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.

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