SILVER WHEATON REPORTS RECORD OPERATING AND FINANCIAL RESULTS IN 2010; PRODUCTION INCREASED 37% WITH OPERATING CASH FLOWS ALMOST DOUBLING

Mar 03, 2011, 17:00 ET from Silver Wheaton Corp.

TSX: SLW
NYSE: SLW

VANCOUVER, March 3 /PRNewswire-FirstCall/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX: SLW) (NYSE: SLW) is pleased to announce its unaudited results for the fourth quarter and the year ended December 31, 2010.

FOURTH QUARTER HIGHLIGHTS (3 Months)


The Company had record quarterly net earnings, operating cash flows, attributable production and sales, as follows:   

  • Net earnings more than doubled to US$123.0 million (US$0.35 per share) compared with US$50.8 million (US$0.15 per share) in 2009.
  • Operating cash flows increased 76% to US$124.7 million (US$0.36 per share)1 compared with US$71.0 million (US$0.21 per share)1 in 2009.
  • Attributable silver equivalent production of 6.3 million ounces (6.1 million ounces of silver and 4,100 ounces of gold), representing an increase of 10% over the comparable period in 2009.
  • Silver equivalent sales of 5.7 million ounces (5.5 million ounces of silver and 2,600 ounces of gold), representing an increase of 11% over the comparable period in 2009.
  • Total cash costs were US$4.021 per silver equivalent ounce, compared with US$4.041 per ounce in 2009.
  • Cash operating margin1 increased 64% compared to 2009, to a record US$22.42 per silver equivalent ounce, while average silver prices over the same period increased by 50%.
  • Acquired 3.0 million common shares of Bear Creek Mining Corporation for total consideration of C$19.1 million.  At December 31, 2010, Silver Wheaton owned 13.3 million common shares of Bear Creek representing approximately 14% of the outstanding shares on an undiluted basis.

2010 HIGHLIGHTS (12 Months)


The Company had record annual net earnings, operating cash flows, attributable production and sales, as follows:   

  • Net earnings more than doubled to US$290.1 million (US$0.84 per share) compared to US$117.9 million (US$0.39 per share) in 2009.
  • Operating cash flows increased 93% to US$319.8 million (US$0.93 per share)1 compared to US$165.9 million (US$0.54 per share)1 in 2009.
  • Attributable silver equivalent production of 23.9 million ounces (22.1 million ounces of silver and 28,800 ounces of gold), representing an increase of 37% compared to 2009.
  • Silver equivalent sales of 20.5 million ounces (18.9 million ounces of silver and 25,900 ounces of gold), representing an increase of 29% compared to 2009.
  • Total cash costs were US$4.041 per silver equivalent ounce, compared with US$4.031 per ounce in 2009.
  • Cash operating margin1 increased 50% compared to 2009, to a record US$16.63 per silver equivalent ounce, while average silver prices over the same period increased by 38%.
  • As at December 31, 2010, approximately 2.4 million payable silver equivalent ounces attributable to the Company have been produced at the various mines and will be recognized in future sales as they are delivered to the Company under the terms of their contracts.
  • Acquired an amount equal to 100% of the life of mine silver and gold production from Augusta Resource Corporation's Rosemont Copper project in the United States. Once production commences, 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. 
  • Converted the debenture with Pan American Silver Corp. 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 up to 2 million ounces.
  • Acquired 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 prospective La Bodega project, which has the potential to host a world-class gold deposit with significant silver by product credits.
  • Goldcorp completed the sale of the San Dimas mine to Primero Mining Corp.  In conjunction with the sale, Silver Wheaton amended its silver purchase agreement relating to the mine.  The term of the agreement, which was set to expire in 2029, was extended to the life of mine.  During the first four years following closing of the transaction, Primero will deliver to Silver Wheaton a per annum amount equal to the first 3.5 million ounces of payable silver produced at San Dimas and 50% of any excess, plus Silver Wheaton will receive an additional 1.5 million ounces of silver per annum to be delivered by Goldcorp.  Beginning in the fifth year after closing, Primero will deliver to the Company a per annum amount equal to the first 6 million ounces of payable silver produced at San Dimas and 50% of any excess. Primero has provided Silver Wheaton with a right of first refusal on any metal stream or similar transaction it enters into.
  • Goldcorp Inc. announced that its world-class gold-silver-lead-zinc Peñasquito mine achieved commercial production, on schedule, with peak throughput rates as high as 105,000 tonnes per day. The ramp up to full production capacity of 130,000 tonnes per day is anticipated by the end of the first quarter of 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 Corporation's world-class gold-silver Pascua-Lama project is forecast to commence production in the first half of 2013, with detailed engineering and procurement nearing completion and earthworks well underway. Once in production, Pascua-Lama is forecast to be one of the largest and lowest cost gold mines in the world with an expected mine life in excess of 25 years.  In its first five years of operation, Silver Wheaton's attributable silver production is expected to average 9 million ounces annually. 

_______________________

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

"2010 was a tremendously successful year, with the Company setting new records on all financial and operating metrics. In just six years, Silver Wheaton has grown its market capitalization to in excess of US$15 billion, and has more silver reserves than any silver company in the world," said Peter Barnes, Chief Executive Officer of Silver Wheaton. "We were especially pleased that the production ramp up at the first of our cornerstone assets, Goldcorp's world-class Peñasquito mine in Mexico, exceeded expectations and contributed to Silver Wheaton's peer-leading 37% annual production growth. This was particularly timely as silver prices climbed to 30 year highs which resulted in record quarterly and annual results."

"This momentum is expected to continue into 2011, with forecast production growth of another 15%, which will result in operating cash flows of over US$700 million at current metal prices. Production growth over the next five years is forecast at approximately 80%, which represents one of the strongest growth profiles in the precious metals industry and is driven by the continued ramp up at Peñasquito and the forecast 2013 production start at Barrick's world-class Pascua-Lama project."

"To supplement our growth in 2014 and beyond, important transactions were completed in 2010. These include a life-of-mine precious metals purchase agreement relating to the Rosemont project in Arizona and converting a debenture allowing us to acquire a portion of the life-of-mine silver production from the Loma de La Plata zone of the Navidad project in Argentina. Combined, these projects are forecast to increase our long-term silver equivalent production by up to 5 million ounces per annum, once in production. We also acquired a right of first refusal on all future silver streams from one of the most exciting gold discoveries in the last decade, the La Bodega project in Colombia, and amended the silver purchase agreement relating to the San Dimas mine in Mexico, which should result in lasting benefits to our shareholders, including the potential for increased silver production."

"With cash on hand of over US$428 million, a fully undrawn US$400 million revolving credit facility and strong cash flows from operations, we remain exceptionally well-positioned to continue growing our silver stream portfolio. Merger and acquisition activity in the mining industry is anticipated to remain robust in 2011, and Silver Wheaton continues to offer an attractive mainstream financing solution to assist companies in achieving their growth goals."

2011 and Five Year Silver Equivalent Production Forecast

The Company estimates, based upon its current agreements, to have 2011 attributable production of 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. This represents a 15% increase compared to 2010. Total cash costs in 2011 are anticipated to be approximately US$4 per silver equivalent ounce, unchanged from 2010. By 2015, based upon its current agreements, annual attributable production is anticipated to increase by 80% to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. Attributable mine-by-mine actual 2010 production and forecast 2011 production are as follows:

  Attributable Production
  2010 Actual2 2011 Forecast
 
Silver ounces produced (000's)
  Peñasquito 3,792 6,800
  San Dimas3 5,157 5,700
  Barrick4 2,617 3,600
  Yauliyacu 2,713 2,600
  Zinkgruvan 1,801 1,800
  Cozamin 1,403 1,700
  Other5 4,608 4,550
 
  22,091 26,750
     
Gold ounces produced (000's in silver equivalent)6    
  Minto 1,774 750
     
Silver equivalent ounces produced (000's) 23,865 27,500

1) Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions. 2) Certain production figures are based on management estimates. 3) Production includes Goldcorp's four year commitment to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. 4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests. 5) 2010 attributable production includes the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto and Campo Morado silver interests. 2011 forecast attributable production includes the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado and Aljustrel silver interests. 6) The Minto mine produced 28,795 oz of gold in 2010 and is forecast to produce approximately 15,000 oz of gold in 2011.

Webcast and Conference Call Details

A conference call will be held Friday, March 4, 2011, 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:             Dial from outside Canada or the US:             Pass code:                                                     Live audio webcast:                                       1-888-231-8191   1-647-427-7450 37642529 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:             Dial from outside Canada or the US:             Pass code:                                                      Archived audio webcast:                                1-800-642-1687 1-416-849-0833 37642529 www.silverwheaton.com

About Silver Wheaton

Silver Wheaton is the largest silver streaming company in the world. Based upon its current agreements, forecast 2011 attributable production is 27 to 28 million silver equivalent ounces, including 15,000 ounces of gold. By 2015, annual attributable production is anticipated to increase significantly to approximately 43 million silver equivalent ounces, including 35,000 ounces of gold. 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. 

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", "anticipates" 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 herein. 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.

Summarized Financial Results (unaudited)

    Years Ended December 31 
  2010 2009 2008
             
Silver equivalent production 1            
   Attributable silver ounces produced (000's)   22,091   16,263   11,915
   Attributable gold ounces produced   28,795   18,021  
   Attributable silver equivalent ounces produced (000's) 1   23,865   17,395   11,915
Silver equivalent sales 1            
   Silver ounces sold (000's)   18,878   14,744   11,137
   Gold ounces sold   25,884   17,132  
   Silver equivalent ounces sold (000's) 1   20,483   15,823   11,137
Average realized price ($'s per ounce)            
   Average realized silver price $ 20.75 $ 15.02 $ 14.97
   Average realized gold price $ 1,224.46 $ 1,041.92   n/a
   Average realized silver equivalent price $ 20.67 $ 15.13 $ 14.97
Average cash cost ($'s per ounce) 2            
   Average silver cash cost $ 3.97 $ 3.97 $ 3.94
   Average gold cash cost $ 300.00 $ 300.00   n/a
   Average silver equivalent cash cost $ 4.04 $ 4.03 $ 3.94
Total revenue ($000's) $ 423,353 $ 239,293 $ 166,719
Net earnings ($000's) $ 290,093 $ 117,924 $ 17,252
Earnings per share            
   Basic $ 0.84 $ 0.39 $ 0.07
   Diluted $ 0.83 $ 0.38 $ 0.07
Cash flow from operations ($000's) $ 319,761 $ 165,932 $ 111,142
Total assets ($000's) $ 2,635,069 $ 2,237,224 $ 1,270,646
Total liabilities ($000's) $ 373,120 $ 513,299 $ 382,621
Total shareholders' equity ($000's) $ 2,261,949 $ 1,723,925 $ 888,025

1)  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.
2)  Refer to discussion on non-GAAP measures.

Consolidated Statement of Operations (unaudited)

      Years Ended December 31  
(US dollars and shares in thousands, except per share amounts)   2010 2009   2008
Sales   $ 423,353 $ 239,293 $ 166,719
                 
Cost of sales     82,749   63,715   43,890
Depletion     57,571   41,156   19,491
      140,320   104,871   63,381
Earnings from operations     283,033   134,422   103,338
                 
Expenses and other income                
   General and administrative 1     24,669   17,288   17,476
   (Gain) loss on long-term investments held     (10,719)   (335)   65,066
   Other (income) expense     (7,410)   (455)   631
       6,540   16,498   83,173
                   
Earnings before tax     276,493   117,924   20,165
Future income tax recovery (expense)     13,600     (2,913)
Net earnings   $ 290,093 $ 117,924 $ 17,252
                   
Basic earnings per share   $ 0.84 $ 0.39 $ 0.07
Diluted earnings per share   $ 0.83 $ 0.38 $ 0.07
Weighted average number of shares outstanding              
   Basic     344,288   306,040   232,855
   Diluted     350,429   309,500   249,244
1) Stock based compensation (a non-cash item) included in general and administrative   $ 7,732 $ 4,010 $ 5,530
               

Consolidated Balance Sheets (unaudited)

              December 31 December 31
(US dollars in thousands) 2010 2009
                       
Assets                
Current                
  Cash and cash equivalents     $ 428,636 $ 227,566
  Accounts receivable         7,088   4,881
  Other       727   1,027
Total current assets             436,451   233,474
                     
Long-term investments       284,448   73,747
Silver and gold interests       1,912,877   1,928,476
Other           1,293   1,527
Total assets           $ 2,635,069 $ 2,237,224
                       
Liabilities                
Current                
  Accounts payable   $ 1,148 $ 5,397
  Accrued liabilities       8,381   4,578
  Current portion of bank debt       28,560   28,560
  Current portion of silver interest payments     133,243   130,788
Total current liabilities             171,332   169,323
               
Future income tax liability           822  
Long-term portion of bank debt     78,620   107,180
Long-term portion of silver interest payments     122,346   236,796
Total liabilities             373,120   513,299
Shareholders' Equity                
Issued capital and contributed surplus     1,449,351   1,333,191
Retained earnings         633,927   343,834
Accumulated other comprehensive income     178,671   46,900
Total retained earnings and accumulated other comprehensive income     812,598   390,734
Total shareholders' equity           2,261,949   1,723,925
Total liabilities and shareholders' equity   $ 2,635,069 $ 2,237,224
           

Consolidated Statement of Cash Flows (unaudited)

      Years Ended December 31
(US dollars in thousands)   2010 2009 2008
                   
Operating Activities              
Net earnings   $ 290,093 $ 117,924 $ 17,252
Items not affecting cash              
    Depreciation and depletion     57,839   41,413   19,491
    Stock based compensation     7,732   4,010   5,530
    (Gain) loss on long-term investments held     (10,719)   (335)   65,066
    Gain on disposal of silver purchase agreement     (5,911)    
    Future income tax (recovery) expense     (13,600)     2,913
    Other         (3,664)   967   398
Change in non-cash operating working capital     (2,009)   1,953   492
Cash generated by operating activities   319,761   165,932   111,142
                 
Financing Activities              
Bank debt drawn down       140,200   198,500
Bank debt repaid     (28,560)   (382,260)   (240,560)
Shares issued       517,955  
Share issue costs     (85)   (22,117)   (1,939)
Share purchase warrants exercised     76,093   13,779   115,796
Share purchase options exercised   32,335   8,776   2,667
Cash generated by financing activities   79,783   276,333   74,464
                 
Investing Activities              
Silver and gold interests     (172,400)   (220,644)   (184,532)
Acquisition of Silverstone Resources Corp., net of cash acquired     (201)   2,281  
Long-term investments     (54,107)    
Proceeds on disposal of silver purchase agreement     25,000    
Other     383   (2,849)   (4,348)
Cash applied to investing activities   (201,325)   (221,212)   (188,880)
Effect of exchange rate changes on cash and cash equivalents   2,851   (597)   419
Increase (decrease) in cash and cash equivalents   201,070   220,456   (2,855)
Cash and cash equivalents, beginning of year   227,566   7,110   9,965
Cash and cash equivalents, end of year $ 428,636 $ 227,566 $ 7,110
             

Summary of Ounces Produced and Sold (unaudited)

  2010   2009
(in thousands) Q4   Q3 Q2 Q1 Q4 Q3 Q2 Q1
                   
Silver ounces produced                  
 San Dimas 3 1,586   1,255 1,110 1,206 1,275 1,232 1,264 1,323
 Zinkgruvan 428   508 478 387 505 415 480 461
 Yauliyacu 651   633 692 737 783 750 870 739
 Peñasquito 1,260   1,109 866 557 441 165 162 160
 Cozamin 335   381 286 401 388 366 262
 Barrick 4 458   682 697 780 756 223
 Other 5 1,352   1,069 1,240 947 1,068 829 787 559
  6,070   5,637 5,369 5,015 5,216 3,980 3,825 3,242
Silver equivalent ounces of gold produced 6                  
 Minto 205   402 522 645 471 233 428
Silver equivalent ounces produced 6,275   6,039 5,891 5,660 5,687 4,213 4,253 3,242
                   
Silver ounces sold                  
 San Dimas 3 1,438   1,274 1,076 1,206 1,264 1,234 1,254 1,352
 Zinkgruvan 421   635 313 498 357 433 469 451
 Yauliyacu 470   87 517 581 1,027 698 546 743
 Peñasquito 1,169   692 656 424 191 190 130 135
 Cozamin 411   306 412 281 359 384 213
 Barrick 4 482   533 727 783 751 187
 Other 5 1,139   750 943 654 725 848 326 477
  5,530   4,277 4,644 4,427 4,674 3,974 2,938 3,158
Silver equivalent ounces of gold sold 6                  
 Minto 127   411 496 571 441 626 12
Silver equivalent ounces sold 5,657   4,688 5,140 4,998 5,115 4,600 2,950 3,158

1) Ounces produced represent the quantity of silver and gold contained in concentrate or doré prior to smelting or refining deductions.  As at December 31, 2010, approximately 2.4 million payable silver equivalent ounces attributable to the Company have been produced and the respective payable ounces will be recognized in future sales as they are delivered to the Company under the terms of their contracts.    
2) Certain production figures are based on management estimates. 
3) The ounces produced and sold during the third and fourth quarters of 2010 include 250,000 ounces and 375,000 ounces, respectively, received from Goldcorp, in connection with Goldcorp's four year commitment  to deliver to Silver Wheaton 1.5 million ounces of silver per annum resulting from their sale of San Dimas to Primero. 
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.     
5) Comprised of the Los Filos, San Martin, La Negra, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto and Campo Morado silver interests.
6)  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. 

Results of Operations (unaudited)

(US dollars)                    Year Ended December 31, 2010
  Ounces produced 3 Ounces sold   Sales   Average realized price ($'s per ounce)   Total cash cost ($'s per ounce) 4   Total depletion ($'s per ounce) 4   Net earnings     Cash flow from (used in) operations
                               
Silver                              
 San Dimas 5,157 4,994 $ 105,747 $ 21.18 $ 4.04 $ 0.78 $ 81,659   $ 86,666
 Zinkgruvan 1,801 1,867   39,447   21.12   4.04   1.71   28,697     30,178
 Yauliyacu 2,713 1,655   31,998   19.33   3.98   3.47   19,669     25,418
 Peñasquito 3,792 2,941   63,632   21.64   3.90   2.54   44,683     52,163
 Cozamin 1,403 1,410   29,180   20.71   4.03   4.62   16,987     23,252
 Barrick 5 2,617 2,525   48,311   19.13   3.90   3.55   29,498     36,787
 Other 6 4,608 3,486   73,345   21.04   3.92   4.49   44,010     58,182
  22,091 18,878 $ 391,660 $ 20.75 $ 3.97 $ 2.73 $ 265,203   $ 312,646
Gold                              
 Minto 28,795 25,884 $ 31,693 $ 1,224 $ 300 $ 236 $ 17,830   $ 23,174
Silver Equivalent 7 23,865 20,483 $ 423,353 $ 20.67 $ 4.04 $ 2.81 $ 283,033   $ 335,820
Corporate                       7,060     (16,059)
  23,865 20,483 $ 423,353 $ 20.67 $ 4.04 $ 2.81 $ 290,093   $ 319,761

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.
5)   Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
6)   Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado and La Negra silver interests. 
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.
                   
(US dollars)                  Year Ended December 31, 2009
  Ounces produced Ounces sold Sales Average realized price ($'s per ounce) Total cash cost ($'s per ounce) 3 Total depletion ($'s per ounce) 3 Net earnings (loss) Cash flow from (used in) operations
                             
Silver                            
 San Dimas 5,094 5,104 $ 75,371 $ 14.77 $ 4.02 $ 0.70 $ 51,266 $ 54,829
 Zinkgruvan 1,861 1,710   25,569   14.95   4.02   1.78   15,645   19,066
 Yauliyacu 3,142 3,014   44,829   14.87   3.93   3.47   22,520   32,980
 Peñasquito 928 646   9,398   14.55   3.90   2.35   5,357   6,878
 Cozamin 1,016 956   15,005   15.70   4.00   4.71   6,686   12,186
 Barrick 4 979 938   16,000   17.06   3.90   3.56   9,004   15,578
 Other 5 3,243 2,376   35,271   14.82   3.91   4.12   16,163   25,488
   16,263 14,744 $ 221,443 $ 15.02 $ 3.97 $ 2.46 $ 126,641 $ 167,005
Gold                            
 Minto 18,021 17,132 $ 17,850 $ 1,042 $ 300 $ 288 $ 7,781 $ 12,865
Silver Equivalent 6 17,395 15,823 $ 239,293 $ 15.13 $ 4.03 $ 2.60 $ 134,422 $ 179,870
Corporate                       (16,498)   (13,938)
  17,395 15,823 $ 239,293 $ 15.13 $ 4.03 $ 2.60 $ 117,924 $ 165,932

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.       
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.
5)  Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Minto, Campo Morado and La Negra silver interests.
6)  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.    
                   
(US Dollars)                  Three Months Ended December 31, 2010
  Ounces produced 3 Ounces sold Sales Average realized price ($'s per ounce) Total cash cost ($'s per ounce) 4 Total depletion ($'s per ounce) 4 Net earnings Cash flow from (used in) operations
                               
Silver                              
 San Dimas 1,586   1,438 $ 39,283 $ 27.33 $ 4.05 $ 0.78 $ 32,351 $ 34,567
 Zinkgruvan 428   421   12,483   29.64   4.05   1.69   10,062   10,600
 Yauliyacu 651   470   10,627   22.61   3.98   3.47   7,124   8,756
 Peñasquito 1,260   1,169   31,166   26.66   3.90   2.54   23,634   26,607
 Cozamin 335   411   10,953   26.67   4.04   4.62   7,396   8,729
 Barrick 5 458   482   11,369   23.58   3.90   3.61   7,749   10,890
 Other 6 1,352   1,139   30,149   26.47   3.92   4.81   20,207   24,452
  6,070   5,530 $ 146,030 $ 26.41 $ 3.97 $ 2.81 $ 108,523 $ 124,601
Gold                              
 Minto 4,130   2,562 $ 3,547 $ 1,384 $ 300 $ 237 $ 2,172 $ 3,816
Silver Equivalent 7 6,275   5,657 $ 149,577 $ 26.44 $ 4.02 $ 2.86 $ 110,695 $ 128,417
Corporate                         12,277   (3,730)
  6,275   5,657 $ 149,577 $ 26.44 $ 4.02 $ 2.86 $ 122,972 $ 124,687

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.       
5)  Comprised of the Lagunas Norte, Pierina and Veladero silver interests.     
6) Comprised of the Los Filos, Mineral Park, Neves-Corvo, Stratoni, Keno Hill, Minto, Campo Morado and La Negra silver interests. 
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.            
                   
(US dollars)                  Three Months Ended December 31, 2009
  Ounces produced Ounces sold Sales Average realized price ($'s per ounce) Total cash cost ($'s per ounce) 3 Total depletion ($'s per ounce) 3 Net earnings (loss) Cash flow from (used in) operations
                               
Silver                              
 San Dimas 1,275   1,264 $ 22,380 $ 17.71 $ 4.04 $ 0.65 $ 16,449 $ 17,276
 Zinkgruvan 505   357   6,547   18.32   4.03   1.78   4,470   6,273
 Yauliyacu 783   1,027   17,948   17.48   3.94   3.47   10,337   13,899
 Peñasquito 441   191   3,293   17.24   3.90   2.35   2,098   2,548
 Cozamin 388   359   6,334   17.66   4.00   4.72   3,207   4,569
 Barrick 4 756   751   12,991   17.31   3.90   3.59   7,373   13,299
 Other 5 1,068   725   12,916   17.80   3.91   4.27   6,978   9,795
   5,216   4,674 $ 82,409 $ 17.63 $ 3.97 $ 2.77 $ 50,912 $ 67,659
Gold                              
 Minto 7,500   7,033 $ 8,142 $ 1,158 $ 300 $ 288 $ 4,008 $ 7,342
Silver Equivalent 6 5,687   5,115 $ 90,551 $ 17.70 $ 4.04 $ 2.93 $ 54,920 $ 75,001
Corporate                         (4,109)   (4,020)
  5,687   5,115 $ 90,551 $ 17.70 $ 4.04 $ 2.93 $ 50,811 $ 70,981

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.
4) Comprised of the Lagunas Norte, Pierina and Veladero silver interests.     
5) Comprised of the Los Filos, San Martin, Mineral Park, Neves-Corvo, Stratoni, Minto, Campo Morado and La Negra silver interests. 
6) 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.       

Non-GAAP Measures

Silver Wheaton has included, throughout this press release, 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 year ended December 31, 2010, the Company's total cash costs, which were equivalent to the Company's cost of sales in accordance with GAAP, were $3.97 per ounce of silver and $300 per ounce of gold (2009 - $3.97 per ounce of silver and $300 per ounce of gold).

SOURCE Silver Wheaton Corp.