FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Wheaton Precious Metals Generates Strong Cash Operating Margins in 2022 “Wheaton’s portfolio of long -life, low-cost assets delivered over $1 billion in revenue and over
March 9, 2023
Vancouver, British Columbia
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Wheaton Precious Metals Generates Strong Cash Operating Margins in 2022
“Wheaton’s portfolio of long -life, low-cost assets delivered over $1 billion in revenue and over
$740 million in operating cash flow in 2022. This strong financial performance reflects the
resiliency of Wheaton’s streaming business model, which delivers amongst the highest margins
in the precious metals space. Even in the current inflationary environment, Wheaton averaged
75% cash operating margins in 2022,” said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. “In addition, Wheaton took strategic steps forward by
optimizing the portfolio, adding four new streams and making sector-leading commitments on the
sustainability front. With one of the strongest balance sheets in the industry, we enter 2023
exceptionally well -positioned to deliver long -term shareholder value through the significant
organic growth profile already embedded in the portfolio as well as through additional accretive
acquisitions.”
Solid Financial Results and Strong Balance Sheet
• Fourth Quarter of 2022: $236 million in revenue , $172 million in operating cash flow , $166
million in net earnings and $104 million in adjusted net earnings1
• Full Year of 2022: $1,065 million in revenue, $743 million in operating cash flow, $669 million
in net earnings and $505 million in adjusted net earnings1
• A cash balance of $696 million and no debt as at December 31, 2022
• Undrawn US$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 production of 148,300 ounces in the Fourth Quarter of 2022 and
638,100 for the Full Year of 2022
• Average annual production for the ten-year period ending December 31, 2032, is expected to
be approximately 850,000 gold equivalent ounces (“GEOs”)2,3,5
• Completed the previously disclosed termination of the Yauliyacu precious metal purchase
agreement (“PMPA”), resulting in a $51 million gain on the disposition in the fourth quarter
Leadership in Sustainability
• Top Rankings: #1 out of 114 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) Q4 2022 Q4 2021 Change 2022 2021 Change
Units produced
Gold ounces 70,099 87,296 (19.7)% 286,805 341,521 (16.0)%
Silver ounces 5,352 6,356 (15.8)% 23,997 25,999 (7.7)%
Palladium ounces 3,869 4,733 (18.3)% 15,485 20,908 (25.9)%
Cobalt pounds 128 381 (66.4)% 724 2,293 (68.4)%
Gold equivalent ounces 3 148,323 184,551 (19.6)% 638,113 754,591 (15.4)%
Units sold
Gold ounces 68,996 79,622 (13.3)% 293,234 312,465 (6.2)%
Silver ounces 4,935 5,116 (3.5)% 21,570 22,860 (5.6)%
Palladium ounces 3,396 4,641 (26.8)% 15,076 19,344 (22.1)%
Cobalt pounds 187 228 (18.0)% 1,038 886 17.2 %
Gold equivalent ounces 3 142,190 157,439 (9.7)% 617,450 656,074 (5.9)%
Change in PBND and Inventory
Gold equivalent ounces 3 (11,870) 11,252 23,122 (47,055) 33,628 80,683
Revenue $ 236,051 $ 278,197 (15.1)% $ 1,065,053 $ 1,201,665 (11.4)%
Net earnings $ 166,125 $ 291,822 (43.1)% $ 669,126 $ 754,885 (11.4)%
Per share $ 0.367 $ 0.648 (43.4)% $ 1.482 $ 1.677 (11.6)%
Adjusted net earnings 1 $ 103,744 $ 132,232 (21.5)% $ 504,912 $ 592,079 (14.7)%
Per share 1 $ 0.229 $ 0.293 (21.8)% $ 1.118 $ 1.315 (15.0)%
Operating cash flows $ 172,028 $ 195,290 (11.9)% $ 743,424 $ 845,145 (12.0)%
Per share 1 $ 0.381 $ 0.433 (12.0)% $ 1.646 $ 1.878 (12.4)%
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2022, Salobo produced 37,900 ounces of attributable gold, a
decrease of approximately 21% relative to the fourth quarter of 2021 , primarily due to lower
throughput and grades. According to Vale S.A.’s (“Vale”), plant availability was impacted due to
additional planned and corrective maintenance performed in the fourth quarter.
Vale reports 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, the first of which
started up in the fourth quarter of 2022 and the second expected to start in the first quarter of
2023.
Subsequent to the quarter, Wheaton and Vale agreed to amend the Salobo PMPA to adjust the
expansion payment terms in order to provide increased flexibility for the ramp-up of the expansion
while also maintaining an incentive for Vale to maximize grade on an annual basis. The expansion
payment will now be phased, with Wheaton making an initial payment once actual throughput is
expanded above 32 million tonnes per annum (“Mtpa”) and a second payment if actual throughput
is expanded above 35 Mtpa, by January 1, 2031. The total cumulative payments will range from
$283 million to $552 million, dependent at Vale’s timing for each of the production increases . In
addition, Wheaton will be required to make annual payments of between $5.1 million to $8.5
million for a 10 -year period following payment of the expansion payments if the Salobo mine
maintains a high-grade mine plan.
Antamina: In the fourth quarter of 2022, Antamina produced 1.1 million ounces of attributable
silver, a decrease of approximately 19% relative to the fourth quarter of 2021 , primarily due to
lower grades as per the mine plan.
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Peñasquito: In the fourth quarter of 2022, Peñasquito produced 1.8 million ounces of attributable
silver, a decrease of approximately 18% relative to the fourth quarter of 2021 with lower recovery
and grades as per the mine plan.
Constancia: In the fourth quarter of 2022, Constancia produced 0.7 million ounces of attributable
silver and 1 0,500 ounces of attributable gold, an increase of approximately 13% and 6%,
respectively, relative to the fourth quarter of 2021 , with the increase in silver being primarily due
to higher grades and recovery while the increase in gold production being prim arily due to the
mining of higher-grade material. According to Hudbay Minerals Inc. (“Hudbay”), gold production
was lower than expected in the fourth quarter as a result of short-term changes in the mine plan
that prioritized the processing of lower grade stockpiles and shorter -haulage distance ore from
the Constancia pit versus higher -grade ore from the Pampacancha pit. These changes were
implemented by Hudbay to ration fuel during a period of nation -wide social unrest and road
blockades following a change in Peru's political leadership in early December 2022, and ensured
the plant continued to operate uninterrupted.
Sudbury: In the fourth quarter of 2022, Vale’s Sudbury mines produced 6,300 ounces of
attributable gold, an increase of approximately 45% relative to the fourth quarter of 2021, primarily
due to higher throughput as fourth quarter 2021 production was impact ed by the temporary
closure of the Totten Mine after the shaft was damaged on September 26, 2021.
Stillwater: In the fourth quarter of 2022, the Stillwater mines produced 2,200 ounces of
attributable gold and 3,900 ounces of attributable palladium, a decrease of approximately 18%
for gold and 18% for palladium relative to the fourth quarter of 2021 . As per Sibanye-Stillwater
Limited (“Sibanye”), the ramp-up of production post the regional flood event in early June 2022
progressed well, with production rates normalising during Q4 2022. Sibanye continues to
reposition the Stillwater operations for the current skills shortage and c hanging macro
environment and expects further normalization of production rates in 2023.
San Dimas: In the fourth quarter of 2022, San Dimas produced 10,000 ounces of attributable
gold, a decrease of approximately 27% relative to the fourth quarter of 2021, primarily due to the
mining of lower grade material . According to First Majestic Silver Corp., silver and gold grades
were impacted primarily due to the processing of lower grade development ores from the Perez
vein and higher tonnages from underground areas with challenging ground conditions within the
Jessica and Regina veins in the Noche Buena area.
Other Gold: In the fourth quarter of 2022, total Other Gold attributable production was 3,100
ounces, a decrease of approximately 63% relative to the fourth quarter of 2021, primarily due to
the closure of the 777 mine in June 2022.
Other Silver: In the fourth quarter of 2022, total Other Silver attributable production was 1.8
million ounces, a decrease of approximately 19% relative to the fourth quarter of 2021, primarily
due to the placement of Stratoni into care and maintenance, the closure of the 777 mine and the
termination of the Keno Hill and Yauliyacu PMPAs.
Voisey’s Bay: In the fourth quarter of 2022, the Voisey's Bay mine produced 128,000 pounds of
attributable cobalt, a decrease of approximately 66% relative to the fourth quarter of 2021 ,
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 physical completion of the Voisey’s Bay underground mine
extension was 81% at the end of the fourth quarter. In the second quarter of 2021, Vale achieved
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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.
Fourth Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. (“Artemis”) announced that it had executed an order for
construction equipment required for major construction activities with the initial fleet expected to
be delivered in early Q2 2023. In addition, plant site preparation is well advanced with the majority
of the bulk earth works completed, and work on the construction camp is proceeding on schedule
with 150 rooms and kitchen facilities on track to be ready for occupation by the end of February.
Artemis also announced that it has closed the $385 million project loan facility to fund a significant
component of the estimated construction costs of the Blackwater project. On March 9, 2023,
Artemis announced the approval of its BC Mines Act Permit for the Blackw ater project. The
approval of the BC Mines Act Permit is the final step required to allow Artemis to commence major
works construction activities at the Blackwater Mine in Q1 2023 with the expectation of an initial
gold pour in the second half of 2024.
Copper World Complex: Hudbay reports that it has executed a new strategy at Copper World
focused on project de-risking and a two-phase mine plan with the first phase located on private
land claims. The pre-feasibility study for Phase I of Copper World is well-advanced with the main
facility engineering completed and metallurgical test work being analyzed as part of the
concentrate leaching trade off evaluations. The pre-feasibility study is expected to be released in
the second quarter of 2023.
Goose Project: Subsequent to the quarter, Sabina Gold & Silver Corp. (“Sabina”) announced
that it had entered into a definitive agreement (the “Agreement”) pursuant to which B2Gold Corp.
has agreed to acquire all of the issued and outstanding shares of Sabina.
Marathon Project: Generation Mining Limited (“Gen Mining”) announced that the Marathon
Project was approved by the joint Federal and Provincial Environmental Assessment process,
and that they will now proceed to obtain the necessary permits for construction and operation.
Curipamba Project: Adventus Mining Corporation (“Adventus”) announced that the Government
of Ecuador has signed the Investment Contract in support of the development of the El Domo
deposit, which is part of the Curipamba Project.
Portfolio Optimization
Yauliyacu: On August 18, 2022, the Company announced that it had entered into an agreement
with Glencore plc ("Glencore") to terminate its silver stream on the Yauliyacu mine in Peru for a
cash payment of $150 million, less the aggregate value of any deliveries to Wheaton, prior to
closing, of silver produced subsequent to December 31, 2021. The transaction closed on
December 6, 2022, and the Company received a cash payment of $132 million. The Yauliyacu
PMPA was terminated on December 14, 2022.
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Financial Review
Revenues
Revenue was $236 million in the fourth quarter of 2022 representing a 15% decrease from the
fourth quarter of 2021 due primarily to a 10% decrease in the number of GEOs³ sold; and a 6%
decrease in the average realized gold equivalent³ price.
Revenue was $1,065 million in the year ended December 31, 2022, representing a n 11%
decrease from 2021 due primarily to a 6% decrease in the number of gold equivalent³ ounces
sold; and a 6% decrease in the average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the fou rth quarter of 2022 were $434 per GEO² as compared to $433 in
the fourth quarter of 2021. This resulted in a cash operating margin¹ of $1,226 per GEO³ sold, a
decrease of 8% as compared with the fourth quarter of 2021.
Average cash costs¹ in 2022 were $433 per GEO² as compared to $439 in 2021. This resulted in
a cash operating margin¹ of $1,292 per GEO³ sold, a 7% decrease from the 2021.
Balance Sheet (at December 31, 2022)
• Approximately $696 million of cash on hand.
• During the fourth quarter of 2022, the Company made upfront cash payments totaling $4 4
million relative to PMPAs.
• 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.
Reserves and Resources (at December 31, 2022)
• Proven and Probable Mineral Reserves attributable to Wheaton were 13.90 million ounces of
gold compared with 14.04 million ounces as reported in Wheaton’s 2021 Annual Information
Form (“AIF”), a decrease of 1%; 489.2 million ounces of silver compared with 5 64.6 million
ounces, decrease of 13%; 0.60 million ounces palladium compared with 0.63 million ounces,
a decrease of 3%; 0.17 million ounces of platinum, unchanged; and 33.2 million pounds of
cobalt compared to 31. 4 million pounds, an increase of 6%. On a GEO 3 basis, total Proven
and Probable Mine ral Reserves for all metals attributable to Wheaton were 2 1.27 million
ounces, a decrease of 5% with 2% related to the terminations of the Yauliyacu and Keno Hill
streams and the closure of the 777 mine.
• Measured and Indicated Mineral Resources attributable to Wheaton were 5.47 million ounces
of gold compared with 5.44 million ounces as reported in Wheaton’s 2021 AIF, an increase of
1%; 674.8 million ounces of silver compared with 7 67.8 million ounces, a decrease of 12%;
0.09 million ounces of palladium compared to 0.12 million ounces, a decrease of 28%; 0.097
million ounces of platinum, unchanged; and 1.5 million pounds of cobalt , unchanged. On a
GEO3 basis, total Measured and Indicated Mineral Resources for all metals attributable to
Wheaton were 14.38 million ounces, a decrease of 8% with 6% related to the terminations of
the Yauliyacu and Keno Hill streams.
• Inferred Mineral Resources attributable to Wheaton were 4. 69 million ounces of gold
compared with 4. 98 million ounces as reported in Wheaton’s 202 1 AIF, a decrease of 6%;
327.9 million ounces of silver compared with 461.1 million ounces, a decrease of 29%, 0.35
million ounces of palladium , unchanged; 0.017 million ounces of platinum, unchanged; and
7.8 million pounds of cobalt compared to 6.8, an increase of 13%. On a GEO 3 basis, total
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Inferred Mineral Resources for all metals attributable to Wheaton were 9.37 million ounces, a
decrease of 18% with 13% related to the terminations of the Yauliyacu and Keno Hill streams.
Estimated attributable reserves and resources contained in this press release are based on
information available to the Company as of March 2, 2023, and therefore will not reflect updates,
if any, after that date. Updated reserves and resources data incorporating year -end 202 2
estimates will also be included in the Company's 2022 Annual Information Form. Wheaton’s most
current attributable reserves and resources, as of December 31, 202 2, can be found on the
Company’s website at www.wheatonpm.com.
Sustainability
Community Investment Program:
• In 2022, Wheaton’s contribution to the Nature Trust of B.C. was directed towards the Shoal
Creek Estuary in an effort to acquire, protect and enhance estuaries along the B.C. coastline.
In the fourth quarter, the Fall Gala Presented by Wheaton raised over $1.5 million in support
of The Nature Trust’s conservation programs.
• In 2022, Wheaton made a $1 million commitment to the British Columbia Institute of
Technology’s Inspire Campaign aimed at transforming the campus into a dynamic new
learning environment.
• In the fourth quarter, the Sports Celebrities Festival Presented by Wheaton Precious Metals
raised over CA$550,000 in support of Special Olympics BC and the Canucks for Kids Fund.
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 mi ning 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 sil ver, 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 2023 as well as the 5-year average and 10-year
annual gold equivalent production is as follows:
Metal 2023
Forecast2
5-year Annual
Average
(2023-2027)2,5
10-year Annual
Average
(2023-2032)2,5
Gold Ounces 320,000 to 350,000
Silver Ounces (‘000s) 20,000 to 22,000
Other Metals (Palladium & Cobalt)
(GEOs3) 22,000 to 25,000
Total Gold Equivalent Ounces3 600,000 to 660,000 810,000 850,000
In 2023, gold equivalent production is forecast to be slightly higher than 2022 as expected
stronger attributable production from Salobo and Constancia is forecast to be offset by weaker
production from Antamina and the termination of the silver stream on Yauliyacu. Attributable
production is forecast to increase at Salobo as a result of uninterrupted operations as well as
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the start-up of the Salobo III mine expansion and at Constancia due to higher grades associated
with the mining of the Pampacancha deposit. Attributable production is forecast to decrease a
Antamina due to lower grades as per the mine plan.
Average forecast production over the next five years is expected to increase primarily due to
anticipated continued production growth from Salobo, Stillwater, Constancia, Voisey’s Bay and
Marmato as well as incremental production ounces from Blackwater, Toroparu, Marathon,
Copper World Complex and Santo Domingo towards the latter end of the forecast period.
Average forecast production over the next ten years includes additional incremental production
from the Fenix project, Kutcho project and the Victor mine in Sudbury. Vale S.A. has indicated
the potential for an additional expansion after the Salobo III expansion, but Wheaton does not
currently include this in its forecast. Lastly, although Barrick Gold Corp. continues to advance a
comprehensive review of the Pascua Lama project, Wheaton does not include any production
from the project in its estimated average ten-year production 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.
Webcast and Conference Call Details
A conference call will be held on Friday, March 10, 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:
To join the conference call without operator assistanc e, 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: 94667668
Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until March 1 7, 2023 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: 667668 #
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
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(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 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 March 9, 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 2022 production, which are provided to assist the reader, are based on the following
commodity price assumptions: gold $1,800/oz, silver $24/oz, palladium $2,100/oz and cobalt $33/lb. GEOs relating to
2023 outlook 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
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.
5 Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas,
Metates or additional expansions at Salobo outside of the project currently in construction. In addition, five-year
guidance also does not include any production from Kutcho, or the Victor project at Sudbury.