March 7, 2005
Silver Wheaton Corp. (Vancouver, British Columbia) is pleased to report operating cash flows of US$8.4 million (US$0.09 per share) for the four months ended December 31, 2004. Net earnings for the period were US$1.8 million (US$0.02 per share).
HIGHLIGHTS
-
In October, 2004, the Company acquired the right to purchase 100% of the silver produced by Wheaton River's Luismin mining operations in Mexico, which are expected to produce approximately 8 million ounces per annum for over 20 years.
-
In December, 2004, the Company acquired the right to purchase 100% of the silver produced by Lundin Mining's Zinkgruvan mining operations in Sweden, which are expected to produce approximately 2 million ounces per annum for over 20 years.
-
During the period, Silver Wheaton acquired 1,628,000 ounces of silver from Luismin and Zinkgruvan at a cash cost of US$3.90 per ounce, and sold 1,505,000 ounces at an average price of US$7.30 per ounce.
-
Cash holdings at December 31, 2004 were $20.0 million and working capital was $18.1 million.
-
On October 22, 2004 the Company began trading on the TSX under the symbol SLW. In December, 2004, the Company's name was changed from Chap Mercantile Inc. to Silver Wheaton Corp. and the outstanding shares were consolidated on a 5 for 1 basis.
"These results demonstrate the earning power of Silver Wheaton, the only pure-play silver company in the world", said Eduardo Luna, Chairman and CEO. "Strong production by Luismin and Zinkgruvan, together with good silver prices and an aggressive growth focus, should continue to enhance shareholder value."
The Company is also pleased to announce that Randy V.J. Smallwood, P.Eng. is joining as Vice President, Corporate Development. Mr. Smallwood is currently Director, Project Development for Wheaton River Minerals Ltd., where he has played an important role in identifying the opportunities that have lead to the spectacular growth of Wheaton River. With Silver Wheaton, Mr. Smallwood will shift his focus to quality silver based opportunities for the continued growth of the Company.
Silver Wheaton is the only mining company with 100% of its revenue from the sale of silver, and expects to sell approximately 10 million ounces in 2005. Silver Wheaton is debt-free, unhedged and aggressively seeking further growth.
A conference call will be held Tuesday, March 8 at 2:00 pm (ET) to discuss these results. You may join the call by dialling toll free 1-877-888-3490 or (416) 695-9757 for calls from outside of Canada and the US.
The conference call will be recorded and you can listen to a playback of the call after the event by dialling 1-866-518-1010 or (416) 695-5275. A live and archived audio webcast will be available on the website at www.silverwheaton.com.
Cautionary Note Regarding Forward Looking Statements
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of silver, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Silver Wheaton to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions, risks related to international operations, risks related to joint venture operations, the actual results of current exploration activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined as well as future prices of silver, as well as those factors discussed in the section entitled "Risk Factors" in Silver Wheaton's Filing Statement dated October 8, 2004 as filed with the securities regulatory authorities in Canada via SEDAR. Although Silver Wheaton has attempted to identify important factors that could cause actual results to differ materially, 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.
For information contact:
Julia Hasiwar
Director, Investor Relations
(604) 696-3011
1-800-380-8687
Email: info@silverwheaton.com