In January, Wheaton agreed to pay US$210 million to
Combined, Peaks and Alumbrera are expected to produce 269,500 oz. gold annually at a cash cost of US$74 per oz. between 2003 and 2005. Wheaton’s share propels it to the number-eight slot among Canadian gold producers, increasing its annual output to 458,000 oz. gold-equivalent from the 190,000 oz. originally budgeted for 2003.
Wheaton River currently produces 100,000 oz. gold and 6 million oz. silver per year from three Mexican mines: San Martin, San Dimas and La Guitarra. It acquired the Mexican assets last year from Minas Luismin for US$75 million and 9 million shares.
Also, the new mines are expected to reduce Wheaton’s cash cost per gold-equivalent ounce to US$124 in 2003 from US$187 in 2002. Based on current metal prices, the company believes cash flow from existing operations and the acquired assets will put it in a positive net cash position by the end of 2004.
The financing consisted of 230 million units priced at $1.45 apiece. A unit consists of a share and one-quarter of a warrant, with a full warrant entitling the holder to buy an additional share until June 2007 at $1.65 each.
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