Business Context and Reporting Period
This Form 6-K filing by Silver Wheaton Corp. (now Wheaton Precious Metals Corp.) is dated March 16, 2006. The report serves as a disclosure of a press release regarding the sale of the San Martin Mine in Mexico by Goldcorp Inc. to Starcore International Ventures Ltd. Silver Wheaton operates as a streaming company, deriving 100% of its revenue from silver production.
Key Financial Metrics
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period. However, it notes that silver production from the San Martin Mine represents approximately 3% of Silver Wheaton's annual revenue.
Material Changes
- Change in Counterparty: Goldcorp Inc. is selling the San Martin Mine to Starcore International Ventures Ltd.
- Continuity of Agreement: Starcore has assumed Goldcorp's obligations under the existing silver purchase agreement. The sale of silver from San Martin to Silver Wheaton will continue under previously agreed terms.
- Operational Impact: There is no disruption to the revenue stream from this specific asset due to the transfer of obligations.
Guidance, Outlook, and Risks
Production Outlook: Management expects to produce 15 million ounces of silver in 2006, with growth projected to reach 20 million ounces by 2009.
Market Position: The company states it is unhedged and well-positioned for further growth.
Risks and Contingencies: The filing includes a cautionary note regarding forward-looking statements. Key risks identified include the absence of control over mining operations, risks related to international operations, the realization of mineral reserve estimates, and changes in project parameters. Actual results may differ materially from estimates due to these factors.
Investor Verification Checklist
- Verify the execution of the sale agreement between Goldcorp and Starcore International Ventures Ltd.
- Confirm that Starcore has formally assumed the silver purchase obligations for the San Martin Mine.
- Monitor the 2006 production target of 15 million ounces against actual quarterly results.
- Review the annual information form for the year ended December 31, 2004, for detailed risk factors regarding the Luismin Mines and other operations.