SECOND QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Second Quarter 2024 Results and Record Operating Cash Flow for the First Half of 2024
August 7, 2024
Vancouver, British Columbia
Designated News Release
SECOND QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Second Quarter 2024 Results
and Record Operating Cash Flow for the First Half of 2024
"Wheaton once again delivered strong results in the second quarter, generating $234 million
in operating cash flow, resulting in record cash flows of over $450 million for the first half of
the year. With year-to-date gold equivalent production of approximately 305,000 ounces, we
are well on track to achieve our 2024 production guidance of 550,000 to 620,000 gold
equivalent ounces," said Randy Smallwood, President and Chief Executive Officer of
Wheaton Precious Metals." In addition, we were ranked among the top 10 companies on
Corporate Knights’ annual list of the Best 50 Corporate Citizens in Canada and published our
annual sustainability and climate change report s. Corporate Knights’ recognition highlights
our leadership in sustainability and commitment to creating value for all stakeholders. Our
performance in the first half of 2024 supports our belief that the strength of our organic growth
profile and high-quality, long-life portfolio, combined with favorable commodity price trends,
firmly positions Wheaton as a premier choice for precious metals exposure.”
Solid Financial Results and Strong Balance Sheet
• Second quarter of 202 4: $299 million in revenue, $2 34 million in operating cash flow,
$122 million in net earnings and $1 50 million in adjusted net earnings1 and, declared a
quarterly dividend1 of $0.155 per common share.
• Balance Sheet: cash balance of $540 million, no debt, and an undrawn $2 billion revolving
credit facility as at June 30, 2024 after making total upfront cash payments of $45 million
relative to mineral stream and royalty interests in the quarter.
o Undrawn $2 billion revolving credit facility extended by an additional year with the
facility now maturing on June 25, 2029.
High Quality Asset Base
• Streaming and royalty agreements on 18 operating mines and 27 development projects5.
• 93% of attributable production from assets in the lowest half of their respective cost
curves2,4.
• Attributable gold equivalent production3 (“GEOs”) of 147,100 ounces in the second
quarter of 2024 and 305,800 for the first six months of 2024, with year-to-date production
representing an increase of 13% relative to the comparable period of the prior year due
primarily to the mill throughput expansion at Salobo.
• Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs 3
maintained, with forecasted sector-leading growth of over 800,000 GEOs3 by 2028, and
average annual forecast attributable production growing to over 850,000 GEOs3 in years
2029 to 2033.
• Further de -risked forecast growth profile as construction activities advanced at the
Blackwater, Goose, Platreef, Mineral Park and Marmato Lower Mine Projects, all of which
are expected to be producing within the next 16 months.
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Leadership in Sustainability
• Recognized among Corporate Knights ’ 2024 100 Most Sustainable Corporations in the
World, and Best 50 Corporate Citizens in Canada.
• Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI and
Prime rated by ISS.
• Published our second annual Climate Change Report detailing how Wheaton is
addressing climate change risks and opportunities, as well as potential climate -related
impacts.
• Published our fifth annual Sustainability Report highlighting our commitment to
responsible business practices 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 2024 Q2 2023 Change YTD 2024 YTD 2023 Change
Units produced
Gold ounces 84,993 83,180 2.2 % 176,932 156,199 13.3 %
Silver ounces 5,062 4,441 14.0 % 10,538 9,575 10.1 %
Palladium ounces 4,338 3,880 11.8 % 8,801 7,585 16.0 %
Cobalt pounds 259 152 70.8 % 499 276 80.8 %
Gold equivalent ounces 3 147,059 137,176 7.2 % 305,761 271,906 12.5 %
Units sold
Gold ounces 77,326 75,294 2.7 % 169,345 137,899 22.8 %
Silver ounces 3,823 4,437 (13.8)% 7,890 8,186 (3.6)%
Palladium ounces 4,301 3,392 26.8 % 9,075 6,338 43.2 %
Cobalt pounds 88 265 (66.8)% 397 588 (32.5)%
Gold equivalent ounces 3 124,009 129,734 (4.4)% 267,193 239,027 11.8 %
Change in PBND and Inventory
Gold equivalent ounces 3 9,615 (13,750) (23,365) 10,289 (1,994) (12,283)
Revenue $ 299,064 $ 264,972 12.9 % $ 595,870 $ 479,437 24.3 %
Net earnings $ 122,317 $ 141,448 (13.5)% $ 286,358 $ 252,839 13.3 %
Per share $ 0.270 $ 0.312 (13.5)% $ 0.632 $ 0.559 13.1 %
Adjusted net earnings 1 $ 149,565 $ 142,584 4.9 % $ 288,398 $ 247,015 16.8 %
Per share 1 $ 0.330 $ 0.315 4.8 % $ 0.636 $ 0.546 16.5 %
Operating cash flows $ 234,393 $ 202,376 15.8 % $ 453,773 $ 337,482 34.5 %
Per share 1 $ 0.517 $ 0.447 15.7 % $ 1.001 $ 0.746 34.2 %
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
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Financial Review
Revenues
Revenue in the second quarter of 2024 was $299 million (61% gold, 37% silver, 1% palladium
and 1% cobalt) , with the $34 million increase relative to the prior period quarter being
primarily due to an 18% increase in the average realized gold equivalent³ price; partially offset
by a 4% decrease in the number of GEOs³ sold.
Revenue was $596 million in the six months ended June 30, 2024, representing a $116
million increase from the comparable period of the previous year due primarily to an 11%
increase in the average realized gold equivalent³ price, resulting from relative changes in the
GEOs³ produced but not yet delivered; and a 12% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the second quarter of 2024 were $436 per GEO³ as compared to
$452 in the second quarter of 2023. This resulted in a cash operating margin¹ of $1,976 per
GEO³ sold, an increase of 24% as compared with the second quarter of 2023, a result of the
higher realized price per ounce coupled with the lower average cash costs.
Average cash costs¹ for the six months ended June 30, 2024 were $433 per GEO³ as
compared to $463 in the comparable period of the previous year. This resulted in a cash
operating margin¹ of $1,797 per GEO³ sold, a 16% increase from the comparable period of
the previous year.
Cash Flow from Operations
Operating cash flow in the second quarter of 2024 amounted to $234 million, with the $32
million increase due primarily to the higher gross margin.
Operating cash flows for the six months ended June 30, 2024 amounted to $454 million, with
the $116 million increase from the comparable period of the previous year being due primarily
to the higher gross margin.
Balance Sheet (at June 30, 2024)
• Approximately $540 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 25, 2029.
• During the second quarter of 2024, the Company made total upfront cash payments of
$45 million relative to the mineral stream and royalty interests consisting of:
o $10 million relative to the Cangrejos PMPA;
o $25 million relative to the Mineral Park PMPA; and
o $10 million relative to the Mt Todd Royalty.
• During the second quarter of 2024 , the Company disposed of its investment in Hecla
Mining Company for gross proceeds of $177 million.
• 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.
Global Minimum Tax
The Company is within the scope of global minimum tax (“GMT”) under the OECD Pillar Two
model rules (“Pillar Two”), under which large multinational entities will be subject to a 15%
GMT. On June 20, 2024, Canada’s Global Minimum Tax Act (“GMTA”), received royal assent.
The GMTA enacts the OECD Pillar Two model rules where in scope companies will be
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subject to a 15% GMT for fiscal years commencing on or after December 31, 2023. With the
enactment of the GMTA on June 20, 2024, the income of the Company’s subsidiaries which
operate in jurisdictions with a statutory tax rate of 0% is impacted by the GMTA and an
amount of $51 million current tax expense associated with GMT was recorded for the period
from January 1, 2024 to June 30, 2024. GMT accrued to December 31, 2024, is payable on
or before June 30, 2026 (18 months following year-end).
Second Quarter Operating Asset Highlights
Salobo: In the second quarter of 2024, Salobo produced 63,200 ounces of attributable gold,
an increase of approximately 15% relative to the second quarter of 2023, driven by higher
throughput, with production from the third concentrator line commencing at the end of 2022.
On April 24, 2024, Vale S.A. (“Vale ”) reported the continued ramp -up at Salobo III, which
reached 90% average throughput in the first quarter , as well as improved year over year
operational performance at Salobo I and II. On July 25, 2024, Vale also reported that the
Salobo III processing plant operations resumed in July, after being halted for 31 days due to
a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355
kt has been maintained.
Peñasquito: In the second quarter of 2024, Peñasquito produced 2.3 million ounces of
attributable silver, an increase of approximately 30% relative to the second quarter of 2023
primarily due to higher throughput, partially offset by lower grades.
Constancia: In the second quarter of 2024, Constancia produced 0.5 million ounces of
attributable silver and 6,100 ounces of attributable gold, an increase of approximately 7% for
silver production and a decrease of approximately 18% for gold production relative to th e
second quarter of 2023. The decrease in gold production was primarily the result of lower
gold grades due largely to the planned stripping activity in the Pampacancha pit, which
commenced in the second quarter and is expected to continue thro ugh the third quarter. As
a result of the stripping activity, ore feed was supplemented with stockpiles during the second
quarter, as per the original mine plan. Mill ore feed has now reverted to the typical blend of
approximately one -third from Pampacancha and two -thirds from Constancia, which is
expected to continue throughout 2024. The increase in silver production is primarily due to
higher throughput and grades, partially offset by lower recoveries.
Stillwater: In the second quarter of 2024, the Stillwater mines produced 2,100 ounces of
attributable gold and 4,300 ounces of attributable palladium, an increase of approximately
4% for gold and 12% for palladium relative to the second quarter of 2023, due primarily to
higher throughput and grades.
Voisey’s Bay: In the second quarter of 2024, the Voisey's Bay mine produced 259,000
pounds of attributable cobalt, an increase of approximately 71% relative to the second quarter
of 2023, as the transitional period between the depletion of the Ovoid open-pit and ramp-up
to full production of the Voisey’s Bay underground mine nears completion. Vale reports that
physical completion of the Voisey’s Bay underground mine extension was 96% at the end of
the second quarter, and that the main surface assets are completed and in operation. In the
underground portion, Reid Brook activities are largely complete, with the powerhouse
planned to be fully commissioned and linked to the grid by Q3 2024. The mine development
at Eastern Deeps is now concluded, and construction of the bulk material handling system,
dewatering and support facilities is ongoing. The full mine assets at Eastern Deeps are
expected to be in operation by the end of 2024.
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Other Gold: In the second quarter of 2024, total Other Gold attributable production was 600
ounces, a decrease of approximately 70% relative to the second quarter of 2023, primarily
due to the closure of the Minto mine in May 2023.
Other Silver: In the second quarter of 2024, total Other Silver attributable production was
1.4 million ounces, an increase of approximately 5% relative to the second quarter of 2023.
The increase from the comparable period of the prior year is primarily due to an 87% increase
in production at Zinkgruvan as a result of higher throughput and grades, largely offset by the
cessation of attributable ore mined at Aljustrel.
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.
Recent Development Asset Updates
Blackwater Project: On July 30, 2024, Artemis Gold Inc. (“Artemis”) announced that overall
construction was approximately 87% complete and that construction of the water
management pond, excavation of the cutoff trench, and the earthworks and lining of the
central water management pond were completed. Work on the tailings storage facility
continues to progress well with increased productivity and material movements through the
quarter. Equipment installation was a key focus area as well as installation of structural steel,
conveyors, platework, pipework, and electrical infrastructure. Ear ly pre -commissioning
activities in the crushing area of the process facility are underway. Artemis also stated that
the project remains on schedule for first gold pour in Q4 2024.
On July 22, 2024, Artemis announced that it had responded to a wildfire evacuation order by
proactively removing all non-essential staff and contractors as of July 21, 2024. On July 26,
2024, Artemis announced the evacuation order has been lifted and began an expedient,
staged return of employees and contractors to site. The mine site was not impacted by any
wildfires.
Platreef Project: On July 31, 2024, Ivanhoe Mines Ltd. (“Ivanhoe”) reported that construction
of Platreef’s Phase 1 concentrator was completed on schedule subsequent to the quarter .
Cold commissioning has started, with water being fed through the concentrator , and
construction of Platreef’s Shaft 2 headgear is approximately 60 % complete. Work is well
underway on the updated feasibility study to accelerate Platreef’s Phase 2 expansion, as well
as the preliminary economic assessment of the previously announced Phase 3 expansion.
Both studies are expected to be completed in the fourth quarter. 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 May 7, 2024 , B2Gold Corp. (“B2Gold”) announced the successful
completion of the 2024 winter ice road (“WIR”) campaign, delivering all necessary materials
to complete the construction of the Goose project. B2Gold reports that while mill construction
remains on schedul e, development of the open pit and underground is slightly behind
schedule due to equipment availability, adverse weather conditions and prioritization of
critical path construction activities. As a result, B2Gold reports that first gold pour is now
expected in the second quarter of 2025 with ramp up to full production in the third quarter of
2025, one quarter later than previous estimates.
Marmato Mine: On April 15, 2024, Aris Mining Corporation (“Aris”) provided an update on
the Marmato Lower Mine expansion project , including the completion of the access road to
the new processing facility area. Earthworks in the plant area will reportedly commence soon,
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and the contractor for the new portal and decline is fully mobilized and cutting of the portal
face has commenced. On May 14, 2024, Aris reported that most of the mechanical equipment
has been ordered and the access road has reached the portal level. On July 16 , 2024, Aris
further reported that the Lower Mine project is on track for first gold pour by the end of 2025,
followed by an approximate six-month ramp-up period.
Curipamba Project: On June 17, 2024, Adventus Mining Corporation (“Adventus”)
announced that the Ministry of Environment, Water and Energy Transition of the Government
of Ecuador has granted Administrative Authorization over Public Hydric Domain for the
Curipamba project. This key permit allows the Curipamba project to carry out planned
construction activities in accordance with the technical requirements stipulated in the Water
Resources Law. With this approval, Adventus noted that the last main step prior to the start
of construction is the receipt of the final document outlining the transition from the medium
scale exploration to exploitation phase.
On April 26, 2024, Adventus announced that Silvercorp Metals Inc. (“Silvercorp”) has entered
into a definitive arrangement agreement with Adventus pursuant to which Silvercorp has
agreed to acquire all of the issued and outstanding common shares of Adventus. As reported
by Silvercorp, the existing stream with Wheaton, combined with Silvercorp’s existing cash
and cash equivalents of approximately $200 million, is more than sufficient to fully fund the
Curipamba project through construction. On July 2, 2024, the Ontario Superior Court of
Justice granted a final order approving the arrangement. The acquisition closed on July 31,
2024.
On August 6, 2024, Silvercorp announced a key milestone that the Ministry of Energy and
Mines of the Government of Ecuador (“MEM”) has issued a Resolution of Change of Phase
for the Curipamba project. The Resolution of Change of Phase advances the legal status of
the project from the economic evaluation phase to the exploitation phase and allows for the
start of construction and subsequent operation of the mine. The Change of Phase for a
medium-scale project is equivalent to the Exploitation Agreement for l arge-scale mines in
Ecuador.
Marathon Project: On July 31, 2024, Generation Mining Limited (“Gen Mining”) reported that
the federal government has approved amendments to Schedule 2 of the Metal and Diamond
Mining Effluent Regulations (“Schedule 2”) which will allow for the construction of specific
water management structures and operation of key infrastructure for the Marathon Project.
Gen Mining also states that receipt of the few remaining provincial and federal approvals and
permits required for construction is expected in the coming months.
On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries
Act Authorization (“FAA”) for the Marathon project. The FAA, issued by Fisheries and Oceans
Canada, approves Gen Mining’s plan to avoid, mitigate and offset impacts t o fish and fish
habitat related to the development of the project. This authorization represents the final
federal approval required to commence construction of the tailings storage facility and water
management structures. The Marathon project requires three remaining provincial approvals
to be issued by the Ministry of the Environment, Conservation and Parks and the Ministry of
Natural Resources. These are expected in the coming months. Following which, the
Marathon project will have all of the key govern ment permits and approvals required for
construction.
Santo Domingo: On July 31, 2024, Capstone Copper Corp. (“Capstone”) published the
results of an updated feasibility study for the Santo Domingo project, outlining an optimized
mine plan, updated capital and operating cost estimates, and a 19-year mine life supported
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by higher mineral reserve estimates. The report indicates that total gold production is
expected to average 35,000 ounces per year for the first seven years of production, an
increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and
22,000 ounces per year for the life of mine, up fr om 17,000 ounces per year. Capstone has
reported that with construction completed at the Mantoverde project, a deposit situated 35
kilometers northeast of the Santo Domingo project, Capstone plans to advance several value
enhancement initiatives within the Mantoverde -Santo Domingo district that are not yet
included in the 2024 feasibility study. The first of these initiatives is a newly announced two-
year, $25 million exploration program at Mant overde, aimed at supporting the two future
processing centers between Mantoverde and Santo Domingo.
Curraghinalt Project: On May 3, 2024, the Planning Appeals Commission & Water Appeals
Commission (the “Commission”) in Northern Ireland concluded that the water abstraction and
impoundment licenses (“ Water Licenses”) relative to the Curraghinalt Project have been
rescinded and that license applications would need to be resubmitted and subsequent public
inquiry referrals held. The Commission noted that it has suspended arrangements for the
current inquiry timetable until it is in receipt of the expected Water License applications, at
which time it will move to set directions and new dates for the submission of statements of
case, rebuttals, and for the opening of the re-scheduled hearing sessions in due course.
Sustainability
Annual Sustainability Report & Climate Change Report
Wheaton published its fifth annual sustainability report on May 23, 2024, and its second
annual climate change report on June 24, 2024. The reports are part of Wheaton’s voluntary
suite of sustainability disclosures demonstrating the Company’s commitment to responsible
business practices and ESG performance.
ESG Ratings & Awards
On June 26, 2024, Wheaton was named as one of Corporate Knights' 2024 Best 50
Corporate Citizens in Canada ranking ninth on the list. With a significant portion of the score
linked to sustainable revenue, this metric underscores the exceptional quality of Wheaton's
mining partners and the Company’s rigorous due diligence process.
Community Investment Program
• Wheaton’s Partner Community Investment Program continues to support initiatives with
the Vale Foundation, Vale Canada, Glencore via Antamina, Hudbay Minerals, First
Majestic Silver and Sibanye -Stillwater to support the communities influenced by the
mines and provide vital services and programs including educational resources, health
and dental programs, poverty reduction initiatives, entrepreneurial opportunities, and
various social and environmental programs.
• Coast Mental Health Foundation’s Courage To Come Back Awards presented by
Wheaton raised over CA$1.7 million in support of community-based services for people
living with mental illness in British Columbia.
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000 to 370,000
ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 GEOs 3 of other
metals, resulting in annual production of approximately 550,000 to 620,000 GEOs 3,
unchanged from previous guidance2,3.
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Annual production is forecast to increase by approximately 40% to over 800,000 GEOs 3 by
2028, with average annual production forecast to grow to over 850,000 GEO 3 in years 2029
to 2033, also unchanged from previous guidance6.
About Wheaton Precious Metals Corp.
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 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.
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 Thursday, August 8, 2024, starting at 5:00am PT (8:00 am
ET) to discuss these results. To participate in the live call please use one of the following
methods:
RapidConnect URL: Click here
Live webcast: Click here
Dial toll free: 1-888-664-6383 or 1-416-764-8650
Conference Call ID: 94107872
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until August 15, 2024 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: 107872 #
Archived webcast: Click here
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 Nati onal
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 min eral reserve
estimates).