COLUMBIA--(Marketwire - Feb. 25, 2008) - Silver Wheaton Corp.
(TSX:SLW)(NYSE:SLW) is pleased to announce record annual 2007 net
earnings of US$92 million (US$0.41 per share) and record operating cash
flows of US$119 million (US$0.54 per share). Fourth quarter net earnings
and operating cash flows were US$25 million (US$0.11 per share) and US$34
million (US$0.15 per share), respectively.
2007 HIGHLIGHTS (12 Months)
- Record net earnings of US$91.9 million (US$0.41 per share) from the sale
of 13.1 million ounces of silver, compared to US$85.2 million (US$0.40
per share) from the sale of 13.5 million ounces of silver in 2006.
- Record operating cash flows of US$119.3 million (US$0.54 per share),
compared to US$104.7 million (US$0.50 per share) in 2006. - With 2007
investments in silver purchase contracts (Penasquito and Stratoni)
totalling US$558 million, annual silver sales are expected to almost
double to 25 million ounces by 2010 without any further capital
expenditures. This growth was financed by way of operating cash flows and
a US$500 million debt facility.
- Subsequent to year end, Goldcorp sold its entire 48% interest in Silver
Wheaton, on a bought deal basis, for aggregate gross cash proceeds of
FOURTH QUARTER HIGHLIGHTS (3
- Net earnings of US$24.9 million (US$0.11 per share) from the sale of
3.5 million ounces of silver, compared to US$23.8 million (US$0.11 per
share) from the sale of 3.5 million ounces of silver in 2006.
- Record operating cash flows of US$34.4 million (US$0.15 per share),
compared to US$29.8 million (US$0.14 per share) in 2006.
- On December 20, 2007, the Company signed a binding letter agreement to
purchase between 45% and 90% of silver produced by Augusta Resource
Corporation's Rosemont Copper Project in Arizona for the life of mine.
Subject to the finalization of the transaction structure, including tax
considerations, and upon receipt of all necessary mining permits by
Augusta, Silver Wheaton will pay an upfront cash payment ranging in value
from US$135 million to US$165 million to acquire 45% of the payable
silver, and US$240 million to US$320 million to acquire 90% of the
payable silver, produced for the life of mine.
"2007 was our best year ever, with record earnings, record cash
flows, and two very accretive acquisitions," said Peter Barnes,
President and Chief Executive Officer of Silver Wheaton. "These
acquisitions set us on a path to almost double our silver ounces sold by
2010, to 25 million ounces a year, and boosting our long term cash flow
per share by 40% per annum. 2008 promises to be even better than 2007,
with a strong silver price, the Goldcorp share overhang recently removed,
and a robust potential deal flow."
A conference call will be held Monday, February 25, 2008 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: 1-800-446-4472
Dial from outside Canada or the US: 1-416-695-5259
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: 1-800-408-3053 Dial from outside Canada or the US: 1-416-695-5800
Pass code: 3250736# Archived audio webcast: www.silverwheaton.com
Silver Wheaton is the largest public mining company with 100% of its
operating revenue from silver production. Silver Wheaton's 2008 silver
sales are expected to approximate 15 million ounces, increasing to 25
million ounces in 2010. Silver Wheaton is unhedged and well positioned
for further growth.
To View 2007 Financial Statements 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, 2006 incorporated
by reference into Silver Wheaton's Form 40-F on file with the U.S.
Securities and Exchange Commission in Washington, D.C. or AIF filed on
SEDAR. 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:
Silver Wheaton Corp.
Director, Investor Relations