TIDMWPM
RNS Number : 5617S
Wheaton Precious Metals Corp.
10 March 2023
March 10, 2023
Vancouver, British Columbia
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL results
Wheaton Precious Metals Generates Strong Cash Operating Margins
in 2022
"Wheaton's portfolio of long-life, low-cost assets delivered
over $1 billion in revenue and over $740 million in operating cash
flow in 2022. This strong financial performance reflects the
resiliency of Wheaton's streaming business model, which delivers
amongst the highest margins in the precious metals space. Even in
the current inflationary environment, Wheaton averaged 75% cash
operating margins in 2022," said Randy Smallwood, President and
Chief Executive Officer of Wheaton Precious Metals. "In addition,
Wheaton took strategic steps forward by optimizing the portfolio,
adding four new streams and making sector-leading commitments on
the sustainability front. With one of the strongest balance sheets
in the industry, we enter 2023 exceptionally well-positioned to
deliver long-term shareholder value through the significant organic
growth profile already embedded in the portfolio as well as through
additional accretive acquisitions."
Solid Financial Results and Strong Balance Sheet
-- Fourth Quarter of 2022: $236 million in revenue, $172 million
in operating cash flow, $166 million in net earnings and $104
million in adjusted net earnings[1]
-- Full Year of 2022: $1,065 million in revenue, $743 million in
operating cash flow, $669 million in net earnings and $505 million
in adjusted net earnings (1)
-- A cash balance of $696 million and no debt as at December 31, 2022
-- Undrawn US$2 billion revolving credit facility with a July 18, 2027 maturity date
-- Declared a quarterly dividend (1) of $0.15 per common share
High Quality Asset Base
-- Streaming agreements on 20 operating mines and 12 development projects
-- 93% of attributable production from assets in the lowest half
of their respective cost curves[2](,[3])
-- 30 years of mine life based on Proven and Probable Mineral
Reserves and potential additional mine life from mineral resource
conversion and exploration (2) (,[4])
-- Attributable gold equivalent production of 148,300 ounces in
the Fourth Quarter of 2022 and 638,100 for the Full Year of
2022
-- Average annual production for the ten-year period ending
December 31, 2032, is expected to be approximately 850,000 gold
equivalent ounces ("GEOs") (2) (,) (3) (,[5])
-- Completed the previously disclosed termination of the
Yauliyacu precious metal purchase agreement ("PMPA"), resulting in
a $51 million gain on the disposition in the fourth quarter
Leadership in Sustainability
-- Top Rankings: #1 out of 114 precious metals companies and
Global Top 50 out of over 15,000 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 revolving credit facility
-- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights
Operational Overview
(all figures in US
dollars unless
otherwise noted) Q4 2022 Q4 2021 Change 2022 2021 Change
------------------ -------- ------------ ---------- --------- -------------- --------
Units produced
Gold ounces 70,099 87,296 (19.7)% 286,805 341,521 (16.0)%
Silver ounces 5,352 6,356 (15.8)% 23,997 25,999 (7.7)%
Palladium ounces 3,869 4,733 (18.3)% 15,485 20,908 (25.9)%
Cobalt pounds 128 381 (66.4)% 724 2,293 (68.4)%
Gold equivalent
ounces (3) 148,323 184,551 (19.6)% 638,113 754,591 (15.4)%
Units sold
Gold ounces 68,996 79,622 (13.3)% 293,234 312,465 (6.2)%
Silver ounces 4,935 5,116 (3.5)% 21,570 22,860 (5.6)%
Palladium ounces 3,396 4,641 (26.8)% 15,076 19,344 (22.1)%
Cobalt pounds 187 228 (18.0)% 1,038 886 17.2 %
Gold equivalent
ounces (3) 142,190 157,439 (9.7)% 617,450 656,074 (5.9)%
Change in PBND and
Inventory
Gold equivalent
ounces (3) (11,870) 11,252 23,122 (47,055) 33,628 80,683
------------------- -------- ------------ ---------- --------- -------------- --------
Revenue $ 236,051 $ 278,197 (15.1)% $1,065,053 $ 1,201,665 (11.4)%
Net earnings $ 166,125 $ 291,822 (43.1)% $ 669,126 $ 754,885 (11.4)%
Per share $ 0.367 $ 0.648 (43.4)% $ 1.482 $ 1.677 (11.6)%
Adjusted net
earnings (1) $ 103,744 $ 132,232 (21.5)% $ 504,912 $ 592,079 (14.7)%
Per share (1) $ 0.229 $ 0.293 (21.8)% $ 1.118 $ 1.315 (15.0)%
Operating cash
flows $ 172,028 $ 195,290 (11.9)% $ 743,424 $ 845,145 (12.0)%
Per share (1) $ 0.381 $ 0.433 (12.0)% $ 1.646 $ 1.878 (12.4)%
------------------- -------- ------------ ---------- --------- -------------- --------
All amounts in thousands except gold, palladium & gold
equivalent ounces, and per share amounts.
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2022, Salobo produced 37,900
ounces of attributable gold, a decrease of approximately 21%
relative to the fourth quarter of 2021, primarily due to lower
throughput and grades. According to Vale S.A.'s ("Vale"), plant
availability was impacted due to additional planned and corrective
maintenance performed in the fourth quarter.
Vale reports the Salobo III mine expansion project, which will
increase the mill throughput by 50%, successfully commenced at the
end of 2022. The project consists of two lines, the first of which
started up in the fourth quarter of 2022 and the second expected to
start in the first quarter of 2023.
Subsequent to the quarter, Wheaton and Vale agreed to amend the
Salobo PMPA to adjust the expansion payment terms in order to
provide increased flexibility for the ramp-up of the expansion
while also maintaining an incentive for Vale to maximize grade on
an annual basis. The expansion payment will now be phased, with
Wheaton making an initial payment once actual throughput is
expanded above 32 million tonnes per annum ("Mtpa") and a second
payment if actual throughput is expanded above 35 Mtpa, by January
1, 2031. The total cumulative payments will range from $283 million
to $552 million, dependent at Vale's timing for each of the
production increases. In addition, Wheaton will be required to make
annual payments of between $5.1 million to $8.5 million for a
10-year period following payment of the expansion payments if the
Salobo mine maintains a high-grade mine plan.
Antamina: In the fourth quarter of 2022, Antamina produced 1.1
million ounces of attributable silver, a decrease of approximately
19% relative to the fourth quarter of 2021, primarily due to lower
grades as per the mine plan .
Peñasquito: In the fourth quarter of 2022, Peñasquito produced
1.8 million ounces of attributable silver, a decrease of
approximately 18% relative to the fourth quarter of 2021 with lower
recovery and grades as per the mine plan.
Constancia: In the fourth quarter of 2022, Constancia produced
0.7 million ounces of attributable silver and 10,500 ounces of
attributable gold, an increase of approximately 13% and 6%,
respectively, relative to the fourth quarter of 2021, with the
increase in silver being primarily due to higher grades and
recovery while the increase in gold production being primarily due
to the mining of higher-grade material. According to Hudbay
Minerals Inc. ("Hudbay"), gold production was lower than expected
in the fourth quarter as a result of short-term changes in the mine
plan that prioritized the processing of lower grade stockpiles and
shorter-haulage distance ore from the Constancia pit versus
higher-grade ore from the Pampacancha pit. These changes were
implemented by Hudbay to ration fuel during a period of nation-wide
social unrest and road blockades following a change in Peru's
political leadership in early December 2022, and ensured the plant
continued to operate uninterrupted.
Sudbury: In the fourth quarter of 2022, Vale's Sudbury mines
produced 6,300 ounces of attributable gold, an increase of
approximately 45% relative to the fourth quarter of 2021, primarily
due to higher throughput as fourth quarter 2021 production was
impacted by the temporary closure of the Totten Mine after the
shaft was damaged on September 26, 2021.
Stillwater: In the fourth quarter of 2022, the Stillwater mines
produced 2,200 ounces of attributable gold and 3,900 ounces of
attributable palladium, a decrease of approximately 18% for gold
and 18% for palladium relative to the fourth quarter of 2021. As
per Sibanye-Stillwater Limited ("Sibanye"), the ramp-up of
production post the regional flood event in early June 2022
progressed well, with production rates normalising during Q4 2022.
Sibanye continues to reposition the Stillwater operations for the
current skills shortage and changing macro environment and expects
further normalization of production rates in 2023.
San Dimas: In the fourth quarter of 2022, San Dimas produced
10,000 ounces of attributable gold, a decrease of approximately 27%
relative to the fourth quarter of 2021 , primarily due to the
mining of lower grade material . According to First Majestic Silver
Corp., silver and gold grades were impacted primarily due to the
processing of lower grade development ores from the Perez vein and
higher tonnages from underground areas with challenging ground
conditions within the Jessica and Regina veins in the Noche Buena
area.
Other Gold: In the fourth quarter of 2022, total Other Gold
attributable production was 3,100 ounces, a decrease of
approximately 63% relative to the fourth quarter of 2021, primarily
due to the closure of the 777 mine in June 2022.
Other Silver: In the fourth quarter of 2022, total Other Silver
attributable production was 1.8 million ounces, a decrease of
approximately 19% relative to the fourth quarter of 2021, primarily
due to the placement of Stratoni into care and maintenance, the
closure of the 777 mine and the termination of the Keno Hill and
Yauliyacu PMPAs.
Voisey's Bay: In the fourth quarter of 2022, the Voisey's Bay
mine produced 128,000 pounds of attributable cobalt, a decrease of
approximately 66% relative to the fourth 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 81% at the end of the fourth quarter. In the
second quarter of 2021, Vale achieved the first ore production from
the Reid Brook deposit, the first of two underground mines to be
developed in the project. Eastern Deeps, the second deposit, has
started to extract development ore from the deposit and is
scheduled to start the main production ramp-up in the second half
of 2023.
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.
Fourth Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. ("Artemis") announced that
it had executed an order for construction equipment required for
major construction activities with the initial fleet expected to be
delivered in early Q2 2023. In addition, plant site preparation is
well advanced with the majority of the bulk earth works completed,
and work on the construction camp is proceeding on schedule with
150 rooms and kitchen facilities on track to be ready for
occupation by the end of February. Artemis also announced that it
has closed the $385 million project loan facility to fund a
significant component of the estimated construction costs of the
Blackwater project. On March 9, 2023, Artemis announced the
approval of its BC Mines Act Permit for the Blackwater project. The
approval of the BC Mines Act Permit is the final step required to
allow Artemis to commence major works construction activities at
the Blackwater Mine in Q1 2023 with the expectation of an initial
gold pour in the second half of 2024.
Copper World Complex: Hudbay reports that it has executed a new
strategy at Copper World focused on project de-risking and a
two-phase mine plan with the first phase located on private land
claims. The pre-feasibility study for Phase I of Copper World is
well-advanced with the main facility engineering completed and
metallurgical test work being analyzed as part of the concentrate
leaching trade off evaluations. The pre-feasibility study is
expected to be released in the second quarter of 2023.
Goose Project: Subsequent to the quarter, Sabina Gold &
Silver Corp. ("Sabina") announced that it had entered into a
definitive agreement (the "Agreement") pursuant to which B2Gold
Corp. has agreed to acquire all of the issued and outstanding
shares of Sabina.
Marathon Project: Generation Mining Limited ("Gen Mining")
announced that the Marathon Project was approved by the joint
Federal and Provincial Environmental Assessment process, and that
they will now proceed to obtain the necessary permits for
construction and operation.
Curipamba Project: Adventus Mining Corporation ("Adventus")
announced that the Government of Ecuador has signed the Investment
Contract in support of the development of the El Domo deposit,
which is part of the Curipamba Project.
Portfolio Optimization
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. The transaction closed on December
6, 2022, and the Company received a cash payment of $132 million.
The Yauliyacu PMPA was terminated on December 14, 2022.
Financial Review
Revenues
Revenue was $236 million in the fourth quarter of 2022
representing a 15% decrease from the fourth quarter of 2021 due
primarily to a 10% decrease in the number of GEOs(3) sold; and a 6%
decrease in the average realized gold equivalent(3) price.
Revenue was $1,065 million in the year ended December 31, 2022,
representing an 11% decrease from 2021 due primarily to a 6%
decrease in the number of gold equivalent(3) ounces sold; and a 6%
decrease in the average realized gold equivalent(3) price.
Cash Costs and Margin
Average cash costs(1) in the fourth quarter of 2022 were $434
per GEO(2) as compared to $433 in the fourth quarter of 2021. This
resulted in a cash operating margin(1) of $1,226 per GEO(3) sold, a
decrease of 8% as compared with the fourth quarter of 2021.
Average cash costs(1) in 2022 were $433 per GEO(2) as compared
to $439 in 2021. This resulted in a cash operating margin(1) of
$1,292 per GEO(3) sold, a 7% decrease from the 2021.
Balance Sheet (at December 31, 2022 )
-- Approximately $696 million of cash on hand.
-- During the fourth quarter of 2022, the Company made upfront
cash payments totaling $44 million relative to PMPAs.
-- With the existing cash on hand coupled with the fully undrawn
$2 billion revolving credit facility , t he Company is well
positioned to fund all outstanding commitments and known
contingencies as well as providing flexibility to acquire
additional accretive mineral stream interests.
Reserves and Resources (at December 31, 2022)
-- Proven and Probable Mineral Reserves attributable to Wheaton
were 13.90 million ounces of gold compared with 14.04 million
ounces as reported in Wheaton's 2021 Annual Information Form
("AIF"), a decrease of 1%; 489.2 million ounces of silver compared
with 564.6 million ounces, decrease of 13%; 0.60 million ounces
palladium compared with 0.63 million ounces, a decrease of 3%; 0.17
million ounces of platinum, unchanged; and 33.2 million pounds of
cobalt compared to 31.4 million pounds, an increase of 6%. On a
GEO(3) basis, total Proven and Probable Mineral Reserves for all
metals attributable to Wheaton were 21.27 million ounces, a
decrease of 5% with 2% related to the terminations of the Yauliyacu
and Keno Hill streams and the closure of the 777 mine.
-- Measured and Indicated Mineral Resources attributable to
Wheaton were 5.47 million ounces of gold compared with 5.44 million
ounces as reported in Wheaton's 2021 AIF, an increase of 1%; 674.8
million ounces of silver compared with 767.8 million ounces, a
decrease of 12%; 0.09 million ounces of palladium compared to 0.12
million ounces, a decrease of 28%; 0.097 million ounces of
platinum, unchanged; and 1.5 million pounds of cobalt, unchanged.
On a GEO(3) basis, total Measured and Indicated Mineral Resources
for all metals attributable to Wheaton were 14.38 million ounces, a
decrease of 8% with 6% related to the terminations of the Yauliyacu
and Keno Hill streams.
-- Inferred Mineral Resources attributable to Wheaton were 4.69
million ounces of gold compared with 4.98 million ounces as
reported in Wheaton's 2021 AIF, a decrease of 6%; 327.9 million
ounces of silver compared with 461.1 million ounces, a decrease of
29%, 0.35 million ounces of palladium, unchanged; 0.017 million
ounces of platinum, unchanged; and 7.8 million pounds of cobalt
compared to 6.8, an increase of 13%. On a GEO(3) basis, total
Inferred Mineral Resources for all metals attributable to Wheaton
were 9.37 million ounces, a decrease of 18% with 13% related to the
terminations of the Yauliyacu and Keno Hill streams.
Estimated attributable reserves and resources contained in this
press release are based on information available to the Company as
of March 2, 2023, and therefore will not reflect updates, if any,
after that date. Updated reserves and resources data incorporating
year-end 2022 estimates will also be included in the Company's 2022
Annual Information Form. Wheaton's most current attributable
reserves and resources, as of December 31, 2022, can be found on
the Company's website at www.wheatonpm.com.
Sustainability
Community Investment Program:
-- In 2022, Wheaton's contribution to the Nature Trust of B.C.
was directed towards the Shoal Creek Estuary in an effort to
acquire, protect and enhance estuaries along the B.C. coastline. In
the fourth quarter, the Fall Gala Presented by Wheaton raised over
$1.5 million in support of The Nature Trust's conservation
programs.
-- In 2022, Wheaton made a $1 million commitment to the British
Columbia Institute of Technology's Inspire Campaign aimed at
transforming the campus into a dynamic new learning
environment.
-- In the fourth quarter, the Sports Celebrities Festival
Presented by Wheaton Precious Metals raised over CA$550,000 in
support of Special Olympics BC and the Canucks for Kids Fund.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
Wheaton's estimated attributable production in 2023 as well as
the 5-year average and 10-year annual gold equivalent production is
as follows:
Metal 2023 5-year Annual 10-year Annual
Forecast (2) Average Average
(2023-2027) (2023-2032)
(2) (,) (5) (2) (,) (5)
Gold Ounces 320,000 to 350,000
-------------------
Silver Ounces ('000s) 20,000 to 22,000
-------------------
Other Metals (Palladium
& Cobalt) (GEOs(3) ) 22,000 to 25,000
------------------- -------------- ---------------
Total Gold Equivalent
Ounces (3) 600,000 to 660,000 810,000 850,000
------------------- -------------- ---------------
In 2023, gold equivalent production is forecast to be slightly
higher than 2022 as expected stronger attributable production from
Salobo and Constancia is forecast to be offset by weaker production
from Antamina and the termination of the silver stream on
Yauliyacu. Attributable production is forecast to increase at
Salobo as a result of uninterrupted operations as well as the
start-up of the Salobo III mine expansion and at Constancia due to
higher grades associated with the mining of the Pampacancha
deposit. Attributable production is forecast to decrease a Antamina
due to lower grades as per the mine plan.
Average forecast production over the next five years is expected
to increase primarily due to anticipated continued production
growth from Salobo, Stillwater, Constancia, Voisey's Bay and
Marmato as well as incremental production ounces from Blackwater,
Toroparu, Marathon, Copper World Complex and Santo Domingo towards
the latter end of the forecast period. Average forecast production
over the next ten years includes additional incremental production
from the Fenix project, Kutcho project and the Victor mine in
Sudbury. Vale S.A. has indicated the potential for an additional
expansion after the Salobo III expansion, but Wheaton does not
currently include this in its forecast. Lastly, although Barrick
Gold Corp. continues to advance a comprehensive review of the
Pascua Lama project, Wheaton does not include any production from
the project in its estimated average ten-year production
guidance.
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.
Webcast and Conference Call Details
A conference call will be held on Friday, March 10, 2023,
starting at 11:00 am (Eastern Time) to discuss these results. To
participate in the live call please use one of the following
methods:
To join the conference call without operator assistance, you may
register and enter your phone number here to receive an instant
automated call back.
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: 94667668
Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the
call.
The conference call will be recorded and available until March
17, 2023 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: 667668 #
Archived audio webcast: Webcast Link
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
.
End Notes
Consolidated Statements of Earnings
Years Ended December
31
(US dollars and shares in thousands,
except per share amounts) 2022 2021
----------------------------------------------- --------------- --------------
Sales $ 1,065,053 $ 1,201,665
------------------------------------------------ ---------- ----------
Cost of sales
Cost of sales, excluding depletion $ 267,621 $ 287,947
Depletion 231,952 254,793
----------------------------------------------------- ---------- ----------
Total cost of sales $ 499,573 $ 542,740
------------------------------------------------ ---------- ----------
Gross margin $ 565,480 $ 658,925
General and administrative expenses 35,831 35,119
Share based compensation 20,060 19,265
Donations and community investments 6,296 6,601
Impairment (impairment reversal) of mineral
stream interests (8,611) (156,717)
----------------------------------------------------- ---------- ----------
Earnings from operations $ 511,904 $ 754,657
Gain on disposal of mineral stream interest (155,868) -
Other (income) expense (7,449) (5,776)
----------------------------------------------------- ---------- ----------
Earnings before finance costs and income
taxes $ 675,221 $ 760,433
Finance costs 5,586 5,817
----------------------------------------------------- ---------- ----------
Earnings before income taxes $ 669,635 $ 754,616
Income tax (expense) recovery (509) 269
----------------------------------------------------- ---------- ----------
Net earnings $ 669,126 $ 754,885
------------------------------------------------ ---------- ----------
Basic earnings per share $ 1.482 $ 1.677
Diluted earnings per share $ 1.479 $ 1.673
Weighted average number of shares outstanding
Basic 451,570 450,138
Diluted 452,344 451,170
===================================================== ========== ==========
Consolidated Balance Sheets
As at As at
December 31 December 31
(US dollars in thousands) 2022 2021
------------------------------------------------- ---------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 696,089 $ 226,045
Accounts receivable 10,187 11,577
Cobalt inventory 10,530 8,712
Other 3,287 3,390
------------------------------------------------------- ---------- --- ----------
Total current assets $ 720,093 $ 249,724
------------------------------------------------- ---- ---------- --- ----------
Non-current assets
Mineral stream interests $ 5,707,019 $ 5,905,797
Early deposit mineral stream interests 46,092 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 256,095 61,477
Refundable deposit - 777 PMPA 8,073 -
Convertible notes receivable - 17,086
Property, plant and equipment 4,210 5,509
Other 11,718 15,211
------------------------------------------------------- ---------- --- ----------
Total non-current assets $ 6,039,813 $ 6,046,427
------------------------------------------------- ---- ---------- --- ----------
Total assets $ 6,759,906 $ 6,296,151
------------------------------------------------- ---- ---------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 12,570 $ 13,939
Current taxes payable 2,763 132
Current portion of performance share units 14,566 14,807
Current portion of lease liabilities 818 813
Total current liabilities $ 30,717 $ 29,691
------------------------------------------------- ---- ---------- --- ----------
Non-current liabilities
Performance share units 6,673 11,498
Lease liabilities 1,152 2,060
Deferred income taxes 165 100
Pension liability 3,524 2,685
------------------------------------------------------- ---------- --- ----------
Total non-current liabilities $ 11,514 $ 16,343
------------------------------------------------- ---- ---------- --- ----------
Total liabilities $ 42,231 $ 46,034
------------------------------------------------- ---- ---------- --- ----------
Shareholders' equity
Issued capital $ 3,752,662 $ 3,698,998
Reserves 66,547 47,036
Retained earnings 2,898,466 2,504,083
------------------------------------------------------- ---------- --- ----------
Total shareholders' equity $ 6,717,675 $ 6,250,117
------------------------------------------------- ---- ---------- --- ----------
Total liabilities and shareholders' equity $ 6,759,906 $ 6,296,151
------------------------------------------------- ---- ---------- --- ----------
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands) 2022 2021
--------------------------------------------------------------------------- --------------- --------------
Operating activities
Net earnings $ 669,126 $ 754,885
Adjustments for
Depreciation and depletion 233,539 256,685
Gain on disposal of mineral stream interest (155,868) -
Impairment (reversal of impairment) of mineral stream interests (8,611) (156,717)
Interest expense 91 352
Equity settled stock based compensation 5,846 5,262
Performance share units (4,196) (2,925)
Pension expense 1,033 1,014
Income tax expense (recovery) 509 (269)
Loss (gain) on fair value adjustment of share purchase warrants held 1,033 2,101
Fair value (gain) loss on convertible note receivable 1,380 (5,733)
Investment income recognized in net earnings (6,774) (462)
Other (1,313) (510)
Change in non-cash working capital 1,573 (8,072)
================================================================================= ========== ==========
Cash generated from operations before income taxes and interest $ 737,368 $ 845,611
Income taxes recovered (paid) (171) (279)
Interest paid (93) (429)
Interest received 6,320 242
================================================================================= ========== ==========
Cash generated from operating activities $ 743,424 $ 845,145
============================================================================ ========== ==========
Financing activities
Bank debt repaid $ - $ (195,000)
Credit facility extension fees (1,357) (1,727)
Share purchase options exercised 10,368 7,953
Lease payments (800) (780)
Dividends paid (237,097) (218,052)
================================================================================= ========== ==========
Cash (used for) generated from financing activities $ (228,886) $ (407,606)
============================================================================ ========== ==========
Investing activities
Mineral stream interests $ (151,929) $ (520,891)
Early deposit mineral stream interests (1,500) (1,500)
Mineral royalty interest - (3,571)
Net proceeds on disposal of mineral stream interests 131,763 -
Acquisition of long-term investments (22,768) (7,453)
Proceeds on disposal of long-term investments - 129,753
Dividends received 453 221
Other (316) (775)
================================================================================= ========== ==========
Cash (used for) generated from investing activities $ (44,297) $ (404,216)
============================================================================ ========== ==========
Effect of exchange rate changes on cash and cash equivalents $ (197) $ 39
============================================================================ ========== ==========
Increase in cash and cash equivalents $ 470,044 $ 33,362
Cash and cash equivalents, beginning of year 226,045 192,683
================================================================================= ========== ==========
Cash and cash equivalents, end of year $ 696,089 $ 226,045
---------------------------------------------------------------------------- ---------- ----------
Summary of Units Produced
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Gold ounces
produced (2)
Salobo 37,939 44,212 34,129 44,883 48,235 55,205 55,590 46,622
Sudbury (3) 6,342 3,437 5,289 5,362 4,379 148 4,563 7,004
Constancia 10,496 7,196 8,042 6,311 9,857 8,533 5,525 2,453
San Dimas (4) 10,037 11,808 10,044 10,461 13,714 11,936 11,478 10,491
Stillwater (5) 2,185 1,833 2,171 2,497 2,664 2,949 2,962 3,041
Other
Minto 2,567 3,182 2,480 4,060 3,506 1,703 3,206 2,638
777 (6) - - 3,509 4,003 4,462 4,717 5,035 6,280
Marmato 533 542 778 477 479 433 1,713 -
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Total Other 3,100 3,724 6,767 8,540 8,447 6,853 9,954 8,918
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Total gold ounces
produced 70,099 72,210 66,442 78,054 87,296 85,624 90,072 78,529
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Silver ounces
produced (2)
Peñasquito 1,761 2,017 2,089 2,219 2,145 2,180 2,026 2,202
Antamina 1,107 1,377 1,379 1,260 1,366 1,548 1,558 1,577
Constancia 655 564 584 506 578 521 468 406
Other
Los Filos
(7) 23 23 23 42 37 17 26 31
Zinkgruvan 664 642 739 577 482 658 457 420
Yauliyacu
(8) 261 463 756 637 382 372 629 737
Stratoni
(9) - - - - 129 18 164 165
Minto 33 42 25 45 44 25 33 21
Neves-Corvo 369 323 345 344 522 362 408 345
Aljustrel 313 246 292 287 325 314 400 474
Cozamin 157 179 169 186 213 199 183 230
Marmato 9 7 8 11 7 10 39 -
Keno Hill
(10) - - 48 20 30 44 55 27
777 (6) - - 80 91 96 81 83 130
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Total Other 1,829 1,925 2,485 2,240 2,267 2,100 2,477 2,580
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Total silver
ounces produced 5,352 5,883 6,537 6,225 6,356 6,349 6,529 6,765
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 3,869 3,229 3,899 4,488 4,733 5,105 5,301 5,769
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Cobalt pounds
produced (2)
Voisey's Bay 128 226 136 234 381 370 380 1,162 (1)(1)
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
GEOs produced (12) 148,323 158,554 160,646 170,590 184,551 183,012 190,272 196,756
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
Average payable
rate (2)
Gold 94.9% 95.0% 95.1% 95.2% 96.0% 96.0% 95.8% 95.0%
Silver 83.5% 85.5% 85.5% 86.1% 86.0% 86.6% 86.9% 86.6%
Palladium 91.7% 95.0% 94.6% 92.7% 92.2% 94.5% 95.0% 91.6%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (12) 89.2% 90.2% 90.1% 90.5% 91.4% 91.3% 91.8% 90.7%
------------------ --------------------- --------------------- ---------------------- --------------------- ---------------- --------------- -------------- -----------------
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: Q4 2022 - 348,000
ounces; 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..
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have commenced.
7) Operations at Los Filos were 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) On December 14, 2022 the Company terminated the Yauliyacu
PMPA in exchange for a cash payment of $132 million.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) On September 7, 2022, the Company terminated the Keno Hill
stream in exchange for $141 million of Hecla common shares received
as consideration.
11) 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.
12) GEOs, 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
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Gold ounces sold
Salobo 41,029 31,818 48,515 42,513 47,171 35,185 57,296 51,423
Sudbury (2) 4,988 5,147 7,916 3,712 965 1,915 6,945 3,691
Constancia 6,013 6,336 7,431 10,494 6,196 8,159 2,321 1,676
San Dimas 10,943 10,196 10,633 10,070 15,182 11,346 11,214 10,273
Stillwater (3) 1,783 2,127 2,626 2,628 2,933 2,820 2,574 3,074
Other
Minto 2,982 2,559 2,806 3,695 2,462 1,907 2,359 2,390
777 785 3,098 3,629 4,388 4,290 5,879 5,694 2,577
Marmato 473 719 781 401 423 438 1,687 -
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Total Other 4,240 6,376 7,216 8,484 7,175 8,224 9,740 4,967
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Total gold ounces
sold 68,996 62,000 84,337 77,901 79,622 67,649 90,090 75,104
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Silver ounces sold
Peñasquito 2,066 1,599 2,096 2,188 1,818 2,210 1,844 2,174
Antamina 1,114 1,155 1,177 1,468 1,297 1,502 1,499 1,930
Constancia 403 498 494 644 351 484 295 346
Other
Los Filos 16 24 41 42 17 12 42 27
Zinkgruvan 547 376 650 355 346 354 355 293
Yauliyacu 337 1,005 817 44 551 182 601 1,014
Stratoni - - (2) 133 42 41 167 117
Minto 23 22 21 31 27 24 29 26
Neves-Corvo 80 105 167 204 259 193 215 239
Aljustrel 156 185 123 145 133 155 208 257
Cozamin 150 154 148 177 174 170 168 173
Marmato 7 8 11 8 8 10 35 -
Keno Hill 1 30 30 27 24 51 33 12
777 35 73 75 87 69 99 109 49
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Total Other 1,352 1,982 2,081 1,253 1,650 1,291 1,962 2,207
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Total silver
ounces sold 4,935 5,234 5,848 5,553 5,116 5,487 5,600 6,657
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Palladium ounces
sold
Stillwater (3) 3,396 4,227 3,378 4,075 4,641 5,703 3,869 5,131
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Cobalt pounds sold
Voisey's Bay 187 115 225 511 228 131 395 132
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
GEOs sold (4) 142,190 138,824 170,371 166,065 157,439 149,862 176,502 172,271
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Cumulative payable
units PBND (5)
Gold ounces 63,601 65,978 59,331 81,365 84,989 80,819 66,238 70,072
Silver ounces 2,820 3,444 3,543 3,910 4,200 3,845 3,802 3,738
Palladium ounces 5,098 5,041 6,267 5,535 5,629 5,619 6,822 5,373
Cobalt pounds 257 402 280 550 596 637 777 820
GEO (4) 111,867 125,151 119,009 150,032 158,477 150,317 139,145 141,206
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
Inventory on hand
Cobalt pounds 633 556 582 410 657 488 134 132
------------------ --------------------- --------------------- ----------------------- -------------------- ---------------- --------------- -------------- -----------------
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, 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 $33.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended December 31, 2022
---------------------------------------------------------------------------------------------------------------------------------
Impairment
Average (Charges)
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- ----------- -------- ---------- ----------
Gold
Salobo 37,939 41,029 $ 1,728 $ 416 $ 334 $ 70,878 $ - $ 40,110 $ 53,800 $2,383,262
Sudbury (5) 6,342 4,988 1,712 400 1,092 8,538 - 1,095 7,809 283,416
Constancia 10,496 6,013 1,728 416 271 10,388 - 6,255 7,885 95,583
San Dimas 10,037 10,943 1,728 624 260 18,903 - 9,231 12,071 155,865
Stillwater 2,185 1,783 1,728 309 429 3,080 - 1,765 2,530 215,852
Other (6) 3,100 4,240 1,713 894 59 7,264 (1,719) 1,505 4,697 494,143
70,099 68,996 $ 1,725 $ 475 $ 357 $119,051 $ (1,719) $ 59,961 $ 88,792 $3,628,121
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Silver
Peñasquito 1,761 2,066 $ 21.28 $ 4.36 $ 3.57 $ 43,949 $ - $ 27,577 $ 34,943 $ 293,674
Antamina 1,107 1,114 21.28 4.33 7.06 23,701 - 11,009 18,872 545,368
Constancia 655 403 21.28 6.14 6.35 8,572 - 3,538 6,098 192,947
Other (7) 1,829 1,352 22.15 6.19 5.03 29,953 51,443 66,228 20,283 453,096
----------
5,352 4,935 $ 21.52 $ 5.00 $ 4.98 $106,175 $ 51,443 $108,352 $ 80,196 $1,485,085
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Palladium
Stillwater 3,869 3,396 $ 1,939 $ 357 $ 399 $ 6,586 $ - $ 4,018 $ 5,373 $ 226,812
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,428
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Cobalt
Voisey's Bay 128 187 $ 22.62 $ 16.52 $ 13.72 $ 4,239 $ - $(1,426) $ 3,766 $ 357,573
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Operating results $236,051 $ 49,724 $170,905 $ 178,127 $5,707,019
------------------------------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
Other
General and administrative $(8,383) $ (6,399)
Share based compensation (8,474) -
Donations and community
investments (2,916) (2,742)
Finance costs (1,377) (1,028)
Other 4,000 4,100
Income tax 12,370 (30)
Total other $(4,780) $ (6,099) $1,052,887
--------------------------------------- -------- -------- -------- ------- ---------- ------- --------- ---------
$166,125 $ 172,028 $6,759,906
------------------ ----------- ------ -------- -------- -------- ------- ---------- ------- --------- ---------
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) The gain on disposal of Other silver interests relates to the
termination of the Yauliyacu PMPA, while the impairment of Other
gold interests relates to the 777 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,
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 Yauliyacu and Keno Hill silver interests. 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 December 14, 2022 the Yauliyacu
PMPA was terminated in exchange for a cash payment of $132
million.
8) Cash cost per pound of cobalt sold during the fourth quarter
of 2022 includes an inventory impairment charge of $1.6 million,
resulting in an increase of $8.71 per pound. The Company reflects
the cobalt inventory at the lower of cost and net realizable value,
and will continue to monitor the market price of cobalt relative to
the carrying of the inventory at each reporting period.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended December 31, 2022 were as
follows:
Three Months Ended December 31, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 148,323 142,190 $ 1,660 $ 434 $ 1,226 $ 374 $ 852
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, 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 $33.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2022.
Three Months Ended December 31, 2021
-------------------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Impairment Net Cash Flow
Units Units ($'s ($'s Per ($'s Per Reversal Earnings From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) (Loss) Operations Assets
------------------ ----------- ------ ------------ --------- --------- -------- ----------- --------- ---------- ----------
Gold
Salobo 48,235 47,171 $ 1,799 $ 412 $ 374 $ 84,849 $ - $ 47,781 $ 63,659 $2,437,939
Sudbury (5) 4,379 965 1,795 400 1,024 1,732 - 357 1,346 307,169
Constancia 9,857 6,196 1,799 412 315 11,147 - 6,642 8,398 103,789
San Dimas 13,714 15,182 1,799 618 322 27,309 - 13,030 17,923 166,723
Stillwater 2,664 2,933 1,799 319 397 5,275 - 3,176 4,340 219,785
Other (6) 8,447 7,175 1,795 676 42 12,875 - 7,721 8,463 364,792
87,296 79,622 $ 1,798 $ 472 $ 338 $143,187 $ - $ 78,707 $ 104,129 $3,600,197
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Silver
Peñasquito 2,145 1,818 $ 23.28 $ 4.29 $ 3.55 $ 42,314 $ - $ 28,064 $ 34,515 $ 322,018
Antamina 1,366 1,297 23.33 4.73 7.53 30,250 - 14,351 25,091 580,052
Constancia 578 351 23.28 6.08 7.56 8,170 - 3,383 5,739 205,884
Other (7) 2,267 1,650 23.48 7.22 5.83 38,770 - 17,226 26,118 593,195
6,356 5,116 $ 23.36 $ 5.47 $ 5.57 $119,504 $ - $ 63,024 $ 91,463 $1,701,149
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 4,733 4,641 $ 1,918 $ 340 $ 442 $ 8,902 $ - $ 5,268 $ 7,323 $ 232,830
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 381 228 $ 28.94 $ 4.68 $ 8.17 $ 6,604 $ 156,717 $ 160,390 $ 2,443 $ 371,621
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Operating results $278,197 $ 156,717 $ 307,389 $ 205,358 $5,905,797
------------------------------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Other
General and administrative $ (8,547) $ (6,043)
Share based compensation (5,519) -
Donations and community
investments (2,889) (3,067)
Finance costs (1,508) (1,026)
Other 3,581 296
Income tax (685) (228)
Total other $(15,567) $ (10,068) $ 390,354
--------------------------------------- -------- -------- -------- ------- ---------- -------- --------- ---------
$ 291,822 $ 195,290 $6,296,151
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
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 Voisey's Bay PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
6) 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.
7) Comprised of the operating Los Filos, Zinkgruvan, 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 and Yauliyacu silver interests.
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 December 14, 2022 the
Yauliyacu PMPA was terminated in exchange for a cash payment of
$132 million.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended December 31, 2021 were as
follows:
Three Months Ended December 31, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 184,551 157,439 $ 1,767 $ 433 $ 1,334 $ 377 $ 957
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, 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 $33.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2022.
Year Ended December 31, 2022
-------------------------------------------------------------------------------------------------------------------------------------
Impairment
Average (Charges)
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- ---------- ----------- --------- ---------- ----------
Gold
Salobo 161,163 163,875 $ 1,807 $ 416 $ 334 $ 296,145 $ - $ 173,257 $ 227,933 $2,383,262
Sudbury (5) 20,430 21,763 1,802 400 1,091 39,211 - 6,752 30,789 283,416
Constancia 32,045 30,274 1,812 414 271 54,868 - 34,142 42,348 95,583
San Dimas 42,350 41,842 1,798 623 260 75,238 - 38,327 49,186 155,865
Stillwater 8,686 9,164 1,810 325 429 16,583 - 9,667 13,600 215,852
Other (6) 22,131 26,316 1,811 760 48 47,653 (1,719) 24,687 27,610 494,143
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
286,805 293,234 $ 1,806 $ 472 $ 350 $ 529,698 $ (1,719) $ 286,832 $ 391,466 $3,628,121
================== =========== ======= ======== ======== ======== ========= ========== ======== ========= =========
Silver
Peñasquito 8,086 7,949 $ 21.97 $ 4.36 $ 3.57 $ 174,635 $ - $ 111,634 $ 139,978 $ 293,674
Antamina 5,123 4,914 21.94 4.40 7.06 107,794 - 51,488 85,824 545,368
Constancia 2,309 2,039 21.97 6.10 6.35 44,798 - 19,421 32,358 192,947
Other (7) 8,479 6,668 21.56 6.95 5.50 143,776 166,198 226,995 96,251 453,096
---------- --------
23,997 21,570 $ 21.84 $ 5.33 $ 5.22 $ 471,003 $ 166,198 $ 409,538 $ 354,411 $1,485,085
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Palladium
Stillwater 15,485 15,076 $ 2,133 $ 377 $ 399 $ 32,160 $ - $ 20,455 $ 26,472 $ 226,812
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,428
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 724 1,038 $ 31.00 $ 8.10 $ 10.26 $ 32,192 $ - $ 13,134 $ 28,449 $ 357,573
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Operating results $1,065,053 $ 164,479 $ 729,959 $ 800,798 $5,707,019
------------------------------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Other
General and administrative $(35,831) $ (35,332)
Share based compensation (20,060) (18,161)
Donations and community
investments (6,296) (5,718)
Finance costs (5,586) (4,135)
Other 7,449 6,143
Income tax (509) (171)
Total other $(60,833) $ (57,374) $1,052,887
---------------------------------------- -------- -------- -------- --------- ---------- -------- --------- ---------
$ 669,126 $ 743,424 $6,759,906
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
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) The gain on disposal of Other silver interests relates to the
termination of the Keno Hill and Yauliyacu PMPAs, while the
impairment of Other gold interests relates to the 777 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 and 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,
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 and Yauliyacu silver interests. 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 December 14, 2022 the Yauliyacu
PMPA was terminated in exchange for a cash payment of $132
million.
8) Cash cost per pound of cobalt sold during the fourth quarter
of 2022 includes an inventory impairment charge of $1.6 million,
resulting in an increase of $1.60 per pound. The Company reflects
the cobalt inventory at the lower of cost and net realizable value,
and will continue to monitor the market price of cobalt relative to
the carrying of the inventory at each reporting period.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2022 were as
follows:
Year Ended December 31, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Depletion Margin
Ounces Ounces ($'s Per ($'s Per Cash Operating Margin ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) ($'s Per Ounce) (3) Ounce) Ounce)
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
Gold equivalent basis
(4) 638,113 617,450 $ 1,725 $ 433 $ 1,292 $ 376 $ 916
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, 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 $33.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2022.
Year Ended December 31, 2021
-------------------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Impairment Cash Flow
Units Units ($'s ($'s Per ($'s Per Reversal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- ---------- ----------- --------- ---------- ----------
Gold
Salobo 205,652 191,075 $ 1,797 $ 412 $ 374 $ 343,398 $ - $ 193,247 $ 264,652 $2,437,939
Sudbury (5) 16,094 13,516 1,811 400 1,024 24,475 - 5,221 19,068 307,169
Constancia 26,368 18,352 1,797 411 315 32,974 - 19,658 25,438 103,789
San Dimas 47,619 48,015 1,797 617 322 86,290 - 41,199 56,679 166,723
Stillwater 11,616 11,401 1,797 325 397 20,487 - 12,259 16,784 219,785
Other (6) 34,172 30,106 1,804 607 61 54,296 - 34,192 36,444 364,792
341,521 312,465 $ 1,798 $ 459 $ 361 $ 561,920 $ - $ 305,776 $ 419,065 $3,600,197
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Silver
Peñasquito 8,553 8,046 $ 25.07 $ 4.29 $ 3.55 $ 201,688 $ - $ 138,616 $ 167,169 $ 322,018
Antamina 6,049 6,228 25.17 5.04 7.53 156,735 - 78,458 125,688 580,052
Constancia 1,973 1,476 24.91 6.05 7.56 36,775 - 16,689 27,848 205,884
Other (7) 9,424 7,110 25.07 8.06 5.56 178,231 - 81,393 123,359 593,195
25,999 22,860 $ 25.08 $ 5.78 $ 5.52 $ 573,429 $ - $ 315,156 $ 444,064 $1,701,149
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Palladium
Stillwater 20,908 19,344 $ 2,369 $ 433 $ 442 $ 45,834 $ - $ 28,891 $ 37,450 $ 232,830
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 2,293 886 $ 23.11 $ 4.67 $ 8.17 $ 20,482 $ 156,717 $ 165,819 $ 3,687 $ 371,621
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Operating results $1,201,665 $ 156,717 $ 815,642 $ 904,266 $5,905,797
------------------------------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
Other
General and administrative $(35,119) $ (31,931)
Share based compensation (19,265) (16,926)
Donations and community
investments (6,601) (6,323)
Finance costs (5,817) (4,271)
Other 5,776 609
Income tax 269 (279)
Total other $(60,757) $ (59,121) $ 390,354
---------------------------------------- -------- -------- -------- --------- ---------- -------- --------- ---------
$ 754,885 $ 845,145 $6,296,151
------------------ ----------- ------- -------- -------- -------- --------- ---------- -------- --------- ---------
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 Voisey's Bay PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
6) 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.
7) Comprised of the operating Los Filos, Zinkgruvan, 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 and Yauliyacu silver interests.
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 December 14, 2022 the
Yauliyacu PMPA was terminated in exchange for a cash payment of
$132 million.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2021 were as
follows:
Year Ended December 31, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Depletion Margin
Ounces Ounces ($'s Per ($'s Per Cash Operating Margin ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) ($'s Per Ounce) (3) Ounce) Ounce)
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
Gold equivalent basis
(4) 754,591 656,074 $ 1,832 $ 439 $ 1,393 $ 388 $ 1,005
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, 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 Years Ended
December 31 December 31
(in thousands, except for per share amounts) 2022 2021 2022 2021
------------------------------------------------------- --------- ---------- ---------- ----------
Net earnings $ 166,125 $ 291,822 $ 669,126 $ 754,885
Add back (deduct):
Impairment charge (reversal) 1,719 (156,717) (8,611) (156,717)
Gain on disposal of Mineral Stream Interest (51,443) - (155,868) -
(Gain) loss on fair value adjustment of share
purchase warrants held (67) (290) 1,033 2,101
(Gain) loss on fair value adjustment of convertible
notes receivable - (1,597) 1,380 (5,733)
Income tax (expense) recovery recognized in the
Statement of Shareholders' Equity - 974 4,143 1,811
Income tax (expense) recovery recognized in the
Statement of OCI (7,214) (325) (6,513) (2,314)
Income tax expense (recovery) resulting from
disposal of Mineral Stream Interest, net of above (5,376) - 2,404 -
Other - (1,635) (2,182) (1,954)
------------------------------------------------------- -------- --------- --------- ---------
Adjusted net earnings $ 103,744 $ 132,232 $ 504,912 $ 592,079
------------------------------------------------------- -------- --------- --------- ---------
Divided by:
Basic weighted average number of shares outstanding 452,070 450,614 451,570 450,138
Diluted weighted average number of shares outstanding 452,778 451,570 452,344 451,170
------------------------------------------------------- -------- --------- --------- ---------
Equals:
Adjusted earnings per share - basic $ 0.229 $ 0.293 $ 1.118 $ 1.315
Adjusted earnings per share - diluted $ 0.229 $ 0.293 $ 1.116 $ 1.312
------------------------------------------------------- -------- --------- --------- ---------
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 Years Ended
December 31 December 31
(in thousands, except for per share amounts) 2022 2021 2022 2021
---------------------------------------------------------- ------------ -------- -------- --------
Cash generated by operating activities $ 172,028 $195,290 $743,424 $845,145
---------------------------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 452,070 450,614 451,570 450,138
Diluted weighted average number of shares outstanding 452,778 451,570 452,344 451,170
---------------------------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share - basic $ 0.381 $ 0.433 $ 1.646 $ 1.878
Operating cash flow per share - diluted $ 0.380 $ 0.432 $ 1.643 $ 1.873
---------------------------------------------------------- -------- ------- ------- -------
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 Years Ended
December 31 December 31
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2022 2021 2022 2021
-------------------------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 114,870 $ 127,525 $ 499,573 $ 542,740
Less: depletion (53,139) (59,335) (231,952) (254,793)
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 61,731 $ 68,190 $ 267,621 $ 287,947
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 32,749 $ 37,550 $ 138,468 $ 143,272
Total cash cost of silver sold 24,674 27,993 115,058 132,151
Total cash cost of palladium sold 1,213 1,580 5,687 8,384
Total cash cost of cobalt sold 3,095 1,067 8,408 4,140
-------------------------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 61,731 $ 68,190 $ 267,621 $ 287,947
-------------------------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 68,996 79,622 293,234 312,465
Total silver ounces sold 4,935 5,116 21,570 22,860
Total palladium ounces sold 3,396 4,641 15,076 19,344
Total cobalt pounds sold 187 228 1,038 886
-------------------------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 475 $ 472 $ 472 $ 459
Average cash cost of silver (per ounce) $ 5.00 $ 5.47 $ 5.33 $ 5.78
Average cash cost of palladium (per ounce) $ 357 $ 340 $ 377 $ 433
Average cash cost of cobalt (per pound) $ 16.52 $ 4.68 $ 8.10 $ 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 Years Ended
December 31 December 31
(in thousands, except for gold and palladium ounces sold and
per unit amounts) 2022 2021 2022 2021
============================================================ ============ ======== ======== ========
Total sales:
Gold $ 119,051 $143,187 $529,698 $561,920
Silver $ 106,175 $119,504 $471,003 $573,429
Palladium $ 6,586 $ 8,902 $ 32,160 $ 45,834
Cobalt $ 4,239 $ 6,604 $ 32,192 $ 20,482
Divided by:
Total gold ounces sold 68,996 79,622 293,234 312,465
Total silver ounces sold 4,935 5,116 21,570 22,860
Total palladium ounces sold 3,396 4,641 15,076 19,344
Total cobalt pounds sold 187 228 1,038 886
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Average realized price of gold (per ounce) $ 1,725 $ 1,798 $ 1,806 $ 1,798
Average realized price of silver (per ounce) $ 21.52 $ 23.36 $ 21.84 $ 25.08
Average realized price of palladium (per ounce) $ 1,939 $ 1,918 $ 2,133 $ 2,369
Average realized price of cobalt (per pound) $ 22.62 $ 28.94 $ 31.00 $ 23.11
Less:
Average cash cost of gold (1) (per ounce) $ (475) $ (472) $ (472) $ (459)
Average cash cost of silver (1) (per ounce) $ (5.00) $ (5.47) $ (5.33) $ (5.78)
Average cash cost of palladium (1) (per ounce) $ (357) $ (340) $ (377) $ (433)
Average cash cost of cobalt (1) (per pound) $ (16.52) $ (4.68) $ (8.10) $ (4.67)
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,250 $ 1,326 $ 1,334 $ 1,339
As a percentage of realized price of gold 72% 74% 74% 74%
Cash operating margin per silver ounce sold $ 16.52 $ 17.89 $ 16.51 $ 19.30
As a percentage of realized price of silver 77% 77% 76% 77%
Cash operating margin per palladium ounce sold $ 1,582 $ 1,578 $ 1,756 $ 1,936
As a percentage of realized price of palladium 82% 82% 82% 82%
Cash operating margin per cobalt pound sold $ 6.10 $ 24.26 $ 22.90 $ 18.44
As a percentage of realized price of cobalt 27% 84% 74% 80%
------------------------------------------------------------ -------- ------- ------- -------
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
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
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 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, risks of significant impacts on
Wheaton or the Mining Operations as a result of an epidemic
(including the COVID-19 virus pandemic), 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): 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.
Cautionary Language Regarding Reserves And Resources
For further information on Mineral Reserves and Mineral
Resources and on Wheaton more generally, readers should refer to
Wheaton's Annual Information Form for the year ended December 31,
2022, which will be filed on or about March 31, 2023 and other
continuous disclosure documents filed by Wheaton since January 1,
2023, available on SEDAR at www.sedar.com. Wheaton's Mineral
Reserves and Mineral Resources are subject to the qualifications
and notes set forth therein. Mineral Resources which are not
Mineral Reserves do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates
of Measured, Indicated and Inferred Resources: The information
contained herein has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of United States securities laws. The
terms "mineral reserve", "proven mineral reserve" and "probable
mineral reserve" are Canadian mining terms defined in accordance
with Canadian National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ("NI 43-101") and the Canadian Institute of
Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the
CIM Council, as amended (the "CIM Standards"). In addition, the
terms "mineral resource", "measured mineral resource", "indicated
mineral resource" and "inferred mineral resource" are defined in
and required to be disclosed by NI 43-101. Investors are cautioned
not to assume that any part or all of the mineral deposits in these
categories will ever be converted into reserves. "Inferred mineral
resources" have a great amount of uncertainty as to their existence
and as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will
ever be upgraded to a higher category. Under Canadian rules,
estimates of inferred mineral resources may not form the basis of
feasibility or pre-feasibility studies, except in rare cases.
Investors are cautioned not to assume that all or any part of an
inferred mineral resource exists or is economically or legally
mineable. Mineral resources that are not mineral reserves do not
have demonstrated economic viability. Disclosure of "contained
ounces" in a resource is permitted disclosure under Canadian
regulations. The SEC has adopted amendments to its disclosure rules
to modernize the mineral property disclosure requirements for
issuers whose securities are registered with the SEC under the U.S.
Securities Exchange Act of 1934, as amended (the "Exchange Act").
These amendments became effective February 25, 2019 (the "SEC
Modernization Rules") with compliance required for the first fiscal
year beginning on or after January 1, 2021. Under the SEC
Modernization Rules, the historical property disclosure
requirements for mining registrants included in SEC Industry Guide
7 will be rescinded and replaced with disclosure requirements in
subpart 1300 of SEC Regulation S-K. Following the transition
period, as a foreign private issuer that is eligible to file
reports with the SEC pursuant to the multi-jurisdictional
disclosure system, the Company is not required to provide
disclosure on its mineral properties under the SEC Modernization
Rules and will continue to provide disclosure under NI 43-101. As a
result of the adoption of the SEC Modernization Rules, the SEC will
recognize estimates of "measured mineral resources", "indicated
mineral resources" and "inferred mineral resources." In addition,
the SEC has amended its definitions of "proven mineral reserves"
and "probable mineral reserves" to be "substantially similar" to
the corresponding definitions under the CIM Definition Standards
that are required under NI 43-101. However, while the above terms
are "substantially similar" to CIM Definition Standards, there are
differences in the definitions under the SEC Modernization Rules
and the CIM Definition Standards. Accordingly, there is no
assurance any mineral reserves or mineral resources that the
Company may report as "proven mineral reserves", "probable mineral
reserves", "measured mineral resources", "indicated mineral
resources" and "inferred mineral resources" under NI 43-101 would
be the same had the Company prepared the reserve or resource
estimates under the standards adopted under the SEC Modernization
Rules. Accordingly, information contained herein that describes
Wheaton's mineral deposits may not be comparable to similar
information made public by U.S. companies subject to reporting and
disclosure requirements under the United States federal securities
laws and the rules and regulations thereunder. United States
investors are urged to consider closely the disclosure in Wheaton's
Form 40-F, a copy of which may be obtained from Wheaton or from
https://www.sec.gov/edgar.shtml.
For further information, please contact:
Patrick Drouin or Emma Murray
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 March
9, 2023, titled "Wheaton Precious Metals Declares Quarterly
Dividend."
[2] Statements made in this section contain forward-looking
information with respect to forecast production, funding
outstanding commitments and continuing to acquire accretive mineral
stream interests and readers are cautioned that actual outcomes may
vary. Please see "Cautionary Note Regarding Forward-Looking
Statements" for material risks, assumptions and important
disclosure associated with this information.
[3] Company reports & S and P Capital IQ est. of 2022
byproduct cost curves for gold, zinc/lead, copper, PGM, nickel
& silver mines. GEOs relating to 2022 production, which are
provided to assist the reader, are based on the following commodity
price assumptions: gold $1,800/oz, silver $24/oz, palladium
$2,100/oz and cobalt $33/lb. GEOs relating to 2023 outlook are
based on the following commodity price assumptions: gold $1,850/oz,
silver $24/oz, palladium $1,800/oz, platinum $1,100/oz and cobalt
$18.75/lb
[4] Portfolio mine life based on recoverable reserves and
resources as of Dec 31, 2022 and 2022 actual mill throughput and is
weighted by individual reserve and resource category.
[5] 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.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
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END
FR GLGDXUUBDGXG
(END) Dow Jones Newswires
March 10, 2023 02:00 ET (07:00 GMT)
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