REG - Wheaton Precious Met - First Quarter Results
06/05/2022 07:00
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RNS Number : 5382K Wheaton Precious Metals Corp. 06 May 2022
May 6, 2022
Vancouver, British Columbia
Designated News Release
FIRST quarter 2022 financial results
TSX | NYSE | LSE: WPM
WHEATON PRECIOUS METALS Announces solid start to 2022
"Wheaton once again had a solid start to the year, generating over $210
million in operating cash flow and continuing to return value to our
shareholders through our competitive dividend," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals. "In the
first three months of 2022, we added two new streams and increased our
interest in a pre-existing stream. In addition, we took a significant step in
strengthening our environmental, social and governance strategy by formalizing
our climate change policy, including setting a goal of reaching net zero
carbon emissions by 2050. The year is off to a good start, and I look forward
to advancing on all of our initiatives throughout the year in order to
continue building a strong, sustainable business, that delivers value and
growth to all of our stakeholders."
First Quarter 2022 Highlights:
· Over $305 million in revenue and $210 million in operating cash flow
during the quarter, resulting in a net cash balance of $376 million as at
March 31, 2022.
· $158 million in adjusted net earnings(1) during the first quarter of
2022.
· Announced a new precious metal purchase agreement ("PMPA") on
Adventus Mining Corporation's Curipamba Project in respect of gold and silver
production.
· Announced PMPA on Sabina Gold & Silver Corp.'s Goose Project in
respect of gold production.
· Amended the PMPA on Aris Gold Corp.'s Marmato Mine, increasing the
gold stream in exchange for additional upfront consideration.
· Adopted a climate change policy and commitment to net zero carbon
emissions by 2050.
· Declared quarterly dividend(1) of $0.15 per common share, an increase
of 7% relative to the comparable period in 2021.
Operational Overview
(all figures in US dollars unless otherwise noted) Q1 2022 Q1 2021 Change
Units produced
Gold ounces 79,087 78,529 0.7 %
Silver ounces 6,206 6,765 (8.3)%
Palladium ounces 4,488 5,769 (22.2)%
Cobalt pounds 234 1,162 (79.8)%
Gold equivalent ounces (2) 171,367 196,756 (12.9)%
Units sold
Gold ounces 77,901 75,104 3.7 %
Silver ounces 5,553 6,657 (16.6)%
Palladium ounces 4,075 5,131 (20.6)%
Cobalt pounds 511 132 286.7%
Gold equivalent ounces (2) 166,065 172,271 (3.6)%
Revenue $ 307,244 $ 324,119 (5.2)%
Net earnings $ 157,467 $ 162,002 (2.8)%
Per share $ 0.349 $ 0.360 (3.1)%
Adjusted net earnings (1) $ 158,007 $ 161,132 (1.9)%
Per share (1) $ 0.350 $ 0.358 (2.2)%
Operating cash flows $ 210,540 $ 232,154 (9.3)%
Per share (1) $ 0.467 $ 0.516 (9.5)%
All amounts in thousands except gold, palladium & gold equivalent ounces
and cobalt pounds produced & sold, and per share amounts.
Financial Review
Revenues
Revenue was $307 million in the first quarter of 2022 representing a 5%
decrease from the first quarter of 2021 due primarily to a 4% decrease in the
number of GEOs² sold.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2022 were $421 per GEO² as
compared to $457 in the first quarter of 2021. This resulted in a cash
operating margin¹ of $1,429 per GEO² sold, virtually unchanged as compared
with the first quarter of 2021.
Balance Sheet (at March 31, 2022)
· Approximately $376 million of cash on hand.
· The Company's $2 billion revolving term loan (the "Revolving
Facility") remains fully undrawn.
· The Company is well positioned to fund all outstanding commitments as
well as providing flexibility to acquire additional accretive mineral stream
interests.
First Quarter Asset Highlights
Salobo: In the first quarter of 2022, Salobo produced 44,900 ounces of
attributable gold, a decrease of approximately 4% relative to the first
quarter of 2021. According to Vale S.A. ("Vale"), during the quarter, Salobo
operations were impacted by both planned and corrective maintenance in the
mill liners. In addition, above average seasonal rain level in the region
during the fourth quarter of 2021 impacted mine plans in the first quarter of
2022; however, Vale does not anticipate any impact to the overall 2022
production.
As per Vale's First Quarter 2022 Performance Report, on January 6, 2022, heavy
rainfall in the region of the Salobo III mine expansion caused a landslide
that damaged part of a conveyor belt and blocked access to the project site.
Vale reports that remediation work on the conveyor is ongoing and is expected
to be completed in May. Furthermore, Vale does not foresee the impacts of this
event modifying the project delivery date beyond the fourth quarter of 2022.
Vale reports that physical completion of the Salobo III mine expansion was 90%
at the end of the first quarter.
Antamina: In the first quarter of 2022, Antamina produced 1.3 million ounces
of attributable silver, a decrease of approximately 20% relative to the first
quarter of 2021, primarily due to lower grades as per the mine plan.
Constancia: In the first quarter of 2022, Constancia produced 0.5 million
ounces of attributable silver and 6,300 ounces of attributable gold, an
increase of approximately 25% and 157%, respectively, relative to the first
quarter of 2021. Silver production increased primarily due to higher
throughput and grades. The increase in gold production was primarily due to
higher grades resulting from the commencement of ore production from the
Pampacancha satellite deposit and the increase in fixed recoveries from 55% to
70%.
Sudbury: In the first quarter of 2022, Vale's Sudbury mines produced 6,400
ounces of attributable gold, a decrease of approximately 9% relative to the
first quarter of 2021 primarily due to lower throughput as a result of the
temporary closure of the Totten mine. As per Vale, on September 26, 2021, a
large piece of equipment, called a bucket scoop, blocked and damaged the mine
shaft resulting in its temporary closure. Vale has reported that production at
the Totten mine, which accounts for approximately 15% to 20% of the Company's
attributable gold production from Sudbury, resumed in the first quarter of
2022 and that operations at the Sudbury mines are expected to normalize in the
second quarter of 2022.
Stillwater: In the first quarter of 2022, the Stillwater mines produced 2,500
ounces of attributable gold and 4,500 ounces of attributable palladium, a
decrease of approximately 18% for gold and 22% for palladium relative to the
first quarter of 2021. The decrease was due to lower throughput and grades,
partially offset by higher recoveries.
San Dimas: In the first quarter of 2022, San Dimas produced 10,500 ounces of
attributable gold, virtually unchanged relative to the first quarter of 2021.
First Majestic Silver Corp. ("First Majestic") reports that production in the
first quarter of 2022 was impacted due to high absenteeism in the months of
January and February caused by an increase in COVID-19 infections within the
Tayoltita community.
Other Gold: In the first quarter of 2022, total Other Gold attributable
production was 8,500 ounces, a decrease of approximately 4% relative to the
first quarter of 2021, primarily due to the mining of lower grade material at
777, which is scheduled to close in June 2022.
Other Silver: In the first quarter of 2022, total Other Silver attributable
production was 2.2 million ounces, a decrease of approximately 14% relative to
the first quarter of 2021, primarily due to lower grades at Aljustrel and the
placement of Stratoni into care and maintenance.
Voisey's Bay: In the first quarter of 2022, the Voisey's Bay mine produced 234
thousand pounds of attributable cobalt, a decrease of approximately 80%
relative to the first quarter of 2021. The apparent significant decrease
relative to the first quarter of 2021 was primarily attributed to Wheaton
being contractually entitled to any cobalt processed at the Long Harbour
Processing Plant as of January 1, 2021, resulting in reported production in
the first quarter of 2021 including some material produced at the Voisey's Bay
Mine from prior periods. As per Vale's First Quarter 2022 Performance Report,
physical completion of the Voisey's Bay underground mine extension was 70% at
the end of the first quarter.
Produced But Not Yet Delivered 3 and Inventory
As at March 31, 2022, payable ounces and pounds attributable to the Company
produced but not yet delivered amounted to:
· 82,400 payable gold ounces, a decrease of 2,600 ounces during Q1
2022, primarily due to decreases at the Constancia and 777 mines partially
offset by an increase at the Sudbury mines.
· 3.9 million payable silver ounces, a decrease of 0.3 million ounces
during Q1 2022.
· 5,500 payable palladium ounces, virtually unchanged during Q1 2022.
· 550 thousand payable cobalt pounds, virtually unchanged during Q1
2022.
As of March 31, 2022, approximately 410 thousand pounds of cobalt were held in
inventory by Wheaton, a decrease of 247 pounds during Q1 2022.
Detailed mine-by-mine production and sales figures can be found in the
Appendix to this press release and in Wheaton's consolidated MD&A in the
'Results of Operations and Operational Review' section.
Corporate Development
Curipamba PMPA: On January 17, 2022, the Company entered into a PMPA with
Adventus Mining Corporation ("Adventus") in respect of the Curipamba Project
("Curipamba") located in Ecuador. Under the Curipamba PMPA, Wheaton will
purchase 50% of the payable gold production until 145,000 ounces have been
delivered, thereafter dropping to 33% of payable gold production for the life
of the mine and 75% of the payable silver production until 4.6 million ounces
have been delivered, thereafter dropping to 50% for the life of mine. Under
the terms of the agreement, the Company is committed to pay Adventus total
upfront cash consideration of $175.5 million, $13 million of which is
available pre-construction and $500,000 of which will be paid to support
certain local community development initiatives around Curipamba. The
remainder will be payable in four staged installments during construction,
subject to various customary conditions being satisfied. In addition, Wheaton
will make ongoing production payments for the gold and silver ounces delivered
equal to 18% of the spot prices until the value of gold and silver delivered,
net of the production payment, is equal to the upfront consideration of $175.5
million, at which point the production payment will increase to 22% of the
spot prices.
Marathon PMPA: On January 26, 2022, the Company entered into the previously
announced PMPA with Generation Mining Limited ("Gen Mining") in respect of the
Marathon Project located in Ontario, Canada. Under the Marathon PMPA, Wheaton
will purchase 100% of the payable gold production until 150,000 ounces have
been delivered, thereafter dropping to 67% of payable gold production for the
life of the mine and 22% of the payable platinum production until 120,000
ounces have been delivered, thereafter dropping to 15% for the life of mine.
Under the terms of the agreement, the Company has committed to pay Gen Mining
total upfront cash consideration of C$240 million, C$40 million of which will
be paid prior to construction and to be used for the development of the
Marathon Project, with the remainder payable in four staged installments
during construction, subject to various customary conditions being satisfied
and pre-determined completion tests. Of this amount, $16 million (C$20
million) was paid on March 31, 2022. In addition, Wheaton will make ongoing
production payments for the gold and platinum ounces delivered equal to 18% of
the spot prices until the value of gold and platinum delivered, net of the
production payment, is equal to the upfront consideration of C$240 million, at
which point the production payment will increase to 22% of the spot prices.
Goose PMPA: On February 8, 2022, the Company announced that it had entered
into a PMPA with Sabina Gold & Silver Corp. ("Sabina") in respect of the
Goose Project, part of Sabina's Back River Gold District located in Nunavut,
Canada. Under the Goose PMPA, Wheaton will purchase 4.15% of the payable gold
production until 130,000 ounces have been delivered, thereafter dropping to
2.15% until 200,000 ounces have been delivered, thereafter dropping to 1.5% of
the payable gold production. Under the terms of the agreement, the Company has
committed to pay Sabina an upfront payment of $125 million in four equal
installments during construction of the Goose Project, subject to customary
conditions. In addition, Wheaton will make ongoing production payments for the
gold ounces delivered equal to 18% of the spot gold price until the value of
gold, net of the production payment is equal to the upfront consideration of
$125 million, at which point the production payment will increase to 22% of
the spot gold price.
Amendment to the Marmato PMPA: On March 21, 2022, the Company amended its PMPA
with Aris Gold Corporation ("Aris Gold") in respect of the Marmato mines.
Under the amended terms, Wheaton will purchase 10.5% of the gold production
and 100% of the silver production from the Marmato Upper and Lower mines until
310,000 ounces of gold and 2.15 million ounces of silver have been delivered,
after which the stream drops to 5.25% of the gold production and 50% of the
silver production for the life of mine. This increases the gold stream from
the original Marmato PMPA under which Wheaton was entitled to purchase 6.5% of
the gold production until 190,000 ounces were delivered, after which the
stream was to drop to 3.25% of the gold production. The silver stream is
unchanged. Under the terms of the amended Marmato PMPA, the Company is
committed to pay Aris Gold total upfront cash payments of $175 million ($65
million relating to the increase in the gold stream). Of this amount, $53
million ($15 million relating to the increase in the gold stream) has been
paid and the remaining amount is payable during the construction of the
Marmato Lower Mine, subject to customary conditions.
Sustainability
Climate Change Commitments: On February 9, 2022, Wheaton announced the
adoption of a Climate Change and Environmental Policy and commitment to net
zero carbon emissions by 2050 4 . As part of this policy, Wheaton plans to
establish targets across both Scope 2 and Scope 3 attributable emissions to
support a 1.5° C trajectory. The Company has also committed an initial $4M to
support our mining partners' efforts to move to renewable energy sources and
reduce emissions at the mines in which we have an interest.
San Dimas Receives Recognition for Sustainability Efforts: The Mexican Center
for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility
(AliaRSE) has awarded First Majestic Silver Corp.'s ("First Majestic") San
Dimas mining unit the Socially Responsible Business Distinction for 2022
(Distintivo Empressa Socialmente Responsible 2022). This distinction from
within the Mexican community recognizes excellence in environmental and social
responsibility and ethical management.
Partner Community Investment Program: Wheaton continues to support a wide
range of programs with mining partners including Vale, Glencore, Hudbay and
First Majestic Silver, focused on education, health, entrepreneurial support,
and community engagement opportunities in the communities near the mines from
which Wheaton receives precious metals. In the first quarter of 2022, all
Partner Community Investment programs continued to operate as planned such as
the continued enrollment of existing schoolteachers and administrators into
the Enseña Peru training program, aimed at improving the academic performance
for students living close to the Antamina mine. During the quarter, the
Wheaton team focused on engaging with partners on identifying and selecting
programs and initiatives to be supported by Wheaton for 2022 and beyond.
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 2022 is forecast to be 350,000
to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000
to 48,000 GEOs(2) of other metals, resulting in production of approximately
700,000 to 760,000 GEOs(2), unchanged from previous guidance. For the
five-year period ending in 2026, the Company estimates that average production
will amount to 850,000 GEOs(2), while for the ten-year period ending in 2031,
the Company estimates that average annual production will amount to 910,000
GEOs(2), also unchanged from previous guidance.
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 and webcast will be held on Friday, May 6, 2022 starting at
8:00am PT / 11:00 am ET to discuss these results. To participate in the live
call please use one of the following methods:
Dial toll free from Canada or the US: 1-888-664-6383
Dial from outside Canada or the US: 1-416-764-8650
Pass
code:
78834538
Live webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321
(https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321)
Participants should dial in five to ten minutes before the call.
The accompanying slideshow will also be available in PDF format on the
'Presentations' page of the Wheaton Precious Metals website before the
conference call.
The conference call will be recorded and available until May 13, 2022 at 11:59
pm ET. The webcast will be available for one year. You can listen to an
archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-390-0541
Dial from outside Canada or the US: 1-416-764-8677
Pass
code:
834538 #
Archived webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321
(https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321)
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 is 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.
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) .
Condensed Interim Consolidated Statements of Earnings
Three Months Ended
March 31
(US dollars and shares in thousands, except per share amounts - unaudited) 2022 2021
Sales $ 307,244 $ 324,119
Cost of sales
Cost of sales, excluding depletion $ 69,994 $ 78,783
Depletion 57,402 70,173
Total cost of sales $ 127,396 $ 148,956
Gross margin $ 179,848 $ 175,163
General and administrative expenses 9,403 9,735
Share based compensation 9,902 1,630
Donations and community investments 813 606
Earnings from operations $ 159,730 $ 163,192
Other (income) expense 170 119
Earnings before finance costs and income taxes $ 159,560 $ 163,073
Finance costs 1,422 1,573
Earnings before income taxes $ 158,138 $ 161,500
Income tax (expense) recovery (671) 502
Net earnings $ 157,467 $ 162,002
Basic earnings per share $ 0.349 $ 0.360
Diluted earnings per share $ 0.348 $ 0.360
Weighted average number of shares outstanding
Basic 450,915 449,509
Diluted 451,953 450,600
Condensed Interim Consolidated Balance Sheets
As at As at
March 31
December 31
(US dollars in thousands - unaudited) 2022 2021
Assets
Current assets
Cash and cash equivalents $ 376,163 $ 226,045
Accounts receivable 27,939 11,577
Other 9,875 12,102
Total current assets $ 413,977 $ 249,724
Non-current assets
Mineral stream interests $ 5,894,884 $ 5,905,797
Early deposit mineral stream interests 45,342 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 92,194 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 5,183 5,509
Other 11,847 15,211
Total non-current assets $ 6,056,056 $ 6,046,427
Total assets $ 6,470,033 $ 6,296,151
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,861 $ 13,935
Dividends payable 67,687 -
Current portion of performance share units 31,413 14,807
Current portion of lease liabilities 830 813
Other 150 136
Total current liabilities $ 111,941 $ 29,691
Non-current liabilities
Lease liabilities 1,868 2,060
Deferred income taxes 121 100
Performance share units 3,759 11,498
Pension liability 2,883 2,685
Total non-current liabilities $ 8,631 $ 16,343
Total liabilities $ 120,572 $ 46,034
Shareholders' equity
Issued capital $ 3,711,294 $ 3,698,998
Reserves 44,304 47,036
Retained earnings 2,593,863 2,504,083
Total shareholders' equity $ 6,349,461 $ 6,250,117
Total liabilities and shareholders' equity $ 6,470,033 $ 6,296,151
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended
March 31
(US dollars in thousands - unaudited) 2022 2021
Operating activities
Net earnings $ 157,467 $ 162,002
Adjustments for
Depreciation and depletion 57,795 70,649
Interest expense 26 262
Equity settled stock based compensation 1,342 1,325
Performance share units 8,560 305
Pension expense 158 151
Income tax expense (recovery) 671 (502)
Loss (gain) on fair value adjustment of share purchase warrants held 743 950
Fair value (gain) loss on convertible note receivable 1,380 (1,238)
Investment income recognized in net earnings (194) (2)
Other (1,514) 593
Change in non-cash working capital (15,918) (1,972)
Cash generated from operations before income taxes and interest $ 210,516 $ 232,523
Income taxes recovered (paid) (32) (30)
Interest paid (26) (341)
Interest received 82 2
Cash generated from operating activities $ 210,540 $ 232,154
Financing activities
Bank debt repaid $ - $ (195,000)
Share purchase options exercised 5,772 4,793
Lease payments (200) (214)
Cash (used for) generated from financing activities $ 5,572 $ (190,421)
Investing activities
Mineral stream interests $ (45,252) $ (151,019)
Early deposit mineral stream interests (750) (750)
Mineral royalty interest - (3,561)
Acquisition of long-term investments (20,135) -
Proceeds on disposal of long-term investments - 112,188
Dividends received 112 -
Other (36) (134)
Cash (used for) generated from investing activities $ (66,061) $ (43,276)
Effect of exchange rate changes on cash and cash equivalents $ 67 $ 22
Increase (decrease) in cash and cash equivalents $ 150,118 $ (1,521)
Cash and cash equivalents, beginning of period 226,045 192,683
Cash and cash equivalents, end of period $ 376,163 $ 191,162
Summary of Units Produced
Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Gold ounces produced ²
Salobo 44,883 48,235 55,205 55,590 46,622 62,854 63,408 59,104
Sudbury (3) 6,395 4,379 148 4,563 7,004 6,659 3,798 9,257
Constancia (7) 6,311 9,857 8,533 5,525 2,453 3,929 3,780 3,470
San Dimas (4, 7) 10,461 13,714 11,936 11,478 10,491 11,652 9,228 6,074
Stillwater (5) 2,497 2,664 2,949 2,962 3,041 3,290 3,176 3,222
Other
Minto 4,060 3,506 1,703 3,206 2,638 789 1,832 2,928
777 (8) 4,003 4,462 4,717 5,035 6,280 2,866 5,278 4,728
Marmato 477 479 433 1,713 - - - -
Total Other 8,540 8,447 6,853 9,954 8,918 3,655 7,110 7,656
Total gold ounces produced 79,087 87,296 85,624 90,072 78,529 92,039 90,500 88,783
Silver ounces produced (2)
Peñasquito (7) 2,219 2,145 2,180 2,026 2,202 2,014 1,992 967
Antamina (7) 1,260 1,366 1,548 1,558 1,577 1,930 1,516 612
Constancia (7) 506 578 521 468 406 478 430 254
Other
Los Filos (7) 23 37 17 26 31 6 17 14
Zinkgruvan 577 482 658 457 420 515 498 389
Yauliyacu (7) 637 382 372 629 737 454 679 273
Stratoni (9) - 129 18 164 165 185 156 148
Minto 45 44 25 33 21 16 15 19
Neves-Corvo 344 522 362 408 345 420 281 479
Aljustrel 287 325 314 400 474 440 348 388
Cozamin 186 213 199 183 230 - - -
Marmato 11 7 10 39 - - - -
Keno Hill 20 30 44 55 27 - - -
777 (8) 91 96 81 83 130 51 96 108
Total Other 2,221 2,267 2,100 2,477 2,580 2,087 2,090 1,818
Total silver ounces produced 6,206 6,356 6,349 6,529 6,765 6,509 6,028 3,651
Palladium ounces produced ²
Stillwater (5) 4,488 4,733 5,105 5,301 5,769 5,672 5,444 5,759
Cobalt pounds produced ²
Voisey's Bay 234 381 370 380 1,162 ¹⁰ - - -
GEOs produced (6) 171,367 184,551 183,012 190,272 196,756 185,436 177,230 144,188
SEOs produced (6) 12,853 13,841 13,726 14,270 14,757 13,908 13,292 10,814
Average payable rate (2)
Gold 95.2% 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% 94.7%
Silver 86.1% 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% 81.9%
Palladium 92.7% 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% 90.8%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% n.a. n.a. n.a.
GEO (6) 90.6% 91.4% 91.3% 91.8% 90.7% 91.2% 91.2% 90.0%
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. 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. Effective April 1, 2020, the
fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio
being reinstated on October 15, 2020. For reference, attributable silver
production from prior periods is as follows: Q1-2022 - 408,000 ounces; Q4-2021
- 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021
- 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020
- 276,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
7) Operations at these mines had been temporarily suspended during the
second quarter of 2020 as a result of the COVID-19 pandemic. During the second
half of 2020, all of the operations were restarted. Additionally, operations
at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the
result of an illegal road blockade by members of the nearby Carrizalillo
community and had been 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) Operations at 777 were temporarily suspended from October 11, 2020 to
November 25, 2020 as a result of an incident that occurred on October 9th
during routine maintenance of the hoist rope and skip.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) Effective January 1, 2021, the Company
was entitled to cobalt production from the Voisey's Bay mine. As per the
Voisey's Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at
the Long Harbour Processing Plant as of January 1, 2021, resulting in reported
production in the first quarter of 2021 including some material produced at
the Voisey's Bay mine in the previous quarter.
Summary of Units Sold
Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
Gold ounces sold
Salobo 42,513 47,171 35,185 57,296 51,423 53,197 59,584 68,487
Sudbury (2) 3,712 965 1,915 6,945 3,691 7,620 7,858 7,414
Constancia (6) 10,494 6,196 8,159 2,321 1,676 3,853 4,112 3,024
San Dimas (6) 10,070 15,182 11,346 11,214 10,273 11,529 9,687 6,030
Stillwater (3) 2,628 2,933 2,820 2,574 3,074 3,069 3,015 3,066
Other
Minto 3,695 2,462 1,907 2,359 2,390 1,540 - -
777 4,388 4,290 5,879 5,694 2,577 5,435 5,845 4,783
Marmato 401 423 438 1,687 - - - -
Total Other 8,484 7,175 8,224 9,740 4,967 6,975 5,845 4,783
Total gold ounces sold 77,901 79,622 67,649 90,090 75,104 86,243 90,101 92,804
Silver ounces sold
Peñasquito (6) 2,188 1,818 2,210 1,844 2,174 1,417 1,799 1,917
Antamina (6) 1,468 1,297 1,502 1,499 1,930 1,669 1,090 788
Constancia (6) 644 351 484 295 346 442 415 254
Other
Los Filos (6) 42 17 12 42 27 - 19 25
Zinkgruvan 355 346 354 355 293 326 492 376
Yauliyacu (6) 44 551 182 601 1,014 15 580 704
Stratoni 133 42 41 167 117 169 134 77
Minto 31 27 24 29 26 20 - -
Neves-Corvo 204 259 193 215 239 145 201 236
Aljustrel 145 133 155 208 257 280 148 252
Cozamin 177 174 170 168 173 - - -
Marmato 8 8 10 35 - - - -
Keno Hill 27 24 51 33 12 - - -
777 87 69 99 109 49 93 121 100
Total Other 1,253 1,650 1,291 1,962 2,207 1,048 1,695 1,770
Total silver ounces sold 5,553 5,116 5,487 5,600 6,657 4,576 4,999 4,729
Palladium ounces sold
Stillwater (3) 4,075 4,641 5,703 3,869 5,131 4,591 5,546 4,976
Cobalt pounds sold
Voisey's Bay 511 228 131 395 132 - - -
GEOs sold (4) 166,065 157,439 149,862 176,502 172,271 152,613 163,218 161,664
SEOs sold (4) 12,455 11,808 11,240 13,238 12,920 11,446 12,241 12,125
Cumulative payable units PBND (5)
Gold ounces 82,350 84,989 80,819 66,238 70,072 70,555 75,750 79,632
Silver ounces 3,893 4,200 3,845 3,802 3,738 4,486 3,437 3,222
Palladium ounces 5,535 5,629 5,619 6,822 5,373 5,597 4,616 4,883
Cobalt pounds 550 596 637 777 820 - - -
GEO (4) 150,794 158,477 150,317 139,145 141,206 136,894 126,968 128,291
SEO (4) 11,310 11,886 11,274 10,436 10,590 10,267 9,523 9,622
Inventory on hand
Cobalt pounds 410 657 488 134 132 - - -
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 and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
6) Operations at these mines had been temporarily suspended during the
second quarter of 2020 as a result of the COVID-19 pandemic. During the second
half of 2020, all of the operations were restarted.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended March 31, 2022
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'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) 6,395 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
79,087 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) 2,221 1,253 24.52 6.07 3.45 30,733 18,797 23,874 589,875
6,206 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 represent 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 777, Minto and Marmato gold interests as
well as the non-operating Rosemont, Santo Domingo, Blackwater, Fenix, Goose,
Marathon and Curipamba gold interests.
6) Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni,
Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver
interests as well as the non-operating Loma de La Plata, Pascua-Lama,
Rosemont, Blackwater and Curipamba silver interests. The Stratoni mine was
placed into care and maintenance during Q4-2021.
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, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 171,367 166,065 $ 1,850 $ 421 $ 1,429 $ 346 $ 1,083
Silver equivalent basis (5) 12,853 12,455 $ 24.67 $ 5.62 $ 19.05 $ 4.61 $ 14.44
1) Quantity produced represent 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) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
Three Months Ended March 31, 2021
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 46,622 51,423 $ 1,796 $ 412 $ 374 $ 92,356 $ 51,946 $ 71,163 $ 2,490,127
Sudbury (4) 7,004 3,691 1,812 400 1,024 6,688 1,431 5,219 317,235
Constancia 2,453 1,676 1,796 408 315 3,010 1,798 2,326 105,041
San Dimas 10,491 10,273 1,796 612 322 18,450 8,851 12,162 178,891
Stillwater 3,041 3,074 1,796 329 397 5,521 3,290 4,510 223,090
Other (5) 8,918 4,967 1,812 629 - 9,000 5,878 5,855 7,591
78,529 75,104 $ 1,798 $ 450 $ 374 $ 135,025 $ 73,194 $ 101,235 $ 3,321,975
Silver
Peñasquito 2,202 2,174 $ 26.21 $ 4.29 $ 3.55 $ 56,983 $ 39,940 $ 47,655 $ 342,857
Antamina 1,577 1,930 26.21 5.18 7.53 50,581 26,058 40,591 612,401
Constancia 406 346 26.21 6.02 7.56 9,072 4,372 6,988 214,428
Other (6) 2,580 2,207 25.95 9.41 6.30 57,247 22,589 39,098 612,237
6,765 6,657 $ 26.12 $ 6.33 $ 5.82 $ 173,883 $ 92,959 $ 134,332 $ 1,781,923
Palladium
Stillwater 5,769 5,131 $ 2,392 $ 427 $ 442 $ 12,275 $ 7,813 $ 10,084 $ 239,118
Cobalt
Voisey's Bay 1,162 132 $ 22.19 $ 4.98 $ 8.17 $ 2,936 $ 1,197 $ (966) $ 225,348
Operating results $ 324,119 $ 175,163 $ 244,685 $ 5,568,364
Other
General and administrative $ (9,735) $ (12,664)
Share based compensation (1,630) -
Donations and community investments (606) (498)
Finance costs (1,573) (1,229)
Other (119) 1,890
Income tax 502 (30)
Total other $ (13,161) $ (12,531) $ 360,048
$ 162,002 $ 232,154 $ 5,928,412
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands gold and
palladium ounces produced and sold and per unit amounts.
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 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 Rosemont gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni,
Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver
interests as well as the non-operating Loma de La Plata, Pascua-Lama and
Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended March 31, 2021 were as follows:
Three Months Ended March 31, 2021
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 196,756 172,271 $ 1,881 $ 457 $ 1,424 $ 407 $ 1,017
Silver equivalent basis (5) 14,757 12,920 $ 25.09 $ 6.10 $ 18.99 $ 5.43 $ 13.56
1) Quantity produced represent 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) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
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, with the Company receiving its first deliveries of cobalt
from Voisey's Bay during the first quarter of 2021; and (iv) cash operating
margin. The Company has removed the non-IFRS measure associated with net debt
as Wheaton fully repaid its debt during the first quarter of 2021.
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) 2022 2021
Net earnings $ 157,467 $ 162,002
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held 743 950
(Gain) loss on fair value adjustment of convertible notes receivable 1,380 (1,238)
Income tax expense (recovery) recognized in the Statement of Shareholders' 793 1,568
Equity
Income tax expense (recovery) recognized in the Statement of OCI (194) (2,137)
Other (2,182) (13)
Adjusted net earnings $ 158,007 $ 161,132
Divided by:
Basic weighted average number of shares outstanding 450,915 449,509
Diluted weighted average number of shares outstanding 451,953 450,600
Equals:
Adjusted earnings per share - basic $ 0.350 $ 0.358
Adjusted earnings per share - diluted $ 0.350 $ 0.358
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) 2022 2021
Cash generated by operating activities $ 210,540 $ 232,154
Divided by:
Basic weighted average number of shares outstanding 450,915 449,509
Diluted weighted average number of shares outstanding 451,953 450,600
Equals:
Operating cash flow per share - basic $ 0.467 $ 0.516
Operating cash flow per share - diluted $ 0.466 $ 0.515
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) 2022 2021
Cost of sales $ 127,396 $ 148,956
Less: depletion (57,402) (70,173)
Cash cost of sales $ 69,994 $ 78,783
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 37,133 $ 33,774
Total cash cost of silver sold 28,314 42,160
Total cash cost of palladium sold 1,603 2,191
Total cash cost of cobalt sold 2,944 658
Total cash cost of sales $ 69,994 $ 78,783
Divided by:
Total gold ounces sold 77,901 75,104
Total silver ounces sold 5,553 6,657
Total palladium ounces sold 4,075 5,131
Total cobalt pounds sold 511 132
Equals:
Average cash cost of gold (per ounce) $ 477 $ 450
Average cash cost of silver (per ounce) $ 5.10 $ 6.33
Average cash cost of palladium (per ounce) $ 394 $ 427
Average cash cost of cobalt (per pound) $ 5.76 $ 4.98
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) 2022 2021
Total sales:
Gold $ 145,675 $ 135,025
Silver $ 134,332 $ 173,883
Palladium $ 9,533 $ 12,275
Cobalt $ 17,704 $ 2,936
Divided by:
Total gold ounces sold 77,901 75,104
Total silver ounces sold 5,553 6,657
Total palladium ounces sold 4,075 5,131
Total cobalt pounds sold 511 132
Equals:
Average realized price of gold (per ounce) $ 1,870 $ 1,798
Average realized price of silver (per ounce) $ 24.19 $ 26.12
Average realized price of palladium (per ounce) $ 2,339 $ 2,392
Average realized price of cobalt (per pound) $ 34.61 $ 22.19
Less:
Average cash cost of gold (1) (per ounce) $ (477) $ (450)
Average cash cost of silver (1) (per ounce) $ (5.10) $ (6.33)
Average cash cost of palladium (1) (per ounce) $ (394) $ (427)
Average cash cost of cobalt (1) (per pound) $ (5.76) $ (4.98)
Equals:
Cash operating margin per gold ounce sold $ 1,393 $ 1,348
As a percentage of realized price of gold 74% 75%
Cash operating margin per silver ounce sold $ 19.09 $ 19.79
As a percentage of realized price of silver 79% 76%
Cash operating margin per palladium ounce sold $ 1,945 $ 1,965
As a percentage of realized price of palladium 83% 82%
Cash operating margin per cobalt pound sold $ 28.85 $ 17.21
As a percentage of realized price of cobalt 83% 78%
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 for years subsequent to 2010, 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 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 of
significant impacts on Wheaton or the Mining Operations as a result of an
epidemic (including the COVID-19 virus pandemic), 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, 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 for years subsequent to 2010 (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) , Wheaton's Form 40-F for the year ended
December 31, 2021 and Form 6-K filed March 31, 2022 both 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 for years subsequent to 2010 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 for years subsequent to 2010), 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.
For further information, please contact:
Patrick Drouin
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
1 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 5, 2022, titled "Wheaton Precious
Metals Declares Quarterly Dividend."
2 Commodity price assumptions for the gold equivalent production and sales
in 2022 are $1,800 / ounce gold, $24 / ounce silver, and $2,100 / ounce
palladium and $33 / pound cobalt. Other metal includes palladium and cobalt.
3 Payable gold, silver and palladium ounces and cobalt pounds produced but
not yet delivered are based on management estimates only and rely upon
information provided by the owners and operators of mining operations and may
be revised and updated in future periods as additional information is
received.
4 Net zero includes emissions reductions in line with a 1.5 trajectory
across Scopes 1, 2 and 3. Achievement of net zero may include the use of
offsets for residual emissions in 2050.
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