Silver Wheaton reports record 2012 operating and financial results VANCOUVER, March 21, 2013 /PRNewswire/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW) (NYSE: SLW) is pleased to announce its audited results for the fourth quarter and year ended December 31, 2012. All figures are presented in United States dollars unless otherwise noted. Fourth consecutive year of record attributable silver equivalent production of 29.6 million ounces compared to 25.4 million ounces in 2011, representing an increase of 17%. Record silver equivalent sales of 27.3 million ounces compared to 21.1 million ounces in 2011, representing an increase of 30%. Record revenues of $849.6 million compared to $730.0 million in 2011, representing a 16% increase. Record net earnings of $586.0 million ($1.66 per share) compared to $550.0 million ($1.56 per share) in 2011, representing a 7% increase. Record operating cash flows of $719.4 million ($2.03 per share1) compared to $626.4 million ($1.77 per share1) in 2011, representing a 15% increase. Cash operating margin1 of $26.79 per silver equivalent ounce, compared to $30.56 in 2011, representing a 12% decrease. Average cash costs1 rose to $4.30 per silver equivalent ounce, compared to $4.09 in 2011, representing a 5% increase. In August 2012, acquired from Hudbay Minerals Inc. ("Hudbay") a precious metals stream from its currently producing 777 mine ("777") and a silver stream from its cornerstone development project, Constancia. During 2012, Silver Wheaton paid $123.9 million in dividends ($0.35 per share) compared to $63.6 million in 2011 ($0.18 per share), representing a 95% increase. Record attributable silver equivalent production of 8.5 million ounces compared to 6.9 million ounces in Q4 2011 and 7.7 million ounces in Q3 2012, representing an increase of 22% and 10%, respectively. Record silver equivalent sales of 9.1 million ounces compared to 6.0 million ounces in Q4 2011 and 5.1 million ounces in Q3 2012, representing an increase of 53% and 78%, respectively. Record revenues of $287.2 million compared to $191.9 million in Q4 2011, representing a 50% increase. Record net earnings of $177.7 million ($0.50 per share) compared to $144.7 million ($0.41 per share) in Q4 2011, representing a 23% increase. Record operating cash flows of $254.0 million ($0.72 per share1) compared to $163.7 million ($0.46 per share1) in Q4 2011, representing a 55% increase. Cash operating margin1 of $26.76 per silver equivalent ounce, compared to $28.06 in Q4 2011, representing a 5% decrease. Average cash costs1 rose to $4.70 per silver equivalent ounce, compared to $4.06 per silver equivalent ounce in Q4 2011, representing a 16% increase, driven primarily by higher costs associated with silver and gold from the Hudbay 777 mine ($5.90 and $400 per ounce of silver and gold, respectively). Declared quarterly dividend of $0.14 per common share, representing 20% of the cash generated by operating activities during the three months ended December 31, 2012. Silver Wheaton anticipates a 13% year over year increase in its 2013 attributable production to approximately 33.5 million silver equivalent ounces, including 145 thousand ounces of gold. In 2017, the Company forecasts 53 million ounces of silver equivalent production (including 180 thousand ounces of gold), which represents an increase of 79% from 2012. The acquisition of the Salobo and Sudbury gold streams from Vale S.A. ("Vale") subsequent to December 31, 2012, is expected to double Silver Wheaton's attributable gold production over the next five years. Coupled with a full year of attributable production from Hudbay's 777 mine, acquired in August 2012, these cornerstone assets will drive the company's production growth in 2013. As per the Company's news release dated March 19, 2013, attributable silver and gold reserves increased to 851.4 million ounces and 4.96 million ounces, respectively, as a result of organic and acquisition growth, inclusive of the acquisition of gold streams from Vale's Salobo and Sudbury mines. Based on reserve estimates as at December 31, 20121, following the Vale transaction, silver equivalent reserves attributable to Silver Wheaton have grown to 1.12 billion ounces2. 1 Please refer to non-IFRS measures at the end of this press release. 2 Silver equivalent reserves and resources assume a gold/silver ratio of 53.3:1. "2012 was another exceptional year for Silver Wheaton, anchored by a fourth quarter that saw record production, sales, revenue, net income, and cash flow for the company," said Randy Smallwood , President and Chief Executive Officer of Silver Wheaton. With the addition of production from Hudbay's 777 mine midway through the year, plus growing production from Peñasquito, San Dimas and Zinkgruvan, 2012 production exceeded our forecast by over one and a half million ounces. This translated into sales of over 27 million ounces, with the fourth quarter coming in at over nine million ounces, and full year cash flows of over $719 million. Given our dividend policy of paying out 20% of the trailing quarter's cash flow, Silver Wheaton's strong production growth profile directly translates into higher dividends, with $0.35 per common share paid during 2012, almost double what was paid in 2011, and our strong fourth quarter resulted in our first dividend in 2013 being $0.14 per share. With the recently announced acquisition of gold streams from Vale S.A.'s Salobo and Sudbury mines, we are confident that 2013 and beyond will bring further growth and many new records to Silver Wheaton. While our organic growth profile now forecasts roughly an 80% increase of silver equivalent production over the next five years, we firmly believe there are yet more accretive opportunities for us to further add to our world-class portfolio of precious metals streams. Financial Review Revenue was $287.2 million in the fourth quarter of 2012, on silver equivalent sales of 9.1 million ounces (7.3 million ounces of silver and 33,000 ounces of gold). This represents a 50% increase from the $191.9 million of revenue generated in the fourth quarter of 2011, due primarily to a comparable increase in the number of ounces sold with relatively unchanged gold and silver prices. Revenue was $849.6 million for the year ended December 31, 2012, on silver equivalent sales of 27.3 million ounces (24.8 million ounces of silver and 46,100 ounces of gold). This represents a 16% increase from the $730.0 million in revenue generated for the year ended December 31, 2011, due primarily to a 30% increase in the number of ounces sold and a 6% increase in the average realized gold price, which were partially offset by a 10% decrease in the average realized selling price of silver. Costs and Expenses Average cash costs1 in the fourth quarter of 2012 were $4.70 per silver equivalent ounce, compared with $4.06 during the comparable period of 2011. This resulted in cash operating margins1 of $26.76 per silver equivalent ounce, a 5% decrease compared with the fourth quarter of 2011. The slightly lower margins were primarily a result of the higher production payments associated with the precious metals stream on Hudbay's 777 mine ($5.90 and $400 per ounce of silver and gold, respectively). Average cash costs1 for the year ended December 31, 2012, were $4.30 per silver equivalent ounce, compared with $4.09 during the comparable period of 2011. This resulted in cash operating margins1 of $26.79 per silver equivalent ounce, a 12% decrease compared with the year ended December 31, 2011, resulting primarily due to a 10% decrease in the average realized silver price. Earnings and Operating Cash Flows Net earnings in the fourth quarter of 2012 were $177.7 million ($0.50 per share), compared with net earnings of $144.7 ($0.41 per share) for the same period in 2011, an increase of 23%. Cash flow from operations in the fourth quarter of 2012 was $254.0 million ($0.72 per share1), compared with $163.7 million ($0.46 per share1) for the same period in 2011, an increase of 55%. The increase in net earnings and operating cash flows is primarily attributable to the increase in the amount of gold and silver sold in the quarter. Net earnings for the year ended December 31, 2012, were $586.0 million ($1.66 per share), compared with net earnings of $550.0 million ($1.56 per share) for the same period in 2011, an increase of 7%. Cash flow from operations for the year ended December 31, 2012, was $719.4 million ($2.03 per share1) compared with $626.4 million ($1.77 per share1) for the same period in 2011, an increase of 15%. The increase in net earnings and operating cash flow is primarily attributable to the increase in the amount of gold and silver sold, slightly offset by the decrease in the average realized silver price. At December 31, 2012, the Company had approximately $778 million of cash on hand. Subsequent to the year end, Silver Wheaton announced the acquisition of two gold streams from Vale for a cash consideration of $1.90 billion (plus 10 million Silver Wheaton warrants with a strike price of $65 and a term of 10 years). As part of the funding for this transaction, Silver Wheaton entered into two new unsecured credit facilities, comprised of (1) a $1 billion revolving credit facility having a 5 year term (the "Revolving Facility"); and (2) a $1.5 billion bridge financing facility having a 1 year term (the "Bridge Facility"). The Revolving Facility and Bridge Facility replaced the $400 million Revolver Loan and the Term Loan, with the latter being repaid in full on February 22, 2013. The $778 million of cash and cash equivalents as at December 31, 2012 combined with the liquidity provided by the $2.5 billion of new credit facilities positions the Company well to fund all outstanding commitments as well as providing flexibility to acquire additional accretive precious metal stream interests. Attributable silver equivalent production was a record 8.5 million ounces (7.0 million ounces of silver and 26,400 ounces of gold) in the fourth quarter of 2012, a 22% increase compared to the fourth quarter of 2011. In 2012, Silver Wheaton experienced its fourth year of record annual attributable production of 29.6 million silver equivalent ounces (26.9 million ounces of silver and 50,000 ounces of gold), a 17% increase compared to 2011. _____________________________ 1 Please refer to non-IFRS measures at the end of this press release. Operational highlights for the year ended December 31, 2012 are as follows: Peñasquito - In 2012, the Peñasquito mine produced 6.6 million ounces of attributable silver, an increase of 24% over 2011. Though production was higher than 2011, an unprecedented regional drought resulted in water shortages causing mill throughput to average 100,000 tonnes per day in 2012, below the design capacity of 130,000 tonnes per day. As stated in Goldcorp Inc.'s ("Goldcorp") press release dated January 7, 2013, the Peñasquito mine continues to be impacted by the drought and as a result, throughput is expected to average 105,000 tonnes per day in 2013 as additional water wells are brought into production within the Cedros Basin in addition to new dewatering wells within the Chile Colorado pit. A water and tailings study to develop a comprehensive long-term water strategy for the Peñasquito district is underway and Goldcorp expects this study to be completed during the first half of 2013. San Dimas - Attributable production from the San Dimas mine was 5.9 million ounces1 in 2012, an increase of 6% over 2011. On October 15, 2012, Primero Mining Corp. ("Primero") announced a mine and mill expansion of San Dimas. Primero has elected a staged approach to the full expansion and has approved the expenditure of a total of $14.4 million to expand the San Dimas mine and mill from 2,000 tonnes per day currently to 2,500 tonnes per day. Construction of the mine and mill expansion began in October 2012, with an estimated completion during the first quarter of 2014. A further plant expansion to 3,000 tonnes per day continues to be assessed and is dependent on future exploration success by Primero. Zinkgruvan - Attributable production in 2012 was a record 2.5 million ounces, an increase of 48% over 2011, due to high ore grades, good recoveries, and continued strong throughput levels. Production for 2013 is forecast to be 2.4 million ounces as more normalized grades are expected while throughput and recoveries are expected to remain strong. Barrick & Pascua-Lama - Silver Wheaton's 2012 attributable production from the currently producing Barrick silver interests, consisting of Veladero, Lagunas Norte and Pierina mines, was 2.7 million ounces of silver. As per Barrick's year-end 2012 MD&A, during the fourth quarter of 2012 Barrick finalized the cost estimate and schedule for its Pascua-Lama project. Initial production remains on track for the second half of 2014 and the total pre-production capital budget remained at $8.0 to $8.5 billion, of which $4.2 billion had been spent as of the end of 2012. At the end of 2012, construction was approximately 40% complete with the four kilometer long conveyance tunnel approximately 70% complete. Construction of the primary crusher in Chile commenced in January 2013, and, in Argentina, construction of the process plant facility advanced with approximately 60% of structural steel erected. Also noted in Barrick's 2012 MD&A, Barrick halted all pre-stripping activities during the fourth quarter as increased dust, exacerbated by stronger than normal winds, was observed in the open pit area. Regulatory authorities in Chile subsequently issued an order to suspend pre-stripping activities until strengthened dust mitigation and control measures could be implemented. To date, the suspension of pre-stripping has not altered Barrick's target of first production in the second half of 2014. Until December 31, 2015, Silver Wheaton will be entitled to all or a portion of the silver production from Barrick's Veladero, Pierina and Lagunas Norte mines, to the extent Pascua-Lama is operating below 75% of design capacity. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years. In its first full five years of operation, Silver Wheaton's attributable silver production is expected to average nine million ounces annually. Produced But Not Yet Delivered - Payable silver equivalent ounces produced but not yet delivered to Silver Wheaton by its partners decreased by 1.4 million ounces in the fourth quarter, resulting in a total of approximately 3.8 million payable ounces at December 31, 2012. This was primarily due to decreases in concentrate inventories at the 777, Yauliyacu, and Peñasquito mines. Detailed mine by mine production and sales figures can be found in the Appendix of this press release and in Silver Wheaton's Management's Discussion and Analysis ("MD&A") in the 'Results of Operations and Operational Review' section. _____________________________ 1 Production includes Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. Developments Subsequent to 2012 Year End Salobo and Sudbury - In February 2013, Silver Wheaton announced a deal with Vale S.A. to acquire 25% of the life of mine gold production from the Salobo Mine in Brazil and 70% of the gold production from its Canadian Sudbury mines for a 20-year term. The Salobo mine, the largest copper deposit ever found in Brazil, began operating in 2012 at a capacity of 12 million tonnes per annum (mtpa) of mill throughput capacity. The mine is already undergoing an expansion to 24 mtpa and is expected to produce approximately 70 thousand ounces of gold annually for Silver Wheaton for the first ten years of full production. Sudbury is one of the largest nickel producing areas globally and has an operating history dating back to 1885. Vale's integrated operations in Sudbury are amongst the largest in the world and are expected to contribute 50 thousand ounces of gold annually on average over the next 20 years. 2013 and Long-Term Silver Equivalent Production Forecast Based upon its current agreements -- including the gold streams from Vale's Salobo and Sudbury mines -- the Company forecasts 2013 attributable production of approximately 33.5 million silver equivalent ounces, including 145 thousand ounces of gold. This represents a 13% increase compared to 2012, which is primarily driven by a full year of production from Hudbay's 777 mine as well as the addition of gold production from Vale's Salobo and Sudbury mines. By 2017, based upon its current agreements, annual attributable production is anticipated to increase by 79% to approximately 53 million silver equivalent ounces, including 180 thousand ounces of gold. The increase is the result of the anticipated ramp up of three new mines, including Barrick's Pascua-Lama project, Hudbay's Constancia project, and Augusta Resource's Rosemont project. The world-class Pascua-Lama project is forecast to commence production in mid-2014 and, in its first full five years of operation, will contribute approximately 9 million ounces of attributable silver production annually to Silver Wheaton. Attributable mine-by-mine actual 2011 and 2012 production and forecast 2013 production are as follows: Attributable Production1, 2 2011 Actual 2012 Actual Silver ounces produced (000's) Peñasquito3 San Dimas4 Barrick5 Zinkgruvan Yauliyacu Cozamin Other6 Gold ounces produced (000's) Minto Sudbury and Salobo Silver equivalent ounces produced (000's) 7 Ounces produced represent quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the silver or gold interests relate or management estimates in those situations where other information is not available. Production at Peñasquito is lower in 2013 due to lower grades in the mine plan. Production includes Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero Comprised of the Lagunas Norte, Pierina and Veladero silver interests. Production in 2013 is lower due to forecasted lower grades at Lagunas Norte and Veladero, and declining production from Pierina as Barrick waits for approval to commence pushback. Includes the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Campo Morado, Minto, 777 and Aljustrel silver interests. Gold ounces produced are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver. For the 2013 forecast, a silver price of $30 and gold price of $1,600 were used for the silver equivalent conversion. Reserves and Resources Silver Wheaton's attributable reserves and resources, as of December 31, 2012, can be found in the Company's news release dated March 19, 2013, and are available on the Company's website at www.silverwheaton.com and in its MD&A, also available on the Company's website and posted on SEDAR at www.sedar.com. Attributable reserves and resources are based on information available to the Company as of March 18, 2013. This earnings release should be read in conjunction with Silver Wheaton's MD&A and audited Financial Statements, which are available on the Company's website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com. Webcast and New Conference Call Details To participate in the live call please use one of the following methods: Dial toll free from Canada or the US: Dial from outside Canada or the US: Pass code: Live audio webcast: Archived audio webcast: CAUTIONARY LANGUAGE REGARDING RESERVES AND RESOURCES For further information on Mineral Reserves and Mineral Resources and on Silver Wheaton more generally, readers should refer to Silver Wheaton's Annual Information Form for the year ended December 31, 2011, and other continuous disclosure documents filed by Silver Wheaton since January 1, 2012, available on SEDAR at www.sedar.com. Silver Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Mineral Resources: The information contained herein uses the terms "Measured," "Indicated" and "Inferred" Mineral Resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them and expressly prohibits U.S. registered companies from including such terms in their filings with the SEC. "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 other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves or that any exploration potential will ever be converted to any category of Mineral Reserves or Mineral Resources. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable. United States investors are urged to consider closely the disclosure in Silver Wheaton's Form 40-F, a copy of which may be obtained from Silver Wheaton or from http://www.sec.gov/edgar.shtml. _____________________________ 1 Silver equivalent production forecast assumes a gold/silver ratio of 53.3:1. Summarized Financial Results Years Ended December 31 Silver equivalent production 1 Attributable silver ounces produced (000's) Attributable gold ounces produced Attributable silver equivalent ounces produced (000's) 1 Silver equivalent sales 1 Silver ounces sold (000's) Gold ounces sold Silver equivalent ounces sold (000's) 1 Average realized price ($'s per ounce) Average realized silver price Average realized gold price Average realized silver equivalent price 1 Average cash cost ($'s per ounce) 2 Average silver cash cost Average gold cash cost Average silver equivalent cash cost 1 Total revenue ($000's) Net earnings ($000's) Add back - loss on fair value adjustment of Canadian dollar share purchase warrants issued Adjusted net earnings 2 ($000's) Adjusted earnings per share 2 Cash flow from operations ($000's) Dividends paid ($000's) Dividends paid per share Total assets ($000's) Total non-current financial liabilities ($000's) Shareholders' equity ($000's) Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period from the assets that produce both gold and silver. Refer to discussion on non-IFRS measures at the end of this press release. Consolidated Statements of Earnings US dollars and shares in thousands, except per share amounts Cost of sales, excluding depletion Depletion Total cost of sales Expenses and other income General and administrative 1 Foreign exchange loss (gain) Other (income) expense 1) Equity settled stock based compensation (a non-cash item) included in general and administrative expenses. US dollars in thousands Loss on long-term investments - common shares held Deferred income tax recovery Total other comprehensive loss Total comprehensive income Silver and gold interests Current portion of bank debt Current portion of silver interest payments Long-term portion of bank debt Performance share units Issued capital Adjustments for Equity settled stock based compensation Cash settled stock based compensation Deferred income tax expense (Gain) loss on fair value adjustment of share purchase warrants held Investment income recognized in net earnings Change in non-cash operating working capital Operating cash flows before interest received Bank debt repaid Share purchase warrants exercised Share purchase options exercised Cash applied to financing activities Silver and gold interests - interest paid Acquisition of long-term investments Proceeds on disposal of long-term investments Dividend income received Cash applied to investing activities (Decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of year Cash and cash equivalents, end of year Summary of Ounces Produced and Sold Silver ounces produced 1 San Dimas 2 Peñasquito Barrick 3 Other 4 Silver equivalent ounces of gold produced 5 Silver equivalent ounces produced 5 Silver ounces sold Silver equivalent ounces of gold sold 5 Silver equivalent ounces sold 5 Gold / silver ratio 5 Cumulative payable silver equivalent ounces produced but not yet delivered 7 Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. Certain production figures may be updated in future periods as additional information is received. The Company has been informed that reported production related to the Yauliyacu mine may have been overstated by a total of approximately 200,000 ounces for all or some portion of the period between April 1, 2011 and June 30, 2012. The required adjustments to production, if any, related to the Yauliyacu mine for these periods will be made once management completes a review of the timing and amount of any production variance. The ounces produced and sold include ounces received from Goldcorp in connection with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, 777, Aljustrel and Campo Morado silver interests. Represents production for the period August 8, 2012 to September 30, 2012. Based on management estimates. Results of Operations and Operational Review Ounces Produced² Ounces Sold Average Realized Price ($'s Per Ounce) Average Cash Cost ($'s Per Ounce) 3 Average Depletion ($'s Per Ounce) Net Earnings Cash Flow From Operations San Dimas 4 Barrick 5 Other 6 Silver equivalent 7 Corporate Total corporate All figures in thousands except gold ounces produced and sold and per ounce amounts. Results for San Dimas include 375,000 ounces received from Goldcorp in connection with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. Comprised of the operating Lagunas Norte, Pierina and Veladero silver interests in addition to the non-operating Pascua-Lama silver interest. Comprised of the operating Los Filos, Keno Hill, Mineral Park, Neves-Corvo, Stratoni, Campo Morado, Minto, 777 and Aljustrel silver interests in addition to the non-operating Rosemont silver and gold interest and Loma de La Plata and Constancia silver interests. Ounces Produced 2 Comprised of the operating Los Filos, Keno Hill, Mineral Park, Neves-Corvo, Stratoni, Campo Morado, Minto and Aljustrel silver interests in addition to the non-operating Rosemont silver and gold interest and Loma de La Plata silver interest. Results for San Dimas include 1.5 million ounces received from Goldcorp in connection with Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. Silver Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) operating cash flow per share (basic and diluted); (ii) average cash costs of silver and gold on a per ounce basis; (iii) cash operating margin; and (iv) adjusted net earnings and adjusted net earnings per share. Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. ii. Average cash cost of silver and gold on a per ounce basis is calculated by dividing the total cost of sales, less depletion, by the ounces sold. In the precious metals mining industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. iii. Cash operating margin is calculated by subtracting the average cash cost of silver and gold on a per ounce basis from the average realized selling price of silver and gold on a per ounce basis. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metals mining industry who present results on a similar basis. iv. Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of the non-cash, fair value adjustment on the Company's previously issued and outstanding share purchase warrants, which had an exercise price denominated in Canadian dollars, from net earnings of the Company. These share purchase warrants are classified as a financial liability with any fair value adjustments being reflected as a component of net earnings. This accounting treatment was applicable to the share purchase warrants which expired or were exercised prior to December 22, 2010. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, the Company and certain investors use this information to evaluate the Company's performance. These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.