May 10, 2024
Vancouver, British Columbia
Designated News
Release
first QUARTER FINANCIAL results
Wheaton
Precious Metals Announces First Quarter 2024 Results
"Wheaton delivered a robust quarter to start
the year, generating over $219 million in operating cash flows, and
underscoring the effectiveness of our business model in leveraging
rising commodity prices while maintaining strong cash operating
margins," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "Looking ahead, we continue to
forecast peer-leading production growth of 40% by 2028, buoyed by
several development projects in our portfolio, many of which
achieved significant milestones during the quarter. Building on the
momentum from a record eight acquisitions in 2023, our corporate
development team remains actively engaged in evaluating new
opportunities and as always, Wheaton remains committed to ensuring
that our growth is both accretive and sustainable for all
stakeholders. We believe that strong commodity price trends and our
sector leading growth profile provide Wheaton shareholders with one
of the best vehicles for investing into the gold and precious
metals space."
Solid
Financial Results and Strong Balance Sheet
· First quarter of 2024: $297 million in revenue, $219 million
in operating cash flow, $164 million in net earnings and $164
million in adjusted net earnings[1] and, declared
a quarterly dividend1
of $0.155 per common share.
· Balance Sheet: cash balance of $306 million, no debt, and an
undrawn $2 billion revolving credit facility as at March 31, 2024,
after making total upfront cash payments of $462 million relative
to mineral stream and royalty interests in the quarter.
High-Quality Asset Base
· Streaming and royalty agreements on 18 operating mines and 27
development projects5.
· 93% of attributable production from assets in the lowest half
of their respective cost curves[2],4.
· Attributable gold equivalent production3 of
160,100 ounces in the first quarter of 2024, an increase of 19% relative to the comparable period of the
prior year due primarily to the mill throughput expansion at Salobo
and higher production at Constancia due to the mining of the
high-grade zones of the Pampacancha deposit.
· Forecasting annual production of over 800,000 gold equivalent
ounces ("GEOs") by 2028, with average annual attributable
production growing to over 850,000 GEOs3 in years 2029
to 2033.
· Accretive portfolio growth:
o On February 27, 2024, the Company closed the previously
announced agreement with certain entities advised by Orion Resource
Partners to acquire existing PMPAs in respect of Ivanhoe Mines'
Platreef project and BMC Minerals' Kudz Ze Kayah
project.
o On February 20, 2024, the Company acquired a 1.5% Net Smelter
Royalty from Integra Resources Corporation on the DeLamar and
Florida Mountain project.
Leadership in Sustainability
· Top Rankings: Ranked in the Global Top 50 out of over 15,000
multi-sector companies by Sustainalytics, AA rated by MSCI, and
Prime rated by ISS.
· Recognized among Corporate Knights'
2024 100 most sustainable corporations in the world.
· Peer-leading community investment program that supports
social and environmental initiatives alongside Wheaton's mining
partners.
Operational Overview
(all figures in US dollars unless
otherwise noted)
|
|
|
Q1
2024
|
|
|
Q1
2023
|
|
Change
|
Units produced
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
93,370
|
|
|
73,019
|
|
27.9 %
|
Silver ounces
|
|
|
5,476
|
|
|
5,134
|
|
6.7 %
|
Palladium ounces
|
|
|
4,463
|
|
|
3,705
|
|
20.5 %
|
Cobalt pounds
|
|
|
240
|
|
|
124
|
|
93.1 %
|
Gold equivalent ounces
3
|
|
|
160,133
|
|
|
134,730
|
|
18.9 %
|
Units sold
|
|
|
|
|
|
|
|
|
Gold ounces
|
|
|
92,019
|
|
|
62,605
|
|
47.0 %
|
Silver ounces
|
|
|
4,067
|
|
|
3,749
|
|
8.5 %
|
Palladium ounces
|
|
|
4,774
|
|
|
2,946
|
|
62.1 %
|
Cobalt pounds
|
|
|
309
|
|
|
323
|
|
(4.3)%
|
Gold equivalent ounces
3
|
|
|
143,184
|
|
|
109,293
|
|
31.0 %
|
Change in PBND and Inventory
|
|
|
|
|
|
|
|
|
Gold equivalent ounces
3
|
|
|
2,102
|
|
|
11,756
|
|
9,654
|
Revenue
|
|
$
|
296,806
|
|
$
|
214,465
|
|
38.4 %
|
Net
earnings
|
|
$
|
164,041
|
|
$
|
111,391
|
|
47.3 %
|
Per share
|
|
$
|
0.362
|
|
$
|
0.246
|
|
47.2 %
|
Adjusted net earnings 1
|
|
$
|
163,589
|
|
$
|
104,431
|
|
56.6 %
|
Per share 1
|
|
$
|
0.361
|
|
$
|
0.231
|
|
56.3 %
|
Operating cash flows
|
|
$
|
219,380
|
|
$
|
135,104
|
|
62.4 %
|
Per share 1
|
|
$
|
0.484
|
|
$
|
0.299
|
|
61.9 %
|
All amounts in thousands except gold, palladium & gold
equivalent ounces, and per share amounts.
Financial Review
Revenues
Revenue in the first quarter of
2024 was $297 million (64% gold, 32% silver, 2% palladium and 2%
cobalt), with the $82 million increase
relative to the prior period quarter being primarily due to a 31%
increase in the number of GEOs³ sold; and a 6% increase in the
average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the first
quarter of 2024 were $430 per GEO³ as compared to $475 in the first
quarter of 2023. This resulted in a cash
operating margin¹ of $1,643 per GEO³ sold, an increase of 10% as
compared with the first quarter of 2023, a
result of the higher realized price per ounce coupled with the
lower average cash costs.
Cash Flow from Operations
Operating cash flow in the first
quarter of 2024 amounted to $219 million, with the $84 million
increase due primarily to the higher gross margin.
Balance Sheet (at
March 31,
2024)
· Approximately $306 million of cash on hand
· During the first quarter of 2024, the Company made total
upfront cash payments of $462 million relative to the mineral
stream and royalty interests consisting of:
o $450 million relative to the Platreef and Kudz Ze Kayah
precious metals purchase agreements ("PMPAs")
o $7 million relative to the Mt Todd Royalty; and
o $5 million relative to the DeLamar Royalty
· Subsequent to the quarter, the Company disposed of its
investment in Hecla Mining Company for gross proceeds of $177
million.
· With the existing cash on hand coupled with the fully undrawn
$2 billion revolving credit
facility, the
Company believes it is well positioned to fund all outstanding
commitments and known contingencies as well as providing
flexibility to acquire additional accretive mineral stream
interests.
Global Minimum Tax
The Company is within the scope of global minimum
tax ("GMT") under the OECD Pillar Two model rules ("Pillar Two"),
under which large multinational entities will be subject to a 15%
GMT. On May 2, 2024, the Canadian Federal Government introduced the
Federal budget bill, C-69, into parliament which
contains the Global Minimum Tax Act ("GMTA") reflecting application
of GMT to in-scope companies for fiscal years commencing on or
after December 31, 2023. However, as of the
date of this press release , the legislation related to the GMTA
has not been enacted. As the legislation was not enacted as of the
Balance Sheet date, for the three months ended March 31, 2024, the
Company has recorded no current tax expense associated with
GMT, although the Company's wholly-owned foreign
subsidiaries which reside in jurisdictions where the GMT is
expected to apply had net earnings of $165 million with 15% of such
amounting to $25 million.
The Company will recognize the tax expense
associated with the GMT in its consolidated financial statements in
the appropriate period relative to when the legislation is enacted.
If enacted as drafted, Company's
wholly-owned foreign subsidiaries which reside in jurisdictions
where the GMT is expected to apply would be subject to the proposed
Canadian rules in the GMTA retroactively to January 1, 2024.
First Quarter Operating Asset
Highlights2
Salobo: In the first quarter of 2024,
Salobo produced 61,600 ounces of attributable gold, an increase of
approximately 41% relative to the first quarter of 2023, driven by
higher throughput, with production from the third concentrator line
commencing at the end of 2022, partially offset by lower grades
which was expected as per the mine development plan. As reported by
Vale S.A. ("Vale"), Salobo 3 reached ~90% average throughput in the
first quarter as the ramp-up continues. Salobo 1 & 2 plants
also posted strong performance in the quarter, with 14% higher
throughput rate, 10% productivity and 3% higher asset availability
relative to the first quarter of 2023.
On November 21, 2023, Vale reported the successful
completion of the throughput test for the first phase of the Salobo
III project, with the Salobo complex exceeding an average of 32
million tonnes per annum ("Mtpa") over a 90-day period. Under the
terms of the agreement, the Company paid Vale $370 million for the
completion of the first phase of the Salobo III expansion project
on December 1, 2023. The remaining balance of the expansion payment
is dependent on the timing of completion and will be triggered once
Vale expands actual throughput above 35 Mtpa for a period of 90
days.
Antamina: In the first
quarter of 2024, Antamina produced 0.8 million ounces of
attributable silver, a decrease of approximately 8% relative to the
first quarter of 2023 primarily due to lower grades. On February
15, 2024, Peru's National Environmental Certification Service for
Sustainable Investments approved, after a detailed evaluation
process, the Modification of the Environmental Impact Study, which
will allow for the extension of Antamina's mine life from 2028 to
2036.
Peñasquito: In the first
quarter of 2024, Peñasquito produced 2.6 million ounces of
attributable silver, an increase of approximately 27% relative to
the first quarter of 2023 primarily due to higher
grades.
Constancia: In the first
quarter of 2024, Constancia produced 0.6 million ounces of
attributable silver and 13,900 ounces of attributable gold, an
increase of approximately 16% and 101%, respectively, relative to
the first quarter of 2023, with the increases being primarily the
result of significantly higher gold grades attributable to the
mining of high-grade zones of the Pampacancha deposit, combined
with higher recoveries.
On March 28, 2024, Hudbay Minerals Inc., ("Hudbay")
reported that Constancia's expected mine life has been extended by
three years to 2041 as a result of the successful conversion of
mineral resources to mineral reserves with the addition of a
further mining phase at the Constancia pit following positive
geotechnical drilling and studies in 2023. There remains potential
for future mine life extensions based on the mineral resources that
have not yet been converted to mineral reserves.
Sudbury: In the first quarter
of 2024, Vale's Sudbury mines produced 7,000 ounces of attributable
gold, an increase of approximately 14% relative to the first
quarter of 2023, due to higher throughput.
Stillwater: In the first
quarter of 2024, the Stillwater mines produced 2,600 ounces of
attributable gold and 4,500 ounces of attributable palladium, an
increase of approximately 35% for gold and 20% for palladium
relative to the first quarter of 2023, due primarily to higher
throughput and grades.
Voisey's Bay: In the first
quarter of 2024, the Voisey's Bay mine produced 240,000 pounds of
attributable cobalt, an increase of approximately 93% relative to
the first quarter of 2023, as the transitional period between the
depletion of the Ovoid open-pit and ramp-up to full production of
the Voisey's Bay underground mine nears completion. Vale reports
that physical completion of the Voisey's Bay underground mine
extension was 94% at the end of the first quarter, and that the
main surface assets are completed and already operating. In the
underground portion, the scope in Reid Brook is completed and the
mine development at Eastern Deeps is concluded. Construction of the
Bulk Material Handling system, dewatering and support facilities is
ongoing. The full mine assets at Eastern Deeps are expected to be
in operation by the end of 2024.
Other Gold: In the first
quarter of 2024, total Other Gold attributable production was 600
ounces, a decrease of approximately 82% relative to the first
quarter of 2023, primarily due to the closure of the Minto mine in
May 2023.
Other Silver: In the first
quarter of 2024, total Other Silver attributable production was 1.4
million ounces, a decrease of approximately 15% relative to the
first quarter of 2023, primarily due to the temporary suspension of
attributable production from Aljustrel.
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.
Recent Development Asset Updates
Blackwater
Project: On February 21, 2024, Artemis Gold Inc.
("Artemis") announced the results of an expansion study to optimize
the timing of mine expansion through the advancing of Phase 2. A
decision on the acceleration of the Phase 2 expansion is expected
to be considered in the second half of 2024. On April 24, 2024,
Artemis announced that overall construction was approximately 73%
complete and that construction of major site water management
facilities, including the water management pond, the central
diversion system, and the Davidson Creek diversion, have been
completed along with work on the tailings storage facility which is
progressing well. Artemis also states that the project remains on
schedule for first gold pour in the second half of 2024.
Platreef Project: On April 30, 2024,
Ivanhoe Mines Ltd. ("Ivanhoe") reported that construction
activities for the Platreef Phase 1 concentrator are on schedule at
almost 90% complete and on track for cold commissioning in the
third quarter of 2024. An updated independent feasibility study on
an optimized development plan for the acceleration of Phase 2 is
planned to be completed and published in the fourth quarter of
2024. As a result of the planned acceleration of Phase 2, first
feed and ramp-up of production will be deferred until mid-2025. In
addition, a preliminary economic assessment on a Phase 3 expansion
is expected to be completed at the same time, increasing Platreef's
processing capacity up to approximately 10 Mtpa. A Phase 3
expansion to 10 Mtpa processing capacity is expected to rank
Platreef as one of the world's largest platinum-group metal,
nickel, copper and gold producers.
Goose
Project: On May 7, 2024, B2Gold Corp.,
("B2Gold") announced the successful completion of the 2024 winter
ice road ("WIR") campaign, delivering all necessary materials to
complete the construction of the Goose project. B2Gold reports that
while mill construction remains on schedule, development of the
open pit and underground is slightly behind schedule due to
equipment availability, adverse weather conditions and
prioritization of critical path construction activities. As a
result, B2Gold reports that first gold pour is now expected in the
second quarter of 2025 with ramp up to full production in the third
quarter of 2025, one quarter later than previous
estimates.
Marmato Mine:
On April 15, 2024, Aris Mining Corporation ("Aris") provided an
update that at the Marmato Lower Mine expansion project, the access
road to the new processing facility area is now complete and
earthworks in the plant area will commence soon. The contractor for
the new portal and decline is fully mobilized and cutting of the
portal face has commenced.
Curipamba Project: On January 22, 2024,
Adventus Mining Corporation ("Adventus") announced that the
Ministry of Environment, Water and Energy Transition of the
Government of Ecuador has granted the environmental license for the
construction and operation of the El Domo - Curipamba project (the
"Curipamba project"). On January 30, 2024, Adventus announced that
the Ministry of Energy and Mines of Ecuador has issued a permit
which grants approval for the design, construction, operation, and
maintenance of the tailings storage facility ("TSF") for the
Curipamba project. The start of TSF construction is a key condition
precedent for the Company to make additional upfront cash payments
under the Curipamba PMPA.
On April 26, 2024, Adventus announced that
Silvercorp Metals Inc. ("Silvercorp") has entered into a definitive
arrangement agreement with Adventus pursuant to which Silvercorp
has agreed to acquire all of the issued and outstanding common
shares of Adventus. As reported by Silvercorp, the existing stream
with Wheaton, combined with Silvercorp's existing cash and cash
equivalents of approximately $200 million, is more than sufficient
to fully fund the Curipamba project through construction.
Fenix
Project: On April 8, 2024, Rio2 Limited ("Rio2") announced
that its Chilean subsidiary has received the formal Environmental
Qualification Resolution ("RCA") for the Fenix gold project. The
receipt of the RCA now allows Rio2 to advance permitting activities
for the Fenix project. Rio2 has noted that there are four principal
Sectorial Permits required before construction can commence at the
Project: 1) Mining Methods; 2) Process Plant; 3) Waste Dumps &
Stockpiles; and 4) Closure Plan and that work on these permits is
well underway. Rio2 notes that the current timing for receipt of
these principal permits is by the end of July 2024.
Cangrejos Project: On January 18, 2024,
Lumina Gold Corp. ("Lumina") announced results from the phase 1
mining resource conversion drilling campaign in support of the
ongoing feasibility study at Cangrejos. Lumina noted that the
assays from the resource infill program continue to demonstrate the
exceptional continuity of grade at Cangrejos. Lumina also noted
that it is operating normally at the Cangrejos project and to date
their activities have not been affected by the recent civil
disturbances that have impacted other areas in Ecuador.
Curraghinalt Project: Subsequent to the quarter, the Planning Appeals Commission
& Water Appeals Commission ("the commission") in Northern
Ireland concluded that the water abstraction and impoundment
licenses ("water licenses") relative to the Curraghinalt Project
have been rescinded and that license applications would need to be
resubmitted and subsequent public inquiry referrals held. The
commission noted that it has suspended arrangements for the current
inquiry timetable until it is in receipt of the expected water
license applications, at which time it will move to set directions
and new dates for the submission of statements of case, rebuttals,
and for the opening of the re-scheduled hearing sessions in due
course.
Corporate Development
DeLamar
Royalty
On February 20, 2024, the Company purchased a 1.5%
net smelter return royalty interest ("DeLamar Royalty") in the
DeLamar and Florida mountain project located in Idaho, United
States (the "DeLamar project") from a subsidiary of Integra
Resources Corporation ("Integra") for $9.75 million to be paid in
two equal installments, the first of which was paid in the first
quarter of 2024, with the balance expected to be paid in July 2024
subject to customary conditions. Under the DeLamar Royalty,
if completion is not achieved by January 1, 2029, the DeLamar
Royalty will increase annually by 0.15% of net smelter returns to a
maximum of 2.7% of net smelter returns. The Company had previously
acquired a right of first refusal on any precious metals streaming,
royalty, pre-pay or other similar transaction on the DeLamar
project.
Sustainability
Ratings
& Awards:
· On January 17, 2024, the Company announced its ranking among
Corporate Knights' 2024 100 Most Sustainable Corporations in the
world. The Company will be included in the Global 100 Index, which
represents a benchmark for sustainability excellence.
Community
Investment Program:
· On March 1, 2024, Wheaton International commenced a new
program with the Vale Foundation to support an ambitious three-year
initiative in Brazil that aims to improve the primary health care
being offered in the municipalities near the Salobo mine and along
the Carajas railroad. The program will be carried out in 8
municipalities of Pará State, impacting approximately 550,000
individuals and in 24 municipalities of Maranhão State, impacting
approximately 1.3 million individuals. Wheaton International and
the Vale Foundation each committed BRL$17 million. The total
contribution of Wheaton and the Vale Foundation of BRL$34 million
is being matched by the Brazilian Development Bank, magnifying the
impact of the contribution being made by Wheaton
International.
· The Pacific Salmon Foundation's Vancouver Gala presented by
Wheaton raised CA$0.5 million in support of advancing critical
marine science research and conservation work.
· The Daffodil Ball presented by Wheaton raised over CA$4.4
million for the Canadian Cancer Society.
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024
is forecast to be 325,000 to 370,000 ounces of gold, 18.5 to 20.5
million ounces of silver, and 12,000 to 15,000 GEOs3 of
other metals, resulting in annual production of approximately
550,000 to 620,000 GEOs3, unchanged from previous
guidance2,3.
Annual production is forecast to increase by
approximately 40% to over 800,000 GEOs3 by 2028, with
average annual production forecast to grow to over 850,000
GEO3 in years 2029 to 2033, also unchanged from previous
guidance.
About Wheaton Precious Metals
Corp.
Wheaton is the world's premier precious metals streaming company with
the highest-quality portfolio of long-life, low-cost assets. Its
business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
In accordance with
Wheaton Precious Metals™ Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company
and Wheaton includes the Company's wholly owned
subsidiaries.
Webcast and Conference Call Details
A conference call will be held on
Friday, May 10, 2024, 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:
RapidConnect URL:
|
Click
here
|
Live webcast:
|
Click
here
|
Dial toll free:
|
1-888-664-6383 or 1-416-764-8650
|
Conference Call ID:
|
12432661
|
Participants should dial in five to ten
minutes before the call.
The conference call will be recorded and available
until May 17, 2024 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:
|
432661 #
|
Archived webcast
|
Click
here
|
This earnings release should be
read in conjunction with Wheaton Precious Metals' MD&A and
Financial Statements, which are available on the Company's website
at www.wheatonpm.com and have been posted on SEDAR+ at
www.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining
Operations, Neil Burns, P.Geo., Vice President, Technical Services
for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice
President, Engineering, are a "qualified person" as such term is
defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns
has reviewed mineral resource estimates and Mr. Ulansky has
reviewed the mineral reserve estimates).
Wheaton Precious Metals believes
that there are no significant differences between its
corporate governance practices and those required to be
followed by United States domestic issuers under the NYSE listing
standards. This confirmation is located on the Wheaton Precious
Metals website at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx.
For further
information:
Investor
Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Media
Contact
Simona Antolak
Vice President, Communications & Corporate
Affairs
Tel: 604-639-9870
Email: simona.antolak@wheatonpm.com
Condensed Interim
Consolidated Statements of Earnings
|
|
Three
Months Ended
March 31
|
(US dollars and shares in thousands,
except per share amounts - unaudited)
|
|
2024
|
2023
|
Sales
|
|
$
|
296,806
|
$
|
214,465
|
Cost of sales
|
|
|
|
|
|
Cost of sales, excluding
depletion
|
|
$
|
61,555
|
$
|
51,964
|
Depletion
|
|
|
63,676
|
|
45,000
|
Total cost of sales
|
|
$
|
125,231
|
$
|
96,964
|
Gross margin
|
|
$
|
171,575
|
$
|
117,501
|
General and administrative
expenses
|
|
|
10,464
|
|
10,099
|
Share based compensation
|
|
|
1,281
|
|
7,397
|
Donations and community
investments
|
|
|
1,570
|
|
1,378
|
Earnings from operations
|
|
$
|
158,260
|
$
|
98,627
|
Other income (expense)
|
|
|
7,196
|
|
7,562
|
Earnings before finance costs and
income taxes
|
|
$
|
165,456
|
$
|
106,189
|
Finance costs
|
|
|
1,442
|
|
1,378
|
Earnings before income
taxes
|
|
$
|
164,014
|
$
|
104,811
|
Income tax recovery
|
|
|
(27)
|
|
(6,580)
|
Net earnings
|
|
$
|
164,041
|
$
|
111,391
|
Basic earnings per share
|
|
$
|
0.362
|
$
|
0.246
|
Diluted earnings per
share
|
|
$
|
0.362
|
$
|
0.246
|
Weighted average number of shares
outstanding
|
|
|
|
|
|
Basic
|
|
|
453,094
|
|
452,370
|
Diluted
|
|
|
453,666
|
|
453,159
|
Condensed Interim
Consolidated Balance Sheets
|
As at
March 31
|
As
at
December 31
|
(US dollars in thousands -
unaudited)
|
2024
|
2023
|
Assets
|
|
|
|
|
Current assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
306,109
|
$
|
546,527
|
Accounts receivable
|
|
5,514
|
|
10,078
|
Cobalt inventory
|
|
-
|
|
1,372
|
Income taxes receivable
|
|
5,851
|
|
5,935
|
Other
|
|
3,374
|
|
3,499
|
Total current assets
|
$
|
320,848
|
$
|
567,411
|
Non-current assets
|
|
|
|
|
Mineral stream
interests
|
$
|
6,510,767
|
$
|
6,122,441
|
Early deposit mineral stream
interests
|
|
47,094
|
|
47,093
|
Mineral royalty
interests
|
|
25,448
|
|
13,454
|
Long-term equity
investments
|
|
246,652
|
|
246,678
|
Property, plant and
equipment
|
|
7,996
|
|
7,638
|
Other
|
|
21,650
|
|
26,470
|
Total non-current assets
|
$
|
6,859,607
|
$
|
6,463,774
|
Total assets
|
$
|
7,180,455
|
$
|
7,031,185
|
Liabilities
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts payable and accrued
liabilities
|
$
|
10,918
|
$
|
13,458
|
Dividends payable
|
|
70,261
|
|
-
|
Current portion of performance
share units
|
|
6,261
|
|
12,013
|
Current portion of lease
liabilities
|
|
518
|
|
604
|
Total current liabilities
|
$
|
87,958
|
$
|
26,075
|
Non-current liabilities
|
|
|
|
|
Performance share units
|
$
|
2,991
|
$
|
9,113
|
Lease liabilities
|
|
5,423
|
|
5,625
|
Deferred income taxes
|
|
242
|
|
232
|
Pension liability
|
|
4,646
|
|
4,624
|
Total non-current
liabilities
|
$
|
13,302
|
$
|
19,594
|
Total liabilities
|
$
|
101,260
|
$
|
45,669
|
Shareholders' equity
|
|
|
|
|
Issued capital
|
$
|
3,784,848
|
$
|
3,777,323
|
Reserves
|
|
(47,717)
|
|
(40,091)
|
Retained earnings
|
|
3,342,064
|
|
3,248,284
|
Total shareholders'
equity
|
$
|
7,079,195
|
$
|
6,985,516
|
Total liabilities and shareholders'
equity
|
$
|
7,180,455
|
$
|
7,031,185
|
Condensed Interim
Consolidated Statements of Cash Flows
|
|
Three
Months Ended
March 31
|
(US dollars in thousands -
unaudited)
|
|
2024
|
2023
|
Operating activities
|
|
|
|
|
|
Net earnings
|
|
$
|
164,041
|
$
|
111,391
|
Adjustments for
|
|
|
|
|
|
Depreciation and
depletion
|
|
|
64,013
|
|
45,390
|
Interest expense
|
|
|
74
|
|
17
|
Equity settled stock based
compensation
|
|
|
1,598
|
|
1,542
|
Performance share units -
expense
|
|
|
(317)
|
|
5,855
|
Performance share units -
paid
|
|
|
(11,129)
|
|
(16,675)
|
Pension expense
|
|
|
175
|
|
167
|
Pension paid
|
|
|
(43)
|
|
(96)
|
Income tax (recovery)
expense
|
|
|
(27)
|
|
(6,580)
|
(Gain) loss on fair value
adjustment of share purchase warrants held
|
|
|
(183)
|
|
(175)
|
Investment income recognized in
net earnings
|
|
|
(6,438)
|
|
(7,148)
|
Other
|
|
|
(83)
|
|
79
|
Change in non-cash working
capital
|
|
|
2,155
|
|
(2,072)
|
Cash generated from operations
before income taxes and interest
|
|
$
|
213,836
|
$
|
131,695
|
Income taxes paid
|
|
|
(116)
|
|
(3,344)
|
Interest paid
|
|
|
(75)
|
|
(18)
|
Interest received
|
|
|
5,735
|
|
6,771
|
Cash generated from operating
activities
|
|
$
|
219,380
|
$
|
135,104
|
Financing activities
|
|
|
|
|
|
Share purchase options
exercised
|
|
|
3,816
|
|
9,376
|
Lease payments
|
|
|
(148)
|
|
(202)
|
Cash generated from financing
activities
|
|
$
|
3,668
|
$
|
9,174
|
Investing activities
|
|
|
|
|
|
Mineral stream interests
|
|
$
|
(450,902)
|
$
|
(31,524)
|
Early deposit mineral stream
interests
|
|
|
-
|
|
(750)
|
Mineral royalty interest
|
|
|
(11,947)
|
|
-
|
Net proceeds on disposal of mineral
stream interests
|
|
|
-
|
|
(29)
|
Acquisition of long-term
investments
|
|
|
(751)
|
|
(8,144)
|
Dividends received
|
|
|
700
|
|
-
|
Other
|
|
|
(596)
|
|
(530)
|
Cash used for investing
activities
|
|
$
|
(463,496)
|
$
|
(40,977)
|
Effect of exchange rate changes on
cash and cash equivalents
|
|
$
|
30
|
$
|
307
|
(Decrease) increase in cash and cash
equivalents
|
|
$
|
(240,418)
|
$
|
103,608
|
Cash and cash equivalents, beginning
of period
|
|
|
546,527
|
|
696,089
|
Cash and cash equivalents, end of
period
|
|
$
|
306,109
|
$
|
799,697
|
Summary of Units
Produced
|
Q1
2024
|
Q4
2023
|
Q3
2023
|
Q2
2023
|
Q1
2023
|
Q4
2022
|
Q3
2022
|
Q2
2022
|
Gold ounces produced ²
|
|
|
|
|
|
|
|
|
Salobo
|
61,622
|
71,778
|
69,045
|
54,804
|
43,677
|
37,939
|
44,212
|
34,129
|
Sudbury 3
|
7,049
|
5,823
|
3,857
|
5,818
|
6,203
|
5,270
|
3,437
|
5,289
|
Constancia
|
13,897
|
22,292
|
19,003
|
7,444
|
6,905
|
10,496
|
7,196
|
8,042
|
San Dimas 4
|
7,542
|
10,024
|
9,995
|
11,166
|
10,754
|
10,037
|
11,808
|
10,044
|
Stillwater 5
|
2,637
|
2,341
|
2,454
|
2,017
|
1,960
|
2,185
|
1,833
|
2,171
|
Other
|
|
|
|
|
|
|
|
|
Marmato
|
623
|
668
|
673
|
639
|
457
|
533
|
542
|
778
|
777 6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,509
|
Minto 7
|
-
|
-
|
-
|
1,292
|
3,063
|
2,567
|
3,050
|
2,480
|
Total Other
|
623
|
668
|
673
|
1,931
|
3,520
|
3,100
|
3,592
|
6,767
|
Total gold ounces
produced
|
93,370
|
112,926
|
105,027
|
83,180
|
73,019
|
69,027
|
72,078
|
66,442
|
Silver ounces produced
2
|
|
|
|
|
|
|
|
|
Peñasquito
8
|
2,643
|
1,036
|
-
|
1,744
|
2,076
|
1,761
|
2,017
|
2,089
|
Antamina
|
806
|
1,030
|
894
|
984
|
872
|
1,067
|
1,327
|
1,330
|
Constancia
|
640
|
836
|
697
|
420
|
552
|
655
|
564
|
584
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
|
42
|
28
|
28
|
28
|
45
|
14
|
21
|
35
|
Zinkgruvan
|
641
|
510
|
785
|
374
|
632
|
664
|
642
|
739
|
Neves-Corvo
|
524
|
573
|
486
|
407
|
436
|
369
|
323
|
345
|
Aljustrel 9
|
-
|
-
|
327
|
279
|
343
|
313
|
246
|
292
|
Cozamin
|
173
|
185
|
165
|
184
|
141
|
157
|
179
|
169
|
Marmato
|
7
|
10
|
11
|
7
|
8
|
9
|
7
|
7
|
Yauliyacu 10
|
-
|
-
|
-
|
-
|
-
|
261
|
463
|
756
|
Minto 7
|
-
|
-
|
-
|
14
|
29
|
33
|
33
|
26
|
Keno Hill 11
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
48
|
777 6
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
80
|
Total Other
|
1,387
|
1,306
|
1,802
|
1,293
|
1,634
|
1,820
|
1,914
|
2,497
|
Total silver ounces
produced
|
5,476
|
4,208
|
3,393
|
4,441
|
5,134
|
5,303
|
5,822
|
6,500
|
Palladium ounces produced
²
|
|
|
|
|
|
|
|
|
Stillwater 5
|
4,463
|
4,209
|
4,006
|
3,880
|
3,705
|
3,869
|
3,229
|
3,899
|
Cobalt pounds produced ²
|
|
|
|
|
|
|
|
|
Voisey's Bay
|
240
|
215
|
183
|
152
|
124
|
128
|
226
|
136
|
GEOs produced
12
|
160,133
|
164,818
|
147,230
|
137,176
|
134,730
|
132,780
|
142,103
|
144,019
|
Average payable rate
2
|
|
|
|
|
|
|
|
|
Gold
|
94.8%
|
95.1%
|
95.4%
|
95.1%
|
95.1%
|
94.9%
|
95.1%
|
95.1%
|
Silver
|
84.5%
|
83.0%
|
78.3%
|
83.7%
|
83.1%
|
84.2%
|
86.3%
|
86.5%
|
Palladium
|
96.9%
|
95.9%
|
93.6%
|
94.1%
|
96.0%
|
91.7%
|
95.0%
|
94.6%
|
Cobalt
|
93.3%
|
93.3%
|
93.3%
|
93.3%
|
93.3%
|
93.3%
|
93.3%
|
93.3%
|
GEO 11
|
90.7%
|
91.6%
|
90.8%
|
90.8%
|
89.8%
|
89.9%
|
90.9%
|
90.7%
|
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.
4) Under the terms of the San Dimas PMPA, the Company is entitled
to an amount equal to 25% of the payable gold production plus an
additional amount of gold equal to 25% of the payable silver
production converted to gold at a fixed gold to silver exchange
ratio of 70:1 from the San Dimas mine. If the average gold to
silver price ratio decreases to less than 50:1 or increases to more
than 90:1 for a period of 6 months or more, then the "70" shall be
revised to "50" or "90", as the case may be, until such time as the
average gold to silver price ratio is between 50:1 to 90:1 for a
period of 6 months or more in which event the "70" shall be
reinstated. For reference, attributable silver production from
prior periods is as follows: Q1 2024 - 291,000 ounces; Q4 2023 -
378,000 ounces; Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces;
Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces; Q3 2022 -
412,000 ounces; Q2 2022 - 382,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and
palladium interests.
6) On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have
commenced.
7) On May 13, 2023, Minto Metals Corp. announced the suspension
of operations at the Minto mine.
8) There was a temporary suspension of operations at Peñasquito
due to a labour strike which ran from June 7, 2023 to October 13,
2023.
9) On September 12, 2023, it was announced that the production of
the zinc and lead concentrates at the Aljustrel mine will be halted
from September 24, 2023 until the second quarter of
2025.
10)
On December 14, 2022 the Company terminated the
Yauliyacu PMPA in exchange for a cash payment of $132
million.
11)
On September 7, 2022, the Company terminated the
Keno Hill PMPA in exchange for $141 million of Hecla common
stock.
12)
GEOs, which are provided to assist the reader, are
based on the following commodity price assumptions: $2,000 per
ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium;
and $13.00 per pound cobalt; consistent with those used in
estimating the Company's production guidance for 2024.
Summary of Units
Sold
|
Q1
2024
|
Q4
2023
|
Q3
2023
|
Q2
2023
|
Q1
2023
|
Q4
2022
|
Q3
2022
|
Q2
2022
|
Gold ounces sold
|
|
|
|
|
|
|
|
|
Salobo
|
56,841
|
76,656
|
44,444
|
46,030
|
35,966
|
41,029
|
31,818
|
48,515
|
Sudbury 2
|
4,129
|
5,011
|
4,836
|
4,775
|
4,368
|
4,988
|
5,147
|
7,916
|
Constancia
|
20,123
|
19,925
|
12,399
|
9,619
|
6,579
|
6,013
|
6,336
|
7,431
|
San Dimas
|
7,933
|
10,472
|
9,695
|
11,354
|
10,651
|
10,943
|
10,196
|
10,633
|
Stillwater 3
|
2,355
|
2,314
|
1,985
|
2,195
|
2,094
|
1,783
|
2,127
|
2,626
|
Other
|
|
|
|
|
|
|
|
|
Marmato
|
638
|
633
|
792
|
467
|
480
|
473
|
719
|
781
|
777
|
-
|
-
|
275
|
153
|
126
|
785
|
3,098
|
3,629
|
Minto
|
-
|
-
|
-
|
701
|
2,341
|
2,982
|
2,559
|
2,806
|
Total Other
|
638
|
633
|
1,067
|
1,321
|
2,947
|
4,240
|
6,376
|
7,216
|
Total gold ounces sold
|
92,019
|
115,011
|
74,426
|
75,294
|
62,605
|
68,996
|
62,000
|
84,337
|
Silver ounces sold
|
|
|
|
|
|
|
|
|
Peñasquito
|
1,839
|
442
|
453
|
1,913
|
1,483
|
2,066
|
1,599
|
2,096
|
Antamina
|
762
|
1,091
|
794
|
963
|
814
|
1,114
|
1,155
|
1,177
|
Constancia
|
726
|
665
|
435
|
674
|
366
|
403
|
498
|
494
|
Other
|
|
|
|
|
|
|
|
|
Los Filos
|
44
|
24
|
30
|
37
|
34
|
16
|
24
|
41
|
Zinkgruvan
|
297
|
449
|
714
|
370
|
520
|
547
|
376
|
650
|
Neves-Corvo
|
243
|
268
|
245
|
132
|
171
|
80
|
105
|
167
|
Aljustrel
|
1
|
86
|
142
|
182
|
205
|
156
|
185
|
123
|
Cozamin
|
147
|
141
|
139
|
150
|
119
|
150
|
154
|
148
|
Marmato
|
8
|
9
|
11
|
7
|
7
|
7
|
8
|
11
|
Yauliyacu
|
-
|
-
|
-
|
-
|
-
|
337
|
1,005
|
817
|
Stratoni
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2)
|
Minto
|
-
|
-
|
-
|
7
|
29
|
23
|
22
|
21
|
Keno Hill
|
-
|
-
|
-
|
-
|
1
|
1
|
30
|
30
|
777
|
-
|
-
|
2
|
2
|
-
|
35
|
73
|
75
|
Total Other
|
740
|
977
|
1,283
|
887
|
1,086
|
1,352
|
1,982
|
2,081
|
Total silver ounces sold
|
4,067
|
3,175
|
2,965
|
4,437
|
3,749
|
4,935
|
5,234
|
5,848
|
Palladium ounces sold
|
|
|
|
|
|
|
|
|
Stillwater 3
|
4,774
|
3,339
|
4,242
|
3,392
|
2,946
|
3,396
|
4,227
|
3,378
|
Cobalt pounds sold
|
|
|
|
|
|
|
|
|
Voisey's Bay
|
309
|
288
|
198
|
265
|
323
|
187
|
115
|
225
|
GEOs sold 4
|
143,184
|
155,059
|
111,935
|
129,734
|
109,293
|
128,662
|
125,053
|
154,737
|
Cumulative payable units
PBND 5
|
|
|
|
|
|
|
|
|
Gold ounces
|
87,542
|
91,092
|
98,715
|
72,916
|
77,377
|
70,562
|
74,053
|
67,529
|
Silver ounces
|
2,347
|
1,787
|
1,469
|
1,777
|
2,531
|
2,013
|
2,481
|
2,694
|
Palladium ounces
|
6,198
|
6,666
|
5,607
|
6,122
|
5,751
|
5,098
|
5,041
|
6,267
|
Cobalt pounds
|
360
|
356
|
377
|
251
|
285
|
258
|
403
|
280
|
GEO 4
|
119,968
|
117,293
|
120,864
|
98,039
|
111,216
|
97,934
|
107,718
|
103,465
|
Inventory on hand
|
|
|
|
|
|
|
|
|
Cobalt pounds
|
-
|
88
|
155
|
310
|
398
|
633
|
556
|
582
|
1) All figures in thousands except gold and palladium ounces
sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and
palladium interests.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $2,000 per ounce gold;
$23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2024.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of
Operations
The operating results of the
Company's reportable operating segments are summarized in the
tables and commentary below.
Three
Months Ended March 31, 2024
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'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
|
61,622
|
56,841
|
$
|
2,073
|
$
|
425
|
$
|
393
|
$
|
117,851
|
$
|
71,396
|
$
|
94,050
|
$
|
2,659,099
|
Sudbury 4
|
7,049
|
4,129
|
|
2,049
|
|
400
|
|
1,145
|
|
8,461
|
|
2,081
|
|
6,814
|
|
257,757
|
Constancia
|
13,897
|
20,123
|
|
2,073
|
|
420
|
|
316
|
|
41,723
|
|
26,910
|
|
33,263
|
|
73,912
|
San Dimas
|
7,542
|
7,933
|
|
2,073
|
|
631
|
|
279
|
|
16,448
|
|
9,237
|
|
11,445
|
|
142,512
|
Stillwater
|
2,637
|
2,355
|
|
2,073
|
|
372
|
|
510
|
|
4,883
|
|
2,806
|
|
4,008
|
|
210,267
|
Other 5
|
623
|
638
|
|
2,073
|
|
374
|
|
527
|
|
1,323
|
|
748
|
|
1,084
|
|
892,983
|
|
93,370
|
92,019
|
$
|
2,072
|
$
|
439
|
$
|
404
|
$
|
190,689
|
$
|
113,178
|
$
|
150,664
|
$
|
4,236,530
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,643
|
1,839
|
$
|
23.74
|
$
|
4.50
|
$
|
4.06
|
$
|
43,650
|
$
|
27,901
|
$
|
35,375
|
$
|
268,758
|
Antamina
|
806
|
762
|
|
23.74
|
|
4.68
|
|
7.06
|
|
18,088
|
|
9,147
|
|
14,523
|
|
514,154
|
Constancia
|
640
|
726
|
|
23.74
|
|
6.20
|
|
6.24
|
|
17,236
|
|
8,200
|
|
12,734
|
|
175,049
|
Other 6
|
1,387
|
740
|
|
23.89
|
|
4.15
|
|
4.16
|
|
17,684
|
|
11,539
|
|
15,819
|
|
603,933
|
|
5,476
|
4,067
|
$
|
23.77
|
$
|
4.77
|
$
|
5.03
|
$
|
96,658
|
$
|
56,787
|
$
|
78,451
|
$
|
1,561,894
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
4,463
|
4,774
|
$
|
980
|
$
|
182
|
$
|
445
|
$
|
4,677
|
$
|
1,683
|
$
|
3,808
|
$
|
218,542
|
Platreef
|
-
|
-
|
|
n.a.
|
|
n.a.
|
|
n.a.
|
|
-
|
|
-
|
|
-
|
|
78,786
|
|
4,463
|
4,774
|
$
|
980
|
$
|
182
|
$
|
445
|
$
|
4,677
|
$
|
1,683
|
$
|
3,808
|
$
|
297,328
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9,451
|
Platreef
|
-
|
-
|
|
n.a.
|
|
n.a.
|
|
n.a.
|
|
-
|
|
-
|
|
-
|
|
57,564
|
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
67,015
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's Bay
|
240
|
309
|
$
|
15.49
|
$
|
2.96
|
$
|
12.77
|
$
|
4,782
|
$
|
(73)
|
$
|
7,006
|
$
|
348,000
|
Operating results
|
|
|
|
|
|
|
|
$
|
296,806
|
$
|
171,575
|
$
|
239,929
|
$
|
6,510,767
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(10,464)
|
$
|
(15,958)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(1,281)
|
|
(11,129)
|
|
|
Donations and community
investments
|
|
|
|
|
|
|
|
|
|
|
(1,570)
|
|
(1,373)
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,442)
|
|
(1,125)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
7,196
|
|
9,152
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
27
|
|
(116)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(7,534)
|
$
|
(20,549)
|
$
|
669,688
|
|
|
|
|
|
|
|
|
|
|
|
$
|
164,041
|
$
|
219,380
|
$
|
7,180,455
|
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of
this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
5) Other gold interests comprised of the operating Marmato gold
interest as well as the non-operating Minto, Copper World, Santo
Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos,
Platreef, Curraghinalt and Kudz Ze Kayah gold interests.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests
as well as the non-operating Stratoni, Aljustrel, Minto,
Pascua-Lama, Copper World, Navidad, Blackwater, Curipamba, Mineral
Park and Kudz Ze Kayah silver interests.
On a gold equivalent basis, results
for the Company for the three months ended March 31, 2024 were as
follows:
Three
Months Ended March 31, 2024
|
|
Ounces
Produced 1
|
Ounces
Sold
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 2
|
Cash Operating Margin
($'s Per Ounce) 3
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
4
|
160,133
|
143,184
|
$ 2,073
|
$ 430
|
$
1,643
|
$ 445
|
$
1,198
|
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) Refer to discussion on non-IFRS measure (iii) at the end of
this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of
this press release.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $2,000 per ounce gold;
$23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2024.
Three
Months Ended March 31, 2023
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'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
|
43,677
|
35,966
|
$
|
1,904
|
$
|
420
|
$
|
330
|
$
|
68,475
|
$
|
41,471
|
$
|
53,355
|
$
|
2,371,378
|
Sudbury 4
|
6,203
|
4,368
|
|
1,904
|
|
400
|
|
1,025
|
|
8,317
|
|
2,095
|
|
6,346
|
|
278,941
|
Constancia
|
6,905
|
6,579
|
|
1,904
|
|
416
|
|
316
|
|
12,526
|
|
7,710
|
|
9,788
|
|
93,506
|
San Dimas
|
10,754
|
10,651
|
|
1,904
|
|
624
|
|
260
|
|
20,279
|
|
10,865
|
|
13,629
|
|
153,101
|
Stillwater
|
1,960
|
2,094
|
|
1,904
|
|
334
|
|
510
|
|
3,987
|
|
2,220
|
|
3,288
|
|
214,783
|
Other 5
|
3,520
|
2,947
|
|
1,904
|
|
1,385
|
|
86
|
|
5,612
|
|
1,278
|
|
1,155
|
|
525,338
|
|
73,019
|
62,605
|
$
|
1,904
|
$
|
496
|
$
|
360
|
$
|
119,196
|
$
|
65,639
|
$
|
87,561
|
$
|
3,637,047
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,076
|
1,483
|
$
|
22.84
|
$
|
4.43
|
$
|
4.06
|
$
|
33,872
|
$
|
21,276
|
$
|
27,303
|
$
|
287,647
|
Antamina
|
872
|
814
|
|
22.84
|
|
4.55
|
|
7.06
|
|
18,594
|
|
9,142
|
|
14,888
|
|
539,623
|
Constancia
|
552
|
366
|
|
22.84
|
|
6.14
|
|
6.24
|
|
8,353
|
|
3,825
|
|
6,107
|
|
190,664
|
Other 6
|
1,634
|
1,086
|
|
22.87
|
|
5.96
|
|
2.53
|
|
24,859
|
|
15,637
|
|
20,047
|
|
450,412
|
|
5,134
|
3,749
|
$
|
22.85
|
$
|
5.07
|
$
|
4.48
|
$
|
85,678
|
$
|
49,880
|
$
|
68,345
|
$
|
1,468,346
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
3,705
|
2,946
|
$
|
1,607
|
$
|
294
|
$
|
408
|
$
|
4,735
|
$
|
2,666
|
$
|
3,870
|
$
|
225,609
|
Platinum
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marathon
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
9,440
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's Bay
|
124
|
323
|
$
|
15.04
|
$
|
3.30⁷
|
$
|
13.85
|
$
|
4,856
|
$
|
(684)
|
$
|
4,485
|
$
|
356,447
|
Operating results
|
|
|
|
|
|
|
|
$
|
214,465
|
$
|
117,501
|
$
|
164,261
|
$
|
5,696,889
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
$
|
(10,099)
|
$
|
(13,836)
|
|
|
Share based
compensation
|
|
|
|
|
|
|
|
|
|
|
(7,397)
|
|
(16,675)
|
|
|
Donations and community
investments
|
|
|
|
|
|
|
|
|
|
|
(1,378)
|
|
(1,408)
|
|
|
Finance costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,378)
|
|
(1,070)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
7,562
|
|
7,176
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
6,580
|
|
(3,344)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(6,110)
|
$
|
(29,157)
|
$
|
1,208,590
|
|
|
|
|
|
|
|
|
|
|
|
$
|
111,391
|
$
|
135,104
|
$
|
6,905,479
|
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of
this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
5) Other gold interests are comprised of the operating Minto and
Marmato gold interests as well as the non-operating 777, Copper
World, Santo Domingo, Fenix, Blackwater, Marathon, Curipamba and
Goose gold interests. On June 22, 2022, Hudbay announced that
mining activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato
silver interests, the non-operating Loma de La Plata, Stratoni,
Pascua-Lama, Copper World, Blackwater and Curipamba silver
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine. On September 12, 2023, it was
announced that the production of zinc and lead concentrates at
Aljustrel will be halted from September 24, 2023 until the second
quarter of 2025.
7) Cash cost per pound of cobalt sold during the first quarter of
2023 was net of a previously recorded inventory write-down of $1
million, resulting in a decrease of $3.18 per pound of cobalt
sold.
On a gold equivalent basis, results
for the Company for the three months ended March 31, 2023 were as
follows:
Three
Months Ended March 31, 2023
|
|
Ounces
Produced 1
|
Ounces
Sold
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 2
|
Cash Operating Margin
($'s Per Ounce) 3
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
4
|
134,730
|
109,293
|
$ 1,962
|
$ 475
|
$
1,487
|
$ 412
|
$
1,075
|
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) Refer to discussion on non-IFRS measure (iii) at the end of
this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of
this press release.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $2,000 per ounce gold;
$23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2024.
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
March 31
|
(in thousands, except for per share
amounts)
|
|
2024
|
|
2023
|
Net earnings
|
|
$
|
164,041
|
|
$
|
111,391
|
Add back (deduct):
|
|
|
|
|
|
|
(Gain) loss on fair value
adjustment of share purchase warrants held
|
|
|
(183)
|
|
|
(175)
|
Income tax (expense) recovery
recognized in the Statement of OCI
|
|
|
(96)
|
|
|
(3,954)
|
Income tax recovery related to
prior year disposal of Mineral Stream Interest
|
|
|
-
|
|
|
(2,672)
|
Other
|
|
|
(173)
|
|
|
(159)
|
Adjusted net earnings
|
|
$
|
163,589
|
|
$
|
104,431
|
Divided by:
|
|
|
|
|
|
|
Basic weighted average number of
shares outstanding
|
|
|
453,094
|
|
|
452,370
|
Diluted weighted average number of
shares outstanding
|
|
|
453,666
|
|
|
453,159
|
Equals:
|
|
|
|
|
|
|
Adjusted earnings per share -
basic
|
|
$
|
0.361
|
|
$
|
0.231
|
Adjusted earnings per share -
diluted
|
|
$
|
0.361
|
|
$
|
0.230
|
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
March 31
|
(in thousands, except for per share
amounts)
|
|
2024
|
|
2023
|
Cash generated by operating
activities
|
|
$
|
219,380
|
|
$
|
135,104
|
Divided by:
|
|
|
|
|
|
|
Basic weighted average number of
shares outstanding
|
|
|
453,094
|
|
|
452,370
|
Diluted weighted average number of
shares outstanding
|
|
|
453,666
|
|
|
453,159
|
Equals:
|
|
|
|
|
|
|
Operating cash flow per share -
basic
|
|
$
|
0.484
|
|
$
|
0.299
|
Operating cash flow per share -
diluted
|
|
$
|
0.484
|
|
$
|
0.298
|
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
March 31
|
(in thousands, except for gold and
palladium ounces sold and per unit amounts)
|
|
2024
|
|
2023
|
Cost of sales
|
|
$
|
125,231
|
|
$
|
96,964
|
Less: depletion
|
|
|
(63,676)
|
|
|
(45,000)
|
Cash cost of sales
|
|
$
|
61,555
|
|
$
|
51,964
|
Cash cost of sales is comprised
of:
|
|
|
|
|
|
|
Total cash cost of gold
sold
|
|
$
|
40,362
|
|
$
|
31,035
|
Total cash cost of silver
sold
|
|
|
19,411
|
|
|
18,997
|
Total cash cost of palladium
sold
|
|
|
869
|
|
|
866
|
Total cash cost of cobalt
sold¹
|
|
|
913
|
|
|
1,066
|
Total cash cost of
sales
|
|
$
|
61,555
|
|
$
|
51,964
|
Divided by:
|
|
|
|
|
|
|
Total gold ounces sold
|
|
|
92,019
|
|
|
62,605
|
Total silver ounces
sold
|
|
|
4,067
|
|
|
3,749
|
Total palladium ounces
sold
|
|
|
4,774
|
|
|
2,946
|
Total cobalt pounds
sold
|
|
|
309
|
|
|
323
|
Equals:
|
|
|
|
|
|
|
Average cash cost of gold (per
ounce)
|
|
$
|
439
|
|
$
|
496
|
Average cash cost of silver (per
ounce)
|
|
$
|
4.77
|
|
$
|
5.07
|
Average cash cost of palladium
(per ounce)
|
|
$
|
182
|
|
$
|
294
|
Average cash cost of cobalt (per
pound)
|
|
$
|
2.96
|
|
$
|
3.30
|
1) Cash cost per pound of
cobalt sold during the first quarter of 2023 was net of a
previously recorded inventory write-down of $1 million, resulting
in a decrease of $3.18 per pound of cobalt sold.
iv. Cash
operating margin is calculated by adding back depletion to the
gross margin. Cash operating margin on a per ounce or per pound
basis is calculated by dividing the cash operating margin by the
number of ounces or pounds sold during the period. The Company
presents cash operating margin as management and certain investors
use this information to evaluate the Company's performance in
comparison to other companies in the precious metal mining industry
who present results on a similar basis as well as to evaluate the
Company's ability to generate cash flow.
The following table provides a
reconciliation of cash operating margin.
|
Three
Months Ended
March 31
|
(in thousands, except for gold and
palladium ounces sold and per unit amounts)
|
|
2024
|
|
2023
|
Gross margin
|
|
$
|
171,575
|
|
$
|
117,501
|
Add back: depletion
|
|
|
63,676
|
|
|
45,000
|
Cash operating margin
|
|
$
|
235,251
|
|
$
|
162,501
|
Cash operating margin is comprised
of:
|
|
|
|
|
|
|
Total cash operating margin of
gold sold
|
|
$
|
150,327
|
|
$
|
88,161
|
Total cash operating margin of
silver sold
|
|
|
77,247
|
|
|
66,681
|
Total cash operating margin of
palladium sold
|
|
|
3,808
|
|
|
3,869
|
Total cash operating margin of
cobalt sold
|
|
|
3,869
|
|
|
3,790
|
Total cash operating
margin
|
|
$
|
235,251
|
|
$
|
162,501
|
Divided by:
|
|
|
|
|
|
|
Total gold ounces sold
|
|
|
92,019
|
|
|
62,605
|
Total silver ounces
sold
|
|
|
4,067
|
|
|
3,749
|
Total palladium ounces
sold
|
|
|
4,774
|
|
|
2,946
|
Total cobalt pounds
sold
|
|
|
309
|
|
|
323
|
Equals:
|
|
|
|
|
|
|
Cash operating margin per gold
ounce sold
|
|
$
|
1,633
|
|
$
|
1,408
|
Cash operating margin per silver
ounce sold
|
|
$
|
19.00
|
|
$
|
17.78
|
Cash operating margin per
palladium ounce sold
|
|
$
|
798
|
|
$
|
1,313
|
Cash operating margin per cobalt
pound sold
|
|
$
|
12.53
|
|
$
|
11.74
|
These non-IFRS measures do not have
any standardized meaning prescribed by IFRS, and other companies
may calculate these measures differently. The presentation of
these non-IFRS measures is intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. For more detailed information, please refer to Wheaton's
MD&A available on the Company's website at www.wheatonpm.com
and posted on SEDAR+ at www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTS
This press release contains
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities legislation concerning the business, operations
and financial performance of Wheaton and, in some instances, the
business, mining operations and performance of Wheaton's PMPA
counterparties. Forward-looking statements, which are all
statements other than statements of historical fact, include, but
are not limited to, statements with respect to:
· the
future price of commodities;
· the
estimation of future production from the mineral stream interests
and mineral royalty interests currently owned by the Company (the
"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 Mining
Operations;
· the
payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance
with PMPAs and the receipt by the Company of precious metals and
cobalt production or other payments in respect of the applicable
Mining Operations under PMPAs;
· 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, including any
acceleration of payments;
· the
costs of future production;
· the
estimation of produced but not yet delivered ounces;
· the
future sales of Common Shares under, the amount of net proceeds
from, and the use of the net proceeds from, the at-the-market
equity program;
· continued listing of the Common Shares on the LSE, NYSE and
TSX;
· any
statements as to future dividends;
· the
ability to fund outstanding commitments and the ability to continue
to acquire accretive PMPAs;
· 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, including the implementation
of a 15% global minimum tax, and the impact of the CRA
Settlement;
· possible CRA 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
associated with fluctuations in the price of commodities (including
Wheaton's ability to sell its precious metals or cobalt production
at acceptable prices or at all);
· risks
related to the Mining Operations (including fluctuations in the
price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which
the Mining Operations are located, actual results of mining, risks
associated with exploration, development, operating, expansion and
improvement at the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters
as Mining Operations plans continue to be refined);
· 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 owners and operators of the Mining
Operations as the basis for its analyses, forecasts and assessments
relating to its own business;
· risks
related to the uncertainty in the accuracy of mineral reserve and
mineral resource estimation;
· risks
related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the
ability of the companies with which the Company has PMPAs to
perform their obligations under those PMPAs in the event of a
material adverse effect on the results of operations, financial
condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration
potential;
· risks
relating to production estimates from Mining Operations, including
anticipated timing of the commencement of production by certain
Mining Operations;
· Wheaton's interpretation of, or compliance with, or
application of, tax laws and regulations or accounting policies and
rules, being found to be incorrect or the tax impact to the
Company's business operations being materially different than
currently contemplated;
· 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;
· risks
in 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);
· risks
related to any potential amendments to Canada's transfer pricing
rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6,
2023;
· risks
relating to the implementation of a 15% global minimum tax,
including the Federal budget bill, C-69, which contains the GMTA
reflecting application of global minimum tax to in-scope companies
for fiscal years beginning on or after December 31, 2023 and the
legislation enacted in Luxembourg that applies to the income of the
Company's Luxembourg subsidiary as of January 1, 2024 and the
Company and its other subsidiaries from January 1, 2025;
· counterparty credit and liquidity risks;
· mine
operator and counterparty concentration risks;
· indebtedness and guarantees risks;
· hedging risk;
· competition in the streaming industry risk;
· risks
relating to security over underlying assets;
· risks
relating to third-party PMPAs;
· risks
relating to revenue from royalty interests;
· risks
related to Wheaton's acquisition strategy;
· risks
relating to third-party rights under PMPAs;
· risks
relating to future financings and security issuances;
· risks
relating to unknown defects and impairments;
· risks
related to governmental regulations;
· risks
related to international operations of Wheaton and the Mining
Operations;
· risks
relating to exploration, development, operating, expansions and
improvements at the Mining Operations;
· risks
related to environmental regulations;
· the
ability of Wheaton and the Mining Operations to obtain and maintain
necessary licenses, permits, approvals and rulings;
· the
ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting
requirements;
· lack
of suitable supplies, infrastructure and employees to support the
Mining Operations;
· risks
related to underinsured 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 related to title and indigenous rights with
respect to the mineral properties of the Mining
Operations;
· the
ability of Wheaton and the Mining Operations to obtain adequate
financing;
· the
ability of the Mining Operations to complete permitting,
construction, development and expansion;
· challenges related to global financial conditions;
· risks
associated with environmental, social and governance
matters;
· risks
related to fluctuations in commodity prices of metals produced from
the Mining Operations other than precious metals or
cobalt;
· risks
related to claims and legal proceedings against Wheaton or the
Mining Operations;
· risks
related to the market price of the Common Shares of
Wheaton;
· the
ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and
experienced personnel;
· risks
related to interest rates;
· risks
related to the declaration, timing and payment of
dividends;
· risks
related to access to confidential information regarding Mining
Operations;
· risks
associated with multiple listings of the Common Shares on the LSE,
NYSE and TSX;
· risks
associated with a possible suspension of trading of Common
Shares;
· risks
associated with the sale of Common Shares under the at-the-market
equity program, including the amount of any net proceeds from such
offering of Common Shares and the use of any such
proceeds;
· equity
price risks related to Wheaton's holding of long‑term investments
in other companies;
· risks
relating to activist shareholders;
· risks
relating to reputational damage;
· risks
relating to expression of views by industry analysts;
· risks
related to the impacts of climate change and the transition to a
low-carbon economy;
· risks
associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining
Operations;
· risks
related to ensuring the security and safety of information systems,
including cyber security risks;
· risks
relating to generative artificial intelligence;
· risks
relating to compliance with anti-corruption and anti-bribery
laws;
· risks
relating to corporate governance and public disclosure
compliance;
· risks
of significant impacts on Wheaton or the Mining Operations as a
result of an epidemic or pandemic;
· risks
related to the adequacy of internal control over financial
reporting; and
· other
risks discussed in the section entitled "Description of the
Business - Risk Factors" in Wheaton's Annual Information Form
available on SEDAR+ at www.sedarplus.ca and Wheaton's Form 40-F for the year ended December 31, 2022
on file with the U.S. Securities and Exchange Commission on EDGAR
(the "Disclosure").
Forward-looking statements are
based on assumptions management currently believes to be
reasonable, including (without limitation):
· 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
public disclosure and other information Wheaton receives from the
owners and operators of the Mining Operations is accurate and
complete;
· that
the production estimates from Mining Operations 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
the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;
· that
Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;
· that
expectations regarding the resolution of legal and tax matters will
be achieved (including CRA audits involving the
Company);
· that
Wheaton has properly considered the application of Canadian tax
laws to its structure and operations;
· that
Wheaton has filed its tax returns and paid applicable taxes in
compliance with Canadian tax laws;
· that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there has been no material change in
the Company's facts or change in law or jurisprudence);
· that
Wheaton's assessment of the tax exposure and impact on the Company
and its subsidiaries of the implementation of a 15% global minimum
tax is accurate;
· that
any sale of Common Shares under the at-the-market equity program
will not have a significant impact on the market price of the
Common Shares and that the net proceeds of sales of Common Shares,
if any, will be used as anticipated;
· that
the trading of the 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;
· the
estimate of the recoverable amount for any PMPA with an indicator
of impairment;
· that
neither Wheaton nor the Mining Operations will suffer significant
impacts as a result of an epidemic or pandemic; and
· such
other assumptions and factors as set out in the
Disclosure.
There can be no assurance that
forward-looking statements will prove to be accurate and even if
events or results described in the forward-looking statements are
realized or substantially realized, there can be no assurance that
they will have the expected consequences to, or effects on,
Wheaton. Readers should not place undue reliance on forward-looking
statements and are cautioned that actual outcomes may vary. The
forward-looking statements included herein are for the purpose of
providing readers with information to assist them in understanding
Wheaton's expected financial and operational performance and may
not be appropriate for other purposes. Any forward-looking
statement speaks only as of the date on which it is made, reflects
Wheaton's management's current beliefs based on current information
and will not be updated except in accordance with applicable
securities laws. Although Wheaton has attempted to identify
important factors that could cause actual results, level of
activity, performance or achievements to differ materially from
those contained in forward‑looking statements, there may be other
factors that cause results, level of activity, performance or
achievements not to be as anticipated, estimated or
intended.
Cautionary Language Regarding Reserves and
Resources
For further information on Mineral
Reserves and Mineral Resources and on Wheaton more generally,
readers should refer to Wheaton's Annual Information Form for the
year ended December 31, 2023, which was filed on March 28, 2024 and
other continuous disclosure documents filed by Wheaton since
January 1, 2024, available on SEDAR+ at www.sedarplus.ca. Wheaton's
Mineral Reserves and Mineral Resources are subject to the
qualifications and notes set forth therein. Mineral Resources,
which are not Mineral Reserves, do not have demonstrated economic
viability.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred
Resources: The information contained
herein has been prepared in accordance with the requirements of the
securities laws in effect in Canada, which differ from the
requirements of United States securities laws. The Company reports
information regarding mineral properties, mineralization and
estimates of mineral reserves and mineral resources in accordance
with Canadian reporting requirements which are governed by, and
utilize definitions required by, Canadian National Instrument
43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101")
and the Canadian Institute of Mining, Metallurgy and Petroleum (the
"CIM") - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Standards"). These definitions differ from the definitions adopted
by the United States Securities and Exchange Commission ("SEC")
under the United States Securities Act of 1933, as amended (the
"Securities Act") which are applicable to U.S. companies.
Accordingly, there is no assurance any mineral reserves or mineral
resources that the Company may report as "proven mineral reserves",
"probable mineral reserves", "measured mineral resources",
"indicated mineral resources" and "inferred mineral resources"
under NI 43-101 would be the same had the Company prepared the
reserve or resource estimates under the standards adopted by the
SEC. Accordingly, information contained herein that describes
Wheaton's mineral deposits may not be comparable to similar
information made public by U.S. companies subject to reporting and
disclosure requirements under the United States federal securities
laws and the rules and regulations thereunder. United States
investors are urged to consider closely the disclosure in Wheaton's
Form 40-F, a copy of which may be obtained from Wheaton or
from https://www.sec.gov/edgar.shtml.
End Notes