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, susta inable
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 dividend 1 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 79,087 78,529 0.7 %
Silver ounces 6,206 6,765 (8.3)%
Palladium ounces 4,488 5,769 (22.2)%
Cobalt pounds 234 1,162 (79.8)%
Gold equivalent ounces 2 171,367 196,756 (12.9)%
Units sold
Gold ounces 77,901 75,104 3.7 %
Silver ounces 5,553 6,657 (16.6)%
Palladium ounces 4,075 5,131 (20.6)%
Cobalt pounds 511 132 286.7%
Gold equivalent ounces 2 166,065 172,271 (3.6)%
Revenue $ 307,244 $ 324,119 (5.2)%
Net earnings $ 157,467 $ 162,002 (2.8)%
Per share $ 0.349 $ 0.360 (3.1)%
Adjusted net earnings 1 $ 158,007 $ 161,132 (1.9)%
Per share 1 $ 0.350 $ 0.358 (2.2)%
Operating cash flows $ 210,540 $ 232,154 (9.3)%
Per share 1 $ 0.467 $ 0.516 (9.5)%
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 202 1 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 with in 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% rela tive 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 payment s 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 mill ion) 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 t o 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 P olicy 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 S ilver 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 accreti ve 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 GEOs 2, 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 GEOs 2, also unchanged from previous
guidance.
In accordance with Wheaton Precious Metals™ Corp.’s (“Wheaton Precious Metals”, “Wheaton”
or the “Company”) MD&A and f inancial 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 1 3, 202 2 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 ava ilable 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 ha ve 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 202 2 are $1,800 / ounce gold, $2 4 /
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) 2022 2021
Sales $ 307,244 $ 324,119
Cost of sales
Cost of sales, excluding depletion $ 69,994 $ 78,783
Depletion 57,402 70,173
Total cost of sales $ 127,396 $ 148,956
Gross margin $ 179,848 $ 175,163
General and administrative expenses 9,403 9,735
Share based compensation 9,902 1,630
Donations and community investments 813 606
Earnings from operations $ 159,730 $ 163,192
Other (income) expense 170 119
Earnings before finance costs and income taxes $ 159,560 $ 163,073
Finance costs 1,422 1,573
Earnings before income taxes $ 158,138 $ 161,500
Income tax (expense) recovery (671) 502
Net earnings $ 157,467 $ 162,002
Basic earnings per share $ 0.349 $ 0.360
Diluted earnings per share $ 0.348 $ 0.360
Weighted average number of shares outstanding
Basic 450,915 449,509
Diluted 451,953 450,600
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Condensed Interim Consolidated Balance Sheets
As at
March 31
As at
December 31
(US dollars in thousands - unaudited) 2022 2021
Assets
Current assets
Cash and cash equivalents $ 376,163 $ 226,045
Accounts receivable 27,939 11,577
Other 9,875 12,102
Total current assets $ 413,977 $ 249,724
Non-current assets
Mineral stream interests $ 5,894,884 $ 5,905,797
Early deposit mineral stream interests 45,342 34,741
Mineral royalty interest 6,606 6,606
Long-term equity investments 92,194 61,477
Convertible notes receivable - 17,086
Property, plant and equipment 5,183 5,509
Other 11,847 15,211
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 $ 11,861 $ 13,935
Dividends payable 67,687 -
Current portion of performance share units 31,413 14,807
Current portion of lease liabilities 830 813
Other 150 136
Total current liabilities $ 111,941 $ 29,691
Non-current liabilities
Lease liabilities 1,868 2,060
Deferred income taxes 121 100
Performance share units 3,759 11,498
Pension liability 2,883 2,685
Total non-current liabilities $ 8,631 $ 16,343
Total liabilities $ 120,572 $ 46,034
Shareholders' equity
Issued capital $ 3,711,294 $ 3,698,998
Reserves 44,304 47,036
Retained earnings 2,593,863 2,504,083
Total shareholders' equity $ 6,349,461 $ 6,250,117
Total liabilities and shareholders' equity $ 6,470,033 $ 6,296,151