Designated News Release
SECOND QUARTER 2022 FINANCIAL RESULTS
VANCOUVER, BC, Aug. 11,
2022 /PRNewswire/ - "Throughout the first half of
2022, we have focused on optimizing our portfolio and further
enhancing our financial flexibility in order to ensure that we are
well positioned to respond to accretive growth opportunities and
continue creating value for our shareholders," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "While not without its
challenges, our diverse portfolio once again delivered strong
operating cash flow and an attractive dividend yield, highlighting
the resiliency of the streaming model to the inflationary pressures
currently being felt across the global economy. Furthermore, we are
pleased with our continued progress and leadership on
sustainability initiatives as highlighted in our third annual
Sustainability Report."
Second Quarter 2022 Highlights:
- Over $300 million in revenue and
$206 million in operating cash flow,
resulting in a cash balance of $449
million and no debt as at June 30,
2022.
- $149 million in adjusted net
earnings1.
- Announced the proposed termination of the Keno Hill precious
metal purchase agreement ("PMPA") for $135
million.
- Subsequent to the quarter, Wheaton added a
sustainability-linked element in connection with the extension to
its existing undrawn US$2 billion
revolving credit facility.
- Recognized as one of the Best 50 Corporate Citizens in
Canada by Corporate Knights.
- Declared quarterly dividend1 of $0.15 per common share, consistent with the
comparable period in 2021.
Operational Overview
(all figures in US
dollars unless otherwise noted)
|
|
|
Q2 2022
|
|
|
Q2 2021
|
|
Change
|
|
|
YTD 2022
|
|
|
YTD 2021
|
|
|
Change
|
Units
produced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
68,365
|
|
|
90,072
|
|
(24.1) %
|
|
|
146,419
|
|
|
168,601
|
|
|
(13.2) %
|
Silver
ounces
|
|
|
6,537
|
|
|
6,529
|
|
0.1 %
|
|
|
12,770
|
|
|
13,294
|
|
|
(3.9) %
|
Palladium
ounces
|
|
|
3,899
|
|
|
5,301
|
|
(26.4) %
|
|
|
8,387
|
|
|
11,070
|
|
|
(24.2) %
|
Cobalt
pounds
|
|
|
136
|
|
|
380
|
|
(64.1) %
|
|
|
371
|
|
|
1,542
|
|
|
(76.0) %
|
Gold equivalent ounces
2
|
|
|
162,569
|
|
|
190,272
|
|
(14.6) %
|
|
|
333,265
|
|
|
387,028
|
|
|
(13.9) %
|
Units
sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
84,337
|
|
|
90,090
|
|
(6.4) %
|
|
|
162,238
|
|
|
165,194
|
|
|
(1.8) %
|
Silver
ounces
|
|
|
5,848
|
|
|
5,600
|
|
4.4 %
|
|
|
11,401
|
|
|
12,257
|
|
|
(7.0) %
|
Palladium
ounces
|
|
|
3,378
|
|
|
3,869
|
|
(12.7) %
|
|
|
7,453
|
|
|
9,000
|
|
|
(17.2) %
|
Cobalt
pounds
|
|
|
225
|
|
|
395
|
|
(43.0) %
|
|
|
736
|
|
|
527
|
|
|
39.7 %
|
Gold equivalent ounces
2
|
|
|
170,371
|
|
|
176,502
|
|
(3.5) %
|
|
|
336,436
|
|
|
348,773
|
|
|
(3.5) %
|
Revenue
|
|
$
|
302,922
|
|
$
|
330,393
|
|
(8.3) %
|
|
$
|
610,166
|
|
$
|
654,512
|
|
|
(6.8) %
|
Net
earnings
|
|
$
|
149,074
|
|
$
|
166,124
|
|
(10.3) %
|
|
$
|
306,542
|
|
$
|
328,126
|
|
|
(6.6) %
|
Per share
|
|
$
|
0.330
|
|
$
|
0.369
|
|
(10.6) %
|
|
$
|
0.679
|
|
$
|
0.729
|
|
|
(6.9) %
|
Adjusted net
earnings 1
|
|
$
|
149,285
|
|
$
|
161,626
|
|
(7.6) %
|
|
$
|
307,292
|
|
$
|
322,760
|
|
|
(4.8) %
|
Per share
1
|
|
$
|
0.331
|
|
$
|
0.359
|
|
(7.8) %
|
|
$
|
0.681
|
|
$
|
0.718
|
|
|
(5.1) %
|
Operating cash
flows
|
|
$
|
206,359
|
|
$
|
216,415
|
|
(4.6) %
|
|
$
|
416,899
|
|
$
|
448,569
|
|
|
(7.1) %
|
Per share
1
|
|
$
|
0.457
|
|
$
|
0.481
|
|
(5.0) %
|
|
$
|
0.924
|
|
$
|
0.997
|
|
|
(7.3) %
|
All amounts in
thousands except gold, palladium & gold equivalent ounces, and
per share amounts.
|
Revised Annual and Long-Term Production Guidance
Given the
proposed termination of the Keno Hill PMPA, lower production from
Stillwater due to severe weather
and flooding in the state of Montana in June as well as lower than expected
production at Salobo, Wheaton is lowering production guidance.
Wheaton's estimated attributable production for 2022 is now
forecast to be approximately 640,000 to 680,000 gold equivalent
ounces2 ("GEOs"). For the five-year period ending
December 31, 2026, average annual
production is expected to increase to 820,000 GEO's2,
primarily due to anticipated continued production growth from
Salobo, Stillwater, Constancia,
and Voisey's Bay as well as incremental production ounces from
Marmato, Blackwater, Toroparu, Marathon, the Copper World Complex
(formerly referred to as Rosemont)
and Santo Domingo towards the
latter end of the forecast period. Average forecast production for
the ten-year period ending December 31,
2031, is expected to now be 870,000
GEO's2 and includes incremental production from the
Kutcho project and the Victor mine in Sudbury. Vale S.A. has indicated the potential
for an additional expansion after the completion of the current
Salobo III expansion, but Wheaton does not currently include this
in its forecast.
2022 Production Guidance Forecast
|
Original Guidance
|
Updated Guidance
|
Gold Ounces
|
350,000 to
380,000
|
300,000 to
320,000
|
Silver Ounces ('000s)
|
23,000 to
24,500
|
22,500 to
24,000
|
Other Metals2 (GEOs)
|
44,000 to
48,000
|
35,000 to
40,000
|
Total GEOs2
|
700,000 to
760,000
|
640,000 to
680,000
|
Long-Term Forecast
|
|
|
5-Year Annual Average (GEOs)2
|
850,000
|
820,000
|
10-Year Annual Average (GEOs)2
|
910,000
|
870,000
|
Financial Review
Revenues
Revenue was $303 million in the second quarter of 2022
representing an 8% decrease from the second quarter of 2021 due
primarily to a 5% decrease in the average realized gold equivalent²
price; and a 3% decrease in the number of GEOs² sold.
Revenue was $610 million in the
six months ended June 30, 2022,
representing a 7% decrease from the comparable period of the
previous year due primarily to a 4% decrease in the number of gold
equivalent² ounces sold; and a 3% decrease in the average realized
gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in
the second quarter of 2022 were $440
per GEO² as compared to $444 in the
second quarter of 2021. This resulted in a cash operating
margin¹ of $1,338 per GEO² sold, a
decrease of 6% as compared with the second quarter of 2021.
Average cash costs¹ for the six months ended June 30, 2022 were $431 per GEO² as compared to $451 in the comparable period of the previous
year. This resulted in a cash operating margin¹ of $1,383 per GEO² sold, a decrease of 3% as
compared with the comparable period of the previous year.
Balance Sheet (at June 30, 2022)
- Approximately $449 million of
cash on hand.
- Subsequent to the quarter, the Company extended its existing
undrawn $2 billion revolving term
loan (the "Revolving Facility") with its maturity date now
July 18, 2027. As part of the
extension, Wheaton added a sustainability-linked element which
impacts the interest rate paid on drawn amounts and standby
fees.
- The Company is well positioned to fund all outstanding
commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream
interests.
Second Quarter Asset Highlights
Salobo: In the second quarter of 2022, Salobo
produced 34,100 ounces of attributable gold, a decrease of
approximately 39% relative to the second quarter of 2021, primarily
due to lower throughput and grades. According to Vale S.A.'s
Production and Sales 2Q22 report ("Vale"), mine movement saw
continued improvement throughout the quarter, but concentrate
production was negatively impacted by plant performance due to
delays in ramp-up after planned and corrective maintenance. Vale
expects further maintenance work to continue in the second half of
2022.
As per Vale's Second Quarter 2022 Performance Report, Vale
outlines the Salobo lll Project progress including the start of
commissioning activities at the primary crushing and stockpile
areas. In addition, Vale notes that the remediation work for the
January 2022 landslide has been
completed. Vale reports that physical completion of the Salobo III
mine expansion was 95% at the end of the second quarter.
Antamina: In the second quarter of 2022, Antamina
produced 1.4 million ounces of attributable silver, a decrease of
approximately 11% relative to the second quarter of 2021, primarily
due to lower grades as per the mine plan.
Constancia: In the second quarter of 2022,
Constancia produced 600,000 ounces of attributable silver and 8,000
ounces of attributable gold, an increase of approximately 25% and
46%, respectively, relative to the second quarter of 2021, with the
increases being primarily due to the mining of higher-grade
material associated with the Pampacancha deposit.
Sudbury: In the
second quarter of 2022, Vale's Sudbury mines produced 7,200 ounces of
attributable gold, an increase of approximately 58% relative to the
second quarter of 2021, primarily due to higher throughput as
during 2021, operations at the mine were suspended due to a labour
dispute which lasted from June 1to August 9,
2021.
Stillwater: In the second quarter
of 2022, the Stillwater mines
produced 2,200 ounces of attributable gold and 3,900 ounces of
attributable palladium, a decrease of approximately 27% for gold
and 26% for palladium relative to the second quarter of 2021. As
per Sibanye-Stillwater Limited's news release dated August 11, 2022, regional floods impacted the
Stillwater operations on
June 13, 2022, including damage to
bridges and the access road to the Stillwater mine. Operations at the
Stillwater mine, which accounts
for 60% of the mined production from the Stillwater operations, were suspended for
seven weeks, but resumed on July 29,
2022. Access to the East Boulder mine and the Columbus
metallurgical facilities remains intact and both facilities
continued operating during the flooding events.
San Dimas: In the second quarter of 2022, San
Dimas produced 10,000 ounces of attributable gold, a decrease of
approximately 12% relative to the second quarter of 2021, primarily
the result of mining lower grade material. According to First
Majestic Silver Corp.'s ("First Majestic") Q2 production report,
underground development for stope preparation and ventilation
within the Perez vein is progressing and forecast to be ready for
initial production in August. Furthermore, First Majestic reports
that improving dilution controls at San Dimas and prioritizing
long-hole stoping of the Jessica and Regina veins is anticipated to
improve ore grade and overall production in the second half of
2022.
Other Gold: In the second quarter of 2022, total
Other Gold attributable production was 6,800 ounces, a decrease of
approximately 32% relative to the second quarter of 2021, primarily
due to the lower throughput and grades at 777, which closed as of
June 2022.
Voisey's Bay: In the second quarter of 2022,
the Voisey's Bay mine produced 136,000pounds of attributable
cobalt, a decrease of approximately 64% relative to the second
quarter of 2021, primarily due to lower throughput resulting
from a scheduled maintenance shut down coupled with lower grades
during the ongoing transitional period between the depletion of the
Ovoid open-pit mine and ramp-up to full production of the Voisey's
Bay underground project. As per Vale's Second Quarter 2022
Performance Report, physical completion of the Voisey's Bay
underground mine extension was 74% at the end of the second
quarter. Civil works continue for the balance of facilities, with
civil completion planned by the end of 2022.
Development Assets
Copper World Complex (formerly referred to as Rosemont): On June 8, 2022, Hudbay Minerals Inc. ("Hudbay")
announced the results of the preliminary economic assessment
("PEA") of its 100%-owned Copper World Complex in Arizona, which includes the recently
discovered Copper World deposits along with the Rosemont deposit. The PEA highlights a
two-phase mine plan, with Phase I reflecting a standalone operation
on private land and patented mining claims over a 16-year mine
life. Phase II expands mining activities onto federal land and
extends the mine life to 44 years. In addition, Hudbay is
evaluating several opportunities to optimize the project, including
the potential to expand Phase I beyond 16 years with additions to
the company's private land package for tailings and waste rock
storage and the potential to accelerate Phase II if federal permits
are received earlier than as outlined in the PEA. As per the PEA,
Hudbay anticipates the Phase 1 feasibility study and permits should
be completed by the end of 2023, with a sanctioning decision by
Hudbay in 2024, and construction expected to take three years.
Fenix: On June 28,
2022, Rio2 Limited ("Rio2") provided an update on the Fenix
Gold environmental assessment process. The Environmental Assessment
Service ("SEA") published the Consolidation Evaluation Report with
the recommendation to reject the Environmental Impact Assessment
("EIA") as it has been alleged that Fenix Gold has not provided
enough information during the evaluation process to eliminate
adverse impacts over the chinchilla, guanaco, and vicuña. On
July 5, 2022, Rio2 announced that the
Regional Evaluation Commission has voted for not approving the EIA
for its Fenix Gold project in Chile. Following this decision, Rio2 provided
a further update on July 11, 2022,
stating that Rio2 along with its Chilean environmental and legal
advisor, are currently evaluating options to continue to advance
the project.
Portfolio Optimization
Keno Hill: On July 5,
2022, Hecla Mining Company ("Hecla") announced a definitive
agreement for Hecla to acquire all
of the outstanding common shares of Alexco Resource Corp.
("Alexco"). In conjunction with this agreement, the Company has
entered into an agreement with Hecla to terminate the Keno Hill PMPA in
exchange for $135 million of
Hecla common stock, conditional
upon the completion of Hecla's
acquisition of Alexco and other customary approvals.
Produced But Not Yet Delivered3 and
Inventory
As at June 30, 2022, payable
ounces and pounds attributable to the Company produced but not yet
delivered amounted to:
- 61,200 payable gold ounces, a decrease of 20,200 ounces during
Q2 2022, primarily due to decreases at the Salobo and Sudbury mines.
- 3.7 million payable silver ounces, a decrease of 0.2 million
ounces during Q2 2022 primarily due to decreases at the Peñasquito
and Yauliyacu mines.
- 6,300 payable palladium ounces, an increase of 700 ounces
during Q2 2022.
- 280,000 payable cobalt pounds, a decrease of 270 thousand
pounds during Q2 2022.
As of June 30, 2022, approximately
582,000 pounds of cobalt were held in inventory by Wheaton, an
increase of 172,000 pounds during Q2 2022.
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Sustainability
Recognized as One of the Best 50 Corporate Citizens in
Canada: Wheaton was named
to the Corporate Knights' 2022 list of the Best 50 Corporate
Citizens in Canada. Corporate
Knights has been producing global corporate and fund rankings for
20 years. Wheaton was selected from a pool of 332 Canadian
companies – each evaluated on a set of 24 environmental, social and
governance indicators, relative to their industry peers and using
publicly available information. The Best 50 Corporate Citizens sets
the standard for sustainability leadership in Canada.
Sustainability-Linked Revolving Credit Facility:
Wheaton has added a sustainability-linked element in connection
with the extension to its existing undrawn US$2 billion revolving credit facility,
underscoring Wheaton's commitment to sustainability initiatives.
Under the renewed revolving credit facility, the interest rate paid
on drawn amounts and standby fees will be adjusted based upon
Wheaton's performance in three sustainability-related areas
including climate change, diversity and overall sustainability
performance.
Published third Annual Sustainability Report: On
May 24, 2022, Wheaton published its
third annual Sustainability Report. Highlights of the report
include establishment of a formal ESG strategy with targets and
commitments across several material ESG topics and significant
enhancement of disclosure around climate change (including
inaugural reporting of our Scope 3 financed emissions associated
with our Mining Partners).
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, August 12, 2022 starting at 8:00am PT / 11:00 am
ET to discuss these results. To participate in the live call
please use one of the following methods:
Dial toll free from Canada or
the
US:
1-888-664-6383
Dial from outside Canada or the
US:
1-416-764-8650
Pass
code:
06939369
Live
webcast:
Webcast URL
The accompanying slideshow will also be available in PDF format
on the 'Events' page of the Wheaton Precious Metals
website before the conference call.
The conference call will be recorded and available until
August 19, 2022 at 11:59 pm ET. The webcast will be available for
one year. You can listen to an archive of the call by one of the
following methods:
Dial toll free from Canada or
the
US:
1-888-390-0541
Dial from outside Canada or the
US:
1-416-764-8677
Pass
code:
939369 #
Archived
webcast:
Webcast URL
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and
have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice
President, Mining Operations is a "qualified person" as such term
is defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news
release.
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and
those required to be followed by United
States domestic issuers under the NYSE listing standards.
This confirmation is located on the Wheaton Precious Metals website
at
http://www.wheatonpm.com/Company/corporate-governance/default.aspxhttp://www.silverwheaton.com/company/corporate-governance/default.aspx.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
financial statements, reference to the Company and Wheaton includes
the Company's wholly owned subsidiaries.
End Notes
_______________________________
|
1 Please refer to non-IFRS
measures at the end of this press release. Dividends declared in
the referenced calendar quarter, relative to the financial results
of the prior quarter. Details of the dividend can be found in the
Wheaton's news release date August 11, 2022, titled "Wheaton
Precious Metals Declares Quarterly Dividend."
|
2 Commodity price assumptions
for the gold equivalent production and sales in 2022 are $1,800 /
ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and
$33 / pound cobalt. Other metal includes palladium and
cobalt.
|
3
Payable gold, silver and palladium ounces and cobalt pounds
produced but not yet delivered are based on management estimates
only and rely upon information provided by the owners and operators
of mining operations and may be revised and updated in future
periods as additional information is received.
|
Condensed Interim Consolidated Statements of Earnings
|
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
|
(US dollars and shares
in thousands, except per
share amounts -
unaudited)
|
|
2022
|
2021
|
2022
|
2021
|
|
Sales
|
|
$
|
302,922
|
$
|
330,393
|
$
|
610,166
|
$
|
654,512
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Cost of sales,
excluding depletion
|
|
$
|
74,943
|
$
|
78,445
|
$
|
144,936
|
$
|
157,228
|
Depletion
|
|
|
65,682
|
|
70,308
|
|
123,084
|
|
140,482
|
Total cost of
sales
|
|
$
|
140,625
|
$
|
148,753
|
$
|
268,020
|
$
|
297,710
|
Gross margin
|
|
$
|
162,297
|
$
|
181,640
|
$
|
342,146
|
$
|
356,802
|
General and
administrative expenses
|
|
|
9,685
|
|
8,904
|
|
19,089
|
|
18,639
|
Share based
compensation
|
|
|
1,608
|
|
7,978
|
|
11,509
|
|
9,608
|
Donations and community
investments
|
|
|
1,160
|
|
1,583
|
|
1,973
|
|
2,188
|
Earnings from
operations
|
|
$
|
149,844
|
$
|
163,175
|
$
|
309,575
|
$
|
326,367
|
Other (income)
expense
|
|
|
(820)
|
|
(3,420)
|
|
(650)
|
|
(3,301)
|
Earnings before finance
costs and income taxes
|
$
|
150,664
|
$
|
166,595
|
$
|
310,225
|
$
|
329,668
|
Finance
costs
|
|
|
1,389
|
|
1,357
|
|
2,811
|
|
2,930
|
Earnings before income
taxes
|
|
$
|
149,275
|
$
|
165,238
|
$
|
307,414
|
$
|
326,738
|
Income tax (expense)
recovery
|
|
|
(201)
|
|
886
|
|
(872)
|
|
1,388
|
Net earnings
|
|
$
|
149,074
|
$
|
166,124
|
$
|
306,542
|
$
|
328,126
|
Basic earnings per
share
|
|
$
|
0.330
|
$
|
0.369
|
$
|
0.679
|
$
|
0.729
|
Diluted earnings per
share
|
|
$
|
0.330
|
$
|
0.368
|
$
|
0.678
|
$
|
0.728
|
Weighted average number
of shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
451,524
|
|
450,088
|
|
451,221
|
|
449,800
|
Diluted
|
|
|
452,359
|
|
451,203
|
|
452,123
|
|
450,869
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Balance Sheets
|
As at
June 30
|
As at
December 31
|
(US dollars in
thousands - unaudited)
|
2022
|
2021
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
448,626
|
$
|
226,045
|
Accounts
receivable
|
|
13,550
|
|
11,577
|
Other
|
|
16,160
|
|
12,102
|
Total current
assets
|
$
|
478,336
|
$
|
249,724
|
Non-current
assets
|
|
|
|
|
Mineral stream
interests
|
$
|
5,841,478
|
$
|
5,905,797
|
Early deposit mineral
stream interests
|
|
45,342
|
|
34,741
|
Mineral royalty
interest
|
|
6,606
|
|
6,606
|
Long-term equity
investments
|
|
60,799
|
|
61,477
|
Convertible notes
receivable
|
|
-
|
|
17,086
|
Property, plant and
equipment
|
|
4,814
|
|
5,509
|
Other
|
|
11,320
|
|
15,211
|
Total non-current
assets
|
$
|
5,970,359
|
$
|
6,046,427
|
Total assets
|
$
|
6,448,695
|
$
|
6,296,151
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
9,546
|
$
|
13,935
|
Current portion of
performance share units
|
|
11,989
|
|
14,807
|
Current portion of
lease liabilities
|
|
824
|
|
813
|
Other
|
|
97
|
|
136
|
Total current
liabilities
|
$
|
22,456
|
$
|
29,691
|
Non-current
liabilities
|
|
|
|
|
Lease
liabilities
|
|
1,619
|
|
2,060
|
Deferred income
taxes
|
|
236
|
|
100
|
Performance share
units
|
|
4,517
|
|
11,498
|
Pension
liability
|
|
3,066
|
|
2,685
|
Total non-current
liabilities
|
$
|
9,438
|
$
|
16,343
|
Total
liabilities
|
$
|
31,894
|
$
|
46,034
|
Shareholders'
equity
|
|
|
|
|
Issued
capital
|
$
|
3,729,300
|
$
|
3,698,998
|
Reserves
|
|
12,273
|
|
47,036
|
Retained
earnings
|
|
2,675,228
|
|
2,504,083
|
Total shareholders'
equity
|
$
|
6,416,801
|
$
|
6,250,117
|
Total liabilities and
shareholders' equity
|
$
|
6,448,695
|
$
|
6,296,151
|
Condensed Interim Consolidated Statements of Cash Flows
|
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
(US dollars in
thousands - unaudited)
|
|
2022
|
2021
|
2022
|
2021
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
149,074
|
$
|
166,124
|
$
|
306,542
|
$
|
328,126
|
Adjustments
for
|
|
|
|
|
|
|
|
|
|
Depreciation and
depletion
|
|
|
66,080
|
|
70,775
|
|
123,875
|
|
141,424
|
Interest
expense
|
|
|
24
|
|
32
|
|
50
|
|
294
|
Equity settled stock
based compensation
|
|
|
1,498
|
|
1,307
|
|
2,839
|
|
2,632
|
Performance share
units
|
|
|
(18,137)
|
|
(10,258)
|
|
(9,577)
|
|
(9,952)
|
Pension
expense
|
|
|
271
|
|
265
|
|
429
|
|
416
|
Income tax expense
(recovery)
|
|
|
201
|
|
(886)
|
|
872
|
|
(1,388)
|
Loss (gain) on fair
value adjustment of share purchase warrants held
|
|
|
154
|
|
194
|
|
897
|
|
1,145
|
Fair value (gain) loss
on convertible note receivable
|
|
|
-
|
|
(3,388)
|
|
1,380
|
|
(4,626)
|
Investment income
recognized in net earnings
|
|
|
(549)
|
|
(95)
|
|
(743)
|
|
(97)
|
Other
|
|
|
42
|
|
103
|
|
(1,472)
|
|
694
|
Change in non-cash
working capital
|
|
|
7,365
|
|
(7,803)
|
|
(8,553)
|
|
(9,775)
|
Cash generated from
operations before income taxes and interest
|
|
$
|
206,023
|
$
|
216,370
|
$
|
416,539
|
$
|
448,893
|
Income taxes recovered
(paid)
|
|
|
(80)
|
|
(21)
|
|
(112)
|
|
(51)
|
Interest
paid
|
|
|
(25)
|
|
(29)
|
|
(51)
|
|
(370)
|
Interest
received
|
|
|
441
|
|
95
|
|
523
|
|
97
|
Cash generated from
operating activities
|
|
$
|
206,359
|
$
|
216,415
|
$
|
416,899
|
$
|
448,569
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Bank debt
repaid
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(195,000)
|
Credit facility
extension fees
|
|
|
(2)
|
|
(1,673)
|
|
(2)
|
|
(1,673)
|
Share purchase options
exercised
|
|
|
1,777
|
|
743
|
|
7,549
|
|
5,536
|
Lease
payments
|
|
|
(202)
|
|
(173)
|
|
(402)
|
|
(387)
|
Dividends
paid
|
|
|
(117,117)
|
|
(103,549)
|
|
(117,117)
|
|
(103,549)
|
Cash (used for)
generated from financing activities
|
|
$
|
(115,544)
|
$
|
(104,652)
|
$
|
(109,972)
|
$
|
(295,073)
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Mineral stream
interests
|
|
$
|
(15,549)
|
$
|
(64,771)
|
$
|
(60,801)
|
$
|
(215,790)
|
Early deposit mineral
stream interests
|
|
|
-
|
|
-
|
|
(750)
|
|
(750)
|
Mineral royalty
interest
|
|
|
-
|
|
(10)
|
|
-
|
|
(3,571)
|
Acquisition of
long-term investments
|
|
|
(2,633)
|
|
(2,377)
|
|
(22,768)
|
|
(2,377)
|
Proceeds on disposal of
long-term investments
|
|
|
-
|
|
-
|
|
-
|
|
112,188
|
Dividends
received
|
|
|
108
|
|
-
|
|
220
|
|
-
|
Other
|
|
|
(89)
|
|
(386)
|
|
(125)
|
|
(520)
|
Cash (used for)
generated from investing activities
|
|
$
|
(18,163)
|
$
|
(67,544)
|
$
|
(84,224)
|
$
|
(110,820)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
$
|
(189)
|
$
|
65
|
$
|
(122)
|
$
|
87
|
Increase in cash and
cash equivalents
|
|
$
|
72,463
|
$
|
44,284
|
$
|
222,581
|
$
|
42,763
|
Cash and cash
equivalents, beginning of period
|
|
376,163
|
|
191,162
|
|
226,045
|
|
192,683
|
Cash and cash
equivalents, end of period
|
|
$
|
448,626
|
$
|
235,446
|
$
|
448,626
|
$
|
235,446
|
Summary of Units Produced
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Gold ounces produced
²
|
|
|
|
|
|
|
|
|
Salobo
|
34,129
|
44,883
|
48,235
|
55,205
|
55,590
|
46,622
|
62,854
|
63,408
|
Sudbury
3
|
7,212
|
5,362
|
4,379
|
148
|
4,563
|
7,004
|
6,659
|
3,798
|
Constancia
|
8,042
|
6,311
|
9,857
|
8,533
|
5,525
|
2,453
|
3,929
|
3,780
|
San Dimas
4
|
10,044
|
10,461
|
13,714
|
11,936
|
11,478
|
10,491
|
11,652
|
9,228
|
Stillwater
5
|
2,171
|
2,497
|
2,664
|
2,949
|
2,962
|
3,041
|
3,290
|
3,176
|
Other
|
|
|
|
|
|
|
|
|
Minto
|
2,480
|
4,060
|
3,506
|
1,703
|
3,206
|
2,638
|
789
|
1,832
|
777
6
|
3,509
|
4,003
|
4,462
|
4,717
|
5,035
|
6,280
|
2,866
|
5,278
|
Marmato
|
778
|
477
|
479
|
433
|
1,713
|
-
|
-
|
-
|
Total Other
|
6,767
|
8,540
|
8,447
|
6,853
|
9,954
|
8,918
|
3,655
|
7,110
|
Total gold ounces
produced
|
68,365
|
78,054
|
87,296
|
85,624
|
90,072
|
78,529
|
92,039
|
90,500
|
Silver ounces produced
2
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,089
|
2,219
|
2,145
|
2,180
|
2,026
|
2,202
|
2,014
|
1,992
|
Antamina
|
1,379
|
1,268
|
1,366
|
1,548
|
1,558
|
1,577
|
1,930
|
1,516
|
Constancia
|
584
|
506
|
578
|
521
|
468
|
406
|
478
|
430
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
7
|
23
|
42
|
37
|
17
|
26
|
31
|
6
|
17
|
Zinkgruvan
|
739
|
577
|
482
|
658
|
457
|
420
|
515
|
498
|
Yauliyacu
|
756
|
637
|
382
|
372
|
629
|
737
|
454
|
679
|
Stratoni
8
|
-
|
-
|
129
|
18
|
164
|
165
|
185
|
156
|
Minto
|
25
|
45
|
44
|
25
|
33
|
21
|
16
|
15
|
Neves-Corvo
|
345
|
344
|
522
|
362
|
408
|
345
|
420
|
281
|
Aljustrel
|
292
|
287
|
325
|
314
|
400
|
474
|
440
|
348
|
Cozamin
|
169
|
186
|
213
|
199
|
183
|
230
|
-
|
-
|
Marmato
|
8
|
11
|
7
|
10
|
39
|
-
|
-
|
-
|
Keno Hill
9
|
48
|
20
|
30
|
44
|
55
|
27
|
-
|
-
|
777
6
|
80
|
91
|
96
|
81
|
83
|
130
|
51
|
96
|
Total Other
|
2,485
|
2,240
|
2,267
|
2,100
|
2,477
|
2,580
|
2,087
|
2,090
|
Total silver ounces
produced
|
6,537
|
6,233
|
6,356
|
6,349
|
6,529
|
6,765
|
6,509
|
6,028
|
Palladium ounces
produced ²
|
|
|
|
|
|
|
|
|
Stillwater
5
|
3,899
|
4,488
|
4,733
|
5,105
|
5,301
|
5,769
|
5,672
|
5,444
|
Cobalt pounds produced
²
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
136
|
234
|
381
|
370
|
380
|
1,162
¹⁰
|
-
|
-
|
GEOs produced
11
|
162,569
|
170,696
|
184,551
|
183,012
|
190,272
|
196,756
|
185,436
|
177,230
|
SEOs produced
11
|
12,193
|
12,802
|
13,841
|
13,726
|
14,270
|
14,757
|
13,908
|
13,292
|
Average payable rate
2
|
|
|
|
|
|
|
|
|
Gold
|
95.1 %
|
95.2 %
|
96.0 %
|
96.0 %
|
95.8 %
|
95.0 %
|
95.2 %
|
95.3 %
|
Silver
|
85.5 %
|
86.2 %
|
86.0 %
|
86.6 %
|
86.9 %
|
86.6 %
|
86.3 %
|
86.1 %
|
Palladium
|
94.6 %
|
92.7 %
|
92.2 %
|
94.5 %
|
95.0 %
|
91.6 %
|
93.6 %
|
94.0 %
|
Cobalt
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
n.a.
|
n.a.
|
GEO
11
|
90.2 %
|
90.5 %
|
91.4 %
|
91.3 %
|
91.8 %
|
90.7 %
|
91.2 %
|
91.2 %
|
1)
|
All figures in
thousands except gold and palladium ounces produced.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures and payable rates are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures and payable rates may be updated in
future periods as additional information is
received.
|
3)
|
Comprised of the
Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
Operations at the Sudbury mines were suspended from June 1, 2021 to
August 9, 2021 as a result of a labour disruption by unionized
employees.
|
4)
|
Under the terms of the
San Dimas PMPA, the Company is entitled to an amount equal to 25%
of the payable gold production plus an additional amount of gold
equal to 25% of the payable silver production converted to gold at
a fixed gold to silver exchange ratio of 70:1 from the San Dimas
mine. If the average gold to silver price ratio decreases to less
than 50:1 or increases to more than 90:1 for a period of 6 months
or more, then the "70" shall be revised to "50" or "90", as the
case may be, until such time as the average gold to silver price
ratio is between 50:1 to 90:1 for a period of 6 months or more in
which event the "70" shall be reinstated. Effective April 1, 2020,
the fixed gold to silver exchange ratio was revised to 90:1, with
the 70:1 ratio being reinstated on October 15, 2020. For reference,
attributable silver production from prior periods is as follows:
Q2-2022 - 382,000 ounces; Q1-2022 - 408,000 ounces; Q4-2021 -
544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces;
Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 -
420,000 ounces.
|
5)
|
Comprised of the
Stillwater and East Boulder gold and palladium
interests.
|
6)
|
Operations at 777 were
temporarily suspended from October 11, 2020 to November 25, 2020 as
a result of an incident that occurred on October 9th during routine
maintenance of the hoist rope and skip. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced.
|
7)
|
Operations at Los Filos
were suspended from September 3, 2020 to December 23, 2020 as the
result of an illegal road blockade by members of the nearby
Carrizalillo community and had been temporarily suspended from June
22, 2021 to July 26, 2021 as the result of illegal blockades by a
group of unionized employees and members of the Xochipala
community.
|
8)
|
The Stratoni mine was
placed into care and maintenance during Q4-2021.
|
9)
|
On June 22, 2022,
Alexco elected to temporarily suspend milling operations for five
to six months to focus on advancing underground development at Keno
Hill.
|
10)
|
Effective January 1,
2021, the Company was entitled to cobalt production from the
Voisey's Bay mine. As per the Voisey's Bay PMPA with Vale, Wheaton
is entitled to any cobalt processed at the Long Harbour Processing
Plant as of January 1, 2021, resulting in reported production in
the first quarter of 2021 including some material produced at the
Voisey's Bay mine in the previous quarter.
|
11)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Summary of Units Sold
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Gold ounces
sold
|
|
|
|
|
|
|
|
|
Salobo
|
48,515
|
42,513
|
47,171
|
35,185
|
57,296
|
51,423
|
53,197
|
59,584
|
Sudbury
2
|
7,916
|
3,712
|
965
|
1,915
|
6,945
|
3,691
|
7,620
|
7,858
|
Constancia
|
7,431
|
10,494
|
6,196
|
8,159
|
2,321
|
1,676
|
3,853
|
4,112
|
San Dimas
|
10,633
|
10,070
|
15,182
|
11,346
|
11,214
|
10,273
|
11,529
|
9,687
|
Stillwater
3
|
2,626
|
2,628
|
2,933
|
2,820
|
2,574
|
3,074
|
3,069
|
3,015
|
Other
|
|
|
|
|
|
|
|
|
Minto
|
2,806
|
3,695
|
2,462
|
1,907
|
2,359
|
2,390
|
1,540
|
-
|
777
|
3,629
|
4,388
|
4,290
|
5,879
|
5,694
|
2,577
|
5,435
|
5,845
|
Marmato
|
781
|
401
|
423
|
438
|
1,687
|
-
|
-
|
-
|
Total Other
|
7,216
|
8,484
|
7,175
|
8,224
|
9,740
|
4,967
|
6,975
|
5,845
|
Total gold ounces
sold
|
84,337
|
77,901
|
79,622
|
67,649
|
90,090
|
75,104
|
86,243
|
90,101
|
Silver ounces
sold
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,096
|
2,188
|
1,818
|
2,210
|
1,844
|
2,174
|
1,417
|
1,799
|
Antamina
|
1,177
|
1,468
|
1,297
|
1,502
|
1,499
|
1,930
|
1,669
|
1,090
|
Constancia
|
494
|
644
|
351
|
484
|
295
|
346
|
442
|
415
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
|
41
|
42
|
17
|
12
|
42
|
27
|
-
|
19
|
Zinkgruvan
|
650
|
355
|
346
|
354
|
355
|
293
|
326
|
492
|
Yauliyacu
|
817
|
44
|
551
|
182
|
601
|
1,014
|
15
|
580
|
Stratoni
|
(2)
|
133
|
42
|
41
|
167
|
117
|
169
|
134
|
Minto
|
21
|
31
|
27
|
24
|
29
|
26
|
20
|
-
|
Neves-Corvo
|
167
|
204
|
259
|
193
|
215
|
239
|
145
|
201
|
Aljustrel
|
123
|
145
|
133
|
155
|
208
|
257
|
280
|
148
|
Cozamin
|
148
|
177
|
174
|
170
|
168
|
173
|
-
|
-
|
Marmato
|
11
|
8
|
8
|
10
|
35
|
-
|
-
|
-
|
Keno Hill
|
30
|
27
|
24
|
51
|
33
|
12
|
-
|
-
|
777
|
75
|
87
|
69
|
99
|
109
|
49
|
93
|
121
|
Total Other
|
2,081
|
1,253
|
1,650
|
1,291
|
1,962
|
2,207
|
1,048
|
1,695
|
Total silver ounces
sold
|
5,848
|
5,553
|
5,116
|
5,487
|
5,600
|
6,657
|
4,576
|
4,999
|
Palladium ounces
sold
|
|
|
|
|
|
|
|
|
Stillwater
3
|
3,378
|
4,075
|
4,641
|
5,703
|
3,869
|
5,131
|
4,591
|
5,546
|
Cobalt pounds
sold
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
225
|
511
|
228
|
131
|
395
|
132
|
-
|
-
|
GEOs sold
4
|
170,371
|
166,065
|
157,439
|
149,862
|
176,502
|
172,271
|
152,613
|
163,218
|
SEOs sold
4
|
12,778
|
12,455
|
11,808
|
11,240
|
13,238
|
12,920
|
11,446
|
12,241
|
Cumulative payable
units PBND 5
|
|
|
|
|
|
|
|
|
Gold ounces
|
61,198
|
81,365
|
84,989
|
80,819
|
66,238
|
70,072
|
70,555
|
75,750
|
Silver
ounces
|
3,684
|
3,920
|
4,200
|
3,845
|
3,802
|
3,738
|
4,486
|
3,437
|
Palladium
ounces
|
6,267
|
5,535
|
5,629
|
5,619
|
6,822
|
5,373
|
5,597
|
4,616
|
Cobalt
pounds
|
280
|
550
|
596
|
637
|
777
|
820
|
-
|
-
|
GEO
4
|
122,758
|
150,170
|
158,477
|
150,317
|
139,145
|
141,206
|
136,894
|
126,968
|
SEO
4
|
9,207
|
11,263
|
11,886
|
11,274
|
10,436
|
10,590
|
10,267
|
9,523
|
Inventory on
hand
|
|
|
|
|
|
|
|
|
Cobalt
pounds
|
582
|
410
|
657
|
488
|
134
|
132
|
-
|
-
|
1)
|
All figures in
thousands except gold and palladium ounces sold.
|
2)
|
Comprised of the
Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests.
|
3)
|
Comprised of the
Stillwater and East Boulder gold and palladium
interests.
|
4)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
5)
|
Payable gold, silver
and palladium ounces as well as cobalt pounds produced but not yet
delivered ("PBND") are based on management estimates. These figures
may be updated in future periods as additional information is
received.
|
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended June
30, 2022
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
34,129
|
48,515
|
$
|
1,872
|
$
|
416
|
$
|
334
|
$
|
90,842
|
$
|
54,462
|
$
|
70,649
|
$
|
2,407,579
|
Sudbury
4
|
7,212
|
7,916
|
|
1,867
|
|
400
|
|
1,090
|
|
14,780
|
|
2,983
|
|
11,613
|
|
294,485
|
Constancia
|
8,042
|
7,431
|
|
1,872
|
|
412
|
|
271
|
|
13,915
|
|
8,838
|
|
10,686
|
|
98,930
|
San Dimas
|
10,044
|
10,633
|
|
1,872
|
|
624
|
|
260
|
|
19,910
|
|
10,520
|
|
13,280
|
|
161,350
|
Stillwater
|
2,171
|
2,626
|
|
1,872
|
|
340
|
|
429
|
|
4,917
|
|
2,897
|
|
4,024
|
|
217,530
|
Other
5
|
6,767
|
7,216
|
|
1,868
|
|
727
|
|
57
|
|
13,478
|
|
7,823
|
|
8,529
|
|
419,696
|
|
68,365
|
84,337
|
$
|
1,872
|
$
|
465
|
$
|
369
|
$
|
157,842
|
$
|
87,523
|
$
|
118,781
|
$
|
3,599,570
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,089
|
2,096
|
$
|
22.47
|
$
|
4.36
|
$
|
3.57
|
$
|
47,102
|
$
|
30,488
|
$
|
37,963
|
$
|
306,742
|
Antamina
|
1,379
|
1,177
|
|
22.47
|
|
4.42
|
|
7.06
|
|
26,448
|
|
12,934
|
|
21,242
|
|
561,383
|
Constancia
|
584
|
494
|
|
22.47
|
|
6.08
|
|
6.35
|
|
11,101
|
|
4,958
|
|
7,784
|
|
198,672
|
Other
6
|
2,485
|
2,081
|
|
21.91
|
|
7.44
|
|
5.74
|
|
45,577
|
|
18,148
|
|
30,198
|
|
577,944
|
|
6,537
|
5,848
|
$
|
22.27
|
$
|
5.61
|
$
|
5.28
|
$
|
130,228
|
$
|
66,528
|
$
|
97,187
|
$
|
1,644,741
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
3,899
|
3,378
|
$
|
2,132
|
$
|
408
|
$
|
399
|
$
|
7,203
|
$
|
4,477
|
$
|
5,825
|
$
|
229,855
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4,852
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
136
|
225
|
$
|
34.01
|
$
|
6.86
|
$
|
10.40
|
$
|
7,649
|
$
|
3,769
|
$
|
13,797
|
$
|
362,460
|
Operating
results
|
|
|
|
|
|
|
|
$
|
302,922
|
$
|
162,297
|
$
|
235,590
|
$
|
5,841,478
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(9,685)
|
$
|
(8,379)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(1,608)
|
|
(18,161)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(1,160)
|
|
(1,135)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,389)
|
|
(1,011)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
820
|
|
(465)
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(201)
|
|
(80)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(13,223)
|
$
|
(29,231)
|
$
|
607,217
|
|
|
|
|
|
|
|
|
|
|
|
$
|
149,074
|
$
|
206,359
|
$
|
6,448,695
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests and the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating 777, Minto and Marmato gold interests as well as the
non-operating Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and
Curipamba gold interests. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel,
Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well
as the non-operating Loma de La Plata, Stratoni, Pascua-Lama,
Copper World Complex (formerly referred to as Rosemont), Blackwater
and Curipamba silver interests. The Stratoni mine was placed into
care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced. On June 22, 2022, Alexco elected to
temporarily suspend milling operations for five to six months to
focus on advancing underground development at Keno Hill.
|
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended June
30, 2022 were as follows:
Three Months Ended June
30, 2022
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 3
|
Cash
Operating
Margin
($'s Per
Ounce) 4
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
5
|
162,569
|
170,371
|
$
1,778
|
$
440
|
$
1,338
|
$
386
|
$
952
|
Silver equivalent basis
5
|
12,193
|
12,778
|
$
23.71
|
$
5.87
|
$
17.84
|
$
5.14
|
$
12.70
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Three Months Ended June
30, 2021
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
55,590
|
57,296
|
$
|
1,798
|
$
|
412
|
$
|
374
|
$
|
103,039
|
$
|
58,015
|
$
|
79,426
|
$
|
2,468,716
|
Sudbury
4
|
4,563
|
6,945
|
|
1,817
|
|
400
|
|
1,024
|
|
12,618
|
|
2,725
|
|
10,262
|
|
310,120
|
Constancia
|
5,525
|
2,321
|
|
1,798
|
|
408
|
|
315
|
|
4,174
|
|
2,496
|
|
3,227
|
|
104,310
|
San Dimas
|
11,478
|
11,214
|
|
1,798
|
|
618
|
|
322
|
|
20,167
|
|
9,627
|
|
13,242
|
|
175,275
|
Stillwater
|
2,962
|
2,574
|
|
1,798
|
|
326
|
|
397
|
|
4,629
|
|
2,769
|
|
3,791
|
|
222,069
|
Other
5
|
9,954
|
9,740
|
|
1,814
|
|
559
|
|
125
|
|
17,666
|
|
11,007
|
|
12,238
|
|
65,296
|
|
90,072
|
90,090
|
$
|
1,801
|
$
|
450
|
$
|
390
|
$
|
162,293
|
$
|
86,639
|
$
|
122,186
|
$
|
3,345,786
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,026
|
1,844
|
$
|
26.65
|
$
|
4.29
|
$
|
3.55
|
$
|
49,133
|
$
|
34,682
|
$
|
41,223
|
$
|
336,314
|
Antamina
|
1,558
|
1,499
|
|
26.63
|
|
5.39
|
|
7.53
|
|
39,903
|
|
20,545
|
|
31,013
|
|
601,117
|
Constancia
|
468
|
295
|
|
26.65
|
|
6.02
|
|
7.56
|
|
7,865
|
|
3,858
|
|
6,088
|
|
212,197
|
Other
6
|
2,477
|
1,962
|
|
26.78
|
|
8.39
|
|
5.20
|
|
52,554
|
|
25,893
|
|
34,132
|
|
608,588
|
|
6,529
|
5,600
|
$
|
26.69
|
$
|
6.11
|
$
|
5.40
|
$
|
149,455
|
$
|
84,978
|
$
|
112,456
|
$
|
1,758,216
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
5,301
|
3,869
|
$
|
2,797
|
$
|
503
|
$
|
442
|
$
|
10,822
|
$
|
7,164
|
$
|
8,876
|
$
|
237,407
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
380
|
395
|
$
|
19.82
|
$
|
4.41
|
$
|
8.17
|
$
|
7,823
|
$
|
2,859
|
$
|
2,052
|
$
|
222,106
|
Operating
results
|
|
|
|
|
|
|
|
$
|
330,393
|
$
|
181,640
|
$
|
245,570
|
$
|
5,563,515
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(8,904)
|
$
|
(8,573)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(7,978)
|
|
(16,926)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(1,583)
|
|
(1,075)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,357)
|
|
(978)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
3,420
|
|
(1,582)
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
886
|
|
(21)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(15,516)
|
$
|
(29,155)
|
$
|
417,951
|
|
|
|
|
|
|
|
|
|
|
|
$
|
166,124
|
$
|
216,415
|
$
|
5,981,466
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests as well as the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating Minto, 777 and Marmato gold interests as well as the
non-operating Copper World Complex gold interest (formerly referred
to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver
interests as well as the non-operating Loma de La Plata, Copper
World Complex (formerly referred to as Rosemont) and Pascua-Lama
silver interests. The Stratoni mine was placed into care and
maintenance during Q4-2021. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced. On June 22, 2022, Alexco elected to temporarily suspend
milling operations for five to six months to focus on advancing
underground development at Keno Hill.
|
On a gold equivalent and silver equivalent basis, results for the
Company for the three months ended June 30,
2021 were as follows:
Three Months Ended June
30, 2021
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 3
|
Cash
Operating
Margin
($'s Per
Ounce) 4
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
5
|
190,272
|
176,502
|
$
1,872
|
$
444
|
$
1,428
|
$
398
|
$
1,030
|
Silver equivalent basis
5
|
14,270
|
13,238
|
$
24.96
|
$
5.93
|
$
19.03
|
$
5.31
|
$
13.72
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Six Months Ended June
30, 2022
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
79,012
|
91,028
|
$
|
1,872
|
$
|
416
|
$
|
334
|
$
|
170,407
|
$
|
102,147
|
$
|
132,517
|
$
|
2,407,579
|
Sudbury
4
|
12,574
|
11,628
|
|
1,865
|
|
400
|
|
1,091
|
|
21,689
|
|
4,354
|
|
17,038
|
|
294,485
|
Constancia
|
14,353
|
17,925
|
|
1,872
|
|
412
|
|
271
|
|
33,555
|
|
21,308
|
|
26,168
|
|
98,930
|
San Dimas
|
20,505
|
20,703
|
|
1,872
|
|
621
|
|
260
|
|
38,756
|
|
20,528
|
|
25,901
|
|
161,350
|
Stillwater
|
4,668
|
5,254
|
|
1,872
|
|
335
|
|
429
|
|
9,835
|
|
5,823
|
|
8,078
|
|
217,530
|
Other
5
|
15,307
|
15,700
|
|
1,865
|
|
750
|
|
40
|
|
29,275
|
|
16,871
|
|
17,351
|
|
419,696
|
|
146,419
|
162,238
|
$
|
1,871
|
$
|
470
|
$
|
346
|
$
|
303,517
|
$
|
171,031
|
$
|
227,053
|
$
|
3,599,570
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
4,308
|
4,284
|
$
|
23.30
|
$
|
4.36
|
$
|
3.57
|
$
|
99,829
|
$
|
65,874
|
$
|
81,151
|
$
|
306,742
|
Antamina
|
2,647
|
2,645
|
|
23.37
|
|
4.71
|
|
7.06
|
|
61,806
|
|
30,680
|
|
49,001
|
|
561,383
|
Constancia
|
1,090
|
1,138
|
|
23.39
|
|
6.08
|
|
6.34
|
|
26,614
|
|
12,484
|
|
19,697
|
|
198,672
|
Other
6
|
4,725
|
3,334
|
|
22.89
|
|
6.93
|
|
4.88
|
|
76,311
|
|
36,946
|
|
54,073
|
|
577,944
|
|
12,770
|
11,401
|
$
|
23.21
|
$
|
5.36
|
$
|
5.04
|
$
|
264,560
|
$
|
145,984
|
$
|
203,922
|
$
|
1,644,741
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
8,387
|
7,453
|
$
|
2,246
|
$
|
400
|
$
|
399
|
$
|
16,736
|
$
|
10,781
|
$
|
13,755
|
$
|
229,855
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
4,852
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
371
|
736
|
$
|
34.43
|
$
|
6.09
|
$
|
8.85
|
$
|
25,353
|
$
|
14,350
|
$
|
17,269
|
$
|
362,460
|
Operating
results
|
|
|
|
|
|
|
|
$
|
610,166
|
$
|
342,146
|
$
|
461,999
|
$
|
5,841,478
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(19,089)
|
$
|
(23,506)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(11,509)
|
|
(18,161)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(1,973)
|
|
(1,565)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(2,811)
|
|
(2,088)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
650
|
|
333
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(872)
|
|
(113)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(35,604)
|
$
|
(45,100)
|
$
|
607,217
|
|
|
|
|
|
|
|
|
|
|
|
$
|
306,542
|
$
|
416,899
|
$
|
6,448,695
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests and the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating 777, Minto and Marmato gold interests as well as the
non-operating Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and
Curipamba gold interests. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel,
Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well
as the non-operating Loma de La Plata, Stratoni, Pascua-Lama,
Copper World Complex (formerly referred to as Rosemont), Blackwater
and Curipamba silver interests. The Stratoni mine was placed into
care and maintenance during Q4-2021. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced. On June 22, 2022, Alexco elected to
temporarily suspend milling operations for five to six months to
focus on advancing underground development at Keno Hill.
|
On a gold equivalent and silver equivalent basis, results for
the Company for the six months ended June
30, 2022 were as follows:
Six Months Ended June
30, 2022
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 3
|
Cash
Operating
Margin
($'s Per
Ounce) 4
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
5
|
333,265
|
336,436
|
$
1,814
|
$
431
|
$
1,383
|
$
366
|
$
1,017
|
Silver equivalent basis
5
|
24,995
|
25,233
|
$
24.18
|
$
5.74
|
$
18.44
|
$
4.88
|
$
13.56
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Six Months Ended June
30, 2021
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
102,212
|
108,719
|
$
|
1,797
|
$
|
412
|
$
|
374
|
$
|
195,395
|
$
|
109,962
|
$
|
150,590
|
$
|
2,468,716
|
Sudbury
4
|
11,567
|
10,636
|
|
1,815
|
|
400
|
|
1,024
|
|
19,306
|
|
4,156
|
|
15,480
|
|
310,120
|
Constancia
|
7,978
|
3,997
|
|
1,797
|
|
408
|
|
315
|
|
7,184
|
|
4,294
|
|
5,553
|
|
104,310
|
San Dimas
|
21,969
|
21,487
|
|
1,797
|
|
615
|
|
322
|
|
38,617
|
|
18,477
|
|
25,404
|
|
175,275
|
Stillwater
|
6,003
|
5,648
|
|
1,797
|
|
327
|
|
397
|
|
10,150
|
|
6,059
|
|
8,300
|
|
222,069
|
Other
5
|
18,872
|
14,707
|
|
1,813
|
|
582
|
|
83
|
|
26,667
|
|
16,885
|
|
18,093
|
|
65,296
|
|
168,601
|
165,194
|
$
|
1,800
|
$
|
450
|
$
|
382
|
$
|
297,319
|
$
|
159,833
|
$
|
223,420
|
$
|
3,345,786
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
4,228
|
4,018
|
$
|
26.41
|
$
|
4.29
|
$
|
3.55
|
$
|
106,116
|
$
|
74,621
|
$
|
88,879
|
$
|
336,314
|
Antamina
|
3,135
|
3,429
|
|
26.39
|
|
5.27
|
|
7.53
|
|
90,485
|
|
46,603
|
|
71,604
|
|
601,117
|
Constancia
|
874
|
641
|
|
26.41
|
|
6.02
|
|
7.56
|
|
16,936
|
|
8,229
|
|
13,076
|
|
212,197
|
Other
6
|
5,057
|
4,169
|
|
26.34
|
|
8.93
|
|
5.78
|
|
109,800
|
|
48,482
|
|
73,230
|
|
608,588
|
|
13,294
|
12,257
|
$
|
26.38
|
$
|
6.23
|
$
|
5.63
|
$
|
323,337
|
$
|
177,935
|
$
|
246,789
|
$
|
1,758,216
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
11,070
|
9,000
|
$
|
2,566
|
$
|
460
|
$
|
442
|
$
|
23,097
|
$
|
14,978
|
$
|
18,960
|
$
|
237,407
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
1,542
|
527
|
$
|
20.42
|
$
|
4.55
|
$
|
8.17
|
$
|
10,759
|
$
|
4,056
|
$
|
1,086
|
$
|
222,106
|
Operating
results
|
|
|
|
|
|
|
|
$
|
654,512
|
$
|
356,802
|
$
|
490,255
|
$
|
5,563,515
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(18,639)
|
$
|
(21,236)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(9,608)
|
|
(16,926)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(2,188)
|
|
(1,573)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(2,930)
|
|
(2,207)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
3,301
|
|
307
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
1,388
|
|
(51)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(28,676)
|
$
|
(41,686)
|
$
|
417,951
|
|
|
|
|
|
|
|
|
|
|
|
$
|
328,126
|
$
|
448,569
|
$
|
5,981,466
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests as well as the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating Minto, 777 and Marmato gold interests as well as the
non-operating Copper World Complex gold interest (formerly referred
to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver
interests as well as the non-operating Loma de La Plata, Copper
World Complex (formerly referred to as Rosemont) and Pascua-Lama
silver interests. The Stratoni mine was placed into care and
maintenance during Q4-2021. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced. On June 22, 2022, Alexco elected to temporarily suspend
milling operations for five to six months to focus on advancing
underground development at Keno Hill.
|
On a gold equivalent and silver equivalent basis, results for
the Company for the six months ended June
30, 2021 were as follows:
Six Months Ended June
30, 2021
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 3
|
Cash
Operating
Margin
($'s Per
Ounce) 4
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
5
|
387,028
|
348,773
|
$
1,877
|
$
451
|
$
1,426
|
$
403
|
$
1,023
|
Silver equivalent basis
5
|
29,027
|
26,158
|
$
25.02
|
$
6.01
|
$
19.01
|
$
5.37
|
$
13.64
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis; and
(iv) cash operating margin.
i.
|
Adjusted net earnings
and adjusted net earnings per share are calculated by removing the
effects of non-cash impairment charges (reversals) (if any),
non-cash fair value (gains) losses and other one-time (income)
expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery)
recognized in the Statements of Shareholders' Equity and OCI,
respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
|
The following table provides a
reconciliation of adjusted net earnings and adjusted net earnings
per share (basic and diluted).
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
(in thousands, except
for per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
|
|
$
|
149,074
|
|
$
|
166,124
|
|
$
|
306,542
|
|
$
|
328,126
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
(Gain) loss on fair
value adjustment of
share purchase warrants held
|
|
|
154
|
|
|
194
|
|
|
897
|
|
|
1,145
|
(Gain) loss on fair
value adjustment of
convertible notes receivable
|
|
|
-
|
|
|
(3,388)
|
|
|
1,380
|
|
|
(4,626)
|
Income tax expense
(recovery)
recognized in the Statement of
Shareholders' Equity
|
|
|
(292)
|
|
|
(463)
|
|
|
500
|
|
|
1,107
|
Income tax expense
(recovery)
recognized in the Statement of OCI
|
|
|
349
|
|
|
(479)
|
|
|
155
|
|
|
(2,616)
|
Other
|
|
|
-
|
|
|
(362)
|
|
|
(2,182)
|
|
|
(376)
|
Adjusted net
earnings
|
|
$
|
149,285
|
|
$
|
161,626
|
|
$
|
307,292
|
|
$
|
322,760
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
number of
shares outstanding
|
|
|
451,524
|
|
|
450,088
|
|
|
451,221
|
|
|
449,800
|
Diluted weighted
average number of
shares outstanding
|
|
|
452,359
|
|
|
451,203
|
|
|
452,123
|
|
|
450,869
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share - basic
|
|
$
|
0.331
|
|
$
|
0.359
|
|
$
|
0.681
|
|
$
|
0.718
|
Adjusted earnings per
share - diluted
|
|
$
|
0.330
|
|
$
|
0.358
|
|
$
|
0.680
|
|
$
|
0.716
|
ii.
|
Operating cash flow per
share (basic and diluted) is calculated by dividing cash generated
by operating activities by the weighted average number of shares
outstanding (basic and diluted). The Company presents operating
cash flow per share as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis.
|
The following table provides a
reconciliation of operating cash flow per share (basic and
diluted).
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
(in thousands, except
for per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash generated by
operating activities
|
|
$
|
206,359
|
|
$
|
216,415
|
|
$
|
416,899
|
|
$
|
448,569
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
number of
shares outstanding
|
|
|
451,524
|
|
|
450,088
|
|
|
451,221
|
|
|
449,800
|
Diluted weighted
average number of
shares outstanding
|
|
|
452,359
|
|
|
451,203
|
|
|
452,123
|
|
|
450,869
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
per share - basic
|
|
$
|
0.457
|
|
$
|
0.481
|
|
$
|
0.924
|
|
$
|
0.997
|
Operating cash flow
per share - diluted
|
|
$
|
0.456
|
|
$
|
0.480
|
|
$
|
0.922
|
|
$
|
0.995
|
iii.
|
Average cash cost of
gold, silver and palladium on a per ounce basis and cobalt on a per
pound basis is calculated by dividing the total cost of sales, less
depletion, by the ounces or pounds sold. In the precious metal
mining industry, this is a common performance measure but does not
have any standardized meaning prescribed by IFRS. In addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance and ability to generate cash flow.
|
The following table provides a calculation
of average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis.
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
(in thousands, except
for gold and palladium ounces sold
and per unit amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cost of
sales
|
|
$
|
140,625
|
|
$
|
148,753
|
|
$
|
268,020
|
|
$
|
297,710
|
Less:
depletion
|
|
|
(65,682)
|
|
|
(70,308)
|
|
|
(123,084)
|
|
|
(140,482)
|
Cash cost of
sales
|
|
$
|
74,943
|
|
$
|
78,445
|
|
$
|
144,936
|
|
$
|
157,228
|
Cash cost of sales is
comprised of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash cost of
gold sold
|
|
$
|
39,189
|
|
$
|
40,543
|
|
$
|
76,321
|
|
$
|
74,318
|
Total cash cost of
silver sold
|
|
|
32,834
|
|
|
34,216
|
|
|
61,149
|
|
|
76,375
|
Total cash cost of
palladium sold
|
|
|
1,378
|
|
|
1,946
|
|
|
2,980
|
|
|
4,137
|
Total cash cost of
cobalt sold
|
|
|
1,542
|
|
|
1,740
|
|
|
4,486
|
|
|
2,398
|
Total cash cost of
sales
|
|
$
|
74,943
|
|
$
|
78,445
|
|
$
|
144,936
|
|
$
|
157,228
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gold ounces
sold
|
|
|
84,337
|
|
|
90,090
|
|
|
162,238
|
|
|
165,194
|
Total silver ounces
sold
|
|
|
5,848
|
|
|
5,600
|
|
|
11,401
|
|
|
12,257
|
Total palladium ounces
sold
|
|
|
3,378
|
|
|
3,869
|
|
|
7,453
|
|
|
9,000
|
Total cobalt pounds
sold
|
|
|
225
|
|
|
395
|
|
|
736
|
|
|
527
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cash cost of
gold (per ounce)
|
|
$
|
465
|
|
$
|
450
|
|
$
|
470
|
|
$
|
450
|
Average cash cost of
silver (per ounce)
|
|
$
|
5.61
|
|
$
|
6.11
|
|
$
|
5.36
|
|
$
|
6.23
|
Average cash cost of
palladium (per ounce)
|
|
$
|
408
|
|
$
|
503
|
|
$
|
400
|
|
$
|
460
|
Average cash cost of
cobalt (per pound)
|
|
$
|
6.86
|
|
$
|
4.41
|
|
$
|
6.09
|
|
$
|
4.55
|
iv.
|
Cash operating margin
is calculated by subtracting the average cash cost of gold, silver
and palladium on a per ounce basis and cobalt on a per pound basis
from the average realized selling price of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis. The
Company presents cash operating margin as management and certain
investors use this information to evaluate the Company's
performance in comparison to other companies in the precious metal
mining industry who present results on a similar basis as well as
to evaluate the Company's ability to generate cash
flow.
|
The following table provides a
reconciliation of cash operating margin.
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
(in thousands, except
for gold and palladium ounces sold and per
unit amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
|
$
|
157,842
|
|
$
|
162,293
|
|
$
|
303,517
|
|
$
|
297,319
|
Silver
|
|
$
|
130,228
|
|
$
|
149,455
|
|
$
|
264,560
|
|
$
|
323,337
|
Palladium
|
|
$
|
7,203
|
|
$
|
10,822
|
|
$
|
16,736
|
|
$
|
23,097
|
Cobalt
|
|
$
|
7,649
|
|
$
|
7,823
|
|
$
|
25,353
|
|
$
|
10,759
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gold ounces
sold
|
|
|
84,337
|
|
|
90,090
|
|
|
162,238
|
|
|
165,194
|
Total silver ounces
sold
|
|
|
5,848
|
|
|
5,600
|
|
|
11,401
|
|
|
12,257
|
Total palladium ounces
sold
|
|
|
3,378
|
|
|
3,869
|
|
|
7,453
|
|
|
9,000
|
Total cobalt pounds
sold
|
|
|
225
|
|
|
395
|
|
|
736
|
|
|
527
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized price
of gold (per ounce)
|
|
$
|
1,872
|
|
$
|
1,801
|
|
$
|
1,871
|
|
$
|
1,800
|
Average realized price
of silver (per ounce)
|
|
$
|
22.27
|
|
$
|
26.69
|
|
$
|
23.21
|
|
$
|
26.38
|
Average realized price
of palladium (per ounce)
|
|
$
|
2,132
|
|
$
|
2,797
|
|
$
|
2,246
|
|
$
|
2,566
|
Average realized price
of cobalt (per pound)
|
|
$
|
34.01
|
|
$
|
19.82
|
|
$
|
34.43
|
|
$
|
20.42
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cash cost of
gold 1 (per ounce)
|
|
$
|
(465)
|
|
$
|
(450)
|
|
$
|
(470)
|
|
$
|
(450)
|
Average cash cost of
silver 1 (per ounce)
|
|
$
|
(5.61)
|
|
$
|
(6.11)
|
|
$
|
(5.36)
|
|
$
|
(6.23)
|
Average cash cost of
palladium 1 (per ounce)
|
|
$
|
(408)
|
|
$
|
(503)
|
|
$
|
(400)
|
|
$
|
(460)
|
Average cash cost of
cobalt 1 (per pound)
|
|
$
|
(6.86)
|
|
$
|
(4.41)
|
|
$
|
(6.09)
|
|
$
|
(4.55)
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating margin
per gold ounce sold
|
|
$
|
1,407
|
|
$
|
1,351
|
|
$
|
1,401
|
|
$
|
1,350
|
As a percentage of
realized price of gold
|
|
|
75 %
|
|
|
75 %
|
|
|
75 %
|
|
|
75 %
|
Cash operating margin
per silver ounce sold
|
|
$
|
16.66
|
|
$
|
20.58
|
|
$
|
17.85
|
|
$
|
20.15
|
As a percentage of
realized price of silver
|
|
|
75 %
|
|
|
77 %
|
|
|
77 %
|
|
|
76 %
|
Cash operating margin
per palladium ounce sold
|
|
$
|
1,724
|
|
$
|
2,294
|
|
$
|
1,846
|
|
$
|
2,106
|
As a percentage of
realized price of palladium
|
|
|
81 %
|
|
|
82 %
|
|
|
82 %
|
|
|
82 %
|
Cash operating margin
per cobalt pound sold
|
|
$
|
27.15
|
|
$
|
15.41
|
|
$
|
28.34
|
|
$
|
15.87
|
As a percentage of
realized price of cobalt
|
|
|
80 %
|
|
|
78 %
|
|
|
82 %
|
|
|
78 %
|
1) Please refer to
non-IFRS measure (iii), above.
|
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS
measures is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
future price of commodities, the estimation of future production
from Mining Operations (including in the estimation of production,
mill throughput, grades, recoveries and exploration potential), the
estimation of mineral reserves and mineral resources (including the
estimation of reserve conversion rates) and the realization of such
estimations, the commencement, timing and achievement of
construction, expansion or improvement projects by Wheaton's PMPA
counterparties at mineral stream interests owned by Wheaton (the
"Mining Operations"), the payment of upfront cash consideration to
counterparties under PMPAs, the satisfaction of each party's
obligations in accordance with PMPAs and royalty arrangements and
the receipt by the Company of precious metals and cobalt production
in respect of the applicable Mining Operations under PMPAs or other
payments under royalty arrangements, the ability of Wheaton's PMPA
counterparties to comply with the terms of a PMPA (including as a
result of the business, mining operations and performance of
Wheaton's PMPA counterparties) and the potential impacts of such on
Wheaton, future payments by the Company in accordance with PMPAs,
the costs of future production, the estimation of produced but not
yet delivered ounces, the impact of epidemics (including the
COVID-19 virus pandemic), including the potential heightening of
other risks, future sales of common shares under the ATM program,
continued listing of the Company's common shares, any statements as
to future dividends, the ability to fund outstanding commitments
and the ability to continue to acquire accretive PMPAs, including
any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's
production mix, the ability of Wheaton's PMPA counterparties to
comply with the terms of any other obligations under agreements
with the Company, the ability to sell precious metals and cobalt
production, confidence in the Company's business structure, the
Company's assessment of taxes payable and the impact of the CRA
Settlement for years subsequent to 2010, possible domestic audits
for taxation years subsequent to 2016 and international audits, the
Company's assessment of the impact of any tax
reassessments, the Company's intention to file future tax
returns in a manner consistent with the CRA Settlement, the
Company's climate change and environmental commitments, and
assessments of the impact and resolution of various legal and tax
matters, including but not limited to audits. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "projects", "intends", "anticipates" or "does not
anticipate", or "believes", "potential", or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs or royalty
arrangements, risks associated with fluctuations in the price of
commodities (including Wheaton's ability to sell its precious
metals or cobalt production at acceptable prices or at all), risks
of significant impacts on Wheaton or the Mining Operations as a
result of an epidemic (including the COVID-19 virus pandemic),
risks related to the Mining Operations (including fluctuations in
the price of the primary or other commodities mined at such
operations, regulatory, political and other risks of the
jurisdictions in which the Mining Operations are located, actual
results of mining, risks associated with the exploration,
development, operating, expansion and improvement of the Mining
Operations, environmental and economic risks of the Mining
Operations, and changes in project parameters as plans continue to
be refined), the absence of control over the Mining Operations and
having to rely on the accuracy of the public disclosure and other
information Wheaton receives from the Mining Operations,
uncertainty in the estimation of production from Mining Operations,
uncertainty in the accuracy of mineral reserve and mineral resource
estimation, the ability of each party to satisfy their obligations
in accordance with the terms of the PMPAs, the estimation of future
production from Mining Operations, Wheaton's interpretation of,
compliance with or application of, tax laws and regulations or
accounting policies and rules being found to be incorrect, any
challenge or reassessment by the CRA of the Company's tax filings
being successful and the potential negative impact to the Company's
previous and future tax filings, assessing the impact of the CRA
Settlement (including whether there will be any material change in
the Company's facts or change in law or jurisprudence), potential
implementation of a 15% global minimum tax, counterparty credit and
liquidity, mine operator concentration, indebtedness and
guarantees, hedging, competition, claims and legal proceedings
against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of
Wheaton and the Mining Operations, exploration, development,
operations, expansions and improvements at the Mining Operations,
environmental regulations, climate change, Wheaton and the Mining
Operations ability to obtain and maintain necessary licenses,
permits, approvals and rulings, Wheaton and the Mining Operations
ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable supplies, infrastructure and
employees to support the Mining Operations, inability to replace
and expand mineral reserves, including anticipated timing of the
commencement of production by certain Mining Operations (including
increases in production, estimated grades and recoveries),
uncertainties of title and indigenous rights with respect to the
Mining Operations, environmental, social and governance matters,
Wheaton and the Mining Operations ability to obtain adequate
financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial
conditions, Wheaton's acquisition strategy and other risks
discussed in the section entitled "Description of the Business –
Risk Factors" in Wheaton's Annual Information Form available on
SEDAR at www.sedar.com, Wheaton's Form 40-F for the year ended
December 31, 2021 and Form 6-K filed
March 31, 2022 both on file with the
U.S. Securities and Exchange Commission on EDGAR (the
"Disclosure"). Forward-looking statements are based on assumptions
management currently believes to be reasonable, including (without
limitation): that there will be no material adverse change in the
market price of commodities, that the Mining Operations will
continue to operate and the mining projects will be completed in
accordance with public statements and achieve their stated
production estimates, that the mineral reserves and mineral
resource estimates from Mining Operations (including reserve
conversion rates) are accurate, that each party will satisfy their
obligations in accordance with the PMPAs, that Wheaton will
continue to be able to fund or obtain funding for outstanding
commitments, that Wheaton will be able to source and obtain
accretive PMPAs, that neither Wheaton nor the Mining Operations
will suffer significant impacts as a result of an epidemic
(including the COVID-19 virus pandemic), that any outbreak or
threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there will be no material change in
the Company's facts or change in law or jurisprudence), and such
other assumptions and factors as set out in the Disclosure. There
can be no assurance that forward-looking statements will prove to
be accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward‑looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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SOURCE Wheaton Precious Metals Corp.