Vancouver, British Columbia - Silver
Wheaton Corp. (TSX, NYSE:SLW) is pleased to announce third quarter net earnings of US$19.2 million
(US$0.09 per share) and operating cash flows of US$27.1 million (US$0.12 per
share).
- Net earnings of US$19.2 million ($0.09 per share) from the sale
of 3.1 million ounces of silver, compared with US$22.5 million ($0.10
per share) from the sale of 3.5 million ounces of silver in 2006.
- Operating cash flows of US$27.1 million (US$0.12 per share),
compared with US$28.3 million (US$0.13 per share) in 2006.
- Cash and cash equivalents at September 30, 2007 of US$7.0 million
(December 31, 2006 - US$60.0 million).
- On July 24, 2007, the Company entered into a transaction to
acquire 25% of the life of mine silver production from Goldcorp's
Pe�asquito project located in Mexico, for an upfront cash payment of
US$485 million. In addition, a per ounce cash payment of the lesser
of US$3.90 and the prevailing market price is due (subject to an
inflationary adjustment commencing in 2011), for silver delivered under
the contract.
- On July 24, 2007, the
Company entered into a credit agreement with the Bank of Nova Scotia and
BMO Capital Markets, as co-lead arrangers and administrative agents, to
borrow US$200 million under a non revolving term loan (the "Term
Loan") and up to US$300 million under a revolving term loan (the
"Revolving Loan"). The Revolving Loan is for a period of 7
years and the Term Loan is to be repaid in equal installments over a
period of 7 years, however, prepayments are allowed at any time. In
order to fund the Pe�asquito transaction the Term Loan was drawn in full
and the Revolving Loan was drawn in the amount of US$246 million.
"We are
pleased that mine production levels showed a 10% improvement over the second
quarter," said Peter Barnes, President and Chief Executive Officer of Silver
Wheaton, "although most of this improvement will not be reflected in our
operating results until the fourth quarter, due to timing of product
shipments."
Conference
Call
A conference call will be held Thursday, November 1, 2007 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
|
1-866-540-8136
|
Dial from
outside Canada or the US
|
1-416-340-8010
|
Live
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
|
3238546#
|
Archived
webcast
|
www.silverwheaton.com
|
Silver
Wheaton is the largest public mining company with 100% of its operating
revenue from silver production. The Company expects to have silver
sales of approximately 13 million ounces for the year ended December 31,
2007, increasing to 28 million ounces by 2012. Silver Wheaton is
unhedged and well positioned for further growth.
To view the full
second quarter 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, 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.
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
|