Exhibit 99.1
| FOR IMMEDIATE RELEASE | TSX: SLW |
| Aug 11, 2010 | NYSE: SLW |
SILVER WHEATON REPORTS RECORD SECOND QUARTER EARNINGS
Vancouver, British Columbia – Silver Wheaton Corp. (“Silver Wheaton” or the “Company”) (TSX, NYSE:SLW) is pleased to announce its unaudited results for the second quarter ended June 30, 2010.
SECOND QUARTER HIGHLIGHTS
| - | Net earnings increased by almost 200% to a record US$53.3 million (US$0.16 per share), compared with US$18.4 million (US$0.07 per share) in 2009. |
| - | Operating cash flows increased by more than 150% to US$67.0 million (US$0.20 per share)1, compared with US$26.5 million (US$0.09 per share)1in 2009. |
| - | Attributable silver equivalent production of 5.7 million ounces (5.3 million ounces of silver and 5,800 ounces of gold), representing an increase of 33% over the comparable period in 2009. |
| - | Record silver equivalent sales of 5.1 million ounces (4.6 million ounces of silver and 7,600 ounces of gold), representing an increase of 74% over the comparable period in 2009. |
| - | Total cash costs1of US$4.03 per silver equivalent ounce, compared with US$3.99 per ounce in 2009. |
| - | Cash operating margin1increased by 44% to US$14.45 per silver equivalent ounce, compared with US$10.05 per ounce in 2009. |
| - | Production at Goldcorp Inc.’s world-class gold-silver-lead-zinc Peñasquito mine continued to ramp up on or ahead of schedule, with the second sulphide processing line achieving mechanical completion ahead of its previously expected third quarter completion date. Peñasquito‘s Line 1 is regularly operating at a designed daily throughput of 50,000 tonnes, and Line 2 is now in the commissioning phase and ramping up to add another 50,000 tonnes per day of capacity. Upon completion of the high pressure grinding circuit, Peñasquito is anticipated to ramp up to full production capacity of 130,000 tonnes per day by early 2011. Annual production attributable to Silver Wheaton from the mine is expected to average approximately 7 million ounces of silver over the estimated 22 year mine life. |
| - | Barrick Gold Corp.’s world-class gold-silver Pascua-Lama project remains on track to enter production in the first quarter of 2013. Detailed engineering and procurement is nearing completion with many major items now purchased. Once in production, Pascua Lama is forecast to be one of the largest and lowest cost gold mines in the world with average annual production attributable to Silver Wheaton, in its first five years, of approximately 9 million ounces of silver. Pascua-Lama is a long-life asset with an expected mine life in excess of 25 years. |
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1Refer to discussion on non-GAAP measures at the end of this press release.
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| - | Acquired, by way of a private placement financing, 1.8 million units of Ventana Gold Corp. for total consideration of C$20.7 million (US$19.8 million). As part of this transaction, Silver Wheaton has been granted a right of first refusal over any silver streams relating to Ventana’s Colombian properties, including the highly prospectiveLa Bodega project, which has the potential to host a world-class gold deposit with significant silver by product credits. |
| - | Subsequent to quarter end, Goldcorp completed the sale of the San Dimas mine toPrimero Mining Corp. (“Primero”). In conjunction with the sale, Silver Wheatonagreed to amend its silver purchase agreement relating to the mine. The term of thesilver purchase agreement, which was set to expire in 2029, has been extended to lifeof mine. During the first four years following closing of the transaction, Primero willdeliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces ofpayable silver produced at San Dimas and 50% of any excess, plus Silver Wheatonwill receive an additional 1.5 million ounces of silver per annum to be delivered byGoldcorp. Beginning in the fifth year after closing, Primero will deliver to theCompany a per annum amount equal to the first 6 million ounces of payable silverproduced at San Dimas and 50% of any excess. Goldco rp will continue to guaranteethe delivery by Primero of all silver produced and owing to the Company until 2029,and a payment of US$0.50 per ounce for any shortfall below 215 million cumulativesilver ounces delivered to Silver Wheaton by the end of 2031. Primero has providedSilver Wheaton with a right of first refusal on any metal stream or similar transactionit enters into. |
“Another very solid quarter resulted in record sales and earnings,” said Peter Barnes, Chief Executive Officer of Silver Wheaton. “With Goldcorp’s Peñasquito mine in Mexico, the first of our cornerstone assets, continuing to ramp up silver production ahead of schedule, we look forward to an even stronger second half to the year and maintain our annual attributable silver equivalent production guidance of 23.5 million ounces. In the face of continued global economic uncertainty, the price of silver performed very well in the quarter, leading to record cash operating margins of US$14.45 per ounce, and clearly demonstrating the advantages of Silver Wheaton’s business model of low fixed operating costs.”
“Two transactions, both having potential to further increase Silver Wheaton’s industry leading production growth profile, were also completed in the quarter. First, in connection with Goldcorp’s sale of its San Dimas mine to Primero Mining, an emerging mid-tier gold producer, Silver Wheaton agreed to amend its silver purchase agreement to the benefit of both parties. The final agreement provides Silver Wheaton with a Goldcorp guarantee, extends the agreement from a fixed term to life-of-mine and, most importantly, incentivizes Primero Mining to increase silver production at this high-quality, low-cost, mine.”
“Second, Silver Wheaton acquired a right of first refusal over any silver streams relating to Ventana Gold Corp.’s Colombian properties, including its flagship high-grade gold-silver La Bodega project, one of the most exciting gold discoveries in the last decade. As Ventana continues to advance this potential world-class project closer to production and evaluates project financing options, we anticipate working towards completing a silver streaming agreement.”
This earnings release should be read in conjunction with Silver Wheaton’s unaudited MD&A and Financial Statements, which are available on the Company’s website at www.silverwheaton.com and have been posted on SEDAR at www.sedar.com.
A conference call will be held Thursday, August 12, 2010, starting 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- 888-231-8191 |
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| Dial from outside Canada or the US: | 1-647-427-7450 |
| Pass code: | 80637046 |
| 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: | 1-800-642-1687 |
| Dial from outside Canada or the US: | 1-416-849-0833 |
| Pass code: | 80637046 |
| Archived audio webcast: | www.silverwheaton.com |
About Silver Wheaton
Silver Wheaton is the largest silver streaming company in the world. Forecast 2010 production, based upon its current agreements, is 22.2 million ounces of silver and 20,000 ounces of gold, for total production of 23.5 million silver equivalent ounces. By 2013, annual production is anticipated to increase significantly to approximately 38 million ounces of silver and 59,000 ounces of gold, for total production of over 40 million silver equivalent ounces. This growth is driven by the Company’s portfolio of world-class assets, including silver streams on Goldcorp’s Peñasquito mine and Barrick’s Pascua-Lama project.
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CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of silver and gold, 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”, “a nticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements 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: fluctuations in the price of silver and gold; the absence of control over mining operations from which Silver Wheaton purchases silver or gold and risks related to these mining operations including risks related to fluctuations in the price of the primary commodities mined at such operations, actual results of mining and exploration activities, economic and political risks of the jurisdictions in which the mining operations are located and changes in project parameters as plans continue to be refined; and differences in the interpretation or application of tax laws and regulations; as well as those factors discussed in the section entitled “Description of the Business - Risk Factors” in Silver Wheaton's Annual Information Form available on SEDAR at www.sedar.com and in Silver Wheaton's Form 40-F on file with the U.S. Securities and Exchange Commission in Washington, D.C. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the mining operations from which Silver Wheaton purchases silver or gold, no material adverse change in the market price of commodities, that the mining operations will operate and the mining projects will be completed in accordance with their public statements and achieve their stated production outcomes, and such other assumptions and factors as set out he rein. 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 forward-looking statements will prove to be accurate. Accordingly, readers should not place undue reliance on forward-looking statements. Silver Wheaton does not undertake to update any forward-looking statements that are included or incorporated by reference herein, except in accordance with applicable securities laws.
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Consolidated Statement of Operations (unaudited)
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| (US dollars and shares in thousands, except per share amounts - unaudited) | 2010 | 2009 | 2010 | 2009 | ||||||||
| Sales | $ | 95,004 | $ | 41,403 | $ | 180,942 | $ | 78,975 | ||||
| Cost of sales | 20,700 | 11,764 | 40,868 | 24,304 | ||||||||
| Depletion | 15,360 | 6,419 | 28,911 | 13,006 | ||||||||
| 36,060 | 18,183 | 69,779 | 37,310 | |||||||||
| Earnings from operations | 58,944 | 23,220 | 111,163 | 41,665 | ||||||||
| Expenses and other income | ||||||||||||
General and administrative1 | 6,118 | 4,433 | 13,313 | 9,011 | ||||||||
Gain on mark-to-market of warrants held | (397 | ) | (30 | ) | (233 | ) | (33 | ) | ||||
Other | (35 | ) | 379 | 196 | (862 | ) | ||||||
| 5,686 | 4,782 | 13,276 | 8,116 | |||||||||
| Net earnings | 53,258 | 18,438 | 97,887 | 33,549 | ||||||||
| Basic earnings per share | $ | 0.16 | $ | 0.07 | $ | 0.29 | $ | 0.12 | ||||
| Diluted earnings per share | $ | 0.15 | $ | 0.06 | $ | 0.28 | $ | 0.12 | ||||
Weighted average number of shares outstanding | ||||||||||||
Basic | 342,898 | 297,973 | 342,618 | 284,205 | ||||||||
Diluted | 348,441 | 301,235 | 347,492 | 286,976 | ||||||||
1) Stock based compensation (a non-cash item) included in general and administrative | $ | 2,017 | $ | 830 | $ | 5,125 | $ | 2,689 | ||||
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Consolidated Balance Sheets (unaudited)
| June 30 | December 31 | |||||
| (US dollars in thousands - unaudited) | 2010 | 2009 | ||||
| Assets | ||||||
| Current | ||||||
Cash and cash equivalents | $ | 322,896 | $ | 227,566 | ||
Accounts receivable | 7,912 | 4,881 | ||||
Other | 1,971 | 1,027 | ||||
| 332,779 | 233,474 | |||||
| Long-term investments | 97,133 | 73,747 | ||||
| Silver and gold interests | 1,948,208 | 1,928,476 | ||||
| Other | 1,352 | 1,527 | ||||
| $ | 2,379,472 | $ | 2,237,224 | |||
| Liabilities | ||||||
| Current | ||||||
Accounts payable | $ | 1,760 | $ | 5,397 | ||
Accrued liabilities | 4,270 | 4,578 | ||||
Current portion of bank debt | 28,560 | 28,560 | ||||
Current portion of silver interest payments | 158,326 | 130,788 | ||||
| 192,916 | 169,323 | |||||
| Long-term portion of bank debt | 92,900 | 107,180 | ||||
| Long-term portion of silver interest payments | 244,829 | 236,796 | ||||
| 530,645 | 513,299 | |||||
| Shareholders' Equity | ||||||
| Issued capital and contributed surplus | 1,357,623 | 1,333,191 | ||||
| Retained earnings | 441,721 | 343,834 | ||||
| Accumulated other comprehensive income | 49,483 | 46,900 | ||||
| 491,204 | 390,734 | |||||
| 1,848,827 | 1,723,925 | |||||
| $ | 2,379,472 | $ | 2,237,224 |
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Consolidated Statement of Cash Flows (unaudited)
| Three Months Ended June 30 | Six Months Ended June 30 | |||||||||||
| (US dollars in thousands - unaudited) | 2010 | 2009 | 2010 | 2009 | ||||||||
| Operating Activities | ||||||||||||
| Net earnings | $ | 53,258 | $ | 18,438 | $ | 97,887 | $ | 33,549 | ||||
| Items not affecting cash | ||||||||||||
Depreciation and depletion | 15,426 | 6,482 | 29,042 | 13,130 | ||||||||
Stock based compensation | 2,017 | 830 | 5,125 | 2,689 | ||||||||
Gain on mark-to-market of warrants held | (397 | ) | (30 | ) | (233 | ) | (33 | ) | ||||
Other | 244 | (325 | ) | 372 | 190 | |||||||
| Change in non-cash operating working capital | (3,558 | ) | 1,058 | (7,603 | ) | 48 | ||||||
| Cash generated by operating activities | 66,990 | 26,453 | 124,590 | 49,573 | ||||||||
| Financing Activities | ||||||||||||
| Bank debt repaid | (7,140 | ) | (7,140 | ) | (14,280 | ) | (227,780 | ) | ||||
| Shares issued | - | - | - | 230,424 | ||||||||
| Share issue costs | - | (427 | ) | (85 | ) | (9,975 | ) | |||||
| Share purchase warrants exercised | 839 | 77 | 1,006 | 163 | ||||||||
| Share purchase options exercised | 15,008 | 1,502 | 18,302 | 1,589 | ||||||||
| Cash generated by (applied to) financing activities | 8,707 | (5,988 | ) | 4,943 | (5,579 | ) | ||||||
| Investing Activities | ||||||||||||
| Silver and gold interests | (13,194 | ) | (1,276 | ) | (13,711 | ) | (4,647 | ) | ||||
Acquisition of Silverstone Resources Corp., net of cash acquired | - | 2,668 | (201 | ) | 2,668 | |||||||
| Long-term investments | (19,754 | ) | - | (20,889 | ) | - | ||||||
| Other | 417 | (72 | ) | 406 | 16 | |||||||
| Cash (applied to) generated by investing activities | (32,531 | ) | 1,320 | (34,395 | ) | (1,963 | ) | |||||
Effect of exchange rate changes on cash and cashequivalents | 72 | 61 | 192 | (551 | ) | |||||||
| Increase in cash and cash equivalents | 43,238 | 21,846 | 95,330 | 41,480 | ||||||||
| Cash and cash equivalents, beginning of period | 279,658 | 26,744 | 227,566 | 7,110 | ||||||||
| Cash and cash equivalents, end of period | $ | 322,896 | $ | 48,590 | $ | 322,896 | $ | 48,590 | ||||
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Results of Operations (unaudited)
Three Months Ended June 30, 2010
| Ounces produced3 | Ounces sold | Sales (US$'s) | Average realized price (US$'s per ounce) | Total cash cost (US$'s per ounce)4 | Total depletion (US$'s per ounce)4 | Net earnings (loss) (US$'s) | Cash flow from (used in) operations (US$'s) | |||||||||||||||||
| Silver | ||||||||||||||||||||||||
San Dimas | 1,110 | 1,076 | $ | 19,999 | $ | 18.58 | $ | 4.04 | $ | 0.79 | $ | 14,804 | $ | 15,651 | ||||||||||
Zinkgruvan | 478 | 313 | 5,727 | 18.29 | 4.04 | 1.72 | 3,924 | 4,352 | ||||||||||||||||
Yauliyacu | 692 | 517 | 9,688 | 18.74 | 3.98 | 3.47 | 5,835 | 7,610 | ||||||||||||||||
Peñasquito | 800 | 656 | 12,111 | 18.46 | 3.90 | 2.54 | 7,885 | 9,553 | ||||||||||||||||
Minto | 49 | 46 | 860 | 18.63 | 3.90 | 3.69 | 510 | 819 | ||||||||||||||||
Cozamin | 286 | 412 | 7,588 | 18.44 | 4.04 | 4.62 | 4,022 | 5,620 | ||||||||||||||||
Barrick5 | 697 | 727 | 13,242 | 18.20 | 3.90 | 3.55 | 7,825 | 9,205 | ||||||||||||||||
Other6 | 1,159 | 897 | 16,544 | 18.45 | 3.92 | 4.53 | 8,965 | 12,844 | ||||||||||||||||
| 5,271 | 4,644 | $ | 85,759 | $ | 18.46 | $ | 3.97 | $ | 2.92 | $ | 53,770 | $ | 65,654 | |||||||||||
| Gold | ||||||||||||||||||||||||
Minto | 5,802 | 7,584 | $ | 9,245 | $ | 1,219 | $ | 300 | $ | 237 | $ | 5,174 | $ | 7,633 | ||||||||||
| Silver Equivalent7 | 5,651 | 5,140 | $ | 95,004 | $ | 18.48 | $ | 4.03 | $ | 2.99 | $ | 58,944 | $ | 73,287 | ||||||||||
| Corporate | (5,686 | ) | (6,297 | ) | ||||||||||||||||||||
| 5,651 | 5,140 | $ | 95,004 | $ | 18.48 | $ | 4.03 | $ | 2.99 | $ | 53,258 | $ | 66,990 |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Certain production figures are based on management estimates. |
| 4) | Refer to discussion on non-GAAP measures at the end of this press release. |
| 5) | Comprised of the Lagunas Norte, Pierina and Veladero mines. |
| 6) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 7) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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Three Months Ended June 30, 2009
| Ounces produced | Ounces sold | Sales (US$'s) | Average realized price (US$'s per ounce) | Total cash cost (US$'s per ounce)3 | Total depletion (US$'s per ounce)3 | Net earnings (loss) (US$'s) | Cash flow from (used in) operations (US$'s) | |||||||||||||||||
| Silver | ||||||||||||||||||||||||
San Dimas | 1,264 | 1,254 | $ | 17,577 | $ | 14.02 | $ | 4.02 | $ | 0.65 | $ | 11,721 | $ | 12,538 | ||||||||||
Zinkgruvan | 480 | 469 | 6,746 | 14.38 | 4.02 | 1.78 | 4,024 | 5,159 | ||||||||||||||||
Yauliyacu | 870 | 546 | 7,593 | 13.91 | 3.94 | 3.47 | 3,546 | 5,442 | ||||||||||||||||
Peñasquito | 162 | 130 | 1,853 | 14.28 | 3.90 | 2.35 | 1,041 | 1,347 | ||||||||||||||||
Minto | 37 | 5 | (1 | )4 | (7) | 4 | 13.11 | 3.90 | 4.42 | (3 | ) | 15 | ||||||||||||
Cozamin | 262 | 5 | 213 | 2,935 | 13.78 | 4.00 | 4.66 | 1,090 | 3,388 | |||||||||||||||
Other6 | 750 | 5 | 327 | 4,571 | 13.92 | 3.92 | 4.67 | 1,751 | 3,656 | |||||||||||||||
| 3,825 | 2,938 | $ | 41,268 | $ | 14.04 | $ | 3.99 | $ | 2.17 | $ | 23,170 | $ | 31,545 | |||||||||||
| Gold | ||||||||||||||||||||||||
Minto | 6,823 | 5 | 145 | 4 | $ | 135 | 4 | $ | 925 | $ | 300 | $ | 284 | $ | 50 | $ | 192 | |||||||
| Silver Equivalent7 | 4,253 | 2,950 | $ | 41,403 | $ | 14.04 | $ | 3.99 | $ | 2.18 | $ | 23,220 | $ | 31,737 | ||||||||||
| Corporate | (4,782 | ) | (5,284 | ) | ||||||||||||||||||||
| 4,253 | 2,950 | $ | 41,403 | $ | 14.04 | $ | 3.99 | $ | 2.18 | $ | 18,438 | $ | 26,453 |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Refer to discussion on non-GAAP measures at the end of this press release. |
| 4) | No concentrate shipments were made during the period. Amounts reflected above represent provisional invoice adjustments. |
| 5) | Production figures for Silverstone assets acquired have been pro rated based on the number of days in the quarter following the Silverstone acquisition. |
| 6) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 7) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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Six Months Ended June 30, 2010
| Ounces produced3 | Ounces sold | Sales (US$'s) | Average realized price (US$'s per ounce) | Total cash cost (US$'s per ounce)4 | Total depletion (US$'s per ounce)4 | Net earnings (loss) (US$'s) | Cash flow from (used in) operations (US$'s) | |||||||||||||||||
| Silver | ||||||||||||||||||||||||
San Dimas | 2,316 | 2,282 | $ | 40,850 | $ | 17.90 | $ | 4.04 | $ | 0.79 | $ | 29,837 | $ | 31,631 | ||||||||||
Zinkgruvan | 865 | 811 | 14,284 | 17.61 | 4.04 | 1.72 | 9,615 | 10,056 | ||||||||||||||||
Yauliyacu | 1,429 | 1,098 | 19,824 | 18.05 | 3.98 | 3.47 | 11,645 | 15,460 | ||||||||||||||||
Peñasquito | 1,320 | 1,080 | 19,486 | 18.05 | 3.90 | 2.54 | 12,528 | 15,275 | ||||||||||||||||
Minto | 111 | 93 | 1,649 | 17.61 | 3.90 | 3.69 | 939 | 1,227 | ||||||||||||||||
Cozamin | 687 | 693 | 12,401 | 17.91 | 4.03 | 4.62 | 6,413 | 9,656 | ||||||||||||||||
Barrick5 | 1,477 | 1,510 | 26,740 | 17.71 | 3.90 | 3.52 | 15,530 | 17,615 | ||||||||||||||||
Other6 | 2,012 | 1,504 | 26,987 | 17.95 | 3.92 | 4.32 | 14,598 | 21,417 | ||||||||||||||||
| 10,217 | 9,071 | $ | 162,221 | $ | 17.88 | $ | 3.97 | $ | 2.77 | $ | 101,105 | $ | 122,337 | |||||||||||
| Gold | ||||||||||||||||||||||||
Minto | 13,358 | 16,194 | $ | 18,721 | $ | 1,156 | $ | 300 | $ | 235 | $ | 10,058 | $ | 13,386 | ||||||||||
| Silver Equivalent7 | 11,097 | 10,138 | $ | 180,942 | $ | 17.85 | $ | 4.03 | $ | 2.85 | $ | 111,163 | $ | 135,723 | ||||||||||
| Corporate | (13,276 | ) | (11,133 | ) | ||||||||||||||||||||
| 11,097 | 10,138 | $ | 180,942 | $ | 17.85 | $ | 4.03 | $ | 2.85 | $ | 97,887 | $ | 124,590 |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Certain production figures are based on management estimates. |
| 4) | Refer to discussion on non-GAAP measures at the end of this press release. |
| 5) | Comprised of the Lagunas Norte, Pierina and Veladero mines. |
| 6) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 7) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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Six Months Ended June 30, 2009
| Ounces produced | Ounces sold | Sales (US$'s) | Average realized price (US$'s per ounce) | Total cash cost (US$'s per ounce)3 | Total depletion (US$'s per ounce)3 | Net earnings (loss) (US$'s) | Cash flow from (used in) operation (US$'s) | |||||||||||||||||
| Silver | ||||||||||||||||||||||||
San Dimas | 2,587 | 2,606 | $ | 34,104 | $ | 13.09 | $ | 4.02 | $ | 0.74 | $ | 21,697 | $ | 23,628 | ||||||||||
Zinkgruvan | 941 | 920 | 12,162 | 13.22 | 4.02 | 1.78 | 6,825 | 8,379 | ||||||||||||||||
Yauliyacu | 1,609 | 1,289 | 16,282 | 12.63 | 3.92 | 3.47 | 6,758 | 11,233 | ||||||||||||||||
Peñasquito | 322 | 265 | 3,414 | 12.89 | 3.90 | 2.35 | 1,758 | 2,381 | ||||||||||||||||
Minto | 37 | 5 | (1 | )4 | (7 | )4 | 13.11 | 3.90 | 4.42 | (3 | ) | 15 | ||||||||||||
Cozamin | 262 | 5 | 213 | 2,935 | 13.78 | 4.00 | 4.66 | 1,090 | 3,388 | |||||||||||||||
Other6 | 1,309 | 5 | 804 | 9,950 | 12.36 | 3.92 | 4.10 | 3,490 | 7,487 | |||||||||||||||
| 7,067 | 6,096 | $ | 78,840 | $ | 12.93 | $ | 3.98 | $ | 2.13 | $ | 41,615 | $ | 56,511 | |||||||||||
| Gold | ||||||||||||||||||||||||
Minto | 6,823 | 5 | 145 | 4 | $ | 135 | 4 | $ | 925 | $ | 300 | $ | 284 | $ | 50 | $ | 192 | |||||||
| Silver Equivalent7 | 7,495 | 6,108 | $ | 78,975 | $ | 12.93 | $ | 3.98 | $ | 2.13 | $ | 41,665 | $ | 56,703 | ||||||||||
| Corporate | (8,116 | ) | (7,130 | ) | ||||||||||||||||||||
| 7,495 | 6,108 | $ | 78,975 | $ | 12.93 | $ | 3.98 | $ | 2.13 | $ | 33,549 | $ | 49,573 |
| 1) | All figures in thousands except gold ounces produced and sold and per ounce amounts. |
| 2) | Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. |
| 3) | Refer to discussion on non-GAAP measures at the end of this press release. |
| 4) | No concentrate shipments were made during the period. Amounts reflected above represent provisional invoice adjustments. |
| 5) | Production figures for Silverstone assets acquired have been pro rated based on the number of days in the quarter following the Silverstone acquisition. |
| 6) | Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni and Campo Morado mines. |
| 7) | Gold ounces produced and sold are converted to a silver equivalent basis on the ratio of the average silver price received to the average gold price received during the period. |
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Non-GAAP Measures
Silver Wheaton has included, throughout this document, certain non-GAAP performance measures, including total cash costs of silver and gold on a sales basis, as well as operating cash flows per share and cash operating margin. These non-GAAP measures do not have any standardized meaning prescribed by GAAP, nor are they necessarily comparable with similar measures presented by other companies. Cash costs are presented as they represent an industry standard method of comparing certain costs on a per unit basis. Cash operating margin is defined as the realized selling price less total cash cost per silver equivalent ounce. The Company believes that certain investors use this information to evaluate the Company’s performance. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. During the three months ended June 30, 2010, the Company’s total cash co sts, which were equivalent to the Company’s cost of sales in accordance with GAAP, were US$3.97 per ounce of silver and US$300 per ounce of gold (three months ended June 30, 2009 – US$3.97 per ounce of silver and US$300 per ounce of gold).
For further information, please contact:
| Brad Kopp |
| Vice President, Investor Relations |
| Silver Wheaton Corp. |
| Tel: 1-800-380-8687 |
| Email: info@silverwheaton.com |
| Website: www.silverwheaton.com |