Silver Wheaton (TSX: T.SLW, Stock Forum), after Monday’s close, said its attributable proven and probable reserves decreased by 144 million ounces of silver and 0.03 million ounces of gold during 2011, while attributable measured and indicated resources increased by 86 million ounces of silver and 0.14 million ounces of gold, and attributable inferred resources decreased by 139 million ounces of silver and increased by 0.02 million ounces of gold.
Silver Wheaton cites the decrease in part to depletion from record production over the year, as well as a reduction in silver reserves at Goldcorp's Peñasquito mine and Primero Mining's San Dimas mine. On February 15, 2012, Goldcorp disclosed that the reduction in silver reserves at Peñasquito occurred as a result of increased cut-off grades due to higher operating costs than those estimated in the original 2006 feasibility study.
"Silver Wheaton continues to have nearly twice the silver reserves of any other silver company in the world," said Randy Smallwood, Silver Wheaton's President and CEO. "We are in a period where commodity price gains are often largely offset by industry wide operating cost pressures, which can result in reserve reductions. In an inflationary environment such as this, the strength of our 'fixed operating cost' business model, which continues to generate amongst the highest cash operating margins in the precious metals industry, is apparent. Our core assets are mainly comprised of long-life and lower-cost mines, with proven records of reserve replacement and resource conversion, and we are confident that ongoing exploration programs will continue this trend well into the future."
"San Dimas has produced in excess of 580 million ounces of silver in its greater than 100 years of operation and aggressive exploration, particularly in the Sinaloa Graben region, continues to yield excellent results. We are confident that San Dimas will deliver solid production results, and that Primero's efforts to improve mine planning will ultimately add value to this impressive asset, including the potential for significantly expanded long-term production levels."
Shares of Silver Wheaton have gained more than 13% so far in 2012 based on its recent price of $33.34 a share on the Toronto Stock Exchange.