Silver Wheaton reports record second quarter earnings

TSX: SLW

NYSE: SLW

VANCOUVER, Aug. 11 /CNW/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX, NYSE: SLW) is pleased to announce its unaudited results for the second quarter ended June 30, 2010.

    
    SECOND QUARTER HIGHLIGHTS

    -------------------------------------------------------------------------

    -  Net earnings increased by almost 200% to a record US$53.3 million
       (US$0.16 per share), compared with US$18.4 million (US$0.07 per
       share) in 2009.

    -  Operating cash flows increased by more than 150% to US$67.0 million
       (US$0.20 per share)(1), compared with US$26.5 million (US$0.09 per
       share)(1) in 2009.

    -  Attributable silver equivalent production of 5.7 million ounces (5.3
       million ounces of silver and 5,800 ounces of gold), representing an
       increase of 33% over the comparable period in 2009.

    -  Record silver equivalent sales of 5.1 million ounces (4.6 million
       ounces of silver and 7,600 ounces of gold), representing an increase
       of 74% over the comparable period in 2009.

    -  Total cash costs(1) of US$4.03 per silver equivalent ounce, compared
       with US$3.99 per ounce in 2009.

    -  Cash operating margin(1) increased by 44% to US$14.45 per silver
       equivalent ounce, compared with US$10.05 per ounce in 2009.

    -  Production at Goldcorp Inc.'s world-class gold-silver-lead-zinc
       Penasquito mine continued to ramp up on or ahead of schedule, with the
       second sulphide processing line achieving mechanical completion ahead
       of its previously expected third quarter completion date. Penasquito's
       Line 1 is regularly operating at a designed daily throughput of 50,000
       tonnes, and Line 2 is now in the commissioning phase and ramping up to
       add another 50,000 tonnes per day of capacity. Upon completion of the
       high pressure grinding circuit, Penasquito is anticipated to ramp up
       to full production capacity of 130,000 tonnes per day by early 2011.
       Annual production attributable to Silver Wheaton from the mine is
       expected to average approximately 7 million ounces of silver over the
       estimated 22 year mine life.

    -  Barrick Gold Corp.'s world-class gold-silver Pascua-Lama project
       remains on track to enter production in the first quarter of 2013.
       Detailed engineering and procurement is nearing completion with many
       major items now purchased. Once in production, Pascua Lama is forecast
       to be one of the largest and lowest cost gold mines in the world with
       average annual production attributable to Silver Wheaton, in its first
       five years, of approximately 9 million ounces of silver. Pascua-Lama
       is a long-life asset with an expected mine life in excess of 25 years.

    -  Acquired, by way of a private placement financing, 1.8 million units
       of Ventana Gold Corp. for total consideration of C$20.7 million (US
       $19.8 million). As part of this transaction, Silver Wheaton has been
       granted a right of first refusal over any silver streams relating to
       Ventana's Colombian properties, including the highly prospective La
       Bodega project, which has the potential to host a world-class gold
       deposit with significant silver by product credits.

    -  Subsequent to quarter end, Goldcorp completed the sale of the San
       Dimas mine to Primero Mining Corp. ("Primero"). In conjunction with
       the sale, Silver Wheaton agreed to amend its silver purchase agreement
       relating to the mine. The term of the silver purchase agreement, which
       was set to expire in 2029, has been extended to life of mine. During
       the first four years following closing of the transaction, Primero
       will deliver to Silver Wheaton a per annum amount equal to the first
       3.5 million ounces of payable silver produced at San Dimas and 50% of
       any excess, plus Silver Wheaton will receive an additional 1.5 million
       ounces of silver per annum to be delivered by Goldcorp. Beginning in
       the fifth year after closing, Primero will deliver to the Company a
       per annum amount equal to the first 6 million ounces of payable silver
       produced at San Dimas and 50% of any excess. Goldcorp will continue to
       guarantee the delivery by Primero of all silver produced and owing to
       the Company until 2029, and a payment of US$0.50 per ounce for any
       shortfall below 215 million cumulative silver ounces delivered to
       Silver Wheaton by the end of 2031. Primero has provided Silver Wheaton
       with a right of first refusal on any metal stream or similar
       transaction it enters into.


    ---------------------------------------
    (1) Refer to discussion on non-GAAP measures at the end of this press
        release.
    

"Another very solid quarter resulted in record sales and earnings," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With Goldcorp's Penasquito mine in Mexico, the first of our cornerstone assets, continuing to ramp up silver production ahead of schedule, we look forward to an even stronger second half to the year and maintain our annual attributable silver equivalent production guidance of 23.5 million ounces. In the face of continued global economic uncertainty, the price of silver performed very well in the quarter, leading to record cash operating margins of US$14.45 per ounce, and clearly demonstrating the advantages of Silver Wheaton's business model of low fixed operating costs."

"Two transactions, both having potential to further increase Silver Wheaton's industry leading production growth profile, were also completed in the quarter. First, in connection with Goldcorp's sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer, Silver Wheaton agreed to amend its silver purchase agreement to the benefit of both parties. The final agreement provides Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine."

"Second, Silver Wheaton acquired a right of first refusal over any silver streams relating to Ventana Gold Corp.'s Colombian properties, including its flagship high-grade gold-silver La Bodega project, one of the most exciting gold discoveries in the last decade. As Ventana continues to advance this potential world-class project closer to production and evaluates project financing options, we anticipate working towards completing a silver streaming agreement."

This earnings release should be read in conjunction with Silver Wheaton's unaudited MD&A and Financial Statements, which are available on the Company's website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.

A conference call will be held Thursday, August 12, 2010, starting at 11:00 am (Eastern Time) to discuss these results. 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
    Pass code:                                        80637046
    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:                                        80637046
    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.

    
    Consolidated Statement of Operations (unaudited)

    (US dollars and shares
     in thousands, except         Three Months Ended       Six Months Ended
     per share amounts                  June 30                 June 30
     - unaudited)                  2010        2009        2010        2009
    -------------------------------------------------------------------------

    Sales                     $   95,004  $   41,403  $  180,942  $   78,975
    -------------------------------------------------------------------------
    Cost of sales                 20,700      11,764      40,868      24,304
    Depletion                     15,360       6,419      28,911      13,006
    -------------------------------------------------------------------------
                                  36,060      18,183      69,779      37,310
    -------------------------------------------------------------------------
    Earnings from operations      58,944      23,220     111,163      41,665
    -------------------------------------------------------------------------

    Expenses and other income
      General and
       administrative(1)           6,118       4,433      13,313       9,011
      Gain on mark-to-market
       of warrants held             (397)        (30)       (233)        (33)
      Other                          (35)        379         196        (862)
    -------------------------------------------------------------------------
                                   5,686       4,782      13,276       8,116
    -------------------------------------------------------------------------

    Net earnings                  53,258      18,438      97,887      33,549
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings per share  $     0.16  $     0.07  $     0.29  $     0.12
    Diluted earnings per
     share                    $     0.15  $     0.06  $     0.28  $     0.12
    Weighted average number
     of shares outstanding
      Basic                      342,898     297,973     342,618     284,205
      Diluted                    348,441     301,235     347,492     286,976
    -------------------------------------------------------------------------

    1)  Stock based compensation
        (a non-cash item)
        included in general
        and administrative    $    2,017  $      830  $    5,125  $    2,689



    Consolidated Balance Sheets (unaudited)

                                                        June 30   December 31
    (US dollars in thousands - unaudited)                 2010        2009
    -------------------------------------------------------------------------

    Assets
    Current
      Cash and cash equivalents                       $  322,896  $  227,566
      Accounts receivable                                  7,912       4,881
      Other                                                1,971       1,027
    -------------------------------------------------------------------------
                                                         332,779     233,474

    Long-term investments                                 97,133      73,747
    Silver and gold interests                          1,948,208   1,928,476
    Other                                                  1,352       1,527
    -------------------------------------------------------------------------
                                                      $2,379,472  $2,237,224
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current
      Accounts payable                                $    1,760  $    5,397
      Accrued liabilities                                  4,270       4,578
      Current portion of bank debt                        28,560      28,560
      Current portion of silver interest payments        158,326     130,788
    -------------------------------------------------------------------------
                                                         192,916     169,323

    Long-term portion of bank debt                        92,900     107,180
    Long-term portion of silver interest payments        244,829     236,796
    -------------------------------------------------------------------------
                                                         530,645     513,299
    -------------------------------------------------------------------------

    Shareholders' Equity
    Issued capital and contributed surplus             1,357,623   1,333,191
    -------------------------------------------------------------------------

    Retained earnings                                    441,721     343,834
    Accumulated other comprehensive income                49,483      46,900
    -------------------------------------------------------------------------
                                                         491,204     390,734
    -------------------------------------------------------------------------
                                                       1,848,827   1,723,925
    -------------------------------------------------------------------------
                                                      $2,379,472  $2,237,224
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Statement of Cash Flows (unaudited)

                                  Three Months Ended       Six Months Ended
    (US dollars in thousands            June 30                 June 30
     - unaudited)                  2010        2009        2010        2009
    -------------------------------------------------------------------------

    Operating Activities
    Net earnings              $   53,258  $   18,438  $   97,887  $   33,549
    Items not affecting cash
      Depreciation and
       depletion                  15,426       6,482      29,042      13,130
      Stock based compensation     2,017         830       5,125       2,689
      Gain on mark-to-market
       of warrants held             (397)        (30)       (233)        (33)
      Other                          244        (325)        372         190
    Change in non-cash operating
     working capital              (3,558)      1,058      (7,603)         48
    -------------------------------------------------------------------------
    Cash generated by operating
     activities                   66,990      26,453     124,590      49,573
    -------------------------------------------------------------------------

    Financing Activities
    Bank debt repaid              (7,140)     (7,140)    (14,280)   (227,780)
    Shares issued                      -           -           -     230,424
    Share issue costs                  -        (427)        (85)     (9,975)
    Share purchase warrants
     exercised                       839          77       1,006         163
    Share purchase options
     exercised                    15,008       1,502      18,302       1,589
    -------------------------------------------------------------------------
    Cash generated by (applied
     to) financing activities      8,707      (5,988)      4,943      (5,579)
    -------------------------------------------------------------------------

    Investing Activities
    Silver and gold interests    (13,194)     (1,276)    (13,711)     (4,647)
    Acquisition of Silverstone
     Resources Corp., net of
     cash acquired                     -       2,668        (201)      2,668
    Long-term investments        (19,754)          -     (20,889)          -
    Other                            417         (72)        406          16
    -------------------------------------------------------------------------
    Cash (applied to) generated
     by investing activities     (32,531)      1,320     (34,395)     (1,963)
    -------------------------------------------------------------------------
    Effect of exchange rate
     changes on cash and cash
     equivalents                      72          61         192        (551)
    -------------------------------------------------------------------------
    Increase in cash and cash
     equivalents                  43,238      21,846      95,330      41,480
    Cash and cash equivalents,
     beginning of period         279,658      26,744     227,566       7,110
    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period            $  322,896  $   48,590  $  322,896  $   48,590
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Results of Operations (unaudited)

                                            Three Months Ended June 30, 2010
    -------------------------------------------------------------------------
                                                                     Average
                                                                    realized
                                                                       price
                               Ounces       Ounces        Sales   (US$'s per
                           produced(3)        sold       (US$'s)       ounce)
    -------------------------------------------------------------------------

    Silver
      San Dimas                 1,110        1,076  $    19,999  $     18.58
      Zinkgruvan                  478          313        5,727        18.29
      Yauliyacu                   692          517        9,688        18.74
      Penasquito                  800          656       12,111        18.46
      Minto                        49           46          860        18.63
      Cozamin                     286          412        7,588        18.44
      Barrick(5)                  697          727       13,242        18.20
      Other(6)                  1,159          897       16,544        18.45
    -------------------------------------------------------------------------
                                5,271        4,644  $    85,759  $     18.46
    Gold
      Minto                     5,802        7,584  $     9,245  $     1,219
    -------------------------------------------------------------------------

    Silver Equivalent(7)        5,651        5,140  $    95,004  $     18.48
    Corporate
    -------------------------------------------------------------------------
                                5,651        5,140  $    95,004  $     18.48
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                            Three Months Ended June 30, 2010
    -------------------------------------------------------------------------
                                                                   Cash flow
                                Total        Total          Net         from
                            cash cost    depletion     earnings     (used in)
                           (US$'s per   (US$'s per        (loss)  operations
                             ounce)(4)    ounce)(4)      (US$'s)      (US$'s)
    -------------------------------------------------------------------------

    Silver
      San Dimas           $      4.04  $      0.79  $    14,804  $    15,651
      Zinkgruvan                 4.04         1.72        3,924        4,352
      Yauliyacu                  3.98         3.47        5,835        7,610
      Penasquito                 3.90         2.54        7,885        9,553
      Minto                      3.90         3.69          510          819
      Cozamin                    4.04         4.62        4,022        5,620
      Barrick(5)                 3.90         3.55        7,825        9,205
      Other(6)                   3.92         4.53        8,965       12,844
    -------------------------------------------------------------------------
                          $      3.97  $      2.92  $    53,770  $    65,654
    Gold
      Minto               $       300  $       237  $     5,174  $     7,633
    -------------------------------------------------------------------------

    Silver Equivalent(7)  $      4.03  $      2.99  $    58,944  $    73,287
    Corporate                                            (5,686)      (6,297)
    -------------------------------------------------------------------------
                          $      4.03  $      2.99  $    53,258  $    66,990
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) All figures in thousands except gold ounces produced and sold and per
        ounce amounts.
    (2) Ounces produced represent the quantity of silver and gold contained
        in concentrate or doré prior to smelting or refining deductions.
    (3) Certain production figures are based on management estimates.
    (4) Refer to discussion on non-GAAP measures at the end of this press
        release.
    (5) Comprised of the Lagunas Norte, Pierina and Veladero mines.
    (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
        Neves-Corvo, Stratoni and Campo Morado mines.
    (7) 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 June 30, 2009
    -------------------------------------------------------------------------
                                                                     Average
                                                                    realized
                                                                       price
                               Ounces       Ounces        Sales   (US$'s per
                             produced         sold       (US$'s)       ounce)
    -------------------------------------------------------------------------

    Silver
      San Dimas                 1,264        1,254  $    17,577  $     14.02
      Zinkgruvan                  480          469        6,746        14.38
      Yauliyacu                   870          546        7,593        13.91
      Penasquito                  162          130        1,853        14.28
      Minto                      37(5)       (1)(4)       (7)(4)       13.11
      Cozamin                   262(5)         213        2,935        13.78
      Other(6)                  750(5)         327        4,571        13.92
    -------------------------------------------------------------------------
                                3,825        2,938  $    41,268  $     14.04
    Gold
      Minto                   6,823(5)       145(4) $     135(4) $       925
    -------------------------------------------------------------------------

    Silver Equivalent(7)        4,253        2,950  $    41,403  $     14.04
    Corporate
    -------------------------------------------------------------------------
                                4,253        2,950  $    41,403  $     14.04
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                            Three Months Ended June 30, 2009
    -------------------------------------------------------------------------
                                                                   Cash flow
                                Total        Total          Net         from
                            cash cost    depletion     earnings     (used in)
                           (US$'s per   (US$'s per        (loss)  operations
                             ounce)(3)    ounce)(3)      (US$'s)      (US$'s)
    -------------------------------------------------------------------------

    Silver
      San Dimas           $      4.02  $      0.65  $    11,721  $    12,538
      Zinkgruvan                 4.02         1.78        4,024        5,159
      Yauliyacu                  3.94         3.47        3,546        5,442
      Penasquito                 3.90         2.35        1,041        1,347
      Minto                      3.90         4.42           (3)          15
      Cozamin                    4.00         4.66        1,090        3,388
      Other(6)                   3.92         4.67        1,751        3,656
    -------------------------------------------------------------------------
                          $      3.99  $      2.17  $    23,170  $    31,545
    Gold
      Minto               $       300  $       284  $        50  $       192
    -------------------------------------------------------------------------

    Silver Equivalent(7)  $      3.99  $      2.18  $    23,220  $    31,737
    Corporate                                            (4,782)      (5,284)
    -------------------------------------------------------------------------
                          $      3.99  $      2.18  $    18,438  $    26,453
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) All figures in thousands except gold ounces produced and sold and per
        ounce amounts.
    (2) Ounces produced represent the quantity of silver contained in
        concentrate or doré prior to smelting or refining deductions.
    (3) Refer to discussion on non-GAAP measures at the end of this press
        release.
    (4) No concentrate shipments were made during the period. Amounts
        reflected above represent provisional invoice adjustments.
    (5) Production figures for Silverstone assets acquired have been pro
        rated based on the number of days in the quarter following the
        Silverstone acquisition.
    (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
        Neves-Corvo, Stratoni and Campo Morado mines.
    (7) 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.



                                              Six Months Ended June 30, 2010
    -------------------------------------------------------------------------
                                                                     Average
                                                                    realized
                                                                       price
                               Ounces       Ounces        Sales   (US$'s per
                           produced(3)        sold       (US$'s)       ounce)
    -------------------------------------------------------------------------

    Silver
      San Dimas                 2,316        2,282  $    40,850  $     17.90
      Zinkgruvan                  865          811       14,284        17.61
      Yauliyacu                 1,429        1,098       19,824        18.05
      Penasquito                1,320        1,080       19,486        18.05
      Minto                       111           93        1,649        17.61
      Cozamin                     687          693       12,401        17.91
      Barrick(5)                1,477        1,510       26,740        17.71
      Other(6)                  2,012        1,504       26,987        17.95
    -------------------------------------------------------------------------
                               10,217        9,071  $   162,221  $     17.88
    Gold
      Minto                    13,358       16,194  $    18,721  $     1,156
    -------------------------------------------------------------------------

    Silver Equivalent(7)       11,097       10,138  $   180,942  $     17.85
    Corporate
    -------------------------------------------------------------------------
                               11,097       10,138  $   180,942  $     17.85
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                              Six Months Ended June 30, 2010
    -------------------------------------------------------------------------
                                                                   Cash flow
                                Total        Total          Net         from
                            cash cost    depletion     earnings     (used in)
                           (US$'s per   (US$'s per        (loss)  operations
                             ounce)(4)    ounce)(4)      (US$'s)      (US$'s)
    -------------------------------------------------------------------------

    Silver
      San Dimas           $      4.04  $      0.79  $    29,837  $    31,631
      Zinkgruvan                 4.04         1.72        9,615       10,056
      Yauliyacu                  3.98         3.47       11,645       15,460
      Penasquito                 3.90         2.54       12,528       15,275
      Minto                      3.90         3.69          939        1,227
      Cozamin                    4.03         4.62        6,413        9,656
      Barrick(5)                 3.90         3.52       15,530       17,615
      Other(6)                   3.92         4.32       14,598       21,417
    -------------------------------------------------------------------------
                          $      3.97  $      2.77  $   101,105  $   122,337
    Gold
      Minto               $       300  $       235  $    10,058  $    13,386
    -------------------------------------------------------------------------

    Silver Equivalent(7)  $      4.03  $      2.85  $   111,163  $   135,723
    Corporate                                           (13,276)     (11,133)
    -------------------------------------------------------------------------
                          $      4.03  $      2.85  $    97,887  $   124,590
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) All figures in thousands except gold ounces produced and sold and per
        ounce amounts.
    (2) Ounces produced represent the quantity of silver and gold contained
        in concentrate or doré prior to smelting or refining deductions.
    (3) Certain production figures are based on management estimates.
    (4) Refer to discussion on non-GAAP measures at the end of this press
        release.
    (5) Comprised of the Lagunas Norte, Pierina and Veladero mines.
    (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
        Neves-Corvo, Stratoni and Campo Morado mines.
    (7) 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.



                                              Six Months Ended June 30, 2009
    -------------------------------------------------------------------------
                                                                     Average
                                                                    realized
                                                                       price
                               Ounces       Ounces        Sales   (US$'s per
                             produced         sold       (US$'s)       ounce)
    -------------------------------------------------------------------------

    Silver
      San Dimas                 2,587        2,606  $    34,104  $     13.09
      Zinkgruvan                  941          920       12,162        13.22
      Yauliyacu                 1,609        1,289       16,282        12.63
      Penasquito                  322          265        3,414        12.89
      Minto                      37(5)       (1)(4)       (7)(4)       13.11
      Cozamin                   262(5)         213        2,935        13.78
      Other(6)                1,309(5)         804        9,950        12.36
    -------------------------------------------------------------------------
                                7,067        6,096  $    78,840  $     12.93
    Gold
      Minto                   6,823(5)       145(4) $     135(4) $       925
    -------------------------------------------------------------------------

    Silver Equivalent(7)        7,495        6,108  $    78,975  $     12.93
    Corporate
    -------------------------------------------------------------------------
                                7,495        6,108  $    78,975  $     12.93
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                              Six Months Ended June 30, 2009
    -------------------------------------------------------------------------
                                                                   Cash flow
                                Total        Total          Net         from
                            cash cost    depletion     earnings     (used in)
                           (US$'s per   (US$'s per        (loss)  operations
                             ounce)(3)    ounce)(3)      (US$'s)      (US$'s)
    -------------------------------------------------------------------------

    Silver
      San Dimas           $      4.02  $      0.74  $    21,697  $    23,628
      Zinkgruvan                 4.02         1.78        6,825        8,379
      Yauliyacu                  3.92         3.47        6,758       11,233
      Penasquito                 3.90         2.35        1,758        2,381
      Minto                      3.90         4.42           (3)          15
      Cozamin                    4.00         4.66        1,090        3,388
      Other(6)                   3.92         4.10        3,490        7,487
    -------------------------------------------------------------------------
                          $      3.98  $      2.13  $    41,615  $    56,511
    Gold
      Minto               $       300  $       284  $        50  $       192
    -------------------------------------------------------------------------

    Silver Equivalent(7)  $      3.98  $      2.13  $    41,665  $    56,703
    Corporate                                            (8,116)      (7,130)
    -------------------------------------------------------------------------
                          $      3.98  $      2.13  $    33,549  $    49,573
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (1) All figures in thousands except gold ounces produced and sold and per
        ounce amounts.
    (2) Ounces produced represent the quantity of silver and gold contained
        in concentrate or doré prior to smelting or refining deductions.
    (3) Refer to discussion on non-GAAP measures at the end of this press
        release.
    (4) No concentrate shipments were made during the period. Amounts
        reflected above represent provisional invoice adjustments.
    (5) Production figures for Silverstone assets acquired have been pro
        rated based on the number of days in the quarter following the
        Silverstone acquisition.
    (6) Comprised of the Los Filos, San Martin, La Negra, Mineral Park,
        Neves-Corvo, Stratoni and Campo Morado mines.
    (7) 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.
    

Non-GAAP Measures

Silver Wheaton has included, throughout this document, 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 and cash operating margin. 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. Cash operating margin is defined as the realized selling price less total cash cost per silver equivalent ounce. 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 three months ended June 30, 2010, the Company's total cash costs, which were equivalent to the Company's cost of sales in accordance with GAAP, were US$3.97 per ounce of silver and US$300 per ounce of gold (three months ended June 30, 2009 - US$3.97 per ounce of silver and US$300 per ounce of gold).

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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