Wheaton Precious Metals Announces Solid 2023 Annual Results and Transition to Progressive Dividend Policy
- Record acquisitions totaling over $1 billion in commitments in 2023.
- Annual production guidance of approximately 620,000 gold equivalent ounces achieved in 2023.
- Transition to a new progressive dividend policy with an increase in the 2024 annual dividend.
- Strong balance sheet with a cash balance of $547 million, no debt, and an undrawn $2 billion revolving credit facility.
- Ranked among the top 50 sustainable corporations globally by Sustainalytics and received top ratings from MSCI and ISS.
- Recognized among Corporate Knights' 2024 100 Most Sustainable Corporations in the world.
- Solid financial results in Q4 2023 with $313 million in revenue and $242 million in operating cash flow.
- Positive operational highlights for key assets like Salobo, Antamina, Peñasquito, and Constancia.
- Recent developments include updates on projects like Blackwater, Platreef, Goose, Marmato, Curipamba, Marathon, and Fenix.
- Revenue decrease of $49 million in 2023 compared to 2022.
- Net earnings decrease of 19.6% in 2023 compared to the previous year.
- 10.1% decrease in gold equivalent ounces sold in 2023 compared to 2022.
- Decrease in silver and palladium ounces produced/sold in Q4 2023 compared to Q4 2022.
- Production decreases in Other Gold and Other Silver in Q4 2023 compared to Q4 2022.
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
Solid Financial Results and Strong Balance Sheet
- Fourth quarter of 2023:
$313 million $242 million $168 million $165 million $0.15 - Full year of 2023:
$1,016 million $751 million $538 million $533 million - Balance Sheet: cash balance of
$547 million $2 billion $452 million
High Quality Asset Base
- Streaming and royalty agreements on 18 operating mines and 27 development projects6.
93% of attributable production from assets in the lowest half of their respective cost curves2,4.- Attributable gold equivalent production3 of 174,200 ounces in the fourth quarter of 2023 and 619,600 for the full year of 2023.
- Achieved annual production guidance for 2023 of 600,000 to 660,000 GEOs3, with sector-leading growth over the next five to ten years.
- Accretive portfolio growth:
- On October 24, 2023, the Company entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of
$115 million - On November 15, 2023, announced the Company has entered into a definitive agreement with certain entities advised by Orion Resource Partners to acquire existing streams in respect of Ivanhoe Mines' Platreef project and BMC Minerals' Kudz Ze Kayah project, for total cash consideration of up to
$455 million $75 million - On November 21, 2023, the Company and Vale jointly announced the successful completion of the throughput test for the first phase of the Salobo III expansion project in
Brazil , with the Salobo complex exceeding an average of 32 Mtpa over a 90-day period. Under the terms of the Salobo precious metals purchase agreement, the Company made a payment to Vale Base Metals totalling$370 million - On December 13, 2023, the Company entered into a royalty agreement with Vista Gold Corp. to acquire a royalty in the amount of
1% of gross revenue from the sale or disposition of minerals from the Mt Todd gold project located inAustralia for total cash consideration of$20 million
- On October 24, 2023, the Company entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of
Leadership in Sustainability
- Top Rankings: Ranked in the Global Top 50 out of over 15,000 multi-sector companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
- Subsequent to the quarter, Wheaton was recognized among Corporate Knights' 2024 100 Most Sustainable Corporations in the world. The Company will be included in the Global 100 Index, which represents a benchmark for sustainability excellence.
Operational Overview
(all figures in US dollars unless otherwise | Q4 2023 | Q4 2022 | Change | 2023 | 2022 | Change | |||||||||||
Units produced | |||||||||||||||||
Gold ounces | 113,359 | 69,027 | 64.2 % | 374,585 | 285,601 | 31.2 % | |||||||||||
Silver ounces | 4,208 | 5,303 | (20.6) % | 17,176 | 23,800 | (27.8) % | |||||||||||
Palladium ounces | 4,209 | 3,869 | 8.8 % | 15,800 | 15,485 | 2.0 % | |||||||||||
Cobalt pounds | 215 | 128 | 67.5 % | 673 | 724 | (7.1) % | |||||||||||
Gold equivalent ounces 3 | 174,222 | 142,887 | 21.9 % | 619,608 | 616,755 | 0.5 % | |||||||||||
Units sold | |||||||||||||||||
Gold ounces | 115,011 | 68,996 | 66.7 % | 327,336 | 293,234 | 11.6 % | |||||||||||
Silver ounces | 3,175 | 4,935 | (35.7) % | 14,326 | 21,570 | (33.6) % | |||||||||||
Palladium ounces | 3,339 | 3,396 | (1.7) % | 13,919 | 15,076 | (7.7) % | |||||||||||
Cobalt pounds | 288 | 187 | 54.0 % | 1,074 | 1,038 | 3.5 % | |||||||||||
Gold equivalent ounces 3 | 162,360 | 138,218 | 17.5 % | 537,608 | 598,244 | (10.1) % | |||||||||||
Change in PBND and Inventory | |||||||||||||||||
Gold equivalent ounces 3 | (2,973) | (10,191) | (7,218) | 23,674 | (40,033) | (63,707) | |||||||||||
Revenue | $ | 313,471 | $ | 236,051 | 32.8 % | $ | 1,016,045 | $ | 1,065,053 | (4.6) % | |||||||
Net earnings | $ | 168,435 | $ | 166,125 | 1.4 % | $ | 537,644 | $ | 669,126 | (19.6) % | |||||||
Per share | $ | 0.372 | $ | 0.367 | 1.4 % | $ | 1.187 | $ | 1.482 | (19.9) % | |||||||
Adjusted net earnings 1 | $ | 164,569 | $ | 103,744 | 58.6 % | $ | 533,051 | $ | 504,912 | 5.6 % | |||||||
Per share 1 | $ | 0.363 | $ | 0.229 | 58.5 % | $ | 1.177 | $ | 1.118 | 5.3 % | |||||||
Operating cash flows | $ | 242,226 | $ | 172,028 | 40.8 % | $ | 750,809 | $ | 743,424 | 1.0 % | |||||||
Per share 1 | $ | 0.535 | $ | 0.381 | 40.4 % | $ | 1.658 | $ | 1.646 | 0.7 % |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts. |
Financial Review
Revenues
Revenue in the fourth quarter of 2023 was
Revenue was
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2023 were
Average cash costs¹ in 2023 were
Cash Flow from Operations
Operating cash flow in the fourth quarter of 2023 amounted to
Operating cash flows in 2023 amounted to
Balance Sheet (at December 31, 2023)
- Approximately
$547 million - During the fourth quarter of 2023, the Company made total upfront cash payments of
$452 million $35 million - a
$10 million $17 million $20 million $370 million
- With the existing cash on hand coupled with the fully undrawn
$2 billion
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2023, Salobo produced 71,800 ounces of attributable gold, an increase of approximately
On November 21, 2023, Vale reported the successful completion of the throughput test for the first phase of the Salobo III project, with the Salobo complex exceeding an average of 32 Mtpa over a 90-day period. Under the terms of the agreement, the Company paid Salobo
Antamina: In the fourth quarter of 2023, Antamina produced 1.0 million ounces of attributable silver, a decrease of approximately
Peñasquito: In the fourth quarter of 2023, Peñasquito produced 1.0 million ounces of attributable silver, a decrease of approximately
Constancia: In the fourth quarter of 2023, Constancia produced 0.8 million ounces of attributable silver and 22,300 ounces of attributable gold, an increase of approximately
Voisey's Bay: In the fourth quarter of 2023, the Voisey's Bay mine produced 215,000 pounds of attributable cobalt, an increase of approximately
Other Gold: In the fourth quarter of 2023, total Other Gold attributable production was 700 ounces, a decrease of approximately
Other Silver: In the fourth quarter of 2023, total Other Silver attributable production was 1.3 million ounces, a decrease of approximately
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton's consolidated MD&A in the 'Results of Operations and Operational Review' section.
Recent Development Asset Updates
Blackwater Project: On December 15, 2023, Artemis announced that it has completed its first draw of
Platreef Project: On February 26, 2024, Ivanhoe Mines ("Ivanhoe") reported that while construction activities for the Platreef Phase 1 concentrator are on track for completion in the third quarter of 2024, hot commissioning and ramp-up of production are now anticipated for early 2025 in order to prioritize shaft development. An updated independent feasibility study ("FS") is planned for the second half of 2024 on an optimized development plan for Phase 2. The optimized development plan accelerates the development of Phase 2 at a total processing capacity of 4 Mtpa by equipping Shaft #3 for hoisting. An independent preliminary economic assessment ("PEA") is planned concurrently with the FS on a significantly larger Phase 3 expansion, once the major 8 Mtpa Shaft #2 is available for hoisting. A Phase 3 expansion to 10 Mtpa processing capacity is expected to rank Platreef as one of the world's largest platinum-group metal, nickel, copper and gold producers.
Goose Project: On January 23, 2024, B2Gold Corp., ("B2Gold") provided a construction update highlighting that it is progressing ahead of schedule within the mill and processing buildings, along with preparatory work for peak construction activities in the second and third quarter of 2024, with the project remaining on schedule for first gold pour in the first quarter of 2025.
Marmato Mine: On July 12, 2023, Aris Mining Corporation ("Aris Mining") announced that they have received approval from the Corporación Autónoma Regional del Caldas ("Corpocaldas"), a regional environmental authority in
Curipamba Project: Adventus Mining Corporation ("Adventus") announced that the El Domo – Curipamba project has been issued a favourable Certificate of No Affect of Water (October 2, 2023) and the environmental license for construction and operation (January 22, 2024) by the Ministry of Environment and Water of the Government of
Marathon Project: The permitting process for the Marathon project continues to advance, with Generation Mining Limited ("Gen Mining") announcing on November 7, 2023, that the province of
Fenix Project: On December 20, 2023, Rio2 reported that it had been successful in being granted approval of its Environmental Impact Assessment ("EIA"), allowing Rio2 to advance the Fenix project through statutory permitting, financing, and the currently planned recommencement of construction activities during 2024.
Copper World Complex: On September 8, 2023, Hudbay announced the results of the enhanced pre-feasibility study for Phase I of its
Cangrejos Project: On October 18, 2023, Lumina Gold Corp., ("Lumina") announced that the Cangrejos project is proceeding on schedule. Lumina has been actively executing its 2023 feasibility study drill plan with nine rigs currently at site. Lumina has signed contracts with several engineering companies for the advancement of the feasibility study. The feasibility study is expected to be completed in the first quarter of 2025. On January 18, 2024, Lumina announced results from the phase 1 mining resource conversion drilling campaign in support of the ongoing feasibility study at Cangrejos. Lumina noted that the assays from the resource infill program continue to demonstrate the exceptional continuity of grade at Cangrejos. Lumina also noted that it is operating normally at the Cangrejos project, and their activities have not been affected by the recent civil disturbances that have impacted other areas in
Corporate Development
Mineral Park Project
On October 24, 2023, the Company announced that it had entered into a PMPA (the "Mineral Park PMPA") with Waterton Copper in respect of silver production from the Mineral Park mine located in
Platreef, Kudz Ze Kayah & Curraghinalt Streams
On November 15, 2023, the Company announced that it had entered into a definitive agreement with certain entities advised by Orion Resource Partners ("Orion") to acquire existing streams in respect of Ivanhoe Mines' Platreef project (the "Platreef Gold PMPA" and the "Platreef Palladium and Platinum PMPA") and BMC Minerals' Kudz Ze Kayah project (the "KZK PMPA"). In addition, the Company entered into a new PMPA for a gold stream in respect of Dalradian Gold's Curraghinalt project (the "Curraghinalt PMPA").
- Platreef Project
Until certain delivery thresholds have been met, in respect of the existing Platreef Gold PMPA, the Company is entitled to purchase62.5% of the payable gold and in respect of the Platreef Palladium and Platinum PMPA, the Company is entitled to purchase5.25% of the payable palladium and platinum, after which the percentage of payable metal will be reduced as set forth in each of the respective PMPAs7.
- Kudz Ze Kayah Project
In respect of the existing KZK PMPA, the Company is entitled to purchase staged percentages of produced gold and payable silver ranging from6.875% to7.375% until certain delivery thresholds have been met, at which point the percentage of produced gold and payable silver will be reduced as set forth in the KZK PMPA8.
- Curraghinalt Project
In respect of the Curraghinalt PMPA, the Company is entitled to purchase3.05% of the payable gold until certain delivery thresholds have been met, at which point the percentage of payable gold will be reduced as set forth in the Curraghinalt PMPA9.
Under the agreement with Orion to purchase the Platreef and KZK PMPAs, the Company committed to pay
Mt Todd Royalty
On December 13, 2023, the Company entered into a royalty agreement with Vista Australia Pty. Ltd., a subsidiary of Vista Gold Corp. ("Vista"), in relation to the Mt Todd gold project located in
DeLamar Royalty
On February 20, 2024, the Company purchased a
Reserves and Resources (at December 31, 2023)
- Proven and Probable Mineral Reserves attributable to Wheaton were 15.1 million ounces of gold compared with 13.4 million ounces as reported in Wheaton's 2022 Annual Information Form ("AIF"), an increase of
12% ; 484.7 million ounces of silver compared with 484.6 million ounces, unchanged; 0.90 million ounces palladium compared with 0.60 million ounces, an increase of49% ; 0.52 million ounces of platinum compared with 0.18 million ounces, an increase of192% ; and 33.3 million pounds of cobalt compared to 33.2 million pounds, a decrease of3% . On a GEO5 basis, total Proven and Probable Mineral Reserves for all metals attributable to Wheaton were 21.6 million ounces compared to 19.6 million ounces, an increase of10% . - Measured and Indicated Mineral Resources attributable to Wheaton were 7.0 million ounces of gold compared with 5.5 million ounces as reported in Wheaton's 2022 AIF, an increase of
28% ; 714.6 million ounces of silver compared with 673.0 million ounces, an increase of6% ; 0.12 million ounces of palladium compared with 0.09 million ounces, an increase of36% ; 0.09 million ounces of platinum compared with 0.08 million ounces, an increase of16% ; and 1.2 million pounds of cobalt compared with 1.5 million pounds, a decrease of24% . On a GEO5 basis, total Measured and Indicated Mineral Resources for all metals attributable to Wheaton were 15.4 million ounces compared with 13.3 million ounces, an increase of15% . - Inferred Mineral Resources attributable to Wheaton were 5.1 million ounces of gold compared with 4.6 million ounces as reported in Wheaton's 2022 AIF, an increase of
10% ; 307.8 million ounces of silver compared with 326.3 million ounces, a decrease of6% , 0.37 million ounces of palladium compared with 0.35 million ounces, an increase of4% ; 0.04 million ounces of platinum compared with 0.01 million ounces, an increase of173% ; and 7.2 million pounds of cobalt compared with 7.8 million pounds, a decrease of7% . On a GEO5 basis, total Inferred Mineral Resources for all metals attributable to Wheaton were 8.9 million ounces compared with 8.6 million ounces, an increase of3% .
Estimated attributable reserves and resources contained in this press release are based on information available to the Company as of March 8, 2024, and therefore will not reflect updates, if any, after that date. Updated reserves and resources data incorporating year-end 2023 estimates will also be included in the Company's 2023 Annual Information Form. Wheaton's most current attributable reserves and resources, as of December 31, 2023, can be found on the Company's website at www.wheatonpm.com.
Sustainability
Ratings & Awards:
- Subsequent to the quarter, on January 17, 2024, the Company announced that it has ranked among Corporate Knights' 2024 100 Most Sustainable Corporations in the world. The Company will be included in the Global 100 Index, which represents a benchmark for sustainability excellence.
Community Investment Program:
- Subsequent to the quarter, on March 1, 2024, Wheaton International commenced a new program with the Vale Foundation to support an ambitious three-year initiative in
Brazil that aims to improve the primary health care being offered in the municipalities near the Salobo mine and along the Carajas railroad. The funding will support technical training and cooperation between individual health care units and relevant agencies. Through the program, equipment and furniture will be delivered to the facilities providing health care services. This initiative also looks to enhance the social protection networks among various participating agencies. The program will be carried out in 8 municipalities of Pará State, impacting approximately 550,000 individuals and in 24 municipalities of Maranhão State, impacting approximately 1.3 million individuals. Wheaton and the Vale Foundation each committed BRL$17 million . The total contribution of Wheaton and the Vale Foundation of BRL$34 million is being matched by the Brazilian Development Bank, magnifying the impact of the contribution being made by Wheaton.
Declaration of Dividend and Transition to Progressive Dividend Policy
The Company has revised its dividend policy, transitioning from distributing
On March 14, 2024, the Board of Directors declared a dividend in the amount of
2024 and Long-Term Production Outlook Using Updated 2024 Commodity Price Assumptions
It is important to note that as gold outperformed all other metals during 2023, the assumed metal prices for 2024 results in lower gold equivalency calculations1 in 2024 compared to 2023.
Metal | 2023 | 2024 | 2028 | 2029-2033 |
Gold Ounces | 374,585 | 325,000 to 370,000 | ||
Silver Ounces ('000s) | 17,176 | 18,500 to 20,500 | ||
Other Metals (GEOs5) | 12,275 | 12,000 to 15,000 | ||
Gold Equivalent Ounces5,11 | 584,389 | 550,000 to 620,000 | Over 800,000 | Over 850,000 |
2024 and long-term GEOs based on | ||||
In 2024, GEO5 production is forecast to be consistent with levels achieved in 2023, as expected stronger attributable production from Peñasquito and Voisey's Bay is forecast to be offset by lower production from Salobo, the suspension of operations at
On May 13, 2023, it was announced that operations at the Minto Mine had been suspended, and the Yukon Government had assumed care and control of the site. On September 12, 2023, it was announced that as a result of low zinc prices, the production of zinc and lead concentrates at the Aljustrel Mine would be halted from September 24, 2023, until the second quarter of 2025. Combined, the removal of production from
Long-Term Production Outlook
Historically, Wheaton has provided 5 and 10-year averages for its long-term guidance, however, the Company has elected to introduce a 5-year target (2028), in addition to an annual average for years 6 through 10 (i.e. 2029-2033), with a goal of providing increased granularity and further transparency of our expected growth trajectory.
Production is forecast to increase by approximately
From 2029 to 2033, attributable production is forecast to average over 850,000 GEOs5 in the five-year period and incorporates additional incremental production from pre-development assets including Cangrejos, Kudz ze Kayah, Curraghinalt, Victor and Kutcho projects, in addition to the Brewery Creek, Black Pine and Mt. Todd royalties.
Not included in Wheaton's long-term forecast and instead classified as 'optionality', includes potential future production from Pascua Lama, Navidad, Toroparu, Cotabambas, Metates, DeLamar and additional expansions at Salobo outside of the Salobo III mine expansion project.
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Friday, March 15, 2024, 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
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Pass code: 768302#
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 22, 2024 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
Dial from outside
Pass code: 768302#
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.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo., Vice President, Technical Services and Ryan Ulansky, P.Eng., Vice President, Engineering, for Wheaton Precious Metals 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
Consolidated Statements of Earnings
Years Ended December 31 | |||||
(US dollars and shares in thousands, except per share amounts) | 2023 | 2022 | |||
Sales | $ | 1,016,045 | $ | 1,065,053 | |
Cost of sales | |||||
Cost of sales, excluding depletion | $ | 228,171 | $ | 267,621 | |
Depletion | 214,434 | 231,952 | |||
Total cost of sales | $ | 442,605 | $ | 499,573 | |
Gross margin | $ | 573,440 | $ | 565,480 | |
General and administrative expenses | 38,165 | 35,831 | |||
Share based compensation | 22,744 | 20,060 | |||
Donations and community investments | 7,261 | 6,296 | |||
Impairment reversal of mineral stream interests | - | (8,611) | |||
Earnings from operations | $ | 505,270 | $ | 511,904 | |
Gain on disposal of mineral stream interests | 5,027 | 155,868 | |||
Other income (expense) | 34,271 | 7,449 | |||
Earnings before finance costs and income taxes | $ | 544,568 | $ | 675,221 | |
Finance costs | 5,510 | 5,586 | |||
Earnings before income taxes | $ | 539,058 | $ | 669,635 | |
Income tax expense | 1,414 | 509 | |||
Net earnings | $ | 537,644 | $ | 669,126 | |
Basic earnings per share | $ | 1.187 | $ | 1.482 | |
Diluted earnings per share | $ | 1.186 | $ | 1.479 | |
Weighted average number of shares outstanding | |||||
Basic | 452,814 | 451,570 | |||
Diluted | 453,463 | 452,344 | |||
Consolidated Balance Sheets
As at | As at | |||
(US dollars in thousands) | 2023 | 2022 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 546,527 | $ | 696,089 |
Accounts receivable | 10,078 | 10,187 | ||
Cobalt inventory | 1,372 | 10,530 | ||
Income taxes receivable | 5,935 | - | ||
Other | 3,499 | 3,287 | ||
Total current assets | $ | 567,411 | $ | 720,093 |
Non-current assets | ||||
Mineral stream interests | $ | 6,122,441 | $ | 5,707,019 |
Early deposit mineral stream interests | 47,093 | 46,092 | ||
Mineral royalty interests | 13,454 | 6,606 | ||
Long-term equity investments | 246,678 | 256,095 | ||
Property, plant and equipment | 7,638 | 4,210 | ||
Other | 26,470 | 19,791 | ||
Total non-current assets | $ | 6,463,774 | $ | 6,039,813 |
Total assets | $ | 7,031,185 | $ | 6,759,906 |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ | 13,458 | $ | 12,570 |
Income taxes payable | - | 2,763 | ||
Current portion of performance share units | 12,013 | 14,566 | ||
Current portion of lease liabilities | 604 | 818 | ||
Total current liabilities | $ | 26,075 | $ | 30,717 |
Non-current liabilities | ||||
Performance share units | $ | 9,113 | $ | 6,673 |
Lease liabilities | 5,625 | 1,152 | ||
Deferred income taxes | 232 | 165 | ||
Pension liability | 4,624 | 3,524 | ||
Total non-current liabilities | $ | 19,594 | $ | 11,514 |
Total liabilities | $ | 45,669 | $ | 42,231 |
Shareholders' equity | ||||
Issued capital | $ | 3,777,323 | $ | 3,752,662 |
Reserves | (40,091) | 66,547 | ||
Retained earnings | 3,248,284 | 2,898,466 | ||
Total shareholders' equity | $ | 6,985,516 | $ | 6,717,675 |
Total liabilities and shareholders' equity | $ | 7,031,185 | $ | 6,759,906 |
Consolidated Statements of Cash Flows
Years Ended December 31 | |||||
(US dollars in thousands) | 2023 | 2022 | |||
Operating activities | |||||
Net earnings | $ | 537,644 | $ | 669,126 | |
Adjustments for | |||||
Depreciation and depletion | 215,926 | 233,539 | |||
Gain on disposal of mineral stream interest | (5,027) | (155,868) | |||
Impairment reversal of mineral stream interests | - | (8,611) | |||
Interest expense | 207 | 91 | |||
Equity settled stock based compensation | 6,438 | 5,846 | |||
Performance share units - expense | 16,306 | 14,214 | |||
Performance share units - paid | (16,675) | (18,410) | |||
Pension expense | 1,122 | 1,033 | |||
Pension paid | (116) | - | |||
Income tax expense (recovery) | 1,414 | 509 | |||
Loss (gain) on fair value adjustment of share purchase warrants held | 31 | 1,033 | |||
Investment income recognized in net earnings | (37,178) | (6,774) | |||
Other | 1,227 | 67 | |||
Change in non-cash working capital | 1,912 | 1,573 | |||
Cash generated from operations before income taxes and interest | $ | 723,231 | $ | 737,368 | |
Income taxes paid | (6,192) | (171) | |||
Interest paid | (187) | (93) | |||
Interest received | 33,957 | 6,320 | |||
Cash generated from operating activities | $ | 750,809 | $ | 743,424 | |
Financing activities | |||||
Credit facility extension fees | $ | (859) | $ | (1,357) | |
Share purchase options exercised | 12,415 | 10,368 | |||
Lease payments | (691) | (800) | |||
Dividends paid | (265,109) | (237,097) | |||
Cash used for financing activities | $ | (254,244) | $ | (228,886) | |
Investing activities | |||||
Mineral stream interests | $ | (663,528) | $ | (151,929) | |
Early deposit mineral stream interests | (1,000) | (1,500) | |||
Mineral royalty interest | (6,833) | - | |||
Net proceeds on disposal of mineral stream interests | 46,400 | 131,763 | |||
Acquisition of long-term investments | (17,447) | (22,768) | |||
Proceeds on disposal of long-term investments | 202 | - | |||
Investment in subscription rights | (4,510) | - | |||
Dividends received | 2,317 | 453 | |||
Other | (2,247) | (316) | |||
Cash (used for) generated from investing activities | $ | (646,646) | $ | (44,297) | |
Effect of exchange rate changes on cash and cash equivalents | $ | 519 | $ | (197) | |
(Decrease) increase in cash and cash equivalents | $ | (149,562) | $ | 470,044 | |
Cash and cash equivalents, beginning of year | 696,089 | 226,045 | |||
Cash and cash equivalents, end of year | $ | 546,527 | $ | 696,089 | |
Summary of Units Produced
Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |
Gold ounces produced ² | ||||||||
Salobo | 71,778 | 69,045 | 54,804 | 43,677 | 37,939 | 44,212 | 34,129 | 44,883 |
6,256 | 3,857 | 5,818 | 6,203 | 5,270 | 3,437 | 5,289 | 5,362 | |
Constancia | 22,292 | 19,003 | 7,444 | 6,905 | 10,496 | 7,196 | 8,042 | 6,311 |
San Dimas 4 | 10,024 | 9,995 | 11,166 | 10,754 | 10,037 | 11,808 | 10,044 | 10,461 |
2,341 | 2,454 | 2,017 | 1,960 | 2,185 | 1,833 | 2,171 | 2,497 | |
Other | ||||||||
Marmato | 668 | 673 | 639 | 457 | 533 | 542 | 778 | 477 |
777 6 | - | - | - | - | - | - | 3,509 | 4,003 |
- | - | 1,292 | 3,063 | 2,567 | 3,050 | 2,480 | 4,060 | |
Total Other | 668 | 673 | 1,931 | 3,520 | 3,100 | 3,592 | 6,767 | 8,540 |
Total gold ounces produced | 113,359 | 105,027 | 83,180 | 73,019 | 69,027 | 72,078 | 66,442 | 78,054 |
Silver ounces produced 2 | ||||||||
Peñasquito 7 | 1,036 | - | 1,744 | 2,076 | 1,761 | 2,017 | 2,089 | 2,219 |
Antamina | 1,030 | 894 | 984 | 872 | 1,067 | 1,327 | 1,330 | 1,210 |
Constancia | 836 | 697 | 420 | 552 | 655 | 564 | 584 | 506 |
Other | ||||||||
Los Filos | 28 | 28 | 28 | 45 | 14 | 21 | 35 | 42 |
Zinkgruvan | 510 | 785 | 374 | 632 | 664 | 642 | 739 | 577 |
Neves-Corvo | 573 | 486 | 407 | 436 | 369 | 323 | 345 | 344 |
Aljustrel 8 | - | 327 | 279 | 343 | 313 | 246 | 292 | 287 |
Cozamin | 185 | 165 | 184 | 141 | 157 | 179 | 169 | 186 |
Marmato | 10 | 11 | 7 | 8 | 9 | 7 | 7 | 11 |
Yauliyacu 9 | - | - | - | - | 261 | 463 | 756 | 637 |
- | - | 14 | 29 | 33 | 33 | 26 | 45 | |
Keno Hill 10 | - | - | - | - | - | - | 48 | 20 |
777 6 | - | - | - | - | - | - | 80 | 91 |
Total Other | 1,306 | 1,802 | 1,293 | 1,634 | 1,820 | 1,914 | 2,497 | 2,240 |
Total silver ounces produced | 4,208 | 3,393 | 4,441 | 5,134 | 5,303 | 5,822 | 6,500 | 6,175 |
Palladium ounces produced ² | ||||||||
4,209 | 4,006 | 3,880 | 3,705 | 3,869 | 3,229 | 3,899 | 4,488 | |
Cobalt pounds produced ² | ||||||||
Voisey's Bay | 215 | 183 | 152 | 124 | 128 | 226 | 136 | 234 |
GEOs produced 11 | 174,222 | 154,786 | 146,104 | 144,497 | 142,887 | 153,025 | 155,932 | 164,911 |
Average payable rate 2 | ||||||||
Gold | 95.1 % | 95.4 % | 95.1 % | 95.1 % | 94.9 % | 95.1 % | 95.1 % | 95.2 % |
Silver | 82.9 % | 78.3 % | 83.7 % | 83.1 % | 84.2 % | 86.3 % | 86.5 % | 87.0 % |
Palladium | 95.9 % | 93.6 % | 94.1 % | 96.0 % | 91.7 % | 95.0 % | 94.6 % | 92.7 % |
Cobalt | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % |
GEO 11 | 91.5 % | 90.5 % | 90.6 % | 89.6 % | 89.6 % | 90.6 % | 90.7 % | 91.0 % |
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 |
4) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to |
5) | Comprised of the |
6) | On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
7) | There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023. |
8) | On September 12, 2023, it was announced that the production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the second quarter of 2025. |
9) | On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of |
10) | On September 7, 2022, the Company terminated the Keno Hill PMPA in exchange for |
11) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: |
Summary of Units Sold
Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | |
Gold ounces sold | ||||||||
Salobo | 76,656 | 44,444 | 46,030 | 35,966 | 41,029 | 31,818 | 48,515 | 42,513 |
5,011 | 4,836 | 4,775 | 4,368 | 4,988 | 5,147 | 7,916 | 3,712 | |
Constancia | 19,925 | 12,399 | 9,619 | 6,579 | 6,013 | 6,336 | 7,431 | 10,494 |
San Dimas | 10,472 | 9,695 | 11,354 | 10,651 | 10,943 | 10,196 | 10,633 | 10,070 |
2,314 | 1,985 | 2,195 | 2,094 | 1,783 | 2,127 | 2,626 | 2,628 | |
Other | ||||||||
Marmato | 633 | 792 | 467 | 480 | 473 | 719 | 781 | 401 |
777 | - | 275 | 153 | 126 | 785 | 3,098 | 3,629 | 4,388 |
- | - | 701 | 2,341 | 2,982 | 2,559 | 2,806 | 3,695 | |
Total Other | 633 | 1,067 | 1,321 | 2,947 | 4,240 | 6,376 | 7,216 | 8,484 |
Total gold ounces sold | 115,011 | 74,426 | 75,294 | 62,605 | 68,996 | 62,000 | 84,337 | 77,901 |
Silver ounces sold | ||||||||
Peñasquito | 442 | 453 | 1,913 | 1,483 | 2,066 | 1,599 | 2,096 | 2,188 |
Antamina | 1,091 | 794 | 963 | 814 | 1,114 | 1,155 | 1,177 | 1,468 |
Constancia | 665 | 435 | 674 | 366 | 403 | 498 | 494 | 644 |
Other | ||||||||
Los Filos | 24 | 30 | 37 | 34 | 16 | 24 | 41 | 42 |
Zinkgruvan | 449 | 714 | 370 | 520 | 547 | 376 | 650 | 355 |
Neves-Corvo | 268 | 245 | 132 | 171 | 80 | 105 | 167 | 204 |
Aljustrel | 86 | 142 | 182 | 205 | 156 | 185 | 123 | 145 |
Cozamin | 141 | 139 | 150 | 119 | 150 | 154 | 148 | 177 |
Marmato | 9 | 11 | 7 | 7 | 7 | 8 | 11 | 8 |
Yauliyacu | - | - | - | - | 337 | 1,005 | 817 | 44 |
Stratoni | - | - | - | - | - | - | (2) | 133 |
- | - | 7 | 29 | 23 | 22 | 21 | 31 | |
Keno Hill | - | - | - | 1 | 1 | 30 | 30 | 27 |
777 | - | 2 | 2 | - | 35 | 73 | 75 | 87 |
Total Other | 977 | 1,283 | 887 | 1,086 | 1,352 | 1,982 | 2,081 | 1,253 |
Total silver ounces sold | 3,175 | 2,965 | 4,437 | 3,749 | 4,935 | 5,234 | 5,848 | 5,553 |
Palladium ounces sold | ||||||||
3,339 | 4,242 | 3,392 | 2,946 | 3,396 | 4,227 | 3,378 | 4,075 | |
Cobalt pounds sold | ||||||||
Voisey's Bay | 288 | 198 | 265 | 323 | 187 | 115 | 225 | 511 |
GEOs sold 4 | 162,360 | 119,030 | 138,835 | 117,383 | 138,218 | 135,179 | 165,766 | 159,082 |
Cumulative payable units | ||||||||
Gold ounces | 99,767 | 106,947 | 81,148 | 77,377 | 70,562 | 74,053 | 67,529 | 88,679 |
Silver ounces | 1,817 | 1,504 | 1,812 | 2,531 | 2,013 | 2,481 | 2,694 | 2,922 |
Palladium ounces | 6,666 | 5,607 | 6,122 | 5,751 | 5,098 | 5,041 | 6,267 | 5,535 |
Cobalt pounds | 356 | 377 | 251 | 285 | 258 | 403 | 280 | 550 |
GEO 4 | 133,439 | 135,731 | 113,144 | 118,702 | 104,247 | 115,220 | 111,417 | 137,548 |
Inventory on hand | ||||||||
Cobalt pounds | 88 | 155 | 310 | 398 | 633 | 556 | 582 | 410 |
1) | All figures in thousands except gold and palladium ounces sold. |
2) | Comprised of the |
3) | Comprised of the |
4) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: |
5) | Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received. |
Results of Operations
The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.
Three Months Ended December 31, 2023 | ||||||||||||||||
Units | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 71,778 | 76,656 | $ | 2,005 | $ | 420 | $ | 393 | $ | 153,717 | $ | 91,390 | $ | 121,491 | $ | 2,681,419 |
6,256 | 5,011 | 2,023 | 400 | 1,145 | 10,137 | 2,394 | 8,134 | 262,485 | ||||||||
Constancia | 22,292 | 19,925 | 2,005 | 420 | 316 | 39,954 | 25,288 | 31,578 | 80,265 | |||||||
San Dimas | 10,024 | 10,472 | 2,005 | 631 | 279 | 20,999 | 11,479 | 14,395 | 144,722 | |||||||
2,341 | 2,314 | 2,005 | 352 | 510 | 4,640 | 2,645 | 3,826 | 211,469 | ||||||||
Other 5 | 668 | 633 | 2,005 | 350 | 527 | 1,269 | 714 | 1,047 | 603,689 | |||||||
113,359 | 115,011 | $ | 2,006 | $ | 437 | $ | 405 | $ | 230,716 | $ | 133,910 | $ | 180,471 | $ | 3,984,049 | |
Silver | ||||||||||||||||
Peñasquito | 1,036 | 442 | $ | 23.87 | $ | 4.43 | $ | 4.06 | $ | 10,547 | $ | 6,794 | $ | 8,589 | $ | 276,232 |
Antamina | 1,030 | 1,091 | 23.87 | 4.73 | 7.06 | 26,043 | 13,190 | 20,887 | 519,530 | |||||||
Constancia | 836 | 665 | 23.87 | 6.20 | 6.24 | 15,879 | 7,601 | 11,755 | 179,583 | |||||||
Other 6 | 1,306 | 977 | 23.55 | 4.82 | 3.22 | 22,996 | 15,138 | 18,909 | 582,113 | |||||||
4,208 | 3,175 | $ | 23.77 | $ | 5.02 | $ | 5.29 | $ | 75,465 | $ | 42,723 | $ | 60,140 | $ | 1,557,458 | |
Palladium | ||||||||||||||||
4,209 | 3,339 | $ | 1,070 | $ | 198 | $ | 445 | $ | 3,574 | $ | 1,426 | $ | 2,912 | $ | 220,667 | |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,451 |
Cobalt | ||||||||||||||||
Voisey's Bay | 215 | 288 | $ | 12.92 | $ | 3.14 ⁷ | $ | 12.80 | $ | 3,716 | $ | (871) | $ | 2,016 | $ | 350,816 |
Operating results | $ | 313,471 | $ | 177,188 | $ | 245,539 | $ | 6,122,441 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (9,244) | $ | (6,490) | ||||||||||||
Share based compensation | (6,527) | - | ||||||||||||||
Donations and community investments | (2,208) | (2,143) | ||||||||||||||
Finance costs | (1,371) | (1,083) | ||||||||||||||
Other | 7,311 | 7,351 | ||||||||||||||
Income tax | 3,286 | (948) | ||||||||||||||
Total other | $ | (8,753) | $ | (3,313) | $ | 908,744 | ||||||||||
$ | 168,435 | $ | 242,226 | $ | 7,031,185 | |||||||||||
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 |
5) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating |
6) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel, |
7) | Cash cost per pound of cobalt sold during the fourth quarter of 2023 was net of a previously recorded inventory write-down of |
On a gold equivalent basis, results for the Company for the three months ended December 31, 2023 were as follows:
Three Months Ended December 31, 2023 | |||||||
Ounces | Ounces | Average | Average | Cash | Average | Gross | |
Gold equivalent basis 4 | 174,222 | 162,360 | $ 1,931 | $ 417 | $ 1,514 | $ 422 | $ 1,092 |
1) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
3) | Refer to discussion on non-IFRS measure (iv) at the end of this press release. |
4) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: |
Three Months Ended December 31, 2022 | ||||||||||||||||||
Units | Units | Average | Average | Average | Sales | Impairment | Net | Cash Flow | Total | |||||||||
Gold | ||||||||||||||||||
Salobo | 37,939 | 41,029 | $ | 1,727 | $ | 416 | $ | 334 | $ | 70,878 | $ | - | $ | 40,110 | $ | 53,800 | $ | 2,383,262 |
5,270 | 4,988 | 1,712 | 400 | 1,092 | 8,538 | - | 1,095 | 7,809 | 283,416 | |||||||||
Constancia | 10,496 | 6,013 | 1,727 | 416 | 271 | 10,388 | - | 6,255 | 7,885 | 95,583 | ||||||||
San Dimas | 10,037 | 10,943 | 1,727 | 624 | 260 | 18,903 | - | 9,231 | 12,071 | 155,865 | ||||||||
2,185 | 1,783 | 1,727 | 309 | 429 | 3,080 | - | 1,765 | 2,530 | 215,852 | |||||||||
Other 6 | 3,100 | 4,240 | 1,713 | 894 | 59 | 7,264 | (1,719) | 1,505 | 4,697 | 494,143 | ||||||||
69,027 | 68,996 | $ | 1,725 | $ | 475 | $ | 357 | $ | 119,051 | $ | (1,719) | $ | 59,961 | $ | 88,792 | $ | 3,628,121 | |
Silver | ||||||||||||||||||
Peñasquito | 1,761 | 2,066 | $ | 21.28 | $ | 4.36 | $ | 3.57 | $ | 43,949 | $ | - | $ | 27,577 | $ | 34,943 | $ | 293,674 |
Antamina | 1,067 | 1,114 | 21.28 | 4.33 | 7.06 | 23,701 | - | 11,009 | 18,872 | 545,368 | ||||||||
Constancia | 655 | 403 | 21.28 | 6.14 | 6.35 | 8,572 | - | 3,538 | 6,098 | 192,947 | ||||||||
Other 7 | 1,820 | 1,352 | 22.15 | 6.19 | 5.03 | 29,953 | 51,443 | 66,228 | 20,283 | 453,096 | ||||||||
5,303 | 4,935 | $ | 21.52 | $ | 5.00 | $ | 4.98 | $ | 106,175 | $ | 51,443 | $ | 108,352 | $ | 80,196 | $ | 1,485,085 | |
Palladium | ||||||||||||||||||
3,869 | 3,396 | $ | 1,939 | $ | 357 | $ | 399 | $ | 6,586 | $ | - | $ | 4,018 | $ | 5,373 | $ | 226,812 | |
Platinum | ||||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | - | $ | 9,428 |
Cobalt | ||||||||||||||||||
Voisey's Bay | 128 | 187 | $ | 22.62 | $ | 16.52 ⁸ | $ | 13.72 | $ | 4,239 | $ | - | $ | (1,426) | $ | 3,766 | $ | 357,573 |
Operating results | $ | 236,051 | $ | 49,724 | $ | 170,905 | $ | 178,127 | $ | 5,707,019 | ||||||||
Other | ||||||||||||||||||
General and administrative | $ | (8,383) | $ | (6,385) | ||||||||||||||
Share based compensation | (8,474) | - | ||||||||||||||||
Donations and community investments | (2,916) | (2,729) | ||||||||||||||||
Finance costs | (1,377) | (1,028) | ||||||||||||||||
Other | 4,000 | 4,073 | ||||||||||||||||
Income tax | 12,370 | (30) | ||||||||||||||||
Total other | $ | (4,780) | $ | (6,099) | $ | 1,052,887 | ||||||||||||
$ | 166,125 | $ | 172,028 | $ | 6,759,906 | |||||||||||||
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | The gain on disposal of other silver interests relates to the termination of the Yauliyacu PMPA, while the impairment of Other gold interests relates to the 777 PMPA. |
5) | Comprised of the operating |
6) | Other gold interests comprised of the operating |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, |
8) | Cash cost per pound of cobalt sold during the fourth quarter of 2022 includes an inventory write-down of |
On a gold equivalent basis, results for the Company for the three months ended December 31, 2022 were as follows:
Three Months Ended December 31, 2022 | |||||||
Ounces | Ounces | Average | Average | Cash | Average | Gross | |
Gold equivalent basis 4 | 142,887 | 138,218 | $ 1,708 | $ 447 | $ 1,261 | $ 384 | $ 877 |
1) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
3) | Refer to discussion on non-IFRS measure (iv) at the end of this press release. |
4) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: |
Year Ended December 31, 2023 | ||||||||||||||||||
Units | Units | Average | Average | Average | Sales | Gain on | Net | Cash Flow | Total | |||||||||
Gold | ||||||||||||||||||
Salobo | 239,304 | 203,096 | $ | 1,969 | $ | 420 | $ | 354 | $ | 399,936 | $ | - | $ | 242,676 | $ | 314,555 | $ | 2,681,419 |
22,134 | 18,990 | 1,971 | 400 | 1,102 | 37,432 | - | 8,905 | 29,554 | 262,485 | |||||||||
Constancia | 55,644 | 48,522 | 1,972 | 419 | 316 | 95,672 | - | 60,039 | 75,357 | 80,265 | ||||||||
San Dimas | 41,939 | 42,172 | 1,960 | 628 | 264 | 82,656 | - | 45,014 | 56,157 | 144,722 | ||||||||
8,772 | 8,588 | 1,961 | 348 | 510 | 16,842 | - | 9,470 | 13,853 | 211,469 | |||||||||
Other 6 | 6,792 | 5,968 | 1,942 | 1,037 | 209 | 11,593 | - | 4,152 | 5,137 | 603,689 | ||||||||
374,585 | 327,336 | $ | 1,968 | $ | 455 | $ | 382 | $ | 644,131 | $ | - | $ | 370,256 | $ | 494,613 | $ | 3,984,049 | |
Silver | ||||||||||||||||||
Peñasquito | 4,856 | 4,291 | $ | 23.66 | $ | 4.43 | $ | 4.06 | $ | 101,514 | $ | - | $ | 65,062 | $ | 82,504 | $ | 276,232 |
Antamina | 3,780 | 3,662 | 23.72 | 4.70 | 7.06 | 86,855 | - | 43,814 | 69,652 | 519,530 | ||||||||
Constancia | 2,505 | 2,140 | 23.79 | 6.17 | 6.24 | 50,913 | - | 24,352 | 37,716 | 179,583 | ||||||||
Other 7 | 6,035 | 4,233 | 23.47 | 5.41 | 2.92 | 99,312 | 5,027 | 69,106 | 74,272 | 582,113 | ||||||||
17,176 | 14,326 | $ | 23.64 | $ | 5.05 | $ | 4.82 | $ | 338,594 | $ | 5,027 | $ | 202,334 | $ | 264,144 | $ | 1,557,458 | |
Palladium | ||||||||||||||||||
15,800 | 13,919 | $ | 1,329 | $ | 241 | $ | 441 | $ | 18,496 | $ | - | $ | 8,991 | $ | 15,135 | $ | 220,667 | |
Platinum | ||||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | - | $ | 9,451 |
Cobalt | ||||||||||||||||||
Voisey's Bay | 673 | 1,074 | $ | 13.81 | $ | 3.30 ⁸ | $ | 13.41 | $ | 14,824 | $ | - | $ | (3,114) | $ | 15,071 | $ | 350,816 |
Operating results | $ | 1,016,045 | $ | 5,027 | $ | 578,467 | $ | 788,963 | $ | 6,122,441 | ||||||||
Other | ||||||||||||||||||
General and administrative | $ | (38,165) | $ | (36,025) | ||||||||||||||
Share based compensation | (22,744) | (16,675) | ||||||||||||||||
Donations and community investments | (7,261) | (7,039) | ||||||||||||||||
Finance costs | (5,510) | (4,230) | ||||||||||||||||
Other | 34,271 | 32,007 | ||||||||||||||||
Income tax | (1,414) | (6,192) | ||||||||||||||||
Total other | $ | (40,823) | $ | (38,154) | $ | 908,744 | ||||||||||||
$ | 537,644 | $ | 750,809 | $ | 7,031,185 | |||||||||||||
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | The gain on disposal of other silver interests relates to the gain on the buyback of |
5) | Comprised of the operating |
6) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel, |
8) | Cash cost per pound of cobalt sold during the year ended December 31, 2023 was net of a previously recorded inventory write-down of |
On a gold equivalent basis, results for the Company for the year ended December 31, 2023 were as follows:
Year Ended December 31, 2023 | |||||||
Ounces | Ounces | Average | Average | Cash | Average | Gross | |
Gold equivalent basis 4 | 619,608 | 537,608 | $ 1,890 | $ 424 | $ 1,466 | $ 399 | $ 1,067 |
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) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
3) | Refer to discussion on non-IFRS measure (iv) at the end of this press release. |
4) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: |
Year Ended December 31, 2022 | ||||||||||||||||||
Units | Units | Average | Average | Average | Sales | Impairment | Net | Cash Flow | Total | |||||||||
Gold | ||||||||||||||||||
Salobo | 161,163 | 163,875 | $ | 1,807 | $ | 416 | $ | 334 | $ | 296,145 | $ | - | $ | 173,257 | $ | 227,933 | $ | 2,383,262 |
19,358 | 21,763 | 1,802 | 400 | 1,091 | 39,211 | - | 6,752 | 30,789 | 283,416 | |||||||||
Constancia | 32,045 | 30,274 | 1,812 | 414 | 271 | 54,868 | - | 34,142 | 42,348 | 95,583 | ||||||||
San Dimas | 42,350 | 41,842 | 1,798 | 623 | 260 | 75,238 | - | 38,327 | 49,186 | 155,865 | ||||||||
8,686 | 9,164 | 1,810 | 325 | 429 | 16,583 | - | 9,667 | 13,600 | 215,852 | |||||||||
Other 6 | 21,999 | 26,316 | 1,811 | 760 | 48 | 47,653 | (1,719) | 24,687 | 27,610 | 494,143 | ||||||||
285,601 | 293,234 | $ | 1,806 | $ | 472 | $ | 350 | $ | 529,698 | $ | (1,719) | $ | 286,832 | $ | 391,466 | $ | 3,628,121 | |
Silver | ||||||||||||||||||
Peñasquito | 8,086 | 7,949 | $ | 21.97 | $ | 4.36 | $ | 3.57 | $ | 174,635 | $ | - | $ | 111,634 | $ | 139,978 | $ | 293,674 |
Antamina | 4,934 | 4,914 | 21.94 | 4.40 | 7.06 | 107,794 | - | 51,488 | 85,824 | 545,368 | ||||||||
Constancia | 2,309 | 2,039 | 21.97 | 6.10 | 6.35 | 44,798 | - | 19,421 | 32,358 | 192,947 | ||||||||
Other 7 | 8,471 | 6,668 | 21.56 | 6.95 | 5.50 | 143,776 | 166,198 | 226,995 | 96,251 | 453,096 | ||||||||
23,800 | 21,570 | $ | 21.84 | $ | 5.33 | $ | 5.22 | $ | 471,003 | $ | 166,198 | $ | 409,538 | $ | 354,411 | $ | 1,485,085 | |
Palladium | ||||||||||||||||||
15,485 | 15,076 | $ | 2,133 | $ | 377 | $ | 399 | $ | 32,160 | $ | - | $ | 20,455 | $ | 26,472 | $ | 226,812 | |
Platinum | ||||||||||||||||||
Marathon | - | - | $ | n.a | $ | n.a | $ | n.a | $ | - | $ | - | $ | - | $ | - | $ | 9,428 |
Cobalt | ||||||||||||||||||
Voisey's Bay | 724 | 1,038 | $ | 31.00 | $ | 8.10 ⁸ | $ | 10.26 | $ | 32,192 | $ | - | $ | 13,134 | $ | 28,178 | $ | 357,573 |
Operating results | $ | 1,065,053 | $ | 164,479 | $ | 729,959 | $ | 800,527 | $ | 5,707,019 | ||||||||
Other | ||||||||||||||||||
General and administrative | $ | (35,831) | $ | (35,073) | ||||||||||||||
Share based compensation | (20,060) | (18,411) | ||||||||||||||||
Donations and community investments | (6,296) | (5,706) | ||||||||||||||||
Finance costs | (5,586) | (4,135) | ||||||||||||||||
Other | 7,449 | 6,393 | ||||||||||||||||
Income tax | (509) | (171) | ||||||||||||||||
Total other | $ | (60,833) | $ | (57,103) | $ | 1,052,887 | ||||||||||||
$ | 669,126 | $ | 743,424 | $ | 6,759,906 | |||||||||||||
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | The gain on disposal of other silver interests relates to the termination of the Keno Hill and Yauliyacu PMPAs, while the impairment of Other gold interests relates to the 777 PMPA. |
5) | Comprised of the operating |
6) | Other gold interests comprised of the operating |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, |
8) | Cash cost per pound of cobalt sold during the fourth quarter of 2022 includes an inventory write-down of |
On a gold equivalent basis, results for the Company for the year ended December 31, 2022 were as follows:
Year Ended December 31, 2022 | |||||||
Ounces | Ounces | Average | Average | Cash | Average | Gross | |
Gold equivalent basis 4 | 616,755 | 598,244 | $ 1,780 | $ 447 | $ 1,333 | $ 388 | $ 945 |
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, which are provided to assist the reader, are based on the following commodity price assumptions: |
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.
i. | Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance. |
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted).
Three Months Ended | Years Ended | |||||||||||
(in thousands, except for per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||
Net earnings | $ | 168,435 | $ | 166,125 | $ | 537,644 | $ | 669,126 | ||||
Add back (deduct): | ||||||||||||
Impairment charge (reversal) | - | 1,719 | - | (8,611) | ||||||||
Gain on disposal of Mineral Stream | - | (51,443) | (5,027) | (155,868) | ||||||||
Gain (loss) on fair value adjustment | (217) | (67) | 31 | 1,033 | ||||||||
Income tax (expense) recovery | - | - | - | 4,143 | ||||||||
Income tax (expense) recovery | (3,487) | (7,214) | 3,719 | (6,513) | ||||||||
Income tax recovery related to prior | - | (5,376) | (2,672) | 2,404 | ||||||||
Other | (162) | - | (644) | (802) | ||||||||
Adjusted net earnings | $ | 164,569 | $ | 103,744 | $ | 533,051 | $ | 504,912 | ||||
Divided by: | ||||||||||||
Basic weighted average number of | 453,010 | 452,070 | 452,814 | 451,570 | ||||||||
Diluted weighted average number of | 453,611 | 452,778 | 453,463 | 452,344 | ||||||||
Equals: | ||||||||||||
Adjusted earnings per share - basic | $ | 0.363 | $ | 0.229 | $ | 1.177 | $ | 1.118 | ||||
Adjusted earnings per share - diluted | $ | 0.363 | $ | 0.229 | $ | 1.176 | $ | 1.116 | ||||
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 | Years Ended | |||||||||||
(in thousands, except for per share amounts) | 2023 | 2022 | 2023 | 2022 | ||||||||
Cash generated by operating activities | $ | 242,226 | $ | 172,028 | $ | 750,809 | $ | 743,424 | ||||
Divided by: | ||||||||||||
Basic weighted average number of | 453,010 | 452,070 | 452,814 | 451,570 | ||||||||
Diluted weighted average number of | 453,611 | 452,778 | 453,463 | 452,344 | ||||||||
Equals: | ||||||||||||
Operating cash flow per share - basic | $ | 0.535 | $ | 0.381 | $ | 1.658 | $ | 1.646 | ||||
Operating cash flow per share - diluted | $ | 0.534 | $ | 0.380 | $ | 1.656 | $ | 1.643 | ||||
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 | Years Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold | 2023 | 2022 | 2023 | 2022 | ||||||||
Cost of sales | $ | 136,283 | $ | 114,870 | $ | 442,605 | $ | 499,573 | ||||
Less: depletion | (68,526) | (53,139) | (214,434) | (231,952) | ||||||||
Cash cost of sales | $ | 67,757 | $ | 61,731 | $ | 228,171 | $ | 267,621 | ||||
Cash cost of sales is comprised of: | ||||||||||||
Total cash cost of gold sold | $ | 50,246 | $ | 32,749 | $ | 148,972 | $ | 138,468 | ||||
Total cash cost of silver sold | 15,945 | 24,674 | 72,296 | 115,058 | ||||||||
Total cash cost of palladium sold | 662 | 1,213 | 3,360 | 5,687 | ||||||||
Total cash cost of cobalt sold | 904 | 3,095 | 3,543 | 8,408 | ||||||||
Total cash cost of sales | $ | 67,757 | $ | 61,731 | $ | 228,171 | $ | 267,621 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 115,011 | 68,996 | 327,336 | 293,234 | ||||||||
Total silver ounces sold | 3,175 | 4,935 | 14,326 | 21,570 | ||||||||
Total palladium ounces sold | 3,339 | 3,396 | 13,919 | 15,076 | ||||||||
Total cobalt pounds sold | 288 | 187 | 1,074 | 1,038 | ||||||||
Equals: | ||||||||||||
Average cash cost of gold (per ounce) | $ | 437 | $ | 475 | $ | 455 | $ | 472 | ||||
Average cash cost of silver (per ounce) | $ | 5.02 | $ | 5.00 | $ | 5.05 | $ | 5.33 | ||||
Average cash cost of palladium (per ounce) | $ | 198 | $ | 357 | $ | 241 | $ | 377 | ||||
Average cash cost of cobalt (per pound) | $ | 3.14 | $ | 16.52 | $ | 3.30 | $ | 8.10 | ||||
iv. | Cash operating margin is calculated by adding back depletion to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow. |
The following table provides a reconciliation of cash operating margin.
Three Months Ended | Years Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold and per | 2023 | 2022 | 2023 | 2022 | ||||||||
Gross margin | $ | 177,188 | $ | 121,181 | $ | 573,440 | $ | 565,480 | ||||
Add back: depletion | 68,526 | 53,139 | 214,434 | 231,952 | ||||||||
Cash operating margin | $ | 245,714 | $ | 174,320 | $ | 787,874 | $ | 797,432 | ||||
Cash operating margin is comprised of: | ||||||||||||
Total cash operating margin of gold sold | $ | 180,470 | $ | 86,302 | $ | 495,159 | $ | 391,230 | ||||
Total cash operating margin of silver sold | 59,520 | 81,501 | 266,298 | 355,945 | ||||||||
Total cash operating margin of palladium sold | 2,912 | 5,373 | 15,136 | 26,473 | ||||||||
Total cash operating margin of cobalt sold | 2,812 | 1,144 | 11,281 | 23,784 | ||||||||
Total cash operating margin | $ | 245,714 | $ | 174,320 | $ | 787,874 | $ | 797,432 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 115,011 | 68,996 | 327,336 | 293,234 | ||||||||
Total silver ounces sold | 3,175 | 4,935 | 14,326 | 21,570 | ||||||||
Total palladium ounces sold | 3,339 | 3,396 | 13,919 | 15,076 | ||||||||
Total cobalt pounds sold | 288 | 187 | 1,074 | 1,038 | ||||||||
Equals: | ||||||||||||
Cash operating margin per gold ounce sold | $ | 1,569 | $ | 1,250 | $ | 1,513 | $ | 1,334 | ||||
Cash operating margin per silver ounce sold | $ | 18.75 | $ | 16.52 | $ | 18.59 | $ | 16.51 | ||||
Cash operating margin per palladium ounce sold | $ | 872 | $ | 1,582 | $ | 1,088 | $ | 1,756 | ||||
Cash operating margin per cobalt pound sold | $ | 9.78 | $ | 6.10 | $ | 10.51 | $ | 22.90 | ||||
1) Cash cost per pound of cobalt sold during the fourth quarter of 2023 was net of a previously recorded inventory write-down of |
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more detailed information, please refer to Wheaton's MD&A available on the Company's website at www.wheatonpm.com and posted on SEDAR+ at www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton's PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to:
- the future price of commodities;
- the estimation of future production from the mineral stream interests and mineral royalty interests currently owned by the Company (the "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 Mining Operations;
- the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and the receipt by the Company of precious metals and cobalt production or other payments in respect of the applicable Mining Operations under PMPAs;
- 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, including any acceleration of payments;
- the costs of future production;
- the estimation of produced but not yet delivered ounces;
- the future sales of Common Shares under, the amount of net proceeds from, and the use of the net proceeds from, the at-the-market equity program;
- continued listing of the Common Shares on the LSE, NYSE and TSX;
- any statements as to future dividends;
- the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs;
- 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, including the implementation of a
15% global minimum tax, and the impact of the CRA Settlement; - possible CRA domestic audits for taxation years subsequent to 2016 and international audits;
- the Company's assessment of the impact of any tax reassessments;
- the Company's intention to file future tax returns in a manner consistent with the CRA Settlement;
- the Company's climate change and environmental commitments; and
- assessments of the impact and resolution of various legal and tax matters, including but not limited to audits.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to:
- risks associated with fluctuations in the price of commodities (including Wheaton's ability to sell its precious metals or cobalt production at acceptable prices or at all);
- risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with exploration, development, operating, expansion and improvement at the Mining Operations, environmental and economic risks of the Mining Operations, and changes in project parameters as Mining Operations plans continue to be refined);
- 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 owners and operators of the Mining Operations as the basis for its analyses, forecasts and assessments relating to its own business;
- risks related to the uncertainty in the accuracy of mineral reserve and mineral resource estimation;
- risks related to the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs, including the ability of the companies with which the Company has PMPAs to perform their obligations under those PMPAs in the event of a material adverse effect on the results of operations, financial condition, cash flows or business of such companies, any acceleration of payments, estimated throughput and exploration potential;
- risks relating to production estimates from Mining Operations, including anticipated timing of the commencement of production by certain Mining Operations;
- Wheaton's interpretation of, or compliance with, or application of, tax laws and regulations or accounting policies and rules, being found to be incorrect or the tax impact to the Company's business operations being materially different than currently contemplated;
- 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;
- risks in assessing the impact of the CRA Settlement (including whether there will be any material change in the Company's facts or change in law or jurisprudence);
- risks related to any potential amendments to
Canada 's transfer pricing rules under the Income Tax Act (Canada ) that may result from the Department of Finance's consultation paper released June 6, 2023; - risks relating to the implementation of a
15% global minimum tax, including the draft legislation issued for consultation by the Canadian Federal Government on August 4, 2023 that would apply to the income of the Company's non-Canadian subsidiaries and the legislation enacted in Luxembourg that applies to the income of the Company's Luxembourg subsidiary as of January 1, 2024 and the Company and its other subsidiaries from January 1, 2025; - counterparty credit and liquidity risks;
- mine operator and counterparty concentration risks;
- indebtedness and guarantees risks;
- hedging risk;
- competition in the streaming industry risk;
- risks relating to security over underlying assets;
- risks relating to third-party PMPAs;
- risks relating to revenue from royalty interests;
- risks related to Wheaton's acquisition strategy;
- risks relating to third-party rights under PMPAs;
- risks relating to future financings and security issuances;
- risks relating to unknown defects and impairments;
- risks related to governmental regulations;
- risks related to international operations of Wheaton and the Mining Operations;
- risks relating to exploration, development, operating, expansions and improvements at the Mining Operations;
- risks related to environmental regulations;
- the ability of Wheaton and the Mining Operations to obtain and maintain necessary licenses, permits, approvals and rulings;
- the ability of Wheaton and the Mining Operations to comply with applicable laws, regulations and permitting requirements;
- lack of suitable supplies, infrastructure and employees to support the Mining Operations;
- risks related to underinsured 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 related to title and indigenous rights with respect to the mineral properties of the Mining Operations;
- the ability of Wheaton and the Mining Operations to obtain adequate financing;
- the ability of the Mining Operations to complete permitting, construction, development and expansion;
- challenges related to global financial conditions;
- risks associated with environmental, social and governance matters;
- risks related to fluctuations in commodity prices of metals produced from the Mining Operations other than precious metals or cobalt;
- risks related to claims and legal proceedings against Wheaton or the Mining Operations;
- risks related to the market price of the Common Shares of Wheaton;
- the ability of Wheaton and the Mining Operations to retain key management employees or procure the services of skilled and experienced personnel;
- risks related to interest rates;
- risks related to the declaration, timing and payment of dividends;
- risks related to access to confidential information regarding Mining Operations;
- risks associated with multiple listings of the Common Shares on the LSE, NYSE and TSX;
- risks associated with a possible suspension of trading of Common Shares;
- risks associated with the sale of Common Shares under the at-the-market equity program, including the amount of any net proceeds from such offering of Common Shares and the use of any such proceeds;
- equity price risks related to Wheaton's holding of long‑term investments in other companies;
- risks relating to activist shareholders;
- risks relating to reputational damage;
- risks relating to expression of views by industry analysts;
- risks related to the impacts of climate change and the transition to a low-carbon economy;
- risks associated with the ability to achieve climate change and environmental commitments at Wheaton and at the Mining Operations;
- risks related to ensuring the security and safety of information systems, including cyber security risks;
- risks relating to generative artificial intelligence;
- risks relating to compliance with anti-corruption and anti-bribery laws;
- risks relating to corporate governance and public disclosure compliance;
- risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic or pandemic;
- risks related to the adequacy of internal control over financial reporting; and
- other risks discussed in the section entitled "Description of the Business – Risk Factors" in Wheaton's Annual Information Form available on SEDAR+ at www.sedarplus.ca and Wheaton's Form 40-F for the year ended December 31, 2022 on file with the
U.S. Securities and Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation):
- 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 public disclosure and other information Wheaton receives from the owners and operators of the Mining Operations is accurate and complete;
- that the production estimates from Mining Operations 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 the terms and conditions of a PMPA are sufficient to recover liabilities owed to the Company;
- that Wheaton has fully considered the value and impact of any third-party interests in PMPAs;
- that expectations regarding the resolution of legal and tax matters will be achieved (including CRA audits involving the Company);
- that Wheaton has properly considered the application of Canadian tax laws to its structure and operations;
- that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax laws;
- that Wheaton's application of the CRA Settlement is accurate (including the Company's assessment that there has been no material change in the Company's facts or change in law or jurisprudence);
- that Wheaton's assessment of the tax exposure and impact on the Company and its subsidiaries of the implementation of a
15% global minimum tax is accurate; - that any sale of Common Shares under the at-the-market equity program will not have a significant impact on the market price of the Common Shares and that the net proceeds of sales of Common Shares, if any, will be used as anticipated;
- that the trading of the 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;
- the estimate of the recoverable amount for any PMPA with an indicator of impairment;
- that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic or pandemic; and
- such other assumptions and factors as set out in the Disclosure.
There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward-looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward‑looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.
Cautionary Language Regarding Reserves and Resources
For further information on Mineral Reserves and Mineral Resources and on Wheaton more generally, readers should refer to Wheaton's Annual Information Form for the year ended December 31, 2022, which was filed on March 31, 2023 and other continuous disclosure documents filed by Wheaton since January 1, 2023, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in
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 14, 2024, titled "Wheaton Precious Metals Declares Quarterly Dividend." |
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SOURCE Wheaton Precious Metals Corp.
FAQ
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