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Silver Wheaton cuts 2011 attributable silver production forecast

Due largely to a slower than anticipated ramp-up at Goldcorp's Penasquito mine in Mexico, Silver Wheaton has had to cut its full year attributable silver production outlook

Posted: Friday , 29 Jul 2011

TORONTO (Reuters) -

Silver Wheaton (SLW.TO) lowered its full year attributable production outlook on Thursday, blaming a slow ramp-up at Goldcorp's (G.TO) Penasquito mine in Mexico.

The company said it will produce 25 million to 26 million silver equivalent ounces in 2011, down from its previous estimate of 27 million to 28 million ounces.

Silver Wheaton has the right to 25 percent of silver production at Penasquito, which is Mexico's largest open-pit mine.

On Wednesday, Goldcorp said it was forced to trim its 2011 production outlook, partly due to operational issues at Penasquito. [ID:nN1E76Q1O3]

The issues are not expected to affect 2012 production.

Silver Wheaton, which provides up-front financing to miners in exchange for the right to buy their silver by-product, pays about $4 an ounce at the time of production. Spot silver was worth $39.67 an ounce on Thursday afternoon.

Shares of Silver Wheaton closed down 0.25 percent at C$35.26 on Thursday on the Toronto Stock Exchange.

($1=$0.95 Canadian) (Reporting by Julie Gordon; editing by Rob Wilson)

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