FOR IMMEDIATE
RELEASE
TSX:SLW
February 19,
2009
NYSE:SLW
Silver Wheaton REPORTS 2008 FINANCIAL RESULTS
Vancouver, British Columbia - Silver
Wheaton Corp. (TSX, NYSE:SLW) is pleased to announce its unaudited
results for the fourth quarter and the year ended December 31,
2008. Annual net earnings were US$17.3 million (US$0.07 per share),
after giving effect to a US$65.1 million (US$0.28 per share) non-cash
write-down of long term investments, and operating cash flows were
US$111.1 million (US$0.48 per share).
2008 HIGHLIGHTS (12 Months)
-
Net earnings of US$17.3 million (US$0.07 per share) from the
sale of 11.1 million ounces of silver, after recording a US$65.1 million
(US$0.28 per share) non-cash write-down of long term investments,
compared to US$91.9 million (US$0.41 per share) from the sale of 13.1
million ounces of silver in 2007.
-
Operating cash flows of US$111.1 million (US$0.48 per
share), compared to US$119.3 million (US$0.54 per share) in 2007.
- With four new
silver stream agreements completed in 2008, and the world class Pe�asquito
project commencing production, annual silver sales are expected to
increase to 15 to 17 million ounces in 2009 and to approximately 30
million ounces by 2013.
- In
February 2008, Goldcorp sold its entire 48% interest in Silver Wheaton,
on a bought deal basis, for aggregate gross cash proceeds of C$1.6
billion.
- In June 2008, an
amending agreement was entered into with existing lenders to increase the
revolving bank debt available by US$100 million to US$400 million.
- In September
2008, an early exercise of the Company's share purchase and series
"A" publicly traded warrants was successfully
completed. The Company received gross cash proceeds in excess of
C$120 million which were used to pay down outstanding bank debt.
- Subsequent to
year-end, gross proceeds of C$287.5 million were raised by way of a
bought deal equity financing through the issuance of 35,937,500 common
shares. The proceeds were primarily used to repay outstanding debt
under the revolving bank loan facility, and are available to fund future
acquisitions of silver interests.
FOURTH QUARTER HIGHLIGHTS (3 Months)
-
Net loss of US$54.2 million (US$0.22 per share) from the
sale of 2.7 million ounces of silver, after recording a US$64.0 million
(US$0.26 per share) non-cash write-down of long term investments,
compared to US$24.9 million (US$0.11 per share) from the sale of 3.5
million ounces of silver in 2007.
-
Operating cash flows of US$15.5 million (US$0.06 per share),
compared to US$34.4 million (US$0.15 per share) in 2007
- In October 2008,
the Company entered into an agreement with Alexco Resource Corp.
("Alexco") to acquire 25% of the silver produced from Alexco's
Keno Hill project located in the Yukon Territory, Canada, for the life of
mine. Silver Wheaton will make total upfront cash payments of US$50
million, of which US$15 million had been paid by December 31, 2008,
with a per ounce cash payment of the lesser of US$3.90 (subject to
an inflationary adjustment) and the prevailing market price being due for
silver delivered under the agreement.
"With
the onset of the global economic crisis, the strength of Silver Wheaton's
business model has been clearly demonstrated," said Peter Barnes,
President and Chief Executive Officer of Silver Wheaton. "Despite a
year of significant challenges, including less than anticipated silver
deliveries from the Luismin mines in Mexico, we have continued to
diversify our silver stream portfolio and have laid the groundwork for a
significant increase in silver sales in 2009. With annual silver
sales from our existing assets expected to approach 30 million ounces by
2013, our organic growth profile is unrivaled. In the last 6 months
we have raised gross proceeds of more than US$340 million, to pay down
our revolving credit facility in full and to give us the financial
flexibility to pursue further accretive growth opportunities with
low-cost mines in current production."
2009
and Five Year Silver Sales Forecast
The Company estimates, based upon its
current agreements, to have annual silver sales of 15 to 17 million
ounces in 2009, increasing to approximately 30 million ounces by
2013. Mine-by-mine actual 2008 silver sales and forecast 2009 silver
sales are as follows:
|
Silver
Sales
|
Mine
|
2008
Actual
('000
ozs)
|
2009
Forecast
('000
ozs)
|
Luismin*
|
5,434
|
5,700 - 6,200
|
Yauliyacu
|
2,777
|
2,900 - 3,500
|
Zinkgruvan
|
1,563
|
1,800 - 2,100
|
Stratoni
|
947
|
1,600 - 1,700
|
Pe�asquito - heap leach
|
288
|
800 - 1,000
|
-
mill
|
-
|
600 - 700
|
Campo Morado, Mineral Park, La Negra
|
128
|
1,600 - 1,800
|
Total
|
11,137
|
15,000
- 17,000
|
*
includes the San Dimas, Los Filos and San Martin mines
As
several mines continue to ramp up production throughout 2009, silver
sales are anticipated to be more heavily weighted towards the second half
of the year. Silver sales are forecast to be approximately 3 million
ounces in the first quarter of 2009.
A conference call will be
held Thursday, February 19, 2009 at 11:30 am (Pacific 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: 1-888-280-8771
Dial from outside Canada or the
US:
1-416-695-9761
Dial toll free from parts of
Europe:
800-4222-8835
Live audio
webcast: http://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:
1-800-408-3053
Dial from outside Canada or the
US: 1-416-695-5800
Pass
code: 3281209#
Archived audio
webcast: http://www.silverwheaton.com/
To view the full copy of this press release, including
the unaudited 2008 financial statements, please 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, 2007
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.
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