TIDMWPM

RNS Number : 3438F

Wheaton Precious Metals Corp.

04 November 2022

November 4, 2022 TSX | NYSE | LSE: WPM

Vancouver, British Columbia

Designated News Release

THIRD quarter 2022 financial results

Wheaton Precious Metals Maintains

Strong Cash Operating Margins in the Third Quarter of 2022

"At Wheaton, we focus on building a sustainable company that provides investors with profitable, long-term exposure to precious metals. While inflationary pressures have impacted all sectors of the economy, especially mining, Wheaton has maintained cash operating margins of over 75% year to date, highlighting the strength of our streaming business model," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "Despite some recent challenges, we are pleased with the improvements we have seen over the third quarter in our diverse portfolio of high-quality assets, which is forecast to deliver significant organic growth over the next five years and sustained precious metals production for decades to come. We also are very optimistic that we can continue to add accretive new streams to the portfolio given the number of opportunities that we are currently reviewing coupled with one of the strongest balance sheets in the sector."

Solid Financial Results and Strong Balance Sheet

   --   $219 million in revenue and $154 million in operating cash flow in the quarter 
   --   $197 million in net earnings and $94 million in adjusted net earnings[1] in the quarter 
   --   A cash balance of $495 million and no debt as at September 30, 2022 

-- Extended the maturity date of the undrawn US$2 billion revolving credit facility to July 18, 2027

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

High Quality Asset Base

   --   Streaming agreements on 21 operating mines and 13 development projects 

-- 85% of attributable production from assets in the lowest half of their respective cost curves[2]

-- 29 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration[3]

-- Average annual production for the ten-year period ending December 31, 2031, is expected to be approximately 850,000 GEOs (2) (,[4])

-- Completed the previously disclosed termination of the Keno Hill precious metal purchase agreement ("PMPA") for $141 million, resulting in an impairment reversal of $10 million and a gain on disposition of $104 million

-- Announced the proposed termination of the Yauliyacu PMPA for $150 million, less the aggregate value of any deliveries to Wheaton of silver produced in 2022 prior to closing

Leadership in Sustainability

-- Top Rankings: #1 out of 119 precious metals companies and Global Top 50 out of over 14,900 multi-sector companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS

-- Commitment to Net-Zero Carbon Emissions by 2050 supported by interim targets covering all material emissions including Scope 3

-- Established a sustainability linked element in connection with the extension of the revolving credit facility

   --   Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights 
   --   Recognized by ESG Investing for Best Climate Related Reporting (Mid Cap) 
   --   Supported flood relief to local communities near the Stillwater mine in Montana 
   --   Presenting sponsor of BC Cancer Foundation's Tour de Cure supporting cancer research 

Operational Overview

 
(all figures in US dollars unless 
otherwise noted)                      Q3 2022    Q3 2021   Change   YTD 2022   YTD 2021   Change 
----------------------------------    -------   --------  -------   --------   --------  ------- 
Units produced 
  Gold ounces                          73,508     85,624  (14.2)%    218,004    254,225  (14.2)% 
  Silver ounces                         5,883      6,349   (7.3)%     18,645     19,643   (5.1)% 
  Palladium ounces                      3,229      5,105  (36.7)%     11,616     16,175  (28.2)% 
  Cobalt pounds                           226    370      (39.0)%        596      1,912  (68.8)% 
  Gold equivalent ounces (2)          159,852    183,012  (12.7)%    491,088    570,040  (13.9)% 
Units sold 
  Gold ounces                          62,000     67,649   (8.4)%    224,238    232,843   (3.7)% 
  Silver ounces                         5,234      5,487   (4.6)%     16,635     17,744   (6.3)% 
  Palladium ounces                      4,227      5,703  (25.9)%     11,680     14,703  (20.6)% 
  Cobalt pounds                           115        131  (12.2)%        851        658   29.3 % 
  Gold equivalent ounces (2)          138,824    149,862   (7.4)%    475,259    498,635   (4.7)% 
Change in PBND and Inventory 
  Gold equivalent ounces (2)            6,620     17,659   11,039   (32,497)     22,375   54,872 
-----------------------------------   -------   --------  -------   --------   --------  ------- 
Revenue                              $218,836  $ 268,957  (18.6)%  $ 829,002  $ 923,468  (10.2)% 
Net earnings                         $196,460  $ 134,937   45.6 %  $ 503,001  $ 463,063    8.6 % 
  Per share                          $  0.435  $   0.300   45.0 %  $   1.114  $   1.029    8.3 % 
Adjusted net earnings (1)            $ 93,878  $ 137,087  (31.5)%  $ 401,168  $ 459,848  (12.8)% 
  Per share (1)                      $  0.208  $   0.304  (31.6)%  $   0.889  $   1.022  (13.0)% 
Operating cash flows                 $154,497  $ 201,287  (23.2)%  $ 571,396  $ 649,856  (12.1)% 
  Per share (1)                      $  0.342  $   0.447  (23.5)%  $   1.266  $   1.444  (12.3)% 
-----------------------------------   -------   --------  -------   --------   --------  ------- 
 

All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.

Third Quarter Operating Asset Highlights

Salobo: In the third quarter of 2022, Salobo produced 44,200 ounces of attributable gold, a decrease of approximately 20% relative to the third quarter of 2021, primarily due to lower grades and recovery. According to Vale S.A.'s ("Vale"), plant performance improved relative to the second quarter of 2022 despite additional planned and corrective maintenance performed in the third quarter. Vale plans for maintenance activities to continue in the fourth quarter of 2022 to further improve plant reliability.

Vale reports that physical completion of the Salobo III mine expansion was 98% at the end of the third quarter. Progress in the third quarter included the primary crushing circuit being fully commissioned, hot commissioning of the conveyor system, and commencement of wet commissioning of the flotation circuit.

Antamina: In the third quarter of 2022, Antamina produced 1.4 million ounces of attributable silver, a decrease of approximately 11% relative to the third quarter of 2021, primarily due to lower grades as per the mine plan .

Peñasquito: In the third quarter of 2022, Peñasquito produced 2.0 million ounces of attributable silver, a decrease of approximately 7% relative to the third quarter of 2021 with lower recovery and grades as per the mine plan.

Constancia: In the third quarter of 2022, Constancia produced 0.6 million ounces of attributable silver and 7,200 ounces of attributable gold, an increase of approximately 8% for silver production and a decrease of approximately 16% for gold production relative to the third quarter of 2021, with the increase in silver being primarily due to higher throughput and the decrease in gold production being primarily due to the mining of lower-grade material resulting from mine sequencing.

Sudbury: In the third quarter of 2022, Vale's Sudbury mines produced 4,700 ounces of attributable gold, an increase of approximately 3109% relative to the third quarter of 2021, primarily due to operations at the mine being temporarily suspended due to a labour dispute which lasted from June 1, 2021 to August 9, 2021. Vale reports that in the third quarter, the first phase of the Copper Cliff Complex South Mine Project was opened, including the development of more than 12km of tunnels to reunite the south and north shafts of the mine, which is expected to nearly double ore production at the Copper Cliff Mine. The Copper Cliff Mine has historically represented approximately 20% of attributable production for Wheaton from Sudbury.

Stillwater: In the third quarter of 2022, the Stillwater mines produced 1,800 ounces of attributable gold and 3,200 ounces of attributable palladium, a decrease of approximately 38% for gold and 37% for palladium relative to the third quarter of 2021. As per Sibanye-Stillwater Limited, regional floods impacted the Stillwater operations on June 13, 2022, including damage to bridges and the access road to the Stillwater mine. Operations at the Stillwater mine, which accounts for 60% of the mined production from the Stillwater operations, were suspended for seven weeks, but resumed on July 29, 2022. Access to the East Boulder mine and the Columbus metallurgical facilities remains intact and both facilities continued operating during the flooding events.

San Dimas: In the third quarter of 2022, San Dimas produced 11,800 ounces of attributable gold, virtually unchanged relative to the third quarter of 2021 , primarily due to lower throughput offset by higher grades . According to First Majestic Silver Corp., silver and gold grades were higher in the third quarter compared to the prior quarter due to improvements in dilution control from the long hole stoping in the Jessica and Regina veins and due to initial production from the Perez vein commencing in July.

Other Gold: In the third quarter of 2022, total Other Gold attributable production was 3,700 ounces, a decrease of approximately 46% relative to the third quarter of 2021, primarily due to the closure of the 777 mine in June 2022.

Other Silver: In the third quarter of 2022, total Other Silver attributable production was 1.9 million ounces, a decrease of approximately 8% relative to the third quarter of 2021, primarily due to lower production at Aljustrel (grades) and Stratoni (placed into care and maintenance).

Voisey's Bay: In the third quarter of 2022, the Voisey's Bay mine produced 226,000 pounds of attributable cobalt, a decrease of approximately 39% relative to the third quarter of 2021, primarily due to mining lower grade material during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay underground project. Vale reports that physical completion of the Voisey's Bay underground mine extension was 78% at the end of the third quarter. Progress in the third quarter included surface activities being well advanced with the port fuel tanks installed and Eastern Deeps mine fresh air infrastructure completed, and in the underground, the Reid Brook bulk Material Handling System advancing on schedule.

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.

Third Quarter Development Asset Highlights

Goose Project: Sabina Gold & Silver Corp. ("Sabina") announced a formal construction decision for the Goose Project. Sabina noted that the project will be in a position to commence full construction in early 2023 with first production expected in 2025.

Blackwater Project: Artemis Gold Inc. ("Artemis") announced the commencement of site preparation work at the plant site including site clearing, bulk earthworks and sediment/erosion control. Artemis believes the Blackwater plant site will start major construction works in the first quarter of 2023.

Marathon Project: Generation Mining Limited ("Gen Mining") delivered the environmental assessment report for the Marathon Project to federal and provincial ministers and announced the purchasing of an unused, surplus SAG mill and ball mill. Gen Mining anticipates starting construction late in the first quarter of 2023.

Curipamba Project: Adventus Mining Corporation ("Adventus") announced an Investment Protection Agreement commitment declaration by the Government of Ecuador indicating a significant milestone in the development of the Curipamba Project. Adventus plans for a formal construction commencement in the second quarter of 2023.

Portfolio Optimization

Keno Hill: On September 7, 2022, Hecla Mining Company ("Hecla") completed the previously announced acquisition of all the outstanding common shares of Alexco. In connection with this acquisition, the Company entered into an agreement with Hecla to terminate the Keno Hill PMPA effective September 7, 2022, in exchange for 34,800,989 common shares of Hecla valued at $141 million (the "Hecla shares"[5]), resulting in an impairment reversal of the Keno Hill PMPA in the amount of $10 million and a gain on disposal of $104 million.

Yauliyacu: On August 18, 2022, the Company announced that it had entered into an agreement with Glencore plc ("Glencore") to terminate its silver stream on the Yauliyacu Mine in Peru for a cash payment of $150 million, less the aggregate value of any deliveries to Wheaton, prior to closing, of silver produced subsequent to December 31, 2021. Wheaton has agreed to terminate the stream in order to help facilitate the sale by Glencore of the Yauliyacu Mine. As at September 30, 2022, the net termination payment is estimated to be approximately $136 million. The closing of the transaction is contingent on Glencore divesting the Yauliyacu mine by December 31, 2022 and certain other customary conditions. Glencore retains the option to terminate the silver stream even if it does not divest the Yauliyacu mine by December 31, 2022.

Financial Review

Revenues

Revenue was $219 million in the third quarter of 2022 representing an 19% decrease from the third quarter of 2021 due primarily to a 12% decrease in the average realized gold equivalent(2) price; and a 7% decrease in the number of GEOs(2) sold.

Revenue was $829 million in the nine months ended September 30, 2022, representing a 10% decrease from the comparable period of the previous year due primarily to a 5% decrease in the number of gold equivalent(2) ounces sold; and a 6% decrease in the average realized gold equivalent(2) price.

Cash Costs and Margin

Average cash costs(1) in the third quarter of 2022 were $439 per GEO(2) as compared to $417 in the third quarter of 2021. This resulted in a cash operating margin(1) of $1,137 per GEO(2) sold, a decrease of 17% as compared with the third quarter of 2021.

Average cash costs(1) for the nine months ended September 30, 2022 were $433 per GEO(2) as compared to $441 in the comparable period of the previous year. This resulted in a cash operating margin(1) of $1,311 per GEO(2) sold, a 7% decrease from the comparable period of the previous year.

Balance Sheet (at September 30, 2022 )

   --   Approximately $495 million of cash on hand. 

-- During the third quarter of 2022, the Company made upfront cash payments totaling $47 million relative to PMPA's.

-- The Company extended its existing undrawn $2 billion revolving term loan with its maturity date now July 18, 2027 . As part of the extension, Wheaton added a sustainability-linked element which may impact the interest rate paid on drawn amounts and standby fees.

-- The Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

Sustainability

Community Investment Program:

-- In the third quarter, Wheaton Precious Metals International Ltd. ("Wheaton International") in partnership with Sibanye-Stillwater Limited, donated funds to support flood relief in the community of Nye, which is the closest town to the Stillwater mine in Montana. Funds were used to clean up debris and support other flood-related recovery efforts and to support families in financial need whose houses were damaged.

-- In the third quarter, new reading rooms were opened in the state of Maranh o, Brazil, as part of the Routes and Literary Network project that is maintained by the Vale Foundation in partnership with Wheaton International and the Associação Cidade Escola Aprendiz. The new reading rooms benefit 1,800 students from three different schools.

-- On August 27(th) , the Tour de Cure, presented by Wheaton Precious Metals, raised CA$6.3 million for the BC Cancer Foundation. The event is B.C.'s largest cycling fundraiser attracting over 1,100 participants. Since 2014, Wheaton has donated over CA$3.2 million towards crucial advancements in cancer research and care. In addition, the Silver Bullets, Wheaton's cycling team comprised of employees, friends and family have collectively raised over CA$2 million through the Tour de Cure.

Sustainability-Linked Revolving Credit Facility: Wheaton has added a sustainability-linked element in connection with the extension to its existing undrawn US$2 billion revolving credit facility, underscoring Wheaton's commitment to sustainability initiatives. Under the renewed revolving credit facility, the interest rate paid on drawn amounts and standby fees will be adjusted based upon Wheaton's performance in three sustainability-related areas including climate change, diversity and overall sustainability performance.

Webcast and Conference Call Details

A conference call and webcast will be held on Friday, November 4, 2022 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:                                                      30587457 
   Live webcast:                                                  Webcast URL 

The accompanying slideshow will also be available in PDF format on the 'Events' page of the Wheaton Precious Metals website before the conference call.

The conference call will be recorded and available until November 11, 2022 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:                                                      587457 # 
   Archived 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, Neil Burns, P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).

Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx .

About Wheaton Precious Metals Corp. 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 for 2022 is forecast to be 300,000 to 320,000 ounces of gold, 22.5 to 24.0 million ounces of silver, and 35,000 to 40,000 gold equivalent ounces(2) ("GEOs"), resulting in production of approximately 640,000 to 680,000 GEOs(2) . As a result of the proposed termination of the Yauliyacu PMPA, the Company now expects average annual production for the five-year period ending December 31, 2026, to be approximately 800,000 GEOs(2,) (4) (from 820,000 GEOs(2,) (4) previously) and for the ten-year period ending December 31, 2031, to be approximately 850,000 GEOs(2) (,) (4) (from 870,000 GEOs(2,) (4) previously).

In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.

End Notes

Condensed Interim Consolidated Statements of Earnings

 
                                                                   Three Months Ended    Nine Months Ended 
                                                                      September 30          September 30 
(US dollars and shares in thousands, except per share amounts - 
 unaudited)                                                             2022      2021        2022      2021 
----------------------------------------------------------------  ----------  --------  ----------  -------- 
Sales                                                             $  218,836  $268,957  $  829,002  $923,468 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Cost of sales 
   Cost of sales, excluding depletion                             $   60,955  $ 62,529  $  205,891  $219,757 
   Depletion                                                          55,728    54,976     178,812   195,458 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Total cost of sales                                               $  116,683  $117,505  $  384,703  $415,215 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Gross margin                                                      $  102,153  $151,452  $  444,299  $508,253 
General and administrative expenses                                    8,360     7,932      27,448    26,572 
Share based compensation                                                  77     4,139      11,586    13,746 
Donations and community investments                                    1,406     1,524       3,379     3,712 
Reversal of impairment of mineral stream interests                  (10,330)         -    (10,330)         - 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Earnings from operations                                          $  102,640  $137,857  $  412,216  $464,223 
Gain on disposal of mineral stream interest                        (104,425)         -   (104,425)         - 
Other (income) expense                                               (2,799)     1,108     (3,448)   (2,194) 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Earnings before finance costs and income taxes                    $  209,864  $136,749  $  520,089  $466,417 
Finance costs                                                          1,398     1,379       4,209     4,309 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Earnings before income taxes                                      $  208,466  $135,370  $  515,880  $462,108 
Income tax (expense) recovery                                       (12,006)     (433)    (12,879)       955 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Net earnings                                                      $  196,460  $134,937  $  503,001  $463,063 
----------------------------------------------------------------   ---------   -------   ---------   ------- 
Basic earnings per share                                          $    0.435  $  0.300  $    1.114  $  1.029 
Diluted earnings per share                                        $    0.434  $  0.299  $    1.112  $  1.026 
Weighted average number of shares outstanding 
   Basic                                                             451,757   450,326     451,402   449,977 
   Diluted                                                           452,386   451,717     452,221   451,369 
================================================================   =========   =======   =========   ======= 
 

Condensed Interim Consolidated Balance Sheets

 
                                                               As at            As at 
                                                        September 30      December 31 
 (US dollars in thousands - unaudited)                          2022             2021 
-------------------------------------------------  -----------------  --------------- 
 Assets 
 Current assets 
      Cash and cash equivalents                       $      494,618    $     226,045 
      Accounts receivable                                     11,536           11,577 
      Other                                                   14,764           12,102 
-------------------------------------------------------  -----------  ---  ---------- 
 Total current assets                                 $      520,918    $     249,724 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Non-current assets 
      Mineral stream interests                        $    5,807,056    $   5,905,797 
      Early deposit mineral stream interests                  46,092           34,741 
      Mineral royalty interest                                 6,606            6,606 
      Long-term equity investments                           190,472           61,477 
      Convertible notes receivable                                 -           17,086 
      Property, plant and equipment                            4,505            5,509 
      Other                                                   11,946           15,211 
-------------------------------------------------------  -----------  ---  ---------- 
 Total non-current assets                             $    6,066,677    $   6,046,427 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total assets                                         $    6,587,595    $   6,296,151 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Liabilities 
 Current liabilities 
      Accounts payable and accrued liabilities        $       11,274    $      13,939 
      Current taxes payable                                    6,163              132 
      Current portion of performance share units              10,407           14,807 
      Current portion of lease liabilities                       803              813 
      Total current liabilities                       $       28,647    $      29,691 
 Non-current liabilities 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Performance share units                                       3,661           11,498 
      Lease liabilities                                        1,348            2,060 
      Deferred income taxes                                    1,954              100 
      Pension liability                                        3,173            2,685 
      Total non-current liabilities                   $       10,136    $      16,343 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total liabilities                                    $       38,783    $      46,034 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Shareholders' equity 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Issued capital                                       $    3,741,211    $   3,698,998 
 Reserves                                                      7,464           47,036 
 Retained earnings                                         2,800,137        2,504,083 
 Total shareholders' equity                           $    6,548,812    $   6,250,117 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total liabilities and shareholders' equity           $    6,587,595    $   6,296,151 
-------------------------------------------------  ----  -----------  ---  ---------- 
 

Condensed Interim Consolidated Statements of Cash Flows

 
                                                                Three Months Ended      Nine Months Ended 
                                                                    September 30           September 30 
(US dollars in thousands - unaudited)                                2022       2021        2022        2021 
-------------------------------------------------------------  ----------  ---------  ----------  ---------- 
Operating activities 
Net earnings                                                   $  196,460  $ 134,937  $  503,001  $  463,063 
Adjustments for 
      Depreciation and depletion                                   56,129     55,445     180,004     196,869 
      Gain on disposal of mineral stream interest               (104,425)          -   (104,425)           - 
      Reversal of impairment of mineral stream interests         (10,330)          -    (10,330)           - 
      Interest expense                                                 22         30          72         324 
      Equity settled stock based compensation                       1,568      1,315       4,407       3,946 
      Performance share units                                     (1,654)      2,824    (11,231)     (7,128) 
      Pension expense                                                 291        294         720         710 
      Income tax expense (recovery)                                12,006        433      12,879       (955) 
      Loss (gain) on fair value adjustment of share purchase 
       warrants held                                                  204      1,246       1,101       2,392 
      Fair value (gain) loss on convertible note receivable             -        490       1,380     (4,136) 
      Investment income recognized in net earnings                (1,953)      (178)     (2,696)       (275) 
      Other                                                         (349)        (9)     (1,821)         685 
Change in non-cash working capital                                  4,728      4,434     (3,825)     (5,341) 
=============================================================   =========   ========   =========   ========= 
Cash generated from operations before income taxes and 
 interest                                                      $  152,697  $ 201,261  $  569,236  $  650,154 
Income taxes recovered (paid)                                        (29)          -       (141)        (51) 
Interest paid                                                        (22)       (31)        (73)       (401) 
Interest received                                                   1,851         57       2,374         154 
=============================================================   =========   ========   =========   ========= 
Cash generated from operating activities                       $  154,497  $ 201,287  $  571,396  $  649,856 
=============================================================   =========   ========   =========   ========= 
Financing activities 
Bank debt repaid                                               $        -  $       -  $        -  $(195,000) 
Credit facility extension fees                                    (1,205)       (54)     (1,207)     (1,727) 
Share purchase options exercised                                        -        183       7,549       5,719 
Lease payments                                                      (201)      (196)       (603)       (583) 
Dividends paid                                                   (59,487)   (57,235)   (176,604)   (160,784) 
=============================================================   =========   ========   =========   ========= 
Cash (used for) generated from financing activities            $ (60,893)  $(57,302)  $(170,865)  $(352,375) 
=============================================================   =========   ========   =========   ========= 
Investing activities 
Mineral stream interests                                       $ (46,675)  $ (1,055)  $(107,476)  $(216,845) 
Early deposit mineral stream interests                              (750)      (750)     (1,500)     (1,500) 
Mineral royalty interest                                                -          -           -     (3,571) 
Closing costs on disposal of mineral stream interests               (139)          -       (139)           - 
Acquisition of long-term investments                                    -    (5,076)    (22,768)     (7,453) 
Proceeds on disposal of long-term investments                           -          -           -     112,188 
Dividends received                                                    102        110         322         110 
Other                                                                (69)      (171)       (194)       (691) 
=============================================================   =========   ========   =========   ========= 
Cash (used for) generated from investing activities            $ (47,531)  $ (6,942)  $(131,755)  $(117,762) 
=============================================================   =========   ========   =========   ========= 
Effect of exchange rate changes on cash and cash equivalents   $     (81)  $    (39)  $    (203)  $       48 
=============================================================   =========   ========   =========   ========= 
Increase in cash and cash equivalents                          $   45,992  $ 137,004  $  268,573  $  179,767 
Cash and cash equivalents, beginning of period                    448,626    235,446     226,045     192,683 
=============================================================   =========   ========   =========   ========= 
Cash and cash equivalents, end of period                       $  494,618  $ 372,450  $  494,618  $  372,450 
-------------------------------------------------------------   ---------   --------   ---------   --------- 
 

Summary of Units Produced

 
                                  Q3 2022                Q2 2022                 Q1 2022               Q4 2021          Q3 2021         Q2 2021            Q1 2021            Q4 2020 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Gold ounces 
produced (2) 
  Salobo                           44,212                 34,129                  44,883                48,235           55,205          55,590             46,622             62,854 
  Sudbury (3)                       4,735                  5,289                   5,362                 4,379              148           4,563              7,004              6,659 
  Constancia                        7,196                  8,042                   6,311                 9,857            8,533           5,525              2,453              3,929 
  San Dimas (4)                    11,808                 10,044                  10,461                13,714           11,936          11,478             10,491             11,652 
  Stillwater (5)                    1,833                  2,171                   2,497                 2,664            2,949           2,962              3,041              3,290 
  Other 
       Minto                        3,182                  2,480                   4,060                 3,506            1,703           3,206              2,638                789 
       777 (6)                          -                  3,509                   4,003                 4,462            4,717           5,035              6,280              2,866 
       Marmato                        542                    778                     477                   479              433           1,713                  -                  - 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
  Total Other                       3,724                  6,767                   8,540                 8,447            6,853           9,954              8,918              3,655 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Total gold ounces 
produced                           73,508                 66,442                  78,054                87,296           85,624          90,072             78,529             92,039 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Silver ounces 
produced (2) 
  Peñasquito                   2,017                  2,089                   2,219                 2,145            2,180           2,026              2,202              2,014 
  Antamina                          1,377                  1,379                   1,260                 1,366            1,548           1,558              1,577              1,930 
  Constancia                          564                    584                     506                   578              521             468                406                478 
  Other 
       Los Filos 
       (7)                             23                     23                      42                    37               17              26                 31                  6 
       Zinkgruvan                     642                    739                     577                   482              658             457                420                515 
       Yauliyacu                      463                    756                     637                   382              372             629                737                454 
       Stratoni 
       (8)                              -                      -                       -                   129               18             164                165                185 
       Minto                           42                     25                      45                    44               25              33                 21                 16 
       Neves-Corvo                    323                    345                     344                   522              362             408                345                420 
       Aljustrel                      246                    292                     287                   325              314             400                474                440 
       Cozamin                        179                    169                     186                   213              199             183                230                  - 
       Marmato                          7                      8                      11                     7               10              39                  -                  - 
       Keno Hill 
       (9)                              -                     48                      20                    30               44              55                 27                  - 
       777 (6)                          -                     80                      91                    96               81              83                130                 51 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
  Total Other                       1,925                  2,485                   2,240                 2,267            2,100           2,477              2,580              2,087 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Total silver 
ounces produced                     5,883                  6,537                   6,225                 6,356            6,349           6,529              6,765              6,509 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Palladium ounces 
produced (2) 
  Stillwater (5)                    3,229                  3,899                   4,488                 4,733            5,105           5,301              5,769              5,672 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Cobalt pounds 
produced (2) 
  Voisey's Bay                        226                    136                     234                   381              370             380          1,162 (1)                  - 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
GEOs produced (11)                159,852                160,646                 170,590               184,551          183,012         190,272            196,756            185,436 
SEOs produced (11)                 11,989                 12,048                  12,794                13,841           13,726          14,270             14,757             13,908 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Average payable 
rate (2) 
  Gold                              95.1%                  95.1%                   95.2%                 96.0%            96.0%           95.8%              95.0%              95.2% 
  Silver                            86.1%                  85.5%                   86.1%                 86.0%            86.6%           86.9%              86.6%              86.3% 
  Palladium                         95.0%                  94.6%                   92.7%                 92.2%            94.5%           95.0%              91.6%              93.6% 
  Cobalt                            93.3%                  93.3%                   93.3%                 93.3%            93.3%           93.3%              93.3%               n.a. 
  GEO (11)                          90.6%                  90.1%                   90.5%                 91.4%            91.3%           91.8%              90.7%              91.2% 
------------------  ---------------------  ---------------------  ----------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
 
   1)   All figures in thousands except 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: Q3-2022 - 412,000 ounces; Q2-2022 - 382,000 ounces; Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces.

   5)   Comprised of the Stillwater and East Boulder gold and palladium interests. 

6) 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. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

7) 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.

   8)   The Stratoni mine was placed into care and maintenance during Q4-2021. 

9) On September 7, 2022, the Company terminated the Keno Hill stream in exchange for $141 million of Hecla common shares received as consideration.

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.

11) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

Summary of Units Sold

 
                                  Q3 2022                 Q2 2022                Q1 2022               Q4 2021          Q3 2021         Q2 2021            Q1 2021            Q4 2020 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Gold ounces sold 
  Salobo                           31,818                  48,515                 42,513                47,171           35,185          57,296             51,423             53,197 
  Sudbury (2)                       5,147                   7,916                  3,712                   965            1,915           6,945              3,691              7,620 
  Constancia                        6,336                   7,431                 10,494                 6,196            8,159           2,321              1,676              3,853 
  San Dimas                        10,196                  10,633                 10,070                15,182           11,346          11,214             10,273             11,529 
  Stillwater (3)                    2,127                   2,626                  2,628                 2,933            2,820           2,574              3,074              3,069 
  Other 
       Minto                        2,559                   2,806                  3,695                 2,462            1,907           2,359              2,390              1,540 
       777                          3,098                   3,629                  4,388                 4,290            5,879           5,694              2,577              5,435 
       Marmato                        719                     781                    401                   423              438           1,687                  -                  - 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
  Total Other                       6,376                   7,216                  8,484                 7,175            8,224           9,740              4,967              6,975 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Total gold ounces 
sold                               62,000                  84,337                 77,901                79,622           67,649          90,090             75,104             86,243 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Silver ounces sold 
  Peñasquito                   1,599                   2,096                  2,188                 1,818            2,210           1,844              2,174              1,417 
  Antamina                          1,155                   1,177                  1,468                 1,297            1,502           1,499              1,930              1,669 
  Constancia                          498                     494                    644                   351              484             295                346                442 
  Other 
       Los Filos                       24                      41                     42                    17               12              42                 27                  - 
       Zinkgruvan                     376                     650                    355                   346              354             355                293                326 
       Yauliyacu                    1,005                     817                     44                   551              182             601              1,014                 15 
       Stratoni                         -                     (2)                    133                    42               41             167                117                169 
       Minto                           22                      21                     31                    27               24              29                 26                 20 
       Neves-Corvo                    105                     167                    204                   259              193             215                239                145 
       Aljustrel                      185                     123                    145                   133              155             208                257                280 
       Cozamin                        154                     148                    177                   174              170             168                173                  - 
       Marmato                          8                      11                      8                     8               10              35                  -                  - 
       Keno Hill                       30                      30                     27                    24               51              33                 12                  - 
       777                             73                      75                     87                    69               99             109                 49                 93 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
  Total Other                       1,982                   2,081                  1,253                 1,650            1,291           1,962              2,207              1,048 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Total silver 
ounces sold                         5,234                   5,848                  5,553                 5,116            5,487           5,600              6,657              4,576 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Palladium ounces 
sold 
  Stillwater (3)                    4,227                   3,378                  4,075                 4,641            5,703           3,869              5,131              4,591 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Cobalt pounds sold 
  Voisey's Bay                        115                     225                    511                   228              131             395                132                  - 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
GEOs sold (4)                     138,824                 170,371                166,065               157,439          149,862         176,502            172,271            152,613 
SEOs sold (4)                      10,412                  12,778                 12,455                11,808           11,240          13,238             12,920             11,446 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Cumulative payable 
units PBND (5) 
  Gold ounces                      67,247                  59,331                 81,365                84,989           80,819          66,238             70,072             70,555 
  Silver ounces                     3,550                   3,672                  3,910                 4,200            3,845           3,802              3,738              4,486 
  Palladium ounces                  5,041                   6,267                  5,535                 5,629            5,619           6,822              5,373              5,597 
  Cobalt pounds                       402                     280                    550                   596              637             777                820                  - 
  GEO (4)                         127,840                 120,735                150,032               158,477          150,317         139,145            141,206            136,894 
  SEO (4)                           9,588                   9,055                 11,252                11,886           11,274          10,436             10,590             10,267 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
Inventory on hand 
  Cobalt pounds                       556                     582                    410                   657              488             134                132                  - 
------------------  ---------------------  ----------------------  ---------------------  --------------------  ---------------  --------------  -----------------  ----------------- 
 
   1)   All figures in thousands except gold and palladium ounces sold. 
   2)   Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. 
   3)   Comprised of the Stillwater and East Boulder gold and palladium interests. 

4) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

5) 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.

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, 2022 
---------------------------------------------------------------------------------------------------------------------------------- 
                                           Average                                   Impairment 
                                          Realized    Average    Average            Reversals / 
                                             Price  Cash Cost  Depletion                Gain on              Cash Flow 
                          Units   Units       ($'s   ($'s Per   ($'s Per               Disposal        Net        From       Total 
                    Produced(2)    Sold  Per Unit)  Unit) (3)      Unit)     Sales          (4)   Earnings  Operations      Assets 
------------------  -----------  ------  ---------  ---------  ---------  --------  -----------  ---------  ----------  ---------- 
Gold 
  Salobo                 44,212  31,818  $   1,724  $     416  $     334  $ 54,860  $         -  $  31,000  $   41,617  $2,396,952 
  Sudbury (5)             4,735   5,147      1,745        400      1,092     8,984            -      1,303       5,943     288,863 
  Constancia              7,196   6,336      1,724        415        271    10,925            -      6,578       8,295      97,213 
  San Dimas              11,808  10,196      1,724        624        260    17,579            -      8,567      11,213     158,704 
  Stillwater              1,833   2,127      1,724        317        429     3,667            -      2,080       2,992     216,617 
  Other (6)               3,724   6,376      1,743        694         59    11,113            -      6,311       5,562     461,359 
                         73,508  62,000  $   1,728  $     474  $     353  $107,128  $         -  $  55,839  $   75,622  $3,619,708 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Silver 
  Peñasquito         2,017   1,599  $   19.30  $    4.36  $    3.57  $ 30,857  $         -  $  18,182  $   23,885  $  301,040 
  Antamina                1,377   1,155      19.30       3.75       7.06    22,287            -      9,798      17,951     553,231 
  Constancia                564     498      19.30       6.12       6.35     9,613            -      3,398       6,563     195,507 
  Other (7)               1,925   1,982      18.93       7.51       6.84    37,513      114,755    123,823      21,896     538,739 
                                                                                     ---------- 
                          5,883   5,234  $   19.16  $    5.59  $    5.84  $100,270  $   114,755  $ 155,201  $   70,295  $1,588,517 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Palladium 
  Stillwater              3,229   4,227  $   2,091  $     353  $     399  $  8,838  $         -  $   5,657  $    7,344  $  228,168 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Platinum 
  Marathon                    -       -  $    n.a.  $    n.a.  $    n.a.  $      -  $         -  $       -  $        -  $    9,425 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay              226     115  $   22.68  $    7.21  $   13.63  $  2,600  $         -  $     211  $    7,352  $  361,238 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Operating results                                                         $218,836  $   114,755  $ 216,908  $  160,613  $5,807,056 
-------------------------------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Other 
  General and administrative                                                                     $ (8,360)  $  (5,503) 
  Share based compensation                                                                            (77)           - 
  Donations and community 
   investments                                                                                     (1,406)     (1,413) 
  Finance costs                                                                                    (1,398)     (1,020) 
  Other                                                                                              2,799       1,849 
  Income tax                                                                                      (12,006)        (29) 
Total other                                                                                      $(20,448)  $  (6,116)  $  780,539 
---------------------------------------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
                                                                                                 $ 196,460  $  154,497  $6,587,595 
------------------  -----------  ------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
 

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 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)   Relates to the termination of the Keno Hill PMPA. 

5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.

6) Comprised of the operating Minto and Marmato gold interests as well as the non-operating 777, Copper World Complex (formerly referred to as Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont), Blackwater and Curipamba silver interests and the previously owned Keno Hill silver interest. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill stream was terminated in exchange for $141 million of Hecla common stock.

On a gold equivalent and silver equivalent basis, results for the Company for the three months ended September 30, 2022 were as follows:

 
                                                                                 Three Months Ended September 30, 2022 
---------------------------------------------------------------------------------------------------------------------- 
                                                     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)                  159,852     138,824     $ 1,576         $ 439            $ 1,137        $ 401       $ 736 
 Silver 
  equivalent 
  basis (5)                   11,989      10,412     $ 21.02        $ 5.85            $ 15.17       $ 5.35      $ 9.82 
-----------------  -----------------  ----------  ----------  ------------  -----------------  -----------  ---------- 
 

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; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

 
                                                                                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)               148   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 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                         85,624  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)               2,100   1,291      22.97       6.33       4.49    29,660     15,686      24,011     602,796 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                          6,349   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     131  $   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                                                        $ (7,932)  $  (4,729) 
  Share based compensation                                                            (4,139)           - 
  Donations and community 
   investments                                                                        (1,524)     (1,671) 
  Finance costs                                                                       (1,379)     (1,039) 
  Other                                                                               (1,108)          71 
  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 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, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont) and Pascua-Lama silver interests and the previously owned Keno Hill silver interest. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill stream was terminated in exchange for $141 million of Hecla common stock.

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)                  183,012     149,862     $ 1,795         $ 417            $ 1,378        $ 367     $ 1,011 
 Silver 
  equivalent 
  basis (5)                   13,726      11,240     $ 23.93        $ 5.56            $ 18.37       $ 4.89     $ 13.48 
-----------------  -----------------  ----------  ----------  ------------  -----------------  -----------  ---------- 
 

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; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

 
                                                                                               Nine Months Ended September 30, 2022 
----------------------------------------------------------------------------------------------------------------------------------- 
                                            Average                                   Impairment 
                                           Realized    Average    Average            Reversals / 
                                              Price  Cash Cost  Depletion                Gain on              Cash Flow 
                          Units    Units       ($'s   ($'s Per   ($'s Per               Disposal        Net        From       Total 
                    Produced(2)     Sold  Per Unit)  Unit) (3)      Unit)     Sales          (4)   Earnings  Operations      Assets 
------------------  -----------  -------  ---------  ---------  ---------  --------  -----------  ---------  ----------  ---------- 
Gold 
  Salobo                123,224  122,846  $   1,834  $     416  $     334  $225,267  $         -  $ 133,146  $  174,134  $2,396,952 
  Sudbury (5)            15,386   16,775      1,828        400      1,091    30,673            -      5,657      22,980     288,863 
  Constancia             21,549   24,261      1,833        413        271    44,480            -     27,886      34,463      97,213 
  San Dimas              32,313   30,899      1,823        622        260    56,335            -     29,095      37,114     158,704 
  Stillwater              6,501    7,381      1,829        330        429    13,503            -      7,902      11,070     216,617 
  Other (6)              19,031   22,076      1,829        734         45    40,388            -     23,183      22,912     461,359 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
                        218,004  224,238  $   1,831  $     471  $     348  $410,646  $         -  $ 226,869  $  302,673  $3,619,708 
==================  ===========  =======   ========   ========   ========   =======   ==========   ========   =========   ========= 
Silver 
  Peñasquito         6,325    5,883  $   22.21  $    4.36  $    3.57  $130,686  $         -  $  84,058  $  105,036  $  301,040 
  Antamina                4,016    3,800      22.13       4.42       7.06    84,093            -     40,479      66,952     553,231 
  Constancia              1,654    1,636      22.15       6.09       6.34    36,227            -     15,883      26,260     195,507 
  Other (7)               6,650    5,316      21.41       7.14       5.61   113,823      114,755    160,768      75,969     538,739 
                                                                                      ----------   -------- 
                         18,645   16,635  $   21.93  $    5.43  $    5.29  $364,829  $   114,755  $ 301,188  $  274,217  $1,588,517 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Palladium 
  Stillwater             11,616   11,680  $   2,190  $     383  $     399  $ 25,574  $         -  $  16,437  $   21,099  $  228,168 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Platinum 
  Marathon                    -        -  $    n.a.  $    n.a.  $    n.a.  $      -  $         -  $       -  $        -  $    9,425 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay              596      851  $   32.85  $    6.24  $    9.49  $ 27,953  $         -  $  14,560  $   24,683  $  361,238 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Operating results                                                          $829,002  $   114,755  $ 559,054  $  622,672  $5,807,056 
-------------------------------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Other 
  General and administrative                                                                      $(27,448)  $ (28,933) 
  Share based compensation                                                                         (11,586)    (18,161) 
  Donations and community 
   investments                                                                                      (3,379)     (2,976) 
  Finance costs                                                                                     (4,209)     (3,107) 
  Other                                                                                               3,448       2,042 
  Income tax                                                                                       (12,879)       (141) 
Total other                                                                                       $(56,053)  $ (51,276)  $  780,539 
----------------------------------------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
                                                                                                  $ 503,001  $  571,396  $6,587,595 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
 

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 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)   Relates to the termination of the Keno Hill PMPA. 

5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.

6) Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Cozamin, Marmato and 777 silver interests, the non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont), Blackwater and Curipamba silver interests and the previously owned Keno Hill silver interest. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill stream was terminated in exchange for $141 million of Hecla common stock.

On a gold equivalent and silver equivalent basis, results for the Company for the nine months ended September 30, 2022 were as follows:

 
                                                                                  Nine Months Ended September 30, 2022 
---------------------------------------------------------------------------------------------------------------------- 
                                                     Average 
                                                    Realized      Average                           Average      Gross 
                                                       Price    Cash Cost        Cash Operating   Depletion     Margin 
                                Ounces     Ounces   ($'s Per     ($'s Per                Margin    ($'s Per   ($'s Per 
                       Produced (1, 2)   Sold (2)     Ounce)   Ounce) (3)   ($'s Per Ounce) (4)      Ounce)     Ounce) 
--------------------  ----------------  ---------  ---------  -----------  --------------------  ----------  --------- 
Gold equivalent 
 basis (5)                     491,088    475,259    $ 1,744        $ 433               $ 1,311       $ 376      $ 935 
Silver equivalent 
 basis (5)                      36,832     35,644    $ 23.26       $ 5.78               $ 17.48      $ 5.02    $ 12.46 
--------------------  ----------------  ---------  ---------  -----------  --------------------  ----------  --------- 
 

1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   2)   Silver ounces produced and sold in thousands. 
   3)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   4)   Refer to discussion on non-IFRS measure (iv) at the end of this press release. 

5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

 
                                                                                  Nine 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                157,417  143,904  $   1,797  $     412  $     374  $258,549  $ 145,466  $  200,993  $2,455,567 
  Sudbury (4)            11,715   12,551      1,812        400      1,024    22,742      4,864      17,722     308,158 
  Constancia             16,511   12,156      1,796        410        315    21,829     13,018      17,040     101,741 
  San Dimas              33,905   32,833      1,796        616        322    58,981     28,170      38,755     171,617 
  Stillwater              8,952    8,468      1,796        327        397    15,212      9,083      12,444     220,949 
  Other (5)              25,725   22,931      1,806        585         67    41,421     26,471      27,981      64,985 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
                        254,225  232,843  $   1,798  $     454  $     369  $418,734  $ 227,072  $  314,935  $3,323,017 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Silver 
  Peñasquito         6,408    6,228  $   25.59  $    4.29  $    3.55  $159,374  $ 110,552  $  132,655  $  328,470 
  Antamina                4,683    4,931      25.66       5.12       7.53   126,484     64,106     100,597     589,816 
  Constancia              1,395    1,125      25.41       6.03       7.56    28,605     13,306      22,109     208,537 
  Other (6)               7,157    5,460      25.54       8.31       5.48   139,461     64,166      97,241     602,796 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
                         19,643   17,744  $   25.58  $    5.87  $    5.50  $453,924  $ 252,130  $  352,602  $1,729,619 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Palladium 
  Stillwater             16,175   14,703  $   2,512  $     463  $     442  $ 36,932  $  23,622  $   30,128  $  234,883 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay            1,912      658  $   21.09  $    4.67  $    8.17  $ 13,878  $   5,429  $    1,244  $  218,144 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Operating results                                                          $923,468  $ 508,253  $  698,909  $5,505,663 
-------------------------------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Other 
  General and administrative                                                         $(26,572)  $ (25,898) 
  Share based compensation                                                            (13,746)    (16,926) 
  Donations and community 
   investments                                                                         (3,712)     (3,247) 
  Finance costs                                                                        (4,309)     (3,246) 
  Other                                                                                  2,194         315 
  Income tax                                                                               955        (51) 
------------------  -----------  -------   --------   --------   --------   -------   --------   ---------   --------- 
Total other                                                                          $(45,190)  $ (49,053)  $  541,077 
----------------------------------------   --------   --------   --------   -------   --------   ---------   --------- 
                                                                                     $ 463,063  $  649,856  $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 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, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont) and Pascua-Lama silver interests and the previously owned Keno Hill silver interest. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill stream was terminated in exchange for $141 million of Hecla common stock.

On a gold equivalent and silver equivalent basis, results for the Company for the nine months ended September 30, 2021 were as follows:

 
                                                                                  Nine Months Ended September 30, 2021 
---------------------------------------------------------------------------------------------------------------------- 
                                                     Average 
                                                    Realized      Average                           Average      Gross 
                                                       Price    Cash Cost        Cash Operating   Depletion     Margin 
                                Ounces     Ounces   ($'s Per     ($'s Per                Margin    ($'s Per   ($'s Per 
                       Produced (1, 2)   Sold (2)     Ounce)   Ounce) (3)   ($'s Per Ounce) (4)      Ounce)     Ounce) 
--------------------  ----------------  ---------  ---------  -----------  --------------------  ----------  --------- 
Gold equivalent 
 basis (5)                     570,040    498,635    $ 1,852        $ 441               $ 1,411       $ 392    $ 1,019 
Silver equivalent 
 basis (5)                      42,753     37,398    $ 24.69       $ 5.88               $ 18.81      $ 5.23    $ 13.58 
--------------------  ----------------  ---------  ---------  -----------  --------------------  ----------  --------- 
 

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; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.

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; and (iv) cash operating margin.

i. Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), 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     Nine Months Ended 
                                                                September 30          September 30 
(in thousands, except for per share amounts)                      2022      2021        2022      2021 
----------------------------------------------------------  ----------  --------  ----------  -------- 
Net earnings                                                $  196,460  $134,937  $  503,001  $463,063 
Add back (deduct): 
   Impairment reversal                                        (10,330)         -    (10,330)         - 
   Gain on disposal of Mineral Stream Interest               (104,425)         -   (104,425)         - 
   (Gain) loss on fair value adjustment of share purchase 
    warrants held                                                  204     1,246       1,101     2,392 
   (Gain) loss on fair value adjustment of convertible 
    notes receivable                                                 -       490       1,380   (4,136) 
   Income tax (expense) recovery recognized in the 
    Statement of Shareholders' Equity                            3,644     (269)       4,143       837 
   Income tax (expense) recovery recognized in the 
    Statement of OCI                                               546       627         701   (1,989) 
   Income tax expense resulting from PMPA disposition, net 
    of above                                                     7,779         -       7,779         - 
   Other                                                             -        56     (2,182)     (319) 
----------------------------------------------------------   ---------   -------   ---------   ------- 
Adjusted net earnings                                       $   93,878  $137,087  $  401,168  $459,848 
----------------------------------------------------------   ---------   -------   ---------   ------- 
Divided by: 
Basic weighted average number of shares outstanding            451,757   450,326     451,402   449,977 
Diluted weighted average number of shares outstanding          452,386   451,717     452,221   451,369 
----------------------------------------------------------   ---------   -------   ---------   ------- 
Equals: 
   Adjusted earnings per share - basic                      $    0.208  $  0.304  $    0.889  $  1.022 
   Adjusted earnings per share - diluted                    $    0.208  $  0.303  $    0.887  $  1.019 
----------------------------------------------------------   ---------   -------   ---------   ------- 
 

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       Nine Months Ended 
                                                                 September 30            September 30 
(in thousands, except for per share amounts)                        2022      2021         2022      2021 
----------------------------------------------------------  ------------  --------  -----------  -------- 
Cash generated by operating activities                       $   154,497  $201,287   $  571,396  $649,856 
----------------------------------------------------------      --------   -------      -------   ------- 
Divided by: 
   Basic weighted average number of shares outstanding           451,757   450,326      451,402   449,977 
   Diluted weighted average number of shares outstanding         452,386   451,717      452,221   451,369 
----------------------------------------------------------      --------   -------      -------   ------- 
Equals: 
   Operating cash flow per share - basic                     $     0.342  $  0.447   $    1.266  $  1.444 
   Operating cash flow per share - diluted                   $     0.342  $  0.446   $    1.264  $  1.440 
----------------------------------------------------------      --------   -------      -------   ------- 
 

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      Nine Months Ended 
                                                              September 30           September 30 
(in thousands, except for gold and palladium ounces sold 
 and per unit amounts)                                         2022       2021        2022        2021 
--------------------------------------------------------  ---------  ---------  ----------  ---------- 
Cost of sales                                             $ 116,683  $ 117,505  $  384,703  $  415,215 
Less: depletion                                            (55,728)   (54,976)   (178,812)   (195,458) 
--------------------------------------------------------   --------   --------   ---------   --------- 
Cash cost of sales                                        $  60,955  $  62,529  $  205,891  $  219,757 
--------------------------------------------------------   --------   --------   ---------   --------- 
Cash cost of sales is comprised of: 
   Total cash cost of gold sold                           $  29,398  $  31,405  $  105,719  $  105,721 
   Total cash cost of silver sold                            29,238     27,782      90,384     104,159 
   Total cash cost of palladium sold                          1,493      2,667       4,475       6,804 
   Total cash cost of cobalt sold                               826        675       5,313       3,073 
--------------------------------------------------------   --------   --------   ---------   --------- 
   Total cash cost of sales                               $  60,955  $  62,529  $  205,891  $  219,757 
--------------------------------------------------------   --------   --------   ---------   --------- 
Divided by: 
   Total gold ounces sold                                    62,000     67,649     224,238     232,843 
   Total silver ounces sold                                   5,234      5,487      16,635      17,744 
   Total palladium ounces sold                                4,227      5,703      11,680      14,703 
   Total cobalt pounds sold                                     115        131         851         658 
--------------------------------------------------------   --------   --------   ---------   --------- 
Equals: 
   Average cash cost of gold (per ounce)                  $     474  $     464  $      471  $      454 
   Average cash cost of silver (per ounce)                $    5.59  $    5.06  $     5.43  $     5.87 
   Average cash cost of palladium (per ounce)             $     353  $     468  $      383  $      463 
   Average cash cost of cobalt (per pound)                $    7.21  $    5.15  $     6.24  $     4.67 
--------------------------------------------------------   --------   --------   ---------   --------- 
 

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       Nine Months Ended 
                                                                  September 30            September 30 
(in thousands, except for gold and palladium ounces sold 
 and per unit amounts)                                               2022      2021         2022      2021 
===========================================================  ============  ========  ===========  ======== 
Total sales: 
   Gold                                                       $   107,128  $121,416   $  410,646  $418,734 
   Silver                                                     $   100,270  $130,587   $  364,829  $453,924 
   Palladium                                                  $     8,838  $ 13,834   $   25,574  $ 36,932 
   Cobalt                                                     $     2,600  $  3,120   $   27,953  $ 13,878 
Divided by: 
   Total gold ounces sold                                          62,000    67,649      224,238   232,843 
   Total silver ounces sold                                         5,234     5,487       16,635    17,744 
   Total palladium ounces sold                                      4,227     5,703       11,680    14,703 
   Total cobalt pounds sold                                           115       131          851       658 
-----------------------------------------------------------      --------   -------      -------   ------- 
Equals: 
   Average realized price of gold (per ounce)                 $     1,728  $  1,795   $    1,831  $  1,798 
   Average realized price of silver (per ounce)               $     19.16  $  23.80   $    21.93  $  25.58 
   Average realized price of palladium (per ounce)            $     2,091  $  2,426   $    2,190  $  2,512 
   Average realized price of cobalt (per pound)               $     22.68  $  23.78   $    32.85  $  21.09 
Less: 
   Average cash cost of gold (1) (per ounce)                  $     (474)  $  (464)   $    (471)  $  (454) 
   Average cash cost of silver (1) (per ounce)                $    (5.59)  $ (5.06)   $   (5.43)  $ (5.87) 
   Average cash cost of palladium (1) (per ounce)             $     (353)  $  (468)   $    (383)  $  (463) 
   Average cash cost of cobalt (1) (per pound)                $    (7.21)  $ (5.15)   $   (6.24)  $ (4.67) 
-----------------------------------------------------------      --------   ------- 
Equals: 
   Cash operating margin per gold ounce sold                  $     1,254  $  1,331   $    1,360  $  1,344 
         As a percentage of realized price of gold                    73%       74%          74%       75% 
   Cash operating margin per silver ounce sold                $     13.57  $  18.74   $    16.50  $  19.71 
         As a percentage of realized price of silver                  71%       79%          75%       77% 
   Cash operating margin per palladium ounce sold             $     1,738  $  1,958   $    1,807  $  2,049 
         As a percentage of realized price of palladium               83%       81%          83%       82% 
   Cash operating margin per cobalt pound sold                $     15.47  $  18.63   $    26.61  $  16.42 
         As a percentage of realized price of cobalt                  68%       78%          81%       78% 
-----------------------------------------------------------      --------   -------      -------   ------- 
 

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 termination of the Yauliyacu silver stream for $150 million, the value of silver produced and delivered after January 1, 2022 and the satisfaction of each party's obligations in accordance with definitive documentation relating to the termination of the Yauliyacu silver stream, the future price of commodities, 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 payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements, 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, future payments by the Company in accordance with PMPAs, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, future sales of common shares under the ATM program, continued 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, 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 domestic audits for taxation years subsequent to 2016 and international audits, 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, the Company's climate change and environmental commitments, and assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks relating to the termination of the Yauliyacu silver stream and the satisfaction of each party's obligations in accordance with the terms of the definitive documentation relating to the termination of the Yauliyacu silver stream , the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs or royalty arrangements, 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 (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, 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 supplies, 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, environmental, social and governance matters, Wheaton and the Mining Operations ability to obtain adequate financing, the Mining Operations ability to complete permitting, construction, development and expansion, global financial conditions, Wheaton's acquisition strategy 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, 2021 and Form 6-K filed March 31, 2022 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 receipt of $150 million from Glencore, the estimated value of silver to be produced and delivered after January 1, 2022 and the satisfaction of each party's obligations in accordance with the terms of the definitive documentation relating to the termination of the Yauliyacu silver stream, that there will be no material adverse change in the market price of commodities, 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 neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), 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 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 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), 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

SVP, Investor Relations

Wheaton Precious Metals Corp.

Tel: 1-844-288-9878

Email: info@wheatonpm.com

Website: www.wheatonpm.com

[1] Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton's news release date November 3, 2022, titled "Wheaton Precious Metals Declares Quarterly Dividend."

[2] Company reports & S and P Capital IQ est. of 2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1800/oz, silver $24/oz, palladium $2,100/oz and cobalt $33/lb.

[3] Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2021 and 2021 actual mill throughput and is weighted by individual reserve and resource category.

[4] Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo outside of the project currently in construction. In addition, five-year guidance also does not include any production from Kutcho, or the Victor project at Sudbury.

[5] The Hecla shares represent approximately 6% of Hecla's current issued and outstanding shares and are subject to a six month hold period from the closing date of September 7, 2022.

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November 04, 2022 03:00 ET (07:00 GMT)

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