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Silver Wheaton Reports Record Second Quarter And First Half 2013 Production

Stocks in this article: SLW

[1] Silver equivalent production forecast assumes a gold/silver ratio of 53.3:1


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, reserve conversion rates and statements as to any future dividends.  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 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.

Consolidated Statement of Earnings

                                                                       Three Months Ended
                                                                             June 30
    (US dollars and shares in thousands,
      except per share amounts - unaudited)                             2013          2012
    Sales                                                          $ 166,890     $ 201,408
    Cost of sales
                      Cost of sales, excluding depletion           $  34,497     $  28,116
                      Depletion                                       41,362        21,591
    Total cost of sales                                            $  75,859     $  49,707
    Earnings from operations                                       $  91,031     $ 151,701
    Expenses and other income
                      General and administrative [1]               $   8,876     $   7,354
                      Foreign exchange gain                              (75)           39
                      Interest expense                                 2,525             -
                      Other expense (income)                           6,926           144
                                                                   $  18,252     $   7,537
    Earnings before income taxes                                   $  72,779     $ 144,164
    Income tax expense                                                (1,662)       (2,750)
    Net earnings                                                   $  71,117     $ 141,414

    Basic earnings per share                                       $    0.20     $    0.40
    Diluted earnings per share                                     $    0.20     $    0.40
    Weighted average number of shares outstanding
                                            Basic                    354,800       353,733
                                            Diluted                  355,804       355,519
    1) Equity settled stock based compensation
     (a non-cash item) included in general and
     administrative expenses.                                      $   2,375     $   1,669

Consolidated Statement of Earnings continued

                                                                         Six Months Ended
                                                                             June 30
    (US dollars and shares in thousands,
      except per share amounts - unaudited)                             2013          2012
    Sales                                                          $ 372,651     $ 401,046
    Cost of sales
                      Cost of sales, excluding depletion           $  64,907     $  53,135
                      Depletion                                       65,703        38,797
    Total cost of sales                                            $ 130,610     $  91,932
    Earnings from operations                                       $ 242,041     $ 309,114
    Expenses and other income
                      General and administrative [1]               $  18,768     $  14,918
                      Foreign exchange gain                             (185)            9
                      Interest expense                                 3,205             -
                      Other expense (income)                           9,771          (506)
                                                                   $  31,559     $  14,421
    Earnings before income taxes                                   $ 210,482     $ 294,693
    Income tax expense                                                (5,944)       (6,098)
    Net earnings                                                   $ 204,538     $ 288,595

    Basic earnings per share                                       $    0.58     $    0.82
    Diluted earnings per share                                     $    0.57     $    0.81
    Weighted average number of shares outstanding
                                            Basic                    354,612       353,631
                                            Diluted                  356,112       355,751
    1) Equity settled stock based compensation
     (a non-cash item) included in general and
     administrative expenses.                                       $   3,845    $   3,328


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