TIDMWPM
RNS Number : 5382K
Wheaton Precious Metals Corp.
06 May 2022
May 6, 2022
Vancouver, British Columbia
Designated News Release
FIRST quarter 2022 financial results
TSX | NYSE | LSE: WPM
WHEATON PRECIOUS METALS Announces solid start to 2022
"Wheaton once again had a solid start to the year, generating
over $210 million in operating cash flow and continuing to return
value to our shareholders through our competitive dividend," said
Randy Smallwood, President and Chief Executive Officer of Wheaton
Precious Metals. "In the first three months of 2022, we added two
new streams and increased our interest in a pre-existing stream. In
addition, we took a significant step in strengthening our
environmental, social and governance strategy by formalizing our
climate change policy, including setting a goal of reaching net
zero carbon emissions by 2050. The year is off to a good start, and
I look forward to advancing on all of our initiatives throughout
the year in order to continue building a strong, sustainable
business, that delivers value and growth to all of our
stakeholders."
First Quarter 2022 Highlights:
-- Over $305 million in revenue and $210 million in operating
cash flow during the quarter, resulting in a net cash balance of
$376 million as at March 31, 2022.
-- $158 million in adjusted net earnings(1) during the first quarter of 2022.
-- Announced a new precious metal purchase agreement ("PMPA") on
Adventus Mining Corporation's Curipamba Project in respect of gold
and silver production.
-- Announced PMPA on Sabina Gold & Silver Corp.'s Goose Project in respect of gold production.
-- Amended the PMPA on Aris Gold Corp.'s Marmato Mine,
increasing the gold stream in exchange for additional upfront
consideration.
-- Adopted a climate change policy and commitment to net zero carbon emissions by 2050.
-- Declared quarterly dividend (1) of $0.15 per common share, an
increase of 7% relative to the comparable period in 2021 .
Operational Overview
(all figures in US dollars unless otherwise noted) Q1 2022 Q1 2021 Change
---------------------------------------------------- --- -------- ---------- --------
Units produced
Gold ounces 79,087 78,529 0.7 %
Silver ounces 6,206 6,765 (8.3)%
Palladium ounces 4,488 5,769 (22.2)%
Cobalt pounds 234 1,162 (79.8)%
Gold equivalent ounces (2) 171,367 196,756 (12.9)%
Units sold
Gold ounces 77,901 75,104 3.7 %
Silver ounces 5,553 6,657 (16.6)%
Palladium ounces 4,075 5,131 (20.6)%
Cobalt pounds 511 132 286.7%
Gold equivalent ounces (2) 166,065 172,271 (3.6)%
---------------------------------------------------------- -------- ---------- --------
Revenue $ 307,244 $ 324,119 (5.2)%
Net earnings $ 157,467 $ 162,002 (2.8)%
Per share $ 0.349 $ 0.360 (3.1)%
Adjusted net earnings (1) $ 158,007 $ 161,132 (1.9)%
Per share (1) $ 0.350 $ 0.358 (2.2)%
Operating cash flows $ 210,540 $ 232,154 (9.3)%
Per share (1) $ 0.467 $ 0.516 (9.5)%
----------------------------------------------------- -------- ---------- --------
All amounts in thousands except gold, palladium & gold
equivalent ounces and cobalt pounds produced & sold, and per
share amounts.
Financial Review
Revenues
Revenue was $307 million in the first quarter of 2022
representing a 5% decrease from the first quarter of 2021 due
primarily to a 4% decrease in the number of GEOs(2) sold.
Cash Costs and Margin
Average cash costs(1) in the first quarter of 2022 were $421 per
GEO(2) as compared to $457 in the first quarter of 2021. This
resulted in a cash operating margin(1) of $1,429 per GEO(2) sold,
virtually unchanged as compared with the first quarter of 2021.
Balance Sheet (at March 31, 2022 )
-- Approximately $376 million of cash on hand.
-- The Company's $2 billion revolving term loan (the "Revolving
Facility") remains fully undrawn.
-- The Company is well positioned to fund all outstanding
commitments as well as providing flexibility to acquire additional
accretive mineral stream interests.
First Quarter Asset Highlights
Salobo: In the first quarter of 2022, Salobo produced 44,900
ounces of attributable gold, a decrease of approximately 4%
relative to the first quarter of 2021. According to Vale S.A.
("Vale"), during the quarter, Salobo operations were impacted by
both planned and corrective maintenance in the mill liners. In
addition, above average seasonal rain level in the region during
the fourth quarter of 2021 impacted mine plans in the first quarter
of 2022; however, Vale does not anticipate any impact to the
overall 2022 production.
As per Vale's First Quarter 2022 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. Vale reports that
remediation work on the conveyor is ongoing and is expected to be
completed in May. Furthermore, Vale does not foresee the impacts of
this event modifying the project delivery date beyond the fourth
quarter of 2022. Vale reports that physical completion of the
Salobo III mine expansion was 90% at the end of the first
quarter.
Antamina: In the first quarter of 2022, Antamina produced 1.3
million ounces of attributable silver, a decrease of approximately
20% relative to the first quarter of 2021, primarily due to lower
grades as per the mine plan .
Constancia: In the first quarter of 2022, Constancia produced
0.5 million ounces of attributable silver and 6,300 ounces of
attributable gold, an increase of approximately 25% and 157%,
respectively, relative to the first quarter of 2021. Silver
production increased primarily due to higher throughput and 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%.
Sudbury: In the first quarter of 2022, Vale's Sudbury mines
produced 6,400 ounces of attributable gold, a decrease of
approximately 9% relative to the first quarter of 2021 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 attributable 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 first quarter of 2022, the Stillwater mines
produced 2,500 ounces of attributable gold and 4,500 ounces of
attributable palladium, a decrease of approximately 18% for gold
and 22% for palladium relative to the first quarter of 2021. The
decrease was due to lower throughput and grades, partially offset
by higher recoveries.
San Dimas: In the first quarter of 2022, San Dimas produced
10,500 ounces of attributable gold, virtually unchanged relative to
the first quarter of 2021. First Majestic Silver Corp. ("First
Majestic") reports that production in the first quarter of 2022 was
impacted due to high absenteeism in the months of January and
February caused by an increase in COVID-19 infections within the
Tayoltita community.
Other Gold: In the first quarter of 2022, total Other Gold
attributable production was 8,500 ounces, a decrease of
approximately 4% relative to the first quarter of 2021, primarily
due to the mining of lower grade material at 777, which is
scheduled to close in June 2022.
Other Silver: In the first quarter of 2022, total Other Silver
attributable production was 2.2 million ounces, a decrease of
approximately 14% relative to the first quarter of 2021, primarily
due to lower grades at Aljustrel and the placement of Stratoni into
care and maintenance.
Voisey's Bay: In the first quarter of 2022, the Voisey's Bay
mine produced 234 thousand pounds of attributable cobalt , a
decrease of approximately 80% relative to the first quarter of
2021. The apparent significant decrease relative to the first
quarter of 2021 was primarily attributed to Wheaton being
contractually 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 from prior periods. As per Vale's
First Quarter 2022 Performance Report, physical completion of the
Voisey's Bay underground mine extension was 70% at the end of the
first quarter.
Produced But Not Yet Delivered[3] and Inventory
As at March 31, 2022 , payable ounces and pounds attributable to
the Company produced but not yet delivered amounted to:
-- 82,400 payable gold ounces, a decrease of 2,600 ounces during
Q1 2022 , primarily due to decreases at the Constancia and 777
mines partially offset by an increase at the Sudbury mines.
-- 3.9 million payable silver ounces, a decrease of 0.3 million ounces during Q1 2022.
-- 5,500 payable palladium ounces, virtually unchanged during Q1 2022.
-- 550 thousand payable cobalt pounds, virtually unchanged during Q1 2022.
As of March 31, 2022, approximately 410 thousand pounds of
cobalt were held in inventory by Wheaton, a decrease of 247 pounds
during Q1 2022.
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
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 145,000 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
the previously announced 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. Of this amount, $16
million (C$20 million) was paid on March 31, 2022. 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. 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.
Amendment to the Marmato PMPA: On March 21, 2022, the Company
amended its PMPA with Aris Gold Corporation ("Aris Gold") in
respect of the Marmato mines. Under the amended terms, Wheaton will
purchase 10.5% of the gold production and 100% of the silver
production from the Marmato Upper and Lower mines until 310,000
ounces of gold and 2.15 million ounces of silver have been
delivered, after which the stream drops to 5.25% of the gold
production and 50% of the silver production for the life of mine.
This increases the gold stream from the original Marmato PMPA under
which Wheaton was entitled to purchase 6.5% of the gold production
until 190,000 ounces were delivered, after which the stream was to
drop to 3.25% of the gold production. The silver stream is
unchanged. Under the terms of the amended Marmato PMPA, the Company
is committed to pay Aris Gold total upfront cash payments of $175
million ($65 million relating to the increase in the gold stream).
Of this amount, $53 million ($15 million relating to the increase
in the gold stream) has been paid and the remaining amount is
payable during the construction of the Marmato Lower Mine, subject
to customary conditions.
Sustainability
Climate Change Commitments: On February 9, 2022, Wheaton
announced the adoption of a Climate Change and Environmental Policy
and commitment to net zero carbon emissions by 2050[4]. 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 committed an initial $4M to
support our mining partners' efforts to move to renewable energy
sources and reduce emissions at the mines in which we have an
interest.
San Dimas Receives Recognition for Sustainability Efforts: The
Mexican Center for Philanthropy (CEMEFI) and the Alliance for
Corporate Social Responsibility (AliaRSE) has awarded First
Majestic Silver Corp.'s ("First Majestic") San Dimas mining unit
the Socially Responsible Business Distinction for 2022 (Distintivo
Empressa Socialmente Responsible 2022). This distinction from
within the Mexican community recognizes excellence in environmental
and social responsibility and ethical management.
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 first quarter of
2022, all Partner Community Investment programs continued to
operate as planned such as the continued enrollment of existing
schoolteachers and administrators into the Enseña Peru training
program, aimed at improving the academic performance for students
living close to the Antamina mine. During the quarter, the Wheaton
team focused on engaging with partners on identifying and selecting
programs and initiatives to be supported by Wheaton for 2022 and
beyond.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
Wheaton's estimated attributable production in 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(2) of other metals,
resulting in production of approximately 700,000 to 760,000 GEOs(2)
, unchanged from previous guidance. For the five-year period ending
in 2026, the Company estimates that average production will amount
to 850,000 GEOs(2) , while for the ten-year period ending in 2031,
the Company estimates that average annual production will amount to
910,000 GEOs(2) , also unchanged from previous guidance.
In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
financial statements, reference to the Company and Wheaton includes
the Company's wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, May 6,
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: 78834538
Live webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321
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 May 13,
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: 834538 #
Archived webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1517108&tp_key=4577d49321
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and have
been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations is a
"qualified person" as such term is defined under National
Instrument 43-101, and have reviewed and approved the technical
information disclosed in this news release.
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and those
required to be followed by United States domestic issuers under the
NYSE listing standards. This confirmation is located on the Wheaton
Precious Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
.
Condensed Interim Consolidated Statements of Earnings
Three Months Ended
March 31
(US dollars and shares in thousands, except per share amounts - unaudited) 2022 2021
--------------------------------------------------------------------------- ------------ --------
Sales $ 307,244 $324,119
---------------------------------------------------------------------------- -------- -------
Cost of sales
Cost of sales, excluding depletion $ 69,994 $ 78,783
Depletion 57,402 70,173
---------------------------------------------------------------------------- -------- -------
Total cost of sales $ 127,396 $148,956
---------------------------------------------------------------------------- -------- -------
Gross margin $ 179,848 $175,163
General and administrative expenses 9,403 9,735
Share based compensation 9,902 1,630
Donations and community investments 813 606
---------------------------------------------------------------------------- -------- -------
Earnings from operations $ 159,730 $163,192
Other (income) expense 170 119
---------------------------------------------------------------------------- -------- -------
Earnings before finance costs and income taxes $ 159,560 $163,073
Finance costs 1,422 1,573
---------------------------------------------------------------------------- -------- -------
Earnings before income taxes $ 158,138 $161,500
Income tax (expense) recovery (671) 502
---------------------------------------------------------------------------- -------- -------
Net earnings $ 157,467 $162,002
---------------------------------------------------------------------------- -------- -------
Basic earnings per share $ 0.349 $ 0.360
Diluted earnings per share $ 0.348 $ 0.360
Weighted average number of shares outstanding
Basic 450,915 449,509
Diluted 451,953 450,600
============================================================================ ======== =======
Condensed Interim Consolidated Balance Sheets
As at
As at December
March 31 31
(US dollars in thousands - unaudited) 2022 2021
----------------------------------------------- --------------- --------------
Assets
Current assets
Cash and cash equivalents $ 376,163 $ 226,045
Accounts receivable 27,939 11,577
Other 9,875 12,102
---------------------------------------------------- ---------- ----------
Total current assets $ 413,977 $ 249,724
----------------------------------------------- --- ---------- ----------
Non-current assets
Mineral stream interests $ 5,894,884 $ 5,905,797
Early deposit mineral stream interests 45,342 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 92,194 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 5,183 5,509
Other 11,847 15,211
---------------------------------------------------- ---------- ----------
Total non-current assets $ 6,056,056 $ 6,046,427
----------------------------------------------- --- ---------- ----------
Total assets $ 6,470,033 $ 6,296,151
----------------------------------------------- --- ---------- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,861 $ 13,935
Dividends payable 67,687 -
Current portion of performance share
units 31,413 14,807
Current portion of lease liabilities 830 813
Other 150 136
---------------------------------------------------- ---------- ----------
Total current liabilities $ 111,941 $ 29,691
Non-current liabilities
Lease liabilities 1,868 2,060
Deferred income taxes 121 100
Performance share units 3,759 11,498
Pension liability 2,883 2,685
---------------------------------------------------- ---------- ----------
Total non-current liabilities $ 8,631 $ 16,343
----------------------------------------------- --- ---------- ----------
Total liabilities $ 120,572 $ 46,034
----------------------------------------------- --- ---------- ----------
Shareholders' equity
Issued capital $ 3,711,294 $ 3,698,998
Reserves 44,304 47,036
Retained earnings 2,593,863 2,504,083
---------------------------------------------------- ---------- ----------
Total shareholders' equity $ 6,349,461 $ 6,250,117
----------------------------------------------- --- ---------- ----------
Total liabilities and shareholders' equity $ 6,470,033 $ 6,296,151
----------------------------------------------- --- ---------- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended
March 31
(US dollars in thousands - unaudited) 2022 2021
--------------------------------------------------------------------------- -------------- --------------
Operating activities
Net earnings $ 157,467 $ 162,002
Adjustments for
Depreciation and depletion 57,795 70,649
Interest expense 26 262
Equity settled stock based compensation 1,342 1,325
Performance share units 8,560 305
Pension expense 158 151
Income tax expense (recovery) 671 (502)
Loss (gain) on fair value adjustment of share purchase warrants held 743 950
Fair value (gain) loss on convertible note receivable 1,380 (1,238)
Investment income recognized in net earnings (194) (2)
Other (1,514) 593
Change in non-cash working capital (15,918) (1,972)
================================================================================= ========= ==========
Cash generated from operations before income taxes and interest $ 210,516 $ 232,523
Income taxes recovered (paid) (32) (30)
Interest paid (26) (341)
Interest received 82 2
================================================================================= ========= ==========
Cash generated from operating activities $ 210,540 $ 232,154
============================================================================ ========= ==========
Financing activities
Bank debt repaid $ - $ (195,000)
Share purchase options exercised 5,772 4,793
Lease payments (200) (214)
--------------------------------------------------------------------------------- --------- ----------
Cash (used for) generated from financing activities $ 5,572 $ (190,421)
============================================================================ ========= ==========
Investing activities
Mineral stream interests $ (45,252) $ (151,019)
Early deposit mineral stream interests (750) (750)
Mineral royalty interest - (3,561)
Acquisition of long-term investments (20,135) -
Proceeds on disposal of long-term investments - 112,188
Dividends received 112 -
Other (36) (134)
================================================================================= ========= ==========
Cash (used for) generated from investing activities $ (66,061) $ (43,276)
============================================================================ ========= ==========
Effect of exchange rate changes on cash and cash equivalents $ 67 $ 22
============================================================================ ========= ==========
Increase (decrease) in cash and cash equivalents $ 150,118 $ (1,521)
Cash and cash equivalents, beginning of period 226,045 192,683
================================================================================= ========= ==========
Cash and cash equivalents, end of period $ 376,163 $ 191,162
---------------------------------------------------------------------------- --------- ----------
Summary of Units Produced
Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Gold ounces
produced (2)
Salobo 44,883 48,235 55,205 55,590 46,622 62,854 63,408 59,104
Sudbury (3) 6,395 4,379 148 4,563 7,004 6,659 3,798 9,257
Constancia (7) 6,311 9,857 8,533 5,525 2,453 3,929 3,780 3,470
San Dimas (4, 7) 10,461 13,714 11,936 11,478 10,491 11,652 9,228 6,074
Stillwater (5) 2,497 2,664 2,949 2,962 3,041 3,290 3,176 3,222
Other
Minto 4,060 3,506 1,703 3,206 2,638 789 1,832 2,928
777 (8) 4,003 4,462 4,717 5,035 6,280 2,866 5,278 4,728
Marmato 477 479 433 1,713 - - - -
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total Other 8,540 8,447 6,853 9,954 8,918 3,655 7,110 7,656
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total gold ounces
produced 79,087 87,296 85,624 90,072 78,529 92,039 90,500 88,783
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Silver ounces
produced (2)
Peñasquito
(7) 2,219 2,145 2,180 2,026 2,202 2,014 1,992 967
Antamina (7) 1,260 1,366 1,548 1,558 1,577 1,930 1,516 612
Constancia (7) 506 578 521 468 406 478 430 254
Other
Los Filos
(7) 23 37 17 26 31 6 17 14
Zinkgruvan 577 482 658 457 420 515 498 389
Yauliyacu
(7) 637 382 372 629 737 454 679 273
Stratoni
(9) - 129 18 164 165 185 156 148
Minto 45 44 25 33 21 16 15 19
Neves-Corvo 344 522 362 408 345 420 281 479
Aljustrel 287 325 314 400 474 440 348 388
Cozamin 186 213 199 183 230 - - -
Marmato 11 7 10 39 - - - -
Keno Hill 20 30 44 55 27 - - -
777 (8) 91 96 81 83 130 51 96 108
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total Other 2,221 2,267 2,100 2,477 2,580 2,087 2,090 1,818
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total silver
ounces produced 6,206 6,356 6,349 6,529 6,765 6,509 6,028 3,651
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 4,488 4,733 5,105 5,301 5,769 5,672 5,444 5,759
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Cobalt pounds
produced (2)
Voisey's Bay 234 381 370 380 1,162 (1) - - -
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
GEOs produced (6) 171,367 184,551 183,012 190,272 196,756 185,436 177,230 144,188
SEOs produced (6) 12,853 13,841 13,726 14,270 14,757 13,908 13,292 10,814
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Average payable
rate (2)
Gold 95.2% 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% 94.7%
Silver 86.1% 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% 81.9%
Palladium 92.7% 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% 90.8%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% n.a. n.a. n.a.
GEO (6) 90.6% 91.4% 91.3% 91.8% 90.7% 91.2% 91.2% 90.0%
------------------ --------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
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: Q1-2022 - 408,000
ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021
- 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000
ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 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; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
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) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) Effective January 1, 2021, the Company was entitled to
cobalt production from the Voisey's Bay mine. As per the Voisey's
Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at
the Long Harbour Processing Plant as of January 1, 2021, resulting
in reported production in the first quarter of 2021 including some
material produced at the Voisey's Bay mine in the previous
quarter.
Summary of Units Sold
Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Gold ounces sold
Salobo 42,513 47,171 35,185 57,296 51,423 53,197 59,584 68,487
Sudbury (2) 3,712 965 1,915 6,945 3,691 7,620 7,858 7,414
Constancia (6) 10,494 6,196 8,159 2,321 1,676 3,853 4,112 3,024
San Dimas (6) 10,070 15,182 11,346 11,214 10,273 11,529 9,687 6,030
Stillwater (3) 2,628 2,933 2,820 2,574 3,074 3,069 3,015 3,066
Other
Minto 3,695 2,462 1,907 2,359 2,390 1,540 - -
777 4,388 4,290 5,879 5,694 2,577 5,435 5,845 4,783
Marmato 401 423 438 1,687 - - - -
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total Other 8,484 7,175 8,224 9,740 4,967 6,975 5,845 4,783
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total gold ounces
sold 77,901 79,622 67,649 90,090 75,104 86,243 90,101 92,804
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Silver ounces sold
Peñasquito
(6) 2,188 1,818 2,210 1,844 2,174 1,417 1,799 1,917
Antamina (6) 1,468 1,297 1,502 1,499 1,930 1,669 1,090 788
Constancia (6) 644 351 484 295 346 442 415 254
Other
Los Filos
(6) 42 17 12 42 27 - 19 25
Zinkgruvan 355 346 354 355 293 326 492 376
Yauliyacu
(6) 44 551 182 601 1,014 15 580 704
Stratoni 133 42 41 167 117 169 134 77
Minto 31 27 24 29 26 20 - -
Neves-Corvo 204 259 193 215 239 145 201 236
Aljustrel 145 133 155 208 257 280 148 252
Cozamin 177 174 170 168 173 - - -
Marmato 8 8 10 35 - - - -
Keno Hill 27 24 51 33 12 - - -
777 87 69 99 109 49 93 121 100
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total Other 1,253 1,650 1,291 1,962 2,207 1,048 1,695 1,770
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Total silver
ounces sold 5,553 5,116 5,487 5,600 6,657 4,576 4,999 4,729
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Palladium ounces
sold
Stillwater (3) 4,075 4,641 5,703 3,869 5,131 4,591 5,546 4,976
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Cobalt pounds sold
Voisey's Bay 511 228 131 395 132 - - -
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
GEOs sold (4) 166,065 157,439 149,862 176,502 172,271 152,613 163,218 161,664
SEOs sold (4) 12,455 11,808 11,240 13,238 12,920 11,446 12,241 12,125
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Cumulative payable
units PBND (5)
Gold ounces 82,350 84,989 80,819 66,238 70,072 70,555 75,750 79,632
Silver ounces 3,893 4,200 3,845 3,802 3,738 4,486 3,437 3,222
Palladium ounces 5,535 5,629 5,619 6,822 5,373 5,597 4,616 4,883
Cobalt pounds 550 596 637 777 820 - - -
GEO (4) 150,794 158,477 150,317 139,145 141,206 136,894 126,968 128,291
SEO (4) 11,310 11,886 11,274 10,436 10,590 10,267 9,523 9,622
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
Inventory on hand
Cobalt pounds 410 657 488 134 132 - - -
------------------ -------------------- -------------------- -------------------- ------------------- ----------------- ----------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
6) Operations at these mines had been temporarily suspended
during the second quarter of 2020 as a result of the COVID-19
pandemic. During the second half of 2020, all of the operations
were restarted.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended March 31, 2022
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 44,883 42,513 $ 1,872 $ 416 $ 334 $ 79,564 $ 47,684 $ 61,869 $2,423,755
Sudbury (4) 6,395 3,712 1,861 400 1,092 6,909 1,370 5,425 303,115
Constancia 6,311 10,494 1,872 412 271 19,641 12,471 15,482 100,944
San Dimas 10,461 10,070 1,872 618 260 18,846 10,008 12,621 164,110
Stillwater 2,497 2,628 1,872 329 429 4,918 2,926 4,054 218,657
Other (5) 8,540 8,484 1,862 771 25 15,797 9,048 8,822 404,729
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
79,087 77,901 $ 1,870 $ 477 $ 321 $145,675 $ 83,507 $ 108,273 $3,615,310
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,219 2,188 $ 24.10 $ 4.36 $ 3.57 $ 52,727 $ 35,387 $ 43,188 $ 314,217
Antamina 1,260 1,468 24.09 4.94 7.06 35,359 17,747 27,759 569,691
Constancia 506 644 24.10 6.08 6.33 15,513 7,526 11,913 201,811
Other (6) 2,221 1,253 24.52 6.07 3.45 30,733 18,797 23,874 589,875
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,206 5,553 $ 24.19 $ 5.10 $ 4.78 $134,332 $ 79,457 $ 106,734 $1,675,594
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 4,488 4,075 $ 2,339 $ 394 $ 399 $ 9,533 $ 6,303 $ 7,930 $ 231,203
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,820
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 234 511 $ 34.61 $ 5.76 $ 8.17 $ 17,704 $ 10,581 $ 3,263 $ 367,957
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $307,244 $ 179,848 $ 226,200 $5,894,884
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (9,403) $ (15,128)
Share based compensation (9,902) -
Donations and community
investments (813) (430)
Finance costs (1,422) (1,077)
Other (170) 1,007
Income tax (671) (32)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(22,381) $ (15,660) $ 575,149
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 157,467 $ 210,540 $6,470,033
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
5) Comprised of the operating 777, Minto and Marmato gold
interests as well as the non-operating Rosemont, Santo Domingo,
Blackwater, Fenix, Goose, Marathon and Curipamba gold
interests.
6) Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni,
Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777
silver interests as well as the non-operating Loma de La Plata,
Pascua-Lama, Rosemont, Blackwater and Curipamba silver interests.
The Stratoni mine was placed into care and maintenance during
Q4-2021.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March 31, 2022 were as
follows:
Three Months Ended March 31, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 171,367 166,065 $ 1,850 $ 421 $ 1,429 $ 346 $ 1,083
Silver
equivalent
basis (5) 12,853 12,455 $ 24.67 $ 5.62 $ 19.05 $ 4.61 $ 14.44
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Three Months Ended March 31, 2021
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 46,622 51,423 $ 1,796 $ 412 $ 374 $ 92,356 $ 51,946 $ 71,163 $2,490,127
Sudbury (4) 7,004 3,691 1,812 400 1,024 6,688 1,431 5,219 317,235
Constancia 2,453 1,676 1,796 408 315 3,010 1,798 2,326 105,041
San Dimas 10,491 10,273 1,796 612 322 18,450 8,851 12,162 178,891
Stillwater 3,041 3,074 1,796 329 397 5,521 3,290 4,510 223,090
Other (5) 8,918 4,967 1,812 629 - 9,000 5,878 5,855 7,591
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
78,529 75,104 $ 1,798 $ 450 $ 374 $135,025 $ 73,194 $ 101,235 $3,321,975
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,202 2,174 $ 26.21 $ 4.29 $ 3.55 $ 56,983 $ 39,940 $ 47,655 $ 342,857
Antamina 1,577 1,930 26.21 5.18 7.53 50,581 26,058 40,591 612,401
Constancia 406 346 26.21 6.02 7.56 9,072 4,372 6,988 214,428
Other (6) 2,580 2,207 25.95 9.41 6.30 57,247 22,589 39,098 612,237
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,765 6,657 $ 26.12 $ 6.33 $ 5.82 $173,883 $ 92,959 $ 134,332 $1,781,923
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 5,769 5,131 $ 2,392 $ 427 $ 442 $ 12,275 $ 7,813 $ 10,084 $ 239,118
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 1,162 132 $ 22.19 $ 4.98 $ 8.17 $ 2,936 $ 1,197 $ (966) $ 225,348
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $324,119 $ 175,163 $ 244,685 $5,568,364
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (9,735) $ (12,664)
Share based compensation (1,630) -
Donations and community
investments (606) (498)
Finance costs (1,573) (1,229)
Other (119) 1,890
Income tax 502 (30)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(13,161) $ (12,531) $ 360,048
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 162,002 $ 232,154 $5,928,412
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands gold and palladium ounces produced and sold and per
unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Rosemont gold interest.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato
and Cozamin silver interests as well as the non-operating Loma de
La Plata, Pascua-Lama and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March 31, 2021 were as
follows:
Three Months Ended March 31, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'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) 196,756 172,271 $ 1,881 $ 457 $ 1,424 $ 407 $ 1,017
Silver
equivalent
basis (5) 14,757 12,920 $ 25.09 $ 6.10 $ 18.99 $ 5.43 $ 13.56
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis,
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) (if any), non-cash fair value (gains) losses and other
one-time (income) expenses as well as the reversal of non-cash
income tax expense (recovery) which is offset by income tax expense
(recovery) recognized in the Statements of Shareholders' Equity and
OCI, respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net
earnings and adjusted net earnings per share (basic and
diluted).
Three Months Ended
March 31
(in thousands, except for per share amounts) 2022 2021
------------------------------------------------------------------------------------- ------------ --------
Net earnings $ 157,467 $162,002
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held 743 950
(Gain) loss on fair value adjustment of convertible notes receivable 1,380 (1,238)
Income tax expense (recovery) recognized in the Statement of Shareholders' Equity 793 1,568
Income tax expense (recovery) recognized in the Statement of OCI (194) (2,137)
Other (2,182) (13)
-------------------------------------------------------------------------------------- -------- -------
Adjusted net earnings $ 158,007 $161,132
-------------------------------------------------------------------------------------- -------- -------
Divided by:
Basic weighted average number of shares outstanding 450,915 449,509
Diluted weighted average number of shares outstanding 451,953 450,600
-------------------------------------------------------------------------------------- -------- -------
Equals:
Adjusted earnings per share - basic $ 0.350 $ 0.358
Adjusted earnings per share - diluted $ 0.350 $ 0.358
-------------------------------------------------------------------------------------- -------- -------
ii. Operating cash flow per share (basic and diluted) is
calculated by dividing cash generated by operating activities by
the weighted average number of shares outstanding (basic and
diluted). The Company presents operating cash flow per share as
management and certain investors use this information to evaluate
the Company's performance in comparison to other companies in the
precious metal mining industry who present results on a similar
basis.
The following table provides a reconciliation of operating cash
flow per share (basic and diluted).
Three Months Ended
March 31
(in thousands, except for per share amounts) 2022 2021
--------------------------------------------------------- ------------- ------------
Cash generated by operating activities $ 210,540 $ 232,154
---------------------------------------------------------- -------- --------
Divided by:
Basic weighted average number of shares outstanding 450,915 449,509
Diluted weighted average number of shares outstanding 451,953 450,600
--------------------------------------------------------------- -------- --------
Equals:
Operating cash flow per share - basic $ 0.467 $ 0.516
Operating cash flow per share - diluted $ 0.466 $ 0.515
---------------------------------------------------------- -------- --------
iii. Average cash cost of gold, silver and palladium on a per
ounce basis and cobalt on a per pound basis is calculated by
dividing the total cost of sales, less depletion, by the ounces or
pounds sold. In the precious metal mining industry, this is a
common performance measure but does not have any standardized
meaning prescribed by IFRS. In addition to conventional measures
prepared in accordance with IFRS, management and certain investors
use this information to evaluate the Company's performance and
ability to generate cash flow.
The following table provides a calculation of average cash cost
of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis.
Three Months Ended
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021
------------------------------------------------------------------------------- --------- ---------
Cost of sales $ 127,396 $ 148,956
Less: depletion (57,402) (70,173)
-------------------------------------------------------------------------------- -------- --------
Cash cost of sales $ 69,994 $ 78,783
-------------------------------------------------------------------------------- -------- --------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 37,133 $ 33,774
Total cash cost of silver sold 28,314 42,160
Total cash cost of palladium sold 1,603 2,191
Total cash cost of cobalt sold 2,944 658
-------------------------------------------------------------------------------- -------- --------
Total cash cost of sales $ 69,994 $ 78,783
-------------------------------------------------------------------------------- -------- --------
Divided by:
Total gold ounces sold 77,901 75,104
Total silver ounces sold 5,553 6,657
Total palladium ounces sold 4,075 5,131
Total cobalt pounds sold 511 132
-------------------------------------------------------------------------------- -------- --------
Equals:
Average cash cost of gold (per ounce) $ 477 $ 450
Average cash cost of silver (per ounce) $ 5.10 $ 6.33
Average cash cost of palladium (per ounce) $ 394 $ 427
Average cash cost of cobalt (per pound) $ 5.76 $ 4.98
-------------------------------------------------------------------------------- -------- --------
iv. Cash operating margin is calculated by subtracting the
average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis from the average realized
selling price of gold, silver and palladium on a per ounce basis
and cobalt on a per pound basis. The Company presents cash
operating margin as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis as well as to evaluate the Company's
ability to generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended
March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021
=============================================================================== ============ ========
Total sales:
Gold $ 145,675 $135,025
Silver $ 134,332 $173,883
Palladium $ 9,533 $ 12,275
Cobalt $ 17,704 $ 2,936
Divided by:
Total gold ounces sold 77,901 75,104
Total silver ounces sold 5,553 6,657
Total palladium ounces sold 4,075 5,131
Total cobalt pounds sold 511 132
-------------------------------------------------------------------------------- -------- -------
Equals:
Average realized price of gold (per ounce) $ 1,870 $ 1,798
Average realized price of silver (per ounce) $ 24.19 $ 26.12
Average realized price of palladium (per ounce) $ 2,339 $ 2,392
Average realized price of cobalt (per pound) $ 34.61 $ 22.19
Less:
Average cash cost of gold (1) (per ounce) $ (477) $ (450)
Average cash cost of silver (1) (per ounce) $ (5.10) $ (6.33)
Average cash cost of palladium (1) (per ounce) $ (394) $ (427)
Average cash cost of cobalt (1) (per pound) $ (5.76) $ (4.98)
-------------------------------------------------------------------------------- -------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,393 $ 1,348
As a percentage of realized price of gold 74% 75%
Cash operating margin per silver ounce sold $ 19.09 $ 19.79
As a percentage of realized price of silver 79% 76%
Cash operating margin per palladium ounce sold $ 1,945 $ 1,965
As a percentage of realized price of palladium 83% 82%
Cash operating margin per cobalt pound sold $ 28.85 $ 17.21
As a percentage of realized price of cobalt 83% 78%
-------------------------------------------------------------------------------- -------- -------
1) Please refer to non-IFRS measure (iii), above.
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS measures
is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
future price of commodities, the estimation of future production
from Mining Operations (including in the estimation of production,
mill throughput, grades, recoveries and exploration potential), the
estimation of mineral reserves and mineral resources (including the
estimation of reserve conversion rates) and the realization of such
estimations, the commencement, timing and achievement of
construction, expansion or improvement projects by Wheaton's PMPA
counterparties at mineral stream interests owned by Wheaton (the
"Mining Operations"), the payment of upfront cash consideration to
counterparties under PMPAs, the satisfaction of each party's
obligations in accordance with PMPAs and royalty arrangements and
the receipt by the Company of precious metals and cobalt production
in respect of the applicable Mining Operations under PMPAs or other
payments under royalty arrangements, the ability of Wheaton's PMPA
counterparties to comply with the terms of a PMPA (including as a
result of the business, mining operations and performance of
Wheaton's PMPA counterparties) and the potential impacts of such on
Wheaton, future payments by the Company in accordance with PMPAs,
the costs of future production, the estimation of produced but not
yet delivered ounces, the impact of epidemics (including the
COVID-19 virus pandemic), including the potential heightening of
other risks, future sales of common shares under the ATM program,
continued listing of the Company's common shares, any statements as
to future dividends, the ability to fund outstanding commitments
and the ability to continue to acquire accretive PMPAs, including
any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's
production mix, the ability of Wheaton's PMPA counterparties to
comply with the terms of any other obligations under agreements
with the Company, the ability to sell precious metals and cobalt
production, confidence in the Company's business structure, the
Company's assessment of taxes payable and
the impact of the CRA Settlement for years subsequent to 2010,
possible domestic audits for taxation years subsequent to 2016 and
international audits, the Company's assessment of the impact of any
tax reassessments, the Company's intention to file future tax
returns in a manner consistent with the CRA Settlement, the
Company's climate change and environmental commitments, and
assessments of the impact and resolution of various legal and tax
matters, including but not limited to audits. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "projects", "intends", "anticipates" or "does not
anticipate", or "believes", "potential", or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to 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, 2021 and Form
6-K filed March 31, 2022 both on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure"). Forward-looking
statements are based on assumptions management currently believes
to be reasonable, including (without limitation): that there will
be no material adverse change in the market price of commodities,
that the Mining Operations will continue to operate and the mining
projects will be completed in accordance with public statements and
achieve their stated production estimates, that the mineral
reserves and mineral resource estimates from Mining Operations
(including reserve conversion rates) are accurate, that each party
will satisfy their obligations in accordance with the PMPAs, that
Wheaton will continue to be able to fund or obtain funding for
outstanding commitments, that Wheaton will be able to source and
obtain accretive PMPAs, that neither Wheaton nor the Mining
Operations will suffer significant impacts as a result of an
epidemic (including the COVID-19 virus pandemic), that any outbreak
or threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs ,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement for years subsequent to
2010 is accurate (including the Company's assessment that there
will be no material change in the Company's facts or change in law
or jurisprudence for years subsequent to 2010), and such other
assumptions and factors as set out in the Disclosure. There can be
no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward-looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
For further information, please contact:
Patrick Drouin
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 May 5,
2022, titled "Wheaton Precious Metals Declares Quarterly
Dividend."
[2] Commodity price assumptions for the gold equivalent
production and sales in 2022 are $1,800 / ounce gold, $24 / ounce
silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other
metal includes palladium and cobalt.
[3] 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.
[4] Net zero includes emissions reductions in line with a 1.5
trajectory across Scopes 1, 2 and 3. Achievement of net zero may
include the use of offsets for residual emissions in 2050.
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END
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(END) Dow Jones Newswires
May 06, 2022 02:01 ET (06:01 GMT)
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