Silver Wheaton reports record operating and financial results in 2011

Friday, Mar 23, 2012

VANCOUVER, March 22, 2012 /PRNewswire/ - Silver Wheaton Corp. ("Silver Wheaton" or the "Company") (TSX:SLW)(NYSE:SLW) is pleased to announce its audited results for the fourth quarter and year endedDecember 31, 2011.

FULL YEAR HIGHLIGHTS

Third consecutive year of increasing attributable production to a record 25.4 million silver equivalent ounces (24.6 million ounces of silver and 18,400 ounces of gold), a 7% increase compared to 2010. This resulted in record revenue, earnings and operating cash flows.

Revenue increased 73% compared to 2010, to US$730.0 million, on silver equivalent sales of 21.1 million ounces (20.2 million ounces of silver and 18,300 ounces of gold).

Net earnings increased 92% compared to 2010 (on an adjusted basis¹), to US$550.0 million (US$1.56per share).

Operating cash flows increased 96% compared to 2010, to US$626.4 million (US$1.77 per share¹).

Cash operating margin¹ increased 84% compared to 2010, to US$30.56 per silver equivalent ounce. Silver Wheaton's average realized silver equivalent price increased by 68% over this same period, demonstrating Silver Wheaton's leverage to increasing silver prices.

Average cash costs of US$4.09 ¹ per silver equivalent ounce (US$3.99 per ounce of silver and US$300per ounce of gold), a 1% increase compared to 2010.

Adopted new dividend policy linking quarterly dividend payments to 20% of the previous quarter's operating cash flows, providing shareholders with additional exposure to increasing silver prices and to Silver Wheaton's exceptional production growth profile. During 2011, the Company paid US$63.6 million in dividends (US$0.18 per share).

Year-end cash balance of US$840.2 million, with a net cash position of US$761.6 million.

FOURTH QUARTER HIGHLIGHTS

Record attributable silver equivalent production of 6.9 million ounces (6.7 million ounces of silver and 3,900 ounces of gold), a 12% increase compared to 2010.

Revenue of US$191.9 million, on record silver equivalent sales of 6.0 million ounces (5.8 million ounces of silver and 3,800 ounces of gold).

• Net earnings of US$144.7 million (US$0.41 per share).
  
  Operating cash flows of US$163.7 million (US$0.46 per share¹).
• Average cash costs of US$4.06 ¹ per silver equivalent ounce.
  
  Quarterly dividend US$0.09 per common share was paid to shareholders, representing a threefold increase from the prior quarter.
  
  Appointed Mr. Haytham Hodaly as Senior Vice President, Corporate Development, effective January 1, 2012.
  
  SOURCE Silver Wheaton Corp.