REG - Wheaton Precious Met - First Quarter Results 2023
05/05/2023 07:00
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RNS Number : 5569Y Wheaton Precious Metals Corp. 05 May 2023
May 4, 2023
Vancouver, British Columbia
Designated News Release
FIRST QUARTER FINANCIAL results
Wheaton Precious Metals Announces Solid Start to 2023
"Wheaton's high-quality portfolio of long-life, low-cost assets delivered a
solid performance to start the year, resulting in revenue of $214 million and
robust cash operating margins," said Randy Smallwood, President and Chief
Executive Officer of Wheaton Precious Metals. "First quarter production was
ahead of Company expectations, and as we continue to see positive developments
at a number of our key assets including Salobo and Constancia, we expect to
see significant production growth throughout 2023, culminating in a strong
second half of the year. Notably, implicit in our five-year annual average
production guidance, is an impressive organic growth profile of over 40%, with
two-thirds coming from assets already in operation. In addition, our corporate
development team remains exceptionally busy evaluating new opportunities, and
as always, Wheaton is focused on ensuring our growth is both accretive and
sustainable for all of our stakeholders."
Solid Financial Results and Strong Balance Sheet
· First quarter of 2023: $214 million in revenue, $135 million in
operating cash flow, $111 million in net earnings and $104 million in adjusted
net earnings 1 (#_edn1)
· A cash balance of $800 million and no debt as at March 31, 2023
· Undrawn $2 billion revolving credit facility with a July 18, 2027
maturity date
· Declared a quarterly dividend(1) of $0.15 per common share
High Quality Asset Base
· Streaming agreements on 20 operating mines and 12 development projects
· 93% of attributable production from assets in the lowest half of their
respective cost curves 2 (#_edn2) (, 3 (#_edn3) )
· 30 years of mine life based on Proven and Probable Mineral Reserves and
potential additional mine life from mineral resource conversion and
exploration(2)(, 4 (#_edn4) )
· Attributable gold equivalent production(3) ("GEOs") of 141,800 ounces
in the first quarter of 2023
· Production from Salobo in the first quarter of 2023 was 43,700 ounces
of gold, an increase of over 15% relative to the fourth quarter of 2022, due
to steady ramp up of the Salobo III expansion
· As per Hudbay Minerals Inc. ("Hudbay"), full mining activities at the
Constancia mine resumed in the Pampacancha pit in February, with mining of
higher-grade ore now expected in the second quarter of 2023, ahead of schedule
· Average annual production for the five and ten-year periods is expected
to be approximately 810,000 and 850,000 GEOs(2,3), respectively
Leadership in Sustainability
· Top Rankings: #1 out of 116 precious metals companies and Global Top 50
out of over 15,000 multi-sector companies by Sustainalytics, AA rated by MSCI,
and Prime rated by ISS
· Commitment to Net-Zero Carbon Emissions by 2050 supported by interim
targets covering all material emissions including Scope 3
· Established a sustainability linked element in connection with the
revolving credit facility
· Recognized as one of the Best 50 Corporate Citizens in Canada by
Corporate Knights
Operational Overview
(all figures in US dollars unless otherwise noted) Q1 2023 Q1 2022 Change
Units produced
Gold ounces 73,037 78,054 (6.4)%
Silver ounces 4,927 6,225 (20.9)%
Palladium ounces 3,705 4,488 (17.4)%
Cobalt pounds 124 234 (47.0)%
Gold equivalent ounces (3) 141,831 165,555 (14.3)%
Units sold
Gold ounces 62,605 77,901 (19.6)%
Silver ounces 3,749 5,553 (32.5)%
Palladium ounces 2,946 4,075 (27.7)%
Cobalt pounds 323 511 (36.8)%
Gold equivalent ounces (3) 117,383 159,082 (26.2)%
Change in PBND and Inventory
Gold equivalent ounces (3) 10,449 (10,419) (20,868)
Revenue $ 214,465 $ 307,244 (30.2)%
Net earnings $ 111,391 $ 157,467 (29.3)%
Per share $ 0.246 $ 0.349 (29.5)%
Adjusted net earnings (1) $ 104,431 $ 158,007 (33.9)%
Per share (1) $ 0.231 $ 0.350 (34.0)%
Operating cash flows $ 135,104 $ 210,540 (35.8)%
Per share (1) $ 0.299 $ 0.467 (36.0)%
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Financial Review
Revenues
Revenue was $214 million (56% gold, 40% silver, 2% palladium and 2% cobalt),
with the $93 million decrease being primarily due to the cessation of
production from Yauliyacu, 777 and Keno Hill coupled with relative changes in
the GEOs produced but not yet delivered(3) and a 5% decrease in the average
realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2023 were $443 per GEO² as
compared to $440 in the first quarter of 2022. This resulted in a cash
operating margin¹ of $1,384 per GEO³ sold, a decrease of 7% as compared with
the first quarter of 2022.
Cash Flow from Operations
Operating cashflow amounted to $135 million, with the $75 million decrease
being due primarily to the lower cash operating margin and the payout of the
Company's performance share units in the first quarter of 2023 while in 2022
they were paid in the second quarter.
Balance Sheet (at March 31, 2023)
· Approximately $800 million of cash on hand
· During the first quarter of 2023, the Company made an upfront cash
payment of $31 million relative to the Goose PMPA
· With the existing cash on hand coupled with the fully undrawn $2
billion revolving credit facility, the Company is well positioned to fund all
outstanding commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream interests
First Quarter Operating Asset Highlights
Salobo: In the first quarter of 2023, Salobo produced 43,700 ounces of
attributable gold, virtually unchanged relative to the first quarter of 2022,
with higher grades and throughput offset by lower recovery. According to Vale
S.A. ("Vale"), production in the first quarter was impacted by planned and
corrective maintenance activities, with additional maintenance planned for the
second quarter.
Vale reports that the Salobo III mine expansion project, which will increase
the mill throughput by 50%, successfully commenced at the end of 2022. The
project consists of two lines, both of which are already in operation, and is
expected to reach full capacity in the fourth quarter of 2024.
Antamina: In the first quarter of 2023, Antamina produced 0.9 million ounces
of attributable silver, a decrease of approximately 31% relative to the first
quarter of 2022, primarily due to lower grades as per the mine plan.
Peñasquito: In the first quarter of 2023, Peñasquito produced 2.1 million
ounces of attributable silver, a decrease of approximately 6% relative to the
first quarter of 2022 due to lower recoveries partially offset by higher
grades.
Constancia: In the first quarter of 2023, Constancia produced 0.6 million
ounces of attributable silver and 6,900 ounces of attributable gold, an
increase of approximately 9% for both metals relative to the first quarter of
2022, with the increase in both metals being primarily due to higher
throughput and grades. As per Hudbay, full mining activities resumed in the
Pampacancha pit in February and the period of higher stripping from March to
June is progressing well, with mining of higher-grade ore now expected in the
second quarter of 2023, ahead of schedule.
Sudbury: In the first quarter of 2023, Vale's Sudbury mines produced 6,200
ounces of attributable gold, an increase of approximately 16% relative to the
first quarter of 2022. As per Vale, higher production from Sudbury was driven
by greater mine performance and stability in the first quarter.
Stillwater: In the first quarter of 2023, the Stillwater mines produced 2,000
ounces of attributable gold and 3,700 ounces of attributable palladium, a
decrease of approximately 21% for gold and 17% for palladium relative to the
first quarter of 2022. As reported by Sibanye-Stillwater Limited ("Sibanye")
on March 13, 2023, an incident occurred at the Stillwater mine during
scheduled non-routine maintenance resulting in structural damage to the shaft
headgear, winder house and winder rope. As a result, production from the
Stillwater West mine below the 50 level was suspended for approximately five
weeks, impacting production in the first quarter, but has since recommenced.
Sibanye continues to reposition the Stillwater operations for the current
skills shortage and changing macro environment and expects further
normalization of production rates in 2023.
San Dimas: In the first quarter of 2023, San Dimas produced 10,800 ounces of
attributable gold, virtually unchanged relative to the first quarter of 2022.
Other Gold: In the first quarter of 2023, total Other Gold attributable
production was 3,500 ounces, a decrease of approximately 59% relative to the
first quarter of 2022, primarily due to the closure of the 777 mine in June
2022.
Other Silver: In the first quarter of 2023, total Other Silver attributable
production was 1.4 million ounces, a decrease of approximately 36% relative to
the first quarter of 2022, primarily due to the closure of the 777 mine and
the termination of the Keno Hill and Yauliyacu PMPAs.
Voisey's Bay: In the first quarter of 2023, the Voisey's Bay mine produced
124,000 pounds of attributable cobalt, a decrease of approximately 47%
relative to the first quarter of 2022, primarily due to mining lower grade
material during the ongoing transitional period between the depletion of the
Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay
underground project. Vale reports that planned maintenance activities are
scheduled for the second quarter of 2023. Vale reports that physical
completion of the Voisey's Bay underground mine extension was 83% at the end
of the first quarter. In the second quarter of 2021, Vale achieved the first
ore production from the Reid Brook deposit, the first of two underground mines
to be developed in the project. Eastern Deeps, the second deposit, has started
to extract development ore from the deposit and is scheduled to start the main
production ramp-up in the second half of 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.
First Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. ("Artemis") announced the approval of
its BC Mines Act Permit, the final step required to allow Artemis to commence
major works construction activities at the Blackwater Mine, with the
expectation of an initial gold pour in the second half of 2024. In addition,
Artemis announced that it issued a purchase order to Finning Canada, for the
primary and ancillary mining fleet required for the initial Phase 1 of
operations. Equipment deliveries to site are planned to commence late in the
fourth quarter of 2023 and continue throughout the first half of 2024, in
preparation for the pre-strip-mining phase. As per Artemis, the entire fleet
is expected to be "shovel ready" during the second half of 2024, to meet
Artemis' operational readiness objectives and commence operations.
Copper World Complex: In January 2023, Hudbay received an approved
right-of-way from the Arizona State Land Department that will allow for
infrastructure such as roads, pipelines and powerlines, to connect between the
properties in the company's private land package at Copper World. Subsequent
to the quarter, Hudbay announced the receipt of confirmation from the Army
Corps of Engineers that Hudbay's previous surrender of the Section 404 Clean
Water Act permit for the former Rosemont project was formally accepted and
revoked as requested. Clearing and grading work to prepare for the Copper
World site, including the construction of roads and other facilities,
continues to be underway. As per Hudbay, pre-feasibility activities for the
private land Phase I of the Copper World project are well-advanced and a
pre-feasibility study is expected to be released in mid-2023.
Goose Project: On April 12, 2023, Sabina Gold & Silver Corp ("Sabina")
announced that the shareholders approved the proposed acquisition by B2Gold
Corp. ("B2Gold") of all the issued and outstanding common shares of Sabina.
The transaction closed April 19, 2023. Subsequent to closing, B2Gold exercised
the option to acquire 33% of the stream under the Goose PMPA in exchange for a
cash payment in the amount of $46 million, resulting in a gain on partial
disposal of the PMPA in the amount of $5 million. B2Gold continues to advance
construction of the Goose project, moving toward commencement of production in
2025 and initiating an exploration program to further define untapped
potential and unlock further opportunities for growth.
Marathon Project: Generation Mining Limited ("Gen Mining") announced positive
results on the updated Feasibility Study for the Marathon Project, presenting
an optimized design with increased process plant throughput. Additionally, Gen
Mining finalized an offtake term sheet with Glencore for copper concentrate,
containing copper, palladium, platinum, gold, and silver. Finally, Gen Mining
has executed a mandate letter to arrange a senior secured project finance
facility of up to $400 million, with a syndicate including Export Development
Canada, together with ING Capital LLC and Societe Generale S.A. acting as the
Mandated Lead Arrangers. This represents a key milestone in the project
financing process for the development of the Marathon Project.
Sustainability
Climate Change:
· Subsequent to the quarter, on April 27, 2023, Hudbay announced the
signing of a new 10-year power purchase agreement with ENGIE Energía Perú
for access to a 100% renewable energy supply to Hudbay's Constancia operations
in Peru. As reported by Hudbay, Hudbay's Scope 1 and Scope 2 greenhouse gas
emissions are expected to significantly decline as a result of the new
Constancia renewable energy supply agreement, which should reduce Wheaton's
attributable scope 3 emissions from the Constancia mine and help advance the
Company's Net Zero targets.
Community Investment Program:
· The Daffodil Ball presented by Wheaton raised a record of over CA$3
million for the Canadian Cancer Society.
· The Pacific Salmon Foundation's Vancouver Gala presented by Wheaton
raised CA$530,000 in support of advancing critical marine science research and
conservation work.
About Wheaton Precious Metals Corp. and Outlook
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.
Wheaton's estimated attributable production in 2023 is forecast to be 320,000
to 350,000 ounces of gold, 20.0 to 22.0 million ounces of silver, and 22,000
to 25,000 GEOs of other metals, resulting in production of approximately
600,000 to 660,000 GEOs, unchanged from previous guidance(2)(,)(3). For the
five-year period ending in 2027, the Company estimates that average production
will amount to 810,000 GEOs, while for the ten-year period ending in 2032, the
Company estimates that average annual production will amount to 850,000 GEOs,
also unchanged from previous guidance(2)(,)(3).
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, May 5, 2023, starting at 11:00 am
(Eastern Time) to discuss these results. To participate in the live call
please use one of the following methods:
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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.sedar.com.
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) .
End Note
Condensed Interim Consolidated Statements of Earnings
Three Months Ended
March 31
(US dollars and shares in thousands, except per share amounts - unaudited) 2023 2022
Sales $ 214,465 $ 307,244
Cost of sales
Cost of sales, excluding depletion $ 51,964 $ 69,994
Depletion 45,000 57,402
Total cost of sales $ 96,964 $ 127,396
Gross margin $ 117,501 $ 179,848
General and administrative expenses 10,099 9,403
Share based compensation 7,397 9,902
Donations and community investments 1,378 813
Earnings from operations $ 98,627 $ 159,730
Other (income) expense (7,562) 170
Earnings before finance costs and income taxes $ 106,189 $ 159,560
Finance costs 1,378 1,422
Earnings before income taxes $ 104,811 $ 158,138
Income tax recovery (expense) 6,580 (671)
Net earnings $ 111,391 $ 157,467
Basic earnings per share $ 0.246 $ 0.349
Diluted earnings per share $ 0.246 $ 0.348
Weighted average number of shares outstanding
Basic 452,370 450,915
Diluted 453,159 451,953
Condensed Interim Consolidated Balance Sheets
As at As at
March 31
December 31
(US dollars in thousands - unaudited) 2023 2022
Assets
Current assets
Cash and cash equivalents $ 799,697 $ 696,089
Accounts receivable 9,236 10,187
Cobalt inventory 6,555 10,530
Taxes receivable 3,228 -
Other 3,379 3,287
Total current assets $ 822,095 $ 720,093
Non-current assets
Mineral stream interests $ 5,696,889 $ 5,707,019
Early deposit mineral stream interests 46,842 46,092
Mineral royalty interest 6,606 6,606
Long-term equity investments 309,068 256,095
Refundable deposit - 777 PMPA 8,232 8,073
Property, plant and equipment 3,902 4,210
Other 11,845 11,718
Total non-current assets $ 6,083,384 $ 6,039,813
Total assets $ 6,905,479 $ 6,759,906
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 9,136 $ 12,570
Dividends payable 67,910 -
Current taxes payable - 2,763
Current portion of performance share units 7,642 14,566
Current portion of lease liabilities 828 818
Total current liabilities $ 85,516 $ 30,717
Non-current liabilities
Performance share units 2,790 6,673
Lease liabilities 941 1,152
Deferred income taxes 180 165
Pension liability 3,598 3,524
Total non-current liabilities $ 7,509 $ 11,514
Total liabilities $ 93,025 $ 42,231
Shareholders' equity
Issued capital $ 3,765,954 $ 3,752,662
Reserves 22,466 66,547
Retained earnings 3,024,034 2,898,466
Total shareholders' equity $ 6,812,454 $ 6,717,675
Total liabilities and shareholders' equity $ 6,905,479 $ 6,759,906
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended
March 31
(US dollars in thousands - unaudited) 2023 2022
Operating activities
Net earnings $ 111,391 $ 157,467
Adjustments for
Depreciation and depletion 45,390 57,795
Interest expense 17 26
Equity settled stock based compensation 1,542 1,342
Performance share units - expense 5,855 8,560
Performance share units - paid (16,675) -
Pension expense 167 158
Pension paid (96) -
Income tax expense (recovery) (6,580) 671
Loss (gain) on fair value adjustment of share purchase warrants held (175) 743
Investment income recognized in net earnings (7,148) (194)
Other 79 (134)
Change in non-cash working capital (2,072) (15,918)
Cash generated from operations before income taxes and interest $ 131,695 $ 210,516
Income taxes paid (3,344) (32)
Interest paid (18) (26)
Interest received 6,771 82
Cash generated from operating activities $ 135,104 $ 210,540
Financing activities
Share purchase options exercised 9,376 5,772
Lease payments (202) (200)
Cash generated from financing activities $ 9,174 $ 5,572
Investing activities
Mineral stream interests $ (31,524) $ (45,252)
Early deposit mineral stream interests (750) (750)
Net proceeds on disposal of mineral stream interests (29) -
Acquisition of long-term investments (8,144) (20,135)
Dividends received - 112
Other (530) (36)
Cash used for investing activities $ (40,977) $ (66,061)
Effect of exchange rate changes on cash and cash equivalents $ 307 $ 67
Increase in cash and cash equivalents $ 103,608 $ 150,118
Cash and cash equivalents, beginning of period 696,089 226,045
Cash and cash equivalents, end of period $ 799,697 $ 376,163
Summary of Units Produced
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
Gold ounces produced ²
Salobo 43,677 37,939 44,212 34,129 44,883 48,235 55,205 55,590
Sudbury (3) 6,221 5,270 3,437 5,289 5,362 4,379 148 4,563
Constancia 6,905 10,496 7,196 8,042 6,311 9,857 8,533 5,525
San Dimas (4) 10,754 10,037 11,808 10,044 10,461 13,714 11,936 11,478
Stillwater (5) 1,960 2,185 1,833 2,171 2,497 2,664 2,949 2,962
Other
Minto 3,063 2,567 3,050 2,480 4,060 3,506 1,703 3,206
777 (6) - - - 3,509 4,003 4,462 4,717 5,035
Marmato 457 533 542 778 477 479 433 1,713
Total Other 3,520 3,100 3,592 6,767 8,540 8,447 6,853 9,954
Total gold ounces produced 73,037 69,027 72,078 66,442 78,054 87,296 85,624 90,072
Silver ounces produced (2)
Peñasquito 2,077 1,761 2,017 2,089 2,219 2,145 2,180 2,026
Antamina 872 1,107 1,377 1,379 1,260 1,366 1,548 1,558
Constancia 552 655 564 584 506 578 521 468
Other
Los Filos (7) 28 14 21 35 42 37 17 26
Zinkgruvan 525 664 642 739 577 482 658 457
Yauliyacu (8) - 261 463 756 637 382 372 629
Stratoni (9) - - - - - 129 18 164
Minto 29 33 33 25 45 44 25 33
Neves-Corvo 352 369 323 345 344 522 362 408
Aljustrel 343 313 246 292 287 325 314 400
Cozamin 141 157 179 169 186 213 199 183
Marmato 8 9 7 8 11 7 10 39
Keno Hill (10) - - - 48 20 30 44 55
777 (6) - - - 80 91 96 81 83
Total Other 1,426 1,820 1,914 2,497 2,240 2,267 2,100 2,477
Total silver ounces produced 4,927 5,343 5,872 6,549 6,225 6,356 6,349 6,529
Palladium ounces produced ²
Stillwater (5) 3,705 3,869 3,229 3,899 4,488 4,733 5,105 5,301
Cobalt pounds produced ²
Voisey's Bay 124 128 226 136 234 381 370 380
GEOs produced (11) 141,831 143,400 153,684 156,570 165,555 178,219 176,705 183,779
Average payable rate (2)
Gold 95.1% 94.9% 95.1% 95.1% 95.2% 96.0% 96.0% 95.8%
Silver 83.2% 83.5% 85.6% 85.8% 86.2% 86.0% 86.6% 86.9%
Palladium 96.0% 91.7% 95.0% 94.6% 92.7% 92.2% 94.5% 95.0%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (11) 89.7% 89.2% 90.3% 90.3% 90.6% 91.4% 91.3% 91.8%
1) All figures in thousands except gold and palladium ounces produced.
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 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. Operations at the Sudbury mines were suspended from June 1,
2021 to August 9, 2021 as a result of a labour disruption by unionized
employees.
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 2023 - 401,000 ounces;
Q4 2022 - 348,000 ounces; Q3 2022 - 412,000 ounces; Q2 2022 - 382,000 ounces;
Q1 2022 - 408,000 ounces; Q4 2021 - 544,000 ounces; Q3 2021 - 472,000 ounces;
Q2 2021 - 467,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) On June 22, 2022, Hudbay announced that mining activities at 777 have
concluded and closure activities have commenced.
7) Operations at Los Filos were temporarily suspended from June 22, 2021 to
July 26, 2021 as the result of illegal blockades by a group of unionized
employees and members of the Xochipala community.
8) On December 14, 2022 the Company terminated the Yauliyacu PMPA in
exchange for a cash payment of $132 million.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) On September 7, 2022, the Company terminated
the Keno Hill PMPA in exchange for $141 million of Hecla common stock.
11) GEOs, which are provided to assist the reader,
are based on the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound
cobalt; consistent with those used in estimating the Company's production
guidance for 2023.
Summary of Units Sold
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
Gold ounces sold
Salobo 35,966 41,029 31,818 48,515 42,513 47,171 35,185 57,296
Sudbury (2) 4,368 4,988 5,147 7,916 3,712 965 1,915 6,945
Constancia 6,579 6,013 6,336 7,431 10,494 6,196 8,159 2,321
San Dimas 10,651 10,943 10,196 10,633 10,070 15,182 11,346 11,214
Stillwater (3) 2,094 1,783 2,127 2,626 2,628 2,933 2,820 2,574
Other
Minto 2,341 2,982 2,559 2,806 3,695 2,462 1,907 2,359
777 126 785 3,098 3,629 4,388 4,290 5,879 5,694
Marmato 480 473 719 781 401 423 438 1,687
Total Other 2,947 4,240 6,376 7,216 8,484 7,175 8,224 9,740
Total gold ounces sold 62,605 68,996 62,000 84,337 77,901 79,622 67,649 90,090
Silver ounces sold
Peñasquito 1,483 2,066 1,599 2,096 2,188 1,818 2,210 1,844
Antamina 814 1,114 1,155 1,177 1,468 1,297 1,502 1,499
Constancia 366 403 498 494 644 351 484 295
Other
Los Filos 34 16 24 41 42 17 12 42
Zinkgruvan 520 547 376 650 355 346 354 355
Yauliyacu - 337 1,005 817 44 551 182 601
Stratoni - - - (2) 133 42 41 167
Minto 29 23 22 21 31 27 24 29
Neves-Corvo 171 80 105 167 204 259 193 215
Aljustrel 205 156 185 123 145 133 155 208
Cozamin 119 150 154 148 177 174 170 168
Marmato 7 7 8 11 8 8 10 35
Keno Hill 1 1 30 30 27 24 51 33
777 - 35 73 75 87 69 99 109
Total Other 1,086 1,352 1,982 2,081 1,253 1,650 1,291 1,962
Total silver ounces sold 3,749 4,935 5,234 5,848 5,553 5,116 5,487 5,600
Palladium ounces sold
Stillwater (3) 2,946 3,396 4,227 3,378 4,075 4,641 5,703 3,869
Cobalt pounds sold
Voisey's Bay 323 187 115 225 511 228 131 395
GEOs sold (4) 117,383 138,218 135,179 165,766 159,082 152,826 145,704 170,500
Cumulative payable units PBND (5)
Gold ounces 69,482 62,602 65,978 59,331 81,365 84,989 80,819 66,238
Silver ounces 3,223 2,835 3,467 3,573 3,912 4,200 3,845 3,802
Palladium ounces 5,751 5,098 5,041 6,267 5,535 5,629 5,619 6,822
Cobalt pounds 285 257 402 280 550 596 637 777
GEO (4) 119,775 106,946 119,936 114,617 143,075 150,991 142,620 130,081
Inventory on hand
Cobalt pounds 398 633 556 582 410 657 488 134
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) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce
silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2023.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended March 31, 2023
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 43,677 35,966 $ 1,904 $ 420 $ 330 $ 68,475 $ 41,471 $ 53,355 $ 2,371,378
Sudbury (4) 6,221 4,368 1,904 400 1,025 8,317 2,095 6,346 278,941
Constancia 6,905 6,579 1,904 416 316 12,526 7,710 9,788 93,506
San Dimas 10,754 10,651 1,904 624 260 20,279 10,865 13,629 153,101
Stillwater 1,960 2,094 1,904 334 510 3,987 2,220 3,288 214,783
Other (5) 3,520 2,947 1,904 1,385 86 5,612 1,278 1,155 525,338
73,037 62,605 $ 1,904 $ 496 $ 360 $ 119,196 $ 65,639 $ 87,561 $ 3,637,047
Silver
Peñasquito 2,077 1,483 $ 22.84 $ 4.43 $ 4.06 $ 33,872 $ 21,276 $ 27,303 $ 287,647
Antamina 872 814 22.84 4.55 7.06 18,594 9,142 14,888 539,623
Constancia 552 366 22.84 6.14 6.24 8,353 3,825 6,107 190,664
Other (6) 1,426 1,086 22.87 5.96 2.53 24,859 15,637 20,047 450,412
4,927 3,749 $ 22.85 $ 5.07 $ 4.48 $ 85,678 $ 49,880 $ 68,345 $ 1,468,346
Palladium
Stillwater 3,705 2,946 $ 1,607 $ 294 $ 408 $ 4,735 $ 2,666 $ 3,870 $ 225,609
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,440
Cobalt
Voisey's Bay 124 323 $ 15.04 $ 3.30 ⁷ $ 13.85 $ 4,856 $ (684) $ 4,485 $ 356,447
Operating results $ 214,465 $ 117,501 $ 164,261 $ 5,696,889
Other
General and administrative $ (10,099) $ (14,052)
Share based compensation (7,397) (16,675)
Donations and community investments (1,378) (1,408)
Finance costs (1,378) (1,067)
Other 7,562 7,389
Income tax 6,580 (3,344)
Total other $ (6,110) $ (29,157) $ 1,208,590
$ 111,391 $ 135,104 $ 6,905,479
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 and the non-operating Stobie and Victor gold interests.
5) Comprised of the operating Minto and Marmato gold interests as well as
the non-operating 777, Copper World Complex, Santo Domingo, Blackwater, Fenix,
Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo,
Aljustrel, Minto, Cozamin and Marmato silver interests and the non-operating
777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater
and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced.
7) Cash cost per pound of cobalt sold during the first quarter of 2023 was
net of a previously recorded inventory write-down of $1 million, resulting in
a decrease of $3.18 per pound of cobalt sold. The Company reflects the cobalt
inventory at the lower of cost and net realizable value, and will continue to
monitor the market price of cobalt relative to the carrying of the inventory
at each reporting period.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended March 31, 2023 were as follows:
Three Months Ended March 31, 2023
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 141,831 117,383 $ 1,827 $ 443 $ 1,384 $ 383 $ 1,001
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce
silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2023.
Three Months Ended March 31, 2022
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 44,883 42,513 $ 1,872 $ 416 $ 334 $ 79,564 $ 47,684 $ 61,869 $ 2,423,755
Sudbury (4) 5,362 3,712 1,861 400 1,092 6,909 1,370 5,425 303,115
Constancia 6,311 10,494 1,872 412 271 19,641 12,471 15,482 100,944
San Dimas 10,461 10,070 1,872 618 260 18,846 10,008 12,621 164,110
Stillwater 2,497 2,628 1,872 329 429 4,918 2,926 4,054 218,657
Other (5) 8,540 8,484 1,862 771 25 15,797 9,048 8,822 404,729
78,054 77,901 $ 1,870 $ 477 $ 321 $ 145,675 $ 83,507 $ 108,273 $ 3,615,310
Silver
Peñasquito 2,219 2,188 $ 24.10 $ 4.36 $ 3.57 $ 52,727 $ 35,387 $ 43,188 $ 314,217
Antamina 1,260 1,468 24.09 4.94 7.06 35,359 17,747 27,759 569,691
Constancia 506 644 24.10 6.08 6.33 15,513 7,526 11,913 201,811
Other (6) 2,240 1,253 24.52 6.07 3.45 30,733 18,797 23,874 589,875
6,225 5,553 $ 24.19 $ 5.10 $ 4.78 $ 134,332 $ 79,457 $ 106,734 $ 1,675,594
Palladium
Stillwater 4,488 4,075 $ 2,339 $ 394 $ 399 $ 9,533 $ 6,303 $ 7,930 $ 231,203
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,820
Cobalt
Voisey's Bay 234 511 $ 34.61 $ 5.76 $ 8.17 $ 17,704 $ 10,581 $ 3,263 $ 367,957
Operating results $ 307,244 $ 179,848 $ 226,200 $ 5,894,884
Other
General and administrative $ (9,403) $ (15,128)
Share based compensation (9,902) -
Donations and community investments (813) (430)
Finance costs (1,422) (1,077)
Other (170) 1,007
Income tax (671) (32)
Total other $ (22,381) $ (15,660) $ 575,149
$ 157,467 $ 210,540 $ 6,470,033
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) Comprised of the operating Minto, 777 and Marmato gold interests as well
as the non-operating Copper World Complex gold interest. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and closure
activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo,
Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating
Stratoni, Loma de La Plata, Copper World Complex and Pascua-Lama silver
interests and the previously owned Keno Hill and Yauliyacu silver interests.
On June 22, 2022, Hudbay announced that mining activities at 777 have
concluded and closure activities have commenced. On September 7, 2022, the
Keno Hill PMPA was terminated in exchange for $141 million of Hecla common
stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for
a cash payment of $132 million.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended March 31, 2022 were as follows:
Three Months Ended March 31, 2022
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 165,555 159,082 $ 1,931 $ 440 $ 1,491 $ 361 $ 1,130
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce
silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2023.
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
March 31
(in thousands, except for per share amounts) 2023 2022
Net earnings $ 111,391 $ 157,467
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held (175) 743
Income tax (expense) recovery recognized in the Statement of Shareholders' - 793
Equity
Income tax (expense) recovery recognized in the Statement of OCI (3,954) (194)
Income tax expense (recovery) resulting from disposal of Mineral Stream (2,672) -
Interest, net of above
Other (159) (802)
Adjusted net earnings $ 104,431 $ 158,007
Divided by:
Basic weighted average number of shares outstanding 452,370 450,915
Diluted weighted average number of shares outstanding 453,159 451,953
Equals:
Adjusted earnings per share - basic $ 0.231 $ 0.350
Adjusted earnings per share - diluted $ 0.230 $ 0.350
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) 2023 2022
Cash generated by operating activities $ 135,104 $ 210,540
Divided by:
Basic weighted average number of shares outstanding 452,370 450,915
Diluted weighted average number of shares outstanding 453,159 451,953
Equals:
Operating cash flow per share - basic $ 0.299 $ 0.467
Operating cash flow per share - diluted $ 0.298 $ 0.466
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, 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
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2023 2022
Cost of sales $ 96,964 $ 127,396
Less: depletion (45,000) (57,402)
Cash cost of sales $ 51,964 $ 69,994
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 31,035 $ 37,133
Total cash cost of silver sold 18,997 28,314
Total cash cost of palladium sold 866 1,603
Total cash cost of cobalt sold 1,066 2,944
Total cash cost of sales $ 51,964 $ 69,994
Divided by:
Total gold ounces sold 62,605 77,901
Total silver ounces sold 3,749 5,553
Total palladium ounces sold 2,946 4,075
Total cobalt pounds sold 323 511
Equals:
Average cash cost of gold (per ounce) $ 496 $ 477
Average cash cost of silver (per ounce) $ 5.07 $ 5.10
Average cash cost of palladium (per ounce) $ 294 $ 394
Average cash cost of cobalt (per pound) $ 3.30 $ 5.76
iv. Cash operating margin is calculated by subtracting the average cash
cost of gold, silver and palladium on a per ounce basis and cobalt on a per
pound basis from the average realized selling price of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis. 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) 2023 2022
Total sales:
Gold $ 119,196 $ 145,675
Silver $ 85,678 $ 134,332
Palladium $ 4,735 $ 9,533
Cobalt $ 4,856 $ 17,704
Divided by:
Total gold ounces sold 62,605 77,901
Total silver ounces sold 3,749 5,553
Total palladium ounces sold 2,946 4,075
Total cobalt pounds sold 323 511
Equals:
Average realized price of gold (per ounce) $ 1,904 $ 1,870
Average realized price of silver (per ounce) $ 22.85 $ 24.19
Average realized price of palladium (per ounce) $ 1,607 $ 2,339
Average realized price of cobalt (per pound) $ 15.04 $ 34.61
Less:
Average cash cost of gold (1) (per ounce) $ (496) $ (477)
Average cash cost of silver (1) (per ounce) $ (5.07) $ (5.10)
Average cash cost of palladium (1) (per ounce) $ (294) $ (394)
Average cash cost of cobalt (1) (per pound) $ (3.30) $ (5.76)
Equals:
Cash operating margin per gold ounce sold $ 1,408 $ 1,393
As a percentage of realized price of gold 74% 74%
Cash operating margin per silver ounce sold $ 17.78 $ 19.09
As a percentage of realized price of silver 78% 79%
Cash operating margin per palladium ounce sold $ 1,313 $ 1,945
As a percentage of realized price of palladium 82% 83%
Cash operating margin per cobalt pound sold $ 11.74 $ 28.85
As a percentage of realized price of cobalt 78% 83%
1) Please refer to non-IFRS measure (iii), above.
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.sedar.com.
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 the future price of
commodities, the estimation of future production from 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 mineral stream interests owned by Wheaton (the "Mining
Operations"), the payment of upfront cash consideration to counterparties
under PMPAs, the satisfaction of each party's obligations in accordance with
PMPAs and royalty arrangements and the receipt by the Company of precious
metals and cobalt production in respect of the applicable Mining Operations
under PMPAs or other payments under royalty arrangements, 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, the costs of future production, the
estimation of produced but not yet delivered ounces, the impact of epidemics
(including the COVID-19 virus pandemic), including the potential heightening
of other risks, future sales of common shares under the ATM program, continued
listing of the Company's common shares, any statements as to future dividends,
the ability to fund outstanding commitments and the ability to continue to
acquire accretive PMPAs, including any acceleration of payments, 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
and the impact of the CRA Settlement, possible 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
Company's PMPAs or royalty arrangements, 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 the exploration, development,
operating, expansion and improvement of the Mining Operations, environmental
and economic risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the 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 Mining Operations, uncertainty in
the estimation of production from Mining Operations, uncertainty in the
accuracy of mineral reserve and mineral resource estimation, risks of
significant impacts on Wheaton or the Mining Operations as a result of an
epidemic (including the COVID-19 virus pandemic), the ability of each party to
satisfy their obligations in accordance with the terms of the PMPAs, the
estimation of future production from Mining Operations, Wheaton's
interpretation of, compliance with or application of, tax laws and regulations
or accounting policies and rules being found to be incorrect, 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,
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),
potential implementation of a 15% global minimum tax, counterparty credit and
liquidity, mine operator concentration, indebtedness and guarantees, hedging,
competition, claims and legal proceedings against Wheaton or the Mining
Operations, security over underlying assets, governmental regulations,
international operations of Wheaton and the Mining Operations, exploration,
development, operations, expansions and improvements at the Mining Operations,
environmental regulations, climate change, Wheaton and the Mining Operations
ability to obtain and maintain necessary licenses, permits, approvals and
rulings, Wheaton and the Mining Operations ability to comply with applicable
laws, regulations and permitting requirements, lack of suitable supplies,
infrastructure and employees to support the 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 of title and
indigenous rights with respect to the Mining Operations, environmental, social
and governance matters, Wheaton and the Mining Operations ability to obtain
adequate financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial conditions,
Wheaton's acquisition strategy 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.sedar.com (http://www.sedar.com)
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): 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 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 neither Wheaton nor the Mining Operations will suffer significant impacts
as a result of an epidemic (including the COVID-19 virus pandemic), that any
outbreak or threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally, regionally and
internationally, without such response requiring any prolonged closure of the
Mining Operations or having other material adverse effects on the Company and
counterparties to its PMPAs, that the trading of the Company's 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, and that the net proceeds of sales of common shares, if
any, will be used as anticipated, that expectations regarding the resolution
of legal and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure and
operations, that Wheaton has filed its tax returns and paid applicable taxes
in compliance with Canadian tax law, that Wheaton's application of the CRA
Settlement is accurate (including the Company's assessment that there will be
no material change in the Company's facts or change in law or jurisprudence),
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, 2022, which was filed on March 31, 2023
and other continuous disclosure documents filed by Wheaton since January 1,
2023, available on SEDAR at www.sedar.com. 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) .
For further information, please contact:
Patrick Drouin or Emma Murray
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
1 (#_ednref1) Please refer to non-IFRS measures at the end of 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 date May 4, 2023, titled "Wheaton Precious
Metals Declares Quarterly Dividend."
2 (#_ednref2) Statements made in this section contain forward-looking
information with respect to forecast production, funding outstanding
commitments and continuing to acquire accretive mineral stream interests 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 (#_ednref3) Company reports & S and P Capital IQ est. of 2022
byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver
mines. GEOs relating to production and guidance, which are provided to assist
the reader, are based on the following commodity price assumptions: gold
$1,850/oz, silver $24/oz, palladium $1,800/oz, platinum $1,100/oz and cobalt
$18.75/lb. Five- and ten-year guidance does not include any production from
Pascua-Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo
outside of the Salobo III expansion. In addition, five-year guidance also does
not include any production from Kutcho, or the Victor project at Sudbury.
Ounces produced represent the quantity of silver, gold, palladium and cobalt
contained in concentrate or doré prior to smelting or refining deductions.
4 (#_ednref4) Portfolio mine life based on recoverable reserves and
resources as of Dec 31, 2022, and 2022 actual mill throughput and is weighted
by individual reserve and resource category.
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