Silver Wheaton Corp.
Largest Pure Silver Streaming Company
Message: Reports Q1 Earnings of US$15 Million and Op Cash Flows of US$23 Million
| May 11, 2009 |
| Silver Wheaton Reports First Quarter Earnings of US$15 Million and Operating Cash Flows of US$23 Million |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2009) - Silver Wheaton Corp. (TSX:SLW)(NYSE:SLW) is pleased to announce net earnings of US$15.1 million (US$0.06 per share) and operating cash flows of US$23.1 million (US$0.09 per share) for the first quarter of 2009. FIRST QUARTER HIGHLIGHTS - Net earnings of US$15.1 million (US$0.06 per share) from the sale of 3.2 million ounces of silver, compared to US$27.9 million (US$0.13 per share) from the sale of 2.8 million ounces of silver in 2008. - Operating cash flows of US$23.1 million (US$0.09 per share) compared with US$33.1 million (US$0.15 per share) in 2008. - Closed an equity financing, raising gross cash proceeds of Cdn$287.5 million and repaid all outstanding debt under the US$400 million revolving bank loan facility, which is available to fund future acquisitions of silver interests. - Entered into a definitive agreement with Silverstone Resources Corp. ("Silverstone") (TSX VENTURE:SST) pursuant to which Silver Wheaton will acquire by way of a plan of arrangement all of the outstanding common shares of Silverstone in exchange for 0.185 common shares of Silver Wheaton for each common share of Silverstone. Following completion of the transaction, Silver Wheaton will be held by approximately 93% of existing Silver Wheaton shareholders and 7% by existing Silverstone shareholders and the total number of Silver Wheaton common shares outstanding will be approximately 311 million. Silverstone shareholders will vote on the transaction on May 19, 2009 and the transaction is expected to close by the end of May. - Attributable proven and probable silver reserves increased by over 24%, or 83 million ounces, in 2008 to a record 429.7 million ounces. In addition, attributable measured and indicated silver resources increased by 33% to 213.5 million ounces, and attributable inferred silver resources decreased by 6% to 392.5 million ounces over the same period. "The first quarter represents a strong start to the year for Silver Wheaton, with key operations on pace to meet sales guidance for 2009," said Peter Barnes, President and Chief Executive Officer of Silver Wheaton. "In particular, we are pleased with the progress at Luismin, which demonstrated a second consecutive quarter of improved production levels. Also, an increase in our attributable proven and probable silver reserves by over 24% to a record 430 million ounces in 2008 further demonstrates the strength of our core operating assets." "With our friendly acquisition of Silverstone Resources expected to close in May 2009, we have already started to deliver on our promise of future accretive growth. This acquisition further strengthens an already robust operating cash flow profile which, when combined with an undrawn US$400 million revolving debt facility, solidly positions Silver Wheaton to pursue additional accretive acquisitions and to continue to enhance the best growth profile in the silver industry." This earnings release should be read in conjunction with the Silver Wheaton's 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. Conference Call Details A conference call will be held Monday, May 11, 2009 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: 1-866-226-1792 Dial from outside Canada or the US: 1-416-340-2216 Dial toll free from parts of Europe: 800-9559-6849 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: 2160343# Archived audio webcast: www.silverwheaton.com About Silver Wheaton Silver Wheaton is the largest silver streaming company in the world, with forecast annual silver sales of 15 to 17 million ounces in 2009, growing to approximately 30 million ounces annually by 2013. The proposed acquisition of Silverstone Resources Corp., anticipated to close in May of 2009, will further increase Silver Wheaton's current growth profile with silver streams from high-quality operating mines located in Canada, Mexico and Portugal. |
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