FIRST QUARTER FINANCIAL RESULTS Wheaton Precious Metals Announces Solid Start to 2023
May 4, 2023 Vancouver, British Columbia Designated News Release FIRST QUARTER FINANCIAL RESULTS
Wheaton Precious Metals Announces Solid Start to 2023
“Wheaton’s high-quality portfolio of long-life, low-cost assets delivered a solid performance to start the year, resulting in revenue of $214 million and robust cash operating margins,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “First quarter production was ahead of Company expectations, and as we continue to see positive developments at a number of our key assets including Salobo and Constancia, we expect to see significant production growth throughout 2023, culminating in a strong second half of the year. Notably, implicit in our five-year annual average production guidance, is an impressive organic growth profile of over 40%, with two-thirds coming from assets already in operation. In addition, our corporate development team remains exceptionally busy evaluating new opportunities, and as always, Wheaton is focused on ensuring our growth is both accretive and sustainable for all of our stakeholders."
Solid Financial Results and Strong Balance Sheet
- First quarter of 2023: $214 million in revenue, $135 million in operating cash flow, $111 million in net earnings and $104 million in adjusted net earnings1
- A cash balance of $800 million and no debt as at March 31, 2023
- Undrawn $2 billion revolving credit facility with a July 18, 2027 maturity date
- Declared a quarterly dividend1 of $0.15 per common share
High Quality Asset Base
- Streaming agreements on 20 operating mines and 12 development projects
- 93% of attributable production from assets in the lowest half of their respective cost curves2,3
- 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration2,4
- Attributable gold equivalent production3 (“GEOs”) of 141,800 ounces in the first quarter of 2023
- Production from Salobo in the first quarter of 2023 was 43,700 ounces of gold, an increase of over 15% relative to the fourth quarter of 2022, due to steady ramp up of the Salobo III expansion
- As per Hudbay Minerals Inc. (“Hudbay”), full mining activities at the Constancia mine resumed in the Pampacancha pit in February, with mining of higher-grade ore now expected in the second quarter of 2023, ahead of schedule
- Average annual production for the five and ten-year periods is expected to be approximately 810,000 and 850,000 GEOs2,3, respectively
Leadership in Sustainability
- Top Rankings: #1 out of 116 precious metals companies and Global Top 50 out of over 15,000 multi-sector companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS
- Commitment to Net-Zero Carbon Emissions by 2050 supported by interim targets covering all material emissions including Scope 3
- Established a sustainability linked element in connection with the revolving credit facility
- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights
- 2 -
Operational Overview
| (all figures in US dollars unless otherwise noted) | Q1 2023 | Q1 2022 Change | |
|---|---|---|---|
| Units produced Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 3 Units sold Gold ounces Silver ounces Palladium ounces Cobalt pounds Gold equivalent ounces 3 Change in PBND and Inventory Gold equivalent ounces 3 | 78,054 (6.4)% 6,225 (20.9)% 4,488 (17.4)% 234 (47.0)% 165,555 (14.3)% 77,901 (19.6)% 5,553 (32.5)% 4,075 (27.7)% 511 (36.8)% 159,082 (26.2)% (10,419) (20,868) | ||
| 73,037 | |||
| 4,927 | |||
| 3,705 | |||
| 124 | |||
| 141,831 | |||
| 62,605 | |||
| 3,749 | |||
| 2,946 | |||
| 323 | |||
| 117,383 | |||
| 10,449 | |||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 | $ | 214,465 | $ 307,244 (30.2)% $ 157,467 (29.3)% $ 0.349 (29.5)% $ 158,007 (33.9)% $ 0.350 (34.0)% $ 210,540 (35.8)% $ 0.467 (36.0)% |
| $ | 111,391 | ||
| $ | 0.246 | ||
| $ | 104,431 | ||
| $ | 0.231 | ||
| $ | 135,104 | ||
| $ | 0.299 |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Financial Review Revenues
Revenue was $214 million (56% gold, 40% silver, 2% palladium and 2% cobalt), with the $93 million decrease being primarily due to the cessation of production from Yauliyacu, 777 and Keno Hill coupled with relative changes in the GEOs produced but not yet delivered3 and a 5% decrease in the average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2023 were $443 per GEO² as compared to $440 in the first quarter of 2022. This resulted in a cash operating margin¹ of $1,384 per GEO³ sold, a decrease of 7% as compared with the first quarter of 2022.
Cash Flow from Operations
Operating cashflow amounted to $135 million, with the $75 million decrease being due primarily to the lower cash operating margin and the payout of the Company’s performance share units in the first quarter of 2023 while in 2022 they were paid in the second quarter.
Balance Sheet (at March 31, 2023)
- Approximately $800 million of cash on hand
- During the first quarter of 2023, the Company made an upfront cash payment of $31 million relative to the Goose PMPA
- With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests
- 3 -
First Quarter Operating Asset Highlights
Salobo: In the first quarter of 2023, Salobo produced 43,700 ounces of attributable gold, virtually unchanged relative to the first quarter of 2022, with higher grades and throughput offset by lower recovery. According to Vale S.A. (“Vale”), production in the first quarter was impacted by planned and corrective maintenance activities, with additional maintenance planned for the second quarter.
Vale reports that the Salobo III mine expansion project, which will increase the mill throughput by 50%, successfully commenced at the end of 2022. The project consists of two lines, both of which are already in operation, and is expected to reach full capacity in the fourth quarter of 2024.
Antamina: In the first quarter of 2023, Antamina produced 0.9 million ounces of attributable silver, a decrease of approximately 31% relative to the first quarter of 2022, primarily due to lower grades as per the mine plan.
Peñasquito: In the first quarter of 2023, Peñasquito produced 2.1 million ounces of attributable silver, a decrease of approximately 6% relative to the first quarter of 2022 due to lower recoveries partially offset by higher grades.
Constancia: In the first quarter of 2023, Constancia produced 0.6 million ounces of attributable silver and 6,900 ounces of attributable gold, an increase of approximately 9% for both metals relative to the first quarter of 2022, with the increase in both metals being primarily due to higher throughput and grades. As per Hudbay, full mining activities resumed in the Pampacancha pit in February and the period of higher stripping from March to June is progressing well, with mining of higher-grade ore now expected in the second quarter of 2023, ahead of schedule.
Sudbury: In the first quarter of 2023, Vale’s Sudbury mines produced 6,200 ounces of attributable gold, an increase of approximately 16% relative to the first quarter of 2022. As per Vale, higher production from Sudbury was driven by greater mine performance and stability in the first quarter.
Stillwater: In the first quarter of 2023, the Stillwater mines produced 2,000 ounces of attributable gold and 3,700 ounces of attributable palladium, a decrease of approximately 21% for gold and 17% for palladium relative to the first quarter of 2022. As reported by Sibanye-Stillwater Limited (“Sibanye”) on March 13, 2023, an incident occurred at the Stillwater mine during scheduled nonroutine maintenance resulting in structural damage to the shaft headgear, winder house and winder rope. As a result, production from the Stillwater West mine below the 50 level was suspended for approximately five weeks, impacting production in the first quarter, but has since recommenced. Sibanye continues to reposition the Stillwater operations for the current skills shortage and changing macro environment and expects further normalization of production rates in 2023.
San Dimas: In the first quarter of 2023, San Dimas produced 10,800 ounces of attributable gold, virtually unchanged relative to the first quarter of 2022.
Other Gold: In the first quarter of 2023, total Other Gold attributable production was 3,500 ounces, a decrease of approximately 59% relative to the first quarter of 2022, primarily due to the closure of the 777 mine in June 2022.
Other Silver: In the first quarter of 2023, total Other Silver attributable production was 1.4 million ounces, a decrease of approximately 36% relative to the first quarter of 2022, primarily due to the closure of the 777 mine and the termination of the Keno Hill and Yauliyacu PMPAs.
- 4 -
Voisey’s Bay: In the first quarter of 2023, the Voisey's Bay mine produced 124,000 pounds of attributable cobalt, a decrease of approximately 47% relative to the first 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. Vale reports that planned maintenance activities are scheduled for the second quarter of 2023. Vale reports that physical completion of the Voisey’s Bay underground mine extension was 83% at the end of the first quarter. In the second quarter of 2021, Vale achieved the first ore production from the Reid Brook deposit, the first of two underground mines to be developed in the project. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is scheduled to start the main production ramp-up in the second half of 2023.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.
First Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. (“Artemis”) announced the approval of its BC Mines Act Permit, the final step required to allow Artemis to commence major works construction activities at the Blackwater Mine, with the expectation of an initial gold pour in the second half of 2024. In addition, Artemis announced that it issued a purchase order to Finning Canada, for the primary and ancillary mining fleet required for the initial Phase 1 of operations. Equipment deliveries to site are planned to commence late in the fourth quarter of 2023 and continue throughout the first half of 2024, in preparation for the pre-strip-mining phase. As per Artemis, the entire fleet is expected to be “shovel ready” during the second half of 2024, to meet Artemis’ operational readiness objectives and commence operations.
Copper World Complex: In January 2023, Hudbay received an approved right-of-way from the Arizona State Land Department that will allow for infrastructure such as roads, pipelines and powerlines, to connect between the properties in the company’s private land package at Copper World. Subsequent to the quarter, Hudbay announced the receipt of confirmation from the Army Corps of Engineers that Hudbay’s previous surrender of the Section 404 Clean Water Act permit for the former Rosemont project was formally accepted and revoked as requested. Clearing and grading work to prepare for the Copper World site, including the construction of roads and other facilities, continues to be underway. As per Hudbay, pre-feasibility activities for the private land Phase I of the Copper World project are well-advanced and a pre-feasibility study is expected to be released in mid-2023.
Goose Project: On April 12, 2023, Sabina Gold & Silver Corp (“Sabina”) announced that the shareholders approved the proposed acquisition by B2Gold Corp. (“B2Gold”) of all the issued and outstanding common shares of Sabina. The transaction closed April 19, 2023. Subsequent to closing, B2Gold exercised the option to acquire 33% of the stream under the Goose PMPA in exchange for a cash payment in the amount of $46 million, resulting in a gain on partial disposal of the PMPA in the amount of $5 million. B2Gold continues to advance construction of the Goose project, moving toward commencement of production in 2025 and initiating an exploration program to further define untapped potential and unlock further opportunities for growth.
Marathon Project: Generation Mining Limited (“Gen Mining”) announced positive results on the updated Feasibility Study for the Marathon Project, presenting an optimized design with increased process plant throughput. Additionally, Gen Mining finalized an offtake term sheet with Glencore
- 5 -
for copper concentrate, containing copper, palladium, platinum, gold, and silver. Finally, Gen Mining has executed a mandate letter to arrange a senior secured project finance facility of up to $400 million, with a syndicate including Export Development Canada, together with ING Capital LLC and Societe Generale S.A. acting as the Mandated Lead Arrangers. This represents a key milestone in the project financing process for the development of the Marathon Project.
Sustainability Climate Change:
- Subsequent to the quarter, on April 27, 2023, Hudbay announced the signing of a new 10year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to Hudbay’s Constancia operations in Peru. As reported by Hudbay, Hudbay’s Scope 1 and Scope 2 greenhouse gas emissions are expected to significantly decline as a result of the new Constancia renewable energy supply agreement, which should reduce Wheaton’s attributable scope 3 emissions from the Constancia mine and help advance the Company’s Net Zero targets.
Community Investment Program:
- The Daffodil Ball presented by Wheaton raised a record of over CA$3 million for the Canadian Cancer Society.
- The Pacific Salmon Foundation’s Vancouver Gala presented by Wheaton raised CA$530,000 in support of advancing critical marine science research and conservation work.
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 320,000 to 350,000 ounces of gold, 20.0 to 22.0 million ounces of silver, and 22,000 to 25,000 GEOs of other metals, resulting in production of approximately 600,000 to 660,000 GEOs, unchanged from previous guidance2,3. For the five-year period ending in 2027, the Company estimates that average production will amount to 810,000 GEOs, while for the ten-year period ending in 2032, the Company estimates that average annual production will amount to 850,000 GEOs, also unchanged from previous guidance2,3.
In accordance with Wheaton Precious Metals™ Corp.’s (“Wheaton Precious Metals”, “Wheaton” or the “Company”) MD&A and Financial Statements, reference to the Company and Wheaton includes the Company’s wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Friday, May 5, 2023, starting at 11:00 am (Eastern Time) to discuss these results. To participate in the live call please use one of the following methods:
- 6 -
To join the conference call without operator assistance, you may register and enter your phone number here to receive an instant automated call back.
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: 26164042 Live audio webcast: Webcast Link
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until May 12, 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: 164042 # Archived audio webcast: Webcast Link
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, 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.
End Note
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 4, 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- 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. 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.
- 7 -
Condensed Interim Consolidated Statements of Earnings
Three Months Ended March 31
| (US dollars and shares in thousands, except per share amounts - unaudited) | 2023 | 2022 | |||
| Sales | $ | 214,465 | $ 307,244 | ||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 69,994 57,402 | ||||
| $ | 51,964 | ||||
| 45,000 | |||||
| Total cost of sales | $ | 96,964 | $ 127,396 | ||
| Gross margin General and administrative expenses Share based compensation Donations and community investments | $ | 117,501 | $ 179,848 9,403 9,902 813 | ||
| $ | 117,501 | ||||
| 10,099 | |||||
| 7,397 | |||||
| 1,378 | |||||
| Earnings from operations Other (income) expense | $ | 98,627 | $ 159,730 170 | ||
| $ | 98,627 | ||||
| (7,562) | |||||
| Earnings before finance costs and income taxes Finance costs | $ | 106,189 | $ 159,560 1,422 | ||
| $ | 106,189 | ||||
| 1,378 | |||||
| Earnings before income taxes Income tax recovery (expense) | $ | 104,811 | $ 158,138 (671) | ||
| $ | 104,811 | ||||
| 6,580 | |||||
| Net earnings | $ | 111,391 | $ 157,467 | ||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ | 0.246 | $ 0.349 $ 0.348 450,915 451,953 | ||
| $ | 0.246 | ||||
| 452,370 | |||||
| 453,159 |
- 8 -
Condensed Interim Consolidated Balance Sheets
| (US dollars in thousands - unaudited) | As at March 31 | As at December 31 2022 | |||
|---|---|---|---|---|---|
| 2023 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Cobalt inventory Taxes receivable Other | $ 696,089 10,187 10,530 - 3,287 | ||||
| $ | 799,697 | ||||
| 9,236 | |||||
| 6,555 | |||||
| 3,228 | |||||
| 3,379 | |||||
| Total current assets | $ | 822,095 | $ 720,093 | ||
| Non-current assets Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Long-term equity investments Refundable deposit - 777 PMPA Property, plant and equipment Other | $ 5,707,019 46,092 6,606 256,095 8,073 4,210 11,718 | ||||
| $ | 5,696,889 | ||||
| 46,842 | |||||
| 6,606 | |||||
| 309,068 | |||||
| 8,232 | |||||
| 3,902 | |||||
| 11,845 | |||||
| Total non-current assets | $ | 6,083,384 | $ 6,039,813 | ||
| Total assets | $ | 6,905,479 | $ 6,759,906 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Dividends payable Current taxes payable Current portion of performance share units Current portion of lease liabilities | $ 12,570 - 2,763 14,566 818 | ||||
| $ | 9,136 | ||||
| 67,910 | |||||
| - | |||||
| 7,642 | |||||
| 828 | |||||
| Total current liabilities | $ | 85,516 | $ 30,717 | ||
| Non-current liabilities Performance share units Lease liabilities Deferred income taxes Pension liability | 6,673 1,152 165 3,524 | ||||
| 2,790 | |||||
| 941 | |||||
| 180 | |||||
| 3,598 | |||||
| Total non-current liabilities | $ | 7,509 | $ 11,514 | ||
| Total liabilities | $ | 93,025 | $ 42,231 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,752,662 66,547 2,898,466 | ||||
| $ | 3,765,954 | ||||
| 22,466 | |||||
| 3,024,034 | |||||
| Total shareholders' equity | $ | 6,812,454 | $ 6,717,675 | ||
| Total liabilities and shareholders' equity | $ | 6,905,479 | $ 6,759,906 |
- 9 -
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended March 31
| (US dollars in thousands - unaudited) | 2022 | ||
| 2023 | |||
| Operating activities Net earnings Adjustments for Depreciation and depletion Interest expense Equity settled stock based compensation Performance share units - expense Performance share units - paid Pension expense Pension paid Income tax expense (recovery) Loss (gain) on fair value adjustment of share purchase warrants held Investment income recognized in net earnings Other Change in non-cash working capital | $ 157,467 57,795 26 1,342 8,560 - 158 - 671 743 (194) (134) (15,918) | ||
| $ | 111,391 | ||
| 45,390 | |||
| 17 | |||
| 1,542 | |||
| 5,855 | |||
| (16,675) | |||
| 167 | |||
| (96) | |||
| (6,580) | |||
| (175) | |||
| (7,148) | |||
| 79 | |||
| (2,072) | |||
| Cash generated from operations before income taxes and interest Income taxes paid Interest paid Interest received | $ | 131,695 | $ 210,516 (32) (26) 82 |
| (3,344) | |||
| (18) | |||
| 6,771 | |||
| Cash generated from operating activities | $ 210,540 | ||
| $ | 135,104 | ||
| Financing activities Share purchase options exercised Lease payments | 5,772 (200) | ||
| 9,376 | |||
| (202) | |||
| Cash generated from financing activities | $ 5,572 | ||
| $ | 9,174 | ||
| Investing activities Mineral stream interests Early deposit mineral stream interests Net proceeds on disposal of mineral stream interests Acquisition of long-term investments Dividends received Other | $ (45,252) (750) - (20,135) 112 (36) | ||
| $ | (31,524) | ||
| (750) | |||
| (29) | |||
| (8,144) | |||
| - | |||
| (530) | |||
| Cash used for investing activities | $ (66,061) | ||
| $ | (40,977) | ||
| Effect of exchange rate changes on cash and cash equivalents | $ 67 | ||
| $ | 307 | ||
| Increase in cash and cash equivalents Cash and cash equivalents, beginning of period | $ 150,118 226,045 | ||
| $ | 103,608 | ||
| 696,089 | |||
| Cash and cash equivalents, end of period | $ 376,163 | ||
| $ | 799,697 |
- 10 -
Summary of Units Produced
| Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 | ||
|---|---|---|
| Q1 2023 | ||
| Gold ounces produced ² Salobo Sudbury 3 Constancia San Dimas 4 Stillwater 5 Other Minto 777 6 Marmato | 37,939 44,212 34,129 44,883 48,235 55,205 55,590 5,270 3,437 5,289 5,362 4,379 148 4,563 10,496 7,196 8,042 6,311 9,857 8,533 5,525 10,037 11,808 10,044 10,461 13,714 11,936 11,478 2,185 1,833 2,171 2,497 2,664 2,949 2,962 2,567 3,050 2,480 4,060 3,506 1,703 3,206 - - 3,509 4,003 4,462 4,717 5,035 533 542 778 477 479 433 1,713 | |
| 43,677 | ||
| 6,221 | ||
| 6,905 | ||
| 10,754 | ||
| 1,960 | ||
| 3,063 | ||
| - | ||
| 457 | ||
| Total Other | 3,520 | 3,100 3,592 6,767 8,540 8,447 6,853 9,954 |
| Total gold ounces produced | 69,027 72,078 66,442 78,054 87,296 85,624 90,072 | |
| 73,037 | ||
| Silver ounces produced 2 Peñasquito Antamina Constancia Other Los Filos 7 Zinkgruvan Yauliyacu 8 Stratoni 9 Minto Neves-Corvo Aljustrel Cozamin Marmato Keno Hill 10 777 6 | 1,761 2,017 2,089 2,219 2,145 2,180 2,026 1,107 1,377 1,379 1,260 1,366 1,548 1,558 655 564 584 506 578 521 468 14 21 35 42 37 17 26 664 642 739 577 482 658 457 261 463 756 637 382 372 629 - - - - 129 18 164 33 33 25 45 44 25 33 369 323 345 344 522 362 408 313 246 292 287 325 314 400 157 179 169 186 213 199 183 9 7 8 11 7 10 39 - - 48 20 30 44 55 - - 80 91 96 81 83 | |
| 2,077 | ||
| 872 | ||
| 552 | ||
| 28 | ||
| 525 | ||
| - | ||
| - | ||
| 29 | ||
| 352 | ||
| 343 | ||
| 141 | ||
| 8 | ||
| - | ||
| - | ||
| Total Other | 1,426 | 1,820 1,914 2,497 2,240 2,267 2,100 2,477 |
| Total silver ounces produced | 5,343 5,872 6,549 6,225 6,356 6,349 6,529 | |
| 4,927 | ||
| Palladium ounces produced ² Stillwater 5 | 3,869 3,229 3,899 4,488 4,733 5,105 5,301 | |
| 3,705 | ||
| Cobalt pounds produced ² Voisey's Bay | 128 226 136 234 381 370 380 | |
| 124 | ||
| GEOs produced 11 | 143,400 153,684 156,570 165,555 178,219 176,705 183,779 | |
| 141,831 | ||
| Average payable rate 2 Gold Silver Palladium Cobalt GEO 11 | 94.9% 95.1% 95.1% 95.2% 96.0% 96.0% 95.8% 83.5% 85.6% 85.8% 86.2% 86.0% 86.6% 86.9% 91.7% 95.0% 94.6% 92.7% 92.2% 94.5% 95.0% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 89.2% 90.3% 90.3% 90.6% 91.4% 91.3% 91.8% | |
| 95.1% | ||
| 83.2% | ||
| 96.0% | ||
| 93.3% | ||
| 89.7% |
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. 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. For reference, attributable silver production from prior periods is as follows: 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; Q3 2021 - 472,000 ounces; Q2 2021 - 467,000 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) Operations at Los Filos were 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) 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.
- 11 -
Summary of Units Sold
| Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 | ||
|---|---|---|
| Q1 2023 | ||
| Gold ounces sold Salobo Sudbury 2 Constancia San Dimas Stillwater 3 Other Minto 777 Marmato | 41,029 31,818 48,515 42,513 47,171 35,185 57,296 4,988 5,147 7,916 3,712 965 1,915 6,945 6,013 6,336 7,431 10,494 6,196 8,159 2,321 10,943 10,196 10,633 10,070 15,182 11,346 11,214 1,783 2,127 2,626 2,628 2,933 2,820 2,574 2,982 2,559 2,806 3,695 2,462 1,907 2,359 785 3,098 3,629 4,388 4,290 5,879 5,694 473 719 781 401 423 438 1,687 | |
| 35,966 | ||
| 4,368 | ||
| 6,579 | ||
| 10,651 | ||
| 2,094 | ||
| 2,341 | ||
| 126 | ||
| 480 | ||
| Total Other | 2,947 | 4,240 6,376 7,216 8,484 7,175 8,224 9,740 |
| Total gold ounces sold | 68,996 62,000 84,337 77,901 79,622 67,649 90,090 | |
| 62,605 | ||
| Silver ounces sold Peñasquito Antamina Constancia Other Los Filos Zinkgruvan Yauliyacu Stratoni Minto Neves-Corvo Aljustrel Cozamin Marmato Keno Hill 777 | 2,066 1,599 2,096 2,188 1,818 2,210 1,844 1,114 1,155 1,177 1,468 1,297 1,502 1,499 403 498 494 644 351 484 295 16 24 41 42 17 12 42 547 376 650 355 346 354 355 337 1,005 817 44 551 182 601 - - (2) 133 42 41 167 23 22 21 31 27 24 29 80 105 167 204 259 193 215 156 185 123 145 133 155 208 150 154 148 177 174 170 168 7 8 11 8 8 10 35 1 30 30 27 24 51 33 35 73 75 87 69 99 109 | |
| 1,483 | ||
| 814 | ||
| 366 | ||
| 34 | ||
| 520 | ||
| - | ||
| - | ||
| 29 | ||
| 171 | ||
| 205 | ||
| 119 | ||
| 7 | ||
| 1 | ||
| - | ||
| Total Other | 1,086 | 1,352 1,982 2,081 1,253 1,650 1,291 1,962 |
| Total silver ounces sold | 4,935 5,234 5,848 5,553 5,116 5,487 5,600 | |
| 3,749 | ||
| Palladium ounces sold Stillwater 3 | 3,396 4,227 3,378 4,075 4,641 5,703 3,869 | |
| 2,946 | ||
| Cobalt pounds sold Voisey's Bay | 187 115 225 511 228 131 395 | |
| 323 | ||
| GEOs sold 4 Cumulative payable units PBND 5 | 138,218 135,179 165,766 159,082 152,826 145,704 170,500 | |
| 117,383 | ||
| Gold ounces Silver ounces Palladium ounces Cobalt pounds GEO 4 Inventory on hand Cobalt pounds | 62,602 65,978 59,331 81,365 84,989 80,819 66,238 2,835 3,467 3,573 3,912 4,200 3,845 3,802 5,098 5,041 6,267 5,535 5,629 5,619 6,822 257 402 280 550 596 637 777 106,946 119,936 114,617 143,075 150,991 142,620 130,081 633 556 582 410 657 488 134 | |
| 69,482 | ||
| 3,223 | ||
| 5,751 | ||
| 285 | ||
| 119,775 | ||
| 398 |
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 $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.
5) Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered (“PBND”) are based on management estimates. These figures may be updated in future periods as additional information is received.
- 12 -
Results of Operations
The operating results of the Company’s reportable operating segments are summarized in the tables and commentary below.
Three Months Ended March 31, 2023
Average Realized Average Average Price Cash Cost Depletion Cash Flow Units Units ($'s ($'s Per ($'s Per Net From Total Produced² Sold Per Unit) Unit) 3 Unit) Sales Earnings Operations Assets
Gold
| Salobo | 43,677 35,966 $ 1,904 $ | 420 $ | 330 $ 68,475 $ 41,471 $ 53,355 $ 2,371,378 | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Sudbury4 | 6,221 | 4,368 | 1,904 | 400 | 1,025 | 8,317 | 2,095 | 6,346 | 278,941 |
| Constancia | 6,905 | 6,579 | 1,904 | 416 | 316 | 12,526 | 7,710 | 9,788 | 93,506 |
| San Dimas | 10,754 10,651 | 1,904 | 624 | 260 | 20,279 | 10,865 | 13,629 | 153,101 | |
| Stillwater | 1,960 | 2,094 | 1,904 | 334 | 510 | 3,987 | 2,220 | 3,288 | 214,783 |
| Other5 | 3,520 | 2,947 | 1,904 | 1,385 | 86 | 5,612 | 1,278 | 1,155 | 525,338 |
| 73,037 62,605 $ 1,904 $ | 496 $ | 360 $ 119,196 $ 65,639 $ 87,561 $ 3,637,047 |
Silver
| Peñasquito | 2,077 | 1,483 $ 22.84 $ | 4.43 $ | 4.06 $ 33,872 $ 21,276 $ 27,303 $ | 287,647 | ||||
| Antamina | 872 | 814 | 22.84 | 4.55 | 7.06 | 18,594 | 9,142 | 14,888 | 539,623 |
| Constancia | 552 | 366 | 22.84 | 6.14 | 6.24 | 8,353 | 3,825 | 6,107 | 190,664 |
| Other6 | 1,426 | 1,086 | 22.87 | 5.96 | 2.53 | 24,859 | 15,637 | 20,047 | 450,412 |
| 4,927 | 3,749 $ 22.85 $ | 5.07 $ | 4.48 $ 85,678 $ 49,880 $ 68,345 $ 1,468,346 |
Palladium
Stillwater 3,705 2,946 $ 1,607 $ 294 $ 408 $ 4,735 $ 2,666 $ 3,870 $ 225,609
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,440
Cobalt
Voisey's Bay 124 323 $ 15.04 $ 3.30 ⁷ $ 13.85 $ 4,856 $ (684) $ 4,485 $ 356,447
Operating results $ 214,465 $ 117,501 $ 164,261 $ 5,696,889
Other
| General and administrative $ (10,099) $ Share based compensation (7,397) Donations and community investments (1,378) Finance costs (1,378) Other 7,562 Income tax 6,580 | |
|---|---|
| (14,052) | |
| (16,675) | |
| (1,408) | |
| (1,067) | |
| 7,389 | |
| (3,344) |
Total other $ (6,110) $ (29,157) $ 1,208,590
$ 111,391 $ 135,104 $ 6,905,479
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 Minto and Marmato gold interests as well as the non-operating 777, 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.
6) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests and the non-operating 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.
7) Cash cost per pound of cobalt sold during the first quarter of 2023 was net of a previously recorded inventory write-down of $1 million, resulting in a decrease of $3.18 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 of the inventory at each reporting period.