FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Wheaton Precious Metals Announces Solid 2023 Annual Results and Transition to Progressive Dividend Policy
March 14, 2024
Vancouver, British Columbia
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Wheaton Precious Metals Announces Solid 2023 Annual Results and
Transition to Progressive Dividend Policy
“With a record eight acquisitions totalling just over $1 billion in commitments, we bolstered
our growth strategy in 2023, enhancing our production profile and supporting our long-term,
growth forecast of approximately 40% over the next five years,” said R andy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals. “Our diversified portfolio
of long-life, low-cost assets continued to deliver solid operating results, and we are pleased
to have met our annual production guidance, achievin g approximately 620,000 gold
equivalent ounces. Furthermore, we have now recouped over 100% of the value of our initial
upfront investments since inception, an accomplishment which is particularly noteworthy
given the significant reserve and resource base underpinning our portfolio, supporting
decades of forecasted remaining mine life. To reinforce our confidence in the sustainability
and growth potential of Wheaton, we are pleased to announce a transition to a new
progressive dividend policy, marked by an increase in our 2024 annual dividend. As we
embark on what we anticipate being a phase of substantial and meaningful growth, our
dedication to deploying capital in a manner that generates value for not only our
shareholders, but also our partners and communities, remains unwavering."
Solid Financial Results and Strong Balance Sheet
• Fourth quarter of 2023: $313 million in revenue, $242 million in operating cash flow, $168
million in net earnings and $165 million in adjusted net earnings 1 and, paid a quarterly
dividend1 of $0.15 per common share.
• Full year of 2023: $1,016 million in revenue, $751 million in operating cash flow, $538
million in net earnings and $533 million in adjusted net earnings1.
• Balance Sheet: cash balance of $547 million, no debt, and an undrawn $2 billion revolving
credit facility as at December 31, 2023 after making total upfront cash payments of $452
million relative to mineral stream interests in the quarter.
High Quality Asset Base
• Streaming and royalty agreements on 18 operating mines and 27 development projects6.
• 93% of attributable production from assets in the lowest half of their respective cost
curves2,4.
• Attributable gold equivalent production 3 of 174,200 ounces in the fourth quarter of 2023
and 619,600 for the full year of 2023.
• Achieved annual production guidance for 2023 of 600,000 to 660,000 GEOs3, with sector-
leading growth over the next five to ten years.
• Accretive portfolio growth:
o On October 24, 2023, the Company entered into a definitive agreement with
Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total
cash consideration of $115 million.
o On November 15, 2023, announced the Company has entered into a definitive
agreement with certain entities advised by Orion Resource Partners to acquire
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existing streams in respect of Ivanhoe Mines’ Platreef project and BMC Minerals’
Kudz Ze Kayah project, for total cash consideration of up to $455 million. In addition,
the Company entered into an agreement for a gold stream in respect of Dalradian
Gold’s Curraghinalt project, for total cash consideration of $75 million.
o On November 21, 2023, the Company and Vale jointly announced the successful
completion of the throughput test for the first phase of the Salobo III expansion
project in Brazil, with the Salobo complex exceeding an average of 32 Mtpa over a
90-day period. Under the terms of the Salobo precious metals purchase agreement,
the Company made a payment to Vale Base Metals totalling $370 million for
completion of the first phase of the Salobo III expansion project in December 2023.
o On December 13, 2023, the Company entered into a royalty agreement with Vista
Gold Corp. to acquire a royalty in the amount of 1% of gross revenue from the sale
or disposition of minerals from the Mt Todd gold project located in Australia for total
cash consideration of $20 million.
Leadership in Sustainability
• Top Rankings: Ranked in the Global Top 50 out of over 15,000 multi -sector companies
by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
• Subsequent to the quarter, Wheaton was recognized among Corporate Knights’ 2024
100 Most Sustainable Corporations in the world. The Company will be included in the
Global 100 Index, which represents a benchmark for sustainability excellence.
Operational Overview
(all figures in US dollars unless otherwise
noted) Q4 2023 Q4 2022 Change 2023 2022 Change
Units produced
Gold ounces 113,359 69,027 64.2 % 374,585 285,601 31.2 %
Silver ounces 4,208 5,303 (20.6)% 17,176 23,800 (27.8)%
Palladium ounces 4,209 3,869 8.8 % 15,800 15,485 2.0 %
Cobalt pounds 215 128 67.5 % 673 724 (7.1)%
Gold equivalent ounces 3 174,222 142,887 21.9 % 619,608 616,755 0.5 %
Units sold
Gold ounces 115,011 68,996 66.7 % 327,336 293,234 11.6 %
Silver ounces 3,175 4,935 (35.7)% 14,326 21,570 (33.6)%
Palladium ounces 3,339 3,396 (1.7)% 13,919 15,076 (7.7)%
Cobalt pounds 288 187 54.0 % 1,074 1,038 3.5 %
Gold equivalent ounces 3 162,360 138,218 17.5 % 537,608 598,244 (10.1)%
Change in PBND and Inventory
Gold equivalent ounces 3 (2,973) (10,191) (7,218) 23,674 (40,033) (63,707)
Revenue $ 313,471 $ 236,051 32.8 % $ 1,016,045 $ 1,065,053 (4.6)%
Net earnings $ 168,435 $ 166,125 1.4 % $ 537,644 $ 669,126 (19.6)%
Per share $ 0.372 $ 0.367 1.4 % $ 1.187 $ 1.482 (19.9)%
Adjusted net earnings 1 $ 164,569 $ 103,744 58.6 % $ 533,051 $ 504,912 5.6 %
Per share 1 $ 0.363 $ 0.229 58.5 % $ 1.177 $ 1.118 5.3 %
Operating cash flows $ 242,226 $ 172,028 40.8 % $ 750,809 $ 743,424 1.0 %
Per share 1 $ 0.535 $ 0.381 40.4 % $ 1.658 $ 1.646 0.7 %
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
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Financial Review
Revenues
Revenue in the fourth quarter of 2023 was $313 million (74% gold, 24% silver, 1% palladium
and 1% cobalt) , with the $77 million increase relative to the prior period quarter being
primarily due to a 17% increase in the number of GEOs³ sold; and a 13% increase in the
average realized gold equivalent³ price.
Revenue was $1,016 million in the year ended December 31, 2023, representing a $49
million decrease from 2022 due primarily to a 10% decrease in the number of GEOs³ sold,
resulting from relative changes in the GEOs³ produced but not yet delivered; partially offset
by a 6% increase in the average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2023 were $417 per GEO³ as compared to $447
in the fourth quarter of 2022. This resulted in a cash operating margin¹ of $1,514 per GEO³
sold, an increase of 20% as compared with the fourth quarter of 2022, a result of the higher
realized price per ounce coupled with the lower average cash costs.
Average cash costs¹ in 2023 were $424 per GEO³ as compared to $447 in 2022. This resulted
in a cash operating margin¹ of $1,466 per GEO³ sold, a 10% increase from 2022.
Cash Flow from Operations
Operating cash flow in the fourth quarter of 2023 amounted to $242 million, with the $70
million increase due primarily to the higher gross margin.
Operating cash flows in 2023 amounted to $751 million, with the $7 million increase from the
comparable period of the previous year being due primarily to higher amounts of interest
received during the current year, partially offset by lower sales volumes.
Balance Sheet (at December 31, 2023)
• Approximately $547 million of cash on hand
• During the fourth quarter of 2023, the Company made total upfront cash payments of
$452 million relative to the mineral stream interests consisting of
- $35 million payment relative to the Blackwater Silver p recious metals purchase
agreement (“PMPA”);
- a $10 million payment relative to the expansion of the Blackwater Gold PMPA;
- $17 million relative to the Cangrejos PMPA;
- $20 million relative to the Curraghinalt PMPA; and
- $370 million relative to the Salobo III expansion payment
• With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit
facility, the Company believes it is well positioned to fund all outstanding commitments
and known contingencies as well as providing flexibility to acquire additional accretive
mineral stream interests.
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2023, Salobo produced 71,800 ounces of attributable gold,
an increase of approximately 89% relative to the fourth quarter of 2022, driven by higher
throughput, with production from the third concentrator line commencing at the end of 2022,
combined with higher grades and recoveries. The prior year was also impacted by changes
in maintenance routines. In the fourth quarter of 2023, Salobo reached its highest production
level since the fourth quarter of 2019 as the ramp-up of the Salobo III expansion continued
to advance.
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On November 21, 2023, Vale reported the successful completion of the throughput test for
the first phase of the Salobo III project, with the Salobo complex exceeding an average of
32 Mtpa over a 90-day period. Under the terms of the agreement, the Company paid
Salobo $370 million for the completion of the first phase of the Salobo III expansion project
on December 1, 2023. Salobo III is expected to achieve a sustained throughput capacity of
36 Mtpa in the fourth quarter of 2024.
Antamina: In the fourth quarter of 2023, Antamina produced 1.0 million ounces of attributable
silver, a decrease of approximately 3% relative to the fourth quarter of 2022. On February 15,
2024, Peru’s National Environmental Certification Service for Sustainable Investments
approved, after a detailed evaluation process, the Modification of the Environmental Impact
Study, which will allow for the extension of Antamina’s mine life from 2028 to 2036.
Peñasquito: In the fourth quarter of 2023, Peñasquito produced 1.0 million ounces of
attributable silver, a decrease of approximately 41% relative to the fourth quarter of 2022
primarily due to lower throughput resulting from a labour strike which began on June 7, 2023
and ended on October 13, 2023. Newmont Corporation (“Newmont”) reports that operations
have since safely ramped up after a resolution was reached with the National Union of Mine
and Metal Workers of the Mexican Republic (“the Union”) on October 13, 2023. Newmont has
indicated that Peñasquito is expected to deliver higher co-product production in 2024 due to
higher silver, lead and zinc content from the Chile Colorado pit.
Constancia: In the fourth quarter of 2023, Constancia produced 0.8 million ounces of
attributable silver and 22,300 ounces of attributable gold, an increase of approximately 28%
and 112%, respectively, relative to the fourth quarter of 2022. Record quarterly gold
production combined with strong silver production are a result of significantly higher grades
attributable to the mining of high-grade zones of the Pampacancha deposit, combined with
higher recoveries. Hudbay Minerals Inc. (“Hudbay”) reports that gold production in 2024 is
expected to decrease from 2023 levels due to a smoothing of Pampacancha high-grade gold
zones over the 2023 to 2025 period as additional high-grade areas were mined in 2023 ahead
of schedule, and other high -grade areas were deferred to 2025. Hudbay has indicated that
the Pampacancha deposit is now expected to be depleted in the third quarter of 2025, as
opposed to mid-2025 as previously reported.
Sudbury: In the fourth quarter of 2023, Vale’s Sudbury mines produced 6,300 ounces of
attributable gold, an increase of approximately 19% relative to the fourth quarter of 2022, due
to higher throughput, grade and recoveries.
Stillwater: In the fourth quarter of 2023, the Stillwater mines produced 2,300 ounces of
attributable gold and 4,200 ounces of attributable palladium, an increase of approximately
7% for gold and 9% for palladium relative to the fourth quarter of 2022, due primarily to higher
throughput and grades.
Voisey’s Bay: In the fourth quarter of 2023, the Voisey's Bay mine produced 215,000 pounds
of attributable cobalt, an increase of approximately 67% relative to the fourth quarter of 2022,
as the transitional period between the depletion of the Ovoid open-pit and ramp-up to full
production of the Voisey’s Bay underground extension nears completion. Vale reports that
physical completion of the Voisey’s Bay underground mine extension was 92% at the end of
the fourth quarter, and that the main surface assets are completed and already operating.
The electromechanical assembly on the remaining surface assets are well advanced (above
60% physical progress). In the underground portion, the scope in Reid Brook is completed
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and the project is fully focused on Eastern D eeps. The mine development is concluded and
construction is ongoing.
Other Gold: In the fourth quarter of 2023, total Other Gold attributable production was 700
ounces, a decrease of approximately 78% relative to the fourth quarter of 2022, primarily due
to the closure of the Minto mine in May 2023.
Other Silver: In the fourth quarter of 2023, total Other Silver attributable production was 1.3
million ounces, a decrease of approximately 28% relative to the fourth quarter of 2022,
primarily due to the temporary suspension of attributable production from Aljustrel and the
disposal of the Yauliyacu PMPA.
Detailed mine-by -mine production and sales figures can be found in the Appendix to this
press release and in Wheaton’s consolidate d MD&A in the ‘Results of Operations and
Operational Review’ section.
Recent Development Asset Updates
Blackwater Project: On December 15, 2023, Artemis announced that it has completed its
first draw of $150 million under its $360 million project loan facility announced on March 1,
2023, reporting that construction of Blackwater remains on track and that the funds will be
allocated to continue to fund construction towards completion. On January 30, 2024, Artemis
announced that overall construction was 59% complete. On February 21, 2024, Artemis
announced the results of an expansion study to optimize the timing of mine expansion
through the advancing of Phase 2. A decision on the acceleration of the Phase 2 expansion
is expected to be considered in the second half of 2024.
Platreef Project : On February 26, 2024, Ivanhoe Mines (“Ivanhoe”) reported that while
construction activities for the Platreef Phase 1 concentrator are on track for completion in the
third quarter of 2024, hot commissioning and ramp-up of production are now anticipated for
early 2025 in order to prioritize shaft development. An updated independent feasibility study
(“FS”) is planned for the second half of 2024 on an optimized development plan for Phase 2.
The optimized development plan accelerates the development of Phase 2 at a total
processing capacity of 4 Mtpa by equipping Shaft #3 for hoisting. An independent preliminary
economic assessment ( “PEA”) is planned concurrently with the FS on a significantly larger
Phase 3 expansion, once the major 8 Mtpa Shaft #2 is available for hoisting. A Phase 3
expansion to 10 Mtpa processing capacity is expected to rank Platreef as one of the world’s
largest platinum-group metal, nickel, copper and gold producers.
Goose Project: On January 23, 2024, B2Gold Corp., (“B2Gold”) provided a construction
update highlighting that it is progressing ahead of schedule within the mill and processing
buildings, along with preparatory work for peak construction activities in the second and third
quarter of 2024, with the project remaining on schedule for first gold pour in the first quarter
of 2025.
Marmato Mine: On July 12, 2023, Aris Mining Corporation (“Aris Mining”) announced that
they have received approval from the Corporación Autónoma Regional del Caldas
(“Corpocaldas”), a regional environmental authority in Colombia, of the Environmental
Management Plan (“PMA”) which now permits the development of the Marmato Lower Mine.
On March 6, 2024, Aris Mining provided an update that construction at the Marmato Lower
Mine has ramped up with initial access roads completed, the lead contractor for portal and
decline dev elopment selected, and tenders for key items for the new processing plant
underway. First gold pour is expected in late 2025.
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Curipamba Project: Adventus Mining Corporation (“Adventus”) announced that the El Domo
– Curipamba project has been issued a favourable Certificate of No Affect of Water (October
2, 2023) and the environmental license for construction and operation (January 22, 2024) by
the Ministry of Environment and Water of the Government of Ecuador. On January 30, 2024,
Adventus announced that the Ministry of Energy and Mines of Ecuador has issued a permit
which grants approval for the design, construction, operation, and maintenance of the tailings
storage facility (“TSF”). The start of TSF construction is a key condition precedent to
commence installment payments under the precious metals purchase agreement with the
Company. Adventus reports that a construction decision is expected in the second quarter of
2024, and gold-rich copper & zinc concentrate production is expected by the first quarter of
2026.
Marathon Project: The permitting process for the Marathon project continues to advance,
with Generation Mining Limited (“Gen Mining”) announcing on November 7, 2023, that the
province of Ontario had accepted and filed the Closure Plan, and on November 21, 2023,
Gen Mining announced that the Ministry of Natural Resources and Forestry of the province
of Ontario had issued the permit to remove trees . In addition, on November 21, 2023, Gen
Mining announced the closure of the Cdn$15 million bought deal financing with a lead order
of Cdn$5 million from Wheaton.
Fenix Project: On December 20, 2023, Rio2 reported that it had been successful in being
granted approval of its Environmental Impact Assessment (“EIA”), allowing Rio2 to advance
the Fenix proj ect through statutory permitting, financing, and the currently planned
recommencement of construction activities during 2024.
Copper World Complex: On September 8, 2023, Hudbay announced the results of the
enhanced pre-feasibility study for Phase I of its 100% -owned Copper World project in
Arizona. After receipt of two outstanding permits which are expected in mid-2024, Hudbay
intends to complete a minority joint venture partner process prior to commencing a definitive
feasibility study. The opportunity to sanction Copper World is not expected until 2025 based
on current estimated timelines. With the results from this pre-feasibility study, Wheaton has
now incorporated gold in the 2023 mineral reserves and mineral resources statement on our
website.
Cangrejos Project: On October 18, 2023, Lumina Gold Corp., (“Lumina”) announced that
the Cangrejos project is proceeding on schedule. Lumina has been actively executing its
2023 feasibility study drill plan with nine rigs currently at site. Lumina has signed contracts
with several engineering companies for the advancement of the feasibility study. The
feasibility study is expected to be completed in the first quarter of 2025. On January 18, 2024,
Lumina announced results from the phase 1 mining resource conversion drilling campaign in
support of the ongoing feasibility study at Cangrejos. Lumina noted that the assays from the
resource infill program continue to demonstrate the exceptional continuity of grade at
Cangrejos. Lumina also noted that it is operating normally at the Cangrejos project, and their
activities have not been affected by the recent civil disturbances that have impacted other
areas in Ecuador.
Corporate Development
Mineral Park Project
On October 24, 2023, the Company announced that it had entered into a PMPA (the “Mineral
Park PMPA”) with Waterton Copper in respect of silver production from the Mineral Park mine
located in Arizona, USA (“Mineral Park”). Under the Mineral Park PMPA, Whea ton will
purchase 100% of the payable silver from Mineral Park for the life of the mine. Under the
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terms of the Mineral Park PMPA, the Company is committed to pay Waterton Copper total
upfront cash consideration of $115 million in four payments during construction through three
installments of $25 million and a final installment of $40 million. In addition, Wheaton will
make ongoing payments for the silver ounces delivered equal to 18% of the spot price of
silver until the value of the silver delivered, net of the production payment, is equal to the
upfront consideration of $115 million, at which point the production payment will increase to
22% of the spot price of silver. The Company has also entered into a loan agreement to
provide a secured debt facility of up to $25 million to the Mineral Park owner , an affiliate of
Waterton Copper, once the full upfront consideration has been paid.
Platreef, Kudz Ze Kayah & Curraghinalt Streams
On November 15, 2023, the Company announced that it had entered into a defi nitive
agreement with certain entities advised by Orion Resource Partners (“Orion”) to acquire
existing streams in respect of Ivanhoe Mines’ Platreef project (the “Platreef Gold PMPA” and
the “Platreef Palladium and Platinum PMPA”) and BMC Minerals’ Kudz Ze Kayah project (the
“KZK PMPA”). In addition, the Company entered into a new PMPA for a gold stream in
respect of Dalradian Gold’s Curraghinalt project (the “Curraghinalt PMPA”).
• Platreef Project
Until certain delivery thresholds have been met, in respect of the existing Platreef
Gold PMPA, the Company is entitled to purchase 62.5% of the payable gold and in
respect of the Platreef Palladium and Platinum PMPA, the Company is entitled to
purchase 5.25% of the payable palladium and platinum, after which the percentage
of payable metal will be reduced as set forth in each of the respective PMPAs7.
• Kudz Ze Kayah Project
In respect of the existing KZK PMPA, the Company is entitled to purchase staged
percentages of produced gold and payable silver ranging from 6.875% to 7.375% until
certain delivery thresholds have been met, at which point the percentage of produced
gold and payable silver will be reduced as set forth in the KZK PMPA8.
• Curraghinalt Project
In respect of the Curraghinalt PMPA, the Company is entitled to purchase 3.05% of
the payable gold until certain delivery thresholds have been met, at which point the
percentage of payable gold will be reduced as set forth in the Curraghinalt PMPA9.
Under the agreement with Orion to purchase the Platreef and KZK PMPAs, the Company
committed to pay $450 million on closing of the acquisition, with an additional $5 million
contingency payment in respect of the KZK PMPA. Under the terms of the Curraghinalt
PMPA, the Company paid $20 million on December 21, 2023, with an additional $55 million
to be paid during construction, subject to various customary conditions being satisfied. In
addition, the Company will make ongoing payments for the precious metals delivered as set
forth in the various PMPAs10. Closing of the Orion Purchase Agreement occurred on February
27, 2024.
Mt Todd Royalty
On December 13, 2023, the Company entered into a royalty agreement with Vista Australia
Pty. Ltd., a subsidiary of Vista Gold Corp. (“Vista”), in relation to the Mt Todd gold project
located in Northern Territory, Australia for total cash consideration of $20 million. The
Company was granted a Right of First Refusal on all royalties, streams or pre-pays that
include precious metals pertaining to Mt Todd. On December 18, 2023, the Company paid
the first installment payment of $3 million under the royalty agreement.
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DeLamar Royalty
On February 20, 2024, the Company purchased a 1.5% net smelter return royalty interest
(the “DeLamar Royalty”) in the DeLamar and Florida mountain project located in Idaho,
United States (the “DeLamar project”) from a subsidiary of Integra Resources Corporation
(“Integra”) for $9.75 million to be paid in two equal installments. The first installment of
$4.875 millionwas paid on closing on March 7,2024. The second installment is expected to
be paid four months after the first installment.
Reserves and Resources (at December 31, 2023)
• Proven and Probable Mineral Reserves attributable to Wheaton were 15.1 million
ounces of gold compared with 13.4 million ounces as reported in Wheaton’s 2022
Annual Information Form (“AIF”), an increase of 12%; 484.7 million ounces of silver
compared with 484.6 million ounces, unchanged; 0.90 million ounces palladium
compared with 0.60 million ounces, an increase of 49%; 0.52 million ounces of
platinum compared with 0.18 million ounces, an increase of 192%; and 33.3 million
pounds of cobalt compared to 33.2 million pounds, a decrease of 3%. On a GEO5
basis, total Proven and Probable Mineral Reserves for all metals attributable to
Wheaton were 21.6 million ounces compared to 19.6 million ounces, an increase of
10%.
• Measured and Indicated Mineral Resources attributable to Wheaton were 7.0 million
ounces of gold compared with 5.5 million ounces as reported in Wheaton’s 2022 AIF,
an increase of 28%; 714.6 million ounces of silver compared with 673.0 million
ounces, an increase of 6%; 0.12 million ounces of palladium compared with 0.09
million ounces, an increase of 36%; 0.09 million ounces of platinum compared with
0.08 million ounces, an increase of 16%; and 1.2 million pounds of cobalt compared
with 1.5 million pounds, a decrease of 24%. On a GEO 5 basis, total Measured and
Indicated Mineral Resources for all metals attributable to Wheaton were 15.4 million
ounces compared with 13.3 million ounces, an increase of 15%.
• Inferred Mineral Resources attributable to Wheaton were 5.1 million ounces of gold
compared with 4.6 million ounces as reported in Wheaton’s 2022 AIF, an increase of
10%; 307.8 million ounces of silver compared with 326.3 million ounces, a decrease
of 6%, 0.37 million ounces of palladium compared with 0.35 million ounces, an
increase of 4%; 0.04 million ounces of platinum compared with 0.01 million ounces,
an increase of 173%; and 7.2 million pounds of cobalt compared with 7.8 million
pounds, a decrease of 7%. On a GEO5 basis, total Inferred Mineral Resources for all
metals attributable to Wheaton were 8.9 million ounces compared with 8.6 million
ounces, an increase of 3%.
Estimated attributable reserves and resources contained in this press release are based on
information available to the Company as of March 8, 2024, and therefore will not reflect
updates, if any, after that date. Updated reserves and resources data incorporating year-end
2023 estimates will also be included in the Company's 2023 Annual Information Form.
Wheaton’s most current attributable reserves and resources, as of December 31, 2023, can
be found on the Company’s website at www.wheatonpm.com.