TORONTO (miningweekly.com) – Vancouver-based Silver Wheaton Corp recorded a net loss of $54,2-million in the fourth quarter of 2008, compared with a profit of $24,9-million a year earlier, the firm reported on Thursday morning.

Earnings were impacted on by a $64-million noncash write-down of long-term investments, as well as lower silver prices and sales.

Silver Wheaton, which buys silver at precontracted prices from miners and sells the metal at the current spot price, said sales declined to 2,7-million ounces in the fourth quarter, from 3,5-million ounces a year earlier.

The company realised an average silver price of $10,49/oz, compared with $14,18/oz realised in the year-prior period, and operating cashflow fell sharply, to $15,5-million, compared with $34,4-million in the fourth quarter of 2007.

For the full year, Silver Wheaton reported net earnings of $17,3-million (including a total write-down of $65,1-million), from the sale of 11,1-million ounces of silver.

In 2007, profit was $91,9-million, and the firm sold 13,1-million ounces of silver.

However, after completing four new silver stream agreements in 2008, and with production ramping up at Goldcorp's Penasquito project, in Mexico, silver sales are expected to increase to between 15-million and 17-million ounces this year.

"Despite a year of significant challenges, including less-than-anticipated silver deliveries from the Luismin mines in Mexico, we have continued to diversify our silver stream portfolio and have laid the groundwork for a significant increase in silver sales in 2009,” said president and CEO Peter Barnes.

“In the last six months, we have raised gross proceeds of more than $340-million, to pay down our revolving credit facility in full and to give us the financial flexibility to pursue further accretive growth opportunities with low-cost mines in current production," he added.

Silver Wheaton shares fell 6% on Thursday morning, to C$8,74 apiece by 11:07 in Toronto.

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