SLW's 4th Quarter Results

[chux03]

www.silverwheaton.com


Here's some highlights:

 Net earnings of US$17.3 million (US$0.07 per share) from the sale of 11.1 million
ounces of silver, after recording a US$65.1 million (US$0.28 per share) non-cash
write-down of long term investments, compared to US$91.9 million (US$0.41 per
share) from the sale of 13.1 million ounces of silver in 2007.

 Operating cash flows of US$111.1 million (US$0.48 per share), compared to
US$119.3 million (US$0.54 per share) in 2007.

 With four new silver stream agreements completed in 2008, and the world class
Peñasquito project commencing production, annual silver sales are expected to
increase to 15 to 17 million ounces in 2009 and to approximately 30 million
ounces by 2013.

 In February 2008, Goldcorp sold its entire 48% interest in Silver Wheaton, on a
bought deal basis, for aggregate gross cash proceeds of C$1.6 billion.

 In June 2008, an amending agreement was entered into with existing lenders to
increase the revolving bank debt available by US$100 million to US$400 million.

 In September 2008, an early exercise of the Company’s share purchase and series
“A” publicly traded warrants was successfully completed. The Company received
gross cash proceeds in excess of C$120 million which were used to pay down
outstanding bank debt.

 Subsequent to year-end, gross proceeds of C$287.5 million were raised by way of
a bought deal equity financing through the issuance of 35,937,500 common
shares. The proceeds were primarily used to repay outstanding debt under the
revolving bank loan facility, and are available to fund future acquisitions of silver interests.


I picked up another 600 shares this morning.... :)


"Silver Wheaton expects, based upon its current contracts, to have silver sales of approximately 11.1 million ounces in 2008, increasing to 15 to 17 million ounces in 2009 and approximately 30 million ounces in 2013, without any capital expenditures being required to generate that growth."

[Irishfan1]

I bought some more yeasterday cause i thought their price would go up today. Ow well bad timeing. What was that big write down all about?

[skijake]

I bought some more yeasterday cause i thought their price would go up today. Ow well bad timeing. What was that big write down all about?

Sell the news?:confused:

[chux03]

I was checking one of my newsletters to see what they were thinking but nothing about SLW as of yet. I know they aren't really happy with ANY silver plays as they say they won't be adding any shares until there's some price inflation kicking back in, whatever that means, which may be some of their partiality towards gold showing, as last I read, silver was outperforming gold since the first of the year buy a good amount. Maybe it was because of when silver was showing a slightly lower spot price for awhile there earlier today. Who knows?
I thought I was adding to my position this morning but my wire transfer didn't show up till late this afternoon so, as the price went down, that's O.K. I'll just buy tomorrow. I'm lucky like that sometimes....
That SLW will be increasing sales throughout the years with no increase in costs says it all to me. And the fact that ALL my PM newsletters say SLW is worthy of inclusion into any portfolio, further confirms it's desirability. When you invest in silver, stay with (some) of the largest companies like SLW for best results.

[blox87]

Just picked up another 300 when it dipped back down to 6.80 yesterday...my original purchase was when it was under 3 dollars a share... I LOVE SLW ...what a bargain... SSRI has done me well also :cool:

[chux03]

It's up to $7.15 this morning, along with silver that's closing in on $14.50, so I'd say all is well with SLW.
I didn't get to buy because they froze account #1 while it's all transferred over to account #2 and that hasn't wrapped up yet. I sent them an email asking when we could get that done. So hopefully this little.....snafu will be remedied real soon. I did have some funds in account #2 so I did make a purchase this morning but it wasn't SLW. It was MFN with those funds and it's been an even bigger reason to smile lately than owning SLW as I'm UP 25% AFTER making my purchase this morning. It's been a LONG time since I've seen my portfolio looking like this!! Sweeeeeeeeet :)

[chux03]

Silver Wheaton: The Breakfast of Champions

By Christopher Barker
February 23, 2009 |

Every morning is the dawn of a new day, and under the circumstances, I maintain that forlorn Fools would be wise to pour some silver on their figurative breakfast.

Superstar silver-stream-specialist Silver Wheaton (NYSE: SLW) closed the door on a brutal 2008 last week with the release of fourth-quarter earnings. Alongside this Fool, Silver Wheaton recorded some hefty losses from long-term investments in junior silver exploration companies like Mines Management (AMEX: MGN) as silver prices plummeted and the markets devoured the juniors. Silver Wheaton's resulting $65 million writedown yielded a loss of $54.2 million for the quarter, but leaves behind little remaining risk to imminent streams of profit. The company certainly was not alone in its pain, as Pan American Silver (Nasdaq: PAAS) also recorded a loss and Kinross Gold (NYSE: KGC) took a massive billion-dollar hit.

Thankfully, operational snags at two of Goldcorp's (NYSE: GG) mines kept silver production below initial expectations during the brutal silver correction, leaving more silver in the ground for the coming stages of the precious-metals bull market. Bolstered by the addition of Goldcorp's world-class Penasquito mine, however, the company forecasts production growth of about 40% in 2009 to 15-17 million ounces. By 2013, that figure could reach 30 million ounces as additional streams like Alexco Resource's (AMEX: AXU) Keno Hill property move into production.

Like royalty-specialist Royal Gold (Nasdaq: RGLD), Silver Wheaton employs a rather capital-intensive business model that sees up-front expenditures paid off in spades over the long haul. With fixed costs permitting careful cash flow calculations, the company is able to manage risk during these risk-ridden times. Despite the significant recovery under way in both silver prices and precious metal mining stocks, financing to develop future mines remains constrained by the global credit lockdown. With nothing drawn on a $400 million revolving credit facility, Silver Wheaton stands ready to assist with up-front capital in exchange for long-term silver streams. I consider the business model a stroke of genius, and expect the credit crisis to yield some tasty long-term growth opportunities.

Silver Wheaton was my best call in 2008, as shares have nearly tripled since striking a 52-week low precisely on November 25, 2008. While precious metals rarely move in a straight line for very long, particularly while they're in the spotlight, I believe Silver Wheaton's recent recovery marks merely the beginning of substantial long-term share appreciation.