Good morning ladies and gentlemen. Thank you for standing by. Welcome to Silver Wheaton's 2013 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks there will be a question-and-answer session. (Operator Instructions) Thank you. I’d like to remind everyone that this conference call is being recorded on Monday May 13 at 11:00 a.m. Eastern Standard Time. I’ll now turn the conference over to Mr. Patrick Drouin, Vice President of Investor Relations. Please go ahead.

Good morning ladies and gentlemen, and thank you for participating in today’s call. I’m joined today by Randy Smallwood, Silver Wheaton’s President and Chief Executive Officer; and Gary Brown, Senior Vice President and Chief Financial Officer. I’d like to bring to your attention that some of the commentary on today’s call may contain forward-looking statements. There can be no assurance that these forward-looking statements will prove to be accurate as the actual results and future events could differ materially from those anticipated in such statements. Please refer to the section entitled Description of the Business Risk Factors in Silver Wheaton’s annual information form which is available on SEDAR and in Silver Wheaton’s Form 40-F on file with the U.S. Securities and Exchange Commission. The annual information form sets out the material risk factors that could cause actual results to differ, including the assets that control our mining operations from which Silver Wheaton purchases silver, risks related to such mining operations and the risk of a decline in silver and prices. Lastly, it should be noted that all figures referred to on today’s call are in U.S. dollars unless otherwise noted. Now I’d like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Thank you, Patrick and good morning ladies and gentlemen. Thank you for dialing in to our first quarter 2013 conference call. We are pleased to report that Silver Wheaton has had a good solid start to 2013. Strong performance from our portfolio mines put us well on track to reaching this year’s forecast production level of 33.5 million silver equivalent ounces. The addition of the Sudbury and Salobo streams from Vale in the first quarter has added to what is already one of the strongest growth profiles in the sector. With relatively modest and more importantly fixed capital commitments, we’re forecast to grow our production by over 80% to 53 million ounces per year in 2017. We also announced that we’ve amended our dividend policy in order to reduce the volatility of our payout. We originally created this unique dividend policy at the end of 2011 in order to provide our shareholders with a meaningful and sustainable dividend, but have not been pleased with the resulting volatility, largely a result of quarterly changes in the produced but not yet delivered volumes. This change in calculation methods should add stability to these benefits as well. As a result, we’re pleased to announce that our second quarterly dividend of 2013 will be $0.12 per share. With respect to the first quarter, we’re proud to announce that we’ve started 2013 with substantial year-over-year gains in silver equivalent production and sales. In the first quarter production was 8 million silver equivalent ounces, 20% higher than the first quarter of 2012 and silver equivalent sales were 13% higher than a year-ago, coming in at 6.9 million ounces. As a result, revenues and cash flow in the quarter exceeded the same quarter of 2012, despite the average realized silver price being down almost 9%.Gary Brown, our…

Thank you, Randy, and good morning ladies and gentlemen. Prior to reviewing Silver Wheaton’s unaudited financial results for the three months ended March 31, 2013, I’d like to remind everyone that all monetary figures discussed are denominated in U.S. dollars unless otherwise noted. The Company’s precious metal interest generated over 8 million silver equivalent ounces of attributable production in the first quarter of 2013, 20% higher than production from the comparable period of the prior-year, due primarily to the production generated from the recently acquired 777 Sudbury and Salobo gold interests. With the contributions from these new sources of production being partially offset by lower production at Peñasquito and other silver interests. Payable silver equivalent ounces produced but not yet delivered by our partners amounted to 4.1 million ounces as of March 31, 2013, an increase of about 300,000 ounces over the quarter, with increases at Yauliyacu, 777, Sudbury and Salobo being largely offset by a reduction at Peñasquito. Silver equivalent sales volumes amounted to 6.9 million ounces in Q1 2013 with 86% of this relating to silver and 14% relating to gold, representing a 13% increase from Q1 2012, driven primarily by the gold deliveries relating to the 777 mine. Revenue for the first quarter of 2013 amounted to $206 million, representing about a 3% increase from the comparable period of the prior-year, despite the average realized selling price per sliver equivalent ounce sold decreasing by 9% to $29.72 per ounce. Earnings from operations for the first quarter of 2013 amounted to $151 million, representing a decrease of 4% relative to the first quarter of 2012 with operating margins decreasing by 6% to 73% in the first quarter of 2013, due to a combination of lower commodity prices and higher cash costs and depletion rates associated with the recently…

Thank you, Gary. Operator, we’d like to open-up the call for questions.

Ladies and gentlemen, we’ll now conduct the question-and-answer session. (Operator Instructions) Your first question comes from the line of Andrew Kaip with BMO. Your line is open.

Hi. Good morning, guys.

Hey, Andrew.

Hi. Look, I’ve just got a couple of questions. Thanks for providing the additional information on movement of debt. Just can you remind us, first of all, on the revolver what are the interest payments and when are they – when do we expect them?

The revolver, I mean, interest payments are made whenever the LIBOR loans mature under the revolver. So we’ll enter into 30 day, 60 day, 90 day, 120 day LIBOR loans and whenever those mature, we’ll pay the interest associated with them.

Okay.

Interest rates are driven by a grid which is based upon our leverage ratio and that ranges from 120 basis points over LIBOR to 220 basis points over LIBOR.

Okay. All right. And then similarly with the bridge facility, how do we look at that?

The bridge facility should be – the remainder of the bridge the $590 million that’s outstanding currently, we’d expect to have that repaid before the end of this month.

Okay. All right. And then just remind me, I guess, we were somewhat expecting that you would be delivering approximately $125 million to Hudbay in the quarter, didn’t seem to – it didn’t happen, I’m just wondering when you’re expecting that call to be made to you?

Yeah, very shortly, Andrew. They reported $80 million committed at the end of their Q1. And so commitment versus expenditures is slightly different, so that – that’s where the difference is as of, but we do expect that first payment to be coming here within the next month or two.

All right. And then just on the revolver, can you get us an indication of what kind of, I guess, key covenants you would be looking at with respect to the revolver?

There is really only one financial covenant under the revolver and that is that our leverage ratio needs to remain below 3.5 to 1, so that’s your debt to EBITDA covenant, and that following major acquisitions for six-month periods the ratio that we need to comply with this rises to 4.5 to 1, to give us some latitude to consummate significant transitions. We’re well below that level currently.

Yeah. All right. Hey, thanks very much guys.

Thanks, Andrew.

Thanks, Andrew.

(Operator Instructions) Your next question comes from the line of Chris Lichtenheldt with Dundee Capital Markets. Your line is open

Good morning, everyone. Thanks for taking my question. I just wanted to ask on sort of the landscape of opportunities you see out there, obviously you mentioned the financing constraints out there for a lot of companies. Has this changed anything in terms of what you might be looking at, I mean, historically it's obviously been mostly primary gold mines, primary base metal mines; has there been any new opportunities in perhaps primary silver mines or alternatively have you considered looking at any base metal streams, different streams?

We will always be focused on the precious metal side with a strong bias towards the silver space. What we’ve seen is, there’s probably some more opportunities coming up where we are actually would be participating within M&A type transactions as one of the supporting parties and we’re seeing a lot more interest that way, as you can see a lot of companies that are suffering through the equities right now. So, we’ve seen a bit of a focus in that direction. The last two transactions we’ve done have been with base metal operating partners. We do think that’s what adds the most value in terms of an equation. It's supporting the base metal side and that is where more silver is produced is the base metal mining industry. So, we still strongly – the majority of the opportunities we’re looking at are in that sector, but we’re definitely seeing some activity there. We do have a couple of silver partners – silver mining partners currently, but not a lot of opportunities in that space right now.

Okay, that’s helpful. Thanks a lot.

No, problem, Chris. Thanks.

You next question comes from the line of Dan Rollins with RBC Capital Markets. Please go ahead.

Yeah. Thanks very much, and good morning gentlemen. I guess, my first question is more of a housekeeping question, just regarding the amount of interest to be expensed versus capitalized, is there sort of a ratio we should be assuming up until when Pascua-Lama begins production?

Yeah, I mean, if you look at the assets that we’ve got that are in construction you’ve got Pascua and you’ve got Constancia, and Loma de La Plata as well. So if you look at the amount that we’ve invested relative to those assets, and we would first allocate any debt to those and the interest on that debt that’s allocated to those assets would be capitalized until they come into production. So that should give you a pretty good estimate of how much interest will be capitalized versus expensed.

Okay, perfect. And then Gary, while I have you here, I know in the past you’ve stated, you guys could use debt but it doesn’t have the same impact on your financials given your efficient tax structure. But just given the appetite out there for what appears to be high-yield product in some recent deals done in the precious metal sector, what are your thoughts on going after some long year – some higher high-yield debt say, 5, 10 or even a 15 year duration given the fact that you guys do have that sort of fixed and stable cost structure which would be probably up demand for high-yield investors?

Yeah, I mean, I would hope that we’re not viewed as high-yield market players. We are looking at all our debt financing alternatives right now. But as I’ve been quite vocal in the past about with the strength of our operating cash flows bank debt tends to be the most efficient form of debt for us to pursue. It eliminates the cost of negative carry whereby we inevitably would have periods of time if we had long-term debt outstanding on our balance sheet where we would have significant amounts of cash on hand earning very low interest and carrying the debt whereas bank debt allows us to apply the cash that is built up to repay any outstanding debt and eliminate that negative carry. So, although we haven't finalized the decision at this point, we would lean towards a bank market term debt at this juncture.

Perfect, that’s great. And then maybe, Randy you mentioned sort of the M&A side of looking at future opportunities, outside of those potential mandates on some of the existing ones you’re looking at obviously the bid has come off over the last three months with the price of silver dropping and gold, but on the ones you’re looking at or would you be -- if you would have sort of the final financing pieces of pie for these guys or would you be looking at being sort of a financing – part of the financing package, because the one thing you guys haven't done in the past which I like a lot is, you’re usually the last money in on deals.

Yeah, and I don’t see much of a change in that space. We don’t put money into a project until we’re confident about the financing on that project going forward. Every development project that we’ve had has got those kinds of requirements and so we always look for that confidence whenever we invest into any type of a development projects and that’s not going to change. The market in terms of how it's changed over the last while has definitely tightened up in terms of some of our thoughts on longer term projections and stuff and so, we are measured in this. We all want to see stability in the market and that’s not something that we’ve seen much over in the last few months.

Okay, maybe just one last question, just on the Sudbury stream, obviously historically the numbers coming out have been better than planned. I know it's very, very early, but initial thoughts on sort of dealings or any good surprises coming out of Sudbury would you guys see the greater recovery on the growth side?

Yeah, I mean, it's in a growth phase right now, and so what we’re seeing is ramping up in one operation and then Tauton coming on in a couple of years. And so, what we see, we would have been very impressed with Vale in terms of the efforts that we’ve seen on that side. So, we’re pretty excited about that asset. Salobo of course is also starting to shape up quite nicely. We’re seeing continued growth. Every month is exceeding the previous month’s production and so that’s continuing to ramp up all the way through, so overall pretty happy with that acquisition.

Great. Thanks very much guys, and congrats.

Yeah, thanks Dan. Cheers.

Your next question comes from Steven Butler with Canaccord Genuity. Please go ahead.

Hey, Randy good morning.

Good morning, Steve.

Good morning. In terms of, I think our earning season is almost done. Okay, in terms of Sudbury and Salobo on the gold side where you produced 12,000 odd ounces and but of course we’re expecting sales to be quite limited. Will sales be pretty much caught up if you will in a run rate in the second quarter or should we expect still some additional delays on the sort of ramp up of capacity or the inventory if you will?

What we’ll likely see is, as the overall production continues to ramp up at Salobo the size of the – I call it the concentrate pipeline will have to be larger, and so there probably will be continued sort of growth in that space. We always sort of talk about it as being a two to three month window of concentrate and of course as we produce more concentrate that two to three month window grows. And so there probably will be a bit of inventory or produce but not yet delivered material from the Salobo asset itself. Sudbury should get pretty constant here. There is, it is a – there is a lot of different products that come out of the Sudbury camp in terms of concentrates and some Doray that goes through a mint and such and so there maybe a bit more of a catch up on that, but it would be very minimal. The bulk of the gold that’s produced in Sudbury is contained in the concentrates and that’s definitely tightened up now. So, probably a bit more growth on that value on the Salobo side.

Okay. Any other of the assets where you have your 4 odd million ounce fuel pipeline buildup or again should we expect maybe more of a Q4 cleanout, Randy, as opposed to anything in term throughout the year?

Well, we didn’t deliver, there wasn’t a lot of sold out of the Yauliyacu asset. It continued to be very bumpy, very up and down and so it's one that we always sort of wait and see as it moves forward. But, generally if you have a quarter that’s light at Yauliyacu it means the next quarter is going to be heavy. And so I would say that, we probably have something there. It seems to follow a bit of a different cycle. But then as you heard me before Steve, our fourth quarters are always good for cleaning out and first quarters as we’ve just seen are – tends to be an inventory build up again.

Right, okay. Thanks, Randy.

Great, Steve. Thank you everyone for dialing in; and I look forward to talking to you again in a couple of months.

This concludes this conference call for today. Thank you for participating. Please disconnect your lines.