First Quarter 2022 Financial Results Wheaton Precious Metals Announces Solid Start to 2022
May 5, 2022 TSX | NYSE | LSE: WPM Vancouver, British Columbia Designated News Release FIRST QUARTER 2022 FINANCIAL RESULTS
WHEATON PRECIOUS METALS ANNOUNCES SOLID START TO 2022
“Wheaton once again had a solid start to the year, generating over $210 million in operating cash flow and continuing to return value to our shareholders through our competitive dividend,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “In the first three months of 2022, we added two new streams and increased our interest in a pre-existing stream. In addition, we took a significant step in strengthening our environmental, social and governance strategy by formalizing our climate change policy, including setting a goal of reaching net zero carbon emissions by 2050. The year is off to a good start, and I look forward to advancing on all of our initiatives throughout the year in order to continue building a strong, sustainable business, that delivers value and growth to all of our stakeholders.”
First Quarter 2022 Highlights:
- Over $305 million in revenue and $210 million in operating cash flow during the quarter, resulting in a net cash balance of $376 million as at March 31, 2022.
- $158 million in adjusted net earnings1 during the first quarter of 2022.
- Announced a new precious metal purchase agreement (“PMPA”) on Adventus Mining Corporation’s Curipamba Project in respect of gold and silver production.
- Announced PMPA on Sabina Gold & Silver Corp.’s Goose Project in respect of gold production.
- Amended the PMPA on Aris Gold Corp.’s Marmato Mine, increasing the gold stream in exchange for additional upfront consideration.
- Adopted a climate change policy and commitment to net zero carbon emissions by 2050.
- Declared quarterly dividend1 of $0.15 per common share, an increase of 7% relative to the comparable period in 2021.
Operational Overview
| (all figures in US dollars unless otherwise noted) | Q1 2022 | Q1 2021 Change | |
|---|---|---|---|
| Units produced Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 2 Units sold Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 2 | 78,529 0.7 % 6,765 (8.3)% 5,769 (22.2)% 1,162 (79.8)% 196,756 (12.9)% 75,104 3.7 % 6,657 (16.6)% 5,131 (20.6)% 132 286.7% 172,271 (3.6)% | ||
| 79,087 | |||
| 6,206 | |||
| 4,488 | |||
| 234 | |||
| 171,367 | |||
| 77,901 | |||
| 5,553 | |||
| 4,075 | |||
| 511 | |||
| 166,065 | |||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 | $ | 307,244 | $ 324,119 (5.2)% $ 162,002 (2.8)% $ 0.360 (3.1)% $ 161,132 (1.9)% $ 0.358 (2.2)% $ 232,154 (9.3)% $ 0.516 (9.5)% |
| $ | 157,467 | ||
| $ | 0.349 | ||
| $ | 158,007 | ||
| $ | 0.350 | ||
| $ | 210,540 | ||
| $ | 0.467 |
All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, and per share amounts.12
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Financial Review Revenues
Revenue was $307 million in the first quarter of 2022 representing a 5% decrease from the first quarter of 2021 due primarily to a 4% decrease in the number of GEOs² sold.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2022 were $421 per GEO² as compared to $457 in the first quarter of 2021. This resulted in a cash operating margin¹ of $1,429 per GEO² sold, virtually unchanged as compared with the first quarter of 2021.
Balance Sheet (at March 31, 2022)
- Approximately $376 million of cash on hand.
- The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully undrawn.
- The Company is well positioned to fund all outstanding commitments as well as providing flexibility to acquire additional accretive mineral stream interests.
First Quarter Asset Highlights
Salobo: In the first quarter of 2022, Salobo produced 44,900 ounces of attributable gold, a decrease of approximately 4% relative to the first quarter of 2021. According to Vale S.A. (“Vale”), during the quarter, Salobo operations were impacted by both planned and corrective maintenance in the mill liners. In addition, above average seasonal rain level in the region during the fourth quarter of 2021 impacted mine plans in the first quarter of 2022; however, Vale does not anticipate any impact to the overall 2022 production.
As per Vale’s First Quarter 2022 Performance Report, on January 6, 2022, heavy rainfall in the region of the Salobo III mine expansion caused a landslide that damaged part of a conveyor belt and blocked access to the project site. Vale reports that remediation work on the conveyor is ongoing and is expected to be completed in May. Furthermore, Vale does not foresee the impacts of this event modifying the project delivery date beyond the fourth quarter of 2022. Vale reports that physical completion of the Salobo III mine expansion was 90% at the end of the first quarter.
Antamina: In the first quarter of 2022, Antamina produced 1.3 million ounces of attributable silver, a decrease of approximately 20% relative to the first quarter of 2021, primarily due to lower grades as per the mine plan.
Constancia: In the first quarter of 2022, Constancia produced 0.5 million ounces of attributable silver and 6,300 ounces of attributable gold, an increase of approximately 25% and 157%, respectively, relative to the first quarter of 2021. Silver production increased primarily due to higher throughput and grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%.
Sudbury: In the first quarter of 2022, Vale’s Sudbury mines produced 6,400 ounces of attributable gold, a decrease of approximately 9% relative to the first quarter of 2021 primarily due to lower throughput as a result of the temporary closure of the Totten mine. As per Vale, on September 26, 2021, a large piece of equipment, called a bucket scoop, blocked and damaged the mine shaft resulting in its temporary closure. Vale has reported that production at the Totten mine, which accounts for approximately 15% to 20% of the Company’s attributable gold production from
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Sudbury, resumed in the first quarter of 2022 and that operations at the Sudbury mines are expected to normalize in the second quarter of 2022.
Stillwater: In the first quarter of 2022, the Stillwater mines produced 2,500 ounces of attributable gold and 4,500 ounces of attributable palladium, a decrease of approximately 18% for gold and 22% for palladium relative to the first quarter of 2021. The decrease was due to lower throughput and grades, partially offset by higher recoveries.
San Dimas: In the first quarter of 2022, San Dimas produced 10,500 ounces of attributable gold, virtually unchanged relative to the first quarter of 2021. First Majestic Silver Corp. (“First Majestic”) reports that production in the first quarter of 2022 was impacted due to high absenteeism in the months of January and February caused by an increase in COVID-19 infections within the Tayoltita community.
Other Gold: In the first quarter of 2022, total Other Gold attributable production was 8,500 ounces, a decrease of approximately 4% relative to the first quarter of 2021, primarily due to the mining of lower grade material at 777, which is scheduled to close in June 2022.
Other Silver: In the first quarter of 2022, total Other Silver attributable production was 2.2 million ounces, a decrease of approximately 14% relative to the first quarter of 2021, primarily due to lower grades at Aljustrel and the placement of Stratoni into care and maintenance.
Voisey’s Bay: In the first quarter of 2022, the Voisey's Bay mine produced 234 thousand pounds of attributable cobalt, a decrease of approximately 80% relative to the first quarter of 2021. The apparent significant decrease relative to the first quarter of 2021 was primarily attributed to Wheaton being contractually entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay Mine from prior periods. As per Vale’s First Quarter 2022 Performance Report, physical completion of the Voisey’s Bay underground mine extension was 70% at the end of the first quarter.
Produced But Not Yet Delivered3 and Inventory
As at March 31, 2022, payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:
- 82,400 payable gold ounces, a decrease of 2,600 ounces during Q1 2022, primarily due to decreases at the Constancia and 777 mines partially offset by an increase at the Sudbury mines.
- 3.9 million payable silver ounces, a decrease of 0.3 million ounces during Q1 2022.
- 5,500 payable palladium ounces, virtually unchanged during Q1 2022.
- 550 thousand payable cobalt pounds, virtually unchanged during Q1 2022.
As of March 31, 2022, approximately 410 thousand pounds of cobalt were held in inventory by Wheaton, a decrease of 247 pounds during Q1 2022.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.
Corporate Development
Curipamba PMPA: On January 17, 2022, the Company entered into a PMPA with Adventus Mining Corporation (“Adventus”) in respect of the Curipamba Project (“Curipamba”) located in Ecuador. Under the Curipamba PMPA, Wheaton will purchase 50% of the payable gold production until 145,000 ounces have been delivered, thereafter dropping to 33% of payable gold
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production for the life of the mine and 75% of the payable silver production until 4.6 million ounces have been delivered, thereafter dropping to 50% for the life of mine. Under the terms of the agreement, the Company is committed to pay Adventus total upfront cash consideration of $175.5 million, $13 million of which is available pre-construction and $500,000 of which will be paid to support certain local community development initiatives around Curipamba. The remainder will be payable in four staged installments during construction, subject to various customary conditions being satisfied. In addition, Wheaton will make ongoing production payments for the gold and silver ounces delivered equal to 18% of the spot prices until the value of gold and silver delivered, net of the production payment, is equal to the upfront consideration of $175.5 million, at which point the production payment will increase to 22% of the spot prices.
Marathon PMPA: On January 26, 2022, the Company entered into the previously announced PMPA with Generation Mining Limited (“Gen Mining”) in respect of the Marathon Project located in Ontario, Canada. Under the Marathon PMPA, Wheaton will purchase 100% of the payable gold production until 150,000 ounces have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces have been delivered, thereafter dropping to 15% for the life of mine. Under the terms of the agreement, the Company has committed to pay Gen Mining total upfront cash consideration of C$240 million, C$40 million of which will be paid prior to construction and to be used for the development of the Marathon Project, with the remainder payable in four staged installments during construction, subject to various customary conditions being satisfied and pre-determined completion tests. Of this amount, $16 million (C$20 million) was paid on March 31, 2022. In addition, Wheaton will make ongoing production payments for the gold and platinum ounces delivered equal to 18% of the spot prices until the value of gold and platinum delivered, net of the production payment, is equal to the upfront consideration of C$240 million, at which point the production payment will increase to 22% of the spot prices.
Goose PMPA: On February 8, 2022, the Company announced that it had entered into a PMPA with Sabina Gold & Silver Corp. (“Sabina”) in respect of the Goose Project, part of Sabina’s Back River Gold District located in Nunavut, Canada. Under the Goose PMPA, Wheaton will purchase 4.15% of the payable gold production until 130,000 ounces have been delivered, thereafter dropping to 2.15% until 200,000 ounces have been delivered, thereafter dropping to 1.5% of the payable gold production. Under the terms of the agreement, the Company has committed to pay Sabina an upfront payment of $125 million in four equal installments during construction of the Goose Project, subject to customary conditions. In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot gold price until the value of gold, net of the production payment is equal to the upfront consideration of $125 million, at which point the production payment will increase to 22% of the spot gold price.
Amendment to the Marmato PMPA: On March 21, 2022, the Company amended its PMPA with Aris Gold Corporation (“Aris Gold”) in respect of the Marmato mines. Under the amended terms, Wheaton will purchase 10.5% of the gold production and 100% of the silver production from the Marmato Upper and Lower mines until 310,000 ounces of gold and 2.15 million ounces of silver have been delivered, after which the stream drops to 5.25% of the gold production and 50% of the silver production for the life of mine. This increases the gold stream from the original Marmato PMPA under which Wheaton was entitled to purchase 6.5% of the gold production until 190,000 ounces were delivered, after which the stream was to drop to 3.25% of the gold production. The silver stream is unchanged. Under the terms of the amended Marmato PMPA, the Company is committed to pay Aris Gold total upfront cash payments of $175 million ($65 million relating to the increase in the gold stream). Of this amount, $53 million ($15 million relating to the increase in the gold stream) has been paid and the remaining amount is payable during the construction of the Marmato Lower Mine, subject to customary conditions.
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Sustainability
Climate Change Commitments: On February 9, 2022, Wheaton announced the adoption of a Climate Change and Environmental Policy and commitment to net zero carbon emissions by 20504. As part of this policy, Wheaton plans to establish targets across both Scope 2 and Scope 3 attributable emissions to support a 1.5° C trajectory. The Company has also committed an initial $4M to support our mining partners’ efforts to move to renewable energy sources and reduce emissions at the mines in which we have an interest.
San Dimas Receives Recognition for Sustainability Efforts: The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic Silver Corp.’s (“First Majestic”) San Dimas mining unit the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This distinction from within the Mexican community recognizes excellence in environmental and social responsibility and ethical management.
Partner Community Investment Program: Wheaton continues to support a wide range of programs with mining partners including Vale, Glencore, Hudbay and First Majestic Silver, focused on education, health, entrepreneurial support, and community engagement opportunities in the communities near the mines from which Wheaton receives precious metals. In the first quarter of 2022, all Partner Community Investment programs continued to operate as planned such as the continued enrollment of existing schoolteachers and administrators into the Enseña Peru training program, aimed at improving the academic performance for students living close to the Antamina mine. During the quarter, the Wheaton team focused on engaging with partners on identifying and selecting programs and initiatives to be supported by Wheaton for 2022 and beyond.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world’s premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.
Wheaton's estimated attributable production in 2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000 to 48,000 GEOs2 of other metals, resulting in production of approximately 700,000 to 760,000 GEOs2, unchanged from previous guidance. For the five-year period ending in 2026, the Company estimates that average production will amount to 850,000 GEOs2, while for the ten-year period ending in 2031, the Company estimates that average annual production will amount to 910,000 GEOs2, also unchanged from previous guidance.
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.
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Webcast and Conference Call Details
A conference call and webcast will be held on Friday, May 6, 2022 starting at 8:00am PT / 11:00 am ET to discuss these results. To participate in the live call please use one of the following methods:
Dial toll free from Canada or the US: 1-888-664-6383 Dial from outside Canada or the US: 1-416-764-8650 Pass code: 78834538 Live webcast: Webcast URL
Participants should dial in five to ten minutes before the call.
The accompanying slideshow will also be available in PDF format on the ‘Presentations’ page of the Wheaton Precious Metals website before the conference call.
The conference call will be recorded and available until May 13, 2022 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888-390-0541 Dial from outside Canada or the US: 1-416-764-8677 Pass code: 834538 # Archived webcast: Webcast URL
This earnings release should be read in conjunction with Wheaton Precious Metals’ MD&A and Financial Statements, which are available on the Company’s website at www.wheatonpm.com and have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations is a “qualified person” as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release.
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx.
End Notes
1 Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton’s news release date May 5, 2022, titled “Wheaton Precious Metals Declares Quarterly Dividend.”
2 Commodity price assumptions for the gold equivalent production and sales in 2022 are $1,800 / ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other metal includes palladium and cobalt. 3 Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.
4 Net zero includes emissions reductions in line with a 1.5 trajectory across Scopes 1, 2 and 3. Achievement of net zero may include the use of offsets for residual emissions in 2050.
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Condensed Interim Consolidated Statements of Earnings
Three Months Ended March 31
| (US dollars and shares in thousands, except per share amounts - unaudited) | 2021 | ||
| 2022 | |||
| Sales | $ 324,119 | ||
| $ | 307,244 | ||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 78,783 70,173 | ||
| $ | 69,994 | ||
| 57,402 | |||
| Total cost of sales | $ 148,956 | ||
| $ | 127,396 | ||
| Gross margin General and administrative expenses Share based compensation Donations and community investments | $ 175,163 9,735 1,630 606 | ||
| $ | 179,848 | ||
| 9,403 | |||
| 9,902 | |||
| 813 | |||
| Earnings from operations Other (income) expense | $ 163,192 119 | ||
| $ | 159,730 | ||
| 170 | |||
| Earnings before finance costs and income taxes Finance costs | $ 163,073 1,573 | ||
| $ | 159,560 | ||
| 1,422 | |||
| Earnings before income taxes Income tax (expense) recovery | $ 161,500 502 | ||
| $ | 158,138 | ||
| (671) | |||
| Net earnings | $ 162,002 | ||
| $ | 157,467 | ||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ 0.360 $ 0.360 449,509 450,600 | ||
| $ | 0.349 | ||
| $ | 0.348 | ||
| 450,915 | |||
| 451,953 |
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Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | As at March 31 | As at December 31 2021 | |||
|---|---|---|---|---|---|
| 2022 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Other | $ 226,045 11,577 12,102 | ||||
| $ | 376,163 | ||||
| 27,939 | |||||
| 9,875 | |||||
| Total current assets | $ | 413,977 | $ 249,724 | ||
| 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 | $ 5,905,797 34,741 6,606 61,477 17,086 5,509 15,211 | ||||
| $ | 5,894,884 | ||||
| 45,342 | |||||
| 6,606 | |||||
| 92,194 | |||||
| - | |||||
| 5,183 | |||||
| 11,847 | |||||
| Total non-current assets | $ | 6,056,056 | $ 6,046,427 | ||
| Total assets | $ | 6,470,033 | $ 6,296,151 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Dividends payable Current portion of performance share units Current portion of lease liabilities | $ 13,935 - 14,807 813 | ||||
| $ | 11,861 | ||||
| 67,687 | |||||
| 31,413 | |||||
| 830 | |||||
| Other | 150 | 136 | |||
| Total current liabilities Non-current liabilities Lease liabilities Deferred income taxes Performance share units Pension liability | $ | 111,941 | $ 29,691 2,060 100 11,498 2,685 | ||
| $ | 111,941 | ||||
| 1,868 | |||||
| 121 | |||||
| 3,759 | |||||
| 2,883 | |||||
| Total non-current liabilities | $ | 8,631 | $ 16,343 | ||
| Total liabilities | $ | 120,572 | $ 46,034 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,698,998 47,036 2,504,083 | ||||
| $ | 3,711,294 | ||||
| 44,304 | |||||
| 2,593,863 | |||||
| Total shareholders' equity | $ | 6,349,461 | $ 6,250,117 | ||
| Total liabilities and shareholders' equity | $ | 6,470,033 | $ 6,296,151 |
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Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended March 31
| (US dollars in thousands - unaudited) | 2022 | 2021 | |||
| Operating activities Net earnings Adjustments for Depreciation and depletion 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 | $ 162,002 70,649 262 1,325 305 151 (502) 950 (1,238) (2) 593 (1,972) | ||||
| $ | 157,467 | ||||
| 57,795 | |||||
| 26 | |||||
| 1,342 | |||||
| 8,560 | |||||
| 158 | |||||
| 671 | |||||
| 743 | |||||
| 743 | |||||
| 1,380 | |||||
| (194) | |||||
| (1,514) | |||||
| (15,918) | |||||
| Cash generated from operations before income taxes and interest Income taxes recovered (paid) Interest paid Interest received | $ | 210,516 | $ 232,523 (30) (341) 2 | ||
| (32) | |||||
| (26) | |||||
| 82 | |||||
| Cash generated from operating activities | $ | 210,540 | $ 232,154 | ||
| Financing activities Bank debt repaid Share purchase options exercised Lease payments | $ (195,000) 4,793 (214) | ||||
| $ | - | ||||
| 5,772 | |||||
| (200) | |||||
| Cash (used for) generated from financing activities | $ | 5,572 | $ (190,421) | ||
| Investing activities Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Acquisition of long-term investments Proceeds on disposal of long-term investments Dividends received Other | $ (151,019) (750) (3,561) - 112,188 - (134) | ||||
| $ | (45,252) | ||||
| (750) | |||||
| - | |||||
| (20,135) | |||||
| - | |||||
| 112 | |||||
| (36) | |||||
| Cash (used for) generated from investing activities | $ | (66,061) | $ (43,276) | ||
| Effect of exchange rate changes on cash and cash equivalents | $ | 67 | $ 22 | ||
| Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period | $ | 150,118 | $ (1,521) 192,683 | ||
| $ | 150,118 | ||||
| 226,045 | |||||
| Cash and cash equivalents, end of period | $ | 376,163 | $ 191,162 |
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Summary of Units Produced
| Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 | ||
|---|---|---|
| Q1 2022 | ||
| Gold ounces produced ² Salobo Sudbury 3 Constancia 7 San Dimas 4, 7 Stillwater 5 Other Minto 777 8 Marmato | 48,235 55,205 55,590 46,622 62,854 63,408 59,104 4,379 148 4,563 7,004 6,659 3,798 9,257 9,857 8,533 5,525 2,453 3,929 3,780 3,470 13,714 11,936 11,478 10,491 11,652 9,228 6,074 2,664 2,949 2,962 3,041 3,290 3,176 3,222 3,506 1,703 3,206 2,638 789 1,832 2,928 4,462 4,717 5,035 6,280 2,866 5,278 4,728 479 433 1,713 - - - - | |
| 44,883 | ||
| 6,395 | ||
| 6,311 | ||
| 10,461 | ||
| 2,497 | ||
| 4,060 | ||
| 4,003 | ||
| 477 | ||
| Total Other | 8,540 | 8,447 6,853 9,954 8,918 3,655 7,110 7,656 |
| Total gold ounces produced | 87,296 85,624 90,072 78,529 92,039 90,500 88,783 | |
| 79,087 | ||
| Silver ounces produced 2 Peñasquito 7 Antamina 7 Constancia 7 Other Los Filos 7 Zinkgruvan Yauliyacu 7 Stratoni 9 Minto Neves-Corvo Aljustrel Cozamin Marmato Keno Hill 777 8 | 2,145 2,180 2,026 2,202 2,014 1,992 967 1,366 1,548 1,558 1,577 1,930 1,516 612 578 521 468 406 478 430 254 37 17 26 31 6 17 14 482 658 457 420 515 498 389 382 372 629 737 454 679 273 129 18 164 165 185 156 148 44 25 33 21 16 15 19 522 362 408 345 420 281 479 325 314 400 474 440 348 388 213 199 183 230 - - - 7 10 39 - - - - 30 44 55 27 - - - 96 81 83 130 51 96 108 | |
| 2,219 | ||
| 1,260 | ||
| 506 | ||
| 23 | ||
| 577 | ||
| 637 | ||
| - | ||
| 45 | ||
| 344 | ||
| 287 | ||
| 186 | ||
| 11 | ||
| 20 | ||
| 91 | ||
| Total Other | 2,221 | 2,267 2,100 2,477 2,580 2,087 2,090 1,818 |
| Total silver ounces produced | 6,356 6,349 6,529 6,765 6,509 6,028 3,651 | |
| 6,206 | ||
| Palladium ounces produced ² Stillwater 5 | 4,733 5,105 5,301 5,769 5,672 5,444 5,759 | |
| 4,488 | ||
| Cobalt pounds produced ² Voisey's Bay | 381 370 380 1,162 ¹⁰ - - - | |
| 234 | ||
| GEOs produced 6 SEOs produced 6 | 184,551 183,012 190,272 196,756 185,436 177,230 144,188 13,841 13,726 14,270 14,757 13,908 13,292 10,814 | |
| 171,367 | ||
| 12,853 | ||
| Average payable rate 2 Gold Silver Palladium Cobalt GEO 6 | 96.0% 96.0% 95.8% 95.0% 95.2% 95.3% 94.7% 86.0% 86.6% 86.9% 86.6% 86.3% 86.1% 81.9% 92.2% 94.5% 95.0% 91.6% 93.6% 94.0% 90.8% 93.3% 93.3% 93.3% 93.3% n.a. n.a. n.a. 91.4% 91.3% 91.8% 90.7% 91.2% 91.2% 90.0% | |
| 95.2% | ||
| 86.1% | ||
| 92.7% | ||
| 93.3% | ||
| 90.6% |
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees.
4) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021
- 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
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. 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 and had been temporarily suspended from June 22, 2021 to July 26, 2021 as the result of illegal blockades by a group of unionized employees and members of the Xochipala community.
8) 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.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey's Bay mine. As per the Voisey’s Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay mine in the previous quarter.
- 11 -
Summary of Units Sold
| Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 | ||
|---|---|---|
| Q1 2022 | ||
| Gold ounces sold Salobo Sudbury 2 Constancia 6 San Dimas 6 Stillwater 3 Other Minto 777 Marmato | 47,171 35,185 57,296 51,423 53,197 59,584 68,487 965 1,915 6,945 3,691 7,620 7,858 7,414 6,196 8,159 2,321 1,676 3,853 4,112 3,024 15,182 11,346 11,214 10,273 11,529 9,687 6,030 2,933 2,820 2,574 3,074 3,069 3,015 3,066 2,462 1,907 2,359 2,390 1,540 - - 4,290 5,879 5,694 2,577 5,435 5,845 4,783 423 438 1,687 - - - - | |
| 42,513 | ||
| 3,712 | ||
| 10,494 | ||
| 10,070 | ||
| 2,628 | ||
| 3,695 | ||
| 4,388 | ||
| 401 | ||
| Total Other | 8,484 | 7,175 8,224 9,740 4,967 6,975 5,845 4,783 |
| Total gold ounces sold | 79,622 67,649 90,090 75,104 86,243 90,101 92,804 | |
| 77,901 | ||
| Silver ounces sold Peñasquito 6 Antamina 6 Constancia 6 Other Los Filos 6 Zinkgruvan Yauliyacu 6 Stratoni Minto Neves-Corvo Aljustrel Cozamin Marmato Keno Hill 777 | 1,818 2,210 1,844 2,174 1,417 1,799 1,917 1,297 1,502 1,499 1,930 1,669 1,090 788 351 484 295 346 442 415 254 17 12 42 27 - 19 25 346 354 355 293 326 492 376 551 182 601 1,014 15 580 704 42 41 167 117 169 134 77 27 24 29 26 20 - - 259 193 215 239 145 201 236 133 155 208 257 280 148 252 174 170 168 173 - - - 8 10 35 - - - - 24 51 33 12 - - - 69 99 109 49 93 121 100 | |
| 2,188 | ||
| 1,468 | ||
| 644 | ||
| 42 | ||
| 355 | ||
| 44 | ||
| 133 | ||
| 31 | ||
| 204 | ||
| 145 | ||
| 177 | ||
| 8 | ||
| 27 | ||
| 87 | ||
| Total Other | 1,253 | 1,650 1,291 1,962 2,207 1,048 1,695 1,770 |
| Total silver ounces sold | 5,116 5,487 5,600 6,657 4,576 4,999 4,729 | |
| 5,553 | ||
| Palladium ounces sold Stillwater 3 | 4,641 5,703 3,869 5,131 4,591 5,546 4,976 | |
| 4,075 | ||
| Cobalt pounds sold Voisey's Bay | 228 131 395 132 - - - | |
| 511 | ||
| GEOs sold 4 SEOs sold 4 | 157,439 149,862 176,502 172,271 152,613 163,218 161,664 11,808 11,240 13,238 12,920 11,446 12,241 12,125 | |
| 166,065 | ||
| 12,455 | ||
| Cumulative payable units PBND 5 Gold ounces Silver ounces Palladium ounces Cobalt pounds GEO 4 SEO 4 | 84,989 80,819 66,238 70,072 70,555 75,750 79,632 4,200 3,845 3,802 3,738 4,486 3,437 3,222 5,629 5,619 6,822 5,373 5,597 4,616 4,883 596 637 777 820 - - - 158,477 150,317 139,145 141,206 136,894 126,968 128,291 11,886 11,274 10,436 10,590 10,267 9,523 9,622 | |
| 82,350 | ||
| 3,893 | ||
| 5,535 | ||
| 550 | ||
| 150,794 | ||
| 11,310 | ||
| Inventory on hand Cobalt pounds | 657 488 134 132 - - - | |
| 410 |
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
5) Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered (“PBND”) are based on management estimates. These figures may be updated in future periods as additional information is received.
6) Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.
- 12 -
Results of Operations
The operating results of the Company’s reportable operating segments are summarized in the tables and commentary below.
Three Months Ended March 31, 2022
Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced² Sold Per Unit) Unit) 3 Unit) Sales Earnings Operations Assets
Gold
| Salobo | 44,883 42,513 $ 1,872 $ | 416 $ | 334 $ 79,564 $ | 47,684 $ 61,869 $ 2,423,755 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Sudbury4 | 6,395 | 3,712 | 1,861 | 400 | 1,092 | 6,909 | 1,370 | 5,425 | 303,115 |
| Constancia | 6,311 10,494 | 1,872 | 412 | 271 | 19,641 | 12,471 | 15,482 | 100,944 | |
| San Dimas | 10,461 10,070 | 1,872 | 618 | 260 | 18,846 | 10,008 | 12,621 | 164,110 | |
| Stillwater | 2,497 | 2,628 | 1,872 | 329 | 429 | 4,918 | 2,926 | 4,054 | 218,657 |
| Other5 | 8,540 | 8,484 | 1,862 | 771 | 25 | 15,797 | 9,048 | 8,822 | 404,729 |
| 79,087 77,901 $ 1,870 $ | 477 $ | 321 $ 145,675 $ | 83,507 $ 108,273 $ 3,615,310 |
Silver
| Peñasquito | 2,219 | 2,188 $ 24.10 $ | 4.36 $ | 3.57 $ 52,727 $ | 35,387 $ 43,188 $ | 314,217 | |||
| Antamina | 1,260 | 1,468 | 24.09 | 4.94 | 7.06 | 35,359 | 17,747 | 27,759 | 569,691 |
| Constancia | 506 | 644 | 24.10 | 6.08 | 6.33 | 15,513 | 7,526 | 11,913 | 201,811 |
| Other6 | 2,221 | 1,253 | 24.52 | 6.07 | 3.45 | 30,733 | 18,797 | 23,874 | 589,875 |
| 6,206 | 5,553 $ 24.19 $ | 5.10 $ | 4.78 $ 134,332 $ | 79,457 $ 106,734 $ 1,675,594 |
Palladium
Stillwater 4,488 4,075 $ 2,339 $ 394 $ 399 $ 9,533 $ 6,303 $ 7,930 $ 231,203
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 4,820
Cobalt
Voisey's Bay 234 511 $ 34.61 $ 5.76 $ 8.17 $ 17,704 $ 10,581 $ 3,263 $ 367,957 Operating results $ 307,244 $ 179,848 $ 226,200 $ 5,894,884
Other
| General and administrative $ (9,403) $ Share based compensation (9,902) Donations and community investments (813) Finance costs (1,422) Other (170) Income tax (671) | (15,128) |
| - | |
| (430) | |
| (1,077) | |
| 1,007 | |
| (32) |
Total other $ (22,381) $ (15,660) $ 575,149 $ 157,467 $ 210,540 $ 6,470,033
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Rosemont, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests.
6) Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the nonoperating Loma de La Plata, Pascua-Lama, Rosemont, Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021.
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended March 31, 2022 were as follows:
Three Months Ended March 31, 2022 Average Cash
| Realized | Average | Operating | Average | Gross | |||
|---|---|---|---|---|---|---|---|
| Price | Cash Cost | Margin | Depletion | Margin | |||
| Ounces | Ounces | ($'s Per | ($'s Per | ($'s Per | ($'s Per | ($'s Per | |
| Produced1, 2 | Sold2 | Ounce) | Ounce)3 | Ounce)4 | Ounce) | Ounce) | |
| Gold equivalent basis5 | 171,367 | 166,065 | $ 1,850 | $ 421 | $ 1,429 | $ 346 | $ 1,083 |
| Silver equivalent basis5 | 12,853 | 12,455 | $ 24.67 | $ 5.62 | $ 19.05 | $ 4.61 | $ 14.44 |
1) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.