THIRD QUARTER 2021 FINANCIAL RESULTS WHEATON PRECIOUS METALS ANNOUNCES RECORD REVENUE, EARNINGS AND CASH FLOW FOR THE FIRST NINE MONTHS OF 2021 “Wheaton's diversified portfolio of high-quality, long-life assets continues to deliver strong results
November 4, 2021 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Designated News Release
THIRD QUARTER 2021 FINANCIAL RESULTS
WHEATON PRECIOUS METALS ANNOUNCES RECORD REVENUE, EARNINGS
AND CASH FLOW FOR THE FIRST NINE MONTHS OF 2021
“Wheaton's diversified portfolio of high-quality, long-life assets continues to deliver strong results,
including record revenue, earnings and cash flow in the first nine months of 2021. In addition, the
Company declared a dividend of $0.15 per common share, a 25% increase relative to the prior
year,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals.
“Strong year to date production, particularly driven by silver, has led the Company to narrow its
annual guida nce to 735,000 to 7 65,000 gold equivalent ounces, consistent with the previous
midpoint of guidance.”
Third Quarter 2021 Highlights:
• Over $200 million in operating cash flow during the third quarter and a record $650 million
in the first nine months of 2021.
• $269 million in revenue during the third quarter and a record $923 million in the first nine
months of 2021.
• $137 million in adjusted net earnings during the third quarter and a record $460 milli on in
the first nine months of 2021.
• Signed a non-binding term sheet with Rio2 Limited to enter into a precious metals purchase
agreement in connection with the Fenix Gold project located in Chile.
• Strong financial position with approximately $372 million in cash on hand and $2 billion of
additional capacity through the revolving credit facility as of September 30, 2021.
• Declared quarterly dividend1 of $0.15 per common share.
Operational Overview
(all figures in US dollars unless otherwise noted) Q3 2021 Q3 2020 Change
Units produced
Gold ounces 85,941 90,500 (5.0)%
Silver ounces 6,394 6,028 6.1 %
Palladium ounces 5,105 5,444 (6.2)%
Cobalt pounds 370,522 - n.a.
Gold equivalent ounces 2 184,918 181,184 2.1 %
Units sold
Gold ounces 67,649 90,101 (24.9)%
Silver ounces 5,487 4,999 9.8 %
Palladium ounces 5,703 5,546 2.8 %
Cobalt pounds 131,174 - n.a.
Gold equivalent ounces 2 152,432 166,611 (8.5)%
Revenue $ 268,957 $ 307,268 (12.5)%
Net earnings $ 134,937 $ 149,875 (10.0)%
Per share $ 0.300 $ 0.334 (10.2)%
Adjusted net earnings 1 $ 137,087 $ 152,007 (9.8)%
Per share 1 $ 0.304 $ 0.338 (10.1)%
Operating cash flows $ 201,287 $ 228,099 (11.8)%
Per share 1 $ 0.447 $ 0.508 (12.0)%
All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, per ounce/pound amounts & per share amounts.12
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Reiterating Gold Equivalent Production Guidance
Wheaton's estimated attributable production in 2021 is now forecast to be approximately 735,000
to 765,000 gold equivalent ounces2 (“GEOs”) in line with previous guidance of 720,000 to 780,000
GEOs. However, given strong performances at Peñasquito, Antamina and Voisey’s Bay, coupled
with production being lower than expected at Salobo, Wheaton is adjusting the production mix by
metal as per the table below . Longer term guidance remains unchanged at an average
production of 810,000 GEOs for the five-year period ending 2025 and 830,000 GEOs for the ten-
year period ending in 20303.
Updated Guidance Original Guidance
Gold Ounces 330,000 to 345,000 370,000 to 400,000
Silver Ounces (‘000s) 25,500 to 26,500 22,500 to 24,000
Other Metals2 (GEOs) 45,000 to 55,000 40,000 to 45,000
Total GEOs2 735,000 to 765,000 720,000 to 780,000
Corporate Development
Fenix Gold Project: On July 20, 2021, the Company signed a non-binding term sheet with Rio2
Limited (“Rio2”) to enter into a precious metals purchase agreement (“PMPA”) in connection with
the Fenix Gold project locat ed in Chile. Under the terms of the proposed Fenix PMPA, the
Company will acquire 6% of the gold production until 90,000 ounces have been delivered and 4%
of the gold production until 140,000 ounces have been delivered, after which the stream drops to
3.5% for the life of mine. In addition, under the proposed Fenix PMPA, the Company will pay a
total upfront cash consideration of $50 million, $25 million of which is payable upon closing,
subject to certain conditions, and $25 million payable subject to Rio2’s receipt of its Environmental
Impact Assessment for the Fenix Gold project, and certain other conditions. In addition, the
Company will make ongoing delivery payments equal to approximately 18% of the spot price until
the value of gold delivered less the production payment is equal to the upfront consideration of
$50 million, at which point the production payment will increase to 22% of the spot gold price. The
entering into of the Fenix PMPA is subject to, among other matters, the negotiation and
completion of definitive documentation.
Financial Review
Revenues
Revenue was $269 million in the third quarter of 2021 representing a 12% decrease from the third
quarter of 2020 due primarily to a 9% decrease in the number of gold equivalent² ounces sold,
primarily the result of a large build-up of payable ounces produced but not yet delivered (“PBND”)
at Salobo; and a 4% decrease in the average realized gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2021 were $410 per gold equivalent² ounce as
compared to $421 in third quarter of 2020. This resulted in a cash operating margin¹ of $1,354
per gold equivalent² ounce sold, a decrease of 5% as compared with the third quarter of 2020.
Balance Sheet (at September 30, 2021)
• Approximately $372 million of cash on hand.
• The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully repaid.
Third Quarter Asset Highlights
Salobo: In the third quarter of 2021, Salobo produced 55,200 ounces of attributable gold, a
decrease of approximately 13% relative to the third quarter of 2020 due to lower throughput and
grade. On October 22, 2021, Vale S.A. (“Vale”) announced th e resumption of conveyor belt
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operations at Salobo, that was halted for 18 days due to a fire. Other activities, including mine and
maintenance operations, continued as usual during this period but concentrate production was
interrupted. Concentrate production resumed on October 22, 2021 and ramped up over a three
day period. Vale further reports tha t physical completion of the Salobo III mine expansion was
81% at the end of the third quarter and is on track for start-up in the second half of 2022.
Peñasquito: In the third quarter of 2021, Peñasquito produced 2.2 million ounces of attributable
silver, an increase of approximately 9% relative to the third quarter of 2020 , with throughput,
grades and recoveries all being higher.
Antamina: In the third quarter of 2021, Antamina produced 1.5 million ounces of attributable
silver, an increase of approximately 2% relative to the third quarter of 2020, primarily due to higher
recoveries. Subsequent to the quarter, as per Compañía Minera Antamina S.A.’s (the operating
company of Antamina) news release dated October 31, 2021, operations at Antamina have been
temporarily suspended to ensure the health and safety of its workforce and other stakeholders
following recent protests in Peru.
Constancia: In the third quarter of 2021, Constancia produced 0.5 million ounces of attributable
silver and 8,500 ounces of attributable gold, an increase of approximately 21% and 126%,
respectively, relative to the third quarter of 2020. Silver production was higher primarily as a result
of higher grades. The increase in gold production was primarily due to higher grades resulting
from the commencement of ore production from the Pampacancha satellite deposit and the
increase in fixed recoveries from 55% to 70%, partially offset by the receipt of 2,005 ounces in the
third quarter of 2020 r elated to delays in accessing the Pampacancha deposit while no delay
payment was received in 2021.
Sudbury: In the third quarter of 2021, Vale’s Sudbury mines produced 500 ounces of attributable
gold, a decrease of approximately 88% relative to the third quarter of 2020, which was primarily
due to lower throughput, as operations at the mine were suspended due to a labour dispute, which
lasted from June 1, 2021 to August 9, 2021. Vale announced on August 3, 2021 that a new five -
year collective bargaining a greement had been ratified with mine workers. The Sudbury PMPA
had an effective date of February 28, 2013 with a term of 20 years. Under the provisions of the
Sudbury PMPA, should the facilities at Sudbury be shut down for 60 or more cumulative days,
exclusive of scheduled maintenance or shutdowns for periods of 20 days or less, the term of the
Sudbury PMPA shall be extended for the same duration. As a result, the term of the agreement
was extended by 69 days.
Stillwater: In the third quarter of 2021, the Stillwater mines produced 2,900 ounces of attributable
gold and 5,100 ounces of attributable palladium, a decrease of approximately 7% for gold and 6%
for palladium relative to the third quarter of 2020 due to lower grades.
San Dimas: In the third quarter of 2021, San Dimas produced 11,900 ounces of attributable gold,
an increase of approximately 29% relative to the third quarter of 2020 , primarily due to higher
throughput coupled with the impact of changing the silver to gold conversion ratio from 70:1 to
90:1 from April 1, 2020 to October 15, 2020, at which time it reverted to 70:1.
Voisey’s Bay: In the third quarter of 2021, the Voise y's Bay mine produced 371,000 pounds of
attributable cobalt. As at the end of the third quarter 2021, approximately 488,000 pounds of
cobalt were held in inventory by Wheaton and 638,000 pounds were produced but not yet
delivered. As per Vale’s Third Quarter 2021 Performance Report, physical completion of the
Voisey’s Bay underground mine extension, which includes developing two underground mines -
Reid Brook and Eastern Deeps - was 70% at the end of the third quarter.
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Rosemont: Hudbay announced on September 22, 2021, the intersection of additional high-
grade copper sulphide and oxide mineralization on its wholly-owned patented mining claims
located within close proximity of its Rosemont copper project in Arizona (“Copper World”). To
date, seven deposits have been identified at Copper World with a combined strike length of over
seven kilometres. As of June 30, 2021, approximately 166 holes were completed totaling over
91,000 feet of drilling. Hudbay expects to publish an initial inferred mineral resource estimate for
Copper World before the end of 2021, and these mineral resource estimates will form the basis
for a preliminary economic assessment (“PEA”) expected to be released by Hudbay in the first
half of 2022. The Copper World discovery is included in Wheaton's area of interest under the
PMPA.
Produced But Not Yet Delivered4
As at September 30, 2021, payable ounces and pounds attributable to the Company produced
but not yet delivered amounted to:
• 81,200 payable gold ounces, an increase of 15,000 ounces during Q3 2021 , primarily due
to an increase during the period at the Salobo mine.
• 4.1 million payable silver ounces, virtually unchanged during Q3 2021, as decreases during
the period at the Peñasquito mine were offset by an increase at the Yauliyacu mine.
• 5,600 payable palladium ounces, a decrease of 1,200 ounces during Q3 2021.
• 638,000 payable cobalt pounds, a decrease of 139,300 pounds during Q3 2021.
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.
Sustainability
COVID-19 Community Support and Response Fund: In the second quarter of 2020, Wheaton
announced the launch of a $5 million Community Support and Response Fund (the “CSR Fund”)
to support global efforts to combat the social and economic impact of the COVID-19 pandemic.
The CSR Fund is designed to meet the immediat e needs of the communities in which Wheaton
and its mining partners operate. This fund is incremental to Wheaton's already active Community
Investment Program that currently provides support to over 50 programs in multiple communities
around the world. As of September 30, 2021, the Company has made donations totaling
approximately $4 million through the CSR Fund.
ESG Ratings: Following recent rating updates, Wheaton’s Sustainalytics5 score further improved
from 9.2 to 7.9 indicating reduced risk exposure and maintained its AA rating from MSCI 5
demonstrating Wheaton’s continued leadership in ESG practices. Wheaton is currently ranked in
the Global Top 50 out of more than 14,000 companies and #1 for precious metals out of 122
companies by Sustainalytics5.
Partner CSR Program: Wheaton continues to support a wide range of programs with mining
partners including Vale, Glencore, Hudbay and First Majestic Silver focused on education, health,
entrepreneurial support, and community engagement opportunities in the communities near the
mines from which Wheaton receives precious metals. In the third quarter of 2021, a solar panel
installation project was completed at a Knowledge Station run by the Vale Foundation in the
community of Marabá, Brazil.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, November 5, 2021 starting at 8:00am PT /
11:00 am ET to discuss these results. To participate in the live call please use one of the following
methods:
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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: 61024959
Live audio webcast: Webcast URL
Participants should dial in five to ten minutes before the call.
The accompanying slideshow will also be available in PDF format on the ‘Presentations’ page of
the Wheaton Precious Metals website before the conference call.
The conference call will be recorded and available until November 12, 2021 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: 024959#
Archived audio webcast: Webcast URL
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, is a “qualified person” as such term
is defined under National Instrument 43 -101 and ha s reviewed and approved the technical
information disclosed in this news release.
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.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world’s premier precious metals streaming company with the highest -quality
portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage
and exploration upside but with a much lower risk profile than a traditional mining company.
Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it
to pay a competitive dividend and continue to grow through accretive acquisitions. As a result,
Wheaton has consistently outperformed gold and silver, as well 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 2021 is forecast to be 330,000 to 345,000 ounces
of gold, 25.5 to 26.5 million ounces of silver, and 45,000 to 55,000 GEOs of other metals, resulting
in production of approximately 735,000 to 765,000 GEOs, in line with previous guidance. For the
five-year period ending in 2025, the Company estimates that average production will amount to
810,000 GEOs3. For the ten -year period ending in 2030, the Company estimates that average
annual production will amount to 830,000 GEOs3.
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.
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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.
2 Commodity price assumptions for the gold equivalent production and sales in 2021 and long-term forecasts are
$1,800 / ounce gold, $25 / ounce silver, and $2,300 / ounce palladium and $17.75 / pound cobalt. Other metal
includes palladium and cobalt.
3 Gold equivalent guidance based on the commodity prices outlined in note 2 above. Five- and ten-year guidance do
not include optionality production from Pascua Lama, Navidad, Cotabambas, or additional expansions at Salobo
outside of project currently in construction. In addition, five-year guidance also does not include any production from
Rosemont, Toroparu, Kutcho, or the Victor project at Sudbury.
4 Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on
management estimates only and rely upon information provided by the owners and operators of mining operations
and may be revised and updated in future periods as additional information is received.
5 Rating current as of October 7, 2021, for Sustainalytics and as of September 23, 2021, for MSCI.
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Condensed Interim Consolidated Statements of Earnings
Three Months Ended
September 30
Nine Months Ended
September 30
(US dollars and shares in thousands, except per
share amounts - unaudited) 2021 2020 2021 2020
Sales $ 268,957 $ 307,268 $ 923,468 $ 810,012
Cost of sales
Cost of sales, excluding depletion $ 62,529 $ 70,119 $ 219,757 $ 202,238
Depletion 54,976 60,601 195,458 184,104
Total cost of sales $ 117,505 $ 130,720 $ 415,215 $ 386,342
Gross margin $ 151,452 $ 176,548 $ 508,253 $ 423,670
General and administrative expenses 13,595 21,326 44,030 56,307
Earnings from operations $ 137,857 $ 155,222 $ 464,223 $ 367,363
Other (income) expense 1,108 2,624 (2,194) (1,340)
Earnings before finance costs and income taxes $ 136,749 $ 152,598 $ 466,417 $ 368,703
Finance costs 1,379 2,766 4,309 14,519
Earnings before income taxes $ 135,370 $ 149,832 $ 462,108 $ 354,184
Income tax (expense) recovery (433) 43 955 (3,601)
Net earnings $ 134,937 $ 149,875 $ 463,063 $ 350,583
Basic earnings per share $ 0.300 $ 0.334 $ 1.029 $ 0.782
Diluted earnings per share $ 0.299 $ 0.332 $ 1.026 $ 0.779
Weighted average number of shares
outstanding
Basic 450,326 449,125 449,977 448,484
Diluted 451,717 451,999 451,369 449,892
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Condensed Interim Consolidated Balance Sheets
As at
September 30
As at
December 31
(US dollars in thousands - unaudited) 2021 2020
Assets
Current assets
Cash and cash equivalents $ 372,450 $ 192,683
Accounts receivable 10,392 5,883
Other 9,874 3,265
Total current assets $ 392,716 $ 201,831
Non-current assets
Mineral stream interests $ 5,505,663 $ 5,488,391
Early deposit mineral stream interests 34,741 33,241
Mineral royalty interest 6,606 3,047
Long-term equity investments 71,741 199,878
Convertible notes receivable 15,489 11,353
Property, plant and equipment 5,790 6,289
Other 13,994 13,242
Total non-current assets $ 5,654,024 $ 5,755,441
Total assets $ 6,046,740 $ 5,957,272
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 14,514 $ 13,023
Current portion of performance share units 13,348 17,297
Current portion of lease liabilities 801 773
Other 154 76
Total current liabilities $ 28,817 $ 31,169
Non-current liabilities
Bank debt $ - $ 195,000
Lease liabilities 2,258 2,864
Deferred income taxes 276 214
Performance share units 8,667 11,784
Pension liability 2,369 1,670
Total non-current liabilities $ 13,570 $ 211,532
Total liabilities $ 42,387 $ 242,701
Shareholders' equity
Issued capital $ 3,685,032 $ 3,646,291
Reserves 50,769 126,882
Retained earnings 2,268,552 1,941,398
Total shareholders' equity $ 6,004,353 $ 5,714,571
Total liabilities and shareholders' equity $ 6,046,740 $ 5,957,272