WHEATON PRECIOUS METALS ANNOUNCES SOLID START TO 2022
05/05/2022 - 05:06 PM
TSX | NYSE | LSE: WPM
Designated News Release FIRST QUARTER 2022 FINANCIAL RESULTS
VANCOUVER, BC , May 5, 2022 /PRNewswire/ - "Wheaton once again had a solid start to the year, generating over $210 million in operating cash flow and continuing to return value to our shareholders through our competitive dividend," said Randy Smallwood , President and Chief Executive Officer of Wheaton Precious Metals. "In the first three months of 2022, we added two new streams and increased our interest in a pre-existing stream. In addition, we took a significant step in strengthening our environmental, social and governance strategy by formalizing our climate change policy, including setting a goal of reaching net zero carbon emissions by 2050. The year is off to a good start, and I look forward to advancing on all of our initiatives throughout the year in order to continue building a strong, sustainable business, that delivers value and growth to all of our stakeholders."
First Quarter 2022 Highlights:
Over $305 million in revenue and $210 million in operating cash flow during the quarter, resulting in a net cash balance of $376 million as at March 31, 2022 . $158 million in adjusted net earnings1 during the first quarter of 2022. Announced a new precious metal purchase agreement ("PMPA") on Adventus Mining Corporation's Curipamba Project in respect of gold and silver production. Announced PMPA on Sabina Gold & Silver Corp.'s Goose Project in respect of gold production. Amended the PMPA on Aris Gold Corp.'s Marmato Mine, increasing the gold stream in exchange for additional upfront consideration. Adopted a climate change policy and commitment to net zero carbon emissions by 2050. Declared quarterly dividend1 of $0.15 per common share, an increase of 7% relative to the comparable period in 2021. Operational Overview
(all figures in US dollars unless otherwise noted)
Q1 2022
Q1 2021
Change
Units produced
Gold ounces
79,087
78,529
0.7 %
Silver ounces
6,206
6,765
(8.3)%
Palladium ounces
4,488
5,769
(22.2)%
Cobalt pounds
234
1,162
(79.8)%
Gold equivalent ounces 2
171,367
196,756
(12.9)%
Units sold
Gold ounces
77,901
75,104
3.7 %
Silver ounces
5,553
6,657
(16.6)%
Palladium ounces
4,075
5,131
(20.6)%
Cobalt pounds
511
132
286.7 %
Gold equivalent ounces 2
166,065
172,271
(3.6)%
Revenue
$
307,244
$
324,119
(5.2)%
Net earnings
$
157,467
$
162,002
(2.8)%
Per share
$
0.349
$
0.360
(3.1)%
Adjusted net earnings 1
$
158,007
$
161,132
(1.9)%
Per share 1
$
0.350
$
0.358
(2.2)%
Operating cash flows
$
210,540
$
232,154
(9.3)%
Per share 1
$
0.467
$
0.516
(9.5)%
All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, and per share amounts.[1] [2]
Financial Review
Revenues Revenue was $307 million in the first quarter of 2022 representing a 5% decrease from the first quarter of 2021 due primarily to a 4% decrease in the number of GEOs² sold.
Cash Costs and Margin Average cash costs¹ in the first quarter of 2022 were $421 per GEO² as compared to $457 in the first quarter of 2021. This resulted in a cash operating margin¹ of $1,429 per GEO² sold, virtually unchanged as compared with the first quarter of 2021.
Balance Sheet (at March 31, 2022 )
Approximately $376 million of cash on hand. The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully undrawn. The Company is well positioned to fund all outstanding commitments as well as providing flexibility to acquire additional accretive mineral stream interests. First Quarter Asset Highlights
Salobo: In the first quarter of 2022, Salobo produced 44,900 ounces of attributable gold, a decrease of approximately 4% relative to the first quarter of 2021. According to Vale S.A. ("Vale"), during the quarter, Salobo operations were impacted by both planned and corrective maintenance in the mill liners. In addition, above average seasonal rain level in the region during the fourth quarter of 2021 impacted mine plans in the first quarter of 2022; however, Vale does not anticipate any impact to the overall 2022 production.
As per Vale's First Quarter 2022 Performance Report, on January 6, 2022 , heavy rainfall in the region of the Salobo III mine expansion caused a landslide that damaged part of a conveyor belt and blocked access to the project site. Vale reports that remediation work on the conveyor is ongoing and is expected to be completed in May. Furthermore, Vale does not foresee the impacts of this event modifying the project delivery date beyond the fourth quarter of 2022. Vale reports that physical completion of the Salobo III mine expansion was 90% at the end of the first quarter.
Antamina : In the first quarter of 2022, Antamina produced 1.3 million ounces of attributable silver, a decrease of approximately 20% relative to the first quarter of 2021, primarily due to lower grades as per the mine plan.
Constancia : In the first quarter of 2022, Constancia produced 0.5 million ounces of attributable silver and 6,300 ounces of attributable gold, an increase of approximately 25% and 157% , respectively, relative to the first quarter of 2021. Silver production increased primarily due to higher throughput and grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70% .
Sudbury : In the first quarter of 2022, Vale's Sudbury mines produced 6,400 ounces of attributable gold, a decrease of approximately 9% relative to the first quarter of 2021 primarily due to lower throughput as a result of the temporary closure of the Totten mine. As per Vale, on September 26, 2021 , a large piece of equipment, called a bucket scoop, blocked and damaged the mine shaft resulting in its temporary closure. Vale has reported that production at the Totten mine, which accounts for approximately 15% to 20% of the Company's attributable gold production from Sudbury , resumed in the first quarter of 2022 and that operations at the Sudbury mines are expected to normalize in the second quarter of 2022.
Stillwater : In the first quarter of 2022, the Stillwater mines produced 2,500 ounces of attributable gold and 4,500 ounces of attributable palladium, a decrease of approximately 18% for gold and 22% for palladium relative to the first quarter of 2021. The decrease was due to lower throughput and grades, partially offset by higher recoveries.
San Dimas : In the first quarter of 2022, San Dimas produced 10,500 ounces of attributable gold, virtually unchanged relative to the first quarter of 2021. First Majestic Silver Corp. ("First Majestic") reports that production in the first quarter of 2022 was impacted due to high absenteeism in the months of January and February caused by an increase in COVID-19 infections within the Tayoltita community.
Other Gold : In the first quarter of 2022, total Other Gold attributable production was 8,500 ounces, a decrease of approximately 4% relative to the first quarter of 2021, primarily due to the mining of lower grade material at 777, which is scheduled to close in June 2022 .
Other Silver: In the first quarter of 2022, total Other Silver attributable production was 2.2 million ounces, a decrease of approximately 14% relative to the first quarter of 2021, primarily due to lower grades at Aljustrel and the placement of Stratoni into care and maintenance.
Voisey's Bay: In the first quarter of 2022, the Voisey's Bay mine produced 234 thousand pounds of attributable cobalt, a decrease of approximately 80% relative to the first quarter of 2021. The apparent significant decrease relative to the first quarter of 2021 was primarily attributed to Wheaton being contractually entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021 , resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay Mine from prior periods. As per Vale's First Quarter 2022 Performance Report, physical completion of the Voisey's Bay underground mine extension was 70% at the end of the first quarter.
Produced But Not Yet Delivered3 and Inventory
As at March 31, 2022 , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:
82,400 payable gold ounces, a decrease of 2,600 ounces during Q1 2022, primarily due to decreases at the Constancia and 777 mines partially offset by an increase at the Sudbury mines. 3.9 million payable silver ounces, a decrease of 0.3 million ounces during Q1 2022. 5,500 payable palladium ounces, virtually unchanged during Q1 2022. 550 thousand payable cobalt pounds, virtually unchanged during Q1 2022. As of March 31, 2022 , approximately 410 thousand pounds of cobalt were held in inventory by Wheaton, a decrease of 247 pounds during Q1 2022.
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.
Corporate Development
Curipamba PMPA : On January 17, 2022 , the Company entered into a PMPA with Adventus Mining Corporation ("Adventus") in respect of the Curipamba Project ("Curipamba") located in Ecuador . Under the Curipamba PMPA, Wheaton will purchase 50% of the payable gold production until 145,000 ounces have been delivered, thereafter dropping to 33% of payable gold production for the life of the mine and 75% of the payable silver production until 4.6 million ounces have been delivered, thereafter dropping to 50% for the life of mine. Under the terms of the agreement, the Company is committed to pay Adventus total upfront cash consideration of $175.5 million , $13 million of which is available pre-construction and $500,000 of which will be paid to support certain local community development initiatives around Curipamba. The remainder will be payable in four staged installments during construction, subject to various customary conditions being satisfied. In addition, Wheaton will make ongoing production payments for the gold and silver ounces delivered equal to 18% of the spot prices until the value of gold and silver delivered, net of the production payment, is equal to the upfront consideration of $175.5 million , at which point the production payment will increase to 22% of the spot prices.
Marathon PMPA : On January 26, 2022 , the Company entered into the previously announced PMPA with Generation Mining Limited ("Gen Mining") in respect of the Marathon Project located in Ontario, Canada . Under the Marathon PMPA, Wheaton will purchase 100% of the payable gold production until 150,000 ounces have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces have been delivered, thereafter dropping to 15% for the life of mine. Under the terms of the agreement, the Company has committed to pay Gen Mining total upfront cash consideration of C$240 million , C$40 million of which will be paid prior to construction and to be used for the development of the Marathon Project, with the remainder payable in four staged installments during construction, subject to various customary conditions being satisfied and pre-determined completion tests. Of this amount, $16 million (C$20 million ) was paid on March 31, 2022 . In addition, Wheaton will make ongoing production payments for the gold and platinum ounces delivered equal to 18% of the spot prices until the value of gold and platinum delivered, net of the production payment, is equal to the upfront consideration of C$240 million , at which point the production payment will increase to 22% of the spot prices.
Goose PMPA : On February 8, 2022 , the Company announced that it had entered into a PMPA with Sabina Gold & Silver Corp. ("Sabina") in respect of the Goose Project, part of Sabina's Back River Gold District located in Nunavut, Canada . Under the Goose PMPA, Wheaton will purchase 4.15% of the payable gold production until 130,000 ounces have been delivered, thereafter dropping to 2.15% until 200,000 ounces have been delivered, thereafter dropping to 1.5% of the payable gold production. Under the terms of the agreement, the Company has committed to pay Sabina an upfront payment of $125 million in four equal installments during construction of the Goose Project, subject to customary conditions. In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot gold price until the value of gold, net of the production payment is equal to the upfront consideration of $125 million , at which point the production payment will increase to 22% of the spot gold price.
Amendment to the Marmato PMPA: On March 21, 2022 , the Company amended its PMPA with Aris Gold Corporation ("Aris Gold") in respect of the Marmato mines. Under the amended terms, Wheaton will purchase 10.5% of the gold production and 100% of the silver production from the Marmato Upper and Lower mines until 310,000 ounces of gold and 2.15 million ounces of silver have been delivered, after which the stream drops to 5.25% of the gold production and 50% of the silver production for the life of mine. This increases the gold stream from the original Marmato PMPA under which Wheaton was entitled to purchase 6.5% of the gold production until 190,000 ounces were delivered, after which the stream was to drop to 3.25% of the gold production. The silver stream is unchanged. Under the terms of the amended Marmato PMPA, the Company is committed to pay Aris Gold total upfront cash payments of $175 million ($65 million relating to the increase in the gold stream). Of this amount, $53 million ($15 million relating to the increase in the gold stream) has been paid and the remaining amount is payable during the construction of the Marmato Lower Mine, subject to customary conditions.
Sustainability
Climate Change Commitments: On February 9, 2022 , Wheaton announced the adoption of a Climate Change and Environmental Policy and commitment to net zero carbon emissions by 2050[4]. As part of this policy, Wheaton plans to establish targets across both Scope 2 and Scope 3 attributable emissions to support a 1.5° C trajectory. The Company has also committed an initial $4M to support our mining partners' efforts to move to renewable energy sources and reduce emissions at the mines in which we have an interest.
San Dimas Receives Recognition for Sustainability Efforts: The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic Silver Corp.'s ("First Majestic") San Dimas mining unit the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This distinction from within the Mexican community recognizes excellence in environmental and social responsibility and ethical management.
Partner Community Investment Program: Wheaton continues to support a wide range of programs with mining partners including Vale, Glencore, Hudbay and First Majestic Silver, focused on education, health, entrepreneurial support, and community engagement opportunities in the communities near the mines from which Wheaton receives precious metals. In the first quarter of 2022, all Partner Community Investment programs continued to operate as planned such as the continued enrollment of existing schoolteachers and administrators into the Enseña Peru training program, aimed at improving the academic performance for students living close to the Antamina mine. During the quarter, the Wheaton team focused on engaging with partners on identifying and selecting programs and initiatives to be supported by Wheaton for 2022 and beyond.
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 2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000 to 48,000 GEOs2 of other metals, resulting in production of approximately 700,000 to 760,000 GEOs2 , unchanged from previous guidance. For the five-year period ending in 2026, the Company estimates that average production will amount to 850,000 GEOs2 , while for the ten-year period ending in 2031, the Company estimates that average annual production will amount to 910,000 GEOs2 , also unchanged from previous guidance.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, May 6, 2022 starting at 8:00am PT / 11:00 am ET to discuss these results. To participate in the live call please use one of the following methods:
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: 78834538 Live webcast: Webcast URL
Participants should dial in five to ten minutes before the call.
The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call.
The conference call will be recorded and available until May 13, 2022 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: 834538 # 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.sedar.com .
Mr. Wes Carson , P.Eng., Vice President, Mining Operations is a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release.
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and financial statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.
End Notes
__________________________________
1 Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton's news release date May 5, 2022, titled "Wheaton Precious Metals Declares Quarterly Dividend."
2 Commodity price assumptions for the gold equivalent production and sales in 2022 are $1,800 / ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other metal includes palladium and cobalt.
3 Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.
4 Net zero includes emissions reductions in line with a 1.5 trajectory across Scopes 1, 2 and 3. Achievement of net zero may include the use of offsets for residual emissions in 2050.
Condensed Interim Consolidated Statements of Earnings
Three Months Ended March 31
(US dollars and shares in thousands, except per share amounts - unaudited)
2022
2021
Sales
$
307,244
$
324,119
Cost of sales
Cost of sales, excluding depletion
$
69,994
$
78,783
Depletion
57,402
70,173
Total cost of sales
$
127,396
$
148,956
Gross margin
$
179,848
$
175,163
General and administrative expenses
9,403
9,735
Share based compensation
9,902
1,630
Donations & community investments
813
606
Earnings from operations
$
159,730
$
163,192
Other (income) expense
170
119
Earnings before finance costs and income taxes
$
159,560
$
163,073
Finance costs
1,422
1,573
Earnings before income taxes
$
158,138
$
161,500
Income tax (expense) recovery
(671)
502
Net earnings
$
157,467
$
162,002
Basic earnings per share
$
0.349
$
0.360
Diluted earnings per share
$
0.348
$
0.360
Weighted average number of shares outstanding
Basic
450,915
449,509
Diluted
451,953
450,600
Condensed Interim Consolidated Balance Sheets
As at March 31
As at December 31
(US dollars in thousands - unaudited)
2022
2021
Assets
Current assets
Cash and cash equivalents
$
376,163
$
226,045
Accounts receivable
27,939
11,577
Other
9,875
12,102
Total current assets
$
413,977
$
249,724
Non-current assets
Mineral stream interests
$
5,894,884
$
5,905,797
Early deposit mineral stream interests
45,342
34,741
Mineral royalty interest
6,606
6,606
Long-term equity investments
92,194
61,477
Convertible notes receivable
-
17,086
Property, plant and equipment
5,183
5,509
Other
11,847
15,211
Total non-current assets
$
6,056,056
$
6,046,427
Total assets
$
6,470,033
$
6,296,151
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
11,861
$
13,935
Dividends payable
67,687
-
Current portion of performance share units
31,413
14,807
Current portion of lease liabilities
830
813
Other
150
136
Total current liabilities
$
111,941
$
29,691
Non-current liabilities
Lease liabilities
1,868
2,060
Deferred income taxes
121
100
Performance share units
3,759
11,498
Pension liability
2,883
2,685
Total non-current liabilities
$
8,631
$
16,343
Total liabilities
$
120,572
$
46,034
Shareholders' equity
Issued capital
$
3,711,294
$
3,698,998
Reserves
44,304
47,036
Retained earnings
2,593,863
2,504,083
Total shareholders' equity
$
6,349,461
$
6,250,117
Total liabilities and shareholders' equity
$
6,470,033
$
6,296,151
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended March 31
(US dollars in thousands - unaudited)
2022
2021
Operating activities
Net earnings
$
157,467
$
162,002
Adjustments for
Depreciation and depletion
57,795
70,649
Interest expense
26
262
Equity settled stock based compensation
1,342
1,325
Performance share units
8,560
305
Pension expense
158
151
Income tax expense (recovery)
671
(502)
Loss (gain) on fair value adjustment of share purchase warrants held
743
950
Fair value (gain) loss on convertible note receivable
1,380
(1,238)
Investment income recognized in net earnings
(194)
(2)
Other
(1,514)
593
Change in non-cash working capital
(15,918)
(1,972)
Cash generated from operations before income taxes and interest
$
210,516
$
232,523
Income taxes recovered (paid)
(32)
(30)
Interest paid
(26)
(341)
Interest received
82
2
Cash generated from operating activities
$
210,540
$
232,154
Financing activities
Bank debt repaid
$
-
$
(195,000)
Share purchase options exercised
5,772
4,793
Lease payments
(200)
(214)
Cash (used for) generated from financing activities
$
5,572
$
(190,421)
Investing activities
Mineral stream interests
$
(45,252)
$
(151,019)
Early deposit mineral stream interests
(750)
(750)
Mineral royalty interest
-
(3,561)
Acquisition of long-term investments
(20,135)
-
Proceeds on disposal of long-term investments
-
112,188
Dividends received
112
-
Other
(36)
(134)
Cash (used for) generated from investing activities
$
(66,061)
$
(43,276)
Effect of exchange rate changes on cash and cash equivalents
$
67
$
22
Increase (decrease) in cash and cash equivalents
$
150,118
$
(1,521)
Cash and cash equivalents, beginning of period
226,045
192,683
Cash and cash equivalents, end of period
$
376,163
$
191,162
Summary of Units Produced
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Gold ounces produced ²
Salobo
44,883
48,235
55,205
55,590
46,622
62,854
63,408
59,104
Sudbury 3
6,395
4,379
148
4,563
7,004
6,659
3,798
9,257
Constancia 7
6,311
9,857
8,533
5,525
2,453
3,929
3,780
3,470
San Dimas 4, 7
10,461
13,714
11,936
11,478
10,491
11,652
9,228
6,074
Stillwater 5
2,497
2,664
2,949
2,962
3,041
3,290
3,176
3,222
Other
Minto
4,060
3,506
1,703
3,206
2,638
789
1,832
2,928
777 8
4,003
4,462
4,717
5,035
6,280
2,866
5,278
4,728
Marmato
477
479
433
1,713
-
-
-
-
Total Other
8,540
8,447
6,853
9,954
8,918
3,655
7,110
7,656
Total gold ounces produced
79,087
87,296
85,624
90,072
78,529
92,039
90,500
88,783
Silver ounces produced 2
Peñasquito 7
2,219
2,145
2,180
2,026
2,202
2,014
1,992
967
Antamina 7
1,260
1,366
1,548
1,558
1,577
1,930
1,516
612
Constancia 7
506
578
521
468
406
478
430
254
Other
Los Filos 7
23
37
17
26
31
6
17
14
Zinkgruvan
577
482
658
457
420
515
498
389
Yauliyacu 7
637
382
372
629
737
454
679
273
Stratoni 9
-
129
18
164
165
185
156
148
Minto
45
44
25
33
21
16
15
19
Neves-Corvo
344
522
362
408
345
420
281
479
Aljustrel
287
325
314
400
474
440
348
388
Cozamin
186
213
199
183
230
-
-
-
Marmato
11
7
10
39
-
-
-
-
Keno Hill
20
30
44
55
27
-
-
-
777 8
91
96
81
83
130
51
96
108
Total Other
2,221
2,267
2,100
2,477
2,580
2,087
2,090
1,818
Total silver ounces produced
6,206
6,356
6,349
6,529
6,765
6,509
6,028
3,651
Palladium ounces produced ²
Stillwater 5
4,488
4,733
5,105
5,301
5,769
5,672
5,444
5,759
Cobalt pounds produced ²
Voisey's Bay
234
381
370
380
1,162 ¹⁰
-
-
-
GEOs produced 6
171,367
184,551
183,012
190,272
196,756
185,436
177,230
144,188
SEOs produced 6
12,853
13,841
13,726
14,270
14,757
13,908
13,292
10,814
Average payable rate 2
Gold
95.2%
96.0%
96.0%
95.8%
95.0%
95.2%
95.3%
94.7%
Silver
86.1%
86.0%
86.6%
86.9%
86.6%
86.3%
86.1%
81.9%
Palladium
92.7%
92.2%
94.5%
95.0%
91.6%
93.6%
94.0%
90.8%
Cobalt
93.3%
93.3%
93.3%
93.3%
93.3%
n.a.
n.a.
n.a.
GEO 6
90.6%
91.4%
91.3%
91.8%
90.7%
91.2%
91.2%
90.0%
1)
All figures in thousands except gold and palladium ounces produced.
2)
Quantity produced represent 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. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees.
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. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces.
5)
Comprised of the Stillwater and East Boulder gold and palladium interests.
6)
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
7)
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted. Additionally, operations at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community and had been temporarily suspended from June 22, 2021 to July 26, 2021 as the result of illegal blockades by a group of unionized employees and members of the Xochipala community.
8)
Operations at 777 were temporarily suspended from October 11, 2020 to November 25, 2020 as a result of an incident that occurred on October 9th during routine maintenance of the hoist rope and skip.
9)
The Stratoni mine was placed into care and maintenance during Q4-2021.
10)
Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey's Bay mine. As per the Voisey's Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay mine in the previous quarter.
Summary of Units Sold
Q1 2022
Q4 2021
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Q2 2020
Gold ounces sold
Salobo
42,513
47,171
35,185
57,296
51,423
53,197
59,584
68,487
Sudbury 2
3,712
965
1,915
6,945
3,691
7,620
7,858
7,414
Constancia 6
10,494
6,196
8,159
2,321
1,676
3,853
4,112
3,024
San Dimas 6
10,070
15,182
11,346
11,214
10,273
11,529
9,687
6,030
Stillwater 3
2,628
2,933
2,820
2,574
3,074
3,069
3,015
3,066
Other
Minto
3,695
2,462
1,907
2,359
2,390
1,540
-
-
777
4,388
4,290
5,879
5,694
2,577
5,435
5,845
4,783
Marmato
401
423
438
1,687
-
-
-
-
Total Other
8,484
7,175
8,224
9,740
4,967
6,975
5,845
4,783
Total gold ounces sold
77,901
79,622
67,649
90,090
75,104
86,243
90,101
92,804
Silver ounces sold
Peñasquito 6
2,188
1,818
2,210
1,844
2,174
1,417
1,799
1,917
Antamina 6
1,468
1,297
1,502
1,499
1,930
1,669
1,090
788
Constancia 6
644
351
484
295
346
442
415
254
Other
Los Filos 6
42
17
12
42
27
-
19
25
Zinkgruvan
355
346
354
355
293
326
492
376
Yauliyacu 6
44
551
182
601
1,014
15
580
704
Stratoni
133
42
41
167
117
169
134
77
Minto
31
27
24
29
26
20
-
-
Neves-Corvo
204
259
193
215
239
145
201
236
Aljustrel
145
133
155
208
257
280
148
252
Cozamin
177
174
170
168
173
-
-
-
Marmato
8
8
10
35
-
-
-
-
Keno Hill
27
24
51
33
12
-
-
-
777
87
69
99
109
49
93
121
100
Total Other
1,253
1,650
1,291
1,962
2,207
1,048
1,695
1,770
Total silver ounces sold
5,553
5,116
5,487
5,600
6,657
4,576
4,999
4,729
Palladium ounces sold
Stillwater 3
4,075
4,641
5,703
3,869
5,131
4,591
5,546
4,976
Cobalt pounds sold
Voisey's Bay
511
228
131
395
132
-
-
-
GEOs sold 4
166,065
157,439
149,862
176,502
172,271
152,613
163,218
161,664
SEOs sold 4
12,455
11,808
11,240
13,238
12,920
11,446
12,241
12,125
Cumulative payable units PBND 5
Gold ounces
82,350
84,989
80,819
66,238
70,072
70,555
75,750
79,632
Silver ounces
3,893
4,200
3,845
3,802
3,738
4,486
3,437
3,222
Palladium ounces
5,535
5,629
5,619
6,822
5,373
5,597
4,616
4,883
Cobalt pounds
550
596
637
777
820
-
-
-
GEO 4
150,794
158,477
150,317
139,145
141,206
136,894
126,968
128,291
SEO 4
11,310
11,886
11,274
10,436
10,590
10,267
9,523
9,622
Inventory on hand
Cobalt pounds
410
657
488
134
132
-
-
-
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 and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
5)
Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received.
6)
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.
Results of Operations
The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.
Three Months Ended March 31, 2022
Units Produced²
Units Sold
Average Realized Price ($'s Per Unit)
Average Cash Cost ($'s Per Unit) 3
Average Depletion ($'s Per Unit)
Sales
Net Earnings
Cash Flow From Operations
Total Assets
Gold
Salobo
44,883
42,513
$
1,872
$
416
$
334
$
79,564
$
47,684
$
61,869
$
2,423,755
Sudbury 4
6,395
3,712
1,861
400
1,092
6,909
1,370
5,425
303,115
Constancia
6,311
10,494
1,872
412
271
19,641
12,471
15,482
100,944
San Dimas
10,461
10,070
1,872
618
260
18,846
10,008
12,621
164,110
Stillwater
2,497
2,628
1,872
329
429
4,918
2,926
4,054
218,657
Other 5
8,540
8,484
1,862
771
25
15,797
9,048
8,822
404,729
79,087
77,901
$
1,870
$
477
$
321
$
145,675
$
83,507
$
108,273
$
3,615,310
Silver
Peñasquito
2,219
2,188
$
24.10
$
4.36
$
3.57
$
52,727
$
35,387
$
43,188
$
314,217
Antamina
1,260
1,468
24.09
4.94
7.06
35,359
17,747
27,759
569,691
Constancia
506
644
24.10
6.08
6.33
15,513
7,526
11,913
201,811
Other 6
2,221
1,253
24.52
6.07
3.45
30,733
18,797
23,874
589,875
6,206
5,553
$
24.19
$
5.10
$
4.78
$
134,332
$
79,457
$
106,734
$
1,675,594
Palladium
Stillwater
4,488
4,075
$
2,339
$
394
$
399
$
9,533
$
6,303
$
7,930
$
231,203
Platinum
Marathon
-
-
$
n.a.
$
n.a.
$
n.a.
$
-
$
-
$
-
$
4,820
Cobalt
Voisey's Bay
234
511
$
34.61
$
5.76
$
8.17
$
17,704
$
10,581
$
3,263
$
367,957
Operating results
$
307,244
$
179,848
$
226,200
$
5,894,884
Other
General and administrative
$
(9,403)
$
(15,128)
Share based compensation
(9,902)
-
Donations & community investments
(813)
(430)
Finance costs
(1,422)
(1,077)
Other
(170)
1,007
Income tax
(671)
(32)
Total other
$
(22,381)
$
(15,660)
$
575,149
$
157,467
$
210,540
$
6,470,033
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 represent 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 777, Minto and Marmato gold interests as well as the non-operating Rosemont, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests.
6)
Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama, Rosemont, Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021.
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended March 31, 2022 were as follows:
Three Months Ended March 31, 2022
Ounces Produced 1, 2
Ounces Sold 2
Average Realized Price ($'s Per Ounce)
Average Cash Cost ($'s Per Ounce) 3
Cash Operating Margin ($'s Per Ounce) 4
Average Depletion ($'s Per Ounce)
Gross Margin ($'s Per Ounce)
Gold equivalent basis 5
171,367
166,065
$ 1,850
$ 421
$ 1,429
$ 346
$ 1,083
Silver equivalent basis 5
12,853
12,455
$ 24.67
$ 5.62
$ 19.05
$ 4.61
$ 14.44
1)
Quantity produced represent 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 and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
Three Months Ended March 31, 2021
Units Produced²
Units Sold
Average Realized Price ($'s Per Unit)
Average Cash Cost ($'s Per Unit) 3
Average Depletion ($'s Per Unit)
Sales
Net Earnings
Cash Flow From Operations
Total Assets
Gold
Salobo
46,622
51,423
$
1,796
$
412
$
374
$
92,356
$
51,946
$
71,163
$
2,490,127
Sudbury 4
7,004
3,691
1,812
400
1,024
6,688
1,431
5,219
317,235
Constancia
2,453
1,676
1,796
408
315
3,010
1,798
2,326
105,041
San Dimas
10,491
10,273
1,796
612
322
18,450
8,851
12,162
178,891
Stillwater
3,041
3,074
1,796
329
397
5,521
3,290
4,510
223,090
Other 5
8,918
4,967
1,812
629
-
9,000
5,878
5,855
7,591
78,529
75,104
$
1,798
$
450
$
374
$
135,025
$
73,194
$
101,235
$
3,321,975
Silver
Peñasquito
2,202
2,174
$
26.21
$
4.29
$
3.55
$
56,983
$
39,940
$
47,655
$
342,857
Antamina
1,577
1,930
26.21
5.18
7.53
50,581
26,058
40,591
612,401
Constancia
406
346
26.21
6.02
7.56
9,072
4,372
6,988
214,428
Other 6
2,580
2,207
25.95
9.41
6.30
57,247
22,589
39,098
612,237
6,765
6,657
$
26.12
$
6.33
$
5.82
$
173,883
$
92,959
$
134,332
$
1,781,923
Palladium
Stillwater
5,769
5,131
$
2,392
$
427
$
442
$
12,275
$
7,813
$
10,084
$
239,118
Cobalt
Voisey's Bay
1,162
132
$
22.19
$
4.98
$
8.17
$
2,936
$
1,197
$
(966)
$
225,348
Operating results
$
324,119
$
175,163
$
244,685
$
5,568,364
Other
General and administrative
$
(9,735)
$
(12,664)
Share based compensation
(1,630)
-
Donations & community investments
(606)
(498)
Finance costs
(1,573)
(1,229)
Other
(119)
1,890
Income tax
502
(30)
Total other
$
(13,161)
$
(12,531)
$
360,048
$
162,002
$
232,154
$
5,928,412
1)
Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands gold and palladium ounces produced and sold and per unit amounts.
2)
Quantity produced represent 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 as well as the non-operating Stobie and Victor gold interests.
5)
Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Rosemont gold interest.
6)
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Pascua-Lama and Rosemont silver interests.
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended March 31, 2021 were as follows:
Three Months Ended March 31, 2021
Ounces Produced 1, 2
Ounces Sold 2
Average Realized Price ($'s Per Ounce)
Average Cash Cost ($'s Per Ounce) 3
Cash Operating Margin ($'s Per Ounce) 4
Average Depletion ($'s Per Ounce)
Gross Margin ($'s Per Ounce)
Gold equivalent basis 5
196,756
172,271
$ 1,881
$ 457
$ 1,424
$ 407
$ 1,017
Silver equivalent basis 5
14,757
12,920
$ 25.09
$ 6.10
$ 18.99
$ 5.43
$ 13.56
1)
Quantity produced represent 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 and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.
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, with the Company receiving its first deliveries of cobalt from Voisey's Bay during the first quarter of 2021; and (iv) cash operating margin. The Company has removed the non-IFRS measure associated with net debt as Wheaton fully repaid its debt during the first quarter of 2021.
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 March 31
(in thousands, except for per share amounts)
2022
2021
Net earnings
$
157,467
$
162,002
Add back (deduct):
(Gain) loss on fair value adjustment of share purchase warrants held
743
950
(Gain) loss on fair value adjustment of convertible notes receivable
1,380
(1,238)
Income tax expense (recovery) recognized in the Statement of Shareholders' Equity
793
1,568
Income tax expense (recovery) recognized in the Statement of OCI
(194)
(2,137)
Other
(2,182)
(13)
Adjusted net earnings
$
158,007
$
161,132
Divided by:
Basic weighted average number of shares outstanding
450,915
449,509
Diluted weighted average number of shares outstanding
451,953
450,600
Equals:
Adjusted earnings per share - basic
$
0.350
$
0.358
Adjusted earnings per share - diluted
$
0.350
$
0.358
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 March 31
(in thousands, except for per share amounts)
2022
2021
Cash generated by operating activities
$
210,540
$
232,154
Divided by:
Basic weighted average number of shares outstanding
450,915
449,509
Diluted weighted average number of shares outstanding
451,953
450,600
Equals:
Operating cash flow per share - basic
$
0.467
$
0.516
Operating cash flow per share - diluted
$
0.466
$
0.515
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 March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts)
2022
2021
Cost of sales
$
127,396
$
148,956
Less: depletion
(57,402)
(70,173)
Cash cost of sales
$
69,994
$
78,783
Cash cost of sales is comprised of:
Total cash cost of gold sold
$
37,133
$
33,774
Total cash cost of silver sold
28,314
42,160
Total cash cost of palladium sold
1,603
2,191
Total cash cost of cobalt sold
2,944
658
Total cash cost of sales
$
69,994
$
78,783
Divided by:
Total gold ounces sold
77,901
75,104
Total silver ounces sold
5,553
6,657
Total palladium ounces sold
4,075
5,131
Total cobalt pounds sold
511
132
Equals:
Average cash cost of gold (per ounce)
$
477
$
450
Average cash cost of silver (per ounce)
$
5.10
$
6.33
Average cash cost of palladium (per ounce)
$
394
$
427
Average cash cost of cobalt (per pound)
$
5.76
$
4.98
iv.
Cash operating margin is calculated by subtracting the average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis from the average realized selling price of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. 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 March 31
(in thousands, except for gold and palladium ounces sold and per unit amounts)
2022
2021
Total sales:
Gold
$
145,675
$
135,025
Silver
$
134,332
$
173,883
Palladium
$
9,533
$
12,275
Cobalt
$
17,704
$
2,936
Divided by:
Total gold ounces sold
77,901
75,104
Total silver ounces sold
5,553
6,657
Total palladium ounces sold
4,075
5,131
Total cobalt pounds sold
511
132
Equals:
Average realized price of gold (per ounce)
$
1,870
$
1,798
Average realized price of silver (per ounce)
$
24.19
$
26.12
Average realized price of palladium (per ounce)
$
2,339
$
2,392
Average realized price of cobalt (per pound)
$
34.61
$
22.19
Less:
Average cash cost of gold 1 (per ounce)
$
(477)
$
(450)
Average cash cost of silver 1 (per ounce)
$
(5.10)
$
(6.33)
Average cash cost of palladium 1 (per ounce)
$
(394)
$
(427)
Average cash cost of cobalt 1 (per pound)
$
(5.76)
$
(4.98)
Equals:
Cash operating margin per gold ounce sold
$
1,393
$
1,348
As a percentage of realized price of gold
74%
75%
Cash operating margin per silver ounce sold
$
19.09
$
19.79
As a percentage of realized price of silver
79%
76%
Cash operating margin per palladium ounce sold
$
1,945
$
1,965
As a percentage of realized price of palladium
83%
82%
Cash operating margin per cobalt pound sold
$
28.85
$
17.21
As a percentage of realized price of cobalt
83%
78%
1) Please refer to non-IFRS measure (iii), above.
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.sedar.com.
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 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 for years subsequent to 2010, 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 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 of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), 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, 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 for years subsequent to 2010 (including whether there will be any material change in the Company's facts or change in law or jurisprudence), potential implementation of a 15% global minimum tax, 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.sedar.com , Wheaton's Form 40-F for the year ended December 31, 2021 and Form 6-K filed March 31, 2022 both 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): 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 for years subsequent to 2010 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 for years subsequent to 2010), 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.
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SOURCE Wheaton Precious Metals Corp.