THIRD QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Solid Third Quarter Results for 2023
November 9, 2023
Vancouver, British Columbia
Designated News Release
THIRD QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Solid Third Quarter Results for 2023
“The importance of having a diversified portfolio of high-quality, low-cost assets was evidenced
by Wheaton’s ability to deliver solid operating results in the quarter, despite the temporary
suspension of one of our largest assets, which has since begun the safe ramp-up of operations.
Strong outperformances from Salobo and Constancia, have not only offset challenges faced by
others, but also contributed significantly to our overall success . As such, we are pleased to
reiterate our annual production guidance range for 2023 of 600,000 t o 660,000 gold equivalent
ounces,” said Randy Smallwood, President and Chief Executive Office r of Wheaton Precious
Metals. “In this high interest rate environment, streaming continues to be one of the most
competitive sources of capital, and our corporate development team remains exceptionally busy
evaluating new opportunities. We remain resolutely committed to enhancing our p ortfolio with
growth that is accretive and sustainable, benefiting all stakeholders.”
Solid Financial Results and Strong Balance Sheet
• Third quarter of 2023: $223 million in revenue, $171 million in operating cash flow, $116 million
in net earnings and $121 million in adjusted net earnings1.
• A cash balance of $8 34 million and no debt as at September 30, 2023, after making total
upfront cash payments of $90 million relative to mineral stream interests in the quarter.
• Undrawn $2 billion revolving credit facility maturing on June 22, 2028.
• Declared a quarterly dividend1 of $0.15 per common share.
High Quality Asset Base
• Streaming agreements on 18 operating mines and 14 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.
• Third quarter production increased quarter over quarter to 154,800 gold equivalent ounces 3
("GEOs"), driven by strong outperformances at both Salobo and Constancia, and despite the
temporary suspension at Peñasquito, highlighting the strength of our diversified portfolio.
• Average annual production guidance for 2023 of 600,000 to 660,000 GEOs2,3 is maintained,
with sector-leading growth over the next five to ten years.
• Accretive portfolio growth:
o Subsequent to the quarter, 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 Acquired a 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide
Gold Project for total cash consideration of $3.6 million, along with an equity investment
totalling $5 million in Liberty Gold at C$0.34 per share.
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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.
• Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and
runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing’s Corporate
ESG Awards.
Operational Overview
(all figures in US dollars unless otherwise
noted) Q3 2023 Q3 2022 Change YTD 2023 YTD 2022 Change
Units produced
Gold ounces 105,436 72,078 46.3 % 261,635 216,574 20.8 %
Silver ounces 3,363 5,822 (42.2)% 12,876 18,497 (30.4)%
Palladium ounces 4,006 3,229 24.1 % 11,591 11,616 (0.2)%
Cobalt pounds 183 226 (19.1)% 458 596 (23.1)%
Gold equivalent ounces 3 154,800 153,025 1.2 % 444,597 473,868 (6.2)%
Units sold
Gold ounces 74,426 62,000 20.0 % 212,325 224,238 (5.3)%
Silver ounces 2,965 5,234 (43.4)% 11,151 16,635 (33.0)%
Palladium ounces 4,242 4,227 0.4 % 10,580 11,680 (9.4)%
Cobalt pounds 198 115 72.2 % 786 851 (7.6)%
Gold equivalent ounces 3 119,030 135,179 (11.9)% 375,248 460,026 (18.4)%
Change in PBND and Inventory
Gold equivalent ounces 3 22,438 4,460 (17,978) 27,248 (32,368) (59,616)
Revenue $ 223,137 $ 218,836 2.0 % $ 702,573 $ 829,002 (15.3)%
Net earnings $ 116,371 $ 196,460 (40.8)% $ 369,209 $ 503,001 (26.6)%
Per share $ 0.257 $ 0.435 (40.9)% $ 0.815 $ 1.114 (26.8)%
Adjusted net earnings 1 $ 121,467 $ 93,878 29.4 % $ 368,481 $ 401,168 (8.1)%
Per share 1 $ 0.268 $ 0.208 28.8 % $ 0.814 $ 0.889 (8.4)%
Operating cash flows $ 171,103 $ 154,497 10.7 % $ 508,584 $ 571,396 (11.0)%
Per share 1 $ 0.378 $ 0.342 10.5 % $ 1.123 $ 1.266 (11.3)%
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Financial Review
Revenues
Revenue in the third quarter of 2023 was $223 million (65% gold, 32% silver, 2% palladium and
1% cobalt), with the $4 million increase relative to the prior period quarter being primarily due to
a 16% increase in realized commodity prices, partially offset by lower sales volumes.
Revenue was $703 million in the nine months ended September 30, 2023, representing a $126
million decrease from the comparable period of the previous year due primarily to an 18%
decrease in the number of GEOs³ sold, resulting from lower production and rel ative changes in
the GEOs³ produced but not yet delivered; partially offset by a 4% increase in the average realized
gold equivalent³ price.
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Cash Costs and Margin
Average cash costs¹ in the third quarter of 2023 were $418 per GEO³ as compared to $451 in the
third quarter of 2022. This resulted in a cash operating margin¹ of $1,457 per GEO³ sold, an
increase of 25% as compared with the third quarter of 2022 , a result of the higher realized price
per ounce.
Average cash costs¹ for the nine months ended September 30, 2023 were $427 per GEO³ as
compared to $448 in the comparable period of the previous year. This resulted in a cash operating
margin¹ of $1,445 per GEO³ sold, a 7% increase from the comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the third quarter of 2023 amounted to $171 million, with the $17 million
increase due primarily to the higher realized price per GEO sold coupled with higher amounts of
interest received in the third quarter of 2023.
Operating cash flows for the nine months ended September 30, 2023 amounted to $509 million,
with the $63 million decrease from the comparable period of the previous year being due primarily
to lower sales volumes, partially offset by higher amounts of interest received during the current
year.
Balance Sheet (at September 30, 2023)
• Approximately $834 million of cash on hand
• During the third quarter of 2023, the Company made total upfront cash payments of $90 million
relative to the mineral stream interests consisting of
- $70 million payment relative to the Blackwater Silver precious metals purchase
agreement (“PMPA”); and
- a $20 million payment relative to the expansion of the Blackwater Gold 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.
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2023, Salobo produced 69,000 ounces of attributable gold, an
increase of approximately 56% relative to the third quarter of 2022, driven by higher throughput,
with production from the third concentrator line commencing at the end of 2022, and higher
recoveries. The prior year was also affected by planned and corrective maintenance being
performed. In the third quarter of 2023, Salobo reached its highest production level since the
fourth quarter of 2019 as the ramp-up of the Salobo III expansion continues to advance. Salobo
is expected to reach a throughput capacity of 32 Mtpa in the fourth quarter of 2023 and full
throughput capacity by the end of 2024.
Antamina: In the third quarter of 2023, Antamina produced 0.9 million ounces of attributable
silver, a decrease of approximately 35% relative to the third quarter of 2022, primarily due to lower
grades as per the mine plan.
Peñasquito: In the third quarter of 2023, Peñasquito had no production resulting from a
suspension of operations at the mine which began on June 7, 2023 due to a labour dispute . On
October 13, 2023, Newmont Corporation (“Newmont”) reached a definitive agreement to end the
strike and has since begun the safe ramp -up of operations . Newmont expects to reach full
operating capacity by the end of the fourth quarter.
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Constancia: In the third quarter of 2023, Constancia produced 0.7 million ounces of attributable
silver and 19,000 ounces of attributable gold, an increase of approximately 24% and 164%,
respectively, relative to the third quarter of 2022. Record quarterly gold production combined with
strong silver production are a result of significantly higher grades from mining the high -grade
zones of the Pampacancha deposit, higher recoveries and higher throughput. As per Hudbay
Minerals Inc. (“Hudbay”), production is expected to continue to benefit from higher grades in the
fourth quarter of 2023.
Sudbury: In the third quarter of 2023, Vale’s Sudbury mines produced 4,300 ounces of
attributable gold, an increase of approximately 24% relative to the third quarter of 2022 , due to
higher grades which as per Vale, w ere partially offset by the annual planned maintenance
activities at the Sudbury and Thompson mines and mills, as well as additional maintenance at the
Sudbury refinery in the third quarter.
Stillwater: In the third quarter of 2023, the Stillwater mines produced 2,500 ounces of attributable
gold and 4,000 ounces of attributable palladium, an increase of approximately 34% for gold and
24% for palladium relative to the third quarter of 2022, due primarily to the impact on production
resulting from regional flooding that occurred in the second quarter of 2022.
San Dimas: In the third quarter of 2023, San Dimas produced 10,000 ounces of attributable gold,
a decrease of approximately 15% relative to the third quarter of 2022 , primarily due to lower
grades, partially offset by higher throughput.
Voisey’s Bay: In the third quarter of 2023, the Voisey's Bay mine produced 183,000 pounds of
attributable cobalt, a decrease of approximately 19% relative to the third quarter of 2022, primarily
due to mining lower grade material during the ongoing transitional period between the depletion
of the Ovoid open-pit mine and ramp-up to full production of the Voisey’s Bay underground project.
Production in the third quarter was also impacted as a result of maintenance at the Long Harbour
Refinery. Vale reports that physical completion of the Voisey’s Bay underground mine extension
was 88% at the end of the third quarter, with Reid Brook ’s bulk material handling system near
mechanical completion, and the commissioning of sub -systems currently taking place. 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 continuing its scheduled production
ramp-up.
Other Gold: In the third quarter of 2023, total Other Gold attributable production was 700 ounces,
a decrease of approximately 81% relative to the third quarter of 2022, primarily due to the closure
of the Minto mine in May 2023.
Other Silver: In the third quarter of 2023, total Other Silver attributable production was 1.8 million
ounces, a decrease of approximately 6% relative to the third quarter of 2022, primarily due to the
termination of the Yauliyacu PMPA.
Aljustrel: On September 12, 2023, it was announced that as a result of low zinc prices, the
production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023
until the second quarter of 2025.
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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.
Third Quarter Development Asset Highlights
Blackwater Project : On July 4, 2023, Artemis announce d receipt of the Fisheries Act
Authorization for development of the Blackwater Project, 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 . On October 24, 2023, Artemis
announced that overall construction at the Blackwater mine was 45% complete as of September
30, 2023. Project development continues to advance on the schedule, targeting first gold pour in
the second half of 2024.
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 permits the development of the Marmato
Lower Mine.
Marathon Project: On August 30, 2023, Generation Mining Limited (“Gen Mining”) received the
Endangered Species Act permit issued by the Ministry of the Environment, Conservation and
Parks. This permit includes conditions intended to minimize impacts to caribou and SAR bats, as
well as to create an overall benefit for these species at risk. Additionally, in September 2023, Gen
Mining received the Environmental Compliance Approval issued by the Ministry of Environment,
Conservations and Parks for air and noise emissions for the Marathon Project, and on November
7, 2023, announced that the province of Ontario had accepted and filed the Closure Plan,
representing another major milestone in the permitting process. Additional permits and approvals
are expected to be received during the balance of 2023.
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, the Company has now incorporated gold
in the mineral reserves and mineral resources statement on our website.
Curipamba Project: On September 11, 2023, Adventus provided an update that the
Constitutional Court of Ecuador declared that processing of an unconstitutionality claim filed by
the indigenous group CONAIE and other complainants against Presidential Decree 754 that
regulates environmental consultation for all public and private industries and sectors in Ecuador
was a priority and set a public hearing for September 18, 2023. Adventus has indicated that
historically the Court can be expected to issue a resolut ion within two to three months following
the public hearing commencement.
On October 2, 2023, Adventus announced that the El Domo – Curipamba project has been issued
a favourable Certificate of No Affect of Water by the Ministry of Environment and Water of the
Government of Ecuador. This certificate and milestone allow the planned and designed projected
infrastructure construction in an area with the presence of surface and ground water sources.
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Goose Project: On September 18, 2023, B2Gold provided a construction update on the Goose
Project highlighting that the purchasing of materials and supplies needed to support the 2024
construction campaign has been completed and all materials have been provided to the ports for
the 2023 sealift. Additionally, B2Gold reported that it remains on track to pour first gold in the first
quarter of 2025, and that concrete and steel work in the mill area are progressing ahead of
schedule.
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.
Corporate Development
Black Pine Project
On September 10, 2023, the Company acquired a new 0.5% Net Smelter Royalty (“NSR”) from
Liberty Gold Corp., (“Liberty Gold”) on the Black Pine Oxide Gold Project (“Black Pine”) for total
cash consideration of $4 million. Liberty Gold has been granted an option to repurch ase 50% of
the NSR for $4 million at any point in time up to the earlier of commercial production at Black Pine
or January 1, 2030. The Company has been granted a Right of First Refusal on all royalties,
streams or pre -pays that include prec ious metals pertaining to Black Pine. In addition, the
Company made an equity investment of $5 million in Liberty Gold at C$0.34 per share.
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 (the “Project” or “Mineral Park”). Under the Mineral Park PMPA, Wheaton
will purchase 100% of the payable silver from Mineral Park for the life of the mine. Under the
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 secu red 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.
Sustainability
Ratings & Awards:
• In the third quart er of 2023, Wheaton was recognized as Best Company for ESG &
Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large
Cap) by ESG Investing’s Corporate ESG Awards.
Community Investment Program:
• In the third quarter of 2023, t he Tour De Cure Presented by Wheaton attracted over 1,500
riders and raised more than $7.1 million for the BC Cancer Foundation.
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• In the third quarter of 2023, a number of new programs were established with First Majestic
Silver. These include support for the operation of a community centre, improvements to a solid
waste storage facility and the implementation of a recycling program, as well as the
implementation and operation of wastewater treatment facilities in the community of Tayoltita.
In addition, Wheaton also committed to assisting First Majestic Silver in providing internet
access for several remote communities close to the mine.
Management Update
Wheaton announces management changes effective October 1, 2023, including the creation of a
Chief Sustainability Officer position as well as Vice President appointments. Patrick Drouin,
Wheaton’s former Senior Vice President of Sustainability and Investor Relations, has been
appointed President of Wheaton International, succeeding Nik Tatarkin who although retiring from
management, will remain on the Board of Wheaton International . Mr. Drouin will continue to
oversee the Company’s ESG practices and performa nce at the executive level as President of
Wheaton International and Chief Sustainability Officer.
Emma Murray has been appointed Vice President, Investor Relations, effective October 1, 2023,
and will be primarily responsible for liaising with the investment community and ensuring the
market is well -informed about Wheaton’s strategic vision, financial performance and growth
prospects.
Simona Antolak has been appointed Vice President, Communications and Corporate Affairs, with
responsibility over external and internal communications as well as sustainability matters.
These changes further strengthen Wheaton’s global management team.
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 2023 is forecast to be approximately 600,000 to
660,000 GEOs, unchanged from previous guidance 2,3. Due to the temporary suspension of the
Peñasquito mine from June 7, 2023 to October 1 3, 2023, Wheaton now expects its full -year
production to have a higher weighting toward gold. The Company has previously estimated that
average annual production for the five -year period ending in 2027 would amount to 810,000
GEOs, while for the ten-year period ending in 2032, the Company estimated that average annual
production would amount to 850,000 GEOs. The Company will provide updated longer -term
guidance in normal course in the first quarter of 2024, which will incorporate the impact of recent
developments and acquisitions2,3.
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
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Webcast and Conference Call Details
A conference call will be held on Friday, November 10, 2023, starting at 11:00 am ET (8:00 am
PT) to discuss these results. To participate in the live call, please use one of the following methods:
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: 35621453
Live webcast: Webcast URL
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 17, 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: 621453 #
Archived 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.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.
For further information:
Investor Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: [email protected]
Media Contact
Simona Antolak
Vice President, Communications & Corporate Affairs
Tel: 604-639-9870
Email: [email protected]