TIDMWPM
RNS Number : 4758E
Wheaton Precious Metals Corp.
11 March 2022
March 11, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
fourth quarter and full year financial results
WHEATON PRECIOUS METALS Announces record revenue, Earnings and
Operating cash flow for 2021
"Wheaton generated record annual revenue and operating cash flow
in 2021 as our diversified portfolio of high-quality, long-life
assets delivered strong results. We are proud of the value we were
able to return to our shareholders resulting from our
record-setting performance, with total dividends paid in 2021
increasing by over 35% from 2020," said Randy Smallwood, President
and Chief Executive Officer of Wheaton Precious Metals. "In 2021,
Wheaton also remained focused on accretive growth, and over the
past three months alone, we added five new streams to our already
robust portfolio. This additional growth is readily apparent in our
ten-year production forecast, where we see annual production
climbing to well over 900,000 gold equivalent ounces."
"In addition to our financial and corporate development
successes in 2021, Wheaton also made significant strides in
bolstering our sustainability efforts while continuing to support
community programs around our offices and mining partners' sites.
We substantially strengthened our policies and disclosure around
our environmental, social and governance strategy, including
aligning our approach with the most recent climate science with the
goal of reaching net zero carbon emissions by 2050. As we enter
2022, we look forward to building off our accomplishments from 2021
and continuing to create lasting value for all of our
stakeholders."
Fourth Quarter and Year End 2021 Highlights:
-- Nearly $200 million in operating cash flow during the fourth
quarter and a record $845 million during 2021.
-- $278 million in revenue during the fourth quarter and a record $1.2 billion during 2021.
-- $132 million in adjusted net earnings(1) during the fourth
quarter and a record $592 million during 2021.
-- Attributable production in 2021 was 752,958 gold equivalent
ounces(2) ("GEOs"), in line with Company guidance.
-- Announced a new precious metal purchase agreement ("PMPA") on
Artemis Gold Inc.'s Blackwater Gold Project ("Blackwater") in
respect of silver production and acquired the existing PMPA held by
New Gold Inc. in respect of gold production from Blackwater.
-- Announced new PMPA on Generation Mining Limited's Marathon
Project in respect of gold and platinum production.
-- Subsequent to the quarter, announced new PMPAs on Adventus
Mining Corporation's Curipamba Project in respect of gold and
silver production and Sabina Gold & Silver Corp.'s Goose
Project in respect of gold production.
-- On a GEO (3) basis, total attributable Proven and Probable
Mineral Reserves for all metals increased by 13%, driven by a 20%
increase in total attributable gold Proven and Probable Mineral
Reserves, primarily due to recently added PMPAs and increases at
Salobo.
-- Declared quarterly dividend (1) of $0.15 per common share.
Operational Overview
(all figures in US
dollars unless otherwise
noted) Q4 2021 Q4 2020 Change 2021 2020 Change
------------------------ ------- ------------ ------- --------- ------------- -------
Units produced
Gold ounces 88,321 92,039 (4.0)% 342,546 366,321 (6.5)%
Silver ounces 6,356 6,509 (2.4)% 25,999 22,892 13.6 %
Palladium ounces 4,733 5,672 (16.6)% 20,908 22,187 (5.8)%
Cobalt pounds 381 - n.a. 2,293 0 n.a.
Gold equivalent ounces
(2) 186,404 189,682 (1.7)% 752,958 712,624 5.7 %
Units sold
Gold ounces 79,622 86,243 (7.7)% 312,465 369,553 (15.4)%
Silver ounces 5,116 4,576 11.8 % 22,860 19,232 18.9 %
Palladium ounces 4,641 4,591 1.1 % 19,344 20,051 (3.5)%
Cobalt pounds 228 - n.a. 886 - n.a.
Gold equivalent ounces
(2) 158,864 155,665 2.1 % 663,415 662,275 0.2 %
------------------------- ------- ------------ ------- --------- ------------- -------
Revenue $278,197 $ 286,212 (2.8)% $1,201,665 $ 1,096,224 9.6 %
Net earnings $291,822 $ 157,221 85.6 % $ 754,885 $ 507,804 48.7 %
Per share $ 0.648 $ 0.350 85.1 % $ 1.677 $ 1.132 48.1 %
Adjusted net earnings (1) $132,232 $ 149,441 (11.5)% $ 592,079 $ 503,335 17.6 %
Per share (1) $ 0.293 $ 0.333 (12.0)% $ 1.315 $ 1.122 17.3 %
Operating cash flows $195,290 $ 207,962 (6.1)% $ 845,145 $ 765,442 10.4 %
Per share (1) $ 0.433 $ 0.463 (6.5)% $ 1.878 $ 1.706 10.1 %
------------------------- ------- ------------ ------- --------- ------------- -------
All amounts in thousands except gold, palladium & gold
equivalent ounces and cobalt pounds produced & sold, and per
share amounts. [1] [2]
Production Guidance
-- 2022 Guidance: Wheaton's estimated attributable production in
2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to
25.0 million ounces of silver, and 44,000 to 48,000 GEOs [3] of
other metals, resulting in production of approximately 700,000 to
760,000 GEOs (3) .
-- Five-year guidance: For the five-year period ending in 2026,
the Company estimates that average production will amount to
850,000 GEOs (3) .
-- Ten-year guidance: For the ten-year period ending in 2031,
the Company estimates that average annual production will amount to
910,000 GEOs (3) .
Financial Review
Revenues
Revenue was $278 million in the fourth quarter of 2021
representing a 3% decrease from the fourth quarter of 2020 due
primarily to a 5% decrease in the average realized gold
equivalent(2) price; partially offset by a 2% increase in the
number of GEOs(2) sold.
Revenue was $1,202 million in the year ended December 31, 2021
representing a 10% increase from 2020 due primarily to a 9%
increase in the average realized gold equivalent(2) price.
Cash Costs and Margin
Average cash costs(1) in the fourth quarter of 2021 were $429
per GEO(2) as compared to $415 in fourth quarter of 2020. This
resulted in a cash operating margin(1) of $1,322 per GEO(2) sold, a
decrease of 7% as compared with the fourth quarter of 2020.
Average cash costs(1) in 2021 were $434 per GEO(2) as compared
to $403 in 2020. This resulted in a cash operating margin(1) of
$1,377 per GEO(2) sold, an increase of 10% as compared with
2020.
Impairment Reversals of Mineral Stream Interests
Net earnings were positively impacted as the result of an
impairment reversal on the Voisey's Bay PMPA amounting to $157
million at December 31, 2021.
Indicators of impairment reversal were identified relative to
the Voisey's Bay PMPA, as a result of significant and sustained
increases in the market prices of cobalt. Management estimated that
the recoverable amount under the Voisey's Bay PMPA exceeded the
carrying amount that would have been determined, net of depletion,
had no impairment charge been recognized for the PMPA in prior
years, resulting in an impairment reversal of $157 million at
December 31, 2021.
Balance Sheet (at December 31, 2021 )
-- Approximately $226 million of cash on hand.
-- The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully undrawn.
Fourth Quarter Asset Highlights
Salobo: In the fourth quarter of 2021, Salobo produced 48,200
ounces of attributable gold, a decrease of approximately 23%
relative to the fourth quarter of 2020 primarily due to lower
throughput, grades and recovery, with throughput being impacted as
a result of an 18-day suspension of operations following a conveyor
belt fire in October 2021. According to Vale S.A. ("Vale"), other
activities, including mine and maintenance operations, continued as
usual during this period but concentrate production was
interrupted. Concentrate production resumed on October 22, 2021 and
ramped up over a three-day period. Vale reported that despite the
challenges, mine movement continued to improve at Salobo operation
and reached pre-safety review levels by the end of the year.
As per Vale's Fourth Quarter 2021 Performance Report, on January
6, 2022, heavy rainfall in the region of the Salobo III mine
expansion caused a landslide that damaged part of a conveyor belt
and blocked access to the project site. Safety conditions at the
area were reestablished and Vale is working on additional
preventive measures and replacement of damaged equipment. A full
assessment of impact by Vale is ongoing with conclusion expected
early in the second quarter of 2022. Vale further reports that
physical completion of the Salobo III mine expansion was 85% at the
end of the fourth quarter.
Peñasquito: In the fourth quarter of 2021, Peñasquito produced
2.1 million ounces of attributable silver, an increase of
approximately 7% relative to the fourth quarter of 2020, primarily
due to higher grades and recoveries, partially offset by lower
throughput.
Antamina: In the fourth quarter of 2021, Antamina produced 1.4
million ounces of attributable silver, a decrease of approximately
29% relative to the fourth quarter of 2020, primarily due to lower
throughput and grades . As per Compañía Minera Antamina S.A.'s (the
operating company of Antamina) news release dated October 31, 2021,
operations at Antamina were briefly suspended to ensure the health
and safety of its workforce and other stakeholders following
localized protests in Peru.
Constancia: In the fourth quarter of 2021, Constancia produced
0.6 million ounces of attributable silver and 9,900 ounces of
attributable gold, an increase of approximately 21% and 151%,
respectively, relative to the fourth quarter of 2020. Silver
production increased primarily due to higher grades. The increase
in gold production was primarily due to higher grades resulting
from the commencement of ore production from the Pampacancha
satellite deposit and the increase in fixed recoveries from 55% to
70%, partially offset by the receipt of 2,005 ounces in the fourth
quarter of 2020 related to delays in accessing the Pampacancha
deposit while no delay payment was received in 2021. Additionally,
as Hudbay mined and processed four million tonnes of ore from the
Pampacancha deposit by December 31, 2021, the Company was required
to make an additional deposit payment of $4 million to Hudbay for
the increase in the fixed gold recoveries, which was paid on
December 23, 2021.
Sudbury: In the fourth quarter of 2021, Vale's Sudbury mines
produced 5,400 ounces of attributable gold, a decrease of
approximately 19% relative to the fourth quarter of 2020, primarily
due to lower throughput as a result of the temporary closure of the
Totten mine. As per Vale, on September 26, 2021, a large piece of
equipment, called a bucket scoop, blocked and damaged the mine
shaft resulting in its temporary closure. Vale has reported that
production at the Totten mine, which accounts for approximately 15%
to 20% of the Company's gold production from Sudbury, resumed in
the first quarter of 2022 and that operations at the Sudbury mines
are expected to normalize in the second quarter of 2022.
Stillwater: In the fourth quarter of 2021, the Stillwater mines
produced 2,700 ounces of attributable gold and 4,700 ounces of
attributable palladium, a decrease of approximately 19% for gold
and 17% for palladium relative to the fourth quarter of 2020 due to
lower throughput.
San Dimas: In the fourth quarter of 2021, San Dimas produced
13,700 ounces of attributable gold, an increase of approximately
18% relative to the fourth quarter of 2020 , primarily due to the
mining of higher-grade material.
Other Gold: In the fourth quarter of 2021, total Other Gold
attributable production was 8,400 ounces, an increase of
approximately 131% relative to the fourth quarter of 2020,
primarily due to the mining of higher-grade material at Minto.
Other Silver: In the fourth quarter of 2021, total Other Silver
attributable production was 2.3 million ounces, an increase of
approximately 9% relative to the fourth quarter of 2020, primarily
due to higher production at Neves-Corvo and the newly acquired
Cozamin stream, partially offset by lower production at Yauliyacu
and Aljustrel.
Voisey's Bay: In the fourth quarter of 2021, the Voisey's Bay
mine produced 381 thousand pounds of attributable cobalt. As per
Vale's Fourth Quarter 2021 Performance Report, physical completion
of the Voisey's Bay underground mine extension, which includes
developing two underground mines - Reid Brook and Eastern Deeps -
was 67% at the end of the fourth quarter. As per Vale, production
commenced from Reid Brook in the second quarter of 2021, and the
start-up of Eastern Deeps is expected by the second half of
2022.
Produced But Not Yet Delivered [4] and Inventory
As at December 31, 2021 , payable ounces and pounds attributable
to the Company produced but not yet delivered amounted to:
-- 85,900 payable gold ounces, an increase of 5,100 ounces
during Q4 2021 , primarily due to an increase during the period at
the Sudbury and Constancia mines.
-- 4.2 million payable silver ounces, an increase of 0.4 million ounces during Q4 2021.
-- 5,600 payable palladium ounces, virtually unchanged during Q4 2021.
-- 596 thousand payable cobalt pounds, virtually unchanged during Q4 2021.
As of December 31, 2021, 657 thousand pounds of cobalt were held
in inventory by Wheaton, an increase of 169 thousand pounds during
Q4 2021.
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Corporate Development
Fenix Gold PMPA: On November 15, 2021, the Company entered into
the previously disclosed PMPA with Rio2 Limited ("Rio2") in
connection with the Fenix Gold Project located in Chile.
Blackwater PMPA : On December 13, 2021, the Company entered into
a PMPA with Artemis Gold Inc. ("Artemis") in respect of silver
production from the Blackwater Gold Project located in British
Columbia, Canada. Under the PMPA, Wheaton will be entitled to
receive 50% of the payable silver production until 17.8 million
ounces ("Moz") have been delivered, thereafter dropping to 33% of
payable silver production for the life of the mine. The Company is
committed to pay total upfront consideration of $141 million for
this stream, payable in four equal installments during the
construction of Blackwater, subject to customary conditions being
satisfied. In addition, Wheaton will make ongoing cash payments
equal to 18% of the spot silver price per ounce of silver delivered
under the agreement until the value of silver delivered, net of the
per ounce production payment for silver, is equal to the upfront
consideration of $141 million, and 22% of the spot price of silver
thereafter.
Additionally, on December 13, 2021, the Company announced that
it had entered into a definitive agreement to acquire the existing
gold stream held by New Gold Inc. ("New Gold") in respect of gold
production from Blackwater. Under this agreement, Wheaton will be
entitled to receive 8% of the payable gold production until 279,908
ounces have been delivered, thereafter dropping to 4% of payable
gold production for the life of the mine. The Company paid $300
million for the stream. In addition, Wheaton will make ongoing
production payments equal to 35% of the spot gold price per ounce
of gold delivered under the agreement.
Subsequent to the Quarter - Corporate Development
Curipamba PMPA : On January 17, 2022, the Company entered into a
PMPA with Adventus Mining Corporation ("Adventus") in respect of
the Curipamba Project ("Curipamba") located in Ecuador. Under the
Curipamba PMPA, Wheaton will purchase 50% of the payable gold
production until 150,000 ounces have been delivered, thereafter
dropping to 33% of payable gold production for the life of the mine
and 75% of the payable silver production until 4.6 million ounces
have been delivered, thereafter dropping to 50% for the life of
mine. Under the terms of the agreement, the Company is committed to
pay Adventus total upfront cash consideration of $175.5 million,
$13 million of which is available pre-construction and $500,000 of
which will be paid to support certain local community development
initiatives around Curipamba. The remainder will be payable in four
staged installments during construction, subject to various
customary conditions being satisfied. In addition, Wheaton will
make ongoing production payments for the gold and silver ounces
delivered equal to 18% of the spot prices until the value of gold
and silver delivered, net of the production payment, is equal to
the upfront consideration of $175.5 million, at which point the
production payment will increase to 22% of the spot prices.
Marathon PMPA : On January 26, 2022, the Company entered into a
PMPA with Generation Mining Limited ("Gen Mining") in respect of
the Marathon Project located in Ontario, Canada. Under the Marathon
PMPA, Wheaton will purchase 100% of the payable gold production
until 150,000 ounces have been delivered, thereafter dropping to
67% of payable gold production for the life of the mine and 22% of
the payable platinum production until 120,000 ounces have been
delivered, thereafter dropping to 15% for the life of mine. Under
the terms of the agreement, the Company has committed to pay Gen
Mining total upfront cash consideration of C$240 million, C$40
million of which will be paid prior to construction and to be used
for the development of the Marathon Project, with the remainder
payable in four staged installments during construction, subject to
various customary conditions being satisfied and pre-determined
completion tests. In addition, Wheaton will make ongoing production
payments for the gold and platinum ounces delivered equal to 18% of
the spot prices until the value of gold and platinum delivered, net
of the production payment, is equal to the upfront consideration of
C$240 million, at which point the production payment will increase
to 22% of the spot prices.
Goose PMPA : On February 8, 2022, the Company announced that it
had entered into a PMPA with Sabina Gold & Silver Corp.
("Sabina") in respect of the Goose Project, part of Sabina's Back
River Gold District located in Nunavut, Canada (the "Goose
Project"). Under the Goose PMPA, Wheaton will purchase 4.15% of the
payable gold production until 130,000 ounces have been delivered,
thereafter dropping to 2.15% until 200,000 ounces have been
delivered, thereafter dropping to 1.5% of the payable gold
production. Under the terms of the agreement, the Company has
committed to pay Sabina an upfront payment of $125 million in four
equal installments during construction of the Goose Project,
subject to customary conditions. In addition, Wheaton will make
ongoing production payments for the gold ounces delivered equal to
18% of the spot gold price until the value of gold, net of the
production payment is equal to the upfront consideration of $125
million, at which point the production payment will increase to 22%
of the spot gold price.
Reserves and Resources (at December 31, 2021)
-- Proven and Probable Mineral Reserves attributable to Wheaton
were 14.01 million ounces of gold compared with 11.71 million
ounces as reported in Wheaton's 2020 Annual Information Form
("AIF"), an increase of 20% (primarily due to recently added PMPAs
and increases at Salobo); 567.9 million ounces of silver compared
with 550.3 million ounces, an increase of 3%; 0.63 million ounces
palladium compared with 0.64 million ounces, a decrease of 2%; 31.4
million pounds of cobalt compared to 31.7 million pounds, a
decrease of 1%; and first time reporting of platinum of 0.17
million ounces. On a GEO (3) basis, total Proven and Probable
Mineral Reserves for all metals attributable to Wheaton were 22.98
million ounces, an increase of 13%.
-- Measured and Indicated Mineral Resources attributable to
Wheaton were 5.34 million ounces of gold compared with 4.50 million
ounces as reported in Wheaton's 2020 AIF, an increase of 18%; 766.6
million ounces of silver compared with 743.0 million ounces, an
increase of 3%; 0.12 million ounces of palladium compared to 0.03
million ounces, an increase of 318%; 1.5 million pounds of cobalt
remained the same as 2020; and first time reporting of platinum of
0.097 million ounces. On a GEO (3) basis, total Measured and
Indicated Mineral Resources for all metals attributable to Wheaton
were 15.78 million ounces, an increase of 9%.
-- Inferred Mineral Resources attributable to Wheaton were 4.96
million ounces of gold compared with 4.46 million ounces as
reported in Wheaton's 2020 AIF, an increase of 11%; 464.0 million
ounces of silver compared with 469.5 million ounces, a decrease of
1%, 0.35 million ounces of palladium compared with 0.37 million
ounces, a decrease of 7%; 6.8 million pounds of cobalt compared to
7.6, a decrease of 10%; and first time report of platinum of 0.017
million ounces. On a GEO (3) basis, total Inferred Mineral
Resources for all metals attributable to Wheaton were 11.69 million
ounces, an increase of 3%.
Estimated attributable reserves and resources contained in this
press release are based on information available to the Company as
of March 9, 2022, and therefore will not reflect updates, if any,
after that date. Updated reserves and resources data incorporating
year-end 2021 estimates will also be included in the Company's 2021
Annual Information Form. Wheaton's most current attributable
reserves and resources, as of December 31, 2021, can be found on
the Company's website at www.wheatonpm.com.
Sustainability
Climate Change Commitments: Subsequent to the quarter, Wheaton
announced the adoption of a climate change policy and commitment to
net zero carbon emissions by 2050. As part of this policy, Wheaton
plans to establish targets across both Scope 2 and Scope 3
attributable emissions to support a 1.5deg C trajectory. The
Company has also established a fund to support our mining partners'
efforts to move to renewable energy sources and reduce emissions at
the mines in which we have an interest.
Partner Community Investment Program: Wheaton continues to
support a wide range of programs with mining partners including
Vale, Glencore, Hudbay and First Majestic Silver, focused on
education, health, entrepreneurial support, and community
engagement opportunities in the communities near the mines from
which Wheaton receives precious metals. In the fourth quarter of
2021, the second phase of the Agricultural and Livestock
Development Program run by Hudbay in Peru was completed. The
program, aimed at improving all aspects of the production chain
related to the raising of livestock in rural communities, provided
nutritional support to nearly 37,000 animals during the fourth
quarter alone.
COVID-19 Community Support and Response Fund: In the second
quarter of 2020, Wheaton announced the launch of a $5 million
Community Support and Response Fund (the "CSR Fund") to support
global efforts to combat the social and economic impact of the
COVID-19 pandemic. The CSR Fund is designed to meet the immediate
needs of the communities in which Wheaton and its mining partners
operate. This fund is incremental to Wheaton's already active
Community Investment Program that currently provides support to
over 50 programs in multiple communities around the world. As of
December 31, 2021, the Company has made donations totaling
approximately $4.6 million through the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, March 11,
2022 starting at 8:00am PT / 11:00 am ET to discuss these results.
To participate in the live call please use one of the following
methods:
Dial toll free from Canada or the US: 1-888-664-6383
Dial from outside Canada or the US: 1-416-764-8650
Pass code: 99785763
Live audio webcast: Webcast URL
Participants should dial in five to ten minutes before the
call.
The accompanying slideshow will also be available in PDF format
on the 'Presentations' page of the Wheaton Precious Metals website
before the conference call.
The conference call will be recorded and available until March
18, 2022 at 11:59 pm ET. The webcast will be available for one
year. You can listen to an archive of the call by one of the
following methods:
Dial toll free from Canada or the US: 1-888-390-0541
Dial from outside Canada or the US: 1-416-764-8677
Pass code: 785763 #
Archived audio webcast: Webcast URL
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and have
been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil
Burns, P.Geo., Vice President, Technical Services for Wheaton
Precious Metals and Ryan Ulansky, P.Eng., Vice President,
Engineering, are a "qualified person" as such term is defined under
National Instrument 43-101, and have reviewed and approved the
technical information disclosed in this news release (specifically
Mr. Carson has reviewed production figures, Mr. Burns has reviewed
mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and those
required to be followed by United States domestic issuers under the
NYSE listing standards. This confirmation is located on the Wheaton
Precious Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
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.
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts) 2021 2020
---------------------------------------------------------------- --------------- --------------
Sales $ 1,201,665 $ 1,096,224
----------------------------------------------------------------- ---------- ----------
Cost of sales
Cost of sales, excluding depletion $ 287,947 $ 266,763
Depletion 254,793 243,889
---------------------------------------------------------------------- ---------- ----------
Total cost of sales $ 542,740 $ 510,652
----------------------------------------------------------------- ---------- ----------
Gross margin $ 658,925 $ 585,572
General and administrative expenses 60,985 65,698
Reversal of impairment of mineral stream interests (156,717) -
---------------------------------------------------------------- --- ---------- ----------
Earnings from operations $ 754,657 $ 519,874
Other (income) expense (5,776) (2,170)
---------------------------------------------------------------------- ---------- ----------
Earnings before finance costs and income taxes $ 760,433 $ 522,044
Finance costs 5,817 16,715
---------------------------------------------------------------------- ---------- ----------
Earnings before income taxes $ 754,616 $ 505,329
Income tax recovery 269 2,475
---------------------------------------------------------------------- ---------- ----------
Net earnings $ 754,885 $ 507,804
----------------------------------------------------------------- ---------- ----------
Basic earnings per share $ 1.677 $ 1.132
Diluted earnings per share $ 1.673 $ 1.128
Weighted average number of shares outstanding
Basic 450,138 448,694
Diluted 451,170 450,070
====================================================================== ========== ==========
Consolidated Balance Sheets
As at As at
December December
31 31
(US dollars in thousands) 2021 2020
----------------------------------------------- --------------- --------------
Assets
Current assets
Cash and cash equivalents $ 226,045 $ 192,683
Accounts receivable 11,577 5,883
Other 12,102 3,265
---------------------------------------------------- ---------- ----------
Total current assets $ 249,724 $ 201,831
----------------------------------------------- --- ---------- ----------
Non-current assets
Mineral stream interests $ 5,905,797 $ 5,488,391
Early deposit mineral stream interests 34,741 33,241
Mineral royalty interest 6,606 3,047
Long-term equity investments 61,477 199,878
Convertible notes receivable 17,086 11,353
Property, plant and equipment 5,509 6,289
Other 15,211 13,242
---------------------------------------------------- ---------- ----------
Total non-current assets $ 6,046,427 $ 5,755,441
----------------------------------------------- --- ---------- ----------
Total assets $ 6,296,151 $ 5,957,272
----------------------------------------------- --- ---------- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 13,935 $ 13,023
Current portion of performance share
units 14,807 17,297
Current portion of lease liabilities 813 773
Other 136 76
Total current liabilities $ 29,691 $ 31,169
----------------------------------------------- --- ---------- ----------
Non-current liabilities
Bank debt $ - $ 195,000
Lease liabilities 2,060 2,864
Deferred income taxes 100 214
Performance share units 11,498 11,784
Pension liability 2,685 1,670
---------------------------------------------------- ---------- ----------
Total non-current liabilities $ 16,343 $ 211,532
----------------------------------------------- --- ---------- ----------
Total liabilities $ 46,034 $ 242,701
----------------------------------------------- --- ---------- ----------
Shareholders' equity
Issued capital $ 3,698,998 $ 3,646,291
Reserves 47,036 126,882
Retained earnings 2,504,083 1,941,398
---------------------------------------------------- ---------- ----------
Total shareholders' equity $ 6,250,117 $ 5,714,571
----------------------------------------------- --- ---------- ----------
Total liabilities and shareholders' equity $ 6,296,151 $ 5,957,272
----------------------------------------------- --- ---------- ----------
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands) 2021 2020
--------------------------------------------------------------------------- --------------- --------------
Operating activities
Net earnings $ 754,885 $ 507,804
Adjustments for
Depreciation and depletion 256,685 245,779
Reversal of impairment of mineral stream interests (156,717) -
Interest expense 352 12,366
Equity settled stock based compensation 5,262 5,432
Performance share units (2,925) 9,398
Pension expense 1,014 806
Income tax expense (recovery) (269) (2,475)
Loss (gain) on fair value adjustment of share purchase warrants held 2,101 (337)
Fair value (gain) loss on convertible note receivable (5,733) (1,899)
Investment income recognized in net earnings (462) (230)
Other (510) 1,487
Change in non-cash working capital (8,072) 1,025
================================================================================= ========== ==========
Cash generated from operations before income taxes and interest $ 845,611 $ 779,156
Income taxes recovered (paid) (279) 49
Interest paid (429) (13,992)
Interest received 242 229
================================================================================= ========== ==========
Cash generated from operating activities $ 845,145 $ 765,442
============================================================================ ========== ==========
Financing activities
Bank debt repaid $ (195,000) $ (679,500)
Credit facility extension fees (1,727) (1,373)
Share purchase options exercised 7,953 21,892
Lease payments (780) (704)
Dividends paid (218,052) (167,212)
================================================================================= ========== ==========
Cash (used for) generated from financing activities $ (407,606) $ (826,897)
============================================================================ ========== ==========
Investing activities
Mineral stream interests $ (520,891) $ (322)
Early deposit mineral stream interests (1,500) (1,500)
Mineral royalty interest (3,571) -
Acquisition of long-term investments (7,453) (10,671)
Proceeds on disposal of long-term investments 129,753 162,942
Dividends received 221 -
Other (775) (801)
================================================================================= ========== ==========
Cash (used for) generated from investing activities $ (404,216) $ 149,648
============================================================================ ========== ==========
Effect of exchange rate changes on cash and cash equivalents $ 39 $ 504
============================================================================ ========== ==========
Increase in cash and cash equivalents $ 33,362 $ 88,697
Cash and cash equivalents, beginning of year 192,683 103,986
================================================================================= ========== ==========
Cash and cash equivalents, end of year $ 226,045 $ 192,683
---------------------------------------------------------------------------- ---------- ----------
Summary of Units Produced
Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Gold ounces
produced (2)
Salobo 48,235 55,205 55,590 46,622 62,854 63,408 59,104 62,575
Sudbury (3) 5,404 148 4,563 7,004 6,659 3,798 9,257 7,795
Constancia (7) 9,857 8,533 5,525 2,453 3,929 3,780 3,470 3,681
San Dimas (4, 7) 13,714 11,936 11,478 10,491 11,652 9,228 6,074 11,318
Stillwater (5) 2,664 2,949 2,962 3,041 3,290 3,176 3,222 2,955
Other
Minto 3,506 1,703 3,206 2,638 789 1,832 2,928 2,124
777 (8) 4,462 4,717 5,035 6,280 2,866 5,278 4,728 4,551
Marmato 479 433 1,713 - - - - -
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total Other 8,447 6,853 9,954 8,918 3,655 7,110 7,656 6,675
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total gold ounces
produced 88,321 85,624 90,072 78,529 92,039 90,500 88,783 94,999
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Silver ounces
produced (2)
Peñasquito
(7) 2,145 2,180 2,026 2,202 2,014 1,992 967 2,658
Antamina (7) 1,366 1,548 1,558 1,577 1,930 1,516 612 1,311
Constancia (7) 578 521 468 406 478 430 254 461
Other
Los Filos
(7) 37 17 26 31 6 17 14 29
Zinkgruvan 482 658 457 420 515 498 389 662
Yauliyacu
(7) 382 372 629 737 454 679 273 557
Stratoni 129 18 164 165 185 156 148 183
Minto 44 25 33 21 16 15 19 18
Neves-Corvo 522 362 408 345 420 281 479 377
Aljustrel 325 314 400 474 440 348 388 352
Cozamin 213 199 183 230 - - - -
Marmato 7 10 39 - - - - -
Keno Hill 30 44 55 27 - - - -
777 (8) 96 81 83 130 51 96 108 96
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total Other 2,267 2,100 2,477 2,580 2,087 2,090 1,818 2,274
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total silver
ounces produced 6,356 6,349 6,529 6,765 6,509 6,028 3,651 6,704
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 4,733 5,105 5,301 5,769 5,672 5,444 5,759 5,312
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Cobalt pounds
produced (2)
Voisey's Bay 381 370 380 1,162 - - - -
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
GEOs produced (6) 186,404 183,975 191,271 191,308 189,682 181,184 146,857 194,901
SEOs produced (6) 13,421 13,246 13,772 13,774 13,657 13,045 10,574 14,033
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Average payable
rate (2)
Gold 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% 94.7% 95.1%
Silver 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% 81.9% 85.6%
Palladium 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% 90.8% 91.0%
Cobalt 93.3% 93.3% 93.3% 93.3% n.a. n.a. n.a. n.a.
GEO (7) 91.3% 91.2% 91.7% 90.4% 91.1% 91.1% 89.8% 90.4%
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
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: Q4-2021 - 544,000
ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021
- 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000
ounces; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
7) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted. Additionally, operations at Los Filos were
suspended from September 3, 2020 to December 23, 2020 as the result
of an illegal road blockade by members of the nearby Carrizalillo
community and had been temporarily suspended from June 22, 2021 to
July 26, 2021 as the result of illegal blockades by a group of
unionized employees and members of the Xochipala community.
8) Operations at 777 were temporarily suspended from October 11,
2020 to November 25, 2020 as a result of an incident that occurred
on October 9th during routine maintenance of the hoist rope and
skip.
9) Effective January 1, 2021, the Company was entitled to cobalt
production from the Voisey's Bay mine. As per the Voisey's Bay PMPA
with Vale, Wheaton is entitled to any cobalt processed at the Long
Harbour Processing Plant as of January 1, 2021, resulting in
reported production in the first quarter of 2021 including some
material produced at the Voisey's Bay mine in the previous
quarter.
Summary of Units Sold
Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 Q1 2020
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Gold ounces sold
Salobo 47,171 35,185 57,296 51,423 53,197 59,584 68,487 74,944
Sudbury (2) 965 1,915 6,945 3,691 7,620 7,858 7,414 4,822
Constancia (6) 6,196 8,159 2,321 1,676 3,853 4,112 3,024 3,331
San Dimas (6) 15,182 11,346 11,214 10,273 11,529 9,687 6,030 11,358
Stillwater (3) 2,933 2,820 2,574 3,074 3,069 3,015 3,066 3,510
Other
Minto 2,462 1,907 2,359 2,390 1,540 - - -
777 4,290 5,879 5,694 2,577 5,435 5,845 4,783 2,440
Marmato 423 438 1,687 - - - - -
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total Other 7,175 8,224 9,740 4,967 6,975 5,845 4,783 2,440
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total gold ounces
sold 79,622 67,649 90,090 75,104 86,243 90,101 92,804 100,405
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Silver ounces sold
Peñasquito
(6) 1,818 2,210 1,844 2,174 1,417 1,799 1,917 2,310
Antamina (6) 1,297 1,502 1,499 1,930 1,669 1,090 788 1,244
Constancia (6) 351 484 295 346 442 415 254 350
Other
Los Filos
(6) 17 12 42 27 - 19 25 37
Zinkgruvan 346 354 355 293 326 492 376 447
Yauliyacu
(6) 551 182 601 1,014 15 580 704 9
Stratoni 42 41 167 117 169 134 77 163
Minto 27 24 29 26 20 - - -
Neves-Corvo 259 193 215 239 145 201 236 204
Aljustrel 133 155 208 257 280 148 252 123
Cozamin 174 170 168 173 - - - -
Marmato 8 10 35 - - - - -
Keno Hill 24 51 33 12 - - - -
777 69 99 109 49 93 121 100 41
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total Other 1,650 1,291 1,962 2,207 1,048 1,695 1,770 1,024
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Total silver
ounces sold 5,116 5,487 5,600 6,657 4,576 4,999 4,729 4,928
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Palladium ounces
sold
Stillwater (3) 4,641 5,703 3,869 5,131 4,591 5,546 4,976 4,938
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Cobalt pounds sold
Voisey's Bay 228 131 395 132 - - - -
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
GEOs sold (4) 158,864 152,432 176,700 175,419 155,665 166,611 164,844 175,154
SEOs sold (4) 11,438 10,975 12,722 12,630 11,208 11,996 11,869 12,611
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Cumulative payable
units PBND (5)
Gold ounces 85,945 80,819 66,238 70,072 70,555 75,750 79,632 88,383
Silver ounces 4,200 3,845 3,802 3,738 4,486 3,437 3,222 4,961
Palladium ounces 5,629 5,619 6,822 5,373 5,597 4,616 4,883 4,875
Cobalt pounds 596 637 777 820 - - - -
GEO (4) 157,347 147,679 135,430 136,933 140,008 129,391 130,623 163,521
SEO (4) 10,906 10,181 9,199 9,277 10,081 9,316 9,405 11,774
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
Inventory on hand
Cobalt pounds 657 488 134 132 - - - -
------------------ -------------------- -------------------- ------------------- --------------------- ----------------- ----------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
6) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended December 31, 2021
--------------------------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Impairment Cash Flow
Units Units ($'s ($'s Per ($'s Per Gross Reversals Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Margin (4) Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- -------- ----------- --------- ---------- ----------
Gold
Salobo 48,235 47,171 $ 1,799 $ 412 $ 374 $ 84,849 $ 47,781 $ - $ 47,781 $ 63,659 $2,437,939
Sudbury (5) 5,404 965 1,795 400 1,024 1,732 357 - 357 1,346 307,169
Constancia 9,857 6,196 1,799 412 315 11,147 6,642 - 6,642 8,398 103,789
San Dimas 13,714 15,182 1,799 618 322 27,309 13,030 - 13,030 17,923 166,723
Stillwater 2,664 2,933 1,799 319 397 5,275 3,176 - 3,176 4,340 219,785
Other (6) 8,447 7,175 1,795 676 42 12,875 7,721 - 7,721 8,463 364,792
88,321 79,622 $ 1,798 $ 472 $ 338 $143,187 $ 78,707 $ - $ 78,707 $ 104,129 $3,600,197
------------------ ----------- ------ -------- -------- -------- ------- ------- ---------- -------- --------- ---------
Silver
Peñasquito 2,145 1,818 $ 23.28 $ 4.29 $ 3.55 $ 42,314 $ 28,064 $ - $ 28,064 $ 34,515 $ 322,018
Antamina 1,366 1,297 23.33 4.73 7.53 30,250 14,351 - 14,351 25,091 580,052
Constancia 578 351 23.28 6.08 7.56 8,170 3,383 - 3,383 5,739 205,884
Other (7) 2,267 1,650 23.48 7.22 5.83 38,770 17,226 - 17,226 26,118 593,195
----------
6,356 5,116 $ 23.36 $ 5.47 $ 5.57 $119,504 $ 63,024 $ - $ 63,024 $ 91,463 $1,701,149
------------------ ----------- ------ -------- -------- -------- ------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 4,733 4,641 $ 1,918 $ 340 $ 442 $ 8,902 $ 5,268 $ - $ 5,268 $ 7,323 $ 232,830
------------------ ----------- ------ -------- -------- -------- ------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 381 228 $ 28.94 $ 4.68 $ 8.17 $ 6,604 $ 3,673 $ 156,717 $ 160,390 $ 2,443 $ 371,621
------------------ ----------- ------ -------- -------- -------- ------- ------- ---------- -------- --------- ---------
Operating results $278,197 $150,672 $ 156,717 $ 307,389 $ 205,358 $5,905,797
------------------------------- ------ -------- -------- -------- ------- ------- ---------- -------- --------- ---------
Other
General and administrative $(16,955) $ (9,139)
Finance costs (1,508) (1,026)
Other 3,581 325
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) Please see the section "Impairment Reversals of Mineral
Stream Interests" in this press release for more information.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
6) Comprised of the operating 777, Minto and Marmato gold
interests as well as the non-operating Rosemont, Santo Domingo,
Blackwater and Fenix gold interests.
7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin,
Marmato and 777 silver interests as well as the non-operating Loma
de La Plata, Pascua-Lama, Rosemont and Blackwater silver
interests.
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, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 186,404 158,864 $ 1,751 $ 429 $ 1,322 $ 373 $ 949
Silver
equivalent
basis (5) 13,421 11,438 $ 24.32 $ 5.96 $ 18.36 $ 5.19 $ 13.17
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Three Months Ended December 31, 2020
--------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) 3 Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- -------- ---------- ----------
Gold
Salobo 62,854 53,197 $ 1,881 $ 408 $ 374 $100,047 $ 58,426 $ 74,508 $2,509,344
Sudbury (4) 6,659 7,620 1,888 400 831 14,384 5,000 11,336 321,016
Constancia 3,929 3,853 1,881 408 338 7,246 4,373 5,674 105,569
San Dimas 11,652 11,529 1,881 612 315 21,683 10,993 12,812 182,202
Stillwater 3,290 3,069 1,881 338 449 5,772 3,357 4,735 224,310
Other (5) 3,655 6,975 1,888 421 238 13,167 8,576 10,241 7,526
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
92,039 86,243 $ 1,882 $ 433 $ 397 $162,299 $ 90,725 $ 119,306 $3,349,967
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
Silver
Peñasquito 2,014 1,417 $ 24.44 $ 4.26 $ 3.24 $ 34,629 $ 23,997 $ 28,592 $ 350,572
Antamina 1,930 1,669 24.44 4.86 8.74 40,782 18,079 32,667 626,934
Constancia 478 442 24.44 6.02 7.63 10,805 4,770 8,143 217,044
Other (6) 2,087 1,048 25.69 8.03 1.00 26,915 17,456 20,804 474,975
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
6,509 4,576 $ 24.72 $ 5.51 $ 5.16 $113,131 $ 64,302 $ 90,206 $1,669,525
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
Palladium
Stillwater 5,672 4,591 $ 2,348 $ 423 $ 428 $ 10,782 $ 6,875 $ 8,840 $ 241,389
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
Operating results $286,212 $161,902 $ 218,352 $5,488,391
------------------------------- ------ -------- -------- -------- ------- ------- --------- ---------
Other
General and administrative $(9,391) $ (8,384)
Finance costs (2,196) (1,980)
Other 830 (5)
Income tax 6,076 (21)
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
Total other $(4,681) $ (10,390) $ 468,881
--------------------------------------- -------- -------- -------- ------- ------- --------- ---------
$157,221 $ 207,962 $5,957,272
------------------ ----------- ------ -------- -------- -------- ------- ------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands gold and palladium ounces produced and sold and per
unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Rosemont gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato
and Cozamin silver interests as well as the non-operating Loma de
La Plata, Pascua-Lama and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended December 31, 2020 were as
follows:
Three Months Ended December 31, 2020
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 189,682 155,665 $ 1,839 $ 415 $ 1,424 $ 384 $ 1,040
Silver
equivalent
basis (5) 13,657 11,208 $ 25.54 $ 5.76 $ 19.78 $ 5.33 $ 14.45
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Year Ended December 31, 2021
----------------------------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Impairment Cash Flow
Units Units ($'s ($'s Per ($'s Per Gross Reversals Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Margin (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- ---------- -------- ----------- --------- ---------- -----------
Gold
Salobo 205,652 191,075 $ 1,797 $ 412 $ 374 $ 343,398 $193,247 $ - $ 193,247 $ 264,652 $2,437,939
Sudbury (5) 17,119 13,516 1,811 400 1,024 24,475 5,221 - 5,221 19,068 307,169
Constancia 26,368 18,352 1,797 411 315 32,974 19,658 - 19,658 25,438 103,789
San Dimas 47,619 48,015 1,797 617 322 86,290 41,199 - 41,199 56,679 166,723
Stillwater 11,616 11,401 1,797 325 397 20,487 12,259 - 12,259 16,784 219,785
Other (6) 34,172 30,106 1,804 607 61 54,296 34,192 - 34,192 36,444 364,792
------------------ ----------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
342,546 312,465 $ 1,798 $ 459 $ 361 $ 561,920 $305,776 $ - $ 305,776 $ 419,065 $3,600,197
================== =========== ======= ======== ======== ======== ========= ======= ========== ======== ======== =========
Silver
Peñasquito 8,553 8,046 $ 25.07 $ 4.29 $ 3.55 $ 201,688 $138,616 $ - $ 138,616 $ 167,169 $ 322,018
Antamina 6,049 6,228 25.17 5.04 7.53 156,735 78,458 - 78,458 125,688 580,052
Constancia 1,973 1,476 24.91 6.05 7.56 36,775 16,689 - 16,689 27,848 205,884
Other (7) 9,424 7,110 25.07 8.06 5.56 178,231 81,393 - 81,393 123,359 593,195
--------
25,999 22,860 $ 25.08 $ 5.78 $ 5.52 $ 573,429 $315,156 $ - $ 315,156 $ 444,064 $1,701,149
------------------ ----------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
Palladium
Stillwater 20,908 19,344 $ 2,369 $ 433 $ 442 $ 45,834 $ 28,891 $ - $ 28,891 $ 37,450 $ 232,830
------------------ ----------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
Cobalt
Voisey's Bay 2,293 886 $ 23.11 $ 4.67 $ 8.17 $ 20,482 $ 9,102 $ 156,717 $ 165,819 $ 3,687 $ 371,621
------------------ ----------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
Operating results $1,201,665 $658,925 $ 156,717 $ 815,642 $ 904,266 $5,905,797
------------------------------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
Other
General and administrative $(60,985) $(55,301)
Finance costs (5,817) (4,271)
Other 5,776 731
Income tax 269 (280)
Total other $(60,757) $(59,121) $ 390,354
---------------------------------------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
$ 754,885 $ 845,145 $6,296,151
------------------ ----------- ------- -------- -------- -------- --------- ------- ---------- -------- -------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Please see the section "Impairment Reversals of Mineral
Stream Interests" in this press release for more information
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
6) Comprised of the operating 777, Minto and Marmato gold
interests as well as the non-operating Rosemont, Santo Domingo,
Blackwater and Fenix gold interests.
7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin,
Marmato and 777 silver interests as well as the non-operating Loma
de La Plata, Pascua-Lama, Rosemont and Blackwater silver
interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2021 were as
follows:
Year Ended December 31, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 752,958 663,415 $ 1,811 $ 434 $ 1,377 $ 384 $ 993
Silver equivalent
basis (5) 54,213 47,766 $ 25.16 $ 6.03 $ 19.13 $ 5.33 $ 13.80
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Year Ended December 31, 2020
------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- ---------- --------- ---------- ----------
Gold
Salobo 247,941 256,212 $ 1,757 $ 408 $ 374 $ 450,166 $ 249,708 $ 345,621 $2,509,344
Sudbury (4) 27,509 27,714 1,797 400 831 49,791 15,679 38,609 321,016
Constancia 14,860 14,320 1,785 406 338 25,556 14,907 19,744 105,569
San Dimas 38,272 38,604 1,775 610 315 68,519 32,813 44,978 182,202
Stillwater 12,643 12,660 1,766 316 449 22,353 12,666 18,351 224,310
Other (5) 25,096 20,043 1,818 421 281 36,442 22,357 28,007 7,526
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
366,321 369,553 $ 1,767 $ 426 $ 399 $ 652,827 $ 348,130 $ 495,310 $3,349,967
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
Silver
Peñasquito 7,631 7,443 $ 20.25 $ 4.26 $ 3.24 $ 150,720 $ 94,886 $ 119,016 $ 350,572
Antamina 5,369 4,791 21.34 4.19 8.74 102,241 40,312 82,188 626,934
Constancia 1,623 1,461 21.42 5.99 7.63 31,285 11,397 22,541 217,044
Other (6) 8,269 5,537 20.84 7.41 1.97 115,379 63,460 74,159 474,975
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
22,892 19,232 $ 20.78 $ 5.28 $ 4.58 $ 399,625 $ 210,055 $ 297,904 $1,669,525
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
Palladium
Stillwater 22,187 20,051 $ 2,183 $ 389 $ 428 $ 43,772 $ 27,387 $ 35,967 $ 241,389
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
Cobalt
Voisey's Bay - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 227,510
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
Operating results $1,096,224 $ 585,572 $ 829,181 $5,488,391
------------------------------- ------- -------- -------- -------- --------- -------- --------- ---------
Other
General and administrative $(65,698) $ (46,914)
Finance costs (16,715) (17,551)
Other 2,170 677
Income tax 2,475 49
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
Total other $(77,768) $ (63,739) $ 468,881
---------------------------------------- -------- -------- -------- --------- -------- --------- ---------
$ 507,804 $ 765,442 $5,957,272
------------------ ----------- ------- -------- -------- -------- --------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Rosemont gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato
and Cozamin silver interests as well as the non-operating Loma de
La Plata, Pascua-Lama and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the year ended December 31, 2020 were as
follows:
Year Ended December 31, 2020
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 712,624 662,275 $ 1,655 $ 403 $ 1,252 $ 368 $ 884
Silver equivalent
basis (5) 51,309 47,684 $ 22.99 $ 5.59 $ 17.40 $ 5.11 $ 12.29
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Ounces produced represent the quantity of gold, silver and
palladium contained in concentrate or doré prior to smelting or
refining deductions. Production figures are based on information
provided by the operators of the mining operations to which the
mineral stream interests relate or management estimates in those
situations where other information is not available. Certain
production figures may be updated in future periods as additional
information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium;
and $17.75 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2021.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis,
with the Company receiving its first deliveries of cobalt from
Voisey's Bay during the first quarter of 2021; and (iv) cash
operating margin. The Company has removed the non-IFRS measure
associated with net debt as Wheaton fully repaid its debt during
the first quarter of 2021.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals), 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) 2021 2020 2021 2020
--------------------------------------------------------- ---------- -------- ---------- --------
Net earnings $ 291,822 $157,221 $ 754,885 $507,804
Add back (deduct):
Impairment reversal (156,717) - (156,717) -
(Gain) loss on fair value adjustment of share purchase
warrants held (290) (1,182) 2,101 (338)
(Gain) loss on fair value adjustment of convertible
notes receivable (1,597) (517) (5,733) (1,899)
Income tax expense (recovery) recognized in the
Statement of Shareholders' Equity 974 911 1,811 (820)
Income tax expense (recovery) recognized in the
Statement of OCI (325) (7,011) (2,314) (1,866)
Other (1,635) 19 (1,954) 454
---------------------------------------------------------- --------- ------- --------- -------
Adjusted net earnings $ 132,232 $149,441 $ 592,079 $503,335
---------------------------------------------------------- --------- ------- --------- -------
Divided by:
Basic weighted average number of shares outstanding 450,614 449,320 450,138 448,694
Diluted weighted average number of shares outstanding 451,570 450,980 451,170 450,070
---------------------------------------------------------- --------- ------- --------- -------
Equals:
Adjusted earnings per share - basic $ 0.293 $ 0.333 $ 1.315 $ 1.122
Adjusted earnings per share - diluted $ 0.293 $ 0.331 $ 1.312 $ 1.118
---------------------------------------------------------- --------- ------- --------- -------
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) 2021 2020 2021 2020
--------------------------------------------------------- ------------ -------- -------- --------
Cash generated by operating activities $ 195,290 $207,962 $845,145 $765,442
---------------------------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 450,614 449,320 450,138 448,694
Diluted weighted average number of shares outstanding 451,570 450,980 451,170 450,070
---------------------------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share - basic $ 0.433 $ 0.463 $ 1.878 $ 1.706
Operating cash flow per share - diluted $ 0.432 $ 0.461 $ 1.873 $ 1.701
---------------------------------------------------------- -------- ------- ------- -------
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) 2021 2020 2021 2020
------------------------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 127,525 $ 124,310 $ 542,740 $ 510,652
Less: depletion (59,335) (59,785) (254,793) (243,889)
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 68,190 $ 64,525 $ 287,947 $ 266,763
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 37,550 $ 37,355 $ 143,272 $ 157,429
Total cash cost of silver sold 27,993 25,228 132,151 101,529
Total cash cost of palladium sold 1,580 1,942 8,384 7,805
Total cash cost of cobalt sold 1,067 - 4,140 -
-------------------------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 68,190 $ 64,525 $ 287,947 $ 266,763
-------------------------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 79,622 86,243 312,465 369,553
Total silver ounces sold 5,116 4,576 22,860 19,232
Total palladium ounces sold 4,641 4,591 19,344 20,051
Total cobalt pounds sold 228 - 886 -
-------------------------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 472 $ 433 $ 459 $ 426
Average cash cost of silver (per ounce) $ 5.47 $ 5.51 $ 5.78 $ 5.28
Average cash cost of palladium (per ounce) $ 340 $ 423 $ 433 $ 389
Average cash cost of cobalt (per pound) $ 4.68 $ n.a. $ 4.67 $ n.a.
-------------------------------------------------------- -------- -------- --------- ---------
iv. Cash operating margin is calculated by subtracting the
average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis from the average realized
selling price of gold, silver and palladium on a per ounce basis
and cobalt on a per pound basis. The Company presents cash
operating margin as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis as well as to evaluate the Company's
ability to generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended Years Ended
December 31 December 31
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2021 2020 2021 2020
=========================================================== ============ ======== ======== ========
Total sales:
Gold $ 143,187 $162,299 $561,920 $652,827
Silver $ 119,504 $113,131 $573,429 $399,625
Palladium $ 8,902 $ 10,782 $ 45,834 $ 43,772
Cobalt $ 6,604 $ - $ 20,482 $ -
Divided by:
Total gold ounces sold 79,622 86,243 312,465 369,553
Total silver ounces sold 5,116 4,576 22,860 19,232
Total palladium ounces sold 4,641 4,591 19,344 20,051
Total cobalt pounds sold 228 - 886 -
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Average realized price of gold (per ounce) $ 1,798 $ 1,882 $ 1,798 $ 1,767
Average realized price of silver (per ounce) $ 23.36 $ 24.72 $ 25.08 $ 20.78
Average realized price of palladium (per ounce) $ 1,918 $ 2,348 $ 2,369 $ 2,183
Average realized price of cobalt (per pound) $ 28.94 $ n.a. $ 23.11 $ n.a.
Less:
Average cash cost of gold (1) (per ounce) $ (472) $ (433) $ (459) $ (426)
Average cash cost of silver (1) (per ounce) $ (5.47) $ (5.51) $ (5.78) $ (5.28)
Average cash cost of palladium (1) (per ounce) $ (340) $ (423) $ (433) $ (389)
Average cash cost of cobalt (1) (per pound) $ (4.68) $ n.a. $ (4.67) $ n.a.
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,326 $ 1,449 $ 1,339 $ 1,341
As a percentage of realized price of gold 74% 77% 74% 76%
Cash operating margin per silver ounce sold $ 17.89 $ 19.21 $ 19.30 $ 15.50
As a percentage of realized price of silver 77% 78% 77% 75%
Cash operating margin per palladium ounce sold $ 1,578 $ 1,925 $ 1,936 $ 1,794
As a percentage of realized price of palladium 82% 82% 82% 82%
Cash operating margin per cobalt pound sold $ 24.26 $ n.a. $ 18.44 $ n.a.
As a percentage of realized price of cobalt 84% n.a. 80% n.a.
------------------------------------------------------------ -------- ------- ------- -------
1) Please refer to non-IFRS measure (iii), above.
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS measures
is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
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 audits for
taxation years subsequent to 2015, the Company's assessment of the
impact of any tax reassessments, the Company's intention to file
future tax returns in a manner consistent with the CRA Settlement,
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 the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs or royalty
arrangements, risks associated with fluctuations in the price of
commodities (including Wheaton's ability to sell its precious
metals or cobalt production at acceptable prices or at all), risks
of significant impacts on Wheaton or the Mining Operations as a
result of an epidemic (including the COVID-19 virus pandemic),
risks related to the Mining Operations (including fluctuations in
the price of the primary or other commodities mined at such
operations, regulatory, political and other risks of the
jurisdictions in which the Mining Operations are located, actual
results of mining, risks associated with the exploration,
development, operating, expansion and improvement of the Mining
Operations, environmental and economic risks of the Mining
Operations, and changes in project parameters as plans continue to
be refined), the absence of control over the Mining Operations and
having to rely on the accuracy of the public disclosure and other
information Wheaton receives from the Mining Operations,
uncertainty in the estimation of production from Mining Operations,
uncertainty in the accuracy of mineral reserve and mineral resource
estimation, the ability of each party to satisfy their obligations
in accordance with the terms of the PMPAs, the estimation of future
production from Mining Operations, Wheaton's interpretation of,
compliance with or application of, tax laws and regulations or
accounting policies and rules being found to be incorrect, any
challenge or reassessment by the CRA of the Company's tax filings
being successful and the potential negative impact to the Company's
previous and future tax filings, assessing the impact of the CRA
Settlement for years subsequent to 2010 (including whether there
will be any material change in the Company's facts or change in law
or jurisprudence), potential implementation of a 15% global minimum
tax, counterparty credit and liquidity, mine operator
concentration, indebtedness and guarantees, hedging, competition,
claims and legal proceedings against Wheaton or the Mining
Operations, security over underlying assets, governmental
regulations, international operations of Wheaton and the Mining
Operations, exploration, development, operations, expansions and
improvements at the Mining Operations, environmental regulations,
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, 2020 and Form 6-K filed
March 10, 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 for years subsequent to
2010 is accurate (including the Company's assessment that there
will be no material change in the Company's facts or change in law
or jurisprudence for years subsequent to 2010), and such other
assumptions and factors as set out in the Disclosure. There can be
no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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,
2021, which will be filed on or about March 31, 2022 and other
continuous disclosure documents filed by Wheaton since January 1,
2022, 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
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
[1] Please refer to non-IFRS measures at the end of this press
release. Dividends declared in the referenced calendar quarter,
relative to the financial results of the prior quarter. Details of
the dividend can be found in the Wheaton's news release date March
10, 2022, titled "Wheaton Precious Metals Declares Quarterly
Dividend."
[2] Commodity price assumptions for the gold equivalent
production and sales in 2021 are $1,800 / ounce gold, $25 / ounce
silver, and $2,300 / ounce palladium and $17.75 / pound cobalt.
Other metal includes palladium and cobalt.
[3] Gold equivalent forecast production for 2022 and the longer
term outlook and for mineral reserves and resources are based on
the following commodity price assumptions: $1,800 / ounce gold, $24
/ ounce silver, $2,100 / ounce palladium, $1,000 / ounce platinum
and $33 / pound of cobalt. Other metal includes palladium and
cobalt. Five- and ten-year guidance do not include optionality
production from Pascua Lama, Navidad, Cotabambas, Metates, or
additional expansions at Salobo outside of project currently in
construction. In addition, five-year guidance also does not include
any production from Kutcho or the Victor project at Sudbury.
[4] Payable gold, silver and palladium ounces and cobalt pounds
produced but not yet delivered are based on management estimates
only and rely upon information provided by the owners and operators
of mining operations and may be revised and updated in future
periods as additional information is received.
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END
FR GLGDXDDBDGDB
(END) Dow Jones Newswires
March 11, 2022 02:00 ET (07:00 GMT)
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