REG - Wheaton Precious Met - Fourth Quarter and Full Year Financial Results
10/03/2023 07:15
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RNS Number : 5617S Wheaton Precious Metals Corp. 10 March 2023
March 10, 2023
Vancouver, British Columbia
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL results
Wheaton Precious Metals Generates Strong Cash Operating Margins in 2022
"Wheaton's portfolio of long-life, low-cost assets delivered over $1 billion
in revenue and over $740 million in operating cash flow in 2022. This strong
financial performance reflects the resiliency of Wheaton's streaming business
model, which delivers amongst the highest margins in the precious metals
space. Even in the current inflationary environment, Wheaton averaged 75% cash
operating margins in 2022," said Randy Smallwood, President and Chief
Executive Officer of Wheaton Precious Metals. "In addition, Wheaton took
strategic steps forward by optimizing the portfolio, adding four new streams
and making sector-leading commitments on the sustainability front. With one of
the strongest balance sheets in the industry, we enter 2023 exceptionally
well-positioned to deliver long-term shareholder value through the significant
organic growth profile already embedded in the portfolio as well as through
additional accretive acquisitions."
Solid Financial Results and Strong Balance Sheet
· Fourth Quarter of 2022: $236 million in revenue, $172 million in
operating cash flow, $166 million in net earnings and $104 million in adjusted
net earnings 1
· Full Year of 2022: $1,065 million in revenue, $743 million in operating
cash flow, $669 million in net earnings and $505 million in adjusted net
earnings(1)
· A cash balance of $696 million and no debt as at December 31, 2022
· Undrawn US$2 billion revolving credit facility with a July 18, 2027
maturity date
· Declared a quarterly dividend(1) of $0.15 per common share
High Quality Asset Base
· Streaming agreements on 20 operating mines and 12 development projects
· 93% of attributable production from assets in the lowest half of their
respective cost curves 2 (, 3 )
· 30 years of mine life based on Proven and Probable Mineral Reserves and
potential additional mine life from mineral resource conversion and
exploration(2)(, 4 )
· Attributable gold equivalent production of 148,300 ounces in the Fourth
Quarter of 2022 and 638,100 for the Full Year of 2022
· Average annual production for the ten-year period ending December 31,
2032, is expected to be approximately 850,000 gold equivalent ounces
("GEOs")(2)(,)(3)(, 5 )
· Completed the previously disclosed termination of the Yauliyacu
precious metal purchase agreement ("PMPA"), resulting in a $51 million gain on
the disposition in the fourth quarter
Leadership in Sustainability
· Top Rankings: #1 out of 114 precious metals companies and Global Top 50
out of over 15,000 multi-sector companies by Sustainalytics, AA rated by MSCI,
and Prime rated by ISS
· Commitment to Net-Zero Carbon Emissions by 2050 supported by interim
targets covering all material emissions including Scope 3
· Established a sustainability linked element in connection with the
revolving credit facility
· Recognized as one of the Best 50 Corporate Citizens in Canada by
Corporate Knights
Operational Overview
(all figures in US dollars unless otherwise noted) Q4 2022 Q4 2021 Change 2022 2021 Change
Units produced
Gold ounces 70,099 87,296 (19.7)% 286,805 341,521 (16.0)%
Silver ounces 5,352 6,356 (15.8)% 23,997 25,999 (7.7)%
Palladium ounces 3,869 4,733 (18.3)% 15,485 20,908 (25.9)%
Cobalt pounds 128 381 (66.4)% 724 2,293 (68.4)%
Gold equivalent ounces (3) 148,323 184,551 (19.6)% 638,113 754,591 (15.4)%
Units sold
Gold ounces 68,996 79,622 (13.3)% 293,234 312,465 (6.2)%
Silver ounces 4,935 5,116 (3.5)% 21,570 22,860 (5.6)%
Palladium ounces 3,396 4,641 (26.8)% 15,076 19,344 (22.1)%
Cobalt pounds 187 228 (18.0)% 1,038 886 17.2 %
Gold equivalent ounces (3) 142,190 157,439 (9.7)% 617,450 656,074 (5.9)%
Change in PBND and Inventory
Gold equivalent ounces (3) (11,870) 11,252 23,122 (47,055) 33,628 80,683
Revenue $ 236,051 $ 278,197 (15.1)% $ 1,065,053 $ 1,201,665 (11.4)%
Net earnings $ 166,125 $ 291,822 (43.1)% $ 669,126 $ 754,885 (11.4)%
Per share $ 0.367 $ 0.648 (43.4)% $ 1.482 $ 1.677 (11.6)%
Adjusted net earnings (1) $ 103,744 $ 132,232 (21.5)% $ 504,912 $ 592,079 (14.7)%
Per share (1) $ 0.229 $ 0.293 (21.8)% $ 1.118 $ 1.315 (15.0)%
Operating cash flows $ 172,028 $ 195,290 (11.9)% $ 743,424 $ 845,145 (12.0)%
Per share (1) $ 0.381 $ 0.433 (12.0)% $ 1.646 $ 1.878 (12.4)%
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2022, Salobo produced 37,900 ounces of
attributable gold, a decrease of approximately 21% relative to the fourth
quarter of 2021, primarily due to lower throughput and grades. According to
Vale S.A.'s ("Vale"), plant availability was impacted due to additional
planned and corrective maintenance performed in the fourth quarter.
Vale reports the Salobo III mine expansion project, which will increase the
mill throughput by 50%, successfully commenced at the end of 2022. The project
consists of two lines, the first of which started up in the fourth quarter of
2022 and the second expected to start in the first quarter of 2023.
Subsequent to the quarter, Wheaton and Vale agreed to amend the Salobo PMPA to
adjust the expansion payment terms in order to provide increased flexibility
for the ramp-up of the expansion while also maintaining an incentive for Vale
to maximize grade on an annual basis. The expansion payment will now be
phased, with Wheaton making an initial payment once actual throughput is
expanded above 32 million tonnes per annum ("Mtpa") and a second payment if
actual throughput is expanded above 35 Mtpa, by January 1, 2031. The total
cumulative payments will range from $283 million to $552 million, dependent at
Vale's timing for each of the production increases. In addition, Wheaton will
be required to make annual payments of between $5.1 million to $8.5 million
for a 10-year period following payment of the expansion payments if the Salobo
mine maintains a high-grade mine plan.
Antamina: In the fourth quarter of 2022, Antamina produced 1.1 million ounces
of attributable silver, a decrease of approximately 19% relative to the fourth
quarter of 2021, primarily due to lower grades as per the mine plan.
Peñasquito: In the fourth quarter of 2022, Peñasquito produced 1.8 million
ounces of attributable silver, a decrease of approximately 18% relative to the
fourth quarter of 2021 with lower recovery and grades as per the mine plan.
Constancia: In the fourth quarter of 2022, Constancia produced 0.7 million
ounces of attributable silver and 10,500 ounces of attributable gold, an
increase of approximately 13% and 6%, respectively, relative to the fourth
quarter of 2021, with the increase in silver being primarily due to higher
grades and recovery while the increase in gold production being primarily due
to the mining of higher-grade material. According to Hudbay Minerals Inc.
("Hudbay"), gold production was lower than expected in the fourth quarter as a
result of short-term changes in the mine plan that prioritized the processing
of lower grade stockpiles and shorter-haulage distance ore from the Constancia
pit versus higher-grade ore from the Pampacancha pit. These changes were
implemented by Hudbay to ration fuel during a period of nation-wide social
unrest and road blockades following a change in Peru's political leadership in
early December 2022, and ensured the plant continued to operate uninterrupted.
Sudbury: In the fourth quarter of 2022, Vale's Sudbury mines produced 6,300
ounces of attributable gold, an increase of approximately 45% relative to the
fourth quarter of 2021, primarily due to higher throughput as fourth quarter
2021 production was impacted by the temporary closure of the Totten Mine after
the shaft was damaged on September 26, 2021.
Stillwater: In the fourth quarter of 2022, the Stillwater mines produced 2,200
ounces of attributable gold and 3,900 ounces of attributable palladium, a
decrease of approximately 18% for gold and 18% for palladium relative to the
fourth quarter of 2021. As per Sibanye-Stillwater Limited ("Sibanye"), the
ramp-up of production post the regional flood event in early June 2022
progressed well, with production rates normalising during Q4 2022. Sibanye
continues to reposition the Stillwater operations for the current skills
shortage and changing macro environment and expects further normalization of
production rates in 2023.
San Dimas: In the fourth quarter of 2022, San Dimas produced 10,000 ounces of
attributable gold, a decrease of approximately 27% relative to the fourth
quarter of 2021, primarily due to the mining of lower grade material.
According to First Majestic Silver Corp., silver and gold grades were impacted
primarily due to the processing of lower grade development ores from the Perez
vein and higher tonnages from underground areas with challenging ground
conditions within the Jessica and Regina veins in the Noche Buena area.
Other Gold: In the fourth quarter of 2022, total Other Gold attributable
production was 3,100 ounces, a decrease of approximately 63% relative to the
fourth quarter of 2021, primarily due to the closure of the 777 mine in June
2022.
Other Silver: In the fourth quarter of 2022, total Other Silver attributable
production was 1.8 million ounces, a decrease of approximately 19% relative to
the fourth quarter of 2021, primarily due to the placement of Stratoni into
care and maintenance, the closure of the 777 mine and the termination of the
Keno Hill and Yauliyacu PMPAs.
Voisey's Bay: In the fourth quarter of 2022, the Voisey's Bay mine produced
128,000 pounds of attributable cobalt, a decrease of approximately 66%
relative to the fourth quarter of 2021, primarily due to mining lower grade
material during the ongoing transitional period between the depletion of the
Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay
underground project. Vale reports that physical completion of the Voisey's Bay
underground mine extension was 81% at the end of the fourth quarter. In the
second quarter of 2021, Vale achieved the first ore production from the Reid
Brook deposit, the first of two underground mines to be developed in the
project. Eastern Deeps, the second deposit, has started to extract development
ore from the deposit and is scheduled to start the main production ramp-up in
the second half of 2023.
Detailed mine-by-mine production and sales figures can be found in the
Appendix to this press release and in Wheaton's consolidated MD&A in the
'Results of Operations and Operational Review' section.
Fourth Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. ("Artemis") announced that it had
executed an order for construction equipment required for major construction
activities with the initial fleet expected to be delivered in early Q2 2023.
In addition, plant site preparation is well advanced with the majority of the
bulk earth works completed, and work on the construction camp is proceeding on
schedule with 150 rooms and kitchen facilities on track to be ready for
occupation by the end of February. Artemis also announced that it has closed
the $385 million project loan facility to fund a significant component of the
estimated construction costs of the Blackwater project. On March 9, 2023,
Artemis announced the approval of its BC Mines Act Permit for the Blackwater
project. The approval of the BC Mines Act Permit is the final step required to
allow Artemis to commence major works construction activities at the
Blackwater Mine in Q1 2023 with the expectation of an initial gold pour in the
second half of 2024.
Copper World Complex: Hudbay reports that it has executed a new strategy at
Copper World focused on project de-risking and a two-phase mine plan with the
first phase located on private land claims. The pre-feasibility study for
Phase I of Copper World is well-advanced with the main facility engineering
completed and metallurgical test work being analyzed as part of the
concentrate leaching trade off evaluations. The pre-feasibility study is
expected to be released in the second quarter of 2023.
Goose Project: Subsequent to the quarter, Sabina Gold & Silver Corp.
("Sabina") announced that it had entered into a definitive agreement (the
"Agreement") pursuant to which B2Gold Corp. has agreed to acquire all of the
issued and outstanding shares of Sabina.
Marathon Project: Generation Mining Limited ("Gen Mining") announced that the
Marathon Project was approved by the joint Federal and Provincial
Environmental Assessment process, and that they will now proceed to obtain the
necessary permits for construction and operation.
Curipamba Project: Adventus Mining Corporation ("Adventus") announced that the
Government of Ecuador has signed the Investment Contract in support of the
development of the El Domo deposit, which is part of the Curipamba Project.
Portfolio Optimization
Yauliyacu: On August 18, 2022, the Company announced that it had entered into
an agreement with Glencore plc ("Glencore") to terminate its silver stream on
the Yauliyacu mine in Peru for a cash payment of $150 million, less the
aggregate value of any deliveries to Wheaton, prior to closing, of silver
produced subsequent to December 31, 2021. The transaction closed on December
6, 2022, and the Company received a cash payment of $132 million. The
Yauliyacu PMPA was terminated on December 14, 2022.
Financial Review
Revenues
Revenue was $236 million in the fourth quarter of 2022 representing a 15%
decrease from the fourth quarter of 2021 due primarily to a 10% decrease in
the number of GEOs³ sold; and a 6% decrease in the average realized gold
equivalent³ price.
Revenue was $1,065 million in the year ended December 31, 2022, representing
an 11% decrease from 2021 due primarily to a 6% decrease in the number of gold
equivalent³ ounces sold; and a 6% decrease in the average realized gold
equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2022 were $434 per GEO² as
compared to $433 in the fourth quarter of 2021. This resulted in a cash
operating margin¹ of $1,226 per GEO³ sold, a decrease of 8% as compared with
the fourth quarter of 2021.
Average cash costs¹ in 2022 were $433 per GEO² as compared to $439 in 2021.
This resulted in a cash operating margin¹ of $1,292 per GEO³ sold, a 7%
decrease from the 2021.
Balance Sheet (at December 31, 2022)
· Approximately $696 million of cash on hand.
· During the fourth quarter of 2022, the Company made upfront cash
payments totaling $44 million relative to PMPAs.
· With the existing cash on hand coupled with the fully undrawn $2
billion revolving credit facility, the Company is well positioned to fund all
outstanding commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream interests.
Reserves and Resources (at December 31, 2022)
· Proven and Probable Mineral Reserves attributable to Wheaton were 13.90
million ounces of gold compared with 14.04 million ounces as reported in
Wheaton's 2021 Annual Information Form ("AIF"), a decrease of 1%; 489.2
million ounces of silver compared with 564.6 million ounces, decrease of
13%; 0.60 million ounces palladium compared with 0.63 million ounces, a
decrease of 3%; 0.17 million ounces of platinum, unchanged; and 33.2 million
pounds of cobalt compared to 31.4 million pounds, an increase of 6%. On a
GEO(3) basis, total Proven and Probable Mineral Reserves for all metals
attributable to Wheaton were 21.27 million ounces, a decrease of 5% with 2%
related to the terminations of the Yauliyacu and Keno Hill streams and the
closure of the 777 mine.
· Measured and Indicated Mineral Resources attributable to Wheaton were
5.47 million ounces of gold compared with 5.44 million ounces as reported in
Wheaton's 2021 AIF, an increase of 1%; 674.8 million ounces of silver compared
with 767.8 million ounces, a decrease of 12%; 0.09 million ounces of palladium
compared to 0.12 million ounces, a decrease of 28%; 0.097 million ounces of
platinum, unchanged; and 1.5 million pounds of cobalt, unchanged. On a GEO(3)
basis, total Measured and Indicated Mineral Resources for all metals
attributable to Wheaton were 14.38 million ounces, a decrease of 8% with 6%
related to the terminations of the Yauliyacu and Keno Hill streams.
· Inferred Mineral Resources attributable to Wheaton were 4.69 million
ounces of gold compared with 4.98 million ounces as reported in Wheaton's 2021
AIF, a decrease of 6%; 327.9 million ounces of silver compared with 461.1
million ounces, a decrease of 29%, 0.35 million ounces of palladium,
unchanged; 0.017 million ounces of platinum, unchanged; and 7.8 million pounds
of cobalt compared to 6.8, an increase of 13%. On a GEO(3) basis, total
Inferred Mineral Resources for all metals attributable to Wheaton were 9.37
million ounces, a decrease of 18% with 13% related to the terminations of the
Yauliyacu and Keno Hill streams.
Estimated attributable reserves and resources contained in this press release
are based on information available to the Company as of March 2, 2023, and
therefore will not reflect updates, if any, after that date. Updated reserves
and resources data incorporating year-end 2022 estimates will also be included
in the Company's 2022 Annual Information Form. Wheaton's most current
attributable reserves and resources, as of December 31, 2022, can be found on
the Company's website at www.wheatonpm.com (http://www.wheatonpm.com) .
Sustainability
Community Investment Program:
· In 2022, Wheaton's contribution to the Nature Trust of B.C. was
directed towards the Shoal Creek Estuary in an effort to acquire, protect and
enhance estuaries along the B.C. coastline. In the fourth quarter, the Fall
Gala Presented by Wheaton raised over $1.5 million in support of The Nature
Trust's conservation programs.
· In 2022, Wheaton made a $1 million commitment to the British Columbia
Institute of Technology's Inspire Campaign aimed at transforming the campus
into a dynamic new learning environment.
· In the fourth quarter, the Sports Celebrities Festival Presented by
Wheaton Precious Metals raised over CA$550,000 in support of Special Olympics
BC and the Canucks for Kids Fund.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company with the
highest-quality portfolio of long-life, low-cost assets. Its business model
offers investors commodity price leverage and exploration upside but with a
much lower risk profile than a traditional mining company. Wheaton delivers
amongst the highest cash operating margins in the mining industry, allowing it
to pay a competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed gold and
silver, as well as other mining investments. Wheaton is committed to strong
ESG practices and giving back to the communities where Wheaton and its mining
partners operate. Wheaton creates sustainable value through streaming for all
of its stakeholders.
Wheaton's estimated attributable production in 2023 as well as the 5-year
average and 10-year annual gold equivalent production is as follows:
Metal 2023 5-year Annual Average 10-year Annual Average
Forecast(2) (2023-2027)(2)(,)(5) (2023-2032)(2)(,)(5)
Gold Ounces 320,000 to 350,000
Silver Ounces ('000s) 20,000 to 22,000
Other Metals (Palladium & Cobalt) (GEOs(3)) 22,000 to 25,000
Total Gold Equivalent Ounces(3) 600,000 to 660,000 810,000 850,000
In 2023, gold equivalent production is forecast to be slightly higher than
2022 as expected stronger attributable production from Salobo and Constancia
is forecast to be offset by weaker production from Antamina and the
termination of the silver stream on Yauliyacu. Attributable production is
forecast to increase at Salobo as a result of uninterrupted operations as well
as the start-up of the Salobo III mine expansion and at Constancia due to
higher grades associated with the mining of the Pampacancha deposit.
Attributable production is forecast to decrease a Antamina due to lower grades
as per the mine plan.
Average forecast production over the next five years is expected to increase
primarily due to anticipated continued production growth from Salobo,
Stillwater, Constancia, Voisey's Bay and Marmato as well as incremental
production ounces from Blackwater, Toroparu, Marathon, Copper World Complex
and Santo Domingo towards the latter end of the forecast period. Average
forecast production over the next ten years includes additional incremental
production from the Fenix project, Kutcho project and the Victor mine in
Sudbury. Vale S.A. has indicated the potential for an additional expansion
after the Salobo III expansion, but Wheaton does not currently include this in
its forecast. Lastly, although Barrick Gold Corp. continues to advance a
comprehensive review of the Pascua Lama project, Wheaton does not include any
production from the project in its estimated average ten-year production
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 will be held on Friday, March 10, 2023, starting at 11:00 am
(Eastern Time) to discuss these results. To participate in the live call
please use one of the following methods:
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enter your phone number here (https://bit.ly/3kUMAbH) to receive an instant
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This earnings release should be read in conjunction with Wheaton Precious
Metals' MD&A and Financial Statements, which are available on the
Company's website at www.wheatonpm.com and have been posted on SEDAR at
www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo.,
Vice President, Technical Services for Wheaton Precious Metals and Ryan
Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such
term is defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns has
reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant differences
between its corporate governance practices and those required to be followed
by United States domestic issuers under the NYSE listing standards. This
confirmation is located on the Wheaton Precious Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
(http://www.wheatonpm.com/Company/corporate-governance/default.aspx)
(http://www.silverwheaton.com/company/corporate-governance/default.aspx) .
End Notes
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts) 2022 2021
Sales $ 1,065,053 $ 1,201,665
Cost of sales
Cost of sales, excluding depletion $ 267,621 $ 287,947
Depletion 231,952 254,793
Total cost of sales $ 499,573 $ 542,740
Gross margin $ 565,480 $ 658,925
General and administrative expenses 35,831 35,119
Share based compensation 20,060 19,265
Donations and community investments 6,296 6,601
Impairment (impairment reversal) of mineral stream interests (8,611) (156,717)
Earnings from operations $ 511,904 $ 754,657
Gain on disposal of mineral stream interest (155,868) -
Other (income) expense (7,449) (5,776)
Earnings before finance costs and income taxes $ 675,221 $ 760,433
Finance costs 5,586 5,817
Earnings before income taxes $ 669,635 $ 754,616
Income tax (expense) recovery (509) 269
Net earnings $ 669,126 $ 754,885
Basic earnings per share $ 1.482 $ 1.677
Diluted earnings per share $ 1.479 $ 1.673
Weighted average number of shares outstanding
Basic 451,570 450,138
Diluted 452,344 451,170
Consolidated Balance Sheets
As at As at
December 31
December 31
(US dollars in thousands) 2022 2021
Assets
Current assets
Cash and cash equivalents $ 696,089 $ 226,045
Accounts receivable 10,187 11,577
Cobalt inventory 10,530 8,712
Other 3,287 3,390
Total current assets $ 720,093 $ 249,724
Non-current assets
Mineral stream interests $ 5,707,019 $ 5,905,797
Early deposit mineral stream interests 46,092 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 256,095 61,477
Refundable deposit - 777 PMPA 8,073 -
Convertible notes receivable - 17,086
Property, plant and equipment 4,210 5,509
Other 11,718 15,211
Total non-current assets $ 6,039,813 $ 6,046,427
Total assets $ 6,759,906 $ 6,296,151
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 12,570 $ 13,939
Current taxes payable 2,763 132
Current portion of performance share units 14,566 14,807
Current portion of lease liabilities 818 813
Total current liabilities $ 30,717 $ 29,691
Non-current liabilities
Performance share units 6,673 11,498
Lease liabilities 1,152 2,060
Deferred income taxes 165 100
Pension liability 3,524 2,685
Total non-current liabilities $ 11,514 $ 16,343
Total liabilities $ 42,231 $ 46,034
Shareholders' equity
Issued capital $ 3,752,662 $ 3,698,998
Reserves 66,547 47,036
Retained earnings 2,898,466 2,504,083
Total shareholders' equity $ 6,717,675 $ 6,250,117
Total liabilities and shareholders' equity $ 6,759,906 $ 6,296,151
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands) 2022 2021
Operating activities
Net earnings $ 669,126 $ 754,885
Adjustments for
Depreciation and depletion 233,539 256,685
Gain on disposal of mineral stream interest (155,868) -
Impairment (reversal of impairment) of mineral stream interests (8,611) (156,717)
Interest expense 91 352
Equity settled stock based compensation 5,846 5,262
Performance share units (4,196) (2,925)
Pension expense 1,033 1,014
Income tax expense (recovery) 509 (269)
Loss (gain) on fair value adjustment of share purchase warrants held 1,033 2,101
Fair value (gain) loss on convertible note receivable 1,380 (5,733)
Investment income recognized in net earnings (6,774) (462)
Other (1,313) (510)
Change in non-cash working capital 1,573 (8,072)
Cash generated from operations before income taxes and interest $ 737,368 $ 845,611
Income taxes recovered (paid) (171) (279)
Interest paid (93) (429)
Interest received 6,320 242
Cash generated from operating activities $ 743,424 $ 845,145
Financing activities
Bank debt repaid $ - $ (195,000)
Credit facility extension fees (1,357) (1,727)
Share purchase options exercised 10,368 7,953
Lease payments (800) (780)
Dividends paid (237,097) (218,052)
Cash (used for) generated from financing activities $ (228,886) $ (407,606)
Investing activities
Mineral stream interests $ (151,929) $ (520,891)
Early deposit mineral stream interests (1,500) (1,500)
Mineral royalty interest - (3,571)
Net proceeds on disposal of mineral stream interests 131,763 -
Acquisition of long-term investments (22,768) (7,453)
Proceeds on disposal of long-term investments - 129,753
Dividends received 453 221
Other (316) (775)
Cash (used for) generated from investing activities $ (44,297) $ (404,216)
Effect of exchange rate changes on cash and cash equivalents $ (197) $ 39
Increase in cash and cash equivalents $ 470,044 $ 33,362
Cash and cash equivalents, beginning of year 226,045 192,683
Cash and cash equivalents, end of year $ 696,089 $ 226,045
Summary of Units Produced
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
Gold ounces produced ²
Salobo 37,939 44,212 34,129 44,883 48,235 55,205 55,590 46,622
Sudbury (3) 6,342 3,437 5,289 5,362 4,379 148 4,563 7,004
Constancia 10,496 7,196 8,042 6,311 9,857 8,533 5,525 2,453
San Dimas (4) 10,037 11,808 10,044 10,461 13,714 11,936 11,478 10,491
Stillwater (5) 2,185 1,833 2,171 2,497 2,664 2,949 2,962 3,041
Other
Minto 2,567 3,182 2,480 4,060 3,506 1,703 3,206 2,638
777 (6) - - 3,509 4,003 4,462 4,717 5,035 6,280
Marmato 533 542 778 477 479 433 1,713 -
Total Other 3,100 3,724 6,767 8,540 8,447 6,853 9,954 8,918
Total gold ounces produced 70,099 72,210 66,442 78,054 87,296 85,624 90,072 78,529
Silver ounces produced (2)
Peñasquito 1,761 2,017 2,089 2,219 2,145 2,180 2,026 2,202
Antamina 1,107 1,377 1,379 1,260 1,366 1,548 1,558 1,577
Constancia 655 564 584 506 578 521 468 406
Other
Los Filos (7) 23 23 23 42 37 17 26 31
Zinkgruvan 664 642 739 577 482 658 457 420
Yauliyacu (8) 261 463 756 637 382 372 629 737
Stratoni (9) - - - - 129 18 164 165
Minto 33 42 25 45 44 25 33 21
Neves-Corvo 369 323 345 344 522 362 408 345
Aljustrel 313 246 292 287 325 314 400 474
Cozamin 157 179 169 186 213 199 183 230
Marmato 9 7 8 11 7 10 39 -
Keno Hill (10) - - 48 20 30 44 55 27
777 (6) - - 80 91 96 81 83 130
Total Other 1,829 1,925 2,485 2,240 2,267 2,100 2,477 2,580
Total silver ounces produced 5,352 5,883 6,537 6,225 6,356 6,349 6,529 6,765
Palladium ounces produced ²
Stillwater (5) 3,869 3,229 3,899 4,488 4,733 5,105 5,301 5,769
Cobalt pounds produced ²
Voisey's Bay 128 226 136 234 381 370 380 1,162 ¹¹
GEOs produced (12) 148,323 158,554 160,646 170,590 184,551 183,012 190,272 196,756
Average payable rate (2)
Gold 94.9% 95.0% 95.1% 95.2% 96.0% 96.0% 95.8% 95.0%
Silver 83.5% 85.5% 85.5% 86.1% 86.0% 86.6% 86.9% 86.6%
Palladium 91.7% 95.0% 94.6% 92.7% 92.2% 94.5% 95.0% 91.6%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (12) 89.2% 90.2% 90.1% 90.5% 91.4% 91.3% 91.8% 90.7%
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 2022 - 348,000 ounces; Q3 2022
- 412,000 ounces; Q2 2022 - 382,000 ounces; Q1 2022 - 408,000 ounces; Q4 2021
- 544,000 ounces; Q3 2021 - 472,000 ounces; Q2 2021 - 467,000 ounces; Q1 2021
- 429,000 ounces..
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) On June 22, 2022, Hudbay announced that mining activities at 777 have
concluded and closure activities have commenced.
7) Operations at Los Filos were temporarily suspended from June 22, 2021
to July 26, 2021 as the result of illegal blockades by a group of unionized
employees and members of the Xochipala community.
8) On December 14, 2022 the Company terminated the Yauliyacu PMPA in
exchange for a cash payment of $132 million.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) On September 7, 2022, the Company
terminated the Keno Hill stream in exchange for $141 million of Hecla common
shares received as consideration.
11) 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.
12) GEOs, 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.
Summary of Units Sold
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
Gold ounces sold
Salobo 41,029 31,818 48,515 42,513 47,171 35,185 57,296 51,423
Sudbury (2) 4,988 5,147 7,916 3,712 965 1,915 6,945 3,691
Constancia 6,013 6,336 7,431 10,494 6,196 8,159 2,321 1,676
San Dimas 10,943 10,196 10,633 10,070 15,182 11,346 11,214 10,273
Stillwater (3) 1,783 2,127 2,626 2,628 2,933 2,820 2,574 3,074
Other
Minto 2,982 2,559 2,806 3,695 2,462 1,907 2,359 2,390
777 785 3,098 3,629 4,388 4,290 5,879 5,694 2,577
Marmato 473 719 781 401 423 438 1,687 -
Total Other 4,240 6,376 7,216 8,484 7,175 8,224 9,740 4,967
Total gold ounces sold 68,996 62,000 84,337 77,901 79,622 67,649 90,090 75,104
Silver ounces sold
Peñasquito 2,066 1,599 2,096 2,188 1,818 2,210 1,844 2,174
Antamina 1,114 1,155 1,177 1,468 1,297 1,502 1,499 1,930
Constancia 403 498 494 644 351 484 295 346
Other
Los Filos 16 24 41 42 17 12 42 27
Zinkgruvan 547 376 650 355 346 354 355 293
Yauliyacu 337 1,005 817 44 551 182 601 1,014
Stratoni - - (2) 133 42 41 167 117
Minto 23 22 21 31 27 24 29 26
Neves-Corvo 80 105 167 204 259 193 215 239
Aljustrel 156 185 123 145 133 155 208 257
Cozamin 150 154 148 177 174 170 168 173
Marmato 7 8 11 8 8 10 35 -
Keno Hill 1 30 30 27 24 51 33 12
777 35 73 75 87 69 99 109 49
Total Other 1,352 1,982 2,081 1,253 1,650 1,291 1,962 2,207
Total silver ounces sold 4,935 5,234 5,848 5,553 5,116 5,487 5,600 6,657
Palladium ounces sold
Stillwater (3) 3,396 4,227 3,378 4,075 4,641 5,703 3,869 5,131
Cobalt pounds sold
Voisey's Bay 187 115 225 511 228 131 395 132
GEOs sold (4) 142,190 138,824 170,371 166,065 157,439 149,862 176,502 172,271
Cumulative payable units PBND (5)
Gold ounces 63,601 65,978 59,331 81,365 84,989 80,819 66,238 70,072
Silver ounces 2,820 3,444 3,543 3,910 4,200 3,845 3,802 3,738
Palladium ounces 5,098 5,041 6,267 5,535 5,629 5,619 6,822 5,373
Cobalt pounds 257 402 280 550 596 637 777 820
GEO (4) 111,867 125,151 119,009 150,032 158,477 150,317 139,145 141,206
Inventory on hand
Cobalt pounds 633 556 582 410 657 488 134 132
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, 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 $33.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended December 31, 2022
Units Produced² Units Average Average Average Sales Impairment (Charges) Reversals / Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 37,939 41,029 $ 1,728 $ 416 $ 334 $ 70,878 $ - $ 40,110 $ 53,800 $ 2,383,262
Sudbury (5) 6,342 4,988 1,712 400 1,092 8,538 - 1,095 7,809 283,416
Constancia 10,496 6,013 1,728 416 271 10,388 - 6,255 7,885 95,583
San Dimas 10,037 10,943 1,728 624 260 18,903 - 9,231 12,071 155,865
Stillwater 2,185 1,783 1,728 309 429 3,080 - 1,765 2,530 215,852
Other (6) 3,100 4,240 1,713 894 59 7,264 (1,719) 1,505 4,697 494,143
70,099 68,996 $ 1,725 $ 475 $ 357 $ 119,051 $ (1,719) $ 59,961 $ 88,792 $ 3,628,121
Silver
Peñasquito 1,761 2,066 $ 21.28 $ 4.36 $ 3.57 $ 43,949 $ - $ 27,577 $ 34,943 $ 293,674
Antamina 1,107 1,114 21.28 4.33 7.06 23,701 - 11,009 18,872 545,368
Constancia 655 403 21.28 6.14 6.35 8,572 - 3,538 6,098 192,947
Other (7) 1,829 1,352 22.15 6.19 5.03 29,953 51,443 66,228 20,283 453,096
5,352 4,935 $ 21.52 $ 5.00 $ 4.98 $ 106,175 $ 51,443 $ 108,352 $ 80,196 $ 1,485,085
Palladium
Stillwater 3,869 3,396 $ 1,939 $ 357 $ 399 $ 6,586 $ - $ 4,018 $ 5,373 $ 226,812
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,428
Cobalt
Voisey's Bay 128 187 $ 22.62 $ 16.52 ⁸ $ 13.72 $ 4,239 $ - $ (1,426) $ 3,766 $ 357,573
Operating results $ 236,051 $ 49,724 $ 170,905 $ 178,127 $ 5,707,019
Other
General and administrative $ (8,383) $ (6,399)
Share based compensation (8,474) -
Donations and community investments (2,916) (2,742)
Finance costs (1,377) (1,028)
Other 4,000 4,100
Income tax 12,370 (30)
Total other $ (4,780) $ (6,099) $ 1,052,887
$ 166,125 $ 172,028 $ 6,759,906
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) The gain on disposal of Other silver interests relates to the
termination of the Yauliyacu PMPA, while the impairment of Other gold
interests relates to the 777 PMPA.
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 Minto and Marmato gold interests as well as
the non-operating 777, Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba
gold interests. On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have commenced.
7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo,
Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777,
Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly
referred to as Rosemont), Blackwater and Curipamba silver interests and the
previously owned Yauliyacu and Keno Hill silver interests. The Stratoni mine
was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On September 7, 2022, the Keno Hill stream was terminated in
exchange for $141 million of Hecla common stock. On December 14, 2022 the
Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million.
8) Cash cost per pound of cobalt sold during the fourth quarter of 2022
includes an inventory impairment charge of $1.6 million, resulting in an
increase of $8.71 per pound. The Company reflects the cobalt inventory at the
lower of cost and net realizable value, and will continue to monitor the
market price of cobalt relative to the carrying of the inventory at each
reporting period.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended December 31, 2022 were as follows:
Three Months Ended December 31, 2022
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 148,323 142,190 $ 1,660 $ 434 $ 1,226 $ 374 $ 852
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce
silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2022.
Three Months Ended December 31, 2021
Units Produced² Units Average Average Average Sales Impairment Reversal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings (Loss)
From
Assets
Price
($'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 $ 63,659 $ 2,437,939
Sudbury (5) 4,379 965 1,795 400 1,024 1,732 - 357 1,346 307,169
Constancia 9,857 6,196 1,799 412 315 11,147 - 6,642 8,398 103,789
San Dimas 13,714 15,182 1,799 618 322 27,309 - 13,030 17,923 166,723
Stillwater 2,664 2,933 1,799 319 397 5,275 - 3,176 4,340 219,785
Other (6) 8,447 7,175 1,795 676 42 12,875 - 7,721 8,463 364,792
87,296 79,622 $ 1,798 $ 472 $ 338 $ 143,187 $ - $ 78,707 $ 104,129 $ 3,600,197
Silver
Peñasquito 2,145 1,818 $ 23.28 $ 4.29 $ 3.55 $ 42,314 $ - $ 28,064 $ 34,515 $ 322,018
Antamina 1,366 1,297 23.33 4.73 7.53 30,250 - 14,351 25,091 580,052
Constancia 578 351 23.28 6.08 7.56 8,170 - 3,383 5,739 205,884
Other (7) 2,267 1,650 23.48 7.22 5.83 38,770 - 17,226 26,118 593,195
6,356 5,116 $ 23.36 $ 5.47 $ 5.57 $ 119,504 $ - $ 63,024 $ 91,463 $ 1,701,149
Palladium
Stillwater 4,733 4,641 $ 1,918 $ 340 $ 442 $ 8,902 $ - $ 5,268 $ 7,323 $ 232,830
Cobalt
Voisey's Bay 381 228 $ 28.94 $ 4.68 $ 8.17 $ 6,604 $ 156,717 $ 160,390 $ 2,443 $ 371,621
Operating results $ 278,197 $ 156,717 $ 307,389 $ 205,358 $ 5,905,797
Other
General and administrative $ (8,547) $ (6,043)
Share based compensation (5,519) -
Donations and community investments (2,889) (3,067)
Finance costs (1,508) (1,026)
Other 3,581 296
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) Relates to the Voisey's Bay PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Comprised of the operating Minto, 777 and Marmato gold interests as
well as the non-operating Copper World Complex gold interest (formerly
referred to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced.
7) Comprised of the operating Los Filos, Zinkgruvan, Stratoni,
Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the
non-operating Loma de La Plata, Copper World Complex (formerly referred to as
Rosemont) and Pascua-Lama silver interests and the previously owned Keno Hill
and Yauliyacu silver interests. The Stratoni mine was placed into care and
maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced. On
September 7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was
terminated in exchange for a cash payment of $132 million.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended December 31, 2021 were as follows:
Three Months Ended December 31, 2021
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 184,551 157,439 $ 1,767 $ 433 $ 1,334 $ 377 $ 957
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce
silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2022.
Year Ended December 31, 2022
Units Produced² Units Average Average Average Sales Impairment (Charges) Reversals / Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 161,163 163,875 $ 1,807 $ 416 $ 334 $ 296,145 $ - $ 173,257 $ 227,933 $ 2,383,262
Sudbury (5) 20,430 21,763 1,802 400 1,091 39,211 - 6,752 30,789 283,416
Constancia 32,045 30,274 1,812 414 271 54,868 - 34,142 42,348 95,583
San Dimas 42,350 41,842 1,798 623 260 75,238 - 38,327 49,186 155,865
Stillwater 8,686 9,164 1,810 325 429 16,583 - 9,667 13,600 215,852
Other (6) 22,131 26,316 1,811 760 48 47,653 (1,719) 24,687 27,610 494,143
286,805 293,234 $ 1,806 $ 472 $ 350 $ 529,698 $ (1,719) $ 286,832 $ 391,466 $ 3,628,121
Silver
Peñasquito 8,086 7,949 $ 21.97 $ 4.36 $ 3.57 $ 174,635 $ - $ 111,634 $ 139,978 $ 293,674
Antamina 5,123 4,914 21.94 4.40 7.06 107,794 - 51,488 85,824 545,368
Constancia 2,309 2,039 21.97 6.10 6.35 44,798 - 19,421 32,358 192,947
Other (7) 8,479 6,668 21.56 6.95 5.50 143,776 166,198 226,995 96,251 453,096
23,997 21,570 $ 21.84 $ 5.33 $ 5.22 $ 471,003 $ 166,198 $ 409,538 $ 354,411 $ 1,485,085
Palladium
Stillwater 15,485 15,076 $ 2,133 $ 377 $ 399 $ 32,160 $ - $ 20,455 $ 26,472 $ 226,812
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,428
Cobalt
Voisey's Bay 724 1,038 $ 31.00 $ 8.10 ⁸ $ 10.26 $ 32,192 $ - $ 13,134 $ 28,449 $ 357,573
Operating results $ 1,065,053 $ 164,479 $ 729,959 $ 800,798 $ 5,707,019
Other
General and administrative $ (35,831) $ (35,332)
Share based compensation (20,060) (18,161)
Donations and community investments (6,296) (5,718)
Finance costs (5,586) (4,135)
Other 7,449 6,143
Income tax (509) (171)
Total other $ (60,833) $ (57,374) $ 1,052,887
$ 669,126 $ 743,424 $ 6,759,906
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) The gain on disposal of Other silver interests relates to the
termination of the Keno Hill and Yauliyacu PMPAs, while the impairment of
Other gold interests relates to the 777 PMPA.
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 Minto and Marmato gold interests as well as
the non-operating 777 and Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba
gold interests. On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have commenced.
7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo,
Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777,
Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly
referred to as Rosemont), Blackwater and Curipamba silver interests and the
previously owned Keno Hill and Yauliyacu silver interests. The Stratoni mine
was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On September 7, 2022, the Keno Hill stream was terminated in
exchange for $141 million of Hecla common stock. On December 14, 2022 the
Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million.
8) Cash cost per pound of cobalt sold during the fourth quarter of 2022
includes an inventory impairment charge of $1.6 million, resulting in an
increase of $1.60 per pound. The Company reflects the cobalt inventory at the
lower of cost and net realizable value, and will continue to monitor the
market price of cobalt relative to the carrying of the inventory at each
reporting period.
On a gold equivalent and silver equivalent basis, results for the Company for
the year ended December 31, 2022 were as follows:
Year Ended December 31, 2022
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 638,113 617,450 $ 1,725 $ 433 $ 1,292 $ 376 $ 916
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce
silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2022.
Year Ended December 31, 2021
Units Produced² Units Average Average Average Sales Impairment Reversal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 205,652 191,075 $ 1,797 $ 412 $ 374 $ 343,398 $ - $ 193,247 $ 264,652 $ 2,437,939
Sudbury (5) 16,094 13,516 1,811 400 1,024 24,475 - 5,221 19,068 307,169
Constancia 26,368 18,352 1,797 411 315 32,974 - 19,658 25,438 103,789
San Dimas 47,619 48,015 1,797 617 322 86,290 - 41,199 56,679 166,723
Stillwater 11,616 11,401 1,797 325 397 20,487 - 12,259 16,784 219,785
Other (6) 34,172 30,106 1,804 607 61 54,296 - 34,192 36,444 364,792
341,521 312,465 $ 1,798 $ 459 $ 361 $ 561,920 $ - $ 305,776 $ 419,065 $ 3,600,197
Silver
Peñasquito 8,553 8,046 $ 25.07 $ 4.29 $ 3.55 $ 201,688 $ - $ 138,616 $ 167,169 $ 322,018
Antamina 6,049 6,228 25.17 5.04 7.53 156,735 - 78,458 125,688 580,052
Constancia 1,973 1,476 24.91 6.05 7.56 36,775 - 16,689 27,848 205,884
Other (7) 9,424 7,110 25.07 8.06 5.56 178,231 - 81,393 123,359 593,195
25,999 22,860 $ 25.08 $ 5.78 $ 5.52 $ 573,429 $ - $ 315,156 $ 444,064 $ 1,701,149
Palladium
Stillwater 20,908 19,344 $ 2,369 $ 433 $ 442 $ 45,834 $ - $ 28,891 $ 37,450 $ 232,830
Cobalt
Voisey's Bay 2,293 886 $ 23.11 $ 4.67 $ 8.17 $ 20,482 $ 156,717 $ 165,819 $ 3,687 $ 371,621
Operating results $ 1,201,665 $ 156,717 $ 815,642 $ 904,266 $ 5,905,797
Other
General and administrative $ (35,119) $ (31,931)
Share based compensation (19,265) (16,926)
Donations and community investments (6,601) (6,323)
Finance costs (5,817) (4,271)
Other 5,776 609
Income tax 269 (279)
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) Relates to the Voisey's Bay PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Comprised of the operating Minto, 777 and Marmato gold interests as
well as the non-operating Copper World Complex gold interest (formerly
referred to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced.
7) Comprised of the operating Los Filos, Zinkgruvan, Stratoni,
Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the
non-operating Loma de La Plata, Copper World Complex (formerly referred to as
Rosemont) and Pascua-Lama silver interests and the previously owned Keno Hill
and Yauliyacu silver interests. The Stratoni mine was placed into care and
maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced. On
September 7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was
terminated in exchange for a cash payment of $132 million.
On a gold equivalent and silver equivalent basis, results for the Company for
the year ended December 31, 2021 were as follows:
Year Ended December 31, 2021
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 754,591 656,074 $ 1,832 $ 439 $ 1,393 $ 388 $ 1,005
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) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
4) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $1,800 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; and (iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other one-time
(income) expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery) recognized in the
Statements of Shareholders' Equity and OCI, respectively. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS,
management and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net earnings and
adjusted net earnings per share (basic and diluted).
Three Months Ended Years Ended
December 31
December 31
(in thousands, except for per share amounts) 2022 2021 2022 2021
Net earnings $ 166,125 $ 291,822 $ 669,126 $ 754,885
Add back (deduct):
Impairment charge (reversal) 1,719 (156,717) (8,611) (156,717)
Gain on disposal of Mineral Stream Interest (51,443) - (155,868) -
(Gain) loss on fair value adjustment of share purchase warrants held (67) (290) 1,033 2,101
(Gain) loss on fair value adjustment of convertible notes receivable - (1,597) 1,380 (5,733)
Income tax (expense) recovery recognized in the Statement of Shareholders' - 974 4,143 1,811
Equity
Income tax (expense) recovery recognized in the Statement of OCI (7,214) (325) (6,513) (2,314)
Income tax expense (recovery) resulting from disposal of Mineral Stream (5,376) - 2,404 -
Interest, net of above
Other - (1,635) (2,182) (1,954)
Adjusted net earnings $ 103,744 $ 132,232 $ 504,912 $ 592,079
Divided by:
Basic weighted average number of shares outstanding 452,070 450,614 451,570 450,138
Diluted weighted average number of shares outstanding 452,778 451,570 452,344 451,170
Equals:
Adjusted earnings per share - basic $ 0.229 $ 0.293 $ 1.118 $ 1.315
Adjusted earnings per share - diluted $ 0.229 $ 0.293 $ 1.116 $ 1.312
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) 2022 2021 2022 2021
Cash generated by operating activities $ 172,028 $ 195,290 $ 743,424 $ 845,145
Divided by:
Basic weighted average number of shares outstanding 452,070 450,614 451,570 450,138
Diluted weighted average number of shares outstanding 452,778 451,570 452,344 451,170
Equals:
Operating cash flow per share - basic $ 0.381 $ 0.433 $ 1.646 $ 1.878
Operating cash flow per share - diluted $ 0.380 $ 0.432 $ 1.643 $ 1.873
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) 2022 2021 2022 2021
Cost of sales $ 114,870 $ 127,525 $ 499,573 $ 542,740
Less: depletion (53,139) (59,335) (231,952) (254,793)
Cash cost of sales $ 61,731 $ 68,190 $ 267,621 $ 287,947
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 32,749 $ 37,550 $ 138,468 $ 143,272
Total cash cost of silver sold 24,674 27,993 115,058 132,151
Total cash cost of palladium sold 1,213 1,580 5,687 8,384
Total cash cost of cobalt sold 3,095 1,067 8,408 4,140
Total cash cost of sales $ 61,731 $ 68,190 $ 267,621 $ 287,947
Divided by:
Total gold ounces sold 68,996 79,622 293,234 312,465
Total silver ounces sold 4,935 5,116 21,570 22,860
Total palladium ounces sold 3,396 4,641 15,076 19,344
Total cobalt pounds sold 187 228 1,038 886
Equals:
Average cash cost of gold (per ounce) $ 475 $ 472 $ 472 $ 459
Average cash cost of silver (per ounce) $ 5.00 $ 5.47 $ 5.33 $ 5.78
Average cash cost of palladium (per ounce) $ 357 $ 340 $ 377 $ 433
Average cash cost of cobalt (per pound) $ 16.52 $ 4.68 $ 8.10 $ 4.67
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) 2022 2021 2022 2021
Total sales:
Gold $ 119,051 $ 143,187 $ 529,698 $ 561,920
Silver $ 106,175 $ 119,504 $ 471,003 $ 573,429
Palladium $ 6,586 $ 8,902 $ 32,160 $ 45,834
Cobalt $ 4,239 $ 6,604 $ 32,192 $ 20,482
Divided by:
Total gold ounces sold 68,996 79,622 293,234 312,465
Total silver ounces sold 4,935 5,116 21,570 22,860
Total palladium ounces sold 3,396 4,641 15,076 19,344
Total cobalt pounds sold 187 228 1,038 886
Equals:
Average realized price of gold (per ounce) $ 1,725 $ 1,798 $ 1,806 $ 1,798
Average realized price of silver (per ounce) $ 21.52 $ 23.36 $ 21.84 $ 25.08
Average realized price of palladium (per ounce) $ 1,939 $ 1,918 $ 2,133 $ 2,369
Average realized price of cobalt (per pound) $ 22.62 $ 28.94 $ 31.00 $ 23.11
Less:
Average cash cost of gold (1) (per ounce) $ (475) $ (472) $ (472) $ (459)
Average cash cost of silver (1) (per ounce) $ (5.00) $ (5.47) $ (5.33) $ (5.78)
Average cash cost of palladium (1) (per ounce) $ (357) $ (340) $ (377) $ (433)
Average cash cost of cobalt (1) (per pound) $ (16.52) $ (4.68) $ (8.10) $ (4.67)
Equals:
Cash operating margin per gold ounce sold $ 1,250 $ 1,326 $ 1,334 $ 1,339
As a percentage of realized price of gold 72% 74% 74% 74%
Cash operating margin per silver ounce sold $ 16.52 $ 17.89 $ 16.51 $ 19.30
As a percentage of realized price of silver 77% 77% 76% 77%
Cash operating margin per palladium ounce sold $ 1,582 $ 1,578 $ 1,756 $ 1,936
As a percentage of realized price of palladium 82% 82% 82% 82%
Cash operating margin per cobalt pound sold $ 6.10 $ 24.26 $ 22.90 $ 18.44
As a percentage of realized price of cobalt 27% 84% 74% 80%
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 risks
relating to the satisfaction of each party's obligations in accordance with
the terms of the Company's PMPAs or royalty arrangements, risks associated
with fluctuations in the price of commodities (including Wheaton's ability to
sell its precious metals or cobalt production at acceptable prices or at all),
risks related to the Mining Operations (including fluctuations in the price of
the primary or other commodities mined at such operations, regulatory,
political and other risks of the jurisdictions in which the Mining Operations
are located, actual results of mining, risks associated with the exploration,
development, operating, expansion and improvement of the Mining Operations,
environmental and economic risks of the Mining Operations, and changes in
project parameters as plans continue to be refined), the absence of control
over the Mining Operations and having to rely on the accuracy of the public
disclosure and other information Wheaton receives from the Mining Operations,
uncertainty in the estimation of production from Mining Operations,
uncertainty in the accuracy of mineral reserve and mineral resource
estimation, risks of significant impacts on Wheaton or the Mining Operations
as a result of an epidemic (including the COVID-19 virus pandemic), the
ability of each party to satisfy their obligations in accordance with the
terms of the PMPAs, the estimation of future production from Mining
Operations, Wheaton's interpretation of, compliance with or application of,
tax laws and regulations or accounting policies and rules being found to be
incorrect, any challenge or reassessment by the CRA of the Company's tax
filings being successful and the potential negative impact to the Company's
previous and future tax filings, assessing the impact of the CRA Settlement
(including whether there will be any material change in the Company's facts or
change in law or jurisprudence), potential implementation of a 15% global
minimum tax, counterparty credit and liquidity, mine operator concentration,
indebtedness and guarantees, hedging, competition, claims and legal
proceedings against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of Wheaton and the
Mining Operations, exploration, development, operations, expansions and
improvements at the Mining Operations, environmental regulations, climate
change, Wheaton and the Mining Operations ability to obtain and maintain
necessary licenses, permits, approvals and rulings, Wheaton and the Mining
Operations ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable supplies, infrastructure and employees to
support the Mining Operations, inability to replace and expand mineral
reserves, including anticipated timing of the commencement of production by
certain Mining Operations (including increases in production, estimated grades
and recoveries), uncertainties of title and indigenous rights with respect to
the Mining Operations, environmental, social and governance matters, Wheaton
and the Mining Operations ability to obtain adequate financing, the Mining
Operations ability to complete permitting, construction, development and
expansion, global financial conditions, Wheaton's acquisition strategy and
other risks discussed in the section entitled "Description of the Business -
Risk Factors" in Wheaton's Annual Information Form available on SEDAR at
www.sedar.com (http://www.sedar.com) , 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 is accurate (including the Company's assessment that there will be
no material change in the Company's facts or change in law or jurisprudence),
and such other assumptions and factors as set out in the Disclosure. There can
be no assurance that forward-looking statements will prove to be accurate and
even if events or results described in the forward-looking statements are
realized or substantially realized, there can be no assurance that they will
have the expected consequences to, or effects on, Wheaton. Readers should not
place undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included herein are
for the purpose of providing readers with information to assist them in
understanding Wheaton's expected financial and operational performance and may
not be appropriate for other purposes. Any forward looking statement speaks
only as of the date on which it is made, reflects Wheaton's management's
current beliefs based on current information and will not be updated except in
accordance with applicable securities laws. Although Wheaton has attempted to
identify important factors that could cause actual results, level of activity,
performance or achievements to differ materially from those contained in
forward‑looking statements, there may be other factors that cause results,
level of activity, performance or achievements not to be as anticipated,
estimated or intended.
Cautionary Language Regarding Reserves And Resources
For further information on Mineral Reserves and Mineral Resources and on
Wheaton more generally, readers should refer to Wheaton's Annual Information
Form for the year ended December 31, 2022, which will be filed on or about
March 31, 2023 and other continuous disclosure documents filed by Wheaton
since January 1, 2023, available on SEDAR at www.sedar.com. Wheaton's Mineral
Reserves and Mineral Resources are subject to the qualifications and notes set
forth therein. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured,
Indicated and Inferred Resources: The information contained herein has been
prepared in accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States securities
laws. The 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 or Emma Murray
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 March 9, 2023, titled "Wheaton Precious
Metals Declares Quarterly Dividend."
2 Statements made in this section contain forward-looking information with
respect to forecast production, funding outstanding commitments and continuing
to acquire accretive mineral stream interests and readers are cautioned that
actual outcomes may vary. Please see "Cautionary Note Regarding
Forward-Looking Statements" for material risks, assumptions and important
disclosure associated with this information.
3 Company reports & S and P Capital IQ est. of 2022 byproduct cost
curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs
relating to 2022 production, which are provided to assist the reader, are
based on the following commodity price assumptions: gold $1,800/oz, silver
$24/oz, palladium $2,100/oz and cobalt $33/lb. GEOs relating to 2023 outlook
are based on the following commodity price assumptions: gold $1,850/oz, silver
$24/oz, palladium $1,800/oz, platinum $1,100/oz and cobalt $18.75/lb
4 Portfolio mine life based on recoverable reserves and resources as of Dec
31, 2022 and 2022 actual mill throughput and is weighted by individual reserve
and resource category.
5 Five- and ten-year guidance do not include optionality production from
Pascua Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo
outside of the project currently in construction. In addition, five-year
guidance also does not include any production from Kutcho, or the Victor
project at Sudbury.
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