SECOND QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Solid Second Quarter Results for 2023
August 10, 2023
Vancouver, British Columbia
Designated News Release
SECOND QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Solid Second Quarter Results for 2023
“Wheaton delivered solid operational results during the quarter, generating over $200 million of
operating cash flow, primarily driven by significant sequential improvement at the recently
commissioned expansion at our largest asset, Salobo. Furthermore, we continued to see
momentum on the corporate development front with the addition of a new gold stream on Lumina
Gold’s Cangrejos project and the expansion of our existing gold stream on Artemis Gold’s
Blackwater project,” said Randy Smallwood, President and Chief Executive Officer of Wheaton
Precious Metals. “Despite operations at Peñasquito being suspended in early June, we achieved
quarter-over-quarter gold equivalent production growth. As such, we are reiterating our 2023
production guidance, which we now expect to have a slightly higher weighting toward gold,
highlighting the resilience of our high -quality, diversified portfolio. Lastly, we are proud to have
published our 2022 Sustainability Report and inaugural 2022 Climate Change Report,
demonstrating our continued commitment to sustainability and focus on delivering value to all of
our stakeholders.”
Solid Financial Results and Strong Balance Sheet
• Second quarter of 2023: $265 million in revenue, $ 202 million in operating cash flow, $1 41
million in net earnings and $143 million in adjusted net earnings1
• A cash balance of $8 29 million and no debt as at June 30, 2023, after making total upfront
cash payments of $89 million relative to mineral stream interests in the quarter
• Undrawn $2 billion revolving credit facility extended by an additional year with the facility now
maturing on June 22, 2028
• Declared a quarterly dividend1 of $0.15 per common share
High Quality Asset Base
• Streaming agreements on 19 operating mines and 13 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
• Accretive portfolio growth:
o Acquired a 6.6% gold stream on Lumina Gold Corp.’s (“Lumina”) Cangrejos Project
(“Cangrejos”)
o Expanded the gold stream on Artemis Gold Inc.’s Blackwater Project (“Blackwater”)
• Further de-risked growth profile: the Goose Project was acquired by B2Gold Corp (“B2Gold”).
and Aris Mining Corporation (“Aris Mining”) received approval of the Environmental
Management Plan which now permits the development of the Marmato Lower Mine
• Second quarter p roduction amounted to 147,700 gold equivalent ounces 3 ("GEOs"),
underscored by significant progress at the recently commissioned expansion at Salobo
• Average annual production guidance for 2023 of 600,000 to 660,000 GEOs2,3 maintained, with
sector-leading growth resulting in five and ten -year average annual production guidance of
approximately 810,000 and 850,000 GEOs2,3, respectively
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Leadership in Sustainability
• Top Rankings: #1 out of 11 7 precious metals companies and ranked in the Global Top 50
companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS
• Published inaugural Climate Change Report, detailing progress towards Net -Zero Carbon
Emissions by 2050 and covering all material emissions including Scope 3
• Published fourth annual Sustainability Report highlighting our commitment to progress and
providing a comprehensive review of Wheaton’s performance in environmental, social and
governance topics
Operational Overview
(all figures in US dollars unless otherwise
noted) Q2 2023 Q2 2022 Change YTD 2023 YTD 2022 Change
Units produced
Gold ounces 85,083 66,442 28.1 % 158,102 144,496 9.4 %
Silver ounces 4,417 6,500 (32.0)% 9,513 12,675 (24.9)%
Palladium ounces 3,880 3,899 (0.5)% 7,585 8,387 (9.6)%
Cobalt pounds 152 136 11.3 % 276 371 (25.6)%
Gold equivalent ounces 3 147,699 155,932 (5.3)% 291,700 320,843 (9.1)%
Units sold
Gold ounces 75,294 84,337 (10.7)% 137,899 162,238 (15.0)%
Silver ounces 4,437 5,848 (24.1)% 8,186 11,401 (28.2)%
Palladium ounces 3,392 3,378 0.4 % 6,338 7,453 (15.0)%
Cobalt pounds 265 225 17.8 % 588 736 (20.1)%
Gold equivalent ounces 3 138,835 165,766 (16.2)% 256,218 324,847 (21.1)%
Change in PBND and Inventory
Gold equivalent ounces 3 (4,872) (25,675) (20,803) 6,392 (36,737) (43,129)
Revenue $ 264,972 $ 302,922 (12.5)% $ 479,437 $ 610,166 (21.4)%
Net earnings $ 141,448 $ 149,074 (5.1)% $ 252,839 $ 306,542 (17.5)%
Per share $ 0.312 $ 0.330 (5.5)% $ 0.559 $ 0.679 (17.7)%
Adjusted net earnings 1 $ 142,584 $ 149,285 (4.5)% $ 247,015 $ 307,292 (19.6)%
Per share 1 $ 0.315 $ 0.331 (4.8)% $ 0.546 $ 0.681 (19.8)%
Operating cash flows $ 202,376 $ 206,359 (1.9)% $ 337,482 $ 416,899 (19.0)%
Per share 1 $ 0.447 $ 0.457 (2.2)% $ 0.746 $ 0.924 (19.3)%
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Financial Review
Revenues
Revenue in the second quarter of 2023 was $265 million (56% gold, 41% silver, 2% palladium
and 1% cobalt), with the $38 million decrease relative to the prior period quarter being primarily
due to relative changes in the GEOs 3 produced but not yet delivered partially offset by a 4%
increase in realized commodity prices.
Revenue was $479 million in the six mo nths ended June 30, 2023, representing a $131 million
decrease from the comparable period of the previous year due primarily to a 21% decrease in the
number of GEOs³ sold, resulting from lower production and relative changes in the GEOs 3
produced but not yet delivered.
Cash Costs and Margin
Average cash costs¹ in the second quarter of 2023 were $422 per GEO³ as compared to $452 in
the second quarter of 2022. This resulted in a cash operating margin¹ of $1,487 per GEO³ sold,
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an increase of 8% as compared with the second quarter of 2022 , a result of the higher realized
price per ounce.
Average cash costs¹ for the six months ended June 30, 2023 were $432 per GEO³ as compared
to $446 in the comparable period of the previous year. This resulted in a cash operating margin¹
of $1,439 per GEO³ sold, virtually unchanged from the comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the second quarter of 2023 amounted to $202 million, with the $4 million
decrease due primarily to the lower sales volumes, partially offset by higher amounts of interest
received in the second quarter of 2023 coupled with the timing of the payout of the Company’s
performance share units ( “PSUs”), with the PSUs being paid out in the second quarter of 2022
while in 2023, they were paid out in the first quarter.
Operating cash flows for the six months ended June 30, 2023 amounted to $337 million, with the
$79 million decrease from the comparable period of the previous year being due primarily to the
lower sales volumes, partially offset by higher amounts of intere st received during the current
year.
Balance Sheet (at June 30, 2023)
• Approximately $829 million of cash on hand
• The Company extended its existing undrawn $2 billion revolving term loan (the "Revolving
Facility") with its maturity date now June 22, 2028
• During the second quarter of 2023, the Company made total upfront cash payments of $89
million relative to the mineral stream interests consisting of
- a $31 million payment relative to the Goose Project precious metals purchase agreement
(“PMPA”)
- a $35 million payment relative to the Blackwater Silver PMPA
- a $10 million payment relative to the expansion of the Blackwater Gold PMPA
- a $12 million payment relative to the Cangrejos 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.
Second Quarter Operating Asset Highlights
Salobo: In the second quarter of 2023, Salobo produced 54,800 ounces of attributable gold, an
increase of approximately 61% relative to the second quarter of 2022, driven by higher throughput
and grades. According to Vale S.A. (“Vale”), production in the second quarter was driven by a
better-than-expected ramp up of Salobo III partially offset by planned maintenance activities and
additional work on the crushers at Salobo I and II. Vale reports that planned maintenance activities
will continue in the second half of 2023, and that the ramp up of Salobo III is expected to be fully
completed in 2024.
Antamina: In the second quarter of 2023, Antamina produced 1.0 million ounces of attributable
silver, a decrease of approximately 28% relative to the second quarter of 2022 , primarily due to
lower grades as per the mine plan.
Peñasquito: In the second quarter of 2023, Peñasquito produced 1.7 million ounces of
attributable silver, a decrease of approximately 17% relative to the second quarter of 2022 due to
lower throughput.
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On June 8, 2023, Newmont Corporation (“Newmont”) reported that it had suspended operations
at the Peñasquito mine due to a labour dispute. To date, Newmont has indicated that it is in
ongoing discussions with the leadership for the National Union of Mine and Metal Workers of
the Mexican Republic and remains focused on finding a sustainable resolution to the dispute.
Constancia: In the second quarter of 2023, Constancia produced 0.4 million ounces of
attributable silver and 7,400 ounces of attributable gol d, a decrease of approximately 28% and
7%, respectively, relative to the second quarter of 2022, with the decrease in both metals being
primarily due to lower throughput and grades. As per Hudbay, full mining activities resumed in the
Pampacancha pit in Fe bruary and the period of higher planned stripping activities in the
Pampacancha pit was completed in June, with higher -than-expected production forecast for the
second half of the year.
Sudbury: In the second quarter of 2023, Vale’s Sudbury mines produced 7,700 ounces of
attributable gold, an increase of approximately 46% relative to the second quarter of 2022. As per
Vale, the increase in production from Sudbury was driven primarily due to lower production in the
second quarter of 2022 due to a 28 -day maintenance shutdown at the Sudbury smelter and
refiner.
Stillwater: In the second quarter of 2023, the Stillwater mines produced 2,000 ounces of
attributable gold and 3,900 ounces of attributable palladium, a decrease of approximately 7% for
gold relative to the second quarter of 2022 while palladium production was virtually unchanged.
As reported by Sibanye -Stillwater Limited, production in the quarter was impacted due to an
incident in March at Stillwater West involving 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 but recommenced on April 16, 2023.
San Dimas: In the second quarter of 2023, San Dimas produced 11,200 ounces of attributable
gold, an increase of approximately 11% relative to the second quarter of 2022. First Majestic Silver
Corp. reported that exploration drill holes at the San Dimas proper ty intersected significant gold
and silver mineralization in three separate veins: the Sinaloa North -Elia vein, the Santa Teresa
vein and the Perez vein.
Other Gold: In the second quarter of 2023, total Other Gold attributable production was 1,900
ounces, a decrease of approximately 71% relative to the second quarter of 2022, primarily due to
the closure of the 777 mine in June 2022 and the suspension of operations at the Minto mine in
May 2023.
Other Silver: In the second quarter of 2023, total O ther Silver attributable production was 1.3
million ounces, a decrease of approximately 48% relative to the second quarter of 2022, primarily
due to the closure of the 777 mine and the termination of the Keno Hill and Yauliyacu PMPAs.
Voisey’s Bay: In the second quarter of 2023, the Voisey's Bay mine produced 152,000 pounds
of attributable cobalt, an increase of approximately 11% relative to the second quarter of 2022 ,
primarily due to mining lower grade material during the ongoing transitional period b etween the
depletion of the Ovoid open -pit mine and ramp -up to full production of the Voisey’s Bay
underground project. Production in the second quarter was also impacted as the annual
maintenance schedule at the Long Harbour refinery (from May to July) was planned longer than
the previous year. Vale reports that physical completion of the Voisey’s Bay underground mine
extension was 85% at the end of the second quarter, with Reid Brook's bulk material handling
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system expected to be delivered in the third quarter of 2023, and lateral development advancing
on the Eastern Deeps. Vale achieved the first ore production from the Reid Brook deposit, the
first of two underground mines to be developed in the project, in the second quarter of 2021 .
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.
Second Quarter Development Asset Highlights
Blackwater Project: On June 14, 2023, the Company amended the Blackwater Gold PMPA .
Under the terms of the amended agreement, the Company is entitled to purchase an amount of
gold equal to 8% of the payable gold production until 464,000 ounces have been delivered
(previously 279,908 ounces), with this threshold to increase should there be a delay in the
anticipated timing of deliveries. Once the threshold has been achieved, the Company’s
attributable gold production will drop to 4% of payable gold production for the life of the mine. In
exchange for the amendment, the Company is committed to pay additional upfront cash
consideration of $40 million, payable in four installments, with the first payment of $ 10 million
having been paid on June 15, 2023. In conjunction with this amendment, Artemis announced that
they were committing additional investment as part of its Phase 1 development in order to facilitate
the potential fast-tracking of the Phase 2 expansion.
In addition, on July 4, 2023, Artemis announced receipt of the Fisheries Act Authorization for
development of Blackwater , which will facilitate the commencement of construction of water
diversion structures and dams in the Davidson Creek valley which runs through the basin of the
Blackwater tailings storage facility.
Marmato Mine: On July 12, 2023, Aris Mining announced that they have received approval from
the Corporación Autónoma Regional del Caldas, a regional environmental authority in Colombia,
of the Environmental Management Plan which now permit s the development of the Marmato
Lower Mine.
Copper World Complex: On April 5, 2023, Hudbay announced the receipt of confirmation from
the Army Corps of Engineers (“ACOE”) 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. The ACOE also reaffirmed the validity of the March 2021 approved jurisdictional
determinations whereby the ACOE determined there are no waters of the U.S. on the property,
and therefore, a 404 Permit is not required. Hudbay continues to expect to receive the two
remaining state permits required (an Aquifer Protection Permit and an Air Quality Permit) in the
second half of 2023. 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 Coppe r World project are well -advanced
and a pre-feasibility study is expected to be released in the third quarter of 2023.
Goose Project: On April 19, 2023, B2Gold acquired Sabina Gold & Silver Corp (“Sabina”) , the
owners of the Goose Project. 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 Goose PMPA in the amount of $5 million.
B2Gold continues to advance construction of the Goose Project, moving toward commencement
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of production in 2025 and initiating an exploration program to further define untapped potential
and unlock further opportunities for growth.
Curipamba Project: On August 2, 2023, Adventus Mining Corp. provided an update that the
Constitutional Court of Ecuador (the “Constitutional Court”) has admitted for processing an
unconstitutionality claim filed by the indigenous group CONAIE and other complainants against
Presidential Decree 754 (the “Decree”) that regulates environmental consultation for all public
and private industries and sectors in Ecuador. Adventus also notes that the Constitutional Court
ordered the provisional suspension of the Decree until the same Constitutional Court resolves the
claim filed. Adventus indicates that the immediate effect of the provisional suspension of the
Decree is that no medium or high impact projects, from any sector or industry in the country,
including the Curipamba project, shall be able to obtain an environmental license until the
Constitutional Court resolves this issue. Adventus reports that the Government of Ecuador has
stated that it will employ all measures at its disposal to respond to the Constitutional Court.
Corporate Development
Cangrejos PMPA: On May 16, 2023, the Company entered into a PMPA with Lumina in respect
of its 100% owned Cangrejos gold-copper project located in El Oro Province, Ecuador. Under the
terms of the agreement, Wheaton will purchase 6.6% of the payable gold production until 700,000
ounces of gold ha ve been delivered, at which point the stream will be reduced to 4.4% of the
payable gold production for the life of the mine. Under the terms of the Cangrejos PMPA, the
Company is committed to pay Lumina total upfront cash payments of $300 million, $48 million of
which is available pre -construction, with the remainder to be paid in staged equal installments
during construction of the mine, subject to various customary conditions being satisfied. As it
relates to the $48 million, payments will be made in four installments, including (i) $12 million
which was paid on closing; (ii) $ 10 million to be paid six months after clos ing; (iii) $15 million to
be paid 12 months after clos ing; and (iv) $11 million that can be drawn upon for committed
acquisition of surface rights.
Sustainability
Annual Sustainability Report
• Wheaton published its fourth annual Sustainability Report on May 15, 2023, highlighting its
commitment to progress and providing a comprehensive review of Wheaton’s performance in
environmental, social and governance topics including:
o Strategy and Governance: Established a sustainability linked element in connection
with the revolving credit facility
o Diversity, Equity and Inclusion: Achieved target of 30% female Board members two
years early
o Investment Decisions and Due Diligence: 100% of new streaming agreements in 2022
screened for ESG issues and risks , and 85% of Wheaton's mining partners are
committed to implementing one or more industry sustainability standards, representing
89% of attributable 2022 production
o Recognition: 'ESG Industry Top-Rated' in precious metals and 'ESG Global 50 Top
Rated' out of over 15,000 multi-sector companies by Sustainalytics, 'AA' rated by MSCI
and 'Prime' rated by ISS
Inaugural Climate Change Report:
• Wheaton published its inaugural Climate Change Report on June 15, 2023, highlighting:
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o Details on climate -related governance, strategy, risk management, and metrics and
performance
o Expanded information on the pathway to achieve net-zero carbon emissions by 2050
and progress to date on this topic
o Identification of climate risks and opportunities and management strategies.
o Commitment to support our partners’ decarbonization and climate solutions efforts
o 68% of 2021 Scope 3 financed emissions covered by emissions reductions targets
aligned to 2°C or less
o Limited assurance over Scope 2 and Scope 3 finance emissions
• On April 27, 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 gre enhouse gas 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:
• During the quarter, Wheaton confirmed its support for a new Vale initiative aimed at reducing
extreme poverty in the communities surrounding the Salobo mine. The program builds upon
the success of previous initiatives supported by both Wheaton and the Vale Foundation aimed
at promoting social and economic development.
• During the quarter, the Wheaton Walk Through Time was completed at the University of British
Columbia. Funded by Wheaton, the outdoor exhibit links the Pacific Museum of Earth and the
Beaty Biodiversity Museum with an objective to garner interest among children and youth in
earth sciences. It includes a Timeline of the geological and biological history of the earth since
its formation 4.5 billion years ago in combination with a Tree of Life showing the evolutionary
relationship between all living things.
• The 2023 Courage to Come Back Awards Presented by Wheaton celebrated its 25th
anniversary, attracting over 1,700 guests and raising over C$2.7 million for Coast Mental
Health.
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 continu e to grow through accretive 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 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.
Due to the suspension of the Peñasquito mine as a result of the ongoing labour dispute, and the
Company’s inability to forecast when it will be resolved, Wheaton now expects its full -year
production to have a slightly higher weighting toward gold. Assuming the dispute is resolved and
operations resume by the end of the third quarter of 2023, the Company expects to achieve its
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total GEO2,3 guidance of approximately 600,000 to 660,000 GEOs. 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, August 11, 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 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: 43211206
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 August 18, 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: 211206#
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.sedarplus.ca.
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.