Wheaton Precious Metals Announces Third Quarter Results for 2017 and Declares Fourth Quarterly Dividend of 2017
FOR IMMEDIATE RELEASE TSX: WPM November 9, 2017 NYSE: WPM
WHEATON PRECIOUS METALS ANNOUNCES THIRD QUARTER RESULTS FOR 2017 AND DECLARES FOURTH QUARTERLY DIVIDEND OF 2017
Vancouver, British Columbia – Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) is pleased to announce its results for the third quarter ended September 30, 2017. All figures are presented in United States dollars unless otherwise noted.
In the third quarter of 2017, Wheaton Precious Metals continued to generate strong cash flow and remains on track to meet 2017 production guidance.
Operational Overview
| Q3 2017 | Q3 2016 Change | ||
|---|---|---|---|
| Ounces produced Silver Gold Ounces sold Silver Gold | 7,651 (0.7)% 113,008 (15.1)% 6,122 (5.9)% 85,063 (3.0)% | ||
| 7,595 | |||
| 95,897 | |||
| 5,758 | |||
| 82,548 | |||
| Sales price per ounce Silver Gold Cash costs per ounce 1 Silver 1 Gold 1 Cash operating margin per ounce 1 Silver 1 Gold 1 | $ 19.53 (13.6)% $ 1,336 (4.0)% $ 4.51 (1.8)% $ 390 1.5 % $ 15.02 (17.2)% $ 946 (6.2)% | ||
| $ | 16.87 | ||
| $ | 1,283 | ||
| $ | 4.43 | ||
| $ | 396 | ||
| $ | 12.44 | ||
| $ | 887 | ||
| Revenue Net earnings Per share Operating cash flows Per share 1 Dividends paid Per share | $ | 203,034 | $ 233,204 (12.9)% $ 82,986 (19.8)% $ 0.19 (21.1)% $ 161,577 (20.1)% $ 0.37 (21.6)% $ 22,049 100.5% $ 0.05 100.0% |
| $ | 66,578 | ||
| $ | 0.15 | ||
| $ | 129,121 | ||
| $ | 0.29 | ||
| $ | 44,201 | ||
| $ | 0.10 |
All amounts in thousands except gold ounces produced and sold, per ounce amounts and per share amounts.
Third Quarter Highlights
- Attributable silver production for the three months ended September 30, 2017, decreased 1% relative to the comparable period in 2016, with lower production from San Dimas and Constancia being largely offset by increased production from Antamina and Peñasquito.
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- Attributable gold production for the three months ended September 30, 2017, decreased 15% relative to the comparable period in 2016, with the decrease being in line with expectations and primarily due to lower attributable production from 777 and Minto.
- On a silver equivalent ounce2 (“SEO”) basis and gold equivalent ounce2 (“GEO”) basis:
- Attributable production in Q3 2017 was 14.9 million SEOs or 195,900 GEOs, compared with 15.3 million SEOs or 225,400 GEOs in Q3 2016, a decrease of 3% and 13%, respectively.
- Sales volume in Q3 2017 was 12.0 million SEOs or 158,400 GEOs, compared with 11.9 million SEOs or 175,000 GEOs in Q3 2016, an increase of 1% and a decrease of 9%, respectively.
- As at September 30, 2017, payable ounces attributable to the Company produced but not yet delivered³ amounted to 5.3 million payable silver ounces and 57,200 payable gold ounces, representing an increase of 1.1 million payable silver ounces and 8,200 payable gold ounces during the three month period ended September 30, 2017.
- Declared quarterly dividend of $0.09 per common share. This represents an increase of 50% relative to the comparable period in 2016.
The Company is reiterating its production guidance for 2017.
“Wheaton Precious Metals continues to generate strong operating margins from its portfolio of low-cost assets and remains on track to meet full year production guidance,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “We continue to work diligently not only to strengthen our current portfolio, the source of our sector leading cash flows and dividend yield, but also to pursue additional accretive opportunities.”
Financial Review
Revenues
Revenue was $203 million in the third quarter of 2017, on sales volume of 5.8 million ounces of silver and 82,500 ounces of gold. This represents a 13% decrease from the $233 million of revenue generated in the third quarter of 2016 due primarily to (i) a 6% decrease in the number of silver ounces sold; (ii) a 3% decrease in the number of gold ounces sold; (iii) a 14% decrease in the average realized silver price ($16.87 in Q3 2017 compared with $19.53 in Q3 2016); and (iv) a 4% decrease in the average realized gold price ($1,283 in Q3 2017 compared with $1,336 in Q3 2016).
Costs and Expenses
Average cash costs¹ in the third quarter of 2017 were $4.43 per silver ounce sold and $396 per gold ounce sold, as compared with $4.51 per silver ounce and $390 per gold ounce during the comparable period of 2016. This resulted in a cash operating margin¹ of $12.44 per silver ounce sold and $887 per gold ounce sold, a reduction of 17% and 6% as compared with Q3 2016. The decrease in the cash operating margin was primarily due to a 14% decrease in the average realized silver price and a 4% decrease in the average realized gold price in Q3 2017 compared with Q3 2016.
Earnings and Operating Cash Flows
Net earnings and cash flow from operations in the third quarter of 2017 were $67 million ($0.15 per share) and $129 million ($0.29 per share¹), compared with $83 million ($0.19 per share) and $162 million ($0.37 per share¹) for the same period in 2016, both a decrease of 20%.
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Balance Sheet
At September 30, 2017, the Company had approximately $70 million of cash on hand and $854 million outstanding under the Company's $2 billion revolving term loan (the "Revolving Facility").
Third Quarter Asset Highlights
During the third quarter of 2017, attributable production was 7.6 million ounces of silver and 95,900 ounces of gold, representing a decrease of 1% and 15%, respectively, compared with the third quarter of 2016.
Operational highlights for the quarter ended September 30, 2017, based upon counterparties’ reporting, are as follows:
Salobo
In the third quarter of 2017, Salobo produced 73,000 ounces of attributable gold, an increase of approximately 7% relative to the third quarter of 2016. According to Vale S.A.’s (“Vale”) third quarter of 2017 production report, production was positively impacted mainly due to higher feed grades and stronger plant performance in the third quarter. The Salobo plant operated above nameplate capacity on average in the third quarter of 2017.
Peñasquito
In the third quarter of 2017, Peñasquito produced 1.6 million ounces of attributable silver, an increase of approximately 10% relative to the third quarter of 2016 primarily due to higher metal recoveries and grades. According to Goldcorp Inc.’s (“Goldcorp”) third quarter of 2017 MD&A, throughput at Peñasquito is expected to increase in the fourth quarter of 2017 as a result of improved mill efficiencies. Pre-stripping of the Chile Colorado pit is reportedly ahead of schedule and will contribute to mill feed starting in 2018.
According to Goldcorp, the Pyrite Leach Project ("PLP") at Peñasquito is 40% complete and expected to commence commissioning in the fourth quarter of 2018, three months ahead of schedule. The PLP is reportedly expected to recover approximately 40% of the gold and 48% of the silver currently reporting to the tailings, and is expected to add production of approximately 1 million ounces of gold and 44 million ounces of silver over the current life of the mine. As a reminder, Wheaton Precious Metals is entitled to 25% of the silver produced at Peñasquito for the life of mine, or 11 million of the additional 44 million silver ounces.
Antamina
In the third quarter of 2017, Antamina produced 1.7 million ounces of attributable silver, an increase of approximately 18% relative to the third quarter of 2016 primarily due to increased grades and throughput, partially offset by lower recovery.
San Dimas
In the third quarter of 2017, San Dimas produced 1.0 million ounces of attributable silver, a decrease of approximately 17% relative to the third quarter of 2016 primarily due to a decrease in throughput, which was partially offset by better grades. According to Primero Mining Corp.’s (“Primero”) news release dated September 21, 2017, the expected ramp-up in production at San Dimas following a work stoppage in the second quarter of 2017 was significantly delayed due to persistent issues with underground equipment reliability, which has impacted development rates and underground stoping activities. As a result of these issues, Primero reduced the upper end of its 2017 silver production guidance range from
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4.5-5.5 million ounces to 4.5-5.0 million ounces. As a reminder, Wheaton’s full year 2017 guidance is based on attributable production from San Dimas of 4.0 million ounces of silver.
Wheaton continues to work closely with Primero as they work through their strategic review process. As per Primero’s announcement on March 24, 2017, Wheaton provided significant support for the strategic review process by providing a guarantee to the lenders under Primero’s existing revolving credit facility, which resulted in an extension of the maturity date by six months to November 23, 2017. The intent of this guarantee is to provide Primero with time to complete its strategic review process, which was first announced on February 27, 2017. Wheaton has been encouraged by Primero’s ability through this process to reduce general and administrative costs and divest of non-core operations. Also, as noted in Primero’s second quarter of 2017 MD&A, Primero has received a number of proposals from interested parties regarding a potential acquisition of the San Dimas operation. The process is ongoing but there can be no certainty that these discussions will result in a resolution acceptable to all stakeholders, including the Company.4
Sudbury
In the third quarter of 2017, Vale’s Sudbury mines produced 8,400 ounces of attributable gold, a decrease of approximately 22% relative to the third quarter of 2016 primarily due to lower throughput. According to Vale’s third quarter of 2017 production report, the decrease in production was primarily due to the full operation of two furnaces in Q3 2016, while in Q3 2017 Sudbury transitioned to a single furnace operation. According to Vale, the transition has gone very well with the newly designed furnace already exceeding its nameplate capacity. Vale further reports that while nickel production was down in the quarter, with the transition to the new single furnace flowsheet, Sudbury achieved record quarterly copper concentrate production.
Constancia
In the third quarter of 2017, Constancia produced 0.6 million ounces of attributable silver and 2,500 ounces of attributable gold, a decrease of approximately 18% and 33%, respectively, relative to the third quarter of 2016. The decrease in production was primarily the result of the processing of lower grade ore as expected in Hudbay Mineral Inc.’s (“Hudbay”) mine plan as well as lower recovery, partially offset by record high throughput.
Other Gold
In the third quarter of 2017, total Other Gold attributable production was 12,000 ounces, a decrease of approximately 60% relative to the third quarter of 2016. The decrease was relatively in line with expectations and primarily due to the anticipated reduction of the Company's share of the gold production at the 777 mine from 100% to 50% effective January 1, 2017, coupled with reduced production at the Minto mine due to mine sequencing changes to support the mine life extension as previously announced by Capstone Mining Corp. (“Capstone”).
Subsequent to the quarter, in October 2017, the Company agreed to amend the Minto precious metal purchase agreement in order to incentivize Capstone to extend the mine life of Minto. The primary modification is to increase the production payment per ounce of gold delivered to Wheaton Precious Metals over the current fixed price in periods where the market price of copper is lower than $2.50 per pound. In consideration for this contract amendment and certain other agreements made between the Company and Capstone, the Company received shares of Capstone with a value of $8 million.
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Other Silver
In the third quarter of 2017, total Other Silver attributable production was 2.6 million ounces, a decrease of approximately 5% relative to the third quarter of 2016. The decrease was driven primarily by the cessation of production from Cozamin as the Cozamin silver purchase agreement with Capstone expired on April 4, 2017, as well as lower grades at Yauliyacu. Lower attributable production from Cozamin and Yauliyacu was partially offset by stronger production from Zinkgruvan.
Produced But Not Yet Delivered 31 As at September 30, 2017, payable ounces attributable to the Company produced but not yet delivered³ amounted to 5.3 million payable silver ounces and 57,200 payable gold ounces, representing an increase of 1.1 million payable silver ounces and 8,200 payable gold ounces during the three month period ended September 30, 2017. Payable silver ounces produced but not yet delivered increased primarily as a result of increases related to the Peñasquito, Zinkgruvan, Yauliyacu, and Antamina silver interests. Payable gold ounces produced but not yet delivered increased primarily as a result of increases related to the Sudbury and Salobo gold interests. Payable ounces produced but not yet delivered to the Wheaton Precious Metals group of companies are expected to average approximately two months of annualized production but may vary from quarter to quarter due to a number of mining operation factors including mine ramp-up and timing of shipments.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton Precious Metals’ consolidated MD&A in the ‘Results of Operations and Operational Review’ section.
Events Subsequent to the Quarter
Kutcho
Pending completion of the Kutcho Early Deposit Agreement, the Company has entered into a non-binding term sheet with Desert Star Resources Ltd. to provide assistance in the form of an up to Cdn$20 million subordinated secured convertible debt loan at an interest rate of 10% per annum over a 7-year term (the “Desert Star Loan”). There can be no assurance that the Desert Star Loan will be completed on the terms set out in the non-binding term sheet or at all.
Dividend
Fourth Quarterly Dividend
The fourth quarterly cash dividend of US$0.09 will be paid to holders of record of Wheaton Precious Metals common shares as of the close of business on November 27, 2017, and will be distributed on or about December 7, 2017.
Under the Company’s dividend policy, the quarterly dividend per common share will be equal to 30% of the average cash generated by operating activities in the previous four quarters divided by the Company’s then outstanding common shares, all rounded to the nearest cent.
The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes.
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Dividend Reinvestment Plan
The Company has previously implemented a Dividend Reinvestment Plan (“DRIP”). Participation in the DRIP is optional. For the purposes of this fourth quarterly dividend, the Company has elected to issue common shares under the DRIP through treasury at a 3% discount to the Average Market Price, as defined in the DRIP. However, the Company may, from time to time, in its discretion, change or eliminate the discount applicable to Treasury Acquisitions, as defined in the DRIP, or direct that such common shares be purchased in Market Acquisitions, as defined in the DRIP, at the prevailing market price, any of which would be publicly announced.
The DRIP and enrollment forms are available for download on the Company’s website at www.wheatonpm.com, accessible by quick links directly from the home page, and can also be found in the ‘investors’ section, under the ‘dividends’ tab.
Registered shareholders may also enroll in the DRIP online through the plan agent’s selfservice web portal at:
https://www.canstockta.com/en/InvestorServices/Investor_Information/Issuer_List/IssuerDet ail.jsp?companyCode=1501.
Beneficial shareholders should contact their financial intermediary to arrange enrollment. All shareholders considering enrollment in the DRIP should carefully review the terms of the DRIP and consult with their advisors as to the implications of enrollment in the DRIP.
This press release is not an offer to sell or a solicitation of an offer of securities. A registration statement relating to the DRIP has been filed with the U.S. Securities and Exchange Commission and may be obtained under the Company’s profile on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov. A written copy of the prospectus included in the registration statement may be obtained by contacting the Corporate Secretary of the Company at 1021 West Hastings Street, Suite 3500, Vancouver, British Columbia, Canada V6E 0C3.
Outlook
Wheaton Precious Metals’ estimated attributable silver and gold production in 2017 is forecast to be 28 million silver ounces and 340,000 gold ounces. Estimated average annual attributable silver and gold production over the next five years (including 2017) is anticipated to be approximately 29 million silver ounces and 340,000 gold ounces per year. As a reminder, Wheaton Precious Metals does not include any production in its guidance from streams on development assets, such as Barrick’s Pascua-Lama project or Hudbay’s Rosemont project.
From a liquidity perspective, the $70 million of cash and cash equivalents as at September 30, 2017 combined with the liquidity provided by the available credit under the $2 billion Revolving Facility and ongoing operating cash flows positions the Company well to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive precious metal stream interests.
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Webcast and Conference Call Details
A conference call and webcast will be held Friday, November 10, 2017, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call, please use one of the following methods:
Dial toll free from Canada or the US: 888-231-8191 Dial from outside Canada or the US: 647-427-7450 Pass code: 94521962 Live audio webcast: www.wheatonpm.com
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until November 17, 2017 at 11:59 pm (Eastern Time). 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: 855-859-2056 Dial from outside Canada or the US: 416-849-0833 Pass code: 94521962 Archived audio webcast: www.wheatonpm.com
This earnings release should be read in conjunction with Wheaton Precious Metals’ MD&A and Financial Statements, which are available on the Company’s website at www.wheatonpm.com and have been posted on SEDAR at www.sedar.com.
Mr. Neil Burns, Vice President, Technical Services for Wheaton Precious Metals, is a “qualified person” as such term is defined under National Instrument 43-101, and has reviewed and approved the technical information including information on mineral reserves and mineral resources disclosed in this news release.
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx.
End Notes
1 Please refer to non-IFRS measures at the end of this press release.
2 Silver equivalent ounces (SEOs) and gold equivalent ounces (GEOs), which are provided to assist the reader, are calculated by converting gold (in the case of SEOs) or silver (in the case of GEOs) using the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period. The silver / gold ratio is the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period.
3 Payable silver and gold ounces produced but not yet delivered are based on management estimates, and may be updated in future periods as additional information is received.
4 Please refer to Wheaton Precious Metals Q3 2017 Management’s Discussion and Analysis (“MD&A”) for a more detailed description of the status and risks associated with the San Dimas Silver Interest. Please also see “Cautionary Note Regarding Forward Looking Statements” in the Company’s MD&A for material risks, assumptions, and important disclosure associated with San Dimas and Primero.
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Nine Months Ended September 30 September 30
| (US dollars and shares in thousands, except per share amounts - unaudited) | 2016 | 2016 | ||||||
| 2017 | 2017 | |||||||
| Sales | $ 233,204 | $ 633,066 | ||||||
| $ | 203,034 | $ | 600,669 | |||||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 60,776 73,919 | $ 177,620 220,336 | ||||||
| $ | 58,234 | $ | 173,506 | |||||
| 61,852 | 185,567 | |||||||
| Total cost of sales | $ 134,695 | $ 397,956 | ||||||
| $ | 120,086 | $ | 359,073 | |||||
| Gross margin | $ 98,509 | $ 235,110 | ||||||
| $ | 82,948 | $ | 241,596 | |||||
| Expenses General and administrative 1 Interest expense Other income Other expense Foreign exchange loss | $ 9,513 6,007 (19) 1,377 22 | $ 30,316 17,529 (105) 3,632 611 | ||||||
| $ | 8,793 | $ | 25,760 | |||||
| 6,360 | 19,214 | |||||||
| (93) | (2,266) | |||||||
| 1,410 | 3,917 | |||||||
| 163 | 248 | |||||||
| $ 16,900 | $ 51,983 | |||||||
| $ | 16,633 | $ | 46,873 | |||||
| Earnings before income taxes Income tax recovery | $ 81,609 1,377 | $ 183,127 1,144 | ||||||
| $ | 66,315 | $ | 194,723 | |||||
| 263 | 691 | |||||||
| Net earnings | $ 82,986 | $ 184,271 | ||||||
| $ | 66,578 | $ | 195,414 | |||||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ 0.19 $ 0.19 440,635 441,917 | $ 0.43 $ 0.43 426,737 427,094 | ||||||
| $ | 0.15 | $ | 0.44 | |||||
| $ | 0.15 | $ | 0.44 | |||||
| 442,094 | 441,790 | |||||||
| 442,476 | 442,263 | |||||||
| 1) Equity settled stock based compensation (a non-cash item) included in general and administrative expenses. | 1,279 | 1,220 | 3,748 | 3,822 | ||||
| $ | $ | $ | $ |
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Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | As at December 31 2016 | ||
|---|---|---|---|
| As at | |||
| September 30 | |||
| 2017 | |||
| Assets Current assets Cash and cash equivalents Accounts receivable Other | $ 124,295 2,316 1,481 | ||
| $ | 69,910 | ||
| 5,895 | |||
| 2,678 | |||
| Total current assets | $ 128,092 | ||
| $ | 78,483 | ||
| Non-current assets Silver and gold interests Early deposit - silver and gold interests Royalty interest Long-term investments Other | $ 5,919,272 20,064 9,107 64,621 12,163 | ||
| $ | 5,728,770 | ||
| 20,709 | |||
| 9,107 | |||
| 86,265 | |||
| 12,352 | |||
| Total non-current assets | $ 6,025,227 | ||
| $ | 5,857,203 | ||
| Total assets | $ 6,153,319 | ||
| $ | 5,935,686 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current portion of performance share units | $ 18,829 228 | ||
| $ | 13,522 | ||
| - | |||
| Total current liabilities | $ 19,057 | ||
| $ | 13,522 | ||
| Non-current liabilities Bank debt Deferred income taxes Performance share units | $ 1,193,000 262 1,012 | ||
| $ | 854,000 | ||
| 61 | |||
| 798 | |||
| Total non-current liabilities | $ 1,194,274 | ||
| $ | 854,859 | ||
| Total liabilities | $ 1,213,331 | ||
| $ | 868,381 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,445,914 55,301 1,438,773 | ||
| $ | 3,464,856 | ||
| 74,295 | |||
| 1,528,154 | |||
| Total shareholders' equity | $ 4,939,988 | ||
| $ | 5,067,305 | ||
| Total liabilities and shareholders' equity | $ 6,153,319 | ||
| $ | 5,935,686 |
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Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Nine Months Ended September 30 September 30
| (US dollars in thousands - unaudited) | 2016 | 2016 | ||||
| 2017 | 2017 | |||||
| Operating activities Net earnings Adjustments for Depreciation and depletion Amortization of credit facility origination fees: Interest expense Amortization of credit facility origination fees - undrawn facilities Interest expense Equity settled stock based compensation Performance share units Deferred income tax (recovery) expense Investment income recognized in net earnings Other Change in non-cash working capital | $ 82,986 74,149 190 177 5,817 1,220 565 (1,404) (19) (308) 3,397 | $ 184,271 221,032 596 498 16,933 3,822 744 (1,170) (105) (220) (401) | ||||
| $ | 66,578 | $ | 195,414 | |||
| 62,096 | 186,298 | |||||
| 167 | 551 | |||||
| 201 | 541 | |||||
| 6,194 | 18,664 | |||||
| 1,279 | 3,748 | |||||
| (38) | (496) | |||||
| (279) | (985) | |||||
| (93) | (256) | |||||
| (434) | (1,507) | |||||
| (234) | (9,162) | |||||
| Cash generated from operations before interest paid and received Interest paid - expensed Interest received | $ | 135,437 | $ 166,770 (5,204) 11 | $ | 392,810 | $ 426,000 (16,478) 76 |
| (6,394) | (19,296) | |||||
| 78 | 211 | |||||
| Cash generated from operating activities | $ 161,577 | $ 409,598 | ||||
| $ | 129,121 | $ | 373,725 | |||
| Financing activities Bank debt repaid Bank debt drawn Credit facility origination fees Shares issued Share issue costs Repurchase of share capital Share purchase options exercised Dividends paid | $ (141,000) 780,000 - - (162) - 20,284 (19,310) | $ (901,000) 780,000 (1,300) 632,547 (25,996) (33,126) 20,883 (56,050) | ||||
| $ | (99,000) | $ | (339,000) | |||
| - | - | |||||
| (6) | (1,311) | |||||
| - | - | |||||
| - | - | |||||
| - | - | |||||
| - | 1,002 | |||||
| (36,663) | (88,771) | |||||
| Cash (used for) generated from financing activities | $ 639,812 | $ 415,958 | ||||
| $ | (135,669) | $ | (428,080) | |||
| Investing activities Silver and gold interests Interest paid - capitalized to silver interests Early deposit - silver and gold interests Proceeds on disposal of silver interest 1 Dividend income received Other | $ (800,013) - - - 8 (115) | $ (800,297) (615) (2,042) - 28 (222) | ||||
| $ | - | $ | - | |||
| - | - | |||||
| (5) | (899) | |||||
| - | 1,022 | |||||
| 15 | 45 | |||||
| (116) | (202) | |||||
| Cash used for investing activities | $ (800,120) | $ (803,148) | ||||
| $ | (106) | $ | (34) | |||
| Effect of exchange rate changes on cash and cash equivalents | $ (214) | $ (160) | ||||
| $ | (11) | $ | 4 | |||
| (Decrease) increase in cash and cash equivalents Cash and cash equivalents, beginning of period | $ 1,055 124,490 | $ 22,248 103,297 | ||||
| $ | (6,665) | $ | (54,385) | |||
| 76,575 | 124,295 | |||||
| Cash and cash equivalents, end of period | $ 125,545 | $ 125,545 | ||||
| $ | 69,910 | $ | 69,910 |
1) During the three months ended March 31, 2017, the Company received an additional $1 million settlement related to the November 4, 2014 bankruptcy of Mercator Minerals Ltd. (“Mercator”) with whom Wheaton Precious Metals had a silver purchase agreement relative to Mercator’s Mineral Park mine in the United States.
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Summary of Ounces Produced
| Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q3 2017 | Q2 2017 | Q1 2017 | ||||||
| Silver ounces produced 2 San Dimas Peñasquito Antamina Constancia Other Los Filos Zinkgruvan Yauliyacu Stratoni Minto Neves-Corvo 3 Cozamin 4 Lagunas Norte Pierina Veladero 777 | 1,429 1,264 1,596 923 2,317 1,328 1,487 867 1,352 1,766 1,599 1,469 1,707 2,021 2,403 723 749 778 509 637 33 44 56 40 45 557 449 495 659 729 379 721 686 657 749 187 206 222 136 178 100 153 60 43 53 312 279 331 319 269 265 239 253 277 400 234 215 233 273 291 117 50 31 35 54 174 160 193 182 281 152 166 99 106 112 | |||||||
| 1,043 | 973 | 623 | ||||||
| 1,641 | 1,483 | 1,339 | ||||||
| 1,735 | 1,888 | 1,464 | ||||||
| 618 | 546 | 540 | ||||||
| 43 | 42 | 32 | ||||||
| 710 | 493 | 538 | ||||||
| 588 | 607 | 562 | ||||||
| 137 | 171 | 166 | ||||||
| 43 | 42 | 56 | ||||||
| 341 | 316 | 330 | ||||||
| - | 17 | 397 | ||||||
| 243 | 218 | 210 | ||||||
| 107 | 114 | 137 | ||||||
| 201 | 144 | 158 | ||||||
| 145 | 138 | 96 | ||||||
| Total Other | 2,558 | 2,302 | 2,682 | 2,510 2,682 2,659 2,727 3,161 | ||||
| Total silver ounces produced | 7,589 7,651 7,607 7,532 10,284 | |||||||
| 7,595 | 7,192 | 6,648 | ||||||
| Gold ounces produced ² Sudbury 5 Salobo Constancia Other Minto 777 | 8,901 10,779 15,054 7,895 13,678 71,328 68,168 35,627 38,474 39,395 3,151 3,737 4,622 3,435 4,617 10,906 20,184 6,985 3,779 5,237 10,919 10,140 8,900 8,274 9,439 | |||||||
| 8,401 | 7,468 | 9,182 | ||||||
| 72,980 | 57,514 | 53,193 | ||||||
| 2,498 | 2,332 | 2,431 | ||||||
| 6,904 | 6,063 | 9,734 | ||||||
| 5,114 | 6,259 | 4,422 | ||||||
| Total Other | 12,018 | 12,322 | 14,156 | 21,825 30,324 15,885 12,053 14,676 | ||||
| Total gold ounces produced | 105,205 113,008 71,188 61,857 72,366 | |||||||
| 95,897 | 79,636 | 78,962 | ||||||
| SEOs produced 6 GEOs produced 6 | 15,067 15,343 12,947 12,453 15,699 211,970 225,393 172,566 156,513 209,783 | |||||||
| 14,874 | 13,009 | 12,176 | ||||||
| 195,944 | 178,100 | 173,949 | ||||||
| Silver / Gold Ratio 7 | ||||||||
| 75.9 | 73.0 | 70.0 | 71.1 | 68.1 | 75.0 | 79.6 | 74.8 |
1) All figures in thousands except gold ounces produced.
2) Ounces produced represent the quantity of silver and gold 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 silver or gold 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) As per Lundin Mining Corporation’s (“Lundin”) MD&A for the three months ended September 30, 2017, the Mining Industry Workers Union organized a strike at the Neves-Corvo mine from October 3-7, 2017. Lundin states that they have been advised that the union intends to undertake another strike during a five-day period commencing November 6, 2017 and it may repeat this action a third time in the month of December, resulting in their decision to revise production guidance downward to reflect anticipated lost production from the labour actions. Lundin has engaged in dialogue with the unions, who are looking for changes to work schedules and other factors that have also been demanded of other industries as part of a nation-wide union initiative. These labour issues at Neves-Corvo have not impacted Wheaton Precious Metals’ production guidance for 2017.
4) The Cozamin precious metal purchase agreement expired on April 4, 2017.
5) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests. The Stobie gold interest was placed into care and maintenance as of May 2017.
6) Silver equivalent ounces (SEOs) and gold equivalent ounces (GEOs), which are provided to assist the reader, are calculated by converting gold (in the case of SEOs) or silver (in the case of GEOs) using the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period.
7) The silver / gold ratio is the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period.
- 12 -
Summary of Ounces Sold
| Q4 2016 Q3 2016 Q2 2016 Q1 2016 Q4 2015 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q3 2017 | Q2 2017 | Q1 2017 | ||||||
| Silver ounces sold San Dimas Peñasquito Antamina Constancia Other Los Filos Zinkgruvan Yauliyacu Stratoni Campo Morado 2 Minto Cozamin 3 Neves-Corvo Lagunas Norte Pierina Veladero 777 | 1,571 1,065 1,426 1,345 2,097 1,270 1,078 886 949 2,086 1,488 1,598 2,202 1,879 1,340 702 536 520 666 511 33 44 55 39 45 592 340 369 812 507 671 342 578 603 987 165 203 129 148 39 - - - 4 9 102 96 26 53 13 196 207 219 300 317 147 88 158 142 153 227 237 224 299 252 84 32 27 46 36 174 160 193 182 281 84 96 130 85 78 | |||||||
| 962 | 845 | 796 | ||||||
| 1,109 | 1,639 | 860 | ||||||
| 1,537 | 1,453 | 1,170 | ||||||
| 491 | 559 | 383 | ||||||
| 43 | 42 | 32 | ||||||
| 305 | 398 | 296 | ||||||
| 364 | 423 | 403 | ||||||
| 84 | 123 | 195 | ||||||
| - | - | - | ||||||
| 43 | 39 | 37 | ||||||
| 23 | 125 | 232 | ||||||
| 117 | 114 | 153 | ||||||
| 242 | 204 | 217 | ||||||
| 102 | 136 | 150 | ||||||
| 201 | 144 | 159 | ||||||
| 135 | 125 | 142 | ||||||
| Total Other | 1,659 | 1,873 | 2,016 | 2,475 1,845 2,108 2,713 2,717 | ||||
| Total silver ounces sold | 7,506 6,122 7,142 7,552 8,751 | |||||||
| 5,758 | 6,369 | 5,225 | ||||||
| Gold ounces sold Sudbury 4 Salobo Constancia Other Minto 777 | 10,183 12,294 11,351 9,007 6,256 73,646 50,043 45,396 35,366 44,491 3,343 3,396 3,610 4,933 4,473 15,445 11,110 19 8,815 3,317 6,314 8,220 10,381 7,137 6,362 | |||||||
| 3,237 | 5,822 | 6,887 | ||||||
| 67,198 | 50,478 | 63,007 | ||||||
| 2,206 | 2,356 | 2,315 | ||||||
| 4,603 | 6,988 | 9,902 | ||||||
| 5,304 | 6,321 | 6,286 | ||||||
| Total Other | 9,907 | 13,309 | 16,188 | 21,759 19,330 10,400 15,952 9,679 | ||||
| Total gold ounces sold | 108,931 85,063 70,757 65,258 64,899 | |||||||
| 82,548 | 71,965 | 88,397 | ||||||
| SEOs sold 5 GEOs sold 5 | 15,249 11,913 12,451 12,745 13,607 214,529 175,008 165,945 160,180 181,838 | |||||||
| 12,024 | 11,625 | 11,412 | ||||||
| 158,401 | 159,161 | 163,032 | ||||||
| Cumulative payable silver ounces PBND 6 | 3,224 3,783 2,999 3,230 3,872 | |||||||
| 5,257 | 4,152 | 3,967 | ||||||
| Cumulative payable gold ounces PBND 6 | 59,536 68,148 44,780 49,679 56,867 | |||||||
| 57,205 | 48,997 | 45,669 | ||||||
| Silver / Gold Ratio 7 | ||||||||
| 75.9 | 73.0 | 70.0 | 71.1 | 68.1 | 75.0 | 79.6 | 74.8 |
1) All figures in thousands except gold ounces sold.
2) The Campo Morado silver interest was disposed of on December 31, 2014.
3) The Cozamin precious metal purchase agreement expired on April 4, 2017.
4) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold interests. The Stobie gold interest was placed into care and maintenance as of May 2017.
5) Silver equivalent ounces (SEOs) and gold equivalent ounces (GEOs), which are provided to assist the reader, are calculated by converting gold (in the case of SEOs) or silver (in the case of GEOs) using the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period.
6) Payable silver and gold ounces produced but not yet delivered (“PBND”) are based on management estimates. These figures may be updated in future periods as additional information is received.
7) The silver / gold ratio is the ratio of the average price of silver to the average price of gold per the London Bullion Metal Exchange during the period.