Fourth Quarter and Full Year Financial Results Wheaton Precious Metals Announces Record Revenue and Operating Cash Flow for 2020
March 11, 2021 TSX | NYSE | LSE: WPM Vancouver, British Columbia Designated News Release FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
WHEATON PRECIOUS METALS ANNOUNCES RECORD REVENUE AND OPERATING CASH FLOW FOR 2020
“Our strong performance in 2020 was driven by Wheaton’s high-quality portfolio of assets, which generated over $1 billion in revenue and operating cash flow of over $765 million, both representing records for the Company,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “Despite the challenges posed by the COVID-19 pandemic, 2020 was a very productive year, and we were successful in delivering value back to our stakeholders on many fronts. Specifically, we added two new accretive precious metal streams to our portfolio, expanded our shareholder base by listing on the London Stock Exchange and provided additional funding to communities impacted by the pandemic. Given the resiliency of our production base coupled with our innovative dividend policy, we are pleased to provide greater value back to our shareholders in 2021 by increasing the minimum quarterly dividend by over 30% relative to last year.”
Fourth Quarter and Year End 2020 Highlights:
- $208 million in operating cash flow in the quarter resulting in record annual operating cash flow of over $765 million in 2020.
- Record annual revenue of $1,096 million in 2020.
- Net debt1 reduced by $275 million, resulting in a net debt position of $2 million.
- Declared quarterly dividend1 of $0.13 per common share.
- New precious metal purchase agreements on the Marmato Mine and the Cozamin Mine.
- Total attributable gold Measured and Indicated Mineral Resources increased by 64%, primarily due to successful exploration at Salobo, which extended the orebody at depth.
- Commenced trading on the Main Market of the London Stock Exchange.
Operational Overview
| (all figures in US dollars unless otherwise noted) | Q4 2019 Change | 2019 Change | ||||
| Q4 2020 | 2020 | |||||
| Ounces produced Gold Silver Palladium Gold equivalent 2 Ounces sold Gold Silver Palladium Gold equivalent 2 | 107,054 (13.0)% 5,908 10.2 % 6,057 (6.4)% 186,027 (3.9)% 89,223 (3.3)% 4,684 (2.3)% 5,312 (13.6)% 152,514 (3.4)% | 406,504 (9.6)% 22,396 2.2 % 21,993 0.9 % 704,579 (4.7)% 389,086 (5.0)% 17,703 8.6 % 20,681 (3.0)% 629,098 (0.3)% | ||||
| 93,137 | 367,419 | |||||
| 6,509 | 22,892 | |||||
| 5,672 | 22,187 | |||||
| 178,801 | 671,713 | |||||
| 86,243 | 369,553 | |||||
| 4,576 | 19,232 | |||||
| 4,591 | 20,051 | |||||
| 147,277 | 627,063 | |||||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 | $ | 286,212 | $ 223,222 28.2 % $ 77,524 103 % $ 0.173 102.3 % $ 74,473 100.7 % $ 0.166 100.6 % $ 131,867 57.7 % $ 0.295 56.9 % | $ | 1,096,224 | $ 861,332 27.3 % $ 86,138 489.5 % $ 0.193 486.5 % $ 242,745 107.4 % $ 0.544 106.1 % $ 501,620 52.6 % $ 1.125 51.6 % |
| $ | 157,221 | $ | 507,804 | |||
| $ | 0.350 | $ | 1.132 | |||
| $ | 149,441 | $ | 503,335 | |||
| $ | 0.333 | $ | 1.122 | |||
| $ | 207,962 | $ | 765,442 | |||
| $ | 0.463 | $ | 1.706 |
All amounts in thousands except gold, palladium and gold equivalent ounces produced and sold, per ounce amounts and per share amounts.12
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Production Guidance
- 2021 Guidance: Wheaton's estimated attributable production in 2021 is forecast to be 370,000 to 400,000 ounces of gold, 22.5 to 24.0 million ounces of silver, and 40,000 to 45,000 gold equivalent ounces3 (“GEOs”) of other metals, resulting in production of approximately 720,000 to 780,000 GEOs3.
- Five-year guidance: For the five-year period ending in 2025, the Company estimates that average production will amount to 810,000 GEOs3.
- Ten-year guidance: For the ten-year period ending in 2030, the Company estimates that average annual production will amount to 830,000 GEOs3.
Financial Review Revenues
Revenue was $286 million in the fourth quarter of 2020 representing a 28% increase from the fourth quarter of 2019 due primarily to a 33% increase in the average realized gold equivalent² price; partially offset by a 3% decrease in the number of gold equivalent² ounces sold.
Revenue was $1,096 million in the year ended December 31, 2020 representing a 27% increase from 2019 due primarily to a 28% increase in the average realized gold equivalent² price.
Costs and Expenses
Average cash costs¹ in the fourth quarter of 2020 were $438 per gold equivalent² ounce as compared to $418 in the fourth quarter of 2019. This resulted in a cash operating margin¹ of $1,505 per gold equivalent² ounce sold, an increase of 44% as compared with the fourth quarter of 2019.
Average cash costs¹ in 2020 were $425 per gold equivalent² ounce as compared to $411 in 2019. This resulted in a cash operating margin¹ of $1,323 per gold equivalent² ounce sold, an increase of 38% as compared with 2019.
Balance Sheet (at December 31, 2020)
- Approximately $193 million of cash on hand.
- $195 million outstanding under the Company's $2 billion revolving term loan (the "Revolving Facility").
- During Q4 2020, the company received $113 million in proceeds from the sale of long-term equity investments including First Majestic Silver Corp. ("First Majestic").
- During Q4 2020, the Company has repaid $293 million under the Revolving Facility.
- During Q4 2020, the net debt¹ was reduced by $275 million to $2 million.
- The average effective interest rate for Q4 2020 was 1.20%.
Listing on the London Stock Exchange
On October 28, 2020, the Company’s common shares were admitted to the Standard Segment of the Official List of the UK Financial Conduct Authority (“FCA”) and commenced trading on the Main Market of the London Stock Exchange under the ticker symbol WPM.
Fourth Quarter Asset Highlights
Salobo: In the fourth quarter of 2020, Salobo produced 62,900 ounces of attributable gold, a decrease of approximately 16% relative to the fourth quarter of 2019 due to lower throughput. According to Vale S.A.’s (“Vale”) Fourth Quarter and Year End 2020 Production and Sales Report, throughput at Salobo was impacted due to unscheduled maintenance and an incident which led Vale to review and halt mine and plant activities for a short period, during which changes in maintenance routines were implemented to improve operations and safety conditions. As per
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Vale’s Fourth Quarter and Year End 2020 Performance Report, physical completion of the Salobo III mine expansion was 68% at the end of the fourth quarter.
Sudbury: In the fourth quarter of 2020, Vale’s Sudbury mines produced 7,800 ounces of attributable gold, an increase of approximately 20% relative to the fourth quarter of 2019, due primarily to higher recoveries.
San Dimas: In the fourth quarter of 2020, San Dimas produced 11,700 ounces of attributable gold, virtually unchanged relative to the fourth quarter of 2019. As per the San Dimas precious metal purchase agreements (“PMPA”), the fixed gold to silver conversion ratio reverted to 70:1 (from 90:1) on October 14, 2020 after the average gold to silver price ratio over a six-month period fell back below 90:1.
Antamina: In the fourth quarter of 2020, Antamina produced 1.9 million ounces of attributable silver, an increase of approximately 44% relative to the fourth quarter of 2019, primarily due to higher grades and throughput, partially offset by lower recovery.
Stillwater: In the fourth quarter of 2020, the Stillwater mines produced 3,300 ounces of attributable gold and 5,700 ounces of attributable palladium, a decrease of approximately 8% for gold and 6% for palladium relative to the fourth quarter of 2019, primarily due to lower throughput. According to Sibanye-Stillwater Limited’s (“Sibanye-Stillwater”) Operating and Financial Results for the Six Month and Year Ended 31 December 2020, throughput was impacted primarily due to the impact of a spike in COVID-19 infections in the fourth quarter of 2020 associated with a severe wave of COVID-19 infections in Montana, USA. Sibanye-Stillwater also reported that after a review of the Blitz project was conducted following the suspension of growth capital activities due to COVID-19, the project is now expected to reach a steady state by 2024, a delay of up to two years. Finally, Sibanye-Stillwater highlighted that the Fill the Mill expansion project at the East Boulder mine was completed on schedule in the fourth quarter of 2020.
Constancia: In the fourth quarter of 2020, Constancia produced 0.5 million ounces of attributable silver and 3,900 ounces of attributable gold, a decrease of approximately 24% and 17%, respectively, relative to the fourth quarter of 2019, primarily due to lower grades. As per Wheaton’s PMPA with Hudbay Minerals Inc. (“Hudbay”), the failure to achieve a minimum level of throughput at the Pampacancha deposit during 2019 entitled Wheaton to an additional 8,020 ounces of gold in 2020 (received in quarterly installments), of which 2,005 ounces of gold was received during the fourth quarter of 2020 and included as production. According to Hudbay’s Fourth Quarter MD&A, Hudbay had completed the Consulta Previa consultation process for Pampacancha and received the final mining permit for the development and operation of the mine. In addition, predevelopment activities commenced in early January and pre-stripping activities are expected to begin once the remaining individual land user agreement has been completed. Hudbay expects production at Pampacancha to commence later in 2021.
Other Gold: In the fourth quarter of 2020, total Other Gold attributable production was 3,700 ounces, a decrease of approximately 41% relative to the fourth quarter of 2019, primarily due to lower production from the 777 and Minto mines. Hudbay reported on November 25, 2020, that production at 777 had recommenced after a temporary interruption due to an incident that occurred on October 9, 2020, during routine maintenance of the hoist rope and skip.
Keno Hill Restart: Alexco Resource Corp (“Alexco”) reported on November 24, 2020, that the commissioning of the Keno Hill District mill is commencing as scheduled, with initial production of lead/silver and zinc concentrates underway. In order to help facilitate the resumption of mining, Wheaton agreed to modify the PMPA as it relates to the delivery payment per ounce of silver in exchange for 2 million common share purchase warrants from Alexco.
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Produced But Not Yet Delivered 4
As at December 31, 2020, payable ounces attributable to the Company produced but not yet delivered amounted to:
- 71,600 payable gold ounces, a decrease of 4,200 ounces during Q4 2020, primarily due to a reduction during the period relative to the Minto, 777 and Sudbury mines partially offset by an increase at the Salobo mine.
- 4.5 million payable silver ounces, an increase of 1.0 million ounces during Q4 2020, primarily due to an increase during the period relative to the Peñasquito, Yauliyacu and Antamina mines.
- 5,600 payable palladium ounces, an increase of 1,000 ounces during Q4 2020.
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.
Corporate Development
Marmato Mine: On November 5, 2020, the Company announced that it had entered into a PMPA with Aris Gold Corporation (“Aris Gold”, formerly Caldas Gold Corp.) with respect to the Marmato Mine located in Colombia. Under the terms of the Marmato PMPA5, the Company is required to pay Aris Gold total cash consideration of $110 million, $34 million of which is payable once mining contract 014-89M is extended, $4 million of which is payable six months thereafter, and the remaining portion of which is payable during construction of the Marmato Deep Zone (“MDZ”) project, subject to certain conditions being met. In addition, the Company will make ongoing payments equal to 18% of the spot gold and silver price until the market value of gold and silver delivered to the Company, net of the per ounce cash payment, exceeds the initial upfront cash deposit, and 22% of the spot gold and silver price thereafter. The PMPA is effective July 1, 2020, though no production from Marmato has been included in 2020 operating results.
Cozamin Mine: On December 11, 2020, the Company announced that it had entered into a PMPA with Capstone Mining Corp. (“Capstone”) with respect to the Cozamin Mine located in Mexico. Under the terms of the PMPA, the Company paid Capstone upfront cash consideration of $150 million upon closing, which occurred on February 19, 2021, for 50% of the silver production until 10 million ounces ("Moz") have been delivered, thereafter dropping to 33% of silver production for the life of the mine. In addition, Wheaton will make ongoing payments for silver ounces delivered equal to 10% of the spot silver price. The PMPA is effective December 1, 2020, though no production from Cozamin has been included in 2020 operating results.
Reserves and Resources (at December 31, 2020)
- Proven and Probable Mineral Reserves attributable to Wheaton were 11.21 million ounces of gold compared with 11.37 million ounces as reported in Wheaton’s 2019 Annual Information Form (“AIF”), a decrease of 1%; 552.9 million ounces of silver compared with 542.8 million ounces, an increase of 2%; palladium resources of 0.64 million ounces compared to 0.66 million ounces, a decrease of 3%; and cobalt of 31.7 million pounds compared to 32.7 million pounds, a decrease of 3%.
- Measured and Indicated Mineral Resources attributable to Wheaton were 4.39 million ounces of gold compared with 2.68 million ounces as reported in Wheaton’s 2019 AIF, an increase of 64%; silver resources were 743.1 million ounces compared with 736.6 million ounces, an increase of 1%; palladium resources were 0.029 million ounces compared to none in Wheaton’s 2019 AIF and cobalt resources of 1.5 million pounds compared to 1.6, a decrease of 4%.
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- Inferred Mineral Resources attributable to Wheaton were 4.46 million ounces of gold compared with 4.16 million ounces as reported in Wheaton’s 2019 AIF, an increase of 7%; silver resources were 475.8 million ounces compared with 491.0 million ounces, a decrease of 3%, palladium resources were 0.37 million ounces compared with 0.35 million ounces, an increase of 6% and cobalt resources of 7.6 million pounds compared to 9.3, a decrease of 18%.
Estimated attributable reserves and resources contained in this press release are based on information available to the Company as of March 11, 2021, and therefore will not reflect updates, if any, after that date. Updated reserves and resources data incorporating year-end 2020 estimates will also be included in the Company's 2020 Annual Information Form. Wheaton’s most current attributable reserves and resources, as of December 31, 2020, can be found on the Company’s website at www.wheatonpm.com.
COVID-19 Community Support and Response Fund
In the second quarter of 2020, Wheaton announced the launch of a $5 million Community Support and Response Fund (the “CSR Fund”) to support global efforts to combat the COVID-19 pandemic and its impacts on our communities. The CSR Fund is designed to meet the immediate needs of the communities in which Wheaton and its mining partners operate. This fund is incremental to Wheaton's already active Community Investment Program that currently provides support to over 50 programs in multiple communities around the world. As of December 31, 2020, the Company has made donations totalling approximately $3 million with the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, March 12, 2021 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: 1-888-231-8191 Dial from outside Canada or the US: 1-647-427-7450 Pass code: 3349778 Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until March 19, 2021 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: 1-855-859-2056 Dial from outside Canada or the US: 1-416-849-0833 Pass code: 3349778 Archived audio webcast: Webcast Link
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 and copies have been submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
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,
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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.
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 creates sustainable value through streaming.
In accordance with Wheaton Precious Metals™ Corp.’s (“Wheaton Precious Metals”, “Wheaton” or the “Company”) MD&A and financial statements, reference to the Company includes the Company’s wholly owned subsidiaries.
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End Notes
1 Please refer to non-IFRS measures at the end of this press release.
2 Commodity price assumptions for the gold equivalent production and sales in 2020 are $1,500 / ounce gold, $18 / ounce silver, and $2,000 / ounce palladium.
3 Gold equivalent forecast production for 2021 and the longer term outlook are based on the following commodity price assumptions: $1,800 / ounce gold, $25 / ounce silver, $2,300 / ounce palladium, and $17.75 / pound of cobalt. Other metal includes palladium and cobalt. Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas, or additional expansions at Salobo outside of project currently in construction. In addition, five-year guidance also does not include any production from Rosemont, Toroparu, Kutcho, or the Victor project at Sudbury.
4 Payable gold, silver and palladium ounces produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.
5 Under the Marmato PMPA with Aris Gold, the Company will pay a total cash consideration of $110 million, $72 million of which is payable during the construction of the MDZ project, subject to receipt of required permits and licenses, sufficient financing having been obtained to cover total expected capital expenditures, and other customary conditions.
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Consolidated Statements of Earnings
Years Ended December 31
| (US dollars and shares in thousands, except per share amounts) | 2020 | 2019 | |||
| Sales | $ | 1,096,224 | $ 861,332 | ||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 258,559 256,826 | ||||
| $ | 266,763 | ||||
| 243,889 | |||||
| Total cost of sales | $ | 510,652 | $ 515,385 | ||
| Gross margin General and administrative expenses Impairment of mineral stream interests | $ | 585,572 | $ 345,947 54,507 165,912 | ||
| $ | 585,572 | ||||
| 65,698 | |||||
| - | |||||
| Earnings from operations Other (income) expense | $ | 519,874 | $ 125,528 (274) | ||
| $ | 519,874 | ||||
| (2,170) | |||||
| Earnings before finance costs and income taxes Finance costs | $ | 522,044 | $ 125,802 48,730 | ||
| $ | 522,044 | ||||
| 16,715 | |||||
| Earnings before income taxes Income tax recovery | $ | 505,329 | $ 77,072 9,066 | ||
| $ | 505,329 | ||||
| 2,475 | |||||
| Net earnings | $ | 507,804 | $ 86,138 | ||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ | 1.132 | $ 0.193 $ 0.193 446,021 446,930 | ||
| $ | 1.128 | ||||
| 448,694 | |||||
| 450,070 |
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Consolidated Balance Sheets
| (US dollars in thousands) | As at December 31 | As at December 31 2019 | |||
|---|---|---|---|---|---|
| 2020 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Other | $ 103,986 7,138 43,628 | ||||
| $ | 192,683 | ||||
| 5,883 | |||||
| 3,265 | |||||
| Total current assets | $ | 201,831 | $ 154,752 | ||
| Non-current assets Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Long-term equity investments Convertible notes receivable Property, plant and equipment Other | $ 5,734,106 31,741 3,036 309,757 21,856 7,311 15,448 | ||||
| $ | 5,488,391 | ||||
| 33,241 | |||||
| 3,047 | |||||
| 199,878 | |||||
| 11,353 | |||||
| 6,289 | |||||
| 13,242 | |||||
| Total non-current assets | $ | 5,755,441 | $ 6,123,255 | ||
| Total assets | $ | 5,957,272 | $ 6,278,007 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current portion of performance share units Current portion of lease liabilities Other | $ 11,794 10,668 724 41,514 | ||||
| $ | 13,023 | ||||
| 17,297 | |||||
| 773 | |||||
| 76 | |||||
| Total current liabilities | $ | 31,169 | $ 64,700 | ||
| Non-current liabilities Bank debt Lease liabilities Deferred income taxes Performance share units Pension liability | $ 874,500 3,528 148 8,401 810 | ||||
| $ | 195,000 | ||||
| 2,864 | |||||
| 214 | |||||
| 11,784 | |||||
| 1,670 | |||||
| Total non-current liabilities | $ | 211,532 | $ 887,387 | ||
| Total liabilities | $ | 242,701 | $ 952,087 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,599,203 160,701 1,566,016 | ||||
| $ | 3,646,291 | ||||
| 126,882 | |||||
| 1,941,398 | |||||
| Total shareholders' equity | $ | 5,714,571 | $ 5,325,920 | ||
| Total liabilities and shareholders' equity | $ | 5,957,272 | $ 6,278,007 |
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Consolidated Statements of Cash Flows
Years Ended December 31
| (US dollars in thousands) | 2020 | 2019 | |||
| Operating activities Net earnings Adjustments for Depreciation and depletion Gain on disposal of mineral royalty interest Impairment charges Interest expense Equity settled stock based compensation Performance share units Pension expense Income tax expense (recovery) Loss (gain) on fair value adjustment of share purchase warrants held Fair value (gain) loss on convertible note receivable Investment income recognized in net earnings Other Change in non-cash working capital | $ 86,138 258,730 (2,929) 165,912 44,942 5,691 7,834 810 (9,066) 16 1,043 (875) 1,833 (11,837) | ||||
| $ | 507,804 | ||||
| 245,779 | |||||
| - | |||||
| - | |||||
| 12,366 | |||||
| 5,432 | |||||
| 9,398 | |||||
| 806 | |||||
| (2,475) | |||||
| (337) | |||||
| (1,899) | |||||
| (230) | |||||
| 1,487 | |||||
| 1,025 | |||||
| Cash generated from operations before income taxes and interest Income taxes recovered (paid) Interest paid Interest received | $ | 779,156 | $ 548,242 (5,380) (42,059) 817 | ||
| 49 | |||||
| (13,992) | |||||
| 229 | |||||
| Cash generated from operating activities | $ | 765,442 | $ 501,620 | ||
| Financing activities Bank debt repaid Credit facility extension fees Share purchase options exercised Lease payments Dividends paid | $ (389,500) (1,106) 37,038 (637) (129,986) | ||||
| $ | (679,500) | ||||
| (1,373) | |||||
| 21,892 | |||||
| (704) | |||||
| (167,212) | |||||
| Cash (used for) generated from financing activities | $ | (826,897) | $ (484,191) | ||
| Investing activities Mineral stream interests Early deposit mineral stream interests Proceeds on disposal of mineral royalty interest Acquisition of long-term investments Acquisition of convertible note receivable Proceeds on disposal of long-term investments Dividend income received Other | $ (183) (1,500) 9,000 (909) (10,000) 17,824 59 (3,661) | ||||
| $ | (322) | ||||
| (1,500) | |||||
| - | |||||
| (10,671) | |||||
| - | |||||
| 162,942 | |||||
| - | |||||
| (801) | |||||
| Cash generated from (used for) investing activities | $ | 149,648 | $ 10,630 | ||
| Effect of exchange rate changes on cash and cash equivalents | $ | 504 | $ 160 | ||
| Increase in cash and cash equivalents Cash and cash equivalents, beginning of year | $ | 88,697 | $ 28,219 75,767 | ||
| $ | 88,697 | ||||
| 103,986 | |||||
| Cash and cash equivalents, end of year | $ | 192,683 | $ 103,986 |
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Summary of Ounces Produced
| Q4 2019 Q3 2019 Q2 2019 Q1 2019 | |||||
|---|---|---|---|---|---|
| Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | ||
| Gold ounces produced ² Salobo Sudbury 3 Constancia 8 San Dimas 4, 8 Stillwater 5 Other Minto 6 777 9 Total Other | 74,716 73,615 67,056 60,846 6,468 6,082 9,360 11,374 4,757 5,172 4,533 4,826 11,352 11,239 11,496 10,290 3,585 3,238 3,675 3,137 2,189 - - - 3,987 4,278 4,788 4,445 6,176 4,278 4,788 4,445 | ||||
| 62,854 | 63,408 | 59,104 | 62,575 | ||
| 7,757 | 3,798 | 9,257 | 7,795 | ||
| 3,929 | 3,780 | 3,470 | 3,681 | ||
| 11,652 | 9,228 | 6,074 | 11,318 | ||
| 3,290 | 3,176 | 3,222 | 2,955 | ||
| 789 | 1,832 | 2,928 | 2,124 | ||
| 2,866 | 5,278 | 4,728 | 4,551 | ||
| 3,655 | 7,110 | 7,656 | 6,675 | ||
| Total gold ounces produced | 107,054 103,624 100,908 94,918 | ||||
| 93,137 | 90,500 | 88,783 | 94,999 | ||
| Silver ounces produced 2 Peñasquito 8 Antamina 8 Constancia 8 Other Los Filos 8 Zinkgruvan Yauliyacu 8 Stratoni Minto 6 Neves-Corvo Aljustrel 777 9 | 1,895 2,026 702 1,594 1,342 1,223 1,334 1,176 632 686 552 635 55 33 37 38 670 587 590 451 358 620 627 528 147 131 172 143 18 - - - 385 431 392 498 325 240 322 470 81 62 93 95 | ||||
| 2,014 | 1,992 | 967 | 2,658 | ||
| 1,930 | 1,516 | 612 | 1,311 | ||
| 478 | 430 | 254 | 461 | ||
| 6 | 17 | 14 | 29 | ||
| 515 | 498 | 389 | 662 | ||
| 454 | 679 | 273 | 557 | ||
| 185 | 156 | 148 | 183 | ||
| 16 | 15 | 19 | 18 | ||
| 420 | 281 | 479 | 377 | ||
| 440 | 348 | 388 | 352 | ||
| 51 | 96 | 108 | 96 | ||
| Total Other | 2,087 | 2,090 | 1,818 | 2,274 | 2,039 2,104 2,233 2,223 |
| Total silver ounces produced | 5,908 6,039 4,821 5,628 | ||||
| 6,509 | 6,028 | 3,651 | 6,704 | ||
| Palladium ounces produced ² Stillwater 5 | 6,057 5,471 5,736 4,729 | ||||
| 5,672 | 5,444 | 5,759 | 5,312 | ||
| GEOs produced 7 SEOs produced 7 | 186,027 183,394 166,399 168,759 15,502 15,283 13,867 14,063 | ||||
| 178,801 | 170,100 | 140,279 | 182,533 | ||
| 14,900 | 14,175 | 11,690 | 15,211 | ||
| Average payable rate 2 Gold Silver Palladium GEO 7 | |||||
| 95.6% 95.1% 95.3% 95.6% 85.3% 85.1% 83.3% 82.9% 99.4% 83.5% 87.6% 98.5% 91.9% 90.7% 90.8% 90.7% | |||||
| 95.2% | 95.3% | 94.7% | 95.1% | ||
| 86.3% | 86.1% | 81.9% | 85.6% | ||
| 98.2% | 97.0% | 86.5% | 93.0% | ||
| 91.5% | 91.4% | 90.2% | 90.8% |
1) All figures in thousands except gold and palladium ounces produced.
2) Ounces produced represent the quantity of gold, silver and palladium contained in concentrate or doré prior to smelting or refining deductions. Production figures and average 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 or 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. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q4-2020 – 476,000; Q3-2020 – 420,000 ounces; Q2-2020 – 276,000 ounces; Q1-2020 – 419,000 ounces; Q4-2019 – 415,000 ounces; Q3-2019 – 410,000 ounces; Q2-2019 – 401,000 ounces; and Q1-2019 – 351,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) The Minto mine was placed into care and maintenance from October 2018 to October 2019.
7) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,500 per ounce gold; $18.00 per ounce silver; and $2,000 per ounce palladium, consistent with those used in estimating the Company's production guidance for 2020.
8) Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted. Additionally, operations at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community.
9) Operations at 777 were temporarily suspended from October 11, 2020 to November 25, 2020 as a result of an incident that occurred on October 9th during routine maintenance of the hoist rope and skip.
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Summary of Ounces Sold
| Q4 2019 Q3 2019 Q2 2019 Q1 2019 | |||||
|---|---|---|---|---|---|
| Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | ||
| Gold ounces sold Salobo Sudbury 2 Constancia 7 San Dimas 7 Stillwater 3 Other Minto 4 777 Total Other | 58,137 63,064 57,715 84,160 7,394 7,600 8,309 4,061 5,108 4,742 4,409 5,512 11,499 11,374 10,284 11,510 2,925 3,314 3,301 2,856 - - 765 3,307 4,160 4,672 5,294 3,614 4,160 4,672 6,059 6,921 | ||||
| 53,197 | 59,584 | 68,487 | 74,944 | ||
| 7,620 | 7,858 | 7,414 | 4,822 | ||
| 3,853 | 4,112 | 3,024 | 3,331 | ||
| 11,529 | 9,687 | 6,030 | 11,358 | ||
| 3,069 | 3,015 | 3,066 | 3,510 | ||
| 1,540 | - | - | - | ||
| 5,435 | 5,845 | 4,783 | 2,440 | ||
| 6,975 | 5,845 | 4,783 | 2,440 | ||
| Total gold ounces sold | 89,223 94,766 90,077 115,020 | ||||
| 86,243 | 90,101 | 92,804 | 100,405 | ||
| Silver ounces sold Peñasquito 7 Antamina 7 Constancia 7 Other Los Filos 7 Zinkgruvan Yauliyacu 7 Stratoni Minto 4 Neves-Corvo Aljustrel 777 | 1,268 1,233 912 1,164 1,227 1,059 1,186 1,255 672 521 478 735 26 44 26 38 473 459 337 232 561 574 542 15 120 126 240 80 - - 2 30 154 243 194 265 121 139 216 381 62 86 108 99 | ||||
| 1,417 | 1,799 | 1,917 | 2,310 | ||
| 1,669 | 1,090 | 788 | 1,244 | ||
| 442 | 415 | 254 | 350 | ||
| - | 19 | 25 | 37 | ||
| 326 | 492 | 376 | 447 | ||
| 15 | 580 | 704 | 9 | ||
| 169 | 134 | 77 | 163 | ||
| 20 | - | - | - | ||
| 145 | 201 | 236 | 204 | ||
| 280 | 148 | 252 | 123 | ||
| 93 | 121 | 100 | 41 | ||
| Total Other | 1,048 | 1,695 | 1,770 | 1,024 | 1,517 1,671 1,665 1,140 |
| Total silver ounces sold | 4,684 4,484 4,241 4,294 | ||||
| 4,576 | 4,999 | 4,729 | 4,928 | ||
| Palladium ounces sold Stillwater 3 | 5,312 4,907 5,273 5,189 | ||||
| 4,591 | 5,546 | 4,976 | 4,938 | ||
| GEOs sold 5 SEOs sold 5 | 152,514 155,116 148,004 173,464 12,709 12,926 12,334 14,455 | ||||
| 147,277 | 157,478 | 156,188 | 166,121 | ||
| 12,273 | 13,123 | 13,016 | 13,843 | ||
| Cumulative payable ounces PBND 6 Gold Silver Palladium GEO 5 SEO 5 | 98,475 85,335 81,535 75,236 4,142 3,796 3,102 3,315 4,872 4,163 4,504 4,754 154,672 136,441 124,765 121,349 12,889 11,370 10,397 10,112 | ||||
| 71,590 | 75,750 | 79,632 | 88,383 | ||
| 4,486 | 3,437 | 3,222 | 4,961 | ||
| 5,597 | 4,616 | 4,883 | 4,875 | ||
| 132,882 | 123,154 | 124,809 | 154,420 | ||
| 11,073 | 10,263 | 10,401 | 12,868 |
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) The Minto mine was placed into care and maintenance from October 2018 to October 2019.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,500 per ounce gold; $18.00 per ounce silver; and $2,000 per ounce palladium, consistent with those used in estimating the Company's production guidance for 2020.
6) Payable gold, silver and palladium 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) Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.