TIDMWPM

RNS Number : 0720T

Wheaton Precious Metals Corp.

10 November 2023

November 9, 2023

Vancouver, British Columbia

Designated News Release

THIRD QUARTER FINANCIAL results

Wheaton Precious Metals Announces Solid Third Quarter Results for 2023

"The importance of having a diversified portfolio of high-quality, low-cost assets was evidenced by Wheaton's ability to deliver solid operating results in the quarter, despite the temporary suspension of one of our largest assets, which has since begun the safe ramp-up of operations. Strong outperformances from Salobo and Constancia, have not only offset challenges faced by others, but also contributed significantly to our overall success. As such, we are pleased to reiterate our annual production guidance range for 2023 of 600,000 to 660,000 gold equivalent ounces," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "In this high interest rate environment, streaming continues to be one of the most competitive sources of capital, and our corporate development team remains exceptionally busy evaluating new opportunities. We remain resolutely committed to enhancing our portfolio with growth that is accretive and sustainable, benefiting all stakeholders."

Solid Financial Results and Strong Balance Sheet

-- Third quarter of 2023: $223 million in revenue, $171 million in operating cash flow, $116 million in net earnings and $121 million in adjusted net earnings [1] .

-- A cash balance of $834 million and no debt as at September 30, 2023, after making total upfront cash payments of $90 million relative to mineral stream interests in the quarter.

   --   Undrawn $2 billion revolving credit facility maturing on June 22, 2028. 
   --   Declared a quarterly dividend (1) of $0.15 per common share. 

High Quality Asset Base

   --   Streaming agreements on 18 operating mines and 14 development projects. 

-- 93% of attributable production from assets in the lowest half of their respective cost curves [2](, [3]) .

-- 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration (2) (, [4]) .

-- Third quarter production increased quarter over quarter to 154,800 gold equivalent ounces(3) ("GEOs"), driven by strong outperformances at both Salobo and Constancia, and despite the temporary suspension at Peñasquito, highlighting the strength of our diversified portfolio.

-- Average annual production guidance for 2023 of 600,000 to 660,000 GEOs(2,3) is maintained, with sector-leading growth over the next five to ten years.

   --   Accretive portfolio growth: 

o Subsequent to the quarter, entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of $115 million.

o Acquired a 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide Gold Project for total cash consideration of $3.6 million, along with an equity investment totalling $5 million in Liberty Gold at C$0.34 per share.

Leadership in Sustainability

-- Top Rankings: #1 out of 117 precious metals companies and ranked in the Global Top 50 companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.

-- Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing's Corporate ESG Awards.

Operational Overview

 
(all figures in US 
dollars unless 
otherwise noted)      Q3 2023        Q3 2022       Change   YTD 2023         YTD 2022     Change 
------------------    -------   ------------  -----------   --------   --------------  --------- 
Units produced 
  Gold ounces         105,436         72,078       46.3 %    261,635          216,574     20.8 % 
  Silver ounces         3,363          5,822      (42.2)%     12,876           18,497    (30.4)% 
  Palladium ounces      4,006          3,229       24.1 %     11,591           11,616     (0.2)% 
  Cobalt pounds           183            226      (19.1)%        458              596    (23.1)% 
  Gold equivalent 
   ounces (3)         154,800        153,025        1.2 %    444,597          473,868     (6.2)% 
Units sold 
  Gold ounces          74,426         62,000       20.0 %    212,325          224,238     (5.3)% 
  Silver ounces         2,965          5,234      (43.4)%     11,151           16,635    (33.0)% 
  Palladium ounces      4,242          4,227        0.4 %     10,580           11,680     (9.4)% 
  Cobalt pounds           198            115       72.2 %        786              851     (7.6)% 
  Gold equivalent 
   ounces (3)         119,030        135,179      (11.9)%    375,248          460,026    (18.4)% 
Change in PBND and 
Inventory 
  Gold equivalent 
   ounces (3)          22,438          4,460     (17,978)     27,248         (32,368)   (59,616) 
-------------------   -------   ------------  -----------   --------   --------------  --------- 
Revenue              $223,137  $     218,836        2.0 %  $ 702,573  $       829,002    (15.3)% 
Net earnings         $116,371  $     196,460      (40.8)%  $ 369,209  $       503,001    (26.6)% 
  Per share          $  0.257  $       0.435      (40.9)%  $   0.815  $         1.114    (26.8)% 
Adjusted net 
 earnings (1)        $121,467  $      93,878       29.4 %  $ 368,481  $       401,168     (8.1)% 
  Per share (1)      $  0.268  $       0.208       28.8 %  $   0.814  $         0.889     (8.4)% 
Operating cash 
 flows               $171,103  $     154,497       10.7 %  $ 508,584  $       571,396    (11.0)% 
  Per share (1)      $  0.378  $       0.342       10.5 %  $   1.123  $         1.266    (11.3)% 
-------------------   -------   ------------  -----------   --------   --------------  --------- 
 

All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.

Financial Review

Revenues

Revenue in the third quarter of 2023 was $223 million (65% gold, 32% silver, 2% palladium and 1% cobalt) , with the $4 million increase relative to the prior period quarter being primarily due to a 16% increase in realized commodity prices, partially offset by lower sales volumes.

Revenue was $703 million in the nine months ended September 30, 2023, representing a $126 million decrease from the comparable period of the previous year due primarily to an 18% decrease in the number of GEOs(3) sold, resulting from lower production and relative changes in the GEOs(3) produced but not yet delivered; partially offset by a 4% increase in the average realized gold equivalent(3) price.

Cash Costs and Margin

Average cash costs(1) in the third quarter of 2023 were $418 per GEO(3) as compared to $451 in the third quarter of 2022. This resulted in a cash operating margin(1) of $1,457 per GEO(3) sold, an increase of 25% as compared with the third quarter of 2022 , a result of the higher realized price per ounce.

Average cash costs(1) for the nine months ended September 30, 2023 were $427 per GEO(3) as compared to $448 in the comparable period of the previous year. This resulted in a cash operating margin(1) of $1,445 per GEO(3) sold, a 7% increase from the comparable period of the previous year.

Cash Flow from Operations

Operating cash flow in the third quarter of 2023 amounted to $171 million, with the $17 million increase due primarily to the higher realized price per GEO sold coupled with higher amounts of interest received in the third quarter of 2023.

Operating cash flows for the nine months ended September 30, 2023 amounted to $509 million, with the $63 million decrease from the comparable period of the previous year being due primarily to lower sales volumes, partially offset by higher amounts of interest received during the current year.

Balance Sheet (at September 30, 2023 )

   --   Approximately $834 million of cash on hand 

-- During the third quarter of 2023, the Company made total upfront cash payments of $90 million relative to the mineral stream interests consisting of

- $70 million payment relative to the Blackwater Silver precious metals purchase agreement ("PMPA"); and

- a $20 million payment relative to the expansion of the Blackwater Gold PMPA

-- With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility , t he Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

Third Quarter Operating Asset Highlights

Salobo: In the third quarter of 2023, Salobo produced 69,000 ounces of attributable gold, an increase of approximately 56% relative to the third quarter of 2022, driven by higher throughput, with production from the third concentrator line commencing at the end of 2022, and higher recoveries. The prior year was also affected by planned and corrective maintenance being performed. In the third quarter of 2023, Salobo reached its highest production level since the fourth quarter of 2019 as the ramp-up of the Salobo III expansion continues to advance. Salobo is expected to reach a throughput capacity of 32 Mtpa in the fourth quarter of 2023 and full throughput capacity by the end of 2024.

Antamina: In the third quarter of 2023, Antamina produced 0.9 million ounces of attributable silver, a decrease of approximately 35% relative to the third quarter of 2022, primarily due to lower grades as per the mine plan .

Peñasquito: In the third quarter of 2023, Peñasquito had no production resulting from a suspension of operations at the mine which began on June 7, 2023 due to a labour dispute. On October 13, 2023, Newmont Corporation ("Newmont") reached a definitive agreement to end the strike and has since begun the safe ramp-up of operations. Newmont expects to reach full operating capacity by the end of the fourth quarter.

Constancia: In the third quarter of 2023, Constancia produced 0.7 million ounces of attributable silver and 19,000 ounces of attributable gold, an increase of approximately 24% and 164%, respectively, relative to the third quarter of 2022. Record quarterly gold production combined with strong silver production are a result of significantly higher grades from mining the high-grade zones of the Pampacancha deposit, higher recoveries and higher throughput. As per Hudbay Minerals Inc. ("Hudbay"), production is expected to continue to benefit from higher grades in the fourth quarter of 2023.

Sudbury: In the third quarter of 2023, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 24% relative to the third quarter of 2022, due to higher grades which as per Vale, were partially offset by the annual planned maintenance activities at the Sudbury and Thompson mines and mills, as well as additional maintenance at the Sudbury refinery in the third quarter.

Stillwater: In the third quarter of 2023, the Stillwater mines produced 2,500 ounces of attributable gold and 4,000 ounces of attributable palladium, an increase of approximately 34% for gold and 24% for palladium relative to the third quarter of 2022, due primarily to the impact on production resulting from regional flooding that occurred in the second quarter of 2022.

San Dimas: In the third quarter of 2023, San Dimas produced 10,000 ounces of attributable gold, a decrease of approximately 15% relative to the third quarter of 2022 , primarily due to lower grades, partially offset by higher throughput.

Voisey's Bay: In the third quarter of 2023, the Voisey's Bay mine produced 183,000 pounds of attributable cobalt, a decrease of approximately 19% relative to the third quarter of 2022, primarily due to mining lower grade material during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay underground project. Production in the third quarter was also impacted as a result of maintenance at the Long Harbour Refinery. Vale reports that physical completion of the Voisey's Bay underground mine extension was 88% at the end of the third quarter, with Reid Brook's bulk material handling system near mechanical completion, and the commissioning of sub-systems currently taking place. Vale achieved the first ore production from the Reid Brook deposit, the first of two underground mines to be developed in the project, in the second quarter of 2021. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is continuing its scheduled production ramp-up.

Other Gold: In the third quarter of 2023, total Other Gold attributable production was 700 ounces, a decrease of approximately 81% relative to the third quarter of 2022, primarily due to the closure of the Minto mine in May 2023.

Other Silver: In the third quarter of 2023, total Other Silver attributable production was 1.8 million ounces, a decrease of approximately 6% relative to the third quarter of 2022, primarily due to the termination of the Yauliyacu PMPA.

Aljustrel: On September 12, 2023, it was announced that as a result of low zinc prices, the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

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

Blackwater Project: On July 4, 2023, Artemis announced receipt of the Fisheries Act Authorization for development of the Blackwater Project, which will facilitate the commencement of construction of water diversion structures and dams in the Davidson Creek valley which runs through the basin of the Blackwater tailings storage facility. On October 24, 2023, Artemis announced that overall construction at the Blackwater mine was 45% complete as of September 30, 2023. Project development continues to advance on the schedule, targeting first gold pour in the second half of 2024.

Marmato Mine: On July 12, 2023, Aris Mining announced that they have received approval from the Corporación Autónoma Regional del Caldas, a regional environmental authority in Colombia, of the Environmental Management Plan, which now permits the development of the Marmato Lower Mine.

Marathon Project: On August 30, 2023, Generation Mining Limited ("Gen Mining") received the Endangered Species Act permit issued by the Ministry of the Environment, Conservation and Parks. This permit includes conditions intended to minimize impacts to caribou and SAR bats, as well as to create an overall benefit for these species at risk. Additionally, in September 2023, Gen Mining received the Environmental Compliance Approval issued by the Ministry of Environment, Conservations and Parks for air and noise emissions for the Marathon Project, and on November 7, 2023, announced that the province of Ontario had accepted and filed the Closure Plan, representing another major milestone in the permitting process. Additional permits and approvals are expected to be received during the balance of 2023.

Copper World Complex: On September 8, 2023, Hudbay announced the results of the enhanced pre-feasibility study for Phase I of its 100%-owned Copper World project in Arizona. After receipt of two outstanding permits which are expected in mid-2024, Hudbay intends to complete a minority joint venture partner process prior to commencing a definitive feasibility study. The opportunity to sanction Copper World is not expected until 2025 based on current estimated timelines. With the results from this pre-feasibility study, the Company has now incorporated gold in the mineral reserves and mineral resources statement on our website.

Curipamba Project: On September 11, 2023, Adventus provided an update that the Constitutional Court of Ecuador declared that processing of an unconstitutionality claim filed by the indigenous group CONAIE and other complainants against Presidential Decree 754 that regulates environmental consultation for all public and private industries and sectors in Ecuador was a priority and set a public hearing for September 18, 2023. Adventus has indicated that historically the Court can be expected to issue a resolution within two to three months following the public hearing commencement.

On October 2, 2023, Adventus announced that the El Domo - Curipamba project has been issued a favourable Certificate of No Affect of Water by the Ministry of Environment and Water of the Government of Ecuador. This certificate and milestone allow the planned and designed projected infrastructure construction in an area with the presence of surface and ground water sources.

Goose Project: On September 18, 2023, B2Gold provided a construction update on the Goose Project highlighting that the purchasing of materials and supplies needed to support the 2024 construction campaign has been completed and all materials have been provided to the ports for the 2023 sealift. Additionally, B2Gold reported that it remains on track to pour first gold in the first quarter of 2025, and that concrete and steel work in the mill area are progressing ahead of schedule.

Cangrejos Project

On October 18, 2023, Lumina Gold Corp., ("Lumina") announced that the Cangrejos project is proceeding on schedule. Lumina has been actively executing its 2023 feasibility study drill plan with nine rigs currently at site. Lumina has signed contracts with several engineering companies for the advancement of the feasibility study. The feasibility study is expected to be completed in the first quarter of 2025.

Corporate Development

Black Pine Project

On September 10, 2023, the Company acquired a new 0.5% Net Smelter Royalty ("NSR") from Liberty Gold Corp., ("Liberty Gold") on the Black Pine Oxide Gold Project ("Black Pine") for total cash consideration of $4 million. Liberty Gold has been granted an option to repurchase 50% of the NSR for $4 million at any point in time up to the earlier of commercial production at Black Pine or January 1, 2030. The Company has been granted a Right of First Refusal on all royalties, streams or pre-pays that include precious metals pertaining to Black Pine. In addition, the Company made an equity investment of $5 million in Liberty Gold at C$0.34 per share.

Mineral Park Project

On October 24, 2023, the Company announced that it had entered into a PMPA (the "Mineral Park PMPA") with Waterton Copper in respect of silver production from the Mineral Park mine located in Arizona, USA (the "Project" or "Mineral Park"). Under the Mineral Park PMPA, Wheaton will purchase 100% of the payable silver from Mineral Park for the life of the mine. Under the terms of the Mineral Park PMPA, the Company is committed to pay Waterton Copper total upfront cash consideration of $115 million in four payments during construction through three installments of $25 million and a final installment of $40 million. In addition, Wheaton will make ongoing payments for the silver ounces delivered equal to 18% of the spot price of silver until the value of the silver delivered, net of the production payment, is equal to the upfront consideration of $115 million, at which point the production payment will increase to 22% of the spot price of silver. The Company has also entered into a loan agreement to provide a secured debt facility of up to $25 million to the Mineral Park owner, an affiliate of Waterton Copper, once the full upfront consideration has been paid.

Sustainability

Ratings & Awards:

-- In the third quarter of 2023, Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing's Corporate ESG Awards.

Community Investment Program:

-- In the third quarter of 2023, the Tour De Cure Presented by Wheaton attracted over 1,500 riders and raised more than $7.1 million for the BC Cancer Foundation.

-- In the third quarter of 2023, a number of new programs were established with First Majestic Silver. These include support for the operation of a community centre, improvements to a solid waste storage facility and the implementation of a recycling program, as well as the implementation and operation of wastewater treatment facilities in the community of Tayoltita. In addition, Wheaton also committed to assisting First Majestic Silver in providing internet access for several remote communities close to the mine.

Management Update

Wheaton announces management changes effective October 1, 2023, including the creation of a Chief Sustainability Officer position as well as Vice President appointments. Patrick Drouin, Wheaton's former Senior Vice President of Sustainability and Investor Relations, has been appointed President of Wheaton International, succeeding Nik Tatarkin who although retiring from management, will remain on the Board of Wheaton International. Mr. Drouin will continue to oversee the Company's ESG practices and performance at the executive level as President of Wheaton International and Chief Sustainability Officer.

Emma Murray has been appointed Vice President, Investor Relations, effective October 1, 2023, and will be primarily responsible for liaising with the investment community and ensuring the market is well-informed about Wheaton's strategic vision, financial performance and growth prospects.

Simona Antolak has been appointed Vice President, Communications and Corporate Affairs, with responsibility over external and internal communications as well as sustainability matters.

These changes further strengthen Wheaton's global management team.

About Wheaton Precious Metals Corp. and Outlook

Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.

Wheaton's estimated attributable production in 2023 is forecast to be approximately 600,000 to 660,000 GEOs, unchanged from previous guidance(2) (,) (3) . Due to the temporary suspension of the Peñasquito mine from June 7, 2023 to October 13, 2023, Wheaton now expects its full-year production to have a higher weighting toward gold. The Company has previously estimated that average annual production for the five-year period ending in 2027 would amount to 810,000 GEOs, while for the ten-year period ending in 2032, the Company estimated that average annual production would amount to 850,000 GEOs. The Company will provide updated longer-term guidance in normal course in the first quarter of 2024, which will incorporate the impact of recent developments and acquisitions (2) (,) (3) .

In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries

Webcast and Conference Call Details

A conference call will be held on Friday, November 10 , 2023, starting at 11:00 am ET (8:00 am PT ) 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:                                                      35621453 
   Live webcast:                                                  Webcast URL 

The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call. The conference call will be recorded and available until November 17, 2023 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:

   Dial toll free from Canada or the US:             1-888-390-0541 
   Dial from outside Canada or the US:             1-416-764-8677 
   Pass code:                                                      621453 # 
   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.sedarplus.ca.

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 .

For further information:

Investor Contact

Emma Murray

Vice President, Investor Relations

Tel: 1-844-288-9878

Email: info@wheatonpm.com

Media Contact

Simona Antolak

Vice President, Communications & Corporate Affairs

Tel: 604-639-9870

Email: simona.antolak@wheatonpm.com

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)                                                        2023        2022       2023        2022 
--------------------------------------------------------------  ---------  ----------  ---------  ---------- 
Sales                                                           $ 223,137  $  218,836  $ 702,573  $  829,002 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Cost of sales 
   Cost of sales, excluding depletion                           $  49,808  $   60,955  $ 160,413  $  205,891 
   Depletion                                                       46,435      55,728    145,908     178,812 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Total cost of sales                                             $  96,243  $  116,683  $ 306,321  $  384,703 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Gross margin                                                    $ 126,894  $  102,153  $ 396,252  $  444,299 
General and administrative expenses                                 8,606       8,360     28,922      27,448 
Share based compensation                                            4,336          77     16,217      11,586 
Donations and community investments                                 1,736       1,406      5,054       3,379 
Impairment reversal of mineral stream interests                         -    (10,330)          -    (10,330) 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Earnings from operations                                        $ 112,216  $  102,640  $ 346,059  $  412,216 
Gain on disposal of mineral stream interest                             -   (104,425)    (5,027)   (104,425) 
Other (income) expense                                           (10,707)     (2,799)   (26,961)     (3,448) 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Earnings before finance costs and income taxes                  $ 122,923  $  209,864  $ 378,047  $  520,089 
Finance costs                                                       1,407       1,398      4,138       4,209 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Earnings before income taxes                                    $ 121,516  $  208,466  $ 373,909  $  515,880 
Income tax expense                                                (5,145)    (12,006)    (4,700)    (12,879) 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Net earnings                                                    $ 116,371  $  196,460  $ 369,209  $  503,001 
--------------------------------------------------------------   --------   ---------   --------   --------- 
Basic earnings per share                                        $   0.257  $    0.435  $   0.815  $    1.114 
Diluted earnings per share                                      $   0.257  $    0.434  $   0.814  $    1.112 
Weighted average number of shares outstanding 
      Basic                                                       452,975     451,757    452,748     451,402 
      Diluted                                                     453,538     452,386    453,419     452,221 
==============================================================   ========   =========   ========   ========= 
 

Condensed Interim Consolidated Balance Sheets

 
                                                               As at            As at 
                                                        September 30      December 31 
 (US dollars in thousands - unaudited)                          2023             2022 
-------------------------------------------------  -----------------  --------------- 
 Assets 
 Current assets 
      Cash and cash equivalents                       $      833,919    $     696,089 
      Accounts receivable                                     10,492           10,187 
      Cobalt inventory                                         2,429           10,530 
      Taxes receivable                                         5,000                - 
      Other                                                    4,353            3,287 
-------------------------------------------------------  -----------  ---  ---------- 
 Total current assets                                 $      856,193    $     720,093 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Non-current assets 
      Mineral stream interests                        $    5,737,454    $   5,707,019 
      Early deposit mineral stream interests                  47,093           46,092 
      Long-term equity investments                           200,893          256,095 
      Property, plant and equipment                            8,092            4,210 
      Other                                                   31,790           26,397 
-------------------------------------------------------  -----------  ---  ---------- 
 Total non-current assets                             $    6,025,322    $   6,039,813 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total assets                                         $    6,881,515    $   6,759,906 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Liabilities 
 Current liabilities 
      Accounts payable and accrued liabilities        $       11,999    $      12,570 
      Current taxes payable                                        -            2,763 
      Current portion of performance share units               9,404           14,566 
      Current portion of lease liabilities                       590              818 
 Total current liabilities                            $       21,993    $      30,717 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Non-current liabilities 
      Performance share units                         $        6,222    $       6,673 
      Lease liabilities                                        5,654            1,152 
      Deferred income taxes                                      189              165 
      Pension liability                                        4,196            3,524 
-------------------------------------------------------  -----------  ---  ---------- 
 Total non-current liabilities                        $       16,261    $      11,514 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total liabilities                                    $       38,254    $      42,231 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Shareholders' equity 
 Issued capital                                       $    3,774,333    $   3,752,662 
 Reserves                                                   (78,872)           66,547 
 Retained earnings                                         3,147,800        2,898,466 
-------------------------------------------------------  -----------  ---  ---------- 
 Total shareholders' equity                           $    6,843,261    $   6,717,675 
-------------------------------------------------  ----  -----------  ---  ---------- 
 Total liabilities and shareholders' equity           $    6,881,515    $   6,759,906 
-------------------------------------------------  ----  -----------  ---  ---------- 
 

Condensed Interim Consolidated Statements of Cash Flows

 
                                                                Three Months Ended      Nine Months Ended 
                                                                    September 30           September 30 
(US dollars in thousands - unaudited)                               2023        2022        2023        2022 
-------------------------------------------------------------  ---------  ----------  ----------  ---------- 
Operating activities 
Net earnings                                                   $ 116,371  $  196,460  $  369,209  $  503,001 
Adjustments for 
     Depreciation and depletion                                   46,784      56,129     147,031     180,004 
     Gain on disposal of mineral stream interest                       -   (104,425)     (5,027)   (104,425) 
      Impairment (reversal of impairment) of mineral stream 
       interests                                                       -    (10,330)           -    (10,330) 
     Interest expense                                                 78          22         131          72 
     Equity settled stock based compensation                       1,732       1,568       5,133       4,407 
     Performance share units - expense                             2,604     (1,491)      11,084       7,179 
     Performance share units - paid                                    -       (163)    (16,675)    (18,411) 
     Pension expense                                                 329         291         787         720 
     Pension paid                                                      -           -       (116)           - 
     Income tax expense (recovery)                                 5,145      12,006       4,700      12,879 
      Loss (gain) on fair value adjustment of share purchase 
       warrants held                                                 143         204         248       1,101 
     Investment income recognized in net earnings               (10,537)     (1,953)    (26,564)     (2,696) 
     Other                                                           163       (349)         662       (440) 
Change in non-cash working capital                                 (489)       4,728       (876)     (3,825) 
=============================================================   ========   =========   =========   ========= 
Cash generated from operations before income taxes and 
 interest                                                      $ 162,323  $  152,697  $  489,727  $  569,236 
Income taxes paid                                                  (912)        (29)     (5,244)       (141) 
Interest paid                                                       (79)        (22)       (112)        (73) 
Interest received                                                  9,771       1,851      24,213       2,374 
=============================================================   ========   =========   =========   ========= 
Cash generated from operating activities                       $ 171,103  $  154,497  $  508,584  $  571,396 
=============================================================   ========   =========   =========   ========= 
Financing activities 
Credit facility extension fees                                 $    (13)  $  (1,205)  $    (859)  $  (1,207) 
Share purchase options exercised                                      93           -      10,603       7,549 
Lease payments                                                     (169)       (201)       (548)       (603) 
Dividends paid                                                  (66,994)    (59,487)   (198,085)   (176,604) 
=============================================================   ========   =========   =========   ========= 
Cash used for financing activities                             $(67,083)  $ (60,893)  $(188,889)  $(170,865) 
=============================================================   ========   =========   =========   ========= 
Investing activities 
Mineral stream interests                                       $(90,710)  $ (46,675)  $(210,944)  $(107,476) 
Early deposit mineral stream interests                             (250)       (750)     (1,000)     (1,500) 
Mineral royalty interest                                         (3,602)           -     (3,602)           - 
Net proceeds on disposal of mineral stream interests                   -       (139)      46,400       (139) 
Acquisition of long-term investments                             (5,006)           -    (13,181)    (22,768) 
Proceeds on disposal of long-term investments                          -           -         202           - 
Dividends received                                                   700         102       1,617         322 
Other                                                               (35)        (69)     (1,804)       (194) 
=============================================================   ========   =========   =========   ========= 
Cash used for investing activities                             $(98,903)  $ (47,531)  $(182,312)  $(131,755) 
=============================================================   ========   =========   =========   ========= 
Effect of exchange rate changes on cash and cash equivalents   $    (35)  $     (81)  $      447  $    (203) 
=============================================================   ========   =========   =========   ========= 
Increase in cash and cash equivalents                          $   5,082  $   45,992  $  137,830  $  268,573 
Cash and cash equivalents, beginning of period                   828,837     448,626     696,089     226,045 
=============================================================   ========   =========   =========   ========= 
Cash and cash equivalents, end of period                       $ 833,919  $  494,618  $  833,919  $  494,618 
-------------------------------------------------------------   --------   ---------   ---------   --------- 
 

Summary of Units Produced

 
                                  Q3 2023                Q2 2023                 Q1 2023                Q4 2022            Q3 2022            Q2 2022            Q1 2022           Q4 2021 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Gold ounces 
produced (2) 
  Salobo                           69,045                 54,804                  43,677                 37,939             44,212             34,129             44,883            48,235 
  Sudbury (3)                       4,266                  5,818                   6,203                  5,270              3,437              5,289              5,362             4,379 
  Constancia                       19,003                  7,444                   6,905                 10,496              7,196              8,042              6,311             9,857 
  San Dimas (4)                     9,995                 11,166                  10,754                 10,037             11,808             10,044             10,461            13,714 
  Stillwater (5)                    2,454                  2,017                   1,960                  2,185              1,833              2,171              2,497             2,664 
  Other 
       Marmato                        673                    639                     457                    533                542                778                477               479 
       777 (6)                          -                      -                       -                      -                  -              3,509              4,003             4,462 
       Minto                            -                  1,292                   3,063                  2,567              3,050              2,480              4,060             3,506 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
  Total Other                         673                  1,931                   3,520                  3,100              3,592              6,767              8,540             8,447 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Total gold ounces 
produced                          105,436                 83,180                  73,019                 69,027             72,078             66,442             78,054            87,296 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Silver ounces 
produced (2) 
  Peñasquito 
  (7)                                   -                  1,744                   2,076                  1,761              2,017              2,089              2,219             2,145 
  Antamina                            864                    960                     851                  1,067              1,327              1,330              1,210             1,309 
  Constancia                          697                    420                     552                    655                564                584                506               578 
  Other 
       Los Filos                       28                     28                      28                     14                 21                 35                 42                37 
       Zinkgruvan                     785                    374                     632                    664                642                739                577               482 
       Neves-Corvo                    486                    407                     436                    369                323                345                344               522 
       Aljustrel                      327                    279                     343                    313                246                292                287               325 
       Cozamin                        165                    184                     141                    157                179                169                186               213 
       Marmato                         11                      7                       8                      9                  7                  7                 11                 7 
       Yauliyacu 
       (8)                              -                      -                       -                    261                463                756                637               382 
       Stratoni 
       (9)                              -                      -                       -                      -                  -                  -                  -               129 
       Minto                            -                     14                      29                     33                 33                 26                 45                44 
       Keno Hill 
       (10)                             -                      -                       -                      -                  -                 48                 20                30 
       777 (6)                          -                      -                       -                      -                  -                 80                 91                96 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
  Total Other                       1,802                  1,293                   1,617                  1,820              1,914              2,497              2,240             2,267 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Total silver 
ounces produced                     3,363                  4,417                   5,096                  5,303              5,822              6,500              6,175             6,299 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Palladium ounces 
produced (2) 
  Stillwater (5)                    4,006                  3,880                   3,705                  3,869              3,229              3,899              4,488             4,733 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Cobalt pounds 
produced (2) 
  Voisey's Bay                        183                    152                     124                    128                226                136                234               381 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
GEOs produced (11)                154,800                145,797                 144,000                142,887            153,025            155,932            164,911           177,490 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
Average payable 
rate (2) 
  Gold                              95.5%                 95.1 %                  95.1 %                 94.9 %             95.1 %             95.1 %              95.2%             96.0% 
  Silver                            79.0%                  83.2%                   82.3%                  83.6%              85.8%              85.9%              86.3%             86.2% 
  Palladium                         93.6%                  94.1%                   96.0%                  91.7%              95.0%              94.6%              92.7%             92.2% 
  Cobalt                            93.3%                  93.3%                   93.3%                  93.3%              93.3%              93.3%              93.3%             93.3% 
  GEO (11)                          90.8%                  90.4%                   89.3%                  89.3%              90.4%              90.4%              90.7%             91.5% 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  -----------------  -----------------  ---------------- 
 
   1)   All figures in thousands except gold and palladium ounces produced. 

2) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received.

   3)   Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. 

4) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. For reference, attributable silver production from prior periods is as follows: Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces; Q3 2022 - 412,000 ounces; Q2 2022 - 382,000 ounces; Q1 2022 - 408,000 ounces; Q4 2021 - 544,000 ounces.

   5)   Comprised of the Stillwater and East Boulder gold and palladium interests. 

6) On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

7) There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023.

8) On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million.

   9)   The Stratoni mine was placed into care and maintenance during Q4-2021. 

10) On September 7, 2022, the Company terminated the Keno Hill PMPA in exchange for $141 million of Hecla common stock.

11) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

Summary of Units Sold

 
                                  Q3 2023                Q2 2023                 Q1 2023                Q4 2022            Q3 2022             Q2 2022           Q1 2022           Q4 2021 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Gold ounces sold 
  Salobo                           44,444                 46,030                  35,966                 41,029             31,818              48,515            42,513            47,171 
  Sudbury (2)                       4,836                  4,775                   4,368                  4,988              5,147               7,916             3,712               965 
  Constancia                       12,399                  9,619                   6,579                  6,013              6,336               7,431            10,494             6,196 
  San Dimas                         9,695                 11,354                  10,651                 10,943             10,196              10,633            10,070            15,182 
  Stillwater (3)                    1,985                  2,195                   2,094                  1,783              2,127               2,626             2,628             2,933 
  Other 
       Marmato                        792                    467                     480                    473                719                 781               401               423 
       777                            275                    153                     126                    785              3,098               3,629             4,388             4,290 
       Minto                            -                    701                   2,341                  2,982              2,559               2,806             3,695             2,462 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
  Total Other                       1,067                  1,321                   2,947                  4,240              6,376               7,216             8,484             7,175 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Total gold ounces 
sold                               74,426                 75,294                  62,605                 68,996             62,000              84,337            77,901            79,622 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Silver ounces sold 
  Peñasquito                     453                  1,913                   1,483                  2,066              1,599               2,096             2,188             1,818 
  Antamina                            794                    963                     814                  1,114              1,155               1,177             1,468             1,297 
  Constancia                          435                    674                     366                    403                498                 494               644               351 
  Other 
       Los Filos                       30                     37                      34                     16                 24                  41                42                17 
       Zinkgruvan                     714                    370                     520                    547                376                 650               355               346 
       Neves-Corvo                    245                    132                     171                     80                105                 167               204               259 
       Aljustrel                      142                    182                     205                    156                185                 123               145               133 
       Cozamin                        139                    150                     119                    150                154                 148               177               174 
       Marmato                         11                      7                       7                      7                  8                  11                 8                 8 
       Yauliyacu                        -                      -                       -                    337              1,005                 817                44               551 
       Stratoni                         -                      -                       -                      -                  -                 (2)               133                42 
       Minto                            -                      7                      29                     23                 22                  21                31                27 
       Keno Hill                        -                      -                       1                      1                 30                  30                27                24 
       777                              2                      2                       -                     35                 73                  75                87                69 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
  Total Other                       1,283                    887                   1,086                  1,352              1,982               2,081             1,253             1,650 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Total silver 
ounces sold                         2,965                  4,437                   3,749                  4,935              5,234               5,848             5,553             5,116 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Palladium ounces 
sold 
  Stillwater (3)                    4,242                  3,392                   2,946                  3,396              4,227               3,378             4,075             4,641 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Cobalt pounds sold 
  Voisey's Bay                        198                    265                     323                    187                115                 225               511               228 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
GEOs sold (4)                     119,030                138,835                 117,383                138,218            135,179             165,766           159,082           152,826 
Cumulative payable 
units PBND (5) 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
Gold ounces                        99,923                 73,403                  69,479                 62,602             65,978              59,331            81,365            84,989 
  Silver ounces                     1,071                  1,325                   2,065                  1,606              2,287               2,438             2,693             3,042 
  Palladium ounces                  5,607                  6,122                   5,751                  5,098              5,041               6,267             5,535             5,629 
  Cobalt pounds                       376                    250                     285                    257                402                 280               550               596 
  GEO (4)                         123,086                 99,084                 104,749                 91,001            104,623              99,895           127,257           135,964 
  Inventory on 
  hand 
  Cobalt pounds                       155                    310                     398                    633                556                 582               410               657 
------------------  ---------------------  ---------------------  ----------------------  ---------------------  -----------------  ------------------  ----------------  ---------------- 
 
   1)   All figures in thousands except gold and palladium ounces sold. 
   2)   Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. 
   3)   Comprised of the Stillwater and East Boulder gold and palladium interests. 

4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

5) Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received.

Results of Operations

The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.

 
                                                                                Three Months Ended September 30, 2023 
--------------------------------------------------------------------------------------------------------------------- 
                                           Average 
                                          Realized    Average    Average 
                                             Price  Cash Cost  Depletion                        Cash Flow 
                          Units   Units       ($'s   ($'s Per   ($'s Per                  Net        From       Total 
                    Produced(2)    Sold  Per Unit)  Unit) (3)      Unit)     Sales   Earnings  Operations      Assets 
------------------  -----------  ------  ---------  ---------  ---------  --------  ---------  ----------  ---------- 
Gold 
  Salobo                 69,045  44,444  $   1,944  $     420  $     330  $ 86,395  $  53,026  $   67,710  $2,341,485 
  Sudbury (4)             4,266   4,836      1,950        400      1,204     9,428      1,669       7,494     268,224 
  Constancia             19,003  12,399      1,944        419        316    24,102     14,991      18,906      86,555 
  San Dimas               9,995   9,695      1,944        631        260    18,846     10,216      12,732     147,638 
  Stillwater              2,454   1,985      1,944        349        510     3,859      2,154       3,167     212,650 
  Other (5)                 673   1,067      1,945        368        391     2,077      1,266       1,684     557,035 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                        105,436  74,426  $   1,944  $     444  $     381  $144,707  $  83,322  $  111,693  $3,613,587 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Silver 
  Peñasquito             -     453  $   23.82  $    4.43  $    4.06  $ 10,804  $   6,952  $    8,795  $  278,028 
  Antamina                  864     794      23.82       4.81       7.06    18,915      9,496      15,097     527,227 
  Constancia                697     435      23.82       6.18       6.24    10,360      4,958       7,674     183,736 
  Other (6)               1,802   1,283      23.62       5.15       2.64    30,293     20,301      19,439     549,641 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
                          3,363   2,965  $   23.73  $    5.10  $    4.57  $ 70,372  $  41,707  $   51,005  $1,538,632 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Palladium 
  Stillwater              4,006   4,242  $   1,251  $     223  $     459  $  5,307  $   2,416  $    4,361  $  222,154 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Platinum 
  Marathon                    -       -  $    n.a.  $    n.a.  $    n.a.  $      -  $       -  $        -  $    9,450 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay              183     198  $   13.87  $    3.66  $   12.98  $  2,751  $   (551)  $    4,235  $  353,631 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Operating results                                                         $223,137  $ 126,894  $  171,294  $5,737,454 
-------------------------------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Other 
  General and administrative                                                        $ (8,606)  $  (6,321) 
  Share based compensation                                                            (4,336)           - 
  Donations and community 
   investments                                                                        (1,736)     (1,750) 
  Finance costs                                                                       (1,407)     (1,078) 
  Other                                                                                10,707       9,870 
  Income tax                                                                          (5,145)       (912) 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
Total other                                                                         $(10,523)  $    (191)  $1,144,061 
---------------------------------------   --------   --------   --------   -------   --------   ---------   --------- 
                                                                                    $ 116,371  $  171,103  $6,881,515 
------------------  -----------  ------   --------   --------   --------   -------   --------   ---------   --------- 
 

1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.

2) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   3)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 

4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.

5) Comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

6) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

7) Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million, resulting in a decrease of $0.51 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

On a gold equivalent basis, results for the Company for the three months ended September 30, 2023 were as follows:

 
                                                                                 Three Months Ended September 30, 2023 
---------------------------------------------------------------------------------------------------------------------- 
                                                   Average 
                                                  Realized       Average       Cash Operating      Average       Gross 
                                                     Price     Cash Cost               Margin    Depletion      Margin 
                              Ounces    Ounces    ($'s Per      ($'s Per      ($'s Per Ounce)     ($'s Per    ($'s Per 
                        Produced (1)      Sold      Ounce)    Ounce) (2)                  (3)       Ounce)      Ounce) 
--------------------  --------------  --------  ----------  ------------  -------------------  -----------  ---------- 
 Gold equivalent 
  basis (4)                  154,800   119,030     $ 1,875         $ 418              $ 1,457        $ 390     $ 1,067 
--------------------  --------------  --------  ----------  ------------  -------------------  -----------  ---------- 
 

1) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   2)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   3)   Refer to discussion on non-IFRS measure (iv) at the end of this press release. 

4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 
                                                                                                Three Months Ended 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)             3,437   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)               3,592   6,376         1,743        694         59    11,113            -      6,311       5,562     461,359 
                         72,078  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                1,327   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)               1,914   1,982         18.93       7.51       6.84    37,513      114,755    123,823      21,896     538,739 
                          5,822   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)  $  (5,342) 
  Share based compensation                                                                               (77)       (163) 
  Donations and community 
   investments                                                                                        (1,406)     (1,410) 
  Finance costs                                                                                       (1,398)     (1,020) 
  Other                                                                                                 2,799       1,848 
  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 represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   3)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   4)   Relates to the termination of the Keno Hill PMPA. 

5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.

6) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

On a gold 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)      Sold      Ounce)    Ounce) (2)                  (3)       Ounce)      Ounce) 
--------------------  --------------  --------  ----------  ------------  -------------------  -----------  ---------- 
 Gold equivalent 
  basis (4)                  153,025   135,179     $ 1,619         $ 451              $ 1,168        $ 412       $ 756 
--------------------  --------------  --------  ----------  ------------  -------------------  -----------  ---------- 
 

1) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   2)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   3)   Refer to discussion on non-IFRS measure (iv) at the end of this press release. 

4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 
                                                                                             Nine Months Ended September 30, 2023 
--------------------------------------------------------------------------------------------------------------------------------- 
                                            Average 
                                           Realized    Average    Average 
                                              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                167,526  126,440  $   1,947  $     420  $     330  $246,219  $       -  $ 151,287  $  193,063  $2,341,485 
  Sudbury (5)            16,287   13,979      1,953        400      1,087    27,295          -      6,512      21,420     268,224 
  Constancia             33,352   28,597      1,948        417        316    55,718          -     34,751      43,779      86,555 
  San Dimas              31,915   31,700      1,945        628        260    61,657          -     33,535      41,762     147,638 
  Stillwater              6,431    6,274      1,945        347        510    12,201          -      6,824      10,026     212,650 
  Other (6)               6,124    5,335      1,935      1,119        172    10,324          -      3,439       4,090     557,035 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
                        261,635  212,325  $   1,947  $     465  $     369  $413,414  $       -  $ 236,348  $  314,140  $3,613,587 
==================  ===========  =======   ========   ========   ========   =======   ========   ========   =========   ========= 
Silver 
  Peñasquito         3,820    3,849  $   23.63  $    4.43  $    4.06  $ 90,967  $       -  $  58,268  $   73,915  $  278,028 
  Antamina                2,675    2,571      23.65       4.69       7.06    60,812          -     30,625      48,765     527,227 
  Constancia              1,669    1,475      23.75       6.15       6.24    35,034          -     16,750      25,962     183,736 
  Other (7)               4,712    3,256      23.44       5.58       2.82    76,316      5,027     53,966      55,364     549,641 
                                                                                      --------   -------- 
                         12,876   11,151  $   23.60  $    5.05  $    4.68  $263,129  $   5,027  $ 159,609  $  204,006  $1,538,632 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
Palladium 
  Stillwater             11,591   10,580  $   1,410  $     255  $     440  $ 14,922  $       -  $   7,565  $   12,223  $  222,154 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
Platinum 
  Marathon                    -        -  $    n.a.  $    n.a.  $    n.a.  $      -  $       -  $       -  $        -  $    9,450 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
Cobalt 
  Voisey's Bay              458      786  $   14.13  $    3.36  $   13.63  $ 11,108  $       -  $ (2,243)  $   13,056  $  353,631 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
Operating results                                                          $702,573  $   5,027  $ 401,279  $  543,425  $5,737,454 
-------------------------------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
Other 
  General and administrative                                                                    $(28,922)  $ (29,702) 
  Share based compensation                                                                       (16,217)    (16,675) 
  Donations and community 
   investments                                                                                    (5,054)     (4,896) 
  Finance costs                                                                                   (4,138)     (3,147) 
  Other                                                                                            26,961      24,823 
  Income tax                                                                                      (4,700)     (5,244) 
Total other                                                                                     $(32,070)  $ (34,841)  $1,144,061 
----------------------------------------   --------   --------   --------   -------   --------   --------   ---------   --------- 
                                                                                                $ 369,209  $  508,584  $6,881,515 
------------------  -----------  -------   --------   --------   --------   -------   --------   --------   ---------   --------- 
 

1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.

2) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   3)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 

4) The gain on disposal of Other silver interests relates to the gain on the buyback of 33% of the Goose 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 Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

8) Cash cost per pound of cobalt sold during the nine months ended September 30, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

On a gold equivalent basis, results for the Company for the nine months ended September 30, 2023 were as follows:

 
                                                                                  Nine Months Ended September 30, 2023 
---------------------------------------------------------------------------------------------------------------------- 
                                                    Average 
                                                   Realized      Average                            Average      Gross 
                                                      Price    Cash Cost                          Depletion     Margin 
                                 Ounces   Ounces   ($'s Per     ($'s Per  Cash Operating Margin    ($'s Per   ($'s Per 
                           Produced (1)     Sold     Ounce)   Ounce) (2)    ($'s Per Ounce) (3)      Ounce)     Ounce) 
------------------------  -------------  -------  ---------  -----------  ---------------------  ----------  --------- 
Gold equivalent basis 
 (4)                            444,597  375,248    $ 1,872        $ 427                $ 1,445       $ 389    $ 1,056 
------------------------  -------------  -------  ---------  -----------  ---------------------  ----------  --------- 
 

1) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   2)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   3)   Refer to discussion on non-IFRS measure (iv) at the end of this press release. 

4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 
                                                                                               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)            14,088   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)              18,899   22,076      1,829        734         45    40,388            -     23,183      22,912     461,359 
                        216,574  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                3,867    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)               6,651    5,316      21.41       7.14       5.61   113,823      114,755    160,768      75,969     538,739 
                         18,497   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  $   24,412  $  361,238 
------------------  -----------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Operating results                                                          $829,002  $   114,755  $ 559,054  $  622,401  $5,807,056 
-------------------------------  -------   --------   --------   --------   -------   ----------   --------   ---------   --------- 
Other 
  General and administrative                                                                      $(27,448)  $ (28,688) 
  Share based compensation                                                                         (11,586)    (18,411) 
  Donations and community 
   investments                                                                                      (3,379)     (2,977) 
  Finance costs                                                                                     (4,209)     (3,107) 
  Other                                                                                               3,448       2,319 
  Income tax                                                                                       (12,879)       (141) 
Total other                                                                                       $(56,053)  $ (51,005)  $  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 represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   3)   Refer to discussion on non-IFRS measure (iii) at the end of this press release. 
   4)   Relates to the termination of the Keno Hill PMPA. 

5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.

6) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

On a gold 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                          Depletion     Margin 
                                 Ounces   Ounces   ($'s Per     ($'s Per  Cash Operating Margin    ($'s Per   ($'s Per 
                           Produced (1)     Sold     Ounce)   Ounce) (2)    ($'s Per Ounce) (3)      Ounce)     Ounce) 
------------------------  -------------  -------  ---------  -----------  ---------------------  ----------  --------- 
Gold equivalent basis 
 (4)                            473,868  460,026    $ 1,802        $ 448                $ 1,354       $ 389      $ 965 
------------------------  -------------  -------  ---------  -----------  ---------------------  ----------  --------- 
 

1) Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.

   2)   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, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

Non-IFRS Measures

Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.

i. Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance.

The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted).

 
                                                            Three Months Ended     Nine Months Ended 
                                                                September 30          September 30 
(in thousands, except for per share amounts)                    2023        2022      2023        2022 
---------------------------------------------------------   --------  ----------  --------  ---------- 
Net earnings                                                $116,371  $  196,460  $369,209  $  503,001 
Add back (deduct): 
   Impairment charge (reversal)                                    -    (10,330)         -    (10,330) 
   Gain on disposal of Mineral Stream Interest                     -   (104,425)   (5,027)   (104,425) 
   (Gain) loss on fair value adjustment of share purchase 
    warrants held                                                143         204       248       1,101 
   Income tax (expense) recovery recognized in the 
    Statement of Shareholders' Equity                              -       3,644         -       4,143 
   Income tax (expense) recovery recognized in the 
    Statement of OCI                                           5,115         546     7,205         701 
   Income tax recovery related to prior year disposal of 
    Mineral Stream Interest                                        -       7,779   (2,672)       7,779 
   Other                                                       (162)           -     (482)       (802) 
----------------------------------------------------------   -------   ---------   -------   --------- 
Adjusted net earnings                                       $121,467  $   93,878  $368,481  $  401,168 
----------------------------------------------------------   -------   ---------   -------   --------- 
Divided by: 
   Basic weighted average number of shares outstanding       452,975     451,757   452,748     451,402 
   Diluted weighted average number of shares outstanding     453,538     452,386   453,419     452,221 
----------------------------------------------------------   -------   ---------   -------   --------- 
Equals: 
   Adjusted earnings per share - basic                      $  0.268  $    0.208  $  0.814  $    0.889 
   Adjusted earnings per share - diluted                    $  0.268  $    0.208  $  0.813  $    0.887 
----------------------------------------------------------   -------   ---------   -------   --------- 
 

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)                        2023      2022         2023      2022 
---------------------------------------------------------   ------------  --------  -----------  -------- 
Cash generated by operating activities                       $   171,103  $154,497   $  508,584  $571,396 
----------------------------------------------------------      --------   -------      -------   ------- 
Divided by: 
   Basic weighted average number of shares outstanding           452,975   451,757      452,748   451,402 
   Diluted weighted average number of shares outstanding         453,538   452,386      453,419   452,221 
----------------------------------------------------------      --------   -------      -------   ------- 
Equals: 
   Operating cash flow per share - basic                     $     0.378  $  0.342   $    1.123  $  1.266 
   Operating cash flow per share - diluted                   $     0.377  $  0.342   $    1.122  $  1.264 
----------------------------------------------------------      --------   -------      -------   ------- 
 

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)                                     2023       2022        2023        2022 
-------------------------------------------------------   ---------  ---------  ----------  ---------- 
Cost of sales                                             $  96,243  $ 116,683  $  306,321  $  384,703 
Less: depletion                                            (46,435)   (55,728)   (145,908)   (178,812) 
--------------------------------------------------------   --------   --------   ---------   --------- 
Cash cost of sales                                        $  49,808  $  60,955  $  160,413  $  205,891 
--------------------------------------------------------   --------   --------   ---------   --------- 
Cash cost of sales is comprised of: 
   Total cash cost of gold sold                           $  33,014  $  29,398  $   98,724  $  105,719 
   Total cash cost of silver sold                            15,121     29,238      56,351      90,384 
   Total cash cost of palladium sold                            946      1,493       2,699       4,475 
   Total cash cost of cobalt sold                               727        826       2,639       5,313 
--------------------------------------------------------   --------   --------   ---------   --------- 
   Total cash cost of sales                               $  49,808  $  60,955  $  160,413  $  205,891 
--------------------------------------------------------   --------   --------   ---------   --------- 
Divided by: 
   Total gold ounces sold                                    74,426     62,000     212,325     224,238 
   Total silver ounces sold                                   2,965      5,234      11,151      16,635 
   Total palladium ounces sold                                4,242      4,227      10,580      11,680 
   Total cobalt pounds sold                                     198        115         786         851 
--------------------------------------------------------   --------   --------   ---------   --------- 
Equals: 
   Average cash cost of gold (per ounce)                  $     444  $     474  $      465  $      471 
   Average cash cost of silver (per ounce)                $    5.10  $    5.59  $     5.05  $     5.43 
   Average cash cost of palladium (per ounce)             $     223  $     353  $      255  $      383 
   Average cash cost of cobalt (per pound)                $    3.66  $    7.21  $     3.36  $     6.24 
--------------------------------------------------------   --------   --------   ---------   --------- 
 

iv. Cash operating margin is calculated by adding back depletion to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. 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)                                                2023      2022         2023      2022 
----------------------------------------------------------   ------------  --------  -----------  -------- 
Gross margin                                                  $   126,894  $102,153   $  396,252  $444,299 
Add back: depletion                                                46,435    55,728      145,908   178,812 
-----------------------------------------------------------      --------   -------      -------   ------- 
Cash operating margin                                         $   173,329  $157,881   $  542,160  $623,111 
-----------------------------------------------------------      --------   -------      -------   ------- 
Cash operating margin is comprised of: 
   Total cash operating margin of gold sold                   $   111,693  $ 77,730   $  314,690  $304,927 
   Total cash operating margin of silver sold                      55,251    71,032      206,778   274,445 
   Total cash operating margin of palladium sold                    4,361     7,345       12,223    21,099 
   Total cash operating margin of cobalt sold                       2,024     1,774        8,469    22,640 
-----------------------------------------------------------      --------   -------      -------   ------- 
   Total cash operating margin                                $   173,329  $157,881   $  542,160  $623,111 
-----------------------------------------------------------      --------   -------      -------   ------- 
Divided by: 
   Total gold ounces sold                                          74,426    62,000      212,325   224,238 
   Total silver ounces sold                                         2,965     5,234       11,151    16,635 
   Total palladium ounces sold                                      4,242     4,227       10,580    11,680 
   Total cobalt pounds sold                                           198       115          786       851 
-----------------------------------------------------------      --------   -------      -------   ------- 
Equals: 
   Cash operating margin per gold ounce sold                  $     1,500  $  1,254   $    1,482  $  1,360 
   Cash operating margin per silver ounce sold                $     18.63  $  13.57   $    18.55  $  16.50 
   Cash operating margin per palladium ounce sold             $     1,028  $  1,738   $    1,155  $  1,807 
   Cash operating margin per cobalt pound sold                $     10.21  $  15.47   $    10.77  $  26.61 
-----------------------------------------------------------      --------   -------      -------   ------- 
 

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.sedarplus.ca.

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 payment of $115 million to Waterton Copper and the satisfaction of each party's obligations in accordance with the Mineral Park PMPA and the receipt of silver production in respect of the Mineral Park Mine, the future price of commodities, the estimation of future production from Mining Operations (including in the estimation of production, mill throughput, grades, recoveries and exploration potential), the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates) and the realization of such estimations, the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton's PMPA counterparties at mineral stream interests owned by Wheaton (the "Mining Operations"), the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements, the ability of Wheaton's PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton's PMPA counterparties) and the potential impacts of such on Wheaton, future payments by the Company in accordance with PMPAs, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, future sales of common shares under the ATM program, continued listing of the Company's common shares, any statements as to future dividends, the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs, including any acceleration of payments, projected increases to Wheaton's production and cash flow profile, projected changes to Wheaton's production mix, the ability of Wheaton's PMPA counterparties to comply with the terms of any other obligations under agreements with the Company, the ability to sell precious metals and cobalt production, confidence in the Company's business structure, the Company's assessment of taxes payable and the impact of the CRA Settlement, possible domestic audits for taxation years subsequent to 2016 and international audits, the Company's assessment of the impact of any tax reassessments, the Company's intention to file future tax returns in a manner consistent with the CRA Settlement, the Company's climate change and environmental commitments, and assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to the satisfaction of each party's obligations in accordance with the terms of the Mineral Park PMPA, the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs or royalty arrangements, risks associated with fluctuations in the price of commodities (including Wheaton's ability to sell its precious metals or cobalt production at acceptable prices or at all), risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with the exploration, development, operating, expansion and improvement of the Mining Operations, environmental and economic risks of the Mining Operations, and changes in

project parameters as plans continue to be refined), the absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the Mining Operations, uncertainty in the estimation of production from Mining Operations, uncertainty in the accuracy of mineral reserve and mineral resource estimation, risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), the ability of each party to satisfy their obligations in accordance with the terms of the PMPAs, the estimation of future production from Mining Operations, Wheaton's interpretation of, compliance with or application of, tax laws and regulations or accounting policies and rules being found to be incorrect, any challenge or reassessment by the CRA of the Company's tax filings being successful and the potential negative impact to the Company's previous and future tax filings, assessing the impact of the CRA Settlement (including whether there will be any material change in the Company's facts or change in law or jurisprudence), potential amendments to Canada's transfer pricing rules under the Income Tax Act (Canada) that may result from the Department of Finance's consultation paper released June 6, 2023, potential implementation of a 15% global minimum tax, including the draft legislation issued for consultation by the Canadian Federal Government on August 4, 2023 that would apply to the income of the Company's non-Canadian subsidiaries; 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.sedarplus.ca and Wheaton's Form 40-F for the year ended December 31, 2022 on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure"). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation): the payment of $115 million to Waterton Copper and the satisfaction of each party's obligations in accordance with the terms of the Mineral Park PMPA, that there will be no material adverse change in the market price of commodities, that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates, that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate, that each party will satisfy their obligations in accordance with the PMPAs, that Wheaton will continue to be able to fund or obtain funding for outstanding commitments, that Wheaton will be able to source and obtain accretive PMPAs, that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), that any outbreak or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally, without such response requiring any prolonged closure of the Mining Operations or having other material adverse effects on the Company and counterparties to its PMPAs, that the trading of the Company's common shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE, that the trading of the Company's common shares will not be suspended, and that the net proceeds of sales of common shares, if any, will be used as anticipated, that expectations regarding the resolution of legal and tax matters will be achieved (including ongoing CRA audits involving the Company), that Wheaton has properly considered the interpretation and application of Canadian tax law to its structure and operations, that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, that Wheaton's application of the CRA Settlement is accurate (including the Company's assessment that there will be no material change in the Company's facts or change in law or jurisprudence), and such other assumptions and factors as set out in the Disclosure. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward-looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward--looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.

Cautionary Language Regarding Reserves and Resources

For further information on Mineral Reserves and Mineral Resources and on Wheaton more generally, readers should refer to Wheaton's Annual Information Form for the year ended December 31, 2022, which was filed on March 31, 2023 and other continuous disclosure documents filed by Wheaton since January 1, 2023, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The Company reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources in accordance with Canadian reporting requirements which are governed by, and utilize definitions required by, Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). These definitions differ from the definitions adopted by the United States Securities and Exchange Commission ("SEC") under the United States Securities Act of 1933, as amended (the "Securities Act") which are applicable to U.S. companies. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted by the SEC. Accordingly, information contained herein that describes Wheaton's mineral deposits may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States investors are urged to consider closely the disclosure in Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from https://www.sec.gov/edgar.shtml .

[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 9, 2023, titled "Wheaton Precious Metals Declares Quarterly Dividend."

[2] Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see "Cautionary Note Regarding Forward-Looking Statements" for material risks, assumptions and important disclosure associated with this information.

[3] Company reports & S and P Capital IQ est. of 2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs relating to production and guidance, which are provided to assist the reader, are based on the following commodity price assumptions: gold $1,850/oz, silver $24/oz, palladium $1,800/oz, platinum $1,100/oz and cobalt $18.75/lb. Five-year and ten-year guidance does not include any production from Pascua-Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo outside of the Salobo III expansion. In addition, five-year guidance also does not include any production from Kutcho, or the Victor project at Sudbury. Additionally, none of the deals announced in 2023 have been factored into 2023 or longer-term guidance including the Blackwater extension, Cangrejos and Mineral Park Projects, and the Black Pine Royalty. Ounces produced represent the quantity of silver, gold, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions.

[4] Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2022 and 2022 actual mill throughput and is weighted by individual reserve and resource category.

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(END) Dow Jones Newswires

November 10, 2023 02:00 ET (07:00 GMT)

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