TIDMWPM
RNS Number : 8363V
Wheaton Precious Metals Corp.
12 August 2022
August 12, 2022
Vancouver, British Columbia
TSX | NYSE | LSE: WPM
Designated News Release
SECOND quarter 2022 financial results
Wheaton Precious Metals Announces Second Quarter Results for
2022
"Throughout the first half of 2022, we have focused on
optimizing our portfolio and further enhancing our financial
flexibility in order to ensure that we are well positioned to
respond to accretive growth opportunities and continue creating
value for our shareholders," said Randy Smallwood, President and
Chief Executive Officer of Wheaton Precious Metals. "While not
without its challenges, our diverse portfolio once again delivered
strong operating cash flow and an attractive dividend yield,
highlighting the resiliency of the streaming model to the
inflationary pressures currently being felt across the global
economy. Furthermore, we are pleased with our continued progress
and leadership on sustainability initiatives as highlighted in our
third annual Sustainability Report."
Second Quarter 2022 Highlights:
-- Over $300 million in revenue and $206 million in operating
cash flow, resulting in a cash balance of $449 million and no debt
as at June 30, 2022.
-- $149 million in adjusted net earnings(1) .
-- Announced the proposed termination of the Keno Hill precious
metal purchase agreement ("PMPA") for $135 million.
-- Subsequent to the quarter, Wheaton added a
sustainability-linked element in connection with the extension to
its existing undrawn US$2 billion revolving credit facility.
-- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights.
-- Declared quarterly dividend (1) of $0.15 per common share,
consistent with the comparable period in 2021 .
Operational Overview
(all figures in US dollars
unless otherwise noted) Q2 2022 Q2 2021 Change YTD 2022 YTD 2021 Change
------------------------------ ------- --------- ------- -------- ----------- -------
Units produced
Gold ounces 68,365 90,072 (24.1)% 146,419 168,601 (13.2)%
Silver ounces 6,537 6,529 0.1 % 12,770 13,294 (3.9)%
Palladium ounces 3,899 5,301 (26.4)% 8,387 11,070 (24.2)%
Cobalt pounds 136 380 (64.1)% 371 1,542 (76.0)%
Gold equivalent ounces (2) 162,569 190,272 (14.6)% 333,265 387,028 (13.9)%
Units sold
Gold ounces 84,337 90,090 (6.4)% 162,238 165,194 (1.8)%
Silver ounces 5,848 5,600 4.4 % 11,401 12,257 (7.0)%
Palladium ounces 3,378 3,869 (12.7)% 7,453 9,000 (17.2)%
Cobalt pounds 225 395 (43.0)% 736 527 39.7 %
Gold equivalent ounces (2) 170,371 176,502 (3.5)% 336,436 348,773 (3.5)%
------------------------------- ------- --------- ------- -------- ----------- -------
Revenue $302,922 $ 330,393 (8.3)% $ 610,166 $ 654,512 (6.8)%
Net earnings $149,074 $ 166,124 (10.3)% $ 306,542 $ 328,126 (6.6)%
Per share $ 0.330 $ 0.369 (10.6)% $ 0.679 $ 0.729 (6.9)%
Adjusted net earnings (1) $149,285 $ 161,626 (7.6)% $ 307,292 $ 322,760 (4.8)%
Per share (1) $ 0.331 $ 0.359 (7.8)% $ 0.681 $ 0.718 (5.1)%
Operating cash flows $206,359 $ 216,415 (4.6)% $ 416,899 $ 448,569 (7.1)%
Per share (1) $ 0.457 $ 0.481 (5.0)% $ 0.924 $ 0.997 (7.3)%
------------------------------- ------- --------- ------- -------- ----------- -------
All amounts in thousands except gold, palladium & gold
equivalent ounces, and per share amounts. [1] [2]
Revised Annual and Long-Term Production Guidance
Given the proposed termination of the Keno Hill PMPA, lower
production from Stillwater due to severe weather and flooding in
the state of Montana in June as well as lower than expected
production at Salobo, Wheaton is lowering production guidance.
Wheaton's estimated attributable production for 2022 is now
forecast to be approximately 640,000 to 680,000 gold equivalent
ounces (2) ("GEOs"). For the five-year period ending December 31,
2026, average annual production is expected to increase to 820,000
GEO's (2) , primarily due to anticipated continued production
growth from Salobo, Stillwater, Constancia, and Voisey's Bay as
well as incremental production ounces from Marmato, Blackwater,
Toroparu, Marathon, the Copper World Complex (formerly referred to
as Rosemont) and Santo Domingo towards the latter end of the
forecast period. Average forecast production for the ten-year
period ending December 31, 2031, is expected to now be 870,000
GEO's (2) and includes incremental production from the Kutcho
project and the Victor mine in Sudbury. Vale S.A. has indicated the
potential for an additional expansion after the completion of the
current Salobo III expansion, but Wheaton does not currently
include this in its forecast.
2022 Production Guidance Forecast
Original Guidance Updated Guidance
Gold Ounces 350,000 to 380,000 300,000 to 320,000
------------------- -------------------
Silver Ounces ('000s) 23,000 to 24,500 22,500 to 24,000
------------------- -------------------
Other Metals (2) (GEOs) 44,000 to 48,000 35,000 to 40,000
------------------- -------------------
Total GEOs (2) 700,000 to 760,000 640,000 to 680,000
------------------- -------------------
Long-Term Forecast
------------------- -------------------
5-Year Annual Average (GEOs)
(2) 850,000 820,000
------------------- -------------------
10-Year Annual Average
(GEOs) (2) 910,000 870,000
------------------- -------------------
Financial Review
Revenues
Revenue was $303 million in the second quarter of 2022
representing an 8% decrease from the second quarter of 2021 due
primarily to a 5% decrease in the average realized gold
equivalent(2) price; and a 3% decrease in the number of GEOs(2)
sold.
Revenue was $610 million in the six months ended June 30, 2022,
representing a 7% decrease from the comparable period of the
previous year due primarily to a 4% decrease in the number of gold
equivalent(2) ounces sold; and a 3% decrease in the average
realized gold equivalent(2) price.
Cash Costs and Margin
Average cash costs(1) in the second quarter of 2022 were $440
per GEO(2) as compared to $444 in the second quarter of 2021. This
resulted in a cash operating margin(1) of $1,338 per GEO(2) sold, a
decrease of 6% as compared with the second quarter of 2021.
Average cash costs(1) for the six months ended June 30, 2022
were $431 per GEO(2) as compared to $451 in the comparable period
of the previous year. This resulted in a cash operating margin(1)
of $1,383 per GEO(2) sold, a decrease of 3% as compared with the
comparable period of the previous year.
Balance Sheet (at June 30, 2022 )
-- Approximately $449 million of cash on hand.
-- Subsequent to the quarter, the Company extended its existing
undrawn $2 billion revolving term loan (the "Revolving Facility")
with its maturity date now July 18, 2027 . As part of the
extension, Wheaton added a sustainability-linked element which
impacts the interest rate paid on drawn amounts and standby
fees.
-- The Company is well positioned to fund all outstanding
commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream
interests.
Second Quarter Asset Highlights
Salobo: In the second quarter of 2022, Salobo produced 34,100
ounces of attributable gold, a decrease of approximately 39%
relative to the second quarter of 2021, primarily due to lower
throughput and grades. According to Vale S.A.'s Production and
Sales 2Q22 report ("Vale"), mine movement saw continued improvement
throughout the quarter, but concentrate production was negatively
impacted by plant performance due to delays in ramp-up after
planned and corrective maintenance. Vale expects further
maintenance work to continue in the second half of 2022.
As per Vale's Second Quarter 2022 Performance Report, Vale
outlines the Salobo lll Project progress including the start of
commissioning activities at the primary crushing and stockpile
areas. In addition, Vale notes that the remediation work for the
January 2022 landslide has been completed. Vale reports that
physical completion of the Salobo III mine expansion was 95% at the
end of the second quarter.
Antamina: In the second quarter of 2022, Antamina produced 1.4
million ounces of attributable silver, a decrease of approximately
11% relative to the second quarter of 2021, primarily due to lower
grades as per the mine plan .
Constancia: In the second quarter of 2022, Constancia produced
600,000 ounces of attributable silver and 8,000 ounces of
attributable gold, an increase of approximately 25% and 46%,
respectively, relative to the second quarter of 2021, with the
increases being primarily due to the mining of higher-grade
material associated with the Pampacancha deposit.
Sudbury: In the second quarter of 2022, Vale's Sudbury mines
produced 7,200 ounces of attributable gold, an increase of
approximately 58% relative to the second quarter of 2021, primarily
due to higher throughput as during 2021, operations at the mine
were suspended due to a labour dispute which lasted from June 1to
August 9, 2021.
Stillwater: In the second quarter of 2022, the Stillwater mines
produced 2,200 ounces of attributable gold and 3,900 ounces of
attributable palladium, a decrease of approximately 27% for gold
and 26% for palladium relative to the second quarter of 2021. As
per Sibanye-Stillwater Limited's news release dated August 11,
2022, regional floods impacted the Stillwater operations on June
13, 2022, including damage to bridges and the access road to the
Stillwater mine. Operations at the Stillwater mine, which accounts
for 60% of the mined production from the Stillwater operations,
were suspended for seven weeks, but resumed on July 29, 2022.
Access to the East Boulder mine and the Columbus metallurgical
facilities remains intact and both facilities continued operating
during the flooding events.
San Dimas: In the second quarter of 2022, San Dimas produced
10,000 ounces of attributable gold, a decrease of approximately 12%
relative to the second quarter of 2021 , primarily the result of
mining lower grade material . According to First Majestic Silver
Corp.'s ("First Majestic") Q2 production report, underground
development for stope preparation and ventilation within the Perez
vein is progressing and forecast to be ready for initial production
in August. Furthermore, First Majestic reports that improving
dilution controls at San Dimas and prioritizing long-hole stoping
of the Jessica and Regina veins is anticipated to improve ore grade
and overall production in the second half of 2022.
Other Gold: In the second quarter of 2022, total Other Gold
attributable production was 6,800 ounces, a decrease of
approximately 32% relative to the second quarter of 2021, primarily
due to the lower throughput and grades at 777, which closed as of
June 2022.
Voisey's Bay: In the second quarter of 2022, the Voisey's Bay
mine produced 136,000pounds of attributable cobalt, a decrease of
approximately 64% relative to the second quarter of 2021, primarily
due to lower throughput resulting from a scheduled maintenance shut
down coupled with lower grades during the ongoing transitional
period between the depletion of the Ovoid open-pit mine and ramp-up
to full production of the Voisey's Bay underground project. As per
Vale's Second Quarter 2022 Performance Report, physical completion
of the Voisey's Bay underground mine extension was 74% at the end
of the second quarter. Civil works continue for the balance of
facilities, with civil completion planned by the end of 2022.
Development Assets
Copper World Complex (formerly referred to as Rosemont): On June
8, 2022, Hudbay Minerals Inc. ("Hudbay") announced the results of
the preliminary economic assessment ("PEA") of its 100%-owned
Copper World Complex in Arizona, which includes the recently
discovered Copper World deposits along with the Rosemont deposit.
The PEA highlights a two-phase mine plan, with Phase I reflecting a
standalone operation on private land and patented mining claims
over a 16-year mine life. Phase II expands mining activities onto
federal land and extends the mine life to 44 years. In addition,
Hudbay is evaluating several opportunities to optimize the project,
including the potential to expand Phase I beyond 16 years with
additions to the company's private land package for tailings and
waste rock storage and the potential to accelerate Phase II if
federal permits are received earlier than as outlined in the PEA.
As per the PEA, Hudbay anticipates the Phase 1 feasibility study
and permits should be completed by the end of 2023, with a
sanctioning decision by Hudbay in 2024, and construction expected
to take three years.
Fenix: On June 28, 2022, Rio2 Limited ("Rio2") provided an
update on the Fenix Gold environmental assessment process. The
Environmental Assessment Service ("SEA") published the
Consolidation Evaluation Report with the recommendation to reject
the Environmental Impact Assessment ("EIA") as it has been alleged
that Fenix Gold has not provided enough information during the
evaluation process to eliminate adverse impacts over the
chinchilla, guanaco, and vicuña. On July 5, 2022, Rio2 announced
that the Regional Evaluation Commission has voted for not approving
the EIA for its Fenix Gold project in Chile. Following this
decision, Rio2 provided a further update on July 11, 2022, stating
that Rio2 along with its Chilean environmental and legal advisor,
are currently evaluating options to continue to advance the
project.
Portfolio Optimization
Keno Hill: On July 5, 2022, Hecla Mining Company ("Hecla")
announced a definitive agreement for Hecla to acquire all of the
outstanding common shares of Alexco Resource Corp. ("Alexco"). In
conjunction with this agreement, the Company has entered into an
agreement with Hecla to terminate the Keno Hill PMPA in exchange
for $135 million of Hecla common stock, conditional upon the
completion of Hecla's acquisition of Alexco and other customary
approvals.
Produced But Not Yet Delivered [3] and Inventory
As at June 30, 2022 , payable ounces and pounds attributable to
the Company produced but not yet delivered amounted to:
-- 61,200 payable gold ounces, a decrease of 20,200 ounces
during Q2 2022 , primarily due to decreases at the Salobo and
Sudbury mines.
-- 3.7 million payable silver ounces, a decrease of 0.2 million
ounces during Q2 2022 primarily due to decreases at the Peñasquito
and Yauliyacu mines .
-- 6,300 payable palladium ounces, an increase of 700 ounces during Q2 2022.
-- 280,000 payable cobalt pounds, a decrease of 270 thousand pounds during Q2 2022.
As of June 30, 2022, approximately 582,000 pounds of cobalt were
held in inventory by Wheaton, an increase of 172,000 pounds during
Q2 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.
Sustainability
Recognized as One of the Best 50 Corporate Citizens in Canada:
Wheaton was named to the Corporate Knights' 2022 list of the Best
50 Corporate Citizens in Canada . Corporate Knights has been
producing global corporate and fund rankings for 20 years. Wheaton
was selected from a pool of 332 Canadian companies - each evaluated
on a set of 24 environmental, social and governance indicators,
relative to their industry peers and using publicly available
information. The Best 50 Corporate Citizens sets the standard for
sustainability leadership in Canada.
Sustainability-Linked Revolving Credit Facility: Wheaton has
added a sustainability-linked element in connection with the
extension to its existing undrawn US$2 billion revolving credit
facility, underscoring Wheaton's commitment to sustainability
initiatives. Under the renewed revolving credit facility, the
interest rate paid on drawn amounts and standby fees will be
adjusted based upon Wheaton's performance in three
sustainability-related areas including climate change, diversity
and overall sustainability performance.
Published third Annual Sustainability Report : On May 24, 2022,
Wheaton published its third annual Sustainability Report.
Highlights of the report include establishment of a formal ESG
strategy with targets and commitments across several material ESG
topics and significant enhancement of disclosure around climate
change (including inaugural reporting of our Scope 3 financed
emissions associated with our Mining Partners).
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, August 12,
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: 06939369
Live webcast: Webcast URL
The accompanying slideshow will also be available in PDF format
on the 'Events' page of the Wheaton Precious Metals website before
the conference call.
The conference call will be recorded and available until August
19, 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: 939369 #
Archived webcast: Webcast URL
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and have
been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations 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
.
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.
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Six Months Ended
June 30 June 30
(US dollars and shares in thousands, except per
share amounts - unaudited) 2022 2021 2022 2021
-------------------------------------------------- ------------ ------------ ----------------- -----
Sales $ 302,922 $ 330,393 $ 610,166 $ 654,512
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Cost of sales
Cost of sales, excluding depletion $ 74,943 $ 78,445 $ 144,936 $ 157,228
Depletion 65,682 70,308 123,084 140,482
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Total cost of sales $ 140,625 $ 148,753 $ 268,020 $ 297,710
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Gross margin $ 162,297 $ 181,640 $ 342,146 $ 356,802
General and administrative expenses 9,685 8,904 19,089 18,639
Share based compensation 1,608 7,978 11,509 9,608
Donations and community investments 1,160 1,583 1,973 2,188
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Earnings from operations $ 149,844 $ 163,175 $ 309,575 $ 326,367
Other (income) expense (820) (3,420) (650) (3,301)
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Earnings before finance costs and income taxes $ 150,664 $ 166,595 $ 310,225 $ 329,668
Finance costs 1,389 1,357 2,811 2,930
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Earnings before income taxes $ 149,275 $ 165,238 $ 307,414 $ 326,738
Income tax (expense) recovery (201) 886 (872) 1,388
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Net earnings $ 149,074 $ 166,124 $ 306,542 $ 328,126
-------------------------------------------------- -------- -------- --- ------------ ----- --------
Basic earnings per share $ 0.330 $ 0.369 $ 0.679 $ 0.729
Diluted earnings per share $ 0.330 $ 0.368 $ 0.678 $ 0.728
Weighted average number of shares outstanding
Basic 451,524 450,088 451,221 449,800
Diluted 452,359 451,203 452,123 450,869
================================================== ======== ======== === ============ ===== ========
Condensed Interim Consolidated Balance Sheets
As at As at
June 30 December 31
(US dollars in thousands - unaudited) 2022 2021
------------------------------------------------- --------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 448,626 $ 226,045
Accounts receivable 13,550 11,577
Other 16,160 12,102
------------------------------------------------------ ---------- --- ----------
Total current assets $ 478,336 $ 249,724
------------------------------------------------- --- ---------- --- ----------
Non-current assets
Mineral stream interests $ 5,841,478 $ 5,905,797
Early deposit mineral stream interests 45,342 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 60,799 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 4,814 5,509
Other 11,320 15,211
------------------------------------------------------ ---------- --- ----------
Total non-current assets $ 5,970,359 $ 6,046,427
------------------------------------------------- --- ---------- --- ----------
Total assets $ 6,448,695 $ 6,296,151
------------------------------------------------- --- ---------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 9,546 $ 13,935
Current portion of performance share units 11,989 14,807
Current portion of lease liabilities 824 813
Other 97 136
Total current liabilities $ 22,456 $ 29,691
------------------------------------------------- --- ---------- --- ----------
Non-current liabilities
Lease liabilities 1,619 2,060
Deferred income taxes 236 100
Performance share units 4,517 11,498
Pension liability 3,066 2,685
------------------------------------------------------ ---------- --- ----------
Total non-current liabilities $ 9,438 $ 16,343
------------------------------------------------- --- ---------- --- ----------
Total liabilities $ 31,894 $ 46,034
------------------------------------------------- --- ---------- --- ----------
Shareholders' equity
Issued capital $ 3,729,300 $ 3,698,998
Reserves 12,273 47,036
Retained earnings 2,675,228 2,504,083
------------------------------------------------------ ---------- --- ----------
Total shareholders' equity $ 6,416,801 $ 6,250,117
------------------------------------------------- --- ---------- --- ----------
Total liabilities and shareholders' equity $ 6,448,695 $ 6,296,151
------------------------------------------------- --- ---------- --- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended
June 30 June 30
(US dollars in thousands - unaudited) 2022 2021 2022 2021
------------------------------------------------------------ ---------- ---------- ---------- ----------
Operating activities
Net earnings $ 149,074 $ 166,124 $ 306,542 $ 328,126
Adjustments for
Depreciation and depletion 66,080 70,775 123,875 141,424
Interest expense 24 32 50 294
Equity settled stock based compensation 1,498 1,307 2,839 2,632
Performance share units (18,137) (10,258) (9,577) (9,952)
Pension expense 271 265 429 416
Income tax expense (recovery) 201 (886) 872 (1,388)
Loss (gain) on fair value adjustment of share purchase
warrants held 154 194 897 1,145
Fair value (gain) loss on convertible note receivable - (3,388) 1,380 (4,626)
Investment income recognized in net earnings (549) (95) (743) (97)
Other 42 103 (1,472) 694
Change in non-cash working capital 7,365 (7,803) (8,553) (9,775)
============================================================ ========= ========= ========= =========
Cash generated from operations before income taxes and
interest $ 206,023 $ 216,370 $ 416,539 $ 448,893
Income taxes recovered (paid) (80) (21) (112) (51)
Interest paid (25) (29) (51) (370)
Interest received 441 95 523 97
============================================================ ========= ========= ========= =========
Cash generated from operating activities $ 206,359 $ 216,415 $ 416,899 $ 448,569
============================================================ ========= ========= ========= =========
Financing activities
Bank debt repaid $ - $ - $ - $(195,000)
Credit facility extension fees (2) (1,673) (2) (1,673)
Share purchase options exercised 1,777 743 7,549 5,536
Lease payments (202) (173) (402) (387)
Dividends paid (117,117) (103,549) (117,117) (103,549)
============================================================ ========= ========= ========= =========
Cash (used for) generated from financing activities $(115,544) $(104,652) $(109,972) $(295,073)
============================================================ ========= ========= ========= =========
Investing activities
Mineral stream interests $ (15,549) $ (64,771) $ (60,801) $(215,790)
Early deposit mineral stream interests - - (750) (750)
Mineral royalty interest - (10) - (3,571)
Acquisition of long-term investments (2,633) (2,377) (22,768) (2,377)
Proceeds on disposal of long-term investments - - - 112,188
Dividends received 108 - 220 -
Other (89) (386) (125) (520)
============================================================ ========= ========= ========= =========
Cash (used for) generated from investing activities $ (18,163) $ (67,544) $ (84,224) $(110,820)
============================================================ ========= ========= ========= =========
Effect of exchange rate changes on cash and cash equivalents $ (189) $ 65 $ (122) $ 87
============================================================ ========= ========= ========= =========
Increase in cash and cash equivalents $ 72,463 $ 44,284 $ 222,581 $ 42,763
Cash and cash equivalents, beginning of period 376,163 191,162 226,045 192,683
============================================================ ========= ========= ========= =========
Cash and cash equivalents, end of period $ 448,626 $ 235,446 $ 448,626 $ 235,446
------------------------------------------------------------ --------- --------- --------- ---------
Summary of Units Produced
Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Gold ounces
produced (2)
Salobo 34,129 44,883 48,235 55,205 55,590 46,622 62,854 63,408
Sudbury (3) 7,212 5,362 4,379 148 4,563 7,004 6,659 3,798
Constancia 8,042 6,311 9,857 8,533 5,525 2,453 3,929 3,780
San Dimas (4) 10,044 10,461 13,714 11,936 11,478 10,491 11,652 9,228
Stillwater (5) 2,171 2,497 2,664 2,949 2,962 3,041 3,290 3,176
Other
Minto 2,480 4,060 3,506 1,703 3,206 2,638 789 1,832
777 (6) 3,509 4,003 4,462 4,717 5,035 6,280 2,866 5,278
Marmato 778 477 479 433 1,713 - - -
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total Other 6,767 8,540 8,447 6,853 9,954 8,918 3,655 7,110
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total gold ounces
produced 68,365 78,054 87,296 85,624 90,072 78,529 92,039 90,500
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Silver ounces
produced (2)
Peñasquito 2,089 2,219 2,145 2,180 2,026 2,202 2,014 1,992
Antamina 1,379 1,268 1,366 1,548 1,558 1,577 1,930 1,516
Constancia 584 506 578 521 468 406 478 430
Other
Los Filos
(7) 23 42 37 17 26 31 6 17
Zinkgruvan 739 577 482 658 457 420 515 498
Yauliyacu 756 637 382 372 629 737 454 679
Stratoni
(8) - - 129 18 164 165 185 156
Minto 25 45 44 25 33 21 16 15
Neves-Corvo 345 344 522 362 408 345 420 281
Aljustrel 292 287 325 314 400 474 440 348
Cozamin 169 186 213 199 183 230 - -
Marmato 8 11 7 10 39 - - -
Keno Hill
(9) 48 20 30 44 55 27 - -
777 (6) 80 91 96 81 83 130 51 96
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total Other 2,485 2,240 2,267 2,100 2,477 2,580 2,087 2,090
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total silver
ounces produced 6,537 6,233 6,356 6,349 6,529 6,765 6,509 6,028
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 3,899 4,488 4,733 5,105 5,301 5,769 5,672 5,444
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Cobalt pounds
produced (2)
Voisey's Bay 136 234 381 370 380 1,162 (1) - -
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
GEOs produced (11) 162,569 170,696 184,551 183,012 190,272 196,756 185,436 177,230
SEOs produced (11) 12,193 12,802 13,841 13,726 14,270 14,757 13,908 13,292
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Average payable
rate (2)
Gold 95.1% 95.2% 96.0% 96.0% 95.8% 95.0% 95.2% 95.3%
Silver 85.5% 86.2% 86.0% 86.6% 86.9% 86.6% 86.3% 86.1%
Palladium 94.6% 92.7% 92.2% 94.5% 95.0% 91.6% 93.6% 94.0%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% n.a. n.a.
GEO (11) 90.2% 90.5% 91.4% 91.3% 91.8% 90.7% 91.2% 91.2%
------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures and payable
rates are based on information provided by the operators of the
mining operations to which the mineral stream interests relate or
management estimates in those situations where other information is
not available. Certain production figures and payable rates may be
updated in future periods as additional information is
received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests. Operations at the Sudbury mines were
suspended from June 1, 2021 to August 9, 2021 as a result of a
labour disruption by unionized employees.
4) Under the terms of the San Dimas PMPA, the Company is
entitled to an amount equal to 25% of the payable gold production
plus an additional amount of gold equal to 25% of the payable
silver production converted to gold at a fixed gold to silver
exchange ratio of 70:1 from the San Dimas mine. If the average gold
to silver price ratio decreases to less than 50:1 or increases to
more than 90:1 for a period of 6 months or more, then the "70"
shall be revised to "50" or "90", as the case may be, until such
time as the average gold to silver price ratio is between 50:1 to
90:1 for a period of 6 months or more in which event the "70" shall
be reinstated. Effective April 1, 2020, the fixed gold to silver
exchange ratio was revised to 90:1, with the 70:1 ratio being
reinstated on October 15, 2020. For reference, attributable silver
production from prior periods is as follows: Q2-2022 - 382,000
ounces; Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021
- 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000
ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) Operations at 777 were temporarily suspended from October 11,
2020 to November 25, 2020 as a result of an incident that occurred
on October 9th during routine maintenance of the hoist rope and
skip. On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have commenced.
7) Operations at Los Filos were suspended from September 3, 2020
to December 23, 2020 as the result of an illegal road blockade by
members of the nearby Carrizalillo community and had been
temporarily suspended from June 22, 2021 to July 26, 2021 as the
result of illegal blockades by a group of unionized employees and
members of the Xochipala community.
8) The Stratoni mine was placed into care and maintenance during Q4-2021.
9) On June 22, 2022, Alexco elected to temporarily suspend
milling operations for five to six months to focus on advancing
underground development at Keno Hill.
10) Effective January 1, 2021, the Company was entitled to
cobalt production from the Voisey's Bay mine. As per the Voisey's
Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at
the Long Harbour Processing Plant as of January 1, 2021, resulting
in reported production in the first quarter of 2021 including some
material produced at the Voisey's Bay mine in the previous
quarter.
11) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Summary of Units Sold
Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Gold ounces sold
Salobo 48,515 42,513 47,171 35,185 57,296 51,423 53,197 59,584
Sudbury (2) 7,916 3,712 965 1,915 6,945 3,691 7,620 7,858
Constancia 7,431 10,494 6,196 8,159 2,321 1,676 3,853 4,112
San Dimas 10,633 10,070 15,182 11,346 11,214 10,273 11,529 9,687
Stillwater (3) 2,626 2,628 2,933 2,820 2,574 3,074 3,069 3,015
Other
Minto 2,806 3,695 2,462 1,907 2,359 2,390 1,540 -
777 3,629 4,388 4,290 5,879 5,694 2,577 5,435 5,845
Marmato 781 401 423 438 1,687 - - -
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total Other 7,216 8,484 7,175 8,224 9,740 4,967 6,975 5,845
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total gold ounces
sold 84,337 77,901 79,622 67,649 90,090 75,104 86,243 90,101
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Silver ounces sold
Peñasquito 2,096 2,188 1,818 2,210 1,844 2,174 1,417 1,799
Antamina 1,177 1,468 1,297 1,502 1,499 1,930 1,669 1,090
Constancia 494 644 351 484 295 346 442 415
Other
Los Filos 41 42 17 12 42 27 - 19
Zinkgruvan 650 355 346 354 355 293 326 492
Yauliyacu 817 44 551 182 601 1,014 15 580
Stratoni (2) 133 42 41 167 117 169 134
Minto 21 31 27 24 29 26 20 -
Neves-Corvo 167 204 259 193 215 239 145 201
Aljustrel 123 145 133 155 208 257 280 148
Cozamin 148 177 174 170 168 173 - -
Marmato 11 8 8 10 35 - - -
Keno Hill 30 27 24 51 33 12 - -
777 75 87 69 99 109 49 93 121
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total Other 2,081 1,253 1,650 1,291 1,962 2,207 1,048 1,695
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total silver
ounces sold 5,848 5,553 5,116 5,487 5,600 6,657 4,576 4,999
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Palladium ounces
sold
Stillwater (3) 3,378 4,075 4,641 5,703 3,869 5,131 4,591 5,546
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Cobalt pounds sold
Voisey's Bay 225 511 228 131 395 132 - -
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
GEOs sold (4) 170,371 166,065 157,439 149,862 176,502 172,271 152,613 163,218
SEOs sold (4) 12,778 12,455 11,808 11,240 13,238 12,920 11,446 12,241
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Cumulative payable
units PBND (5)
Gold ounces 61,198 81,365 84,989 80,819 66,238 70,072 70,555 75,750
Silver ounces 3,684 3,920 4,200 3,845 3,802 3,738 4,486 3,437
Palladium ounces 6,267 5,535 5,629 5,619 6,822 5,373 5,597 4,616
Cobalt pounds 280 550 596 637 777 820 - -
GEO (4) 122,758 150,170 158,477 150,317 139,145 141,206 136,894 126,968
SEO (4) 9,207 11,263 11,886 11,274 10,436 10,590 10,267 9,523
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Inventory on hand
Cobalt pounds 582 410 657 488 134 132 - -
------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended June 30, 2022
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 34,129 48,515 $ 1,872 $ 416 $ 334 $ 90,842 $ 54,462 $ 70,649 $2,407,579
Sudbury (4) 7,212 7,916 1,867 400 1,090 14,780 2,983 11,613 294,485
Constancia 8,042 7,431 1,872 412 271 13,915 8,838 10,686 98,930
San Dimas 10,044 10,633 1,872 624 260 19,910 10,520 13,280 161,350
Stillwater 2,171 2,626 1,872 340 429 4,917 2,897 4,024 217,530
Other (5) 6,767 7,216 1,868 727 57 13,478 7,823 8,529 419,696
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
68,365 84,337 $ 1,872 $ 465 $ 369 $157,842 $ 87,523 $ 118,781 $3,599,570
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,089 2,096 $ 22.47 $ 4.36 $ 3.57 $ 47,102 $ 30,488 $ 37,963 $ 306,742
Antamina 1,379 1,177 22.47 4.42 7.06 26,448 12,934 21,242 561,383
Constancia 584 494 22.47 6.08 6.35 11,101 4,958 7,784 198,672
Other (6) 2,485 2,081 21.91 7.44 5.74 45,577 18,148 30,198 577,944
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,537 5,848 $ 22.27 $ 5.61 $ 5.28 $130,228 $ 66,528 $ 97,187 $1,644,741
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 3,899 3,378 $ 2,132 $ 408 $ 399 $ 7,203 $ 4,477 $ 5,825 $ 229,855
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,852
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 136 225 $ 34.01 $ 6.86 $ 10.40 $ 7,649 $ 3,769 $ 13,797 $ 362,460
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $302,922 $ 162,297 $ 235,590 $5,841,478
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (9,685) $ (8,379)
Share based compensation (1,608) (18,161)
Donations and community
investments (1,160) (1,135)
Finance costs (1,389) (1,011)
Other 820 (465)
Income tax (201) (80)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(13,223) $ (29,231) $ 607,217
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 149,074 $ 206,359 $6,448,695
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
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 Copper World Complex
(formerly referred to as Rosemont), Santo Domingo, Blackwater,
Fenix, Goose, Marathon and Curipamba gold interests. On June 22,
2022, Hudbay announced that mining activities at 777 have concluded
and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777
silver interests as well as the non-operating Loma de La Plata,
Stratoni, Pascua-Lama, Copper World Complex (formerly referred to
as Rosemont), Blackwater and Curipamba silver interests. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On June 22,
2022, Alexco elected to temporarily suspend milling operations for
five to six months to focus on advancing underground development at
Keno Hill.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended June 30, 2022 were as
follows:
Three Months Ended June 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 162,569 170,371 $ 1,778 $ 440 $ 1,338 $ 386 $ 952
Silver
equivalent
basis (5) 12,193 12,778 $ 23.71 $ 5.87 $ 17.84 $ 5.14 $ 12.70
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Three Months Ended June 30, 2021
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 55,590 57,296 $ 1,798 $ 412 $ 374 $103,039 $ 58,015 $ 79,426 $2,468,716
Sudbury (4) 4,563 6,945 1,817 400 1,024 12,618 2,725 10,262 310,120
Constancia 5,525 2,321 1,798 408 315 4,174 2,496 3,227 104,310
San Dimas 11,478 11,214 1,798 618 322 20,167 9,627 13,242 175,275
Stillwater 2,962 2,574 1,798 326 397 4,629 2,769 3,791 222,069
Other (5) 9,954 9,740 1,814 559 125 17,666 11,007 12,238 65,296
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
90,072 90,090 $ 1,801 $ 450 $ 390 $162,293 $ 86,639 $ 122,186 $3,345,786
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,026 1,844 $ 26.65 $ 4.29 $ 3.55 $ 49,133 $ 34,682 $ 41,223 $ 336,314
Antamina 1,558 1,499 26.63 5.39 7.53 39,903 20,545 31,013 601,117
Constancia 468 295 26.65 6.02 7.56 7,865 3,858 6,088 212,197
Other (6) 2,477 1,962 26.78 8.39 5.20 52,554 25,893 34,132 608,588
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,529 5,600 $ 26.69 $ 6.11 $ 5.40 $149,455 $ 84,978 $ 112,456 $1,758,216
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 5,301 3,869 $ 2,797 $ 503 $ 442 $ 10,822 $ 7,164 $ 8,876 $ 237,407
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 380 395 $ 19.82 $ 4.41 $ 8.17 $ 7,823 $ 2,859 $ 2,052 $ 222,106
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $330,393 $ 181,640 $ 245,570 $5,563,515
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (8,904) $ (8,573)
Share based compensation (7,978) (16,926)
Donations and community
investments (1,583) (1,075)
Finance costs (1,357) (978)
Other 3,420 (1,582)
Income tax 886 (21)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(15,516) $ (29,155) $ 417,951
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 166,124 $ 216,415 $5,981,466
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Copper World Complex gold
interest (formerly referred to as Rosemont). On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato
and Cozamin silver interests as well as the non-operating Loma de
La Plata, Copper World Complex (formerly referred to as Rosemont)
and Pascua-Lama silver interests. The Stratoni mine was placed into
care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced. On June 22, 2022, Alexco elected to
temporarily suspend milling operations for five to six months to
focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended June 30, 2021 were as
follows:
Three Months Ended June 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce)
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
Gold equivalent
basis (5) 190,272 176,502 $ 1,872 $ 444 $ 1,428 $ 398 $ 1,030
Silver
equivalent
basis (5) 14,270 13,238 $ 24.96 $ 5.93 $ 19.03 $ 5.31 $ 13.72
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Six Months Ended June 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 79,012 91,028 $ 1,872 $ 416 $ 334 $170,407 $ 102,147 $ 132,517 $2,407,579
Sudbury (4) 12,574 11,628 1,865 400 1,091 21,689 4,354 17,038 294,485
Constancia 14,353 17,925 1,872 412 271 33,555 21,308 26,168 98,930
San Dimas 20,505 20,703 1,872 621 260 38,756 20,528 25,901 161,350
Stillwater 4,668 5,254 1,872 335 429 9,835 5,823 8,078 217,530
Other (5) 15,307 15,700 1,865 750 40 29,275 16,871 17,351 419,696
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
146,419 162,238 $ 1,871 $ 470 $ 346 $303,517 $ 171,031 $ 227,053 $3,599,570
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 4,308 4,284 $ 23.30 $ 4.36 $ 3.57 $ 99,829 $ 65,874 $ 81,151 $ 306,742
Antamina 2,647 2,645 23.37 4.71 7.06 61,806 30,680 49,001 561,383
Constancia 1,090 1,138 23.39 6.08 6.34 26,614 12,484 19,697 198,672
Other (6) 4,725 3,334 22.89 6.93 4.88 76,311 36,946 54,073 577,944
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
12,770 11,401 $ 23.21 $ 5.36 $ 5.04 $264,560 $ 145,984 $ 203,922 $1,644,741
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 8,387 7,453 $ 2,246 $ 400 $ 399 $ 16,736 $ 10,781 $ 13,755 $ 229,855
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,852
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 371 736 $ 34.43 $ 6.09 $ 8.85 $ 25,353 $ 14,350 $ 17,269 $ 362,460
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Operating results $610,166 $ 342,146 $ 461,999 $5,841,478
------------------------------- ------- -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(19,089) $ (23,506)
Share based compensation (11,509) (18,161)
Donations and community
investments (1,973) (1,565)
Finance costs (2,811) (2,088)
Other 650 333
Income tax (872) (113)
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Total other $(35,604) $ (45,100) $ 607,217
---------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 306,542 $ 416,899 $6,448,695
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
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 Copper World Complex
(formerly referred to as Rosemont), Santo Domingo, Blackwater,
Fenix, Goose, Marathon and Curipamba gold interests. On June 22,
2022, Hudbay announced that mining activities at 777 have concluded
and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777
silver interests as well as the non-operating Loma de La Plata,
Stratoni, Pascua-Lama, Copper World Complex (formerly referred to
as Rosemont), Blackwater and Curipamba silver interests. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On June 22,
2022, Alexco elected to temporarily suspend milling operations for
five to six months to focus on advancing underground development at
Keno Hill.
On a gold equivalent and silver equivalent basis, results for
the Company for the six months ended June 30, 2022 were as
follows:
Six Months Ended June 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 333,265 336,436 $ 1,814 $ 431 $ 1,383 $ 366 $ 1,017
Silver equivalent
basis (5) 24,995 25,233 $ 24.18 $ 5.74 $ 18.44 $ 4.88 $ 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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Six Months Ended June 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 102,212 108,719 $ 1,797 $ 412 $ 374 $195,395 $ 109,962 $ 150,590 $2,468,716
Sudbury (4) 11,567 10,636 1,815 400 1,024 19,306 4,156 15,480 310,120
Constancia 7,978 3,997 1,797 408 315 7,184 4,294 5,553 104,310
San Dimas 21,969 21,487 1,797 615 322 38,617 18,477 25,404 175,275
Stillwater 6,003 5,648 1,797 327 397 10,150 6,059 8,300 222,069
Other (5) 18,872 14,707 1,813 582 83 26,667 16,885 18,093 65,296
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
168,601 165,194 $ 1,800 $ 450 $ 382 $297,319 $ 159,833 $ 223,420 $3,345,786
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 4,228 4,018 $ 26.41 $ 4.29 $ 3.55 $106,116 $ 74,621 $ 88,879 $ 336,314
Antamina 3,135 3,429 26.39 5.27 7.53 90,485 46,603 71,604 601,117
Constancia 874 641 26.41 6.02 7.56 16,936 8,229 13,076 212,197
Other (6) 5,057 4,169 26.34 8.93 5.78 109,800 48,482 73,230 608,588
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
13,294 12,257 $ 26.38 $ 6.23 $ 5.63 $323,337 $ 177,935 $ 246,789 $1,758,216
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 11,070 9,000 $ 2,566 $ 460 $ 442 $ 23,097 $ 14,978 $ 18,960 $ 237,407
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 1,542 527 $ 20.42 $ 4.55 $ 8.17 $ 10,759 $ 4,056 $ 1,086 $ 222,106
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Operating results $654,512 $ 356,802 $ 490,255 $5,563,515
------------------------------- ------- -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(18,639) $ (21,236)
Share based compensation (9,608) (16,926)
Donations and community
investments (2,188) (1,573)
Finance costs (2,930) (2,207)
Other 3,301 307
Income tax 1,388 (51)
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Total other $(28,676) $ (41,686) $ 417,951
---------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 328,126 $ 448,569 $5,981,466
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Copper World Complex gold
interest (formerly referred to as Rosemont). On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato
and Cozamin silver interests as well as the non-operating Loma de
La Plata, Copper World Complex (formerly referred to as Rosemont)
and Pascua-Lama silver interests. The Stratoni mine was placed into
care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced. On June 22, 2022, Alexco elected to
temporarily suspend milling operations for five to six months to
focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for
the Company for the six months ended June 30, 2021 were as
follows:
Six Months Ended June 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per
Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce)
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
Gold equivalent
basis (5) 387,028 348,773 $ 1,877 $ 451 $ 1,426 $ 403 $ 1,023
Silver equivalent
basis (5) 29,027 26,158 $ 25.02 $ 6.01 $ 19.01 $ 5.37 $ 13.64
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $1,800 per
ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium;
and $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis; and
(iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other
one-time (income) expenses as well as the reversal of non-cash
income tax expense (recovery) which is offset by income tax expense
(recovery) recognized in the Statements of Shareholders' Equity and
OCI, respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net
earnings and adjusted net earnings per share (basic and
diluted).
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
------------------------------------------------------------ ------------ -------- -------- --------
Net earnings $ 149,074 $166,124 $306,542 $328,126
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase
warrants held 154 194 897 1,145
(Gain) loss on fair value adjustment of convertible notes
receivable - (3,388) 1,380 (4,626)
Income tax expense (recovery) recognized in the Statement
of Shareholders' Equity (292) (463) 500 1,107
Income tax expense (recovery) recognized in the Statement
of OCI 349 (479) 155 (2,616)
Other - (362) (2,182) (376)
------------------------------------------------------------ -------- ------- ------- -------
Adjusted net earnings $ 149,285 $161,626 $307,292 $322,760
------------------------------------------------------------ -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 451,524 450,088 451,221 449,800
Diluted weighted average number of shares outstanding 452,359 451,203 452,123 450,869
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Adjusted earnings per share - basic $ 0.331 $ 0.359 $ 0.681 $ 0.718
Adjusted earnings per share - diluted $ 0.330 $ 0.358 $ 0.680 $ 0.716
------------------------------------------------------------ -------- ------- ------- -------
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 Six Months Ended
June 30 June 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
---------------------------------------------------------- ------------ -------- -------- --------
Cash generated by operating activities $ 206,359 $216,415 $416,899 $448,569
---------------------------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 451,524 450,088 451,221 449,800
Diluted weighted average number of shares outstanding 452,359 451,203 452,123 450,869
---------------------------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share - basic $ 0.457 $ 0.481 $ 0.924 $ 0.997
Operating cash flow per share - diluted $ 0.456 $ 0.480 $ 0.922 $ 0.995
---------------------------------------------------------- -------- ------- ------- -------
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 Six Months Ended
June 30 June 30
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2022 2021 2022 2021
-------------------------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 140,625 $ 148,753 $ 268,020 $ 297,710
Less: depletion (65,682) (70,308) (123,084) (140,482)
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 74,943 $ 78,445 $ 144,936 $ 157,228
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 39,189 $ 40,543 $ 76,321 $ 74,318
Total cash cost of silver sold 32,834 34,216 61,149 76,375
Total cash cost of palladium sold 1,378 1,946 2,980 4,137
Total cash cost of cobalt sold 1,542 1,740 4,486 2,398
-------------------------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 74,943 $ 78,445 $ 144,936 $ 157,228
-------------------------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 84,337 90,090 162,238 165,194
Total silver ounces sold 5,848 5,600 11,401 12,257
Total palladium ounces sold 3,378 3,869 7,453 9,000
Total cobalt pounds sold 225 395 736 527
-------------------------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 465 $ 450 $ 470 $ 450
Average cash cost of silver (per ounce) $ 5.61 $ 6.11 $ 5.36 $ 6.23
Average cash cost of palladium (per ounce) $ 408 $ 503 $ 400 $ 460
Average cash cost of cobalt (per pound) $ 6.86 $ 4.41 $ 6.09 $ 4.55
-------------------------------------------------------- -------- -------- --------- ---------
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 Six Months Ended
June 30 June 30
(in thousands, except for gold and palladium ounces sold and
per unit amounts) 2022 2021 2022 2021
============================================================ ============ ======== ======== ========
Total sales:
Gold $ 157,842 $162,293 $303,517 $297,319
Silver $ 130,228 $149,455 $264,560 $323,337
Palladium $ 7,203 $ 10,822 $ 16,736 $ 23,097
Cobalt $ 7,649 $ 7,823 $ 25,353 $ 10,759
Divided by:
Total gold ounces sold 84,337 90,090 162,238 165,194
Total silver ounces sold 5,848 5,600 11,401 12,257
Total palladium ounces sold 3,378 3,869 7,453 9,000
Total cobalt pounds sold 225 395 736 527
------------------------------------------------------------ -------- ------- ------- -------
Equals:
Average realized price of gold (per ounce) $ 1,872 $ 1,801 $ 1,871 $ 1,800
Average realized price of silver (per ounce) $ 22.27 $ 26.69 $ 23.21 $ 26.38
Average realized price of palladium (per ounce) $ 2,132 $ 2,797 $ 2,246 $ 2,566
Average realized price of cobalt (per pound) $ 34.01 $ 19.82 $ 34.43 $ 20.42
Less:
Average cash cost of gold (1) (per ounce) $ (465) $ (450) $ (470) $ (450)
Average cash cost of silver (1) (per ounce) $ (5.61) $ (6.11) $ (5.36) $ (6.23)
Average cash cost of palladium (1) (per ounce) $ (408) $ (503) $ (400) $ (460)
Average cash cost of cobalt (1) (per pound) $ (6.86) $ (4.41) $ (6.09) $ (4.55)
------------------------------------------------------------ --------
Equals:
Cash operating margin per gold ounce sold $ 1,407 $ 1,351 $ 1,401 $ 1,350
As a percentage of realized price of gold 75% 75% 75% 75%
Cash operating margin per silver ounce sold $ 16.66 $ 20.58 $ 17.85 $ 20.15
As a percentage of realized price of silver 75% 77% 77% 76%
Cash operating margin per palladium ounce sold $ 1,724 $ 2,294 $ 1,846 $ 2,106
As a percentage of realized price of palladium 81% 82% 82% 82%
Cash operating margin per cobalt pound sold $ 27.15 $ 15.41 $ 28.34 $ 15.87
As a percentage of realized price of cobalt 80% 78% 82% 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 (including whether there will be any material change in
the Company's facts or change in law or jurisprudence), potential
implementation of a 15% global minimum tax, counterparty credit and
liquidity, mine operator concentration, indebtedness and
guarantees, hedging, competition, claims and legal proceedings
against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of
Wheaton and the Mining Operations, exploration, development,
operations, expansions and improvements at the Mining Operations,
environmental regulations, climate change, Wheaton and the Mining
Operations ability to obtain and maintain necessary licenses,
permits, approvals and rulings, Wheaton and the Mining Operations
ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable supplies, infrastructure and
employees to support the Mining Operations, inability to replace
and expand mineral reserves, including anticipated timing of the
commencement of production by certain Mining Operations (including
increases in production, estimated grades and recoveries),
uncertainties of title and indigenous rights with respect to the
Mining Operations, environmental, social and governance matters,
Wheaton and the Mining Operations ability to obtain adequate
financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial
conditions, Wheaton's acquisition strategy and other risks
discussed in the section entitled "Description of the Business -
Risk Factors" in Wheaton's Annual Information Form available on
SEDAR at www.sedar.com , Wheaton's Form 40-F for the year ended
December 31, 2021 and Form 6-K filed March 31, 2022 both on file
with the U.S. Securities and Exchange Commission on EDGAR (the
"Disclosure"). Forward-looking statements are based on assumptions
management currently believes to be reasonable, including (without
limitation): that there will be no material adverse change in the
market price of commodities, that the Mining Operations will
continue to operate and the mining projects will be completed in
accordance with public statements and achieve their stated
production estimates, that the mineral reserves and mineral
resource estimates from Mining Operations (including reserve
conversion rates) are accurate, that each party will satisfy their
obligations in accordance with the PMPAs, that Wheaton will
continue to be able to fund or obtain funding for outstanding
commitments, that Wheaton will be able to source and obtain
accretive PMPAs, that neither Wheaton nor the Mining Operations
will suffer significant impacts as a result of an epidemic
(including the COVID-19 virus pandemic), that any outbreak or
threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there will be no material change in
the Company's facts or change in law or jurisprudence), and such
other assumptions and factors as set out in the Disclosure. There
can be no assurance that forward-looking statements will prove to
be accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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 August
11, 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.
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END
IR DZGMRKZVGZZG
(END) Dow Jones Newswires
August 12, 2022 02:00 ET (06:00 GMT)
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