Designated News Release
THIRD QUARTER 2022 FINANCIAL RESULTS
TSX | NYSE | LSE: WPM
VANCOUVER, BC, Nov. 3, 2022
/CNW/ - "At Wheaton, we focus on building a sustainable
company that provides investors with profitable, long-term exposure
to precious metals. While inflationary pressures have impacted all
sectors of the economy, especially mining, Wheaton has maintained
cash operating margins of over 75% year to date, highlighting the
strength of our streaming business model," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "Despite some recent
challenges, we are pleased with the improvements we have seen over
the third quarter in our diverse portfolio of high-quality assets,
which is forecast to deliver significant organic growth over the
next five years and sustained precious metals production for
decades to come. We also are very optimistic that we can continue
to add accretive new streams to the portfolio given the number of
opportunities that we are currently reviewing coupled with one of
the strongest balance sheets in the sector."
Solid Financial Results and Strong Balance Sheet
- $219 million in revenue and
$154 million in operating cash flow
in the quarter
- $197 million in net earnings and
$94 million in adjusted net
earnings1 in the quarter
- A cash balance of $495 million
and no debt as at September 30,
2022
- Extended the maturity date of the undrawn US$2 billion revolving credit facility to
July 18, 2027
- Declared a quarterly dividend1 of $0.15 per common share
High Quality Asset Base
- Streaming agreements on 21 operating mines and 13 development
projects
- 85% of attributable production from assets in the lowest half
of their respective cost curves2
- 29 years of mine life based on Proven and Probable Mineral
Reserves and potential additional mine life from mineral resource
conversion and exploration3
- Average annual production for the ten-year period ending
December 31, 2031, is expected to be
approximately 850,000 GEOs2,4
- Completed the previously disclosed termination of the Keno Hill
precious metal purchase agreement ("PMPA") for $141 million, resulting in an impairment reversal
of $10 million and a gain on
disposition of $104 million
- Announced the proposed termination of the Yauliyacu PMPA for
$150 million, less the aggregate
value of any deliveries to Wheaton of silver produced in 2022 prior
to closing
Leadership in Sustainability
- Top Rankings: #1 out of 119 precious metals companies and
Global Top 50 out of over 14,900 multi-sector companies by
Sustainalytics, AA rated by MSCI, and Prime rated by ISS
- Commitment to Net-Zero Carbon Emissions by 2050 supported by
interim targets covering all material emissions including Scope
3
- Established a sustainability linked element in connection with
the extension of the revolving credit facility
- Recognized as one of the Best 50 Corporate Citizens in
Canada by Corporate Knights
- Recognized by ESG Investing for Best Climate Related Reporting
(Mid Cap)
- Supported flood relief to local communities near the
Stillwater mine in Montana
- Presenting sponsor of BC Cancer Foundation's Tour de Cure
supporting cancer research
Operational Overview
(all figures in US
dollars unless otherwise noted)
|
|
|
Q3
2022
|
|
|
Q3
2021
|
|
Change
|
|
|
YTD
2022
|
|
|
YTD 2021
|
|
|
Change
|
Units
produced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
73,508
|
|
|
85,624
|
|
(14.2) %
|
|
|
218,004
|
|
|
254,225
|
|
|
(14.2) %
|
Silver
ounces
|
|
|
5,883
|
|
|
6,349
|
|
(7.3) %
|
|
|
18,645
|
|
|
19,643
|
|
|
(5.1) %
|
Palladium
ounces
|
|
|
3,229
|
|
|
5,105
|
|
(36.7) %
|
|
|
11,616
|
|
|
16,175
|
|
|
(28.2) %
|
Cobalt
pounds
|
|
|
226
|
|
|
370
|
|
(39.0) %
|
|
|
596
|
|
|
1,912
|
|
|
(68.8) %
|
Gold equivalent ounces
2
|
|
|
159,852
|
|
|
183,012
|
|
(12.7) %
|
|
|
491,088
|
|
|
570,040
|
|
|
(13.9) %
|
Units
sold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
62,000
|
|
|
67,649
|
|
(8.4) %
|
|
|
224,238
|
|
|
232,843
|
|
|
(3.7) %
|
Silver
ounces
|
|
|
5,234
|
|
|
5,487
|
|
(4.6) %
|
|
|
16,635
|
|
|
17,744
|
|
|
(6.3) %
|
Palladium
ounces
|
|
|
4,227
|
|
|
5,703
|
|
(25.9) %
|
|
|
11,680
|
|
|
14,703
|
|
|
(20.6) %
|
Cobalt
pounds
|
|
|
115
|
|
|
131
|
|
(12.2) %
|
|
|
851
|
|
|
658
|
|
|
29.3 %
|
Gold equivalent ounces
2
|
|
|
138,824
|
|
|
149,862
|
|
(7.4) %
|
|
|
475,259
|
|
|
498,635
|
|
|
(4.7) %
|
Change in PBND and
Inventory
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold equivalent ounces
2
|
|
|
6,620
|
|
|
17,659
|
|
11,039
|
|
|
(32,497)
|
|
|
22,375
|
|
|
54,872
|
Revenue
|
|
$
|
218,836
|
|
$
|
268,957
|
|
(18.6) %
|
|
$
|
829,002
|
|
$
|
923,468
|
|
|
(10.2) %
|
Net
earnings
|
|
$
|
196,460
|
|
$
|
134,937
|
|
45.6 %
|
|
$
|
503,001
|
|
$
|
463,063
|
|
|
8.6 %
|
Per share
|
|
$
|
0.435
|
|
$
|
0.300
|
|
45.0 %
|
|
$
|
1.114
|
|
$
|
1.029
|
|
|
8.3 %
|
Adjusted net
earnings 1
|
|
$
|
93,878
|
|
$
|
137,087
|
|
(31.5) %
|
|
$
|
401,168
|
|
$
|
459,848
|
|
|
(12.8) %
|
Per share
1
|
|
$
|
0.208
|
|
$
|
0.304
|
|
(31.6) %
|
|
$
|
0.889
|
|
$
|
1.022
|
|
|
(13.0) %
|
Operating cash
flows
|
|
$
|
154,497
|
|
$
|
201,287
|
|
(23.2) %
|
|
$
|
571,396
|
|
$
|
649,856
|
|
|
(12.1) %
|
Per share
1
|
|
$
|
0.342
|
|
$
|
0.447
|
|
(23.5) %
|
|
$
|
1.266
|
|
$
|
1.444
|
|
|
(12.3) %
|
All amounts in
thousands except gold, palladium & gold equivalent ounces, and
per share amounts.
|
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2022, Salobo
produced 44,200 ounces of attributable gold, a decrease of
approximately 20% relative to the third quarter of 2021, primarily
due to lower grades and recovery. According to Vale S.A.'s
("Vale"), plant performance improved relative to the second quarter
of 2022 despite additional planned and corrective maintenance
performed in the third quarter. Vale plans for maintenance
activities to continue in the fourth quarter of 2022 to further
improve plant reliability.
Vale reports that physical completion of the Salobo III mine
expansion was 98% at the end of the third quarter. Progress in the
third quarter included the primary crushing circuit being fully
commissioned, hot commissioning of the conveyor system, and
commencement of wet commissioning of the flotation circuit.
Antamina: In the third quarter of 2022, Antamina
produced 1.4 million ounces of attributable silver, a decrease of
approximately 11% relative to the third quarter of 2021, primarily
due to lower grades as per the mine plan.
Peñasquito: In the third quarter of 2022,
Peñasquito produced 2.0 million ounces of attributable silver, a
decrease of approximately 7% relative to the third quarter of 2021
with lower recovery and grades as per the mine plan.
Constancia: In the third quarter of 2022,
Constancia produced 0.6 million ounces of attributable silver and
7,200 ounces of attributable gold, an increase of approximately 8%
for silver production and a decrease of approximately 16% for gold
production relative to the third quarter of 2021, with the increase
in silver being primarily due to higher throughput and the decrease
in gold production being primarily due to the mining of lower-grade
material resulting from mine sequencing.
Sudbury: In the
third quarter of 2022, Vale's Sudbury mines produced 4,700 ounces of
attributable gold, an increase of approximately 3109% relative to
the third quarter of 2021, primarily due to operations at the mine
being temporarily suspended due to a labour dispute which lasted
from June 1, 2021 to August 9, 2021. Vale reports that in the third
quarter, the first phase of the Copper Cliff Complex South Mine
Project was opened, including the development of more than 12km of
tunnels to reunite the south and north shafts of the mine, which is
expected to nearly double ore production at the Copper Cliff Mine.
The Copper Cliff Mine has historically represented approximately
20% of attributable production for Wheaton from Sudbury.
Stillwater: In the third quarter
of 2022, the Stillwater mines
produced 1,800 ounces of attributable gold and 3,200 ounces of
attributable palladium, a decrease of approximately 38% for gold
and 37% for palladium relative to the third quarter of 2021. As per
Sibanye-Stillwater Limited, regional floods impacted the
Stillwater operations on
June 13, 2022, including damage to
bridges and the access road to the Stillwater mine. Operations at the
Stillwater mine, which accounts
for 60% of the mined production from the Stillwater operations, were suspended for
seven weeks, but resumed on July 29,
2022. Access to the East Boulder mine and the Columbus
metallurgical facilities remains intact and both facilities
continued operating during the flooding events.
San Dimas: In the third quarter of 2022, San Dimas
produced 11,800 ounces of attributable gold, virtually unchanged
relative to the third quarter of 2021, primarily due to lower
throughput offset by higher grades. According to First Majestic
Silver Corp., silver and gold grades were higher in the third
quarter compared to the prior quarter due to improvements in
dilution control from the long hole stoping in the Jessica and
Regina veins and due to initial production from the Perez vein
commencing in July.
Other Gold: In the third quarter of 2022, total
Other Gold attributable production was 3,700 ounces, a decrease of
approximately 46% relative to the third quarter of 2021, primarily
due to the closure of the 777 mine in June
2022.
Other Silver: In the third quarter of 2022,
total Other Silver attributable production was 1.9 million ounces,
a decrease of approximately 8% relative to the third quarter of
2021, primarily due to lower production at Aljustrel (grades) and
Stratoni (placed into care and maintenance).
Voisey's Bay: In the third quarter of 2022,
the Voisey's Bay mine produced 226,000 pounds of attributable
cobalt, a decrease of approximately 39% relative to the third
quarter of 2021, primarily due to mining lower grade material
during the ongoing transitional period between the depletion of the
Ovoid open-pit mine and ramp-up to full production of the Voisey's
Bay underground project. Vale reports that physical completion of
the Voisey's Bay underground mine extension was 78% at the end of
the third quarter. Progress in the third quarter included surface
activities being well advanced with the port fuel tanks installed
and Eastern Deeps mine fresh air infrastructure completed, and in
the underground, the Reid Brook bulk Material Handling System
advancing on schedule.
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Third Quarter Development Asset Highlights
Goose Project: Sabina Gold &
Silver Corp. ("Sabina") announced a formal construction decision
for the Goose Project. Sabina noted that the project will be in a
position to commence full construction in early 2023 with first
production expected in 2025.
Blackwater Project: Artemis Gold Inc.
("Artemis") announced the commencement of site preparation work at
the plant site including site clearing, bulk earthworks and
sediment/erosion control. Artemis believes the Blackwater plant
site will start major construction works in the first quarter of
2023.
Marathon Project: Generation Mining Limited
("Gen Mining") delivered the environmental assessment report for
the Marathon Project to federal and provincial ministers and
announced the purchasing of an unused, surplus SAG mill and ball
mill. Gen Mining anticipates starting construction late in the
first quarter of 2023.
Curipamba Project: Adventus Mining
Corporation ("Adventus") announced an Investment Protection
Agreement commitment declaration by the Government of Ecuador indicating a significant milestone in
the development of the Curipamba Project. Adventus plans for a
formal construction commencement in the second quarter of 2023.
Portfolio Optimization
Keno Hill: On September 7, 2022, Hecla Mining Company ("Hecla")
completed the previously announced acquisition of all the
outstanding common shares of Alexco. In connection with this
acquisition, the Company entered into an agreement with
Hecla to terminate the Keno Hill
PMPA effective September 7, 2022, in
exchange for 34,800,989 common shares of Hecla valued at
$141 million (the "Hecla shares"[5]), resulting in an impairment
reversal of the Keno Hill PMPA in the amount of $10 million and a gain on disposal of
$104 million.
Yauliyacu: On August 18,
2022, the Company announced that it had entered into an
agreement with Glencore plc ("Glencore") to terminate its silver
stream on the Yauliyacu Mine in Peru for a cash payment of $150 million, less the aggregate value of any
deliveries to Wheaton, prior to closing, of silver produced
subsequent to December 31, 2021.
Wheaton has agreed to terminate the stream in order to help
facilitate the sale by Glencore of the Yauliyacu Mine. As at
September 30, 2022, the net
termination payment is estimated to be approximately $136 million. The closing of the transaction is
contingent on Glencore divesting the Yauliyacu mine by December 31, 2022 and certain other customary
conditions. Glencore retains the option to terminate the silver
stream even if it does not divest the Yauliyacu mine by
December 31, 2022.
Financial Review
Revenues
Revenue was $219 million in the third quarter of 2022
representing an 19% decrease from the third quarter of 2021 due
primarily to a 12% decrease in the average realized gold
equivalent² price; and a 7% decrease in the number of GEOs²
sold.
Revenue was $829 million in the
nine months ended September 30, 2022,
representing a 10% decrease from the comparable period of the
previous year due primarily to a 5% decrease in the number of gold
equivalent² ounces sold; and a 6% decrease in the average realized
gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in
the third quarter of 2022 were $439
per GEO² as compared to $417 in the
third quarter of 2021. This resulted in a cash operating
margin¹ of $1,137 per GEO² sold, a
decrease of 17% as compared with the third quarter of 2021.
Average cash costs¹ for the nine months ended September 30, 2022 were $433 per GEO² as compared to $441 in the comparable period of the previous
year. This resulted in a cash operating margin¹ of $1,311 per GEO² sold, a 7% decrease from the
comparable period of the previous year.
Balance Sheet (at September 30, 2022)
- Approximately $495 million of
cash on hand.
- During the third quarter of 2022, the Company made upfront cash
payments totaling $47 million
relative to PMPA's.
- The Company extended its existing undrawn $2 billion revolving term loan with its maturity
date now July 18, 2027. As part of
the extension, Wheaton added a sustainability-linked element which
may impact the interest rate paid on drawn amounts and standby
fees.
- The Company is well positioned to fund all outstanding
commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream
interests.
Sustainability
Community Investment Program:
- In the third quarter, Wheaton Precious Metals International
Ltd. ("Wheaton International") in partnership with
Sibanye-Stillwater Limited, donated funds to support flood relief
in the community of Nye, which is
the closest town to the Stillwater
mine in Montana. Funds were used
to clean up debris and support other flood-related recovery efforts
and to support families in financial need whose houses were
damaged.
- In the third quarter, new reading rooms were opened in the
state of Maranhāo, Brazil, as part
of the Routes and Literary Network project that is maintained by
the Vale Foundation in partnership with Wheaton International and
the Associação Cidade Escola Aprendiz. The new reading rooms
benefit 1,800 students from three different schools.
- On August 27th, the
Tour de Cure, presented by Wheaton Precious Metals, raised CA$6.3
million for the BC Cancer Foundation. The event is B.C.'s largest
cycling fundraiser attracting over 1,100 participants. Since 2014,
Wheaton has donated over CA$3.2 million towards crucial
advancements in cancer research and care. In addition, the Silver
Bullets, Wheaton's cycling team comprised of employees, friends and
family have collectively raised over CA$2 million through the Tour
de Cure.
Sustainability-Linked Revolving Credit Facility:
Wheaton has added a sustainability-linked element in connection
with the extension to its existing undrawn US$2 billion revolving credit facility,
underscoring Wheaton's commitment to sustainability initiatives.
Under the renewed revolving credit facility, the interest rate paid
on drawn amounts and standby fees will be adjusted based upon
Wheaton's performance in three sustainability-related areas
including climate change, diversity and overall sustainability
performance.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, November 4, 2022 starting at 8:00am PT / 11:00 am
ET to discuss these results. To participate in the live call
please use one of the following methods:
Dial toll free from Canada or
the US:
1-888-664-6383
Dial from outside Canada or the
US:
1-416-764-8650
Pass
code:
30587457
Live
webcast:
Webcast URL
The accompanying slideshow will also be available in PDF format
on the 'Events' page of the Wheaton Precious Metals
website before the conference call.
The conference call will be recorded and available until
November 11, 2022 at 11:59 pm ET. The webcast will be available for
one year. You can listen to an archive of the call by one of the
following methods:
Dial toll free from Canada or
the
US:
1-888-390-0541
Dial from outside Canada or the
US:
1-416-764-8677
Pass
code:
587457 #
Archived
webcast:
Webcast URL
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and
have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice
President, Mining Operations, Neil
Burns, P.Geo., Vice President, Technical Services for
Wheaton Precious Metals and Ryan
Ulansky, P.Eng., Vice President, Engineering, are a
"qualified person" as such term is defined under National
Instrument 43-101, and have reviewed and approved the technical
information disclosed in this news release (specifically Mr. Carson
has reviewed production figures, Mr. Burns has reviewed mineral
resource estimates and Mr. Ulansky has reviewed the mineral reserve
estimates).
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and
those required to be followed by United
States domestic issuers under the NYSE listing standards.
This confirmation is located on the Wheaton Precious Metals website
at
http://www.wheatonpm.com/Company/corporate-governance/default.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.
Wheaton's estimated attributable production for 2022 is forecast
to be 300,000 to 320,000 ounces of gold, 22.5 to 24.0 million
ounces of silver, and 35,000 to 40,000 gold equivalent
ounces2 ("GEOs"), resulting in production of
approximately 640,000 to 680,000 GEOs2. As a result of
the proposed termination of the Yauliyacu PMPA, the Company now
expects average annual production for the five-year period ending
December 31, 2026, to be
approximately 800,000 GEOs2,4 (from 820,000
GEOs2,4 previously) and for the ten-year
period ending December 31, 2031, to
be approximately 850,000 GEOs2,4
(from 870,000 GEOs2,4 previously).
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 November 3, 2022,
titled "Wheaton Precious Metals Declares Quarterly Dividend."
2 Company reports & S and P Capital IQ est. of
2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel
& silver mines. GEOs and SEOs, which are provided to assist the
reader, are based on the following commodity price assumptions:
$1800/oz, silver $24/oz, palladium $2,100/oz and cobalt
$33/lb.
3 Portfolio mine life based on recoverable
reserves and resources as of Dec 31, 2021 and 2021 actual mill
throughput and is weighted by individual reserve and resource
category.
4 Five- and ten-year guidance do not include
optionality production from Pascua Lama, Navidad, Cotabambas,
Metates or additional expansions at Salobo outside of the project
currently in construction. In addition, five-year guidance also
does not include any production from Kutcho, or the Victor project
at Sudbury.
5 The Hecla shares represent approximately 6% of
Hecla's current issued and outstanding shares and are subject to a
six month hold period from the closing date of September 7,
2022.
|
Condensed Interim Consolidated Statements of Earnings
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(US dollars and shares
in thousands, except per share amounts - unaudited)
|
|
2022
|
2021
|
2022
|
2021
|
Sales
|
|
$
|
218,836
|
$
|
268,957
|
$
|
829,002
|
$
|
923,468
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
Cost of sales,
excluding depletion
|
|
$
|
60,955
|
$
|
62,529
|
$
|
205,891
|
$
|
219,757
|
Depletion
|
|
|
55,728
|
|
54,976
|
|
178,812
|
|
195,458
|
Total cost of
sales
|
|
$
|
116,683
|
$
|
117,505
|
$
|
384,703
|
$
|
415,215
|
Gross margin
|
|
$
|
102,153
|
$
|
151,452
|
$
|
444,299
|
$
|
508,253
|
General and
administrative expenses
|
|
|
8,360
|
|
7,932
|
|
27,448
|
|
26,572
|
Share based
compensation
|
|
|
77
|
|
4,139
|
|
11,586
|
|
13,746
|
Donations and community
investments
|
|
|
1,406
|
|
1,524
|
|
3,379
|
|
3,712
|
Reversal of impairment
of mineral stream interests
|
|
(10,330)
|
|
-
|
|
(10,330)
|
|
-
|
Earnings from
operations
|
|
$
|
102,640
|
$
|
137,857
|
$
|
412,216
|
$
|
464,223
|
Gain on disposal of
mineral stream interest
|
|
|
(104,425)
|
|
-
|
|
(104,425)
|
|
-
|
Other (income)
expense
|
|
|
(2,799)
|
|
1,108
|
|
(3,448)
|
|
(2,194)
|
Earnings before finance
costs and income taxes
|
$
|
209,864
|
$
|
136,749
|
$
|
520,089
|
$
|
466,417
|
Finance
costs
|
|
|
1,398
|
|
1,379
|
|
4,209
|
|
4,309
|
Earnings before income
taxes
|
|
$
|
208,466
|
$
|
135,370
|
$
|
515,880
|
$
|
462,108
|
Income tax (expense)
recovery
|
|
|
(12,006)
|
|
(433)
|
|
(12,879)
|
|
955
|
Net earnings
|
|
$
|
196,460
|
$
|
134,937
|
$
|
503,001
|
$
|
463,063
|
Basic earnings per
share
|
|
$
|
0.435
|
$
|
0.300
|
$
|
1.114
|
$
|
1.029
|
Diluted earnings per
share
|
|
$
|
0.434
|
$
|
0.299
|
$
|
1.112
|
$
|
1.026
|
Weighted average number
of shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
451,757
|
|
450,326
|
|
451,402
|
|
449,977
|
Diluted
|
|
|
452,386
|
|
451,717
|
|
452,221
|
|
451,369
|
Condensed Interim Consolidated Balance Sheets
|
As at
September 30
|
As at
December 31
|
(US dollars in
thousands - unaudited)
|
2022
|
2021
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
494,618
|
$
|
226,045
|
Accounts
receivable
|
|
11,536
|
|
11,577
|
Other
|
|
14,764
|
|
12,102
|
Total current
assets
|
$
|
520,918
|
$
|
249,724
|
Non-current
assets
|
|
|
|
|
Mineral stream
interests
|
$
|
5,807,056
|
$
|
5,905,797
|
Early deposit mineral
stream interests
|
|
46,092
|
|
34,741
|
Mineral royalty
interest
|
|
6,606
|
|
6,606
|
Long-term equity
investments
|
|
190,472
|
|
61,477
|
Convertible notes
receivable
|
|
-
|
|
17,086
|
Property, plant and
equipment
|
|
4,505
|
|
5,509
|
Other
|
|
11,946
|
|
15,211
|
Total non-current
assets
|
$
|
6,066,677
|
$
|
6,046,427
|
Total assets
|
$
|
6,587,595
|
$
|
6,296,151
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
11,274
|
$
|
13,939
|
Current taxes
payable
|
|
6,163
|
|
132
|
Current portion of
performance share units
|
|
10,407
|
|
14,807
|
Current portion of
lease liabilities
|
|
803
|
|
813
|
Total current
liabilities
|
$
|
28,647
|
$
|
29,691
|
Non-current
liabilities
|
|
|
|
|
Performance share
units
|
|
3,661
|
|
11,498
|
Lease
liabilities
|
|
1,348
|
|
2,060
|
Deferred income
taxes
|
|
1,954
|
|
100
|
Pension
liability
|
|
3,173
|
|
2,685
|
Total non-current
liabilities
|
$
|
10,136
|
$
|
16,343
|
Total
liabilities
|
$
|
38,783
|
$
|
46,034
|
Shareholders'
equity
|
|
|
|
|
Issued
capital
|
$
|
3,741,211
|
$
|
3,698,998
|
Reserves
|
|
7,464
|
|
47,036
|
Retained
earnings
|
|
2,800,137
|
|
2,504,083
|
Total shareholders'
equity
|
$
|
6,548,812
|
$
|
6,250,117
|
Total liabilities and
shareholders' equity
|
$
|
6,587,595
|
$
|
6,296,151
|
Condensed Interim Consolidated Statements of Cash Flows
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(US dollars in
thousands - unaudited)
|
|
2022
|
2021
|
2022
|
2021
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
196,460
|
$
|
134,937
|
$
|
503,001
|
$
|
463,063
|
Adjustments
for
|
|
|
|
|
|
|
|
|
|
Depreciation and
depletion
|
|
|
56,129
|
|
55,445
|
|
180,004
|
|
196,869
|
Gain on disposal of
mineral stream interest
|
|
|
(104,425)
|
|
-
|
|
(104,425)
|
|
-
|
Reversal of impairment
of mineral stream interests
|
|
|
(10,330)
|
|
-
|
|
(10,330)
|
|
-
|
Interest
expense
|
|
|
22
|
|
30
|
|
72
|
|
324
|
Equity settled stock
based compensation
|
|
|
1,568
|
|
1,315
|
|
4,407
|
|
3,946
|
Performance share
units
|
|
|
(1,654)
|
|
2,824
|
|
(11,231)
|
|
(7,128)
|
Pension
expense
|
|
|
291
|
|
294
|
|
720
|
|
710
|
Income tax expense
(recovery)
|
|
|
12,006
|
|
433
|
|
12,879
|
|
(955)
|
Loss (gain) on fair
value adjustment of share purchase warrants held
|
|
|
204
|
|
1,246
|
|
1,101
|
|
2,392
|
Fair value (gain) loss
on convertible note receivable
|
|
|
-
|
|
490
|
|
1,380
|
|
(4,136)
|
Investment income
recognized in net earnings
|
|
|
(1,953)
|
|
(178)
|
|
(2,696)
|
|
(275)
|
Other
|
|
|
(349)
|
|
(9)
|
|
(1,821)
|
|
685
|
Change in non-cash
working capital
|
|
|
4,728
|
|
4,434
|
|
(3,825)
|
|
(5,341)
|
Cash generated from
operations before income taxes and interest
|
|
$
|
152,697
|
$
|
201,261
|
$
|
569,236
|
$
|
650,154
|
Income taxes recovered
(paid)
|
|
|
(29)
|
|
-
|
|
(141)
|
|
(51)
|
Interest
paid
|
|
|
(22)
|
|
(31)
|
|
(73)
|
|
(401)
|
Interest
received
|
|
|
1,851
|
|
57
|
|
2,374
|
|
154
|
Cash generated from
operating activities
|
|
$
|
154,497
|
$
|
201,287
|
$
|
571,396
|
$
|
649,856
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Bank debt
repaid
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(195,000)
|
Credit facility
extension fees
|
|
|
(1,205)
|
|
(54)
|
|
(1,207)
|
|
(1,727)
|
Share purchase options
exercised
|
|
|
-
|
|
183
|
|
7,549
|
|
5,719
|
Lease
payments
|
|
|
(201)
|
|
(196)
|
|
(603)
|
|
(583)
|
Dividends
paid
|
|
|
(59,487)
|
|
(57,235)
|
|
(176,604)
|
|
(160,784)
|
Cash (used for)
generated from financing activities
|
|
$
|
(60,893)
|
$
|
(57,302)
|
$
|
(170,865)
|
$
|
(352,375)
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Mineral stream
interests
|
|
$
|
(46,675)
|
$
|
(1,055)
|
$
|
(107,476)
|
$
|
(216,845)
|
Early deposit mineral
stream interests
|
|
|
(750)
|
|
(750)
|
|
(1,500)
|
|
(1,500)
|
Mineral royalty
interest
|
|
|
-
|
|
-
|
|
-
|
|
(3,571)
|
Closing costs on
disposal of mineral stream interests
|
|
|
(139)
|
|
-
|
|
(139)
|
|
-
|
Acquisition of
long-term investments
|
|
|
-
|
|
(5,076)
|
|
(22,768)
|
|
(7,453)
|
Proceeds on disposal of
long-term investments
|
|
|
-
|
|
-
|
|
-
|
|
112,188
|
Dividends
received
|
|
|
102
|
|
110
|
|
322
|
|
110
|
Other
|
|
|
(69)
|
|
(171)
|
|
(194)
|
|
(691)
|
Cash (used for)
generated from investing activities
|
|
$
|
(47,531)
|
$
|
(6,942)
|
$
|
(131,755)
|
$
|
(117,762)
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
$
|
(81)
|
$
|
(39)
|
$
|
(203)
|
$
|
48
|
Increase in cash and
cash equivalents
|
|
$
|
45,992
|
$
|
137,004
|
$
|
268,573
|
$
|
179,767
|
Cash and cash
equivalents, beginning of period
|
|
448,626
|
|
235,446
|
|
226,045
|
|
192,683
|
Cash and cash
equivalents, end of period
|
|
$
|
494,618
|
$
|
372,450
|
$
|
494,618
|
$
|
372,450
|
Summary of Units Produced
|
Q3 2022
|
Q2 2022
|
Q1 2022
|
Q4 2021
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Gold ounces produced
²
|
|
|
|
|
|
|
|
|
Salobo
|
44,212
|
34,129
|
44,883
|
48,235
|
55,205
|
55,590
|
46,622
|
62,854
|
Sudbury
3
|
4,735
|
5,289
|
5,362
|
4,379
|
148
|
4,563
|
7,004
|
6,659
|
Constancia
|
7,196
|
8,042
|
6,311
|
9,857
|
8,533
|
5,525
|
2,453
|
3,929
|
San Dimas
4
|
11,808
|
10,044
|
10,461
|
13,714
|
11,936
|
11,478
|
10,491
|
11,652
|
Stillwater
5
|
1,833
|
2,171
|
2,497
|
2,664
|
2,949
|
2,962
|
3,041
|
3,290
|
Other
|
|
|
|
|
|
|
|
|
Minto
|
3,182
|
2,480
|
4,060
|
3,506
|
1,703
|
3,206
|
2,638
|
789
|
777
6
|
-
|
3,509
|
4,003
|
4,462
|
4,717
|
5,035
|
6,280
|
2,866
|
Marmato
|
542
|
778
|
477
|
479
|
433
|
1,713
|
-
|
-
|
Total Other
|
3,724
|
6,767
|
8,540
|
8,447
|
6,853
|
9,954
|
8,918
|
3,655
|
Total gold ounces
produced
|
73,508
|
66,442
|
78,054
|
87,296
|
85,624
|
90,072
|
78,529
|
92,039
|
Silver ounces produced
2
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,017
|
2,089
|
2,219
|
2,145
|
2,180
|
2,026
|
2,202
|
2,014
|
Antamina
|
1,377
|
1,379
|
1,260
|
1,366
|
1,548
|
1,558
|
1,577
|
1,930
|
Constancia
|
564
|
584
|
506
|
578
|
521
|
468
|
406
|
478
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
7
|
23
|
23
|
42
|
37
|
17
|
26
|
31
|
6
|
Zinkgruvan
|
642
|
739
|
577
|
482
|
658
|
457
|
420
|
515
|
Yauliyacu
|
463
|
756
|
637
|
382
|
372
|
629
|
737
|
454
|
Stratoni
8
|
-
|
-
|
-
|
129
|
18
|
164
|
165
|
185
|
Minto
|
42
|
25
|
45
|
44
|
25
|
33
|
21
|
16
|
Neves-Corvo
|
323
|
345
|
344
|
522
|
362
|
408
|
345
|
420
|
Aljustrel
|
246
|
292
|
287
|
325
|
314
|
400
|
474
|
440
|
Cozamin
|
179
|
169
|
186
|
213
|
199
|
183
|
230
|
-
|
Marmato
|
7
|
8
|
11
|
7
|
10
|
39
|
-
|
-
|
Keno Hill
9
|
-
|
48
|
20
|
30
|
44
|
55
|
27
|
-
|
777
6
|
-
|
80
|
91
|
96
|
81
|
83
|
130
|
51
|
Total Other
|
1,925
|
2,485
|
2,240
|
2,267
|
2,100
|
2,477
|
2,580
|
2,087
|
Total silver ounces
produced
|
5,883
|
6,537
|
6,225
|
6,356
|
6,349
|
6,529
|
6,765
|
6,509
|
Palladium ounces
produced ²
|
|
|
|
|
|
|
|
|
Stillwater
5
|
3,229
|
3,899
|
4,488
|
4,733
|
5,105
|
5,301
|
5,769
|
5,672
|
Cobalt pounds produced
²
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
226
|
136
|
234
|
381
|
370
|
380
|
1,162
¹⁰
|
-
|
GEOs produced
11
|
159,852
|
160,646
|
170,590
|
184,551
|
183,012
|
190,272
|
196,756
|
185,436
|
SEOs produced
11
|
11,989
|
12,048
|
12,794
|
13,841
|
13,726
|
14,270
|
14,757
|
13,908
|
Average payable rate
2
|
|
|
|
|
|
|
|
|
Gold
|
95.1 %
|
95.1 %
|
95.2 %
|
96.0 %
|
96.0 %
|
95.8 %
|
95.0 %
|
95.2 %
|
Silver
|
86.1 %
|
85.5 %
|
86.1 %
|
86.0 %
|
86.6 %
|
86.9 %
|
86.6 %
|
86.3 %
|
Palladium
|
95.0 %
|
94.6 %
|
92.7 %
|
92.2 %
|
94.5 %
|
95.0 %
|
91.6 %
|
93.6 %
|
Cobalt
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
93.3 %
|
n.a.
|
GEO
11
|
90.6 %
|
90.1 %
|
90.5 %
|
91.4 %
|
91.3 %
|
91.8 %
|
90.7 %
|
91.2 %
|
1)
|
All figures in
thousands except gold and palladium ounces produced.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures and payable rates are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures and payable rates may be updated in
future periods as additional information is
received.
|
3)
|
Comprised of the
Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
Operations at the Sudbury mines were suspended from June 1, 2021 to
August 9, 2021 as a result of a labour disruption by unionized
employees.
|
4)
|
Under the terms of the
San Dimas PMPA, the Company is entitled to an amount equal to 25%
of the payable gold production plus an additional amount of gold
equal to 25% of the payable silver production converted to gold at
a fixed gold to silver exchange ratio of 70:1 from the San Dimas
mine. If the average gold to silver price ratio decreases to less
than 50:1 or increases to more than 90:1 for a period of 6 months
or more, then the "70" shall be revised to "50" or "90", as the
case may be, until such time as the average gold to silver price
ratio is between 50:1 to 90:1 for a period of 6 months or more in
which event the "70" shall be reinstated. Effective April 1, 2020,
the fixed gold to silver exchange ratio was revised to 90:1, with
the 70:1 ratio being reinstated on October 15, 2020. For reference,
attributable silver production from prior periods is as follows:
Q3-2022 - 412,000 ounces; Q2-2022 - 382,000 ounces; Q1-2022 -
408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces;
Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 -
485,000 ounces.
|
5)
|
Comprised of the
Stillwater and East Boulder gold and palladium
interests.
|
6)
|
Operations at 777 were
temporarily suspended from October 11, 2020 to November 25, 2020 as
a result of an incident that occurred on October 9th during routine
maintenance of the hoist rope and skip. On June 22, 2022, Hudbay
announced that mining activities at 777 have concluded and closure
activities have commenced.
|
7)
|
Operations at Los Filos
were suspended from September 3, 2020 to December 23, 2020 as the
result of an illegal road blockade by members of the nearby
Carrizalillo community and had been temporarily suspended from June
22, 2021 to July 26, 2021 as the result of illegal blockades by a
group of unionized employees and members of the Xochipala
community.
|
8)
|
The Stratoni mine was
placed into care and maintenance during Q4-2021.
|
9)
|
On September 7, 2022,
the Company terminated the Keno Hill stream in exchange for $141
million of Hecla common shares received as
consideration.
|
10)
|
Effective January 1,
2021, the Company was entitled to cobalt production from the
Voisey's Bay mine. As per the Voisey's Bay PMPA with Vale, Wheaton
is entitled to any cobalt processed at the Long Harbour Processing
Plant as of January 1, 2021, resulting in reported production in
the first quarter of 2021 including some material produced at the
Voisey's Bay mine in the previous quarter.
|
11)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for
2022.
|
Summary of Units Sold
|
Q3
2022
|
Q2
2022
|
Q1
2022
|
Q4
2021
|
Q3
2021
|
Q2
2021
|
Q1
2021
|
Q4
2020
|
Gold ounces
sold
|
|
|
|
|
|
|
|
|
Salobo
|
31,818
|
48,515
|
42,513
|
47,171
|
35,185
|
57,296
|
51,423
|
53,197
|
Sudbury
2
|
5,147
|
7,916
|
3,712
|
965
|
1,915
|
6,945
|
3,691
|
7,620
|
Constancia
|
6,336
|
7,431
|
10,494
|
6,196
|
8,159
|
2,321
|
1,676
|
3,853
|
San Dimas
|
10,196
|
10,633
|
10,070
|
15,182
|
11,346
|
11,214
|
10,273
|
11,529
|
Stillwater
3
|
2,127
|
2,626
|
2,628
|
2,933
|
2,820
|
2,574
|
3,074
|
3,069
|
Other
|
|
|
|
|
|
|
|
|
Minto
|
2,559
|
2,806
|
3,695
|
2,462
|
1,907
|
2,359
|
2,390
|
1,540
|
777
|
3,098
|
3,629
|
4,388
|
4,290
|
5,879
|
5,694
|
2,577
|
5,435
|
Marmato
|
719
|
781
|
401
|
423
|
438
|
1,687
|
-
|
-
|
Total Other
|
6,376
|
7,216
|
8,484
|
7,175
|
8,224
|
9,740
|
4,967
|
6,975
|
Total gold ounces
sold
|
62,000
|
84,337
|
77,901
|
79,622
|
67,649
|
90,090
|
75,104
|
86,243
|
Silver ounces
sold
|
|
|
|
|
|
|
|
|
Peñasquito
|
1,599
|
2,096
|
2,188
|
1,818
|
2,210
|
1,844
|
2,174
|
1,417
|
Antamina
|
1,155
|
1,177
|
1,468
|
1,297
|
1,502
|
1,499
|
1,930
|
1,669
|
Constancia
|
498
|
494
|
644
|
351
|
484
|
295
|
346
|
442
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
|
24
|
41
|
42
|
17
|
12
|
42
|
27
|
-
|
Zinkgruvan
|
376
|
650
|
355
|
346
|
354
|
355
|
293
|
326
|
Yauliyacu
|
1,005
|
817
|
44
|
551
|
182
|
601
|
1,014
|
15
|
Stratoni
|
-
|
(2)
|
133
|
42
|
41
|
167
|
117
|
169
|
Minto
|
22
|
21
|
31
|
27
|
24
|
29
|
26
|
20
|
Neves-Corvo
|
105
|
167
|
204
|
259
|
193
|
215
|
239
|
145
|
Aljustrel
|
185
|
123
|
145
|
133
|
155
|
208
|
257
|
280
|
Cozamin
|
154
|
148
|
177
|
174
|
170
|
168
|
173
|
-
|
Marmato
|
8
|
11
|
8
|
8
|
10
|
35
|
-
|
-
|
Keno Hill
|
30
|
30
|
27
|
24
|
51
|
33
|
12
|
-
|
777
|
73
|
75
|
87
|
69
|
99
|
109
|
49
|
93
|
Total Other
|
1,982
|
2,081
|
1,253
|
1,650
|
1,291
|
1,962
|
2,207
|
1,048
|
Total silver ounces
sold
|
5,234
|
5,848
|
5,553
|
5,116
|
5,487
|
5,600
|
6,657
|
4,576
|
Palladium ounces
sold
|
|
|
|
|
|
|
|
|
Stillwater
3
|
4,227
|
3,378
|
4,075
|
4,641
|
5,703
|
3,869
|
5,131
|
4,591
|
Cobalt pounds
sold
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
115
|
225
|
511
|
228
|
131
|
395
|
132
|
-
|
GEOs sold
4
|
138,824
|
170,371
|
166,065
|
157,439
|
149,862
|
176,502
|
172,271
|
152,613
|
SEOs sold
4
|
10,412
|
12,778
|
12,455
|
11,808
|
11,240
|
13,238
|
12,920
|
11,446
|
Cumulative payable
units PBND 5
|
|
|
|
|
|
|
|
|
Gold ounces
|
67,247
|
59,331
|
81,365
|
84,989
|
80,819
|
66,238
|
70,072
|
70,555
|
Silver
ounces
|
3,550
|
3,672
|
3,910
|
4,200
|
3,845
|
3,802
|
3,738
|
4,486
|
Palladium
ounces
|
5,041
|
6,267
|
5,535
|
5,629
|
5,619
|
6,822
|
5,373
|
5,597
|
Cobalt
pounds
|
402
|
280
|
550
|
596
|
637
|
777
|
820
|
-
|
GEO
4
|
127,840
|
120,735
|
150,032
|
158,477
|
150,317
|
139,145
|
141,206
|
136,894
|
SEO
4
|
9,588
|
9,055
|
11,252
|
11,886
|
11,274
|
10,436
|
10,590
|
10,267
|
Inventory on
hand
|
|
|
|
|
|
|
|
|
Cobalt
pounds
|
556
|
582
|
410
|
657
|
488
|
134
|
132
|
-
|
1)
|
All figures in
thousands except gold and palladium ounces sold.
|
2)
|
Comprised of the
Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests.
|
3)
|
Comprised of the
Stillwater and East Boulder gold and palladium
interests.
|
4)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
5)
|
Payable gold, silver
and palladium ounces as well as cobalt pounds produced but not yet
delivered ("PBND") are based on management estimates. These figures
may be updated in future periods as additional information is
received.
|
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended
September 30, 2022
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Impairment
Reversals /
Gain on
Disposal 4
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
44,212
|
31,818
|
$
|
1,724
|
$
|
416
|
$
|
334
|
$
|
54,860
|
$
|
-
|
$
|
31,000
|
$
|
41,617
|
$
|
2,396,952
|
Sudbury
5
|
4,735
|
5,147
|
|
1,745
|
|
400
|
|
1,092
|
|
8,984
|
|
-
|
|
1,303
|
|
5,943
|
|
288,863
|
Constancia
|
7,196
|
6,336
|
|
1,724
|
|
415
|
|
271
|
|
10,925
|
|
-
|
|
6,578
|
|
8,295
|
|
97,213
|
San Dimas
|
11,808
|
10,196
|
|
1,724
|
|
624
|
|
260
|
|
17,579
|
|
-
|
|
8,567
|
|
11,213
|
|
158,704
|
Stillwater
|
1,833
|
2,127
|
|
1,724
|
|
317
|
|
429
|
|
3,667
|
|
-
|
|
2,080
|
|
2,992
|
|
216,617
|
Other
6
|
3,724
|
6,376
|
|
1,743
|
|
694
|
|
59
|
|
11,113
|
|
-
|
|
6,311
|
|
5,562
|
|
461,359
|
|
73,508
|
62,000
|
$
|
1,728
|
$
|
474
|
$
|
353
|
$
|
107,128
|
$
|
-
|
$
|
55,839
|
$
|
75,622
|
$
|
3,619,708
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,017
|
1,599
|
$
|
19.30
|
$
|
4.36
|
$
|
3.57
|
$
|
30,857
|
$
|
-
|
$
|
18,182
|
$
|
23,885
|
$
|
301,040
|
Antamina
|
1,377
|
1,155
|
|
19.30
|
|
3.75
|
|
7.06
|
|
22,287
|
|
-
|
|
9,798
|
|
17,951
|
|
553,231
|
Constancia
|
564
|
498
|
|
19.30
|
|
6.12
|
|
6.35
|
|
9,613
|
|
-
|
|
3,398
|
|
6,563
|
|
195,507
|
Other
7
|
1,925
|
1,982
|
|
18.93
|
|
7.51
|
|
6.84
|
|
37,513
|
|
114,755
|
|
123,823
|
|
21,896
|
|
538,739
|
|
5,883
|
5,234
|
$
|
19.16
|
$
|
5.59
|
$
|
5.84
|
$
|
100,270
|
$
|
114,755
|
$
|
155,201
|
$
|
70,295
|
$
|
1,588,517
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
3,229
|
4,227
|
$
|
2,091
|
$
|
353
|
$
|
399
|
$
|
8,838
|
$
|
-
|
$
|
5,657
|
$
|
7,344
|
$
|
228,168
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9,425
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
226
|
115
|
$
|
22.68
|
$
|
7.21
|
$
|
13.63
|
$
|
2,600
|
$
|
-
|
$
|
211
|
$
|
7,352
|
$
|
361,238
|
Operating
results
|
|
|
|
|
|
|
|
$
|
218,836
|
$
|
114,755
|
$
|
216,908
|
$
|
160,613
|
$
|
5,807,056
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(8,360)
|
$
|
(5,503)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
(77)
|
|
-
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,406)
|
|
(1,413)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,398)
|
|
(1,020)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
2,799
|
|
1,849
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,006)
|
|
(29)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
|
|
$
|
(20,448)
|
$
|
(6,116)
|
$
|
780,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
196,460
|
$
|
154,497
|
$
|
6,587,595
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Relates to the
termination of the Keno Hill PMPA.
|
5)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests and the non-operating Stobie and Victor gold
interests.
|
6)
|
Comprised of the
operating Minto and Marmato gold interests as well as the
non-operating 777, Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and
Curipamba gold interests. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced.
|
7)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel,
Minto, Cozamin and Marmato silver interests, the non-operating 777,
Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex
(formerly referred to as Rosemont), Blackwater and Curipamba silver
interests and the previously owned Keno Hill silver interest. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On September
7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock.
|
On a gold equivalent and silver equivalent basis, results for the
Company for the three months ended September
30, 2022 were as follows:
Three Months Ended
September 30, 2022
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'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
|
159,852
|
138,824
|
$
1,576
|
$
439
|
$
1,137
|
$
401
|
$
736
|
Silver equivalent basis
5
|
11,989
|
10,412
|
$
21.02
|
$
5.85
|
$
15.17
|
$
5.35
|
$
9.82
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
|
|
Three Months Ended
September 30, 2021
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'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
|
55,205
|
35,185
|
$
|
1,795
|
$
|
412
|
$
|
374
|
$
|
63,154
|
$
|
35,504
|
$
|
50,404
|
$
|
2,455,567
|
Sudbury
4
|
148
|
1,915
|
|
1,794
|
|
400
|
|
1,024
|
|
3,436
|
|
708
|
|
2,242
|
|
308,158
|
Constancia
|
8,533
|
8,159
|
|
1,795
|
|
411
|
|
315
|
|
14,645
|
|
8,723
|
|
11,487
|
|
101,741
|
San Dimas
|
11,936
|
11,346
|
|
1,795
|
|
618
|
|
322
|
|
20,365
|
|
9,693
|
|
13,351
|
|
171,617
|
Stillwater
|
2,949
|
2,820
|
|
1,795
|
|
326
|
|
397
|
|
5,061
|
|
3,024
|
|
4,144
|
|
220,949
|
Other
5
|
6,853
|
8,224
|
|
1,794
|
|
590
|
|
38
|
|
14,755
|
|
9,586
|
|
9,887
|
|
64,985
|
|
85,624
|
67,649
|
$
|
1,795
|
$
|
464
|
$
|
337
|
$
|
121,416
|
$
|
67,238
|
$
|
91,515
|
$
|
3,323,017
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,180
|
2,210
|
$
|
24.09
|
$
|
4.29
|
$
|
3.55
|
$
|
53,259
|
$
|
35,932
|
$
|
43,776
|
$
|
328,470
|
Antamina
|
1,548
|
1,502
|
|
23.99
|
|
4.80
|
|
7.53
|
|
36,000
|
|
17,503
|
|
28,993
|
|
589,816
|
Constancia
|
521
|
484
|
|
24.09
|
|
6.05
|
|
7.56
|
|
11,668
|
|
5,076
|
|
9,033
|
|
208,537
|
Other
6
|
2,100
|
1,291
|
|
22.97
|
|
6.33
|
|
4.49
|
|
29,660
|
|
15,686
|
|
24,011
|
|
602,796
|
|
6,349
|
5,487
|
$
|
23.80
|
$
|
5.06
|
$
|
5.21
|
$
|
130,587
|
$
|
74,197
|
$
|
105,813
|
$
|
1,729,619
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
5,105
|
5,703
|
$
|
2,426
|
$
|
468
|
$
|
442
|
$
|
13,834
|
$
|
8,644
|
$
|
11,168
|
$
|
234,883
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
370
|
131
|
$
|
23.78
|
$
|
5.15
|
$
|
8.17
|
$
|
3,120
|
$
|
1,373
|
$
|
159
|
$
|
218,144
|
Operating
results
|
|
|
|
|
|
|
|
$
|
268,957
|
$
|
151,452
|
$
|
208,655
|
$
|
5,505,663
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(7,932)
|
$
|
(4,729)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(4,139)
|
|
-
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(1,524)
|
|
(1,671)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,379)
|
|
(1,039)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
(1,108)
|
|
71
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(433)
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(16,515)
|
$
|
(7,368)
|
$
|
541,077
|
|
|
|
|
|
|
|
|
|
|
|
$
|
134,937
|
$
|
201,287
|
$
|
6,046,740
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests as well as the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating Minto, 777 and Marmato gold interests as well as the
non-operating Copper World Complex gold interest (formerly referred
to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the
non-operating Loma de La Plata, Copper World Complex (formerly
referred to as Rosemont) and Pascua-Lama silver interests and the
previously owned Keno Hill silver interest. The Stratoni mine was
placed into care and maintenance during Q4-2021. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On September 7, 2022, the Keno
Hill stream was terminated in exchange for $141 million of Hecla
common stock.
|
On a gold equivalent and silver equivalent basis, results for the
Company for the three months ended September
30, 2021 were as follows:
Three Months Ended
September 30, 2021
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'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
|
183,012
|
149,862
|
$
1,795
|
$
417
|
$
1,378
|
$
367
|
$
1,011
|
Silver equivalent basis
5
|
13,726
|
11,240
|
$
23.93
|
$
5.56
|
$
18.37
|
$
4.89
|
$
13.48
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Nine Months Ended
September 30, 2022
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s
Per Unit)
|
Average
Cash Cost
($'s Per
Unit) 3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Impairment
Reversals /
Gain on
Disposal 4
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
123,224
|
122,846
|
$
|
1,834
|
$
|
416
|
$
|
334
|
$
|
225,267
|
$
|
-
|
$
|
133,146
|
$
|
174,134
|
$
|
2,396,952
|
Sudbury
5
|
15,386
|
16,775
|
|
1,828
|
|
400
|
|
1,091
|
|
30,673
|
|
-
|
|
5,657
|
|
22,980
|
|
288,863
|
Constancia
|
21,549
|
24,261
|
|
1,833
|
|
413
|
|
271
|
|
44,480
|
|
-
|
|
27,886
|
|
34,463
|
|
97,213
|
San Dimas
|
32,313
|
30,899
|
|
1,823
|
|
622
|
|
260
|
|
56,335
|
|
-
|
|
29,095
|
|
37,114
|
|
158,704
|
Stillwater
|
6,501
|
7,381
|
|
1,829
|
|
330
|
|
429
|
|
13,503
|
|
-
|
|
7,902
|
|
11,070
|
|
216,617
|
Other
6
|
19,031
|
22,076
|
|
1,829
|
|
734
|
|
45
|
|
40,388
|
|
-
|
|
23,183
|
|
22,912
|
|
461,359
|
|
218,004
|
224,238
|
$
|
1,831
|
$
|
471
|
$
|
348
|
$
|
410,646
|
$
|
-
|
$
|
226,869
|
$
|
302,673
|
$
|
3,619,708
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
6,325
|
5,883
|
$
|
22.21
|
$
|
4.36
|
$
|
3.57
|
$
|
130,686
|
$
|
-
|
$
|
84,058
|
$
|
105,036
|
$
|
301,040
|
Antamina
|
4,016
|
3,800
|
|
22.13
|
|
4.42
|
|
7.06
|
|
84,093
|
|
-
|
|
40,479
|
|
66,952
|
|
553,231
|
Constancia
|
1,654
|
1,636
|
|
22.15
|
|
6.09
|
|
6.34
|
|
36,227
|
|
-
|
|
15,883
|
|
26,260
|
|
195,507
|
Other
7
|
6,650
|
5,316
|
|
21.41
|
|
7.14
|
|
5.61
|
|
113,823
|
|
114,755
|
|
160,768
|
|
75,969
|
|
538,739
|
|
18,645
|
16,635
|
$
|
21.93
|
$
|
5.43
|
$
|
5.29
|
$
|
364,829
|
$
|
114,755
|
$
|
301,188
|
$
|
274,217
|
$
|
1,588,517
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
11,616
|
11,680
|
$
|
2,190
|
$
|
383
|
$
|
399
|
$
|
25,574
|
$
|
-
|
$
|
16,437
|
$
|
21,099
|
$
|
228,168
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9,425
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
596
|
851
|
$
|
32.85
|
$
|
6.24
|
$
|
9.49
|
$
|
27,953
|
$
|
-
|
$
|
14,560
|
$
|
24,683
|
$
|
361,238
|
Operating
results
|
|
|
|
|
|
|
|
$
|
829,002
|
$
|
114,755
|
$
|
559,054
|
$
|
622,672
|
$
|
5,807,056
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(27,448)
|
$
|
(28,933)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,586)
|
|
(18,161)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,379)
|
|
(2,976)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4,209)
|
|
(3,107)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
3,448
|
|
2,042
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(12,879)
|
|
(141)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
|
|
$
|
(56,053)
|
$
|
(51,276)
|
$
|
780,539
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
503,001
|
$
|
571,396
|
$
|
6,587,595
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Relates to the
termination of the Keno Hill PMPA.
|
5)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests and the non-operating Stobie and Victor gold
interests.
|
6)
|
Comprised of the
operating 777, Minto and Marmato gold interests as well as the
non-operating Copper World Complex (formerly referred to as
Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and
Curipamba gold interests. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced.
|
7)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel,
Minto, Cozamin, Marmato and 777 silver interests, the non-operating
Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex
(formerly referred to as Rosemont), Blackwater and Curipamba silver
interests and the previously owned Keno Hill silver interest. The
Stratoni mine was placed into care and maintenance during Q4-2021.
On June 22, 2022, Hudbay announced that mining activities at 777
have concluded and closure activities have commenced. On September
7, 2022, the Keno Hill stream was terminated in exchange for $141
million of Hecla common stock.
|
On a gold equivalent and silver equivalent basis, results for the
Company for the nine months ended September
30, 2022 were as follows:
Nine Months Ended
September 30, 2022
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'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
|
491,088
|
475,259
|
$
1,744
|
$
433
|
$
1,311
|
$
376
|
$
935
|
Silver equivalent basis
5
|
36,832
|
35,644
|
$
23.26
|
$
5.78
|
$
17.48
|
$
5.02
|
$
12.46
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Nine Months Ended
September 30, 2021
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'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
|
157,417
|
143,904
|
$
|
1,797
|
$
|
412
|
$
|
374
|
$
|
258,549
|
$
|
145,466
|
$
|
200,993
|
$
|
2,455,567
|
Sudbury
4
|
11,715
|
12,551
|
|
1,812
|
|
400
|
|
1,024
|
|
22,742
|
|
4,864
|
|
17,722
|
|
308,158
|
Constancia
|
16,511
|
12,156
|
|
1,796
|
|
410
|
|
315
|
|
21,829
|
|
13,018
|
|
17,040
|
|
101,741
|
San Dimas
|
33,905
|
32,833
|
|
1,796
|
|
616
|
|
322
|
|
58,981
|
|
28,170
|
|
38,755
|
|
171,617
|
Stillwater
|
8,952
|
8,468
|
|
1,796
|
|
327
|
|
397
|
|
15,212
|
|
9,083
|
|
12,444
|
|
220,949
|
Other
5
|
25,725
|
22,931
|
|
1,806
|
|
585
|
|
67
|
|
41,421
|
|
26,471
|
|
27,981
|
|
64,985
|
|
254,225
|
232,843
|
$
|
1,798
|
$
|
454
|
$
|
369
|
$
|
418,734
|
$
|
227,072
|
$
|
314,935
|
$
|
3,323,017
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
6,408
|
6,228
|
$
|
25.59
|
$
|
4.29
|
$
|
3.55
|
$
|
159,374
|
$
|
110,552
|
$
|
132,655
|
$
|
328,470
|
Antamina
|
4,683
|
4,931
|
|
25.66
|
|
5.12
|
|
7.53
|
|
126,484
|
|
64,106
|
|
100,597
|
|
589,816
|
Constancia
|
1,395
|
1,125
|
|
25.41
|
|
6.03
|
|
7.56
|
|
28,605
|
|
13,306
|
|
22,109
|
|
208,537
|
Other
6
|
7,157
|
5,460
|
|
25.54
|
|
8.31
|
|
5.48
|
|
139,461
|
|
64,166
|
|
97,241
|
|
602,796
|
|
19,643
|
17,744
|
$
|
25.58
|
$
|
5.87
|
$
|
5.50
|
$
|
453,924
|
$
|
252,130
|
$
|
352,602
|
$
|
1,729,619
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
16,175
|
14,703
|
$
|
2,512
|
$
|
463
|
$
|
442
|
$
|
36,932
|
$
|
23,622
|
$
|
30,128
|
$
|
234,883
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
1,912
|
658
|
$
|
21.09
|
$
|
4.67
|
$
|
8.17
|
$
|
13,878
|
$
|
5,429
|
$
|
1,244
|
$
|
218,144
|
Operating
results
|
|
|
|
|
|
|
|
$
|
923,468
|
$
|
508,253
|
$
|
698,909
|
$
|
5,505,663
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(26,572)
|
$
|
(25,898)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(13,746)
|
|
(16,926)
|
|
|
Donations and
community investments
|
|
|
|
|
|
|
|
|
|
|
(3,712)
|
|
(3,247)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(4,309)
|
|
(3,246)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
2,194
|
|
315
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
955
|
|
(51)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(45,190)
|
$
|
(49,053)
|
$
|
541,077
|
|
|
|
|
|
|
|
|
|
|
|
$
|
463,063
|
$
|
649,856
|
$
|
6,046,740
|
1)
|
Units of gold, silver
and palladium produced and sold are reported in ounces, while
cobalt is reported in pounds. All figures in thousands except gold
and palladium ounces produced and sold and per unit
amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests as well as the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating Minto, 777 and Marmato gold interests as well as the
non-operating Copper World Complex gold interest (formerly referred
to as Rosemont). On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the
non-operating Loma de La Plata, Copper World Complex (formerly
referred to as Rosemont) and Pascua-Lama silver interests and the
previously owned Keno Hill silver interest. The Stratoni mine was
placed into care and maintenance during Q4-2021. On June 22, 2022,
Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On September 7, 2022, the Keno
Hill stream was terminated in exchange for $141 million of Hecla
common stock.
|
On a gold equivalent and silver equivalent basis, results for the
Company for the nine months ended September
30, 2021 were as follows:
Nine Months Ended
September 30, 2021
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'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
|
570,040
|
498,635
|
$
1,852
|
$
441
|
$
1,411
|
$
392
|
$
1,019
|
Silver equivalent basis
5
|
42,753
|
37,398
|
$
24.69
|
$
5.88
|
$
18.81
|
$
5.23
|
$
13.58
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces produced
and sold in thousands.
|
3)
|
Refer to discussion on
non-IFRS measure (iii) at the end of this press release.
|
4)
|
Refer to discussion on
non-IFRS measure (iv) at the end of this press release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $24.00 per
ounce silver; $2,100 per ounce palladium; and $33.00 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2022.
|
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis; and
(iv) cash operating margin.
i.
|
Adjusted net earnings
and adjusted net earnings per share are calculated by removing the
effects of non-cash impairment charges (reversals) (if any),
non-cash fair value (gains) losses and other one-time (income)
expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery)
recognized in the Statements of Shareholders' Equity and OCI,
respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
|
|
|
|
The following table
provides a reconciliation of adjusted net earnings and adjusted net
earnings per share (basic and diluted).
|
|
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(in thousands, except
for per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net earnings
|
|
$
|
196,460
|
|
$
|
134,937
|
|
$
|
503,001
|
|
$
|
463,063
|
Add back
(deduct):
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment
reversal
|
|
|
(10,330)
|
|
|
-
|
|
|
(10,330)
|
|
|
-
|
Gain on disposal of
Mineral Stream Interest
|
|
|
(104,425)
|
|
|
-
|
|
|
(104,425)
|
|
|
-
|
(Gain) loss on fair
value adjustment of share purchase warrants held
|
|
|
204
|
|
|
1,246
|
|
|
1,101
|
|
|
2,392
|
(Gain) loss on fair
value adjustment of convertible notes receivable
|
|
|
-
|
|
|
490
|
|
|
1,380
|
|
|
(4,136)
|
Income tax (expense)
recovery recognized in the Statement of Shareholders'
Equity
|
|
|
3,644
|
|
|
(269)
|
|
|
4,143
|
|
|
837
|
Income tax (expense)
recovery recognized in the Statement of OCI
|
|
|
546
|
|
|
627
|
|
|
701
|
|
|
(1,989)
|
Income tax expense
resulting from PMPA disposition, net of above
|
|
|
7,779
|
|
|
-
|
|
|
7,779
|
|
|
-
|
Other
|
|
|
-
|
|
|
56
|
|
|
(2,182)
|
|
|
(319)
|
Adjusted net
earnings
|
|
$
|
93,878
|
|
$
|
137,087
|
|
$
|
401,168
|
|
$
|
459,848
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
|
451,757
|
|
|
450,326
|
|
|
451,402
|
|
|
449,977
|
Diluted weighted
average number of shares outstanding
|
|
|
452,386
|
|
|
451,717
|
|
|
452,221
|
|
|
451,369
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per
share - basic
|
|
$
|
0.208
|
|
$
|
0.304
|
|
$
|
0.889
|
|
$
|
1.022
|
Adjusted earnings per
share - diluted
|
|
$
|
0.208
|
|
$
|
0.303
|
|
$
|
0.887
|
|
$
|
1.019
|
ii.
|
Operating cash flow per
share (basic and diluted) is calculated by dividing cash generated
by operating activities by the weighted average number of shares
outstanding (basic and diluted). The Company presents operating
cash flow per share as management and certain investors use this
information to evaluate the Company's performance in comparison to
other companies in the precious metal mining industry who present
results on a similar basis.
|
|
|
|
The following table
provides a reconciliation of operating cash flow per share (basic
and diluted).
|
|
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(in thousands, except
for per share amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cash generated by
operating activities
|
|
$
|
154,497
|
|
$
|
201,287
|
|
$
|
571,396
|
|
$
|
649,856
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
|
451,757
|
|
|
450,326
|
|
|
451,402
|
|
|
449,977
|
Diluted weighted
average number of shares outstanding
|
|
|
452,386
|
|
|
451,717
|
|
|
452,221
|
|
|
451,369
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow
per share - basic
|
|
$
|
0.342
|
|
$
|
0.447
|
|
$
|
1.266
|
|
$
|
1.444
|
Operating cash flow
per share - diluted
|
|
$
|
0.342
|
|
$
|
0.446
|
|
$
|
1.264
|
|
$
|
1.440
|
iii.
|
Average cash cost of
gold, silver and palladium on a per ounce basis and cobalt on a per
pound basis is calculated by dividing the total cost of sales, less
depletion, by the ounces or pounds sold. In the precious metal
mining industry, this is a common performance measure but does not
have any standardized meaning prescribed by IFRS. In addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance and ability to generate cash flow.
|
|
|
|
The following table
provides a calculation of average cash cost of gold, silver and
palladium on a per ounce basis and cobalt on a per pound
basis.
|
|
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(in thousands, except
for gold and palladium ounces sold and per unit amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Cost of
sales
|
|
$
|
116,683
|
|
$
|
117,505
|
|
$
|
384,703
|
|
$
|
415,215
|
Less:
depletion
|
|
|
(55,728)
|
|
|
(54,976)
|
|
|
(178,812)
|
|
|
(195,458)
|
Cash cost of
sales
|
|
$
|
60,955
|
|
$
|
62,529
|
|
$
|
205,891
|
|
$
|
219,757
|
Cash cost of sales is
comprised of:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash cost of
gold sold
|
|
$
|
29,398
|
|
$
|
31,405
|
|
$
|
105,719
|
|
$
|
105,721
|
Total cash cost of
silver sold
|
|
|
29,238
|
|
|
27,782
|
|
|
90,384
|
|
|
104,159
|
Total cash cost of
palladium sold
|
|
|
1,493
|
|
|
2,667
|
|
|
4,475
|
|
|
6,804
|
Total cash cost of
cobalt sold
|
|
|
826
|
|
|
675
|
|
|
5,313
|
|
|
3,073
|
Total cash cost of
sales
|
|
$
|
60,955
|
|
$
|
62,529
|
|
$
|
205,891
|
|
$
|
219,757
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gold ounces
sold
|
|
|
62,000
|
|
|
67,649
|
|
|
224,238
|
|
|
232,843
|
Total silver ounces
sold
|
|
|
5,234
|
|
|
5,487
|
|
|
16,635
|
|
|
17,744
|
Total palladium ounces
sold
|
|
|
4,227
|
|
|
5,703
|
|
|
11,680
|
|
|
14,703
|
Total cobalt pounds
sold
|
|
|
115
|
|
|
131
|
|
|
851
|
|
|
658
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cash cost of
gold (per ounce)
|
|
$
|
474
|
|
$
|
464
|
|
$
|
471
|
|
$
|
454
|
Average cash cost of
silver (per ounce)
|
|
$
|
5.59
|
|
$
|
5.06
|
|
$
|
5.43
|
|
$
|
5.87
|
Average cash cost of
palladium (per ounce)
|
|
$
|
353
|
|
$
|
468
|
|
$
|
383
|
|
$
|
463
|
Average cash cost of
cobalt (per pound)
|
|
$
|
7.21
|
|
$
|
5.15
|
|
$
|
6.24
|
|
$
|
4.67
|
iv.
|
Cash operating margin
is calculated by subtracting the average cash cost of gold, silver
and palladium on a per ounce basis and cobalt on a per pound basis
from the average realized selling price of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis. The
Company presents cash operating margin as management and certain
investors use this information to evaluate the Company's
performance in comparison to other companies in the precious metal
mining industry who present results on a similar basis as well as
to evaluate the Company's ability to generate cash
flow.
|
|
|
|
The following table
provides a reconciliation of cash operating margin.
|
|
|
|
Three Months Ended
September 30
|
Nine Months Ended
September 30
|
(in thousands, except
for gold and palladium ounces sold and per unit amounts)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Total sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold
|
|
$
|
107,128
|
|
$
|
121,416
|
|
$
|
410,646
|
|
$
|
418,734
|
Silver
|
|
$
|
100,270
|
|
$
|
130,587
|
|
$
|
364,829
|
|
$
|
453,924
|
Palladium
|
|
$
|
8,838
|
|
$
|
13,834
|
|
$
|
25,574
|
|
$
|
36,932
|
Cobalt
|
|
$
|
2,600
|
|
$
|
3,120
|
|
$
|
27,953
|
|
$
|
13,878
|
Divided by:
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gold ounces
sold
|
|
|
62,000
|
|
|
67,649
|
|
|
224,238
|
|
|
232,843
|
Total silver ounces
sold
|
|
|
5,234
|
|
|
5,487
|
|
|
16,635
|
|
|
17,744
|
Total palladium ounces
sold
|
|
|
4,227
|
|
|
5,703
|
|
|
11,680
|
|
|
14,703
|
Total cobalt pounds
sold
|
|
|
115
|
|
|
131
|
|
|
851
|
|
|
658
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized price
of gold (per ounce)
|
|
$
|
1,728
|
|
$
|
1,795
|
|
$
|
1,831
|
|
$
|
1,798
|
Average realized price
of silver (per ounce)
|
|
$
|
19.16
|
|
$
|
23.80
|
|
$
|
21.93
|
|
$
|
25.58
|
Average realized price
of palladium (per ounce)
|
|
$
|
2,091
|
|
$
|
2,426
|
|
$
|
2,190
|
|
$
|
2,512
|
Average realized price
of cobalt (per pound)
|
|
$
|
22.68
|
|
$
|
23.78
|
|
$
|
32.85
|
|
$
|
21.09
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
Average cash cost of
gold 1 (per ounce)
|
|
$
|
(474)
|
|
$
|
(464)
|
|
$
|
(471)
|
|
$
|
(454)
|
Average cash cost of
silver 1 (per ounce)
|
|
$
|
(5.59)
|
|
$
|
(5.06)
|
|
$
|
(5.43)
|
|
$
|
(5.87)
|
Average cash cost of
palladium 1 (per ounce)
|
|
$
|
(353)
|
|
$
|
(468)
|
|
$
|
(383)
|
|
$
|
(463)
|
Average cash cost of
cobalt 1 (per pound)
|
|
$
|
(7.21)
|
|
$
|
(5.15)
|
|
$
|
(6.24)
|
|
$
|
(4.67)
|
Equals:
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash operating margin
per gold ounce sold
|
|
$
|
1,254
|
|
$
|
1,331
|
|
$
|
1,360
|
|
$
|
1,344
|
As a percentage of
realized price of gold
|
|
|
73 %
|
|
|
74 %
|
|
|
74 %
|
|
|
75 %
|
Cash operating margin
per silver ounce sold
|
|
$
|
13.57
|
|
$
|
18.74
|
|
$
|
16.50
|
|
$
|
19.71
|
As a percentage of
realized price of silver
|
|
|
71 %
|
|
|
79 %
|
|
|
75 %
|
|
|
77 %
|
Cash operating margin
per palladium ounce sold
|
|
$
|
1,738
|
|
$
|
1,958
|
|
$
|
1,807
|
|
$
|
2,049
|
As a percentage of
realized price of palladium
|
|
|
83 %
|
|
|
81 %
|
|
|
83 %
|
|
|
82 %
|
Cash operating margin
per cobalt pound sold
|
|
$
|
15.47
|
|
$
|
18.63
|
|
$
|
26.61
|
|
$
|
16.42
|
As a percentage of
realized price of cobalt
|
|
|
68 %
|
|
|
78 %
|
|
|
81 %
|
|
|
78 %
|
1) Please refer to
non-IFRS measure (iii), above.
|
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS
measures is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
termination of the Yauliyacu silver stream for $150 million, the value of silver produced and
delivered after January 1, 2022 and
the satisfaction of each party's obligations in accordance with
definitive documentation relating to the termination of the
Yauliyacu silver stream, the future price of commodities, the
estimation of future production from Mining Operations (including
in the estimation of production, mill throughput, grades,
recoveries and exploration potential), the estimation of mineral
reserves and mineral resources (including the estimation of reserve
conversion rates) and the realization of such estimations, the
commencement, timing and achievement of construction, expansion or
improvement projects by Wheaton's PMPA counterparties at mineral
stream interests owned by Wheaton (the "Mining Operations"), the
payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance
with PMPAs and royalty arrangements and the receipt by the Company
of precious metals and cobalt production in respect of the
applicable Mining Operations under PMPAs or other payments under
royalty arrangements, the ability of Wheaton's PMPA counterparties
to comply with the terms of a PMPA (including as a result of the
business, mining operations and performance of Wheaton's PMPA
counterparties) and the potential impacts of such on Wheaton,
future payments by the Company in accordance with PMPAs, the costs
of future production, the estimation of produced but not yet
delivered ounces, the impact of epidemics (including the COVID-19
virus pandemic), including the potential heightening of other
risks, future sales of common shares under the ATM program,
continued listing of the Company's common shares, any statements as
to future dividends, the ability to fund outstanding commitments
and the ability to continue to acquire accretive PMPAs, including
any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's
production mix, the ability of Wheaton's PMPA counterparties to
comply with the terms of any other obligations under agreements
with the Company, the ability to sell precious metals and cobalt
production, confidence in the Company's business structure, the
Company's assessment of taxes payable and the impact of the CRA
Settlement for years subsequent to 2010, possible domestic audits
for taxation years subsequent to 2016 and international audits, the
Company's assessment of the impact of any tax
reassessments, the Company's intention to file future tax
returns in a manner consistent with the CRA Settlement, the
Company's climate change and environmental commitments, and
assessments of the impact and resolution of various legal and tax
matters, including but not limited to audits. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "projects", "intends", "anticipates" or "does not
anticipate", or "believes", "potential", or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to risks relating to the termination of the
Yauliyacu silver stream and the satisfaction of each party's
obligations in accordance with the terms of the definitive
documentation relating to the termination of the Yauliyacu silver
stream, the satisfaction of each party's obligations in accordance
with the terms of the Company's PMPAs or royalty arrangements,
risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt
production at acceptable prices or at all), risks of significant
impacts on Wheaton or the Mining Operations as a result of an
epidemic (including the COVID-19 virus pandemic), risks related to
the Mining Operations (including fluctuations in the price of the
primary or other commodities mined at such operations, regulatory,
political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated
with the exploration, development, operating, expansion and
improvement of the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the absence of control over the
Mining Operations and having to rely on the accuracy of the public
disclosure and other information Wheaton receives from the Mining
Operations, uncertainty in the estimation of production from Mining
Operations, uncertainty in the accuracy of mineral reserve and
mineral resource estimation, the ability of each party to satisfy
their obligations in accordance with the terms of the PMPAs, the
estimation of future production from Mining Operations, Wheaton's
interpretation of, compliance with or application of, tax laws and
regulations or accounting policies and rules being found to be
incorrect, any challenge or reassessment by the CRA of the
Company's tax filings being successful and the potential negative
impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement (including whether there will be
any material change in the Company's facts or change in law or
jurisprudence), potential implementation of a 15% global minimum
tax, counterparty credit and liquidity, mine operator
concentration, indebtedness and guarantees, hedging, competition,
claims and legal proceedings against Wheaton or the Mining
Operations, security over underlying assets, governmental
regulations, international operations of Wheaton and the Mining
Operations, exploration, development, operations, expansions and
improvements at the Mining Operations, environmental regulations,
climate change, Wheaton and the Mining Operations ability to obtain
and maintain necessary licenses, permits, approvals and rulings,
Wheaton and the Mining Operations ability to comply with applicable
laws, regulations and permitting requirements, lack of suitable
supplies, infrastructure and employees to support the Mining
Operations, inability to replace and expand mineral reserves,
including anticipated timing of the commencement of production by
certain Mining Operations (including increases in production,
estimated grades and recoveries), uncertainties of title and
indigenous rights with respect to the Mining Operations,
environmental, social and governance matters, Wheaton and the
Mining Operations ability to obtain adequate financing, the Mining
Operations ability to complete permitting, construction,
development and expansion, global financial conditions, Wheaton's
acquisition strategy and other risks discussed in the section
entitled "Description of the Business – Risk Factors" in Wheaton's
Annual Information Form available on SEDAR at www.sedar.com,
Wheaton's Form 40-F for the year ended December 31, 2021 and Form 6-K filed March 31, 2022 both on file with the U.S.
Securities and Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management
currently believes to be reasonable, including (without
limitation): the receipt of $150
million from Glencore, the estimated value of silver to be
produced and delivered after January 1,
2022 and the satisfaction of each party's obligations in
accordance with the terms of the definitive documentation relating
to the termination of the Yauliyacu silver stream, that there will
be no material adverse change in the market price of commodities,
that the Mining Operations will continue to operate and the mining
projects will be completed in accordance with public
statements and achieve their stated production estimates, that
the mineral reserves and mineral resource estimates from Mining
Operations (including reserve conversion rates) are accurate, that
each party will satisfy their obligations in accordance with the
PMPAs, that Wheaton will continue to be able to fund or obtain
funding for outstanding commitments, that Wheaton will be able to
source and obtain accretive PMPAs, that neither Wheaton nor the
Mining Operations will suffer significant impacts as a result of an
epidemic (including the COVID-19 virus pandemic), that any outbreak
or threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there will be no material change in
the Company's facts or change in law or jurisprudence), and such
other assumptions and factors as set out in the Disclosure. There
can be no assurance that forward-looking statements will prove to
be accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward‑looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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SOURCE Wheaton Precious Metals Corp.