THIRD QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Third Quarter 2024 Results and Record Quarterly Operating Cash Flow
November 7, 2024
Vancouver, British Columbia
Designated News Release
THIRD QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Third Quarter 2024 Results
and Record Quarterly Operating Cash Flow
“Wheaton achieved record cash flow from operations in the third quarter of 2024,
underscoring the effectiveness of our business model in leveraging rising commodity prices,
with our cash operating margins increasing by over 30% relative to the third quarter of 2023.
Our portfolio of operating assets delivered solid production levels, continuing to support our
annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces,”
said Randy Smallwood, President and CEO of Wheaton Precious Metals. “Shortly following
the quarter, Wheaton announced two accretive, precious metals streaming agreements,
including a new stream on Montage’s Koné Project and an amendment to the existing stream
on Rio2’s Fenix Project. Together, these transactions further diversify our strategic
partnerships and the geography of our portfolio. Once ramped -up, the Koné Project is
forecast to contribute meaningful near -term production, reinf orcing Wheaton’s already
prominent position as a leader in the sector’s growth landscape.”
Solid Financial Results and Strong Balance Sheet
• Third quarter of 2024: $308 million in revenue, $254 million in operating cash flow, $155
million in net earnings and $153 million in adjusted net earnings1, and declared a quarterly
dividend1 of $0.155 per common share.
• Balance Sheet: cash balance of $694 million, no debt, and an undrawn $2 billion revolving
credit facility as at September 30, 2024 after making total upfront cash payments of $30
million relative to mineral stream and royalty interests in the quarter.
High Quality Asset Base
• Streaming and royalty agreements on 18 operating mines and 28 development projects5,
including the addition of the Koné project announced subsequent to the quarter.
• 93% of attributable production from assets in the lowest half of their respective cost
curves2,4.
• Attributable gold equivalent production3 (“GEOs”) of 144,200 ounces in the third quarter
of 2024 and 448,400 for the first nine months of 2024, with quarterly production consistent
with the comparable period of the prior year, as lower production from Salobo and
Constancia was largely offset by higher production from Peñasquito.
• Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs 3
maintained, with forecasted sector-leading growth to 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, and Mineral Park projects, all of which are expected to be
producing within the next 12 months.
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• Subsequent to the quarter, the Company announced two accretive precious metals
streaming agreements:
o On October 23, 2024, the Company entered into a precious metals purchase
agreement (“PMPA”) with Montage Gold Corp. in respect to the Koné Gold Project
located in Côte d’Ivoire.
o On October 21, 2024, the Company amended the Fenix PMPA, increasing the
amount of attributable gold it is entitled to under the contract.
Leadership in Sustainability
• Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI,
and Prime rated by ISS.
• Launch of inaugural Future of Mining Challenge, which will award US$1 million to a
winning venture to advance their technology aimed at minimizing environmental
impacts, improving efficiencies, and contributing to climate solutions, while ensuring
key resources are responsibly available for future generations.
Operational Overview
(all figures in US dollars unless otherwise
noted) Q3 2024 Q3 2023 Change YTD 2024 YTD 2023 Change
Units produced
Gold ounces 87,199 105,027 (17.0)% 262,698 261,226 0.6 %
Silver ounces 4,554 3,397 34.1 % 15,083 12,985 16.2 %
Palladium ounces 4,034 4,006 0.7 % 12,835 11,591 10.7 %
Cobalt pounds 397 183 117.6 % 896 458 95.5 %
Gold equivalent ounces 3 144,164 147,278 (2.1)% 448,388 419,330 6.9 %
Units sold
Gold ounces 75,694 74,426 1.7 % 245,039 212,325 15.4 %
Silver ounces 3,875 2,965 30.7 % 11,765 11,151 5.5 %
Palladium ounces 3,761 4,242 (11.3)% 12,836 10,580 21.3 %
Cobalt pounds 88 198 (55.6)% 485 786 (38.3)%
Gold equivalent ounces 3 122,715 111,935 9.6 % 389,907 350,961 11.1 %
Change in PBND and Inventory
Gold equivalent ounces 3 9,267 21,869 12,602 17,989 20,020 2,031
Revenue $ 308,253 $ 223,137 38.1 % $ 904,123 $ 702,573 28.7 %
Net earnings $ 154,635 $ 116,371 32.9 % $ 440,993 $ 369,209 19.4 %
Per share $ 0.341 $ 0.257 32.7 % $ 0.973 $ 0.815 19.4 %
Adjusted net earnings 1 $ 152,803 $ 121,467 25.8 % $ 441,201 $ 368,481 19.7 %
Per share 1 $ 0.337 $ 0.268 25.7 % $ 0.973 $ 0.814 19.5 %
Operating cash flows $ 254,337 $ 171,103 48.6 % $ 708,110 $ 508,584 39.2 %
Per share 1 $ 0.561 $ 0.378 48.4 % $ 1.562 $ 1.123 39.1 %
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
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Financial Review
Revenues
Revenue in the third quarter of 2024 was $308 million (61% gold, 37% silver, 1% palladium
and 1% cobalt) , with the $85 million increase relative to the prior period quarter being
primarily due to a 26% increase in the average realized gold equivalent³ price; and a 10%
increase in the number of GEOs³ sold.
Revenue was $904 million in the nine months ended September 30, 2024, representing a
$202 million increase from the comparable period of the previous year due primarily to a 16%
increase in the average realized gold equivalent³ price; and an 11% increase in the number
of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2024 were $437 per GEO³ as compared to $445
in the third quarter of 2023. This resulted in a cash operating margin¹ of $2,075 per GEO³
sold, an increase of 34% as compared with the third quarter of 2023 , a result of the higher
realized price per ounce coupled with the lower average cash costs due to changes in the
sales mix.
Average cash costs¹ for the nine months ended September 30, 2024 were $434 per GEO³
as compared to $457 in the comparable period of the previous year. This resulted in a cash
operating margin¹ of $1,885 per GEO³ sold, a 22% increase from comparable period of the
previous year.
Cash Flow from Operations
Operating cash flow in the third quarter of 2024 amounted to $254 million, with the $83 million
increase due primarily to the higher gross margin.
Operating cash flows for the nine months ended September 30, 2024 amounted to $708
million, with the $200 million increase from the comparable period of the previous year being
due primarily to the higher gross margin.
Balance Sheet (at September 30, 2024)
• Approximately $694 million of cash on hand
• During the third quarter of 2024, the Company made total upfront cash payments of $30
million relative to the mineral stream and royalty interests consisting of:
o $25 million relative to the Mineral Park PMPA; and
o $5 million relative to the DeLamar Royalty.
• 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 are 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 are 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% are subject to the GMTA. For the three months
ended September 30, 2024 an amount of $28 million current tax expense associated with
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GMT was recorded (nine months - $78 million). GMT accrued to December 31, 2024 , is
payable on or before June 30, 2026 (18 months following year-end).
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of attributable gold, a
decrease of approximately 9% relative to the third quarter of 2023 , primarily due to lower
grades, partially offset by higher throughput. On July 25, 2024, Vale S.A. (“Vale”) 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.
Antamina: In the third quarter of 2024, Antamina produced 0.9 million ounces of attributable
silver, an increase of approximately 3% relative to the third quarter of 2023 primarily due to
higher recoveries, partially offset by lower throughput.
Peñasquito: In the third quarter of 2024, Peñasquito produced 1.8 million ounces of
attributable silver, with Peñasquito producing no ounces in the third quarter of 2023 as a
result of a labour strike which lasted from June 7 to October 13, 2023.
Constancia: In the third quarter of 2024, Constancia produced 0.6 million ounces of
attributable silver and 10,400 ounces of attributable gold, a decrease of approximately 7%
and 45%, respectively, relative to the third quarter of 2023. The decrease in silver production
was primarily due to lower recoveries. 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 continued throughout the third quarter. On
August 13, 2024, Hudbay Minerals Inc. (“Hudbay”) reported that the stripping program for the
next mining phase at Pampacancha was underway and expected to lead to significantly
higher copper and gold grades in the fourth quarter of 2024.
Sudbury: In the third quarter of 2024, Vale’s Sudbury mines produced 4,300 ounces of
attributable gold, an increase of approximately 11% relative to the third quarter of 2023, due
to higher throughput.
Stillwater: In the third quarter of 2024, the Stillwater mines produced 2,200 ounces of
attributable gold and 4,000 ounces of attributable palladium, a decrease of approximately 8%
for gold relative to the third quarter of 2023, due primarily to lower recoveries, while palladium
production was virtually unchanged. On September 12, 2024, Sibanye Stillwater (“Sibanye”)
announced that as a result of low palladium prices it was placing the Stillwater West
operations into care and maintenance , while Stillwater E ast and East Boulder operations
continue to operate. Sibanye reports that Stillwater West could return to production as prices
permit. Based on Sibanye’s Q3 MD&A, the Company’s management estimates that with the
Stillwater West operations in care and maintenance, 2025 production relative to the Stillwater
PMPA will be approximately 40% to 45% lower than historical levels.
Voisey’s Bay: In the third quarter of 2024, the Voisey's Bay mine produced 397,000 pounds
of attributable cobalt, an increase of approximately 118% relative to the third 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 repor ted that
physical completion of the Voisey’s Bay underground mine extension was 99% at the end of
the third quarter, with all surface construction completed and the commissioning of the Reid
Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material Handling system
achieved mechanical completion in early October and Vale indicated that the focus is now
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on commissioning, with handover to Operations within 2024. Demobilization efforts are
ongoing, with Surface contractors already fully demobilized.
Other Silver: In the third quarter of 2024, total Other Silver attributable production was 1.2
million ounces, a decrease of approximately 34% relative to the third quarter of 2023 . The
decrease from the comparable period of the prior year is primarily due to the temporary
suspension of attributable ore mined at Aljustrel commencing September 24, 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.
Recent Development Asset Updates
Blackwater Project: On November 6, 2024, Artemis Gold Inc., (“Artemis”) announced that
overall construction was over 95% complete as of September 30, 2024 and first gold pour is
targeted for late Q4 2024. Construction of the tailings storage facility is ready to allow for
the commencement of commissioning of the plant. Artemis reported that the initial mining
fleet has been commissioned and pre-stripping of the mine, as well as the construction of
haul roads are well advanced.
Platreef Project: On October 30, 2024, Ivanhoe Mines (“Ivanhoe”) reported that construction
of the Phase 1 concentrator was completed on schedule early in the third quarter. First ore
is scheduled for the second half of 2025, while underground development prioritizes
development to accelerate Phase 2. Ivanhoe also states that work continues on the updated
feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic
assessment of the previously announced Phase 3 expansion to 10 Mtpa processing capacity.
Both studies are now expected to be published in Q1 2025.
Goose Project: On November 6 2024, B2Gold Corp. (“B2Gold”) announced that all planned
construction year to date in 2024 has been completed. Project construction and development
continues to progress on track for first gold pour at the Goose Project in the second quarter
of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The
2024 sealift was completed successfully on September 30, 2024, with ten ships and one
barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic
grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign.
Marmato Mine: On July 16, 2024, Aris Mining Corporation (“Aris”) 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. On October 7, 2024, Aris provided an update that the Marmato Lower
Mine expansion is progressing on schedule, with the site access road and portal face now
complete and the contractor preparing to initiate work on the twin declines. Both the SAG and
ball mill fabrication are progressing on schedule for completion before the end of 2024.
Curipamba Project: On July 31, 2024, Silvercorp Metals Inc. (“Silvercorp”) completed the
previously announced acquisition of all of the issued and outstanding common shares of
Adventus Mining Corporation. Under the terms of the Curipamba PMPA, within 30 days of a
change of control, Silvercorp had a one-time option to repurchase 33% of the gold and silver
stream which expired unexercised.
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.
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On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries
Act Authorization 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 . Following which, the Marathon project will have all of the key
government 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
by h igher 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 from 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 Mantover de, 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. Dalradian has re -submitted two new applications for the abstraction
licenses and those licenses were received by the Commission on September 5, 2024. The
Commission has set new dates to resume the public inquiry process beginning January 13,
2025.
Fenix Project: On October 2, 2024, Rio2 Limited (“Rio2”) announced that its Chilean
subsidiary has received the principal Sectorial Permits it requires to begin construction at the
Fenix project. These Sectorial Permits represent the last governmental authorization required
to enable the start of the construction phase and subsequent operation of the Fenix mine.
Copper World Project: On August 29, 2024, Hudbay announced that it has received an
Aquifer Protection Permit for the Copper World project from the Arizona Department of
Environmental Quality. The issuance of this permit is a key milestone in the advancement of
Copper World. The last key state-level permit is the Air Quality Permit which is progressing
as planned.
Corporate Development
Koné Gold Project
On October 23, 2024, the Company entered into a PMPA (the “Koné Gold PMPA”) with
Montage Gold Corp. (“Montage”) in respect of its 90 % owned Koné Gold Project located in
Côte d’Ivoire. Under the terms of the agreement, Wheaton will purchase 19.5% of the payable
gold production until 400,000 ounces of gold have been delivered (subject to adjustment if
there are delays in deliveries relative to an agreed schedule ), 10.8% of the gold production
until the delivery of a further 130,000 ounces and 5.4% gold production thereafter for the life
of mine. Under the terms of the Koné Gold PMPA, the Company is committed to pay Montage
total upfront cash payments of $ 625 million, payable in four equal installment payments
during construction, subject to certain conditions, including that all permits have been
obtained.
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In addition, Wheaton will make ongoing production payments for the gold ounces delivered
equal to 20% of the spot gold price. For the first five years after the PMPA is signed, there
will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 per
ounce or greater than $2,700 per ounce.
The Company has also provided Montage with a secured debt facility of up to $75 million (the
“Facility”).
Amendment to the Fenix PMPA
On November 15, 2021, the Company acquired a gold stream in respect of gold production
from the Fenix Project (the "Fenix PMPA"). Under the terms of the Fenix PMPA, the Company
was to acquire an amount of gold equal to 6% of the gold production until 90,00 0 ounces
have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces
and 3.5% gold production thereafter for the life of mine.
On October 21, 2024, the Company amended the Fenix PMPA. Under the terms of the
amended agreement, the Company is entitled to purchase an additional 16% of payable gold
production (22% in total, subject to adjustment if there are delays in deliveries relative to an
agreed schedule ). Once Rio2 delivers the increme ntal 95,000 ounces (as adjusted), the
stream reverts to the percentages and thresholds under the original Fenix PMPA (as
described above). Rio2 has a one -time option to terminate the requirement to deliver the
additional gold production from the end of 2027 until the end of 2029 by delivering 95,000
ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces
which would have been delivered under the original Fenix PMPA. Finally, the Company has
also agreed to adjust the production payment for all gold ounces delivered to 20% of the spot
gold price. In exchange for the amendment, the Company is committed to pay additional
upfront cash consideration of $100 million, payable in two equal installments, subject to
various customary conditions being satisfied.
Wheaton will also provide a $20 million contingent secured debt facility in the form of a
standby loan facility. Lastly, Wheaton has committed to participate in a private placement of
Rio2 common shares for Cdn$5 million at a price per share equal to, and concurrent with, a
public offering by Rio2.
Sustainability
Future of Mining Challenge
On September 16, 2024, Wheaton announced the launch of the inaugural Future of Mining
Challenge, which will award US$1 million to a winning venture to advance their technology.
The Future of Mining Challenge invites cleantech ventures from around the world to submit
and propose industry solutions. This year's challenge focuses on identifying eligible
technologies with the potential to reduce greenhouse gas emissions across mining
operations. In alignment with Wheaton's business model, the solutions should be applicable
to base and/or precious metal mining. They should also be scalable globally, with the aim of
future implementation at operating mines. The challenge is being supported by Foresight
Canada. Submissions for challenge applications opened in September 2024, and the winner
will be announced in March 2025 at the PDAC Convention in Toronto, the world's largest
mining conference. More information can be found at www.futureofmining.ca.
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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.
• In August 2024, the BC Cancer Foundation’s Tour de Cure presented by Wheaton
raised C$7.3 million to advance groundbreaking cancer research and care
enhancements 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.
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 guidance 6. The transactions announced in 2024,
including the new stream associated with the Koné Project and the amendment related to the
Fenix Project, have not been incorporated into the long-term guidance.
The Company will provide updated longer-term guidance in normal course in the first quarter
of 202 5, which will incorporate the impact of recent developments and the acquisitions
announced in 2024.2,3
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.