TIDMWPM
RNS Number : 3438F
Wheaton Precious Metals Corp.
04 November 2022
November 4, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
THIRD quarter 2022 financial results
Wheaton Precious Metals Maintains
Strong Cash Operating Margins in the Third Quarter of 2022
"At Wheaton, we focus on building a sustainable company that
provides investors with profitable, long-term exposure to precious
metals. While inflationary pressures have impacted all sectors of
the economy, especially mining, Wheaton has maintained cash
operating margins of over 75% year to date, highlighting the
strength of our streaming business model," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals.
"Despite some recent challenges, we are pleased with the
improvements we have seen over the third quarter in our diverse
portfolio of high-quality assets, which is forecast to deliver
significant organic growth over the next five years and sustained
precious metals production for decades to come. We also are very
optimistic that we can continue to add accretive new streams to the
portfolio given the number of opportunities that we are currently
reviewing coupled with one of the strongest balance sheets in the
sector."
Solid Financial Results and Strong Balance Sheet
-- $219 million in revenue and $154 million in operating cash flow in the quarter
-- $197 million in net earnings and $94 million in adjusted net earnings[1] in the quarter
-- A cash balance of $495 million and no debt as at September 30, 2022
-- Extended the maturity date of the undrawn US$2 billion
revolving credit facility to July 18, 2027
-- Declared a quarterly dividend (1) of $0.15 per common share
High Quality Asset Base
-- Streaming agreements on 21 operating mines and 13 development projects
-- 85% of attributable production from assets in the lowest half
of their respective cost curves[2]
-- 29 years of mine life based on Proven and Probable Mineral
Reserves and potential additional mine life from mineral resource
conversion and exploration[3]
-- Average annual production for the ten-year period ending
December 31, 2031, is expected to be approximately 850,000 GEOs (2)
(,[4])
-- Completed the previously disclosed termination of the Keno
Hill precious metal purchase agreement ("PMPA") for $141 million,
resulting in an impairment reversal of $10 million and a gain on
disposition of $104 million
-- Announced the proposed termination of the Yauliyacu PMPA for
$150 million, less the aggregate value of any deliveries to Wheaton
of silver produced in 2022 prior to closing
Leadership in Sustainability
-- Top Rankings: #1 out of 119 precious metals companies and
Global Top 50 out of over 14,900 multi-sector companies by
Sustainalytics, AA rated by MSCI, and Prime rated by ISS
-- Commitment to Net-Zero Carbon Emissions by 2050 supported by
interim targets covering all material emissions including Scope
3
-- Established a sustainability linked element in connection
with the extension of the revolving credit facility
-- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights
-- Recognized by ESG Investing for Best Climate Related Reporting (Mid Cap)
-- Supported flood relief to local communities near the Stillwater mine in Montana
-- Presenting sponsor of BC Cancer Foundation's Tour de Cure supporting cancer research
Operational Overview
(all figures in US dollars unless
otherwise noted) Q3 2022 Q3 2021 Change YTD 2022 YTD 2021 Change
---------------------------------- ------- -------- ------- -------- -------- -------
Units produced
Gold ounces 73,508 85,624 (14.2)% 218,004 254,225 (14.2)%
Silver ounces 5,883 6,349 (7.3)% 18,645 19,643 (5.1)%
Palladium ounces 3,229 5,105 (36.7)% 11,616 16,175 (28.2)%
Cobalt pounds 226 370 (39.0)% 596 1,912 (68.8)%
Gold equivalent ounces (2) 159,852 183,012 (12.7)% 491,088 570,040 (13.9)%
Units sold
Gold ounces 62,000 67,649 (8.4)% 224,238 232,843 (3.7)%
Silver ounces 5,234 5,487 (4.6)% 16,635 17,744 (6.3)%
Palladium ounces 4,227 5,703 (25.9)% 11,680 14,703 (20.6)%
Cobalt pounds 115 131 (12.2)% 851 658 29.3 %
Gold equivalent ounces (2) 138,824 149,862 (7.4)% 475,259 498,635 (4.7)%
Change in PBND and Inventory
Gold equivalent ounces (2) 6,620 17,659 11,039 (32,497) 22,375 54,872
----------------------------------- ------- -------- ------- -------- -------- -------
Revenue $218,836 $ 268,957 (18.6)% $ 829,002 $ 923,468 (10.2)%
Net earnings $196,460 $ 134,937 45.6 % $ 503,001 $ 463,063 8.6 %
Per share $ 0.435 $ 0.300 45.0 % $ 1.114 $ 1.029 8.3 %
Adjusted net earnings (1) $ 93,878 $ 137,087 (31.5)% $ 401,168 $ 459,848 (12.8)%
Per share (1) $ 0.208 $ 0.304 (31.6)% $ 0.889 $ 1.022 (13.0)%
Operating cash flows $154,497 $ 201,287 (23.2)% $ 571,396 $ 649,856 (12.1)%
Per share (1) $ 0.342 $ 0.447 (23.5)% $ 1.266 $ 1.444 (12.3)%
----------------------------------- ------- -------- ------- -------- -------- -------
All amounts in thousands except gold, palladium & gold
equivalent ounces, and per share amounts.
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2022, Salobo produced 44,200
ounces of attributable gold, a decrease of approximately 20%
relative to the third quarter of 2021, primarily due to lower
grades and recovery. According to Vale S.A.'s ("Vale"), plant
performance improved relative to the second quarter of 2022 despite
additional planned and corrective maintenance performed in the
third quarter. Vale plans for maintenance activities to continue in
the fourth quarter of 2022 to further improve plant
reliability.
Vale reports that physical completion of the Salobo III mine
expansion was 98% at the end of the third quarter. Progress in the
third quarter included the primary crushing circuit being fully
commissioned, hot commissioning of the conveyor system, and
commencement of wet commissioning of the flotation circuit.
Antamina: In the third quarter of 2022, Antamina produced 1.4
million ounces of attributable silver, a decrease of approximately
11% relative to the third quarter of 2021, primarily due to lower
grades as per the mine plan .
Peñasquito: In the third quarter of 2022, Peñasquito produced
2.0 million ounces of attributable silver, a decrease of
approximately 7% relative to the third quarter of 2021 with lower
recovery and grades as per the mine plan.
Constancia: In the third quarter of 2022, Constancia produced
0.6 million ounces of attributable silver and 7,200 ounces of
attributable gold, an increase of approximately 8% for silver
production and a decrease of approximately 16% for gold production
relative to the third quarter of 2021, with the increase in silver
being primarily due to higher throughput and the decrease in gold
production being primarily due to the mining of lower-grade
material resulting from mine sequencing.
Sudbury: In the third quarter of 2022, Vale's Sudbury mines
produced 4,700 ounces of attributable gold, an increase of
approximately 3109% relative to the third quarter of 2021,
primarily due to operations at the mine being temporarily suspended
due to a labour dispute which lasted from June 1, 2021 to August 9,
2021. Vale reports that in the third quarter, the first phase of
the Copper Cliff Complex South Mine Project was opened, including
the development of more than 12km of tunnels to reunite the south
and north shafts of the mine, which is expected to nearly double
ore production at the Copper Cliff Mine. The Copper Cliff Mine has
historically represented approximately 20% of attributable
production for Wheaton from Sudbury.
Stillwater: In the third quarter of 2022, the Stillwater mines
produced 1,800 ounces of attributable gold and 3,200 ounces of
attributable palladium, a decrease of approximately 38% for gold
and 37% for palladium relative to the third quarter of 2021. As per
Sibanye-Stillwater Limited, 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 third quarter of 2022, San Dimas produced
11,800 ounces of attributable gold, virtually unchanged relative to
the third quarter of 2021 , primarily due to lower throughput
offset by higher grades . According to First Majestic Silver Corp.,
silver and gold grades were higher in the third quarter compared to
the prior quarter due to improvements in dilution control from the
long hole stoping in the Jessica and Regina veins and due to
initial production from the Perez vein commencing in July.
Other Gold: In the third quarter of 2022, total Other Gold
attributable production was 3,700 ounces, a decrease of
approximately 46% relative to the third quarter of 2021, primarily
due to the closure of the 777 mine in June 2022.
Other Silver: In the third quarter of 2022, total Other Silver
attributable production was 1.9 million ounces, a decrease of
approximately 8% relative to the third quarter of 2021, primarily
due to lower production at Aljustrel (grades) and Stratoni (placed
into care and maintenance).
Voisey's Bay: In the third quarter of 2022, the Voisey's Bay
mine produced 226,000 pounds of attributable cobalt, a decrease of
approximately 39% relative to the third quarter of 2021, primarily
due to mining lower grade material during the ongoing transitional
period between the depletion of the Ovoid open-pit mine and ramp-up
to full production of the Voisey's Bay underground project. Vale
reports that physical completion of the Voisey's Bay underground
mine extension was 78% at the end of the third quarter. Progress in
the third quarter included surface activities being well advanced
with the port fuel tanks installed and Eastern Deeps mine fresh air
infrastructure completed, and in the underground, the Reid Brook
bulk Material Handling System advancing on schedule.
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.
Third Quarter Development Asset Highlights
Goose Project: Sabina Gold & Silver Corp. ("Sabina")
announced a formal construction decision for the Goose Project.
Sabina noted that the project will be in a position to commence
full construction in early 2023 with first production expected in
2025.
Blackwater Project: Artemis Gold Inc. ("Artemis") announced the
commencement of site preparation work at the plant site including
site clearing, bulk earthworks and sediment/erosion control.
Artemis believes the Blackwater plant site will start major
construction works in the first quarter of 2023.
Marathon Project: Generation Mining Limited ("Gen Mining")
delivered the environmental assessment report for the Marathon
Project to federal and provincial ministers and announced the
purchasing of an unused, surplus SAG mill and ball mill. Gen Mining
anticipates starting construction late in the first quarter of
2023.
Curipamba Project: Adventus Mining Corporation ("Adventus")
announced an Investment Protection Agreement commitment declaration
by the Government of Ecuador indicating a significant milestone in
the development of the Curipamba Project. Adventus plans for a
formal construction commencement in the second quarter of 2023.
Portfolio Optimization
Keno Hill: On September 7, 2022, Hecla Mining Company ("Hecla")
completed the previously announced acquisition of all the
outstanding common shares of Alexco. In connection with this
acquisition, the Company entered into an agreement with Hecla to
terminate the Keno Hill PMPA effective September 7, 2022, in
exchange for 34,800,989 common shares of Hecla valued at $141
million (the "Hecla shares"[5]), resulting in an impairment
reversal of the Keno Hill PMPA in the amount of $10 million and a
gain on disposal of $104 million.
Yauliyacu: On August 18, 2022, the Company announced that it had
entered into an agreement with Glencore plc ("Glencore") to
terminate its silver stream on the Yauliyacu Mine in Peru for a
cash payment of $150 million, less the aggregate value of any
deliveries to Wheaton, prior to closing, of silver produced
subsequent to December 31, 2021. Wheaton has agreed to terminate
the stream in order to help facilitate the sale by Glencore of the
Yauliyacu Mine. As at September 30, 2022, the net termination
payment is estimated to be approximately $136 million. The closing
of the transaction is contingent on Glencore divesting the
Yauliyacu mine by December 31, 2022 and certain other customary
conditions. Glencore retains the option to terminate the silver
stream even if it does not divest the Yauliyacu mine by December
31, 2022.
Financial Review
Revenues
Revenue was $219 million in the third quarter of 2022
representing an 19% decrease from the third quarter of 2021 due
primarily to a 12% decrease in the average realized gold
equivalent(2) price; and a 7% decrease in the number of GEOs(2)
sold.
Revenue was $829 million in the nine months ended September 30,
2022, representing a 10% decrease from the comparable period of the
previous year due primarily to a 5% decrease in the number of gold
equivalent(2) ounces sold; and a 6% decrease in the average
realized gold equivalent(2) price.
Cash Costs and Margin
Average cash costs(1) in the third quarter of 2022 were $439 per
GEO(2) as compared to $417 in the third quarter of 2021. This
resulted in a cash operating margin(1) of $1,137 per GEO(2) sold, a
decrease of 17% as compared with the third quarter of 2021.
Average cash costs(1) for the nine months ended September 30,
2022 were $433 per GEO(2) as compared to $441 in the comparable
period of the previous year. This resulted in a cash operating
margin(1) of $1,311 per GEO(2) sold, a 7% decrease from the
comparable period of the previous year.
Balance Sheet (at September 30, 2022 )
-- Approximately $495 million of cash on hand.
-- During the third quarter of 2022, the Company made upfront
cash payments totaling $47 million relative to PMPA's.
-- The Company extended its existing undrawn $2 billion
revolving term loan with its maturity date now July 18, 2027 . As
part of the extension, Wheaton added a sustainability-linked
element which may impact 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.
Sustainability
Community Investment Program:
-- In the third quarter, Wheaton Precious Metals International
Ltd. ("Wheaton International") in partnership with
Sibanye-Stillwater Limited, donated funds to support flood relief
in the community of Nye, which is the closest town to the
Stillwater mine in Montana. Funds were used to clean up debris and
support other flood-related recovery efforts and to support
families in financial need whose houses were damaged.
-- In the third quarter, new reading rooms were opened in the
state of Maranh o, Brazil, as part of the Routes and Literary
Network project that is maintained by the Vale Foundation in
partnership with Wheaton International and the Associação Cidade
Escola Aprendiz. The new reading rooms benefit 1,800 students from
three different schools.
-- On August 27(th) , the Tour de Cure, presented by Wheaton
Precious Metals, raised CA$6.3 million for the BC Cancer
Foundation. The event is B.C.'s largest cycling fundraiser
attracting over 1,100 participants. Since 2014, Wheaton has donated
over CA$3.2 million towards crucial advancements in cancer research
and care. In addition, the Silver Bullets, Wheaton's cycling team
comprised of employees, friends and family have collectively raised
over CA$2 million through the Tour de Cure.
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.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, November
4, 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: 30587457
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
November 11, 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: 587457 #
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, Neil
Burns, P.Geo., Vice President, Technical Services for Wheaton
Precious Metals and Ryan Ulansky, P.Eng., Vice President,
Engineering, are a "qualified person" as such term is defined under
National Instrument 43-101, and have reviewed and approved the
technical information disclosed in this news release (specifically
Mr. Carson has reviewed production figures, Mr. Burns has reviewed
mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and those
required to be followed by United States domestic issuers under the
NYSE listing standards. This confirmation is located on the Wheaton
Precious Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
Wheaton's estimated attributable production for 2022 is forecast
to be 300,000 to 320,000 ounces of gold, 22.5 to 24.0 million
ounces of silver, and 35,000 to 40,000 gold equivalent ounces(2)
("GEOs"), resulting in production of approximately 640,000 to
680,000 GEOs(2) . As a result of the proposed termination of the
Yauliyacu PMPA, the Company now expects average annual production
for the five-year period ending December 31, 2026, to be
approximately 800,000 GEOs(2,) (4) (from 820,000 GEOs(2,) (4)
previously) and for the ten-year period ending December 31, 2031,
to be approximately 850,000 GEOs(2) (,) (4) (from 870,000 GEOs(2,)
(4) previously).
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.
End Notes
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars and shares in thousands, except per share amounts -
unaudited) 2022 2021 2022 2021
---------------------------------------------------------------- ---------- -------- ---------- --------
Sales $ 218,836 $268,957 $ 829,002 $923,468
---------------------------------------------------------------- --------- ------- --------- -------
Cost of sales
Cost of sales, excluding depletion $ 60,955 $ 62,529 $ 205,891 $219,757
Depletion 55,728 54,976 178,812 195,458
---------------------------------------------------------------- --------- ------- --------- -------
Total cost of sales $ 116,683 $117,505 $ 384,703 $415,215
---------------------------------------------------------------- --------- ------- --------- -------
Gross margin $ 102,153 $151,452 $ 444,299 $508,253
General and administrative expenses 8,360 7,932 27,448 26,572
Share based compensation 77 4,139 11,586 13,746
Donations and community investments 1,406 1,524 3,379 3,712
Reversal of impairment of mineral stream interests (10,330) - (10,330) -
---------------------------------------------------------------- --------- ------- --------- -------
Earnings from operations $ 102,640 $137,857 $ 412,216 $464,223
Gain on disposal of mineral stream interest (104,425) - (104,425) -
Other (income) expense (2,799) 1,108 (3,448) (2,194)
---------------------------------------------------------------- --------- ------- --------- -------
Earnings before finance costs and income taxes $ 209,864 $136,749 $ 520,089 $466,417
Finance costs 1,398 1,379 4,209 4,309
---------------------------------------------------------------- --------- ------- --------- -------
Earnings before income taxes $ 208,466 $135,370 $ 515,880 $462,108
Income tax (expense) recovery (12,006) (433) (12,879) 955
---------------------------------------------------------------- --------- ------- --------- -------
Net earnings $ 196,460 $134,937 $ 503,001 $463,063
---------------------------------------------------------------- --------- ------- --------- -------
Basic earnings per share $ 0.435 $ 0.300 $ 1.114 $ 1.029
Diluted earnings per share $ 0.434 $ 0.299 $ 1.112 $ 1.026
Weighted average number of shares outstanding
Basic 451,757 450,326 451,402 449,977
Diluted 452,386 451,717 452,221 451,369
================================================================ ========= ======= ========= =======
Condensed Interim Consolidated Balance Sheets
As at As at
September 30 December 31
(US dollars in thousands - unaudited) 2022 2021
------------------------------------------------- ----------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 494,618 $ 226,045
Accounts receivable 11,536 11,577
Other 14,764 12,102
------------------------------------------------------- ----------- --- ----------
Total current assets $ 520,918 $ 249,724
------------------------------------------------- ---- ----------- --- ----------
Non-current assets
Mineral stream interests $ 5,807,056 $ 5,905,797
Early deposit mineral stream interests 46,092 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 190,472 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 4,505 5,509
Other 11,946 15,211
------------------------------------------------------- ----------- --- ----------
Total non-current assets $ 6,066,677 $ 6,046,427
------------------------------------------------- ---- ----------- --- ----------
Total assets $ 6,587,595 $ 6,296,151
------------------------------------------------- ---- ----------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,274 $ 13,939
Current taxes payable 6,163 132
Current portion of performance share units 10,407 14,807
Current portion of lease liabilities 803 813
Total current liabilities $ 28,647 $ 29,691
Non-current liabilities
------------------------------------------------- ---- ----------- --- ----------
Performance share units 3,661 11,498
Lease liabilities 1,348 2,060
Deferred income taxes 1,954 100
Pension liability 3,173 2,685
Total non-current liabilities $ 10,136 $ 16,343
------------------------------------------------- ---- ----------- --- ----------
Total liabilities $ 38,783 $ 46,034
------------------------------------------------- ---- ----------- --- ----------
Shareholders' equity
------------------------------------------------- ---- ----------- --- ----------
Issued capital $ 3,741,211 $ 3,698,998
Reserves 7,464 47,036
Retained earnings 2,800,137 2,504,083
Total shareholders' equity $ 6,548,812 $ 6,250,117
------------------------------------------------- ---- ----------- --- ----------
Total liabilities and shareholders' equity $ 6,587,595 $ 6,296,151
------------------------------------------------- ---- ----------- --- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars in thousands - unaudited) 2022 2021 2022 2021
------------------------------------------------------------- ---------- --------- ---------- ----------
Operating activities
Net earnings $ 196,460 $ 134,937 $ 503,001 $ 463,063
Adjustments for
Depreciation and depletion 56,129 55,445 180,004 196,869
Gain on disposal of mineral stream interest (104,425) - (104,425) -
Reversal of impairment of mineral stream interests (10,330) - (10,330) -
Interest expense 22 30 72 324
Equity settled stock based compensation 1,568 1,315 4,407 3,946
Performance share units (1,654) 2,824 (11,231) (7,128)
Pension expense 291 294 720 710
Income tax expense (recovery) 12,006 433 12,879 (955)
Loss (gain) on fair value adjustment of share purchase
warrants held 204 1,246 1,101 2,392
Fair value (gain) loss on convertible note receivable - 490 1,380 (4,136)
Investment income recognized in net earnings (1,953) (178) (2,696) (275)
Other (349) (9) (1,821) 685
Change in non-cash working capital 4,728 4,434 (3,825) (5,341)
============================================================= ========= ======== ========= =========
Cash generated from operations before income taxes and
interest $ 152,697 $ 201,261 $ 569,236 $ 650,154
Income taxes recovered (paid) (29) - (141) (51)
Interest paid (22) (31) (73) (401)
Interest received 1,851 57 2,374 154
============================================================= ========= ======== ========= =========
Cash generated from operating activities $ 154,497 $ 201,287 $ 571,396 $ 649,856
============================================================= ========= ======== ========= =========
Financing activities
Bank debt repaid $ - $ - $ - $(195,000)
Credit facility extension fees (1,205) (54) (1,207) (1,727)
Share purchase options exercised - 183 7,549 5,719
Lease payments (201) (196) (603) (583)
Dividends paid (59,487) (57,235) (176,604) (160,784)
============================================================= ========= ======== ========= =========
Cash (used for) generated from financing activities $ (60,893) $(57,302) $(170,865) $(352,375)
============================================================= ========= ======== ========= =========
Investing activities
Mineral stream interests $ (46,675) $ (1,055) $(107,476) $(216,845)
Early deposit mineral stream interests (750) (750) (1,500) (1,500)
Mineral royalty interest - - - (3,571)
Closing costs on disposal of mineral stream interests (139) - (139) -
Acquisition of long-term investments - (5,076) (22,768) (7,453)
Proceeds on disposal of long-term investments - - - 112,188
Dividends received 102 110 322 110
Other (69) (171) (194) (691)
============================================================= ========= ======== ========= =========
Cash (used for) generated from investing activities $ (47,531) $ (6,942) $(131,755) $(117,762)
============================================================= ========= ======== ========= =========
Effect of exchange rate changes on cash and cash equivalents $ (81) $ (39) $ (203) $ 48
============================================================= ========= ======== ========= =========
Increase in cash and cash equivalents $ 45,992 $ 137,004 $ 268,573 $ 179,767
Cash and cash equivalents, beginning of period 448,626 235,446 226,045 192,683
============================================================= ========= ======== ========= =========
Cash and cash equivalents, end of period $ 494,618 $ 372,450 $ 494,618 $ 372,450
------------------------------------------------------------- --------- -------- --------- ---------
Summary of Units Produced
Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Gold ounces
produced (2)
Salobo 44,212 34,129 44,883 48,235 55,205 55,590 46,622 62,854
Sudbury (3) 4,735 5,289 5,362 4,379 148 4,563 7,004 6,659
Constancia 7,196 8,042 6,311 9,857 8,533 5,525 2,453 3,929
San Dimas (4) 11,808 10,044 10,461 13,714 11,936 11,478 10,491 11,652
Stillwater (5) 1,833 2,171 2,497 2,664 2,949 2,962 3,041 3,290
Other
Minto 3,182 2,480 4,060 3,506 1,703 3,206 2,638 789
777 (6) - 3,509 4,003 4,462 4,717 5,035 6,280 2,866
Marmato 542 778 477 479 433 1,713 - -
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Total Other 3,724 6,767 8,540 8,447 6,853 9,954 8,918 3,655
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Total gold ounces
produced 73,508 66,442 78,054 87,296 85,624 90,072 78,529 92,039
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Silver ounces
produced (2)
Peñasquito 2,017 2,089 2,219 2,145 2,180 2,026 2,202 2,014
Antamina 1,377 1,379 1,260 1,366 1,548 1,558 1,577 1,930
Constancia 564 584 506 578 521 468 406 478
Other
Los Filos
(7) 23 23 42 37 17 26 31 6
Zinkgruvan 642 739 577 482 658 457 420 515
Yauliyacu 463 756 637 382 372 629 737 454
Stratoni
(8) - - - 129 18 164 165 185
Minto 42 25 45 44 25 33 21 16
Neves-Corvo 323 345 344 522 362 408 345 420
Aljustrel 246 292 287 325 314 400 474 440
Cozamin 179 169 186 213 199 183 230 -
Marmato 7 8 11 7 10 39 - -
Keno Hill
(9) - 48 20 30 44 55 27 -
777 (6) - 80 91 96 81 83 130 51
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Total Other 1,925 2,485 2,240 2,267 2,100 2,477 2,580 2,087
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Total silver
ounces produced 5,883 6,537 6,225 6,356 6,349 6,529 6,765 6,509
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Palladium ounces
produced (2)
Stillwater (5) 3,229 3,899 4,488 4,733 5,105 5,301 5,769 5,672
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Cobalt pounds
produced (2)
Voisey's Bay 226 136 234 381 370 380 1,162 (1) -
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
GEOs produced (11) 159,852 160,646 170,590 184,551 183,012 190,272 196,756 185,436
SEOs produced (11) 11,989 12,048 12,794 13,841 13,726 14,270 14,757 13,908
------------------ --------------------- --------------------- ---------------------- -------------------- --------------- -------------- ----------------- -----------------
Average payable
rate (2)
Gold 95.1% 95.1% 95.2% 96.0% 96.0% 95.8% 95.0% 95.2%
Silver 86.1% 85.5% 86.1% 86.0% 86.6% 86.9% 86.6% 86.3%
Palladium 95.0% 94.6% 92.7% 92.2% 94.5% 95.0% 91.6% 93.6%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% n.a.
GEO (11) 90.6% 90.1% 90.5% 91.4% 91.3% 91.8% 90.7% 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: Q3-2022 - 412,000
ounces; Q2-2022 - 382,000 ounces; Q1-2022 - 408,000 ounces; Q4-2021
- 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000
ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 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 September 7, 2022, the Company terminated the Keno Hill
stream in exchange for $141 million of Hecla common shares received
as consideration.
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
Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Gold ounces sold
Salobo 31,818 48,515 42,513 47,171 35,185 57,296 51,423 53,197
Sudbury (2) 5,147 7,916 3,712 965 1,915 6,945 3,691 7,620
Constancia 6,336 7,431 10,494 6,196 8,159 2,321 1,676 3,853
San Dimas 10,196 10,633 10,070 15,182 11,346 11,214 10,273 11,529
Stillwater (3) 2,127 2,626 2,628 2,933 2,820 2,574 3,074 3,069
Other
Minto 2,559 2,806 3,695 2,462 1,907 2,359 2,390 1,540
777 3,098 3,629 4,388 4,290 5,879 5,694 2,577 5,435
Marmato 719 781 401 423 438 1,687 - -
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Total Other 6,376 7,216 8,484 7,175 8,224 9,740 4,967 6,975
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Total gold ounces
sold 62,000 84,337 77,901 79,622 67,649 90,090 75,104 86,243
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Silver ounces sold
Peñasquito 1,599 2,096 2,188 1,818 2,210 1,844 2,174 1,417
Antamina 1,155 1,177 1,468 1,297 1,502 1,499 1,930 1,669
Constancia 498 494 644 351 484 295 346 442
Other
Los Filos 24 41 42 17 12 42 27 -
Zinkgruvan 376 650 355 346 354 355 293 326
Yauliyacu 1,005 817 44 551 182 601 1,014 15
Stratoni - (2) 133 42 41 167 117 169
Minto 22 21 31 27 24 29 26 20
Neves-Corvo 105 167 204 259 193 215 239 145
Aljustrel 185 123 145 133 155 208 257 280
Cozamin 154 148 177 174 170 168 173 -
Marmato 8 11 8 8 10 35 - -
Keno Hill 30 30 27 24 51 33 12 -
777 73 75 87 69 99 109 49 93
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Total Other 1,982 2,081 1,253 1,650 1,291 1,962 2,207 1,048
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Total silver
ounces sold 5,234 5,848 5,553 5,116 5,487 5,600 6,657 4,576
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Palladium ounces
sold
Stillwater (3) 4,227 3,378 4,075 4,641 5,703 3,869 5,131 4,591
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Cobalt pounds sold
Voisey's Bay 115 225 511 228 131 395 132 -
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
GEOs sold (4) 138,824 170,371 166,065 157,439 149,862 176,502 172,271 152,613
SEOs sold (4) 10,412 12,778 12,455 11,808 11,240 13,238 12,920 11,446
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Cumulative payable
units PBND (5)
Gold ounces 67,247 59,331 81,365 84,989 80,819 66,238 70,072 70,555
Silver ounces 3,550 3,672 3,910 4,200 3,845 3,802 3,738 4,486
Palladium ounces 5,041 6,267 5,535 5,629 5,619 6,822 5,373 5,597
Cobalt pounds 402 280 550 596 637 777 820 -
GEO (4) 127,840 120,735 150,032 158,477 150,317 139,145 141,206 136,894
SEO (4) 9,588 9,055 11,252 11,886 11,274 10,436 10,590 10,267
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
Inventory on hand
Cobalt pounds 556 582 410 657 488 134 132 -
------------------ --------------------- ---------------------- --------------------- -------------------- --------------- -------------- ----------------- -----------------
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs 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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended September 30, 2022
----------------------------------------------------------------------------------------------------------------------------------
Average Impairment
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- ----------- --------- ---------- ----------
Gold
Salobo 44,212 31,818 $ 1,724 $ 416 $ 334 $ 54,860 $ - $ 31,000 $ 41,617 $2,396,952
Sudbury (5) 4,735 5,147 1,745 400 1,092 8,984 - 1,303 5,943 288,863
Constancia 7,196 6,336 1,724 415 271 10,925 - 6,578 8,295 97,213
San Dimas 11,808 10,196 1,724 624 260 17,579 - 8,567 11,213 158,704
Stillwater 1,833 2,127 1,724 317 429 3,667 - 2,080 2,992 216,617
Other (6) 3,724 6,376 1,743 694 59 11,113 - 6,311 5,562 461,359
73,508 62,000 $ 1,728 $ 474 $ 353 $107,128 $ - $ 55,839 $ 75,622 $3,619,708
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Silver
Peñasquito 2,017 1,599 $ 19.30 $ 4.36 $ 3.57 $ 30,857 $ - $ 18,182 $ 23,885 $ 301,040
Antamina 1,377 1,155 19.30 3.75 7.06 22,287 - 9,798 17,951 553,231
Constancia 564 498 19.30 6.12 6.35 9,613 - 3,398 6,563 195,507
Other (7) 1,925 1,982 18.93 7.51 6.84 37,513 114,755 123,823 21,896 538,739
----------
5,883 5,234 $ 19.16 $ 5.59 $ 5.84 $100,270 $ 114,755 $ 155,201 $ 70,295 $1,588,517
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 3,229 4,227 $ 2,091 $ 353 $ 399 $ 8,838 $ - $ 5,657 $ 7,344 $ 228,168
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,425
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 226 115 $ 22.68 $ 7.21 $ 13.63 $ 2,600 $ - $ 211 $ 7,352 $ 361,238
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Operating results $218,836 $ 114,755 $ 216,908 $ 160,613 $5,807,056
------------------------------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Other
General and administrative $ (8,360) $ (5,503)
Share based compensation (77) -
Donations and community
investments (1,406) (1,413)
Finance costs (1,398) (1,020)
Other 2,799 1,849
Income tax (12,006) (29)
Total other $(20,448) $ (6,116) $ 780,539
--------------------------------------- -------- -------- -------- ------- ---------- -------- --------- ---------
$ 196,460 $ 154,497 $6,587,595
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
6) Comprised of the operating Minto and Marmato gold interests
as well as the non-operating 777, Copper World Complex (formerly
referred to as Rosemont), Santo Domingo, Blackwater, Fenix, Goose,
Marathon and Curipamba gold interests. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced.
7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver
interests, the non-operating 777, Loma de La Plata, Stratoni,
Pascua-Lama, Copper World Complex (formerly referred to as
Rosemont), Blackwater and Curipamba silver interests and the
previously owned Keno Hill silver interest. The Stratoni mine was
placed into care and maintenance during Q4-2021. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On September 7, 2022, the Keno
Hill stream was terminated in exchange for $141 million of Hecla
common stock.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended September 30, 2022 were as
follows:
Three Months Ended September 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'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) 159,852 138,824 $ 1,576 $ 439 $ 1,137 $ 401 $ 736
Silver
equivalent
basis (5) 11,989 10,412 $ 21.02 $ 5.85 $ 15.17 $ 5.35 $ 9.82
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Three Months Ended September 30, 2021
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 55,205 35,185 $ 1,795 $ 412 $ 374 $ 63,154 $ 35,504 $ 50,404 $2,455,567
Sudbury (4) 148 1,915 1,794 400 1,024 3,436 708 2,242 308,158
Constancia 8,533 8,159 1,795 411 315 14,645 8,723 11,487 101,741
San Dimas 11,936 11,346 1,795 618 322 20,365 9,693 13,351 171,617
Stillwater 2,949 2,820 1,795 326 397 5,061 3,024 4,144 220,949
Other (5) 6,853 8,224 1,794 590 38 14,755 9,586 9,887 64,985
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
85,624 67,649 $ 1,795 $ 464 $ 337 $121,416 $ 67,238 $ 91,515 $3,323,017
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 2,180 2,210 $ 24.09 $ 4.29 $ 3.55 $ 53,259 $ 35,932 $ 43,776 $ 328,470
Antamina 1,548 1,502 23.99 4.80 7.53 36,000 17,503 28,993 589,816
Constancia 521 484 24.09 6.05 7.56 11,668 5,076 9,033 208,537
Other (6) 2,100 1,291 22.97 6.33 4.49 29,660 15,686 24,011 602,796
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
6,349 5,487 $ 23.80 $ 5.06 $ 5.21 $130,587 $ 74,197 $ 105,813 $1,729,619
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 5,105 5,703 $ 2,426 $ 468 $ 442 $ 13,834 $ 8,644 $ 11,168 $ 234,883
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 370 131 $ 23.78 $ 5.15 $ 8.17 $ 3,120 $ 1,373 $ 159 $ 218,144
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $268,957 $ 151,452 $ 208,655 $5,505,663
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (7,932) $ (4,729)
Share based compensation (4,139) -
Donations and community
investments (1,524) (1,671)
Finance costs (1,379) (1,039)
Other (1,108) 71
Income tax (433) -
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(16,515) $ (7,368) $ 541,077
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 134,937 $ 201,287 $6,046,740
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
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, 777, Marmato and Cozamin
silver interests, the non-operating Loma de La Plata, Copper World
Complex (formerly referred to as Rosemont) and Pascua-Lama silver
interests and the previously owned Keno Hill silver interest. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On September
7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock.
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended September 30, 2021 were as
follows:
Three Months Ended September 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'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) 183,012 149,862 $ 1,795 $ 417 $ 1,378 $ 367 $ 1,011
Silver
equivalent
basis (5) 13,726 11,240 $ 23.93 $ 5.56 $ 18.37 $ 4.89 $ 13.48
----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Nine Months Ended September 30, 2022
-----------------------------------------------------------------------------------------------------------------------------------
Average Impairment
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- ----------- --------- ---------- ----------
Gold
Salobo 123,224 122,846 $ 1,834 $ 416 $ 334 $225,267 $ - $ 133,146 $ 174,134 $2,396,952
Sudbury (5) 15,386 16,775 1,828 400 1,091 30,673 - 5,657 22,980 288,863
Constancia 21,549 24,261 1,833 413 271 44,480 - 27,886 34,463 97,213
San Dimas 32,313 30,899 1,823 622 260 56,335 - 29,095 37,114 158,704
Stillwater 6,501 7,381 1,829 330 429 13,503 - 7,902 11,070 216,617
Other (6) 19,031 22,076 1,829 734 45 40,388 - 23,183 22,912 461,359
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
218,004 224,238 $ 1,831 $ 471 $ 348 $410,646 $ - $ 226,869 $ 302,673 $3,619,708
================== =========== ======= ======== ======== ======== ======= ========== ======== ========= =========
Silver
Peñasquito 6,325 5,883 $ 22.21 $ 4.36 $ 3.57 $130,686 $ - $ 84,058 $ 105,036 $ 301,040
Antamina 4,016 3,800 22.13 4.42 7.06 84,093 - 40,479 66,952 553,231
Constancia 1,654 1,636 22.15 6.09 6.34 36,227 - 15,883 26,260 195,507
Other (7) 6,650 5,316 21.41 7.14 5.61 113,823 114,755 160,768 75,969 538,739
---------- --------
18,645 16,635 $ 21.93 $ 5.43 $ 5.29 $364,829 $ 114,755 $ 301,188 $ 274,217 $1,588,517
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 11,616 11,680 $ 2,190 $ 383 $ 399 $ 25,574 $ - $ 16,437 $ 21,099 $ 228,168
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,425
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 596 851 $ 32.85 $ 6.24 $ 9.49 $ 27,953 $ - $ 14,560 $ 24,683 $ 361,238
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Operating results $829,002 $ 114,755 $ 559,054 $ 622,672 $5,807,056
------------------------------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Other
General and administrative $(27,448) $ (28,933)
Share based compensation (11,586) (18,161)
Donations and community
investments (3,379) (2,976)
Finance costs (4,209) (3,107)
Other 3,448 2,042
Income tax (12,879) (141)
Total other $(56,053) $ (51,276) $ 780,539
---------------------------------------- -------- -------- -------- ------- ---------- -------- --------- ---------
$ 503,001 $ 571,396 $6,587,595
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represent the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
6) Comprised of the operating 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.
7) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu,
Neves-Corvo, Aljustrel, Minto, Cozamin, Marmato and 777 silver
interests, the non-operating Loma de La Plata, Stratoni,
Pascua-Lama, Copper World Complex (formerly referred to as
Rosemont), Blackwater and Curipamba silver interests and the
previously owned Keno Hill silver interest. The Stratoni mine was
placed into care and maintenance during Q4-2021. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On September 7, 2022, the Keno
Hill stream was terminated in exchange for $141 million of Hecla
common stock.
On a gold equivalent and silver equivalent basis, results for
the Company for the nine months ended September 30, 2022 were as
follows:
Nine Months Ended September 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'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) 491,088 475,259 $ 1,744 $ 433 $ 1,311 $ 376 $ 935
Silver equivalent
basis (5) 36,832 35,644 $ 23.26 $ 5.78 $ 17.48 $ 5.02 $ 12.46
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
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 $33.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2022.
Nine Months Ended September 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 157,417 143,904 $ 1,797 $ 412 $ 374 $258,549 $ 145,466 $ 200,993 $2,455,567
Sudbury (4) 11,715 12,551 1,812 400 1,024 22,742 4,864 17,722 308,158
Constancia 16,511 12,156 1,796 410 315 21,829 13,018 17,040 101,741
San Dimas 33,905 32,833 1,796 616 322 58,981 28,170 38,755 171,617
Stillwater 8,952 8,468 1,796 327 397 15,212 9,083 12,444 220,949
Other (5) 25,725 22,931 1,806 585 67 41,421 26,471 27,981 64,985
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
254,225 232,843 $ 1,798 $ 454 $ 369 $418,734 $ 227,072 $ 314,935 $3,323,017
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito 6,408 6,228 $ 25.59 $ 4.29 $ 3.55 $159,374 $ 110,552 $ 132,655 $ 328,470
Antamina 4,683 4,931 25.66 5.12 7.53 126,484 64,106 100,597 589,816
Constancia 1,395 1,125 25.41 6.03 7.56 28,605 13,306 22,109 208,537
Other (6) 7,157 5,460 25.54 8.31 5.48 139,461 64,166 97,241 602,796
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
19,643 17,744 $ 25.58 $ 5.87 $ 5.50 $453,924 $ 252,130 $ 352,602 $1,729,619
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 16,175 14,703 $ 2,512 $ 463 $ 442 $ 36,932 $ 23,622 $ 30,128 $ 234,883
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 1,912 658 $ 21.09 $ 4.67 $ 8.17 $ 13,878 $ 5,429 $ 1,244 $ 218,144
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Operating results $923,468 $ 508,253 $ 698,909 $5,505,663
------------------------------- ------- -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $(26,572) $ (25,898)
Share based compensation (13,746) (16,926)
Donations and community
investments (3,712) (3,247)
Finance costs (4,309) (3,246)
Other 2,194 315
Income tax 955 (51)
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
Total other $(45,190) $ (49,053) $ 541,077
---------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 463,063 $ 649,856 $6,046,740
------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
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, 777, Marmato and Cozamin
silver interests, the non-operating Loma de La Plata, Copper World
Complex (formerly referred to as Rosemont) and Pascua-Lama silver
interests and the previously owned Keno Hill silver interest. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On September
7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock.
On a gold equivalent and silver equivalent basis, results for
the Company for the nine months ended September 30, 2021 were as
follows:
Nine Months Ended September 30, 2021
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Cash Operating Depletion Margin
Ounces Ounces ($'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) 570,040 498,635 $ 1,852 $ 441 $ 1,411 $ 392 $ 1,019
Silver equivalent
basis (5) 42,753 37,398 $ 24.69 $ 5.88 $ 18.81 $ 5.23 $ 13.58
-------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
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 Nine Months Ended
September 30 September 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
---------------------------------------------------------- ---------- -------- ---------- --------
Net earnings $ 196,460 $134,937 $ 503,001 $463,063
Add back (deduct):
Impairment reversal (10,330) - (10,330) -
Gain on disposal of Mineral Stream Interest (104,425) - (104,425) -
(Gain) loss on fair value adjustment of share purchase
warrants held 204 1,246 1,101 2,392
(Gain) loss on fair value adjustment of convertible
notes receivable - 490 1,380 (4,136)
Income tax (expense) recovery recognized in the
Statement of Shareholders' Equity 3,644 (269) 4,143 837
Income tax (expense) recovery recognized in the
Statement of OCI 546 627 701 (1,989)
Income tax expense resulting from PMPA disposition, net
of above 7,779 - 7,779 -
Other - 56 (2,182) (319)
---------------------------------------------------------- --------- ------- --------- -------
Adjusted net earnings $ 93,878 $137,087 $ 401,168 $459,848
---------------------------------------------------------- --------- ------- --------- -------
Divided by:
Basic weighted average number of shares outstanding 451,757 450,326 451,402 449,977
Diluted weighted average number of shares outstanding 452,386 451,717 452,221 451,369
---------------------------------------------------------- --------- ------- --------- -------
Equals:
Adjusted earnings per share - basic $ 0.208 $ 0.304 $ 0.889 $ 1.022
Adjusted earnings per share - diluted $ 0.208 $ 0.303 $ 0.887 $ 1.019
---------------------------------------------------------- --------- ------- --------- -------
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 Nine Months Ended
September 30 September 30
(in thousands, except for per share amounts) 2022 2021 2022 2021
---------------------------------------------------------- ------------ -------- ----------- --------
Cash generated by operating activities $ 154,497 $201,287 $ 571,396 $649,856
---------------------------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 451,757 450,326 451,402 449,977
Diluted weighted average number of shares outstanding 452,386 451,717 452,221 451,369
---------------------------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share - basic $ 0.342 $ 0.447 $ 1.266 $ 1.444
Operating cash flow per share - diluted $ 0.342 $ 0.446 $ 1.264 $ 1.440
---------------------------------------------------------- -------- ------- ------- -------
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 Nine Months Ended
September 30 September 30
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2022 2021 2022 2021
-------------------------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 116,683 $ 117,505 $ 384,703 $ 415,215
Less: depletion (55,728) (54,976) (178,812) (195,458)
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 60,955 $ 62,529 $ 205,891 $ 219,757
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 29,398 $ 31,405 $ 105,719 $ 105,721
Total cash cost of silver sold 29,238 27,782 90,384 104,159
Total cash cost of palladium sold 1,493 2,667 4,475 6,804
Total cash cost of cobalt sold 826 675 5,313 3,073
-------------------------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 60,955 $ 62,529 $ 205,891 $ 219,757
-------------------------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 62,000 67,649 224,238 232,843
Total silver ounces sold 5,234 5,487 16,635 17,744
Total palladium ounces sold 4,227 5,703 11,680 14,703
Total cobalt pounds sold 115 131 851 658
-------------------------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 474 $ 464 $ 471 $ 454
Average cash cost of silver (per ounce) $ 5.59 $ 5.06 $ 5.43 $ 5.87
Average cash cost of palladium (per ounce) $ 353 $ 468 $ 383 $ 463
Average cash cost of cobalt (per pound) $ 7.21 $ 5.15 $ 6.24 $ 4.67
-------------------------------------------------------- -------- -------- --------- ---------
iv. Cash operating margin is calculated by subtracting the
average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis from the average realized
selling price of gold, silver and palladium on a per ounce basis
and cobalt on a per pound basis. The Company presents cash
operating margin as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis as well as to evaluate the Company's
ability to generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2022 2021 2022 2021
=========================================================== ============ ======== =========== ========
Total sales:
Gold $ 107,128 $121,416 $ 410,646 $418,734
Silver $ 100,270 $130,587 $ 364,829 $453,924
Palladium $ 8,838 $ 13,834 $ 25,574 $ 36,932
Cobalt $ 2,600 $ 3,120 $ 27,953 $ 13,878
Divided by:
Total gold ounces sold 62,000 67,649 224,238 232,843
Total silver ounces sold 5,234 5,487 16,635 17,744
Total palladium ounces sold 4,227 5,703 11,680 14,703
Total cobalt pounds sold 115 131 851 658
----------------------------------------------------------- -------- ------- ------- -------
Equals:
Average realized price of gold (per ounce) $ 1,728 $ 1,795 $ 1,831 $ 1,798
Average realized price of silver (per ounce) $ 19.16 $ 23.80 $ 21.93 $ 25.58
Average realized price of palladium (per ounce) $ 2,091 $ 2,426 $ 2,190 $ 2,512
Average realized price of cobalt (per pound) $ 22.68 $ 23.78 $ 32.85 $ 21.09
Less:
Average cash cost of gold (1) (per ounce) $ (474) $ (464) $ (471) $ (454)
Average cash cost of silver (1) (per ounce) $ (5.59) $ (5.06) $ (5.43) $ (5.87)
Average cash cost of palladium (1) (per ounce) $ (353) $ (468) $ (383) $ (463)
Average cash cost of cobalt (1) (per pound) $ (7.21) $ (5.15) $ (6.24) $ (4.67)
----------------------------------------------------------- -------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,254 $ 1,331 $ 1,360 $ 1,344
As a percentage of realized price of gold 73% 74% 74% 75%
Cash operating margin per silver ounce sold $ 13.57 $ 18.74 $ 16.50 $ 19.71
As a percentage of realized price of silver 71% 79% 75% 77%
Cash operating margin per palladium ounce sold $ 1,738 $ 1,958 $ 1,807 $ 2,049
As a percentage of realized price of palladium 83% 81% 83% 82%
Cash operating margin per cobalt pound sold $ 15.47 $ 18.63 $ 26.61 $ 16.42
As a percentage of realized price of cobalt 68% 78% 81% 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
termination of the Yauliyacu silver stream for $150 million, the
value of silver produced and delivered after January 1, 2022 and
the satisfaction of each party's obligations in accordance with
definitive documentation relating to the termination of the
Yauliyacu silver stream, the future price of commodities, the
estimation of future production from Mining Operations (including
in the estimation of production, mill throughput, grades,
recoveries and exploration potential), the estimation of mineral
reserves and mineral resources (including the estimation of reserve
conversion rates) and the realization of such estimations, the
commencement, timing and achievement of construction, expansion or
improvement projects by Wheaton's PMPA counterparties at mineral
stream interests owned by Wheaton (the "Mining Operations"), the
payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance
with PMPAs and royalty arrangements and the receipt by the Company
of precious metals and cobalt production in respect of the
applicable Mining Operations under PMPAs or other payments under
royalty arrangements, the ability of Wheaton's PMPA counterparties
to comply with the terms of a PMPA (including as a result of the
business, mining operations and performance of Wheaton's PMPA
counterparties) and the potential impacts of such on Wheaton,
future payments by the Company in accordance with PMPAs, the costs
of future production, the estimation of produced but not yet
delivered ounces, the impact of epidemics (including the COVID-19
virus pandemic), including the potential heightening of other
risks, future sales of common shares under the ATM program,
continued listing of the Company's common shares, any statements as
to future dividends, the ability to fund outstanding commitments
and the ability to continue to acquire accretive PMPAs, including
any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's
production mix, the ability of Wheaton's PMPA counterparties to
comply with the terms of any other obligations under agreements
with the Company, the ability to sell precious metals and cobalt
production, confidence in the Company's business structure, the
Company's assessment of taxes payable and the impact of the CRA
Settlement for years subsequent to 2010, possible domestic audits
for taxation years subsequent to 2016 and international audits, the
Company's assessment of the impact of any tax reassessments, the
Company's intention to file future tax returns in a manner
consistent with the CRA Settlement, the Company's climate change
and environmental commitments, and assessments of the impact and
resolution of various legal and tax matters, including but not
limited to audits. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "projects", "intends",
"anticipates" or "does not anticipate", or "believes", "potential",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved". Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of
activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking
statements, including but not limited to risks relating to the
termination of the Yauliyacu silver stream and the satisfaction of
each party's obligations in accordance with the terms of the
definitive documentation relating to the termination of the
Yauliyacu silver stream , 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): the receipt of $150 million from Glencore, the
estimated value of silver to be produced and delivered after
January 1, 2022 and the satisfaction of each party's obligations in
accordance with the terms of the definitive documentation relating
to the termination of the Yauliyacu silver stream, 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
SVP, 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
November 3, 2022, titled "Wheaton Precious Metals Declares
Quarterly Dividend."
[2] Company reports & S and P Capital IQ est. of 2022
byproduct cost curves for gold, zinc/lead, copper, PGM, nickel
& silver mines. GEOs and SEOs, which are provided to assist the
reader, are based on the following commodity price assumptions:
$1800/oz, silver $24/oz, palladium $2,100/oz and cobalt $33/lb.
[3] Portfolio mine life based on recoverable reserves and
resources as of Dec 31, 2021 and 2021 actual mill throughput and is
weighted by individual reserve and resource category.
[4] Five- and ten-year guidance do not include optionality
production from Pascua Lama, Navidad, Cotabambas, Metates or
additional expansions at Salobo outside of the project currently in
construction. In addition, five-year guidance also does not include
any production from Kutcho, or the Victor project at Sudbury.
[5] The Hecla shares represent approximately 6% of Hecla's
current issued and outstanding shares and are subject to a six
month hold period from the closing date of September 7, 2022.
This information is provided by RNS, the news service of the
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END
QRTGLBDBISGDGDS
(END) Dow Jones Newswires
November 04, 2022 03:00 ET (07:00 GMT)
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