TIDMWPM
RNS Number : 0264S
Wheaton Precious Metals Corp.
12 March 2021
March 11, 2021 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
fourth quarter and full year financial results
WHEATON PRECIOUS METALS Announces record revenue
and operating cash flow for 2020
"Our strong performance in 2020 was driven by Wheaton's
high-quality portfolio of assets, which generated over $1 billion
in revenue and operating cash flow of over $765 million, both
representing records for the Company," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals.
"Despite the challenges posed by the COVID-19 pandemic, 2020 was a
very productive year, and we were successful in delivering value
back to our stakeholders on many fronts. Specifically, we added two
new accretive precious metal streams to our portfolio, expanded our
shareholder base by listing on the London Stock Exchange and
provided additional funding to communities impacted by the
pandemic. Given the resiliency of our production base coupled with
our innovative dividend policy, we are pleased to provide greater
value back to our shareholders in 2021 by increasing the minimum
quarterly dividend by over 30% relative to last year."
Fourth Quarter and Year End 2020 Highlights:
-- $208 million in operating cash flow in the quarter resulting
in record annual operating cash flow of over $765 million in
2020.
-- Record annual revenue of $1,096 million in 2020.
-- Net debt(1) reduced by $275 million, resulting in a net debt position of $2 million.
-- Declared quarterly dividend (1) of $0.13 per common share.
-- New precious metal purchase agreements on the Marmato Mine and the Cozamin Mine.
-- Total attributable gold Measured and Indicated Mineral
Resources increased by 64%, primarily due to successful exploration
at Salobo, which extended the orebody at depth.
-- Commenced trading on the Main Market of the London Stock Exchange.
Operational Overview
(all figures in US dollars
unless otherwise noted) Q4 2020 Q4 2019 Change 2020 2019 Change
------------------------------ ------- --------- -------- --------- -------- --------
Ounces produced
Gold 93,137 107,054 (13.0)% 367,419 406,504 (9.6)%
Silver 6,509 5,908 10.2 % 22,892 22,396 2.2 %
Palladium 5,672 6,057 (6.4)% 22,187 21,993 0.9 %
Gold equivalent (2) 178,801 186,027 (3.9)% 671,713 704,579 (4.7)%
Ounces sold
Gold 86,243 89,223 (3.3)% 369,553 389,086 (5.0)%
Silver 4,576 4,684 (2.3)% 19,232 17,703 8.6 %
Palladium 4,591 5,312 (13.6)% 20,051 20,681 (3.0)%
Gold equivalent (2) 147,277 152,514 (3.4)% 627,063 629,098 (0.3)%
------------------------------- ------- --------- -------- --------- -------- --------
Revenue $286,212 $ 223,222 28.2 % $1,096,224 $ 861,332 27.3 %
Net earnings $157,221 $ 77,524 103 % $ 507,804 $ 86,138 489.5 %
Per share $ 0.350 $ 0.173 102.3 % $ 1.132 $ 0.193 486.5 %
Adjusted net earnings (1) $149,441 $ 74,473 100.7 % $ 503,335 $ 242,745 107.4 %
Per share (1) $ 0.333 $ 0.166 100.6 % $ 1.122 $ 0.544 106.1 %
Operating cash flows $207,962 $ 131,867 57.7 % $ 765,442 $ 501,620 52.6 %
Per share (1) $ 0.463 $ 0.295 56.9 % $ 1.706 $ 1.125 51.6 %
------------------------------- ------- --------- -------- --------- -------- --------
All amounts in thousands except gold, palladium and gold
equivalent ounces produced and sold, per ounce amounts and per
share amounts. [1] [2]
Production Guidance
-- 2021 Guidance: Wheaton's estimated attributable production in
2021 is forecast to be 370,000 to 400,000 ounces of gold, 22.5 to
24.0 million ounces of silver, and 40,000 to 45,000 gold equivalent
ounces [3] ("GEOs") of other metals, resulting in production of
approximately 720,000 to 780,000 GEOs (3) .
-- Five-year guidance: For the five-year period ending in 2025,
the Company estimates that average production will amount to
810,000 GEOs (3) .
-- Ten-year guidance: For the ten-year period ending in 2030,
the Company estimates that average annual production will amount to
830,000 GEOs (3) .
Financial Review
Revenues
Revenue was $286 million in the fourth quarter of 2020
representing a 28% increase from the fourth quarter of 2019 due
primarily to a 33% increase in the average realized gold
equivalent(2) price; partially offset by a 3% decrease in the
number of gold equivalent(2) ounces sold.
Revenue was $1,096 million in the year ended December 31, 2020
representing a 27% increase from 2019 due primarily to a 28%
increase in the average realized gold equivalent(2) price.
Costs and Expenses
Average cash costs(1) in the fourth quarter of 2020 were $438
per gold equivalent(2) ounce as compared to $418 in the fourth
quarter of 2019. This resulted in a cash operating margin(1) of
$1,505 per gold equivalent(2) ounce sold, an increase of 44% as
compared with the fourth quarter of 2019.
Average cash costs(1) in 2020 were $425 per gold equivalent(2)
ounce as compared to $411 in 2019. This resulted in a cash
operating margin(1) of $1,323 per gold equivalent(2) ounce sold, an
increase of 38% as compared with 2019.
Balance Sheet (at December 31, 2020 )
-- Approximately $193 million of cash on hand.
-- $195 million outstanding under the Company's $2 billion
revolving term loan (the "Revolving Facility").
-- During Q4 2020, the company received $113 million in proceeds
from the sale of long-term equity investments including First
Majestic Silver Corp. ("First Majestic").
-- During Q4 2020, the Company has repaid $293 million under the Revolving Facility.
-- During Q4 2020, the net debt(1) was reduced by $275 million to $2 million.
-- The average effective interest rate for Q4 2020 was 1.20%.
Listing on the London Stock Exchange
On October 28, 2020, the Company's common shares were admitted
to the Standard Segment of the Official List of the UK Financial
Conduct Authority ("FCA") and commenced trading on the Main Market
of the London Stock Exchange under the ticker symbol WPM.
Fourth Quarter Asset Highlights
Salobo: In the fourth quarter of 2020, Salobo produced 62,900
ounces of attributable gold, a decrease of approximately 16%
relative to the fourth quarter of 2019 due to lower throughput.
According to Vale S.A.'s ("Vale") Fourth Quarter and Year End 2020
Production and Sales Report, throughput at Salobo was impacted due
to unscheduled maintenance and an incident which led Vale to review
and halt mine and plant activities for a short period, during which
changes in maintenance routines were implemented to improve
operations and safety conditions. As per Vale's Fourth Quarter and
Year End 2020 Performance Report, physical completion of the Salobo
III mine expansion was 68% at the end of the fourth quarter.
Sudbury: In the fourth quarter of 2020, Vale's Sudbury mines
produced 7,800 ounces of attributable gold, an increase of
approximately 20% relative to the fourth quarter of 2019, due
primarily to higher recoveries.
San Dimas: In the fourth quarter of 2020, San Dimas produced
11,700 ounces of attributable gold, virtually unchanged relative to
the fourth quarter of 2019 . As per the San Dimas precious metal
purchase agreements ("PMPA"), the fixed gold to silver conversion
ratio reverted to 70:1 (from 90:1) on October 14, 2020 after the
average gold to silver price ratio over a six-month period fell
back below 90:1.
Antamina: In the fourth quarter of 2020, Antamina produced 1.9
million ounces of attributable silver, an increase of approximately
44% relative to the fourth quarter of 2019, primarily due to higher
grades and throughput, partially offset by lower recovery .
Stillwater: In the fourth quarter of 2020, the Stillwater mines
produced 3,300 ounces of attributable gold and 5,700 ounces of
attributable palladium, a decrease of approximately 8% for gold and
6% for palladium relative to the fourth quarter of 2019, primarily
due to lower throughput. According to Sibanye-Stillwater Limited's
("Sibanye-Stillwater") Operating and Financial Results for the Six
Month and Year Ended 31 December 2020, throughput was impacted
primarily due to the impact of a spike in COVID-19 infections in
the fourth quarter of 2020 associated with a severe wave of
COVID-19 infections in Montana, USA. Sibanye-Stillwater also
reported that after a review of the Blitz project was conducted
following the suspension of growth capital activities due to
COVID-19, the project is now expected to reach a steady state by
2024, a delay of up to two years. Finally, Sibanye-Stillwater
highlighted that the Fill the Mill expansion project at the East
Boulder mine was completed on schedule in the fourth quarter of
2020.
Constancia: In the fourth quarter of 2020, Constancia produced
0.5 million ounces of attributable silver and 3,900 ounces of
attributable gold, a decrease of approximately 24% and 17%,
respectively, relative to the fourth quarter of 2019, primarily due
to lower grades. As per Wheaton's PMPA with Hudbay Minerals Inc.
("Hudbay"), the failure to achieve a minimum level of throughput at
the Pampacancha deposit during 2019 entitled Wheaton to an
additional 8,020 ounces of gold in 2020 (received in quarterly
installments), of which 2,005 ounces of gold was received during
the fourth quarter of 2020 and included as production. According to
Hudbay's Fourth Quarter MD&A, Hudbay had completed the Consulta
Previa consultation process for Pampacancha and received the final
mining permit for the development and operation of the mine. In
addition, pre-development activities commenced in early January and
pre-stripping activities are expected to begin once the remaining
individual land user agreement has been completed. Hudbay expects
production at Pampacancha to commence later in 2021.
Other Gold : In the fourth quarter of 2020, total Other Gold
attributable production was 3,700 ounces, a decrease of
approximately 41% relative to the fourth quarter of 2019, primarily
due to lower production from the 777 and Minto mines. Hudbay
reported on November 25, 2020, that production at 777 had
recommenced after a temporary interruption due to an incident that
occurred on October 9, 2020, during routine maintenance of the
hoist rope and skip.
Keno Hill Restart : Alexco Resource Corp ("Alexco") reported on
November 24, 2020, that the commissioning of the Keno Hill District
mill is commencing as scheduled, with initial production of
lead/silver and zinc concentrates underway. In order to help
facilitate the resumption of mining, Wheaton agreed to modify the
PMPA as it relates to the delivery payment per ounce of silver in
exchange for 2 million common share purchase warrants from
Alexco.
Produced But Not Yet Delivered [4]
As at December 31, 2020 , payable ounces attributable to the
Company produced but not yet delivered amounted to:
-- 71,600 payable gold ounces, a decrease of 4,200 ounces during
Q4 2020 , primarily due to a reduction during the period relative
to the Minto, 777 and Sudbury mines partially offset by an increase
at the Salobo mine.
-- 4.5 million payable silver ounces, an increase of 1.0 million
ounces during Q4 2020 , primarily due to an increase during the
period relative to the Peñasquito, Yauliyacu and Antamina
mines.
-- 5,600 payable palladium ounces, an increase of 1,000 ounces during Q4 2020 .
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Corporate Development
Marmato Mine: On November 5, 2020, the Company announced that it
had entered into a PMPA with Aris Gold Corporation ("Aris Gold",
formerly Caldas Gold Corp.) with respect to the Marmato Mine
located in Colombia. Under the terms of the Marmato PMPA ([5]) ,
the Company is required to pay Aris Gold total cash consideration
of $110 million, $34 million of which is payable once mining
contract 014-89M is extended, $4 million of which is payable six
months thereafter, and the remaining portion of which is payable
during construction of the Marmato Deep Zone ("MDZ") project,
subject to certain conditions being met. In addition, the Company
will make ongoing payments equal to 18% of the spot gold and silver
price until the market value of gold and silver delivered to the
Company, net of the per ounce cash payment, exceeds the initial
upfront cash deposit, and 22% of the spot gold and silver price
thereafter. The PMPA is effective July 1, 2020, though no
production from Marmato has been included in 2020 operating
results.
Cozamin Mine: On December 11, 2020, the Company announced that
it had entered into a PMPA with Capstone Mining Corp. ("Capstone")
with respect to the Cozamin Mine located in Mexico. Under the terms
of the PMPA, the Company paid Capstone upfront cash consideration
of $150 million upon closing, which occurred on February 19, 2021,
for 50% of the silver production until 10 million ounces ("Moz")
have been delivered, thereafter dropping to 33% of silver
production for the life of the mine. In addition, Wheaton will make
ongoing payments for silver ounces delivered equal to 10% of the
spot silver price. The PMPA is effective December 1, 2020, though
no production from Cozamin has been included in 2020 operating
results.
Reserves and Resources (at December 31, 2020)
-- Proven and Probable Mineral Reserves attributable to Wheaton
were 11.21 million ounces of gold compared with 11.37 million
ounces as reported in Wheaton's 2019 Annual Information Form
("AIF"), a decrease of 1%; 552.9 million ounces of silver compared
with 542.8 million ounces, an increase of 2%; palladium resources
of 0.64 million ounces compared to 0.66 million ounces, a decrease
of 3%; and cobalt of 31.7 million pounds compared to 32.7 million
pounds, a decrease of 3%.
-- Measured and Indicated Mineral Resources attributable to
Wheaton were 4.39 million ounces of gold compared with 2.68 million
ounces as reported in Wheaton's 2019 AIF, an increase of 64%;
silver resources were 743.1 million ounces compared with 736.6
million ounces, an increase of 1%; palladium resources were 0.029
million ounces compared to none in Wheaton's 2019 AIF and cobalt
resources of 1.5 million pounds compared to 1.6, a decrease of
4%.
-- Inferred Mineral Resources attributable to Wheaton were 4.46
million ounces of gold compared with 4.16 million ounces as
reported in Wheaton's 2019 AIF, an increase of 7%; silver resources
were 475.8 million ounces compared with 491.0 million ounces, a
decrease of 3%, palladium resources were 0.37 million ounces
compared with 0.35 million ounces, an increase of 6% and cobalt
resources of 7.6 million pounds compared to 9.3, a decrease of
18%.
Estimated attributable reserves and resources contained in this
press release are based on information available to the Company as
of March 11, 2021, and therefore will not reflect updates, if any,
after that date. Updated reserves and resources data incorporating
year-end 2020 estimates will also be included in the Company's 2020
Annual Information Form. Wheaton's most current attributable
reserves and resources, as of December 31, 2020, can be found on
the Company's website at www.wheatonpm.com.
COVID-19 Community Support and Response Fund
In the second quarter of 2020, Wheaton announced the launch of a
$5 million Community Support and Response Fund (the "CSR Fund") to
support global efforts to combat the COVID-19 pandemic and its
impacts on our communities. The CSR Fund is designed to meet the
immediate needs of the communities in which Wheaton and its mining
partners operate. This fund is incremental to Wheaton's already
active Community Investment Program that currently provides support
to over 50 programs in multiple communities around the world. As of
December 31, 2020, the Company has made donations totalling
approximately $3 million with the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, March 12,
2021 starting at 11:00 am (Eastern Time) 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: 1-888-231-8191
Dial from outside Canada or the US: 1-647-427-7450
Pass code: 3349778
Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the
call.
The conference call will be recorded and available until March
19, 2021 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: 1-855-859-2056
Dial from outside Canada or the US: 1-416-849-0833
Pass code: 3349778
Archived audio webcast: Webcast Link
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 and copies have been
submitted to the National Storage Mechanism and will shortly be
available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
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
.
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
creates sustainable value through streaming.
In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
financial statements, reference to the Company includes the
Company's wholly owned subsidiaries.
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts) 2020 2019
---------------------------------------------------------------- ----------------- ------------
Sales $ 1,096,224 $ 861,332
----------------------------------------------------------------- --- ----------- --------
Cost of sales
Cost of sales, excluding depletion $ 266,763 $ 258,559
Depletion 243,889 256,826
----------------------------------------------------------------------- ----------- --------
Total cost of sales $ 510,652 $ 515,385
----------------------------------------------------------------- --- ----------- --------
Gross margin $ 585,572 $ 345,947
General and administrative expenses 65,698 54,507
Impairment of mineral stream interests - 165,912
----------------------------------------------------------------------- ----------- --------
Earnings from operations $ 519,874 $ 125,528
Other (income) expense (2,170) (274)
----------------------------------------------------------------------- ----------- --------
Earnings before finance costs and income taxes $ 522,044 $ 125,802
Finance costs 16,715 48,730
----------------------------------------------------------------------- ----------- --------
Earnings before income taxes $ 505,329 $ 77,072
Income tax recovery 2,475 9,066
----------------------------------------------------------------------- ----------- --------
Net earnings $ 507,804 $ 86,138
----------------------------------------------------------------- --- ----------- --------
Basic earnings per share $ 1.132 $ 0.193
Diluted earnings per share $ 1.128 $ 0.193
Weighted average number of shares outstanding
Basic 448,694 446,021
Diluted 450,070 446,930
======================================================================= =========== ========
Consolidated Balance Sheets
As at As at
December 31 December 31
(US dollars in thousands) 2020 2019
------------------------------------------------- ---------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 192,683 $ 103,986
Accounts receivable 5,883 7,138
Other 3,265 43,628
------------------------------------------------------- ---------- --- ----------
Total current assets $ 201,831 $ 154,752
------------------------------------------------- ---- ---------- --- ----------
Non-current assets
Mineral stream interests $ 5,488,391 $ 5,734,106
Early deposit mineral stream interests 33,241 31,741
Mineral royalty interest 3,047 3,036
Long-term equity investments 199,878 309,757
Convertible notes receivable 11,353 21,856
Property, plant and equipment 6,289 7,311
Other 13,242 15,448
------------------------------------------------------- ---------- --- ----------
Total non-current assets $ 5,755,441 $ 6,123,255
------------------------------------------------- ---- ---------- --- ----------
Total assets $ 5,957,272 $ 6,278,007
------------------------------------------------- ---- ---------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 13,023 $ 11,794
Current portion of performance share units 17,297 10,668
Current portion of lease liabilities 773 724
Other 76 41,514
Total current liabilities $ 31,169 $ 64,700
------------------------------------------------- ---- ---------- --- ----------
Non-current liabilities
Bank debt $ 195,000 $ 874,500
Lease liabilities 2,864 3,528
Deferred income taxes 214 148
Performance share units 11,784 8,401
Pension liability 1,670 810
------------------------------------------------------- ---------- --- ----------
Total non-current liabilities $ 211,532 $ 887,387
------------------------------------------------- ---- ---------- --- ----------
Total liabilities $ 242,701 $ 952,087
------------------------------------------------- ---- ---------- --- ----------
Shareholders' equity
Issued capital $ 3,646,291 $ 3,599,203
Reserves 126,882 160,701
Retained earnings 1,941,398 1,566,016
------------------------------------------------------- ---------- --- ----------
Total shareholders' equity $ 5,714,571 $ 5,325,920
------------------------------------------------- ---- ---------- --- ----------
Total liabilities and shareholders' equity $ 5,957,272 $ 6,278,007
------------------------------------------------- ---- ---------- --- ----------
Consolidated Statements of Cash Flows
Years Ended December
31
(US dollars in thousands) 2020 2019
--------------------------------------------------- --------------- --------------
Operating activities
Net earnings $ 507,804 $ 86,138
Adjustments for
Depreciation and depletion 245,779 258,730
Gain on disposal of mineral royalty interest - (2,929)
Impairment charges - 165,912
Interest expense 12,366 44,942
Equity settled stock based compensation 5,432 5,691
Performance share units 9,398 7,834
Pension expense 806 810
Income tax expense (recovery) (2,475) (9,066)
Loss (gain) on fair value adjustment of
share purchase warrants held (337) 16
Fair value (gain) loss on convertible
note receivable (1,899) 1,043
Investment income recognized in net earnings (230) (875)
Other 1,487 1,833
Change in non-cash working capital 1,025 (11,837)
========================================================= ========== ==========
Cash generated from operations before
income taxes and interest $ 779,156 $ 548,242
Income taxes recovered (paid) 49 (5,380)
Interest paid (13,992) (42,059)
Interest received 229 817
========================================================= ========== ==========
Cash generated from operating activities $ 765,442 $ 501,620
==================================================== ========== ==========
Financing activities
Bank debt repaid $ (679,500) $ (389,500)
Credit facility extension fees (1,373) (1,106)
Share purchase options exercised 21,892 37,038
Lease payments (704) (637)
Dividends paid (167,212) (129,986)
========================================================= ========== ==========
Cash (used for) generated from financing
activities $ (826,897) $ (484,191)
==================================================== ========== ==========
Investing activities
Mineral stream interests $ (322) $ (183)
Early deposit mineral stream interests (1,500) (1,500)
Proceeds on disposal of mineral royalty
interest - 9,000
Acquisition of long-term investments (10,671) (909)
Acquisition of convertible note receivable - (10,000)
Proceeds on disposal of long-term investments 162,942 17,824
Dividend income received - 59
Other (801) (3,661)
========================================================= ========== ==========
Cash generated from (used for) investing
activities $ 149,648 $ 10,630
==================================================== ========== ==========
Effect of exchange rate changes on cash
and cash equivalents $ 504 $ 160
==================================================== ========== ==========
Increase in cash and cash equivalents $ 88,697 $ 28,219
Cash and cash equivalents, beginning of
year 103,986 75,767
========================================================= ========== ==========
Cash and cash equivalents, end of year $ 192,683 $ 103,986
---------------------------------------------------- ---------- ----------
Summary of Ounces Produced
Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Gold ounces
produced (2)
Salobo 62,854 63,408 59,104 62,575 74,716 73,615 67,056 60,846
Sudbury (3) 7,757 3,798 9,257 7,795 6,468 6,082 9,360 11,374
Constancia (8) 3,929 3,780 3,470 3,681 4,757 5,172 4,533 4,826
San Dimas (4, 8) 11,652 9,228 6,074 11,318 11,352 11,239 11,496 10,290
Stillwater (5) 3,290 3,176 3,222 2,955 3,585 3,238 3,675 3,137
Other
Minto (6) 789 1,832 2,928 2,124 2,189 - - -
777 (9) 2,866 5,278 4,728 4,551 3,987 4,278 4,788 4,445
Total Other 3,655 7,110 7,656 6,675 6,176 4,278 4,788 4,445
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Total gold ounces
produced 93,137 90,500 88,783 94,999 107,054 103,624 100,908 94,918
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Silver ounces
produced (2)
Peñasquito
(8) 2,014 1,992 967 2,658 1,895 2,026 702 1,594
Antamina (8) 1,930 1,516 612 1,311 1,342 1,223 1,334 1,176
Constancia (8) 478 430 254 461 632 686 552 635
Other
Los Filos
(8) 6 17 14 29 55 33 37 38
Zinkgruvan 515 498 389 662 670 587 590 451
Yauliyacu
(8) 454 679 273 557 358 620 627 528
Stratoni 185 156 148 183 147 131 172 143
Minto (6) 16 15 19 18 18 - - -
Neves-Corvo 420 281 479 377 385 431 392 498
Aljustrel 440 348 388 352 325 240 322 470
777 (9) 51 96 108 96 81 62 93 95
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Total Other 2,087 2,090 1,818 2,274 2,039 2,104 2,233 2,223
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Total silver
ounces produced 6,509 6,028 3,651 6,704 5,908 6,039 4,821 5,628
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 5,672 5,444 5,759 5,312 6,057 5,471 5,736 4,729
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
GEOs produced (7) 178,801 170,100 140,279 182,533 186,027 183,394 166,399 168,759
SEOs produced (7) 14,900 14,175 11,690 15,211 15,502 15,283 13,867 14,063
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
Average payable
rate (2)
Gold 95.2% 95.3% 94.7% 95.1% 95.6% 95.1% 95.3% 95.6%
Silver 86.3% 86.1% 81.9% 85.6% 85.3% 85.1% 83.3% 82.9%
Palladium 98.2% 97.0% 86.5% 93.0% 99.4% 83.5% 87.6% 98.5%
GEO (7) 91.5% 91.4% 90.2% 90.8% 91.9% 90.7% 90.8% 90.7%
------------------ ------------------- --------------- ---------------- ---------------- --------------- ----------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces produced.
2) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures and average 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 or 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. Effective April 1, 2020, the fixed gold to silver
exchange ratio was revised to 90:1, with the 70:1 ratio being
reinstated on October 15, 2020. For reference, attributable silver
production from prior periods is as follows: Q4-2020 - 476,000;
Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces; Q1-2020 -
419,000 ounces; Q4-2019 - 415,000 ounces; Q3-2019 - 410,000 ounces;
Q2-2019 - 401,000 ounces; and Q1-2019 - 351,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) The Minto mine was placed into care and maintenance from October 2018 to October 2019.
7) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
8) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted. Additionally, operations at Los Filos were
suspended from September 3, 2020 to December 23, 2020 as the result
of an illegal road blockade by members of the nearby Carrizalillo
community.
9) 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.
Summary of Ounces Sold
Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 Q2 2019 Q1 2019
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Gold ounces sold
Salobo 53,197 59,584 68,487 74,944 58,137 63,064 57,715 84,160
Sudbury (2) 7,620 7,858 7,414 4,822 7,394 7,600 8,309 4,061
Constancia (7) 3,853 4,112 3,024 3,331 5,108 4,742 4,409 5,512
San Dimas (7) 11,529 9,687 6,030 11,358 11,499 11,374 10,284 11,510
Stillwater (3) 3,069 3,015 3,066 3,510 2,925 3,314 3,301 2,856
Other
Minto (4) 1,540 - - - - - 765 3,307
777 5,435 5,845 4,783 2,440 4,160 4,672 5,294 3,614
Total Other 6,975 5,845 4,783 2,440 4,160 4,672 6,059 6,921
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Total gold ounces
sold 86,243 90,101 92,804 100,405 89,223 94,766 90,077 115,020
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Silver ounces sold
Peñasquito
(7) 1,417 1,799 1,917 2,310 1,268 1,233 912 1,164
Antamina (7) 1,669 1,090 788 1,244 1,227 1,059 1,186 1,255
Constancia (7) 442 415 254 350 672 521 478 735
Other
Los Filos
(7) - 19 25 37 26 44 26 38
Zinkgruvan 326 492 376 447 473 459 337 232
Yauliyacu
(7) 15 580 704 9 561 574 542 15
Stratoni 169 134 77 163 120 126 240 80
Minto (4) 20 - - - - - 2 30
Neves-Corvo 145 201 236 204 154 243 194 265
Aljustrel 280 148 252 123 121 139 216 381
777 93 121 100 41 62 86 108 99
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Total Other 1,048 1,695 1,770 1,024 1,517 1,671 1,665 1,140
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Total silver
ounces sold 4,576 4,999 4,729 4,928 4,684 4,484 4,241 4,294
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Palladium ounces
sold
Stillwater (3) 4,591 5,546 4,976 4,938 5,312 4,907 5,273 5,189
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
GEOs sold (5) 147,277 157,478 156,188 166,121 152,514 155,116 148,004 173,464
SEOs sold (5) 12,273 13,123 13,016 13,843 12,709 12,926 12,334 14,455
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
Cumulative payable
ounces PBND (6)
Gold 71,590 75,750 79,632 88,383 98,475 85,335 81,535 75,236
Silver 4,486 3,437 3,222 4,961 4,142 3,796 3,102 3,315
Palladium 5,597 4,616 4,883 4,875 4,872 4,163 4,504 4,754
GEO (5) 132,882 123,154 124,809 154,420 154,672 136,441 124,765 121,349
SEO (5) 11,073 10,263 10,401 12,868 12,889 11,370 10,397 10,112
------------------ -------------------- ----------------- ------------------ ------------------ ----------------- ----------------- ---------------- ---------------
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) The Minto mine was placed into care and maintenance from October 2018 to October 2019.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
6) Payable gold, silver and palladium ounces produced but not
yet delivered ("PBND") are based on management estimates. These
figures may be updated in future periods as additional information
is received.
7) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended December 31, 2020
----------------------------------------------------------------------------------------------------------------------------
Average Average Average
Realized Cash Cost Depletion Cash Flow
Ounces Ounces Price ($'s Per ($'s Per Net From Total
Produced(2) Sold ($'s Per Ounce) Ounce)(3) Ounce) Sales Earnings Operations Assets
------------------ ----------- ------ ----------------- --------- --------- -------- -------- ---------- ----------
Gold
Salobo 62,854 53,197 $ 1,881 $ 408 $ 374 $100,047 $ 58,426 $ 74,508 $2,509,344
Sudbury (4) 7,757 7,620 1,888 400 831 14,384 5,000 11,336 321,016
Constancia 3,929 3,853 1,881 408 338 7,246 4,373 5,674 105,569
San Dimas 11,652 11,529 1,881 612 315 21,683 10,993 12,812 182,202
Stillwater 3,290 3,069 1,881 338 449 5,772 3,357 4,735 224,310
Other (5) 3,655 6,975 1,888 421 238 13,167 8,576 10,241 7,526
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
93,137 86,243 $ 1,882 $ 433 $ 397 $162,299 $ 90,725 $ 119,306 $3,349,967
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
Silver
Peñasquito 2,014 1,417 $ 24.44 $ 4.26 $ 3.24 $ 34,629 $ 23,997 $ 28,592 $ 350,572
Antamina 1,930 1,669 24.44 4.86 8.74 40,782 18,079 32,667 626,934
Constancia 478 442 24.44 6.02 7.63 10,805 4,770 8,143 217,044
Other (6) 2,087 1,048 25.69 8.03 1.00 26,915 17,456 20,804 474,975
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
6,509 4,576 $ 24.72 $ 5.51 $ 5.16 $113,131 $ 64,302 $ 90,206 $1,669,525
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
Palladium
Stillwater 5,672 4,591 $ 2,348 $ 423 $ 428 $ 10,782 $ 6,875 $ 8,840 $ 241,389
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
Operating results $286,212 $161,902 $ 218,352 $5,488,391
------------------------------- ------ ------------- -------- -------- ------- ------- --------- ---------
Other
General and administrative $(9,391) $ (8,384)
Finance costs (2,196) (1,980)
Other 830 (5)
Income tax 6,076 (21)
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
Total other $(4,681) $ (10,390) $ 468,881
--------------------------------------- ------------- -------- -------- ------- ------- --------- ---------
$157,221 $ 207,962 $5,957,272
------------------ ----------- ------ ------------- -------- -------- ------- ------- --------- ---------
1) All figures in thousands except gold and palladium ounces
produced and sold and per ounce amounts.
2) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating 777 and Minto gold interests, the
non-operating Rosemont gold interest and the newly acquired Marmato
gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill and 777 silver
interests, the non-operating Loma de La Plata, Pascua-Lama and
Rosemont silver interests and the newly acquired Marmato and
Cozamin silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended December 31, 2020 were as
follows:
Three Months Ended December 31, 2020
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 178,801 147,277 $ 1,943 $ 438 $ 1,505 $ 406 $ 1,099
Silver
equivalent
basis (5) 14,900 12,273 $ 23.32 $ 5.26 $ 18.06 $ 4.87 $ 13.19
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
Three Months Ended December 31, 2019
-----------------------------------------------------------------------------------------------------------------------------
Average Average Average
Realized Cash Cost Depletion Cash Flow
Ounces Ounces Price ($'s Per ($'s Per Net From Total
Produced(2) Sold ($'s Per Ounce) Ounce)(3) Ounce) Sales Earnings Operations Assets
------------------ ----------- ------ ----------------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 74,716 58,137 $ 1,484 $ 404 $ 383 $ 86,252 $ 40,488 $ 55,963 $2,605,257
Sudbury (4) 6,468 7,394 1,481 400 819 10,952 1,936 8,342 344,043
Constancia 4,757 5,108 1,484 404 361 7,578 3,670 5,345 110,406
San Dimas 11,352 11,499 1,484 606 310 17,059 6,531 7,962 194,367
Stillwater 3,585 2,925 1,484 268 519 4,339 2,038 3,556 229,994
Other (5) 6,176 4,160 1,481 420 462 6,162 2,492 4,413 13,168
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
107,054 89,223 $ 1,483 $ 426 $ 417 $132,342 $ 57,155 $ 85,581 $3,497,235
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 1,895 1,268 $ 17.33 $ 4.21 $ 3.06 $ 21,974 $ 12,752 $ 16,636 $ 374,702
Antamina 1,342 1,227 17.33 3.46 8.73 21,262 6,308 16,730 668,810
Constancia 632 672 17.33 5.96 7.50 11,641 2,598 6,348 228,187
Other (6) 2,039 1,517 17.41 6.90 2.86 26,419 11,619 13,578 487,693
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
5,908 4,684 $ 17.36 $ 5.13 $ 5.12 $ 81,296 $ 33,277 $ 53,292 $1,759,392
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 6,057 5,312 $ 1,804 $ 321 $ 470 $ 9,584 $ 5,381 $ 7,877 $ 249,969
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
Operating results $223,222 $ 95,813 $ 146,750 $5,734,106
------------------------------- ------ ------------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(11,695) $ (5,709)
Finance costs (9,607) (9,537)
Other (435) 409
Income tax 3,448 (46)
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
Total other $(18,289) $ (14,883) $ 543,901
--------------------------------------- ------------- -------- -------- ------- -------- --------- ---------
$ 77,524 $ 131,867 $6,278,007
------------------ ----------- ------ ------------- -------- -------- ------- -------- --------- ---------
1) All figures in thousands except gold and palladium ounces
produced and sold and per ounce amounts.
2) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto and 777 gold interests in
addition to the non-operating Rosemont gold interest. The Minto
mine was placed into care and maintenance from October 2018 to
October 2019.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto and 777 silver interests as
well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama
and Rosemont silver interests. The Minto mine was placed into care
and maintenance from October 2018 to October 2019.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended December 31, 2019 were as
follows:
Three Months Ended December 31, 2019
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 186,027 152,514 $ 1,464 $ 418 $ 1,046 $ 417 $ 629
Silver
equivalent
basis (5) 15,502 12,709 $ 17.56 $ 5.02 $ 12.54 $ 5.01 $ 7.53
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
Year Ended December 31, 2020
--------------------------------------------------------------------------------------------------------------------------------
Average Average Average
Realized Cash Cost Depletion Cash Flow
Ounces Ounces Price ($'s Per ($'s Per Net From Total
Produced(2) Sold ($'s Per Ounce) Ounce)(3) Ounce) Sales Earnings Operations Assets
------------------ ----------- ------- ----------------- --------- --------- ---------- --------- ---------- ----------
Gold
Salobo 247,941 256,212 $ 1,757 $ 408 $ 374 $ 450,166 $ 249,708 $ 345,621 $2,509,344
Sudbury (4) 28,607 27,714 1,797 400 831 49,791 15,679 38,609 321,016
Constancia 14,860 14,320 1,785 406 338 25,556 14,907 19,744 105,569
San Dimas 38,272 38,604 1,775 610 315 68,519 32,813 44,978 182,202
Stillwater 12,643 12,660 1,766 316 449 22,353 12,666 18,351 224,310
Other (5) 25,096 20,043 1,818 421 281 36,442 22,357 28,007 7,526
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
367,419 369,553 $ 1,767 $ 426 $ 399 $ 652,827 $ 348,130 $ 495,310 $3,349,967
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
Silver
Peñasquito 7,631 7,443 $ 20.25 $ 4.26 $ 3.24 $ 150,720 $ 94,886 $ 119,016 $ 350,572
Antamina 5,369 4,791 21.34 4.19 8.74 102,241 40,312 82,188 626,934
Constancia 1,623 1,461 21.42 5.99 7.63 31,285 11,397 22,541 217,044
Other (6) 8,269 5,537 20.84 7.41 1.97 115,379 63,460 74,159 474,975
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
22,892 19,232 $ 20.78 $ 5.28 $ 4.58 $ 399,625 $ 210,055 $ 297,904 $1,669,525
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
Palladium
Stillwater 22,187 20,051 $ 2,183 $ 389 $ 428 $ 43,772 $ 27,387 $ 35,967 $ 241,389
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
Operating results $1,096,224 $ 585,572 $ 829,181 $5,488,391
------------------------------- ------- ------------- -------- -------- --------- -------- --------- ---------
Other
General and administrative $(65,698) $ (46,914)
Finance costs (16,715) (17,551)
Other 2,170 677
Income tax 2,475 49
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
Total other $(77,768) $ (63,739) $ 468,881
---------------------------------------- ------------- -------- -------- --------- -------- --------- ---------
$ 507,804 $ 765,442 $5,957,272
------------------ ----------- ------- ------------- -------- -------- --------- -------- --------- ---------
1) All figures in thousands except gold and palladium ounces
produced and sold and per ounce amounts.
2) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating 777 and Minto gold interests, the
non-operating Rosemont gold interest and the newly acquired Marmato
gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill and 777 silver
interests, the non-operating Loma de La Plata, Pascua-Lama and
Rosemont silver interests and the newly acquired Marmato and
Cozamin silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2020 were as
follows:
Year Ended December 31, 2020
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 671,713 627,063 $ 1,748 $ 425 $ 1,323 $ 389 $ 934
Silver equivalent
basis (5) 55,976 52,255 $ 20.98 $ 5.10 $ 15.88 $ 4.67 $ 11.21
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
Year Ended December 31, 2019
------------------------------------------------------------------------------------------------------------------------------------------------------
Average Average Average
Realized Cash Cost Depletion Cash Flow
Ounces Ounces Price ($'s Per ($'s Per Gross Impairment Net From Total
Produced(2) Sold ($'s Per Ounce) Ounce)(3) Ounce) Sales Margin Charges (4) Earnings Operations Assets
------------------ ----------- ------- ----------------- --------- --------- -------- -------- ----------- ---------- ---------- ----------
Gold
Salobo 276,233 263,076 $ 1,389 $ 404 $ 383 $365,448 $158,363 $ - $ 158,363 $ 259,166 $2,605,257
Sudbury (5) 33,284 27,364 1,397 400 819 38,234 4,868 - 4,868 27,385 344,043
Constancia 19,288 19,771 1,397 402 361 27,613 12,527 - 12,527 19,668 110,406
San Dimas 44,377 44,667 1,400 604 310 62,528 21,706 - 21,706 35,534 194,367
Stillwater 13,635 12,396 1,396 250 519 17,303 7,776 - 7,776 14,209 229,994
Other (6) 19,687 21,812 1,372 401 376 29,919 12,992 - 12,992 21,561 13,168
406,504 389,086 $ 1,391 $ 421 $ 408 $541,045 $218,232 $ - $ 218,232 $ 377,523 $3,497,235
------------------ ----------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
Silver
Peñasquito 6,217 4,577 $ 16.30 $ 4.21 $ 3.06 $ 74,578 $ 41,291 $ - $ 41,291 $ 55,310 $ 374,702
Antamina 5,075 4,727 16.15 3.24 8.73 76,328 19,739 - 19,739 61,007 668,810
Constancia 2,505 2,406 16.17 5.93 7.50 38,895 6,593 - 6,593 24,637 228,187
Other (7) 8,599 5,993 16.45 6.68 2.50 98,600 43,581 - 43,581 55,509 487,693
22,396 17,703 $ 16.29 $ 5.02 $ 4.99 $288,401 $111,204 $ - $ 111,204 $ 196,463 $1,759,392
------------------ ----------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
Palladium
Stillwater 21,993 20,681 $ 1,542 $ 273 $ 470 $ 31,886 $ 16,511 $ - $ 16,511 $ 26,230 $ 249,969
------------------ ----------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ (165,912) $(165,912) $ - $ 227,510
------------------ ----------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
Operating results $861,332 $345,947 $ (165,912) $ 180,035 $ 600,216 $5,734,106
------------------------------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
Other
General and administrative $ (54,507) $ (46,292)
Finance costs (48,730) (44,733)
Other 274 (2,191)
Income tax 9,066 (5,380)
Total other $ (93,897) $ (98,596) $ 543,901
---------------------------------------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
$ 86,138 $ 501,620 $6,278,007
------------------ ----------- ------- ------------- -------- -------- ------- ------- ---------- --------- --------- ---------
1) All figures in thousands except gold and palladium ounces
produced and sold and per ounce amounts.
2) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to page 24 of the Company's MD&A for more information.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
6) Comprised of the operating Minto and 777 gold interests in
addition to the non-operating Rosemont gold interest. The Minto
mine was placed into care and maintenance from October 2018 to
October 2019.
7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Aljustrel, Neves-Corvo, Minto and 777 silver interests as
well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama
and Rosemont silver interests. The Minto mine was placed into care
and maintenance from October 2018 to October 2019.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2019 were as
follows:
Year Ended December 31, 2019
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 704,579 629,098 $ 1,369 $ 411 $ 958 $ 408 $ 550
Silver equivalent
basis (5) 58,715 52,425 $ 16.43 $ 4.93 $ 11.50 $ 4.90 $ 6.60
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,500 per
ounce gold; $18.00 per ounce silver; and $2,000 per ounce
palladium, consistent with those used in estimating the Company's
production guidance for 2020.
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; (iv) cash operating margin; and (v)
net debt.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of the non-cash impairment
charges, non-cash fair value (gains) losses and other one-time
(income) expenses as well as the reversal of non-cash income tax
expense (recovery) which is offset by income tax expense (recovery)
recognized in the Statements of Shareholders' Equity and OCI,
respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net
earnings and adjusted net earnings per share (basic and
diluted).
Three Months Ended Years Ended
December 31 December 31
(in thousands, except for per share amounts) 2020 2019 2020 2019
----------------------------------------------------------- ------------ -------- -------- --------
Net earnings $ 157,221 $ 77,524 $507,804 $ 86,138
Add back (deduct):
Impairment loss - - - 165,912
(Gain) loss on fair value adjustment of share purchase
warrants held (1,182) 10 (338) 16
(Gain) loss on fair value adjustment of convertible notes
receivable (517) 366 (1,899) 1,043
Gain on disposal of mineral royalty interest - - - (2,929)
Income tax expense (recovery) recognized in the Statement
of Shareholders' Equity 911 1,409 (820) 376
Income tax expense (recovery) recognized in the Statement
of OCI (7,011) (4,889) (1,866) (9,623)
Other 19 53 454 1,812
------------------------------------------------------------ -------- ------- ------- -------
Adjusted net earnings $ 149,441 $ 74,473 $503,335 $242,745
------------------------------------------------------------ -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 449,320 447,475 448,694 446,021
Diluted weighted average number of shares outstanding 450,980 448,426 450,070 446,930
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Adjusted earnings per share - basic $ 0.333 $ 0.166 $ 1.122 $ 0.544
Adjusted earnings per share - diluted $ 0.331 $ 0.166 $ 1.118 $ 0.543
------------------------------------------------------------ -------- ------- ------- -------
ii. Operating cash flow per share (basic and diluted) is
calculated by dividing cash generated by operating activities by
the weighted average number of shares outstanding (basic and
diluted). The Company presents operating cash flow per share as
management and certain investors use this information to evaluate
the Company's performance in comparison to other companies in the
precious metal mining industry who present results on a similar
basis.
The following table provides a reconciliation of operating cash
flow per share (basic and diluted).
Three Months Ended Years Ended
December 31 December 31
(in thousands, except for per
share amounts) 2020 2019 2020 2019
--------------------------------------- ------------ -------- -------- --------
Cash generated by operating activities $ 207,962 $131,867 $765,442 $501,620
---------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number
of shares outstanding 449,320 447,475 448,694 446,021
Diluted weighted average number
of shares outstanding 450,980 448,426 450,070 446,930
---------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share
- basic $ 0.463 $ 0.295 $ 1.706 $ 1.125
Operating cash flow per share
- diluted $ 0.461 $ 0.294 $ 1.701 $ 1.122
---------------------------------------- -------- ------- ------- -------
iii. Average cash cost of gold, silver and palladium on a per
ounce basis is calculated by dividing the total cost of sales, less
depletion, by the ounces 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 reconciliation of average cash
cost of gold, silver and palladium on a per ounce basis.
Three Months Ended Years Ended
December 31 December 31
(in thousands, except for gold
and palladium ounces sold and
per ounce amounts) 2020 2019 2020 2019
------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 124,310 $ 127,409 $ 510,652 $ 515,385
Less: depletion (59,785) (63,646) (243,889) (256,826)
-------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 64,525 $ 63,763 $ 266,763 $ 258,559
-------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised
of:
Total cash cost of gold sold $ 37,355 $ 38,008 $ 157,429 $ 163,997
Total cash cost of silver sold 25,228 24,048 101,529 88,906
Total cash cost of palladium sold 1,942 1,707 7,805 5,656
-------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 64,525 $ 63,763 $ 266,763 $ 258,559
-------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 86,243 89,223 369,553 389,086
Total silver ounces sold 4,576 4,684 19,232 17,703
Total palladium ounces sold 4,591 5,312 20,051 20,681
-------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per
ounce) $ 433 $ 426 $ 426 $ 421
Average cash cost of silver (per
ounce) $ 5.51 $ 5.13 $ 5.28 $ 5.02
Average cash cost of palladium
(per ounce) $ 423 $ 321 $ 389 $ 273
-------------------------------------- -------- -------- --------- ---------
iv. Cash operating margin is calculated by subtracting the
average cash cost of gold, silver and palladium on a per ounce
basis from the average realized selling price of gold, silver and
palladium on a per ounce basis. The Company presents cash operating
margin as management and certain investors use this information to
evaluate the Company's performance in comparison to other companies
in the precious metal mining industry who present results on a
similar basis as well as to evaluate the Company's ability to
generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended Years Ended
December 31 December 31
(in thousands, except for gold and palladium ounces sold
and per ounce amounts) 2020 2019 2020 2019
=========================================================== ============ ======== ======== ========
Total sales:
Gold $ 162,299 $132,342 $652,827 $541,045
Silver $ 113,131 $ 81,296 $399,625 $288,401
Palladium $ 10,782 $ 9,584 $ 43,772 $ 31,886
Divided by:
Total gold ounces sold 86,243 89,223 369,553 389,086
Total silver ounces sold 4,576 4,684 19,232 17,703
Total palladium ounces sold 4,591 5,312 20,051 20,681
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Average realized price of gold (per ounce) $ 1,882 $ 1,483 $ 1,767 $ 1,391
Average realized price of silver (per ounce) $ 24.72 $ 17.36 $ 20.78 $ 16.29
Average realized price of palladium (per ounce) $ 2,348 $ 1,804 $ 2,183 $ 1,542
Less:
Average cash cost of gold (1) (per ounce) $ (433) $ (426) $ (426) $ (421)
Average cash cost of silver (1) (per ounce) $ (5.51) $ (5.13) $ (5.28) $ (5.02)
Average cash cost of palladium (1) (per ounce) $ (423) $ (321) $ (389) $ (273)
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,449 $ 1,057 $ 1,341 $ 970
As a percentage of realized price of gold 77% 71% 76% 70%
Cash operating margin per silver ounce sold $ 19.21 $ 12.23 $ 15.50 $ 11.27
As a percentage of realized price of silver 78% 70% 75% 69%
Cash operating margin per palladium ounce sold $ 1,925 $ 1,483 $ 1,794 $ 1,269
As a percentage of realized price of palladium 82% 82% 82% 82%
------------------------------------------------------------ -------- ------- ------- -------
1) Please refer to non-IFRS measure (iii), above.
v. Net debt is calculated by subtracting cash and cash
equivalents from the outstanding bank debt under the Revolving
Facility. The Company presents net debt as management and certain
investors use this information to evaluate the Company's liquidity
and financial position.
The following table provides a calculation of the Company's net
debt.
As at As at
December December
31 31
(in thousands) 2020 2019
--------------------------------- --------------- --------------
Bank debt $ 195,000 $ 874,500
Less: cash and cash equivalents (192,683) (103,986)
-------------------------------------- ---------- ----------
Net debt $ 2,317 $ 770,514
--------------------------------- --- ---------- ----------
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, the payment of $110 million to
Aris Gold and the satisfaction of each party's obligations in
accordance with the Marmato PMPA, the receipt by the Company of
silver and gold production in respect of the Marmato mine, , the
future sales of Common Shares under, the amount of net proceeds
from and the use of the net proceeds from, the Company's
at-the-market equity program (the "ATM Program"), statements with
respect to the future price of commodities, the impact of epidemics
(including the COVID-19 virus pandemic), including the potential
heightening of other risks, 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 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, the
costs of future production, the estimation of produced but not yet
delivered ounces, the impact of the listing of the Company's common
shares on the LSE, any statements as to future dividends, the
ability to fund outstanding commitments and the ability to continue
to acquire accretive PMPAs, future payments by the Company in
accordance with PMPAs, including any acceleration of payments,
projected increases to Wheaton's production and cash flow profile,
projected changes to Wheaton's production mix, the ability of
Wheaton's PMPA counterparties to comply with the terms of any other
obligations under agreements with the Company, the ability to sell
precious metals and cobalt production, confidence in the Company's
business structure, the Company's assessment of taxes payable and
the impact of the CRA Settlement for years subsequent to 2010,
possible audits for taxation years subsequent to 2015, the
Company's assessment of the impact of any tax reassessments, the
Company's intention to file future tax returns in a manner
consistent with the CRA Settlement, listing of the Company's Common
Shares on the LSE, NYSE or TSX, and assessments of the impact and
resolution of various legal and tax matters, including but not
limited to outstanding class actions and 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 any specific risks
relating to the satisfaction of each party's obligations in
accordance with the terms of the Marmato PMPA, risks associated
with the sale of any common shares under the ATM Program including
the amount of any net proceeds from such offering of common shares
and the use of such proceeds, 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
relying on the accuracy of the public disclosure and other
information Wheaton receives from the Mining Operations,
uncertainty in the estimation of production from Mining Operations,
uncertainty in the accuracy of mineral reserve and mineral resource
estimation, the ability of each party to satisfy their obligations
in accordance with the terms of the PMPAs, the estimation of future
production from Mining Operations, Wheaton's interpretation of,
compliance with or application of, tax laws and regulations or
accounting policies and rules being found to be incorrect, any
challenge or reassessment by the CRA of the Company's tax filings
being successful and the potential negative impact to the Company's
previous and future tax filings, assessing the impact of the CRA
Settlement for years subsequent to 2010 (including whether there
will be any material change in the Company's facts or change in law
or jurisprudence), credit and liquidity, indebtedness and
guarantees, mine operator concentration, 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
and 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 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, Wheaton
and the Mining Operations ability to obtain adequate financing, the
Mining Operations ability to complete permitting, construction,
development and expansion, global financial conditions, 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 , Wheaton's Form 40-F for the
year ended December 31, 2019 and Form 6-K filed March 11, 2020 both
on file with the U.S. Securities and Exchange Commission on EDGAR
and Wheaton's Management's Discussion and Analysis for the three
months ended March 31, 2020 and nine months ended September 30,
2020, both available on SEDAR at www.sedar.com and Form 6-Ks filed
May 7, 2020 and November 9, 2020, both available on EDGAR (the
"Disclosure"). Forward-looking statements are based on assumptions
management currently believes to be reasonable, including (without
limitation): the payment of $110 million to Aris Gold and the
satisfaction of each party's obligations in accordance with the
terms of the Marmato PMPA , that there will be no material adverse
change in the market price of commodities, that neither Wheaton nor
the Mining Operations will suffer significant impacts as a result
of an epidemic (including the COVID-19 virus pandemic), 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 reserve 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 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, that the sale of common shares
under the ATM Program will not have a significant impact on the
market price of the Company's common shares 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 class action
litigation and CRA audits involving the Company), that Wheaton has
properly considered the interpretation and application of Canadian
tax law to its structure and operations, that Wheaton has filed its
tax returns and paid applicable
taxes in compliance with Canadian tax law, that Wheaton's
application of the CRA Settlement for years subsequent to 2010 is
accurate (including the Company's assessment that there will be no
material change in the Company's facts or change in law or
jurisprudence for years subsequent to 2010), and such other
assumptions and factors as set out in the Disclosure. There can be
no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
Cautionary Language Regarding Reserves And Resources
For further information on Mineral Reserves and Mineral
Resources and on Wheaton more generally, readers should refer to
Wheaton's Annual Information Form for the year ended December 31,
2019 and other continuous disclosure documents filed by Wheaton
since January 1, 2020, available on SEDAR at www.sedar.com.
Wheaton's Mineral Reserves and Mineral Resources are subject to the
qualifications and notes set forth therein. Mineral Resources which
are not Mineral Reserves do not have demonstrated economic
viability.
Cautionary Note to United States Investors Concerning Estimates
of Measured, Indicated and Inferred Resources: The information
contained herein has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of United States securities laws. The
terms "mineral reserve", "proven mineral reserve" and "probable
mineral reserve" are Canadian mining terms defined in accordance
with Canadian National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101") and the Canadian Institute of
Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended (the "CIM Standards"). In addition, the
terms "mineral resource", "measured mineral resource", "indicated
mineral resource" and "inferred mineral resource" are defined in
and required to be disclosed by NI 43-101. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves. "Inferred mineral
resources" have a great amount of uncertainty as to their existence
and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that all or any part of an
inferred mineral resource exists or is economically or legally
mineable. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. Disclosure of "contained
ounces" in a resource is permitted disclosure under Canadian
regulations. The SEC has adopted amendments to its disclosure rules
to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the U.S.
Securities Exchange Act of 1934, as amended (the "Exchange Act").
These amendments became effective February 25, 2019 (the "SEC
Modernization Rules") with compliance required for the first fiscal
year beginning on or after January 1, 2021. Under the SEC
Modernization Rules, the historical property disclosure
requirements for mining registrants included in SEC Industry Guide
7 will be rescinded and replaced with disclosure requirements in
subpart 1300 of SEC Regulation S-K. Following the transition
period, as a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101. As a
result of the adoption of the SEC Modernization Rules, the SEC will
recognize estimates of "measured mineral resources", "indicated
mineral resources" and "inferred mineral resources." In addition,
the SEC has amended its definitions of "proven mineral reserves"
and "probable mineral reserves" to be "substantially similar" to
the corresponding definitions under the CIM Definition Standards
that are required under NI 43-101. However, while the above terms
are "substantially similar" to CIM Definition Standards, there are
differences in the definitions under the SEC Modernization Rules
and the CIM Definition Standards. Accordingly, there is no
assurance any mineral reserves or mineral resources that the
Company may report as "proven mineral reserves", "probable mineral
reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules. Accordingly, information contained herein that describes
Wheaton's mineral deposits may not be comparable to similar
information made public by U.S. companies subject to reporting and
disclosure requirements under the United States federal securities
laws and the rules and regulations thereunder. United States
investors are urged to consider closely the disclosure in Wheaton's
Form 40-F, a copy of which may be obtained from Wheaton or from
http://www.sec.gov/edgar.shtml.
In accordance with the Company's MD&A and financial
statements, reference to the Company includes the Company's wholly
owned subsidiaries.
For further information, please contact:
Patrick Drouin or Emma Murray
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.
[2] Commodity price assumptions for the gold equivalent
production and sales in 2020 are $1,500 / ounce gold, $18 / ounce
silver, and $2,000 / ounce palladium.
[3] Gold equivalent forecast production for 2021 and the longer
term outlook are based on the following commodity price
assumptions: $1,800 / ounce gold, $25 / ounce silver, $2,300 /
ounce palladium, and $17.75 / pound of cobalt. Other metal includes
palladium and cobalt. Five- and ten-year guidance do not include
optionality production from Pascua Lama, Navidad, Cotabambas, or
additional expansions at Salobo outside of project currently in
construction. In addition, five-year guidance also does not include
any production from Rosemont, Toroparu, Kutcho, or the Victor
project at Sudbury.
[4] Payable gold, silver and palladium ounces produced but not
yet delivered are based on management estimates only and rely upon
information provided by the owners and operators of mining
operations and may be revised and updated in future periods as
additional information is received.
[5] Under the Marmato PMPA with Aris Gold, the Company will pay
a total cash consideration of $110 million, $72 million of which is
payable during the construction of the MDZ project, subject to
receipt of required permits and licenses, sufficient financing
having been obtained to cover total expected capital expenditures,
and other customary conditions.
This information is provided by RNS, the news service of the
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END
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