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.
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END
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