Silver Wheaton anticipates 35% increase in attributable 2010 silver production

Silver Wheaton CEO Peter Barnes says 2009 was a "transformational year" for the company as the groundwork was laid for continued strong organic growth well into the future.

RENO, NV - 

The world's largest of all mining royalty and metal streaming company, Vancouver's Silver Wheaton announced Thursday it expects to have attributable production of 22.2 million ounces of silver and 20,000 ounces of gold for a total silver equivalent production of 23.5 million ounces this year.

This represents a 35% increase compared to last year when attributable silver production was 17.4 million ounces or 16.2 million ounces of silver and 19,300 ounces of gold.

In a news release, Silver Wheaton CEO Peter Barnes said that "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."

Silver Wheaton has agreed to pay $625 million over three years to acquire 100% of silver production from three currently producing Barrick mines through 2013. The silver company will then acquire 25% of the life of mine silver production (an average of 9 million ounces annually for Silver Wheaton) from Barrick's massive Pascua-Lama project.

By 2013, the company hopes to have total production of more than 40 million silver equivalent ounces, approximately 38 million ounces of silver and 59,000 ounces of gold, a 130% increase in production growth.

Silver Wheaton noted that Goldcorp had announced the first silver-bearing lead and zinc concentrate shipments had begun at the Peñasquito mine in Mexico. Annual attributable production for Silver Wheaton is expected to average seven million ounces of silver annually over an estimated 22 year mine life.

Earlier this week, Silver Wheaton announced that attributable proven and probable reserves more than doubled last year, including an increase of 431 million ounces of silver and 220,000 ounces of gold, to a record 875 million silver equivalent ounces.

Over the same period attributable measured and indicated resources increased 72%, including an increase of 141 million ounces of silver and 180,000 ounces of gold, to a record 366 million silver equivalent ounces.

"We had another year of exceptional reserve growth, fueled by the Barrick and Silverstone acquisitions," Barnes noted.

In a presentation to the BMO Capital Markets Metals & Mining Conference this week in Hollywood, Florida, Barnes noted Silver Wheaton has a stake in three of the top five silver deposits in the world and in nine of the top 35 silver deposits.

Barns said its share of the Peñasquito and Pascua-Lama silver production will become the silver company's cornerstone assets yielding an average combined 16.2 million ounces for Silver Wheaton from two mines with a combined 47 years of mine life.

FINANCIALS

For 2009, Silver Wheaton reported net earnings of US$117.9 million or 39-cents per share) compared to its 2008 net earnings of $17.3 million or 7-cents per share, which included a $64 million non-cash write down during the fourth-quarter 2008.

For the fourth quarter of 2009, Silver Wheaton reported net earnings of $50.8 million or 15-cents per share, compared to a net loss of $54.2 million or negative 22-cents per share for the same period of 2008, which included the $64 million non-cash write down.

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