REG - Wheaton Precious Met - 3rd Quarter Results 2024
08/11/2024 07:00
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RNS Number : 4431L Wheaton Precious Metals Corp. 08 November 2024
November 8, 2024
Vancouver, British Columbia
Designated News Release
Third QUARTER FINANCIAL results
Wheaton Precious Metals Announces Third Quarter 2024 Results
and Record Quarterly Operating Cash Flow
"Wheaton achieved record cash flow from operations in the third quarter of
2024, underscoring the effectiveness of our business model in leveraging
rising commodity prices, with our cash operating margins increasing by over
30% relative to the third quarter of 2023. Our portfolio of operating assets
delivered solid production levels, continuing to support our annual production
guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said
Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly
following the quarter, Wheaton announced two accretive, precious metals
streaming agreements, including a new stream on Montage's Koné Project and an
amendment to the existing stream on Rio2's Fenix Project. Together, these
transactions further diversify our strategic partnerships and the geography of
our portfolio. Once ramped-up, the Koné Project is forecast to contribute
meaningful near-term production, reinforcing Wheaton's already prominent
position as a leader in the sector's growth landscape."
Solid Financial Results and Strong Balance Sheet
· Third quarter of 2024: $308 million in revenue, $254 million in
operating cash flow, $155 million in net earnings and $153 million in adjusted
net earnings 1 , and declared a quarterly dividend(1) of $0.155 per common
share.
· Balance Sheet: cash balance of $694 million, no debt, and an undrawn $2
billion revolving credit facility as at September 30, 2024 after making total
upfront cash payments of $30 million relative to mineral stream and royalty
interests in the quarter.
High Quality Asset Base
· Streaming and royalty agreements on 18 operating mines and 28
development projects(5), including the addition of the Koné project announced
subsequent to the quarter.
· 93% of attributable production from assets in the lowest half of their
respective cost curves 2 (,4).
· Attributable gold equivalent production(3) ("GEOs") of 144,200 ounces
in the third quarter of 2024 and 448,400 for the first nine months of 2024,
with quarterly production consistent with the comparable period of the prior
year, as lower production from Salobo and Constancia was largely offset by
higher production from Peñasquito.
· Average annual forecast production guidance for 2024 of 550,000 to
620,000 GEOs(3) maintained, with forecasted sector-leading growth to over
800,000 GEOs(3) by 2028, and average annual forecast attributable production
growing to over 850,000 GEOs(3) in years 2029 to 2033.
· Further de-risked forecast growth profile as construction activities
advanced at the Blackwater, Goose, Platreef, and Mineral Park projects, all of
which are expected to be producing within the next 12 months.
· Subsequent to the quarter, the Company announced two accretive precious
metals streaming agreements:
o On October 23, 2024, the Company entered into a precious metals purchase
agreement ("PMPA") with Montage Gold Corp. in respect to the Koné Gold
Project located in Côte d'Ivoire.
o On October 21, 2024, the Company amended the Fenix PMPA, increasing the
amount of attributable gold it is entitled to under the contract.
Leadership in Sustainability
· Top Rankings: One of the top-rated companies by Sustainalytics, AA
rated by MSCI, and Prime rated by ISS.
· Launch of inaugural Future of Mining Challenge, which will award
US$1 million to a winning venture to advance their technology aimed at
minimizing environmental impacts, improving efficiencies, and contributing to
climate solutions, while ensuring key resources are responsibly available for
future generations.
Operational Overview
(all figures in US dollars unless otherwise noted) Q3 2024 Q3 2023 Change YTD 2024 YTD 2023 Change
Units produced
Gold ounces 87,199 105,027 (17.0)% 262,698 261,226 0.6 %
Silver ounces 4,554 3,397 34.1 % 15,083 12,985 16.2 %
Palladium ounces 4,034 4,006 0.7 % 12,835 11,591 10.7 %
Cobalt pounds 397 183 117.6 % 896 458 95.5 %
Gold equivalent ounces (3) 144,164 147,278 (2.1)% 448,388 419,330 6.9 %
Units sold
Gold ounces 75,694 74,426 1.7 % 245,039 212,325 15.4 %
Silver ounces 3,875 2,965 30.7 % 11,765 11,151 5.5 %
Palladium ounces 3,761 4,242 (11.3)% 12,836 10,580 21.3 %
Cobalt pounds 88 198 (55.6)% 485 786 (38.3)%
Gold equivalent ounces (3) 122,715 111,935 9.6 % 389,907 350,961 11.1 %
Change in PBND and Inventory
Gold equivalent ounces (3) 9,267 21,869 12,602 17,989 20,020 2,031
Revenue $ 308,253 $ 223,137 38.1 % $ 904,123 $ 702,573 28.7 %
Net earnings $ 154,635 $ 116,371 32.9 % $ 440,993 $ 369,209 19.4 %
Per share $ 0.341 $ 0.257 32.7 % $ 0.973 $ 0.815 19.4 %
Adjusted net earnings (1) $ 152,803 $ 121,467 25.8 % $ 441,201 $ 368,481 19.7 %
Per share (1) $ 0.337 $ 0.268 25.7 % $ 0.973 $ 0.814 19.5 %
Operating cash flows $ 254,337 $ 171,103 48.6 % $ 708,110 $ 508,584 39.2 %
Per share (1) $ 0.561 $ 0.378 48.4 % $ 1.562 $ 1.123 39.1 %
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Financial Review
Revenues
Revenue in the third quarter of 2024 was $308 million (61% gold, 37% silver,
1% palladium and 1% cobalt), with the $85 million increase relative to the
prior period quarter being primarily due to a 26% increase in the average
realized gold equivalent³ price; and a 10% increase in the number of GEOs³
sold.
Revenue was $904 million in the nine months ended September 30, 2024,
representing a $202 million increase from the comparable period of the
previous year due primarily to a 16% increase in the average realized gold
equivalent³ price; and an 11% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2024 were $437 per GEO³ as
compared to $445 in the third quarter of 2023. This resulted in a cash
operating margin¹ of $2,075 per GEO³ sold, an increase of 34% as compared
with the third quarter of 2023, a result of the higher realized price per
ounce coupled with the lower average cash costs due to changes in the sales
mix.
Average cash costs¹ for the nine months ended September 30, 2024 were $434
per GEO³ as compared to $457 in the comparable period of the previous year.
This resulted in a cash operating margin¹ of $1,885 per GEO³ sold, a 22%
increase from comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the third quarter of 2024 amounted to $254 million,
with the $83 million increase due primarily to the higher gross margin.
Operating cash flows for the nine months ended September 30, 2024 amounted to
$708 million, with the $200 million increase from the comparable period of the
previous year being due primarily to the higher gross margin.
Balance Sheet (at September 30, 2024)
· Approximately $694 million of cash on hand
· During the third quarter of 2024, the Company made total upfront cash
payments of $30 million relative to the mineral stream and royalty interests
consisting of:
o $25 million relative to the Mineral Park PMPA; and
o $5 million relative to the DeLamar Royalty.
· 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.
Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD
Pillar Two model rules ("Pillar Two"), under which large multinational
entities are subject to a 15% GMT. On June 20, 2024, Canada's Global Minimum
Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two
model rules where in scope companies are subject to a 15% GMT for fiscal years
commencing on or after December 31, 2023. With the enactment of the GMTA on
June 20, 2024, the income of the Company's subsidiaries which operate in
jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the
three months ended September 30, 2024 an amount of $28 million current tax
expense associated with GMT was recorded (nine months - $78 million). GMT
accrued to December 31, 2024, is payable on or before June 30, 2026 (18 months
following year-end).
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of
attributable gold, a decrease of approximately 9% relative to the third
quarter of 2023, primarily due to lower grades, partially offset by higher
throughput. On July 25, 2024, Vale S.A. ("Vale") reported that the Salobo III
processing plant operations resumed in July, after being halted for 31 days
due to a fire on a conveyor belt. Vale confirmed that 2024 copper production
guidance of 320-355 kt has been maintained.
Antamina: In the third quarter of 2024, Antamina produced 0.9 million ounces
of attributable silver, an increase of approximately 3% relative to the third
quarter of 2023 primarily due to higher recoveries, partially offset by lower
throughput.
Peñasquito: In the third quarter of 2024, Peñasquito produced 1.8 million
ounces of attributable silver, with Peñasquito producing no ounces in the
third quarter of 2023 as a result of a labour strike which lasted from June 7
to October 13, 2023.
Constancia: In the third quarter of 2024, Constancia produced 0.6 million
ounces of attributable silver and 10,400 ounces of attributable gold, a
decrease of approximately 7% and 45%, respectively, relative to the third
quarter of 2023. The decrease in silver production was primarily due to lower
recoveries. The decrease in gold production was primarily the result of lower
gold grades due largely to the planned stripping activity in the Pampacancha
pit, which commenced in the second quarter, and continued throughout the third
quarter. On August 13, 2024, Hudbay Minerals Inc. ("Hudbay") reported that the
stripping program for the next mining phase at Pampacancha was underway and
expected to lead to significantly higher copper and gold grades in the fourth
quarter of 2024.
Sudbury: In the third quarter of 2024, Vale's Sudbury mines produced 4,300
ounces of attributable gold, an increase of approximately 11% relative to the
third quarter of 2023, due to higher throughput.
Stillwater: In the third quarter of 2024, the Stillwater mines produced 2,200
ounces of attributable gold and 4,000 ounces of attributable palladium, a
decrease of approximately 8% for gold relative to the third quarter of 2023,
due primarily to lower recoveries, while palladium production was virtually
unchanged. 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 Stillwater East and East Boulder
operations continue to operate. Sibanye reports that Stillwater West could
return to production as prices permit. Based on Sibanye's Q3 MD&A, the
Company's management estimates that with the Stillwater West operations in
care and maintenance, 2025 production relative to the Stillwater PMPA will be
approximately 40% to 45% lower than historical levels.
Voisey's Bay: In the third quarter of 2024, the Voisey's Bay mine produced
397,000 pounds of attributable cobalt, an increase of approximately 118%
relative to the third quarter of 2023, as the transitional period between the
depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's
Bay underground mine nears completion. Vale reported that physical completion
of the Voisey's Bay underground mine extension was 99% at the end of the third
quarter, with all surface construction completed and the commissioning of the
Reid Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material
Handling system achieved mechanical completion in early October and Vale
indicated that the focus is now on commissioning, with handover to Operations
within 2024. Demobilization efforts are ongoing, with Surface contractors
already fully demobilized.
Other Silver: In the third quarter of 2024, total Other Silver attributable
production was 1.2 million ounces, a decrease of approximately 34% relative to
the third quarter of 2023. The decrease from the comparable period of the
prior year is primarily due to the temporary suspension of attributable ore
mined at Aljustrel commencing September 24, 2023.
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
Blackwater Project: On November 6, 2024, Artemis Gold Inc., ("Artemis")
announced that overall construction was over 95% complete as of September 30,
2024 and first gold pour is targeted for late Q4 2024. Construction of the
tailings storage facility is ready to allow for the commencement of
commissioning of the plant. Artemis reported that the initial mining fleet has
been commissioned and pre-stripping of the mine, as well as the construction
of haul roads are well advanced.
Platreef Project: On October 30, 2024, Ivanhoe Mines ("Ivanhoe") reported that
construction of the Phase 1 concentrator was completed on schedule early in
the third quarter. First ore is scheduled for the second half of 2025, while
underground development prioritizes development to accelerate Phase 2. Ivanhoe
also states that work continues on the updated feasibility study to accelerate
the startup of Phase 2, as well as the preliminary economic assessment of the
previously announced Phase 3 expansion to 10 Mtpa processing capacity. Both
studies are now expected to be published in Q1 2025.
Goose Project: On November 6 2024, B2Gold Corp. ("B2Gold") announced that all
planned construction year to date in 2024 has been completed. Project
construction and development continues to progress on track for 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. The 2024 sealift was
completed successfully on September 30, 2024, with ten ships and one barge
having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters
of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice
Road campaign.
Marmato Mine: On July 16, 2024, Aris Mining Corporation ("Aris") reported that
the Lower Mine project is on track for first gold pour by the end of 2025,
followed by an approximate six-month ramp-up period. On October 7, 2024, Aris
provided an update that the Marmato Lower Mine expansion is progressing on
schedule, with the site access road and portal face now complete and the
contractor preparing to initiate work on the twin declines. Both the SAG and
ball mill fabrication are progressing on schedule for completion before the
end of 2024.
Curipamba Project: On July 31, 2024, Silvercorp Metals Inc. ("Silvercorp")
completed the previously announced acquisition of all of the issued and
outstanding common shares of Adventus Mining Corporation. Under the terms of
the Curipamba PMPA, within 30 days of a change of control, Silvercorp had a
one-time option to repurchase 33% of the gold and silver stream which expired
unexercised.
Marathon Project: On July 31, 2024, Generation Mining Limited ("Gen Mining")
reported that the federal government has approved amendments to Schedule 2 of
the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will
allow for the construction of specific water management structures and
operation of key infrastructure for the Marathon Project. On August 7, 2024,
Gen Mining announced a key milestone with the receipt of the Fisheries Act
Authorization for the Marathon project. Gen Mining also states that receipt of
the few remaining provincial and federal approvals and permits required for
construction is expected in the coming months. Following which, the Marathon
project will have all of the key government permits and approvals required for
construction.
Santo Domingo: On July 31, 2024, Capstone Copper Corp. ("Capstone") published
the results of an updated feasibility study for the Santo Domingo project,
outlining an optimized mine plan, updated capital and operating cost
estimates, and a 19-year mine life supported by higher mineral reserve
estimates. The report indicates that total gold production is expected to
average 35,000 ounces per year for the first seven years of production, an
increase from the 30,000 ounces per year estimate outlined in the 2020
feasibility study, and 22,000 ounces per year for the life of mine, up from
17,000 ounces per year. Capstone has reported that with construction completed
at the Mantoverde project, a deposit situated 35 kilometers northeast of the
Santo Domingo project, Capstone plans to advance several value enhancement
initiatives within the Mantoverde-Santo Domingo district that are not yet
included in the 2024 feasibility study. The first of these initiatives is a
newly announced two-year, $25 million exploration program at Mantoverde, aimed
at supporting the two future processing centers between Mantoverde and Santo
Domingo.
Curraghinalt Project: On May 3, 2024, the Planning Appeals Commission &
Water Appeals Commission (the "Commission") in Northern Ireland concluded that
the water abstraction and impoundment licenses ("Water Licenses") relative to
the Curraghinalt Project have been rescinded and that license applications
would need to be resubmitted, and subsequent public inquiry referrals held.
Dalradian has re-submitted two new applications for the abstraction licenses
and those licenses were received by the Commission on September 5, 2024. The
Commission has set new dates to resume the public inquiry process beginning
January 13, 2025.
Fenix Project: On October 2, 2024, Rio2 Limited ("Rio2") announced that its
Chilean subsidiary has received the principal Sectorial Permits it requires to
begin construction at the Fenix project. These Sectorial Permits represent the
last governmental authorization required to enable the start of the
construction phase and subsequent operation of the Fenix mine.
Copper World Project: On August 29, 2024, Hudbay announced that it has
received an Aquifer Protection Permit for the Copper World project from the
Arizona Department of Environmental Quality. The issuance of this permit is a
key milestone in the advancement of Copper World. The last key state-level
permit is the Air Quality Permit which is progressing as planned.
Corporate Development
Koné Gold Project
On October 23, 2024, the Company entered into a PMPA (the "Koné Gold PMPA")
with Montage Gold Corp. ("Montage") in respect of its 90% owned Koné Gold
Project located in Côte d'Ivoire. Under the terms of the agreement, Wheaton
will purchase 19.5% of the payable gold production until 400,000 ounces of
gold have been delivered (subject to adjustment if there are delays in
deliveries relative to an agreed schedule), 10.8% of the gold production until
the delivery of a further 130,000 ounces and 5.4% gold production thereafter
for the life of mine. Under the terms of the Koné Gold PMPA, the Company is
committed to pay Montage total upfront cash payments of $625 million, payable
in four equal installment payments during construction, subject to certain
conditions, including that all permits have been obtained.
In addition, Wheaton will make ongoing production payments for the gold ounces
delivered equal to 20% of the spot gold price. For the first five years after
the PMPA is signed, there will be a price adjustment mechanism in place if the
spot price of gold is less than $2,100 per ounce or greater than $2,700 per
ounce.
The Company has also provided Montage with a secured debt facility of up to
$75 million (the "Facility").
Amendment to the Fenix PMPA
On November 15, 2021, the Company acquired a gold stream in respect of gold
production from the Fenix Project (the "Fenix PMPA"). Under the terms of the
Fenix PMPA, the Company was to acquire an amount of gold equal to 6% of the
gold production until 90,000 ounces have been delivered, 4% of the gold
production until the delivery of a further 140,000 ounces and 3.5% gold
production thereafter for the life of mine.
On October 21, 2024, the Company amended the Fenix PMPA. Under the terms of
the amended agreement, the Company is entitled to purchase an additional 16%
of payable gold production (22% in total, subject to adjustment if there are
delays in deliveries relative to an agreed schedule). Once Rio2 delivers the
incremental 95,000 ounces (as adjusted), the stream reverts to the percentages
and thresholds under the original Fenix PMPA (as described above). Rio2 has a
one-time option to terminate the requirement to deliver the additional gold
production from the end of 2027 until the end of 2029 by delivering 95,000
ounces (as adjusted) less previously delivered gold ounces, excluding those
gold ounces which would have been delivered under the original Fenix PMPA.
Finally, the Company has also agreed to adjust the production payment for all
gold ounces delivered to 20% of the spot gold price. In exchange for the
amendment, the Company is committed to pay additional upfront cash
consideration of $100 million, payable in two equal installments, subject to
various customary conditions being satisfied.
Wheaton will also provide a $20 million contingent secured debt facility in
the form of a standby loan facility. Lastly, Wheaton has committed to
participate in a private placement of Rio2 common shares for Cdn$5 million at
a price per share equal to, and concurrent with, a public offering by Rio2.
Sustainability
Future of Mining Challenge
On September 16, 2024, Wheaton announced the launch of the inaugural Future of
Mining Challenge, which will award US$1 million to a winning venture to
advance their technology. The Future of Mining Challenge invites cleantech
ventures from around the world to submit and propose industry solutions. This
year's challenge focuses on identifying eligible technologies with the
potential to reduce greenhouse gas emissions across mining operations. In
alignment with Wheaton's business model, the solutions should be applicable to
base and/or precious metal mining. They should also be scalable globally, with
the aim of future implementation at operating mines. The challenge is being
supported by Foresight Canada. Submissions for challenge applications opened
in September 2024, and the winner will be announced in March 2025 at the PDAC
Convention in Toronto, the world's largest mining conference. More
information can be found at www.futureofmining.ca
(https://can01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.futureofmining.ca%2F&data=05%7C02%7Cemma.murray%40wheatonpm.com%7C000f3ad236aa4f92278c08dcf2b30768%7Cef155bdcfbc947aaba8f1b31121bfb94%7C1%7C0%7C638652097945389036%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=3r2Vfzdo7uNY4VxQDlTz922mjilwoVU%2ByZ3rFzLK89E%3D&reserved=0)
.
Community Investment Program
· Wheaton's Partner Community Investment Program continues to support
initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina,
Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater 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.
· In August 2024, the BC Cancer Foundation's Tour de Cure presented by
Wheaton raised C$7.3 million to advance groundbreaking cancer research and
care enhancements in British Columbia.
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000
to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000
to 15,000 GEOs(3) of other metals, resulting in annual production of
approximately 550,000 to 620,000 GEOs(3), unchanged from previous
guidance(2,3).
Annual production is forecast to increase by approximately 40% to over 800,000
GEOs(3) by 2028, with average annual production forecast to grow to over
850,000 GEO(3) in years 2029 to 2033, also unchanged from previous
guidance(6). The transactions announced in 2024, including the new stream
associated with the Koné Project and the amendment related to the Fenix
Project, have not been incorporated into the long-term guidance.
The Company will provide updated longer-term guidance in normal course in the
first quarter of 2025, which will incorporate the impact of recent
developments and the acquisitions announced in 2024.(2,3)
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
A conference call will be held on Friday, November 8, 2024, 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:
RapidConnect
URL:
Click here (https://emportal.ink/3U5HU1F)
Live
webcast:
Click here (https://app.webinar.net/oKO70YGJP6B)
Dial toll
free:
1-888-510-2154 or 1-437-900-0527
Conference Call
ID:
48142
The accompanying slideshow will also be available in PDF format on the
'Presentations' page of the Wheaton Precious Metals website
(https://www.wheatonpm.com/Investors/presentations/default.aspx?LanguageId=1)
before the conference call. The conference call will be recorded and available
until November 15, 2024 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: 1-289-819-1450
Dial from outside Canada or the US: 1-888-660-6345
Pass
code:
48142
Archived
webcast:
Click here (https://app.webinar.net/oKO70YGJP6B)
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/Company/corporate-governance/default.aspx
(http://www.wheatonpm.com/Company/corporate-governance/default.aspx)
(http://www.silverwheaton.com/company/corporate-governance/default.aspx) .
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 Nine Months Ended
September 30
September 30
(US dollars and shares in thousands, except per share amounts - unaudited) 2024 2023 2024 2023
Sales $ 308,253 $ 223,137 $ 904,123 $ 702,573
Cost of sales
Cost of sales, excluding depletion $ 55,310 $ 49,808 $ 170,872 $ 160,413
Depletion 55,530 46,435 178,071 145,908
Total cost of sales $ 110,840 $ 96,243 $ 348,943 $ 306,321
Gross margin $ 197,413 $ 126,894 $ 555,180 $ 396,252
General and administrative expenses 9,488 8,606 30,193 28,922
Share based compensation 9,628 4,336 17,150 16,217
Donations and community investments 2,352 1,736 4,626 5,054
Earnings from operations $ 175,945 $ 112,216 $ 503,211 $ 346,059
Gain on disposal of mineral stream interests - - - 5,027
Other income (expense) 7,605 10,707 19,922 26,961
Earnings before finance costs and income taxes $ 183,550 $ 122,923 $ 523,133 $ 378,047
Finance costs 1,404 1,407 4,144 4,138
Earnings before income taxes $ 182,146 $ 121,516 $ 518,989 $ 373,909
Income tax expense 27,511 5,145 77,996 4,700
Net earnings $ 154,635 $ 116,371 $ 440,993 $ 369,209
Basic earnings per share $ 0.341 $ 0.257 $ 0.973 $ 0.815
Diluted earnings per share $ 0.340 $ 0.257 $ 0.971 $ 0.814
Weighted average number of shares outstanding
Basic 453,641 452,975 453,389 452,748
Diluted 454,302 453,538 454,037 453,419
Condensed Interim Consolidated Balance Sheets
As at As at
September 30
December 31
(US dollars in thousands - unaudited) 2024 2023
Assets
Current assets
Cash and cash equivalents $ 694,085 $ 546,527
Accounts receivable 10,435 10,078
Cobalt inventory - 1,372
Income taxes receivable 1,392 5,935
Other 3,938 3,499
Total current assets $ 709,850 $ 567,411
Non-current assets
Mineral stream interests $ 6,456,123 $ 6,122,441
Early deposit mineral stream interests 47,094 47,093
Mineral royalty interests 40,429 13,454
Long-term equity investments 103,068 246,678
Property, plant and equipment 7,535 7,638
Other 22,080 26,470
Total non-current assets $ 6,676,329 $ 6,463,774
Total assets $ 7,386,179 $ 7,031,185
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 14,766 $ 13,458
Current portion of performance share units 12,522 12,013
Current portion of lease liabilities 324 604
Total current liabilities $ 27,612 $ 26,075
Non-current liabilities
Performance share units $ 9,301 $ 9,113
Lease liabilities 5,340 5,625
Global minimum tax 78,361 -
Deferred income taxes 264 232
Pension liability 5,287 4,624
Total non-current liabilities $ 98,553 $ 19,594
Total liabilities $ 126,165 $ 45,669
Shareholders' equity
Issued capital $ 3,797,558 $ 3,777,323
Reserves (44,489) (40,091)
Retained earnings 3,506,945 3,248,284
Total shareholders' equity $ 7,260,014 $ 6,985,516
Total liabilities and shareholders' equity $ 7,386,179 $ 7,031,185
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Nine Months Ended
September 30
September 30
(US dollars in thousands - unaudited) 2024 2023 2024 2023
Operating activities
Net earnings $ 154,635 $ 116,371 $ 440,993 $ 369,209
Adjustments for
Depreciation and depletion 55,887 46,784 179,111 147,031
Gain on disposal of mineral stream interest - - - (5,027)
Interest expense 71 78 216 131
Equity settled stock based compensation 1,725 1,732 4,978 5,133
Performance share units - expense 7,903 2,604 12,172 11,084
Performance share units - paid - - (11,129) (16,675)
Pension expense 336 329 794 787
Pension paid - - (43) (116)
Income tax (recovery) expense 27,511 5,145 77,996 4,700
(Gain) loss on fair value adjustment of share purchase warrants held (523) 143 (903) 248
Investment income recognized in net earnings (7,249) (10,537) (18,564) (26,564)
Other 2,246 163 2,646 662
Change in non-cash working capital 2,837 (489) 1,329 (876)
Cash generated from operations before income taxes and interest $ 245,379 $ 162,323 $ 689,596 $ 489,727
Income taxes paid 2,925 (912) 2,734 (5,244)
Interest paid (71) (79) (219) (112)
Interest received 6,104 9,771 15,999 24,213
Cash generated from operating activities $ 254,337 $ 171,103 $ 708,110 $ 508,584
Financing activities
Credit facility extension fees $ (11) $ (13) $ (936) $ (859)
Share purchase options exercised 847 93 13,011 10,603
Lease payments (149) (169) (444) (548)
Dividends paid (69,984) (66,994) (209,108) (198,085)
Cash used for financing activities $ (69,297) $ (67,083) $ (197,477) $ (188,889)
Investing activities
Mineral stream interests $ (25,876) $ (90,710) $ (512,383) $ (210,944)
Early deposit mineral stream interests - (250) - (1,000)
Mineral royalty interest (4,956) (3,602) (26,981) (3,602)
Net proceeds on disposal of mineral stream interests - - - 46,400
Acquisition of long-term investments (728) (5,006) (1,479) (13,181)
Proceeds on disposal of long-term investments - - 177,088 202
Dividends received 482 700 1,663 1,617
Other (155) (35) (944) (1,804)
Cash used for investing activities $ (31,233) $ (98,903) $ (363,036) $ (182,312)
Effect of exchange rate changes on cash and cash equivalents $ 61 $ (35) $ (39) $ 447
Increase in cash and cash equivalents $ 153,868 $ 5,082 $ 147,558 $ 137,830
Cash and cash equivalents, beginning of period 540,217 828,837 546,527 696,089
Cash and cash equivalents, end of period $ 694,085 $ 833,919 $ 694,085 $ 833,919
Summary of Units Produced
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Gold ounces produced ²
Salobo 62,689 63,225 61,622 71,778 69,045 54,804 43,677 37,939
Sudbury (3) 4,287 4,477 5,618 5,823 3,857 5,818 6,203 5,270
Constancia 10,446 6,086 13,897 22,292 19,003 7,444 6,905 10,496
San Dimas (4) 6,882 7,089 7,542 10,024 9,995 11,166 10,754 10,037
Stillwater (5) 2,247 2,099 2,637 2,341 2,454 2,017 1,960 2,185
Other
Marmato 648 584 623 668 673 639 457 533
Minto (6) - - - - - 1,292 3,063 2,567
Total Other 648 584 623 668 673 1,931 3,520 3,100
Total gold ounces produced 87,199 83,560 91,939 112,926 105,027 83,180 73,019 69,027
Silver ounces produced (2)
Peñasquito (7) 1,785 2,263 2,643 1,036 - 1,744 2,076 1,761
Antamina 925 992 806 1,030 894 984 872 1,067
Constancia 648 451 640 836 697 420 552 655
Other
Los Filos 42 27 48 26 32 41 45 14
Zinkgruvan 537 699 641 510 785 374 632 664
Neves-Corvo 425 432 524 573 486 407 436 369
Aljustrel (8) - - - - 327 279 343 313
Cozamin 185 177 173 185 165 184 141 157
Marmato 7 6 7 10 11 7 8 9
Yauliyacu (9) - - - - - - - 261
Minto (6) - - - - - 14 29 33
Total Other 1,196 1,341 1,393 1,304 1,806 1,306 1,634 1,820
Total silver ounces produced 4,554 5,047 5,482 4,206 3,397 4,454 5,134 5,303
Palladium ounces produced ²
Stillwater (5) 4,034 4,338 4,463 4,209 4,006 3,880 3,705 3,869
Cobalt pounds produced ²
Voisey's Bay 397 259 240 215 183 152 124 128
GEOs produced (10) 144,164 145,449 158,775 164,796 147,278 137,323 134,730 132,780
Average payable rate (2)
Gold 95.1% 95.0% 94.7% 95.1% 95.4% 95.1% 95.1% 94.9%
Silver 83.9% 84.3% 84.5% 83.0% 78.4% 83.7% 83.1% 84.2%
Palladium 98.4% 97.3% 97.8% 98.0% 94.1% 94.1% 96.3% 93.9%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (10) 91.1% 90.7% 90.7% 91.6% 90.9% 90.9% 89.8% 89.9%
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: 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; Q1 2023 - 401,000 ounces;
Q4 2022 - 348,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
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 second quarter of 2025.
9) On December 14, 2022 the Company terminated the Yauliyacu PMPA in
exchange for a cash payment of $132 million.
10) GEOs, which are provided to assist the
reader, are based on the following commodity price assumptions: $2,000 per
ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00
per pound cobalt; consistent with those used in estimating the Company's
production guidance for 2024.
Summary of Units Sold
Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022
Gold ounces sold
Salobo 58,101 54,962 56,841 76,656 44,444 46,030 35,966 41,029
Sudbury (2) 2,495 5,679 4,129 5,011 4,836 4,775 4,368 4,988
Constancia 5,186 6,640 20,123 19,925 12,399 9,619 6,579 6,013
San Dimas 7,022 6,801 7,933 10,472 9,695 11,354 10,651 10,943
Stillwater (3) 1,635 2,628 2,355 2,314 1,985 2,195 2,094 1,783
Other
Marmato 550 616 638 633 792 467 480 473
777 - - - - 275 153 126 785
Minto - - - - - 701 2,341 2,982
Santo Domingo (4) 447 - - - - - - -
Curipamba (4) 258 - - - - - - -
Total Other 1,255 616 638 633 1,067 1,321 2,947 4,240
Total gold ounces sold 75,694 77,326 92,019 115,011 74,426 75,294 62,605 68,996
Silver ounces sold
Peñasquito 1,667 1,482 1,839 442 453 1,913 1,483 2,066
Antamina 989 917 762 1,091 794 963 814 1,114
Constancia 366 422 726 665 435 674 366 403
Other
Los Filos 26 24 44 24 30 37 34 16
Zinkgruvan 488 597 297 449 714 370 520 547
Neves-Corvo 185 216 243 268 245 132 171 80
Aljustrel - - 1 86 142 182 205 156
Cozamin 148 158 147 141 139 150 119 150
Marmato 6 7 8 9 11 7 7 7
Yauliyacu - - - - - - - 337
Minto - - - - - 7 29 23
Keno Hill - - - - - - 1 1
777 - - - - 2 2 - 35
Total Other 853 1,002 740 977 1,283 887 1,086 1,352
Total silver ounces sold 3,875 3,823 4,067 3,175 2,965 4,437 3,749 4,935
Palladium ounces sold
Stillwater (3) 3,761 4,301 4,774 3,339 4,242 3,392 2,946 3,396
Cobalt pounds sold
Voisey's Bay 88 88 309 288 198 265 323 187
GEOs sold (5) 122,715 124,009 143,184 155,059 111,935 129,734 109,293 128,662
Cumulative payable units PBND (6)
Gold ounces 96,158 88,205 86,114 91,092 98,715 72,916 77,377 70,562
Silver ounces 2,748 2,801 2,368 1,802 1,486 1,790 2,531 2,013
Palladium ounces 6,186 6,018 6,198 6,666 5,607 6,122 5,751 5,098
Cobalt pounds 796 513 360 356 377 251 285 258
GEO (5) 136,027 126,761 118,785 117,465 121,058 98,186 111,217 97,936
Inventory on hand
Cobalt pounds - - - 88 155 310 398 633
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 Curipamba 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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
6) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended September 30, 2024
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit) (4)
Per Unit)
Gold
Salobo 62,689 58,101 $ 2,490 $ 425 $ 378 $ 144,656 $ 98,016 $ 122,916 $ 2,616,346
Sudbury (5) 4,287 2,495 2,519 400 1,326 6,286 1,979 4,798 246,918
Constancia 10,446 5,186 2,490 422 323 12,912 9,048 10,722 70,095
San Dimas 6,882 7,022 2,490 637 290 17,482 10,975 13,010 138,507
Stillwater 2,247 1,635 2,490 438 421 4,071 2,667 3,355 208,474
Other (6) 648 1,255 2,481 192 1,584 3,114 886 2,874 901,880
87,199 75,694 $ 2,491 $ 440 $ 418 $ 188,521 $ 123,571 $ 157,675 $ 4,182,220
Silver
Peñasquito 1,785 1,667 $ 29.58 $ 4.50 $ 4.86 $ 49,329 $ 33,725 $ 41,825 $ 253,461
Antamina 925 989 29.58 6.06 8.46 29,257 14,893 23,260 498,029
Constancia 648 366 29.58 6.23 6.10 10,822 6,310 8,543 170,242
Other (7) 1,196 853 30.17 4.34 4.83 25,741 17,912 22,594 645,485
4,554 3,875 $ 29.71 $ 5.03 $ 5.89 $ 115,149 $ 72,840 $ 96,222 $ 1,567,217
Palladium
Stillwater 4,034 3,761 $ 969 $ 173 $ 429 $ 3,644 $ 1,380 $ 2,994 $ 215,082
Platreef - - n.a. n.a. n.a. - - - 78,820
4,034 3,761 $ 969 $ 173 $ 429 $ 3,644 $ 1,380 $ 2,994 $ 293,902
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - 57,588
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,039
Cobalt
Voisey's Bay 397 88 $ 10.65 $ 2.15 $ 12.78 $ 939 $ (378) $ 321 $ 345,745
Operating results $ 308,253 $ 197,413 $ 257,212 $ 6,456,123
Other
General and administrative $ (9,488) $ (6,215)
Share based compensation (9,628) -
Donations and community investments (2,352) (2,198)
Finance costs (1,404) (1,051)
Other 7,605 3,664
Income tax (27,511) 2,925
Total other $ (42,778) $ (2,875) $ 930,056
$ 154,635 $ 254,337 $ 7,386,179
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-IFRS 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) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Minto, Copper World, Santo Domingo, Fenix,
Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and
Kudz Ze Kayah gold interests. Other includes ounces sold that were received
under the delay ounce provisions of each of the Santo Domingo and Curipamba
PMPAs. Please see the Company's MD&A for more information.
7) 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, Curipamba, Mineral Park and Kudz Ze Kayah silver interests.
Three Months Ended September 30, 2023
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 69,045 44,444 $ 1,944 $ 420 $ 330 $ 86,395 $ 53,026 $ 67,710 $ 2,341,485
Sudbury (4) 3,857 4,836 1,950 400 1,204 9,428 1,669 7,494 268,224
Constancia 19,003 12,399 1,944 419 316 24,102 14,991 18,906 86,555
San Dimas 9,995 9,695 1,944 631 260 18,846 10,216 12,732 147,638
Stillwater 2,454 1,985 1,944 349 510 3,859 2,154 3,167 212,650
Other (5) 673 1,067 1,945 368 391 2,077 1,266 1,684 557,035
105,027 74,426 $ 1,944 $ 444 $ 381 $ 144,707 $ 83,322 $ 111,693 $ 3,613,587
Silver
Peñasquito - 453 $ 23.82 $ 4.43 $ 4.06 $ 10,804 $ 6,952 $ 8,795 $ 278,028
Antamina 894 794 23.82 4.81 7.06 18,915 9,496 15,097 527,227
Constancia 697 435 23.82 6.18 6.24 10,360 4,958 7,674 183,736
Other (6) 1,806 1,283 23.62 5.15 2.64 30,293 20,301 19,439 549,641
3,397 2,965 $ 23.73 $ 5.10 $ 4.57 $ 70,372 $ 41,707 $ 51,005 $ 1,538,632
Palladium
Stillwater 4,006 4,242 $ 1,251 $ 223 $ 459 $ 5,307 $ 2,416 $ 4,361 $ 222,154
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,450
Cobalt
Voisey's Bay 183 198 $ 13.87 $ 3.66 ⁷ $ 12.98 $ 2,751 $ (551) $ 4,235 $ 353,631
Operating results $ 223,137 $ 126,894 $ 171,294 $ 5,737,454
Other
General and administrative $ (8,606) $ (6,321)
Share based compensation (4,336) -
Donations and community investments (1,736) (1,750)
Finance costs (1,407) (1,078)
Other 10,707 9,870
Income tax (5,145) (912)
Total other $ (10,523) $ (191) $ 1,144,061
$ 116,371 $ 171,103 $ 6,881,515
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-IFRS 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
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On May 13, 2023, Minto
announced the suspension of operations at the Minto mine.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests, the
non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On May 13, 2023, Minto announced the suspension of operations
at the Minto mine. On September 12, 2023, it was announced that the production
of zinc and lead concentrates at Aljustrel will be halted from September 24,
2023 until the second quarter of 2025.
7) Cash cost per pound of cobalt sold during the third quarter of 2023 was
net of a previously recorded inventory write-down of $0.1 million, resulting
in a decrease of $0.51 per pound of cobalt sold.
Comparative Results of Operations on a GEO Basis
Q3 2024 Q3 2023 Change Change
GEO Production (1, 2) 144,164 147,278 (3,114) (2.1)%
GEO Sales (2) 122,715 111,935 10,780 9.6 %
Average price per GEO sold (2) $ 2,512 $ 1,993 $ 519 26.0 %
Revenue $ 308,253 $ 223,137 $ 85,116 38.1 %
Cost of sales, excluding depletion $ 55,310 $ 49,808 $ (5,502) (11.0)%
Depletion 55,530 46,435 (9,095) (19.6)%
Cost of Sales $ 110,840 $ 96,243 $ (14,597) (15.2)%
Gross Margin $ 197,413 $ 126,894 $ 70,519 55.6 %
General and administrative expenses 9,488 8,606 (882) (10.2)%
Share based compensation 9,628 4,336 (5,292) (122.0)%
Donations and community investments 2,352 1,736 (616) (35.5)%
Earnings from Operations $ 175,945 $ 112,216 $ 63,729 56.8 %
Other income (expense) 7,605 10,707 (3,102) (29.0)%
Earnings before finance costs and income taxes $ 183,550 $ 122,923 $ 60,627 49.3 %
Finance costs 1,404 1,407 3 0.2 %
Earnings before income taxes $ 182,146 $ 121,516 $ 60,630 49.9 %
Income tax expense 27,511 5,145 (22,366) (434.7)%
Net earnings $ 154,635 $ 116,371 $ 38,264 32.9 %
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Nine Months Ended September 30, 2024
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit) (4)
Per Unit)
Gold
Salobo 187,536 169,904 $ 2,307 $ 425 $ 383 $ 391,973 $ 254,758 $ 322,761 $ 2,616,346
Sudbury (5) 14,382 12,303 2,286 400 1,265 28,130 7,642 22,718 246,918
Constancia 30,429 31,949 2,200 421 318 70,275 46,663 56,833 70,095
San Dimas 21,513 21,756 2,296 634 286 49,950 29,941 36,156 138,507
Stillwater 6,983 6,618 2,288 405 453 15,144 9,469 12,464 208,474
Other (6) 1,855 2,509 2,347 293 1,056 5,888 2,504 5,153 901,880
262,698 245,039 $ 2,291 $ 440 $ 419 $ 561,360 $ 350,977 $ 456,085 $ 4,182,220
Silver
Peñasquito 6,691 4,988 $ 27.18 $ 4.50 $ 4.57 $ 135,578 $ 90,361 $ 113,132 $ 253,461
Antamina 2,723 2,668 27.63 5.56 8.06 73,710 37,377 58,878 498,029
Constancia 1,739 1,514 26.55 6.21 6.17 40,180 21,444 30,785 170,242
Other (7) 3,930 2,595 28.37 4.29 4.51 73,630 50,785 60,026 645,485
15,083 11,765 $ 27.46 $ 4.91 $ 5.55 $ 323,098 $ 199,967 $ 262,821 $ 1,567,217
Palladium
Stillwater 12,835 12,836 $ 976 $ 177 $ 435 $ 12,531 $ 4,674 $ 10,259 $ 215,082
Platreef - - n.a. n.a. n.a. - - - 78,820
12,835 12,836 $ 976 $ 177 $ 435 $ 12,531 $ 4,674 $ 10,259 $ 293,902
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - 57,588
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,039
Cobalt
Voisey's Bay 896 485 $ 14.71 $ 2.84 $ 12.77 $ 7,134 $ (438) $ 9,407 $ 345,745
Operating results $ 904,123 $ 555,180 $ 738,572 $ 6,456,123
Other
General and administrative $ (30,193) $ (31,134)
Share based compensation (17,150) (11,129)
Donations and community investments (4,626) (4,185)
Finance costs (4,144) (3,234)
Other 19,922 16,486
Income tax (77,996) 2,734
Total other $ (114,187) $ (30,462) $ 930,056
$ 440,993 $ 708,110 $ 7,386,179
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-IFRS 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) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Minto, Copper World, Santo Domingo, Fenix,
Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and
Kudz Ze Kayah gold interests. Other includes ounces sold that were received
under the delay ounce provisions of each of the Santo Domingo and Curipamba
PMPAs. Please see the Company's MD&A for more information.
7) 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, Curipamba, Mineral Park and Kudz Ze Kayah silver interests..
Nine Months Ended September 30, 2023
Units Produced² Units Average Average Average Sales Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 167,526 126,440 $ 1,947 $ 420 $ 330 $ 246,219 $ - $ 151,287 $ 193,063 $ 2,341,485
Sudbury (5) 15,878 13,979 1,953 400 1,087 27,295 - 6,512 21,420 268,224
Constancia 33,352 28,597 1,948 417 316 55,718 - 34,751 43,779 86,555
San Dimas 31,915 31,700 1,945 628 260 61,657 - 33,535 41,762 147,638
Stillwater 6,431 6,274 1,945 347 510 12,201 - 6,824 10,026 212,650
Other (6) 6,124 5,335 1,935 1,119 172 10,324 - 3,439 4,090 557,035
261,226 212,325 $ 1,947 $ 465 $ 369 $ 413,414 $ - $ 236,348 $ 314,140 $ 3,613,587
Silver
Peñasquito 3,820 3,849 $ 23.63 $ 4.43 $ 4.06 $ 90,967 $ - $ 58,268 $ 73,915 $ 278,028
Antamina 2,750 2,571 23.65 4.69 7.06 60,812 - 30,625 48,765 527,227
Constancia 1,669 1,475 23.75 6.15 6.24 35,034 - 16,750 25,962 183,736
Other (7) 4,746 3,256 23.44 5.58 2.82 76,316 5,027 53,966 55,364 549,641
12,985 11,151 $ 23.60 $ 5.05 $ 4.68 $ 263,129 $ 5,027 $ 159,609 $ 204,006 $ 1,538,632
Palladium
Stillwater 11,591 10,580 $ 1,410 $ 255 $ 440 $ 14,922 $ - $ 7,565 $ 12,223 $ 222,154
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,450
Cobalt
Voisey's Bay 458 786 $ 14.13 $ 3.36 ⁸ $ 13.63 $ 11,108 $ - $ (2,243) $ 13,056 $ 353,631
Operating results $ 702,573 $ 5,027 $ 401,279 $ 543,425 $ 5,737,454
Other
General and administrative $ (28,922) $ (29,702)
Share based compensation (16,217) (16,675)
Donations and community investments (5,054) (4,896)
Finance costs (4,138) (3,147)
Other 26,961 24,823
Income tax (4,700) (5,244)
Total other $ (32,070) $ (34,841) $ 1,144,061
$ 369,209 $ 508,584 $ 6,881,515
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-IFRS measure (iii) at the end of this press
release.
4) The gain on disposal of Other silver interests relates to the gain on
the buyback of 33% of the Goose PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Other gold interests are comprised of the operating Marmato gold
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On May 13, 2023, Minto
announced the suspension of operations at the Minto mine.
7) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and
the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On May 13, 2023, Minto announced the suspension of operations
at the Minto mine. On September 12, 2023, it was announced that the production
of zinc and lead concentrates at Aljustrel will be halted from September 24,
2023 until the second quarter of 2025.
8) Cash cost per pound of cobalt sold during the nine months ended
September 30, 2023 was net of a previously recorded inventory write-down of
$1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold.
Comparative Results of Operations on a GEO Basis
YTD 2024 YTD 2023 Change Change
GEO Production (1, 2) 448,388 419,330 29,058 6.9 %
GEO Sales (2) 389,907 350,961 38,946 11.1 %
Average price per GEO sold (2) $ 2,319 $ 2,002 $ 317 15.8 %
Revenue $ 904,123 $ 702,573 $ 201,550 28.7 %
Cost of sales, excluding depletion $ 170,872 $ 160,413 $ (10,459) (6.5)%
Depletion 178,071 145,908 (32,163) (22.0)%
Cost of Sales $ 348,943 $ 306,321 $ (42,622) (13.9)%
Gross Margin $ 555,180 $ 396,252 $ 158,928 40.1 %
General and administrative expenses 30,193 28,922 (1,271) (4.4)%
Share based compensation 17,150 16,217 (933) (5.8)%
Donations and community investments 4,626 5,054 428 8.5 %
Earnings from Operations $ 503,211 $ 346,059 $ 157,152 45.4 %
Gain on disposal of mineral stream interests - 5,027 (5,027) (100.0)%
Other income (expense) 19,922 26,961 (7,039) (26.1)%
Earnings before finance costs and income taxes $ 523,133 $ 378,047 $ 145,086 38.4 %
Finance costs 4,144 4,138 (6) (0.1)%
Earnings before income taxes $ 518,989 $ 373,909 $ 145,080 38.8 %
Income tax expense 77,996 4,700 (73,296) (1,559.5)%
Net earnings $ 440,993 $ 369,209 $ 71,784 19.4 %
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS 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,
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 Nine Months Ended
September 30
September 30
(in thousands, except for per share amounts) 2024 2023 2024 2023
Net earnings $ 154,635 $ 116,371 $ 440,993 $ 369,209
Add back (deduct):
Gain on disposal of Mineral Stream Interest - - - (5,027)
(Gain) loss on fair value adjustment of share purchase warrants held (523) 143 (903) 248
Deferred income tax (expense) recovery recognized in the Statement of OCI (1,134) 5,115 1,632 7,205
Income tax recovery related to prior year disposal of Mineral Stream Interest - - - (2,672)
Other (175) (162) (521) (482)
Adjusted net earnings $ 152,803 $ 121,467 $ 441,201 $ 368,481
Divided by:
Basic weighted average number of shares outstanding 453,641 452,975 453,389 452,748
Diluted weighted average number of shares outstanding 454,302 453,538 454,037 453,419
Equals:
Adjusted earnings per share - basic $ 0.337 $ 0.268 $ 0.973 $ 0.814
Adjusted earnings per share - diluted $ 0.336 $ 0.268 $ 0.972 $ 0.813
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 Nine Months Ended
September 30
September 30
(in thousands, except for per share amounts) 2024 2023 2024 2023
Cash generated by operating activities $ 254,337 $ 171,103 $ 708,110 $ 508,584
Divided by:
Basic weighted average number of shares outstanding 453,641 452,975 453,389 452,748
Diluted weighted average number of shares outstanding 454,302 453,538 454,037 453,419
Equals:
Operating cash flow per share - basic $ 0.561 $ 0.378 $ 1.562 $ 1.123
Operating cash flow per share - diluted $ 0.560 $ 0.377 $ 1.560 $ 1.122
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. In addition to conventional measures prepared in accordance with IFRS,
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 Nine Months Ended
September 30
September 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Cost of sales $ 110,840 $ 96,243 $ 348,943 $ 306,321
Less: depletion (55,530) (46,435) (178,071) (145,908)
Less: cost of sales related to delay ounces (1) (1,698) - (1,698) -
Cash cost of sales $ 53,612 $ 49,808 $ 169,174 $ 160,413
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 33,287 $ 33,014 $ 107,715 $ 98,724
Total cash cost of silver sold 19,485 15,121 57,811 56,351
Total cash cost of palladium sold 650 946 2,272 2,699
Total cash cost of cobalt sold (2) 190 727 1,376 2,639
Total cash cost of sales $ 53,612 $ 49,808 $ 169,174 $ 160,413
Divided by:
Total gold ounces sold 75,694 74,426 245,039 212,325
Total silver ounces sold 3,875 2,965 11,765 11,151
Total palladium ounces sold 3,761 4,242 12,836 10,580
Total cobalt pounds sold 88 198 485 786
Equals:
Average cash cost of gold (per ounce) $ 440 $ 444 $ 440 $ 465
Average cash cost of silver (per ounce) $ 5.03 $ 5.10 $ 4.91 $ 5.05
Average cash cost of palladium (per ounce) $ 173 $ 223 $ 177 $ 255
Average cash cost of cobalt (per pound) $ 2.15 $ 3.66 $ 2.84 $ 3.36
1) The cost of sales related to delay ounces is a non-cash expense. Please
see the Company's MD&A for more information.
2) Cash cost per pound of cobalt sold during the third quarter of 2023 was
net of a previously recorded inventory write-down of $0.1 million (nine months
- $1.6 million), resulting in a decrease of $0.51 per pound of cobalt sold
(nine months - $2.05 per pound of cobalt sold).
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 Nine Months Ended
September 30
September 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Gross margin $ 197,413 $ 126,894 $ 555,180 $ 396,252
Add back: depletion 55,530 46,435 178,071 145,908
Add back: cost of sales related to delay ounces (1) 1,698 - 1,698 -
Cash operating margin $ 254,641 $ 173,329 $ 734,949 $ 542,160
Cash operating margin is comprised of:
Total cash operating margin of gold sold $ 155,234 $ 111,693 $ 453,645 $ 314,690
Total cash operating margin of silver sold 95,664 55,251 265,287 206,778
Total cash operating margin of palladium sold 2,994 4,361 10,259 12,223
Total cash operating margin of cobalt sold 749 2,024 5,758 8,469
Total cash operating margin $ 254,641 $ 173,329 $ 734,949 $ 542,160
Divided by:
Total gold ounces sold 75,694 74,426 245,039 212,325
Total silver ounces sold 3,875 2,965 11,765 11,151
Total palladium ounces sold 3,761 4,242 12,836 10,580
Total cobalt pounds sold 88 198 485 786
Equals:
Cash operating margin per gold ounce sold $ 2,051 $ 1,500 $ 1,851 $ 1,482
Cash operating margin per silver ounce sold $ 24.68 $ 18.63 $ 22.55 $ 18.55
Cash operating margin per palladium ounce sold $ 796 $ 1,028 $ 799 $ 1,155
Cash operating margin per cobalt pound sold $ 8.50 $ 10.21 $ 11.87 $ 10.77
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-IFRS measures do not have any standardized meaning prescribed by
IFRS, and other companies may calculate these measures differently. The
presentation of these non-IFRS 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. 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, 2022 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, 2023, which was filed on March 28, 2024
and other continuous disclosure documents filed by Wheaton since January 1,
2024, 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.
Dividends declared in the referenced calendar quarter, relative to the
financial results of the prior quarter. Details of the dividend can be found
in the Wheaton's news release dated November 7, 2024, titled "Wheaton Precious
Metals Declares 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 2024 and the longer-term outlook
are based on the following commodity price assumptions: $2,000 per ounce gold,
$23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of platinum
and $13.00 per pound cobalt.
(4)Source: Company reports & S and 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, 2023 and 2023 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 March 14, 2024, titled "Wheaton Precious Metals Announces Solid
2023 Annual Results and Transition to Progressive Dividend Policy".
Additionally, neither of the transactions announced in 2024 have been factored
into long-term guidance including the new stream relative to the Koné
Project, and the stream amendment relative to the Fenix Project.
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