FIRST QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Solid Start to 2023 “Wheaton’s high-quality portfolio of long-life, low-cost assets delivered a solid performance to start
May 4, 2023
Vancouver, British Columbia
Designated News Release
FIRST QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Solid Start to 2023
“Wheaton’s high-quality portfolio of long-life, low-cost assets delivered a solid performance to start
the year, resulting in revenue of $214 million and robust cash operating margins ,” said Randy
Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “First quarter
production was ahead of Company expectations, and as we continue to see positive
developments at a number of our key assets including Salobo and Constancia, we expect to see
significant production growth throughout 2023, culminating in a strong second half of the year.
Notably, implicit in our five -year annual average production guidance, is an impressive organic
growth profile of over 40%, with two -thirds coming from assets already in operation. In addition,
our corporate development team remains exceptionally busy evaluating new opportunities, and
as always, Wheaton is focused on ensuring our growth is both accretive and sustainable for all of
our stakeholders."
Solid Financial Results and Strong Balance Sheet
• First quarter of 2023: $214 million in revenue, $135 million in operating cash flow, $111 million
in net earnings and $104 million in adjusted net earnings1
• A cash balance of $800 million and no debt as at March 31, 2023
• Undrawn $2 billion revolving credit facility with a July 18, 2027 maturity date
• Declared a quarterly dividend1 of $0.15 per common share
High Quality Asset Base
• Streaming agreements on 20 operating mines and 12 development projects
• 93% of attributable production from assets in the lowest half of their respective cost curves2,3
• 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional
mine life from mineral resource conversion and exploration2,4
• Attributable gold equivalent production3 (“GEOs”) of 141,800 ounces in the first quarter of 2023
• Production from Salobo in the first quarter of 2023 was 43,700 ounces of gold, an increase of
over 15% relative to the fourth quarter of 2022, due to steady ramp up of the Salobo III
expansion
• As per Hudbay Minerals Inc. (“Hudbay”), full mining activities at the Constancia mine resumed
in the Pampacancha pit in February, with mining of higher -grade ore now expected in the
second quarter of 2023, ahead of schedule
• Average annual production for the five and ten-year periods is expected to be approximately
810,000 and 850,000 GEOs2,3, respectively
Leadership in Sustainability
• Top Rankings: #1 out of 116 precious metals companies and Global Top 50 out of over 15,000
multi-sector companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS
• Commitment to Net-Zero Carbon Emissions by 2050 supported by interim targets covering all
material emissions including Scope 3
• Established a sustainability linked element in connection with the revolving credit facility
• Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights
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Operational Overview
(all figures in US dollars unless otherwise noted) Q1 2023 Q1 2022 Change
Units produced
Gold ounces 73,037 78,054 (6.4)%
Silver ounces 4,927 6,225 (20.9)%
Palladium ounces 3,705 4,488 (17.4)%
Cobalt pounds 124 234 (47.0)%
Gold equivalent ounces 3 141,831 165,555 (14.3)%
Units sold
Gold ounces 62,605 77,901 (19.6)%
Silver ounces 3,749 5,553 (32.5)%
Palladium ounces 2,946 4,075 (27.7)%
Cobalt pounds 323 511 (36.8)%
Gold equivalent ounces 3 117,383 159,082 (26.2)%
Change in PBND and Inventory
Gold equivalent ounces 3 10,449 (10,419) (20,868)
Revenue $ 214,465 $ 307,244 (30.2)%
Net earnings $ 111,391 $ 157,467 (29.3)%
Per share $ 0.246 $ 0.349 (29.5)%
Adjusted net earnings 1 $ 104,431 $ 158,007 (33.9)%
Per share 1 $ 0.231 $ 0.350 (34.0)%
Operating cash flows $ 135,104 $ 210,540 (35.8)%
Per share 1 $ 0.299 $ 0.467 (36.0)%
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Financial Review
Revenues
Revenue was $214 million (56% gold, 40% silver, 2% palladium and 2% cobalt), with the $93
million decrease being primarily due to the cessation of production from Yauliyacu, 777 and Keno
Hill coupled with relative changes in the GEOs produced but not yet delivered3 and a 5% decrease
in the average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2023 were $443 per GEO² as compared to $440 in the
first quarter of 2022. This resulted in a cash operating margin¹ of $1,384 per GEO³ sold, a
decrease of 7% as compared with the first quarter of 2022.
Cash Flow from Operations
Operating cashflow amounted to $135 million, with the $75 million decrease being due primarily
to the lower cash operating margin and the payout of the Company’s performance share units in
the first quarter of 2023 while in 2022 they were paid in the second quarter.
Balance Sheet (at March 31, 2023)
• Approximately $800 million of cash on hand
• During the first quarter of 2023, the Company made an upfront cash payment of $31 million
relative to the Goose PMPA
• With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility,
the Company is well positioned to fund all outstanding commitments and known contingencies
as well as providing flexibility to acquire additional accretive mineral stream interests
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First Quarter Operating Asset Highlights
Salobo: In the first quarter of 2023, Salobo produced 43,700 ounces of attributable gold, virtually
unchanged relative to the first quarter of 2022, with higher grades and throughput offset by lower
recovery. According to Vale S.A. (“Vale”), production in the first quarter was impacted by planned
and corrective maintenance activities, with additional maintenance planned for the second
quarter.
Vale reports that the Salobo III mine expansion project, which will increase the mill throughput by
50%, successfully commenced at the end of 2022. The project consists of two lines, both of which
are already in operation, and is expected to reach full capacity in the fourth quarter of 2024.
Antamina: In the first quarter of 2023, Antamina produced 0.9 million ounces of attributable silver,
a decrease of approximately 31% relative to the first quarter of 2022, primarily due to lower grades
as per the mine plan.
Peñasquito: In the first quarter of 2023, Peñasquito produced 2.1 million ounces of attributable
silver, a decrease of approximately 6% relative to the first quarter of 2022 due to lower recoveries
partially offset by higher grades.
Constancia: In the first quarter of 2023, Constancia produced 0.6 million ounces of attributable
silver and 6,900 ounces of attributable gold, an increase of approximately 9% for both metals
relative to the first quarter of 2022, with the increase in both metals being primarily due to higher
throughput and grades. As per Hudbay, full mining activities resumed in the Pampacancha pit in
February and the period of higher stripping from March to June is progressing well, with mining of
higher-grade ore now expected in the second quarter of 2023, ahead of schedule.
Sudbury: In the first quarter of 2023, Vale’s Sudbury mines produced 6,200 ounces of attributable
gold, an increase of approximately 16% relative to the first quarter of 2022 . As per Vale, higher
production from Sudbury was driven by greater mine performance and stability in the first quarter.
Stillwater: In the first quarter of 2023, the Stillwater mines produced 2,000 ounces of attributable
gold and 3,700 ounces of attributable palladium, a decrease of approximately 21% for gold and
17% for palladium relative to the first quarter of 2022 . As reported by Sibanye-Stillwater Limited
(“Sibanye”) on March 13, 2023, an incident occurred at the Stillwater mine during scheduled non-
routine maintenance resulting in structural damage to the shaft headgear, winder house and
winder rope. As a result, production from the Stillwater West mine below the 50 level was
suspended for approximately five weeks, impacting production in the first quarter, but has since
recommenced. Sibanye continues to reposition the Stillwater operations for the current skills
shortage and changing macro environment and expects further normalization of production rates
in 2023.
San Dimas: In the first quarter of 2023, San Dimas produced 10,800 ounces of attributable gold,
virtually unchanged relative to the first quarter of 2022.
Other Gold: In the first quarter of 2023, total Other Gold attributable production was 3,500 ounces,
a decrease of approximately 59% relative to the first quarter of 2022, primarily due to the closure
of the 777 mine in June 2022.
Other Silver: In the first quarter of 2023, total Other Silver attributable production was 1.4 million
ounces, a decrease of approximately 36% relative to the first quarter of 2022, primarily due to the
closure of the 777 mine and the termination of the Keno Hill and Yauliyacu PMPAs.
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Voisey’s Bay: In the first quarter of 2023, the Voisey's Bay mine produced 124,000 pounds of
attributable cobalt, a decrease of approximately 47% relative to the first quarter of 2022, primarily
due to mining lower grade material during the ongoing transitional period between the depletion
of the Ovoid open-pit mine and ramp-up to full production of the Voisey’s Bay underground project.
Vale reports that planned maintenance activities are scheduled for the second quarter of 2023.
Vale reports that physical completion of the Voisey’s Bay underground mine extension was 83%
at the end of the first quarter. In the second quarter of 2021, Vale achieved the first ore production
from the Reid Brook deposit, the first of two underground mines to be developed in the project.
Eastern Deeps, the second deposit, has started to extract development ore from the deposit and
is scheduled to start the main production ramp-up in the second half of 2023.
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.
First Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. (“Artemis”) announced the approval of its BC Mines Act
Permit, the final step required to allow Artemis to commence major works construction activities
at the Blackwater Mine, with the expectation of an initial gold pour in the second half of 2024. In
addition, Artemis announced that it issued a purchase order to Finning Canada, for the primary
and ancillary mining fleet required for the initial Phase 1 of operations. Equipment deliveries to
site are planned to commence late in the fourth quarter of 2023 and continue throughout the first
half of 2024, in preparation for the pre -strip-mining phase. As per Artemis, t he entire fleet is
expected to be “shovel ready” during the second half of 2024, to meet Artemis’ operational
readiness objectives and commence operations.
Copper World Complex: In January 2023, Hudbay received an approved right-of-way from the
Arizona State Land Department that will allow for infrastructure such as roads, pipelines and
powerlines, to connect between the properties in the company’s private land package at Copper
World. Subsequent to the quarter, Hudbay announced the receipt of confirmation from the Army
Corps of Engineers that Hudbay’s previous surrender of the Section 404 Clean Water Act permit
for the former Rosemont project was formally accepted and revoked as requested. Clearing and
grading work to prepare for the Copper World site, including the construction of roads and other
facilities, continues to be underway. As per Hudbay, p re-feasibility activities for the private land
Phase I of the Copper World project are well-advanced and a pre-feasibility study is expected to
be released in mid-2023.
Goose Project: On April 12, 2023, Sabina Gold & Silver Corp (“Sabina”) announced that the
shareholders approved the proposed acquisition by B2Gold Corp. (“B2Gold”) of all the issued and
outstanding common shares of Sabina. The transaction closed April 19, 2023. Subsequent to
closing, B2Gold exercised the option to acquire 33% of the stream under the Goose PMPA in
exchange for a cash payment in the amount of $46 million, resulting in a gain on partial disposal
of the PMPA in the amount of $5 million. B2Gold continues to advance construction of the Goose
project, moving toward commencement of production in 2025 and initiating an exploration
program to further define untapped potential and unlock further opportunities for growth.
Marathon Project: Generation Mining Limited (“Gen Mining”) announced positive results on the
updated Feasibility Study for the Marathon Project, presenting an optimized design with increased
process plant throughput. Additionally, Gen Mining finalized an offtake term sheet with Glencore
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for copper concentrate, co ntaining copper, palladium, platinum, gold, and silver. Finally, Gen
Mining has executed a mandate letter to arrange a senior secured project finance facility of up to
$400 million, with a syndicate including Export Development Canada, together with ING Ca pital
LLC and Societe Generale S.A. acting as the Mandated Lead Arrangers. This represents a key
milestone in the project financing process for the development of the Marathon Project.
Sustainability
Climate Change:
• Subsequent to the quarter, on April 2 7, 2023, Hudbay announced the signing of a new 10 -
year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable
energy supply to Hudbay’s Constancia operations in Peru. As reported by Hudbay, Hudbay’s
Scope 1 and Scope 2 greenhouse g as emissions are expected to significantly decline as a
result of the new Constancia renewable energy supply agreement, which should reduce
Wheaton’s attributable scope 3 emissions from the Constancia mine and help advance the
Company’s Net Zero targets.
Community Investment Program:
• The Daffodil Ball presented by Wheaton raised a record of over CA$3 million for the Canadian
Cancer Society.
• The Pacific Salmon Foundation’s Vancouver Gala presented by Wheaton raised CA$530,000
in support of advancing critical marine science research and conservation work.
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 a s 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 2023 is forecast to be 320,000 to 350,000 ounces
of gold, 20.0 to 22.0 million ounces of silver, and 22,000 to 25,000 GEOs of other metals, resulting
in production of approximately 600,000 to 660,000 GEOs, unchanged from previous guidance2,3.
For the five -year period ending in 2027, the Company estimates that average production will
amount to 810,000 GEOs, while for the ten -year period ending in 2032, the Company estimates
that average annual production will amount to 850,000 GEOs, also unchanged from previous
guidance2,3.
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.
Webcast and Conference Call Details
A conference call will be held on Friday, May 5, 2023, starting at 11:00 am (Eastern Time) to
discuss these results. To participate in the live call please use one of the following methods:
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To join the conference call without operator assistance, you may register and enter your phone
number here to receive an instant automated call back.
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: 26164042
Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until M ay 12 , 202 3 at 11:59 pm ET. The
webcast will be available for one year. You can listen to an arc hive 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: 164042 #
Archived audio webcast: Webcast Link
This earnings release should be read in conjunction with Wheaton Precious Metals’ MD&A and
Financial Statements, which are available on the Company’s website at www.wheatonpm.com
and have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo., Vice President,
Technical Services for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President,
Engineering, are a “qualified person” as such term is defined under National Instrument 43-101,
and have reviewed and approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral
resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).
Wheaton Precious Metals believes that there are no significant differences between its
corporate governance practices and those required to be followed by United States domestic
issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious
Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx.
End Note
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 4, 2023, titled “Wheaton Precious Metals Declares Quarterly Dividend.”
2 Statements made in this section contain forward-looking information with respect to forecast production, funding
outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that
actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks,
assumptions and important disclosure associated with this information.
3 Company reports & S and P Capital IQ est. of 2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel &
silver mines. GEOs relating to production and guidance, which are provided to assist the reader, are based on the
following commodity price assumptions: gold $1,850/oz, silver $24/oz, palladium $1,800/oz, platinum $1,100/oz and
cobalt $18.75/lb. Five- and ten-year guidance does not include any production from Pascua-Lama, Navidad,
Cotabambas, Metates or additional expansions at Salobo outside of the Salobo III expansion. In addition, five-year
guidance also does not include any production from Kutcho, or the Victor project at Sudbury. Ounces produced
represent the quantity of silver, gold, palladium and cobalt contained in concentrate or doré prior to smelting or
refining deductions.
4 Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2022, and 2022 actual mill
throughput and is weighted by individual reserve and resource category.
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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) 2023 2022
Sales $ 214,465 $ 307,244
Cost of sales
Cost of sales, excluding depletion $ 51,964 $ 69,994
Depletion 45,000 57,402
Total cost of sales $ 96,964 $ 127,396
Gross margin $ 117,501 $ 179,848
General and administrative expenses 10,099 9,403
Share based compensation 7,397 9,902
Donations and community investments 1,378 813
Earnings from operations $ 98,627 $ 159,730
Other (income) expense (7,562) 170
Earnings before finance costs and income taxes $ 106,189 $ 159,560
Finance costs 1,378 1,422
Earnings before income taxes $ 104,811 $ 158,138
Income tax recovery (expense) 6,580 (671)
Net earnings $ 111,391 $ 157,467
Basic earnings per share $ 0.246 $ 0.349
Diluted earnings per share $ 0.246 $ 0.348
Weighted average number of shares outstanding
Basic 452,370 450,915
Diluted 453,159 451,953
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Condensed Interim Consolidated Balance Sheets
As at
March 31
As at
December 31
(US dollars in thousands - unaudited) 2023 2022
Assets
Current assets
Cash and cash equivalents $ 799,697 $ 696,089
Accounts receivable 9,236 10,187
Cobalt inventory 6,555 10,530
Taxes receivable 3,228 -
Other 3,379 3,287
Total current assets $ 822,095 $ 720,093
Non-current assets
Mineral stream interests $ 5,696,889 $ 5,707,019
Early deposit mineral stream interests 46,842 46,092
Mineral royalty interest 6,606 6,606
Long-term equity investments 309,068 256,095
Refundable deposit - 777 PMPA 8,232 8,073
Property, plant and equipment 3,902 4,210
Other 11,845 11,718
Total non-current assets $ 6,083,384 $ 6,039,813
Total assets $ 6,905,479 $ 6,759,906
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 9,136 $ 12,570
Dividends payable 67,910 -
Current taxes payable - 2,763
Current portion of performance share units 7,642 14,566
Current portion of lease liabilities 828 818
Total current liabilities $ 85,516 $ 30,717
Non-current liabilities
Performance share units 2,790 6,673
Lease liabilities 941 1,152
Deferred income taxes 180 165
Pension liability 3,598 3,524
Total non-current liabilities $ 7,509 $ 11,514
Total liabilities $ 93,025 $ 42,231
Shareholders' equity
Issued capital $ 3,765,954 $ 3,752,662
Reserves 22,466 66,547
Retained earnings 3,024,034 2,898,466
Total shareholders' equity $ 6,812,454 $ 6,717,675
Total liabilities and shareholders' equity $ 6,905,479 $ 6,759,906