WHEATON PRECIOUS METALS ANNOUNCES THIRD QUARTER RESULTS FOR 2018 AND DECLARES FOURTH QUARTERLY DIVIDEND OF 2018 On track to exceed annual production guidance
FOR IMMEDIATE RELEASE TSX: WPM November 14, 2018 NYSE: WPM
WHEATON PRECIOUS METALS ANNOUNCES THIRD QUARTER RESULTS FOR 2018 AND DECLARES FOURTH QUARTERLY DIVIDEND OF 2018 On track to exceed annual production guidance
Vancouver, British Columbia – Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) is pleased to announce its results for the third quarter ended September 30, 2018. All figures are presented in United States dollars unless otherwise noted.
In the third quarter of 2018, Wheaton generated close to $110 million in operating cash flow, and completed the acquisition of a gold and palladium stream on the Stillwater and East Boulder mines (collectively “Stillwater”). During the third quarter, Wheaton received its first deliveries of gold and palladium from Stillwater. Through the first nine months of 2018, Wheaton had record gold production and sales volumes, and is currently on track to exceed annual production guidance.
Operational Overview
| Q3 2018 | Q3 2017 Change | ||
|---|---|---|---|
| Ounces produced Silver Gold Palladium Ounces sold Silver Gold Palladium | 7,595 (24.9)% 95,216 6.7 % - n.a 5,758 (12.9)% 82,548 8.1 % - n.a | ||
| 5,701 | |||
| 101,552 | |||
| 8,817 | |||
| 5,018 | |||
| 89,242 | |||
| 3,668 | |||
| Sales price per ounce Silver Gold Palladium Cash costs per ounce 1 Silver 1 Gold 1 Palladium 1 Cash operating margin per ounce 1 Silver 1 Gold 1 Palladium 1 | $ 16.87 (12.3)% $ 1,283 (5.7)% $ n.a. n.a $ 4.43 13.8 % $ 396 5.6 % $ n.a. n.a $ 12.44 (21.5)% $ 887 (10.7)% $ n.a. n.a | ||
| $ | 14.80 | ||
| $ | 1,210 | ||
| $ | 955 | ||
| $ | 5.04 | ||
| $ | 418 | ||
| $ | 169 | ||
| $ | 9.76 | ||
| $ | 792 | ||
| $ | 786 | ||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 Dividends declared 1 Per share | $ | 185,769 | $ 203,034 (8.5)% $ 66,578 (48.9)% $ 0.15 (46.7)% $ 66,578 (47.2)% $ 0.15 (47.4)% $ 129,121 (16.0)% $ 0.29 (17.2)% $ 44,201 (9.7)% $ 0.10 (10.0)% |
| $ | 34,021 | ||
| $ | 0.08 | ||
| $ | 35,132 | ||
| $ | 0.08 | ||
| $ | 108,413 | ||
| $ | 0.24 | ||
| $ | 39,921 | ||
| $ | 0.09 |
All amounts in thousands except gold and palladium ounces produced and sold, per ounce amounts and per share amounts.
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Highlights
- The decrease in attributable silver production for the three months ended September 30, 2018, was primarily due to the termination of the San Dimas silver purchase agreement and the entering into of the new San Dimas precious metals purchase agreement (“First Majestic PMPA”) effective May 10, 2018, the expiry of the streaming agreement relative to the Lagunas Norte, Veladero and Pierina mines on March 31, 2018, and lower production at Peñasquito due to lower throughput and planned lower grades from stockpiles during the commissioning of the now fully constructed Peñasquito Pyrite Leach Project (“PLP”).
- The increase in attributable gold production for the three months ended September 30, 2018, was primarily due to the entering into of the First Majestic PMPA, the acquisition of the new gold stream at Stillwater, partially offset by lower production at both Salobo and Minto.
- The decrease in silver sales volume for the three months ended September 30, 2018, was due to the lower production levels, partially offset by positive changes in the balance of payable silver produced but not yet delivered to Wheaton.
- The increase in gold sales volume for the three months ended September 30, 2018, was primarily the result of increased production levels coupled with positive changes in the balance of payable gold produced but not yet delivered to Wheaton.
- Declared quarterly dividend of $0.09 per common share.
- On July 25, 2018, the Company, through its wholly owned subsidiary Wheaton Precious Metals International Ltd. (“Wheaton International”), completed the acquisition from Sibanye Gold Limited ("Sibanye-Stillwater") of a fixed percentage of gold and palladium production from Stillwater effective July 1, 2018.
Reconfirming 2018 Production Guidance
- Wheaton’s estimated attributable production in 2018 is on track to exceed its guidance of approximately 355,000 ounces of gold, 22.5 million ounces of silver and 10,400 ounces of palladium.
Subsequent to the Quarter
- On October 24, 2018, Vale S.A. (“Vale”) announced the approval of the Salobo III mine expansion, which if completed as proposed, would increase processing throughput capacity from 24 million tonnes per annum (“Mtpa”) to 36 Mtpa once fully ramped up (the “Salobo Expansion”).
“Our robust precious metals business continued to grow in the third quarter with the first production of gold and palladium from our latest stream, Stillwater, exceeding our expectations. With the addition of Stillwater, Wheaton had record gold production and sales volume in the first nine months of 2018 resulting in operating cash flow of almost $370 million.” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “In addition, we believe we are currently well positioned to exceed our production guidance for 2018. Finally, we also look forward to Vale pursuing their announced expansion of the Salobo mine in Brazil. Salobo has proven itself to be an exceptional mine, delivering metal to both Vale and Wheaton at a low cost.”
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Financial Review
Revenues
Revenue was $186 million in the third quarter of 2018, on sales volume of 5.0 million ounces of silver, 89,200 ounces of gold and 3,700 ounces of palladium. This represents a 9% decrease from the $203 million of revenue generated in the third quarter of 2017 due primarily to (i) a 13% decrease in the number of silver ounces sold; (ii) a 12% decrease in the average realized silver price ($14.80 in Q3 2018 compared with $16.87 in Q3 2017); and (iii) a 6% decrease in the average realized gold price ($1,210 in Q3 2018 compared with $1,283 in Q3 2017); partially offset by (iv) an 8% increase in the number of gold ounces sold; and (v) the first sales of palladium.
Costs and Expenses
Average cash costs¹ in the third quarter of 2018 were $5.04 per silver ounce sold, $418 per gold ounce sold and $169 per palladium ounce sold, as compared with $4.43 per silver ounce and $396 per gold ounce during the comparable period of 2017. This resulted in a cash operating margin¹ of $9.76 per silver ounce sold, $792 per gold ounce sold and $786 per palladium ounce sold, a reduction of 22% and 11% for silver and gold, respectively, as compared with Q3 2017. The decrease in the cash operating margin was primarily due to a 12% decrease in the average realized silver price and a 6% decrease in the average realized gold price in Q3 2018 compared with Q3 2017.
Earnings and Operating Cash Flows
Adjusted net earnings¹ and cash flow from operations in the third quarter of 2018 were $35 million ($0.08 per share) and $108 million ($0.24 per share¹), compared with $67 million ($0.15 per share) and $129 million ($0.29 per share¹) for the same period in 2017, a decrease of 47% and 16%, respectively.
Balance Sheet
At September 30, 2018, the Company had approximately $119 million of cash on hand and $1.4 billion outstanding under the Company's $2 billion revolving term loan (the "Revolving Facility").
Third Quarter Asset Highlights
During the third quarter of 2018, attributable production was 5.7 million ounces of silver, 101,600 ounces of gold and 8,800 ounces of palladium, representing a decrease of 25% and an increase of 7% for silver and gold, respectively, as compared with the third quarter of 2017.
Operational highlights for the quarter ended September 30, 2018, based upon counterparties’ reporting, are as follows:
Salobo
In the third quarter of 2018, Salobo produced 68,600 ounces of attributable gold, a decrease of approximately 6% relative to the third quarter of 2017 due to slightly lower grades as expected due to mine sequencing in the open pit. As discussed below, subsequent to the quarter, Vale announced the approval of the Salobo Expansion.
Peñasquito
In the third quarter of 2018, Peñasquito produced 1.0 million ounces of attributable silver, a decrease of approximately 36% relative to the third quarter of 2017 due to lower throughput and planned lower grades from stockpiles during the commissioning of the now fully
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constructed PLP. According to Goldcorp Inc.’s (“Goldcorp”) third quarter of 2018 MD&A, lower production was a result of the planned transition from higher grade ore in the Peñasco pit to lower grade ore from stockpiles during the first three quarters of 2018. This transition facilitated the stripping campaign in the Peñasco pit and the pre-stripping campaign in the newly developed Chile Colorado pit. Goldcorp further notes that production in the third quarter of 2018 was impacted by a reduction in mill throughput as much harder low-grade stockpiles were processed during commissioning of the Carbon Pre-flotation plant, a component of the PLP.
According to Goldcorp, commissioning of the PLP commenced, with commercial production expected in the fourth quarter of 2018. In addition, Goldcorp reports that substantially all of Peñasquito’s production in the fourth quarter will come from higher grade ore from the main Peñasco pit.
Antamina
In the third quarter of 2018, Antamina produced 1.5 million ounces of attributable silver, a decrease of approximately 15% relative to the third quarter of 2017 as expected due to mine sequencing in the open pit.
San Dimas
In the third quarter of 2018, San Dimas produced 10,600 ounces of attributable gold. According to First Majestic Silver Corp.’s (“First Majestic”) third quarter of 2018 production report, silver equivalent production in the quarter increased 90% relative to the prior quarter due to increased throughput as some of the lower grade stopes that were deemed uneconomical under the old streaming agreement have now become economical under the new streaming agreement. First Majestic also highlighted increased recoveries as a result of an additional agitator tank being installed in September which increases retention times.
Sudbury
In the third quarter of 2018, Vale’s Sudbury mines produced 6,000 ounces of attributable gold, a decrease of approximately 30% relative to the third quarter of 2017 primarily due to lower throughput caused by a planned maintenance shutdown in August (planned maintenance in 2017 occurred in June).
Constancia
In the third quarter of 2018, Constancia produced 0.7 million ounces of attributable silver and 3,300 ounces of attributable gold, an increase of approximately 19% and 31%, respectively, relative to the third quarter of 2017. Increased silver and gold production was primarily due to record mill throughput and higher grades.
Stillwater
In the third quarter of 2018, Stillwater produced 6,400 ounces of attributable gold and 8,800 ounces of attributable palladium. On July 25, 2018, the Company, through its wholly owned subsidiary Wheaton International, completed the acquisition from Sibanye-Stillwater of a fixed percentage of gold and palladium production from Stillwater. As part of the agreement, Wheaton is entitled to the attributable gold and palladium production for which an offtaker payment was received after July 1, 2018, resulting in reported production for the third quarter including some material processed in the previous quarter. Wheaton’s 2018 production guidance for Stillwater was approximately 5,400 ounces of gold and 10,400 ounces of palladium. For more details on the acquisition, please refer to Wheaton’s news release dated July 16, 2018.
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Other Silver
In the third quarter of 2018, total Other Silver attributable production was 2.4 million ounces, a decrease of approximately 4% relative to the third quarter of 2017. The decrease was driven primarily by the cessation of attributable production from the Lagunas Norte, Veladero and Pierina mines as the silver purchase agreement with Barrick Gold Corp. (“Barrick”) related to these mines expired on March 31, 2018, and lower production at Zinkgruvan, partially offset by the start-up of attributable production at the Aljustrel mine.
Other Gold
In the third quarter of 2018, total Other Gold attributable production was 6,700 ounces, a decrease of approximately 41% relative to the third quarter of 2017. The decrease was due primarily to lower production at both the 777 and Minto mines. As per Capstone Mining Corp’s (“Capstone”) news release dated October 11, 2018, the agreement under which Capstone had agreed to sell its Minto mine to Pembridge Resources plc has been terminated. In conjunction with this, Capstone has elected to place the Minto mine on care and maintenance while Capstone seeks alternatives to preserve and maximize the value of the Minto mine.
Produced But Not Yet Delivered 21 As at September 30, 2018, payable ounces attributable to the Company produced but not yet delivered amounted to 4.5 million payable silver ounces, 77,100 payable gold ounces and 4,700 payable palladium ounces, representing an increase of 0.2 million payable silver ounces and 100 payable gold ounces during the three-month period ended September 30, 2018. Payable silver ounces produced but not yet delivered increased primarily as a result of increases related to the Peñasquito and Antamina silver interests partially offset by a decrease related to the Yauliyacu silver interest. Payable gold ounces produced but not yet delivered increased primarily as a result of increases related to the Stillwater and Sudbury gold interests partially offset by decreases related to the Minto and 777 gold interests. Payable ounces produced but not yet delivered to the Wheaton group of companies are expected to average approximately two months of annualized production for silver and two to three months for both gold and palladium 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’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.
Subsequent to the Quarter
Salobo Expansion
As per Vale’s third quarter 2018 MD&A, on October 24, 2018, Vale’s Board of Directors approved the Salobo Expansion, a brownfield expansion, which if completed as proposed, would increase processing throughput capacity to 36 Mtpa. Wheaton International first entered into a gold purchase agreement with Vale in respect of the Salobo mine in 2013 and made subsequent amendments to the agreement in 2015 and 2016 (the “Gold Agreement”). As part of the Gold Agreement, if actual throughput is expanded above 28 Mtpa within a predetermined period, and depending on the grade of material processed, Wheaton will be required to make an additional payment to Vale based on a set fee schedule. As proposed, the Salobo Expansion would increase throughput capacity from 24 Mtpa to 36 Mtpa once fully ramped up. Vale has approved the investment of US$1.1 billion in the Salobo Expansion, with a start-up scheduled for the first half of 2022 and an estimated ramp-up of 15 months. Vale has indicated that the Salobo Expansion will encompass a third concentrator and will use Salobo’s existing infrastructure. As agreed to as part of the original Gold Agreement and based
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on Vale’s disclosure relating to size and timing of the Salobo Expansion, the Company estimates that an expansion payment of between $550 million to $650 million would be payable. Given Vale’s proposed schedule, this payment would likely be made in 2023.
Dividend
Fourth Quarterly Dividend
The fourth quarterly cash dividend for 2018 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 30, 2018 and will be distributed on or about December 13, 2018.
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.
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.
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Outlook
Wheaton’s estimated attributable production in 2018 is forecast to be approximately 355,000 ounces of gold, 22.5 million ounces of silver, and 10,400 ounces of palladium. Estimated average annual attributable production over the next five years (including 2018) is anticipated to be approximately 385,000 ounces of gold, 25 million ounces of silver, 27,000 ounces of palladium, and starting in 2021, 2.1 million pounds of cobalt per year. As a reminder, Wheaton does not include any production from Barrick’s Pascua-Lama project or Hudbay’s Rosemont project in its estimated average five-year production guidance.
From a liquidity perspective, the $119 million of cash and cash equivalents as at September 30, 2018 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.
Webcast and Conference Call Details
A conference call and webcast will be held Thursday, November 15, 2018, 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: 7977429 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 22, 2018 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: 7977429 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. Wes Carson, Vice President, Mining Operations 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 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.
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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.
2 Payable silver, gold and palladium ounces produced but not yet delivered are based on management estimates and may be updated in future periods as additional information is received.
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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) | 2018 | 2017 | 2018 | 2017 | ||||||||
| Sales | $ | 185,769 | $ 203,034 | $ | 597,421 | $ 600,669 | ||||||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 58,234 61,852 | $ 173,506 185,567 | ||||||||||
| $ | 63,202 | $ | 182,195 | |||||||||
| 64,684 | 184,444 | |||||||||||
| Total cost of sales | $ | 127,886 | $ 120,086 | $ | 366,639 | $ 359,073 | ||||||
| Gross margin General and administrative 1 | $ | 57,883 | $ 82,948 8,793 | $ | 230,782 | $ 241,596 25,760 | ||||||
| $ | 57,883 | $ | 230,782 | |||||||||
| 8,779 | 30,507 | |||||||||||
| Earnings from operations Gain on disposal of mineral stream interest Other (income) expense | $ | 49,104 | $ 74,155 - 74 | $ | 200,275 | $ 215,836 - (2,007) | ||||||
| - | (245,715) | |||||||||||
| - | (245,715) | |||||||||||
| 1,301 | 1,157 | |||||||||||
| Earnings before finance costs and income taxes Finance costs | $ | 47,803 | $ 74,081 7,766 | $ | 444,833 | $ 217,843 23,120 | ||||||
| $ | 47,803 | $ | 444,833 | |||||||||
| 12,877 | 27,351 | |||||||||||
| Earnings before income taxes Income tax (expense) recovery | $ | 34,926 | $ 66,315 263 | $ | 417,482 | $ 194,723 691 | ||||||
| $ | 34,926 | $ | 417,482 | |||||||||
| (905) | 2,805 | |||||||||||
| Net earnings | $ | 34,021 | $ 66,578 | $ | 420,287 | $ 195,414 | ||||||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ | 0.08 | $ 0.15 $ 0.15 442,094 442,476 | $ | 0.95 | $ 0.44 $ 0.44 441,790 442,263 | ||||||
| $ | 0.08 | $ | 0.95 | |||||||||
| 443,634 | 443,188 | |||||||||||
| 444,120 | 443,727 | |||||||||||
| 1) Equity settled stock based compensation (a non- cash item) included in general and administrative expenses. | $ | 1,402 | $ | 1,279 | $ | 4,045 | $ | 3,748 |
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Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | As at September 30 | As at December 31 2017 | |||
|---|---|---|---|---|---|
| 2018 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Other | $ 98,521 3,194 1,700 | ||||
| $ | 119,373 | ||||
| 1,099 | |||||
| 2,655 | |||||
| Total current assets | $ | 123,127 | $ 103,415 | ||
| Non-current assets Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Long-term equity investments Investment in associates Convertible note receivable Other | $ 5,423,277 21,722 9,107 95,732 2,994 15,777 11,289 | ||||
| $ | 6,224,128 | ||||
| 30,244 | |||||
| 9,107 | |||||
| 168,427 | |||||
| 2,621 | |||||
| 13,560 | |||||
| 14,804 | |||||
| Total non-current assets | $ | 6,462,891 | $ 5,579,898 | ||
| Total assets | $ | 6,586,018 | $ 5,683,313 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current portion of performance share units Other | $ 12,118 - 25 | ||||
| $ | 13,346 | ||||
| 1,951 | |||||
| 22 | |||||
| Total current liabilities | $ | 15,319 | $ 12,143 | ||
| Non-current liabilities Bank debt Deferred income taxes Performance share units | $ 770,000 76 1,430 | ||||
| $ | 1,380,500 | ||||
| 106 | |||||
| 2,905 | |||||
| Total non-current liabilities | $ | 1,383,511 | $ 771,506 | ||
| Total liabilities | $ | 1,398,830 | $ 783,649 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,472,029 77,007 1,350,628 | ||||
| $ | 3,495,739 | ||||
| 10,734 | |||||
| 1,680,715 | |||||
| Total shareholders' equity | $ | 5,187,188 | $ 4,899,664 | ||
| Total liabilities and shareholders' equity | $ | 6,586,018 | $ 5,683,313 |
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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) | 2017 | 2017 $ 195,414 186,298 - 19,215 3,748 (496) (985) - - - (256) (966) (9,162) | |||||
| 2018 | 2018 | ||||||
| Operating activities Net earnings Adjustments for Depreciation and depletion Gain on disposal of mineral stream interest Interest expense Equity settled stock based compensation Performance share units Deferred income tax expense (recovery) Loss on fair value adjustment of share purchase warrants held Share in losses of associate Fair value adjustment on convertible note receivable Investment income recognized in net earnings Other Change in non-cash working capital | $ 66,578 62,096 - 6,361 1,279 (38) (279) - - - (93) (233) (234) | ||||||
| $ | 34,021 | $ | 420,287 | ||||
| 64,974 | 185,206 | ||||||
| - | (245,715) | ||||||
| 11,806 | 23,055 | ||||||
| 1,402 | 4,045 | ||||||
| (85) | 3,415 | ||||||
| 881 | (2,880) | ||||||
| 12 | 123 | ||||||
| 172 | 373 | ||||||
| 927 | 2,217 | ||||||
| (109) | (611) | ||||||
| (1,322) | (809) | ||||||
| 2,983 | (1,911) | ||||||
| Cash generated from operations before interest paid and received Interest paid Interest received | $ | 115,662 | $ 135,437 (6,394) 78 | $ | 386,795 | $ 392,810 (19,296) 211 | |
| (7,395) | (18,450) | ||||||
| 146 | 608 | ||||||
| Cash generated from operating activities | $ 129,121 | $ 373,725 | |||||
| $ | 108,413 | $ | 368,953 | ||||
| Financing activities Bank debt repaid Bank debt drawn Credit facility extension fees Share purchase options exercised Dividends paid | $ (99,000) - (6) - (36,663) | $ (339,000) - (1,311) 1,002 (88,771) | |||||
| $ | (28,000) | $ | (214,000) | ||||
| 452,000 | 824,500 | ||||||
| - | (1,205) | ||||||
| - | 1,027 | ||||||
| (33,873) | (98,462) | ||||||
| Cash (used for) generated from financing activities | $ (135,669) | $ (428,080) | |||||
| $ | 390,127 | $ | 511,860 | ||||
| Investing activities Mineral stream interests Early deposit mineral stream interests Net proceeds on disposal of mineral stream interests 1 Acquisition of long-term investments Proceeds on disposal of long-term investments Dividend income received Other | $ - (5) - - - 15 (116) | $ - (899) 1,022 - - 45 (202) | |||||
| $ | (506,171) | $ | (1,116,406) | ||||
| (4,254) | (8,712) | ||||||
| (4,000) | 226,000 | ||||||
| (4,847) | (5,863) | ||||||
| 47,734 | 47,734 | ||||||
| 20 | 60 | ||||||
| (664) | (3,089) | ||||||
| Cash used for investing activities | $ (106) | $ (34) | |||||
| $ | (472,182) | $ | (860,276) | ||||
| Effect of exchange rate changes on cash and cash equivalents | $ (11) | $ 4 | |||||
| $ | 354 | $ | 315 | ||||
| Increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period | $ | 26,712 | $ (6,665) 76,575 | $ | 20,852 | $ (54,385) 124,295 | |
| 92,661 | 98,521 | ||||||
| Cash and cash equivalents, end of period | $ 69,910 | $ 69,910 | |||||
| $ | 119,373 | $ | 119,373 |
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 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Q3 2018 | Q2 2018 | Q1 2018 | ||||||
| Silver ounces produced 2 San Dimas 3 Peñasquito Antamina Constancia Other Los Filos Zinkgruvan Yauliyacu Stratoni Minto 4 Neves-Corvo Aljustrel Cozamin 5 Lagunas Norte 6 Pierina 6 Veladero 6 777 | 1,324 1,043 973 623 1,429 1,561 1,641 1,483 1,339 1,328 1,467 1,735 1,888 1,464 1,599 670 618 546 540 723 48 43 42 32 33 619 710 493 538 557 335 588 607 562 379 131 137 171 166 187 30 43 42 56 100 305 341 316 330 312 - - - - - - - 17 397 265 253 243 218 210 234 111 107 114 137 117 211 201 144 158 174 146 145 138 96 152 | |||||||
| - | 607 | 1,606 | ||||||
| 1,050 | 1,267 | 1,450 | ||||||
| 1,468 | 1,458 | 1,339 | ||||||
| 737 | 596 | 646 | ||||||
| 21 | 32 | 29 | ||||||
| 530 | 453 | 565 | ||||||
| 597 | 719 | 550 | ||||||
| 165 | 211 | 137 | ||||||
| 25 | 30 | 35 | ||||||
| 458 | 421 | 405 | ||||||
| 514 | 138 | - | ||||||
| - | - | - | ||||||
| - | - | 217 | ||||||
| - | - | 107 | ||||||
| - | - | 265 | ||||||
| 136 | 152 | 146 | ||||||
| Total Other | 2,446 | 2,156 | 2,456 | 2,189 2,558 2,302 2,682 2,510 | ||||
| Total silver ounces produced | 7,211 7,595 7,192 6,648 7,589 | |||||||
| 5,701 | 6,084 | 7,497 | ||||||
| Gold ounces produced ² Sudbury 7 Salobo Constancia San Dimas 3 Stillwater Other Minto 4 777 | 8,568 8,519 7,468 9,182 8,901 76,153 72,980 57,514 58,009 77,787 2,947 2,498 2,332 2,431 3,151 - - - - - - - - - - 3,328 6,105 6,063 9,734 10,906 5,478 5,114 6,259 4,422 10,919 | |||||||
| 5,955 | 6,476 | 3,511 | ||||||
| 68,648 | 63,949 | 61,513 | ||||||
| 3,261 | 3,187 | 3,315 | ||||||
| 10,642 | 5,726 | - | ||||||
| 6,376 | - | - | ||||||
| 2,546 | 2,554 | 2,707 | ||||||
| 4,124 | 4,982 | 5,645 | ||||||
| Total Other | 6,670 | 7,536 | 8,352 | 8,806 11,219 12,322 14,156 21,825 | ||||
| Total gold ounces produced | 96,474 95,216 79,636 83,778 111,664 | |||||||
| 101,552 | 86,874 | 76,691 | ||||||
| Palladium ounces produced ² Stillwater | - - - - - | |||||||
| 8,817 | - | - | ||||||
| SEOs produced 8 GEOs produced 8 | 14,572 14,823 13,009 12,513 15,526 190,979 195,263 178,100 178,766 218,429 | |||||||
| 14,466 | 12,948 | 13,577 | ||||||
| 179,016 | 163,888 | 171,241 | ||||||
| Gold / Silver Ratio 8 Palladium / Silver Ratio 8 Gold / Palladium Ratio 8 | ||||||||
| 80.8 | 79.0 | 79.3 | 76.3 | 75.9 | 73.0 | 70.0 | 71.1 | |
| 63.4 | 59.2 | 61.8 | 59.3 | 53.5 | 47.7 | 44.0 | 39.8 | |
| 1.3 | 1.3 | 1.3 | 1.3 | 1.4 | 1.5 | 1.6 | 1.8 | |
| Average payable rate 2 Silver Gold Palladium | ||||||||
| 90.3% 90.3% 91.1% 89.7% 91.5% 94.8% 94.8% 94.5% 94.7% 95.4% n.a. n.a. n.a. n.a. n.a. | ||||||||
| 84.5% | 87.0% | 89.8% | ||||||
| 95.3% | 94.7% | 94.4% | ||||||
| 94.6% | n.a. | n.a. |
1) All figures in thousands except gold and palladium ounces produced.
2) Ounces produced represent the quantity of silver, gold 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 silver, gold or palladium 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) On May 10, 2018 the Company terminated the San Dimas silver purchase agreement and concurrently entered into the San Dimas precious metal purchase agreement.
4) The Minto mine was placed into care and maintenance in October 2018.
5) The Cozamin precious metal purchase agreement expired on April 4, 2017.
6) The Lagunas Norte, Pierina and Veladero precious metal purchase agreements expired on March 31, 2018.
7) 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.
8) Silver equivalent ounces (SEOs) and gold equivalent ounces (GEOs), which are provided to assist the reader, are calculated by converting gold and palladium (in the case of SEOs) or silver and palladium (in the case of GEOs) using the ratio of the average price of silver to the average price of gold and palladium, respectively, and using the average price of palladium to the average price of gold, with all figures being as per the London Bullion Metal Exchange during the period.