REG - Wheaton Precious Met - 1st Quarter Results
09/05/2025 07:45
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RNS Number : 0477I Wheaton Precious Metals Corp. 09 May 2025
May 8, 2025
Vancouver, British Columbia
First QUARTER FINANCIAL results
Wheaton Precious Metals Announces Record Revenue, Adjusted Net Earnings and
Operating Cash Flow for the First Quarter of 2025
"Wheaton delivered a strong start to 2025, with our core assets exceeding
production expectations and driving record quarterly revenue, adjusted net
earnings, and operating cash flow. In times of economic uncertainty, gold is
viewed as a reliable store of value, and these results demonstrate why we
believe Wheaton offers one of the best low-risk opportunities for investors
seeking exposure to precious metals," said Randy Smallwood, President and CEO
of Wheaton Precious Metals. "Looking ahead, 2025 is shaping up to be a
catalyst-rich year, with four development projects scheduled to come online
over the course of the year. Notably, Artemis Gold announced commercial
production at the Blackwater Mine on May 2, an exciting milestone at an asset
which is expected to contribute meaningfully to Wheaton's portfolio going
forward. With the solid foundation of our currently producing asset base,
coupled with our industry leading growth profile, we believe we are uniquely
positioned to continue pursuing accretive growth and delivering long-term
value creation to all of our stakeholders."
Record Financial Performance and Strong Balance Sheet
· First quarter of 2025: A record $470 million in revenue, $254 million
in net earnings, and $361 million in operating cash flow.
· Declared a quarterly dividend(1) of $0.165 per common share.
· Balance Sheet: Cash balance of $1.1 billion, no debt, and an undrawn $2
billion revolving credit facility as at March 31, 2025.
High Quality Asset Base
· Streaming and royalty agreements on 18 operating mines and 28
development projects and other(5).
· 83% of attributable production from assets in the lowest half of their
respective cost curves(2,4).
· Attributable gold equivalent production(3) ("GEOs") of 151,000 ounces
in the first quarter of 2025. While quarterly production decreased 4% relative
to the comparable period of the prior year as a result of planned lower
production from Constancia and Peñasquito, it still surpassed expectations,
driven primarily by strong quarterly production achieved at Salobo.
· Further de-risked forecast growth profile as construction activities
advanced at a number of development projects including Goose, Platreef, and
Mineral Park, all of which are currently expected to be producing by the end
of 2025.
· On March 7, 2025, the Company amended the Blackwater Silver PMPA with
Artemis Gold Inc. ("Artemis") by simplifying the payable silver calculation,
which is expected to accelerate the receipt of payable silver ounces by
Wheaton.
· Subsequent to the quarter, on May 2, 2025, Artemis announced that it
had achieved commercial production at the Blackwater mine, with mining
delivering in excess of 90% of its planned tonnage, and mined tonnes and
grades reconciling favourably to the resource model.
Leadership in Sustainability
· Top Rankings: One of the top-rated companies by Sustainalytics,
AAA rated by MSCI (upgraded in 2024 from AA to AAA, the highest possible
rating), and Prime rated by ISS.
· Awarded US$1 million to the winning venture of the inaugural
Future of Mining Challenge, ReThink Milling Inc., to advance their Conjugate
Anvil Hammer Mill ("CAHM") and MonoRoll technologies, for their potential
ability to lower energy use in the milling process.
· Recognized by Corporate Knights as one of the 2025 Global
100 Most Sustainable Corporations, based on a rigorous assessment of over
more than 8,300 public companies with revenue over US$1 billion.
Operational Overview
(all figures in US dollars unless otherwise noted) Q1 2025 Q1 2024 Change
Units produced
Gold ounces 92,681 91,939 0.8 %
Silver ounces 4,733 5,482 (13.7)%
Palladium ounces 2,661 4,463 (40.4)%
Cobalt pounds 540 240 125.1 %
Gold equivalent ounces (3) 151,065 158,072 (4.4)%
Units sold
Gold ounces 111,297 92,019 21.0 %
Silver ounces 4,483 4,067 10.2 %
Palladium ounces 2,457 4,774 (48.5)%
Cobalt pounds 265 309 (14.2)%
Gold equivalent ounces (3) 165,297 142,294 16.2 %
Change in PBND and Inventory
Gold equivalent ounces (3) (26,344) 942 27,286
Revenue $ 470,411 $ 296,806 58.5 %
Net earnings $ 253,984 $ 164,041 54.8 %
Per share $ 0.560 $ 0.362 54.7 %
Adjusted net earnings (1) $ 250,825 $ 163,589 53.3 %
Per share (1) $ 0.553 $ 0.361 53.2 %
Operating cash flows $ 360,793 $ 219,380 64.5 %
Per share (1) $ 0.795 $ 0.484 64.3 %
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Financial Review
Revenues
Revenue in the first quarter of 2025 was $470 million (68% gold, 30% silver,
1% palladium and 1% cobalt), with the $174 million increase relative to the
prior period quarter being primarily due to a 36% increase in the average
realized gold equivalent³ price; and a 16% increase in the number of GEOs³
sold.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2025 were $446 per GEO³ as
compared to $433 in the first quarter of 2024. This resulted in a cash
operating margin¹ of $2,400 per GEO³ sold, an increase of 45% as compared
with the first quarter of 2024, a result of the higher realized price per
ounce. Notably, year-over-year margin growth exceeded the appreciation in gold
prices over the same period, underscoring the effectiveness of our business
model in leveraging rising commodity prices while maintaining strong cash
operating margins.
Cash Flow from Operations
Operating cash flow in the first quarter of 2025 amounted to $361 million,
with the $141 million increase from the comparable period of the prior year,
due primarily to the higher gross margin.
Produced But Not Yet Delivered
As at March 31, 2025, approximately 136,100 GEOs were produced but not yet
delivered ("PBND") representing approximately three months of payable
production. Total PBND ounces decreased quarter over quarter as strong
production levels in the fourth quarter of 2024, resulted in an increase to
sales realized in the first quarter of 2025, due to the inherent timing delay
between production and sales. The Company expects PBND levels to stay at the
higher end of our forecasted range of two to three months until the end of
2025, in part due to the ramp up of new mines, forecast to commence operations
in the second half of the year.
Balance Sheet (at March 31, 2025)
· Approximately $1,086 million of cash on hand
· During the first quarter of 2025, the Company made total upfront cash
payments of $95 million relative to the mineral stream interests consisting
of:
o $40 million relative to the Mineral Park PMPA;
o $30 million relative to the Blackwater PMPA; and
o $25 million relative to the Fenix PMPA.
· Subsequent to the quarter, the Company made additional upfront cash
payments of $303 million relative to the mineral stream interests consisting
of:
o $144 million relative to the Salobo III expansion;
o $156 million relative to the Koné PMPA; and
o $3 million relative to the Cangrejos PMPA.
· With the existing cash on hand coupled with the fully undrawn $2
billion revolving credit facility, the Company believes it is well positioned
to fund all outstanding commitments and known contingencies as well as
providing flexibility to acquire additional accretive mineral stream
interests. Given the strength of Wheaton's balance sheet and forecasted cash
flows, the Company has elected to not renew its at-the-market equity program.
Global Minimum Tax
For the three months ended March 31, 2025, an amount of $45 million current
tax expense associated with Global Minimum Tax ("GMT") was recorded, with GMT
being payable 15 months after year-end (18 months after year-end for the
year-ended December 31, 2024). As the Global Minimum Tax Act ("GMTA") was not
enacted into law until Q2-2024, no GMT expense was reflected in Q1-2024
results.
Chief Financial Officer Transition
On January 9, 2025, Wheaton announced that Gary Brown will be stepping down
from his role as Chief Financial Officer ("CFO"). As part of the previously
announced planned leadership succession, Vincent Lau was appointed CFO
effective March 31, 2025.
First Quarter Operating Asset Highlights
Salobo: In the first quarter of 2025, Salobo produced 71,400 ounces of
attributable gold, an increase of approximately 16% relative to the first
quarter of 2024, primarily due to higher throughput and grades, partially
offset by lower recoveries.
On March 4, 2025, Vale informed the Company that it had achieved a sustained
throughput capacity of over 35 Mtpa over a 90-day period, indicating
completion of the second phase of the Salobo III expansion project. The
Company advanced the remaining balance of the expansion payment to Vale in the
amount of $144 million on April 4, 2025.
Antamina: In the first quarter of 2025, Antamina produced 1.1 million ounces
of attributable silver, an increase of approximately 35% relative to the first
quarter of 2024 primarily due to higher grades and throughput, partially
offset by lower recoveries. On April 22, 2025, it was reported that operations
were temporarily halted after an incident which triggered a full safety
shutdown. Operations have since re-commenced.
Peñasquito: In the first quarter of 2025, Peñasquito produced 1.8 million
ounces of attributable silver, a decrease of approximately 34% relative to the
first quarter of 2024, primarily the result of lower grades as mining
activities have transitioned back into the Peñasco pit which contains lower
silver grades relative to the Chile Colorado pit.
Constancia: In the first quarter of 2025, Constancia produced 0.6 million
ounces of attributable silver and 4,900 ounces of attributable gold, a
decrease of approximately 13% and 65%, respectively, relative to the first
quarter of 2024. The decrease was primarily the result of lower grades as more
material was mined from Constancia and reclaimed from the stockpile compared
with the prior year. On February 19, 2025, Hudbay Minerals Inc. ("Hudbay")
announced that gold production in 2025 is expected to be lower than 2024
levels as additional high grade gold benches were mined in late 2024, ahead of
schedule, resulting in gold production exceeding 2024 guidance levels. The
Pampacancha deposit is now expected to be depleted in early December 2025 as
opposed to October 2025, as the mine plan has smoothed Pampacancha production
throughout the year. Total mill ore feed from Pampacancha is expected to be
approximately 25% in 2025, lower than the typical one-third in prior years as
Pampacancha approaches depletion.
During Q1 2025 relative to Q4 2024, a greater percentage of gold production
came from the lower grade Constancia pit as opposed to the higher grade
Pampacancha pit, resulting in significantly lower production levels in Q1 2025
as compared to Q4 2024.
Sudbury: In the first quarter of 2025, Vale's Sudbury mines produced 4,900
ounces of attributable gold, a decrease of approximately 13% relative to the
first quarter of 2024, due to lower grades.
San Dimas: In the first quarter of 2025, San Dimas produced 8,400 ounces of
attributable gold, an increase of approximately 12% relative to the first
quarter of 2024, primarily due to higher throughput, partially offset by lower
grades.
In accordance with the San Dimas PMPA, effective April 30, 2025, the fixed
gold to silver exchange ratio has been revised from 70:1 to 90:1. (see
footnote 4 on page 14 of this press release for more information).
Stillwater: In the first quarter of 2025, the Stillwater mines produced 1,300
ounces of attributable gold and 2,700 ounces of attributable palladium, a
decrease of approximately 49% for gold and 40% for palladium relative to the
first quarter of 2024, primarily due to lower throughput as Stillwater West
operations were put into care and maintenance in September 2024.
Voisey's Bay: In the first quarter of 2025, the Voisey's Bay mine produced
540,000 pounds of attributable cobalt, an increase of approximately 125%
relative to the first quarter of 2024, as the transitional period between the
depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's
Bay underground continues. On April 15, 2025, Vale reported the consistent
ramp-up of Voisey's Bay's underground operations. The full ramp-up is expected
by the second half of 2026.
Other Gold: In the first quarter of 2025, total Other Gold attributable
production was 1,800 ounces, an increase of approximately 185% relative to the
first quarter of 2024 due to the initial reported production from Blackwater.
Other Silver: In the first quarter of 2025, total Other Silver attributable
production was 1.3 million ounces, a decrease of approximately 4% relative to
the first quarter of 2024, as the initial reported production from Blackwater
was offset by lower production at Neves-Corvo.
Zinkgruvan and Neves-Corvo: On April 16, 2025, Lundin Mining Corporation
("Lundin Mining") announced that it has completed the sale of its Neves-Corvo
and Zinkgruvan mines to Boliden AB.
Blackwater: On January 22, 2025, Artemis announced that commissioning of the
grinding circuit at the Blackwater mine has advanced and milling of first ore
commenced, with the first pour of gold and silver being announced on January
29, 2025. Subsequent to the quarter, on May 2, 2025, Artemis announced that it
had achieved commercial production at the Blackwater mine. Artemis reports
that mining has delivered in excess of 90% of its planned tonnage, and that
mined tonnes and grades are reconciling favourably to the resource model.
Artemis notes that the proposed phase 2 expansion is anticipated to increase
Blackwater's average annual production to over 500,000 GEOs per year,
positioning the mine as a key long-term asset in a favourable jurisdiction for
Wheaton.
Los Filos: On April 1, 2025, Equinox reported it has indefinitely suspended
operations at Los Filos following the expiry of its land access agreement with
the community of Carrizalillo on March 31, 2025.
Detailed mine-by-mine production and sales figures can be found in the
Appendix to this press release and in Wheaton's consolidated MD&A in the
'Results of Operations and Operational Review' section.
Recent Development Asset Updates
Goose Project: On February 19, 2025, B2Gold Corp. ("B2Gold") announced that
all planned construction activities for 2024 were completed, and project
construction and development continue to progress on track to achieve first
gold pour at the Goose Project in the second quarter of 2025, followed by a
ramp up to commercial production in the third quarter of 2025. On March 27,
2025, B2Gold announced an updated mineral reserve life for the Goose project,
which uses a revised methodology for mineral resource estimation, resulting in
a reclassification of a portion of the previously reported Indicated Mineral
Resources to Inferred Mineral Resources. B2Gold also states that they remain
highly confident that with additional in-fill drilling to be completed over
time, a large portion of the Inferred Mineral Resources will be converted to
Indicated Mineral Resources and therefore be eligible for classification as
Mineral Reserves.
Mineral Park Project: During the quarter, Waterton's Origin Mining continued
to advance the Mineral Park project, with the installation of all major
equipment now complete. Waterton indicates that the second quarter will be
focused on tie-ins, pre-commissioning activities, and introduction of ore, and
that project construction continues to progress on track with a ramp-up to
commercial production expected during the second half of 2025. At project
completion, the fully refurbished mill capacity will be 16.5 Mtpa.
Platreef Project: On February 18, 2025, Ivanhoe Mines ("Ivanhoe") reported
positive results from the two independent technical studies completed on the
Phase 2 and Phase 3 expansions. The study outlines Phase 1 production
commencing from Q4 2025, followed by the Phase 2 expansion two years later in
Q4 2027. Ivanhoe noted that the Phase 3 expansion is expected to rank Platreef
as one of the largest primary PGM producers on a platinum equivalent basis.
Fenix Project: On January 13, 2025, Rio2 Limited ("Rio2") reported that
construction activities recommenced in October 2024 and construction is
expected to be completed in November 2025. Bulk earthworks at the plant side
have been completed and concrete bases for the footings of the processing
plant have been poured. Earthworks have commenced on the leach pad stability
platform, which forms the base of the Phase 1 leach pad. The leach pad has
been designed to be built in four phases. On April 29, 2025, Rio2 reported
that construction was 19% complete and remains on track and on budget for
first gold production in January 2026. The Company advanced the second deposit
payment of $25 million on March 24, 2025.
Kurmuk Project: On May 7, 2025, Allied Gold Corporation ("Allied") reported
that earthworks at the plant terrace advanced during the first quarter to near
completion, while civil works and structural, mechanical, plate, and piping
contractor mobilizations are in progress. Engineering and procurement
activities reached 80% completion, with the project remaining on track and on
budget. Allied reports that Kurmuk is expected to start production by
mid-2026.
Marmato Mine: On January 15, 2025, Aris Mining Corporation ("Aris") announced
that the construction of the Marmato Lower Mine continues to progress. On
March 13, 2025, Aris announced an enhanced Marmato expansion, whereby the
design of the carbon-in-pulp processing facility will be upgraded by 25% from
4,000 tpd to 5,000 tpd. On May 7, 2025, Aris reported that the processing
plant capacity was increased from 4,000 tpd to a planned 5,000 tpd. Aris
reports that construction remains on track, and production is expected to
start ramping up in the second half of 2026.
El Domo Project: On January 7, 2025, Silvercorp Metals Inc. ("Silvercorp")
reported it has recently awarded the earthworks contract to a large
international mining contractor with over ten years of experience working in
Ecuador. On April 23, 2025, Silvercorp reported that it is targeting to bring
the project into production by the end of 2026. The construction of the main
plant and auxiliary facilities are expected to commence in September 2025,
with major equipment installation expected to commence in May 2026. Silvercorp
expects to complete construction and equipment installation by November 2026,
with commissioning of the process plant occurring in December 2026.
Koné Project: On March 24, 2025, Montage Gold Corp. ("Montage") announced
that rapid construction progress is being achieved at the Koné project, where
process plant concrete works, including the ahead-of-schedule pouring of
Carbon-in-Leach tank foundations, have commenced. Montage reports that
construction activities have significantly ramped-up, with the on-site
workforce increasing from approximately 350 to 1,700 employees and
contractors. On April 8, 2025, Montage published its maiden resource and
results from its exploration program, with over 81,000 meters drilled in 2024,
focused on identifying higher grade satellite targets, with the goal of
supplementing production from the commencement of operations. Montage has
reported that the project remains on track to pour gold in the second quarter
of 2027.
Copper World Project: On January 2, 2025, Hudbay that it has received an Air
Quality Permit for the Copper World project from the Arizona Department of
Environmental Quality. Hudbay noted that the issuance of this permit is a
significant milestone in the advancement of the project as it is the final
major permit required for the development and operation of the Copper World
project. Hudbay also noted that the receipt of the three key state permits is
one of the three key prerequisites for Hudbay as they work toward a
sanctioning decision on the Copper World project in 2026. Hudbay commenced a
minority joint venture partner process early in 2025, and it is anticipated
that any minority joint venture partner would participate in the funding of
definitive feasibility study activities in 2025 as well as in the final
project design and construction for Copper World. On March 27, 2025, Hudbay
reported that feasibility studies are underway at the fully permitted Copper
World project.
Santo Domingo Project: On January 20, 2025, Capstone Copper Corp. ("Capstone")
announced plans to progress partnership discussions and its financing strategy
throughout 2025. A potential project sanctioning decision is not anticipated
prior to mid-2026.
Cangrejos Project: On January 28, 2025, Lumina Gold Corp., ("Lumina"),
announced significant progress regarding power infrastructure required for the
Cangrejos project as it received approval of the definitive feasibility level
designs for connection to the national grid for the future energy demands of
the project from Corporación Eléctrica del Ecuador. Lumina noted that the
lead engineering contractor for the feasibility study has completed 92% of the
estimated work and the feasibility study remains on schedule for completion
during Q2 2025. Lumina notes that the Environmental Impact Study is
progressing on schedule which will allow for its submission to the Government
of Ecuador in mid-2025. Lumina is targeting receiving its environmental
license by early 2026.
On April 21, 2025, Lumina announced that it had entered into an arrangement
agreement with CMOC Singapore Pte. Ltd., a Singapore entity and a subsidiary
of CMOC Group Limited (collectively "CMOC"), pursuant to which CMOC will
acquire all of the issued and outstanding common shares of Lumina. Subject to
satisfying all necessary conditions, Lumina expects the transaction to be
completed in the third quarter of 2025.
Detailed mine-by-mine production and sales figures can be found in the
Appendix to this press release and in Wheaton's consolidated MD&A in the
'Results of Operations and Operational Review' section.
Corporate Development
Amendment to Blackwater PMPA: On March 7, 2025, the Company amended its PMPA
(the "Blackwater Silver PMPA") with Artemis Gold Inc. ("Artemis") in respect
of silver production from the Blackwater Project located in British Columbia
in Canada (the "Blackwater Project"). Under the Blackwater Silver PMPA,
Wheaton will acquire an amount of silver equal to 50% of the payable silver
until 17.8 million ounces have been delivered and 33% of payable silver
thereafter for the life of the mine.
As a result of the amendment, the amount of payable silver will be based on a
multiple ranging from 5.07 to 5.17 of the number of ounces of gold produced,
rather than being based on a fixed silver recovery factor. The ratio is
currently 5.17. Once 17.8 million ounces of silver have been delivered, the
determination of payable silver will revert to being based on a fixed silver
recovery factor, consistent with the previous terms of the Blackwater Silver
PMPA. As a result of the changed payable silver profile which is expected to
deliver silver ounces to the Company sooner relative to the original profile,
on March 10, 2025, the Company paid Artemis $30 million in connection with
this amendment.
Sustainability
Future of Mining Challenge
On March 4, 2025, Wheaton announced the winner of its inaugural Future of
Mining Challenge. ReThink Milling Inc. was awarded $1 million for its
Conjugate Anvil Hammer Mill and MonoRoll technologies
(https://www.rethinkmining.org/mining-projects/novel-technology-platform-for-conjugate-anvil-hammer-mill-cahm/)
, which have the potential to deliver greater efficiency with significantly
lower energy use, leading to reduced greenhouse gas emissions and operating
costs. The theme of Wheaton's 2025/26 Future of Mining Challenge will be
water, and the Company expects to begin receiving expressions of interest in
June 2025. Learn more at www.futureofmining.ca (http://www.futureofmining.ca)
.
Community Investment Program:
· To strengthen community investment efforts in development-stage
projects, Wheaton has expanded its Partner Community Investment program to
include the Platreef project. During the quarter, significant progress was
made on three Wheaton-supported community initiatives, and the company plans
to further expand its community investment scope at Platreef in 2025.
· Wheaton's Partner Community Investment Program continues to
support initiatives with the Vale Foundation, Vale Canada, Glencore via
Antamina, Hudbay, First Majestic, Newmont, Artemis, Aris Mining and Ivanhoe to
support the communities influenced by the mines and provide vital services and
programs including educational resources, health and dental programs, poverty
reduction initiatives, entrepreneurial opportunities, and various social and
environmental programs.
· Subsequent to the quarter, the Daffodil Ball, the largest cancer
research gala in Canada and presented by Wheaton Precious Metals, raised a
record-breaking CA$10.85 million in support of world-leading cancer research
and the newly established Lundin Cancer Fund-Canadian Cancer Society
Glioblastoma Research Program
2025 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2025 is forecast to be 350,000
to 390,000 ounces of gold, 20.5 to 22.5 million ounces of silver, and 12,500
to 13,500 GEOs(3) of other metals, resulting in annual production of
approximately 600,000 to 670,000 GEOs(3), unchanged from previous
guidance(2,3).
Annual production is forecast to increase by approximately 40% to 870,000
GEOs(3) by 2029, with average annual production forecast to grow to over
950,000 GEOs(3 )in years 2030 to 2034, also unchanged from previous
guidance(6,7).
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company with the
highest-quality portfolio of long-life, low-cost assets. Its business model
offers investors commodity price leverage and exploration upside but with a
much lower risk profile than a traditional mining company. Wheaton delivers
amongst the highest cash operating margins in the mining industry, allowing it
to pay a competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed gold and
silver, as well as other mining investments. Wheaton is committed to strong
ESG practices and giving back to the communities where Wheaton and its mining
partners operate. Wheaton creates sustainable value through streaming for all
of its stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious
Metals", "Wheaton" or the "Company") MD&A and Financial Statements,
reference to the Company and Wheaton includes the Company's wholly owned
subsidiaries.
Webcast and Conference Call Details
Wheaton will release its 2025 first quarter results on Thursday, May 8, 2025,
after market close. A conference call will be held on Friday, May 9, 2025,
starting at 11:00 am ET (8:00 am PT) to discuss these results. To participate
in the live call, please use one of the following methods:
Dial toll free from Canada or the US: 1-888-510-2154
Dial from outside Canada or the US: 1-437-900-0527
Pass
code:
90722#
Live audio
webcast:
Webcast (http://app.webinar.net/7QMVwzljGe2) Link
(http://app.webinar.net/7QMVwzljGe2)
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until May 16, 2025 at 11:59
pm ET. The webcast will be available for one year. You can listen to an
archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-660-6345
Dial from outside Canada or the US: 1-646-517-4150
Pass
code:
90722#
Archived audio
webcast: Webcast
(https://app.webinar.net/7QMVwzljGe2) Link
(https://app.webinar.net/7QMVwzljGe2)
This earnings release should be read in conjunction with Wheaton Precious
Metals' MD&A and Financial Statements, which are available on the
Company's website at www.wheatonpm.com and have been posted on SEDAR+ at
www.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo.,
Vice President, Technical Services for Wheaton Precious Metals and Ryan
Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such
term is defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns has
reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant differences
between its corporate governance practices and those required to be followed
by United States domestic issuers under the NYSE listing standards. This
confirmation is located on the Wheaton Precious Metals website at
http://www.wheatonpm.com.
For further information:
Investor Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Condensed Interim Consolidated Statements of Earnings
Three Months Ended
March 31
(US dollars and shares in thousands, except per share amounts - unaudited) 2025 2024
Sales $ 470,411 $ 296,806
Cost of sales
Cost of sales, excluding depletion $ 74,635 $ 61,555
Depletion 76,693 63,676
Total cost of sales $ 151,328 $ 125,231
Gross margin $ 319,083 $ 171,575
General and administrative 13,525 10,464
Share based compensation 12,181 1,281
Donations and community investments 2,693 1,570
Earnings from operations $ 290,684 $ 158,260
Other income (expense) 7,520 7,196
Earnings before finance costs and income taxes $ 298,204 $ 165,456
Finance costs 1,441 1,442
Earnings before income taxes $ 296,763 $ 164,014
Income tax expense (recovery) 42,779 (27)
Net earnings $ 253,984 $ 164,041
Basic earnings per share $ 0.560 $ 0.362
Diluted earnings per share $ 0.559 $ 0.362
Weighted average number of shares outstanding
Basic 453,692 453,094
Diluted 454,428 453,666
Condensed Interim Consolidated Balance Sheets
As at As at
March 31
December 31
(US dollars in thousands - unaudited) 2025 2024
Assets
Current assets
Cash and cash equivalents $ 1,085,581 $ 818,166
Accounts receivable 7,994 6,217
Income taxes receivable 159 -
Other 3,433 3,697
Total current assets $ 1,097,167 $ 828,080
Non-current assets
Mineral stream interests $ 6,397,782 $ 6,379,580
Early deposit mineral stream interests 47,094 47,094
Mineral royalty interests 40,421 40,421
Long-term equity investments 128,877 98,975
Property, plant and equipment 11,687 8,691
Other 16,269 21,616
Total non-current assets $ 6,642,130 $ 6,596,377
Total assets $ 7,739,297 $ 7,424,457
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 7,684 $ 13,553
Dividends payable 74,880 -
Income taxes payable 106 2,127
Current portion of performance share units 13,291 13,562
Current portion of lease liabilities 488 262
Total current liabilities $ 96,449 $ 29,504
Non-current liabilities
Performance share units $ 5,427 $ 11,522
Lease liabilities 7,599 4,909
Global minimum tax payable 158,571 113,505
Deferred income taxes 369 349
Pension liability 4,740 5,289
Total non-current liabilities $ 176,706 $ 135,574
Total liabilities $ 273,155 $ 165,078
Shareholders' equity
Issued capital $ 3,804,168 $ 3,798,108
Reserves (41,904) (63,503)
Retained earnings 3,703,878 3,524,774
Total shareholders' equity $ 7,466,142 $ 7,259,379
Total liabilities and shareholders' equity $ 7,739,297 $ 7,424,457
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended
March 31
(US dollars in thousands - unaudited) 2025 2024
Operating activities
Net earnings $ 253,984 $ 164,041
Adjustments for
Depreciation and depletion 76,994 64,013
Equity settled share based compensation 1,425 1,598
Performance share units - expense 10,756 (317)
Performance share units - paid (17,209) (11,129)
Income tax expense 42,779 (27)
Investment income recognized in net earnings (9,046) (6,438)
Other 3,007 (60)
Change in non-cash working capital (7,742) 2,155
Cash generated from operations before income taxes and interest $ 354,948 $ 213,836
Income taxes refunded (paid) (2,234) (116)
Interest paid (91) (75)
Interest received 8,170 5,735
Cash generated from operating activities $ 360,793 $ 219,380
Financing activities
Share purchase options exercised 2,506 3,816
Lease payments (122) (148)
Cash generated from financing activities $ 2,384 $ 3,668
Investing activities
Mineral stream interests $ (95,740) $ (450,902)
Mineral royalty interest - (11,947)
Acquisition of long-term investments (3) (751)
Dividends received 239 700
Other (260) (596)
Cash used for investing activities $ (95,764) $ (463,496)
Effect of exchange rate changes on cash and cash equivalents $ 2 $ 30
Increase (decrease) in cash and cash equivalents $ 267,415 $ (240,418)
Cash and cash equivalents, beginning of period 818,166 546,527
Cash and cash equivalents, end of period $ 1,085,581 $ 306,109
Summary of Units Produced
Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
Gold ounces produced ²
Salobo 71,384 84,291 62,689 63,225 61,622 71,778 69,045 54,804
Sudbury (3) 4,891 5,259 3,593 4,477 5,618 5,823 3,857 5,818
Constancia 4,877 18,180 10,446 6,086 13,897 22,292 19,003 7,444
San Dimas (4) 8,416 7,263 6,882 7,089 7,542 10,024 9,995 11,166
Stillwater (5) 1,339 2,166 2,247 2,099 2,637 2,341 2,454 2,017
Other
Marmato 757 622 648 584 623 668 673 639
Blackwater 1,017 - - - - - - -
Minto (6) - - - - - - - 1,292
Total Other 1,774 622 648 584 623 668 673 1,931
Total gold ounces produced 92,681 117,781 86,505 83,560 91,939 112,926 105,027 83,180
Silver ounces produced (2)
Peñasquito (7) 1,754 2,465 1,785 2,263 2,643 1,036 - 1,744
Antamina 1,087 947 925 992 806 1,030 894 984
Constancia 555 969 648 451 640 836 697 420
Other
Los Filos 37 29 26 27 48 26 32 41
Zinkgruvan 638 637 537 699 641 510 785 374
Neves-Corvo 445 494 425 432 524 573 486 407
Aljustrel (8) - - - - - - 327 279
Cozamin 174 192 185 177 173 185 165 184
Marmato 8 7 7 6 7 10 11 7
Minto (6) - - - - - - - 14
Blackwater 35 - - - - - - -
Total Other 1,337 1,359 1,180 1,341 1,393 1,304 1,806 1,306
Total silver ounces produced 4,733 5,740 4,538 5,047 5,482 4,206 3,397 4,454
Palladium ounces produced ²
Stillwater (5) 2,661 2,797 4,034 4,338 4,463 4,209 4,006 3,880
Cobalt pounds produced ²
Voisey's Bay 540 393 397 259 240 215 183 152
GEOs produced (9) 151,065 187,078 142,402 144,720 158,072 164,111 146,631 136,773
Average payable rate (2)
Gold 95.0% 95.3% 95.0% 95.0% 94.7% 95.1% 95.4% 95.1%
Silver 86.1% 84.2% 83.9% 84.3% 84.5% 83.0% 78.4% 83.7%
Palladium 96.4% 97.5% 98.4% 97.3% 97.8% 98.0% 94.1% 94.1%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (9) 91.8% 91.3% 90.9% 90.7% 90.6% 91.6% 90.8% 90.8%
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures and payable rates are based on information
provided by the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where other
information is not available. Certain production figures and payable rates may
be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten
gold interests.
4) Under the terms of the San Dimas PMPA, the Company is entitled to an
amount equal to 25% of the payable gold production plus an additional amount
of gold equal to 25% of the payable silver production converted to gold at a
fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the
average gold to silver price ratio decreases to less than 50:1 or increases to
more than 90:1 for a period of 6 months or more, then the "70" shall be
revised to "50" or "90", as the case may be, until such time as the average
gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or
more in which event the "70" shall be reinstated. For reference, attributable
silver production from prior periods is as follows: Q1 2025 - 340,000 ounces;
Q4 2024 - 295,000 ounces; Q3 2024 - 262,000 ounces; Q2 2024 - 285,000 ounces;
Q1 2024 - 291,000 ounces; Q4 2023 - 378,000 ounces; Q3 2023 - 387,000 ounces;
Q2 2023 - 423,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests. On September 12, 2024, Sibanye Stillwater ("Sibanye") announced
that as a result of low palladium prices it was placing the Stillwater West
operations into care and maintenance, while using Stillwater East and East
Boulder operations to improve efficiencies that could get Stillwater West back
to production as prices permit.
6) On May 13, 2023, Minto Metals Corp. announced the suspension of
operations at the Minto mine.
7) There was a temporary suspension of operations at Peñasquito due to a
labour strike which ran from June 7, 2023 to October 13, 2023.
8) On September 12, 2023, it was announced that the production of the zinc
and lead concentrates at the Aljustrel mine will be halted from September 24,
2023 until the third quarter of 2025.
9) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,600 per ounce gold; $30.00 per ounce
silver; $950 per ounce palladium; and $13.50 per pound cobalt; consistent with
those used in estimating the Company's production guidance for
2025.
Summary of Units Sold
Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023
Gold ounces sold
Salobo 83,809 55,170 58,101 54,962 56,841 76,656 44,444 46,030
Sudbury (2) 5,632 4,048 2,495 5,679 4,129 5,011 4,836 4,775
Constancia 9,788 17,873 5,186 6,640 20,123 19,925 12,399 9,619
San Dimas 8,962 6,990 7,022 6,801 7,933 10,472 9,695 11,354
Stillwater (3) 1,947 2,410 1,635 2,628 2,355 2,314 1,985 2,195
Other
Marmato 737 650 550 616 638 633 792 467
777 - - - - - - 275 153
Minto - - - - - - - 701
Blackwater 110 - - - - - - -
Santo Domingo (4) 312 312 447 - - - - -
El Domo (4) - 209 258 - - - - -
Total Other 1,159 1,171 1,255 616 638 633 1,067 1,321
Total gold ounces sold 111,297 87,662 75,694 77,326 92,019 115,011 74,426 75,294
Silver ounces sold
Peñasquito 1,976 1,852 1,667 1,482 1,839 442 453 1,913
Antamina 884 858 989 917 762 1,091 794 963
Constancia 730 797 366 422 726 665 435 674
Other
Los Filos 57 29 26 24 44 24 30 37
Zinkgruvan 446 452 488 597 297 449 714 370
Neves-Corvo 218 154 185 216 243 268 245 132
Aljustrel - - - - 1 86 142 182
Cozamin 164 158 148 158 147 141 139 150
Marmato 8 7 6 7 8 9 11 7
Minto - - - - - - - 7
777 - - - - - - 2 2
Total Other 893 800 853 1,002 740 977 1,283 887
Total silver ounces sold 4,483 4,307 3,875 3,823 4,067 3,175 2,965 4,437
Palladium ounces sold
Stillwater (3) 2,457 4,434 3,761 4,301 4,774 3,339 4,242 3,392
Cobalt pounds sold
Voisey's Bay 265 485 88 88 309 288 198 265
GEOs sold (5) 165,297 141,495 122,242 123,462 142,294 154,355 111,218 129,102
Cumulative payable units PBND (6)
Gold ounces 96,702 119,644 94,578 87,350 85,259 90,237 97,860 72,061
Silver ounces 2,853 3,260 2,733 2,801 2,368 1,802 1,486 1,790
Palladium ounces 4,596 4,439 6,186 6,018 6,198 6,666 5,607 6,122
Cobalt pounds 917 678 796 513 360 356 377 251
GEO (5) 136,058 162,402 132,500 124,532 116,716 115,316 119,013 96,249
Inventory on hand
Cobalt pounds - - - - - 88 155 310
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten
gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium
interests.
4) The ounces sold under Santo Domingo and El Domo relate to ounces
received due to the delay ounce provision as per the respective PMPA. Please
see the Company's MD&A for more information.
5) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,600 per ounce gold; $30.00 per ounce
silver; $950 per ounce palladium; and $13.50 per pound cobalt; consistent with
those used in estimating the Company's production guidance for 2025.
6) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended March 31, 2025
Units Units Average Average Average Sales Net Cash Flow Total
Produced²
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit) (4)
Per Unit)
Gold
Salobo 71,384 83,809 $ 2,873 $ 429 $ 378 $ 240,804 $ 173,171 $ 204,863 $ 2,563,794
Sudbury (5) 4,891 5,632 2,862 400 1,326 16,118 6,398 13,850 234,084
Constancia 4,877 9,788 2,873 425 323 28,123 20,808 23,967 61,167
San Dimas 8,416 8,962 2,873 637 290 25,751 17,445 20,043 133,883
Stillwater 1,339 1,947 2,873 497 421 5,594 3,807 4,626 206,641
Other (6) 1,774 1,159 2,853 419 1,139 3,306 1,501 2,821 1,005,729
92,681 111,297 $ 2,872 $ 445 $ 423 $ 319,696 $ 223,130 $ 270,170 $ 4,205,298
Silver
Peñasquito 1,754 1,976 $ 32.03 $ 4.56 $ 4.86 $ 63,271 $ 44,666 $ 54,262 $ 234,868
Antamina 1,087 884 32.03 6.41 8.46 28,311 15,169 22,647 483,292
Constancia 555 730 32.03 6.26 6.10 23,375 14,351 18,806 160,923
Other (7) 1,337 893 33.55 4.42 6.14 29,980 20,545 23,069 727,167
4,733 4,483 $ 32.33 $ 5.17 $ 6.03 $ 144,937 $ 94,731 $ 118,784 $ 1,606,250
Palladium
Stillwater 2,661 2,457 $ 965 $ 172 $ 429 $ 2,372 $ 895 $ 1,949 $ 212,125
Platreef - - n.a. n.a. n.a. - - - 78,814
2,661 2,457 $ 965 $ 172 $ 429 $ 2,372 $ 895 $ 1,949 $ 290,939
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - 57,584
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,035
Cobalt
Voisey's Bay 540 265 $ 12.88 $ 2.46 $ 9.18 $ 3,406 $ 327 $ 3,962 $ 228,260
Operating results $ 470,411 $ 319,083 $ 394,865 $ 6,397,782
Other
General and administrative $ (13,525) $ (19,379)
Share based compensation (12,181) (17,209)
Donations and community investments (2,693) (2,879)
Finance costs (1,441) (1,161)
Other 7,520 8,790
Income tax (42,779) (2,234)
Total other $ (65,099) $ (34,072) $ 1,341,515
$ 253,984 $ 360,793 $ 7,739,297
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-GAAP measure (iii) at the end of this press
release.
4) Includes the non-cash per ounce cost of sale associated with delay
ounces. Please see the Company's MD&A for more information.
5) Please see page 3 of this press release for more information.
6) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
7) Other gold interests comprised of the operating Marmato and Blackwater
gold interests as well as the non-operating Copper World, Santo Domingo,
Fenix, El Domo, Marathon, Goose, Cangrejos, Platreef, Curraghinalt, Kudz Ze
Kayah, Koné and Kurmuk gold interests. Other includes ounces sold that were
received under the delay ounce provisions of the Santo Domingo PMPA. Please
see the Company's MD&A for more information.
8) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato, Cozamin and Blackwater silver interests as
well as the non-operating Stratoni, Aljustrel, Pascua-Lama, Copper World,
Navidad, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
Three Months Ended March 31, 2024
Units Units Average Average Average Sales Net Cash Flow Total
Produced²
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 61,622 56,841 $ 2,073 $ 425 $ 393 $ 117,851 $ 71,396 $ 94,050 $ 2,659,099
Sudbury (4) 5,618 4,129 2,049 400 1,145 8,461 2,081 6,814 257,757
Constancia 13,897 20,123 2,073 420 316 41,723 26,910 33,263 73,912
San Dimas 7,542 7,933 2,073 631 279 16,448 9,237 11,445 142,512
Stillwater 2,637 2,355 2,073 372 510 4,883 2,806 4,008 210,267
Other (5) 623 638 2,073 374 527 1,323 748 1,084 892,983
91,939 92,019 $ 2,072 $ 439 $ 404 $ 190,689 $ 113,178 $ 150,664 $ 4,236,530
Silver
Peñasquito 2,643 1,839 $ 23.74 $ 4.50 $ 4.06 $ 43,650 $ 27,901 $ 35,375 $ 268,758
Antamina 806 762 23.74 4.68 7.06 18,088 9,147 14,523 514,154
Constancia 640 726 23.74 6.20 6.24 17,236 8,200 12,734 175,049
Other (6) 1,393 740 23.89 4.15 4.16 17,684 11,539 15,819 603,933
5,482 4,067 $ 23.77 $ 4.77 $ 5.03 $ 96,658 $ 56,787 $ 78,451 $ 1,561,894
Palladium
Stillwater 4,463 4,774 $ 980 $ 182 $ 445 $ 4,677 $ 1,683 $ 3,808 $ 218,542
Platreef - - n.a. n.a. n.a. - - - 78,786
4,463 4,774 $ 980 $ 182 $ 445 $ 4,677 $ 1,683 $ 3,808 $ 297,328
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - 57,564
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,015
Cobalt
Voisey's Bay 240 309 $ 15.49 $ 2.96 $ 12.77 $ 4,782 $ (73) $ 7,006 $ 348,000
Operating results $ 296,806 $ 171,575 $ 239,929 $ 6,510,767
Other
General and administrative $ (10,464) $ (15,958)
Share based compensation (1,281) (11,129)
Donations and community investments (1,570) (1,373)
Finance costs (1,442) (1,125)
Other 7,196 9,152
Income tax 27 (116)
Total other $ (7,534) $ (20,549) $ 669,688
$ 164,041 $ 219,380 $ 7,180,455
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-GAAP measure (iii) at the end of this press
release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
5) Other gold interests are comprised of the operating Marmato gold
interest as well as the non-operating Minto, Copper World, Santo Domingo,
Fenix, Blackwater, El Domo, Marathon, Goose, Cangrejos, Platreef, Curraghinalt
and Kudz Ze Kayah gold interests.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the
non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World, Navidad,
Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
Comparative Results of Operations on a GEO Basis
Q1 2025 Q1 2024 Change Change
GEO Production (1, 2) 151,065 158,072 (7,007) (4.4)%
GEO Sales (2) 165,297 142,294 23,003 16.2 %
Average price per GEO sold (2) $ 2,846 $ 2,086 $ 760 36.4 %
Revenue $ 470,411 $ 296,806 $ 173,605 58.5 %
Cost of sales, excluding depletion $ 74,635 $ 61,555 $ (13,080) (21.2)%
Depletion 76,693 63,676 (13,017) (20.4)%
Cost of Sales $ 151,328 $ 125,231 $ (26,097) (20.8)%
Gross Margin $ 319,083 $ 171,575 $ 147,508 86.0 %
General and administrative 13,525 10,464 (3,061) (29.3)%
Share based compensation 12,181 1,281 (10,900) (850.9)%
Donations and community investments 2,693 1,570 (1,123) (71.5)%
Earnings from Operations $ 290,684 $ 158,260 $ 132,424 83.7 %
Other income (expense) 7,520 7,196 324 4.5 %
Earnings before finance costs and income taxes $ 298,204 $ 165,456 $ 132,748 80.2 %
Finance costs 1,441 1,442 1 0.1 %
Earnings before income taxes $ 296,763 $ 164,014 $ 132,749 80.9 %
Income tax expense (recovery) 42,779 (27) (42,806) n.a.
Net earnings $ 253,984 $ 164,041 $ 89,943 54.8 %
1) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
2) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,600 per ounce gold; $30.00 per ounce
silver; $950 per ounce palladium; and $13.50 per pound cobalt; consistent with
those used in estimating the Company's production guidance for 2025.
Non-GAAP Measures
Wheaton has included, throughout this document, certain non-GAAP performance
measures, including (i) adjusted net earnings and adjusted net earnings per
share; (ii) operating cash flow per share (basic and diluted); (iii) average
cash costs of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis; and (iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other one-time
(income) expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery) recognized in the
Statements of Shareholders' Equity and OCI, respectively. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS
Accounting Standards, management and certain investors use this information to
evaluate the Company's performance.
The following table provides a reconciliation of adjusted net earnings and
adjusted net earnings per share (basic and diluted).
Three Months Ended
March 31
(in thousands, except for per share amounts) 2025 2024
Net earnings $ 253,984 $ 164,041
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held (623) (183)
Deferred income tax (expense) recovery recognized in the Statement of OCI (2,351) (96)
Other (185) (173)
Adjusted net earnings $ 250,825 $ 163,589
Divided by:
Basic weighted average number of shares outstanding 453,692 453,094
Diluted weighted average number of shares outstanding 454,428 453,666
Equals:
Adjusted earnings per share - basic $ 0.553 $ 0.361
Adjusted earnings per share - diluted $ 0.552 $ 0.361
ii. Operating cash flow per share (basic and diluted) is calculated by
dividing cash generated by operating activities by the weighted average number
of shares outstanding (basic and diluted). The Company presents operating cash
flow per share as management and certain investors use this information to
evaluate the Company's performance in comparison to other companies in the
precious metal mining industry who present results on a similar basis.
The following table provides a reconciliation of operating cash flow per share
(basic and diluted).
Three Months Ended
March 31
(in thousands, except for per share amounts) 2025 2024
Cash generated by operating activities $ 360,793 $ 219,380
Divided by:
Basic weighted average number of shares outstanding 453,692 453,094
Diluted weighted average number of shares outstanding 454,428 453,666
Equals:
Operating cash flow per share - basic $ 0.795 $ 0.484
Operating cash flow per share - diluted $ 0.794 $ 0.484
iii. Average cash cost of gold, silver and palladium on a per ounce basis
and cobalt on a per pound basis is calculated by dividing the total cost of
sales, less depletion and cost of sales related to delay ounces, by the ounces
or pounds sold. In the precious metal mining industry, this is a common
performance measure but does not have any standardized meaning prescribed by
IFRS Accounting Standards. In addition to conventional measures prepared in
accordance with IFRS Accounting Standards, management and certain investors
use this information to evaluate the Company's performance and ability to
generate cash flow.
The following table provides a calculation of average cash cost of gold,
silver and palladium on a per ounce basis and cobalt on a per pound basis.
Three Months Ended
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2025 2024
Cost of sales $ 151,328 $ 125,231
Less: depletion (76,693) (63,676)
Less: cost of sales related to delay ounces (1) (864) -
Cash cost of sales $ 73,771 $ 61,555
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 49,512 $ 40,362
Total cash cost of silver sold 23,186 19,411
Total cash cost of palladium sold 423 869
Total cash cost of cobalt sold (2) 650 913
Total cash cost of sales $ 73,771 $ 61,555
Divided by:
Total gold ounces sold 111,297 92,019
Total silver ounces sold 4,483 4,067
Total palladium ounces sold 2,457 4,774
Total cobalt pounds sold 265 309
Equals:
Average cash cost of gold (per ounce) $ 445 $ 439
Average cash cost of silver (per ounce) $ 5.17 $ 4.77
Average cash cost of palladium (per ounce) $ 172 $ 182
Average cash cost of cobalt (per pound) $ 2.46 $ 2.96
1) The cost of sales related to delay ounces is a non-cash expense. Please
see the Company's MD&A for more information.
iv. Cash operating margin is calculated by adding back depletion and the
cost of sales related to delay ounces to the gross margin. Cash operating
margin on a per ounce or per pound basis is calculated by dividing the cash
operating margin by the number of ounces or pounds sold during the period. The
Company presents cash operating margin as management and certain investors use
this information to evaluate the Company's performance in comparison to other
companies in the precious metal mining industry who present results on a
similar basis as well as to evaluate the Company's ability to generate cash
flow.
The following table provides a reconciliation of cash operating margin.
Three Months Ended
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2025 2024
Gross margin $ 319,083 $ 171,575
Add back: depletion 76,693 63,676
Add back: cost of sales related to delay ounces (1) 864 -
Cash operating margin $ 396,640 $ 235,251
Cash operating margin is comprised of:
Total cash operating margin of gold sold $ 270,184 $ 150,327
Total cash operating margin of silver sold 121,751 77,247
Total cash operating margin of palladium sold 1,949 3,808
Total cash operating margin of cobalt sold 2,756 3,869
Total cash operating margin $ 396,640 $ 235,251
Divided by:
Total gold ounces sold 111,297 92,019
Total silver ounces sold 4,483 4,067
Total palladium ounces sold 2,457 4,774
Total cobalt pounds sold 265 309
Equals:
Cash operating margin per gold ounce sold $ 2,427 $ 1,633
Cash operating margin per silver ounce sold $ 27.16 $ 19.00
Cash operating margin per palladium ounce sold $ 793 $ 798
Cash operating margin per cobalt pound sold $ 10.42 $ 12.53
1) The cost of sales related to delay ounces is a non-cash expense. Please
see the Company's MD&A for more information.
These non-GAAP measures do not have any standardized meaning prescribed by
IFRS Accounting Standards, and other companies may calculate these measures
differently. The presentation of these non-GAAP measures is intended to
provide additional information and should not be considered in isolation or as
a substitute for measures of performance prepared in accordance with IFRS
Accounting Standards. For more detailed information, please refer to Wheaton's
MD&A available on the Company's website at www.wheatonpm.com and posted on
SEDAR+ at www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release 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 concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's PMPA counterparties. Forward-looking statements,
which are all statements other than statements of historical fact, include,
but are not limited to, statements with respect to:
· payment by the Company of $625 million to Montage and the
satisfaction of each party's obligations in accordance with the Koné Gold
PMPA;
· the receipt by the Company of gold production in respect of the
Koné Gold Project;
· the advance by the Company, and the repayment by Montage, of up
to $75 million to Montage in connection with the Facility;
· payment by the Company of $125 million to Rio2 and the
satisfaction of each party's obligations in accordance with the Fenix PMPA (as
amended);
· the receipt by the Company of gold production in respect of the
Fenix Gold Project;
· the advance by the Company, and the repayment by Rio2, of up to
$20 million to Rio2 in connection with the Rio2 standby loan facility;
· the future price of commodities;
· the estimation of future production from the mineral stream
interests and mineral royalty interests currently owned by the Company (the
"Mining Operations") (including in the estimation of production, mill
throughput, grades, recoveries and exploration potential);
· the estimation of mineral reserves and mineral resources
(including the estimation of reserve conversion rates and the realization of
such estimations);
· the commencement, timing and achievement of construction,
expansion or improvement projects by Wheaton's PMPA counterparties at Mining
Operations;
· the payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance with PMPAs
and the receipt by the Company of precious metals and cobalt production or
other payments in respect of the applicable Mining Operations under PMPAs;
· the ability of Wheaton's PMPA counterparties to comply with the
terms of a PMPA (including as a result of the business, mining operations and
performance of Wheaton's PMPA counterparties) and the potential impacts of
such on Wheaton;
· future payments by the Company in accordance with PMPAs,
including any acceleration of payments;
· the costs of future production;
· the estimation of produced but not yet delivered ounces;
· the future sales of Common Shares under, the amount of net
proceeds from, and the use of the net proceeds from, the at-the-market equity
program;
· continued listing of the Common Shares on the LSE, NYSE and TSX;
· any statements as to future dividends;
· the ability to fund outstanding commitments and the ability to
continue to acquire accretive PMPAs;
· projected increases to Wheaton's production and cash flow
profile;
· projected changes to Wheaton's production mix;
· the ability of Wheaton's PMPA counterparties to comply with the
terms of any other obligations under agreements with the Company;
· the ability to sell precious metals and cobalt production;
· confidence in the Company's business structure;
· the Company's assessment of taxes payable, including taxes
payable under the GMT, and the impact of the CRA Settlement, and the Company's
ability to pay its taxes;
· possible CRA domestic audits for taxation years subsequent to
2016 and international audits;
· the Company's assessment of the impact of any tax reassessments;
· the Company's intention to file future tax returns in a manner
consistent with the CRA Settlement;
· the Company's climate change and environmental commitments; and
· assessments of the impact and resolution of various legal and
tax matters, including but not limited to audits.
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", "projects",
"intends", "anticipates" or "does not anticipate", or "believes", "potential",
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 Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to:
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Koné Gold PMPA;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Facility;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Fenix PMPA;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Rio2 standby loan facility;
· risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt production
at acceptable prices or at all);
· risks related to the Mining Operations (including fluctuations in
the price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated with
exploration, development, operating, expansion and improvement at the Mining
Operations, environmental and economic risks of the Mining Operations, and
changes in project parameters as Mining Operations plans continue to be
refined);
· absence of control over the Mining Operations and having to rely
on the accuracy of the public disclosure and other information Wheaton
receives from the owners and operators of the Mining Operations as the basis
for its analyses, forecasts and assessments relating to its own business;
· risks related to the uncertainty in the accuracy of mineral
reserve and mineral resource estimation;
· risks related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the ability of the
companies with which the Company has PMPAs to perform their obligations under
those PMPAs in the event of a material adverse effect on the results of
operations, financial condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration potential;
· risks relating to production estimates from Mining Operations,
including anticipated timing of the commencement of production by certain
Mining Operations;
· Wheaton's interpretation of, or compliance with, or application
of, tax laws and regulations or accounting policies and rules, being found to
be incorrect or the tax impact to the Company's business operations being
materially different than currently contemplated, , or the ability of the
Company to pay such taxes as and when due;
· any challenge or reassessment by the CRA of the Company's tax
filings being successful and the potential negative impact to the Company's
previous and future tax filings;
· risks in assessing the impact of the CRA Settlement (including
whether there will be any material change in the Company's facts or change in
law or jurisprudence);
· risks related to any potential amendments to Canada's transfer
pricing rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6, 2023;
· risks relating to Wheaton's interpretation of, compliance with,
or application of the GMT, including Canada's GMTA and the legislation enacted
in Luxembourg, that applies to the income of the Company's subsidiaries for
fiscal years beginning on or after December 31, 2023;
· counterparty credit and liquidity risks;
· mine operator and counterparty concentration risks;
· indebtedness and guarantees risks;
· hedging risk;
· competition in the streaming industry risk;
· risks relating to security over underlying assets;
· risks relating to third-party PMPAs;
· risks relating to revenue from royalty interests;
· risks related to Wheaton's acquisition strategy;
· risks relating to third-party rights under PMPAs;
· risks relating to future financings and security issuances;
· risks relating to unknown defects and impairments;
· risks related to governmental regulations;
· risks related to international operations of Wheaton and the
Mining Operations;
· risks relating to exploration, development, operating, expansions
and improvements at the Mining Operations;
· risks related to environmental regulations;
· the ability of Wheaton and the Mining Operations to obtain and
maintain necessary licenses, permits, approvals and rulings;
· the ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting requirements;
· lack of suitable supplies, infrastructure and employees to
support the Mining Operations;
· risks related to underinsured Mining Operations;
· inability to replace and expand mineral reserves, including
anticipated timing of the commencement of production by certain Mining
Operations (including increases in production, estimated grades and
recoveries);
· uncertainties related to title and indigenous rights with respect
to the mineral properties of the Mining Operations;
· the ability of Wheaton and the Mining Operations to obtain
adequate financing;
· the ability of the Mining Operations to complete permitting,
construction, development and expansion;
· challenges related to global financial conditions;
· risks associated with environmental, social and governance
matters;
· risks related to fluctuations in commodity prices of metals
produced from the Mining Operations other than precious metals or cobalt;
· risks related to claims and legal proceedings against Wheaton or
the Mining Operations;
· risks related to the market price of the Common Shares of
Wheaton;
· the ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and experienced
personnel;
· risks related to interest rates;
· risks related to the declaration, timing and payment of
dividends;
· risks related to access to confidential information regarding
Mining Operations;
· risks associated with multiple listings of the Common Shares on
the LSE, NYSE and TSX;
· risks associated with a possible suspension of trading of Common
Shares;
· risks associated with the sale of Common Shares under the
at-the-market equity program, including the amount of any net proceeds from
such offering of Common Shares and the use of any such proceeds;
· equity price risks related to Wheaton's holding of long‑term
investments in other companies;
· risks relating to activist shareholders;
· risks relating to reputational damage;
· risks relating to expression of views by industry analysts;
· risks related to the impacts of climate change and the transition
to a low-carbon economy;
· risks associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining Operations;
· risks related to ensuring the security and safety of information
systems, including cyber security risks;
· risks relating to generative artificial intelligence;
· risks relating to compliance with anti-corruption and
anti-bribery laws;
· risks relating to corporate governance and public disclosure
compliance;
· risks of significant impacts on Wheaton or the Mining Operations
as a result of an epidemic or pandemic;
· risks related to the adequacy of internal control over financial
reporting; and
· other risks discussed in the section entitled "Description of the
Business - Risk Factors" in Wheaton's Annual Information Form available on
SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) and Wheaton's Form 40-F
for the year ended December 31, 2024 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management currently
believes to be reasonable, including (without limitation):
· the payment of $625 million to Montage and the satisfaction of
each party's obligations in accordance with the terms of the Koné Gold PMPA;
· the advance by the Company of up to $75 million to Montage in
connection with the Facility and the receipt by the Company of all amounts
owing under the Facility, including, but not limited to, interest;
· the payment of $125 million to Rio2 and the satisfaction of each
party's obligations in accordance with the terms of the Fenix PMPA;
· the advance by the Company of up to $20 million to Rio2 in
connection with the Rio2 standby loan facility and the receipt by WPMI of all
amounts owing under the Rio2 standby loan facility, including, but not limited
to, interest;
· that there will be no material adverse change in the market price
of commodities;
· that the Mining Operations will continue to operate and the
mining projects will be completed in accordance with public statements and
achieve their stated production estimates;
· that the mineral reserves and mineral resource estimates from
Mining Operations (including reserve conversion rates) are accurate;
· that public disclosure and other information Wheaton receives
from the owners and operators of the Mining Operations is accurate and
complete;
· that the production estimates from Mining Operations are
accurate;
· that each party will satisfy their obligations in accordance with
the PMPAs;
· that Wheaton will continue to be able to fund or obtain funding
for outstanding commitments;
· that Wheaton will be able to source and obtain accretive PMPAs;
· that the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;
· that Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;
· that expectations regarding the resolution of legal and tax
matters will be achieved (including CRA audits involving the Company);
· that Wheaton has properly considered the application of Canadian
tax laws to its structure and operations and that Wheaton will be able to
pay taxes when due;
· that Wheaton has filed its tax returns and paid applicable taxes
in compliance with Canadian tax laws;
· that Wheaton's application of the CRA Settlement is accurate
(including the Company's assessment that there has been no material change in
the Company's facts or change in law or jurisprudence);
· that Wheaton's assessment of the tax exposure and impact on the
Company and its subsidiaries of the implementation of a 15% global minimum tax
is accurate;
· that any sale of Common Shares under the at-the-market equity
program will not have a significant impact on the market price of the Common
Shares and that the net proceeds of sales of Common Shares, if any, will be
used as anticipated;
· that the trading of the Common Shares will not be adversely
affected by the differences in liquidity, settlement and clearing systems as a
result of multiple listings of the Common Shares on the LSE, the TSX and the
NYSE;
· that the trading of the Company's Common Shares will not be
suspended;
· the estimate of the recoverable amount for any PMPA with an
indicator of impairment;
· that neither Wheaton nor the Mining Operations will suffer
significant impacts as a result of an epidemic or pandemic; and
· such other assumptions and factors as set out in the Disclosure.
There can be no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the forward-looking
statements are realized or substantially realized, there can be no assurance
that they will have the expected consequences to, or effects on, Wheaton.
Readers should not place undue reliance on forward-looking statements and are
cautioned that actual outcomes may vary. The forward-looking statements
included herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and operational
performance and may not be appropriate for other purposes. Any forward-looking
statement speaks only as of the date on which it is made, reflects Wheaton's
management's current beliefs based on current information and will not be
updated except in accordance with applicable securities laws. Although Wheaton
has attempted to identify important factors that could cause actual results,
level of activity, performance or achievements to differ materially from those
contained in forward‑looking statements, there may be other factors that
cause results, level of activity, performance or achievements not to be as
anticipated, estimated or intended.
Cautionary Language Regarding Reserves and Resources
For further information on Mineral Reserves and Mineral Resources and on
Wheaton more generally, readers should refer to Wheaton's Annual Information
Form for the year ended December 31, 2024, which was filed on March 31, 2025
and other continuous disclosure documents filed by Wheaton since January 1,
2025, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and
Mineral Resources are subject to the qualifications and notes set forth
therein. Mineral Resources, which are not Mineral Reserves, do not have
demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured,
Indicated and Inferred Resources: The information contained herein has been
prepared in accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States securities
laws. The Company reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral resources in
accordance with Canadian reporting requirements which are governed by, and
utilize definitions required by, Canadian National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM
Council, as amended (the "CIM Standards"). These definitions differ from the
definitions adopted by the United States Securities and Exchange Commission
("SEC") under the United States Securities Act of 1933, as amended (the
"Securities Act") which are applicable to U.S. companies. Accordingly, there
is no assurance any mineral reserves or mineral resources that the Company may
report as "proven mineral reserves", "probable mineral reserves", "measured
mineral resources", "indicated mineral resources" and "inferred mineral
resources" under NI 43-101 would be the same had the Company prepared the
reserve or resource estimates under the standards adopted by the SEC.
Accordingly, information contained herein that describes Wheaton's mineral
deposits may not be comparable to similar information made public by U.S.
companies subject to reporting and disclosure requirements under the United
States federal securities laws and the rules and regulations thereunder.
United States investors are urged to consider closely the disclosure in
Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from
https://www.sec.gov/edgar.shtml (https://www.sec.gov/edgar.shtml) .
End Notes
(1)Please refer to disclosure on non-IFRS measures in this press release.
Details of the dividend can be found in the Wheaton's news release dated May
8, 2025, titled "Wheaton Precious Metals Announces Increase to Quarterly
Dividend."
(2)Statements made in this section contain forward-looking information with
respect to forecast production, production growth, funding outstanding
commitments, continuing to acquire accretive mineral stream interests and the
commencement, timing and achievement of construction, expansion or improvement
projects and readers are cautioned that actual outcomes may vary. Please see
"Cautionary Note Regarding Forward-Looking Statements" for material risks,
assumptions and important disclosure associated with this information.
(3)Gold equivalent forecast production for 2025 and the longer-term outlook
are based on the following updated commodity price assumptions: $2,600 per
ounce gold, $30 per ounce silver, $950 per ounce palladium, $950 per ounce of
platinum and $13.50 per pound cobalt.
(4)Source: Company reports S&P Capital IQ estimates of 2024 byproduct cost
curves for gold, zinc/lead, copper, PGM, nickel & silver mines. Portfolio
mine life based on recoverable reserves and resources as of Dec 31, 2024 and
2024 actual mill throughput and is weighted by individual reserve and resource
category.
(5)Total streaming and royalty agreements relate to precious metals purchase
agreements for the purchase of precious metals and cobalt relating to 18
mining assets which are currently operating, 24 which are at various stages of
development and 4 of which have been placed in care and maintenance or have
been closed.
(6)Further details for long-term guidance can be found in the Wheaton news
release dated February 18, 2025, titled "Wheaton Precious Metals Exceeds 2024
Production Guidance and Provides 2025 and Long-Term Outlook, Projecting 40%
Growth in the Next Five Years."
(7)Wheaton's long-term production outlook is based on information available as
of February 18, 2025, the date of publication. The Company will provide
updated longer-term guidance in normal course in the first quarter of 2026,
which will incorporate the impact of recent developments and corporate
development activities announced in 2025.
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