REG - Wheaton Precious Met - Q2 2024 Results & Record Operating Cash Flow in H1
08/08/2024 07:00
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RNS Number : 6368Z Wheaton Precious Metals Corp. 08 August 2024
Vancouver, British Columbia
Designated News Release
second QUARTER FINANCIAL results
Wheaton Precious Metals Announces Second Quarter 2024 Results
and Record Operating Cash Flow for the First Half of 2024
"Wheaton once again delivered strong results in the second quarter, generating
$234 million in operating cash flow, resulting in record cash flows of over
$450 million for the first half of the year. With year-to-date gold equivalent
production of approximately 305,000 ounces, we are well on track to achieve
our 2024 production guidance of 550,000 to 620,000 gold equivalent ounces,"
said Randy Smallwood, President and Chief Executive Officer of Wheaton
Precious Metals." In addition, we were ranked among the top 10 companies on
Corporate Knights' annual list of the Best 50 Corporate Citizens in Canada and
published our annual sustainability and climate change reports. Corporate
Knights' recognition highlights our leadership in sustainability and
commitment to creating value for all stakeholders. Our performance in the
first half of 2024 supports our belief that the strength of our organic growth
profile and high-quality, long-life portfolio, combined with favorable
commodity price trends, firmly positions Wheaton as a premier choice for
precious metals exposure."
Solid Financial Results and Strong Balance Sheet
· Second quarter of 2024: $299 million in revenue, $234 million in
operating cash flow, $122 million in net earnings and $150 million in adjusted
net earnings 1 (#_edn1) and, declared a quarterly dividend(1) of $0.155 per
common share.
· Balance Sheet: cash balance of $540 million, no debt, and an undrawn $2
billion revolving credit facility as at June 30, 2024 after making total
upfront cash payments of $45 million relative to mineral stream and royalty
interests in the quarter.
o Undrawn $2 billion revolving credit facility extended by an additional
year with the facility now maturing on June 25, 2029.
High Quality Asset Base
· Streaming and royalty agreements on 18 operating mines and 27
development projects(5).
· 93% of attributable production from assets in the lowest half of their
respective cost curves 2 (#_edn2) (,4).
· Attributable gold equivalent production(3) ("GEOs") of 147,100 ounces
in the second quarter of 2024 and 305,800 for the first six months of 2024,
with year-to-date production representing an increase of 13% relative to the
comparable period of the prior year due primarily to the mill throughput
expansion at Salobo.
· Average annual forecast production guidance for 2024 of 550,000 to
620,000 GEOs(3) maintained, with forecasted sector-leading growth of over
800,000 GEOs(3) by 2028, and average annual forecast attributable production
growing to over 850,000 GEOs(3) in years 2029 to 2033.
· Further de-risked forecast growth profile as construction activities
advanced at the Blackwater, Goose, Platreef, Mineral Park and Marmato Lower
Mine Projects, all of which are expected to be producing within the next 16
months.
Leadership in Sustainability
· Recognized among Corporate Knights' 2024 100 Most Sustainable
Corporations in the World, and Best 50 Corporate Citizens in Canada.
· Top Rankings: One of the top-rated companies by Sustainalytics, AA
rated by MSCI and Prime rated by ISS.
· Published our second annual Climate Change Report detailing how Wheaton
is addressing climate change risks and opportunities, as well as potential
climate-related impacts.
· Published our fifth annual Sustainability Report highlighting our
commitment to responsible business practices and providing a comprehensive
review of Wheaton's performance in environmental, social and governance
topics.
Operational Overview
(all figures in US dollars unless otherwise noted) Q2 2024 Q2 2023 Change YTD 2024 YTD 2023 Change
Units produced
Gold ounces 84,993 83,180 2.2 % 176,932 156,199 13.3 %
Silver ounces 5,062 4,441 14.0 % 10,538 9,575 10.1 %
Palladium ounces 4,338 3,880 11.8 % 8,801 7,585 16.0 %
Cobalt pounds 259 152 70.8 % 499 276 80.8 %
Gold equivalent ounces (3) 147,059 137,176 7.2 % 305,761 271,906 12.5 %
Units sold
Gold ounces 77,326 75,294 2.7 % 169,345 137,899 22.8 %
Silver ounces 3,823 4,437 (13.8)% 7,890 8,186 (3.6)%
Palladium ounces 4,301 3,392 26.8 % 9,075 6,338 43.2 %
Cobalt pounds 88 265 (66.8)% 397 588 (32.5)%
Gold equivalent ounces (3) 124,009 129,734 (4.4)% 267,193 239,027 11.8 %
Change in PBND and Inventory
Gold equivalent ounces (3) 9,615 (13,750) (23,365) 10,289 (1,994) (12,283)
Revenue $ 299,064 $ 264,972 12.9 % $ 595,870 $ 479,437 24.3 %
Net earnings $ 122,317 $ 141,448 (13.5)% $ 286,358 $ 252,839 13.3 %
Per share $ 0.270 $ 0.312 (13.5)% $ 0.632 $ 0.559 13.1 %
Adjusted net earnings (1) $ 149,565 $ 142,584 4.9 % $ 288,398 $ 247,015 16.8 %
Per share (1) $ 0.330 $ 0.315 4.8 % $ 0.636 $ 0.546 16.5 %
Operating cash flows $ 234,393 $ 202,376 15.8 % $ 453,773 $ 337,482 34.5 %
Per share (1) $ 0.517 $ 0.447 15.7 % $ 1.001 $ 0.746 34.2 %
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Financial Review
Revenues
Revenue in the second quarter of 2024 was $299 million (61% gold, 37% silver,
1% palladium and 1% cobalt), with the $34 million increase relative to the
prior period quarter being primarily due to an 18% increase in the average
realized gold equivalent³ price; partially offset by a 4% decrease in the
number of GEOs³ sold.
Revenue was $596 million in the six months ended June 30, 2024, representing a
$116 million increase from the comparable period of the previous year due
primarily to an 11% increase in the average realized gold equivalent³ price,
resulting from relative changes in the GEOs³ produced but not yet delivered;
and a 12% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the second quarter of 2024 were $436 per GEO³ as
compared to $452 in the second quarter of 2023. This resulted in a cash
operating margin¹ of $1,976 per GEO³ sold, an increase of 24% as compared
with the second quarter of 2023, a result of the higher realized price per
ounce coupled with the lower average cash costs.
Average cash costs¹ for the six months ended June 30, 2024 were $433 per
GEO³ as compared to $463 in the comparable period of the previous year. This
resulted in a cash operating margin¹ of $1,797 per GEO³ sold, a 16% increase
from the comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the second quarter of 2024 amounted to $234 million,
with the $32 million increase due primarily to the higher gross margin.
Operating cash flows for the six months ended June 30, 2024 amounted to $454
million, with the $116 million increase from the comparable period of the
previous year being due primarily to the higher gross margin.
Balance Sheet (at June 30, 2024)
· Approximately $540 million of cash on hand
· The Company extended its existing undrawn $2 billion revolving term
loan (the "Revolving Facility") with its maturity date now June 25, 2029.
· During the second quarter of 2024, the Company made total upfront cash
payments of $45 million relative to the mineral stream and royalty interests
consisting of:
o $10 million relative to the Cangrejos PMPA;
o $25 million relative to the Mineral Park PMPA; and
o $10 million relative to the Mt Todd Royalty.
· During the second quarter of 2024, the Company disposed of its
investment in Hecla Mining Company for gross proceeds of $177 million.
· With the existing cash on hand coupled with the fully undrawn $2
billion revolving credit facility, the Company believes it is well positioned
to fund all outstanding commitments and known contingencies as well as
providing flexibility to acquire additional accretive mineral stream
interests.
Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD
Pillar Two model rules ("Pillar Two"), under which large multinational
entities will be subject to a 15% GMT. On June 20, 2024, Canada's Global
Minimum Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD
Pillar Two model rules where in scope companies will be subject to a 15% GMT
for fiscal years commencing on or after December 31, 2023. With the enactment
of the GMTA on June 20, 2024, the income of the Company's subsidiaries which
operate in jurisdictions with a statutory tax rate of 0% is impacted by the
GMTA and an amount of $51 million current tax expense associated with GMT was
recorded for the period from January 1, 2024 to June 30, 2024. GMT accrued to
December 31, 2024, is payable on or before June 30, 2026 (18 months following
year-end).
Second Quarter Operating Asset Highlights
Salobo: In the second quarter of 2024, Salobo produced 63,200 ounces of
attributable gold, an increase of approximately 15% relative to the second
quarter of 2023, driven by higher throughput, with production from the third
concentrator line commencing at the end of 2022. On April 24, 2024, Vale S.A.
("Vale") reported the continued ramp-up at Salobo III, which reached 90%
average throughput in the first quarter, as well as improved year over year
operational performance at Salobo I and II. On July 25, 2024, Vale also
reported that the Salobo III processing plant operations resumed in July,
after being halted for 31 days due to a fire on a conveyor belt. Vale
confirmed that 2024 copper production guidance of 320-355 kt has been
maintained.
Peñasquito: In the second quarter of 2024, Peñasquito produced 2.3 million
ounces of attributable silver, an increase of approximately 30% relative to
the second quarter of 2023 primarily due to higher throughput, partially
offset by lower grades.
Constancia: In the second quarter of 2024, Constancia produced 0.5 million
ounces of attributable silver and 6,100 ounces of attributable gold, an
increase of approximately 7% for silver production and a decrease of
approximately 18% for gold production relative to the second quarter of 2023.
The decrease in gold production was primarily the result of lower gold grades
due largely to the planned stripping activity in the Pampacancha pit, which
commenced in the second quarter and is expected to continue through the third
quarter. As a result of the stripping activity, ore feed was supplemented with
stockpiles during the second quarter, as per the original mine plan. Mill ore
feed has now reverted to the typical blend of approximately one-third from
Pampacancha and two-thirds from Constancia, which is expected to continue
throughout 2024. The increase in silver production is primarily due to higher
throughput and grades, partially offset by lower recoveries.
Stillwater: In the second quarter of 2024, the Stillwater mines produced 2,100
ounces of attributable gold and 4,300 ounces of attributable palladium, an
increase of approximately 4% for gold and 12% for palladium relative to the
second quarter of 2023, due primarily to higher throughput and grades.
Voisey's Bay: In the second quarter of 2024, the Voisey's Bay mine produced
259,000 pounds of attributable cobalt, an increase of approximately 71%
relative to the second quarter of 2023, as the transitional period between the
depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's
Bay underground mine nears completion. Vale reports that physical completion
of the Voisey's Bay underground mine extension was 96% at the end of the
second quarter, and that the main surface assets are completed and in
operation. In the underground portion, Reid Brook activities are largely
complete, with the powerhouse planned to be fully commissioned and linked to
the grid by Q3 2024. The mine development at Eastern Deeps is now concluded,
and construction of the bulk material handling system, dewatering and support
facilities is ongoing. The full mine assets at Eastern Deeps are expected to
be in operation by the end of 2024.
Other Gold: In the second quarter of 2024, total Other Gold attributable
production was 600 ounces, a decrease of approximately 70% relative to the
second quarter of 2023, primarily due to the closure of the Minto mine in May
2023.
Other Silver: In the second quarter of 2024, total Other Silver attributable
production was 1.4 million ounces, an increase of approximately 5% relative to
the second quarter of 2023. The increase from the comparable period of the
prior year is primarily due to an 87% increase in production at Zinkgruvan as
a result of higher throughput and grades, largely offset by the cessation of
attributable ore mined at Aljustrel.
Detailed mine-by-mine production and sales figures can be found in the
Appendix to this press release and in Wheaton's consolidated MD&A in the
'Results of Operations and Operational Review' section.
Recent Development Asset Updates
Blackwater Project: On July 30, 2024, Artemis Gold Inc. ("Artemis") announced
that overall construction was approximately 87% complete and that construction
of the water management pond, excavation of the cutoff trench, and the
earthworks and lining of the central water management pond were completed.
Work on the tailings storage facility continues to progress well with
increased productivity and material movements through the quarter. Equipment
installation was a key focus area as well as installation of structural steel,
conveyors, platework, pipework, and electrical infrastructure. Early
pre-commissioning activities in the crushing area of the process facility are
underway. Artemis also stated that the project remains on schedule for first
gold pour in Q4 2024.
On July 22, 2024, Artemis announced that it had responded to a wildfire
evacuation order by proactively removing all non-essential staff and
contractors as of July 21, 2024. On July 26, 2024, Artemis announced the
evacuation order has been lifted and began an expedient, staged return of
employees and contractors to site. The mine site was not impacted by any
wildfires.
Platreef Project: On July 31, 2024, Ivanhoe Mines Ltd. ("Ivanhoe") reported
that construction of Platreef's Phase 1 concentrator was completed on schedule
subsequent to the quarter. Cold commissioning has started, with water being
fed through the concentrator, and construction of Platreef's Shaft 2 headgear
is approximately 60% complete. Work is well underway on the updated
feasibility study to accelerate Platreef's Phase 2 expansion, as well as the
preliminary economic assessment of the previously announced Phase 3 expansion.
Both studies are expected to be completed in the fourth quarter. A Phase 3
expansion to 10 Mtpa processing capacity is expected to rank Platreef as one
of the world's largest platinum-group metal, nickel, copper and gold
producers.
Goose Project: On May 7, 2024, B2Gold Corp. ("B2Gold") announced the
successful completion of the 2024 winter ice road ("WIR") campaign, delivering
all necessary materials to complete the construction of the Goose project.
B2Gold reports that while mill construction remains on schedule, development
of the open pit and underground is slightly behind schedule due to equipment
availability, adverse weather conditions and prioritization of critical path
construction activities. As a result, B2Gold reports that first gold pour is
now expected in the second quarter of 2025 with ramp up to full production in
the third quarter of 2025, one quarter later than previous estimates.
Marmato Mine: On April 15, 2024, Aris Mining Corporation ("Aris") provided an
update on the Marmato Lower Mine expansion project, including the completion
of the access road to the new processing facility area. Earthworks in the
plant area will reportedly commence soon, and the contractor for the new
portal and decline is fully mobilized and cutting of the portal face has
commenced. On May 14, 2024, Aris reported that most of the mechanical
equipment has been ordered and the access road has reached the portal level.
On July 16, 2024, Aris further reported that the Lower Mine project is on
track for first gold pour by the end of 2025, followed by an approximate
six-month ramp-up period.
Curipamba Project: On June 17, 2024, Adventus Mining Corporation ("Adventus")
announced that the Ministry of Environment, Water and Energy Transition of the
Government of Ecuador has granted Administrative Authorization over Public
Hydric Domain for the Curipamba project. This key permit allows the Curipamba
project to carry out planned construction activities in accordance with the
technical requirements stipulated in the Water Resources Law. With this
approval, Adventus noted that the last main step prior to the start of
construction is the receipt of the final document outlining the transition
from the medium scale exploration to exploitation phase.
On April 26, 2024, Adventus announced that Silvercorp Metals Inc.
("Silvercorp") has entered into a definitive arrangement agreement with
Adventus pursuant to which Silvercorp has agreed to acquire all of the issued
and outstanding common shares of Adventus. As reported by Silvercorp, the
existing stream with Wheaton, combined with Silvercorp's existing cash and
cash equivalents of approximately $200 million, is more than sufficient to
fully fund the Curipamba project through construction. On July 2, 2024, the
Ontario Superior Court of Justice granted a final order approving the
arrangement. The acquisition closed on July 31, 2024.
On August 6, 2024, Silvercorp announced a key milestone that the Ministry of
Energy and Mines of the Government of Ecuador ("MEM") has issued a Resolution
of Change of Phase for the Curipamba project. The Resolution of Change of
Phase advances the legal status of the project from the economic evaluation
phase to the exploitation phase and allows for the start of construction and
subsequent operation of the mine. The Change of Phase for a medium-scale
project is equivalent to the Exploitation Agreement for large-scale mines in
Ecuador.
Marathon Project: On July 31, 2024, Generation Mining Limited ("Gen Mining")
reported that the federal government has approved amendments to Schedule 2 of
the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will
allow for the construction of specific water management structures and
operation of key infrastructure for the Marathon Project. Gen Mining also
states that receipt of the few remaining provincial and federal approvals and
permits required for construction is expected in the coming months.
On August 7, 2024, Gen Mining announced a key milestone with the receipt of
the Fisheries Act Authorization ("FAA") for the Marathon project. The FAA,
issued by Fisheries and Oceans Canada, approves Gen Mining's plan to avoid,
mitigate and offset impacts to fish and fish habitat related to the
development of the project. This authorization represents the final federal
approval required to commence construction of the tailings storage facility
and water management structures. The Marathon project requires three remaining
provincial approvals to be issued by the Ministry of the Environment,
Conservation and Parks and the Ministry of Natural Resources. These are
expected in the coming months. Following which, the Marathon project will have
all of the key government permits and approvals required for construction.
Santo Domingo: On July 31, 2024, Capstone Copper Corp. ("Capstone") published
the results of an updated feasibility study for the Santo Domingo project,
outlining an optimized mine plan, updated capital and operating cost
estimates, and a 19-year mine life supported by higher mineral reserve
estimates. The report indicates that total gold production is expected to
average 35,000 ounces per year for the first seven years of production, an
increase from the 30,000 ounces per year estimate outlined in the 2020
feasibility study, and 22,000 ounces per year for the life of mine, up from
17,000 ounces per year. Capstone has reported that with construction completed
at the Mantoverde project, a deposit situated 35 kilometers northeast of the
Santo Domingo project, Capstone plans to advance several value enhancement
initiatives within the Mantoverde-Santo Domingo district that are not yet
included in the 2024 feasibility study. The first of these initiatives is a
newly announced two-year, $25 million exploration program at Mantoverde, aimed
at supporting the two future processing centers between Mantoverde and Santo
Domingo.
Curraghinalt Project: On May 3, 2024, the Planning Appeals Commission &
Water Appeals Commission (the "Commission") in Northern Ireland concluded that
the water abstraction and impoundment licenses ("Water Licenses") relative to
the Curraghinalt Project have been rescinded and that license applications
would need to be resubmitted and subsequent public inquiry referrals held. The
Commission noted that it has suspended arrangements for the current inquiry
timetable until it is in receipt of the expected Water License applications,
at which time it will move to set directions and new dates for the submission
of statements of case, rebuttals, and for the opening of the re-scheduled
hearing sessions in due course.
Sustainability
Annual Sustainability Report & Climate Change Report
Wheaton published its fifth annual sustainability report on May 23, 2024, and
its second annual climate change report on June 24, 2024. The reports are part
of Wheaton's voluntary suite of sustainability disclosures demonstrating the
Company's commitment to responsible business practices and ESG performance.
ESG Ratings & Awards
On June 26, 2024, Wheaton was named as one of Corporate Knights' 2024 Best 50
Corporate Citizens in Canada ranking ninth on the list. With a significant
portion of the score linked to sustainable revenue, this metric underscores
the exceptional quality of Wheaton's mining partners and the Company's
rigorous due diligence process.
Community Investment Program
· Wheaton's Partner Community Investment Program continues to support
initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina,
Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the
communities influenced by the mines and provide vital services and programs
including educational resources, health and dental programs, poverty reduction
initiatives, entrepreneurial opportunities, and various social and
environmental programs.
· Coast Mental Health Foundation's Courage To Come Back Awards presented
by Wheaton raised over CA$1.7 million in support of community-based services
for people living with mental illness in British Columbia.
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000
to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000
to 15,000 GEOs(3) of other metals, resulting in annual production of
approximately 550,000 to 620,000 GEOs(3), unchanged from previous
guidance(2,3).
Annual production is forecast to increase by approximately 40% to over 800,000
GEOs(3) by 2028, with average annual production forecast to grow to over
850,000 GEO(3) in years 2029 to 2033, also unchanged from previous
guidance(6).
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company with the
highest-quality portfolio of long-life, low-cost assets. Its business model
offers investors commodity price leverage and exploration upside but with a
much lower risk profile than a traditional mining company. Wheaton delivers
amongst the highest cash operating margins in the mining industry, allowing it
to pay a competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed gold and
silver, as well as other mining investments. Wheaton is committed to strong
ESG practices and giving back to the communities where Wheaton and its mining
partners operate. Wheaton creates sustainable value through streaming for all
of its stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious
Metals", "Wheaton" or the "Company") MD&A and Financial Statements,
reference to the Company and Wheaton includes the Company's wholly owned
subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Thursday, August 8, 2024, starting at 5:00am
PT (8:00 am ET) to discuss these results. To participate in the live call
please use one of the following methods:
RapidConnect
URL:
Click here (https://emportal.ink/3UoHDYw)
Live
webcast:
Click here (https://app.webinar.net/80951D3eoar)
Dial toll
free:
1-888-664-6383 or 1-416-764-8650
Conference Call
ID:
94107872
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until August 15, 2024 at
11:59 pm ET. The webcast will be available for one year. You can listen to an
archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-390-0541
Dial from outside Canada or the US: 1-416-764-8677
Pass
code:
107872 #
Archived
webcast:
Click here (https://app.webinar.net/80951D3eoar)
This earnings release should be read in conjunction with Wheaton Precious
Metals' MD&A and Financial Statements, which are available on the
Company's website at www.wheatonpm.com and have been posted on SEDAR+ at
www.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo.,
Vice President, Technical Services for Wheaton Precious Metals and Ryan
Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such
term is defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns has
reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant differences
between its corporate governance practices and those required to be followed
by United States domestic issuers under the NYSE listing standards. This
confirmation is located on the Wheaton Precious Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
(http://www.wheatonpm.com/Company/corporate-governance/default.aspx)
(http://www.silverwheaton.com/company/corporate-governance/default.aspx) .
For further information:
Investor Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Media Contact
Simona Antolak
Vice President, Communications & Corporate Affairs
Tel: 604-639-9870
Email: simona.antolak@wheatonpm.com
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Six Months Ended
June 30
June 30
(US dollars and shares in thousands, except per share amounts - unaudited) 2024 2023 2024 2023
Sales $ 299,064 $ 264,972 $ 595,870 $ 479,437
Cost of sales
Cost of sales, excluding depletion $ 54,007 $ 58,642 $ 115,562 $ 110,606
Depletion 58,865 54,474 122,541 99,473
Total cost of sales $ 112,872 $ 113,116 $ 238,103 $ 210,079
Gross margin $ 186,192 $ 151,856 $ 357,767 $ 269,358
General and administrative expenses 10,241 10,216 20,705 20,315
Share based compensation 6,241 4,484 7,522 11,881
Donations and community investments 703 1,940 2,273 3,318
Earnings from operations $ 169,007 $ 135,216 $ 327,267 $ 233,844
Gain on disposal of mineral stream interests - 5,027 - 5,027
Other income (expense) 5,122 8,692 12,317 16,254
Earnings before finance costs and income taxes $ 174,129 $ 148,935 $ 339,584 $ 255,125
Finance costs 1,299 1,352 2,741 2,731
Earnings before income taxes $ 172,830 $ 147,583 $ 336,843 $ 252,394
Income tax expense (recovery) 50,513 6,135 50,485 (445)
Net earnings $ 122,317 $ 141,448 $ 286,358 $ 252,839
Basic earnings per share $ 0.270 $ 0.312 $ 0.632 $ 0.559
Diluted earnings per share $ 0.269 $ 0.312 $ 0.631 $ 0.558
Weighted average number of shares outstanding
Basic 453,430 452,892 453,262 452,633
Diluted 454,104 453,575 453,888 453,368
Condensed Interim Consolidated Balance Sheets
As at As at
June 30
December 31
(US dollars in thousands - unaudited) 2024 2023
Assets
Current assets
Cash and cash equivalents $ 540,217 $ 546,527
Accounts receivable 9,654 10,078
Cobalt inventory - 1,372
Income taxes receivable 4,544 5,935
Other 4,398 3,499
Total current assets $ 558,813 $ 567,411
Non-current assets
Mineral stream interests $ 6,487,552 $ 6,122,441
Early deposit mineral stream interests 47,094 47,093
Mineral royalty interests 35,527 13,454
Long-term equity investments 88,071 246,678
Property, plant and equipment 7,752 7,638
Other 22,273 26,470
Total non-current assets $ 6,688,269 $ 6,463,774
Total assets $ 7,247,082 $ 7,031,185
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 12,272 $ 13,458
Current portion of performance share units 8,099 12,013
Current portion of lease liabilities 435 604
Total current liabilities $ 20,806 $ 26,075
Non-current liabilities
Performance share units $ 5,660 $ 9,113
Lease liabilities 5,301 5,625
Global minimum tax 50,510 -
Deferred income taxes 250 232
Pension liability 4,883 4,624
Total non-current liabilities $ 66,604 $ 19,594
Total liabilities $ 87,410 $ 45,669
Shareholders' equity
Issued capital $ 3,796,172 $ 3,777,323
Reserves (62,186) (40,091)
Retained earnings 3,425,686 3,248,284
Total shareholders' equity $ 7,159,672 $ 6,985,516
Total liabilities and shareholders' equity $ 7,247,082 $ 7,031,185
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended
June 30
June 30
(US dollars in thousands - unaudited) 2024 2023 2024 2023
Operating activities
Net earnings $ 122,317 $ 141,448 $ 286,358 $ 252,839
Adjustments for
Depreciation and depletion 59,211 54,857 123,224 100,247
Gain on disposal of mineral stream interest - (5,027) - (5,027)
Interest expense 72 36 145 53
Equity settled stock based compensation 1,655 1,859 3,253 3,402
Performance share units - expense 4,586 2,625 4,269 8,479
Performance share units - paid - - (11,129) (16,675)
Pension expense 283 291 458 458
Pension paid - (20) (43) (116)
Income tax (recovery) expense 50,513 6,135 50,485 (445)
(Gain) loss on fair value adjustment of share purchase warrants held (197) 280 (380) 105
Investment income recognized in net earnings (4,877) (8,880) (11,315) (16,028)
Other 482 418 400 499
Change in non-cash working capital (3,664) 1,685 (1,508) (387)
Cash generated from operations before income taxes and interest $ 230,381 $ 195,707 $ 444,217 $ 327,404
Income taxes paid (75) (988) (191) (4,332)
Interest paid (73) (15) (148) (33)
Interest received 4,160 7,672 9,895 14,443
Cash generated from operating activities $ 234,393 $ 202,376 $ 453,773 $ 337,482
Financing activities
Credit facility extension fees $ (925) $ (846) $ (925) $ (846)
Share purchase options exercised 8,348 1,134 12,164 10,510
Lease payments (147) (177) (295) (379)
Dividends paid (139,124) (131,091) (139,124) (131,091)
Cash used for financing activities $ (131,848) $ (130,980) $ (128,180) $ (121,806)
Investing activities
Mineral stream interests $ (35,605) $ (88,710) $ (486,507) $ (120,234)
Early deposit mineral stream interests - - - (750)
Mineral royalty interest (10,078) - (22,025) -
Net proceeds on disposal of mineral stream interests - 46,400 - 46,400
Acquisition of long-term investments - (31) (751) (8,175)
Proceeds on disposal of long-term investments 177,088 202 177,088 202
Dividends received 481 917 1,181 917
Other (193) (1,209) (789) (1,770)
Cash (used for) generated from investing activities $ 131,693 $ (42,431) $ (331,803) $ (83,410)
Effect of exchange rate changes on cash and cash equivalents $ (130) $ 175 $ (100) $ 482
Increase (decrease) in cash and cash equivalents $ 234,108 $ 29,140 $ (6,310) $ 132,748
Cash and cash equivalents, beginning of period 306,109 799,697 546,527 696,089
Cash and cash equivalents, end of period $ 540,217 $ 828,837 $ 540,217 $ 828,837
Summary of Units Produced
Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022
Gold ounces produced ²
Salobo 63,225 61,622 71,778 69,045 54,804 43,677 37,939 44,212
Sudbury (3) 5,910 5,618 5,823 3,857 5,818 6,203 5,270 3,437
Constancia 6,086 13,897 22,292 19,003 7,444 6,905 10,496 7,196
San Dimas (4) 7,089 7,542 10,024 9,995 11,166 10,754 10,037 11,808
Stillwater (5) 2,099 2,637 2,341 2,454 2,017 1,960 2,185 1,833
Other
Marmato 584 623 668 673 639 457 533 542
Minto (6) - - - - 1,292 3,063 2,567 3,050
Total Other 584 623 668 673 1,931 3,520 3,100 3,592
Total gold ounces produced 84,993 91,939 112,926 105,027 83,180 73,019 69,027 72,078
Silver ounces produced (2)
Peñasquito (7) 2,263 2,643 1,036 - 1,744 2,076 1,761 2,017
Antamina 992 806 1,030 894 984 872 1,067 1,327
Constancia 451 640 836 697 420 552 655 564
Other
Los Filos 42 42 28 28 28 45 14 21
Zinkgruvan 699 641 510 785 374 632 664 642
Neves-Corvo 432 524 573 486 407 436 369 323
Aljustrel (8) - - - 327 279 343 313 246
Cozamin 177 173 185 165 184 141 157 179
Marmato 6 7 10 11 7 8 9 7
Yauliyacu (9) - - - - - - 261 463
Minto (6) - - - - 14 29 33 33
Total Other 1,356 1,387 1,306 1,802 1,293 1,634 1,820 1,914
Total silver ounces produced 5,062 5,476 4,208 3,393 4,441 5,134 5,303 5,822
Palladium ounces produced ²
Stillwater (5) 4,338 4,463 4,209 4,006 3,880 3,705 3,869 3,229
Cobalt pounds produced ²
Voisey's Bay 259 240 215 183 152 124 128 226
GEOs produced (10) 147,059 158,703 164,818 147,230 137,176 134,730 132,780 142,103
Average payable rate (2)
Gold 95.2% 94.7% 95.1% 95.4% 95.1% 95.1% 94.9% 95.1%
Silver 84.4% 84.5% 83.0% 78.3% 83.7% 83.1% 84.2% 86.3%
Palladium 97.3% 97.8% 98.0% 94.1% 94.1% 96.3% 93.9% 96.3%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (10) 90.9% 90.6% 91.6% 90.8% 90.8% 89.8% 89.9% 90.9%
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures and payable rates are based on information
provided by the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where other
information is not available. Certain production figures and payable rates may
be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten
gold interests.
4) Under the terms of the San Dimas PMPA, the Company is entitled to an
amount equal to 25% of the payable gold production plus an additional amount
of gold equal to 25% of the payable silver production converted to gold at a
fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the
average gold to silver price ratio decreases to less than 50:1 or increases to
more than 90:1 for a period of 6 months or more, then the "70" shall be
revised to "50" or "90", as the case may be, until such time as the average
gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or
more in which event the "70" shall be reinstated. For reference, attributable
silver production from prior periods is as follows: Q2 2024 - 285,000 ounces;
Q1 2024 - 291,000 ounces; Q4 2023 - 378,000 ounces; Q3 2023 - 387,000 ounces;
Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces;
Q3 2022 - 412,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) On May 13, 2023, Minto Metals Corp. announced the suspension of
operations at the Minto mine.
7) There was a temporary suspension of operations at Peñasquito due to a
labour strike which ran from June 7, 2023 to October 13, 2023.
8) On September 12, 2023, it was announced that the production of the zinc
and lead concentrates at the Aljustrel mine will be halted from September 24,
2023 until the second quarter of 2025.
9) On December 14, 2022 the Company terminated the Yauliyacu PMPA in
exchange for a cash payment of $132 million.
10) GEOs, which are provided to assist the
reader, are based on the following commodity price assumptions: $2,000 per
ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00
per pound cobalt; consistent with those used in estimating the Company's
production guidance for 2024.
Summary of Units Sold
Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022
Gold ounces sold
Salobo 54,962 56,841 76,656 44,444 46,030 35,966 41,029 31,818
Sudbury (2) 5,679 4,129 5,011 4,836 4,775 4,368 4,988 5,147
Constancia 6,640 20,123 19,925 12,399 9,619 6,579 6,013 6,336
San Dimas 6,801 7,933 10,472 9,695 11,354 10,651 10,943 10,196
Stillwater (3) 2,628 2,355 2,314 1,985 2,195 2,094 1,783 2,127
Other
Marmato 616 638 633 792 467 480 473 719
777 - - - 275 153 126 785 3,098
Minto - - - - 701 2,341 2,982 2,559
Total Other 616 638 633 1,067 1,321 2,947 4,240 6,376
Total gold ounces sold 77,326 92,019 115,011 74,426 75,294 62,605 68,996 62,000
Silver ounces sold
Peñasquito 1,482 1,839 442 453 1,913 1,483 2,066 1,599
Antamina 917 762 1,091 794 963 814 1,114 1,155
Constancia 422 726 665 435 674 366 403 498
Other
Los Filos 24 44 24 30 37 34 16 24
Zinkgruvan 597 297 449 714 370 520 547 376
Neves-Corvo 216 243 268 245 132 171 80 105
Aljustrel - 1 86 142 182 205 156 185
Cozamin 158 147 141 139 150 119 150 154
Marmato 7 8 9 11 7 7 7 8
Yauliyacu - - - - - - 337 1,005
Minto - - - - 7 29 23 22
Keno Hill - - - - - 1 1 30
777 - - - 2 2 - 35 73
Total Other 1,002 740 977 1,283 887 1,086 1,352 1,982
Total silver ounces sold 3,823 4,067 3,175 2,965 4,437 3,749 4,935 5,234
Palladium ounces sold
Stillwater (3) 4,301 4,774 3,339 4,242 3,392 2,946 3,396 4,227
Cobalt pounds sold
Voisey's Bay 88 309 288 198 265 323 187 115
GEOs sold (4) 124,009 143,184 155,059 111,935 129,734 109,293 128,662 125,053
Cumulative payable units PBND (5)
Gold ounces 89,667 86,114 91,092 98,715 72,916 77,377 70,562 74,053
Silver ounces 2,795 2,347 1,787 1,469 1,777 2,531 2,013 2,481
Palladium ounces 6,018 6,198 6,666 5,607 6,122 5,751 5,098 5,041
Cobalt pounds 513 360 356 377 251 285 258 403
GEO (4) 128,156 118,541 117,294 120,865 98,041 111,217 97,936 107,720
Inventory on hand
Cobalt pounds - - 88 155 310 398 633 556
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended June 30, 2024
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 63,225 54,962 $ 2,356 $ 425 $ 378 $ 129,466 $ 85,346 $ 105,795 $ 2,638,316
Sudbury (4) 5,910 5,679 2,357 400 1,326 13,383 3,581 11,106 250,227
Constancia 6,086 6,640 2,356 420 323 15,640 10,706 12,849 71,769
San Dimas 7,089 6,801 2,356 635 290 16,021 9,730 11,701 140,542
Stillwater 2,099 2,628 2,356 415 421 6,190 3,994 5,100 209,162
Other (5) 584 616 2,356 415 527 1,450 870 1,195 903,067
84,993 77,326 $ 2,356 $ 441 $ 438 $ 182,150 $ 114,227 $ 147,746 $ 4,213,083
Silver
Peñasquito 2,263 1,482 $ 28.75 $ 4.50 $ 4.86 $ 42,599 $ 28,735 $ 35,932 $ 261,561
Antamina 992 917 28.75 5.75 8.46 26,365 13,337 21,095 506,396
Constancia 451 422 28.75 6.20 6.10 12,122 6,934 9,508 172,475
Other (6) 1,356 1,002 30.14 4.35 4.50 30,205 21,336 21,614 624,616
5,062 3,823 $ 29.11 $ 4.95 $ 5.76 $ 111,291 $ 70,342 $ 88,149 $ 1,565,048
Palladium
Stillwater 4,338 4,301 $ 979 $ 175 $ 429 $ 4,210 $ 1,611 $ 3,457 $ 216,696
Platreef - - n.a. n.a. n.a. - - - 78,815
4,338 4,301 $ 979 $ 175 $ 429 $ 4,210 $ 1,611 $ 3,457 $ 295,511
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - 57,585
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,036
Cobalt
Voisey's Bay 259 88 $ 16.02 $ 3.11 $ 12.78 $ 1,413 $ 12 $ 2,081 $ 346,874
Operating results $ 299,064 $ 186,192 $ 241,433 $ 6,487,552
Other
General and administrative $ (10,241) $ (8,962)
Share based compensation (6,241) -
Donations and community investments (703) (614)
Finance costs (1,299) (1,057)
Other 5,122 3,668
Income tax (50,513) (75)
Total other $ (63,875) $ (7,040) $ 759,530
$ 122,317 $ 234,393 $ 7,247,082
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Minto, Copper World, Santo Domingo, Fenix,
Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and
Kudz Ze Kayah gold interests.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the
non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World, Navidad,
Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests.
On a gold equivalent basis, results for the Company for the three months ended
June 30, 2024 were as follows:
Three Months Ended June 30, 2024
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) 147,059 124,009 $ 2,412 $ 436 $ 1,976 $ 475 $ 1,501
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Three Months Ended June 30, 2023
Units Produced² Units Average Average Average Sales Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 54,804 46,030 $ 1,985 $ 420 $ 330 $ 91,350 $ - $ 56,790 $ 71,999 $ 2,356,169
Sudbury (5) 5,818 4,775 2,000 400 1,025 9,549 - 2,747 7,579 274,048
Constancia 7,444 9,619 1,985 416 316 19,090 - 12,049 15,085 90,469
San Dimas 11,166 11,354 1,985 628 260 22,532 - 12,454 15,401 150,154
Stillwater 2,017 2,195 1,985 357 510 4,356 - 2,451 3,571 213,663
Other (6) 1,931 1,321 1,994 1,131 186 2,634 - 894 1,252 537,197
83,180 75,294 $ 1,986 $ 461 $ 365 $ 149,511 $ - $ 87,385 $ 114,887 $ 3,621,700
Silver
Peñasquito 1,744 1,913 $ 24.20 $ 4.43 $ 4.06 $ 46,291 $ - $ 30,041 $ 37,816 $ 279,872
Antamina 984 963 24.20 4.70 7.06 23,302 - 11,985 18,780 532,828
Constancia 420 674 24.20 6.14 6.24 16,322 - 7,968 12,180 186,452
Other (7) 1,293 887 23.88 5.75 3.46 21,166 5,027 18,031 15,878 482,572
4,441 4,437 $ 24.13 $ 5.01 $ 4.92 $ 107,081 $ 5,027 $ 68,025 $ 84,654 $ 1,481,724
Palladium
Stillwater 3,880 3,392 $ 1,438 $ 261 $ 445 $ 4,879 $ - $ 2,482 $ 3,993 $ 224,099
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,448
Cobalt
Voisey's Bay 152 265 $ 13.23 $ 3.20 ⁸ $ 13.85 $ 3,501 $ - $ (1,009) $ 4,335 $ 354,195
Operating results $ 264,972 $ 5,027 $ 156,883 $ 207,869 $ 5,691,166
Other
General and administrative $ (10,216) $ (9,544)
Share based compensation (4,484) -
Donations and community investments (1,940) (1,738)
Finance costs (1,352) (999)
Other 8,692 7,776
Income tax (6,135) (988)
Total other $ (15,435) $ (5,493) $ 1,188,739
$ 141,448 $ 202,376 $ 6,879,905
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) The gain on disposal of Other silver interests relates to the gain on
the buyback of 33% of the Goose PMPA..
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Other gold interests are comprised of the operating Marmato gold
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On May 13, 2023, Minto
announced the suspension of operations at the Minto mine.
7) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests, the
non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On May 13, 2023, Minto announced the suspension of operations
at the Minto mine. On September 12, 2023, it was announced that the production
of zinc and lead concentrates at Aljustrel will be halted from September 24,
2023 until the second quarter of 2025.
8) Cash cost per pound of cobalt sold during the second quarter of 2023
was net of a previously recorded inventory write-down of $0.5 million,
resulting in a decrease of $1.81 per pound of cobalt sold.
On a gold equivalent basis, results for the Company for the three months ended
June 30, 2023 were as follows:
Three Months Ended June 30, 2023
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 137,176 129,734 $ 2,042 $ 452 $ 1,590 $ 420 $ 1,170
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Six Months Ended June 30, 2024
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 124,847 111,803 $ 2,212 $ 425 $ 386 $ 247,317 $ 156,742 $ 199,845 $ 2,638,316
Sudbury (4) 11,528 9,808 2,227 400 1,250 21,844 5,663 17,920 250,227
Constancia 19,983 26,763 2,143 420 317 57,363 37,616 46,112 71,769
San Dimas 14,631 14,734 2,204 633 284 32,469 18,967 23,147 140,542
Stillwater 4,736 4,983 2,222 394 463 11,073 6,801 9,108 209,162
Other (5) 1,207 1,254 2,212 394 527 2,773 1,618 2,279 903,067
176,932 169,345 $ 2,202 $ 440 $ 419 $ 372,839 $ 227,407 $ 298,411 $ 4,213,083
Silver
Peñasquito 4,906 3,321 $ 25.97 $ 4.50 $ 4.42 $ 86,249 $ 56,636 $ 71,307 $ 261,561
Antamina 1,798 1,679 26.48 5.26 7.82 44,453 22,484 35,618 506,396
Constancia 1,091 1,148 25.58 6.20 6.19 29,358 15,134 22,242 172,475
Other (6) 2,743 1,742 27.48 4.27 4.35 47,889 32,873 37,433 624,616
10,538 7,890 $ 26.36 $ 4.86 $ 5.39 $ 207,949 $ 127,127 $ 166,600 $ 1,565,048
Palladium
Stillwater 8,801 9,075 $ 979 $ 179 $ 438 $ 8,887 $ 3,294 $ 7,265 $ 216,696
Platreef - - n.a. $ n.a. $ n.a. - - - 78,815
8,801 9,075 $ 979 $ 179 $ 438 $ 8,887 $ 3,294 $ 7,265 $ 295,511
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Platreef - - n.a. $ n.a. $ n.a. - - - 57,585
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 67,036
Cobalt
Voisey's Bay 499 397 $ 15.61 $ 2.99 ⁸ $ 12.77 $ 6,195 $ (61) $ 9,087 $ 346,874
Operating results $ 595,870 $ 357,767 $ 481,363 $ 6,487,552
Other
General and administrative $ (20,705) $ (24,920)
Share based compensation (7,522) (11,129)
Donations and community investments (2,273) (1,988)
Finance costs (2,741) (2,182)
Other 12,317 12,820
Income tax (50,485) (191)
Total other $ (71,409) $ (27,590) $ 759,530
$ 286,358 $ 453,773 $ 7,247,082
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Minto, Copper World, Santo Domingo, Fenix,
Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and
Kudz Ze Kayah gold interests.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the
non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World, Navidad,
Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests..
On a gold equivalent basis, results for the Company for the six months ended
June 30, 2024 were as follows:
Six Months Ended June 30, 2024
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) 305,761 267,193 $ 2,230 $ 433 $ 1,797 $ 459 $ 1,338
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: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Six Months Ended June 30, 2023
Units Produced² Units Average Average Average Sales Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 98,481 81,996 $ 1,949 $ 420 $ 330 $ 159,825 $ - $ 98,261 $ 125,353 $ 2,356,169
Sudbury (5) 12,021 9,143 1,954 400 1,025 17,866 - 4,841 13,925 274,048
Constancia 14,349 16,198 1,952 416 316 31,615 - 19,759 24,873 90,469
San Dimas 21,920 22,005 1,946 626 260 42,812 - 23,319 29,030 150,154
Stillwater 3,977 4,289 1,945 346 510 8,343 - 4,671 6,860 213,663
Other (6) 5,451 4,268 1,932 1,306 117 8,247 - 2,173 2,407 537,197
156,199 137,899 $ 1,949 $ 477 $ 362 $ 268,708 $ - $ 153,024 $ 202,448 $ 3,621,700
Silver
Peñasquito 3,820 3,396 $ 23.61 $ 4.43 $ 4.06 $ 80,162 $ - $ 51,317 $ 65,119 $ 279,872
Antamina 1,856 1,777 23.58 4.63 7.06 41,897 - 21,128 33,668 532,828
Constancia 972 1,040 23.72 6.14 6.24 24,674 - 11,792 18,288 186,452
Other (7) 2,927 1,973 23.33 5.86 2.95 46,025 5,027 33,668 35,925 482,572
9,575 8,186 $ 23.55 $ 5.04 $ 4.72 $ 192,758 $ 5,027 $ 117,905 $ 153,000 $ 1,481,724
Palladium
Stillwater 7,585 6,338 $ 1,517 $ 277 $ 428 $ 9,614 $ - $ 5,149 $ 7,862 $ 224,099
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,448
Cobalt
Voisey's Bay 276 588 $ 14.22 $ 3.25 ⁸ $ 13.85 $ 8,357 $ - $ (1,693) $ 8,820 $ 354,195
Operating results $ 479,437 $ 5,027 $ 274,385 $ 372,130 $ 5,691,166
Other
General and administrative $ (20,315) $ (23,384)
Share based compensation (11,881) (16,675)
Donations and community investments (3,318) (3,146)
Finance costs (2,731) (2,066)
Other 16,254 14,955
Income tax 445 (4,332)
Total other $ (21,546) $ (34,648) $ 1,188,739
$ 252,839 $ 337,482 $ 6,879,905
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represents the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) The gain on disposal of Other silver interests relates to the gain on
the buyback of 33% of the Goose PMPA..
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Other gold interests are comprised of the operating Marmato gold
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On May 13, 2023, Minto
announced the suspension of operations at the Minto mine.
7) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and
the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure activities
have commenced. On May 13, 2023, Minto announced the suspension of operations
at the Minto mine. On September 12, 2023, it was announced that the production
of zinc and lead concentrates at Aljustrel will be halted from September 24,
2023 until the second quarter of 2025.
8) Cash cost per pound of cobalt sold during the six months ended June 30,
2023 was net of a previously recorded inventory write-down of $1.5 million,
resulting in a decrease of $2.57 per pound of cobalt sold.
On a gold equivalent basis, results for the Company for the six months ended
June 30, 2023 were as follows:
Six Months Ended June 30, 2023
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1)
Sold
Realized
Cash Cost
($'s Per Ounce) (3)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (2)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (4) 271,906 239,027 $ 2,006 $ 463 $ 1,543 $ 416 $ 1,127
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, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance
measures, including (i) adjusted net earnings and adjusted net earnings per
share; (ii) operating cash flow per share (basic and diluted); (iii) average
cash costs of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis; and (iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other one-time
(income) expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery) recognized in the
Statements of Shareholders' Equity and OCI, respectively. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS,
management and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net earnings and
adjusted net earnings per share (basic and diluted).
Three Months Ended Six Months Ended
June 30
June 30
(in thousands, except for per share amounts) 2024 2023 2024 2023
Net earnings $ 122,317 $ 141,448 $ 286,358 $ 252,839
Add back (deduct):
Gain on disposal of Mineral Stream Interest - (5,027) - (5,027)
(Gain) loss on fair value adjustment of share purchase warrants held (197) 280 (380) 105
Deferred income tax (expense) recovery recognized in the Statement of OCI 2,863 6,044 2,766 2,090
Income tax recovery related to prior year disposal of Mineral Stream Interest - - - (2,672)
Global minimum tax expense related to Q1-2024 earnings 24,755 - - -
Other (173) (161) (346) (320)
Adjusted net earnings $ 149,565 $ 142,584 $ 288,398 $ 247,015
Divided by:
Basic weighted average number of shares outstanding 453,430 452,892 453,262 452,633
Diluted weighted average number of shares outstanding 454,104 453,575 453,888 453,368
Equals:
Adjusted earnings per share - basic $ 0.330 $ 0.315 $ 0.636 $ 0.546
Adjusted earnings per share - diluted $ 0.329 $ 0.314 $ 0.635 $ 0.545
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 Six Months Ended
June 30
June 30
(in thousands, except for per share amounts) 2024 2023 2024 2023
Cash generated by operating activities $ 234,393 $ 202,376 $ 453,773 $ 337,482
Divided by:
Basic weighted average number of shares outstanding 453,430 452,892 453,262 452,633
Diluted weighted average number of shares outstanding 454,104 453,575 453,888 453,368
Equals:
Operating cash flow per share - basic $ 0.517 $ 0.447 $ 1.001 $ 0.746
Operating cash flow per share - diluted $ 0.516 $ 0.446 $ 1.000 $ 0.744
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 Six Months Ended
June 30
June 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Cost of sales $ 112,872 $ 113,116 $ 238,103 $ 210,079
Less: depletion (58,865) (54,474) (122,541) (99,473)
Cash cost of sales $ 54,007 $ 58,642 $ 115,562 $ 110,606
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 34,066 $ 34,675 $ 74,427 $ 65,711
Total cash cost of silver sold 18,914 22,234 38,326 41,231
Total cash cost of palladium sold 753 887 1,622 1,752
Total cash cost of cobalt sold¹ 274 846 1,187 1,912
Total cash cost of sales $ 54,007 $ 58,642 $ 115,562 $ 110,606
Divided by:
Total gold ounces sold 77,326 75,294 169,345 137,899
Total silver ounces sold 3,823 4,437 7,890 8,186
Total palladium ounces sold 4,301 3,392 9,075 6,338
Total cobalt pounds sold 88 265 397 588
Equals:
Average cash cost of gold (per ounce) $ 441 $ 461 $ 440 $ 477
Average cash cost of silver (per ounce) $ 4.95 $ 5.01 $ 4.86 $ 5.04
Average cash cost of palladium (per ounce) $ 175 $ 261 $ 179 $ 277
Average cash cost of cobalt (per pound) $ 3.11 $ 3.20 $ 2.99 $ 3.25
1) Cash cost per pound of cobalt sold during the second
quarter of 2023 was net of a previously recorded inventory write-down of $0.5
million (six months - $1.5 million), resulting in a decrease of $1.81 per
pound of cobalt sold (six months - $2.57 per pound of cobalt sold).
iv. Cash operating margin is calculated by adding back depletion to the
gross margin. Cash operating margin on a per ounce or per pound basis is
calculated by dividing the cash operating margin by the number of ounces or
pounds sold during the period. The Company presents cash operating margin as
management and certain investors use this information to evaluate the
Company's performance in comparison to other companies in the precious metal
mining industry who present results on a similar basis as well as to evaluate
the Company's ability to generate cash flow.
The following table provides a reconciliation of cash operating margin.
Three Months Ended Six Months Ended
June 30
June 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Gross margin $ 186,192 $ 151,856 $ 357,767 $ 269,358
Add back: depletion 58,865 54,474 122,541 99,473
Cash operating margin $ 245,057 $ 206,330 $ 480,308 $ 368,831
Cash operating margin is comprised of:
Total cash operating margin of gold sold $ 148,084 $ 114,836 $ 298,412 $ 202,997
Total cash operating margin of silver sold 92,377 84,847 169,623 151,527
Total cash operating margin of palladium sold 3,457 3,992 7,265 7,862
Total cash operating margin of cobalt sold 1,139 2,655 5,008 6,445
Total cash operating margin $ 245,057 $ 206,330 $ 480,308 $ 368,831
Divided by:
Total gold ounces sold 77,326 75,294 169,345 137,899
Total silver ounces sold 3,823 4,437 7,890 8,186
Total palladium ounces sold 4,301 3,392 9,075 6,338
Total cobalt pounds sold 88 265 397 588
Equals:
Cash operating margin per gold ounce sold $ 1,915 $ 1,525 $ 1,762 $ 1,472
Cash operating margin per silver ounce sold $ 24.16 $ 19.12 $ 21.50 $ 18.51
Cash operating margin per palladium ounce sold $ 804 $ 1,177 $ 800 $ 1,240
Cash operating margin per cobalt pound sold $ 12.94 $ 10.03 $ 12.62 $ 10.97
These non-IFRS measures do not have any standardized meaning prescribed by
IFRS, and other companies may calculate these measures differently. The
presentation of these non-IFRS measures is intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the Company's
website at www.wheatonpm.com and posted on SEDAR+ at www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's PMPA counterparties. Forward-looking statements,
which are all statements other than statements of historical fact, include,
but are not limited to, statements with respect to:
· the future price of commodities;
· the estimation of future production from the mineral stream
interests and mineral royalty interests currently owned by the Company (the
"Mining Operations") (including in the estimation of production, mill
throughput, grades, recoveries and exploration potential);
· the estimation of mineral reserves and mineral resources
(including the estimation of reserve conversion rates and the realization of
such estimations);
· the commencement, timing and achievement of construction,
expansion or improvement projects by Wheaton's PMPA counterparties at Mining
Operations;
· the payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance with PMPAs
and the receipt by the Company of precious metals and cobalt production or
other payments in respect of the applicable Mining Operations under PMPAs;
· the ability of Wheaton's PMPA counterparties to comply with the
terms of a PMPA (including as a result of the business, mining operations and
performance of Wheaton's PMPA counterparties) and the potential impacts of
such on Wheaton;
· future payments by the Company in accordance with PMPAs,
including any acceleration of payments;
· the costs of future production;
· the estimation of produced but not yet delivered ounces;
· the future sales of Common Shares under, the amount of net
proceeds from, and the use of the net proceeds from, the at-the-market equity
program;
· continued listing of the Common Shares on the LSE, NYSE and TSX;
· any statements as to future dividends;
· the ability to fund outstanding commitments and the ability to
continue to acquire accretive PMPAs;
· projected increases to Wheaton's production and cash flow
profile;
· projected changes to Wheaton's production mix;
· the ability of Wheaton's PMPA counterparties to comply with the
terms of any other obligations under agreements with the Company;
· the ability to sell precious metals and cobalt production;
· confidence in the Company's business structure;
· the Company's assessment of taxes payable, including taxes
payable under the GMT, and the impact of the CRA Settlement, and the Company's
ability to pay its taxes;
· possible CRA domestic audits for taxation years subsequent to
2016 and international audits;
· the Company's assessment of the impact of any tax reassessments;
· the Company's intention to file future tax returns in a manner
consistent with the CRA Settlement;
· the Company's climate change and environmental commitments; and
· assessments of the impact and resolution of various legal and
tax matters, including but not limited to audits.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "projects",
"intends", "anticipates" or "does not anticipate", or "believes", "potential",
or variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to:
· risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt production
at acceptable prices or at all);
· risks related to the Mining Operations (including fluctuations in
the price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated with
exploration, development, operating, expansion and improvement at the Mining
Operations, environmental and economic risks of the Mining Operations, and
changes in project parameters as Mining Operations plans continue to be
refined);
· absence of control over the Mining Operations and having to rely
on the accuracy of the public disclosure and other information Wheaton
receives from the owners and operators of the Mining Operations as the basis
for its analyses, forecasts and assessments relating to its own business;
· risks related to the uncertainty in the accuracy of mineral
reserve and mineral resource estimation;
· risks related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the ability of the
companies with which the Company has PMPAs to perform their obligations under
those PMPAs in the event of a material adverse effect on the results of
operations, financial condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration potential;
· risks relating to production estimates from Mining Operations,
including anticipated timing of the commencement of production by certain
Mining Operations;
· Wheaton's interpretation of, or compliance with, or application
of, tax laws and regulations or accounting policies and rules, being found to
be incorrect or the tax impact to the Company's business operations being
materially different than currently contemplated, or the ability of the
Company to pay such taxes as and when due;
· any challenge or reassessment by the CRA of the Company's tax
filings being successful and the potential negative impact to the Company's
previous and future tax filings;
· risks in assessing the impact of the CRA Settlement (including
whether there will be any material change in the Company's facts or change in
law or jurisprudence);
· risks related to any potential amendments to Canada's transfer
pricing rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6, 2023;
· risks relating to Wheaton's interpretation of, compliance with,
or application of the GMT, including Canada's GMTA and the legislation enacted
in Luxembourg, that applies to the income of the Company's subsidiaries for
fiscal years beginning on or after December 31, 2023;
· counterparty credit and liquidity risks;
· mine operator and counterparty concentration risks;
· indebtedness and guarantees risks;
· hedging risk;
· competition in the streaming industry risk;
· risks relating to security over underlying assets;
· risks relating to third-party PMPAs;
· risks relating to revenue from royalty interests;
· risks related to Wheaton's acquisition strategy;
· risks relating to third-party rights under PMPAs;
· risks relating to future financings and security issuances;
· risks relating to unknown defects and impairments;
· risks related to governmental regulations;
· risks related to international operations of Wheaton and the
Mining Operations;
· risks relating to exploration, development, operating, expansions
and improvements at the Mining Operations;
· risks related to environmental regulations;
· the ability of Wheaton and the Mining Operations to obtain and
maintain necessary licenses, permits, approvals and rulings;
· the ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting requirements;
· lack of suitable supplies, infrastructure and employees to
support the Mining Operations;
· risks related to underinsured Mining Operations;
· inability to replace and expand mineral reserves, including
anticipated timing of the commencement of production by certain Mining
Operations (including increases in production, estimated grades and
recoveries);
· uncertainties related to title and indigenous rights with respect
to the mineral properties of the Mining Operations;
· the ability of Wheaton and the Mining Operations to obtain
adequate financing;
· the ability of the Mining Operations to complete permitting,
construction, development and expansion;
· challenges related to global financial conditions;
· risks associated with environmental, social and governance
matters;
· risks related to fluctuations in commodity prices of metals
produced from the Mining Operations other than precious metals or cobalt;
· risks related to claims and legal proceedings against Wheaton or
the Mining Operations;
· risks related to the market price of the Common Shares of
Wheaton;
· the ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and experienced
personnel;
· risks related to interest rates;
· risks related to the declaration, timing and payment of
dividends;
· risks related to access to confidential information regarding
Mining Operations;
· risks associated with multiple listings of the Common Shares on
the LSE, NYSE and TSX;
· risks associated with a possible suspension of trading of Common
Shares;
· risks associated with the sale of Common Shares under the
at-the-market equity program, including the amount of any net proceeds from
such offering of Common Shares and the use of any such proceeds;
· equity price risks related to Wheaton's holding of long‑term
investments in other companies;
· risks relating to activist shareholders;
· risks relating to reputational damage;
· risks relating to expression of views by industry analysts;
· risks related to the impacts of climate change and the transition
to a low-carbon economy;
· risks associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining Operations;
· risks related to ensuring the security and safety of information
systems, including cyber security risks;
· risks relating to generative artificial intelligence;
· risks relating to compliance with anti-corruption and
anti-bribery laws;
· risks relating to corporate governance and public disclosure
compliance;
· risks of significant impacts on Wheaton or the Mining Operations
as a result of an epidemic or pandemic;
· risks related to the adequacy of internal control over financial
reporting; and
· other risks discussed in the section entitled "Description of the
Business - Risk Factors" in Wheaton's Annual Information Form available on
SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) and Wheaton's Form 40-F
for the year ended December 31, 2022 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management currently
believes to be reasonable, including (without limitation):
· that there will be no material adverse change in the market price
of commodities;
· that the Mining Operations will continue to operate and the
mining projects will be completed in accordance with public statements and
achieve their stated production estimates;
· that the mineral reserves and mineral resource estimates from
Mining Operations (including reserve conversion rates) are accurate;
· that public disclosure and other information Wheaton receives
from the owners and operators of the Mining Operations is accurate and
complete;
· that the production estimates from Mining Operations are
accurate;
· that each party will satisfy their obligations in accordance with
the PMPAs;
· that Wheaton will continue to be able to fund or obtain funding
for outstanding commitments;
· that Wheaton will be able to source and obtain accretive PMPAs;
· that the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;
· that Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;
· that expectations regarding the resolution of legal and tax
matters will be achieved (including CRA audits involving the Company);
· that Wheaton has properly considered the application of Canadian
tax laws to its structure and operations and that Wheaton will be able to pay
taxes when due;
· that Wheaton has filed its tax returns and paid applicable taxes
in compliance with Canadian tax laws;
· that Wheaton's application of the CRA Settlement is accurate
(including the Company's assessment that there has been no material change in
the Company's facts or change in law or jurisprudence);
· that Wheaton's assessment of the tax exposure and impact on the
Company and its subsidiaries of the implementation of a 15% global minimum tax
is accurate;
· that any sale of Common Shares under the at-the-market equity
program will not have a significant impact on the market price of the Common
Shares and that the net proceeds of sales of Common Shares, if any, will be
used as anticipated;
· that the trading of the Common Shares will not be adversely
affected by the differences in liquidity, settlement and clearing systems as a
result of multiple listings of the Common Shares on the LSE, the TSX and the
NYSE;
· that the trading of the Company's Common Shares will not be
suspended;
· the estimate of the recoverable amount for any PMPA with an
indicator of impairment;
· that neither Wheaton nor the Mining Operations will suffer
significant impacts as a result of an epidemic or pandemic; and
· such other assumptions and factors as set out in the Disclosure.
There can be no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the forward-looking
statements are realized or substantially realized, there can be no assurance
that they will have the expected consequences to, or effects on, Wheaton.
Readers should not place undue reliance on forward-looking statements and are
cautioned that actual outcomes may vary. The forward-looking statements
included herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and operational
performance and may not be appropriate for other purposes. Any forward-looking
statement speaks only as of the date on which it is made, reflects Wheaton's
management's current beliefs based on current information and will not be
updated except in accordance with applicable securities laws. Although Wheaton
has attempted to identify important factors that could cause actual results,
level of activity, performance or achievements to differ materially from those
contained in forward‑looking statements, there may be other factors that
cause results, level of activity, performance or achievements not to be as
anticipated, estimated or intended.
Cautionary Language Regarding Reserves and Resources
For further information on Mineral Reserves and Mineral Resources and on
Wheaton more generally, readers should refer to Wheaton's Annual Information
Form for the year ended December 31, 2023, which was filed on March 28, 2024
and other continuous disclosure documents filed by Wheaton since January 1,
2024, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and
Mineral Resources are subject to the qualifications and notes set forth
therein. Mineral Resources, which are not Mineral Reserves, do not have
demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured,
Indicated and Inferred Resources: The information contained herein has been
prepared in accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States securities
laws. The Company reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral resources in
accordance with Canadian reporting requirements which are governed by, and
utilize definitions required by, Canadian National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM
Council, as amended (the "CIM Standards"). These definitions differ from the
definitions adopted by the United States Securities and Exchange Commission
("SEC") under the United States Securities Act of 1933, as amended (the
"Securities Act") which are applicable to U.S. companies. Accordingly, there
is no assurance any mineral reserves or mineral resources that the Company may
report as "proven mineral reserves", "probable mineral reserves", "measured
mineral resources", "indicated mineral resources" and "inferred mineral
resources" under NI 43-101 would be the same had the Company prepared the
reserve or resource estimates under the standards adopted by the SEC.
Accordingly, information contained herein that describes Wheaton's mineral
deposits may not be comparable to similar information made public by U.S.
companies subject to reporting and disclosure requirements under the United
States federal securities laws and the rules and regulations thereunder.
United States investors are urged to consider closely the disclosure in
Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from
https://www.sec.gov/edgar.shtml (https://www.sec.gov/edgar.shtml) .
End Notes
1 (#_ednref1) Please refer to disclosure on non-IFRS measures in this press
release. Dividends declared in the referenced calendar quarter, relative to
the financial results of the prior quarter. Details of the dividend can be
found in the Wheaton's news release dated August 7, 2024, titled "Wheaton
Precious Metals Declares Quarterly Dividend."
2 (#_ednref2) Statements made in this section contain forward-looking
information with respect to forecast production, production growth, funding
outstanding commitments, continuing to acquire accretive mineral stream
interests and the commencement, timing and achievement of construction,
expansion or improvement projects and readers are cautioned that actual
outcomes may vary. Please see "Cautionary Note Regarding Forward-Looking
Statements" for material risks, assumptions and important disclosure
associated with this information.
(3) Gold equivalent forecast production for 2024 and the longer-term outlook
are based on the following commodity price assumptions: $2,000 per ounce gold,
$23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of platinum
and $13.00 per pound cobalt.
(4)Source: Company reports & S and P Capital IQ estimates of 2024
byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver
mines. Portfolio mine life based on recoverable reserves and resources as of
Dec 31, 2023 and 2023 actual mill throughput and is weighted by individual
reserve and resource category.
(5)Total streaming and royalty agreements relate to precious metals purchase
agreements for the purchase of precious metals and cobalt relating to 18
mining assets which are currently operating, 23 which are at various stages of
development and 4 of which have been placed in care and maintenance or have
been closed.
(6)Further details for long-term guidance can be found in the Wheaton news
release dated March 14, 2024, titled "Wheaton Precious Metals Announces Solid
2023 Annual Results and Transition to Progressive Dividend Policy"
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