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Thursday
Mar042010

2009 was a transformational year for Silver Wheaton Corporation

slw logo.JPG

"2009 was a transformational year for Silver Wheaton (SLW)," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With the completion of some of our best acquisitions to date, we successfully raised our industry-leading production growth profile to a new level and laid the groundwork for continued strong organic growth long into the future.

We have listed the highlights for 12 months for your information, for the last quarter please follow the link below. All in all we think the future looks bright for SLW but the market will digest this data and its thoughts will be reflected in the stock price.


2009 HIGHLIGHTS (12 Months)

- Net earnings of US$117.9 million (US$0.39 per share) compared to US
$17.3 million (US$0.07 per share) in 2008, which included a US
$64.0 million non-cash write down of the Company's long-term
investments recorded during the fourth quarter of 2008.

- Operating cash flows of US$165.9 million (US$0.54 per share)(1)
compared to US$111.1 million (US$0.48 per share)(1) in 2008.

- Attributable silver equivalent production of 17.4 million ounces
(16.2 million ounces of silver and 19,300 ounces of gold),
representing an increase of 46% compared to 2008.

- Silver equivalent sales of 15.8 million ounces (14.7 million ounces
of silver and 17,000 ounces of gold), representing an increase of 42%
compared to 2008. Total cash costs were US$4.03(1) per silver
equivalent ounce (2008 - US$3.94 per silver ounce).

- Acquired Silverstone Resources Corp. ("Silverstone") through the
issuance of 23,434,332 common shares and 1,367,364 share purchase
options. The transaction is expected to increase average annual
production by approximately 4 million silver equivalent ounces.

- Acquired an amount equal to 25% of the life of mine silver production
from Barrick Gold Corporation's ("Barrick") Pascua-Lama project, as
well as 100% of the silver production from its Lagunas Norte, Pierina
and Veladero mines until the end of 2013. The acquisition is forecast
to increase average annual silver production by approximately
2.4 million ounces until Pascua-Lama commences production in 2013, at
which time average annual silver production is forecast to increase
by approximately 9 million ounces for the first five years of Pascua-
Lama's 25 year mine life.

- Completed two equity financings raising gross proceeds of
CDN$287.5 million and US$287.5 million respectively, through the
issuance of 61,841,250 shares. The proceeds were primarily used to
repay all outstanding debt under the US$400 million revolving bank
loan facility and to fund a portion of the Barrick silver stream
acquisition, with the remaining balance being available to fund
future silver stream acquisitions.

- Subsequent to year-end, acquired an amount equal to 100% of the life
of mine silver and gold production from Augusta Resource
Corporation's ("Augusta") Rosemont Copper project ("Rosemont") in the
United States. Rosemont is forecast to increase Silver Wheaton's
long-term annual production by approximately 2.4 million ounces of
silver, plus any gold production, estimated by Augusta to average up
to 15,000 ounces of gold per annum, commencing in 2012.

- Subsequent to year-end, converted the debenture with Pan American
Silver Corp. ("Pan American") into an agreement to acquire an amount
equal to 12.5% of the life of mine silver production from the Loma de
La Plata zone of the Navidad project located in Argentina. Navidad is
forecast to increase Silver Wheaton's long-term annual silver
production by approximately 2 million ounces.

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

"2009 was a transformational year for Silver Wheaton," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "With the completion of some of our best acquisitions to date, we successfully raised our industry-leading production growth profile to a new level and laid the groundwork for continued strong organic growth long into the future. Our production of 17.4 million silver equivalent ounces was a record for the Company and represented a 46% increase from the prior year. Additionally, we closed the year with our second consecutive record-setting quarter, leading to record annual sales, earnings and cash flows. As the year progressed, Silver Wheaton clearly solidified its leadership position as the largest and fastest growing of all metals streaming and royalty companies in the world."

"This year promises to be equally exciting with Penasquito, our cornerstone growth asset for the next several years, starting to significantly ramp-up silver production.

Furthermore, as a result of the Barrick and Silverstone acquisitions which closed part way through 2009, our shareholders are now poised to benefit from a full year of production from six high-quality mines. Within our existing silver stream portfolio, we are forecasting silver equivalent production of 23.5 million ounces in 2010, more than a 35% increase compared to 2009."

"Already, we have continued on our path of accretive growth with the addition of two new silver streams in early 2010. We acquired an amount equal to 100% of the life of mine silver and gold production from the Rosemont project in Arizona, and converted a debenture allowing us to acquire an amount equal to 12.5% of the life of mine silver production from a portion of the Navidad project in Argentina. These are both very high-quality assets and the Navidad transaction now gives us a stake in three of the top five silver deposits in the world. With cash on hand of over US$227 million at the end of 2009, a fully undrawn US$400 million revolving credit facility and strong cash flows from operations, we are exceptionally well-positioned to pursue additional accretive acquisitions."

2010 and Long-Term Silver Equivalent Production Forecast

The Company estimates, based upon its current agreements, to have annual attributable production in 2010 of 22.2 million ounces of silver and 20,000 ounces of gold, for total silver equivalent production of 23.5 million ounces. This represents an increase of more than 35% compared to 2009. Total cash costs are anticipated to be approximately US$4 per silver equivalent ounce. By 2013, annual production is anticipated to increase to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. Attributable mine-by-mine actual 2009 production and forecast 2010 production is as follows:

To read the news release in full please click here.



Silver Wheaton Corporation trades on the New York Stock Exchange and the Toronto Stock Exchange under the symbol of SLW and is currently trading at $15.07.

All the best.

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