TIDMWPM
RNS Number : 0720T
Wheaton Precious Metals Corp.
10 November 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 to 660,000 gold equivalent ounces," said
Randy Smallwood, President and Chief Executive Officer 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 portfolio 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 earnings [1] .
-- A cash balance of $834 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 dividend (1) 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 curves [2](, [3]) .
-- 30 years of mine life based on Proven and Probable Mineral
Reserves and potential additional mine life from mineral resource
conversion and exploration (2) (, [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 GEOs(2,3) 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.
Leadership in Sustainability
-- Top Rankings: #1 out of 117 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 GEOs(3) sold, resulting from lower production and
relative changes in the GEOs(3) produced but not yet delivered;
partially offset by a 4% increase in the average realized gold
equivalent(3) price.
Cash Costs and Margin
Average cash costs(1) in the third quarter of 2023 were $418 per
GEO(3) as compared to $451 in the third quarter of 2022. This
resulted in a cash operating margin(1) of $1,457 per GEO(3) sold,
an increase of 25% as compared with the third quarter of 2022 , a
result of the higher realized price per ounce.
Average cash costs(1) for the nine months ended September 30,
2023 were $427 per GEO(3) as compared to $448 in the comparable
period of the previous year. This resulted in a cash operating
margin(1) of $1,445 per GEO(3) 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 , t he 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.
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, were 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.
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 announced 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 resolution 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.
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 repurchase 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 precious
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 secured
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 quarter 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, the Tour De Cure Presented by
Wheaton attracted over 1,500 riders and raised more than $7.1
million for the BC Cancer Foundation.
-- 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 performance 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 13, 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
acquisitions (2) (,) (3) .
In accordance with Wheaton Precious Metals(TM) Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
Financial Statements, reference to the Company and Wheaton includes
the Company's wholly owned subsidiaries
Webcast and Conference Call Details
A conference call will be held on Friday, 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: info@wheatonpm.com
Media Contact
Simona Antolak
Vice President, Communications & Corporate Affairs
Tel: 604-639-9870
Email: simona.antolak@wheatonpm.com
End Notes
Condensed Interim Consolidated Statements of Earnings
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars and shares in thousands, except per share amounts
- unaudited) 2023 2022 2023 2022
-------------------------------------------------------------- --------- ---------- --------- ----------
Sales $ 223,137 $ 218,836 $ 702,573 $ 829,002
-------------------------------------------------------------- -------- --------- -------- ---------
Cost of sales
Cost of sales, excluding depletion $ 49,808 $ 60,955 $ 160,413 $ 205,891
Depletion 46,435 55,728 145,908 178,812
-------------------------------------------------------------- -------- --------- -------- ---------
Total cost of sales $ 96,243 $ 116,683 $ 306,321 $ 384,703
-------------------------------------------------------------- -------- --------- -------- ---------
Gross margin $ 126,894 $ 102,153 $ 396,252 $ 444,299
General and administrative expenses 8,606 8,360 28,922 27,448
Share based compensation 4,336 77 16,217 11,586
Donations and community investments 1,736 1,406 5,054 3,379
Impairment reversal of mineral stream interests - (10,330) - (10,330)
-------------------------------------------------------------- -------- --------- -------- ---------
Earnings from operations $ 112,216 $ 102,640 $ 346,059 $ 412,216
Gain on disposal of mineral stream interest - (104,425) (5,027) (104,425)
Other (income) expense (10,707) (2,799) (26,961) (3,448)
-------------------------------------------------------------- -------- --------- -------- ---------
Earnings before finance costs and income taxes $ 122,923 $ 209,864 $ 378,047 $ 520,089
Finance costs 1,407 1,398 4,138 4,209
-------------------------------------------------------------- -------- --------- -------- ---------
Earnings before income taxes $ 121,516 $ 208,466 $ 373,909 $ 515,880
Income tax expense (5,145) (12,006) (4,700) (12,879)
-------------------------------------------------------------- -------- --------- -------- ---------
Net earnings $ 116,371 $ 196,460 $ 369,209 $ 503,001
-------------------------------------------------------------- -------- --------- -------- ---------
Basic earnings per share $ 0.257 $ 0.435 $ 0.815 $ 1.114
Diluted earnings per share $ 0.257 $ 0.434 $ 0.814 $ 1.112
Weighted average number of shares outstanding
Basic 452,975 451,757 452,748 451,402
Diluted 453,538 452,386 453,419 452,221
============================================================== ======== ========= ======== =========
Condensed Interim Consolidated Balance Sheets
As at As at
September 30 December 31
(US dollars in thousands - unaudited) 2023 2022
------------------------------------------------- ----------------- ---------------
Assets
Current assets
Cash and cash equivalents $ 833,919 $ 696,089
Accounts receivable 10,492 10,187
Cobalt inventory 2,429 10,530
Taxes receivable 5,000 -
Other 4,353 3,287
------------------------------------------------------- ----------- --- ----------
Total current assets $ 856,193 $ 720,093
------------------------------------------------- ---- ----------- --- ----------
Non-current assets
Mineral stream interests $ 5,737,454 $ 5,707,019
Early deposit mineral stream interests 47,093 46,092
Long-term equity investments 200,893 256,095
Property, plant and equipment 8,092 4,210
Other 31,790 26,397
------------------------------------------------------- ----------- --- ----------
Total non-current assets $ 6,025,322 $ 6,039,813
------------------------------------------------- ---- ----------- --- ----------
Total assets $ 6,881,515 $ 6,759,906
------------------------------------------------- ---- ----------- --- ----------
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,999 $ 12,570
Current taxes payable - 2,763
Current portion of performance share units 9,404 14,566
Current portion of lease liabilities 590 818
Total current liabilities $ 21,993 $ 30,717
------------------------------------------------- ---- ----------- --- ----------
Non-current liabilities
Performance share units $ 6,222 $ 6,673
Lease liabilities 5,654 1,152
Deferred income taxes 189 165
Pension liability 4,196 3,524
------------------------------------------------------- ----------- --- ----------
Total non-current liabilities $ 16,261 $ 11,514
------------------------------------------------- ---- ----------- --- ----------
Total liabilities $ 38,254 $ 42,231
------------------------------------------------- ---- ----------- --- ----------
Shareholders' equity
Issued capital $ 3,774,333 $ 3,752,662
Reserves (78,872) 66,547
Retained earnings 3,147,800 2,898,466
------------------------------------------------------- ----------- --- ----------
Total shareholders' equity $ 6,843,261 $ 6,717,675
------------------------------------------------- ---- ----------- --- ----------
Total liabilities and shareholders' equity $ 6,881,515 $ 6,759,906
------------------------------------------------- ---- ----------- --- ----------
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended Nine Months Ended
September 30 September 30
(US dollars in thousands - unaudited) 2023 2022 2023 2022
------------------------------------------------------------- --------- ---------- ---------- ----------
Operating activities
Net earnings $ 116,371 $ 196,460 $ 369,209 $ 503,001
Adjustments for
Depreciation and depletion 46,784 56,129 147,031 180,004
Gain on disposal of mineral stream interest - (104,425) (5,027) (104,425)
Impairment (reversal of impairment) of mineral stream
interests - (10,330) - (10,330)
Interest expense 78 22 131 72
Equity settled stock based compensation 1,732 1,568 5,133 4,407
Performance share units - expense 2,604 (1,491) 11,084 7,179
Performance share units - paid - (163) (16,675) (18,411)
Pension expense 329 291 787 720
Pension paid - - (116) -
Income tax expense (recovery) 5,145 12,006 4,700 12,879
Loss (gain) on fair value adjustment of share purchase
warrants held 143 204 248 1,101
Investment income recognized in net earnings (10,537) (1,953) (26,564) (2,696)
Other 163 (349) 662 (440)
Change in non-cash working capital (489) 4,728 (876) (3,825)
============================================================= ======== ========= ========= =========
Cash generated from operations before income taxes and
interest $ 162,323 $ 152,697 $ 489,727 $ 569,236
Income taxes paid (912) (29) (5,244) (141)
Interest paid (79) (22) (112) (73)
Interest received 9,771 1,851 24,213 2,374
============================================================= ======== ========= ========= =========
Cash generated from operating activities $ 171,103 $ 154,497 $ 508,584 $ 571,396
============================================================= ======== ========= ========= =========
Financing activities
Credit facility extension fees $ (13) $ (1,205) $ (859) $ (1,207)
Share purchase options exercised 93 - 10,603 7,549
Lease payments (169) (201) (548) (603)
Dividends paid (66,994) (59,487) (198,085) (176,604)
============================================================= ======== ========= ========= =========
Cash used for financing activities $(67,083) $ (60,893) $(188,889) $(170,865)
============================================================= ======== ========= ========= =========
Investing activities
Mineral stream interests $(90,710) $ (46,675) $(210,944) $(107,476)
Early deposit mineral stream interests (250) (750) (1,000) (1,500)
Mineral royalty interest (3,602) - (3,602) -
Net proceeds on disposal of mineral stream interests - (139) 46,400 (139)
Acquisition of long-term investments (5,006) - (13,181) (22,768)
Proceeds on disposal of long-term investments - - 202 -
Dividends received 700 102 1,617 322
Other (35) (69) (1,804) (194)
============================================================= ======== ========= ========= =========
Cash used for investing activities $(98,903) $ (47,531) $(182,312) $(131,755)
============================================================= ======== ========= ========= =========
Effect of exchange rate changes on cash and cash equivalents $ (35) $ (81) $ 447 $ (203)
============================================================= ======== ========= ========= =========
Increase in cash and cash equivalents $ 5,082 $ 45,992 $ 137,830 $ 268,573
Cash and cash equivalents, beginning of period 828,837 448,626 696,089 226,045
============================================================= ======== ========= ========= =========
Cash and cash equivalents, end of period $ 833,919 $ 494,618 $ 833,919 $ 494,618
------------------------------------------------------------- -------- --------- --------- ---------
Summary of Units Produced
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Gold ounces
produced (2)
Salobo 69,045 54,804 43,677 37,939 44,212 34,129 44,883 48,235
Sudbury (3) 4,266 5,818 6,203 5,270 3,437 5,289 5,362 4,379
Constancia 19,003 7,444 6,905 10,496 7,196 8,042 6,311 9,857
San Dimas (4) 9,995 11,166 10,754 10,037 11,808 10,044 10,461 13,714
Stillwater (5) 2,454 2,017 1,960 2,185 1,833 2,171 2,497 2,664
Other
Marmato 673 639 457 533 542 778 477 479
777 (6) - - - - - 3,509 4,003 4,462
Minto - 1,292 3,063 2,567 3,050 2,480 4,060 3,506
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Total Other 673 1,931 3,520 3,100 3,592 6,767 8,540 8,447
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Total gold ounces
produced 105,436 83,180 73,019 69,027 72,078 66,442 78,054 87,296
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Silver ounces
produced (2)
Peñasquito
(7) - 1,744 2,076 1,761 2,017 2,089 2,219 2,145
Antamina 864 960 851 1,067 1,327 1,330 1,210 1,309
Constancia 697 420 552 655 564 584 506 578
Other
Los Filos 28 28 28 14 21 35 42 37
Zinkgruvan 785 374 632 664 642 739 577 482
Neves-Corvo 486 407 436 369 323 345 344 522
Aljustrel 327 279 343 313 246 292 287 325
Cozamin 165 184 141 157 179 169 186 213
Marmato 11 7 8 9 7 7 11 7
Yauliyacu
(8) - - - 261 463 756 637 382
Stratoni
(9) - - - - - - - 129
Minto - 14 29 33 33 26 45 44
Keno Hill
(10) - - - - - 48 20 30
777 (6) - - - - - 80 91 96
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Total Other 1,802 1,293 1,617 1,820 1,914 2,497 2,240 2,267
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Total silver
ounces produced 3,363 4,417 5,096 5,303 5,822 6,500 6,175 6,299
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Palladium ounces
produced (2)
Stillwater (5) 4,006 3,880 3,705 3,869 3,229 3,899 4,488 4,733
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Cobalt pounds
produced (2)
Voisey's Bay 183 152 124 128 226 136 234 381
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
GEOs produced (11) 154,800 145,797 144,000 142,887 153,025 155,932 164,911 177,490
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
Average payable
rate (2)
Gold 95.5% 95.1 % 95.1 % 94.9 % 95.1 % 95.1 % 95.2% 96.0%
Silver 79.0% 83.2% 82.3% 83.6% 85.8% 85.9% 86.3% 86.2%
Palladium 93.6% 94.1% 96.0% 91.7% 95.0% 94.6% 92.7% 92.2%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (11) 90.8% 90.4% 89.3% 89.3% 90.4% 90.4% 90.7% 91.5%
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ----------------- ----------------- ----------------
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures and payable
rates are based on information provided by the operators of the
mining operations to which the mineral stream interests relate or
management estimates in those situations where other information is
not available. Certain production figures and payable rates may be
updated in future periods as additional information is
received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
4) Under the terms of the San Dimas PMPA, the Company is
entitled to an amount equal to 25% of the payable gold production
plus an additional amount of gold equal to 25% of the payable
silver production converted to gold at a fixed gold to silver
exchange ratio of 70:1 from the San Dimas mine. If the average gold
to silver price ratio decreases to less than 50:1 or increases to
more than 90:1 for a period of 6 months or more, then the "70"
shall be revised to "50" or "90", as the case may be, until such
time as the average gold to silver price ratio is between 50:1 to
90:1 for a period of 6 months or more in which event the "70" shall
be reinstated. For reference, attributable silver production from
prior periods is as follows: Q3 2023 - 387,000 ounces; Q2 2023 -
423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces;
Q3 2022 - 412,000 ounces; Q2 2022 - 382,000 ounces; Q1 2022 -
408,000 ounces; Q4 2021 - 544,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) On June 22, 2022, Hudbay announced that mining activities at
777 have concluded and closure activities have commenced.
7) There was a temporary suspension of operations at Peñasquito
due to a labour strike which ran from June 7, 2023 to October 13,
2023.
8) On December 14, 2022 the Company terminated the Yauliyacu
PMPA in exchange for a cash payment of $132 million.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) On September 7, 2022, the Company terminated the Keno Hill
PMPA in exchange for $141 million of Hecla common stock.
11) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Summary of Units Sold
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Gold ounces sold
Salobo 44,444 46,030 35,966 41,029 31,818 48,515 42,513 47,171
Sudbury (2) 4,836 4,775 4,368 4,988 5,147 7,916 3,712 965
Constancia 12,399 9,619 6,579 6,013 6,336 7,431 10,494 6,196
San Dimas 9,695 11,354 10,651 10,943 10,196 10,633 10,070 15,182
Stillwater (3) 1,985 2,195 2,094 1,783 2,127 2,626 2,628 2,933
Other
Marmato 792 467 480 473 719 781 401 423
777 275 153 126 785 3,098 3,629 4,388 4,290
Minto - 701 2,341 2,982 2,559 2,806 3,695 2,462
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Total Other 1,067 1,321 2,947 4,240 6,376 7,216 8,484 7,175
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Total gold ounces
sold 74,426 75,294 62,605 68,996 62,000 84,337 77,901 79,622
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Silver ounces sold
Peñasquito 453 1,913 1,483 2,066 1,599 2,096 2,188 1,818
Antamina 794 963 814 1,114 1,155 1,177 1,468 1,297
Constancia 435 674 366 403 498 494 644 351
Other
Los Filos 30 37 34 16 24 41 42 17
Zinkgruvan 714 370 520 547 376 650 355 346
Neves-Corvo 245 132 171 80 105 167 204 259
Aljustrel 142 182 205 156 185 123 145 133
Cozamin 139 150 119 150 154 148 177 174
Marmato 11 7 7 7 8 11 8 8
Yauliyacu - - - 337 1,005 817 44 551
Stratoni - - - - - (2) 133 42
Minto - 7 29 23 22 21 31 27
Keno Hill - - 1 1 30 30 27 24
777 2 2 - 35 73 75 87 69
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Total Other 1,283 887 1,086 1,352 1,982 2,081 1,253 1,650
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Total silver
ounces sold 2,965 4,437 3,749 4,935 5,234 5,848 5,553 5,116
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Palladium ounces
sold
Stillwater (3) 4,242 3,392 2,946 3,396 4,227 3,378 4,075 4,641
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Cobalt pounds sold
Voisey's Bay 198 265 323 187 115 225 511 228
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
GEOs sold (4) 119,030 138,835 117,383 138,218 135,179 165,766 159,082 152,826
Cumulative payable
units PBND (5)
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
Gold ounces 99,923 73,403 69,479 62,602 65,978 59,331 81,365 84,989
Silver ounces 1,071 1,325 2,065 1,606 2,287 2,438 2,693 3,042
Palladium ounces 5,607 6,122 5,751 5,098 5,041 6,267 5,535 5,629
Cobalt pounds 376 250 285 257 402 280 550 596
GEO (4) 123,086 99,084 104,749 91,001 104,623 99,895 127,257 135,964
Inventory on
hand
Cobalt pounds 155 310 398 633 556 582 410 657
------------------ --------------------- --------------------- ---------------------- --------------------- ----------------- ------------------ ---------------- ----------------
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
5) Payable gold, silver and palladium ounces as well as cobalt
pounds produced but not yet delivered ("PBND") are based on
management estimates. These figures may be updated in future
periods as additional information is received.
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended September 30, 2023
---------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Cash Flow
Units Units ($'s ($'s Per ($'s Per Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales Earnings Operations Assets
------------------ ----------- ------ --------- --------- --------- -------- --------- ---------- ----------
Gold
Salobo 69,045 44,444 $ 1,944 $ 420 $ 330 $ 86,395 $ 53,026 $ 67,710 $2,341,485
Sudbury (4) 4,266 4,836 1,950 400 1,204 9,428 1,669 7,494 268,224
Constancia 19,003 12,399 1,944 419 316 24,102 14,991 18,906 86,555
San Dimas 9,995 9,695 1,944 631 260 18,846 10,216 12,732 147,638
Stillwater 2,454 1,985 1,944 349 510 3,859 2,154 3,167 212,650
Other (5) 673 1,067 1,945 368 391 2,077 1,266 1,684 557,035
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
105,436 74,426 $ 1,944 $ 444 $ 381 $144,707 $ 83,322 $ 111,693 $3,613,587
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Silver
Peñasquito - 453 $ 23.82 $ 4.43 $ 4.06 $ 10,804 $ 6,952 $ 8,795 $ 278,028
Antamina 864 794 23.82 4.81 7.06 18,915 9,496 15,097 527,227
Constancia 697 435 23.82 6.18 6.24 10,360 4,958 7,674 183,736
Other (6) 1,802 1,283 23.62 5.15 2.64 30,293 20,301 19,439 549,641
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
3,363 2,965 $ 23.73 $ 5.10 $ 4.57 $ 70,372 $ 41,707 $ 51,005 $1,538,632
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Palladium
Stillwater 4,006 4,242 $ 1,251 $ 223 $ 459 $ 5,307 $ 2,416 $ 4,361 $ 222,154
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,450
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Cobalt
Voisey's Bay 183 198 $ 13.87 $ 3.66 $ 12.98 $ 2,751 $ (551) $ 4,235 $ 353,631
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Operating results $223,137 $ 126,894 $ 171,294 $5,737,454
------------------------------- ------ -------- -------- -------- ------- -------- --------- ---------
Other
General and administrative $ (8,606) $ (6,321)
Share based compensation (4,336) -
Donations and community
investments (1,736) (1,750)
Finance costs (1,407) (1,078)
Other 10,707 9,870
Income tax (5,145) (912)
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
Total other $(10,523) $ (191) $1,144,061
--------------------------------------- -------- -------- -------- ------- -------- --------- ---------
$ 116,371 $ 171,103 $6,881,515
------------------ ----------- ------ -------- -------- -------- ------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
5) Comprised of the operating Marmato gold interests as well as
the non-operating Minto, 777, Copper World Complex, Santo Domingo,
Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine.
6) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and
the non-operating Minto, 777, Loma de La Plata, Stratoni,
Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine. On September 12, 2023, it was
announced that the production of zinc and lead concentrates at
Aljustrel will be halted from September 24, 2023 until the second
quarter of 2025.
7) Cash cost per pound of cobalt sold during the third quarter
of 2023 was net of a previously recorded inventory write-down of
$0.1 million, resulting in a decrease of $0.51 per pound of cobalt
sold. The Company reflects the cobalt inventory at the lower of
cost and net realizable value, and will continue to monitor the
market price of cobalt relative to the carrying value of the
inventory at each reporting period.
On a gold equivalent basis, results for the Company for the
three months ended September 30, 2023 were as follows:
Three Months Ended September 30, 2023
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 154,800 119,030 $ 1,875 $ 418 $ 1,457 $ 390 $ 1,067
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
1) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Three Months Ended September 30, 2022
-------------------------------------------------------------------------------------------------------------------------------------
Average Impairment
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------ ------------ --------- --------- -------- ----------- --------- ---------- ----------
Gold
Salobo 44,212 31,818 $ 1,724 $ 416 $ 334 $ 54,860 $ - $ 31,000 $ 41,617 $2,396,952
Sudbury (5) 3,437 5,147 1,745 400 1,092 8,984 - 1,303 5,943 288,863
Constancia 7,196 6,336 1,724 415 271 10,925 - 6,578 8,295 97,213
San Dimas 11,808 10,196 1,724 624 260 17,579 - 8,567 11,213 158,704
Stillwater 1,833 2,127 1,724 317 429 3,667 - 2,080 2,992 216,617
Other (6) 3,592 6,376 1,743 694 59 11,113 - 6,311 5,562 461,359
72,078 62,000 $ 1,728 $ 474 $ 353 $107,128 $ - $ 55,839 $ 75,622 $3,619,708
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Silver
Peñasquito 2,017 1,599 $ 19.30 $ 4.36 $ 3.57 $ 30,857 $ - $ 18,182 $ 23,885 $ 301,040
Antamina 1,327 1,155 19.30 3.75 7.06 22,287 - 9,798 17,951 553,231
Constancia 564 498 19.30 6.12 6.35 9,613 - 3,398 6,563 195,507
Other (7) 1,914 1,982 18.93 7.51 6.84 37,513 114,755 123,823 21,896 538,739
5,822 5,234 $ 19.16 $ 5.59 $ 5.84 $100,270 $ 114,755 $ 155,201 $ 70,295 $1,588,517
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 3,229 4,227 $ 2,091 $ 353 $ 399 $ 8,838 $ - $ 5,657 $ 7,344 $ 228,168
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,425
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 226 115 $ 22.68 $ 7.21 $ 13.63 $ 2,600 $ - $ 211 $ 7,352 $ 361,238
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Operating results $218,836 $ 114,755 $ 216,908 $ 160,613 $5,807,056
------------------------------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
Other
General and administrative $ (8,360) $ (5,342)
Share based compensation (77) (163)
Donations and community
investments (1,406) (1,410)
Finance costs (1,398) (1,020)
Other 2,799 1,848
Income tax (12,006) (29)
Total other $(20,448) $ (6,116) $ 780,539
--------------------------------------- -------- -------- -------- ------- ---------- -------- --------- ---------
$ 196,460 $ 154,497 $6,587,595
------------------ ----------- ------ -------- -------- -------- ------- ---------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
6) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Copper World Complex, Santo
Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver
interests, the non-operating Stratoni, Loma de La Plata, Copper
World Complex, Pascua-Lama, Blackwater and Curipamba silver
interests and the previously owned Keno Hill and Yauliyacu silver
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On September 7, 2022, the Keno Hill PMPA was terminated
in exchange for $141 million of Hecla common stock. On December 14,
2022 the Yauliyacu PMPA was terminated in exchange for a cash
payment of $132 million. On May 13, 2023, Minto announced the
suspension of operations at the Minto mine. On September 12, 2023,
it was announced that the production of zinc and lead concentrates
at Aljustrel will be halted from September 24, 2023 until the
second quarter of 2025.
On a gold equivalent basis, results for the Company for the
three months ended September 30, 2022 were as follows:
Three Months Ended September 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Cash Operating Average Gross
Price Cash Cost Margin Depletion Margin
Ounces Ounces ($'s Per ($'s Per ($'s Per Ounce) ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) (3) Ounce) Ounce)
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
Gold equivalent
basis (4) 153,025 135,179 $ 1,619 $ 451 $ 1,168 $ 412 $ 756
-------------------- -------------- -------- ---------- ------------ ------------------- ----------- ----------
1) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Nine Months Ended September 30, 2023
---------------------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- --------- --------- ---------- ----------
Gold
Salobo 167,526 126,440 $ 1,947 $ 420 $ 330 $246,219 $ - $ 151,287 $ 193,063 $2,341,485
Sudbury (5) 16,287 13,979 1,953 400 1,087 27,295 - 6,512 21,420 268,224
Constancia 33,352 28,597 1,948 417 316 55,718 - 34,751 43,779 86,555
San Dimas 31,915 31,700 1,945 628 260 61,657 - 33,535 41,762 147,638
Stillwater 6,431 6,274 1,945 347 510 12,201 - 6,824 10,026 212,650
Other (6) 6,124 5,335 1,935 1,119 172 10,324 - 3,439 4,090 557,035
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
261,635 212,325 $ 1,947 $ 465 $ 369 $413,414 $ - $ 236,348 $ 314,140 $3,613,587
================== =========== ======= ======== ======== ======== ======= ======== ======== ========= =========
Silver
Peñasquito 3,820 3,849 $ 23.63 $ 4.43 $ 4.06 $ 90,967 $ - $ 58,268 $ 73,915 $ 278,028
Antamina 2,675 2,571 23.65 4.69 7.06 60,812 - 30,625 48,765 527,227
Constancia 1,669 1,475 23.75 6.15 6.24 35,034 - 16,750 25,962 183,736
Other (7) 4,712 3,256 23.44 5.58 2.82 76,316 5,027 53,966 55,364 549,641
-------- --------
12,876 11,151 $ 23.60 $ 5.05 $ 4.68 $263,129 $ 5,027 $ 159,609 $ 204,006 $1,538,632
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
Palladium
Stillwater 11,591 10,580 $ 1,410 $ 255 $ 440 $ 14,922 $ - $ 7,565 $ 12,223 $ 222,154
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,450
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
Cobalt
Voisey's Bay 458 786 $ 14.13 $ 3.36 $ 13.63 $ 11,108 $ - $ (2,243) $ 13,056 $ 353,631
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
Operating results $702,573 $ 5,027 $ 401,279 $ 543,425 $5,737,454
------------------------------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
Other
General and administrative $(28,922) $ (29,702)
Share based compensation (16,217) (16,675)
Donations and community
investments (5,054) (4,896)
Finance costs (4,138) (3,147)
Other 26,961 24,823
Income tax (4,700) (5,244)
Total other $(32,070) $ (34,841) $1,144,061
---------------------------------------- -------- -------- -------- ------- -------- -------- --------- ---------
$ 369,209 $ 508,584 $6,881,515
------------------ ----------- ------- -------- -------- -------- ------- -------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) The gain on disposal of Other silver interests relates to the
gain on the buyback of 33% of the Goose PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests and the non-operating Stobie
and Victor gold interests.
6) Comprised of the operating Marmato gold interests as well as
the non-operating Minto, 777, Copper World Complex, Santo Domingo,
Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and
the non-operating Minto, 777, Loma de La Plata, Stratoni,
Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine. On September 12, 2023, it was
announced that the production of zinc and lead concentrates at
Aljustrel will be halted from September 24, 2023 until the second
quarter of 2025.
8) Cash cost per pound of cobalt sold during the nine months
ended September 30, 2023 was net of a previously recorded inventory
write-down of $1.6 million, resulting in a decrease of $2.05 per
pound of cobalt sold. The Company reflects the cobalt inventory at
the lower of cost and net realizable value, and will continue to
monitor the market price of cobalt relative to the carrying value
of the inventory at each reporting period.
On a gold equivalent basis, results for the Company for the nine
months ended September 30, 2023 were as follows:
Nine Months Ended September 30, 2023
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Depletion Margin
Ounces Ounces ($'s Per ($'s Per Cash Operating Margin ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) ($'s Per Ounce) (3) Ounce) Ounce)
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
Gold equivalent basis
(4) 444,597 375,248 $ 1,872 $ 427 $ 1,445 $ 389 $ 1,056
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
1) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Nine Months Ended September 30, 2022
-----------------------------------------------------------------------------------------------------------------------------------
Average Impairment
Realized Average Average Reversals /
Price Cash Cost Depletion Gain on Cash Flow
Units Units ($'s ($'s Per ($'s Per Disposal Net From Total
Produced(2) Sold Per Unit) Unit) (3) Unit) Sales (4) Earnings Operations Assets
------------------ ----------- ------- --------- --------- --------- -------- ----------- --------- ---------- ----------
Gold
Salobo 123,224 122,846 $ 1,834 $ 416 $ 334 $225,267 $ - $ 133,146 $ 174,134 $2,396,952
Sudbury (5) 14,088 16,775 1,828 400 1,091 30,673 - 5,657 22,980 288,863
Constancia 21,549 24,261 1,833 413 271 44,480 - 27,886 34,463 97,213
San Dimas 32,313 30,899 1,823 622 260 56,335 - 29,095 37,114 158,704
Stillwater 6,501 7,381 1,829 330 429 13,503 - 7,902 11,070 216,617
Other (6) 18,899 22,076 1,829 734 45 40,388 - 23,183 22,912 461,359
216,574 224,238 $ 1,831 $ 471 $ 348 $410,646 $ - $ 226,869 $ 302,673 $3,619,708
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Silver
Peñasquito 6,325 5,883 $ 22.21 $ 4.36 $ 3.57 $130,686 $ - $ 84,058 $ 105,036 $ 301,040
Antamina 3,867 3,800 22.13 4.42 7.06 84,093 - 40,479 66,952 553,231
Constancia 1,654 1,636 22.15 6.09 6.34 36,227 - 15,883 26,260 195,507
Other (7) 6,651 5,316 21.41 7.14 5.61 113,823 114,755 160,768 75,969 538,739
18,497 16,635 $ 21.93 $ 5.43 $ 5.29 $364,829 $ 114,755 $ 301,188 $ 274,217 $1,588,517
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Palladium
Stillwater 11,616 11,680 $ 2,190 $ 383 $ 399 $ 25,574 $ - $ 16,437 $ 21,099 $ 228,168
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Platinum
Marathon - - $ n.a $ n.a $ n.a $ - $ - $ - $ - $ 9,425
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Cobalt
Voisey's Bay 596 851 $ 32.85 $ 6.24 $ 9.49 $ 27,953 $ - $ 14,560 $ 24,412 $ 361,238
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Operating results $829,002 $ 114,755 $ 559,054 $ 622,401 $5,807,056
------------------------------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
Other
General and administrative $(27,448) $ (28,688)
Share based compensation (11,586) (18,411)
Donations and community
investments (3,379) (2,977)
Finance costs (4,209) (3,107)
Other 3,448 2,319
Income tax (12,879) (141)
Total other $(56,053) $ (51,005) $ 780,539
---------------------------------------- -------- -------- -------- ------- ---------- -------- --------- ---------
$ 503,001 $ 571,396 $6,587,595
------------------ ----------- ------- -------- -------- -------- ------- ---------- -------- --------- ---------
1) Units of gold, silver and palladium produced and sold are
reported in ounces, while cobalt is reported in pounds. All figures
in thousands except gold and palladium ounces produced and sold and
per unit amounts.
2) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson,
Creighton and Totten gold interests as well as the non-operating
Stobie and Victor gold interests.
6) Comprised of the operating Minto, 777 and Marmato gold
interests as well as the non-operating Copper World Complex, Santo
Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On May 13, 2023, Minto announced the suspension of
operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan,
Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver
interests, the non-operating Stratoni, Loma de La Plata, Copper
World Complex, Pascua-Lama, Blackwater and Curipamba silver
interests and the previously owned Keno Hill and Yauliyacu silver
interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have
commenced. On September 7, 2022, the Keno Hill PMPA was terminated
in exchange for $141 million of Hecla common stock. On December 14,
2022 the Yauliyacu PMPA was terminated in exchange for a cash
payment of $132 million. On May 13, 2023, Minto announced the
suspension of operations at the Minto mine. On September 12, 2023,
it was announced that the production of zinc and lead concentrates
at Aljustrel will be halted from September 24, 2023 until the
second quarter of 2025.
On a gold equivalent basis, results for the Company for the nine
months ended September 30, 2022 were as follows:
Nine Months Ended September 30, 2022
----------------------------------------------------------------------------------------------------------------------
Average
Realized Average Average Gross
Price Cash Cost Depletion Margin
Ounces Ounces ($'s Per ($'s Per Cash Operating Margin ($'s Per ($'s Per
Produced (1) Sold Ounce) Ounce) (2) ($'s Per Ounce) (3) Ounce) Ounce)
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
Gold equivalent basis
(4) 473,868 460,026 $ 1,802 $ 448 $ 1,354 $ 389 $ 965
------------------------ ------------- ------- --------- ----------- --------------------- ---------- ---------
1) Quantity produced represents the amount of gold, silver,
palladium and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Production figures are based on
information provided by the operators of the mining operations to
which the mineral stream interests relate or management estimates
in those situations where other information is not available.
Certain production figures may be updated in future periods as
additional information is received.
2) Silver ounces produced and sold in thousands.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
5) GEOs, which are provided to assist the reader, are based on
the following commodity price assumptions: $1,850 per ounce gold;
$24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per
pound cobalt; consistent with those used in estimating the
Company's production guidance for 2023.
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis; and
(iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other
one-time (income) expenses as well as the reversal of non-cash
income tax expense (recovery) which is offset by income tax expense
(recovery) recognized in the Statements of Shareholders' Equity and
OCI, respectively. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance.
The following table provides a reconciliation of adjusted net
earnings and adjusted net earnings per share (basic and
diluted).
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except for per share amounts) 2023 2022 2023 2022
--------------------------------------------------------- -------- ---------- -------- ----------
Net earnings $116,371 $ 196,460 $369,209 $ 503,001
Add back (deduct):
Impairment charge (reversal) - (10,330) - (10,330)
Gain on disposal of Mineral Stream Interest - (104,425) (5,027) (104,425)
(Gain) loss on fair value adjustment of share purchase
warrants held 143 204 248 1,101
Income tax (expense) recovery recognized in the
Statement of Shareholders' Equity - 3,644 - 4,143
Income tax (expense) recovery recognized in the
Statement of OCI 5,115 546 7,205 701
Income tax recovery related to prior year disposal of
Mineral Stream Interest - 7,779 (2,672) 7,779
Other (162) - (482) (802)
---------------------------------------------------------- ------- --------- ------- ---------
Adjusted net earnings $121,467 $ 93,878 $368,481 $ 401,168
---------------------------------------------------------- ------- --------- ------- ---------
Divided by:
Basic weighted average number of shares outstanding 452,975 451,757 452,748 451,402
Diluted weighted average number of shares outstanding 453,538 452,386 453,419 452,221
---------------------------------------------------------- ------- --------- ------- ---------
Equals:
Adjusted earnings per share - basic $ 0.268 $ 0.208 $ 0.814 $ 0.889
Adjusted earnings per share - diluted $ 0.268 $ 0.208 $ 0.813 $ 0.887
---------------------------------------------------------- ------- --------- ------- ---------
ii. Operating cash flow per share (basic and diluted) is
calculated by dividing cash generated by operating activities by
the weighted average number of shares outstanding (basic and
diluted). The Company presents operating cash flow per share as
management and certain investors use this information to evaluate
the Company's performance in comparison to other companies in the
precious metal mining industry who present results on a similar
basis.
The following table provides a reconciliation of operating cash
flow per share (basic and diluted).
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except for per share amounts) 2023 2022 2023 2022
--------------------------------------------------------- ------------ -------- ----------- --------
Cash generated by operating activities $ 171,103 $154,497 $ 508,584 $571,396
---------------------------------------------------------- -------- ------- ------- -------
Divided by:
Basic weighted average number of shares outstanding 452,975 451,757 452,748 451,402
Diluted weighted average number of shares outstanding 453,538 452,386 453,419 452,221
---------------------------------------------------------- -------- ------- ------- -------
Equals:
Operating cash flow per share - basic $ 0.378 $ 0.342 $ 1.123 $ 1.266
Operating cash flow per share - diluted $ 0.377 $ 0.342 $ 1.122 $ 1.264
---------------------------------------------------------- -------- ------- ------- -------
iii. Average cash cost of gold, silver and palladium on a per
ounce basis and cobalt on a per pound basis is calculated by
dividing the total cost of sales, less depletion, by the ounces or
pounds sold. In the precious metal mining industry, this is a
common performance measure but does not have any standardized
meaning prescribed by IFRS. In addition to conventional measures
prepared in accordance with IFRS, management and certain investors
use this information to evaluate the Company's performance and
ability to generate cash flow.
The following table provides a calculation of average cash cost
of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis.
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except for gold and palladium ounces
sold and per unit amounts) 2023 2022 2023 2022
------------------------------------------------------- --------- --------- ---------- ----------
Cost of sales $ 96,243 $ 116,683 $ 306,321 $ 384,703
Less: depletion (46,435) (55,728) (145,908) (178,812)
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales $ 49,808 $ 60,955 $ 160,413 $ 205,891
-------------------------------------------------------- -------- -------- --------- ---------
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 33,014 $ 29,398 $ 98,724 $ 105,719
Total cash cost of silver sold 15,121 29,238 56,351 90,384
Total cash cost of palladium sold 946 1,493 2,699 4,475
Total cash cost of cobalt sold 727 826 2,639 5,313
-------------------------------------------------------- -------- -------- --------- ---------
Total cash cost of sales $ 49,808 $ 60,955 $ 160,413 $ 205,891
-------------------------------------------------------- -------- -------- --------- ---------
Divided by:
Total gold ounces sold 74,426 62,000 212,325 224,238
Total silver ounces sold 2,965 5,234 11,151 16,635
Total palladium ounces sold 4,242 4,227 10,580 11,680
Total cobalt pounds sold 198 115 786 851
-------------------------------------------------------- -------- -------- --------- ---------
Equals:
Average cash cost of gold (per ounce) $ 444 $ 474 $ 465 $ 471
Average cash cost of silver (per ounce) $ 5.10 $ 5.59 $ 5.05 $ 5.43
Average cash cost of palladium (per ounce) $ 223 $ 353 $ 255 $ 383
Average cash cost of cobalt (per pound) $ 3.66 $ 7.21 $ 3.36 $ 6.24
-------------------------------------------------------- -------- -------- --------- ---------
iv. Cash operating margin is calculated by adding back depletion
to the gross margin. Cash operating margin on a per ounce or per
pound basis is calculated by dividing the cash operating margin by
the number of ounces or pounds sold during the period. The Company
presents cash operating margin as management and certain investors
use this information to evaluate the Company's performance in
comparison to other companies in the precious metal mining industry
who present results on a similar basis as well as to evaluate the
Company's ability to generate cash flow.
The following table provides a reconciliation of cash operating
margin.
Three Months Ended Nine Months Ended
September 30 September 30
(in thousands, except for gold and palladium ounces sold
and per unit amounts) 2023 2022 2023 2022
---------------------------------------------------------- ------------ -------- ----------- --------
Gross margin $ 126,894 $102,153 $ 396,252 $444,299
Add back: depletion 46,435 55,728 145,908 178,812
----------------------------------------------------------- -------- ------- ------- -------
Cash operating margin $ 173,329 $157,881 $ 542,160 $623,111
----------------------------------------------------------- -------- ------- ------- -------
Cash operating margin is comprised of:
Total cash operating margin of gold sold $ 111,693 $ 77,730 $ 314,690 $304,927
Total cash operating margin of silver sold 55,251 71,032 206,778 274,445
Total cash operating margin of palladium sold 4,361 7,345 12,223 21,099
Total cash operating margin of cobalt sold 2,024 1,774 8,469 22,640
----------------------------------------------------------- -------- ------- ------- -------
Total cash operating margin $ 173,329 $157,881 $ 542,160 $623,111
----------------------------------------------------------- -------- ------- ------- -------
Divided by:
Total gold ounces sold 74,426 62,000 212,325 224,238
Total silver ounces sold 2,965 5,234 11,151 16,635
Total palladium ounces sold 4,242 4,227 10,580 11,680
Total cobalt pounds sold 198 115 786 851
----------------------------------------------------------- -------- ------- ------- -------
Equals:
Cash operating margin per gold ounce sold $ 1,500 $ 1,254 $ 1,482 $ 1,360
Cash operating margin per silver ounce sold $ 18.63 $ 13.57 $ 18.55 $ 16.50
Cash operating margin per palladium ounce sold $ 1,028 $ 1,738 $ 1,155 $ 1,807
Cash operating margin per cobalt pound sold $ 10.21 $ 15.47 $ 10.77 $ 26.61
----------------------------------------------------------- -------- ------- ------- -------
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS measures
is intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR+ at
www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
payment of $115 million to Waterton Copper and the satisfaction of
each party's obligations in accordance with the Mineral Park PMPA
and the receipt of silver production in respect of the Mineral Park
Mine, the future price of commodities, the estimation of future
production from Mining Operations (including in the estimation of
production, mill throughput, grades, recoveries and exploration
potential), the estimation of mineral reserves and mineral
resources (including the estimation of reserve conversion rates)
and the realization of such estimations, the commencement, timing
and achievement of construction, expansion or improvement projects
by Wheaton's PMPA counterparties at mineral stream interests owned
by Wheaton (the "Mining Operations"), the payment of upfront cash
consideration to counterparties under PMPAs, the satisfaction of
each party's obligations in accordance with PMPAs and royalty
arrangements and the receipt by the Company of precious metals and
cobalt production in respect of the applicable Mining Operations
under PMPAs or other payments under royalty arrangements, the
ability of Wheaton's PMPA counterparties to comply with the terms
of a PMPA (including as a result of the business, mining operations
and performance of Wheaton's PMPA counterparties) and the potential
impacts of such on Wheaton, future payments by the Company in
accordance with PMPAs, the costs of future production, the
estimation of produced but not yet delivered ounces, the impact of
epidemics (including the COVID-19 virus pandemic), including the
potential heightening of other risks, future sales of common shares
under the ATM program, continued listing of the Company's common
shares, any statements as to future dividends, the ability to fund
outstanding commitments and the ability to continue to acquire
accretive PMPAs, including any acceleration of payments, projected
increases to Wheaton's production and cash flow profile, projected
changes to Wheaton's production mix, the ability of Wheaton's PMPA
counterparties to comply with the terms of any other obligations
under agreements with the Company, the ability to sell precious
metals and cobalt production, confidence in the Company's business
structure, the Company's assessment of taxes payable and the impact
of the CRA Settlement, possible domestic audits for taxation years
subsequent to 2016 and international audits, the Company's
assessment of the impact of any tax reassessments, the Company's
intention to file future tax returns in a manner consistent with
the CRA Settlement, the Company's climate change and environmental
commitments, and assessments of the impact and resolution of
various legal and tax matters, including but not limited to audits.
Generally, these forward-looking statements can be identified by
the use of forward-looking terminology such as "plans", "expects"
or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "projects", "intends", "anticipates" or
"does not anticipate", or "believes", "potential", or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to risks related to the satisfaction of each
party's obligations in accordance with the terms of the Mineral
Park PMPA, the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs or royalty
arrangements, risks associated with fluctuations in the price of
commodities (including Wheaton's ability to sell its precious
metals or cobalt production at acceptable prices or at all), risks
related to the Mining Operations (including fluctuations in the
price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which
the Mining Operations are located, actual results of mining, risks
associated with the exploration, development, operating, expansion
and improvement of the Mining Operations, environmental and
economic risks of the Mining Operations, and changes in
project parameters as plans continue to be refined), the absence
of control over the Mining Operations and having to rely on the
accuracy of the public disclosure and other information Wheaton
receives from the Mining Operations, uncertainty in the estimation
of production from Mining Operations, uncertainty in the accuracy
of mineral reserve and mineral resource estimation, risks of
significant impacts on Wheaton or the Mining Operations as a result
of an epidemic (including the COVID-19 virus pandemic), the ability
of each party to satisfy their obligations in accordance with the
terms of the PMPAs, the estimation of future production from Mining
Operations, Wheaton's interpretation of, compliance with or
application of, tax laws and regulations or accounting policies and
rules being found to be incorrect, any challenge or reassessment by
the CRA of the Company's tax filings being successful and the
potential negative impact to the Company's previous and future tax
filings, assessing the impact of the CRA Settlement (including
whether there will be any material change in the Company's facts or
change in law or jurisprudence), potential amendments to Canada's
transfer pricing rules under the Income Tax Act (Canada) that may
result from the Department of Finance's consultation paper released
June 6, 2023, potential implementation of a 15% global minimum tax,
including the draft legislation issued for consultation by the
Canadian Federal Government on August 4, 2023 that would apply to
the income of the Company's non-Canadian subsidiaries; counterparty
credit and liquidity, mine operator concentration, indebtedness and
guarantees, hedging, competition, claims and legal proceedings
against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of
Wheaton and the Mining Operations, exploration, development,
operations, expansions and improvements at the Mining Operations,
environmental regulations, climate change, Wheaton and the Mining
Operations ability to obtain and maintain necessary licenses,
permits, approvals and rulings, Wheaton and the Mining Operations
ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable supplies, infrastructure and
employees to support the Mining Operations, inability to replace
and expand mineral reserves, including anticipated timing of the
commencement of production by certain Mining Operations (including
increases in production, estimated grades and recoveries),
uncertainties of title and indigenous rights with respect to the
Mining Operations, environmental, social and governance matters,
Wheaton and the Mining Operations ability to obtain adequate
financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial
conditions, Wheaton's acquisition strategy and other risks
discussed in the section entitled "Description of the Business -
Risk Factors" in Wheaton's Annual Information Form available on
SEDAR+ at www.sedarplus.ca and Wheaton's Form 40-F for the year
ended December 31, 2022 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure"). Forward-looking
statements are based on assumptions management currently believes
to be reasonable, including (without limitation): the payment of
$115 million to Waterton Copper and the satisfaction of each
party's obligations in accordance with the terms of the Mineral
Park PMPA, that there will be no material adverse change in the
market price of commodities, that the Mining Operations will
continue to operate and the mining projects will be completed in
accordance with public statements and achieve their stated
production estimates, that the mineral reserves and mineral
resource estimates from Mining Operations (including reserve
conversion rates) are accurate, that each party will satisfy their
obligations in accordance with the PMPAs, that Wheaton will
continue to be able to fund or obtain funding for outstanding
commitments, that Wheaton will be able to source and obtain
accretive PMPAs, that neither Wheaton nor the Mining Operations
will suffer significant impacts as a result of an epidemic
(including the COVID-19 virus pandemic), that any outbreak or
threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there will be no material change in
the Company's facts or change in law or jurisprudence), and such
other assumptions and factors as set out in the Disclosure. There
can be no assurance that forward-looking statements will prove to
be accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward-looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
Cautionary Language Regarding Reserves and Resources
For further information on Mineral Reserves and Mineral
Resources and on Wheaton more generally, readers should refer to
Wheaton's Annual Information Form for the year ended December 31,
2022, which was filed on March 31, 2023 and other continuous
disclosure documents filed by Wheaton since January 1, 2023,
available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves
and Mineral Resources are subject to the qualifications and notes
set forth therein. Mineral Resources, which are not Mineral
Reserves, do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates
of Measured, Indicated and Inferred Resources: The information
contained herein has been prepared in accordance with the
requirements of the securities laws in effect in Canada, which
differ from the requirements of United States securities laws. The
Company reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral
resources in accordance with Canadian reporting requirements which
are governed by, and utilize definitions required by, Canadian
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101") and the Canadian Institute of Mining,
Metallurgy and Petroleum (the "CIM") - CIM Definition Standards on
Mineral Resources and Mineral Reserves, adopted by the CIM Council,
as amended (the "CIM Standards"). These definitions differ from the
definitions adopted by the United States Securities and Exchange
Commission ("SEC") under the United States Securities Act of 1933,
as amended (the "Securities Act") which are applicable to U.S.
companies. Accordingly, there is no assurance any mineral reserves
or mineral resources that the Company may report as "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
resources" under NI 43-101 would be the same had the Company
prepared the reserve or resource estimates under the standards
adopted by the SEC. Accordingly, information contained herein that
describes Wheaton's mineral deposits may not be comparable to
similar information made public by U.S. companies subject to
reporting and disclosure requirements under the United States
federal securities laws and the rules and regulations thereunder.
United States investors are urged to consider closely the
disclosure in Wheaton's Form 40-F, a copy of which may be obtained
from Wheaton or from https://www.sec.gov/edgar.shtml .
[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. Details of
the dividend can be found in the Wheaton's news release date
November 9, 2023, titled "Wheaton Precious Metals Declares
Quarterly Dividend."
[2] Statements made in this section contain forward-looking
information with respect to forecast production, funding
outstanding commitments and continuing to acquire accretive mineral
stream interests and readers are cautioned that actual outcomes may
vary. Please see "Cautionary Note Regarding Forward-Looking
Statements" for material risks, assumptions and important
disclosure associated with this information.
[3] Company reports & S and P Capital IQ est. of 2022
byproduct cost curves for gold, zinc/lead, copper, PGM, nickel
& silver mines. GEOs relating to production and guidance, which
are provided to assist the reader, are based on the following
commodity price assumptions: gold $1,850/oz, silver $24/oz,
palladium $1,800/oz, platinum $1,100/oz and cobalt $18.75/lb.
Five-year and ten-year guidance does not include any production
from Pascua-Lama, Navidad, Cotabambas, Metates or additional
expansions at Salobo outside of the Salobo III expansion. In
addition, five-year guidance also does not include any production
from Kutcho, or the Victor project at Sudbury. Additionally, none
of the deals announced in 2023 have been factored into 2023 or
longer-term guidance including the Blackwater extension, Cangrejos
and Mineral Park Projects, and the Black Pine Royalty. Ounces
produced represent the quantity of silver, gold, palladium and
cobalt contained in concentrate or doré prior to smelting or
refining deductions.
[4] Portfolio mine life based on recoverable reserves and
resources as of Dec 31, 2022 and 2022 actual mill throughput and is
weighted by individual reserve and resource category.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
QRTBMBFTMTJBMFJ
(END) Dow Jones Newswires
November 10, 2023 02:00 ET (07:00 GMT)
Wheaton Precious Metals (LSE:WPM)
過去 株価チャート
から 4 2024 まで 5 2024
Wheaton Precious Metals (LSE:WPM)
過去 株価チャート
から 5 2023 まで 5 2024
