SECOND QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Second Quarter 2024 Results and Record Operating Cash Flow for the First Half of 2024
August 7, 2024 Vancouver, British Columbia Designated News Release SECOND QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Second Quarter 2024 Results and Record Operating Cash Flow for the First Half of 2024
"Wheaton once again delivered strong results in the second quarter, generating $234 million in operating cash flow, resulting in record cash flows of over $450 million for the first half of the year. With year-to-date gold equivalent production of approximately 305,000 ounces, we are well on track to achieve our 2024 production guidance of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals." In addition, we were ranked among the top 10 companies on Corporate Knights’ annual list of the Best 50 Corporate Citizens in Canada and published our annual sustainability and climate change reports. Corporate Knights’ recognition highlights our leadership in sustainability and commitment to creating value for all stakeholders. Our performance in the first half of 2024 supports our belief that the strength of our organic growth profile and high-quality, long-life portfolio, combined with favorable commodity price trends, firmly positions Wheaton as a premier choice for precious metals exposure.”
Solid Financial Results and Strong Balance Sheet
- Second quarter of 2024: $299 million in revenue, $234 million in operating cash flow, $122 million in net earnings and $150 million in adjusted net earnings1 and, declared a quarterly dividend1 of $0.155 per common share.
- Balance Sheet: cash balance of $540 million, no debt, and an undrawn $2 billion revolving credit facility as at June 30, 2024 after making total upfront cash payments of $45 million relative to mineral stream and royalty interests in the quarter.
- Undrawn $2 billion revolving credit facility extended by an additional year with the facility now maturing on June 25, 2029.
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 curves2,4.
- Attributable gold equivalent production3 (“GEOs”) of 147,100 ounces in the second quarter of 2024 and 305,800 for the first six months of 2024, with year-to-date production representing an increase of 13% relative to the comparable period of the prior year due primarily to the mill throughput expansion at Salobo.
- Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs3 maintained, with forecasted sector-leading growth of over 800,000 GEOs3 by 2028, and average annual forecast attributable production growing to over 850,000 GEOs3 in years 2029 to 2033.
- Further de-risked forecast growth profile as construction activities advanced at the Blackwater, Goose, Platreef, Mineral Park and Marmato Lower Mine Projects, all of which are expected to be producing within the next 16 months.
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Leadership in Sustainability
- Recognized among Corporate Knights’ 2024 100 Most Sustainable Corporations in the World, and Best 50 Corporate Citizens in Canada.
- Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI and Prime rated by ISS.
- Published our second annual Climate Change Report detailing how Wheaton is addressing climate change risks and opportunities, as well as potential climate-related impacts.
- Published our fifth annual Sustainability Report highlighting our commitment to responsible business practices and providing a comprehensive review of Wheaton's performance in environmental, social and governance topics.
Operational Overview
| (all figures in US dollars unless otherwise noted) | Q2 2023 Change | YTD 2023 Change | ||||
|---|---|---|---|---|---|---|
| Q2 2024 | YTD 2024 | |||||
| Units produced Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 3 Units sold Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 3 Change in PBND and Inventory Gold equivalent ounces 3 | 83,180 2.2 % 4,441 14.0 % 3,880 11.8 % 152 70.8 % 137,176 7.2 % 75,294 2.7 % 4,437 (13.8)% 3,392 26.8 % 265 (66.8)% 129,734 (4.4)% (13,750) (23,365) | 156,199 13.3 % 9,575 10.1 % 7,585 16.0 % 276 80.8 % 271,906 12.5 % 137,899 22.8 % 8,186 (3.6)% 6,338 43.2 % 588 (32.5)% 239,027 11.8 % (1,994) (12,283) | ||||
| 84,993 | 176,932 | |||||
| 5,062 | 10,538 | |||||
| 4,338 | 8,801 | |||||
| 259 | 499 | |||||
| 147,059 | 305,761 | |||||
| 77,326 | 169,345 | |||||
| 3,823 | 7,890 | |||||
| 4,301 | 9,075 | |||||
| 88 | 397 | |||||
| 124,009 | 267,193 | |||||
| 9,615 | 10,289 | |||||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 | $ | 299,064 | $ 264,972 12.9 % $ 141,448 (13.5)% $ 0.312 (13.5)% $ 142,584 4.9 % $ 0.315 4.8 % $ 202,376 15.8 % $ 0.447 15.7 % | $ | 595,870 | $ 479,437 24.3 % $ 252,839 13.3 % $ 0.559 13.1 % $ 247,015 16.8 % $ 0.546 16.5 % $ 337,482 34.5 % $ 0.746 34.2 % |
| $ | 122,317 | $ | 286,358 | |||
| $ | 0.270 | $ | 0.632 | |||
| $ | 149,565 | $ | 288,398 | |||
| $ | 0.330 | $ | 0.636 | |||
| $ | 234,393 | $ | 453,773 | |||
| $ | 0.517 | $ | 1.001 |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
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Financial Review Revenues
Revenue in the second quarter of 2024 was $299 million (61% gold, 37% silver, 1% palladium and 1% cobalt), with the $34 million increase relative to the prior period quarter being primarily due to an 18% increase in the average realized gold equivalent³ price; partially offset by a 4% decrease in the number of GEOs³ sold.
Revenue was $596 million in the six months ended June 30, 2024, representing a $116 million increase from the comparable period of the previous year due primarily to an 11% increase in the average realized gold equivalent³ price, resulting from relative changes in the GEOs³ produced but not yet delivered; and a 12% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the second quarter of 2024 were $436 per GEO³ as compared to $452 in the second quarter of 2023. This resulted in a cash operating margin¹ of $1,976 per GEO³ sold, an increase of 24% as compared with the second quarter of 2023, a result of the higher realized price per ounce coupled with the lower average cash costs.
Average cash costs¹ for the six months ended June 30, 2024 were $433 per GEO³ as compared to $463 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,797 per GEO³ sold, a 16% increase from the comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the second quarter of 2024 amounted to $234 million, with the $32 million increase due primarily to the higher gross margin.
Operating cash flows for the six months ended June 30, 2024 amounted to $454 million, with the $116 million increase from the comparable period of the previous year being due primarily to the higher gross margin.
Balance Sheet (at June 30, 2024)
- Approximately $540 million of cash on hand
- The Company extended its existing undrawn $2 billion revolving term loan (the “Revolving Facility”) with its maturity date now June 25, 2029.
- During the second quarter of 2024, the Company made total upfront cash payments of $45 million relative to the mineral stream and royalty interests consisting of:
- $10 million relative to the Cangrejos PMPA;
- $25 million relative to the Mineral Park PMPA; and
- $10 million relative to the Mt Todd Royalty.
- During the second quarter of 2024, 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 June 20, 2024, Canada’s Global Minimum Tax Act (“GMTA”), received royal assent. The GMTA enacts the OECD Pillar Two model rules where in scope companies will be
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subject to a 15% GMT for fiscal years commencing on or after December 31, 2023. With the enactment of the GMTA on June 20, 2024, the income of the Company’s subsidiaries which operate in jurisdictions with a statutory tax rate of 0% is impacted by the GMTA and an amount of $51 million current tax expense associated with GMT was recorded for the period from January 1, 2024 to June 30, 2024. GMT accrued to December 31, 2024, is payable on or before June 30, 2026 (18 months following year-end).
Second Quarter Operating Asset Highlights
Salobo: In the second quarter of 2024, Salobo produced 63,200 ounces of attributable gold, an increase of approximately 15% relative to the second quarter of 2023, driven by higher throughput, with production from the third concentrator line commencing at the end of 2022. On April 24, 2024, Vale S.A. (“Vale”) reported the continued ramp-up at Salobo III, which reached 90% average throughput in the first quarter, as well as improved year over year operational performance at Salobo I and II. On July 25, 2024, Vale also reported that the Salobo III processing plant operations resumed in July, after being halted for 31 days due to a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355 kt has been maintained.
Peñasquito: In the second quarter of 2024, Peñasquito produced 2.3 million ounces of attributable silver, an increase of approximately 30% relative to the second quarter of 2023 primarily due to higher throughput, partially offset by lower grades.
Constancia: In the second quarter of 2024, Constancia produced 0.5 million ounces of attributable silver and 6,100 ounces of attributable gold, an increase of approximately 7% for silver production and a decrease of approximately 18% for gold production relative to the second quarter of 2023. The decrease in gold production was primarily the result of lower gold grades due largely to the planned stripping activity in the Pampacancha pit, which commenced in the second quarter and is expected to continue through the third quarter. As a result of the stripping activity, ore feed was supplemented with stockpiles during the second quarter, as per the original mine plan. Mill ore feed has now reverted to the typical blend of approximately one-third from Pampacancha and two-thirds from Constancia, which is expected to continue throughout 2024. The increase in silver production is primarily due to higher throughput and grades, partially offset by lower recoveries.
Stillwater: In the second quarter of 2024, the Stillwater mines produced 2,100 ounces of attributable gold and 4,300 ounces of attributable palladium, an increase of approximately 4% for gold and 12% for palladium relative to the second quarter of 2023, due primarily to higher throughput and grades.
Voisey’s Bay: In the second quarter of 2024, the Voisey's Bay mine produced 259,000 pounds of attributable cobalt, an increase of approximately 71% relative to the second 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 96% at the end of the second quarter, and that the main surface assets are completed and in operation. In the underground portion, Reid Brook activities are largely complete, with the powerhouse planned to be fully commissioned and linked to the grid by Q3 2024. The mine development at Eastern Deeps is now concluded, and 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.
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Other Gold: In the second quarter of 2024, total Other Gold attributable production was 600 ounces, a decrease of approximately 70% relative to the second quarter of 2023, primarily due to the closure of the Minto mine in May 2023.
Other Silver: In the second quarter of 2024, total Other Silver attributable production was 1.4 million ounces, an increase of approximately 5% relative to the second quarter of 2023. The increase from the comparable period of the prior year is primarily due to an 87% increase in production at Zinkgruvan as a result of higher throughput and grades, largely offset by the cessation of attributable ore mined at 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 July 30, 2024, Artemis Gold Inc. (“Artemis”) announced that overall construction was approximately 87% complete and that construction of the water management pond, excavation of the cutoff trench, and the earthworks and lining of the central water management pond were completed. Work on the tailings storage facility continues to progress well with increased productivity and material movements through the quarter. Equipment installation was a key focus area as well as installation of structural steel, conveyors, platework, pipework, and electrical infrastructure. Early pre-commissioning activities in the crushing area of the process facility are underway. Artemis also stated that the project remains on schedule for first gold pour in Q4 2024.
On July 22, 2024, Artemis announced that it had responded to a wildfire evacuation order by proactively removing all non-essential staff and contractors as of July 21, 2024. On July 26, 2024, Artemis announced the evacuation order has been lifted and began an expedient, staged return of employees and contractors to site. The mine site was not impacted by any wildfires.
Platreef Project: On July 31, 2024, Ivanhoe Mines Ltd. (“Ivanhoe”) reported that construction of Platreef’s Phase 1 concentrator was completed on schedule subsequent to the quarter. Cold commissioning has started, with water being fed through the concentrator, and construction of Platreef’s Shaft 2 headgear is approximately 60% complete. Work is well underway on the updated feasibility study to accelerate Platreef’s Phase 2 expansion, as well as the preliminary economic assessment of the previously announced Phase 3 expansion. Both studies are expected to be completed in the fourth quarter. A Phase 3 expansion to 10 Mtpa processing capacity is expected to rank Platreef as one of the world’s largest platinumgroup 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 on the Marmato Lower Mine expansion project, including the completion of the access road to the new processing facility area. Earthworks in the plant area will reportedly commence soon,
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and the contractor for the new portal and decline is fully mobilized and cutting of the portal face has commenced. On May 14, 2024, Aris reported that most of the mechanical equipment has been ordered and the access road has reached the portal level. On July 16, 2024, Aris further reported that the Lower Mine project is on track for first gold pour by the end of 2025, followed by an approximate six-month ramp-up period.
Curipamba Project: On June 17, 2024, Adventus Mining Corporation (“Adventus”) announced that the Ministry of Environment, Water and Energy Transition of the Government of Ecuador has granted Administrative Authorization over Public Hydric Domain for the Curipamba project. This key permit allows the Curipamba project to carry out planned construction activities in accordance with the technical requirements stipulated in the Water Resources Law. With this approval, Adventus noted that the last main step prior to the start of construction is the receipt of the final document outlining the transition from the medium scale exploration to exploitation phase.
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. On July 2, 2024, the Ontario Superior Court of Justice granted a final order approving the arrangement. The acquisition closed on July 31, 2024.
On August 6, 2024, Silvercorp announced a key milestone that the Ministry of Energy and Mines of the Government of Ecuador (“MEM”) has issued a Resolution of Change of Phase for the Curipamba project. The Resolution of Change of Phase advances the legal status of the project from the economic evaluation phase to the exploitation phase and allows for the start of construction and subsequent operation of the mine. The Change of Phase for a medium-scale project is equivalent to the Exploitation Agreement for large-scale mines in Ecuador.
Marathon Project: On July 31, 2024, Generation Mining Limited (“Gen Mining”) reported that the federal government has approved amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations (“Schedule 2”) which will allow for the construction of specific water management structures and operation of key infrastructure for the Marathon Project. Gen Mining also states that receipt of the few remaining provincial and federal approvals and permits required for construction is expected in the coming months.
On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization (“FAA”) for the Marathon project. The FAA, issued by Fisheries and Oceans Canada, approves Gen Mining’s plan to avoid, mitigate and offset impacts to fish and fish habitat related to the development of the project. This authorization represents the final federal approval required to commence construction of the tailings storage facility and water management structures. The Marathon project requires three remaining provincial approvals to be issued by the Ministry of the Environment, Conservation and Parks and the Ministry of Natural Resources. These are expected in the coming months. Following which, the Marathon project will have all of the key government permits and approvals required for construction.
Santo Domingo: On July 31, 2024, Capstone Copper Corp. (“Capstone”) published the results of an updated feasibility study for the Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-year mine life supported
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by higher mineral reserve estimates. The report indicates that total gold production is expected to average 35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per year. Capstone has reported that with construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly announced twoyear, $25 million exploration program at Mantoverde, aimed at supporting the two future processing centers between Mantoverde and Santo Domingo.
Curraghinalt Project: On May 3, 2024, 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.
Sustainability
Annual Sustainability Report & Climate Change Report
Wheaton published its fifth annual sustainability report on May 23, 2024, and its second annual climate change report on June 24, 2024. The reports are part of Wheaton’s voluntary suite of sustainability disclosures demonstrating the Company’s commitment to responsible business practices and ESG performance.
ESG Ratings & Awards
On June 26, 2024, Wheaton was named as one of Corporate Knights' 2024 Best 50 Corporate Citizens in Canada ranking ninth on the list. With a significant portion of the score linked to sustainable revenue, this metric underscores the exceptional quality of Wheaton's mining partners and the Company’s rigorous due diligence process.
Community Investment Program
- Wheaton’s Partner Community Investment Program continues to support initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina, Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the communities influenced by the mines and provide vital services and programs including educational resources, health and dental programs, poverty reduction initiatives, entrepreneurial opportunities, and various social and environmental programs.
- Coast Mental Health Foundation’s Courage To Come Back Awards presented by Wheaton raised over CA$1.7 million in support of community-based services for people living with mental illness in British Columbia.
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.
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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 guidance6.
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 Thursday, August 8, 2024, starting at 5:00am PT (8:00 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: 94107872
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until August 15, 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: 107872 # 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).
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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/corporategovernance/default.aspx.
For further information:
Investor Contact
Emma Murray Vice President, Investor Relations Tel: 1-844-288-9878 Email: [email protected]
Media Contact
Simona Antolak Vice President, Communications & Corporate Affairs Tel: 604-639-9870 Email: [email protected]
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) | 2023 | 2023 | ||||
| 2024 | 2024 | |||||
| Sales | $ 264,972 | $ 479,437 | ||||
| $ | 299,064 | $ | 595,870 | |||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 58,642 54,474 | $ 110,606 99,473 | ||||
| $ | 54,007 | $ | 115,562 | |||
| 58,865 | 122,541 | |||||
| Total cost of sales | $ 113,116 | $ 210,079 | ||||
| $ | 112,872 | $ | 238,103 | |||
| Gross margin General and administrative expenses Share based compensation Donations and community investments | $ 151,856 10,216 4,484 1,940 | $ 269,358 20,315 11,881 3,318 | ||||
| $ | 186,192 | $ | 357,767 | |||
| 10,241 | 20,705 | |||||
| 6,241 | 7,522 | |||||
| 703 | 2,273 | |||||
| Earnings from operations Gain on disposal of mineral stream interests Other income (expense) | $ 135,216 5,027 8,692 | $ 233,844 5,027 16,254 | ||||
| $ | 169,007 | $ | 327,267 | |||
| - | - | |||||
| 5,122 | 12,317 | |||||
| Earnings before finance costs and income taxes Finance costs | $ 148,935 1,352 | $ 255,125 2,731 | ||||
| $ | 174,129 | $ | 339,584 | |||
| 1,299 | 2,741 | |||||
| Earnings before income taxes Income tax expense (recovery) | $ 147,583 6,135 | $ 252,394 (445) | ||||
| $ | 172,830 | $ | 336,843 | |||
| 50,513 | 50,485 | |||||
| Net earnings | $ 141,448 | $ 252,839 | ||||
| $ | 122,317 | $ | 286,358 | |||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ 0.312 $ 0.312 452,892 453,575 | $ 0.559 $ 0.558 452,633 453,368 | ||||
| $ | 0.270 | $ | 0.632 | |||
| $ | 0.269 | $ | 0.631 | |||
| 453,430 | 453,262 | |||||
| 454,104 | 453,888 |
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Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | As at June 30 | As at December 31 2023 | |||
|---|---|---|---|---|---|
| 2024 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Cobalt inventory Income taxes receivable Other | $ 546,527 10,078 1,372 5,935 3,499 | ||||
| $ | 540,217 | ||||
| 9,654 | |||||
| - | |||||
| 4,544 | |||||
| 4,398 | |||||
| Total current assets | $ | 558,813 | $ 567,411 | ||
| Non-current assets Mineral stream interests Early deposit mineral stream interests Mineral royalty interests Long-term equity investments Property, plant and equipment Other | $ 6,122,441 47,093 13,454 246,678 7,638 26,470 | ||||
| $ | 6,487,552 | ||||
| 47,094 | |||||
| 35,527 | |||||
| 88,071 | |||||
| 7,752 | |||||
| 22,273 | |||||
| Total non-current assets | $ | 6,688,269 | $ 6,463,774 | ||
| Total assets | $ | 7,247,082 | $ 7,031,185 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current portion of performance share units Current portion of lease liabilities | $ 13,458 12,013 604 | ||||
| $ | 12,272 | ||||
| 8,099 | |||||
| 435 | |||||
| Total current liabilities | $ | 20,806 | $ 26,075 | ||
| Non-current liabilities Performance share units Lease liabilities Global minimum tax Deferred income taxes Pension liability | $ 9,113 5,625 - 232 4,624 | ||||
| $ | 5,660 | ||||
| 5,301 | |||||
| 50,510 | |||||
| 250 | |||||
| 4,883 | |||||
| Total non-current liabilities | $ | 66,604 | $ 19,594 | ||
| Total liabilities | $ | 87,410 | $ 45,669 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,777,323 (40,091) 3,248,284 | ||||
| $ | 3,796,172 | ||||
| (62,186) | |||||
| 3,425,686 | |||||
| Total shareholders' equity | $ | 7,159,672 | $ 6,985,516 | ||
| Total liabilities and shareholders' equity | $ | 7,247,082 | $ 7,031,185 |
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Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Six Months Ended June 30 June 30
| (US dollars in thousands - unaudited) | 2023 | 2023 | ||||
| 2024 | 2024 | |||||
| Operating activities Net earnings Adjustments for Depreciation and depletion Gain on disposal of mineral stream interest Interest expense Equity settled stock based compensation Performance share units - expense Performance share units - paid Pension expense Pension paid Income tax (recovery) expense (Gain) loss on fair value adjustment of share purchase warrants held Investment income recognized in net earnings Other Change in non-cash working capital | $ 141,448 54,857 (5,027) 36 1,859 2,625 - 291 (20) 6,135 280 (8,880) 418 1,685 | $ 252,839 100,247 (5,027) 53 3,402 8,479 (16,675) 458 (116) (445) 105 (16,028) 499 (387) | ||||
| $ | 122,317 | $ | 286,358 | |||
| 59,211 | 123,224 | |||||
| - | - | |||||
| 72 | 145 | |||||
| 1,655 | 3,253 | |||||
| 4,586 | 4,269 | |||||
| - | (11,129) | |||||
| 283 | 458 | |||||
| - | (43) | |||||
| 50,513 | 50,485 | |||||
| (197) | (380) | |||||
| (4,877) | (11,315) | |||||
| 482 | 400 | |||||
| (3,664) | (1,508) | |||||
| Cash generated from operations before income taxes and interest Income taxes paid Interest paid Interest received | $ | 230,381 | $ 195,707 (988) (15) 7,672 | $ | 444,217 | $ 327,404 (4,332) (33) 14,443 |
| (75) | (191) | |||||
| (73) | (148) | |||||
| 4,160 | 9,895 | |||||
| Cash generated from operating activities | $ 202,376 | $ 337,482 | ||||
| $ | 234,393 | $ | 453,773 | |||
| Financing activities Credit facility extension fees Share purchase options exercised Lease payments Dividends paid | $ (846) 1,134 (177) (131,091) | $ (846) 10,510 (379) (131,091) | ||||
| $ | (925) | $ | (925) | |||
| 8,348 | 12,164 | |||||
| (147) | (295) | |||||
| (139,124) | (139,124) | |||||
| Cash used for financing activities | $ (130,980) | $ (121,806) | ||||
| $ | (131,848) | $ | (128,180) | |||
| Investing activities Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Net proceeds on disposal of mineral stream interests Acquisition of long-term investments Proceeds on disposal of long-term investments Dividends received Other | $ (88,710) - - 46,400 (31) 202 917 (1,209) | $ (120,234) (750) - 46,400 (8,175) 202 917 (1,770) | ||||
| $ | (35,605) | $ | (486,507) | |||
| - | - | |||||
| (10,078) | (22,025) | |||||
| - | - | |||||
| - | (751) | |||||
| 177,088 | 177,088 | |||||
| 481 | 1,181 | |||||
| (193) | (789) | |||||
| Cash (used for) generated from investing activities | $ (42,431) | $ (83,410) | ||||
| $ | 131,693 | $ | (331,803) | |||
| Effect of exchange rate changes on cash and cash equivalents | $ 175 | $ 482 | ||||
| $ | (130) | $ | (100) | |||
| Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period | $ 29,140 799,697 | $ 132,748 696,089 | ||||
| $ | 234,108 | $ | (6,310) | |||
| 306,109 | 546,527 | |||||
| Cash and cash equivalents, end of period | $ 828,837 | $ 828,837 | ||||
| $ | 540,217 | $ | 540,217 |
- 12 -
Summary of Units Produced
| Q2 2023 Q1 2023 Q4 2022 Q3 2022 | |||||
|---|---|---|---|---|---|
| Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | ||
| Gold ounces produced ² Salobo Sudbury 3 Constancia San Dimas 4 Stillwater 5 Other Marmato Minto 6 | 54,804 43,677 37,939 44,212 5,818 6,203 5,270 3,437 7,444 6,905 10,496 7,196 11,166 10,754 10,037 11,808 2,017 1,960 2,185 1,833 639 457 533 542 1,292 3,063 2,567 3,050 | ||||
| 63,225 | 61,622 | 71,778 | 69,045 | ||
| 5,910 | 5,618 | 5,823 | 3,857 | ||
| 6,086 | 13,897 | 22,292 | 19,003 | ||
| 7,089 | 7,542 | 10,024 | 9,995 | ||
| 2,099 | 2,637 | 2,341 | 2,454 | ||
| 584 | 623 | 668 | 673 | ||
| - | - | - | - | ||
| Total Other | 584 | 623 | 668 | 673 | 1,931 3,520 3,100 3,592 |
| Total gold ounces produced | 83,180 73,019 69,027 72,078 | ||||
| 84,993 | 91,939 | 112,926 | 105,027 | ||
| Silver ounces produced 2 Peñasquito 7 Antamina Constancia Other Los Filos Zinkgruvan Neves-Corvo Aljustrel 8 Cozamin Marmato Yauliyacu 9 Minto 6 Total Other | 1,744 2,076 1,761 2,017 984 872 1,067 1,327 420 552 655 564 28 45 14 21 374 632 664 642 407 436 369 323 279 343 313 246 184 141 157 179 7 8 9 7 - - 261 463 14 29 33 33 1,293 1,634 1,820 1,914 | ||||
| 2,263 | 2,643 | 1,036 | - | ||
| 992 | 806 | 1,030 | 894 | ||
| 451 | 640 | 836 | 697 | ||
| 42 | 42 | 28 | 28 | ||
| 699 | 641 | 510 | 785 | ||
| 432 | 524 | 573 | 486 | ||
| - | - | - | 327 | ||
| 177 | 173 | 185 | 165 | ||
| 6 | 7 | 10 | 11 | ||
| - | - | - | - | ||
| - | - | - | - | ||
| 1,356 | 1,387 | 1,306 | 1,802 | ||
| Total silver ounces produced | 4,441 5,134 5,303 5,822 | ||||
| 5,062 | 5,476 | 4,208 | 3,393 | ||
| Palladium ounces produced ² Stillwater 5 | 3,880 3,705 3,869 3,229 | ||||
| 4,338 | 4,463 | 4,209 | 4,006 | ||
| Cobalt pounds produced ² Voisey's Bay | 152 124 128 226 | ||||
| 259 | 240 | 215 | 183 | ||
| GEOs produced 10 Average payable rate 2 Gold Silver Palladium Cobalt GEO 10 | 137,176 134,730 132,780 142,103 95.1% 95.1% 94.9% 95.1% 83.7% 83.1% 84.2% 86.3% 94.1% 96.3% 93.9% 96.3% 93.3% 93.3% 93.3% 93.3% 90.8% 89.8% 89.9% 90.9% | ||||
| 147,059 | 158,703 | 164,818 | 147,230 | ||
| 95.2% | 94.7% | 95.1% | 95.4% | ||
| 84.4% | 84.5% | 83.0% | 78.3% | ||
| 97.3% | 97.8% | 98.0% | 94.1% | ||
| 93.3% | 93.3% | 93.3% | 93.3% | ||
| 90.9% | 90.6% | 91.6% | 90.8% |
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: Q2 2024 - 285,000 ounces; 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.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine.
7) There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023.
8) On 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.
9) On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million.
10) 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.