Silver Wheaton reports record financial and operating results for 2009
By Silver Wheaton Corp., PRNEWednesday, March 3, 2010
VANCOUVER, March 5, 2010 - TSX: SLW
NYSE: SLW
Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE:SLW)
is pleased to announce its unaudited results for the fourth quarter and the
year ended December 31, 2009. The Company had record quarterly and annual
production, sales, earnings and cash flows from operations.
FOURTH QUARTER HIGHLIGHTS (3 Months)
------------------------------------------------------------------------
- Net earnings of US$50.8 million (US$0.15 per share) compared to a net
loss of US$54.2 million (US$0.22 per share) for the comparable period
in 2008, which included a US$64.0 million non-cash write-down of the
Company's long-term investments.
- Operating cash flows of US$71.0 million (US$0.21 per share)(1)
compared to US$15.4 million (US$0.07 per share)(1) for the comparable
period in 2008.
- Attributable silver equivalent production of 5.7 million ounces
(5.1 million ounces of silver and 8,800 ounces of gold), representing
an increase of 77% over the comparable period in 2008.
- Silver equivalent sales of 5.1 million ounces (4.7 million ounces of
silver and 7,000 ounces of gold), representing an increase of 87%
over the comparable period in 2008. Total cash costs were US $4.04(1)
per silver equivalent ounce (2008 - US$3.97(1) per silver ounce).
- Goldcorp Inc. ("Goldcorp") announced that the first silver-bearing
lead and zinc concentrate shipments had commenced at their Penasquito
mine in Mexico with preliminary metal grades, recoveries and
concentrate quality meeting or exceeding expectations. Annual
production attributable to Silver Wheaton from Penasquito is expected
to average approximately 7.0 million ounces of silver over the
estimated 22 year mine life.
2009 HIGHLIGHTS (12 Months)
------------------------------------------------------------------------
- Net earnings of US$117.9 million (US$0.39 per share) compared to US
$17.3 million (US$0.07 per share) in 2008, which included a US
$64.0 million non-cash write down of the Company's long-term
investments recorded during the fourth quarter of 2008.
- Operating cash flows of US$165.9 million (US$0.54 per share)(1)
compared to US$111.1 million (US$0.48 per share)(1) in 2008.
- Attributable silver equivalent production of 17.4 million ounces
(16.2 million ounces of silver and 19,300 ounces of gold),
representing an increase of 46% compared to 2008.
- Silver equivalent sales of 15.8 million ounces (14.7 million ounces
of silver and 17,000 ounces of gold), representing an increase of 42%
compared to 2008. Total cash costs were US$4.03(1) per silver
equivalent ounce (2008 - US$3.94 per silver ounce).
- Acquired Silverstone Resources Corp. ("Silverstone") through the
issuance of 23,434,332 common shares and 1,367,364 share purchase
options. The transaction is expected to increase average annual
production by approximately 4 million silver equivalent ounces.
- Acquired an amount equal to 25% of the life of mine silver production
from Barrick Gold Corporation's ("Barrick") Pascua-Lama project, as
well as 100% of the silver production from its Lagunas Norte, Pierina
and Veladero mines until the end of 2013. The acquisition is forecast
to increase average annual silver production by approximately
2.4 million ounces until Pascua-Lama commences production in 2013, at
which time average annual silver production is forecast to increase
by approximately 9 million ounces for the first five years of Pascua-
Lama's 25 year mine life.
- Completed two equity financings raising gross proceeds of
CDN$287.5 million and US$287.5 million respectively, through the
issuance of 61,841,250 shares. The proceeds were primarily used to
repay all outstanding debt under the US$400 million revolving bank
loan facility and to fund a portion of the Barrick silver stream
acquisition, with the remaining balance being available to fund
future silver stream acquisitions.
- Subsequent to year-end, acquired an amount equal to 100% of the life
of mine silver and gold production from Augusta Resource
Corporation's ("Augusta") Rosemont Copper project ("Rosemont") in the
United States. Rosemont is forecast to increase Silver Wheaton's
long-term annual production by approximately 2.4 million ounces of
silver, plus any gold production, estimated by Augusta to average up
to 15,000 ounces of gold per annum, commencing in 2012.
- Subsequent to year-end, converted the debenture with Pan American
Silver Corp. ("Pan American") into an agreement to acquire an amount
equal to 12.5% of the life of mine silver production from the Loma de
La Plata zone of the Navidad project located in Argentina. Navidad is
forecast to increase Silver Wheaton's long-term annual silver
production by approximately 2 million ounces.
------------------------
(1) Refer to discussion on non-GAAP measures at the end of this press
release.
"2009 was a transformational year for Silver Wheaton," said Peter Barnes,
Chief Executive Officer of Silver Wheaton. "With the completion of some of our
best acquisitions to date, we successfully raised our industry-leading
production growth profile to a new level and laid the groundwork for continued
strong organic growth long into the future. Our production of 17.4 million
silver equivalent ounces was a record for the Company and represented a 46%
increase from the prior year. Additionally, we closed the year with our second
consecutive record-setting quarter, leading to record annual sales, earnings
and cash flows. As the year progressed, Silver Wheaton clearly solidified its
leadership position as the largest and fastest growing of all metals streaming
and royalty companies in the world."
"This year promises to be equally exciting with Penasquito, our
cornerstone growth asset for the next several years, starting to significantly
ramp-up silver production.
Furthermore, as a result of the Barrick and Silverstone acquisitions
which closed part way through 2009, our shareholders are now poised to benefit
from a full year of production from six high-quality mines. Within our
existing silver stream portfolio, we are forecasting silver equivalent
production of 23.5 million ounces in 2010, more than a 35% increase compared
to 2009."
"Already, we have continued on our path of accretive growth with the
addition of two new silver streams in early 2010. We acquired an amount equal
to 100% of the life of mine silver and gold production from the Rosemont
project in Arizona, and converted a debenture allowing us to acquire an amount
equal to 12.5% of the life of mine silver production from a portion of the
Navidad project in Argentina. These are both very high-quality assets and the
Navidad transaction now gives us a stake in three of the top five silver
deposits in the world. With cash on hand of over US$227 million at the end of
2009, a fully undrawn US$400 million revolving credit facility and strong cash
flows from operations, we are exceptionally well-positioned to pursue
additional accretive acquisitions."
2010 and Long-Term Silver Equivalent Production Forecast
The Company estimates, based upon its current agreements, to have annual
attributable production in 2010 of 22.2 million ounces of silver and 20,000
ounces of gold, for total silver equivalent production of 23.5 million ounces.
This represents an increase of more than 35% compared to 2009. Total cash
costs are anticipated to be approximately US$4 per silver equivalent ounce.
By 2013, annual production is anticipated to increase to approximately 38
million ounces of silver and 59,000 ounces of gold, for total production of
over 40 million silver equivalent ounces. Attributable mine-by-mine actual
2009 production and forecast 2010 production is as follows:
------------------------
Attributable Production
-------------------------------------------------------------------------
2009 2010
Actual(2) Forecast
-------------------------------------------------------------------------
Silver ounces produced (000's)
Luismin 5,349 5,100
Zinkgruvan 1,861 2,050
Yauliyacu 3,142 3,250
Penasquito 928 3,500
Minto 172 300
Cozamin 1,016 1,650
Barrick(3) 979 2,850
Other(4) 2,737 3,500
-------------------------------------------------------------------------
16,184 22,200
Gold ounces produced (000's in silver equivalent)
Minto 1,213(5) 1,300(5)
-------------------------------------------------------------------------
Silver equivalent ounces produced (000's) 17,397 23,500
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Ounces produced represent the quantity of silver and gold contained
in concentrate or doré prior to smelting or refining deductions.
(2) Certain production figures are based on management estimates.
(3) Includes the Lagunas Norte, Pierina and Veladero mines and is based
on historical production rates.
(4) Includes the Keno Hill, Campo Morado, La Negra, Mineral Park, Neves-
Corvo and Stratoni mines.
(5) The Minto mine produced 19,321 ounces of gold in 2009 and is forecast
to produce approximately 20,000 ounces of gold in 2010.
Increased silver equivalent production in 2010 is largely due to the
continued production ramp-up at Goldcorp's Penasquito mine, coupled with the
receipt of a full year of production from the mines underlying the Barrick
and Silverstone silver stream acquisitions completed in 2009.
A conference call to discuss these results will be held Friday, March 5,
2010, at 11:00 am (Eastern Time). To participate in the live call use one of
the following methods:
Dial toll free from Canada or the US: +1-888-231-8191
Dial from outside Canada or the US: +1-647-427-7450
Live audio webcast: www.silverwheaton.com
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and you can listen to an archive of
the call by one of the following methods:
Dial toll free from Canada or the US: +1-800-642-1687
Dial from outside Canada or the US: +1-416-849-0833
Pass code: 53023062
Archived audio webcast: www.silverwheaton.com
ABOUT SILVER WHEATON
Silver Wheaton is the largest silver streaming company in the world.
Forecast 2010 production, based upon its current agreements, is 22.2 million
ounces of silver and 20,000 ounces of gold, for total production of 23.5
million silver equivalent ounces. By 2013, annual production is anticipated to
increase significantly to approximately 38 million ounces of silver and 59,000
ounces of gold, for total production of over 40 million silver equivalent
ounces. This growth is driven by the Company's portfolio of world-class
assets, including silver streams on Goldcorp's Penasquito mine and Barrick's
Pascua-Lama project.
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains "forward-looking statements"
within the meaning of the United States Private Securities Litigation Reform
Act of 1995 and "forward-looking information" within the meaning of applicable
Canadian securities legislation. Forward-looking statements, which are all
statements other than statements of historical fact, include, but are not
limited to, statements with respect to the future price of silver and gold,
the estimation of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future production, costs
of production, reserve determination and reserve conversion rates. Generally,
these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of
activity, performance or achievements of Silver Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to: fluctuations in the price of silver and gold;
the absence of control over mining operations from which Silver Wheaton
purchases silver or gold and risks related to these mining operations
including risks related to fluctuations in the price of the primary
commodities mined at such operations, actual results of mining and exploration
activities, economic and political risks of the jurisdictions in which the
mining operations are located and changes in project parameters as plans
continue to be refined; and differences in the interpretation or application
of tax laws and regulations; as well as those factors discussed in the section
entitled "Description of the Business - Risk Factors" in Silver Wheaton's
Annual Information Form available on SEDAR at www.sedar.com and in Silver
Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission
in Washington, D.C. Forward-looking statements are based on assumptions
management believes to be reasonable, including but not limited to: the
continued operation of the mining operations from which Silver Wheaton
purchases silver or gold, no material adverse change in the market price of
commodities, that the mining operations will operate and the mining projects
will be completed in accordance with their public statements and achieve their
stated production outcomes, and such other assumptions and factors as set out
herein. Although Silver Wheaton has attempted to identify important factors
that could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate. Accordingly, readers
should not place undue reliance on forward-looking statements. Silver Wheaton
does not undertake to update any forward-looking statements that are included
or incorporated by reference herein, except in accordance with applicable
securities laws.
Summarized Financial Results (unaudited)
Years Ended December 31
------------------------------------
(US dollars) 2009 2008 2007
-------------------------------------------------------------------------
Silver equivalent sales ($000's)(1) $ 239,293 $ 166,719 $ 175,434
Silver equivalent ounces (000's)(1) $ 15,823 $ 11,137 $ 13,068
Average realized silver equivalent
price ($'s per ounce) $ 15.13 $ 14.97 $ 13.42
Total cash cost ($'s per silver
equivalent ounce)(2) $ 4.03 $ 3.94 $ 3.91
-------------------------------------------------------------------------
Net earnings ($000's)(3) $ 117,924 $ 17,252 $ 91,862
-------------------------------------------------------------------------
Earnings per share
Basic $ 0.39 $ 0.07 $ 0.41
Diluted $ 0.38 $ 0.07 $ 0.37
-------------------------------------------------------------------------
Cash flow from operations ($000's) $ 165,932 $ 111,142 $ 119,261
-------------------------------------------------------------------------
Total assets ($000's) $2,237,224 $1,270,646 $1,208,474
-------------------------------------------------------------------------
Total liabilities ($000's) $ 513,299 $ 382,621 $ 426,243
-------------------------------------------------------------------------
Shareholders' equity ($000's) $1,723,925 $ 888,025 $ 782,231
-------------------------------------------------------------------------
(1) Gold ounces sold are converted to a silver equivalent basis on the
ratio of the average silver price received to the average gold price
received during the period.
(2) Refer to discussion on non-GAAP measures at the end of this press
release.
(3) Includes a $64.0 million non-cash write-down of the Company's long-
term investments held recorded during the fourth quarter of 2008.
Consolidated Statement of Operations (unaudited)
Years Ended December 31
------------------------------------
(US dollars and shares in thousands,
except per share amounts) 2009 2008 2007
-------------------------------------------------------------------------
Sales $ 239,293 $ 166,719 $ 175,434
-------------------------------------------------------------------------
Cost of sales 63,715 43,890 51,059
Depletion 41,156 19,491 21,705
-------------------------------------------------------------------------
104,871 63,381 72,764
-------------------------------------------------------------------------
Earnings from operations 134,422 103,338 102,670
-------------------------------------------------------------------------
Expenses and other income
General and administrative(1) 17,288 17,476 10,060
Debt issue costs - 601 -
(Gain) loss on mark-to-market of
long-term investments held (335) 65,066 1,839
Other (455) 30 (1,113)
-------------------------------------------------------------------------
16,498 83,173 10,786
-------------------------------------------------------------------------
Earnings before tax 117,924 20,165 91,884
Future income tax expense - 2,913 22
-------------------------------------------------------------------------
Net earnings $ 117,924 $ 17,252 $ 91,862
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1) Stock based compensation
(a non-cash item) included in
general and administrative $ 4,010 $ 5,530 $ 2,735
Basic earnings per share $ 0.39 $ 0.07 $ 0.41
Diluted earnings per share $ 0.38 $ 0.07 $ 0.37
Weighted average number of shares
outstanding
Basic 306,040 232,855 221,909
Diluted 309,500 249,244 246,728
-------------------------------------------------------------------------
Consolidated Balance Sheets (unaudited)
------------------------
December December
(US dollars in thousands) 31 2009 31 2008
-------------------------------------------------------------------------
Assets
Current
Cash and cash equivalents $ 227,566 $ 7,110
Accounts receivable 4,881 772
Other 1,027 816
-------------------------------------------------------------------------
233,474 8,698
Long-term investments 73,747 21,840
Silver and gold interests 1,928,476 1,238,368
Other 1,527 1,740
-------------------------------------------------------------------------
$2,237,224 $1,270,646
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities
Current
Accounts payable $ 5,397 $ 1,396
Accrued liabilities 4,578 3,425
Current portion of bank debt 28,560 28,560
Current portion of silver interest payments due 130,788 -
-------------------------------------------------------------------------
169,323 33,381
Long-term portion of bank debt 107,180 349,240
Long-term portion of silver interest payments due 236,796 -
-------------------------------------------------------------------------
513,299 382,621
-------------------------------------------------------------------------
Shareholders' Equity
Issued capital and contributed surplus 1,333,191 662,115
-------------------------------------------------------------------------
Retained earnings 343,834 225,910
Accumulated other comprehensive income 46,900 -
-------------------------------------------------------------------------
390,734 225,910
-------------------------------------------------------------------------
1,723,925 888,025
-------------------------------------------------------------------------
$2,237,224 $1,270,646
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Statement of Cash Flows (unaudited)
Years Ended December 31
------------------------------------
(US dollars in thousands) 2009 2008 2007
-------------------------------------------------------------------------
Operating Activities
Net earnings $ 117,924 $ 17,252 $ 91,862
Items not affecting cash
Depreciation and depletion 41,413 19,491 21,705
Future income tax expense - 2,913 22
Stock based compensation 4,010 5,530 2,735
(Gain) loss on mark-to-market of
long-term investments held (335) 65,066 1,839
Other 967 398 125
Change in non-cash operating
working capital 1,953 492 973
-------------------------------------------------------------------------
Cash generated by operating activities 165,932 111,142 119,261
-------------------------------------------------------------------------
Financing Activities
Bank debt drawn down 140,200 198,500 446,000
Bank debt repaid (382,260) (240,560) (26,140)
Promissory note repaid - - (20,000)
Shares issued 517,955 - -
Share issue costs (22,117) (1,939) -
Warrants exercised 13,779 115,796 293
Share purchase options exercised 8,776 2,667 7,347
-------------------------------------------------------------------------
Cash generated by financing activities 276,333 74,464 407,500
-------------------------------------------------------------------------
Investing Activities
Silver interests (220,644) (184,532) (557,940)
Acquisition of Silverstone Resources
Corp., net of cash acquired 2,281 - -
Other (2,849) (4,348) (19,084)
-------------------------------------------------------------------------
Cash applied to investing activities (221,212) (188,880) (577,024)
-------------------------------------------------------------------------
Effect of exchange rate changes on
cash and cash equivalents (597) 419 234
-------------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents 220,456 (2,855) (50,029)
Cash and cash equivalents, beginning
of year 7,110 9,965 59,994
-------------------------------------------------------------------------
Cash and cash equivalents, end
of year $ 227,566 $ 7,110 $ 9,965
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Results of Operations (unaudited)
Year Ended December 31, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces ($'s per
produced(2) sold Sales ounce)
-------------------------------------------------------------------------
Silver (000's)
Luismin 5,349 5,355 $ 79,100 $ 14.77
Zinkgruvan 1,861 1,710 25,569 14.95
Yauliyacu 3,142 3,014 44,829 14.87
Penasquito 928 646 9,398 14.55
Minto 172 122 2,054 16.72
Cozamin 1,016 956 15,005 15.70
Barrick(4) 979 938 16,000 17.06
Other(5) 2,737 2,003 29,488 14.71
-------------------------------------------------------------------------
16,184 14,744 $ 221,443 $ 15.02
Gold
Minto 19,321 17,132 $ 17,850 $ 1,042
-------------------------------------------------------------------------
Silver Equivalent
(000's)(6) 17,397 15,823 $ 239,293 $ 15.13
Corporate
-------------------------------------------------------------------------
17,397 15,823 $ 239,293 $ 15.13
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Year Ended December 31, 2009
-------------------------------------------------------------------------
Total Total Cash flow
cash cost depletion Net from
($'s per ($'s per earnings (used in)
ounce)(3) ounce) (loss) operations
-------------------------------------------------------------------------
Silver (000's)
Luismin $ 4.02 $ 0.70 $ 53,804 $ 57,544
Zinkgruvan 4.02 1.78 15,645 19,066
Yauliyacu 3.93 3.47 22,520 32,980
Penasquito 3.90 2.35 5,357 6,878
Minto 3.90 4.48 1,025 1,599
Cozamin 4.00 4.71 6,686 12,186
Barrick(4) 3.90 3.56 9,004 12,343
Other(5) 3.90 4.53 12,600 21,174
-------------------------------------------------------------------------
$ 3.97 $ 2.46 $ 126,641 $ 163,770
Gold
Minto $ 300 $ 288 $ 7,781 $ 12,865
-------------------------------------------------------------------------
Silver Equivalent
(000's)(6) $ 4.03 $ 2.60 $ 134,422 $ 176,635
Corporate (16,498) (10,703)
-------------------------------------------------------------------------
$ 4.03 $ 2.60 $ 117,924 $ 165,932
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Ounces produced represent the quantity of silver and gold contained
in concentrate or doré prior to smelting or refining deductions.
(2) Certain production figures are based on management estimates.
(3) Refer to discussion on non-GAAP measures at the end of this press
release.
(4) Comprised of the Lagunas Norte, Pierina and Veladero mines.
(5) Comprised of the La Negra, Mineral Park, Stratoni, Campo Morado and
Neves-Corvo mines.
(6) Gold ounces produced and sold are converted to a silver equivalent
basis on the ratio of the average silver price received to the
average gold price received during the period.
Year Ended December 31, 2008
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces ($'s per
produced sold Sales ounce)
-------------------------------------------------------------------------
Silver (000's)
Luismin 5,261 5,434 $ 81,293 $ 14.96
Zinkgruvan 1,695 1,563 23,476 15.02
Yauliyacu 3,184 2,777 42,634 15.35
Penasquito 339 288 3,411 11.84
Other(3) 1,436 1,075 15,905 14.80
-------------------------------------------------------------------------
11,915 11,137 $ 166,719 $ 14.97
Corporate
-------------------------------------------------------------------------
11,915 11,137 $ 166,719 $ 14.97
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Year Ended December 31, 2008
-------------------------------------------------------------------------
Total Total Cash flow
cash cost depletion Net from
($'s per ($'s per earnings (used in)
ounce)(2) ounce) (loss) operations
-------------------------------------------------------------------------
Silver (000's)
Luismin $ 3.97 $ 0.42 $ 57,464 $ 59,735
Zinkgruvan 3.96 1.57 14,840 17,773
Yauliyacu 3.90 3.47 22,159 31,806
Penasquito 3.90 2.42 1,591 2,287
Other(3) 3.90 4.12 7,284 11,333
-------------------------------------------------------------------------
$ 3.94 $ 1.75 $ 103,338 $ 122,934
Corporate (86,086)(4) (11,792)
-------------------------------------------------------------------------
$ 3.94 $ 1.75 $ 17,252 $ 111,142
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Ounces produced represent the quantity of silver contained in
concentrate or doré prior to smelting or refining deductions.
(2) Refer to discussion on non-GAAP measures at the end of this press
release.
(3) Comprised of the La Negra and Stratoni mines.
(4) Includes a $ 64.0 million non-cash write-down of long-term
investments held recorded in the fourth quarter of 2008.
Three Months Ended December 31, 2009
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces ($'s per
produced(2) sold Sales ounce)
-------------------------------------------------------------------------
Silver (000's)
Luismin 1,333 1,321 $ 23,398 $ 17.71
Zinkgruvan 505 357 6,547 18.32
Yauliyacu 783 1,027 17,948 17.48
Penasquito 441 191 3,293 17.24
Minto 89 55 1,018 18.45
Cozamin 388 359 6,334 17.66
Barrick(4) 756 751 12,991 17.31
Other(5) 842 613 10,880 17.76
-------------------------------------------------------------------------
5,137 4,674 $ 82,409 $ 17.63
Gold
Minto 8,800 7,033 $ 8,142 $ 1,158
-------------------------------------------------------------------------
Silver Equivalent
(000's)(6) 5,689 5,115 $ 90,551 $ 17.70
Corporate
-------------------------------------------------------------------------
5,689 5,115 $ 90,551 $ 17.70
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended December 31, 2009
-------------------------------------------------------------------------
Total Total Cash flow
cash cost depletion Net from
($'s per ($'s per earnings (used in)
ounce)(3) ounce) (loss) operations
-------------------------------------------------------------------------
Silver (000's)
Luismin $ 4.04 $ 0.65 $ 17,195 $ 18,060
Zinkgruvan 4.03 1.78 4,470 6,273
Yauliyacu 3.94 3.47 10,337 13,899
Penasquito 3.90 2.35 2,098 2,548
Minto 3.90 4.48 556 790
Cozamin 4.00 4.72 3,207 4,569
Barrick(4) 3.90 3.59 7,373 10,064
Other(5) 3.90 4.60 5,676 8,221
-------------------------------------------------------------------------
$ 3.97 $ 2.77 $ 50,912 $ 64,424
Gold
Minto $ 300 $ 288 $ 4,008 $ 7,342
-------------------------------------------------------------------------
Silver Equivalent
(000's)(6) $ 4.04 $ 2.93 $ 54,920 $ 71,766
Corporate (4,109) (785)
-------------------------------------------------------------------------
$ 4.04 $ 2.93 $ 50,811 $ 70,981
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Ounces produced represent the quantity of silver and gold contained
in concentrate or doré prior to smelting or refining deductions.
(2) Certain production figures are based on management estimates.
(3) Refer to discussion on non-GAAP measures at the end of this press
release.
(4) Comprised of the Lagunas Norte, Pierina and Veladero mines.
(5) Comprised of the La Negra, Mineral Park, Stratoni, Campo Morado and
Neves-Corvo mines.
(6) Gold ounces produced and sold are converted to a silver equivalent
basis on the ratio of the average silver price received to the
average gold price received during the period.
Three Months Ended December 31, 2008
-------------------------------------------------------------------------
Average
realized
price
Ounces Ounces ($'s per
produced sold Sales ounce)
-------------------------------------------------------------------------
Silver (000's)
Luismin 1,323 1,312 $ 13,265 $ 10.11
Zinkgruvan 374 303 2,953 9.75
Yauliyacu 787 602 6,288 10.45
Penasquito 198 190 1,960 10.32
Other(3) 535 331 4,259 12.85
-------------------------------------------------------------------------
3,217 2,738 $ 28,725 $ 10.49
Corporate
-------------------------------------------------------------------------
3,217 2,738 $ 28,725 $ 10.49
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three Months Ended December 31, 2008
-------------------------------------------------------------------------
Total Total Cash flow
cash cost depletion Net from
($'s per ($'s per earnings (used in)
ounce)(2) ounce) (loss) operations
-------------------------------------------------------------------------
Silver (000's)
Luismin $ 4.02 $ 0.42 $ 7,442 $ 7,989
Zinkgruvan 3.96 1.57 1,277 1,524
Yauliyacu 3.90 3.47 1,848 3,940
Penasquito 3.90 2.42 760 1,220
Other(3) 3.90 4.45 1,491 2,427
-------------------------------------------------------------------------
$ 3.97 $ 1.84 $ 12,818 $ 17,100
Corporate (67,011)(4) (1,654)
-------------------------------------------------------------------------
$ 3.97 $ 1.84 $ (54,193) $ 15,446
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Ounces produced represent the quantity of silver contained in
concentrate or doré prior to smelting or refining deductions.
(2) Refer to discussion on non-GAAP measures at the end of this press
release.
(3) Comprised of the La Negra and Stratoni mines.
(4) Includes a $64.0 million non-cash write-down of long-term investments
held recorded in the fourth quarter of 2008.
Non-GAAP Measures
Silver Wheaton has included, throughout this press release, certain
non-GAAP performance measures, including total cash costs of silver and gold
on a sales basis as well as operating cash flows per share. These non-GAAP
measures do not have any standardized meaning prescribed by GAAP, nor are they
necessarily comparable with similar measures presented by other companies.
Cash costs are presented as they represent an industry standard method of
comparing certain costs on a per unit basis. The Company believes that certain
investors use this information to evaluate the Company's performance. The data
is intended to provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP. During the year ended December 31, 2009, the Company's
total cash costs, which were equivalent to the Company's Cost of Sales in
accordance with GAAP, were $3.97 per ounce of silver and $300 per ounce of
gold (2008 - $3.94 per ounce of silver).
Brad Kopp, Vice President, Investor Relations, Silver Wheaton Corp., Tel: +1-800-380-8687, Email: info(at)silverwheaton.com, Website: www.silverwheaton.com
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