, 2014 (see Silverwheaton.com) 9

10 HIGH-QUALITY ASSET BASE CURRENT CORNERSTONE ASSETS San Dimas: Acquired in 2004 Q production of 1.8Moz silver, ~20% higher than Q Mill expansion to 3,000 tpd capacity ahead of schedule and below budget with expected completion in April 2016 Successful de-bottlenecking of flow of machinery through mine by connecting a tunnel between two mining blocks Exploration success multiple vein extensions Stream: 100% of silver up to 6Moz plus 50% thereafter. Life of mine 2015 silver production forecast of 6.6 Moz *Source: Company Reports Peñasquito: Acquired in 2007 Record Q production of 2.1Moz, ~30% higher than Q in the heart of the deposit Exploration success with copper-gold skarn Throughput forecast 115k tpd in 2015 and beyond MEP feasibility study expected to be complete in early 2016 and will ultimately form basis of new life-of-mine plan Northern Well Field ( NWF ) delayed due to illegal blockade but Goldcorp seeking fair resolution while advancing alternatives for completion without crossing through affected community lands 2015 silver production forecast of 7.3 Moz 10

11 HIGH-QUALITY ASSET BASE CURRENT CORNERSTONE ASSETS *Source: Company Reports 11 Salobo: Acquired in 2013 / % capacity utilization in September 100% capacity utilization expected to be reached in Q4 Commissioned in November 2012 at 12Mtpa Expansion to 24Mtpa completed in June 2014 Salobo III (additional 12Mtpa expansion) currently under consideration Largest copper deposit in Brazil Mine life >40 years Exploration potential at depth Stream: 50% of gold. Life of mine First 10 years average gold production forecast of 140koz Antamina: Acquired in th largest copper mine in the world jointly owned by Glencore, BHP, Teck, and Mitsubishi Began operating in 2001 Wholly owned infrastructure including 302km concentrate pipeline & port facilities Exploration potential at depth and regionally Average annual production 5.1Moz (2016 & 2017); 4.7Moz over first 20 years Silver payable rates in nickel & copper cons fixed at 100% Stream: 33.75% of silver, reduced after 140Moz delivered to 22.5% of silver for the life of mine

12 HIGH-QUALITY ASSET BASE GROWTH AND DEVELOPMENT ASSETS Constancia: Acquired in 2012 / 2013 Mill currently operating at ~90,000tpd, or ~12% above nameplate throughput of 80,000 tpd Scheduled addition of more trucks to the fleet anticipated to work down excess concentrate levels in Q4 Feasibility level recoveries expected in Q4 Processing ore at 30% above reserve grade for first 5 years of operation 22 year mine life Average production 2.4 Moz Ag & 35 koz Au ( ) Stream: 100% of silver. 50% of gold. Life of mine *Source: Company Reports Rosemont: Acquired in 2010 Augusta Resources acquired by Hudbay in 2014 Only remaining key permits are the final Record of Decision from the U.S. Forest Service and the Clean Water Act Section 404 Permit from the U.S. Army Corps of Engineers 43 hole confirmatory drill program completed in Dec Detailed value engineering process completed in Q2 & Q resulted in identification of previously purchased / ordered equipment unsuitable for design objectives 2 year construction schedule Average production 2.9Moz Ag / 15koz Au Stream: 100% of silver and gold. Life of mine 12

13 PRODUCTION PROFILE FULLY FUNDED FIVE-YEAR GROWTH Silver Equivalent Production* (Moz) Year Forecast Growth of >50% ~55Moz ~44.5Moz 35.3Moz Optionality ~9Moz ~4Moz ~1.4Moz Pascua Lama Rosemont Toroparu Antamina Salobo Sudbury 777 Constancia Peñasquito San Dimas Yauliyacu A 2012A 2013A 2014A 2015E 2019E Barrick** Other *Assumes a Ag:Au ratio of 72:1; **Comprised of the Veladero, Lagunas Norte and Pierina mines 13 Production growth forecast of >50% over the next 5 years does not include contributions from Rosemont or Pascua Lama (~13Moz / yr combined)

14 STRENGTHENING PARTNERSHIPS CSR PROGRAM FOCUSES ON COMMUNITIES NEAR PARTNER MINES Partner Projects: First streaming / royalty company to focus support on mining communities Funding given to Partners to focus on giving back to local communities in which mines are located Partner initiatives funded Barrick: Executing an irrigation project in Argentina, near the Veladero mine and Pascua-Lama project. Primero: Building three community facilities in Tayoltita, Mexico, near the San Dimas mine. Goldcorp: Outfitting College of Vocational and Technical Education (CONALEP) in the State of Zacatecas, Mexico, with equipment for students and teachers and funding improvements to campus facilities. Vale: Improving the operations of the Basic Health Units in Paraupebas, Brazil, near the Salobo mine. Silver Wheaton forms long-term partnerships 14

15 UPDATE ON CANADIAN TAX AUDIT FOR REASSESSMENT RECEIVED ON SEPTEMBER 24, 2015 Facts and Silver Wheaton s Position CRA Position and Reassessment details We are in the business of buying and selling silver and gold Foreign subsidiaries established to acquire streams on non-canadian assets Income earned in Canada relating to mines located in Canada should be subject to Canadian tax Income earned outside of Canada by foreign subsidiaries relating to mines located outside of Canada should not be subject to Canadian tax C$715 million (~US$536 million) of income earned by foreign subsidiaries outside of Canada from mines located outside of Canada should be taxable in Canada on basis of transfer pricing CRA seeking to impose income tax of C$201 million (~US$151 million), transfer pricing penalties of C$72 million (~US$54 million), and interest & other penalties of C$81 million (~US$60 million) for a total of C$353 million (~US$265 million) Timing In October, Silver Wheaton filed notices of objection Silver Wheaton required to make a deposit of C$177 million (~US$133 million) upon filing notice of objection (50% of total) Right to appeal directly to the Tax Court of Canada 91 days after the date of filing of notice of objection Silver Wheaton remains confident in its structure and will defend position vigorously 15

16 WHY INVEST IN SILVER WHEATON?

17 SILVER WHEATON VERSUS TRADITIONAL MINERS Silver Wheaton Traditional Miners 100% Precious Metals Exposure Fixed operating* and capital costs No exploration costs but exploration upside Highly diverse asset base Sustainable dividend at all commodity prices *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 ; Production payments at Antamina, representing 8-10% of total forecast production, fixed at 20% of spot silver prices 17 Strong upside with downside protection

18 SILVER WHEATON VERSUS TRADITIONAL MINERS FIXED OPERATING AND CAPITAL COSTS $40 $35 Total Cash Cost and Cash Operating Margins per Silver Ounce Silver Price (US$/oz) / $30 $25 $20 $15 $10 $5 $0 88% 87% 81% 83% 78% 67% 71% 74% 74% 47% 47% $3.90 $3.90 $3.90 $3.91 $3.94 $3.97 $3.97 $3.99 $4.06 $4.12 $4.14 $ E*** Total Cash Cost/oz* Cash Operating Margins* * Refer to non-irfs measures at the end of this presentation; ** Operating costs are fixed at ~US$4 / silver oz with an inflationary adjustment of approximately 1% per year after the third year of production; production payments at Antamina, representing 8-10% of total forecast production, fixed at 20% of spot silver prices; *** 2019 expected cash costs are calculations based on existing agreements contributing to 2019 production forecasts 18 Fixed cash costs** provide for industry leading margin and free cash flow

19 SILVER WHEATON VERSUS TRADITIONAL MINERS FIXED OPERATING AND CAPITAL COSTS Total Cash Cost and Cash Operating Margins per Gold Ounce $1,800 $1,600 Gold Price (US$/oz) $1,400 $1,200 $1,000 $800 $600 71% 75% 81% 79% 72% 69% 78% $400 $200 $0 $300 $300 $300 $362 $386 $386 $ E*** Total Cash Cost/oz* Cash Operating Margins* * Refer to non-irfs measures at the end of this presentation; ** Operating costs are fixed at ~US$400 / gold oz with an inflationary adjustment of approximately 1% per year after the third year of production; *** 2019 expected cash costs are calculations based on existing agreements contributing to 2019 production forecasts 19 Fixed cash costs** provide for industry leading margin and free cash flow

20 SILVER WHEATON VERSUS OTHER STREAMERS Silver Wheaton Other Streamers Benefits of traditional miners but lower risk profile Highest Cash Flow of Group Highest Earnings of Group Best Quality Asset Portfolio* Most Compelling Valuation * As defined by percentage of production from 1 st or 2 nd quartile assets according to Wood Mackenzie estimates of Q byproduct cost curves for gold, zinc, copper, nickel and silver mines 20

21 SILVER WHEATON VERSUS OTHER STREAMERS INDUSTRY LEADERS 60% Rolling Four Quarters Peer Cash Flow and Net Earnings Comparison 54% 50% 44% 45% 40% 37% 33% 30% 20% 19% 22% 21% 25% 10% 0% Enterprise Value Cash Flow Net Earnings** Royal Gold Franco Nevada Silver Wheaton SLW represents over 45% of the cash flow and earnings generated by the senior streamers *Source: Company reports and Factset as of November 6, 2015; 2014 Q Q2 Financials for Franco Nevada and Factset Q3 Estimates for Cash Flow and Earnings (as Q financials not available at time of printing), 2014 Q Q3 Financials for Silver Wheaton and Fiscal 2015 Q Q1 Financials for Royal Gold; **Adjusted net earnings are used for this comparison. 21

22 SILVER WHEATON VERSUS OTHER STREAMERS COMPELLING VALUATION Price / Earnings Price / Cash Flow Price / Net Asset Value Royal Gold Franco Nevada Silver vada Wheaton Silver Wheaton - *Source: P/E and P/CF from company reports and FactSet as of November 9, Franco Nevada Q3 Factset Consensus Estimates used for Cash Flow and Earnings (as Q financials not available at time of printing); P/NAV is based on the closing share price on Nov 9, 2015 and the average NAV from Bank of America Merrill Lynch, Canaccord Genuity, Macquarie, National Bank Financial, Royal Bank of Canada, and UBS and is subject to the assumptions set out in the analysts reports 22 Silver Wheaton trades at a significant discount to the senior streamers

23 SILVER WHEATON VERSUS ETF / BULLION Silver Wheaton ETF/Bullion 100% Precious Metals Exposure Leverage to Commodity Price Exploration and Expansion Acquisition Growth Potential Dividend Yield Silver Wheaton provides much more than precious metals exposure 23

24 SILVER WHEATON VERSUS ETF / BULLION EXPLORATION AND EXPANSION - GROWING R&R Silver Equivalent Reserves and Resources (in Moz)* (Inf) 818 (M&I) 2,837 1,487 (P&P) 24 Total Acquired Total Mined Total Exploration R&R Silver Wheaton s production has been largely replaced through successful exploration by our partners *As at Dec 31, 2014: Reserves and Resources are as of Dec. 31 for each year (see Silverwheaton.com). Silver equivalent basis assuming a 72:1 Ag:Au ratio

25 SILVER WHEATON VERSUS ETF / BULLION EXPANSION & GROWTH THROUGH ACCRETIVE ACQUISITIONS Total attributable silver equivalent reserves and resources per share since inception* Silver Silver Eq Eq oz/share oz/share *From Dec. 31, 2004 to Dec. 31, 2014, Reserves and Resources are as of Dec. 31 for each year (see Silverwheaton.com); Current reserves and resources include reserves and resources updated to Dec ; Cumulative mined production based on management estimates and company reports Reserves Measured & Indicated Inferred Mined (cumulative) Significant growth in reserves and resources per share since inception

26 SILVER WHEATON VERSUS ETF / BULLION ACQUISITION GROWTH POTENTIAL - LARGE TARGET MARKET 1000 Silver Wheaton vs. Global Silver Production* Forecast Global Silver Production (Moz) (Silver Output by Mine s Source Metal)* % 13% 31% 13% 30% 29% 27% 26% 14% 15% 17% 18% 57% 56% 56% 56% 56% 56% 2014A 2015E 2016E 2017E 2018E 2019E SLW 2014 Traditional Silver Companies Silver Wheaton s Potential Target Market 4% 5% SLW 2019 Primary Silver Mines Gold Mines Base Metal Mines Silver Wheaton s Forecast Production (% of potential target market) >70% of mined silver is produced as a by-product from base metal or gold mines = significant growth potential in the silver stream space *Source: Thomson Reuters GFMS Estimates 26

27 SILVER WHEATON VERSUS ETF / BULLION ACQUISITION GROWTH POTENTIAL - FAVORABLE ENVIRONMENT 50 Spot Silver Prices vs. Long-Term Analyst Consensus 45 Spot Silver Price Silver Price (US$ / oz) Analyst Consensus LT Silver Price Luismin Zinkgruvan Yauliyacu Peñasquito Stratoni Silverstone Barrick Keno Hill Rosemont Hudbay Vale* Constancia* Toroparu** Salobo* Antamina *Gold only stream; **Early Deposit structure, Gold only stream 27 Disciplined approach to acquisition growth

28 SILVER WHEATON VERSUS ETF / BULLION STRONG BALANCE SHEET Balance Sheet* $2,000 $1,800 $1,600 (million US$) $1,400 $1,200 $1,000 $800 $600 Undrawn $400 $200 Drawn* $0 Revolving Credit Facility Additional Debt for Antamina Cash Est. Op. Cash Flow (Q4/ ) * Revolving Credit Facility of $2 billion announced on February 27, Cash balance of $81 million and approximately 647 million drawn on the Revolving Facility as of Sept. 30, $900 million to be paid to Glencore upon closing of Antamina transaction which is expected by the end of November. Estimated operating cash flow based on estimated silver and gold prices of $16.00 and $1,150, respectively, and production forecasted on annual basis growing to guidance of 55 million silver equivalent ounces in Estimated cash flow is before dividends. Please see Cautionary Statements for material risks, assumptions, and important disclosure associated with this information. 28 Strong cash flow readily services debt and provides capacity for additional accretive growth opportunities

29 SILVER WHEATON VERSUS ETF / BULLION COMPETITIVE DIVIDEND YIELD - UNIQUE AND SUSTAINABLE Unique Dividend Policy: Dividends linked to operating cash flows whereby 20% of the average of the previous four quarters operating cash flows are distributed to shareholders* Benefits: Direct silver price exposure Participation in robust organic production growth Sustainable and flexible 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% SLW Yield FNV Yield RGLD Yield 0.0% *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 29

30 OUTPERFORMING THE METALS & THE INDEX THE PROOF IS IN THE PRICE PERFORMANCE 1400% 1200% 1000% 800% 600% 400% 200% 0% -200% SLW Gold Silver PHLX SLW s share price has significantly outperformed the price of Gold, Silver and the Philadelphia Gold & Silver Index since the Company s inception *Source: Factset as of November 6,

31 IF YOU LIKE PRECIOUS METALS SILVER WHEATON PROVIDES: Cost certainty Leverage to increasing precious metals prices High quality asset base Exceptional growth profile Dividend yield AND REMAINS STRATEGICALLY POSITIONED FOR FURTHER GROWTH. 31

32 INVESTOR RELATIONS Tel: Toll Free: TRANSFER AGENT CST Trust Company Toll Free:

33 APPENDIX

34 LIQUID STOCK CAPITAL STRUCTURE AS OF SEPT 30, 2015 Shares Outstanding Warrants Outstanding (in-the-money) Options Outstanding (in-the-money) Shares Fully Diluted million 0.0 million 0.0 million million 3 Month Average Daily Trading Volume: TSX: NYSE: 1.5 million shares 5.9 million shares 34

35 REVENUE EXPOSURE PRODUCTION DIVERSIFIED AMONGST PRECIOUS METALS 2015 Forecast Production 2019 Forecast Production 28Moz Ag 230koz Au 32Moz Ag 325koz Au 37% 43% 63% 57% Silver Gold *Silver equivalent basis assuming a 72:1 Ag:Au ratio 35 Over the next five years, gold as a percentage of total forecasted production is expected to grow to over 40%

36 DIVERSIFICATION BY MINE 22 PRODUCING MINES IN Forecast Production by Mine 2019 Forecast Production by Mine 3% 5% 5% 6% 7% 14% 8% 15% 20% 17% Salobo Peñasquito San Dimas 777 Constancia Yauliyacu Sudbury Barrick** Antamina Other 9% 6% 9% 8% Salobo 5% 21% Peñasquito Constancia San Dimas Antamina 17% Sudbury Yauliyacu % 13% Other Diversified asset base with no single asset accounting for more than 21% of production *Silver Eq. production assuming Ag:Au ratio of 72:1; **Comprised of the Veladero, Lagunas Norte and Pierina mines 36

37 REVOLVING CREDIT FACILITY FINANCIAL COVENANTS The Company s revolving credit facility has two financial covenants: Maximum Net Debt to Tangible Net Worth Ratio of less than or equal to 0.75:1.00; and Minimum Interest Coverage Ratio of greater than or equal to 3.00:1.00 Post funding of the Antamina transaction, the Company can comfortably comply with these two covenants Maximum Net Debt to Tangible Net Worth* 0.34 Ratio Covenant of Minimum Interest Coverage* Ratio Silver Wheaton can comfortably comply with all financial covenants Covenant of 3.00 * As of September 30, Net debt based on the Company s balance sheet, plus $900 million drawn under the Company s credit facility to fund the upfront payment relating to the Antamina transaction. EBITDA based on the financial results for the twelve months ended September 30, 2015, plus estimated EBITDA from Antamina. Interest expense based on net debt as described above and interest rates applicable to the Company s revolving credit facility. Please see Cautionary Statements for material risks, assumptions, and important disclosure associated with this information.

38 COMPANY ACQUISITION HISTORY TIMELINE 10/22/2004: Silver Wheaton began trading on the TSX under the symbol SLW. In December, the Company s name was changed from Chap Mercantile Inc. to Silver Wheaton Corp. and the outstanding shares were consolidated on a 5 for 1 basis. Yauliyacu (Peru) Date of Contract: 3/23/2006 Current Owner: Glencore Upfront Payment: $285 million Term of Agreement: 20 years Attr. Production: 100% Silver Silverstone Resources Date of Transaction: 5/21/2009 Interests Acquired: (mine / owner / location) Minto Capstone Mining Canada Cozamin Capstone Mining Mexico Neves-Corvo Lundin Mining Portugal Aljustrel I M SGPA Portugal Salobo I (Brazil) Date of Contract: 2/28/2013 Current Owner: Vale Upfront Payment: $1.33 billion Term of Agreement: LOM Attr. Production: 25% Gold San Dimas (Mexico) Date of Contract: 10/15/2004 Current Owner: Primero Mining Upfront Payment: $190 million Term of Agreement: LOM Attr. Production: 100% Silver Peñasquito (Mexico) Date of Contract: 7/24/2007 Current Owner: Goldcorp Upfront Payment: $485 million Term of Agreement: LOM Attr. Production: 25% Silver Pascua-Lama (Chile / Argentina) Date of Contract: 9/8/2009 Current Owner: Barrick Upfront Payment: $625 million Term of Agreement: LOM Attr. Production: 25% Silver Additional Consideration: (mine / location) Lagunas Norte Peru Pierina Peru Veladero Argentina Sudbury (Canada) Date of Contract: 2/28/2013 Current Owner: Vale Upfront Payment: $570 million Term of Agreement: 20 years Attr. Production: 70% Gold Additional Consideration: 10 million SLW warrants w/$65 strike & 10yr term Salobo II (Brazil) Date of Contract: 3/2/2015 Current Owner: Vale Upfront Payment: $900 million Term of Agreement: LOM Attr. Production: 25% Gold Los Filos (Mexico) Stratoni (Greece) Keno Hill (Canada) 777 (Canada) Toroparu (Guyana)** Date of Contract: 10/15/2004 Current Owner: Goldcorp Upfront Payment: $4 million Term of Agreement: 25 years Attr. Production: 100% Silver Date of Contract: 4/23/2007 Current Owner: Eldorado Gold Upfront Payment: $58 million Term of Agreement: LOM Attr. Production: 100% Silver Date of Contract: 10/2/2008 Current Owner: Alexco Upfront Payment: $50 million Term of Agreement: LOM Attr. Production: 25% Silver Date of Contract: 8/8/2012 Current Owner: Hudbay Upfront Payment: $455 million Term of Agreement: LOM Attr. Production: 100% Silver 100% / 50% Gold* Date of Contract: 11/11/2013 Current Owner: Sandspring Resources Upfront Payment: $148.5 million Term of Agreement: LOM Attr. Production: 10% Gold & 50% silver Early Deposit: $13.5 million Zinkgruvan (Sweden) Rosemont (United States) Constancia (Peru) Antamina (Peru) Date of Contract: 12/8/2004 Current Owner: Lundin Mining Upfront Payment: $78 million Term of Agreement: LOM Attr. Production: 100% Silver Date of Contract: 2/11/2010 Current Owner: Hudbay Upfront Payment: $230 million Term of Agreement: LOM Attr. Production: 100% Silver 100% Gold Date of Contract: Current Owner: Upfront Payment: Term of Agreement: Attr. Production: 8/8/2012&11/4/2013 Hudbay $430 million $135 million (shares) LOM 100% Silver 50% Gold Date of Contract: 11/2015 Current Owner: Glencore Upfront Payment: $900 million Term of Agreement / Attr. Production 33.75% Silver until 140mmoz accrues 22.5% Silver LOM after first 140mmoz Note: Upfront payment denoted in US$ millions; excludes closing costs and capitalized interest, where applicable *Silver Wheaton is entitled to acquire 100% of the life of mine gold production from Hudbay s 777 mine until Hudbay s Constancia project satisfies its completion test, or the end of 2016, whichever is later. At that point, Silver Wheaton s share of gold production from 777 will be reduced to 50% for the life of the mine; **Early Deposit structure 38

39 PRECIOUS METAL STREAM AGREEMENTS PRODUCERS Peñasquito San Dimas Salobo Antamina Constancia Sudbury Company Status Producing Producing Producing Producing Producing Producing Contract End date LOM LOM LOM LOM LOM Jan 1, 2033 PM Prod. 25% of Ag 100% of Ag 50% of Au % of Ag / % of Ag 100% of Ag 50% of Au 70% of Au Mine Life 12 yrs 5 yrs 40+ yrs 13 yrs 22 yrs 18 yrs 7 Cash Costs $4.07/oz $4.20/oz $400/oz Au 20% of spot Ag $5.90/oz $400/oz Au $400/oz Au Annual Production 1 7 Moz Ag 6+ Moz Ag 140 koz Au Moz 2016/ Moz 2.4 Moz 35,000 oz Au 6 50 koz Au 1) Peñasquito production at design throughput capacity of 130k t/d is ~7Moz to SLW; 2) Silver Wheaton receives 100% of first 6Moz Ag produced plus 50% of excess; 3) 10 yr Avg for Salobo; 4) Silver Wheaton receives 33.75% of silver until 140Moz accrued, then entitled to 22.5% for LOM; 5) 4.7Moz production based on 20 year mine plan provided by Glencore; 6) Based on company estimates, production first 5 years and approx. 2.2Moz Ag and 16,000 oz Au over LOM; 7) 20-year term average for Sudbury 39

40 PRECIOUS METAL STREAM AGREEMENTS PRODUCERS (CONTINUED) 777 Zinkgruvan Cozamin Minto Neves- Corvo Yauliyacu Company Status Producing Producing Producing Producing Producing Producing Contract End Date LOM LOM April 4, LOM LOM Mar 23, 2026 PM Prod. 100% Ag 100%/50% Au 1 100% of Ag 100% of Ag 100% PM 3 100% of Ag up to 4.75 M Ag oz/yr Mine Life 5 yrs 10+ yrs 2 yrs 7 yrs 10+ yrs 3 yrs Cash Costs $5.90/oz Ag $400/oz Au $4.25/oz $4.20/oz $4.06/oz Ag $312/oz Au $4.10/oz $4.16/oz Annual Production 820 koz Ag 2 68 koz Au 2+ Moz Ag 1+ Moz Ag 0.2 Moz Ag 30,000 oz Au 1.5 Moz Ag Up to 4.75 M oz Ag 1) 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; 2) Production rates for , LOM production is forecasted to be 870 koz Ag and 50koz Au; 3) Term of contract for Cozamin expires in 2017; 4) Includes 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 the amount in excess of these thresholds 40

41 PRECIOUS METAL STREAM AGREEMENTS PRODUCERS (CONTINUED) Stratoni Los Filos Keno Hill Aljustrel Company Status Producing Producing Producing Producing Contract End Date LOM Oct 15, 2029 LOM LOM PM Prod. 100% of Ag 100% of Ag 25% of Ag 100%** of Ag Mine Life 4 yrs 19 yrs 5+ yrs 10+ yrs Cash Costs $4.10/oz* $4.24/oz $3.90/oz $4.06/oz Annual Production 1 Moz Ag 0.2 Moz Ag 0.5+ Moz Ag 0Moz *In October 2015, the silver purchase agreement was modified such that the production payment is subject to change based on exploration expenses incurred by Eldorado at the Stratoni mine. On July 16, 2014, Silver Wheaton agreed to waive its right to silver contained in copper concentrate while retaining the right to silver contained in zinc concentrate at Aljustrel 41

42 PRECIOUS METAL STREAM AGREEMENTS PRODUCERS (CONTINUED) Lagunas Norte Pierina** Veladero Company Status Producing Producing Producing Contract End Date Mar 31, 2018* Mar 31, 2018* Mar 31, 2018* PM Prod. 100% of Ag 100% of Ag 100% of Ag*** Mine Life 3 yrs 3 yrs 3 yrs Cash Costs $3.90/oz $3.90/oz $3.90/oz Annual Production 0.6 Moz Ag 0 Moz 1+ Moz Ag *100% Ag Prod. Silver Wheaton will be entitled to the silver production from the Lagunas Norte, Veladero and Pierina mines to the extent of any production shortfall at Pascua- Lama until March 31, 2018; **Pierina has reached the end of its mine life; ***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; 42

43 PRECIOUS METAL STREAM AGREEMENTS DEVELOPMENT ASSETS Pascua-Lama Rosemont Navidad Toroparu Company Status Development Development Development Early Deposit Contract End Date LOM LOM LOM LOM PM Prod. 25% of Ag 100% of PM 12.5% of Ag 10% of Au 50% of Ag Mine Life 25+ yrs 21+ yrs 16 yrs 16 yrs 3 Cash Costs $3.90/oz $3.90/oz Ag $450/oz Au $4.00/oz $3.90/oz Ag $400/oz Au Annual Production 9 Moz Ag Moz Ag 15,000 oz Au 2 1 Moz Ag 23,000 oz Au 4 1) 9Moz for first 5 years and approx. 5.5 M oz over LOM; 2); Based on a Jan 2009 Feasibility Report, Augusta forecasts that up to 15,000 oz of gold may be produced annually; 3) Silver Wheaton has converted a debenture to acquire an amount equal to 12.5% of the Loma de La Plata zone of Navidad; 4) Based on a May 2013 pre-feasibility report, Sandspring forecasts up to 22,800 oz of gold may be produced annually; also includes 50% of payable silver 43

44 ATTRIBUTABLE RESERVES AND RESOURCES TOTAL PROVEN & PROBABLE Proven & Probable Reserves Attributable to Silver Wheaton (1,2,3,8,18) Proven Probable Proven & Probable As of December 31, 2014 unless otherwise noted (6) Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Process Mt g/t Moz Mt g/t Moz Mt g/t Moz Recovery (7) SILVER Peñasquito (25%) (14) Mill % Heap Leach % San Dimas (10, 14) % Pascua-Lama (25%) (14) % Lagunas Norte (11) % Veladero (11) % Antamina (11,21,22) % Yauliyacu (11, 12) % 777 (13) % Neves-Corvo Copper % Zinc % Rosemont (15) % Constancia % Zinkgruvan Zinc % Copper % Stratoni % Minto % Cozamin (11) - Copper % Los Filos % Metates Royalty (20) % TOTAL SILVER GOLD Salobo (50%) (16) % Sudbury (70%) (11) % 777 (13) % Constancia (50%) % Minto % Toroparu (10%) (17) % Metates Royalty (20) % TOTAL GOLD

45 ATTRIBUTABLE RESERVES AND RESOURCES TOTAL MEASURED & INDICATED AND INFERRED Measured, Indicated & Inferred Resources Attributable to Silver Wheaton (1,2,3,4,5,9,18) As of December 31, 2014 Measured Indicated Measured & Indicated Inferred unless otherwise noted (6) Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Mt g/t Moz Mt g/t Moz Mt g/t Moz Mt g/t Moz SILVER Peñasquito (25%) (14) Mill Heap Leach San Dimas (10, 14) Pascua-Lama (25%) (14) Antamina (33.75%) (11,21,22) Yauliyacu (11, 12) (13) Neves-Corvo Copper Zinc Rosemont (15) Constancia Zinkgruvan Zinc Copper Aljustrel (19) Zinc Stratoni Minto Keno Hill (25%) Underground Elsa Tailings Los Filos Loma de La Plata (12.5%) Toroparu (50%) (17) Metates Royalty (20) TOTAL SILVER GOLD Salobo (50%) (16) Sudbury (70%) (11) (13) Constancia (50%) Minto Toroparu (10%) (17) Metates Royalty (20) TOTAL GOLD

46 ATTRIBUTABLE RESERVES AND RESOURCES FOOTNOTES 1. All Mineral Reserves and Mineral Resources have been calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum - CIM Standards on Mineral Resources and Mineral Reserves and National Instrument Standards for Disclosure for Mineral Projects ( NI ), or the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. 2. Mineral Reserves and Mineral Resources are reported above in millions of metric tonnes ( Mt ), grams per metric tonne ( g/t ) and millions of ounces ( Moz ). 3. Individual qualified persons ( QPs ), as defined by the NI , for the technical information contained in this document (including the Mineral Reserve and Mineral Resource estimates) for the following operations are as follows: a. Salobo mine Christopher Jacobs, CEng MIMMM (Vice President and Mining Economist), James Turner, CEng MIMMM (Senior Mineral Process Engineer), Barnard Foo, P. Eng., M. Eng, MBA (Senior Mining Engineer) and Jason Ché Osmond, FGS, C.Geol, EurGeol (Senior Geologist) all of whom are employees of Micon International Ltd. b. All other operations and development projects: the Company s QPs Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); Samuel Mah, M.A.Sc., P.Eng. (Senior Director, Project Evaluations), both employees of the Company (the Company s QPs ). 4. The Mineral Resources reported in the above tables are exclusive of Mineral Reserves. The San Dimas mine, Minto mine, Neves-Corvo mine, Zinkgruvan mine, Stratoni mine and Toroparu project (gold only) report Mineral Resources inclusive of Mineral Reserves. The Company s QPs have made the exclusive Mineral Resource estimates for these mines based on average mine recoveries and dilution. 5. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. 6. Other than as detailed below, Mineral Reserves and Mineral Resources are reported as of December 31, 2014 based on information available to the Company as of the date of this document, and therefore will not reflect updates, if any, after such date. a. Mineral Resources and Mineral Reserves for the Pascua-Lama project are reported as of December 31, b. Mineral Resources and Mineral Reserves for gold at the Toroparu project are reported as of March 31, 2013 and Mineral Resources for silver are reported as of September 1, c. Mineral Resources and Mineral Reserves for the Neves-Corvo and Zinkgruvan mines are reported as of June 30, d. Mineral Resources and Mineral Reserves for the Rosemont project are reported as of August 28, e. Mineral Resources for the Constancia project (including the Pampacancha deposit) are reported as of September 30, 2013 and Mineral Reserves as of December 31, f. Mineral Resources for Aljustrel s Feitais and Moinho mines are reported as of November 30, Mineral Resources for the Estaçao project are reported as of December 31, g. Mineral Resources for Keno Hill s Elsa Tailings project are reported as of April 22, 2010, Lucky Queen project as of July 27, 2011, Onek project as of October 15, 2014, Flame and Moth and Bermingham projects as of April 28, 2015, Bellekeno mine Inferred Mineral Resources as of September 30, 2012 and Bellekeno mine Indicated Mineral Resources as of September 30, h. Mineral Resources for the Loma de La Plata project are reported as of May 20, i. Mineral Resources for Metates are reported as of February 16, 2012 and Mineral Reserves as of March 18, Process recoveries are the average percentage of silver or gold in a saleable product (doré or concentrate) recovered from mined ore at the applicable site process plants as reported by the operators. 8. Mineral Reserves are estimated using appropriate process recovery rates and the following commodity prices: a. Peñasquito mine - $1,300 per ounce gold, $22.00 per ounce silver, $0.90 per pound lead and $0.90 per pound zinc. b. San Dimas mine 2.94 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $18.00 per ounce silver. c. Pascua-Lama project - $1,100 per ounce gold, $21.00 per ounce silver and $3.00 per pound copper. d. Lagunas Norte and Veladero mines - $1,100 per ounce gold and $17.00 per ounce silver. e. Antamina - $2.77 per pound copper $0.88 per pound zinc, $11.81 per pound molybdenum and $22.59 per ounce silver. f. Yauliyacu mine - $20.00 per ounce silver, $3.29 per pound copper, $1.02 per pound lead and zinc. g. 777 mine $1,260 per ounce gold, $21.00 per ounce silver, $3.15 per pound copper and $1.07 per pound zinc. h. Neves-Corvo mine 1.6% copper cut-off for the copper Reserve and 4.8% zinc equivalent cut-off for all the zinc Reserves, both assuming $2.50 per pound copper, $1.00 per pound lead and zinc. i. Rosemont project - $4.90 per ton NSR cut-off assuming $20.00 per ounce silver, $2.50 per pound copper and $15.00 per pound molybdenum. 46