Issue link: http://resourceworld.uberflip.com/i/581931
o c t o b e r / n o v e m b e r 2 0 1 5 www.resourceworld.com 11 holder with a dividend. "Our dividend is unique in that it is a function of our operating cash flow," said Smallwood. "We pay 20% of our operating cash flow to our shareholders averaged over the last four quarters to lessen any volatility. This is not only sustainable but it also provides a direct connection to the price of silver as well as gold to our shareholders, plus a connection to our growth. Production growth is forecast to grow over 40% over the next five years, from 35 million ounces last year to 51 million ounces in 2019." Silver Wheaton recently received a reas- sessment notice from the Canada Revenue Agency (CRA) that reassessed the company in the taxation years 2005-2010 under vari- ous rules in the Canadian Income Tax Act. "The CRA is seeking to tax, within Canada, income earned by our foreign subsidiar- ies relating to mines outside of Canada, through transfer pricing provisions," explained Smallwood. "We do not agree with the CRA's position, and we will vigor- ously defend our position." The CRA is seeking to increase Silver Wheaton's income subject to tax in Canada by approximately CDN $715 million, which would result in tax, interest and penalties of CDN $353 million. Silver Wheaton will be required to make a deposit of CDN $177 million, which is a 50% deposit of that amount. Silver Wheaton has 90 days to file a notice of objection. In addition, two class action lawsuits have been filed in the Central District of California. Regarding this development, Smallwood said, "Nothing has been cer- tified yet, so it's hard to comment. We believe the claims to be without merit, as we believe we have been transparent and conservative in prior disclosure of the tax audit." Meanwhile, Silver Wheaton is forg- ing ahead and continues to seek out other precious metal streaming opportunities and is in a strong position to add to its portfolio. n Accurate multizone groundwater characterization data — from one wellbore. Westbay systems can monitor multiple discrete zones in a single borehole without cross-contamination, acquiring quality groundwater characteriza - tion data while reducing drilling and installation costs. During a complex groundwater investigation in West Virginia, DuPont used Westbay systems to obtain detailed hydraulic data from up to 40 zones in each well, which helped quantify groundwater constituents in less time and at less cost compared with conventional methods. Find out more at www.westbay.com MULTILEVEL GROUNDWATER MONITORING SYSTEM Westbay is a mark of Nova Metrix Ground Monitoring (Canada) Ltd.