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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Wheaton Precious Metals Corp | LSE:0VOT | London | Ordinary Share | CA9628791027 | WHEATON PRECIOUS METALS ORD SHS |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 27.91 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMWPM
RNS Number : 8363V
Wheaton Precious Metals Corp.
12 August 2022
August 12, 2022
Vancouver, British Columbia
TSX | NYSE | LSE: WPM
Designated News Release
SECOND quarter 2022 financial results
Wheaton Precious Metals Announces Second Quarter Results for 2022
"Throughout the first half of 2022, we have focused on optimizing our portfolio and further enhancing our financial flexibility in order to ensure that we are well positioned to respond to accretive growth opportunities and continue creating value for our shareholders," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "While not without its challenges, our diverse portfolio once again delivered strong operating cash flow and an attractive dividend yield, highlighting the resiliency of the streaming model to the inflationary pressures currently being felt across the global economy. Furthermore, we are pleased with our continued progress and leadership on sustainability initiatives as highlighted in our third annual Sustainability Report."
Second Quarter 2022 Highlights:
-- Over $300 million in revenue and $206 million in operating cash flow, resulting in a cash balance of $449 million and no debt as at June 30, 2022.
-- $149 million in adjusted net earnings(1) .
-- Announced the proposed termination of the Keno Hill precious metal purchase agreement ("PMPA") for $135 million.
-- Subsequent to the quarter, Wheaton added a sustainability-linked element in connection with the extension to its existing undrawn US$2 billion revolving credit facility.
-- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights.
-- Declared quarterly dividend (1) of $0.15 per common share, consistent with the comparable period in 2021 .
Operational Overview
(all figures in US dollars unless otherwise noted) Q2 2022 Q2 2021 Change YTD 2022 YTD 2021 Change ------------------------------ ------- --------- ------- -------- ----------- ------- Units produced Gold ounces 68,365 90,072 (24.1)% 146,419 168,601 (13.2)% Silver ounces 6,537 6,529 0.1 % 12,770 13,294 (3.9)% Palladium ounces 3,899 5,301 (26.4)% 8,387 11,070 (24.2)% Cobalt pounds 136 380 (64.1)% 371 1,542 (76.0)% Gold equivalent ounces (2) 162,569 190,272 (14.6)% 333,265 387,028 (13.9)% Units sold Gold ounces 84,337 90,090 (6.4)% 162,238 165,194 (1.8)% Silver ounces 5,848 5,600 4.4 % 11,401 12,257 (7.0)% Palladium ounces 3,378 3,869 (12.7)% 7,453 9,000 (17.2)% Cobalt pounds 225 395 (43.0)% 736 527 39.7 % Gold equivalent ounces (2) 170,371 176,502 (3.5)% 336,436 348,773 (3.5)% ------------------------------- ------- --------- ------- -------- ----------- ------- Revenue $302,922 $ 330,393 (8.3)% $ 610,166 $ 654,512 (6.8)% Net earnings $149,074 $ 166,124 (10.3)% $ 306,542 $ 328,126 (6.6)% Per share $ 0.330 $ 0.369 (10.6)% $ 0.679 $ 0.729 (6.9)% Adjusted net earnings (1) $149,285 $ 161,626 (7.6)% $ 307,292 $ 322,760 (4.8)% Per share (1) $ 0.331 $ 0.359 (7.8)% $ 0.681 $ 0.718 (5.1)% Operating cash flows $206,359 $ 216,415 (4.6)% $ 416,899 $ 448,569 (7.1)% Per share (1) $ 0.457 $ 0.481 (5.0)% $ 0.924 $ 0.997 (7.3)% ------------------------------- ------- --------- ------- -------- ----------- -------
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts. [1] [2]
Revised Annual and Long-Term Production Guidance
Given the proposed termination of the Keno Hill PMPA, lower production from Stillwater due to severe weather and flooding in the state of Montana in June as well as lower than expected production at Salobo, Wheaton is lowering production guidance. Wheaton's estimated attributable production for 2022 is now forecast to be approximately 640,000 to 680,000 gold equivalent ounces (2) ("GEOs"). For the five-year period ending December 31, 2026, average annual production is expected to increase to 820,000 GEO's (2) , primarily due to anticipated continued production growth from Salobo, Stillwater, Constancia, and Voisey's Bay as well as incremental production ounces from Marmato, Blackwater, Toroparu, Marathon, the Copper World Complex (formerly referred to as Rosemont) and Santo Domingo towards the latter end of the forecast period. Average forecast production for the ten-year period ending December 31, 2031, is expected to now be 870,000 GEO's (2) and includes incremental production from the Kutcho project and the Victor mine in Sudbury. Vale S.A. has indicated the potential for an additional expansion after the completion of the current Salobo III expansion, but Wheaton does not currently include this in its forecast.
2022 Production Guidance Forecast
Original Guidance Updated Guidance Gold Ounces 350,000 to 380,000 300,000 to 320,000 ------------------- ------------------- Silver Ounces ('000s) 23,000 to 24,500 22,500 to 24,000 ------------------- ------------------- Other Metals (2) (GEOs) 44,000 to 48,000 35,000 to 40,000 ------------------- ------------------- Total GEOs (2) 700,000 to 760,000 640,000 to 680,000 ------------------- ------------------- Long-Term Forecast ------------------- ------------------- 5-Year Annual Average (GEOs) (2) 850,000 820,000 ------------------- ------------------- 10-Year Annual Average (GEOs) (2) 910,000 870,000 ------------------- -------------------
Financial Review
Revenues
Revenue was $303 million in the second quarter of 2022 representing an 8% decrease from the second quarter of 2021 due primarily to a 5% decrease in the average realized gold equivalent(2) price; and a 3% decrease in the number of GEOs(2) sold.
Revenue was $610 million in the six months ended June 30, 2022, representing a 7% decrease from the comparable period of the previous year due primarily to a 4% decrease in the number of gold equivalent(2) ounces sold; and a 3% decrease in the average realized gold equivalent(2) price.
Cash Costs and Margin
Average cash costs(1) in the second quarter of 2022 were $440 per GEO(2) as compared to $444 in the second quarter of 2021. This resulted in a cash operating margin(1) of $1,338 per GEO(2) sold, a decrease of 6% as compared with the second quarter of 2021.
Average cash costs(1) for the six months ended June 30, 2022 were $431 per GEO(2) as compared to $451 in the comparable period of the previous year. This resulted in a cash operating margin(1) of $1,383 per GEO(2) sold, a decrease of 3% as compared with the comparable period of the previous year.
Balance Sheet (at June 30, 2022 )
-- Approximately $449 million of cash on hand.
-- Subsequent to the quarter, the Company extended its existing undrawn $2 billion revolving term loan (the "Revolving Facility") with its maturity date now July 18, 2027 . As part of the extension, Wheaton added a sustainability-linked element which impacts the interest rate paid on drawn amounts and standby fees.
-- The Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.
Second Quarter Asset Highlights
Salobo: In the second quarter of 2022, Salobo produced 34,100 ounces of attributable gold, a decrease of approximately 39% relative to the second quarter of 2021, primarily due to lower throughput and grades. According to Vale S.A.'s Production and Sales 2Q22 report ("Vale"), mine movement saw continued improvement throughout the quarter, but concentrate production was negatively impacted by plant performance due to delays in ramp-up after planned and corrective maintenance. Vale expects further maintenance work to continue in the second half of 2022.
As per Vale's Second Quarter 2022 Performance Report, Vale outlines the Salobo lll Project progress including the start of commissioning activities at the primary crushing and stockpile areas. In addition, Vale notes that the remediation work for the January 2022 landslide has been completed. Vale reports that physical completion of the Salobo III mine expansion was 95% at the end of the second quarter.
Antamina: In the second quarter of 2022, Antamina produced 1.4 million ounces of attributable silver, a decrease of approximately 11% relative to the second quarter of 2021, primarily due to lower grades as per the mine plan .
Constancia: In the second quarter of 2022, Constancia produced 600,000 ounces of attributable silver and 8,000 ounces of attributable gold, an increase of approximately 25% and 46%, respectively, relative to the second quarter of 2021, with the increases being primarily due to the mining of higher-grade material associated with the Pampacancha deposit.
Sudbury: In the second quarter of 2022, Vale's Sudbury mines produced 7,200 ounces of attributable gold, an increase of approximately 58% relative to the second quarter of 2021, primarily due to higher throughput as during 2021, operations at the mine were suspended due to a labour dispute which lasted from June 1to August 9, 2021.
Stillwater: In the second quarter of 2022, the Stillwater mines produced 2,200 ounces of attributable gold and 3,900 ounces of attributable palladium, a decrease of approximately 27% for gold and 26% for palladium relative to the second quarter of 2021. As per Sibanye-Stillwater Limited's news release dated August 11, 2022, regional floods impacted the Stillwater operations on June 13, 2022, including damage to bridges and the access road to the Stillwater mine. Operations at the Stillwater mine, which accounts for 60% of the mined production from the Stillwater operations, were suspended for seven weeks, but resumed on July 29, 2022. Access to the East Boulder mine and the Columbus metallurgical facilities remains intact and both facilities continued operating during the flooding events.
San Dimas: In the second quarter of 2022, San Dimas produced 10,000 ounces of attributable gold, a decrease of approximately 12% relative to the second quarter of 2021 , primarily the result of mining lower grade material . According to First Majestic Silver Corp.'s ("First Majestic") Q2 production report, underground development for stope preparation and ventilation within the Perez vein is progressing and forecast to be ready for initial production in August. Furthermore, First Majestic reports that improving dilution controls at San Dimas and prioritizing long-hole stoping of the Jessica and Regina veins is anticipated to improve ore grade and overall production in the second half of 2022.
Other Gold: In the second quarter of 2022, total Other Gold attributable production was 6,800 ounces, a decrease of approximately 32% relative to the second quarter of 2021, primarily due to the lower throughput and grades at 777, which closed as of June 2022.
Voisey's Bay: In the second quarter of 2022, the Voisey's Bay mine produced 136,000pounds of attributable cobalt, a decrease of approximately 64% relative to the second quarter of 2021, primarily due to lower throughput resulting from a scheduled maintenance shut down coupled with lower grades during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay underground project. As per Vale's Second Quarter 2022 Performance Report, physical completion of the Voisey's Bay underground mine extension was 74% at the end of the second quarter. Civil works continue for the balance of facilities, with civil completion planned by the end of 2022.
Development Assets
Copper World Complex (formerly referred to as Rosemont): On June 8, 2022, Hudbay Minerals Inc. ("Hudbay") announced the results of the preliminary economic assessment ("PEA") of its 100%-owned Copper World Complex in Arizona, which includes the recently discovered Copper World deposits along with the Rosemont deposit. The PEA highlights a two-phase mine plan, with Phase I reflecting a standalone operation on private land and patented mining claims over a 16-year mine life. Phase II expands mining activities onto federal land and extends the mine life to 44 years. In addition, Hudbay is evaluating several opportunities to optimize the project, including the potential to expand Phase I beyond 16 years with additions to the company's private land package for tailings and waste rock storage and the potential to accelerate Phase II if federal permits are received earlier than as outlined in the PEA. As per the PEA, Hudbay anticipates the Phase 1 feasibility study and permits should be completed by the end of 2023, with a sanctioning decision by Hudbay in 2024, and construction expected to take three years.
Fenix: On June 28, 2022, Rio2 Limited ("Rio2") provided an update on the Fenix Gold environmental assessment process. The Environmental Assessment Service ("SEA") published the Consolidation Evaluation Report with the recommendation to reject the Environmental Impact Assessment ("EIA") as it has been alleged that Fenix Gold has not provided enough information during the evaluation process to eliminate adverse impacts over the chinchilla, guanaco, and vicuña. On July 5, 2022, Rio2 announced that the Regional Evaluation Commission has voted for not approving the EIA for its Fenix Gold project in Chile. Following this decision, Rio2 provided a further update on July 11, 2022, stating that Rio2 along with its Chilean environmental and legal advisor, are currently evaluating options to continue to advance the project.
Portfolio Optimization
Keno Hill: On July 5, 2022, Hecla Mining Company ("Hecla") announced a definitive agreement for Hecla to acquire all of the outstanding common shares of Alexco Resource Corp. ("Alexco"). In conjunction with this agreement, the Company has entered into an agreement with Hecla to terminate the Keno Hill PMPA in exchange for $135 million of Hecla common stock, conditional upon the completion of Hecla's acquisition of Alexco and other customary approvals.
Produced But Not Yet Delivered [3] and Inventory
As at June 30, 2022 , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:
-- 61,200 payable gold ounces, a decrease of 20,200 ounces during Q2 2022 , primarily due to decreases at the Salobo and Sudbury mines.
-- 3.7 million payable silver ounces, a decrease of 0.2 million ounces during Q2 2022 primarily due to decreases at the Peñasquito and Yauliyacu mines .
-- 6,300 payable palladium ounces, an increase of 700 ounces during Q2 2022. -- 280,000 payable cobalt pounds, a decrease of 270 thousand pounds during Q2 2022.
As of June 30, 2022, approximately 582,000 pounds of cobalt were held in inventory by Wheaton, an increase of 172,000 pounds during Q2 2022.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton's consolidated MD&A in the 'Results of Operations and Operational Review' section.
Sustainability
Recognized as One of the Best 50 Corporate Citizens in Canada: Wheaton was named to the Corporate Knights' 2022 list of the Best 50 Corporate Citizens in Canada . Corporate Knights has been producing global corporate and fund rankings for 20 years. Wheaton was selected from a pool of 332 Canadian companies - each evaluated on a set of 24 environmental, social and governance indicators, relative to their industry peers and using publicly available information. The Best 50 Corporate Citizens sets the standard for sustainability leadership in Canada.
Sustainability-Linked Revolving Credit Facility: Wheaton has added a sustainability-linked element in connection with the extension to its existing undrawn US$2 billion revolving credit facility, underscoring Wheaton's commitment to sustainability initiatives. Under the renewed revolving credit facility, the interest rate paid on drawn amounts and standby fees will be adjusted based upon Wheaton's performance in three sustainability-related areas including climate change, diversity and overall sustainability performance.
Published third Annual Sustainability Report : On May 24, 2022, Wheaton published its third annual Sustainability Report. Highlights of the report include establishment of a formal ESG strategy with targets and commitments across several material ESG topics and significant enhancement of disclosure around climate change (including inaugural reporting of our Scope 3 financed emissions associated with our Mining Partners).
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, August 12, 2022 starting at 8:00am PT / 11:00 am ET to discuss these results. To participate in the live call please use one of the following methods:
Dial toll free from Canada or the US: 1-888-664-6383 Dial from outside Canada or the US: 1-416-764-8650 Pass code: 06939369 Live webcast: Webcast URL
The accompanying slideshow will also be available in PDF format on the 'Events' page of the Wheaton Precious Metals website before the conference call.
The conference call will be recorded and available until August 19, 2022 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-390-0541 Dial from outside Canada or the US: 1-416-764-8677 Pass code: 939369 # Archived webcast: Webcast URL
This earnings release should be read in conjunction with Wheaton Precious Metals' MD&A and Financial Statements, which are available on the Company's website at www.wheatonpm.com and have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations is a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release.
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx .
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.
In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and financial statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Six Months Ended June 30 June 30 (US dollars and shares in thousands, except per share amounts - unaudited) 2022 2021 2022 2021 -------------------------------------------------- ------------ ------------ ----------------- ----- Sales $ 302,922 $ 330,393 $ 610,166 $ 654,512 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Cost of sales Cost of sales, excluding depletion $ 74,943 $ 78,445 $ 144,936 $ 157,228 Depletion 65,682 70,308 123,084 140,482 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Total cost of sales $ 140,625 $ 148,753 $ 268,020 $ 297,710 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Gross margin $ 162,297 $ 181,640 $ 342,146 $ 356,802 General and administrative expenses 9,685 8,904 19,089 18,639 Share based compensation 1,608 7,978 11,509 9,608 Donations and community investments 1,160 1,583 1,973 2,188 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Earnings from operations $ 149,844 $ 163,175 $ 309,575 $ 326,367 Other (income) expense (820) (3,420) (650) (3,301) -------------------------------------------------- -------- -------- --- ------------ ----- -------- Earnings before finance costs and income taxes $ 150,664 $ 166,595 $ 310,225 $ 329,668 Finance costs 1,389 1,357 2,811 2,930 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Earnings before income taxes $ 149,275 $ 165,238 $ 307,414 $ 326,738 Income tax (expense) recovery (201) 886 (872) 1,388 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Net earnings $ 149,074 $ 166,124 $ 306,542 $ 328,126 -------------------------------------------------- -------- -------- --- ------------ ----- -------- Basic earnings per share $ 0.330 $ 0.369 $ 0.679 $ 0.729 Diluted earnings per share $ 0.330 $ 0.368 $ 0.678 $ 0.728 Weighted average number of shares outstanding Basic 451,524 450,088 451,221 449,800 Diluted 452,359 451,203 452,123 450,869 ================================================== ======== ======== === ============ ===== ========
Condensed Interim Consolidated Balance Sheets
As at As at June 30 December 31 (US dollars in thousands - unaudited) 2022 2021 ------------------------------------------------- --------------- --------------- Assets Current assets Cash and cash equivalents $ 448,626 $ 226,045 Accounts receivable 13,550 11,577 Other 16,160 12,102 ------------------------------------------------------ ---------- --- ---------- Total current assets $ 478,336 $ 249,724 ------------------------------------------------- --- ---------- --- ---------- Non-current assets Mineral stream interests $ 5,841,478 $ 5,905,797 Early deposit mineral stream interests 45,342 34,741 Mineral royalty interest 6,606 6,606 Long-term equity investments 60,799 61,477 Convertible notes receivable - 17,086 Property, plant and equipment 4,814 5,509 Other 11,320 15,211 ------------------------------------------------------ ---------- --- ---------- Total non-current assets $ 5,970,359 $ 6,046,427 ------------------------------------------------- --- ---------- --- ---------- Total assets $ 6,448,695 $ 6,296,151 ------------------------------------------------- --- ---------- --- ---------- Liabilities Current liabilities Accounts payable and accrued liabilities $ 9,546 $ 13,935 Current portion of performance share units 11,989 14,807 Current portion of lease liabilities 824 813 Other 97 136 Total current liabilities $ 22,456 $ 29,691 ------------------------------------------------- --- ---------- --- ---------- Non-current liabilities Lease liabilities 1,619 2,060 Deferred income taxes 236 100 Performance share units 4,517 11,498 Pension liability 3,066 2,685 ------------------------------------------------------ ---------- --- ---------- Total non-current liabilities $ 9,438 $ 16,343 ------------------------------------------------- --- ---------- --- ---------- Total liabilities $ 31,894 $ 46,034 ------------------------------------------------- --- ---------- --- ---------- Shareholders' equity Issued capital $ 3,729,300 $ 3,698,998 Reserves 12,273 47,036 Retained earnings 2,675,228 2,504,083 ------------------------------------------------------ ---------- --- ---------- Total shareholders' equity $ 6,416,801 $ 6,250,117 ------------------------------------------------- --- ---------- --- ---------- Total liabilities and shareholders' equity $ 6,448,695 $ 6,296,151 ------------------------------------------------- --- ---------- --- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended June 30 June 30 (US dollars in thousands - unaudited) 2022 2021 2022 2021 ------------------------------------------------------------ ---------- ---------- ---------- ---------- Operating activities Net earnings $ 149,074 $ 166,124 $ 306,542 $ 328,126 Adjustments for Depreciation and depletion 66,080 70,775 123,875 141,424 Interest expense 24 32 50 294 Equity settled stock based compensation 1,498 1,307 2,839 2,632 Performance share units (18,137) (10,258) (9,577) (9,952) Pension expense 271 265 429 416 Income tax expense (recovery) 201 (886) 872 (1,388)
Loss (gain) on fair value adjustment of share purchase warrants held 154 194 897 1,145 Fair value (gain) loss on convertible note receivable - (3,388) 1,380 (4,626) Investment income recognized in net earnings (549) (95) (743) (97) Other 42 103 (1,472) 694 Change in non-cash working capital 7,365 (7,803) (8,553) (9,775) ============================================================ ========= ========= ========= ========= Cash generated from operations before income taxes and interest $ 206,023 $ 216,370 $ 416,539 $ 448,893 Income taxes recovered (paid) (80) (21) (112) (51) Interest paid (25) (29) (51) (370) Interest received 441 95 523 97 ============================================================ ========= ========= ========= ========= Cash generated from operating activities $ 206,359 $ 216,415 $ 416,899 $ 448,569 ============================================================ ========= ========= ========= ========= Financing activities Bank debt repaid $ - $ - $ - $(195,000) Credit facility extension fees (2) (1,673) (2) (1,673) Share purchase options exercised 1,777 743 7,549 5,536 Lease payments (202) (173) (402) (387) Dividends paid (117,117) (103,549) (117,117) (103,549) ============================================================ ========= ========= ========= ========= Cash (used for) generated from financing activities $(115,544) $(104,652) $(109,972) $(295,073) ============================================================ ========= ========= ========= ========= Investing activities Mineral stream interests $ (15,549) $ (64,771) $ (60,801) $(215,790) Early deposit mineral stream interests - - (750) (750) Mineral royalty interest - (10) - (3,571) Acquisition of long-term investments (2,633) (2,377) (22,768) (2,377) Proceeds on disposal of long-term investments - - - 112,188 Dividends received 108 - 220 - Other (89) (386) (125) (520) ============================================================ ========= ========= ========= ========= Cash (used for) generated from investing activities $ (18,163) $ (67,544) $ (84,224) $(110,820) ============================================================ ========= ========= ========= ========= Effect of exchange rate changes on cash and cash equivalents $ (189) $ 65 $ (122) $ 87 ============================================================ ========= ========= ========= ========= Increase in cash and cash equivalents $ 72,463 $ 44,284 $ 222,581 $ 42,763 Cash and cash equivalents, beginning of period 376,163 191,162 226,045 192,683 ============================================================ ========= ========= ========= ========= Cash and cash equivalents, end of period $ 448,626 $ 235,446 $ 448,626 $ 235,446 ------------------------------------------------------------ --------- --------- --------- ---------
Summary of Units Produced
Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Gold ounces produced (2) Salobo 34,129 44,883 48,235 55,205 55,590 46,622 62,854 63,408 Sudbury (3) 7,212 5,362 4,379 148 4,563 7,004 6,659 3,798 Constancia 8,042 6,311 9,857 8,533 5,525 2,453 3,929 3,780 San Dimas (4) 10,044 10,461 13,714 11,936 11,478 10,491 11,652 9,228 Stillwater (5) 2,171 2,497 2,664 2,949 2,962 3,041 3,290 3,176 Other Minto 2,480 4,060 3,506 1,703 3,206 2,638 789 1,832 777 (6) 3,509 4,003 4,462 4,717 5,035 6,280 2,866 5,278 Marmato 778 477 479 433 1,713 - - - ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total Other 6,767 8,540 8,447 6,853 9,954 8,918 3,655 7,110 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total gold ounces produced 68,365 78,054 87,296 85,624 90,072 78,529 92,039 90,500 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Silver ounces produced (2) Peñasquito 2,089 2,219 2,145 2,180 2,026 2,202 2,014 1,992 Antamina 1,379 1,268 1,366 1,548 1,558 1,577 1,930 1,516 Constancia 584 506 578 521 468 406 478 430 Other Los Filos (7) 23 42 37 17 26 31 6 17 Zinkgruvan 739 577 482 658 457 420 515 498 Yauliyacu 756 637 382 372 629 737 454 679 Stratoni (8) - - 129 18 164 165 185 156 Minto 25 45 44 25 33 21 16 15 Neves-Corvo 345 344 522 362 408 345 420 281 Aljustrel 292 287 325 314 400 474 440 348 Cozamin 169 186 213 199 183 230 - - Marmato 8 11 7 10 39 - - - Keno Hill (9) 48 20 30 44 55 27 - - 777 (6) 80 91 96 81 83 130 51 96 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- -----------------
Total Other 2,485 2,240 2,267 2,100 2,477 2,580 2,087 2,090 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total silver ounces produced 6,537 6,233 6,356 6,349 6,529 6,765 6,509 6,028 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Palladium ounces produced (2) Stillwater (5) 3,899 4,488 4,733 5,105 5,301 5,769 5,672 5,444 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Cobalt pounds produced (2) Voisey's Bay 136 234 381 370 380 1,162 (1) - - ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- GEOs produced (11) 162,569 170,696 184,551 183,012 190,272 196,756 185,436 177,230 SEOs produced (11) 12,193 12,802 13,841 13,726 14,270 14,757 13,908 13,292 ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Average payable rate (2) Gold 95.1% 95.2% 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% Silver 85.5% 86.2% 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% Palladium 94.6% 92.7% 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% n.a. n.a. GEO (11) 90.2% 90.5% 91.4% 91.3% 91.8% 90.7% 91.2% 91.2% ------------------ --------------------- --------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- 1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees.
4) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q2-2022 - 382,000 ounces; Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) Operations at 777 were temporarily suspended from October 11, 2020 to November 25, 2020 as a result of an incident that occurred on October 9th during routine maintenance of the hoist rope and skip. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
7) Operations at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community and had been temporarily suspended from June 22, 2021 to July 26, 2021 as the result of illegal blockades by a group of unionized employees and members of the Xochipala community.
8) The Stratoni mine was placed into care and maintenance during Q4-2021.
9) On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill.
10) Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey's Bay mine. As per the Voisey's Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay mine in the previous quarter.
11) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Summary of Units Sold
Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Gold ounces sold Salobo 48,515 42,513 47,171 35,185 57,296 51,423 53,197 59,584 Sudbury (2) 7,916 3,712 965 1,915 6,945 3,691 7,620 7,858 Constancia 7,431 10,494 6,196 8,159 2,321 1,676 3,853 4,112 San Dimas 10,633 10,070 15,182 11,346 11,214 10,273 11,529 9,687 Stillwater (3) 2,626 2,628 2,933 2,820 2,574 3,074 3,069 3,015 Other Minto 2,806 3,695 2,462 1,907 2,359 2,390 1,540 - 777 3,629 4,388 4,290 5,879 5,694 2,577 5,435 5,845 Marmato 781 401 423 438 1,687 - - - ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total Other 7,216 8,484 7,175 8,224 9,740 4,967 6,975 5,845 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total gold ounces sold 84,337 77,901 79,622 67,649 90,090 75,104 86,243 90,101 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Silver ounces sold Peñasquito 2,096 2,188 1,818 2,210 1,844 2,174 1,417 1,799 Antamina 1,177 1,468 1,297 1,502 1,499 1,930 1,669 1,090
Constancia 494 644 351 484 295 346 442 415 Other Los Filos 41 42 17 12 42 27 - 19 Zinkgruvan 650 355 346 354 355 293 326 492 Yauliyacu 817 44 551 182 601 1,014 15 580 Stratoni (2) 133 42 41 167 117 169 134 Minto 21 31 27 24 29 26 20 - Neves-Corvo 167 204 259 193 215 239 145 201 Aljustrel 123 145 133 155 208 257 280 148 Cozamin 148 177 174 170 168 173 - - Marmato 11 8 8 10 35 - - - Keno Hill 30 27 24 51 33 12 - - 777 75 87 69 99 109 49 93 121 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total Other 2,081 1,253 1,650 1,291 1,962 2,207 1,048 1,695 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Total silver ounces sold 5,848 5,553 5,116 5,487 5,600 6,657 4,576 4,999 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Palladium ounces sold Stillwater (3) 3,378 4,075 4,641 5,703 3,869 5,131 4,591 5,546 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Cobalt pounds sold Voisey's Bay 225 511 228 131 395 132 - - ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- GEOs sold (4) 170,371 166,065 157,439 149,862 176,502 172,271 152,613 163,218 SEOs sold (4) 12,778 12,455 11,808 11,240 13,238 12,920 11,446 12,241 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Cumulative payable units PBND (5) Gold ounces 61,198 81,365 84,989 80,819 66,238 70,072 70,555 75,750 Silver ounces 3,684 3,920 4,200 3,845 3,802 3,738 4,486 3,437 Palladium ounces 6,267 5,535 5,629 5,619 6,822 5,373 5,597 4,616 Cobalt pounds 280 550 596 637 777 820 - - GEO (4) 122,758 150,170 158,477 150,317 139,145 141,206 136,894 126,968 SEO (4) 9,207 11,263 11,886 11,274 10,436 10,590 10,267 9,523 ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- Inventory on hand Cobalt pounds 582 410 657 488 134 132 - - ------------------ ---------------------- -------------------- --------------------- -------------------- -------------- ----------------- ----------------- ----------------- 1) All figures in thousands except gold and palladium ounces sold. 2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. 3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.
Three Months Ended June 30, 2022 --------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets ------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ---------- Gold Salobo 34,129 48,515 $ 1,872 $ 416 $ 334 $ 90,842 $ 54,462 $ 70,649 $2,407,579 Sudbury (4) 7,212 7,916 1,867 400 1,090 14,780 2,983 11,613 294,485 Constancia 8,042 7,431 1,872 412 271 13,915 8,838 10,686 98,930 San Dimas 10,044 10,633 1,872 624 260 19,910 10,520 13,280 161,350 Stillwater 2,171 2,626 1,872 340 429 4,917 2,897 4,024 217,530 Other (5) 6,767 7,216 1,868 727 57 13,478 7,823 8,529 419,696 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- 68,365 84,337 $ 1,872 $ 465 $ 369 $157,842 $ 87,523 $ 118,781 $3,599,570 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Silver Peñasquito 2,089 2,096 $ 22.47 $ 4.36 $ 3.57 $ 47,102 $ 30,488 $ 37,963 $ 306,742 Antamina 1,379 1,177 22.47 4.42 7.06 26,448 12,934 21,242 561,383 Constancia 584 494 22.47 6.08 6.35 11,101 4,958 7,784 198,672 Other (6) 2,485 2,081 21.91 7.44 5.74 45,577 18,148 30,198 577,944 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- 6,537 5,848 $ 22.27 $ 5.61 $ 5.28 $130,228 $ 66,528 $ 97,187 $1,644,741 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Palladium Stillwater 3,899 3,378 $ 2,132 $ 408 $ 399 $ 7,203 $ 4,477 $ 5,825 $ 229,855 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,852 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Cobalt Voisey's Bay 136 225 $ 34.01 $ 6.86 $ 10.40 $ 7,649 $ 3,769 $ 13,797 $ 362,460 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Operating results $302,922 $ 162,297 $ 235,590 $5,841,478 ------------------------------- ------ -------- -------- -------- ------- -------- --------- --------- Other General and administrative $ (9,685) $ (8,379) Share based compensation (1,608) (18,161) Donations and community investments (1,160) (1,135) Finance costs (1,389) (1,011) Other 820 (465) Income tax (201) (80) ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Total other $(13,223) $ (29,231) $ 607,217 --------------------------------------- -------- -------- -------- ------- -------- --------- --------- $ 149,074 $ 206,359 $6,448,695 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont), Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended June 30, 2022 were as follows:
Three Months Ended June 30, 2022 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Cash Operating Average Gross Price Cash Cost Margin Depletion Margin Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce) ----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ---------- Gold equivalent basis (5) 162,569 170,371 $ 1,778 $ 440 $ 1,338 $ 386 $ 952 Silver equivalent basis (5) 12,193 12,778 $ 23.71 $ 5.87 $ 17.84 $ 5.14 $ 12.70 ----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
2) Silver ounces produced and sold in thousands. 3) Refer to discussion on non-IFRS measure (iii) at the end of this press release. 4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Three Months Ended June 30, 2021 --------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets ------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ---------- Gold Salobo 55,590 57,296 $ 1,798 $ 412 $ 374 $103,039 $ 58,015 $ 79,426 $2,468,716 Sudbury (4) 4,563 6,945 1,817 400 1,024 12,618 2,725 10,262 310,120 Constancia 5,525 2,321 1,798 408 315 4,174 2,496 3,227 104,310 San Dimas 11,478 11,214 1,798 618 322 20,167 9,627 13,242 175,275 Stillwater 2,962 2,574 1,798 326 397 4,629 2,769 3,791 222,069 Other (5) 9,954 9,740 1,814 559 125 17,666 11,007 12,238 65,296 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- 90,072 90,090 $ 1,801 $ 450 $ 390 $162,293 $ 86,639 $ 122,186 $3,345,786 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Silver Peñasquito 2,026 1,844 $ 26.65 $ 4.29 $ 3.55 $ 49,133 $ 34,682 $ 41,223 $ 336,314 Antamina 1,558 1,499 26.63 5.39 7.53 39,903 20,545 31,013 601,117 Constancia 468 295 26.65 6.02 7.56 7,865 3,858 6,088 212,197 Other (6) 2,477 1,962 26.78 8.39 5.20 52,554 25,893 34,132 608,588 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- 6,529 5,600 $ 26.69 $ 6.11 $ 5.40 $149,455 $ 84,978 $ 112,456 $1,758,216 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Palladium Stillwater 5,301 3,869 $ 2,797 $ 503 $ 442 $ 10,822 $ 7,164 $ 8,876 $ 237,407 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Cobalt Voisey's Bay 380 395 $ 19.82 $ 4.41 $ 8.17 $ 7,823 $ 2,859 $ 2,052 $ 222,106 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Operating results $330,393 $ 181,640 $ 245,570 $5,563,515 ------------------------------- ------ -------- -------- -------- ------- -------- --------- --------- Other General and administrative $ (8,904) $ (8,573) Share based compensation (7,978) (16,926) Donations and community
investments (1,583) (1,075) Finance costs (1,357) (978) Other 3,420 (1,582) Income tax 886 (21) ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- --------- Total other $(15,516) $ (29,155) $ 417,951 --------------------------------------- -------- -------- -------- ------- -------- --------- --------- $ 166,124 $ 216,415 $5,981,466 ------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended June 30, 2021 were as follows:
Three Months Ended June 30, 2021 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Cash Operating Average Gross Price Cash Cost Margin Depletion Margin Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per Produced (1, 2) Sold (2) Ounce) Ounce) (3) (4) Ounce) Ounce) ----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ---------- Gold equivalent basis (5) 190,272 176,502 $ 1,872 $ 444 $ 1,428 $ 398 $ 1,030 Silver equivalent basis (5) 14,270 13,238 $ 24.96 $ 5.93 $ 19.03 $ 5.31 $ 13.72 ----------------- ----------------- ---------- ---------- ------------ ----------------- ----------- ----------
1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
2) Silver ounces produced and sold in thousands. 3) Refer to discussion on non-IFRS measure (iii) at the end of this press release. 4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Six Months Ended June 30, 2022 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets ------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ---------- Gold Salobo 79,012 91,028 $ 1,872 $ 416 $ 334 $170,407 $ 102,147 $ 132,517 $2,407,579 Sudbury (4) 12,574 11,628 1,865 400 1,091 21,689 4,354 17,038 294,485 Constancia 14,353 17,925 1,872 412 271 33,555 21,308 26,168 98,930 San Dimas 20,505 20,703 1,872 621 260 38,756 20,528 25,901 161,350 Stillwater 4,668 5,254 1,872 335 429 9,835 5,823 8,078 217,530 Other (5) 15,307 15,700 1,865 750 40 29,275 16,871 17,351 419,696 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- 146,419 162,238 $ 1,871 $ 470 $ 346 $303,517 $ 171,031 $ 227,053 $3,599,570 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Silver Peñasquito 4,308 4,284 $ 23.30 $ 4.36 $ 3.57 $ 99,829 $ 65,874 $ 81,151 $ 306,742 Antamina 2,647 2,645 23.37 4.71 7.06 61,806 30,680 49,001 561,383 Constancia 1,090 1,138 23.39 6.08 6.34 26,614 12,484 19,697 198,672 Other (6) 4,725 3,334 22.89 6.93 4.88 76,311 36,946 54,073 577,944 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- 12,770 11,401 $ 23.21 $ 5.36 $ 5.04 $264,560 $ 145,984 $ 203,922 $1,644,741 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Palladium Stillwater 8,387 7,453 $ 2,246 $ 400 $ 399 $ 16,736 $ 10,781 $ 13,755 $ 229,855 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Platinum Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,852 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Cobalt Voisey's Bay 371 736 $ 34.43 $ 6.09 $ 8.85 $ 25,353 $ 14,350 $ 17,269 $ 362,460 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Operating results $610,166 $ 342,146 $ 461,999 $5,841,478 ------------------------------- ------- -------- -------- -------- ------- -------- --------- --------- Other General and administrative $(19,089) $ (23,506) Share based compensation (11,509) (18,161) Donations and community investments (1,973) (1,565) Finance costs (2,811) (2,088) Other 650 333 Income tax (872) (113) ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Total other $(35,604) $ (45,100) $ 607,217
---------------------------------------- -------- -------- -------- ------- -------- --------- --------- $ 306,542 $ 416,899 $6,448,695 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont), Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for the Company for the six months ended June 30, 2022 were as follows:
Six Months Ended June 30, 2022 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Gross Price Cash Cost Cash Operating Depletion Margin Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce) -------------------- ---------------- --------- --------- ----------- -------------------- ---------- --------- Gold equivalent basis (5) 333,265 336,436 $ 1,814 $ 431 $ 1,383 $ 366 $ 1,017 Silver equivalent basis (5) 24,995 25,233 $ 24.18 $ 5.74 $ 18.44 $ 4.88 $ 13.56 -------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
2) Silver ounces produced and sold in thousands. 3) Refer to discussion on non-IFRS measure (iii) at the end of this press release. 4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Six Months Ended June 30, 2021 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets ------------------ ----------- ------- --------- --------- --------- -------- --------- ---------- ---------- Gold Salobo 102,212 108,719 $ 1,797 $ 412 $ 374 $195,395 $ 109,962 $ 150,590 $2,468,716 Sudbury (4) 11,567 10,636 1,815 400 1,024 19,306 4,156 15,480 310,120 Constancia 7,978 3,997 1,797 408 315 7,184 4,294 5,553 104,310 San Dimas 21,969 21,487 1,797 615 322 38,617 18,477 25,404 175,275 Stillwater 6,003 5,648 1,797 327 397 10,150 6,059 8,300 222,069 Other (5) 18,872 14,707 1,813 582 83 26,667 16,885 18,093 65,296 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- 168,601 165,194 $ 1,800 $ 450 $ 382 $297,319 $ 159,833 $ 223,420 $3,345,786 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Silver Peñasquito 4,228 4,018 $ 26.41 $ 4.29 $ 3.55 $106,116 $ 74,621 $ 88,879 $ 336,314 Antamina 3,135 3,429 26.39 5.27 7.53 90,485 46,603 71,604 601,117 Constancia 874 641 26.41 6.02 7.56 16,936 8,229 13,076 212,197 Other (6) 5,057 4,169 26.34 8.93 5.78 109,800 48,482 73,230 608,588 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- 13,294 12,257 $ 26.38 $ 6.23 $ 5.63 $323,337 $ 177,935 $ 246,789 $1,758,216 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Palladium Stillwater 11,070 9,000 $ 2,566 $ 460 $ 442 $ 23,097 $ 14,978 $ 18,960 $ 237,407 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Cobalt Voisey's Bay 1,542 527 $ 20.42 $ 4.55 $ 8.17 $ 10,759 $ 4,056 $ 1,086 $ 222,106 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Operating results $654,512 $ 356,802 $ 490,255 $5,563,515 ------------------------------- ------- -------- -------- -------- ------- -------- --------- --------- Other General and administrative $(18,639) $ (21,236) Share based compensation (9,608) (16,926) Donations and community investments (2,188) (1,573) Finance costs (2,930) (2,207) Other 3,301 307 Income tax 1,388 (51) ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- --------- Total other $(28,676) $ (41,686) $ 417,951 ---------------------------------------- -------- -------- -------- ------- -------- --------- --------- $ 328,126 $ 448,569 $5,981,466 ------------------ ----------- ------- -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.
5) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
6) Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill.
On a gold equivalent and silver equivalent basis, results for the Company for the six months ended June 30, 2021 were as follows:
Six Months Ended June 30, 2021 ---------------------------------------------------------------------------------------------------------------------- Average Realized Average Average Gross Price Cash Cost Cash Operating Depletion Margin Ounces Ounces ($'s Per ($'s Per Margin ($'s Per ($'s Per Produced (1, 2) Sold (2) Ounce) Ounce) (3) ($'s Per Ounce) (4) Ounce) Ounce) -------------------- ---------------- --------- --------- ----------- -------------------- ---------- --------- Gold equivalent basis (5) 387,028 348,773 $ 1,877 $ 451 $ 1,426 $ 403 $ 1,023 Silver equivalent basis (5) 29,027 26,158 $ 25.02 $ 6.01 $ 19.01 $ 5.37 $ 13.64 -------------------- ---------------- --------- --------- ----------- -------------------- ---------- ---------
1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
2) Silver ounces produced and sold in thousands. 3) Refer to discussion on non-IFRS measure (iii) at the end of this press release. 4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance.
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted).
Three Months Ended Six Months Ended June 30 June 30 (in thousands, except for per share amounts) 2022 2021 2022 2021 ------------------------------------------------------------ ------------ -------- -------- -------- Net earnings $ 149,074 $166,124 $306,542 $328,126 Add back (deduct): (Gain) loss on fair value adjustment of share purchase warrants held 154 194 897 1,145 (Gain) loss on fair value adjustment of convertible notes receivable - (3,388) 1,380 (4,626) Income tax expense (recovery) recognized in the Statement of Shareholders' Equity (292) (463) 500 1,107 Income tax expense (recovery) recognized in the Statement of OCI 349 (479) 155 (2,616) Other - (362) (2,182) (376) ------------------------------------------------------------ -------- ------- ------- ------- Adjusted net earnings $ 149,285 $161,626 $307,292 $322,760 ------------------------------------------------------------ -------- ------- ------- ------- Divided by: Basic weighted average number of shares outstanding 451,524 450,088 451,221 449,800 Diluted weighted average number of shares outstanding 452,359 451,203 452,123 450,869 ------------------------------------------------------------ -------- ------- ------- ------- Equals: Adjusted earnings per share - basic $ 0.331 $ 0.359 $ 0.681 $ 0.718 Adjusted earnings per share - diluted $ 0.330 $ 0.358 $ 0.680 $ 0.716 ------------------------------------------------------------ -------- ------- ------- -------
ii. Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis.
The following table provides a reconciliation of operating cash flow per share (basic and diluted).
Three Months Ended Six Months Ended June 30 June 30 (in thousands, except for per share amounts) 2022 2021 2022 2021 ---------------------------------------------------------- ------------ -------- -------- -------- Cash generated by operating activities $ 206,359 $216,415 $416,899 $448,569 ---------------------------------------------------------- -------- ------- ------- ------- Divided by: Basic weighted average number of shares outstanding 451,524 450,088 451,221 449,800 Diluted weighted average number of shares outstanding 452,359 451,203 452,123 450,869 ---------------------------------------------------------- -------- ------- ------- ------- Equals: Operating cash flow per share - basic $ 0.457 $ 0.481 $ 0.924 $ 0.997 Operating cash flow per share - diluted $ 0.456 $ 0.480 $ 0.922 $ 0.995 ---------------------------------------------------------- -------- ------- ------- -------
iii. Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is calculated by dividing the total cost of sales, less depletion, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance measure but does not have any standardized meaning prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance and ability to generate cash flow.
The following table provides a calculation of average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis.
Three Months Ended Six Months Ended June 30 June 30 (in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021 2022 2021 -------------------------------------------------------- --------- --------- ---------- ---------- Cost of sales $ 140,625 $ 148,753 $ 268,020 $ 297,710 Less: depletion (65,682) (70,308) (123,084) (140,482) -------------------------------------------------------- -------- -------- --------- --------- Cash cost of sales $ 74,943 $ 78,445 $ 144,936 $ 157,228 -------------------------------------------------------- -------- -------- --------- --------- Cash cost of sales is comprised of: Total cash cost of gold sold $ 39,189 $ 40,543 $ 76,321 $ 74,318 Total cash cost of silver sold 32,834 34,216 61,149 76,375 Total cash cost of palladium sold 1,378 1,946 2,980 4,137 Total cash cost of cobalt sold 1,542 1,740 4,486 2,398 -------------------------------------------------------- -------- -------- --------- --------- Total cash cost of sales $ 74,943 $ 78,445 $ 144,936 $ 157,228 -------------------------------------------------------- -------- -------- --------- --------- Divided by: Total gold ounces sold 84,337 90,090 162,238 165,194 Total silver ounces sold 5,848 5,600 11,401 12,257 Total palladium ounces sold 3,378 3,869 7,453 9,000 Total cobalt pounds sold 225 395 736 527 -------------------------------------------------------- -------- -------- --------- --------- Equals: Average cash cost of gold (per ounce) $ 465 $ 450 $ 470 $ 450 Average cash cost of silver (per ounce) $ 5.61 $ 6.11 $ 5.36 $ 6.23 Average cash cost of palladium (per ounce) $ 408 $ 503 $ 400 $ 460 Average cash cost of cobalt (per pound) $ 6.86 $ 4.41 $ 6.09 $ 4.55 -------------------------------------------------------- -------- -------- --------- ---------
iv. Cash operating margin is calculated by subtracting the average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis from the average realized selling price of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow.
The following table provides a reconciliation of cash operating margin.
Three Months Ended Six Months Ended June 30 June 30 (in thousands, except for gold and palladium ounces sold and per unit amounts) 2022 2021 2022 2021 ============================================================ ============ ======== ======== ======== Total sales: Gold $ 157,842 $162,293 $303,517 $297,319 Silver $ 130,228 $149,455 $264,560 $323,337 Palladium $ 7,203 $ 10,822 $ 16,736 $ 23,097 Cobalt $ 7,649 $ 7,823 $ 25,353 $ 10,759 Divided by: Total gold ounces sold 84,337 90,090 162,238 165,194 Total silver ounces sold 5,848 5,600 11,401 12,257 Total palladium ounces sold 3,378 3,869 7,453 9,000 Total cobalt pounds sold 225 395 736 527 ------------------------------------------------------------ -------- ------- ------- ------- Equals: Average realized price of gold (per ounce) $ 1,872 $ 1,801 $ 1,871 $ 1,800 Average realized price of silver (per ounce) $ 22.27 $ 26.69 $ 23.21 $ 26.38 Average realized price of palladium (per ounce) $ 2,132 $ 2,797 $ 2,246 $ 2,566 Average realized price of cobalt (per pound) $ 34.01 $ 19.82 $ 34.43 $ 20.42 Less: Average cash cost of gold (1) (per ounce) $ (465) $ (450) $ (470) $ (450) Average cash cost of silver (1) (per ounce) $ (5.61) $ (6.11) $ (5.36) $ (6.23) Average cash cost of palladium (1) (per ounce) $ (408) $ (503) $ (400) $ (460) Average cash cost of cobalt (1) (per pound) $ (6.86) $ (4.41) $ (6.09) $ (4.55) ------------------------------------------------------------ -------- Equals: Cash operating margin per gold ounce sold $ 1,407 $ 1,351 $ 1,401 $ 1,350 As a percentage of realized price of gold 75% 75% 75% 75% Cash operating margin per silver ounce sold $ 16.66 $ 20.58 $ 17.85 $ 20.15 As a percentage of realized price of silver 75% 77% 77% 76% Cash operating margin per palladium ounce sold $ 1,724 $ 2,294 $ 1,846 $ 2,106 As a percentage of realized price of palladium 81% 82% 82% 82% Cash operating margin per cobalt pound sold $ 27.15 $ 15.41 $ 28.34 $ 15.87 As a percentage of realized price of cobalt 80% 78% 82% 78% ------------------------------------------------------------ -------- ------- ------- -------
1) Please refer to non-IFRS measure (iii), above.
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more detailed information, please refer to Wheaton's MD&A available on the Company's website at www.wheatonpm.com and posted on SEDAR at www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton's PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of commodities, the estimation of future production from Mining Operations (including in the estimation of production, mill throughput, grades, recoveries and exploration potential), the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates) and the realization of such estimations, the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton's PMPA counterparties at mineral stream interests owned by Wheaton (the "Mining Operations"), the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements, the ability of Wheaton's PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton's PMPA counterparties) and the potential impacts of such on Wheaton, future payments by the Company in accordance with PMPAs, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, future sales of common shares under the ATM program, continued listing of the Company's common shares, any statements as to future dividends, the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs, including any acceleration of payments, projected increases to Wheaton's production and cash flow profile, projected changes to Wheaton's production mix, the ability of Wheaton's PMPA counterparties to comply with the terms of any other obligations under agreements with the Company, the ability to sell precious metals and cobalt production,
confidence in the Company's business structure, the Company's assessment of taxes payable and the impact of the CRA Settlement for years subsequent to 2010, possible domestic audits for taxation years subsequent to 2016 and international audits, the Company's assessment of the impact of any tax reassessments, the Company's intention to file future tax returns in a manner consistent with the CRA Settlement, the Company's climate change and environmental commitments, and assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs or royalty arrangements, risks associated with fluctuations in the price of commodities (including Wheaton's ability to sell its precious metals or cobalt production at acceptable prices or at all), risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with the exploration, development, operating, expansion and improvement of the Mining Operations, environmental and economic risks of the Mining Operations, and changes in project parameters as plans continue to be refined), the absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the Mining Operations, uncertainty in the estimation of production from Mining Operations, uncertainty in the accuracy of mineral reserve and mineral resource estimation, the ability of each party to satisfy their obligations in accordance with the terms of the PMPAs, the estimation of future production from Mining Operations, Wheaton's interpretation of, compliance with or application of, tax laws and regulations or accounting policies and rules being found to be incorrect, any challenge or reassessment by the CRA of the Company's tax filings being successful and the potential negative impact to the Company's previous and future tax filings, assessing the impact of the CRA Settlement (including whether there will be any material change in the Company's facts or change in law or jurisprudence), potential implementation of a 15% global minimum tax, counterparty credit and liquidity, mine operator concentration, indebtedness and guarantees, hedging, competition, claims and legal proceedings against Wheaton or the Mining Operations, security over underlying assets, governmental regulations, international operations of Wheaton and the Mining Operations, exploration, development, operations, expansions and improvements at the Mining Operations, environmental regulations, climate change, Wheaton and the Mining Operations ability to obtain and maintain necessary licenses, permits, approvals and rulings, Wheaton and the Mining Operations ability to comply with applicable laws, regulations and permitting requirements, lack of suitable supplies, infrastructure and employees to support the Mining Operations, inability to replace and expand mineral reserves, including anticipated timing of the commencement of production by certain Mining Operations (including increases in production, estimated grades and recoveries), uncertainties of title and indigenous rights with respect to the Mining Operations, environmental, social and governance matters, Wheaton and the Mining Operations ability to obtain adequate financing, the Mining Operations ability to complete permitting, construction, development and expansion, global financial conditions, Wheaton's acquisition strategy and other risks discussed in the section entitled "Description of the Business - Risk Factors" in Wheaton's Annual Information Form available on SEDAR at www.sedar.com , Wheaton's Form 40-F for the year ended December 31, 2021 and Form 6-K filed March 31, 2022 both on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure"). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation): that there will be no material adverse change in the market price of commodities, that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates, that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate, that each party will satisfy their obligations in accordance with the PMPAs, that Wheaton will continue to be able to fund or obtain funding for outstanding commitments, that Wheaton will be able to source and obtain accretive PMPAs, that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), that any outbreak or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally, without such response requiring any prolonged closure of the Mining Operations or having other material adverse effects on the Company and counterparties to its PMPAs, that the trading of the Company's common shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE, that the trading of the Company's common shares will not be suspended, and that the net proceeds of sales of common shares, if any, will be used as anticipated, that expectations regarding the resolution of legal and tax matters will be achieved (including ongoing CRA audits involving the Company), that Wheaton has properly considered the interpretation and application of Canadian tax law to its structure and operations, that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, that Wheaton's application of the CRA Settlement is accurate (including the Company's assessment that there will be no material change in the Company's facts or change in law or jurisprudence), and such other assumptions and factors as set out in the Disclosure. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward--looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.
For further information, please contact:
Patrick Drouin
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
[1] Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton's news release date August 11, 2022, titled "Wheaton Precious Metals Declares Quarterly Dividend."
[2] Commodity price assumptions for the gold equivalent production and sales in 2022 are $1,800 / ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other metal includes palladium and cobalt.
[3] Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.
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August 12, 2022 02:00 ET (06:00 GMT)
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