Silver Wheaton More Than Triples Fourth Quarter and Annual Results
Vancouver, British Columbia - Silver Wheaton Corp. (TSX, NYSE:SLW) is pleased to announce record 2006 annual net earnings of US$85.2 million (US$0.40 per share) and record operating cash flows of US$104.7 million (US$0.50 per share). Fourth quarter net earnings and operating cash flows were US$23.8 million ($0.11 per share) and US$29.8 million ($0.14 per share), respectively.
2006 HIGHLIGHTS (12 Months)
- Net earnings of US$85.2 million (US$0.40 per share) from the sale of 13.5 million ounces of silver, compared to US$25.3 million (US$0.15 per share) from the sale of 9.7 million ounces of silver in 2005.
- Operating cash flows of US$104.7 million (US$0.50 per share), compared to US$30.0 million (US$0.18 per share) in 2005.
- Cash and cash equivalents at December 31, 2006 of US$60.0 million (December 31, 2005 - US$117.7 million).
- With 2006 investments in silver purchase contracts totalling US$421 million, Silver Wheaton increased silver ounces sold by almost 40% compared with the previous year, and expects silver sales to increase a further 48%, to 20 million ounces, by 2009 without any further capital expenditures, and assuming no further acquisitions.
- The Company began trading on the New York Stock Exchange under the symbol SLW.
- The Company entered into an agreement with Goldcorp, whereby Silver Wheaton received a right of first refusal on future silver purchase contracts relating to the Pe�asquito Project in Mexico.
- Silver Wheaton invested US$50.8 million to acquire significant ownership positions in publicly traded companies owning substantial undeveloped silver resources.
FOURTH QUARTER HIGHLIGHTS (3 Months)
- Net earnings of US$23.8 million (US$0.11 per share) from the sale of 3.5 million ounces of silver, compared to US$7.0 million (US$0.04 per share) from the sale of 2.2 million ounces of silver in 2005.
- Operating cash flows of US$29.8 million (US$0.14 per share), compared to US$7.7 million (US$0.05 per share) in 2005.
- Silver Wheaton increased its interest in Revett Minerals Inc. to approximately 17.2%, becoming the largest shareholder. Revett owns and operates the Troy Mine in Montana and is developing the Rock Creek copper-silver project.
- The Company acquired a 14.1% interest in Sabina Silver Corp. and a right of first refusal on any future silver stream sales from their existing projects, including the Hackett River zinc-silver project in Nunavut, Canada.
"During 2006, our stock price was up over 80%, considerably outperforming most of our peers and the price of silver," stated Peter Barnes, President and Chief Executive Officer of Silver Wheaton. "Also, our silver sales volumes increased by almost 40%, compared with the previous year, and further strong growth is anticipated over the next two years. All in all, 2006 was an excellent year for Silver Wheaton and its shareholders."
A conference call will be held Tuesday, February 20, 2007 at 11:00 am (Eastern Time) to discuss these results. You may join the call by dialling toll free 1-800-811-8824 or (913) 981-4903 for calls from outside of Canada and the US and using the pass code: 1255480.
The conference call will be recorded and you can listen to a playback of the call after the event by dialling 1-888-203-1112 or (719) 457-0820 and using the passcode: 1255480. A live and archived audio web cast will be available on the website at www.silverwheaton.com .
For The Full Year End Results Click Here
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver, 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 state 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: risks related to the integration of acquisitions, the absence of control over mining operations from which Silver Wheaton purchases silver and risks related to these mining operations, including risks related to international operations, actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in Silver Wheaton's annual information form for the year ended December 31, 2005 incorporated by reference into Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. 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 such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.
For further information, please contact:
David Awram Director, Investor Relations Silver Wheaton Corp. Tel: 1-800-380-8687 Email: info@silverwheaton.com
Website: www.silverwheaton.com
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