REG - Wheaton Precious Met - Third Quarter Results 2022
04/11/2022 07:00
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RNS Number : 3438F Wheaton Precious Metals Corp. 04 November 2022
November 4, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
THIRD quarter 2022 financial results
Wheaton Precious Metals Maintains
Strong Cash Operating Margins in the Third Quarter of 2022
"At Wheaton, we focus on building a sustainable company that provides
investors with profitable, long-term exposure to precious metals. While
inflationary pressures have impacted all sectors of the economy, especially
mining, Wheaton has maintained cash operating margins of over 75% year to
date, highlighting the strength of our streaming business model," said Randy
Smallwood, President and Chief Executive Officer of Wheaton Precious Metals.
"Despite some recent challenges, we are pleased with the improvements we have
seen over the third quarter in our diverse portfolio of high-quality assets,
which is forecast to deliver significant organic growth over the next five
years and sustained precious metals production for decades to come. We also
are very optimistic that we can continue to add accretive new streams to the
portfolio given the number of opportunities that we are currently reviewing
coupled with one of the strongest balance sheets in the sector."
Solid Financial Results and Strong Balance Sheet
· $219 million in revenue and $154 million in operating cash flow in the
quarter
· $197 million in net earnings and $94 million in adjusted net earnings 1
in the quarter
· A cash balance of $495 million and no debt as at September 30, 2022
· Extended the maturity date of the undrawn US$2 billion revolving credit
facility to July 18, 2027
· Declared a quarterly dividend(1) of $0.15 per common share
High Quality Asset Base
· Streaming agreements on 21 operating mines and 13 development projects
· 85% of attributable production from assets in the lowest half of their
respective cost curves 2
· 29 years of mine life based on Proven and Probable Mineral Reserves and
potential additional mine life from mineral resource conversion and
exploration 3
· Average annual production for the ten-year period ending December 31,
2031, is expected to be approximately 850,000 GEOs(2)(, 4 )
· Completed the previously disclosed termination of the Keno Hill precious
metal purchase agreement ("PMPA") for $141 million, resulting in an impairment
reversal of $10 million and a gain on disposition of $104 million
· Announced the proposed termination of the Yauliyacu PMPA for $150
million, less the aggregate value of any deliveries to Wheaton of silver
produced in 2022 prior to closing
Leadership in Sustainability
· Top Rankings: #1 out of 119 precious metals companies and Global Top 50
out of over 14,900 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
extension of the revolving credit facility
· Recognized as one of the Best 50 Corporate Citizens in Canada by
Corporate Knights
· Recognized by ESG Investing for Best Climate Related Reporting (Mid Cap)
· Supported flood relief to local communities near the Stillwater mine in
Montana
· Presenting sponsor of BC Cancer Foundation's Tour de Cure supporting
cancer research
Operational Overview
(all figures in US dollars unless otherwise noted) Q3 2022 Q3 2021 Change YTD 2022 YTD 2021 Change
Units produced
Gold ounces 73,508 85,624 (14.2)% 218,004 254,225 (14.2)%
Silver ounces 5,883 6,349 (7.3)% 18,645 19,643 (5.1)%
Palladium ounces 3,229 5,105 (36.7)% 11,616 16,175 (28.2)%
Cobalt pounds 226 370 (39.0)% 596 1,912 (68.8)%
Gold equivalent ounces (2) 159,852 183,012 (12.7)% 491,088 570,040 (13.9)%
Units sold
Gold ounces 62,000 67,649 (8.4)% 224,238 232,843 (3.7)%
Silver ounces 5,234 5,487 (4.6)% 16,635 17,744 (6.3)%
Palladium ounces 4,227 5,703 (25.9)% 11,680 14,703 (20.6)%
Cobalt pounds 115 131 (12.2)% 851 658 29.3 %
Gold equivalent ounces (2) 138,824 149,862 (7.4)% 475,259 498,635 (4.7)%
Change in PBND and Inventory
Gold equivalent ounces (2) 6,620 17,659 11,039 (32,497) 22,375 54,872
Revenue $ 218,836 $ 268,957 (18.6)% $ 829,002 $ 923,468 (10.2)%
Net earnings $ 196,460 $ 134,937 45.6 % $ 503,001 $ 463,063 8.6 %
Per share $ 0.435 $ 0.300 45.0 % $ 1.114 $ 1.029 8.3 %
Adjusted net earnings (1) $ 93,878 $ 137,087 (31.5)% $ 401,168 $ 459,848 (12.8)%
Per share (1) $ 0.208 $ 0.304 (31.6)% $ 0.889 $ 1.022 (13.0)%
Operating cash flows $ 154,497 $ 201,287 (23.2)% $ 571,396 $ 649,856 (12.1)%
Per share (1) $ 0.342 $ 0.447 (23.5)% $ 1.266 $ 1.444 (12.3)%
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2022, Salobo produced 44,200 ounces of
attributable gold, a decrease of approximately 20% relative to the third
quarter of 2021, primarily due to lower grades and recovery. According to Vale
S.A.'s ("Vale"), plant performance improved relative to the second quarter of
2022 despite additional planned and corrective maintenance performed in the
third quarter. Vale plans for maintenance activities to continue in the fourth
quarter of 2022 to further improve plant reliability.
Vale reports that physical completion of the Salobo III mine expansion was 98%
at the end of the third quarter. Progress in the third quarter included the
primary crushing circuit being fully commissioned, hot commissioning of the
conveyor system, and commencement of wet commissioning of the flotation
circuit.
Antamina: In the third quarter of 2022, Antamina produced 1.4 million ounces
of attributable silver, a decrease of approximately 11% relative to the third
quarter of 2021, primarily due to lower grades as per the mine plan.
Peñasquito: In the third quarter of 2022, Peñasquito produced 2.0 million
ounces of attributable silver, a decrease of approximately 7% relative to the
third quarter of 2021 with lower recovery and grades as per the mine plan.
Constancia: In the third quarter of 2022, Constancia produced 0.6 million
ounces of attributable silver and 7,200 ounces of attributable gold, an
increase of approximately 8% for silver production and a decrease of
approximately 16% for gold production relative to the third quarter of 2021,
with the increase in silver being primarily due to higher throughput and the
decrease in gold production being primarily due to the mining of lower-grade
material resulting from mine sequencing.
Sudbury: In the third quarter of 2022, Vale's Sudbury mines produced 4,700
ounces of attributable gold, an increase of approximately 3109% relative to
the third quarter of 2021, primarily due to operations at the mine being
temporarily suspended due to a labour dispute which lasted from June 1, 2021
to August 9, 2021. Vale reports that in the third quarter, the first phase of
the Copper Cliff Complex South Mine Project was opened, including the
development of more than 12km of tunnels to reunite the south and north shafts
of the mine, which is expected to nearly double ore production at the Copper
Cliff Mine. The Copper Cliff Mine has historically represented approximately
20% of attributable production for Wheaton from Sudbury.
Stillwater: In the third quarter of 2022, the Stillwater mines produced 1,800
ounces of attributable gold and 3,200 ounces of attributable palladium, a
decrease of approximately 38% for gold and 37% for palladium relative to the
third quarter of 2021. As per Sibanye-Stillwater Limited, regional floods
impacted the Stillwater operations on June 13, 2022, including damage to
bridges and the access road to the Stillwater mine. Operations at the
Stillwater mine, which accounts for 60% of the mined production from the
Stillwater operations, were suspended for seven weeks, but resumed on July 29,
2022. Access to the East Boulder mine and the Columbus metallurgical
facilities remains intact and both facilities continued operating during the
flooding events.
San Dimas: In the third quarter of 2022, San Dimas produced 11,800 ounces of
attributable gold, virtually unchanged relative to the third quarter of 2021,
primarily due to lower throughput offset by higher grades. According to First
Majestic Silver Corp., silver and gold grades were higher in the third quarter
compared to the prior quarter due to improvements in dilution control from the
long hole stoping in the Jessica and Regina veins and due to initial
production from the Perez vein commencing in July.
Other Gold: In the third quarter of 2022, total Other Gold attributable
production was 3,700 ounces, a decrease of approximately 46% relative to the
third quarter of 2021, primarily due to the closure of the 777 mine in June
2022.
Other Silver: In the third quarter of 2022, total Other Silver attributable
production was 1.9 million ounces, a decrease of approximately 8% relative to
the third quarter of 2021, primarily due to lower production at Aljustrel
(grades) and Stratoni (placed into care and maintenance).
Voisey's Bay: In the third quarter of 2022, the Voisey's Bay mine produced
226,000 pounds of attributable cobalt, a decrease of approximately 39%
relative to the third 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 78% at the end of the third quarter. Progress
in the third quarter included surface activities being well advanced with the
port fuel tanks installed and Eastern Deeps mine fresh air infrastructure
completed, and in the underground, the Reid Brook bulk Material Handling
System advancing on schedule.
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.
Third Quarter Development Asset Highlights
Goose Project: Sabina Gold & Silver Corp. ("Sabina") announced a formal
construction decision for the Goose Project. Sabina noted that the project
will be in a position to commence full construction in early 2023 with first
production expected in 2025.
Blackwater Project: Artemis Gold Inc. ("Artemis") announced the commencement
of site preparation work at the plant site including site clearing, bulk
earthworks and sediment/erosion control. Artemis believes the Blackwater plant
site will start major construction works in the first quarter of 2023.
Marathon Project: Generation Mining Limited ("Gen Mining") delivered the
environmental assessment report for the Marathon Project to federal and
provincial ministers and announced the purchasing of an unused, surplus SAG
mill and ball mill. Gen Mining anticipates starting construction late in the
first quarter of 2023.
Curipamba Project: Adventus Mining Corporation ("Adventus") announced an
Investment Protection Agreement commitment declaration by the Government of
Ecuador indicating a significant milestone in the development of the Curipamba
Project. Adventus plans for a formal construction commencement in the second
quarter of 2023.
Portfolio Optimization
Keno Hill: On September 7, 2022, Hecla Mining Company ("Hecla") completed the
previously announced acquisition of all the outstanding common shares of
Alexco. In connection with this acquisition, the Company entered into an
agreement with Hecla to terminate the Keno Hill PMPA effective September 7,
2022, in exchange for 34,800,989 common shares of Hecla valued at $141 million
(the "Hecla shares" 5 ), resulting in an impairment reversal of the Keno Hill
PMPA in the amount of $10 million and a gain on disposal of $104 million.
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. Wheaton has agreed to terminate the
stream in order to help facilitate the sale by Glencore of the Yauliyacu Mine.
As at September 30, 2022, the net termination payment is estimated to be
approximately $136 million. The closing of the transaction is contingent on
Glencore divesting the Yauliyacu mine by December 31, 2022 and certain other
customary conditions. Glencore retains the option to terminate the silver
stream even if it does not divest the Yauliyacu mine by December 31, 2022.
Financial Review
Revenues
Revenue was $219 million in the third quarter of 2022 representing an 19%
decrease from the third quarter of 2021 due primarily to a 12% decrease in the
average realized gold equivalent² price; and a 7% decrease in the number of
GEOs² sold.
Revenue was $829 million in the nine months ended September 30, 2022,
representing a 10% decrease from the comparable period of the previous year
due primarily to a 5% decrease in the number of gold equivalent² ounces sold;
and a 6% decrease in the average realized gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2022 were $439 per GEO² as
compared to $417 in the third quarter of 2021. This resulted in a cash
operating margin¹ of $1,137 per GEO² sold, a decrease of 17% as compared
with the third quarter of 2021.
Average cash costs¹ for the nine months ended September 30, 2022 were $433
per GEO² as compared to $441 in the comparable period of the previous year.
This resulted in a cash operating margin¹ of $1,311 per GEO² sold, a 7%
decrease from the comparable period of the previous year.
Balance Sheet (at September 30, 2022)
· Approximately $495 million of cash on hand.
· During the third quarter of 2022, the Company made upfront cash payments
totaling $47 million relative to PMPA's.
· The Company extended its existing undrawn $2 billion revolving term loan
with its maturity date now July 18, 2027. As part of the extension, Wheaton
added a sustainability-linked element which may impact the interest rate paid
on drawn amounts and standby fees.
· 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.
Sustainability
Community Investment Program:
· In the third quarter, Wheaton Precious Metals International Ltd.
("Wheaton International") in partnership with Sibanye-Stillwater Limited,
donated funds to support flood relief in the community of Nye, which is the
closest town to the Stillwater mine in Montana. Funds were used to clean up
debris and support other flood-related recovery efforts and to support
families in financial need whose houses were damaged.
· In the third quarter, new reading rooms were opened in the state of
Maranhāo, Brazil, as part of the Routes and Literary Network project that is
maintained by the Vale Foundation in partnership with Wheaton International
and the Associação Cidade Escola Aprendiz. The new reading rooms benefit
1,800 students from three different schools.
· On August 27(th), the Tour de Cure, presented by Wheaton Precious
Metals, raised CA$6.3 million for the BC Cancer Foundation. The event is
B.C.'s largest cycling fundraiser attracting over 1,100 participants. Since
2014, Wheaton has donated over CA$3.2 million towards crucial advancements in
cancer research and care. In addition, the Silver Bullets, Wheaton's cycling
team comprised of employees, friends and family have collectively raised over
CA$2 million through the Tour de Cure.
Sustainability-Linked Revolving Credit Facility: Wheaton has added a
sustainability-linked element in connection with the extension to its existing
undrawn US$2 billion revolving credit facility, underscoring Wheaton's
commitment to sustainability initiatives. Under the renewed revolving credit
facility, the interest rate paid on drawn amounts and standby fees will be
adjusted based upon Wheaton's performance in three sustainability-related
areas including climate change, diversity and overall sustainability
performance.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, November 4, 2022
starting at 8:00am PT / 11:00 am ET to discuss these results. To participate
in the live call please use one of the following methods:
Dial toll free from Canada or the US: 1-888-664-6383
Dial from outside Canada or the US: 1-416-764-8650
Pass code:
30587457
Live webcast:
Webcast URL (https://app.webinar.net/MRvwJ5jzn8Z)
The accompanying slideshow will also be available in PDF format on the
'Events' page of the Wheaton Precious Metals website
(https://www.wheatonpm.com/Investors/events-and-webcasts/default.aspx) before
the conference call.
The conference call will be recorded and available until November 11, 2022 at
11:59 pm ET. The webcast will be available for one year. You can listen to an
archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-390-0541
Dial from outside Canada or the US: 1-416-764-8677
Pass code:
587457 #
Archived webcast:
Webcast URL (https://app.webinar.net/MRvwJ5jzn8Z)
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) .
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 for 2022 is forecast to be 300,000
to 320,000 ounces of gold, 22.5 to 24.0 million ounces of silver, and 35,000
to 40,000 gold equivalent ounces(2) ("GEOs"), resulting in production of
approximately 640,000 to 680,000 GEOs(2). As a result of the proposed
termination of the Yauliyacu PMPA, the Company now expects average annual
production for the five-year period ending December 31, 2026, to be
approximately 800,000 GEOs(2,)(4) (from 820,000 GEOs(2,)(4) previously) and
for the ten-year period ending December 31, 2031, to be approximately 850,000
GEOs(2)(,)(4) (from 870,000 GEOs(2,)(4) previously).
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.
End Notes
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Nine Months Ended
September 30
September 30
(US dollars and shares in thousands, except per share amounts - unaudited) 2022 2021 2022 2021
Sales $ 218,836 $ 268,957 $ 829,002 $ 923,468
Cost of sales
Cost of sales, excluding depletion $ 60,955 $ 62,529 $ 205,891 $ 219,757
Depletion 55,728 54,976 178,812 195,458
Total cost of sales $ 116,683 $ 117,505 $ 384,703 $ 415,215
Gross margin $ 102,153 $ 151,452 $ 444,299 $ 508,253
General and administrative expenses 8,360 7,932 27,448 26,572
Share based compensation 77 4,139 11,586 13,746
Donations and community investments 1,406 1,524 3,379 3,712
Reversal of impairment of mineral stream interests (10,330) - (10,330) -
Earnings from operations $ 102,640 $ 137,857 $ 412,216 $ 464,223
Gain on disposal of mineral stream interest (104,425) - (104,425) -
Other (income) expense (2,799) 1,108 (3,448) (2,194)
Earnings before finance costs and income taxes $ 209,864 $ 136,749 $ 520,089 $ 466,417
Finance costs 1,398 1,379 4,209 4,309
Earnings before income taxes $ 208,466 $ 135,370 $ 515,880 $ 462,108
Income tax (expense) recovery (12,006) (433) (12,879) 955
Net earnings $ 196,460 $ 134,937 $ 503,001 $ 463,063
Basic earnings per share $ 0.435 $ 0.300 $ 1.114 $ 1.029
Diluted earnings per share $ 0.434 $ 0.299 $ 1.112 $ 1.026
Weighted average number of shares outstanding
Basic 451,757 450,326 451,402 449,977
Diluted 452,386 451,717 452,221 451,369
Condensed Interim Consolidated Balance Sheets
As at As at
September 30
December 31
(US dollars in thousands - unaudited) 2022 2021
Assets
Current assets
Cash and cash equivalents $ 494,618 $ 226,045
Accounts receivable 11,536 11,577
Other 14,764 12,102
Total current assets $ 520,918 $ 249,724
Non-current assets
Mineral stream interests $ 5,807,056 $ 5,905,797
Early deposit mineral stream interests 46,092 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 190,472 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 4,505 5,509
Other 11,946 15,211
Total non-current assets $ 6,066,677 $ 6,046,427
Total assets $ 6,587,595 $ 6,296,151
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,274 $ 13,939
Current taxes payable 6,163 132
Current portion of performance share units 10,407 14,807
Current portion of lease liabilities 803 813
Total current liabilities $ 28,647 $ 29,691
Non-current liabilities
Performance share units 3,661 11,498
Lease liabilities 1,348 2,060
Deferred income taxes 1,954 100
Pension liability 3,173 2,685
Total non-current liabilities $ 10,136 $ 16,343
Total liabilities $ 38,783 $ 46,034
Shareholders' equity
Issued capital $ 3,741,211 $ 3,698,998
Reserves 7,464 47,036
Retained earnings 2,800,137 2,504,083
Total shareholders' equity $ 6,548,812 $ 6,250,117
Total liabilities and shareholders' equity $ 6,587,595 $ 6,296,151
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Nine Months Ended
September 30
September 30
(US dollars in thousands - unaudited) 2022 2021 2022 2021
Operating activities
Net earnings $ 196,460 $ 134,937 $ 503,001 $ 463,063
Adjustments for
Depreciation and depletion 56,129 55,445 180,004 196,869
Gain on disposal of mineral stream interest (104,425) - (104,425) -
Reversal of impairment of mineral stream interests (10,330) - (10,330) -
Interest expense 22 30 72 324
Equity settled stock based compensation 1,568 1,315 4,407 3,946
Performance share units (1,654) 2,824 (11,231) (7,128)
Pension expense 291 294 720 710
Income tax expense (recovery) 12,006 433 12,879 (955)
Loss (gain) on fair value adjustment of share purchase warrants held 204 1,246 1,101 2,392
Fair value (gain) loss on convertible note receivable - 490 1,380 (4,136)
Investment income recognized in net earnings (1,953) (178) (2,696) (275)
Other (349) (9) (1,821) 685
Change in non-cash working capital 4,728 4,434 (3,825) (5,341)
Cash generated from operations before income taxes and interest $ 152,697 $ 201,261 $ 569,236 $ 650,154
Income taxes recovered (paid) (29) - (141) (51)
Interest paid (22) (31) (73) (401)
Interest received 1,851 57 2,374 154
Cash generated from operating activities $ 154,497 $ 201,287 $ 571,396 $ 649,856
Financing activities
Bank debt repaid $ - $ - $ - $ (195,000)
Credit facility extension fees (1,205) (54) (1,207) (1,727)
Share purchase options exercised - 183 7,549 5,719
Lease payments (201) (196) (603) (583)
Dividends paid (59,487) (57,235) (176,604) (160,784)
Cash (used for) generated from financing activities $ (60,893) $ (57,302) $ (170,865) $ (352,375)
Investing activities
Mineral stream interests $ (46,675) $ (1,055) $ (107,476) $ (216,845)
Early deposit mineral stream interests (750) (750) (1,500) (1,500)
Mineral royalty interest - - - (3,571)
Closing costs on disposal of mineral stream interests (139) - (139) -
Acquisition of long-term investments - (5,076) (22,768) (7,453)
Proceeds on disposal of long-term investments - - - 112,188
Dividends received 102 110 322 110
Other (69) (171) (194) (691)
Cash (used for) generated from investing activities $ (47,531) $ (6,942) $ (131,755) $ (117,762)
Effect of exchange rate changes on cash and cash equivalents $ (81) $ (39) $ (203) $ 48
Increase in cash and cash equivalents $ 45,992 $ 137,004 $ 268,573 $ 179,767
Cash and cash equivalents, beginning of period 448,626 235,446 226,045 192,683
Cash and cash equivalents, end of period $ 494,618 $ 372,450 $ 494,618 $ 372,450
Summary of Units Produced
Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
Gold ounces produced ²
Salobo 44,212 34,129 44,883 48,235 55,205 55,590 46,622 62,854
Sudbury (3) 4,735 5,289 5,362 4,379 148 4,563 7,004 6,659
Constancia 7,196 8,042 6,311 9,857 8,533 5,525 2,453 3,929
San Dimas (4) 11,808 10,044 10,461 13,714 11,936 11,478 10,491 11,652
Stillwater (5) 1,833 2,171 2,497 2,664 2,949 2,962 3,041 3,290
Other
Minto 3,182 2,480 4,060 3,506 1,703 3,206 2,638 789
777 (6) - 3,509 4,003 4,462 4,717 5,035 6,280 2,866
Marmato 542 778 477 479 433 1,713 - -
Total Other 3,724 6,767 8,540 8,447 6,853 9,954 8,918 3,655
Total gold ounces produced 73,508 66,442 78,054 87,296 85,624 90,072 78,529 92,039
Silver ounces produced (2)
Peñasquito 2,017 2,089 2,219 2,145 2,180 2,026 2,202 2,014
Antamina 1,377 1,379 1,260 1,366 1,548 1,558 1,577 1,930
Constancia 564 584 506 578 521 468 406 478
Other
Los Filos (7) 23 23 42 37 17 26 31 6
Zinkgruvan 642 739 577 482 658 457 420 515
Yauliyacu 463 756 637 382 372 629 737 454
Stratoni (8) - - - 129 18 164 165 185
Minto 42 25 45 44 25 33 21 16
Neves-Corvo 323 345 344 522 362 408 345 420
Aljustrel 246 292 287 325 314 400 474 440
Cozamin 179 169 186 213 199 183 230 -
Marmato 7 8 11 7 10 39 - -
Keno Hill (9) - 48 20 30 44 55 27 -
777 (6) - 80 91 96 81 83 130 51
Total Other 1,925 2,485 2,240 2,267 2,100 2,477 2,580 2,087
Total silver ounces produced 5,883 6,537 6,225 6,356 6,349 6,529 6,765 6,509
Palladium ounces produced ²
Stillwater (5) 3,229 3,899 4,488 4,733 5,105 5,301 5,769 5,672
Cobalt pounds produced ²
Voisey's Bay 226 136 234 381 370 380 1,162 ¹⁰ -
GEOs produced (11) 159,852 160,646 170,590 184,551 183,012 190,272 196,756 185,436
SEOs produced (11) 11,989 12,048 12,794 13,841 13,726 14,270 14,757 13,908
Average payable rate (2)
Gold 95.1% 95.1% 95.2% 96.0% 96.0% 95.8% 95.0% 95.2%
Silver 86.1% 85.5% 86.1% 86.0% 86.6% 86.9% 86.6% 86.3%
Palladium 95.0% 94.6% 92.7% 92.2% 94.5% 95.0% 91.6% 93.6%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% n.a.
GEO (11) 90.6% 90.1% 90.5% 91.4% 91.3% 91.8% 90.7% 91.2%
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: 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; Q4-2020
- 485,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) Operations at 777 were temporarily suspended from October 11, 2020 to
November 25, 2020 as a result of an incident that occurred on October 9th
during routine maintenance of the hoist rope and skip. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and closure
activities have commenced.
7) Operations at Los Filos were suspended from September 3, 2020 to
December 23, 2020 as the result of an illegal road blockade by members of the
nearby Carrizalillo community and had been temporarily suspended from June 22,
2021 to July 26, 2021 as the result of illegal blockades by a group of
unionized employees and members of the Xochipala community.
8) The Stratoni mine was placed into care and maintenance during Q4-2021.
9) On September 7, 2022, the Company terminated the Keno Hill stream in
exchange for $141 million of Hecla common shares received as consideration.
10) Effective January 1, 2021, the Company
was entitled to cobalt production from the Voisey's Bay mine. As per the
Voisey's Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at
the Long Harbour Processing Plant as of January 1, 2021, resulting in reported
production in the first quarter of 2021 including some material produced at
the Voisey's Bay mine in the previous quarter.
11) GEOs and SEOs, which are provided to
assist the reader, are based on the following commodity price assumptions:
$1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in estimating the
Company's production guidance for 2022.
Summary of Units Sold
Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
Gold ounces sold
Salobo 31,818 48,515 42,513 47,171 35,185 57,296 51,423 53,197
Sudbury (2) 5,147 7,916 3,712 965 1,915 6,945 3,691 7,620
Constancia 6,336 7,431 10,494 6,196 8,159 2,321 1,676 3,853
San Dimas 10,196 10,633 10,070 15,182 11,346 11,214 10,273 11,529
Stillwater (3) 2,127 2,626 2,628 2,933 2,820 2,574 3,074 3,069
Other
Minto 2,559 2,806 3,695 2,462 1,907 2,359 2,390 1,540
777 3,098 3,629 4,388 4,290 5,879 5,694 2,577 5,435
Marmato 719 781 401 423 438 1,687 - -
Total Other 6,376 7,216 8,484 7,175 8,224 9,740 4,967 6,975
Total gold ounces sold 62,000 84,337 77,901 79,622 67,649 90,090 75,104 86,243
Silver ounces sold
Peñasquito 1,599 2,096 2,188 1,818 2,210 1,844 2,174 1,417
Antamina 1,155 1,177 1,468 1,297 1,502 1,499 1,930 1,669
Constancia 498 494 644 351 484 295 346 442
Other
Los Filos 24 41 42 17 12 42 27 -
Zinkgruvan 376 650 355 346 354 355 293 326
Yauliyacu 1,005 817 44 551 182 601 1,014 15
Stratoni - (2) 133 42 41 167 117 169
Minto 22 21 31 27 24 29 26 20
Neves-Corvo 105 167 204 259 193 215 239 145
Aljustrel 185 123 145 133 155 208 257 280
Cozamin 154 148 177 174 170 168 173 -
Marmato 8 11 8 8 10 35 - -
Keno Hill 30 30 27 24 51 33 12 -
777 73 75 87 69 99 109 49 93
Total Other 1,982 2,081 1,253 1,650 1,291 1,962 2,207 1,048
Total silver ounces sold 5,234 5,848 5,553 5,116 5,487 5,600 6,657 4,576
Palladium ounces sold
Stillwater (3) 4,227 3,378 4,075 4,641 5,703 3,869 5,131 4,591
Cobalt pounds sold
Voisey's Bay 115 225 511 228 131 395 132 -
GEOs sold (4) 138,824 170,371 166,065 157,439 149,862 176,502 172,271 152,613
SEOs sold (4) 10,412 12,778 12,455 11,808 11,240 13,238 12,920 11,446
Cumulative payable units PBND (5)
Gold ounces 67,247 59,331 81,365 84,989 80,819 66,238 70,072 70,555
Silver ounces 3,550 3,672 3,910 4,200 3,845 3,802 3,738 4,486
Palladium ounces 5,041 6,267 5,535 5,629 5,619 6,822 5,373 5,597
Cobalt pounds 402 280 550 596 637 777 820 -
GEO (4) 127,840 120,735 150,032 158,477 150,317 139,145 141,206 136,894
SEO (4) 9,588 9,055 11,252 11,886 11,274 10,436 10,590 10,267
Inventory on hand
Cobalt pounds 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 and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
5) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended September 30, 2022
Units Produced² Units Average Average Average Sales Impairment Reversals / Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 44,212 31,818 $ 1,724 $ 416 $ 334 $ 54,860 $ - $ 31,000 $ 41,617 $ 2,396,952
Sudbury (5) 4,735 5,147 1,745 400 1,092 8,984 - 1,303 5,943 288,863
Constancia 7,196 6,336 1,724 415 271 10,925 - 6,578 8,295 97,213
San Dimas 11,808 10,196 1,724 624 260 17,579 - 8,567 11,213 158,704
Stillwater 1,833 2,127 1,724 317 429 3,667 - 2,080 2,992 216,617
Other (6) 3,724 6,376 1,743 694 59 11,113 - 6,311 5,562 461,359
73,508 62,000 $ 1,728 $ 474 $ 353 $ 107,128 $ - $ 55,839 $ 75,622 $ 3,619,708
Silver
Peñasquito 2,017 1,599 $ 19.30 $ 4.36 $ 3.57 $ 30,857 $ - $ 18,182 $ 23,885 $ 301,040
Antamina 1,377 1,155 19.30 3.75 7.06 22,287 - 9,798 17,951 553,231
Constancia 564 498 19.30 6.12 6.35 9,613 - 3,398 6,563 195,507
Other (7) 1,925 1,982 18.93 7.51 6.84 37,513 114,755 123,823 21,896 538,739
5,883 5,234 $ 19.16 $ 5.59 $ 5.84 $ 100,270 $ 114,755 $ 155,201 $ 70,295 $ 1,588,517
Palladium
Stillwater 3,229 4,227 $ 2,091 $ 353 $ 399 $ 8,838 $ - $ 5,657 $ 7,344 $ 228,168
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,425
Cobalt
Voisey's Bay 226 115 $ 22.68 $ 7.21 $ 13.63 $ 2,600 $ - $ 211 $ 7,352 $ 361,238
Operating results $ 218,836 $ 114,755 $ 216,908 $ 160,613 $ 5,807,056
Other
General and administrative $ (8,360) $ (5,503)
Share based compensation (77) -
Donations and community investments (1,406) (1,413)
Finance costs (1,398) (1,020)
Other 2,799 1,849
Income tax (12,006) (29)
Total other $ (20,448) $ (6,116) $ 780,539
$ 196,460 $ 154,497 $ 6,587,595
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 termination of the Keno Hill 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, Yauliyacu,
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 silver interest. 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 $141 million of Hecla common stock.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended September 30, 2022 were as follows:
Three Months Ended September 30, 2022
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 159,852 138,824 $ 1,576 $ 439 $ 1,137 $ 401 $ 736
Silver equivalent basis (5) 11,989 10,412 $ 21.02 $ 5.85 $ 15.17 $ 5.35 $ 9.82
1) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
Three Months Ended September 30, 2021
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 55,205 35,185 $ 1,795 $ 412 $ 374 $ 63,154 $ 35,504 $ 50,404 $ 2,455,567
Sudbury (4) 148 1,915 1,794 400 1,024 3,436 708 2,242 308,158
Constancia 8,533 8,159 1,795 411 315 14,645 8,723 11,487 101,741
San Dimas 11,936 11,346 1,795 618 322 20,365 9,693 13,351 171,617
Stillwater 2,949 2,820 1,795 326 397 5,061 3,024 4,144 220,949
Other (5) 6,853 8,224 1,794 590 38 14,755 9,586 9,887 64,985
85,624 67,649 $ 1,795 $ 464 $ 337 $ 121,416 $ 67,238 $ 91,515 $ 3,323,017
Silver
Peñasquito 2,180 2,210 $ 24.09 $ 4.29 $ 3.55 $ 53,259 $ 35,932 $ 43,776 $ 328,470
Antamina 1,548 1,502 23.99 4.80 7.53 36,000 17,503 28,993 589,816
Constancia 521 484 24.09 6.05 7.56 11,668 5,076 9,033 208,537
Other (6) 2,100 1,291 22.97 6.33 4.49 29,660 15,686 24,011 602,796
6,349 5,487 $ 23.80 $ 5.06 $ 5.21 $ 130,587 $ 74,197 $ 105,813 $ 1,729,619
Palladium
Stillwater 5,105 5,703 $ 2,426 $ 468 $ 442 $ 13,834 $ 8,644 $ 11,168 $ 234,883
Cobalt
Voisey's Bay 370 131 $ 23.78 $ 5.15 $ 8.17 $ 3,120 $ 1,373 $ 159 $ 218,144
Operating results $ 268,957 $ 151,452 $ 208,655 $ 5,505,663
Other
General and administrative $ (7,932) $ (4,729)
Share based compensation (4,139) -
Donations and community investments (1,524) (1,671)
Finance costs (1,379) (1,039)
Other (1,108) 71
Income tax (433) -
Total other $ (16,515) $ (7,368) $ 541,077
$ 134,937 $ 201,287 $ 6,046,740
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
5) Comprised of the operating Minto, 777 and Marmato gold interests as
well as the non-operating 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.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, 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
silver interest. 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 $141 million of Hecla common
stock.
On a gold equivalent and silver equivalent basis, results for the Company for
the three months ended September 30, 2021 were as follows:
Three Months Ended September 30, 2021
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 183,012 149,862 $ 1,795 $ 417 $ 1,378 $ 367 $ 1,011
Silver equivalent basis (5) 13,726 11,240 $ 23.93 $ 5.56 $ 18.37 $ 4.89 $ 13.48
1) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
Nine Months Ended September 30, 2022
Units Produced² Units Average Average Average Sales Impairment Reversals / Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 123,224 122,846 $ 1,834 $ 416 $ 334 $ 225,267 $ - $ 133,146 $ 174,134 $ 2,396,952
Sudbury (5) 15,386 16,775 1,828 400 1,091 30,673 - 5,657 22,980 288,863
Constancia 21,549 24,261 1,833 413 271 44,480 - 27,886 34,463 97,213
San Dimas 32,313 30,899 1,823 622 260 56,335 - 29,095 37,114 158,704
Stillwater 6,501 7,381 1,829 330 429 13,503 - 7,902 11,070 216,617
Other (6) 19,031 22,076 1,829 734 45 40,388 - 23,183 22,912 461,359
218,004 224,238 $ 1,831 $ 471 $ 348 $ 410,646 $ - $ 226,869 $ 302,673 $ 3,619,708
Silver
Peñasquito 6,325 5,883 $ 22.21 $ 4.36 $ 3.57 $ 130,686 $ - $ 84,058 $ 105,036 $ 301,040
Antamina 4,016 3,800 22.13 4.42 7.06 84,093 - 40,479 66,952 553,231
Constancia 1,654 1,636 22.15 6.09 6.34 36,227 - 15,883 26,260 195,507
Other (7) 6,650 5,316 21.41 7.14 5.61 113,823 114,755 160,768 75,969 538,739
18,645 16,635 $ 21.93 $ 5.43 $ 5.29 $ 364,829 $ 114,755 $ 301,188 $ 274,217 $ 1,588,517
Palladium
Stillwater 11,616 11,680 $ 2,190 $ 383 $ 399 $ 25,574 $ - $ 16,437 $ 21,099 $ 228,168
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,425
Cobalt
Voisey's Bay 596 851 $ 32.85 $ 6.24 $ 9.49 $ 27,953 $ - $ 14,560 $ 24,683 $ 361,238
Operating results $ 829,002 $ 114,755 $ 559,054 $ 622,672 $ 5,807,056
Other
General and administrative $ (27,448) $ (28,933)
Share based compensation (11,586) (18,161)
Donations and community investments (3,379) (2,976)
Finance costs (4,209) (3,107)
Other 3,448 2,042
Income tax (12,879) (141)
Total other $ (56,053) $ (51,276) $ 780,539
$ 503,001 $ 571,396 $ 6,587,595
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 termination of the Keno Hill 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 777, Minto and Marmato gold interests as
well as the non-operating 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, Yauliyacu,
Neves-Corvo, Aljustrel, Minto, Cozamin, Marmato and 777 silver interests, the
non-operating 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 silver interest. 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 $141 million of Hecla common stock.
On a gold equivalent and silver equivalent basis, results for the Company for
the nine months ended September 30, 2022 were as follows:
Nine Months Ended September 30, 2022
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 491,088 475,259 $ 1,744 $ 433 $ 1,311 $ 376 $ 935
Silver equivalent basis (5) 36,832 35,644 $ 23.26 $ 5.78 $ 17.48 $ 5.02 $ 12.46
1) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
Nine Months Ended September 30, 2021
Units Produced² Units Average Average Average Sales Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 157,417 143,904 $ 1,797 $ 412 $ 374 $ 258,549 $ 145,466 $ 200,993 $ 2,455,567
Sudbury (4) 11,715 12,551 1,812 400 1,024 22,742 4,864 17,722 308,158
Constancia 16,511 12,156 1,796 410 315 21,829 13,018 17,040 101,741
San Dimas 33,905 32,833 1,796 616 322 58,981 28,170 38,755 171,617
Stillwater 8,952 8,468 1,796 327 397 15,212 9,083 12,444 220,949
Other (5) 25,725 22,931 1,806 585 67 41,421 26,471 27,981 64,985
254,225 232,843 $ 1,798 $ 454 $ 369 $ 418,734 $ 227,072 $ 314,935 $ 3,323,017
Silver
Peñasquito 6,408 6,228 $ 25.59 $ 4.29 $ 3.55 $ 159,374 $ 110,552 $ 132,655 $ 328,470
Antamina 4,683 4,931 25.66 5.12 7.53 126,484 64,106 100,597 589,816
Constancia 1,395 1,125 25.41 6.03 7.56 28,605 13,306 22,109 208,537
Other (6) 7,157 5,460 25.54 8.31 5.48 139,461 64,166 97,241 602,796
19,643 17,744 $ 25.58 $ 5.87 $ 5.50 $ 453,924 $ 252,130 $ 352,602 $ 1,729,619
Palladium
Stillwater 16,175 14,703 $ 2,512 $ 463 $ 442 $ 36,932 $ 23,622 $ 30,128 $ 234,883
Cobalt
Voisey's Bay 1,912 658 $ 21.09 $ 4.67 $ 8.17 $ 13,878 $ 5,429 $ 1,244 $ 218,144
Operating results $ 923,468 $ 508,253 $ 698,909 $ 5,505,663
Other
General and administrative $ (26,572) $ (25,898)
Share based compensation (13,746) (16,926)
Donations and community investments (3,712) (3,247)
Finance costs (4,309) (3,246)
Other 2,194 315
Income tax 955 (51)
Total other $ (45,190) $ (49,053) $ 541,077
$ 463,063 $ 649,856 $ 6,046,740
1) Units of gold, silver and palladium produced and sold are reported in
ounces, while cobalt is reported in pounds. All figures in thousands except
gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
5) Comprised of the operating Minto, 777 and Marmato gold interests as
well as the non-operating 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.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, 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
silver interest. 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 $141 million of Hecla common
stock.
On a gold equivalent and silver equivalent basis, results for the Company for
the nine months ended September 30, 2021 were as follows:
Nine Months Ended September 30, 2021
Ounces Ounces Average Average Cash Operating Margin Average Gross
Produced (1, 2)
Sold (2)
Realized
Cash Cost
($'s Per Ounce) (4)
Depletion
Margin
Price
($'s Per
($'s Per
($'s Per
($'s Per
Ounce) (3)
Ounce)
Ounce)
Ounce)
Gold equivalent basis (5) 570,040 498,635 $ 1,852 $ 441 $ 1,411 $ 392 $ 1,019
Silver equivalent basis (5) 42,753 37,398 $ 24.69 $ 5.88 $ 18.81 $ 5.23 $ 13.58
1) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by the
operators of the mining operations to which the mineral stream interests
relate or management estimates in those situations where other information is
not available. Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press
release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press
release.
5) GEOs and SEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt;
consistent with those used in estimating the Company's production guidance for
2022.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance
measures, including (i) adjusted net earnings and adjusted net earnings per
share; (ii) operating cash flow per share (basic and diluted); (iii) average
cash costs of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis; 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 Nine Months Ended
September 30
September 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
Net earnings $ 196,460 $ 134,937 $ 503,001 $ 463,063
Add back (deduct):
Impairment reversal (10,330) - (10,330) -
Gain on disposal of Mineral Stream Interest (104,425) - (104,425) -
(Gain) loss on fair value adjustment of share purchase warrants held 204 1,246 1,101 2,392
(Gain) loss on fair value adjustment of convertible notes receivable - 490 1,380 (4,136)
Income tax (expense) recovery recognized in the Statement of Shareholders' 3,644 (269) 4,143 837
Equity
Income tax (expense) recovery recognized in the Statement of OCI 546 627 701 (1,989)
Income tax expense resulting from PMPA disposition, net of above 7,779 - 7,779 -
Other - 56 (2,182) (319)
Adjusted net earnings $ 93,878 $ 137,087 $ 401,168 $ 459,848
Divided by:
Basic weighted average number of shares outstanding 451,757 450,326 451,402 449,977
Diluted weighted average number of shares outstanding 452,386 451,717 452,221 451,369
Equals:
Adjusted earnings per share - basic $ 0.208 $ 0.304 $ 0.889 $ 1.022
Adjusted earnings per share - diluted $ 0.208 $ 0.303 $ 0.887 $ 1.019
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 Nine Months Ended
September 30
September 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
Cash generated by operating activities $ 154,497 $ 201,287 $ 571,396 $ 649,856
Divided by:
Basic weighted average number of shares outstanding 451,757 450,326 451,402 449,977
Diluted weighted average number of shares outstanding 452,386 451,717 452,221 451,369
Equals:
Operating cash flow per share - basic $ 0.342 $ 0.447 $ 1.266 $ 1.444
Operating cash flow per share - diluted $ 0.342 $ 0.446 $ 1.264 $ 1.440
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 Nine Months Ended
September 30
September 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021 2022 2021
Cost of sales $ 116,683 $ 117,505 $ 384,703 $ 415,215
Less: depletion (55,728) (54,976) (178,812) (195,458)
Cash cost of sales $ 60,955 $ 62,529 $ 205,891 $ 219,757
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 29,398 $ 31,405 $ 105,719 $ 105,721
Total cash cost of silver sold 29,238 27,782 90,384 104,159
Total cash cost of palladium sold 1,493 2,667 4,475 6,804
Total cash cost of cobalt sold 826 675 5,313 3,073
Total cash cost of sales $ 60,955 $ 62,529 $ 205,891 $ 219,757
Divided by:
Total gold ounces sold 62,000 67,649 224,238 232,843
Total silver ounces sold 5,234 5,487 16,635 17,744
Total palladium ounces sold 4,227 5,703 11,680 14,703
Total cobalt pounds sold 115 131 851 658
Equals:
Average cash cost of gold (per ounce) $ 474 $ 464 $ 471 $ 454
Average cash cost of silver (per ounce) $ 5.59 $ 5.06 $ 5.43 $ 5.87
Average cash cost of palladium (per ounce) $ 353 $ 468 $ 383 $ 463
Average cash cost of cobalt (per pound) $ 7.21 $ 5.15 $ 6.24 $ 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 Nine Months Ended
September 30
September 30
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021 2022 2021
Total sales:
Gold $ 107,128 $ 121,416 $ 410,646 $ 418,734
Silver $ 100,270 $ 130,587 $ 364,829 $ 453,924
Palladium $ 8,838 $ 13,834 $ 25,574 $ 36,932
Cobalt $ 2,600 $ 3,120 $ 27,953 $ 13,878
Divided by:
Total gold ounces sold 62,000 67,649 224,238 232,843
Total silver ounces sold 5,234 5,487 16,635 17,744
Total palladium ounces sold 4,227 5,703 11,680 14,703
Total cobalt pounds sold 115 131 851 658
Equals:
Average realized price of gold (per ounce) $ 1,728 $ 1,795 $ 1,831 $ 1,798
Average realized price of silver (per ounce) $ 19.16 $ 23.80 $ 21.93 $ 25.58
Average realized price of palladium (per ounce) $ 2,091 $ 2,426 $ 2,190 $ 2,512
Average realized price of cobalt (per pound) $ 22.68 $ 23.78 $ 32.85 $ 21.09
Less:
Average cash cost of gold (1) (per ounce) $ (474) $ (464) $ (471) $ (454)
Average cash cost of silver (1) (per ounce) $ (5.59) $ (5.06) $ (5.43) $ (5.87)
Average cash cost of palladium (1) (per ounce) $ (353) $ (468) $ (383) $ (463)
Average cash cost of cobalt (1) (per pound) $ (7.21) $ (5.15) $ (6.24) $ (4.67)
Equals:
Cash operating margin per gold ounce sold $ 1,254 $ 1,331 $ 1,360 $ 1,344
As a percentage of realized price of gold 73% 74% 74% 75%
Cash operating margin per silver ounce sold $ 13.57 $ 18.74 $ 16.50 $ 19.71
As a percentage of realized price of silver 71% 79% 75% 77%
Cash operating margin per palladium ounce sold $ 1,738 $ 1,958 $ 1,807 $ 2,049
As a percentage of realized price of palladium 83% 81% 83% 82%
Cash operating margin per cobalt pound sold $ 15.47 $ 18.63 $ 26.61 $ 16.42
As a percentage of realized price of cobalt 68% 78% 81% 78%
1) Please refer to non-IFRS measure (iii), above.
These non-IFRS measures do not have any standardized meaning prescribed by
IFRS, and other companies may calculate these measures differently. The
presentation of these non-IFRS measures is intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the Company's
website at www.wheatonpm.com and posted on SEDAR at www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's PMPA counterparties. Forward-looking statements,
which are all statements other than statements of historical fact, include,
but are not limited to, statements with respect to the termination of the
Yauliyacu silver stream for $150 million, the value of silver produced and
delivered after January 1, 2022 and the satisfaction of each party's
obligations in accordance with definitive documentation relating to the
termination of the Yauliyacu silver stream, 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
termination of the Yauliyacu silver stream and the satisfaction of each
party's obligations in accordance with the terms of the definitive
documentation relating to the termination of the Yauliyacu silver stream, the
satisfaction of each party's obligations in accordance with the terms of the
Company's PMPAs or royalty arrangements, risks associated with fluctuations in
the price of commodities (including Wheaton's ability to sell its precious
metals or cobalt production at acceptable prices or at all), risks of
significant impacts on Wheaton or the Mining Operations as a result of an
epidemic (including the COVID-19 virus pandemic), risks related to the Mining
Operations (including fluctuations in the price of the primary or other
commodities mined at such operations, regulatory, political and other risks of
the jurisdictions in which the Mining Operations are located, actual results
of mining, risks associated with the exploration, development, operating,
expansion and improvement of the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters as plans
continue to be refined), the absence of control over the Mining Operations and
having to rely on the accuracy of the public disclosure and other information
Wheaton receives from the Mining Operations, uncertainty in the estimation of
production from Mining Operations, uncertainty in the accuracy of mineral
reserve and mineral resource estimation, the ability of each party to satisfy
their obligations in accordance with the terms of the PMPAs, the estimation of
future production from Mining Operations, Wheaton's interpretation of,
compliance with or application of, tax laws and regulations or accounting
policies and rules being found to be incorrect, any challenge or reassessment
by the CRA of the Company's tax filings being successful and the potential
negative impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement (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): the receipt of $150 million from Glencore, the estimated value of
silver to be produced and delivered after January 1, 2022 and the satisfaction
of each party's obligations in accordance with the terms of the definitive
documentation relating to the termination of the Yauliyacu silver stream, 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.
For further information, please contact:
Patrick Drouin
SVP, Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
1 Please refer to non-IFRS measures at the end of this press release.
Dividends declared in the referenced calendar quarter, relative to the
financial results of the prior quarter. Details of the dividend can be found
in the Wheaton's news release date November 3, 2022, titled "Wheaton Precious
Metals Declares Quarterly Dividend."
2 Company reports & S and P Capital IQ est. of 2022 byproduct cost
curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs and
SEOs, which are provided to assist the reader, are based on the following
commodity price assumptions: $1800/oz, silver $24/oz, palladium $2,100/oz and
cobalt $33/lb.
3 Portfolio mine life based on recoverable reserves and resources as of Dec
31, 2021 and 2021 actual mill throughput and is weighted by individual reserve
and resource category.
4 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.
5 The Hecla shares represent approximately 6% of Hecla's current issued and
outstanding shares and are subject to a six month hold period from the closing
date of September 7, 2022.
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