TIDMWPM
RNS Number : 5569Y
Wheaton Precious Metals Corp.
05 May 2023
May 4, 2023
Vancouver, British Columbia
Designated News Release
FIRST QUARTER FINANCIAL results
Wheaton Precious Metals Announces Solid Start to 2023
"Wheaton's high-quality portfolio of long-life, low-cost assets
delivered a solid performance to start the year, resulting in
revenue of $214 million and robust cash operating margins," said
Randy Smallwood, President and Chief Executive Officer of Wheaton
Precious Metals. "First quarter production was ahead of Company
expectations, and as we continue to see positive developments at a
number of our key assets including Salobo and Constancia, we expect
to see significant production growth throughout 2023, culminating
in a strong second half of the year. Notably, implicit in our
five-year annual average production guidance, is an impressive
organic growth profile of over 40%, with two-thirds coming from
assets already in operation. In addition, our corporate development
team remains exceptionally busy evaluating new opportunities, and
as always, Wheaton is focused on ensuring our growth is both
accretive and sustainable for all of our stakeholders."
Solid Financial Results and Strong Balance Sheet
-- First quarter of 2023: $214 million in revenue, $135 million
in operating cash flow, $111 million in net earnings and $104
million in adjusted net earnings [1]
-- A cash balance of $800 million and no debt as at March 31, 2023
-- Undrawn $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 (3) ("GEOs") of
141,800 ounces in the first quarter of 2023
-- Production from Salobo in the first quarter of 2023 was
43,700 ounces of gold, an increase of over 15% relative to the
fourth quarter of 2022, due to steady ramp up of the Salobo III
expansion
-- As per Hudbay Minerals Inc. ("Hudbay"), full mining
activities at the Constancia mine resumed in the Pampacancha pit in
February, with mining of higher-grade ore now expected in the
second quarter of 2023, ahead of schedule
-- Average annual production for the five and ten-year periods
is expected to be approximately 810,000 and 850,000 GEOs(2,3) ,
respectively
Leadership in Sustainability
-- Top Rankings: #1 out of 116 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) Q1 2023 Q1 2022 Change
---------------------------------------------------- --- -------- ------------- ------------
Units produced
Gold ounces 73,037 78,054 (6.4)%
Silver ounces 4,927 6,225 (20.9)%
Palladium ounces 3,705 4,488 (17.4)%
Cobalt pounds 124 234 (47.0)%
Gold equivalent ounces (3) 141,831 165,555 (14.3)%
Units sold
Gold ounces 62,605 77,901 (19.6)%
Silver ounces 3,749 5,553 (32.5)%
Palladium ounces 2,946 4,075 (27.7)%
Cobalt pounds 323 511 (36.8)%
Gold equivalent ounces (3) 117,383 159,082 (26.2)%
Change in PBND and Inventory
Gold equivalent ounces (3) 10,449 (10,419) (20,868)
---------------------------------------------------------- -------- ------------- ------------
Revenue $ 214,465 $ 307,244 (30.2)%
Net earnings $ 111,391 $ 157,467 (29.3)%
Per share $ 0.246 $ 0.349 (29.5)%
Adjusted net earnings (1) $ 104,431 $ 158,007 (33.9)%
Per share (1) $ 0.231 $ 0.350 (34.0)%
Operating cash flows $ 135,104 $ 210,540 (35.8)%
Per share (1) $ 0.299 $ 0.467 (36.0)%
----------------------------------------------------- -------- ------------- ------------
All amounts in thousands except gold, palladium & gold
equivalent ounces, and per share amounts.
Financial Review
Revenues
Revenue was $214 million (56% gold, 40% silver, 2% palladium and
2% cobalt), with the $93 million decrease being primarily due to
the cessation of production from Yauliyacu, 777 and Keno Hill
coupled with relative changes in the GEOs produced but not yet
delivered(3) and a 5% decrease in the average realized gold
equivalent(3) price.
Cash Costs and Margin
Average cash costs(1) in the first quarter of 2023 were $443 per
GEO(2) as compared to $440 in the first quarter of 2022. This
resulted in a cash operating margin(1) of $1,384 per GEO(3) sold, a
decrease of 7% as compared with the first quarter of 2022.
Cash Flow from Operations
Operating cashflow amounted to $135 million, with the $75
million decrease being due primarily to the lower cash operating
margin and the payout of the Company's performance share units in
the first quarter of 2023 while in 2022 they were paid in the
second quarter.
Balance Sheet (at March 31, 2023 )
-- Approximately $800 million of cash on hand
-- During the first quarter of 2023, the Company made an upfront
cash payment of $31 million relative to the Goose PMPA
-- 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
First Quarter Operating Asset Highlights
Salobo: In the first quarter of 2023, Salobo produced 43,700
ounces of attributable gold, virtually unchanged relative to the
first quarter of 2022, with higher grades and throughput offset by
lower recovery. According to Vale S.A. ("Vale"), production in the
first quarter was impacted by planned and corrective maintenance
activities, with additional maintenance planned for the second
quarter.
Vale reports that 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, both of which
are already in operation, and is expected to reach full capacity in
the fourth quarter of 2024.
Antamina: In the first quarter of 2023, Antamina produced 0.9
million ounces of attributable silver, a decrease of approximately
31% relative to the first quarter of 2022, primarily due to lower
grades as per the mine plan .
Peñasquito: In the first quarter of 2023, Peñasquito produced
2.1 million ounces of attributable silver, a decrease of
approximately 6% relative to the first quarter of 2022 due to lower
recoveries partially offset by higher grades.
Constancia: In the first quarter of 2023, Constancia produced
0.6 million ounces of attributable silver and 6,900 ounces of
attributable gold, an increase of approximately 9% for both metals
relative to the first quarter of 2022, with the increase in both
metals being primarily due to higher throughput and grades. As per
Hudbay, full mining activities resumed in the Pampacancha pit in
February and the period of higher stripping from March to June is
progressing well, with mining of higher-grade ore now expected in
the second quarter of 2023, ahead of schedule.
Sudbury: In the first quarter of 2023, Vale's Sudbury mines
produced 6,200 ounces of attributable gold, an increase of
approximately 16% relative to the first quarter of 2022. As per
Vale, higher production from Sudbury was driven by greater mine
performance and stability in the first quarter.
Stillwater: In the first quarter of 2023, the Stillwater mines
produced 2,000 ounces of attributable gold and 3,700 ounces of
attributable palladium, a decrease of approximately 21% for gold
and 17% for palladium relative to the first quarter of 2022. As
reported by Sibanye-Stillwater Limited ("Sibanye") on March 13,
2023, an incident occurred at the Stillwater mine during scheduled
non-routine maintenance resulting in structural damage to the shaft
headgear, winder house and winder rope. As a result, production
from the Stillwater West mine below the 50 level was suspended for
approximately five weeks, impacting production in the first
quarter, but has since recommenced. 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 first quarter of 2023, San Dimas produced
10,800 ounces of attributable gold, virtually unchanged relative to
the first quarter of 2022.
Other Gold: In the first quarter of 2023, total Other Gold
attributable production was 3,500 ounces, a decrease of
approximately 59% relative to the first quarter of 2022, primarily
due to the closure of the 777 mine in June 2022.
Other Silver: In the first quarter of 2023, total Other Silver
attributable production was 1.4 million ounces, a decrease of
approximately 36% relative to the first quarter of 2022, primarily
due to the closure of the 777 mine and the termination of the Keno
Hill and Yauliyacu PMPAs.
Voisey's Bay: In the first quarter of 2023, the Voisey's Bay
mine produced 124,000 pounds of attributable cobalt, a decrease of
approximately 47% relative to the first quarter of 2022, 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 planned maintenance activities are scheduled for the
second quarter of 2023. Vale reports that physical completion of
the Voisey's Bay underground mine extension was 83% at the end of
the first 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.
First Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. ("Artemis") announced the
approval of its BC Mines Act Permit, the final step required to
allow Artemis to commence major works construction activities at
the Blackwater Mine, with the expectation of an initial gold pour
in the second half of 2024. In addition, Artemis announced that it
issued a purchase order to Finning Canada, for the primary and
ancillary mining fleet required for the initial Phase 1 of
operations. Equipment deliveries to site are planned to commence
late in the fourth quarter of 2023 and continue throughout the
first half of 2024, in preparation for the pre-strip-mining phase.
As per Artemis, the entire fleet is expected to be "shovel ready"
during the second half of 2024, to meet Artemis' operational
readiness objectives and commence operations.
Copper World Complex: In January 2023, Hudbay received an
approved right-of-way from the Arizona State Land Department that
will allow for infrastructure such as roads, pipelines and
powerlines, to connect between the properties in the company's
private land package at Copper World. Subsequent to the quarter,
Hudbay announced the receipt of confirmation from the Army Corps of
Engineers that Hudbay's previous surrender of the Section 404 Clean
Water Act permit for the former Rosemont project was formally
accepted and revoked as requested. Clearing and grading work to
prepare for the Copper World site, including the construction of
roads and other facilities, continues to be underway. As per
Hudbay, pre-feasibility activities for the private land Phase I of
the Copper World project are well-advanced and a pre-feasibility
study is expected to be released in mid-2023.
Goose Project: On April 12, 2023, Sabina Gold & Silver Corp
("Sabina") announced that the shareholders approved the proposed
acquisition by B2Gold Corp. ("B2Gold") of all the issued and
outstanding common shares of Sabina. The transaction closed April
19, 2023. Subsequent to closing, B2Gold exercised the option to
acquire 33% of the stream under the Goose PMPA in exchange for a
cash payment in the amount of $46 million, resulting in a gain on
partial disposal of the PMPA in the amount of $5 million. B2Gold
continues to advance construction of the Goose project, moving
toward commencement of production in 2025 and initiating an
exploration program to further define untapped potential and unlock
further opportunities for growth.
Marathon Project: Generation Mining Limited ("Gen Mining")
announced positive results on the updated Feasibility Study for the
Marathon Project, presenting an optimized design with increased
process plant throughput. Additionally, Gen Mining finalized an
offtake term sheet with Glencore for copper concentrate, containing
copper, palladium, platinum, gold, and silver. Finally, Gen Mining
has executed a mandate letter to arrange a senior secured project
finance facility of up to $400 million, with a syndicate including
Export Development Canada, together with ING Capital LLC and
Societe Generale S.A. acting as the Mandated Lead Arrangers. This
represents a key milestone in the project financing process for the
development of the Marathon Project.
Sustainability
Climate Change:
-- Subsequent to the quarter, on April 27, 2023, Hudbay
announced the signing of a new 10-year power purchase agreement
with ENGIE Energía Perú for access to a 100% renewable energy
supply to Hudbay's Constancia operations in Peru. As reported by
Hudbay, Hudbay's Scope 1 and Scope 2 greenhouse gas emissions are
expected to significantly decline as a result of the new Constancia
renewable energy supply agreement, which should reduce Wheaton's
attributable scope 3 emissions from the Constancia mine and help
advance the Company's Net Zero targets.
Community Investment Program:
-- The Daffodil Ball presented by Wheaton raised a record of
over CA$3 million for the Canadian Cancer Society.
-- The Pacific Salmon Foundation's Vancouver Gala presented by
Wheaton raised CA$530,000 in support of advancing critical marine
science research and conservation work.
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 is forecast
to be 320,000 to 350,000 ounces of gold, 20.0 to 22.0 million
ounces of silver, and 22,000 to 25,000 GEOs of other metals,
resulting in production of approximately 600,000 to 660,000 GEOs,
unchanged from previous guidance (2) (,) (3) . For the five-year
period ending in 2027, the Company estimates that average
production will amount to 810,000 GEOs, while for the ten-year
period ending in 2032, the Company estimates that average annual
production will amount to 850,000 GEOs, also unchanged from
previous guidance (2) (,) (3) .
In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
Financial Statements, reference to the Company and Wheaton includes
the Company's wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Friday, May 5, 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: 26164042
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 May 12,
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: 164042 #
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 Note
Condensed Interim Consolidated Statements of Earnings
Three Months Ended
March 31
(US dollars and shares in thousands,
except per share amounts - unaudited) 2023 2022
----------------------------------------------- ------------- ------------
Sales $ 214,465 $ 307,244
------------------------------------------------ -------- --------
Cost of sales
Cost of sales, excluding depletion $ 51,964 $ 69,994
Depletion 45,000 57,402
----------------------------------------------------- -------- --------
Total cost of sales $ 96,964 $ 127,396
------------------------------------------------ -------- --------
Gross margin $ 117,501 $ 179,848
General and administrative expenses 10,099 9,403
Share based compensation 7,397 9,902
Donations and community investments 1,378 813
----------------------------------------------------- -------- --------
Earnings from operations $ 98,627 $ 159,730
Other (income) expense (7,562) 170
----------------------------------------------------- -------- --------
Earnings before finance costs and income
taxes $ 106,189 $ 159,560
Finance costs 1,378 1,422
----------------------------------------------------- -------- --------
Earnings before income taxes $ 104,811 $ 158,138
Income tax recovery (expense) 6,580 (671)
----------------------------------------------------- -------- --------
Net earnings $ 111,391 $ 157,467
------------------------------------------------ -------- --------
Basic earnings per share $ 0.246 $ 0.349
Diluted earnings per share $ 0.246 $ 0.348
Weighted average number of shares outstanding
Basic 452,370 450,915
Diluted 453,159 451,953
===================================================== ======== ========
Condensed Interim Consolidated Balance Sheets
As at As at
March 31 December 31
(US dollars in thousands - unaudited) 2023 2022
------------------------------------------------- --------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 799,697 $ 696,089
Accounts receivable 9,236 10,187
Cobalt inventory 6,555 10,530
Taxes receivable 3,228 -
Other 3,379 3,287
------------------------------------------------------ ---------- --- ----------
Total current assets $ 822,095 $ 720,093
------------------------------------------------- --- ---------- --- ----------
Non-current assets
Mineral stream interests $ 5,696,889 $ 5,707,019
Early deposit mineral stream interests 46,842 46,092
Mineral royalty interest 6,606 6,606
Long-term equity investments 309,068 256,095
Refundable deposit - 777 PMPA 8,232 8,073
Property, plant and equipment 3,902 4,210
Other 11,845 11,718
------------------------------------------------------ ---------- --- ----------
Total non-current assets $ 6,083,384 $ 6,039,813
------------------------------------------------- --- ---------- --- ----------
Total assets $ 6,905,479 $ 6,759,906
------------------------------------------------- --- ---------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 9,136 $ 12,570
Dividends payable 67,910 -
Current taxes payable - 2,763
Current portion of performance share units 7,642 14,566
Current portion of lease liabilities 828 818
Total current liabilities $ 85,516 $ 30,717
------------------------------------------------- --- ---------- --- ----------
Non-current liabilities
Performance share units 2,790 6,673
Lease liabilities 941 1,152
Deferred income taxes 180 165
Pension liability 3,598 3,524
------------------------------------------------------ ---------- --- ----------
Total non-current liabilities $ 7,509 $ 11,514
------------------------------------------------- --- ---------- --- ----------
Total liabilities $ 93,025 $ 42,231
------------------------------------------------- --- ---------- --- ----------
Shareholders' equity
Issued capital $ 3,765,954 $ 3,752,662
Reserves 22,466 66,547
Retained earnings 3,024,034 2,898,466
------------------------------------------------------ ---------- --- ----------
Total shareholders' equity $ 6,812,454 $ 6,717,675
------------------------------------------------- --- ---------- --- ----------
Total liabilities and shareholders' equity $ 6,905,479 $ 6,759,906
------------------------------------------------- --- ---------- --- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended
March 31
(US dollars in thousands - unaudited) 2023 2022
--------------------------------------------------------------------------- --------- ---------
Operating activities
Net earnings $ 111,391 $ 157,467
Adjustments for
Depreciation and depletion 45,390 57,795
Interest expense 17 26
Equity settled stock based compensation 1,542 1,342
Performance share units - expense 5,855 8,560
Performance share units - paid (16,675) -
Pension expense 167 158
Pension paid (96) -
Income tax expense (recovery) (6,580) 671
Loss (gain) on fair value adjustment of share purchase warrants held (175) 743
Investment income recognized in net earnings (7,148) (194)
Other 79 (134)
Change in non-cash working capital (2,072) (15,918)
============================================================================ ======== ========
Cash generated from operations before income taxes and interest $ 131,695 $ 210,516
Income taxes paid (3,344) (32)
Interest paid (18) (26)
Interest received 6,771 82
============================================================================ ======== ========
Cash generated from operating activities $ 135,104 $ 210,540
============================================================================ ======== ========
Financing activities
Share purchase options exercised 9,376 5,772
Lease payments (202) (200)
---------------------------------------------------------------------------- -------- --------
Cash generated from financing activities $ 9,174 $ 5,572
============================================================================ ======== ========
Investing activities
Mineral stream interests $(31,524) $(45,252)
Early deposit mineral stream interests (750) (750)
Net proceeds on disposal of mineral stream interests (29) -
Acquisition of long-term investments (8,144) (20,135)
Dividends received - 112
Other (530) (36)
============================================================================ ======== ========
Cash used for investing activities $(40,977) $(66,061)
============================================================================ ======== ========
Effect of exchange rate changes on cash and cash equivalents $ 307 $ 67
============================================================================ ======== ========
Increase in cash and cash equivalents $ 103,608 $ 150,118
Cash and cash equivalents, beginning of period 696,089 226,045
============================================================================ ======== ========
Cash and cash equivalents, end of period $ 799,697 $ 376,163
---------------------------------------------------------------------------- -------- --------
Summary of Units Produced
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Gold ounces produced (2)
Salobo 43,677 37,939 44,212 34,129 44,883 48,235 55,205 55,590
Sudbury (3) 6,221 5,270 3,437 5,289 5,362 4,379 148 4,563
Constancia 6,905 10,496 7,196 8,042 6,311 9,857 8,533 5,525
San Dimas (4) 10,754 10,037 11,808 10,044 10,461 13,714 11,936 11,478
Stillwater (5) 1,960 2,185 1,833 2,171 2,497 2,664 2,949 2,962
Other
Minto 3,063 2,567 3,050 2,480 4,060 3,506 1,703 3,206
777 (6) - - - 3,509 4,003 4,462 4,717 5,035
Marmato 457 533 542 778 477 479 433 1,713
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total Other 3,520 3,100 3,592 6,767 8,540 8,447 6,853 9,954
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total gold ounces produced 73,037 69,027 72,078 66,442 78,054 87,296 85,624 90,072
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Silver ounces produced (2)
Peñasquito 2,077 1,761 2,017 2,089 2,219 2,145 2,180 2,026
Antamina 872 1,107 1,377 1,379 1,260 1,366 1,548 1,558
Constancia 552 655 564 584 506 578 521 468
Other
Los Filos (7) 28 14 21 35 42 37 17 26
Zinkgruvan 525 664 642 739 577 482 658 457
Yauliyacu (8) - 261 463 756 637 382 372 629
Stratoni (9) - - - - - 129 18 164
Minto 29 33 33 25 45 44 25 33
Neves-Corvo 352 369 323 345 344 522 362 408
Aljustrel 343 313 246 292 287 325 314 400
Cozamin 141 157 179 169 186 213 199 183
Marmato 8 9 7 8 11 7 10 39
Keno Hill (10) - - - 48 20 30 44 55
777 (6) - - - 80 91 96 81 83
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total Other 1,426 1,820 1,914 2,497 2,240 2,267 2,100 2,477
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total silver ounces produced 4,927 5,343 5,872 6,549 6,225 6,356 6,349 6,529
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Palladium ounces produced (2)
Stillwater (5) 3,705 3,869 3,229 3,899 4,488 4,733 5,105 5,301
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Cobalt pounds produced (2)
Voisey's Bay 124 128 226 136 234 381 370 380
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
GEOs produced (11) 141,831 143,400 153,684 156,570 165,555 178,219 176,705 183,779
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Average payable rate (2)
Gold 95.1% 94.9 % 95.1 % 95.1 % 95.2 % 96.0 % 96.0% 95.8%
Silver 83.2% 83.5% 85.6% 85.8% 86.2% 86.0% 86.6% 86.9%
Palladium 96.0% 91.7% 95.0% 94.6% 92.7% 92.2% 94.5% 95.0%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (11) 89.7% 89.2% 90.3% 90.3% 90.6% 91.4% 91.3% 91.8%
----------------------------- -------- -------- -------- -------- -------- -------- -------- --------
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represents 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. For reference, attributable silver production from
prior periods is as follows: Q1 2023 - 401,000 ounces; 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.
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
PMPA in exchange for $141 million of Hecla common stock.
11) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Summary of Units Sold
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Gold ounces sold
Salobo 35,966 41,029 31,818 48,515 42,513 47,171 35,185 57,296
Sudbury (2) 4,368 4,988 5,147 7,916 3,712 965 1,915 6,945
Constancia 6,579 6,013 6,336 7,431 10,494 6,196 8,159 2,321
San Dimas 10,651 10,943 10,196 10,633 10,070 15,182 11,346 11,214
Stillwater (3) 2,094 1,783 2,127 2,626 2,628 2,933 2,820 2,574
Other
Minto 2,341 2,982 2,559 2,806 3,695 2,462 1,907 2,359
777 126 785 3,098 3,629 4,388 4,290 5,879 5,694
Marmato 480 473 719 781 401 423 438 1,687
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total Other 2,947 4,240 6,376 7,216 8,484 7,175 8,224 9,740
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total gold ounces sold 62,605 68,996 62,000 84,337 77,901 79,622 67,649 90,090
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Silver ounces sold
Peñasquito 1,483 2,066 1,599 2,096 2,188 1,818 2,210 1,844
Antamina 814 1,114 1,155 1,177 1,468 1,297 1,502 1,499
Constancia 366 403 498 494 644 351 484 295
Other
Los Filos 34 16 24 41 42 17 12 42
Zinkgruvan 520 547 376 650 355 346 354 355
Yauliyacu - 337 1,005 817 44 551 182 601
Stratoni - - - (2) 133 42 41 167
Minto 29 23 22 21 31 27 24 29
Neves-Corvo 171 80 105 167 204 259 193 215
Aljustrel 205 156 185 123 145 133 155 208
Cozamin 119 150 154 148 177 174 170 168
Marmato 7 7 8 11 8 8 10 35
Keno Hill 1 1 30 30 27 24 51 33
777 - 35 73 75 87 69 99 109
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total Other 1,086 1,352 1,982 2,081 1,253 1,650 1,291 1,962
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Total silver ounces sold 3,749 4,935 5,234 5,848 5,553 5,116 5,487 5,600
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Palladium ounces sold
Stillwater (3) 2,946 3,396 4,227 3,378 4,075 4,641 5,703 3,869
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Cobalt pounds sold
Voisey's Bay 323 187 115 225 511 228 131 395
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
GEOs sold (4) 117,383 138,218 135,179 165,766 159,082 152,826 145,704 170,500
Cumulative payable units PBND (5)
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
Gold ounces 69,482 62,602 65,978 59,331 81,365 84,989 80,819 66,238
Silver ounces 3,223 2,835 3,467 3,573 3,912 4,200 3,845 3,802
Palladium ounces 5,751 5,098 5,041 6,267 5,535 5,629 5,619 6,822
Cobalt pounds 285 257 402 280 550 596 637 777
GEO (4) 119,775 106,946 119,936 114,617 143,075 150,991 142,620 130,081
Inventory on hand
Cobalt pounds 398 633 556 582 410 657 488 134
--------------------------------- -------- -------- -------- -------- -------- -------- -------- --------
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: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended March 31, 2023
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 43,677 35,966 $ 1,904 $ 420 $ 330 $ 68,475 $ 41,471 $ 53,355 $2,371,378
Sudbury (4) 6,221 4,368 1,904 400 1,025 8,317 2,095 6,346 278,941
Constancia 6,905 6,579 1,904 416 316 12,526 7,710 9,788 93,506
San Dimas 10,754 10,651 1,904 624 260 20,279 10,865 13,629 153,101
Stillwater 1,960 2,094 1,904 334 510 3,987 2,220 3,288 214,783
Other (5) 3,520 2,947 1,904 1,385 86 5,612 1,278 1,155 525,338
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
73,037 62,605 $ 1,904 $ 496 $ 360 $119,196 $ 65,639 $ 87,561 $3,637,047
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,077 1,483 $ 22.84 $ 4.43 $ 4.06 $ 33,872 $ 21,276 $ 27,303 $ 287,647
Antamina 872 814 22.84 4.55 7.06 18,594 9,142 14,888 539,623
Constancia 552 366 22.84 6.14 6.24 8,353 3,825 6,107 190,664
Other (6) 1,426 1,086 22.87 5.96 2.53 24,859 15,637 20,047 450,412
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
4,927 3,749 $ 22.85 $ 5.07 $ 4.48 $ 85,678 $ 49,880 $ 68,345 $1,468,346
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 3,705 2,946 $ 1,607 $ 294 $ 408 $ 4,735 $ 2,666 $ 3,870 $ 225,609
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,440
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 124 323 $ 15.04 $ 3.30 $ 13.85 $ 4,856 $ (684) $ 4,485 $ 356,447
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $214,465 $ 117,501 $ 164,261 $5,696,889
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(10,099) $ (14,052)
Share based compensation (7,397) (16,675)
Donations and community
investments (1,378) (1,408)
Finance costs (1,378) (1,067)
Other 7,562 7,389
Income tax 6,580 (3,344)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $ (6,110) $ (29,157) $1,208,590
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 111,391 $ 135,104 $6,905,479
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
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 represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
5) Comprised of the operating Minto and Marmato gold interests
as well as the non-operating 777, Copper World Complex, 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.
6) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests
and the non-operating 777, Loma de La Plata, Stratoni, Pascua-Lama,
Copper World Complex, Blackwater and Curipamba silver interests. On
June 22, 2022, Hudbay announced that mining activities at 777 have
concluded and closure activities have commenced.
7) Cash cost per pound of cobalt sold during the first quarter
of 2023 was net of a previously recorded inventory write-down of $1
million, resulting in a decrease of $3.18 per pound of cobalt sold.
The Company reflects the cobalt inventory at the lower of cost and
net realizable value, and will continue to monitor the market price
of cobalt relative to the carrying of the inventory at each
reporting period.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March 31, 2023 were as
follows:
Three Months Ended March 31, 2023
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 141,831 117,383 $ 1,827 $ 443 $ 1,384 $ 383 $ 1,001
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
1) Quantity produced represents 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: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Three Months Ended March 31, 2022
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 44,883 42,513 $ 1,872 $ 416 $ 334 $ 79,564 $ 47,684 $ 61,869 $2,423,755
Sudbury (4) 5,362 3,712 1,861 400 1,092 6,909 1,370 5,425 303,115
Constancia 6,311 10,494 1,872 412 271 19,641 12,471 15,482 100,944
San Dimas 10,461 10,070 1,872 618 260 18,846 10,008 12,621 164,110
Stillwater 2,497 2,628 1,872 329 429 4,918 2,926 4,054 218,657
Other (5) 8,540 8,484 1,862 771 25 15,797 9,048 8,822 404,729
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
78,054 77,901 $ 1,870 $ 477 $ 321 $145,675 $ 83,507 $ 108,273 $3,615,310
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,219 2,188 $ 24.10 $ 4.36 $ 3.57 $ 52,727 $ 35,387 $ 43,188 $ 314,217
Antamina 1,260 1,468 24.09 4.94 7.06 35,359 17,747 27,759 569,691
Constancia 506 644 24.10 6.08 6.33 15,513 7,526 11,913 201,811
Other (6) 2,240 1,253 24.52 6.07 3.45 30,733 18,797 23,874 589,875
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,225 5,553 $ 24.19 $ 5.10 $ 4.78 $134,332 $ 79,457 $ 106,734 $1,675,594
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 4,488 4,075 $ 2,339 $ 394 $ 399 $ 9,533 $ 6,303 $ 7,930 $ 231,203
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,820
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 234 511 $ 34.61 $ 5.76 $ 8.17 $ 17,704 $ 10,581 $ 3,263 $ 367,957
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $307,244 $ 179,848 $ 226,200 $5,894,884
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (9,403) $ (15,128)
Share based compensation (9,902) -
Donations and community
investments (813) (430)
Finance costs (1,422) (1,077)
Other (170) 1,007
Income tax (671) (32)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(22,381) $ (15,660) $ 575,149
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 157,467 $ 210,540 $6,470,033
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
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 represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Copper World Complex gold
interest. On June 22, 2022, Hudbay announced that mining activities
at 777 have concluded and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver
interests, the non-operating Stratoni, Loma de La Plata, Copper
World Complex and Pascua-Lama silver interests and the previously
owned Keno Hill and Yauliyacu silver interests. 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 PMPA 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 $132 million.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March 31, 2022 were as
follows:
Three Months Ended March 31, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 165,555 159,082 $ 1,931 $ 440 $ 1,491 $ 361 $ 1,130
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
1) Quantity produced represents 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: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
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
March 31
(in thousands, except for per share amounts) 2023 2022
--------------------------------------------------------------------------------------- ------------ --------
Net earnings $ 111,391 $157,467
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held (175) 743
Income tax (expense) recovery recognized in the Statement of Shareholders' Equity - 793
Income tax (expense) recovery recognized in the Statement of OCI (3,954) (194)
Income tax expense (recovery) resulting from disposal of Mineral Stream Interest, net
of above (2,672) -
Other (159) (802)
---------------------------------------------------------------------------------------- -------- -------
Adjusted net earnings $ 104,431 $158,007
---------------------------------------------------------------------------------------- -------- -------
Divided by:
Basic weighted average number of shares outstanding 452,370 450,915
Diluted weighted average number of shares outstanding 453,159 451,953
---------------------------------------------------------------------------------------- -------- -------
Equals:
Adjusted earnings per share - basic $ 0.231 $ 0.350
Adjusted earnings per share - diluted $ 0.230 $ 0.350
---------------------------------------------------------------------------------------- -------- -------
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
March 31
(in thousands, except for per share amounts) 2023 2022
--------------------------------------------------------- ------------- ------------
Cash generated by operating activities $ 135,104 $ 210,540
---------------------------------------------------------- -------- --------
Divided by:
Basic weighted average number of shares outstanding 452,370 450,915
Diluted weighted average number of shares outstanding 453,159 451,953
--------------------------------------------------------------- -------- --------
Equals:
Operating cash flow per share - basic $ 0.299 $ 0.467
Operating cash flow per share - diluted $ 0.298 $ 0.466
---------------------------------------------------------- -------- --------
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
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2023 2022
------------------------------------------------------------------------------- --------- ---------
Cost of sales $ 96,964 $ 127,396
Less: depletion (45,000) (57,402)
-------------------------------------------------------------------------------- -------- --------
Cash cost of sales $ 51,964 $ 69,994
-------------------------------------------------------------------------------- -------- --------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 31,035 $ 37,133
Total cash cost of silver sold 18,997 28,314
Total cash cost of palladium sold 866 1,603
Total cash cost of cobalt sold 1,066 2,944
-------------------------------------------------------------------------------- -------- --------
Total cash cost of sales $ 51,964 $ 69,994
-------------------------------------------------------------------------------- -------- --------
Divided by:
Total gold ounces sold 62,605 77,901
Total silver ounces sold 3,749 5,553
Total palladium ounces sold 2,946 4,075
Total cobalt pounds sold 323 511
-------------------------------------------------------------------------------- -------- --------
Equals:
Average cash cost of gold (per ounce) $ 496 $ 477
Average cash cost of silver (per ounce) $ 5.07 $ 5.10
Average cash cost of palladium (per ounce) $ 294 $ 394
Average cash cost of cobalt (per pound) $ 3.30 $ 5.76
-------------------------------------------------------------------------------- -------- --------
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
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2023 2022
=============================================================================== ============ ========
Total sales:
Gold $ 119,196 $145,675
Silver $ 85,678 $134,332
Palladium $ 4,735 $ 9,533
Cobalt $ 4,856 $ 17,704
Divided by:
Total gold ounces sold 62,605 77,901
Total silver ounces sold 3,749 5,553
Total palladium ounces sold 2,946 4,075
Total cobalt pounds sold 323 511
-------------------------------------------------------------------------------- -------- -------
Equals:
Average realized price of gold (per ounce) $ 1,904 $ 1,870
Average realized price of silver (per ounce) $ 22.85 $ 24.19
Average realized price of palladium (per ounce) $ 1,607 $ 2,339
Average realized price of cobalt (per pound) $ 15.04 $ 34.61
Less:
Average cash cost of gold (1) (per ounce) $ (496) $ (477)
Average cash cost of silver (1) (per ounce) $ (5.07) $ (5.10)
Average cash cost of palladium (1) (per ounce) $ (294) $ (394)
Average cash cost of cobalt (1) (per pound) $ (3.30) $ (5.76)
-------------------------------------------------------------------------------- -------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,408 $ 1,393
As a percentage of realized price of gold 74% 74%
Cash operating margin per silver ounce sold $ 17.78 $ 19.09
As a percentage of realized price of silver 78% 79%
Cash operating margin per palladium ounce sold $ 1,313 $ 1,945
As a percentage of realized price of palladium 82% 83%
Cash operating margin per cobalt pound sold $ 11.74 $ 28.85
As a percentage of realized price of cobalt 78% 83%
-------------------------------------------------------------------------------- -------- -------
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, 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 and Wheaton's Form 40-F for the year ended
December 31, 2022 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 was filed on 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
Company reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral
resources in accordance with Canadian reporting requirements which
are governed by, and utilize definitions required by, 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"). These definitions differ from the
definitions adopted by the United States Securities and Exchange
Commission ("SEC") under the United States Securities Act of 1933,
as amended (the "Securities Act") which are applicable to U.S.
companies. 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 by the SEC. 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 May 4,
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 production and guidance, which
are provided to assist the reader, 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. Five-
and ten-year guidance does not include any production from
Pascua-Lama, Navidad, Cotabambas, Metates or additional expansions
at Salobo outside of the Salobo III expansion. In addition,
five-year guidance also does not include any production from
Kutcho, or the Victor project at Sudbury. Ounces produced represent
the quantity of silver, gold, palladium and cobalt contained in
concentrate or doré prior to smelting or refining deductions.
[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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRFGUGDUGSGDGXU
(END) Dow Jones Newswires
May 05, 2023 02:00 ET (06:00 GMT)
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