TIDMWPM

RNS Number : 4790R

Wheaton Precious Metals Corp.

05 November 2021

November 4, 2021 TSX | NYSE | LSE: WPM

Vancouver, British Columbia

Designated News Release

THIRD quarter 2021 financial results

WHEATON PRECIOUS METALS Announces record revenue, Earnings and cash flow for the first nine months of 2021

"Wheaton's diversified portfolio of high-quality, long-life assets continues to deliver strong results, including record revenue, earnings and cash flow in the first nine months of 2021. In addition, the Company declared a dividend of $0.15 per common share, a 25% increase relative to the prior year," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "Strong year to date production, particularly driven by silver, has led the Company to narrow its annual guidance to 735,000 to 765,000 gold equivalent ounces, consistent with the previous midpoint of guidance."

Third Quarter 2021 Highlights:

-- Over $200 million in operating cash flow during the third quarter and a record $650 million in the first nine months of 2021.

-- $269 million in revenue during the third quarter and a record $923 million in the first nine months of 2021.

-- $137 million in adjusted net earnings during the third quarter and a record $460 million in the first nine months of 2021.

-- Signed a non-binding term sheet with Rio2 Limited to enter into a precious metals purchase agreement in connection with the Fenix Gold project located in Chile.

-- Strong financial position with approximately $372 million in cash on hand and $2 billion of additional capacity through the revolving credit facility as of September 30, 2021.

   --   Declared quarterly dividend (1) of $0.15 per common share. 

Operational Overview

 
 (all figures in US dollars unless otherwise noted)          Q3 2021            Q3 2020    Change 
----------------------------------------------------   ---  --------      -------------  -------- 
 Units produced 
   Gold ounces                                                85,941             90,500    (5.0)% 
   Silver ounces                                               6,394              6,028     6.1 % 
   Palladium ounces                                            5,105              5,444    (6.2)% 
   Cobalt pounds                                             370,522                  -      n.a. 
   Gold equivalent ounces (2)                                184,918            181,184     2.1 % 
 Units sold 
   Gold ounces                                                67,649             90,101   (24.9)% 
   Silver ounces                                               5,487              4,999     9.8 % 
   Palladium ounces                                            5,703              5,546     2.8 % 
   Cobalt pounds                                             131,174                  -      n.a. 
   Gold equivalent ounces (2)                                152,432            166,611    (8.5)% 
----------------------------------------------------------  --------      -------------  -------- 
 Revenue                                                 $   268,957   $        307,268   (12.5)% 
 Net earnings                                            $   134,937   $        149,875   (10.0)% 
   Per share                                             $     0.300   $          0.334   (10.2)% 
 Adjusted net earnings (1)                               $   137,087   $        152,007    (9.8)% 
   Per share (1)                                         $     0.304   $          0.338   (10.1)% 
 Operating cash flows                                    $   201,287   $        228,099   (11.8)% 
   Per share (1)                                         $     0.447   $          0.508   (12.0)% 
-----------------------------------------------------       --------      -------------  -------- 
 

All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, per ounce/pound amounts & per share amounts [1] [2]

Reiterating Gold Equivalent Production Guidance

Wheaton's estimated attributable production in 2021 is now forecast to be approximately 735,000 to 765,000 gold equivalent ounces(2) ("GEOs") in line with previous guidance of 720,000 to 780,000 GEOs. However, given strong performances at Peñasquito, Antamina and Voisey's Bay, coupled with production being lower than expected at Salobo, Wheaton is adjusting the production mix by metal as per the table below. Longer term guidance remains unchanged at an average production of 810,000 GEOs for the five-year period ending 2025 and 830,000 GEOs for the ten-year period ending in 2030[3].

 
                             Updated Guidance    Original Guidance 
 Gold Ounces                330,000 to 345,000   370,000 to 400,000 
                           -------------------  ------------------- 
 Silver Ounces ('000s)       25,500 to 26,500     22,500 to 24,000 
                           -------------------  ------------------- 
 Other Metals (2) (GEOs)     45,000 to 55,000     40,000 to 45,000 
                           -------------------  ------------------- 
 Total GEOs (2)             735,000 to 765,000   720,000 to 780,000 
                           -------------------  ------------------- 
 

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 $269 million in the third quarter of 2021 representing a 12% decrease from the third quarter of 2020 due primarily to a 9% decrease in the number of gold equivalent(2) ounces sold, primarily the result of a large build-up of payable ounces produced but not yet delivered ("PBND") at Salobo; and a 4% decrease in the average realized gold equivalent(2) price.

Cash Costs and Margin

Average cash costs(1) in the third quarter of 2021 were $410 per gold equivalent(2) ounce as compared to $421 in third quarter of 2020. This resulted in a cash operating margin(1) of $1,354 per gold equivalent(2) ounce sold, a decrease of 5% as compared with the third quarter of 2020.

Balance Sheet (at September 30, 2021 )

   --   Approximately $372 million of cash on hand. 
   --   The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully repaid. 

Third Quarter Asset Highlights

Salobo: In the third quarter of 2021, Salobo produced 55,200 ounces of attributable gold, a decrease of approximately 13% relative to the third quarter of 2020 due to lower throughput and grade. On October 22, 2021, Vale S.A. ("Vale") announced the resumption of conveyor belt operations at Salobo, that was halted for 18 days due to a fire. Other activities, including mine and maintenance operations, continued as usual during this period but concentrate production was interrupted. Concentrate production resumed on October 22, 2021 and ramped up over a three day period. Vale further reports that physical completion of the Salobo III mine expansion was 81% at the end of the third quarter and is on track for start-up in the second half of 2022.

Peñasquito: In the third quarter of 2021, Peñasquito produced 2.2 million ounces of attributable silver, an increase of approximately 9% relative to the third quarter of 2020, with throughput, grades and recoveries all being higher.

Antamina: In the third quarter of 2021, Antamina produced 1.5 million ounces of attributable silver, an increase of approximately 2% relative to the third quarter of 2020, primarily due to higher recoveries . Subsequent to the quarter, as per Compañía Minera Antamina S.A.'s (the operating company of Antamina) news release dated October 31, 2021, operations at Antamina have been temporarily suspended to ensure the health and safety of its workforce and other stakeholders following recent protests in Peru.

Constancia: In the third quarter of 2021, Constancia produced 0.5 million ounces of attributable silver and 8,500 ounces of attributable gold, an increase of approximately 21% and 126%, respectively, relative to the third quarter of 2020. Silver production was higher primarily as a result of higher grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%, partially offset by the receipt of 2,005 ounces in the third quarter of 2020 related to delays in accessing the Pampacancha deposit while no delay payment was received in 2021.

Sudbury: In the third quarter of 2021, Vale's Sudbury mines produced 500 ounces of attributable gold, a decrease of approximately 88% relative to the third quarter of 2020, which was primarily due to lower 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. As a result, the term of the agreement was extended by 69 days.

Stillwater: In the third quarter of 2021, the Stillwater mines produced 2,900 ounces of attributable gold and 5,100 ounces of attributable palladium, a decrease of approximately 7% for gold and 6% for palladium relative to the third quarter of 2020 due to lower grades.

San Dimas: In the third quarter of 2021, San Dimas produced 11,900 ounces of attributable gold, an increase of approximately 29% relative to the third quarter of 2020 , primarily due to higher throughput 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.

Voisey's Bay: In the third quarter of 2021, the Voisey's Bay mine produced 371,000 pounds of attributable cobalt. As at the end of the third quarter 2021, approximately 488,000 pounds of cobalt were held in inventory by Wheaton and 638,000 pounds were produced but not yet delivered. As per Vale's Third 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 70% at the end of the third quarter.

Rosemont: Hudbay announced on September 22, 2021, the intersection of additional high-grade copper sulphide and oxide mineralization on its wholly-owned patented mining claims located within close proximity of its Rosemont copper project in Arizona ("Copper World"). To date, seven deposits have been identified at Copper World with a combined strike length of over seven kilometres. As of June 30, 2021, approximately 166 holes were completed totaling over 91,000 feet of drilling. Hudbay expects to publish an initial inferred mineral resource estimate for Copper World before the end of 2021, and these mineral resource estimates will form the basis for a preliminary economic assessment ("PEA") expected to be released by Hudbay in the first half of 2022. The Copper World discovery is included in Wheaton's area of interest under the PMPA.

Produced But Not Yet Delivered[4]

As at September 30, 2021 , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:

-- 81,200 payable gold ounces, an increase of 15,000 ounces during Q3 2021 , primarily due to an increase during the period at the Salobo mine.

-- 4.1 million payable silver ounces, virtually unchanged during Q3 2021, as decreases during the period at the Peñasquito mine were offset by an increase at the Yauliyacu mine.

   --   5,600 payable palladium ounces, a decrease of 1,200 ounces during Q3 2021. 
   --   638,000 payable cobalt pounds, a decrease of 139,300 pounds during Q3 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.

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 social and economic impact of the COVID-19 pandemic. 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 September 30, 2021, the Company has made donations totaling approximately $4 million through the CSR Fund.

ESG Ratings: Following recent rating updates, Wheaton's Sustainalytics[5] score further improved from 9.2 to 7.9 indicating reduced risk exposure and maintained its AA rating from MSCI(5) demonstrating Wheaton's continued leadership in ESG practices. Wheaton is currently ranked in the Global Top 50 out of more than 14,000 companies and #1 for precious metals out of 122 companies by Sustainalytics(5) .

Partner CSR Program: Wheaton continues to support a wide range of programs with mining partners including Vale, Glencore, Hudbay and First Majestic Silver focused on education, health, entrepreneurial support, and community engagement opportunities in the communities near the mines from which Wheaton receives precious metals. In the third quarter of 2021, a solar panel installation project was completed at a Knowledge Station run by the Vale Foundation in the community of Marabá, Brazil.

Webcast and Conference Call Details

A conference call and webcast will be held on Friday, November 5, 2021 starting at 8:00am PT / 11:00 am ET to discuss these results. To participate in the live call please use one of the following methods:

   Dial toll free from Canada or the US:              1-888-664-6383 
   Dial from outside Canada or the US:              1-416-764-8650 
   Pass code:                                                       61024959 
   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 November 12, 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:                                                       024959# 
   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 330,000 to 345,000 ounces of gold, 25.5 to 26.5 million ounces of silver, and 45,000 to 55,000 GEOs of other metals, resulting in production of approximately 735,000 to 765,000 GEOs, in line with previous guidance. For the five-year period ending in 2025, the Company estimates that average production will amount to 810,000 GEOs (3) . For the ten-year period ending in 2030, the Company estimates that average annual production will amount to 830,000 GEOs (3) .

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.

Condensed Interim Consolidated Statements of Earnings

 
                                                                Three Months Ended           Nine Months Ended 
                                                                   September 30                 September 30 
 (US dollars and shares in thousands, except per share 
 amounts - unaudited)                                               2021          2020          2021          2020 
--------------------------------------------------------   -------------  ------------  ------------  ------------ 
 Sales                                                       $   268,957   $   307,268   $   923,468   $   810,012 
---------------------------------------------------------       --------      --------      --------      -------- 
 Cost of sales 
   Cost of sales, excluding depletion                        $    62,529   $    70,119   $   219,757   $   202,238 
   Depletion                                                      54,976        60,601       195,458       184,104 
--------------------------------------------------------------  --------      --------      --------      -------- 
 Total cost of sales                                         $   117,505   $   130,720   $   415,215   $   386,342 
---------------------------------------------------------       --------      --------      --------      -------- 
 Gross margin                                                $   151,452   $   176,548   $   508,253   $   423,670 
 General and administrative expenses                              13,595        21,326        44,030        56,307 
--------------------------------------------------------------  --------      --------      --------      -------- 
 Earnings from operations                                    $   137,857   $   155,222   $   464,223   $   367,363 
 Other (income) expense                                            1,108         2,624       (2,194)       (1,340) 
--------------------------------------------------------------  --------      --------      --------      -------- 
 Earnings before finance costs and income taxes              $   136,749   $   152,598   $   466,417   $   368,703 
 Finance costs                                                     1,379         2,766         4,309        14,519 
--------------------------------------------------------------  --------      --------      --------      -------- 
 Earnings before income taxes                                $   135,370   $   149,832   $   462,108   $   354,184 
 Income tax (expense) recovery                                     (433)            43           955       (3,601) 
--------------------------------------------------------------  --------      --------      --------      -------- 
 Net earnings                                                $   134,937   $   149,875   $   463,063   $   350,583 
---------------------------------------------------------       --------      --------      --------      -------- 
 Basic earnings per share                                    $     0.300   $     0.334   $     1.029   $     0.782 
 Diluted earnings per share                                  $     0.299   $     0.332   $     1.026   $     0.779 
 Weighted average number of shares outstanding 
   Basic                                                         450,326       449,125       449,977       448,484 
   Diluted                                                       451,717       451,999       451,369       449,892 
==============================================================  ========      ========      ========      ======== 
 
 

Condensed Interim Consolidated Balance Sheets

 
                                                           As at           As at 
                                                       September        December 
                                                              30              31 
 (US dollars in thousands - unaudited)                      2021            2020 
-----------------------------------------------  ---------------  -------------- 
 Assets 
 Current assets 
      Cash and cash equivalents                    $     372,450   $     192,683 
      Accounts receivable                                 10,392           5,883 
      Other                                                9,874           3,265 
----------------------------------------------------  ----------      ---------- 
 Total current assets                              $     392,716   $     201,831 
-----------------------------------------------  ---  ----------      ---------- 
 Non-current assets 
      Mineral stream interests                     $   5,505,663   $   5,488,391 
      Early deposit mineral stream interests              34,741          33,241 
      Mineral royalty interest                             6,606           3,047 
      Long-term equity investments                        71,741         199,878 
      Convertible notes receivable                        15,489          11,353 
      Property, plant and equipment                        5,790           6,289 
      Other                                               13,994          13,242 
----------------------------------------------------  ----------      ---------- 
 Total non-current assets                          $   5,654,024   $   5,755,441 
-----------------------------------------------  ---  ----------      ---------- 
 Total assets                                      $   6,046,740   $   5,957,272 
-----------------------------------------------  ---  ----------      ---------- 
 Liabilities 
 Current liabilities 
      Accounts payable and accrued liabilities     $      14,514   $      13,023 
      Current portion of performance share 
       units                                              13,348          17,297 
      Current portion of lease liabilities                   801             773 
      Other                                                  154              76 
 Total current liabilities                         $      28,817   $      31,169 
-----------------------------------------------  ---  ----------      ---------- 
 Non-current liabilities 
      Bank debt                                    $           -   $     195,000 
      Lease liabilities                                    2,258           2,864 
      Deferred income taxes                                  276             214 
      Performance share units                              8,667          11,784 
      Pension liability                                    2,369           1,670 
----------------------------------------------------  ----------      ---------- 
 Total non-current liabilities                     $      13,570   $     211,532 
-----------------------------------------------  ---  ----------      ---------- 
 Total liabilities                                 $      42,387   $     242,701 
-----------------------------------------------  ---  ----------      ---------- 
 Shareholders' equity 
 Issued capital                                    $   3,685,032   $   3,646,291 
 Reserves                                                 50,769         126,882 
 Retained earnings                                     2,268,552       1,941,398 
----------------------------------------------------  ----------      ---------- 
 Total shareholders' equity                        $   6,004,353   $   5,714,571 
-----------------------------------------------  ---  ----------      ---------- 
 Total liabilities and shareholders' equity        $   6,046,740   $   5,957,272 
-----------------------------------------------  ---  ----------      ---------- 
 

Condensed Interim Consolidated Statements of Cash Flows

 
                                                                Three Months Ended      Nine Months Ended 
                                                                    September 30           September 30 
(US dollars in thousands - unaudited)                               2021        2020        2021        2020 
------------------------------------------------------------   ---------  ----------  ----------  ---------- 
Operating activities 
Net earnings                                                   $ 134,937  $  149,875  $  463,063  $  350,583 
Adjustments for 
      Depreciation and depletion                                  55,445      61,050     196,869     185,542 
      Interest expense                                                30       1,795         324      11,289 
      Equity settled stock based compensation                      1,315       1,319       3,946       4,127 
      Performance share units                                      2,824       9,325     (7,128)      11,734 
      Pension expense                                                294         265         710         533 
      Income tax expense (recovery)                                  433        (43)       (955)       3,601 
      Loss (gain) on fair value adjustment of share purchase 
       warrants held                                               1,246       1,107       2,392         845 
      Fair value (gain) loss on convertible note receivable          490       1,095     (4,136)     (1,382) 
      Investment income recognized in net earnings                 (178)        (23)       (275)       (178) 
      Other                                                          (9)         567         685         513 
Change in non-cash working capital                                 4,434       3,656     (5,341)       2,771 
=============================================================   ========   =========   =========   ========= 
Cash generated from operations before income taxes and 
 interest                                                      $ 201,261  $  229,988  $  650,154  $  569,978 
Income taxes recovered (paid)                                          -           -        (51)          70 
Interest paid                                                       (31)     (1,912)       (401)    (12,745) 
Interest received                                                     57          23         154         177 
=============================================================   ========   =========   =========   ========= 
Cash generated from operating activities                       $ 201,287  $  228,099  $  649,856  $  557,480 
=============================================================   ========   =========   =========   ========= 
Financing activities 
Bank debt repaid                                               $       -  $(153,000)  $(195,000)  $(387,000) 
Credit facility extension fees                                      (54)         (6)     (1,727)     (1,373) 
Share purchase options exercised                                     183       2,763       5,719      20,779 
Lease payments                                                     (196)       (132)       (583)       (438) 
Dividends paid                                                  (57,235)    (37,309)   (160,784)   (120,312) 
=============================================================   ========   =========   =========   ========= 
Cash (used for) generated from financing activities            $(57,302)  $(187,684)  $(352,375)  $(488,344) 
=============================================================   ========   =========   =========   ========= 
Investing activities 
Mineral stream interests                                       $ (1,055)  $     (40)  $(216,845)  $     (40) 
Early deposit mineral stream interests                             (750)       (750)     (1,500)     (1,500) 
Mineral royalty interest                                               -           -     (3,571)           - 
Acquisition of long-term investments                             (5,076)    (10,671)     (7,453)    (10,671) 
Proceeds on disposal of long-term investments                          -      49,454     112,188      49,577 
Dividends received                                                   110           -         110           - 
Other                                                              (171)       (363)       (691)       (691) 
=============================================================   ========   =========   =========   ========= 
Cash generated from (used for) investing activities            $ (6,942)  $   37,630  $(117,762)  $   36,675 
=============================================================   ========   =========   =========   ========= 
Effect of exchange rate changes on cash and cash equivalents   $    (39)  $       25  $       48  $       37 
=============================================================   ========   =========   =========   ========= 
Increase in cash and cash equivalents                          $ 137,004  $   78,070  $  179,767  $  105,848 
Cash and cash equivalents, beginning of period                   235,446     131,764     192,683     103,986 
=============================================================   ========   =========   =========   ========= 
Cash and cash equivalents, end of period                       $ 372,450  $  209,834  $  372,450  $  209,834 
-------------------------------------------------------------   --------   ---------   ---------   --------- 
 

Summary of Units Produced

 
                              Q3 2021           Q2 2021              Q1 2021          Q4 2020         Q3 2020         Q2 2020         Q1 2020         Q4 2019 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Gold ounces 
produced (2) 
  Salobo                       55,205            55,590               46,622           62,854          63,408          59,104          62,575          74,716 
  Sudbury (3)                     465             4,563                7,004            6,659           3,798           9,257           7,795           6,468 
  Constancia (8)                8,533             5,519                2,453            3,929           3,780           3,470           3,681           4,757 
  San Dimas (4, 8)             11,936            11,478               10,491           11,652           9,228           6,074          11,318          11,352 
  Stillwater (5)                2,949             2,962                3,041            3,290           3,176           3,222           2,955           3,585 
  Other 
       Minto (6)                1,703             3,206                2,638              789           1,832           2,928           2,124           2,189 
       777 (9)                  4,717             5,035                6,280            2,866           5,278           4,728           4,551           3,987 
       Marmato                    433             1,713                    -                -               -               -               -               - 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
  Total Other                   6,853             9,954                8,918            3,655           7,110           7,656           6,675           6,176 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Total gold ounces 
produced                       85,941            90,066               78,529           92,039          90,500          88,783          94,999         107,054 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Silver ounces 
produced (2) 
  Peñasquito 
  (8)                           2,180             2,026                2,202            2,014           1,992             967           2,658           1,895 
  Antamina (8)                  1,548             1,558                1,577            1,930           1,516             612           1,311           1,342 
  Constancia (8)                  521               468                  406              478             430             254             461             632 
  Other 
       Los Filos 
       (8)                         12                26                   31                6              17              14              29              55 
       Zinkgruvan                 658               457                  420              515             498             389             662             670 
       Yauliyacu 
       (8)                        432               821                  737              454             679             273             557             358 
       Stratoni                     8               164                  165              185             156             148             183             147 
       Minto (6)                   25                33                   21               16              15              19              18              18 
       Neves-Corvo                362               408                  345              420             281             479             377             385 
       Aljustrel                  314               400                  474              440             348             388             352             325 
       Cozamin                    199               183                  230                -               -               -               -               - 
       Marmato                     10                39                    -                -               -               -               -               - 
       Keno Hill                   44                55                   27                -               -               -               -               - 
       777 (9)                     81                83                  130               51              96             108              96              81 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
  Total Other                   2,145             2,669                2,580            2,087           2,090           1,818           2,274           2,039 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Total silver 
ounces produced                 6,394             6,721                6,765            6,509           6,028           3,651           6,704           5,908 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Palladium ounces 
produced (2) 
  Stillwater (5)                5,105             5,301                5,769            5,672           5,444           5,759           5,312           6,057 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Cobalt pounds 
produced (2) 
  Voisey's Bay                370,522           379,757        1,162,243 (1)                -               -               -               -               - 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
GEOs produced (7)             184,918           193,927              191,308          189,682         181,184         146,857         194,901         196,850 
SEOs produced (7)              13,314            13,963               13,774           13,657          13,045          10,574          14,033          14,173 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Average payable 
rate (2) 
  Gold                          96.2%             95.8%                95.0%            95.2%           95.3%           94.7%           95.1%           95.6% 
  Silver                        86.6%             87.0%                86.6%            86.3%           86.1%           81.9%           85.6%           85.3% 
  Palladium                     94.5%             95.0%                91.6%            93.6%           94.0%           90.8%           91.0%           92.2% 
  Cobalt                        93.3%             93.3%                93.3%             n.a.            n.a.            n.a.            n.a.            n.a. 
  GEO (7)                       91.2%             91.7%                90.4%            91.1%           91.1%           89.8%           90.4%           91.5% 
------------------  -----------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
 
   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. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees.

4) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000 ounces; Q4-2019 - 415,000 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

 
                            Q3 2021           Q2 2021              Q1 2021          Q4 2020         Q3 2020         Q2 2020         Q1 2020         Q4 2019 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Gold ounces sold 
  Salobo                     35,185            57,296               51,423           53,197          59,584          68,487          74,944          58,137 
  Sudbury (2)                 1,915             6,945                3,691            7,620           7,858           7,414           4,822           7,394 
  Constancia (7)              8,159             2,321                1,676            3,853           4,112           3,024           3,331           5,108 
  San Dimas (7)              11,346            11,214               10,273           11,529           9,687           6,030          11,358          11,499 
  Stillwater (3)              2,820             2,574                3,074            3,069           3,015           3,066           3,510           2,925 
  Other 
       Minto (4)              1,907             2,359                2,390            1,540               -               -               -               - 
       777                    5,879             5,694                2,577            5,435           5,845           4,783           2,440           4,160 
       Marmato                  438             1,687                    -                -               -               -               -               - 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
  Total Other                 8,224             9,740                4,967            6,975           5,845           4,783           2,440           4,160 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Total gold ounces 
 sold                        67,649            90,090               75,104           86,243          90,101          92,804         100,405          89,223 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Silver ounces 
 sold 
  Peñasquito 
   (7)                        2,210             1,844                2,174            1,417           1,799           1,917           2,310           1,268 
  Antamina (7)                1,502             1,499                1,930            1,669           1,090             788           1,244           1,227 
  Constancia (7)                484               295                  346              442             415             254             350             672 
  Other 
       Los Filos 
       (7)                       12                42                   27                -              19              25              37              26 
       Zinkgruvan               354               355                  293              326             492             376             447             473 
       Yauliyacu 
       (7)                      182               601                1,014               15             580             704               9             561 
       Stratoni                  41               167                  117              169             134              77             163             120 
       Minto (4)                 24                29                   26               20               -               -               -               - 
       Neves-Corvo              193               215                  239              145             201             236             204             154 
       Aljustrel                155               208                  257              280             148             252             123             121 
       Cozamin                  170               168                  173                -               -               -               -               - 
       Marmato                   10                35                    -                -               -               -               -               - 
       Keno Hill                 51                33                   12                -               -               -               -               - 
       777                       99               109                   49               93             121             100              41              62 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
  Total Other                 1,291             1,962                2,207            1,048           1,695           1,770           1,024           1,517 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Total silver 
 ounces sold                  5,487             5,600                6,657            4,576           4,999           4,729           4,928           4,684 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Palladium ounces 
 sold 
  Stillwater (3)              5,703             3,869                5,131            4,591           5,546           4,976           4,938           5,312 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Cobalt pounds 
 sold 
  Voisey's Bay              131,174           394,623              132,277                -               -               -               -               - 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
GEOs sold (5)               152,432           176,700              175,419          155,665         166,611         164,844         175,154         161,066 
SEOs sold (5)                10,975            12,722               12,630           11,208          11,996          11,869          12,611          11,597 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Cumulative payable 
 units PBND (6) 
     Gold ounces             81,246            66,250               70,072           70,555          75,750          79,632          88,383          98,475 
     Silver ounces            4,056             3,975                3,738            4,486           3,437           3,222           4,961           4,142 
     Palladium 
     ounces                   5,619             6,822                5,373            5,597           4,616           4,883           4,875           4,872 
     Cobalt pounds          637,986           777,304              819,819                -               -               -               -               - 
     GEO (5)                151,056           137,835              136,933          140,008         129,391         130,623         163,521         162,225 
     SEO (5)                 10,423             9,372                9,277           10,081           9,316           9,405          11,774          11,680 
------------------  ---------------  ----------------  -------------------  ---------------  --------------  --------------  --------------  -------------- 
Inventory on 
 hand 
  Cobalt pounds             488,324           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 September 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                 55,205   35,185  $   1,795  $     412  $     374  $ 63,154  $  35,504  $   50,404  $2,455,567 
  Sudbury (4)               465    1,915      1,794        400      1,024     3,436        708       2,242     308,158 
  Constancia              8,533    8,159      1,795        411        315    14,645      8,723      11,487     101,741 
  San Dimas              11,936   11,346      1,795        618        322    20,365      9,693      13,351     171,617 
  Stillwater              2,949    2,820      1,795        326        397     5,061      3,024       4,144     220,949 
  Other (5)               6,853    8,224      1,794        590         38    14,755      9,586       9,887      64,985 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
                         85,941   67,649  $   1,795  $     464  $     337  $121,416  $  67,238  $   91,515  $3,323,017 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Silver 
  Peñasquito         2,180    2,210  $   24.09  $    4.29  $    3.55  $ 53,259  $  35,932  $   43,776  $  328,470 
  Antamina                1,548    1,502      23.99       4.80       7.53    36,000     17,503      28,993     589,816 
  Constancia                521      484      24.09       6.05       7.56    11,668      5,076       9,033     208,537 
  Other (6)               2,145    1,291      22.97       6.33       4.49    29,660     15,686      24,011     602,796 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
                          6,394    5,487  $   23.80  $    5.06  $    5.21  $130,587  $  74,197  $  105,813  $1,729,619 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Palladium 
  Stillwater              5,105    5,703  $   2,426  $     468  $     442  $ 13,834  $   8,644  $   11,168  $  234,883 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay          370,522  131,174  $   23.78  $    5.15  $    8.17  $  3,120  $   1,373  $      159  $  218,144 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Operating results                                                          $268,957  $ 151,452  $  208,655  $5,505,663 
-------------------------------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Other 
  General and administrative                                                         $(13,595)  $  (6,432) 
  Finance costs                                                                        (1,379)     (1,039) 
  Other                                                                                (1,108)         103 
  Income tax                                                                             (433)           - 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Total other                                                                          $(16,515)  $  (7,368)  $  541,077 
----------------------------------------   --------   --------   --------   -------   --------   ---------   --------- 
                                                                                     $ 134,937  $  201,287  $6,046,740 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
 

1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except 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 as well as 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 as well as 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 September 30, 2021 were as follows:

 
                                                                                 Three Months Ended September 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)                  184,918     152,432     $ 1,764         $ 410            $ 1,354        $ 361       $ 993 
 Silver 
  equivalent 
  basis (5)                   13,314      10,975     $ 24.51        $ 5.70            $ 18.81       $ 5.01     $ 13.80 
-----------------  -----------------  ----------  ----------  ------------  -----------------  -----------  ---------- 
 

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 September 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                 63,408  59,584  $   1,902  $     408  $     374  $113,319  $  66,700  $   91,917  $2,529,258 
  Sudbury (4)             3,798   7,858      1,929        400        831    15,161      5,485      12,018     327,352 
  Constancia              3,780   4,112      1,902        407        338     7,819      4,758       6,147     106,870 
  San Dimas               9,228   9,687      1,902        612        315    18,423      9,442      14,309     185,835 
  Stillwater              3,176   3,015      1,902        345        449     5,734      3,341       4,695     225,688 
  Other (5)               7,110   5,845      1,929        423        305    11,278      7,022       8,804       9,184 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                         90,500  90,101  $   1,906  $     428  $     404  $171,734  $  96,748  $  137,890  $3,384,187 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Silver 
  Peñasquito         1,992   1,799  $   24.55  $    4.26  $    3.24  $ 44,154  $  30,660  $   36,492  $  355,167 
  Antamina                1,516   1,090      24.55       4.67       8.74    26,758     12,139      21,666     641,521 
  Constancia                430     415      24.55       5.99       7.63    10,190      4,538       7,704     220,417 
  Other (6)               2,090   1,695      24.98       8.37       1.94    42,332     24,859      24,333     475,613 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                          6,028   4,999  $   24.69  $    5.89  $    4.36  $123,434  $  72,196  $   90,195  $1,692,718 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Palladium 
  Stillwater              5,444   5,546  $   2,182  $     383  $     428  $ 12,100  $   7,604  $    9,977  $  243,354 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay                -       -  $    n.a.  $    n.a.  $    n.a.  $      -  $       -  $        -  $  227,510 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Operating results                                                         $307,268  $ 176,548  $  238,062  $5,547,769 
-------------------------------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Other 
  General and administrative                                                        $(21,326)  $  (7,239) 
  Finance costs                                                                       (2,766)     (2,820) 
  Other                                                                               (2,624)          96 
  Income tax                                                                               43           - 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Total other                                                                         $(26,673)  $  (9,963)  $  543,418 
---------------------------------------   --------   --------   --------   -------   --------   ---------   --------- 
                                                                                    $ 149,875  $  228,099  $6,091,187 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
 

1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except 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 as well as 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 September 30, 2020 were as follows:

 
                                                                                 Three Months Ended September 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)                  181,184     166,611     $ 1,844         $ 421            $ 1,423        $ 364     $ 1,059 
 Silver 
  equivalent 
  basis (5)                   13,045      11,996     $ 25.61        $ 5.85            $ 19.76       $ 5.05     $ 14.71 
-----------------  -----------------  ----------  ----------  ------------  -----------------  -----------  ---------- 
 

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 from Voisey's Bay during the first quarter of 2021; and (iv) cash operating margin. The Company has removed the non-IFRS measure associated with 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 
                                                                                               September 30 
 (in thousands, except for per share amounts)                                                   2021          2020 
------------------------------------------------------------------------------------   -------------  ------------ 
 Net earnings                                                                            $   134,937   $   149,875 
 Add back (deduct): 
   (Gain) loss on fair value adjustment of share purchase warrants held                        1,246         1,107 
   (Gain) loss on fair value adjustment of convertible notes receivable                          490         1,095 
   Income tax expense (recovery) recognized in the Statement of Shareholders' Equity           (269)          (92) 
   Income tax expense (recovery) recognized in the Statement of OCI                              627           (9) 
   Other                                                                                          56            31 
------------------------------------------------------------------------------------------  --------      -------- 
 Adjusted net earnings                                                                   $   137,087   $   152,007 
-------------------------------------------------------------------------------------       --------      -------- 
 Divided by: 
   Basic weighted average number of shares outstanding                                       450,326       449,125 
   Diluted weighted average number of shares outstanding                                     451,717       451,999 
------------------------------------------------------------------------------------------  --------      -------- 
 Equals: 
   Adjusted earnings per share - basic                                                   $     0.304   $     0.338 
   Adjusted earnings per share - diluted                                                 $     0.303   $     0.336 
-------------------------------------------------------------------------------------       --------      -------- 
 

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 
                                                                    September 30 
 (in thousands, except for per share amounts)                        2021          2020 
---------------------------------------------------------   -------------  ------------ 
 Cash generated by operating activities                       $   201,287   $   228,099 
----------------------------------------------------------       --------      -------- 
 Divided by: 
   Basic weighted average number of shares outstanding            450,326       449,125 
   Diluted weighted average number of shares outstanding          451,717       451,999 
---------------------------------------------------------------  --------      -------- 
 Equals: 
   Operating cash flow per share - basic                      $     0.447   $     0.508 
   Operating cash flow per share - diluted                    $     0.446   $     0.505 
----------------------------------------------------------       --------      -------- 
 

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 
                                                                                              September 30 
 (in thousands, except for gold and palladium ounces sold, cobalt pounds sold and 
 per unit 
 amounts)                                                                                      2021           2020 
----------------------------------------------------------------------------------   --------------  ------------- 
 Cost of sales                                                                         $    117,505   $    130,720 
 Less: depletion                                                                           (54,976)       (60,601) 
----------------------------------------------------------------------------------------  ---------      --------- 
 Cash cost of sales                                                                    $     62,529   $     70,119 
-----------------------------------------------------------------------------------       ---------      --------- 
 Cash cost of sales is comprised of: 
   Total cash cost of gold sold                                                        $     31,405   $     38,570 
   Total cash cost of silver sold                                                            27,782         29,426 
   Total cash cost of palladium sold                                                          2,667          2,123 
   Total cash cost of cobalt sold                                                               675              - 
----------------------------------------------------------------------------------   ---  ---------      --------- 
   Total cash cost of sales                                                            $     62,529   $     70,119 
-----------------------------------------------------------------------------------       ---------      --------- 
 Divided by: 
   Total gold ounces sold                                                                    67,649         90,101 
   Total silver ounces sold                                                                   5,487          4,999 
   Total palladium ounces sold                                                                5,703          5,546 
   Total cobalt pounds sold                                                                 131,174              - 
----------------------------------------------------------------------------------   ---  ---------      --------- 
 Equals: 
   Average cash cost of gold (per ounce)                                               $        464   $        428 
   Average cash cost of silver (per ounce)                                             $       5.06   $       5.89 
   Average cash cost of palladium (per ounce)                                          $        468   $        383 
   Average cash cost of cobalt (per pound)                                             $       5.15   $       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 
                                                                                               September 30 
 (in thousands, except for cobalt pounds sold, gold and palladium ounces sold and 
 per unit 
 amounts)                                                                                       2021          2020 
====================================================================================   =============  ============ 
 Total sales: 
   Gold                                                                                  $   121,416   $   171,734 
   Silver                                                                                $   130,587   $   123,434 
   Palladium                                                                             $    13,834   $    12,100 
   Cobalt                                                                                $     3,120   $         - 
 Divided by: 
   Total gold ounces sold                                                                     67,649        90,101 
   Total silver ounces sold                                                                    5,487         4,999 
   Total palladium ounces sold                                                                 5,703         5,546 
   Total cobalt pounds sold                                                                  131,174             - 
------------------------------------------------------------------------------------   ---  --------      -------- 
 Equals: 
   Average realized price of gold (per ounce)                                            $     1,795   $     1,906 
   Average realized price of silver (per ounce)                                          $     23.80   $     24.69 
   Average realized price of palladium (per ounce)                                       $     2,426   $     2,182 
   Average realized price of cobalt (per pound)                                          $     23.78   $      n.a. 
 Less: 
   Average cash cost of gold (1) (per ounce)                                             $     (464)   $     (428) 
   Average cash cost of silver (1) (per ounce)                                           $    (5.06)   $    (5.89) 
   Average cash cost of palladium (1) (per ounce)                                        $     (468)   $     (383) 
   Average cash cost of cobalt (1) (per pound)                                           $    (5.15)   $      n.a. 
------------------------------------------------------------------------------------   ---  --------      -------- 
 Equals: 
   Cash operating margin per gold ounce sold                                             $     1,331   $     1,478 
         As a percentage of realized price of gold                                               74%           78% 
   Cash operating margin per silver ounce sold                                           $     18.74   $     18.80 
         As a percentage of realized price of silver                                             79%           76% 
   Cash operating margin per palladium ounce sold                                        $     1,958   $     1,799 
         As a percentage of realized price of palladium                                          81%           82% 
   Cash operating margin per cobalt pound sold                                           $     18.63   $      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), potential implementation of a 15% global minimum tax, counterparty credit and liquidity, mine operator concentration, indebtedness and guarantees, hedging, competition, claims and legal proceedings against Wheaton or the Mining Operations, security over underlying assets, governmental regulations, international operations of Wheaton and the Mining Operations, exploration, development, operations, expansions and improvements at the Mining Operations, environmental regulations 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-K filed March 11, 2021 both on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure"). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation): the 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

End Notes

[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] 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.

[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]) Rating current as of October 7, 2021, for Sustainalytics and as of September 23, 2021, for MSCI.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

QRTUVSNRASUARRA

(END) Dow Jones Newswires

November 05, 2021 03:00 ET (07:00 GMT)

Wheaton Precious Metals (LSE:0VOT)
Historical Stock Chart
From Dec 2021 to Jan 2022 Click Here for more Wheaton Precious Metals Charts.
Wheaton Precious Metals (LSE:0VOT)
Historical Stock Chart
From Jan 2021 to Jan 2022 Click Here for more Wheaton Precious Metals Charts.