REG - Wheaton Precious Met - Fourth Quarter and Full Year Financial Results
11/03/2022 07:00
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RNS Number : 4758E Wheaton Precious Metals Corp. 11 March 2022
March 11, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
fourth quarter and full year financial results
WHEATON PRECIOUS METALS Announces record revenue, Earnings and Operating cash
flow for 2021
"Wheaton generated record annual revenue and operating cash flow in 2021 as
our diversified portfolio of high-quality, long-life assets delivered strong
results. We are proud of the value we were able to return to our shareholders
resulting from our record-setting performance, with total dividends paid in
2021 increasing by over 35% from 2020," said Randy Smallwood, President and
Chief Executive Officer of Wheaton Precious Metals. "In 2021, Wheaton also
remained focused on accretive growth, and over the past three months alone, we
added five new streams to our already robust portfolio. This additional growth
is readily apparent in our ten-year production forecast, where we see annual
production climbing to well over 900,000 gold equivalent ounces."
"In addition to our financial and corporate development successes in 2021,
Wheaton also made significant strides in bolstering our sustainability efforts
while continuing to support community programs around our offices and mining
partners' sites. We substantially strengthened our policies and disclosure
around our environmental, social and governance strategy, including aligning
our approach with the most recent climate science with the goal of reaching
net zero carbon emissions by 2050. As we enter 2022, we look forward to
building off our accomplishments from 2021 and continuing to create lasting
value for all of our stakeholders."
Fourth Quarter and Year End 2021 Highlights:
· Nearly $200 million in operating cash flow during the fourth quarter
and a record $845 million during 2021.
· $278 million in revenue during the fourth quarter and a record $1.2
billion during 2021.
· $132 million in adjusted net earnings(1) during the fourth quarter and
a record $592 million during 2021.
· Attributable production in 2021 was 752,958 gold equivalent ounces(2)
("GEOs"), in line with Company guidance.
· Announced a new precious metal purchase agreement ("PMPA") on Artemis
Gold Inc.'s Blackwater Gold Project ("Blackwater") in respect of silver
production and acquired the existing PMPA held by New Gold Inc. in respect of
gold production from Blackwater.
· Announced new PMPA on Generation Mining Limited's Marathon Project in
respect of gold and platinum production.
· Subsequent to the quarter, announced new PMPAs on Adventus Mining
Corporation's Curipamba Project in respect of gold and silver production and
Sabina Gold & Silver Corp.'s Goose Project in respect of gold production.
· On a GEO(3) basis, total attributable Proven and Probable Mineral
Reserves for all metals increased by 13%, driven by a 20% increase in total
attributable gold Proven and Probable Mineral Reserves, primarily due to
recently added PMPAs and increases at Salobo.
· Declared quarterly dividend(1) of $0.15 per common share.
Operational Overview
(all figures in US dollars unless otherwise noted) Q4 2021 Q4 2020 Change 2021 2020 Change
Units produced
Gold ounces 88,321 92,039 (4.0)% 342,546 366,321 (6.5)%
Silver ounces 6,356 6,509 (2.4)% 25,999 22,892 13.6 %
Palladium ounces 4,733 5,672 (16.6)% 20,908 22,187 (5.8)%
Cobalt pounds 381 - n.a. 2,293 0 n.a.
Gold equivalent ounces (2) 186,404 189,682 (1.7)% 752,958 712,624 5.7 %
Units sold
Gold ounces 79,622 86,243 (7.7)% 312,465 369,553 (15.4)%
Silver ounces 5,116 4,576 11.8 % 22,860 19,232 18.9 %
Palladium ounces 4,641 4,591 1.1 % 19,344 20,051 (3.5)%
Cobalt pounds 228 - n.a. 886 - n.a.
Gold equivalent ounces (2) 158,864 155,665 2.1 % 663,415 662,275 0.2 %
Revenue $ 278,197 $ 286,212 (2.8)% $ 1,201,665 $ 1,096,224 9.6 %
Net earnings $ 291,822 $ 157,221 85.6 % $ 754,885 $ 507,804 48.7 %
Per share $ 0.648 $ 0.350 85.1 % $ 1.677 $ 1.132 48.1 %
Adjusted net earnings (1) $ 132,232 $ 149,441 (11.5)% $ 592,079 $ 503,335 17.6 %
Per share (1) $ 0.293 $ 0.333 (12.0)% $ 1.315 $ 1.122 17.3 %
Operating cash flows $ 195,290 $ 207,962 (6.1)% $ 845,145 $ 765,442 10.4 %
Per share (1) $ 0.433 $ 0.463 (6.5)% $ 1.878 $ 1.706 10.1 %
All amounts in thousands except gold, palladium & gold equivalent ounces
and cobalt pounds produced & sold, and per share amounts. 1 (#_edn1) 2
(#_edn2)
Production Guidance
· 2022 Guidance: 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 3 (#_edn3) of other metals, resulting in
production of approximately 700,000 to 760,000 GEOs(3).
· Five-year guidance: For the five-year period ending in 2026, the
Company estimates that average production will amount to 850,000 GEOs(3).
· Ten-year guidance: For the ten-year period ending in 2031, the Company
estimates that average annual production will amount to 910,000 GEOs(3).
Financial Review
Revenues
Revenue was $278 million in the fourth quarter of 2021 representing a 3%
decrease from the fourth quarter of 2020 due primarily to a 5% decrease in the
average realized gold equivalent² price; partially offset by a 2% increase in
the number of GEOs² sold.
Revenue was $1,202 million in the year ended December 31, 2021 representing a
10% increase from 2020 due primarily to a 9% increase in the average realized
gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2021 were $429 per GEO² as
compared to $415 in fourth quarter of 2020. This resulted in a cash operating
margin¹ of $1,322 per GEO² sold, a decrease of 7% as compared with the
fourth quarter of 2020.
Average cash costs¹ in 2021 were $434 per GEO² as compared to $403 in 2020.
This resulted in a cash operating margin¹ of $1,377 per GEO² sold, an
increase of 10% as compared with 2020.
Impairment Reversals of Mineral Stream Interests
Net earnings were positively impacted as the result of an impairment reversal
on the Voisey's Bay PMPA amounting to $157 million at December 31, 2021.
Indicators of impairment reversal were identified relative to the Voisey's Bay
PMPA, as a result of significant and sustained increases in the market prices
of cobalt. Management estimated that the recoverable amount under the Voisey's
Bay PMPA exceeded the carrying amount that would have been determined, net of
depletion, had no impairment charge been recognized for the PMPA in prior
years, resulting in an impairment reversal of $157 million at December 31,
2021.
Balance Sheet (at December 31, 2021)
· Approximately $226 million of cash on hand.
· The Company's $2 billion revolving term loan (the "Revolving Facility")
remains fully undrawn.
Fourth Quarter Asset Highlights
Salobo: In the fourth quarter of 2021, Salobo produced 48,200 ounces of
attributable gold, a decrease of approximately 23% relative to the fourth
quarter of 2020 primarily due to lower throughput, grades and recovery, with
throughput being impacted as a result of an 18-day suspension of operations
following a conveyor belt fire in October 2021. According to Vale S.A.
("Vale"), other activities, including mine and maintenance operations,
continued as usual during this period but concentrate production was
interrupted. Concentrate production resumed on October 22, 2021 and ramped up
over a three-day period. Vale reported that despite the challenges, mine
movement continued to improve at Salobo operation and reached pre-safety
review levels by the end of the year.
As per Vale's Fourth Quarter 2021 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. Safety conditions at the area were reestablished and Vale is
working on additional preventive measures and replacement of damaged
equipment. A full assessment of impact by Vale is ongoing with conclusion
expected early in the second quarter of 2022. Vale further reports that
physical completion of the Salobo III mine expansion was 85% at the end of the
fourth quarter.
Peñasquito: In the fourth quarter of 2021, Peñasquito produced 2.1 million
ounces of attributable silver, an increase of approximately 7% relative to the
fourth quarter of 2020, primarily due to higher grades and recoveries,
partially offset by lower throughput.
Antamina: In the fourth quarter of 2021, Antamina produced 1.4 million ounces
of attributable silver, a decrease of approximately 29% relative to the fourth
quarter of 2020, primarily due to lower throughput and grades. As per
Compañía Minera Antamina S.A.'s (the operating company of Antamina) news
release dated October 31, 2021, operations at Antamina were briefly suspended
to ensure the health and safety of its workforce and other stakeholders
following localized protests in Peru.
Constancia: In the fourth quarter of 2021, Constancia produced 0.6 million
ounces of attributable silver and 9,900 ounces of attributable gold, an
increase of approximately 21% and 151%, respectively, relative to the fourth
quarter of 2020. Silver production increased primarily due to higher 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%, partially offset by the
receipt of 2,005 ounces in the fourth quarter of 2020 related to delays in
accessing the Pampacancha deposit while no delay payment was received in 2021.
Additionally, as Hudbay mined and processed four million tonnes of ore from
the Pampacancha deposit by December 31, 2021, the Company was required to make
an additional deposit payment of $4 million to Hudbay for the increase in the
fixed gold recoveries, which was paid on December 23, 2021.
Sudbury: In the fourth quarter of 2021, Vale's Sudbury mines produced 5,400
ounces of attributable gold, a decrease of approximately 19% relative to the
fourth quarter of 2020, 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
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 fourth quarter of 2021, the Stillwater mines produced
2,700 ounces of attributable gold and 4,700 ounces of attributable palladium,
a decrease of approximately 19% for gold and 17% for palladium relative to the
fourth quarter of 2020 due to lower throughput.
San Dimas: In the fourth quarter of 2021, San Dimas produced 13,700 ounces of
attributable gold, an increase of approximately 18% relative to the fourth
quarter of 2020, primarily due to the mining of higher-grade material.
Other Gold: In the fourth quarter of 2021, total Other Gold attributable
production was 8,400 ounces, an increase of approximately 131% relative to the
fourth quarter of 2020, primarily due to the mining of higher-grade material
at Minto.
Other Silver: In the fourth quarter of 2021, total Other Silver attributable
production was 2.3 million ounces, an increase of approximately 9% relative to
the fourth quarter of 2020, primarily due to higher production at Neves-Corvo
and the newly acquired Cozamin stream, partially offset by lower production at
Yauliyacu and Aljustrel.
Voisey's Bay: In the fourth quarter of 2021, the Voisey's Bay mine produced
381 thousand pounds of attributable cobalt. As per Vale's Fourth Quarter 2021
Performance Report, physical completion of the Voisey's Bay underground mine
extension, which includes developing two underground mines - Reid Brook and
Eastern Deeps - was 67% at the end of the fourth quarter. As per Vale,
production commenced from Reid Brook in the second quarter of 2021, and the
start-up of Eastern Deeps is expected by the second half of 2022.
Produced But Not Yet Delivered 4 (#_edn4) and Inventory
As at December 31, 2021, payable ounces and pounds attributable to the Company
produced but not yet delivered amounted to:
· 85,900 payable gold ounces, an increase of 5,100 ounces during Q4 2021,
primarily due to an increase during the period at the Sudbury and Constancia
mines.
· 4.2 million payable silver ounces, an increase of 0.4 million ounces
during Q4 2021.
· 5,600 payable palladium ounces, virtually unchanged during Q4 2021.
· 596 thousand payable cobalt pounds, virtually unchanged during Q4 2021.
As of December 31, 2021, 657 thousand pounds of cobalt were held in inventory
by Wheaton, an increase of 169 thousand pounds during Q4 2021.
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
Fenix Gold PMPA: On November 15, 2021, the Company entered into the
previously disclosed PMPA with Rio2 Limited ("Rio2") in connection with the
Fenix Gold Project located in Chile.
Blackwater PMPA: On December 13, 2021, the Company entered into a PMPA with
Artemis Gold Inc. ("Artemis") in respect of silver production from the
Blackwater Gold Project located in British Columbia, Canada. Under the PMPA,
Wheaton will be entitled to receive 50% of the payable silver production until
17.8 million ounces ("Moz") have been delivered, thereafter dropping to 33% of
payable silver production for the life of the mine. The Company is committed
to pay total upfront consideration of $141 million for this stream, payable in
four equal installments during the construction of Blackwater, subject to
customary conditions being satisfied. In addition, Wheaton will make ongoing
cash payments equal to 18% of the spot silver price per ounce of silver
delivered under the agreement until the value of silver delivered, net of the
per ounce production payment for silver, is equal to the upfront consideration
of $141 million, and 22% of the spot price of silver thereafter.
Additionally, on December 13, 2021, the Company announced that it had entered
into a definitive agreement to acquire the existing gold stream held by New
Gold Inc. ("New Gold") in respect of gold production from Blackwater. Under
this agreement, Wheaton will be entitled to receive 8% of the payable gold
production until 279,908 ounces have been delivered, thereafter dropping to 4%
of payable gold production for the life of the mine. The Company paid $300
million for the stream. In addition, Wheaton will make ongoing production
payments equal to 35% of the spot gold price per ounce of gold delivered under
the agreement.
Subsequent to the Quarter - 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 150,000 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 a 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. 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 (the "Goose Project"). 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.
Reserves and Resources (at December 31, 2021)
· Proven and Probable Mineral Reserves attributable to Wheaton were 14.01
million ounces of gold compared with 11.71 million ounces as reported in
Wheaton's 2020 Annual Information Form ("AIF"), an increase of 20% (primarily
due to recently added PMPAs and increases at Salobo); 567.9 million ounces of
silver compared with 550.3 million ounces, an increase of 3%; 0.63 million
ounces palladium compared with 0.64 million ounces, a decrease of 2%; 31.4
million pounds of cobalt compared to 31.7 million pounds, a decrease of 1%;
and first time reporting of platinum of 0.17 million ounces. On a GEO(3)
basis, total Proven and Probable Mineral Reserves for all metals attributable
to Wheaton were 22.98 million ounces, an increase of 13%.
· Measured and Indicated Mineral Resources attributable to Wheaton were
5.34 million ounces of gold compared with 4.50 million ounces as reported in
Wheaton's 2020 AIF, an increase of 18%; 766.6 million ounces of silver
compared with 743.0 million ounces, an increase of 3%; 0.12 million ounces of
palladium compared to 0.03 million ounces, an increase of 318%; 1.5 million
pounds of cobalt remained the same as 2020; and first time reporting of
platinum of 0.097 million ounces. On a GEO(3) basis, total Measured and
Indicated Mineral Resources for all metals attributable to Wheaton were 15.78
million ounces, an increase of 9%.
· Inferred Mineral Resources attributable to Wheaton were 4.96 million
ounces of gold compared with 4.46 million ounces as reported in Wheaton's 2020
AIF, an increase of 11%; 464.0 million ounces of silver compared with 469.5
million ounces, a decrease of 1%, 0.35 million ounces of palladium compared
with 0.37 million ounces, a decrease of 7%; 6.8 million pounds of cobalt
compared to 7.6, a decrease of 10%; and first time report of platinum of 0.017
million ounces. On a GEO(3) basis, total Inferred Mineral Resources for all
metals attributable to Wheaton were 11.69 million ounces, an increase of 3%.
Estimated attributable reserves and resources contained in this press release
are based on information available to the Company as of March 9, 2022, and
therefore will not reflect updates, if any, after that date. Updated reserves
and resources data incorporating year-end 2021 estimates will also be included
in the Company's 2021 Annual Information Form. Wheaton's most current
attributable reserves and resources, as of December 31, 2021, can be found on
the Company's website at www.wheatonpm.com (http://www.wheatonpm.com) .
Sustainability
Climate Change Commitments: Subsequent to the quarter, Wheaton announced the
adoption of a climate change policy and commitment to net zero carbon
emissions by 2050. 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 established a fund to support our mining
partners' efforts to move to renewable energy sources and reduce emissions at
the mines in which we have an interest.
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 fourth quarter of 2021, the
second phase of the Agricultural and Livestock Development Program run by
Hudbay in Peru was completed. The program, aimed at improving all aspects of
the production chain related to the raising of livestock in rural communities,
provided nutritional support to nearly 37,000 animals during the fourth
quarter alone.
COVID-19 Community Support and Response Fund: In the second quarter of 2020,
Wheaton announced the launch of a $5 million Community Support and Response
Fund (the "CSR Fund") to support global efforts to combat the social and
economic impact of the COVID-19 pandemic. The CSR Fund is designed to meet the
immediate needs of the communities in which Wheaton and its mining partners
operate. This fund is incremental to Wheaton's already active Community
Investment Program that currently provides support to over 50 programs in
multiple communities around the world. As of December 31, 2021, the Company
has made donations totaling approximately $4.6 million through the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, March 11, 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:
99785763
Live audio
webcast:
Webcast
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URL
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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
(https://www.wheatonpm.com/Investors/presentations/default.aspx) before the
conference call.
The conference call will be recorded and available until March 18, 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:
785763 #
Archived audio
webcast: Webcast
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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) .
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.
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.
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts) 2021 2020
Sales $ 1,201,665 $ 1,096,224
Cost of sales
Cost of sales, excluding depletion $ 287,947 $ 266,763
Depletion 254,793 243,889
Total cost of sales $ 542,740 $ 510,652
Gross margin $ 658,925 $ 585,572
General and administrative expenses 60,985 65,698
Reversal of impairment of mineral stream interests (156,717) -
Earnings from operations $ 754,657 $ 519,874
Other (income) expense (5,776) (2,170)
Earnings before finance costs and income taxes $ 760,433 $ 522,044
Finance costs 5,817 16,715
Earnings before income taxes $ 754,616 $ 505,329
Income tax recovery 269 2,475
Net earnings $ 754,885 $ 507,804
Basic earnings per share $ 1.677 $ 1.132
Diluted earnings per share $ 1.673 $ 1.128
Weighted average number of shares outstanding
Basic 450,138 448,694
Diluted 451,170 450,070
Consolidated Balance Sheets
As at As at
December 31
December 31
(US dollars in thousands) 2021 2020
Assets
Current assets
Cash and cash equivalents $ 226,045 $ 192,683
Accounts receivable 11,577 5,883
Other 12,102 3,265
Total current assets $ 249,724 $ 201,831
Non-current assets
Mineral stream interests $ 5,905,797 $ 5,488,391
Early deposit mineral stream interests 34,741 33,241
Mineral royalty interest 6,606 3,047
Long-term equity investments 61,477 199,878
Convertible notes receivable 17,086 11,353
Property, plant and equipment 5,509 6,289
Other 15,211 13,242
Total non-current assets $ 6,046,427 $ 5,755,441
Total assets $ 6,296,151 $ 5,957,272
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 13,935 $ 13,023
Current portion of performance share units 14,807 17,297
Current portion of lease liabilities 813 773
Other 136 76
Total current liabilities $ 29,691 $ 31,169
Non-current liabilities
Bank debt $ - $ 195,000
Lease liabilities 2,060 2,864
Deferred income taxes 100 214
Performance share units 11,498 11,784
Pension liability 2,685 1,670
Total non-current liabilities $ 16,343 $ 211,532
Total liabilities $ 46,034 $ 242,701
Shareholders' equity
Issued capital $ 3,698,998 $ 3,646,291
Reserves 47,036 126,882
Retained earnings 2,504,083 1,941,398
Total shareholders' equity $ 6,250,117 $ 5,714,571
Total liabilities and shareholders' equity $ 6,296,151 $ 5,957,272
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands) 2021 2020
Operating activities
Net earnings $ 754,885 $ 507,804
Adjustments for
Depreciation and depletion 256,685 245,779
Reversal of impairment of mineral stream interests (156,717) -
Interest expense 352 12,366
Equity settled stock based compensation 5,262 5,432
Performance share units (2,925) 9,398
Pension expense 1,014 806
Income tax expense (recovery) (269) (2,475)
Loss (gain) on fair value adjustment of share purchase warrants held 2,101 (337)
Fair value (gain) loss on convertible note receivable (5,733) (1,899)
Investment income recognized in net earnings (462) (230)
Other (510) 1,487
Change in non-cash working capital (8,072) 1,025
Cash generated from operations before income taxes and interest $ 845,611 $ 779,156
Income taxes recovered (paid) (279) 49
Interest paid (429) (13,992)
Interest received 242 229
Cash generated from operating activities $ 845,145 $ 765,442
Financing activities
Bank debt repaid $ (195,000) $ (679,500)
Credit facility extension fees (1,727) (1,373)
Share purchase options exercised 7,953 21,892
Lease payments (780) (704)
Dividends paid (218,052) (167,212)
Cash (used for) generated from financing activities $ (407,606) $ (826,897)
Investing activities
Mineral stream interests $ (520,891) $ (322)
Early deposit mineral stream interests (1,500) (1,500)
Mineral royalty interest (3,571) -
Acquisition of long-term investments (7,453) (10,671)
Proceeds on disposal of long-term investments 129,753 162,942
Dividends received 221 -
Other (775) (801)
Cash (used for) generated from investing activities $ (404,216) $ 149,648
Effect of exchange rate changes on cash and cash equivalents $ 39 $ 504
Increase in cash and cash equivalents $ 33,362 $ 88,697
Cash and cash equivalents, beginning of year 192,683 103,986
Cash and cash equivalents, end of year $ 226,045 $ 192,683
Summary of Units Produced
Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
Gold ounces produced ²
Salobo 48,235 55,205 55,590 46,622 62,854 63,408 59,104 62,575
Sudbury (3) 5,404 148 4,563 7,004 6,659 3,798 9,257 7,795
Constancia (7) 9,857 8,533 5,525 2,453 3,929 3,780 3,470 3,681
San Dimas (4, 7) 13,714 11,936 11,478 10,491 11,652 9,228 6,074 11,318
Stillwater (5) 2,664 2,949 2,962 3,041 3,290 3,176 3,222 2,955
Other
Minto 3,506 1,703 3,206 2,638 789 1,832 2,928 2,124
777 (8) 4,462 4,717 5,035 6,280 2,866 5,278 4,728 4,551
Marmato 479 433 1,713 - - - - -
Total Other 8,447 6,853 9,954 8,918 3,655 7,110 7,656 6,675
Total gold ounces produced 88,321 85,624 90,072 78,529 92,039 90,500 88,783 94,999
Silver ounces produced (2)
Peñasquito (7) 2,145 2,180 2,026 2,202 2,014 1,992 967 2,658
Antamina (7) 1,366 1,548 1,558 1,577 1,930 1,516 612 1,311
Constancia (7) 578 521 468 406 478 430 254 461
Other
Los Filos (7) 37 17 26 31 6 17 14 29
Zinkgruvan 482 658 457 420 515 498 389 662
Yauliyacu (7) 382 372 629 737 454 679 273 557
Stratoni 129 18 164 165 185 156 148 183
Minto 44 25 33 21 16 15 19 18
Neves-Corvo 522 362 408 345 420 281 479 377
Aljustrel 325 314 400 474 440 348 388 352
Cozamin 213 199 183 230 - - - -
Marmato 7 10 39 - - - - -
Keno Hill 30 44 55 27 - - - -
777 (8) 96 81 83 130 51 96 108 96
Total Other 2,267 2,100 2,477 2,580 2,087 2,090 1,818 2,274
Total silver ounces produced 6,356 6,349 6,529 6,765 6,509 6,028 3,651 6,704
Palladium ounces produced ²
Stillwater (5) 4,733 5,105 5,301 5,769 5,672 5,444 5,759 5,312
Cobalt pounds produced ²
Voisey's Bay 381 370 380 1,162 ⁹ - - - -
GEOs produced (6) 186,404 183,975 191,271 191,308 189,682 181,184 146,857 194,901
SEOs produced (6) 13,421 13,246 13,772 13,774 13,657 13,045 10,574 14,033
Average payable rate (2)
Gold 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% 94.7% 95.1%
Silver 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% 81.9% 85.6%
Palladium 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% 90.8% 91.0%
Cobalt 93.3% 93.3% 93.3% 93.3% n.a. n.a. n.a. n.a.
GEO (7) 91.3% 91.2% 91.7% 90.4% 91.1% 91.1% 89.8% 90.4%
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: 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; Q1-2020
- 419,000 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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
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) 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
Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
Gold ounces sold
Salobo 47,171 35,185 57,296 51,423 53,197 59,584 68,487 74,944
Sudbury (2) 965 1,915 6,945 3,691 7,620 7,858 7,414 4,822
Constancia (6) 6,196 8,159 2,321 1,676 3,853 4,112 3,024 3,331
San Dimas (6) 15,182 11,346 11,214 10,273 11,529 9,687 6,030 11,358
Stillwater (3) 2,933 2,820 2,574 3,074 3,069 3,015 3,066 3,510
Other
Minto 2,462 1,907 2,359 2,390 1,540 - - -
777 4,290 5,879 5,694 2,577 5,435 5,845 4,783 2,440
Marmato 423 438 1,687 - - - - -
Total Other 7,175 8,224 9,740 4,967 6,975 5,845 4,783 2,440
Total gold ounces sold 79,622 67,649 90,090 75,104 86,243 90,101 92,804 100,405
Silver ounces sold
Peñasquito (6) 1,818 2,210 1,844 2,174 1,417 1,799 1,917 2,310
Antamina (6) 1,297 1,502 1,499 1,930 1,669 1,090 788 1,244
Constancia (6) 351 484 295 346 442 415 254 350
Other
Los Filos (6) 17 12 42 27 - 19 25 37
Zinkgruvan 346 354 355 293 326 492 376 447
Yauliyacu (6) 551 182 601 1,014 15 580 704 9
Stratoni 42 41 167 117 169 134 77 163
Minto 27 24 29 26 20 - - -
Neves-Corvo 259 193 215 239 145 201 236 204
Aljustrel 133 155 208 257 280 148 252 123
Cozamin 174 170 168 173 - - - -
Marmato 8 10 35 - - - - -
Keno Hill 24 51 33 12 - - - -
777 69 99 109 49 93 121 100 41
Total Other 1,650 1,291 1,962 2,207 1,048 1,695 1,770 1,024
Total silver ounces sold 5,116 5,487 5,600 6,657 4,576 4,999 4,729 4,928
Palladium ounces sold
Stillwater (3) 4,641 5,703 3,869 5,131 4,591 5,546 4,976 4,938
Cobalt pounds sold
Voisey's Bay 228 131 395 132 - - - -
GEOs sold (4) 158,864 152,432 176,700 175,419 155,665 166,611 164,844 175,154
SEOs sold (4) 11,438 10,975 12,722 12,630 11,208 11,996 11,869 12,611
Cumulative payable units PBND (5)
Gold ounces 85,945 80,819 66,238 70,072 70,555 75,750 79,632 88,383
Silver ounces 4,200 3,845 3,802 3,738 4,486 3,437 3,222 4,961
Palladium ounces 5,629 5,619 6,822 5,373 5,597 4,616 4,883 4,875
Cobalt pounds 596 637 777 820 - - - -
GEO (4) 157,347 147,679 135,430 136,933 140,008 129,391 130,623 163,521
SEO (4) 10,906 10,181 9,199 9,277 10,081 9,316 9,405 11,774
Inventory on hand
Cobalt pounds 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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
6) Operations at these mines had been temporarily suspended during the
second quarter of 2020 as a result of the COVID-19 pandemic. During the second
half of 2020, all of the operations were restarted.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended December 31, 2021
Units Produced² Units Average Average Average Sales Gross Impairment Reversals (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Margin
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 48,235 47,171 $ 1,799 $ 412 $ 374 $ 84,849 $ 47,781 $ - $ 47,781 $ 63,659 $ 2,437,939
Sudbury (5) 5,404 965 1,795 400 1,024 1,732 357 - 357 1,346 307,169
Constancia 9,857 6,196 1,799 412 315 11,147 6,642 - 6,642 8,398 103,789
San Dimas 13,714 15,182 1,799 618 322 27,309 13,030 - 13,030 17,923 166,723
Stillwater 2,664 2,933 1,799 319 397 5,275 3,176 - 3,176 4,340 219,785
Other (6) 8,447 7,175 1,795 676 42 12,875 7,721 - 7,721 8,463 364,792
88,321 79,622 $ 1,798 $ 472 $ 338 $ 143,187 $ 78,707 $ - $ 78,707 $ 104,129 $ 3,600,197
Silver
Peñasquito 2,145 1,818 $ 23.28 $ 4.29 $ 3.55 $ 42,314 $ 28,064 $ - $ 28,064 $ 34,515 $ 322,018
Antamina 1,366 1,297 23.33 4.73 7.53 30,250 14,351 - 14,351 25,091 580,052
Constancia 578 351 23.28 6.08 7.56 8,170 3,383 - 3,383 5,739 205,884
Other (7) 2,267 1,650 23.48 7.22 5.83 38,770 17,226 - 17,226 26,118 593,195
6,356 5,116 $ 23.36 $ 5.47 $ 5.57 $ 119,504 $ 63,024 $ - $ 63,024 $ 91,463 $ 1,701,149
Palladium
Stillwater 4,733 4,641 $ 1,918 $ 340 $ 442 $ 8,902 $ 5,268 $ - $ 5,268 $ 7,323 $ 232,830
Cobalt
Voisey's Bay 381 228 $ 28.94 $ 4.68 $ 8.17 $ 6,604 $ 3,673 $ 156,717 $ 160,390 $ 2,443 $ 371,621
Operating results $ 278,197 $ 150,672 $ 156,717 $ 307,389 $ 205,358 $ 5,905,797
Other
General and administrative $ (16,955) $ (9,139)
Finance costs (1,508) (1,026)
Other 3,581 325
Income tax (685) (228)
Total other $ (15,567) $ (10,068) $ 390,354
$ 291,822 $ 195,290 $ 6,296,151
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) Please see the section "Impairment Reversals of Mineral Stream
Interests" in this press release for more information.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Comprised of the operating 777, Minto and Marmato gold interests as
well as the non-operating Rosemont, Santo Domingo, Blackwater and Fenix gold
interests.
7) Comprised of the operating 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
and Blackwater silver interests.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended December 31, 2021 were as follows:
Three Months Ended December 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) 186,404 158,864 $ 1,751 $ 429 $ 1,322 $ 373 $ 949
Silver equivalent basis (5) 13,421 11,438 $ 24.32 $ 5.96 $ 18.36 $ 5.19 $ 13.17
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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
Three Months Ended December 31, 2020
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) 3
Unit)
Per Unit)
Gold
Salobo 62,854 53,197 $ 1,881 $ 408 $ 374 $ 100,047 $ 58,426 $ 74,508 $ 2,509,344
Sudbury (4) 6,659 7,620 1,888 400 831 14,384 5,000 11,336 321,016
Constancia 3,929 3,853 1,881 408 338 7,246 4,373 5,674 105,569
San Dimas 11,652 11,529 1,881 612 315 21,683 10,993 12,812 182,202
Stillwater 3,290 3,069 1,881 338 449 5,772 3,357 4,735 224,310
Other (5) 3,655 6,975 1,888 421 238 13,167 8,576 10,241 7,526
92,039 86,243 $ 1,882 $ 433 $ 397 $ 162,299 $ 90,725 $ 119,306 $ 3,349,967
Silver
Peñasquito 2,014 1,417 $ 24.44 $ 4.26 $ 3.24 $ 34,629 $ 23,997 $ 28,592 $ 350,572
Antamina 1,930 1,669 24.44 4.86 8.74 40,782 18,079 32,667 626,934
Constancia 478 442 24.44 6.02 7.63 10,805 4,770 8,143 217,044
Other (6) 2,087 1,048 25.69 8.03 1.00 26,915 17,456 20,804 474,975
6,509 4,576 $ 24.72 $ 5.51 $ 5.16 $ 113,131 $ 64,302 $ 90,206 $ 1,669,525
Palladium
Stillwater 5,672 4,591 $ 2,348 $ 423 $ 428 $ 10,782 $ 6,875 $ 8,840 $ 241,389
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
Operating results $ 286,212 $ 161,902 $ 218,352 $ 5,488,391
Other
General and administrative $ (9,391) $ (8,384)
Finance costs (2,196) (1,980)
Other 830 (5)
Income tax 6,076 (21)
Total other $ (4,681) $ (10,390) $ 468,881
$ 157,221 $ 207,962 $ 5,957,272
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 December 31, 2020 were as follows:
Three Months Ended December 31, 2020
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) 189,682 155,665 $ 1,839 $ 415 $ 1,424 $ 384 $ 1,040
Silver equivalent basis (5) 13,657 11,208 $ 25.54 $ 5.76 $ 19.78 $ 5.33 $ 14.45
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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
Year Ended December 31, 2021
Units Produced² Units Average Average Average Sales Gross Impairment Reversals (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Margin
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 205,652 191,075 $ 1,797 $ 412 $ 374 $ 343,398 $ 193,247 $ - $ 193,247 $ 264,652 $ 2,437,939
Sudbury (5) 17,119 13,516 1,811 400 1,024 24,475 5,221 - 5,221 19,068 307,169
Constancia 26,368 18,352 1,797 411 315 32,974 19,658 - 19,658 25,438 103,789
San Dimas 47,619 48,015 1,797 617 322 86,290 41,199 - 41,199 56,679 166,723
Stillwater 11,616 11,401 1,797 325 397 20,487 12,259 - 12,259 16,784 219,785
Other (6) 34,172 30,106 1,804 607 61 54,296 34,192 - 34,192 36,444 364,792
342,546 312,465 $ 1,798 $ 459 $ 361 $ 561,920 $ 305,776 $ - $ 305,776 $ 419,065 $ 3,600,197
Silver
Peñasquito 8,553 8,046 $ 25.07 $ 4.29 $ 3.55 $ 201,688 $ 138,616 $ - $ 138,616 $ 167,169 $ 322,018
Antamina 6,049 6,228 25.17 5.04 7.53 156,735 78,458 - 78,458 125,688 580,052
Constancia 1,973 1,476 24.91 6.05 7.56 36,775 16,689 - 16,689 27,848 205,884
Other (7) 9,424 7,110 25.07 8.06 5.56 178,231 81,393 - 81,393 123,359 593,195
25,999 22,860 $ 25.08 $ 5.78 $ 5.52 $ 573,429 $ 315,156 $ - $ 315,156 $ 444,064 $ 1,701,149
Palladium
Stillwater 20,908 19,344 $ 2,369 $ 433 $ 442 $ 45,834 $ 28,891 $ - $ 28,891 $ 37,450 $ 232,830
Cobalt
Voisey's Bay 2,293 886 $ 23.11 $ 4.67 $ 8.17 $ 20,482 $ 9,102 $ 156,717 $ 165,819 $ 3,687 $ 371,621
Operating results $ 1,201,665 $ 658,925 $ 156,717 $ 815,642 $ 904,266 $ 5,905,797
Other
General and administrative $ (60,985) $ (55,301)
Finance costs (5,817) (4,271)
Other 5,776 731
Income tax 269 (280)
Total other $ (60,757) $ (59,121) $ 390,354
$ 754,885 $ 845,145 $ 6,296,151
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) Please see the section "Impairment Reversals of Mineral Stream
Interests" in this press release for more information
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Comprised of the operating 777, Minto and Marmato gold interests as
well as the non-operating Rosemont, Santo Domingo, Blackwater and Fenix gold
interests.
7) Comprised of the operating 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
and Blackwater silver interests.
On a gold equivalent and silver equivalent basis, results for the Company for
the year ended December 31, 2021 were as follows:
Year Ended December 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) 752,958 663,415 $ 1,811 $ 434 $ 1,377 $ 384 $ 993
Silver equivalent basis (5) 54,213 47,766 $ 25.16 $ 6.03 $ 19.13 $ 5.33 $ 13.80
1) Ounces produced represent the quantity of gold, silver and palladium
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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
Year Ended December 31, 2020
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 247,941 256,212 $ 1,757 $ 408 $ 374 $ 450,166 $ 249,708 $ 345,621 $ 2,509,344
Sudbury (4) 27,509 27,714 1,797 400 831 49,791 15,679 38,609 321,016
Constancia 14,860 14,320 1,785 406 338 25,556 14,907 19,744 105,569
San Dimas 38,272 38,604 1,775 610 315 68,519 32,813 44,978 182,202
Stillwater 12,643 12,660 1,766 316 449 22,353 12,666 18,351 224,310
Other (5) 25,096 20,043 1,818 421 281 36,442 22,357 28,007 7,526
366,321 369,553 $ 1,767 $ 426 $ 399 $ 652,827 $ 348,130 $ 495,310 $ 3,349,967
Silver
Peñasquito 7,631 7,443 $ 20.25 $ 4.26 $ 3.24 $ 150,720 $ 94,886 $ 119,016 $ 350,572
Antamina 5,369 4,791 21.34 4.19 8.74 102,241 40,312 82,188 626,934
Constancia 1,623 1,461 21.42 5.99 7.63 31,285 11,397 22,541 217,044
Other (6) 8,269 5,537 20.84 7.41 1.97 115,379 63,460 74,159 474,975
22,892 19,232 $ 20.78 $ 5.28 $ 4.58 $ 399,625 $ 210,055 $ 297,904 $ 1,669,525
Palladium
Stillwater 22,187 20,051 $ 2,183 $ 389 $ 428 $ 43,772 $ 27,387 $ 35,967 $ 241,389
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
Operating results $ 1,096,224 $ 585,572 $ 829,181 $ 5,488,391
Other
General and administrative $ (65,698) $ (46,914)
Finance costs (16,715) (17,551)
Other 2,170 677
Income tax 2,475 49
Total other $ (77,768) $ (63,739) $ 468,881
$ 507,804 $ 765,442 $ 5,957,272
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 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 year ended December 31, 2020 were as follows:
Year Ended December 31, 2020
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) 712,624 662,275 $ 1,655 $ 403 $ 1,252 $ 368 $ 884
Silver equivalent basis (5) 51,309 47,684 $ 22.99 $ 5.59 $ 17.40 $ 5.11 $ 12.29
1) Ounces produced represent the quantity of gold, silver and palladium
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; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2021.
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), 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 Years Ended
December 31
December 31
(in thousands, except for per share amounts) 2021 2020 2021 2020
Net earnings $ 291,822 $ 157,221 $ 754,885 $ 507,804
Add back (deduct):
Impairment reversal (156,717) - (156,717) -
(Gain) loss on fair value adjustment of share purchase warrants held (290) (1,182) 2,101 (338)
(Gain) loss on fair value adjustment of convertible notes receivable (1,597) (517) (5,733) (1,899)
Income tax expense (recovery) recognized in the Statement of Shareholders' 974 911 1,811 (820)
Equity
Income tax expense (recovery) recognized in the Statement of OCI (325) (7,011) (2,314) (1,866)
Other (1,635) 19 (1,954) 454
Adjusted net earnings $ 132,232 $ 149,441 $ 592,079 $ 503,335
Divided by:
Basic weighted average number of shares outstanding 450,614 449,320 450,138 448,694
Diluted weighted average number of shares outstanding 451,570 450,980 451,170 450,070
Equals:
Adjusted earnings per share - basic $ 0.293 $ 0.333 $ 1.315 $ 1.122
Adjusted earnings per share - diluted $ 0.293 $ 0.331 $ 1.312 $ 1.118
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 Years Ended
December 31
December 31
(in thousands, except for per share amounts) 2021 2020 2021 2020
Cash generated by operating activities $ 195,290 $ 207,962 $ 845,145 $ 765,442
Divided by:
Basic weighted average number of shares outstanding 450,614 449,320 450,138 448,694
Diluted weighted average number of shares outstanding 451,570 450,980 451,170 450,070
Equals:
Operating cash flow per share - basic $ 0.433 $ 0.463 $ 1.878 $ 1.706
Operating cash flow per share - diluted $ 0.432 $ 0.461 $ 1.873 $ 1.701
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 Years Ended
December 31
December 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2021 2020 2021 2020
Cost of sales $ 127,525 $ 124,310 $ 542,740 $ 510,652
Less: depletion (59,335) (59,785) (254,793) (243,889)
Cash cost of sales $ 68,190 $ 64,525 $ 287,947 $ 266,763
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 37,550 $ 37,355 $ 143,272 $ 157,429
Total cash cost of silver sold 27,993 25,228 132,151 101,529
Total cash cost of palladium sold 1,580 1,942 8,384 7,805
Total cash cost of cobalt sold 1,067 - 4,140 -
Total cash cost of sales $ 68,190 $ 64,525 $ 287,947 $ 266,763
Divided by:
Total gold ounces sold 79,622 86,243 312,465 369,553
Total silver ounces sold 5,116 4,576 22,860 19,232
Total palladium ounces sold 4,641 4,591 19,344 20,051
Total cobalt pounds sold 228 - 886 -
Equals:
Average cash cost of gold (per ounce) $ 472 $ 433 $ 459 $ 426
Average cash cost of silver (per ounce) $ 5.47 $ 5.51 $ 5.78 $ 5.28
Average cash cost of palladium (per ounce) $ 340 $ 423 $ 433 $ 389
Average cash cost of cobalt (per pound) $ 4.68 $ n.a. $ 4.67 $ n.a.
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 Years Ended
December 31
December 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2021 2020 2021 2020
Total sales:
Gold $ 143,187 $ 162,299 $ 561,920 $ 652,827
Silver $ 119,504 $ 113,131 $ 573,429 $ 399,625
Palladium $ 8,902 $ 10,782 $ 45,834 $ 43,772
Cobalt $ 6,604 $ - $ 20,482 $ -
Divided by:
Total gold ounces sold 79,622 86,243 312,465 369,553
Total silver ounces sold 5,116 4,576 22,860 19,232
Total palladium ounces sold 4,641 4,591 19,344 20,051
Total cobalt pounds sold 228 - 886 -
Equals:
Average realized price of gold (per ounce) $ 1,798 $ 1,882 $ 1,798 $ 1,767
Average realized price of silver (per ounce) $ 23.36 $ 24.72 $ 25.08 $ 20.78
Average realized price of palladium (per ounce) $ 1,918 $ 2,348 $ 2,369 $ 2,183
Average realized price of cobalt (per pound) $ 28.94 $ n.a. $ 23.11 $ n.a.
Less:
Average cash cost of gold (1) (per ounce) $ (472) $ (433) $ (459) $ (426)
Average cash cost of silver (1) (per ounce) $ (5.47) $ (5.51) $ (5.78) $ (5.28)
Average cash cost of palladium (1) (per ounce) $ (340) $ (423) $ (433) $ (389)
Average cash cost of cobalt (1) (per pound) $ (4.68) $ n.a. $ (4.67) $ n.a.
Equals:
Cash operating margin per gold ounce sold $ 1,326 $ 1,449 $ 1,339 $ 1,341
As a percentage of realized price of gold 74% 77% 74% 76%
Cash operating margin per silver ounce sold $ 17.89 $ 19.21 $ 19.30 $ 15.50
As a percentage of realized price of silver 77% 78% 77% 75%
Cash operating margin per palladium ounce sold $ 1,578 $ 1,925 $ 1,936 $ 1,794
As a percentage of realized price of palladium 82% 82% 82% 82%
Cash operating margin per cobalt pound sold $ 24.26 $ n.a. $ 18.44 $ n.a.
As a percentage of realized price of cobalt 84% n.a. 80% n.a.
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
audits for taxation years subsequent to 2015, 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, 2020 and Form 6-K filed March 10, 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.
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, 2021, which will be filed on or about
March 31, 2022 and other continuous disclosure documents filed by Wheaton
since January 1, 2022, 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 terms "mineral reserve", "proven mineral reserve" and "probable
mineral reserve" are Canadian mining terms defined in accordance with 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"). In addition, the
terms "mineral resource", "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource" are defined in and required to be
disclosed by NI 43-101. Investors are cautioned not to assume that any part or
all of the mineral deposits in these categories will ever be converted into
reserves. "Inferred mineral resources" have a great amount of uncertainty as
to their existence and as to their economic and legal feasibility. It cannot
be assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or pre-feasibility
studies, except in rare cases. Investors are cautioned not to assume that all
or any part of an inferred mineral resource exists or is economically or
legally mineable. Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Disclosure of "contained ounces" in a
resource is permitted disclosure under Canadian regulations. The SEC has
adopted amendments to its disclosure rules to modernize the mineral property
disclosure requirements for issuers whose securities are registered with the
SEC under the U.S. Securities Exchange Act of 1934, as amended (the "Exchange
Act"). These amendments became effective February 25, 2019 (the "SEC
Modernization Rules") with compliance required for the first fiscal year
beginning on or after January 1, 2021. Under the SEC Modernization Rules, the
historical property disclosure requirements for mining registrants included in
SEC Industry Guide 7 will be rescinded and replaced with disclosure
requirements in subpart 1300 of SEC Regulation S-K. Following the transition
period, as a foreign private issuer that is eligible to file reports with the
SEC pursuant to the multi-jurisdictional disclosure system, the Company is not
required to provide disclosure on its mineral properties under the SEC
Modernization Rules and will continue to provide disclosure under NI 43-101.
As a result of the adoption of the SEC Modernization Rules, the SEC will
recognize estimates of "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources." In addition, the SEC has amended
its definitions of "proven mineral reserves" and "probable mineral reserves"
to be "substantially similar" to the corresponding definitions under the CIM
Definition Standards that are required under NI 43-101. However, while the
above terms are "substantially similar" to CIM Definition Standards, there are
differences in the definitions under the SEC Modernization Rules and the CIM
Definition Standards. 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 under the SEC Modernization Rules. 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
Investor Relations
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 March 10, 2022, titled "Wheaton
Precious Metals Declares Quarterly Dividend."
2 (#_ednref2) Commodity price assumptions for the gold equivalent production
and sales in 2021 are $1,800 / ounce gold, $25 / ounce silver, and $2,300 /
ounce palladium and $17.75 / pound cobalt. Other metal includes palladium and
cobalt.
3 (#_ednref3) Gold equivalent forecast production for 2022 and the longer
term outlook and for mineral reserves and resources are based on the following
commodity price assumptions: $1,800 / ounce gold, $24 / ounce silver, $2,100 /
ounce palladium, $1,000 / ounce platinum and $33 / pound of cobalt. Other
metal includes palladium and cobalt. Five- and ten-year guidance do not
include optionality production from Pascua Lama, Navidad, Cotabambas, Metates,
or additional expansions at Salobo outside of project currently in
construction. In addition, five-year guidance also does not include any
production from Kutcho or the Victor project at Sudbury.
4 (#_ednref4) 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.
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. END FR GLGDXDDBDGDBRecent news on Wheaton Precious Metals
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AnnouncementREG - Stock Exch Notice - Admission to Trading - 10/04/2024
AnnouncementREG - Wheaton Precious Met - Notice of First Quarter Results
AnnouncementREG - Wheaton Precious Met - Total Voting Rights
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