TIDMWPM
RNS Number : 5316I
Wheaton Precious Metals Corp.
13 August 2021
August 12, 2021 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
SECOND quarter 2021 financial results
WHEATON PRECIOUS METALS Announces record revenue, Cash flow and
sales volume for THE FIRST half OF 2021
"Wheaton once again delivered strong results in the second
quarter and remains well on track to achieve 2021 guidance of
720,000 to 780,000 gold equivalent ounces. With record sales
volumes in the first half of 2021, Wheaton generated both record
revenue and cash flow of $655 million and $449 million,
respectively. This solid performance reflects the underlying
strength of our diversified, high-quality portfolio, and has
resulted in an increase to our dividend for the fourth quarter in a
row, an increase of 50% over the prior year," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals
Corp. "We continue to remain extremely active on the corporate
development front, closing the previously announced precious metals
stream on Capstone's Santo Domingo project and subsequent to the
quarter, entering into an agreement on a new precious metals stream
on Rio2's Fenix Gold project in Chile. In addition, we remain
committed to sustainability and are proud to have published our
annual sustainability report in the second quarter, highlighting
our focus on delivering value to all of our stakeholders."
Second Quarter 2021 Highlights:
-- $216 million in operating cash flow during the second quarter.
-- Record quarterly revenue of $330 million during the second quarter.
-- Gold equivalent production (2) increased over 32% relative to Q2 2020.
-- Declared quarterly dividend (1) of $0.15 per common share
representing the fourth quarterly dividend increase in a row and a
50% increase relative to Q2 2020.
-- Initial gold and silver production from the Pampacancha deposit at the Constancia mine.
-- First gold and silver deliveries from the Marmato mine.
-- Inaugural cobalt production from Voisey's Bay underground extension.
Operational Overview
(all figures in US dollars unless otherwise noted) Q2 2021 Q2 2020 Change
---------------------------------------------------- --- -------- ------------- --------
Units produced
Gold ounces 90,290 88,783 1.7 %
Silver ounces 6,720 3,651 84.1 %
Palladium ounces 5,301 5,759 (8.0)%
Cobalt pounds 379,757 - n.a.
Gold equivalent ounces (2) 194,140 146,857 32.2 %
Units sold
Gold ounces 90,090 92,804 (2.9)%
Silver ounces 5,600 4,729 18.4 %
Palladium ounces 3,869 4,976 (22.2)%
Cobalt pounds 394,623 - n.a.
Gold equivalent ounces (2) 176,700 164,844 7.2 %
---------------------------------------------------------- -------- ------------- --------
Revenue $ 330,393 $ 247,954 33.2 %
Net earnings $ 166,124 $ 105,812 57.0 %
Per share $ 0.369 $ 0.236 56.4 %
Adjusted net earnings (1) $ 161,626 $ 97,354 66.0 %
Per share (1) $ 0.359 $ 0.217 65.4 %
Operating cash flows $ 216,415 $ 151,793 42.6 %
Per share (1) $ 0.481 $ 0.338 42.3 %
----------------------------------------------------- -------- ------------- --------
All amounts in thousands except gold, palladium & gold
equivalent ounces and cobalt pounds produced & sold, per
ounce/pound amounts & per share amounts. [1] [2]
Subsequent to the Quarter - Corporate Development
Fenix Gold Project: On July 20, 2021, the Company signed a
non-binding term sheet with Rio2 Limited ("Rio2") to enter into a
precious metals purchase agreement ("PMPA") in connection with the
Fenix Gold project located in Chile. Under the terms of the
proposed Fenix PMPA, the Company will acquire 6% of the gold
production until 90,000 ounces have been delivered and 4% of the
gold production until 140,000 ounces have been delivered, after
which the stream drops to 3.5% for the life of mine. In addition,
under the proposed Fenix PMPA, the Company will pay a total upfront
cash consideration of $50 million, $25 million of which is payable
upon closing, subject to certain conditions, and $25 million
payable subject to Rio2's receipt of its Environmental Impact
Assessment for the Fenix Gold project, and certain other
conditions. In addition, the Company will make ongoing delivery
payments equal to approximately 18% of the spot price until the
value of gold delivered less the production payment is equal to the
upfront consideration of $50 million, at which point the production
payment will increase to 22% of the spot gold price. The entering
into of the Fenix PMPA is subject to, among other matters, the
negotiation and completion of definitive documentation.
Financial Review
Revenues
Revenue was $330 million in the second quarter of 2021
representing a 33% increase from the second quarter of 2020 due
primarily to a 24% increase in the average realized gold
equivalent(2) price; and coupled with a 7% increase in the number
of gold equivalent(2) ounces sold.
Cash Costs and Margin
Average cash costs(1) in the second quarter of 2021 were $444
per gold equivalent(2) ounce as compared to $396 in Q2 2020. This
resulted in a cash operating margin(1) of $1,426 per gold
equivalent(2) ounce sold, an increase of 29% as compared with the
second quarter of 2020.
Balance Sheet (at June 30, 2021 )
-- Approximately $235 million of cash on hand.
-- The Company's $2 billion revolving term loan (the "Revolving
Facility") remains fully repaid. During the quarter, the term of
the Revolving Facility was extended by an additional year, with the
facility now maturing on June 9, 2026.
Second Quarter Asset Highlights
Salobo: In the second quarter of 2021, Salobo produced 55,600
ounces of attributable gold, a decrease of approximately 6%
relative to the second quarter of 2020 due to lower grade,
partially offset by higher throughput. According to Vale S.A.'s
("Vale") Second Quarter 2021 Performance Report, production was
mainly impacted as the mine maintenance workshops continued to ramp
up in the quarter after a broader review in the first quarter of
2021, which limited mine movement and feed grade available for the
quarter. Vale further reports that physical completion of the
Salobo III mine expansion was 77% at the end of the second quarter
and is on track for start-up in the second half of 2022.
Peñasquito: In the second quarter of 2021, Peñasquito produced
2.0 million ounces of attributable silver, an increase of
approximately 109% relative to the second quarter of 2020 as
operations at the mine were temporarily suspended during the second
quarter of 2020 as a result of the COVID-19 pandemic.
Antamina: In the second quarter of 2021, Antamina produced 1.6
million ounces of attributable silver, an increase of approximately
155% relative to the second quarter of 2020 as operations at the
mine were temporarily suspended during the second quarter of 2020
as a result of the COVID-19 pandemic .
San Dimas: In the second quarter of 2021, San Dimas produced
11,500 ounces of attributable gold, an increase of approximately
89% relative to the second quarter of 2020 , primarily due to
operations being temporarily suspended during the second quarter of
2020 due to the COVID-19 pandemic coupled with the impact of
changing the silver to gold conversion ratio from 70:1 to 90:1 from
April 1, 2020 to October 15, 2020, at which time it reverted to
70:1.
Constancia: In the second quarter of 2021, Constancia produced
0.5 million ounces of attributable silver and 5,500 ounces of
attributable gold, an increase of approximately 85% and 59%,
respectively, relative to the second quarter of 2020, which was
primarily due to operations being temporarily suspended during the
second quarter of 2020 due to the COVID-19 pandemic, and, for gold,
the improved grades and recoveries as a result of the commencement
of first ore production from the Pampacancha satellite deposit.
According to Hudbay Minerals Inc.'s ("Hudbay") second quarter of
2021 MD&A, following the finalization of the remaining land
user agreement and due to its short ramp-up period, Pampacancha
achieved commercial production in April 2021. On May 10, 2021,
Wheaton and Hudbay agreed to amend the Constancia streaming
agreement so that Hudbay would no longer be required to deliver an
additional 8,020 ounces of gold to Wheaton for not mining four
million tonnes of ore from Pampacancha by June 30, 2021. As part of
this amendment, Hudbay has agreed to increase the fixed gold
recoveries that apply to Constancia ore production from 55% to 70%
during the reserve life of Pampacancha [3] .
Sudbury: In the second quarter of 2021, Vale's Sudbury mines
produced 4,800 ounces of attributable gold, a decrease of
approximately 48% relative to the second quarter of 2020, which was
primarily due to lower grades and throughput, as operations at the
mine were suspended due to a labour dispute, which lasted from June
1, 2021 to August 9, 2021. Vale announced on August 3, 2021 that a
new five-year collective bargaining agreement had been ratified
with mine workers. The Sudbury PMPA had an effective date of
February 28, 2013 with a term of 20 years. Under the provisions of
the Sudbury PMPA, should the facilities at Sudbury be shut down for
60 or more cumulative days, exclusive of scheduled maintenance or
shutdowns for periods of 20 days or less, the term of the Sudbury
PMPA shall be extended for the same duration.
Stillwater: In the second quarter of 2021, the Stillwater mines
produced 3,000 ounces of attributable gold and 5,300 ounces of
attributable palladium, a decrease of approximately 8% for gold and
8% for palladium relative to the second quarter of 2020 due to
lower grades.
Other Gold: In the second quarter of 2021, total Other Gold
attributable production was 10,000 ounces, an increase of
approximately 30% relative to the second quarter of 2020, primarily
due production from the newly acquired Marmato stream.
Other Silver: In the second quarter of 2021, total Other Silver
attributable production was 2.7 million ounces, an increase of
approximately 47% relative to the second quarter of 2020, primarily
due to higher production at Yauliyacu as prior year operations were
temporarily suspended due to the COVID-19 pandemic coupled with the
resumption of mining at Keno Hill and production from the newly
acquired Cozamin and Marmato streams.
Voisey's Bay: In the second quarter of 2021, the Voisey's Bay
mine produced 380,000 pounds of attributable cobalt. As at the end
of the second quarter 2021, approximately 134,000 pounds of cobalt
were held in inventory by Wheaton and 777,000 pounds were produced
but not delivered. As per Vale's Second Quarter 2021 Performance
Report, physical completion of the Voisey's Bay underground mine
extension, which includes developing two underground mines - Reid
Brook and Eastern Deeps - was 66% at the end of the second quarter.
Reid Brook produced its first ore in June of 2021, and Vale reports
that Eastern Deeps is expected to start up in 2022.
Produced But Not Yet Delivered [4]
As at June 30, 2021 , payable ounces and pounds attributable to
the Company produced but not yet delivered amounted to:
-- 65,900 payable gold ounces, a decrease of 3,600 ounces during
Q2 2021 , primarily due to reductions during the period relative to
the Salobo and Sudbury mines partially offset by an increase at the
Constancia mine.
-- 4.0 million payable silver ounces, an increase of 0.2 million
ounces during Q2 2021 , primarily due to increases during the
period relative to the Yauliyacu and Constancia mines.
-- 6,800 payable palladium ounces, an increase of 1,400 ounces during Q2 2021 .
-- 777,300 payable cobalt pounds, a decrease of 40,300 pounds during Q2 2021.
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Corporate Development
-- On April 15, 2021, the previously announced PMPA relative to
the Marmato mine was closed, with the initial upfront cash
consideration of $34 million being paid to Aris Gold Corporation on
that date.
-- On April 21, 2021 , the previously announced PMPA with
Capstone Mining Corp. ("Capstone") relative to the Santo Domingo
project was closed with the initial upfront cash consideration of
$30 million being paid to Capstone on that date.
-- On July 20, 2021, the Company signed a non-binding term sheet
with Rio2 to enter into a PMPA relative to the Fenix Gold project
located in Chile.
Sustainability
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
June 30, 2021, the Company has made donations totalling
approximately $4 million through the CSR Fund.
2020 Sustainability Report: In the second quarter of 2021,
Wheaton published its annual sustainability report, a comprehensive
disclosure outlining Wheaton's commitment to sustainability and
environmental, social and governance ("ESG") performance.
Partner CSR Program: In the second quarter of 2021, Wheaton
continued to support a wide range of programs with various mining
partners. Wheaton committed to support the Enseña Peru educational
program near the Antamina mine for another two years, bringing to a
total of six years of Wheaton's support; continued to work with the
Vale Foundation in supporting ten different programs focused on
health, education, entrepreneurial support and community engagement
opportunities near the Salobo mine; and, committed to the second
phase of an agricultural and livestock development program
previously supported by Wheaton and a new waste management program
with Hudbay near the Constancia mine.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, August 13,
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: 1-888-664-6383
Dial from outside Canada or the US: 1-416-764-8650
Pass code: 26071335
Live audio webcast: Webcast URL
Participants should dial in five to ten minutes before the
call.
The accompanying slideshow will also be available in PDF format
on the 'Presentations' page of the Wheaton Precious Metals website
before the conference call.
The conference call will be recorded and available until August
20, 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: 1-888-390-0541
Dial from outside Canada or the US: 1-416-764-8677
Pass code: 071335 #
Archived audio webcast: Webcast URL
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, is a
"qualified person" as such term is defined under National
Instrument 43-101 and has reviewed and approved the technical
information disclosed in this news release.
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. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
Wheaton's estimated attributable production in 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 (2)
("GEOs") of other metals, resulting in production of approximately
720,000 to 780,000 GEOs (2) , unchanged from previous guidance. For
the five-year period ending in 2025, the Company estimates that
average production will amount to 810,000 GEOs [5] . For the
ten-year period ending in 2030, the Company estimates that average
annual production will amount to 830,000 GEOs (5) .
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 and Wheaton includes
the Company's wholly owned subsidiaries.
End Notes
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Six Months Ended
June 30 June 30
(US dollars and shares in thousands, except per
share amounts - unaudited) 2021 2020 2021 2020
------------------------------------------------- -------------- ------------ ------------ ------------
Sales $ 330,393 $ 247,954 $ 654,512 $ 502,744
-------------------------------------------------- --- -------- -------- -------- --------
Cost of sales
Cost of sales, excluding depletion $ 78,445 $ 65,211 $ 157,228 $ 132,119
Depletion 70,308 58,661 140,482 123,503
-------------------------------------------------------- -------- -------- -------- --------
Total cost of sales $ 148,753 $ 123,872 $ 297,710 $ 255,622
-------------------------------------------------- --- -------- -------- -------- --------
Gross margin $ 181,640 $ 124,082 $ 356,802 $ 247,122
General and administrative expenses 18,465 21,799 30,435 34,981
-------------------------------------------------------- -------- -------- -------- --------
Earnings from operations $ 163,175 $ 102,283 $ 326,367 $ 212,141
Other (income) expense (3,420) (3,366) (3,301) (3,963)
-------------------------------------------------------- -------- -------- -------- --------
Earnings before finance costs and income taxes $ 166,595 $ 105,649 $ 329,668 $ 216,104
Finance costs 1,357 4,636 2,930 11,753
-------------------------------------------------------- -------- -------- -------- --------
Earnings before income taxes $ 165,238 $ 101,013 $ 326,738 $ 204,351
Income tax recovery (expense) 886 4,799 1,388 (3,643)
-------------------------------------------------------- -------- -------- -------- --------
Net earnings $ 166,124 $ 105,812 $ 328,126 $ 200,708
-------------------------------------------------- --- -------- -------- -------- --------
Basic earnings per share $ 0.369 $ 0.236 $ 0.729 $ 0.448
Diluted earnings per share $ 0.368 $ 0.235 $ 0.728 $ 0.447
Weighted average number of shares outstanding
Basic 450,088 448,636 449,800 448,217
Diluted 451,203 450,042 450,869 449,513
======================================================== ======== ======== ======== ========
Condensed Interim Consolidated Balance Sheets
As at
As at December
June 30 31
(US dollars in thousands - unaudited) 2021 2020
----------------------------------------------- --------------- --------------
Assets
Current assets
Cash and cash equivalents $ 235,446 $ 192,683
Accounts receivable 12,952 5,883
Other 6,050 3,265
---------------------------------------------------- ---------- ----------
Total current assets $ 254,448 $ 201,831
----------------------------------------------- --- ---------- ----------
Non-current assets
Mineral stream interests $ 5,563,515 $ 5,488,391
Early deposit mineral stream interests 33,991 33,241
Mineral royalty interest 6,606 3,047
Long-term equity investments 86,379 199,878
Convertible notes receivable 15,979 11,353
Property, plant and equipment 5,984 6,289
Other 14,564 13,242
---------------------------------------------------- ---------- ----------
Total non-current assets $ 5,727,018 $ 5,755,441
----------------------------------------------- --- ---------- ----------
Total assets $ 5,981,466 $ 5,957,272
----------------------------------------------- --- ---------- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 12,781 $ 13,023
Current portion of performance share
units 13,113 17,297
Current portion of lease liabilities 805 773
Other 103 76
Total current liabilities $ 26,802 $ 31,169
----------------------------------------------- --- ---------- ----------
Non-current liabilities
Bank debt $ - $ 195,000
Lease liabilities 2,508 2,864
Deferred income taxes 252 214
Performance share units 6,507 11,784
Pension liability 2,133 1,670
---------------------------------------------------- ---------- ----------
Total non-current liabilities $ 11,400 $ 211,532
----------------------------------------------- --- ---------- ----------
Total liabilities $ 38,202 $ 242,701
----------------------------------------------- --- ---------- ----------
Shareholders' equity
Issued capital $ 3,674,783 $ 3,646,291
Reserves 67,325 126,882
Retained earnings 2,201,156 1,941,398
---------------------------------------------------- ---------- ----------
Total shareholders' equity $ 5,943,264 $ 5,714,571
----------------------------------------------- --- ---------- ----------
Total liabilities and shareholders' equity $ 5,981,466 $ 5,957,272
----------------------------------------------- --- ---------- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended
June 30 June 30
(US dollars in thousands - unaudited) 2021 2020 2021 2020
----------------------------------------------------------- ---------- ---------- ---------- ----------
Operating activities
Net earnings $ 166,124 $ 105,812 $ 328,126 $ 200,708
Adjustments for
Depreciation and depletion 70,775 59,140 141,424 124,492
Interest expense 32 3,515 294 9,494
Equity settled stock based compensation 1,307 1,305 2,632 2,808
Performance share units (10,258) (868) (9,952) 2,409
Pension expense 265 233 416 268
Income tax expense (recovery) (886) (4,799) (1,388) 3,643
Loss (gain) on fair value adjustment of share purchase
warrants held 194 (333) 1,145 (262)
Fair value (gain) loss on convertible note receivable (3,388) (3,267) (4,626) (2,477)
Investment income recognized in net earnings (95) (37) (97) (155)
Other 103 264 694 (53)
Change in non-cash working capital (7,803) (5,505) (9,775) (885)
============================================================ ========= ========= ========= =========
Cash generated from operations before income taxes and
interest $ 216,370 $ 155,460 $ 448,893 $ 339,990
Income taxes recovered (paid) (21) (19) (51) 70
Interest paid (29) (3,685) (370) (10,833)
Interest received 95 37 97 154
============================================================ ========= ========= ========= =========
Cash generated from operating activities $ 216,415 $ 151,793 $ 448,569 $ 329,381
============================================================ ========= ========= ========= =========
Financing activities
Bank debt repaid $ - $ (75,000) $(195,000) $(234,000)
Credit facility extension fees (1,673) (7) (1,673) (1,367)
Share purchase options exercised 743 11,094 5,536 18,016
Lease payments (173) (139) (387) (306)
Dividends paid (103,549) (83,003) (103,549) (83,003)
============================================================ ========= ========= ========= =========
Cash (used for) generated from financing activities $(104,652) $(147,055) $(295,073) $(300,660)
============================================================ ========= ========= ========= =========
Investing activities
Mineral stream interests $ (64,771) $ - $(215,790) $ -
Early deposit mineral stream interests - - (750) (750)
Mineral royalty interest (10) - (3,571) -
Acquisition of long-term investments (2,377) - (2,377) -
Proceeds on disposal of long-term investments - 123 112,188 123
Other (386) (71) (520) (328)
============================================================ ========= ========= ========= =========
Cash generated from (used for) investing activities $ (67,544) $ 52 $(110,820) $ (955)
============================================================ ========= ========= ========= =========
Effect of exchange rate changes on cash and cash equivalents $ 65 $ 298 $ 87 $ 12
============================================================ ========= ========= ========= =========
Increase in cash and cash equivalents $ 44,284 $ 5,088 $ 42,763 $ 27,778
Cash and cash equivalents, beginning of period 191,162 126,676 192,683 103,986
============================================================ ========= ========= ========= =========
Cash and cash equivalents, end of period $ 235,446 $ 131,764 $ 235,446 $ 131,764
------------------------------------------------------------ --------- --------- --------- ---------
Summary of Units Produced
Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Gold ounces
produced (2)
Salobo 55,590 46,622 62,854 63,408 59,104 62,575 74,716 73,615
Sudbury (3) 4,787 6,466 6,659 3,798 9,257 7,795 6,468 6,082
Constancia (8) 5,519 2,453 3,929 3,780 3,470 3,681 4,757 5,172
San Dimas (4, 8) 11,478 10,491 11,652 9,228 6,074 11,318 11,352 11,239
Stillwater (5) 2,962 3,041 3,290 3,176 3,222 2,955 3,585 3,238
Other
Minto (6) 3,206 2,638 789 1,832 2,928 2,124 2,189 -
777 (9) 5,035 6,280 2,866 5,278 4,728 4,551 3,987 4,278
Marmato 1,713 - - - - - - -
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total Other 9,954 8,918 3,655 7,110 7,656 6,675 6,176 4,278
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total gold ounces
produced 90,290 77,991 92,039 90,500 88,783 94,999 107,054 103,624
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Silver ounces
produced (2)
Peñasquito
(8) 2,026 2,202 2,014 1,992 967 2,658 1,895 2,026
Antamina (8) 1,558 1,577 1,930 1,516 612 1,311 1,342 1,223
Constancia (8) 468 406 478 430 254 461 632 686
Other
Los Filos
(8) 26 31 6 17 14 29 55 33
Zinkgruvan 457 420 515 498 389 662 670 587
Yauliyacu
(8) 821 737 454 679 273 557 358 620
Stratoni 164 165 185 156 148 183 147 131
Minto (6) 33 21 16 15 19 18 18 -
Neves-Corvo 408 345 420 281 479 377 385 431
Aljustrel 400 474 440 348 388 352 325 240
Cozamin 182 230 - - - - - -
Marmato 39 - - - - - - -
Keno Hill 55 30 - - - - - -
777 (9) 83 130 51 96 108 96 81 62
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total Other 2,668 2,583 2,087 2,090 1,818 2,274 2,039 2,104
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total silver
ounces produced 6,720 6,768 6,509 6,028 3,651 6,704 5,908 6,039
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Palladium ounces
produced (2)
Stillwater (5) 5,301 5,769 5,672 5,444 5,759 5,312 6,057 5,471
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Cobalt pounds
produced (2)
Voisey's Bay
(10) 379,757 1,162,243 - - - - - -
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
GEOs produced (7) 194,140 190,820 189,682 181,184 146,857 194,901 196,850 194,499
SEOs produced (7) 13,978 13,739 13,657 13,045 10,574 14,033 14,173 14,004
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Average payable
rate (2)
Gold 95.8% 95.0% 95.2% 95.3% 94.7% 95.1% 95.6% 95.1%
Silver 87.0% 86.6% 86.3% 86.1% 81.9% 85.6% 85.3% 85.1%
Palladium 95.0% 91.6% 93.6% 94.0% 90.8% 91.0% 92.2% 91.3%
Cobalt 93.3% 93.3% n.a. n.a. n.a. n.a. n.a. n.a.
GEO (7) 91.7% 90.4% 91.1% 91.1% 89.8% 90.4% 91.5% 90.4%
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
1) All figures in thousands except cobalt pounds and 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. On June 1, 2021, Vale announced that
operations at the Sudbury mines were suspended 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: Q2-2021 - 432,000
ounces; Q1-2021 - 437,000 ounces; Q4-2020 - 476,000 ounces; Q3-2020
- 420,000 ounces; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000
ounces; Q4-2019 - 415,000 ounces; and Q3-2019 - 410,000 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: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
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 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.
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.
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.
Summary of Units Sold
Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Gold ounces sold
Salobo 57,296 51,423 53,197 59,584 68,487 74,944 58,137 63,064
Sudbury (2) 6,945 3,691 7,620 7,858 7,414 4,822 7,394 7,600
Constancia (7) 2,321 1,676 3,853 4,112 3,024 3,331 5,108 4,742
San Dimas (7) 11,214 10,273 11,529 9,687 6,030 11,358 11,499 11,374
Stillwater (3) 2,574 3,074 3,069 3,015 3,066 3,510 2,925 3,314
Other
Minto (4) 2,359 2,390 1,540 - - - - -
777 5,694 2,577 5,435 5,845 4,783 2,440 4,160 4,672
Marmato 1,687 - - - - - - -
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total Other 9,740 4,967 6,975 5,845 4,783 2,440 4,160 4,672
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total gold ounces
sold 90,090 75,104 86,243 90,101 92,804 100,405 89,223 94,766
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Silver ounces
sold
Peñasquito
(7) 1,844 2,174 1,417 1,799 1,917 2,310 1,268 1,233
Antamina (7) 1,499 1,930 1,669 1,090 788 1,244 1,227 1,059
Constancia (7) 295 346 442 415 254 350 672 521
Other
Los Filos
(7) 42 27 - 19 25 37 26 44
Zinkgruvan 355 293 326 492 376 447 473 459
Yauliyacu
(7) 601 1,014 15 580 704 9 561 574
Stratoni 167 117 169 134 77 163 120 126
Minto (4) 29 26 20 - - - - -
Neves-Corvo 215 239 145 201 236 204 154 243
Aljustrel 208 257 280 148 252 123 121 139
Cozamin 168 173 - - - - - -
Marmato 35 - - - - - - -
Keno Hill 33 12 - - - - - -
777 109 49 93 121 100 41 62 86
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total Other 1,962 2,207 1,048 1,695 1,770 1,024 1,517 1,671
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Total silver
ounces sold 5,600 6,657 4,576 4,999 4,729 4,928 4,684 4,484
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Palladium ounces
sold
Stillwater (3) 3,869 5,131 4,591 5,546 4,976 4,938 5,312 4,907
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Cobalt pounds
sold
Voisey's Bay 394,623 132,277 - - - - - -
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
GEOs sold (5) 176,700 175,419 155,665 166,611 164,844 175,154 161,066 163,314
SEOs sold (5) 12,722 12,630 11,208 11,996 11,869 12,611 11,597 11,759
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Cumulative payable
units PBND (6)
Gold ounces 65,943 69,533 70,555 75,750 79,632 88,383 98,475 85,335
Silver ounces 3,990 3,741 4,486 3,437 3,222 4,961 4,142 3,796
Palladium ounces 6,822 5,373 5,597 4,616 4,883 4,875 4,872 4,163
Cobalt pounds 777,304 819,819 - - - - - -
GEO (5) 137,746 136,441 140,008 129,391 130,623 163,521 162,225 143,380
SEO (5) 9,366 9,242 10,081 9,316 9,405 11,774 11,680 10,323
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
Inventory on
hand
Cobalt pounds 134,482 132,277 - - - - - -
------------------ --------------- ------------------ --------------- --------------- -------------- -------------- -------------- --------------
1) All figures in thousands except cobalt pounds and 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: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
6) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
7) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended June 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) 3 Unit) Sales Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 55,590 57,296 $ 1,798 $ 412 $ 374 $103,039 $ 58,015 $ 79,426 $2,468,716
Sudbury (4) 4,787 6,945 1,817 400 1,024 12,618 2,725 10,262 310,120
Constancia 5,519 2,321 1,798 408 315 4,174 2,496 3,227 104,310
San Dimas 11,478 11,214 1,798 618 322 20,167 9,627 13,242 175,275
Stillwater 2,962 2,574 1,798 326 397 4,629 2,769 3,791 222,069
Other (5) 9,954 9,740 1,814 559 125 17,666 11,007 12,238 65,296
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
90,290 90,090 $ 1,801 $ 450 $ 390 $162,293 $ 86,639 $ 122,186 $3,345,786
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,026 1,844 $ 26.65 $ 4.29 $ 3.55 $ 49,133 $ 34,682 $ 41,223 $ 336,314
Antamina 1,558 1,499 26.63 5.39 7.53 39,903 20,545 31,013 601,117
Constancia 468 295 26.65 6.02 7.56 7,865 3,858 6,088 212,197
Other (6) 2,668 1,962 26.78 8.39 5.20 52,554 25,893 34,132 608,588
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
6,720 5,600 $ 26.69 $ 6.11 $ 5.40 $149,455 $ 84,978 $ 112,456 $1,758,216
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 5,301 3,869 $ 2,797 $ 503 $ 442 $ 10,822 $ 7,164 $ 8,876 $ 237,407
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 379,757 394,623 $ 19.82 $ 4.41 $ 8.17 $ 7,823 $ 2,859 $ 2,052 $ 222,106
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Operating results $330,393 $ 181,640 $ 245,570 $5,563,515
------------------------------- ------- -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(18,465) $ (26,566)
Finance costs (1,357) (978)
Other 3,420 (1,590)
Income tax 886 (21)
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Total other $(15,516) $ (29,155) $ 417,951
---------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 166,124 $ 216,415 $5,981,466
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
1) Units produced and sold relative to gold, silver and
palladium are reported in ounces, while cobalt is reported in
pounds. All figures in thousands except cobalt pounds produced and
sold, gold and palladium ounces produced and sold and per unit
amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
5) Comprised of the operating 777, Minto and Marmato gold
interests, the non-operating Rosemont and Santo Domingo gold
interests.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin,
Marmato and 777 silver interests and the non-operating Loma de La
Plata, Pascua-Lama and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended June 30, 2021 were as
follows:
Three Months Ended June 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'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) 194,140 176,700 $ 1,870 $ 444 $ 1,426 $ 398 $ 1,028
Silver
equivalent
basis (5) 13,978 12,722 $ 25.97 $ 6.17 $ 19.80 $ 5.53 $ 14.27
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Three Months Ended June 30, 2020
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) 3 Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 59,104 68,487 $ 1,719 $ 408 $ 374 $117,706 $ 64,122 $ 90,059 $2,551,563
Sudbury (4) 9,257 7,414 1,700 400 831 12,605 3,475 9,639 333,885
Constancia 3,470 3,024 1,719 404 338 5,196 2,954 3,975 108,260
San Dimas 6,074 6,030 1,719 609 315 10,364 4,791 6,691 188,888
Stillwater 3,222 3,066 1,719 303 449 5,269 2,963 4,339 227,042
Other (5) 7,656 4,783 1,700 420 305 8,132 4,663 6,121 10,965
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
88,783 92,804 $ 1,716 $ 418 $ 405 $159,272 $ 82,968 $ 120,824 $3,420,603
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 967 1,917 $ 16.55 $ 4.26 $ 3.24 $ 31,714 $ 17,335 $ 23,549 $ 360,998
Antamina 612 788 16.55 3.28 8.74 13,039 3,570 10,458 651,049
Constancia 254 254 16.55 5.96 7.63 4,203 752 2,689 223,583
Other (6) 1,818 1,770 17.05 7.03 2.22 30,186 13,800 14,895 481,133
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
3,651 4,729 $ 16.73 $ 5.23 $ 4.01 $ 79,142 $ 35,457 $ 51,591 $1,716,763
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 5,759 4,976 $ 1,917 $ 353 $ 428 $ 9,540 $ 5,657 $ 7,786 $ 245,727
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $247,954 $ 124,082 $ 180,201 $5,610,603
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(21,799) $ (20,452)
Finance costs (4,636) (4,642)
Other 3,366 (3,295)
Income tax 4,799 (19)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(18,270) $ (28,408) $ 523,441
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 105,812 $ 151,793 $6,134,044
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units produced and sold relative to gold, silver and
palladium are reported in ounces, while cobalt is reported in
pounds. All figures in thousands except cobalt pounds produced and
sold, gold and palladium ounces produced and sold and per unit
amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto and 777 gold interests in
addition to the non-operating Rosemont gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto and 777 silver interests as
well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama
and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended June 30, 2020 were as
follows:
Three Months Ended June 30, 2020
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'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) 146,857 164,844 $ 1,504 $ 396 $ 1,108 $ 356 $ 752
Silver
equivalent
basis (5) 10,574 11,869 $ 20.89 $ 5.49 $ 15.40 $ 4.94 $ 10.46
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
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; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis,
with the Company receiving its first deliveries of cobalt relative
to its Voisey's Bay PMPA during the first quarter of 2021; and (iv)
cash operating margin. The Company has removed the non-IFRS measure
relative to net debt as Wheaton fully repaid its debt during the
first quarter of 2021.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges,
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
June 30
(in thousands, except for per share amounts) 2021 2020
------------------------------------------------------------------------------------ ------------- ------------
Net earnings $ 166,124 $ 105,812
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held 194 (333)
(Gain) loss on fair value adjustment of convertible notes receivable (3,388) (3,267)
Income tax expense (recovery) recognized in the Statement of Shareholders' Equity (463) (160)
Income tax expense (recovery) recognized in the Statement of OCI (479) (4,698)
Other (362) -
------------------------------------------------------------------------------------ --- -------- --------
Adjusted net earnings $ 161,626 $ 97,354
------------------------------------------------------------------------------------- -------- --------
Divided by:
Basic weighted average number of shares outstanding 450,088 448,636
Diluted weighted average number of shares outstanding 451,203 450,042
------------------------------------------------------------------------------------------ -------- --------
Equals:
Adjusted earnings per share - basic $ 0.359 $ 0.217
Adjusted earnings per share - diluted $ 0.358 $ 0.216
------------------------------------------------------------------------------------- -------- --------
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
June 30
(in thousands, except for per share amounts) 2021 2020
--------------------------------------------------------- ------------- ------------
Cash generated by operating activities $ 216,415 $ 151,793
---------------------------------------------------------- -------- --------
Divided by:
Basic weighted average number of shares outstanding 450,088 448,636
Diluted weighted average number of shares outstanding 451,203 450,042
--------------------------------------------------------------- -------- --------
Equals:
Operating cash flow per share - basic $ 0.481 $ 0.338
Operating cash flow per share - diluted $ 0.480 $ 0.337
---------------------------------------------------------- -------- --------
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
June 30
(in thousands, except for gold and palladium ounces sold, cobalt pounds sold and
per unit
amounts) 2021 2020
---------------------------------------------------------------------------------- -------------- -------------
Cost of sales $ 148,753 $ 123,872
Less: depletion (70,308) (58,661)
---------------------------------------------------------------------------------------- --------- ---------
Cash cost of sales $ 78,445 $ 65,211
----------------------------------------------------------------------------------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 40,543 $ 38,746
Total cash cost of silver sold 34,216 24,711
Total cash cost of palladium sold 1,946 1,754
Total cash cost of cobalt sold 1,740 -
---------------------------------------------------------------------------------- --- --------- ---------
Total cash cost of sales $ 78,445 $ 65,211
----------------------------------------------------------------------------------- --------- ---------
Divided by:
Total gold ounces sold 90,090 92,804
Total silver ounces sold 5,600 4,729
Total palladium ounces sold 3,869 4,976
Total cobalt pounds sold 394,623 -
---------------------------------------------------------------------------------- --- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 450 $ 418
Average cash cost of silver (per ounce) $ 6.11 $ 5.23
Average cash cost of palladium (per ounce) $ 503 $ 353
Average cash cost of cobalt (per pound) $ 4.41 $ n.a.
----------------------------------------------------------------------------------- --------- ---------
iv. Cash operating margin is calculated by subtracting the
average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis from the average realized
selling price of gold, silver and palladium on a per ounce basis
and cobalt on a per pound basis. The Company presents cash
operating margin as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis as well as to evaluate the Company's
ability to generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended
June 30
(in thousands, except for cobalt pounds sold, gold and palladium ounces sold and
per unit
amounts) 2021 2020
==================================================================================== ============= ============
Total sales:
Gold $ 162,293 $ 159,272
Silver $ 149,455 $ 79,142
Palladium $ 10,822 $ 9,540
Cobalt $ 7,823 $ -
Divided by:
Total gold ounces sold 90,090 92,804
Total silver ounces sold 5,600 4,729
Total palladium ounces sold 3,869 4,976
Total cobalt pounds sold 394,623 -
------------------------------------------------------------------------------------ --- -------- --------
Equals:
Average realized price of gold (per ounce) $ 1,801 $ 1,716
Average realized price of silver (per ounce) $ 26.69 $ 16.73
Average realized price of palladium (per ounce) $ 2,797 $ 1,917
Average realized price of cobalt (per pound) $ 19.82 $ n.a.
Less:
Average cash cost of gold (1) (per ounce) $ (450) $ (418)
Average cash cost of silver (1) (per ounce) $ (6.11) $ (5.23)
Average cash cost of palladium (1) (per ounce) $ (503) $ (353)
Average cash cost of cobalt (1) (per pound) $ (4.41) $ n.a.
------------------------------------------------------------------------------------ --- -------- --------
Equals:
Cash operating margin per gold ounce sold $ 1,351 $ 1,298
As a percentage of realized price of gold 75% 76%
Cash operating margin per silver ounce sold $ 20.58 $ 11.50
As a percentage of realized price of silver 77% 69%
Cash operating margin per palladium ounce sold $ 2,294 $ 1,564
As a percentage of realized price of palladium 82% 82%
Cash operating margin per cobalt pound sold $ 15.41 $ n.a.
As a percentage of realized price of cobalt 78% n.a.
------------------------------------------------------------------------------------------ -------- --------
1) Please refer to non-IFRS measure (iii), above.
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS measures
is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
successful negotiation and entering into of definitive
documentation by Wheaton International with Rio2, payment by
Wheaton International of US$50 million to Rio2 and the satisfaction
of each party's obligations in accordance with the Fenix PMPA, the
receipt by Wheaton International of gold production in respect of
the Fenix Gold project, 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, 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, and assessments of
the impact and resolution of various legal and tax matters,
including but not limited to outstanding class action 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 specific risks relating to the completion of
documentation and diligence for the Fenix PMPA with Rio2, the
satisfaction of each party's obligations in accordance with the
terms of the Fenix PMPA with Rio2, risks associated with
fluctuations in the price of commodities (including Wheaton's
ability to sell its precious metals or cobalt production at
acceptable prices or at all), risks of significant impacts on
Wheaton or the Mining Operations as a result of an epidemic
(including the COVID-19 virus pandemic), risks related to the
Mining Operations (including fluctuations in the price of the
primary or other commodities mined at such operations, regulatory,
political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated
with the exploration, development, operating, expansion and
improvement of the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the absence of control over the
Mining Operations and having to rely on the accuracy of the public
disclosure and other information Wheaton receives from the Mining
Operations, uncertainty in the estimation of production from Mining
Operations, uncertainty in the accuracy of mineral reserve and
mineral resource estimation, the ability of each party to satisfy
their obligations in accordance with the terms of the PMPAs, the
estimation of future production from Mining Operations, Wheaton's
interpretation of, compliance with or application of, tax laws and
regulations or accounting policies and rules being found to be
incorrect, any challenge or reassessment by the CRA of the
Company's tax filings being successful and the potential negative
impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement for years subsequent to 2010
(including whether there will be any material change in the
Company's facts or change in law or jurisprudence), the possible
adoption of a global minimum tax, 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, 2020 and Form 6-Ks filed March 11, 2021 and
August 12, 2021, all 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 completion of
documentation and diligence in respect of the Fenix PMPA with Rio2,
the payment of US$50 million to Rio2 and the satisfaction of each
party's obligations in accordance with the terms of the Fenix PMPA
with Rio2, 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 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 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 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.
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. Dividends declared in the referenced calendar quarter,
relative to the financial results of the prior quarter.
[2] Commodity price assumptions for the gold equivalent
production and sales in 2021 and long-term forecasts are $1,800 /
ounce gold, $25 / ounce silver, and $2,300 / ounce palladium and
$17.75 / pound cobalt. Other metal includes palladium and
cobalt.
[3] If Hudbay mines and processes four million tonnes of ore
from the Pampacancha deposit by December 31, 2021, the Company will
make an additional deposit payment of $4 million to Hudbay.
[4] Payable gold, silver and palladium ounces and cobalt pounds
produced but not yet delivered are based on management estimates
only and rely upon information provided by the owners and operators
of mining operations and may be revised and updated in future
periods as additional information is received.
[5] Gold equivalent guidance based on the commodity prices
outlined in note 2 above. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
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END
IR DKBBPBBKBDFD
(END) Dow Jones Newswires
August 13, 2021 02:00 ET (06:00 GMT)
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