Silver Wheaton boosts reserves 9% (March 24, 2011)

The timing of Silver Wheaton‘s (SLW-T, SLW-N) announcement on Mar. 23 that it had boosted attributable reserves more than 9% in 2010 couldn’t have been better, as silver hit a fresh 31-year peak in futures markets on that day, with silver contracts for March delivery settling at US$37.20 per oz., the highest level since the middle of February in 1980.

Last year was the sixth year in a row that Silver Wheaton increased its silver reserves,  from 16 operating mines and three development-stage assets, the company said.

Reserves reached a record 954 million silver equivalent ounces by the end of 2010, with the addition of 80 million ounces of silver and 23,000 ounces of gold during the year.

Attributable measured and indicated resources during the same period rose 1% to 377 million silver equivalent ounces, while inferred resources jumped 22% to 497 million silver equivalent ounces.

Silver Wheaton said 7% of the hike in reserves was due to its acquisition of 100% of the life-of-mine silver and gold production from the Rosemont copper project in Arizona.

The world’s largest silver streaming company also forecast attributable production in 2011, based on its current agreements, will reach 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, it anticipates annual attributable production will surge to about 43 million silver equivalent ounces, including 35,000 ounces of gold.

At presstime in Toronto Silver Wheaton was trading at $44.24 per share, near its 52-week high earlier this month of $45.02.  It reached a 52-week low of $15.20 on Mar. 25 2010. The company has about 352.8 million shares outstanding.