Gold Wheaton Gold Corp.
TSX VENTURE : GLW

Gold Wheaton Gold Corp.

November 10, 2009 17:00 ET

Gold Wheaton Reports Financial Results for Third Quarter 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Gold Wheaton Gold Corp. ("Gold Wheaton") (TSX VENTURE:GLW) is pleased to announce the financial results of operations for the three and nine months ended September 30, 2009 (unless otherwise indicated, all dollar amounts are expressed in United States dollars).

2009 Third Quarter Highlights

  • Revenue from the sale of precious metals for the three months ended September 30, 2009 ("Q3 2009") was $6.8 million; $2.2 million lower as compared to the three months ended September 30, 2008 ("Q3 2008"), primarily as a result of lower deliveries from FNX Mining Company Ltd. ("FNX") due to the Vale Inco strike impact.
  • Operating cash flow of $5.8 million; $6.5 million higher than Q3 2008, as a result of the timing of payments associated with deliveries in Q3 2008 and the additional First Uranium Corporation ("First Uranium") production.
  • 6,535 gold equivalent ounces were sold to the Company in Q3 2009,. FNX sold approximately 937 gold equivalent ounces to Gold Wheaton after the settlement of prior period sales compared to 10,804 gold equivalent ounces in Q3-2008. First Uranium sold approximately 5,598 ounces to Gold Wheaton. There were no sales from First Uranium in Q3-2008 as the contract was entered into in December 2008.
  • Net loss for Q3 2009 was $3.1 million (loss of $0.00 per share) compared to a net loss of $2.3 million (loss of $0.00 per share) for Q3 2008 Higher loss in Q3 2009 compared to Q3 2008 was mainly due to delayed and lower deliveries from FNX as a result of Vale Inco's strike; higher foreign exchange losses due to a strengthening of the Canadian dollar; and partially offset by sale of gold deliveries from First Uranium in Q3 2009 and higher gold, platinum and palladium prices compared to Q3 2008.
  • At September 30, 2009, the Company had cash and short term investments of $86.6 million and working capital of $45.1 million compared to $7.4 million and $14.5 million, respectively, on December 31, 2008. Working capital at September 30, 2009 includes accounts receivable of $9.3 million from the sale of precious metals arising from timing of settlements from offtake agreements. Accounts payable includes $3.5 million related to the cash per ounce cost of the precious metals purchased.
  • Subsequent to September 30, 2009, the Company signed a definitive agreement with Ezulwini Mining Company (Proprietary) Limited, a subsidiary of First Uranium. Gold Wheaton will purchase 7% of the life of mine gold production from First Uranium's Ezulwini Mine in South Africa, with minimum gold purchases of 16,500 and 19,500 ounces for 2010 and 2011 respectively. Total upfront payment will be $50 million. In addition, Gold Wheaton will pay the lesser of $400 per ounce of payable gold delivered and sold to Gold Wheaton, subject to adjustment, and the then prevailing market price. Closing of the transaction is expected to be late November 2009, subject to receipt of all required governmental, regulatory and stock exchange approvals and third-party consents.

"The Vale Inco strike impact on FNX deliveries to Gold Wheaton has had the previously indicated impact on this quarter's performance. However, we expect to make up the lower deliveries in Q3 2009 from FNX in the fourth quarter from ore stock piled in Q3 that has been shipped to Xstrata for processing in the fourth quarter. In addition, FNX has announced that deliveries to Vale Inco were resumed in late September, normalizing the operating situation. At First Uranium's Mine Waste Solutions Tailings Recovery project, ramp up following the commissioning of Phase 1b continues. With this increase in delivered ounces and the higher precious metals prices, we expect to have a strong fourth quarter," said David Cohen, Chairman and CEO.

Financial Information

For complete details of financial results, please refer to the unaudited interim consolidated financial statements and accompanying Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2009. These financial statements and MD&A, and the comparative financial statements for the three and nine months ended September 30, 2009 are all available on SEDAR at www.sedar.com and on the Company's website www.goldwheaton.com.

Teleconference call details

Gold Wheaton will host a telephone conference call on Thursday, November 12, 2009, at 10:00am PST (1:00pm EST) to discuss the results. The conference call may be accessed by dialing 1-800-319-4610 in Canada and the United States, or 1-604-638-5340 internationally.

The conference call will be archived for later playback until Thursday, November 19, 2009 and can be accessed by dialing 604-638-9010 or 1-800-319-6413 and using the pass code 3504 followed by the number sign, #.

About the Company

Gold Wheaton is a gold company with 100% of its operating revenue from the sale of gold and precious metals produced by others. The Company is actively pursuing further growth opportunities.

The Company's shares are listed on the TSX Venture Exchange under the symbol "GLW" with 1,430,469,668 pre-consolidation shares issued and outstanding.

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 gold, platinum or palladium, the timing and amount of estimated future production, costs of production, reserve determination and reserves conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Gold Wheaton to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such factors include, among other risks, 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, actual results of current reclamation activities, conclusions of economic evaluations and changes in project parameters as plans continue to be refined, future prices of gold or uranium, the timing and amount of estimated future production and the costs thereof; capital expenditures; the availability of any additional capital required to bring future projects into production; future prices of commodities; the failure of plant, equipment or processes to operate as anticipated; accidents; labour disputes; delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities; currency fluctuations, as well as those factors discussed in the section entitled "Description of Business - Risk Factors" in Gold Wheaton's Annual Information Form dated August 19, 2008 as filed on SEDAR. Although Gold 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the content of this news release.

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