Issue link: http://resourceworld.uberflip.com/i/294363
8 www.resourceworld.com A P R I L / M A Y 2 0 1 4 "The Constancia Project of Hudbay Minerals Inc. [HBM-TSX, NYSE] will be up and running by the end of 2014 and that's a big step up for us. [Vale's] Salobo is ramping up and a second line will come online this year, so we'll see a great deal of development there as well," he said. "However, most of this is going to be com - ing on stream towards the end of the year, so we won't be seeing a big impact in our 2014 numbers. That will come in 2015." "There's also Augusta's Rosemont Project," he added. "It's a very attractive project and, assuming it gets permitted this year, it should be up and running in 2017. Who ultimately builds the project is, of course, still to be decided." "We've also got some exciting projects that aren't even part of that 42.5 million ounces figure and will add substantially to our growth profile if they also come on stream," he said, adding that the focus will remain dominated by silver sourced from the highest-quality operations with the healthiest of operating margins. Longer-term, Smallwood is bullish about silver's wider prospects. "I'm con - fident that we are close to the bottom," he said. "[When prices experience a heavy fall,] gold and silver mining companies react by delaying expansion and deferring capital expenditure, which affects supply and then adds price support. So I'm fairly sure that we're either close to the bottom or already at the bottom. In fact, we've seen a bit of upwards movement and have seen silver outperforming gold this year, which is as we'd expect." "Interestingly, we're also seeing this move while there's strength in both the US dollar and precious metals," Smallwood said. "The two usually have an inverse correlation and I think it underscores how concerned people are, worldwide, about the strength of their domestic currencies. Remember the standing modus operandi for central banks around the world is to print money and devalue national curren - cies to become more competitive. This is making hard, irreplaceable assets attrac- tive in terms of their appeal as a store of value. That's what we're seeing in this space." Another upside for silver comes from its industrial applications that account for more than half of its consumption. "One key attribute silver has is its electri - cal conductivity: it is more efficient than any other metal. In an age where we want more power, more efficiency and better electronics, silver will undoubtedly play an important role," Smallwood said. "Additionally, there are the antimicro - bial benefits of silver. For example, burn units across the globe are using silver- laced bandages because silver has strong antimicrobial and antibacterial character- istics. It beats back infection," he said. In October, Silver Wheaton will cele- brate its tenth anniversary. "I feel proud of the success we've built," Smallwood said. "Streaming has opened up a whole new funding method for mining operations and mining companies in a capital-inten - sive industry … we're excited about the future and the next ten years will be even more exciting in terms of where we take the company." n