Silver Wheaton reports record financial and operating results for 2009

TSX: SLW

NYSE: SLW

VANCOUVER, March 4 /CNW/ - 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).

SOURCE Silver Wheaton Corp.

For further information: For further information: Brad Kopp, Vice President, Investor Relations, Silver Wheaton Corp., Tel: 1-800-380-8687, Email: info@silverwheaton.com, Website: www.silverwheaton.com


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