FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS Wheaton Precious Metals Generates Strong Cash Operating Margins in 2022 “Wheaton’s portfolio of long -life, low-cost assets delivered over $1 billion in revenue and over
March 9, 2023 Vancouver, British Columbia Designated News Release FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Wheaton Precious Metals Generates Strong Cash Operating Margins in 2022
“Wheaton’s portfolio of long-life, low-cost assets delivered over $1 billion in revenue and over $740 million in operating cash flow in 2022. This strong financial performance reflects the resiliency of Wheaton’s streaming business model, which delivers amongst the highest margins in the precious metals space. Even in the current inflationary environment, Wheaton averaged 75% cash operating margins in 2022,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “In addition, Wheaton took strategic steps forward by optimizing the portfolio, adding four new streams and making sector-leading commitments on the sustainability front. With one of the strongest balance sheets in the industry, we enter 2023 exceptionally well-positioned to deliver long-term shareholder value through the significant organic growth profile already embedded in the portfolio as well as through additional accretive acquisitions.”
Solid Financial Results and Strong Balance Sheet
- Fourth Quarter of 2022: $236 million in revenue, $172 million in operating cash flow, $166 million in net earnings and $104 million in adjusted net earnings1
- Full Year of 2022: $1,065 million in revenue, $743 million in operating cash flow, $669 million in net earnings and $505 million in adjusted net earnings1
- A cash balance of $696 million and no debt as at December 31, 2022
- Undrawn US$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 production of 148,300 ounces in the Fourth Quarter of 2022 and 638,100 for the Full Year of 2022
- Average annual production for the ten-year period ending December 31, 2032, is expected to be approximately 850,000 gold equivalent ounces (“GEOs”)2,3,5
- Completed the previously disclosed termination of the Yauliyacu precious metal purchase agreement (“PMPA”), resulting in a $51 million gain on the disposition in the fourth quarter
Leadership in Sustainability
- Top Rankings: #1 out of 114 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
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Operational Overview
| (all figures in US dollars unless otherwise noted) | Q4 2021 Change | 2021 Change | ||||
| Q4 2022 | 2022 | |||||
| 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 | 87,296 (19.7)% 6,356 (15.8)% 4,733 (18.3)% 381 (66.4)% 184,551 (19.6)% 79,622 (13.3)% 5,116 (3.5)% 4,641 (26.8)% 228 (18.0)% 157,439 (9.7)% 11,252 23,122 | 341,521 (16.0)% 25,999 (7.7)% 20,908 (25.9)% 2,293 (68.4)% 754,591 (15.4)% 312,465 (6.2)% 22,860 (5.6)% 19,344 (22.1)% 886 17.2 % 656,074 (5.9)% 33,628 80,683 | ||||
| 70,099 | 286,805 | |||||
| 5,352 | 23,997 | |||||
| 3,869 | 15,485 | |||||
| 128 | 724 | |||||
| 148,323 | 638,113 | |||||
| 68,996 | 293,234 | |||||
| 4,935 | 21,570 | |||||
| 3,396 | 15,076 | |||||
| 187 | 1,038 | |||||
| 142,190 | 617,450 | |||||
| (11,870) | (47,055) | |||||
| Revenue Net earnings Per share Adjusted net earnings 1 Per share 1 Operating cash flows Per share 1 | $ | 236,051 | $ 278,197 (15.1)% $ 291,822 (43.1)% $ 0.648 (43.4)% $ 132,232 (21.5)% $ 0.293 (21.8)% $ 195,290 (11.9)% $ 0.433 (12.0)% | $ | 1,065,053 | $ 1,201,665 (11.4)% $ 754,885 (11.4)% $ 1.677 (11.6)% $ 592,079 (14.7)% $ 1.315 (15.0)% $ 845,145 (12.0)% $ 1.878 (12.4)% |
| $ | 166,125 | $ | 669,126 | |||
| $ | 0.367 | $ | 1.482 | |||
| $ | 103,744 | $ | 504,912 | |||
| $ | 0.229 | $ | 1.118 | |||
| $ | 172,028 | $ | 743,424 | |||
| $ | 0.381 | $ | 1.646 |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2022, Salobo produced 37,900 ounces of attributable gold, a decrease of approximately 21% relative to the fourth quarter of 2021, primarily due to lower throughput and grades. According to Vale S.A.’s (“Vale”), plant availability was impacted due to additional planned and corrective maintenance performed in the fourth quarter.
Vale reports 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, the first of which started up in the fourth quarter of 2022 and the second expected to start in the first quarter of 2023.
Subsequent to the quarter, Wheaton and Vale agreed to amend the Salobo PMPA to adjust the expansion payment terms in order to provide increased flexibility for the ramp-up of the expansion while also maintaining an incentive for Vale to maximize grade on an annual basis. The expansion payment will now be phased, with Wheaton making an initial payment once actual throughput is expanded above 32 million tonnes per annum (“Mtpa”) and a second payment if actual throughput is expanded above 35 Mtpa, by January 1, 2031. The total cumulative payments will range from $283 million to $552 million, dependent at Vale’s timing for each of the production increases. In addition, Wheaton will be required to make annual payments of between $5.1 million to $8.5 million for a 10-year period following payment of the expansion payments if the Salobo mine maintains a high-grade mine plan.
Antamina: In the fourth quarter of 2022, Antamina produced 1.1 million ounces of attributable silver, a decrease of approximately 19% relative to the fourth quarter of 2021, primarily due to lower grades as per the mine plan.
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Peñasquito: In the fourth quarter of 2022, Peñasquito produced 1.8 million ounces of attributable silver, a decrease of approximately 18% relative to the fourth quarter of 2021 with lower recovery and grades as per the mine plan.
Constancia: In the fourth quarter of 2022, Constancia produced 0.7 million ounces of attributable silver and 10,500 ounces of attributable gold, an increase of approximately 13% and 6%, respectively, relative to the fourth quarter of 2021, with the increase in silver being primarily due to higher grades and recovery while the increase in gold production being primarily due to the mining of higher-grade material. According to Hudbay Minerals Inc. (“Hudbay”), gold production was lower than expected in the fourth quarter as a result of short-term changes in the mine plan that prioritized the processing of lower grade stockpiles and shorter-haulage distance ore from the Constancia pit versus higher-grade ore from the Pampacancha pit. These changes were implemented by Hudbay to ration fuel during a period of nation-wide social unrest and road blockades following a change in Peru's political leadership in early December 2022, and ensured the plant continued to operate uninterrupted.
Sudbury: In the fourth quarter of 2022, Vale’s Sudbury mines produced 6,300 ounces of attributable gold, an increase of approximately 45% relative to the fourth quarter of 2021, primarily due to higher throughput as fourth quarter 2021 production was impacted by the temporary closure of the Totten Mine after the shaft was damaged on September 26, 2021.
Stillwater: In the fourth quarter of 2022, the Stillwater mines produced 2,200 ounces of attributable gold and 3,900 ounces of attributable palladium, a decrease of approximately 18% for gold and 18% for palladium relative to the fourth quarter of 2021. As per Sibanye-Stillwater Limited (“Sibanye”), the ramp-up of production post the regional flood event in early June 2022 progressed well, with production rates normalising during Q4 2022. 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 fourth quarter of 2022, San Dimas produced 10,000 ounces of attributable gold, a decrease of approximately 27% relative to the fourth quarter of 2021, primarily due to the mining of lower grade material. According to First Majestic Silver Corp., silver and gold grades were impacted primarily due to the processing of lower grade development ores from the Perez vein and higher tonnages from underground areas with challenging ground conditions within the Jessica and Regina veins in the Noche Buena area.
Other Gold: In the fourth quarter of 2022, total Other Gold attributable production was 3,100 ounces, a decrease of approximately 63% relative to the fourth quarter of 2021, primarily due to the closure of the 777 mine in June 2022.
Other Silver: In the fourth quarter of 2022, total Other Silver attributable production was 1.8 million ounces, a decrease of approximately 19% relative to the fourth quarter of 2021, primarily due to the placement of Stratoni into care and maintenance, the closure of the 777 mine and the termination of the Keno Hill and Yauliyacu PMPAs.
Voisey’s Bay: In the fourth quarter of 2022, the Voisey's Bay mine produced 128,000 pounds of attributable cobalt, a decrease of approximately 66% relative to the fourth quarter of 2021, 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 physical completion of the Voisey’s Bay underground mine extension was 81% at the end of the fourth quarter. In the second quarter of 2021, Vale achieved
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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.
Fourth Quarter Development Asset Highlights
Blackwater Project: Artemis Gold Inc. (“Artemis”) announced that it had executed an order for construction equipment required for major construction activities with the initial fleet expected to be delivered in early Q2 2023. In addition, plant site preparation is well advanced with the majority of the bulk earth works completed, and work on the construction camp is proceeding on schedule with 150 rooms and kitchen facilities on track to be ready for occupation by the end of February. Artemis also announced that it has closed the $385 million project loan facility to fund a significant component of the estimated construction costs of the Blackwater project. On March 9, 2023, Artemis announced the approval of its BC Mines Act Permit for the Blackwater project. The approval of the BC Mines Act Permit is the final step required to allow Artemis to commence major works construction activities at the Blackwater Mine in Q1 2023 with the expectation of an initial gold pour in the second half of 2024.
Copper World Complex: Hudbay reports that it has executed a new strategy at Copper World focused on project de-risking and a two-phase mine plan with the first phase located on private land claims. The pre-feasibility study for Phase I of Copper World is well-advanced with the main facility engineering completed and metallurgical test work being analyzed as part of the concentrate leaching trade off evaluations. The pre-feasibility study is expected to be released in the second quarter of 2023.
Goose Project: Subsequent to the quarter, Sabina Gold & Silver Corp. (“Sabina”) announced that it had entered into a definitive agreement (the “Agreement”) pursuant to which B2Gold Corp. has agreed to acquire all of the issued and outstanding shares of Sabina.
Marathon Project: Generation Mining Limited (“Gen Mining”) announced that the Marathon Project was approved by the joint Federal and Provincial Environmental Assessment process, and that they will now proceed to obtain the necessary permits for construction and operation.
Curipamba Project: Adventus Mining Corporation (“Adventus”) announced that the Government of Ecuador has signed the Investment Contract in support of the development of the El Domo deposit, which is part of the Curipamba Project.
Portfolio Optimization
Yauliyacu: On August 18, 2022, the Company announced that it had entered into an agreement with Glencore plc ("Glencore") to terminate its silver stream on the Yauliyacu mine in Peru for a cash payment of $150 million, less the aggregate value of any deliveries to Wheaton, prior to closing, of silver produced subsequent to December 31, 2021. The transaction closed on December 6, 2022, and the Company received a cash payment of $132 million. The Yauliyacu PMPA was terminated on December 14, 2022.
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Financial Review Revenues
Revenue was $236 million in the fourth quarter of 2022 representing a 15% decrease from the fourth quarter of 2021 due primarily to a 10% decrease in the number of GEOs³ sold; and a 6% decrease in the average realized gold equivalent³ price.
Revenue was $1,065 million in the year ended December 31, 2022, representing an 11% decrease from 2021 due primarily to a 6% decrease in the number of gold equivalent³ ounces sold; and a 6% decrease in the average realized gold equivalent³ price.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2022 were $434 per GEO² as compared to $433 in the fourth quarter of 2021. This resulted in a cash operating margin¹ of $1,226 per GEO³ sold, a decrease of 8% as compared with the fourth quarter of 2021.
Average cash costs¹ in 2022 were $433 per GEO² as compared to $439 in 2021. This resulted in a cash operating margin¹ of $1,292 per GEO³ sold, a 7% decrease from the 2021.
Balance Sheet (at December 31, 2022)
- Approximately $696 million of cash on hand.
- During the fourth quarter of 2022, the Company made upfront cash payments totaling $44 million relative to PMPAs.
- 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.
Reserves and Resources (at December 31, 2022)
- Proven and Probable Mineral Reserves attributable to Wheaton were 13.90 million ounces of gold compared with 14.04 million ounces as reported in Wheaton’s 2021 Annual Information Form (“AIF”), a decrease of 1%; 489.2 million ounces of silver compared with 564.6 million ounces, decrease of 13%; 0.60 million ounces palladium compared with 0.63 million ounces, a decrease of 3%; 0.17 million ounces of platinum, unchanged; and 33.2 million pounds of cobalt compared to 31.4 million pounds, an increase of 6%. On a GEO3 basis, total Proven and Probable Mineral Reserves for all metals attributable to Wheaton were 21.27 million ounces, a decrease of 5% with 2% related to the terminations of the Yauliyacu and Keno Hill streams and the closure of the 777 mine.
- Measured and Indicated Mineral Resources attributable to Wheaton were 5.47 million ounces of gold compared with 5.44 million ounces as reported in Wheaton’s 2021 AIF, an increase of 1%; 674.8 million ounces of silver compared with 767.8 million ounces, a decrease of 12%; 0.09 million ounces of palladium compared to 0.12 million ounces, a decrease of 28%; 0.097 million ounces of platinum, unchanged; and 1.5 million pounds of cobalt, unchanged. On a GEO3 basis, total Measured and Indicated Mineral Resources for all metals attributable to Wheaton were 14.38 million ounces, a decrease of 8% with 6% related to the terminations of the Yauliyacu and Keno Hill streams.
- Inferred Mineral Resources attributable to Wheaton were 4.69 million ounces of gold compared with 4.98 million ounces as reported in Wheaton’s 2021 AIF, a decrease of 6%; 327.9 million ounces of silver compared with 461.1 million ounces, a decrease of 29%, 0.35 million ounces of palladium, unchanged; 0.017 million ounces of platinum, unchanged; and 7.8 million pounds of cobalt compared to 6.8, an increase of 13%. On a GEO3 basis, total
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Inferred Mineral Resources for all metals attributable to Wheaton were 9.37 million ounces, a decrease of 18% with 13% related to the terminations of the Yauliyacu and Keno Hill streams.
Estimated attributable reserves and resources contained in this press release are based on information available to the Company as of March 2, 2023, and therefore will not reflect updates, if any, after that date. Updated reserves and resources data incorporating year-end 2022 estimates will also be included in the Company's 2022 Annual Information Form. Wheaton’s most current attributable reserves and resources, as of December 31, 2022, can be found on the Company’s website at www.wheatonpm.com.
Sustainability Community Investment Program:
- In 2022, Wheaton’s contribution to the Nature Trust of B.C. was directed towards the Shoal Creek Estuary in an effort to acquire, protect and enhance estuaries along the B.C. coastline. In the fourth quarter, the Fall Gala Presented by Wheaton raised over $1.5 million in support of The Nature Trust’s conservation programs.
- In 2022, Wheaton made a $1 million commitment to the British Columbia Institute of Technology’s Inspire Campaign aimed at transforming the campus into a dynamic new learning environment.
- In the fourth quarter, the Sports Celebrities Festival Presented by Wheaton Precious Metals raised over CA$550,000 in support of Special Olympics BC and the Canucks for Kids Fund.
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 as well as the 5-year average and 10-year annual gold equivalent production is as follows:
| Metal | 2023 Forecast2 | 5-year Annual | 10-year Annual | ||
|---|---|---|---|---|---|
| Average | Average | ||||
| (2023-2027)2,5 | (2023-2032)2,5 | ||||
| Gold Ounces | 320,000 to 350,000 | ||||
| Silver Ounces (‘000s) | 20,000 to 22,000 | ||||
| Other Metals (Palladium & Cobalt) (GEOs3) | 22,000 to 25,000 | ||||
| Total Gold Equivalent Ounces3 | 600,000 to 660,000 | 810,000 | 850,000 |
In 2023, gold equivalent production is forecast to be slightly higher than 2022 as expected stronger attributable production from Salobo and Constancia is forecast to be offset by weaker production from Antamina and the termination of the silver stream on Yauliyacu. Attributable production is forecast to increase at Salobo as a result of uninterrupted operations as well as
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the start-up of the Salobo III mine expansion and at Constancia due to higher grades associated with the mining of the Pampacancha deposit. Attributable production is forecast to decrease a Antamina due to lower grades as per the mine plan.
Average forecast production over the next five years is expected to increase primarily due to anticipated continued production growth from Salobo, Stillwater, Constancia, Voisey’s Bay and Marmato as well as incremental production ounces from Blackwater, Toroparu, Marathon, Copper World Complex and Santo Domingo towards the latter end of the forecast period. Average forecast production over the next ten years includes additional incremental production from the Fenix project, Kutcho project and the Victor mine in Sudbury. Vale S.A. has indicated the potential for an additional expansion after the Salobo III expansion, but Wheaton does not currently include this in its forecast. Lastly, although Barrick Gold Corp. continues to advance a comprehensive review of the Pascua Lama project, Wheaton does not include any production from the project in its estimated average ten-year production guidance.
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, March 10, 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:
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: 94667668 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 March 17, 2023 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-888 390-0541 Dial from outside Canada or the US: 1-416-764-8677 Pass code: 667668 # 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
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(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 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 March 9, 2023, titled “Wheaton Precious Metals Declares Quarterly Dividend.”
2 Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
3 Company reports & S and P Capital IQ est. of 2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs relating to 2022 production, which are provided to assist the reader, are based on the following commodity price assumptions: gold $1,800/oz, silver $24/oz, palladium $2,100/oz and cobalt $33/lb. GEOs relating to 2023 outlook 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 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.
5 Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo outside of the project currently in construction. In addition, five-year guidance also does not include any production from Kutcho, or the Victor project at Sudbury.
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Consolidated Statements of Earnings
Years Ended December 31
| (US dollars and shares in thousands, except per share amounts) | 2022 | 2021 | |||
| Sales | $ | 1,065,053 | $ 1,201,665 | ||
| Cost of sales Cost of sales, excluding depletion Depletion | $ 287,947 254,793 | ||||
| $ | 267,621 | ||||
| 231,952 | |||||
| Total cost of sales | $ | 499,573 | $ 542,740 | ||
| Gross margin General and administrative expenses Share based compensation Donations and community investments Impairment (impairment reversal) of mineral stream interests | $ | 565,480 | $ 658,925 35,119 19,265 6,601 (156,717) | ||
| $ | 565,480 | ||||
| 35,831 | |||||
| 20,060 | |||||
| 6,296 | |||||
| (8,611) | |||||
| Earnings from operations Gain on disposal of mineral stream interest Other (income) expense | $ | 511,904 | $ 754,657 - (5,776) | ||
| $ | 511,904 | ||||
| (155,868) | |||||
| (7,449) | |||||
| Earnings before finance costs and income taxes Finance costs | $ | 675,221 | $ 760,433 5,817 | ||
| $ | 675,221 | ||||
| 5,586 | |||||
| Earnings before income taxes Income tax (expense) recovery | $ | 669,635 | $ 754,616 269 | ||
| $ | 669,635 | ||||
| (509) | |||||
| Net earnings | $ | 669,126 | $ 754,885 | ||
| Basic earnings per share Diluted earnings per share Weighted average number of shares outstanding Basic Diluted | $ | 1.482 | $ 1.677 $ 1.673 450,138 451,170 | ||
| $ | 1.479 | ||||
| 451,570 | |||||
| 452,344 |
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Consolidated Balance Sheets
| (US dollars in thousands) | As at December 31 | As at December 31 2021 | |||
|---|---|---|---|---|---|
| 2022 | |||||
| Assets Current assets Cash and cash equivalents Accounts receivable Cobalt inventory Other | $ 226,045 11,577 8,712 3,390 | ||||
| $ | 696,089 | ||||
| 10,187 | |||||
| 10,530 | |||||
| 3,287 | |||||
| Total current assets | $ | 720,093 | $ 249,724 | ||
| Non-current assets Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Long-term equity investments Refundable deposit - 777 PMPA Convertible notes receivable Property, plant and equipment Other | $ 5,905,797 34,741 6,606 61,477 - 17,086 5,509 15,211 | ||||
| $ | 5,707,019 | ||||
| 46,092 | |||||
| 6,606 | |||||
| 256,095 | |||||
| 8,073 | |||||
| - | |||||
| 4,210 | |||||
| 11,718 | |||||
| Total non-current assets | $ | 6,039,813 | $ 6,046,427 | ||
| Total assets | $ | 6,759,906 | $ 6,296,151 | ||
| Liabilities Current liabilities Accounts payable and accrued liabilities Current taxes payable Current portion of performance share units Current portion of lease liabilities | $ 13,939 132 14,807 813 | ||||
| $ | 12,570 | ||||
| 2,763 | |||||
| 14,566 | |||||
| 818 | |||||
| Total current liabilities | $ | 30,717 | $ 29,691 | ||
| Non-current liabilities Performance share units Lease liabilities Deferred income taxes Pension liability | 11,498 2,060 100 2,685 | ||||
| 6,673 | |||||
| 1,152 | |||||
| 165 | |||||
| 3,524 | |||||
| Total non-current liabilities | $ | 11,514 | $ 16,343 | ||
| Total liabilities | $ | 42,231 | $ 46,034 | ||
| Shareholders' equity Issued capital Reserves Retained earnings | $ 3,698,998 47,036 2,504,083 | ||||
| $ | 3,752,662 | ||||
| 66,547 | |||||
| 2,898,466 | |||||
| Total shareholders' equity | $ | 6,717,675 | $ 6,250,117 | ||
| Total liabilities and shareholders' equity | $ | 6,759,906 | $ 6,296,151 |
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Consolidated Statements of Cash Flows
Years Ended December 31
| (US dollars in thousands) | 2022 | 2021 | |||
| Operating activities Net earnings Adjustments for Depreciation and depletion Gain on disposal of mineral stream interest Impairment (reversal of impairment) of mineral stream interests Interest expense Equity settled stock based compensation Performance share units Pension expense Income tax expense (recovery) Loss (gain) on fair value adjustment of share purchase warrants held Fair value (gain) loss on convertible note receivable Investment income recognized in net earnings Other Change in non-cash working capital | $ 754,885 256,685 - (156,717) 352 5,262 (2,925) 1,014 (269) 2,101 (5,733) (462) (510) (8,072) | ||||
| $ | 669,126 | ||||
| 233,539 | |||||
| (155,868) | |||||
| (8,611) | |||||
| 91 | |||||
| 5,846 | |||||
| (4,196) | |||||
| 1,033 | |||||
| 509 | |||||
| 1,033 | |||||
| 1,033 | |||||
| 1,380 | |||||
| (6,774) | |||||
| (1,313) | |||||
| 1,573 | |||||
| Cash generated from operations before income taxes and interest Income taxes recovered (paid) Interest paid Interest received | $ | 737,368 | $ 845,611 (279) (429) 242 | ||
| (171) | |||||
| (93) | |||||
| 6,320 | |||||
| Cash generated from operating activities | $ | 743,424 | $ 845,145 | ||
| Financing activities Bank debt repaid Credit facility extension fees Share purchase options exercised Lease payments Dividends paid | $ (195,000) (1,727) 7,953 (780) (218,052) | ||||
| $ | - | ||||
| (1,357) | |||||
| 10,368 | |||||
| (800) | |||||
| (237,097) | |||||
| Cash (used for) generated from financing activities | $ | (228,886) | $ (407,606) | ||
| Investing activities Mineral stream interests Early deposit mineral stream interests Mineral royalty interest Net proceeds on disposal of mineral stream interests Acquisition of long-term investments Proceeds on disposal of long-term investments Dividends received Other | $ (520,891) (1,500) (3,571) - (7,453) 129,753 221 (775) | ||||
| $ | (151,929) | ||||
| (1,500) | |||||
| - | |||||
| 131,763 | |||||
| (22,768) | |||||
| - | |||||
| 453 | |||||
| (316) | |||||
| Cash (used for) generated from investing activities | $ | (44,297) | $ (404,216) | ||
| Effect of exchange rate changes on cash and cash equivalents | $ | (197) | $ 39 | ||
| Increase in cash and cash equivalents Cash and cash equivalents, beginning of year | $ | 470,044 | $ 33,362 192,683 | ||
| $ | 470,044 | ||||
| 226,045 | |||||
| Cash and cash equivalents, end of year | $ | 696,089 | $ 226,045 |
- 12 -
Summary of Units Produced
| Q4 2021 Q3 2021 Q2 2021 Q1 2021 | |||||
|---|---|---|---|---|---|
| Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||
| Gold ounces produced ² Salobo Sudbury 3 Constancia San Dimas 4 Stillwater 5 Other Minto 777 6 Marmato | 48,235 55,205 55,590 46,622 4,379 148 4,563 7,004 9,857 8,533 5,525 2,453 13,714 11,936 11,478 10,491 2,664 2,949 2,962 3,041 3,506 1,703 3,206 2,638 4,462 4,717 5,035 6,280 479 433 1,713 - | ||||
| 37,939 | 44,212 | 34,129 | 44,883 | ||
| 6,342 | 3,437 | 5,289 | 5,362 | ||
| 10,496 | 7,196 | 8,042 | 6,311 | ||
| 10,037 | 11,808 | 10,044 | 10,461 | ||
| 2,185 | 1,833 | 2,171 | 2,497 | ||
| 2,567 | 3,182 | 2,480 | 4,060 | ||
| - | - | 3,509 | 4,003 | ||
| 533 | 542 | 778 | 477 | ||
| Total Other | 3,100 | 3,724 | 6,767 | 8,540 | 8,447 6,853 9,954 8,918 |
| Total gold ounces produced | 87,296 85,624 90,072 78,529 | ||||
| 70,099 | 72,210 | 66,442 | 78,054 | ||
| 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 | 2,145 2,180 2,026 2,202 1,366 1,548 1,558 1,577 578 521 468 406 37 17 26 31 482 658 457 420 382 372 629 737 129 18 164 165 44 25 33 21 522 362 408 345 325 314 400 474 213 199 183 230 7 10 39 - 30 44 55 27 96 81 83 130 | ||||
| 1,761 | 2,017 | 2,089 | 2,219 | ||
| 1,107 | 1,377 | 1,379 | 1,260 | ||
| 655 | 564 | 584 | 506 | ||
| 23 | 23 | 23 | 42 | ||
| 664 | 642 | 739 | 577 | ||
| 261 | 463 | 756 | 637 | ||
| - | - | - | - | ||
| 33 | 42 | 25 | 45 | ||
| 369 | 323 | 345 | 344 | ||
| 313 | 246 | 292 | 287 | ||
| 157 | 179 | 169 | 186 | ||
| 9 | 7 | 8 | 11 | ||
| - | - | 48 | 20 | ||
| - | - | 80 | 91 | ||
| Total Other | 1,829 | 1,925 | 2,485 | 2,240 | 2,267 2,100 2,477 2,580 |
| Total silver ounces produced | 6,356 6,349 6,529 6,765 | ||||
| 5,352 | 5,883 | 6,537 | 6,225 | ||
| Palladium ounces produced ² Stillwater 5 | 4,733 5,105 5,301 5,769 | ||||
| 3,869 | 3,229 | 3,899 | 4,488 | ||
| Cobalt pounds produced ² Voisey's Bay | 381 370 380 1,162 ¹¹ | ||||
| 128 | 226 | 136 | 234 | ||
| GEOs produced 12 | 148,323 | 158,554 | 160,646 | 170,590 | 184,551 183,012 190,272 196,756 |
| Average payable rate 2 Gold Silver Palladium Cobalt GEO 12 | |||||
| 94.9% | 95.0% | 95.1% | 95.2% | 96.0% 96.0% 95.8% 95.0% 86.0% 86.6% 86.9% 86.6% 92.2% 94.5% 95.0% 91.6% 93.3% 93.3% 93.3% 93.3% 91.4% 91.3% 91.8% 90.7% | |
| 83.5% | 85.5% | 85.5% | 86.1% | ||
| 91.7% | 95.0% | 94.6% | 92.7% | ||
| 93.3% | 93.3% | 93.3% | 93.3% | ||
| 89.2% | 90.2% | 90.1% | 90.5% |
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: 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; Q1 2021 - 429,000 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 stream in exchange for $141 million of Hecla common shares received as consideration.
11) 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.
12) GEOs, 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.