Marvel Discovery Corp. (TSX-V:MARV)(FRA:O4T)(OTCQB:MARVF) ("Marvel" or the "Company") is pleased to announce that it has acquired 100% of additional ground ("Pecors West") east of Elliot Lake to complement its East Bull Property. The additional land package of 805 hectares (ha) brings the land holdings in the area to a total of 6,157 ha. (Figure 1
The Pecors West property has the potential to host three unique styles of mineralization under the critical metals criteria:
"The Pecors West property is a dynamic piece of ground with significant potential for Ni-Cu-PGM mineralization and uranium and rare-earth oxide mineralization in two completely different geological settings", Mr. Karim Rayani, Chief Executive Officer, commented. "The new land acquisition puts Marvel contiguous to the Eco Ridge Project with almost 60 Mt of uranium and rare-earth oxide resources. Drilling by Five Nine Ventures intersected shallow uranium mineralization along the Pecors Channel in 2012, and in 2015 PGM+Ni+Cu mineralization was intersected by International Montoro within the extensive Pecors magnetic anomaly, now held by Power One Resources (SpinCo from Mavel). This land acquisition gives Marvel a sizeable area of influence in the camp."
The Pecors Channel (Figure 1) located next door to the new land acquisition contains an inferred resource of 20,000,000 tons grading 0.037% (0.74 lbs./t) U3O8 or 14,800,000 lbs. U3O8 (Rio Algom,
1977). This resource estimated is based on limited drilling and there is potential to expand the Pecors Channel onto the Pecors West property. Uranium is hosted within the quartz-pebble conglomerate of the Matinenda Formation at shallow depths within the Pecors Channel. ‘Channels' within the Elliot Lake uranium camp were mined extensively in the 1950s where production grades averaged 0.100% U3O8. The resource estimate cited above predates and therefore does not conform to the more stringent reporting requirements of National Instrument 43-101 and should not be relied upon according to those standards. Marvel has not yet done exploration work to verify or classify the historical estimates as a current mineral resource, and the Company is not treating the historical estimates as a current mineral reserve or resource.
The Pecors West property also hosts the potential for significant PGM- Ni-Cu mineralization related to the Pecors Magnetic anomaly, a large regional magnetic high extending 18 km long and 4 km wide and largely hidden beneath Huronian sediments (Figure 2). The source of the magnetic anomaly has been confirmed to be at least partially comprised of lithologies of gabbroic affinity by International Montoro drilling in 2015. Hole P15-23 drilled by International Montoro intersected 0.33 g/t Pt+Pd+Au and 0.11% Cu and 0.04% Ni over 12m within contact style mafic intrusive mineralization. This style of mineralization appears similar to the East Bull PGM deposit to the east where Quest Critical Metals Inc., (formerly Canadian Palladium) reports a total indicated resources of 16.5 million tonnes at a grade of 0.93 g/t PdEq (see Quest Critical Metals news release dated February 22, 2023).
The Pecors West property is contiguous to Radio Fuels Corp. (CSE:CAKE) Eco Ridge Project where indicated resources total 22.306 Mt grading 0.045% U3O8and 1,613 ppm REO (rare-earth oxides) and inferred resources total 36.955 Mt grading 0.046 % U3O8 and 1,560 ppm REO (https://radiofuels.ca/).
Transaction Terms
Marvel Discovery has signed an agreement with two vendors to purchase a 100% interest in 18 boundary cell mining claims and 35 single cell mining claims for $10,000 cash payable upon acceptance of the transaction by the TSX Venture Exchange (the "Effective Date") and an additional $40,000 cash payable within 6 months from the Effective Date. On the Effective Date, Marvel must also issue 500,000 common shares and 500,000 share purchase warrants exercisable for a 3-year period at $.05 per share. The vendors retains a 2% NSR with a buyback option from Marvel for 50% of the NSR for $1,000,000 cash. All terms are conditional upon regulatory approval from the TSX Venture Exchange.
Qualified Person
Mike Kilbourne, P. Geo, an independent qualified person ("QP") as defined in National Instrument 43-101, has reviewed, and approved the technical contents of this news release on behalf of the Company.
The QP has not completed sufficient work to verify the historic information on the properties comprising the Pecors property, particularly regarding historical exploration, neighbouring companies, and government geological work. The information provides an indication of the exploration potential of the Pecors property but may not be representative of expected results.
About Marvel Discovery Corp.
Marvel, listed on the TSX Venture Exchange for over 25 years, is a Canadian based emerging resource company. The Company is systematically exploring its extensive property positions in:
The Company's website is: https://marveldiscovery.ca/
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
"Karim Rayani"
Karim Rayani
President/Chief Executive Officer, Director
Tel: 604 716 0551 email: k@r7.capital
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward-looking statements in this press release relate to, among other things: completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE:Marvel Discovery Corp.
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Marvel Discovery Corp. (TSXV:MARV)(Frankfurt:O4T)(OTCQB:MARVF) ("Marvel" or the "Company") is pleased to announce that the Company is planning a till sampling exploration program at its Victoria Lake Property for Q2 2024. The project is being planned as a follow-up to reconnaissance till and soil sampling completed in 2023 that identified anomalous gold. The Victoria Lake Property is situated over more than 15 kilometres of the Victoria Lake Shear Zone (VLSZ), part of an extensive fault corridor within Central Newfoundland that Honsberger et al. (2022)1 identified as emerging as one of the most prospective orogenic gold domains in Atlantic Canada. The project will further follow up on the second highest regional gold-in-till sample identified by the Newfoundland Geoscience Atlas, which reported 785 ppb Au from a sample collected within Marvel's Victoria Lake project
Karim Rayani, Chief Executive Officer, commented; "Results from Marvel's 2023 reconnaissance till and soil sampling program were very exciting, and identified multiple gold anomalies within the western part of the property. The reconnaissance program was intended to investigate the potential for structures associated with the Cape Ray Fault Zone and Victoria Lake Shear Zone. Anomalous gold was identified in over 20% of the 2023 samples, and our 2024 program will follow up with more detailed sampling over anomalous zones. The project is located over an extensive fault and shear zone corridor which is host to numerous gold occurrences that include the nearby Valentine Gold Project. Recent news of the acquisition of the Valentine Gold Project, we believe, is a reaffirmation of our views that this entire area has immense potential for further discovery, and the reason Marvel acquired such a significant land holding. Marvel's substantial position in this camp is second only to Calibre (see Figure 1), and includes the crucial southwest extension of the Victoria Lake Shear Zone and fault corridor. In recent months we have announced a strategic reduction of some of Marvel's holdings in the Province of Newfoundland and Labrador, as we focus on our core holdings. The Victoria Lake Project is now regarded as one of our highest priority projects within the province. As gold prices surge and global uncertainties persist, our bullish outlook on gold has never been stronger, and we remain committed to and focused on the acquisition and exploration of Tier One Projects. Exploring a significant portion of one of Newfoundland's most prospective gold-bearing structures is not only thrilling but a discovery at Victoria Lake has the potential to transform Marvel and benefit our loyal shareholders."
Results from Marvel's spring 2023 program were reported on August 14, 2023 (see press release dated August 14, 2023). The 2023 exploration program conducted till sampling over two geological targets as part of the Company's investigation of the potential for structures associated with the Cape Ray Fault - Victoria Lake Shear Zone corridor. Marvel plans to complete an enhanced program of till sampling over the area in late spring-early summer 2024 and will follow up with additional sampling in areas where anomalous gold was identified. The second highest regional gold-in-till sample in the Newfoundland Geoscience Atlas database which reported 785 ppb Au was collected from within Marvel's Victoria Lake project, and the north survey grid for 2024 is intended to follow up on this historic high-grade anomaly.
Figure 1. Location of Marvel's Victoria Lake Property and Calibre Mining Corp's Valentine Gold Project in Central Newfoundland, Canada.
The Cape Ray Fault is an extensive fault corridor that is well recognized as being highly fertile for structural gold mineralization and is host to well-known gold occurrences that include the Cape Ray Deposit, the Valentine Gold Deposit, and the Wilding Lake Prospect. Marvel's Victoria Lake Property represents one of the largest land packages on strike and contiguous to Calibre Mining Corp.'s ("Calibre") Valentine Gold Project. The recent purchase of Marathon by Calibre (Calibre Mining Completes Acquisition of Marathon Gold - Junior Mining Network) marked a significant milestone for this entire area with their intention for an accelerated mine development phase. The Valentine Gold Project is anticipated to contribute an expected annual gold production of 195,000 ounces at a cost of USD$1,007 per ounce during the first 12 years of production starting in 2025. (https://calibremining.com/news/calibre-and-marathon-announce-combination-to-creat-6555/) The Valentine Lake shear zone plays a pivotal role in hosting gold mineralization within this entire camp with ongoing exploration and studies providing a greater understanding of this regional scale structure (https://journals.lib.unb.ca/index.php/ag/article/view/32972). Marvel's detailed studies of this area have demonstrated the potential for the continuation of this major structure to continue across the Victoria Lake Property (see Figure 2).
Figure 2. Total Magnetic Intensity Map of Victoria Lake Regional Area Showing Interpreted Location of Valentine Lake Shear Zone and Documented Gold Occurrences
Qualified Person
Greg Robinson, P.Geo., an independent qualified person as defined in National Instrument 43-101, has reviewed and approved the technical contents of this news release on behalf of the Company.
The QP and the Company have not completed sufficient work to verify the historical information on the properties comprising the Victoria Lake Shear Zone, particularly regarding historical exploration, neighbouring companies, and government geological work. The QP and the Company further acknowledge that the presence of mineral occurrences within property adjacent to Marvel's Victoria Lake Property cannot be used as an indication for mineralization to occur within Marvel's property itself.
About Marvel Discovery Corp.
Marvel, listed on the TSX Venture Exchange for more than 25 years, is a Canadian-based emerging resource company. The Company is systematically exploring its extensive property positions in:
The Company's website is: https://marveldiscovery.ca/
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
"Karim Rayani"
Karim Rayani
President & Chief Executive Officer, Director
Tel: 604 716 0551
Email: k@r7.capital
Website: www.marveldiscovery.ca
Twitter: @marveldcorp
Facebook: @marveldiscoverycorp
LinkedIn: @marveldiscoverycorp
Instagram: @marveldiscoverycorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements that reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward-looking statements in this press release relate to, among other things: the completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political, and social uncertainties, and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
1. Honsbergerm I.W. , Bleeker, W., Kamo, S.L., Sandeman, H.A.I., Evans, D.T.W., Rogers, N., van Staal, C.R., and
Dunning, G.R. (2022) Latest Silurian syntectonic sedimentation and magmatism and Early Devonian orogenic gold mineralization, central Newfoundland Appalachians, Canada: Setting, structure, lithogeochemistry, and high-precision U-Pb geochronology. Geological Society of America Bulletin, March 2022, 25 pages. http://pubs.geoscienceworld.org/gsa/gsabulletin/article-pdf/doi/10.1130/B36083.1/5557466/b36083.pdf
SOURCE:Marvel Discovery Corp.
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Marvel Discovery Corp. (TSX-V:MARV)(Frankfurt:O4T)(MARVF:OTCQB); ( "Marvel " or the "Company" ) is pleased to report that the Company has completed drilling operations on its Ni-Cu-Co and Ti-V-Cr Duhamel property (the " Property ") located 350 kilometers (km) north of Quebec City, QC (Figure 1
Karim Rayani, Chief Executive Officer , states , "We are thrilled with the results of our inaugural drill campaign at our Duhamel project. Every hole was successful in intersecting our interpreted target horizons -intersecting disseminated, semi-massive and/or massive sulfide zones. At this state we have decided to pause our drilling operations and now will focus our efforts on both field and desktop studies to help us gain a better understanding of both the genesis and structural setting of these exciting massive sulfide zones. While we wait for assays on all holes, we will be conducting low frequency Borehole and Surface Time Domain Electromagnetics to assist with future targeting areas. Our field geologist is most excited with these initial results and seeing mineralized textures suggestive of these sulfides being part of a much larger sulfide pool, and we eagerly anticipate the Geophysical results to help us vector towards the higher conductance and thicker sulfide zones."
Phase 1 drilling consisted of 5 holes totaling 1,218m ( table 1 ), which targeted numerous priority airborne and ground EM conductors within the Houlière block (figure 2 ). Historical work within the Property and surrounding areas have shown these conductors are the primary target horizons.
Several sulfide-rich mineralization intervals were intersected on the five drillholes which drilled into mafic-ultramafic magmatic rocks suite located in the margin of a large anorthosite body named Saguenay Lac-Saint- Jean SLSJ Anorthosite Suite.
The first hole drilled, DU24-01, intersected a wide, 33.0m, interval of disseminated sulfide mineralization from a hole depth 69.0m- 102.0m and within this are semi-massive stringers and massive sulfide zones ranging from widths of 10cm-60cm hosted in mafic-ultramafic magmatic rocks. Other sulfide mineralization intervals were intersected in hole DU24-01 and they are at 120.5m (5.5m), at 134m (1.0m); at 143.0m (11.3m), at 159.1m (1.6m), at 172.2m (2.4m), at 204.5m (1.6m), at 226.6m (0.7m), at 239.8m (0.3m), at 244.3m (1.0m), at 258.6m (1.5m), and at 314.2m (2 cm wide). An example of one of these massive sulfide bands with shows tremendous potential for nickel, copper, and cobalt mineralization intersected in drillhole DU24-01 is highlighted in figure 3. Semi-massive and massive Fe-Ti oxide (MOX) bands ticking up to several meters in width were also intersected in this hole some of which contains sulfides clusters and stringers.
The second hole drilled, DU24-02, intersected a wide, 13.9m, interval of disseminated sulfides mineralization from a hole depth 7.5m- 21.4m and within this are semi-massive stringers and massive sulfide zones ranging from widths of 10cm-70cm. An example of one of these semi-massive sulfide bands with shows tremendous potential for nickel, copper, and cobalt mineralization intersected in drillhole DU24-02 is highlighted in figure 4. Other same disseminated sulfides intervals with semi-massive stringers and massive sulfide zones ranging from widths of 5cm-40cm were intersected at 32.0 (0.8m), at 37.8m (5.9m), at 99.8m (3.6m), at 135.8m (7.6m), at 169.8m (18.2m), and at 231.2m (5.7m). Semi-massive and massive Fe-Ti oxide (MOX) bands ticking up to several meters in width were also intersected in this hole some of which contains sulfides clusters and stringers.
Hole DU24-03, intersected a wide, 10.3m, interval of disseminated mineralization from a hole depth 88.6m - 98.9m and within this are semi-massive sulfide stringers and clusters zones ranging from widths of 10-50cm. Other same disseminated mineralized intervals with semi-massive stringers and massive sulfide zones ranging from widths of 5cm-80cm were intersected at 111.3m (2.5m), and at 121.5m (2.0m). Semi-massive and massive Fe-Ti oxide (MOX) bands ticking up to several meters in width were also intersected in this hole.
The Hole DU24-04 intersected a wide, 17.3m, interval of disseminated sulfides mineralization from a hole depth 21.7m - 39.0m and within this are semi-massive stringers zone 10cm-90cm. Noteworthy within hole DU24-04 is a significant vein of massive chalcopyrite with pyrrhotite mineralization over the interval of 79.7m - 80.1m which is highlighted in figure 5. Other same disseminated sulfide intervals with semi-massive stringers zones ranging from widths of 5cm-70cm were intersected at 71.9m (2.0m), at 76.0m (2.1m), at 89.2m (3.6m), and at 104m (1.3m).
The hole drilled, DU24-05, intersected a wide, 10.8m, interval of disseminated sulfides mineralization from a hole depth 115.0m - 125.8m and within this are semi-massive stringers and massive sulfide zones ranging from widths of 10cm-120cm. An example of these massive sulfide bands with shows a potential for nickel, copper, and cobalt mineralization intersected in drillhole DU24-05 is highlighted in figure 6 to 8. Other disseminated sulfides intervals with semi-massive stringers and massive sulfide zones ranging from widths of 5cm-120cm were intersected at 57.4m (4.4m), at 95.1m (5.6m), at 145.8m (6.4m), and at 197.2m (3.8m, open down hole). Fe-Ti oxide (MOX) mineralization as dissemination, as semi-massive and massive iticking up to dozen meters in width were intersected in this hole: at 10.0m (14.5m), at 33.0m (25.6m), at 74.7m (20.4m), and at 110.9m (10.4m). Those contains a potential for titanium and chromium.
Duhamel Project
For general information, the Duhamel Property currently contains seven (7) occurrences of Ni-Cu-Co sulfides and one (1) Fe-Ti-V iron oxide occurrence discovered between 1997 to 2001 by previous operators who defined a 13 km long mineralized rock corridor (Figure 4). Drill intercept highlights include 1.27% Ni, 0.33% Cu, and 0.12% Co over 3.0 meters by Virginia Gold Mines in 2000 that contained massive sulfides. The recalculation of 100% sulfides gave 2.42% Ni over 0.5m (hole 1279-2001-29 gave 1.4% Ni over 0.5m). Compilation of historic assessment reports to date reveals more than thirty (30) Ni-Cu (Co) and four (4) Fe-Ti (V, Cr) mineral occurrences which confirms this corridor to be highly prospective for new Ni-Cu-Co discoveries, as well as Fe-Ti (Cr, V) discoveries.
Further to the compilation of previously filed assessment reports Marvel recovered from historical data a grab sample (from massive Iron-Titanium Oxides), the result assaying 0.28% V 2 O 5 associated with 20.8% T i O 2 and 0.13%Cr 2 0 3 .
The Duhamel project is located between Chutes-des-Passes and Pipmuacan Reservoir deformation zones (or areas) included in central part of Proterozoic Grenville Geological Province (Figure 2). The Duhamel Property is characterized by the presence of large mafic to ultramafic intrusive rock bodies located in northern margin of the Saguenay‐Lac‐Saint‐Jean (SAGLSJ) Anorthosite Suite, one of the largest anorthosite intrusive bodies in the world. The Chute-des-Passes-Pipmuacan reservoir areas contains numerous massive sulfide and iron oxide mineralization occurrences recognized and documented by the Quebec government ( Sigeom, Figure 9 ).
Qualified Person
The technical information contained in this report has been reviewed by Jean-Paul Barrette Géo/ P.Geo , an independent project geologist and consultant. Mr. Barrette is a member of the Ordre des Géologues du Québec (OGQ, # 619). Mr. Barrette has sufficient experience (39 years) and relevant to the style of mineralization and the type of deposit under study and the activity undertaken to qualify as a competent person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. Mr. Barrette carried out several geological reconnaissance works in the Houliere-Duhamel sector and recently made there a compilation of historical works.
About Marvel Discovery Corp.
Marvel, listed on the TSX Venture Exchange for over 25 years, is a Canadian based emerging resource company. The Company is systematically exploring its extensive property positions in:
The Company's website is: https://marveldiscovery.ca/.
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
"Karim Rayani"
Karim Rayani
President/Chief Executive Officer, Director
Tel: 604 716 0551 email: k@r7.capital
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Forward-looking statements in this press release relate to, among other things: completion of the proposed Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
SOURCE: Marvel DiscoveryNews Provided by ACCESSWIRE via QuoteMedia
Marvel Discovery Corp. (TSXV:MARV)(FSE:O4T)(OTCQB:MARVF) (the "Company") announces that it has closed the final tranche of its previously announced non-brokered private placement (the "Private Placement") by issuing 2,525,000 non flow-through units (the "NFT Units") at $0.04 per NFT Unit for gross proceeds of $101,000 (the "Final Tranche
Each NFT Unit consists of one non flow-through share (an "NFT Share") and one share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire an additional NFT Share at an exercise price of $0.075 per NFT Share for a period of five years.
Pursuant to the Private Placement, the Company issued an aggregate 12,000,000 flow-through units (the "FT Units") at $0.05 per FT Unit and 3,775,000 NFT Units at $0.04 per NFT Unit for aggregate gross proceeds of $751,000.
The gross proceeds from the Final Tranche will be used for general working capital purposes, more specifically for general and administrative expenses (50%) and for exploration and property maintenance (50%). None of the proceeds from the Final Tranche will be used for payments to non-arm's length parties or persons conducting investor relations activities.
All securities issued in connection with the Final Tranche will be subject to a statutory hold period expiring four months and one day after the issuance date. Final acceptance is subject to the TSX Venture Exchange.
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
"Karim Rayani"
Chief Executive Officer, Director
Tel: 604 716 1036
Email: info@marveldiscovery.ca
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Marvel Discovery Corp.
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VANCOUVER, BC / ACCESSWIRE/ February 7, 2024 / Marvel Discovery Corp. (TSX-V:MARV)(Frankfurt:O4T)(MARVF:OTCQB); ( "Marvel " or the "Company" ) is pleased to report a corporate update letter in an address to shareholders from its Chief Executive Officer, Karim Rayani.
Dear Shareholders ,
As we embark on a new year, fueled by unwavering determination and a shared vision, we eagerly anticipate not only continuing our ambitious plan of furthering collaborative partnerships but to continue to look for value generation prospects. In the midst of this persistently challenging market landscape, timing remains paramount. The macro environment for precious metals and energy presents unprecedented opportunities, yet a perplexing disparity persists for companies despite the favorable backdrop.
Marvel's core and long-term philosophy remains the same. We are a versatile multi-commodity enterprise, spanning a wide array of valuable resources-from battery metals and energy to precious metals, and this diverse portfolio positions us strategically for future success as demand returns. We continue to strengthen the value proposition, with a strategic focus on both advancement and acquisition. Our portfolio spans a diverse range which makes us a unique proposition compared to our peers, especially in our market capitalization.
Notably, we've recently expanded our land holdings at the KLR-Walker Uranium Project in the Athabasca Basin , an area renowned for hosting the world's highest-grade uranium mines. This expansion positions us alongside industry giants such as Cameco and Fission , underscoring our commitment to unlocking the immense potential of uranium. Additionally, our presence in the Wollaston-Mudjactic Transition Zone aligns us with the success stories of basement-hosted uranium deposits, exemplified by NexGen Energy's Arrow Deposit -the largest undeveloped uranium deposit in Canada. Marvel is also uniquely positioned having one of the largest land positions next door to Atlantic's largest gold deposit - Valentine deposit, previously held by Marathon Gold, now purchased by Caliber Mining (January 24, 2024). As we continue to explore and develop our mineral assets, we remain steadfast in our pursuit of excellence and growth. This combined with our Nickel, Cobalt and Copper prospects in Quebec, Rare Earth projects in BC, and Gold Projects throughout Newfoundland and Ontario, make us uniquely positioned.
Highlights of our recent work include:
Marvel has that decided it will not be proceeding with its green fields prospects in Newfoundland, the Valentine South West, Slip, and Gander area prospects to enable the Company to focus resources on its more advanced prospects at Hope Brook, where Piedmont Lithium recently acquired a sizable interest in the neighboring project from Benton Resources, and its Victoria Lake Project adjacent to Caliber Mining's recent purchase of Marathon's Golds Valentine Deposit.
Marvel is opportunistically positioned in the Battery Metals, Rare Earth, Gold and Energy (Uranium) sectors.
Current Joint Ventures and Asset Sale
Marvel Project Portfolio
Joint Ventures, Plan of Arrangement, Subsidiaries
About Marvel Discovery Corp.
Marvel, listed on the TSX Venture Exchange for over 25 years, is a Canadian based emerging resource company. The Company is systematically exploring its extensive property positions in:
The Company's website is: https://marveldiscovery.ca/
ON BEHALF OF THE BOARD
Marvel Discovery Corp.
"Karim Rayani"
Karim Rayani
President/Chief Executive Officer, Director
Tel: 604 716-1036 Email: k@r7.capital
Disclaimer for Forward-Looking Information:
Certain statements in this release are forward-looking statements which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, or intentions regarding the future. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. There is no assurance any of the conditions for closing will be met. Forward-looking statements reflect the beliefs, opinions, and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release .
SOURCE: Marvel Discovery Corp.
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Highlights
The combined Exploration Target range is listed in Table 1:
Table 1 – Combined Exploration Target for Trafalgar, Brilliant and Link Zone
Flynn Gold’s Managing Director and CEO, Neil Marston states: “Following several successful drill campaigns testing the gold mineralisation at Golden Ridge, we are pleased to report an initial JORC-compliant Exploration Target for the Trafalgar, Brilliant and Link Zone prospects.
“The Exploration Target is open in all directions and encompasses less than 30% of the known gold anomalism at Golden Ridge which highlights the substantial future growth potential of this exciting project.
“This is a significant step toward our next goal of defining a maiden JORC Mineral Resource for the project. There is potential to significantly increase the tonnage and grade at Golden Ridge with in-fill and expansion drilling, which will be a major focus for the Company during 2025.”
Exploration Target
The Golden Ridge Project is located within EL17/2018 in North-east Tasmania (see Figure 7).
Flynn has calculated JORC compliant Exploration Targets for the Trafalgar, Brilliant and Link Zone prospects at Golden Ridge dated 8th November 2024. Table 2 below provides a summary of the Exploration Targets for each prospect:
Table 2 - Exploration Targets for Trafalgar, Brilliant and Link Zone prospects at the Golden Ridge project.
The combined Exploration Target only encompasses areas where Flynn has drill-tested vein mineralisation at locations shown in Figure 1 and does not include areas of anomalous soil geochemistry, which the Company considers to be highly prospective for gold mineralisation and intends to drill-test in the future.
The drill-tested Trafalgar, Brilliant and Link Zone prospects define a significant zone of gold mineralisation extending over a strike length of approximately 3km, which is contained within a broader 9km zone of gold anomalism that trends along the contact between the Golden Ridge granodiorite and the Mathinna supergroup metasediments (Figures 1 - 3).
Potential gold vein extensions at Trafalgar and Brilliant ,defined by anomalous gold-in-soil geochemistry along strike of and surrounding the Exploration Target veins, were not included in the Exploration Target calculation.
Work is currently in progress to in-fill these areas with soil sampling and trenching prior to exploration drill-testing.
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This article includes content from Flynn Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Newmont Corporation (NYSE: NEM, TSX: NGT, ASX: NEM, PNGX: NEM) (together with its affiliates, " Newmont " or the " Company ") announced today that Newcrest Canada Holdings Inc. (the " Vendor "), a wholly-owned subsidiary of Newmont, sold all 14,674,056 common shares of Azucar Minerals Ltd. (" Azucar ") held by the Vendor to Almadex Minerals Ltd. (" Almadex ") and certain directors and officers of Azucar (collectively with Almadex, the " Purchasers "), for an aggregate purchase price of $220,110.84, being $0.015 per share (the " Transaction "). The Transaction was completed pursuant to a share purchase agreement among the Vendor and the Purchasers dated as of October 21, 2024 (the " Share Purchase Agreement ").
Pursuant to the Transaction, the Vendor sold 14,674,056 common shares of Azucar (" Azucar Shares "), representing approximately 19.9% of the issued and outstanding Azucar Shares as of the date of the Share Purchase Agreement. Accordingly, the disposition of the Vendor's Azucar Shares represents a decrease in Newmont's ownership from approximately 19.9% to 0% of the issued and outstanding Azucar Shares.
The Vendor's Azucar Shares were sold in reliance on the "private agreement exemption" in Section 4.2 of National Instrument 62-104 Take-Over Bids and Issuer Bids (" NI 62-104 "). In particular, the purchase of the Azucar Shares was made from not more than 5 persons in the aggregate, the bid was not made generally to security holders of the class of securities that was the subject of the bid, and the value of the consideration paid by the Purchasers for the Azucar Shares, including brokerage fees and commissions, was not greater than 115% of the market price of the Azucar Shares at the date of the bid as determined in accordance with section 1.11 of NI 62-104.
This press release is issued pursuant to the early warning provisions of Canadian securities legislation. To obtain a copy of the Early Warning Report filed by Newmont under National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues , please contact Neil Backhouse at +1 (303) 837-5002 or investor.relations@newmont.com . A copy of the Early Warning Report to be filed by Almadex in connection with the transactions described above will be available on the Almadex's SEDAR+ profile at www.sedarplus.ca .
Newmont's address is 6900 E Layton Avenue, Suite 700, Denver, CO 80237.
About Newmont
Newmont is the world's leading gold company and a producer of copper, zinc, lead, and silver. The Company's world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. Newmont is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
At Newmont, our purpose is to create value and improve lives through sustainable and responsible mining. To learn more about Newmont's sustainability strategy and initiatives, go to www.newmont.com .
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107569334/en/
Investor Contact – Global
Neil Backhouse
investor.relations@newmont.com
Media Contact – Global
Jennifer Pakradooni
globalcommunications@newmont.com
News Provided by Business Wire via QuoteMedia
Designated News Release
THIRD QUARTER FINANCIAL RESULTS
"Wheaton achieved record cash flow from operations in the third quarter of 2024, underscoring the effectiveness of our business model in leveraging rising commodity prices, with our cash operating margins increasing by over 30% relative to the third quarter of 2023. Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage's Koné Project and an amendment to the existing stream on Rio2's Fenix Project. Together, these transactions further diversify our strategic partnerships and the geography of our portfolio. Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production, reinforcing Wheaton's already prominent position as a leader in the sector's growth landscape."
Solid Financial Results and Strong Balance Sheet
High Quality Asset Base
Leadership in Sustainability
Operational Overview
(all figures in US dollars unless otherwise noted) | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change | |||||||||||
Units produced | |||||||||||||||||
Gold ounces | 87,199 | 105,027 | (17.0) % | 262,698 | 261,226 | 0.6 % | |||||||||||
Silver ounces | 4,554 | 3,397 | 34.1 % | 15,083 | 12,985 | 16.2 % | |||||||||||
Palladium ounces | 4,034 | 4,006 | 0.7 % | 12,835 | 11,591 | 10.7 % | |||||||||||
Cobalt pounds | 397 | 183 | 117.6 % | 896 | 458 | 95.5 % | |||||||||||
Gold equivalent ounces 3 | 144,164 | 147,278 | (2.1) % | 448,388 | 419,330 | 6.9 % | |||||||||||
Units sold | |||||||||||||||||
Gold ounces | 75,694 | 74,426 | 1.7 % | 245,039 | 212,325 | 15.4 % | |||||||||||
Silver ounces | 3,875 | 2,965 | 30.7 % | 11,765 | 11,151 | 5.5 % | |||||||||||
Palladium ounces | 3,761 | 4,242 | (11.3) % | 12,836 | 10,580 | 21.3 % | |||||||||||
Cobalt pounds | 88 | 198 | (55.6) % | 485 | 786 | (38.3) % | |||||||||||
Gold equivalent ounces 3 | 122,715 | 111,935 | 9.6 % | 389,907 | 350,961 | 11.1 % | |||||||||||
Change in PBND and Inventory | |||||||||||||||||
Gold equivalent ounces 3 | 9,267 | 21,869 | 12.602 | 17,989 | 20,020 | 2,031 | |||||||||||
Revenue | $ | 308,253 | $ | 223,137 | 38.1 % | $ | 904,123 | $ | 702,573 | 28.7 % | |||||||
Net earnings | $ | 154,635 | $ | 116,371 | 32.9 % | $ | 440,993 | $ | 369,209 | 19.4 % | |||||||
Per share | $ | 0.341 | $ | 0.257 | 32.7 % | $ | 0.973 | $ | 0.815 | 19.4 % | |||||||
Adjusted net earnings 1 | $ | 152,803 | $ | 121,467 | 25.8 % | $ | 441,201 | $ | 368,481 | 19.7 % | |||||||
Per share 1 | $ | 0.337 | $ | 0.268 | 25.7 % | $ | 0.973 | $ | 0.814 | 19.5 % | |||||||
Operating cash flows | $ | 254,337 | $ | 171,103 | 48.6 % | $ | 708,110 | $ | 508,584 | 39.2 % | |||||||
Per share 1 | $ | 0.561 | $ | 0.378 | 48.4 % | $ | 1.562 | $ | 1.123 | 39.1 % |
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts. |
Financial Review
Revenues
Revenue in the third quarter of 2024 was $308 million (61% gold, 37% silver, 1% palladium and 1% cobalt), with the $85 million increase relative to the prior period quarter being primarily due to a 26% increase in the average realized gold equivalent³ price; and a 10% increase in the number of GEOs³ sold.
Revenue was $904 million in the nine months ended September 30, 2024 , representing a $202 million increase from the comparable period of the previous year due primarily to a 16% increase in the average realized gold equivalent³ price; and an 11% increase in the number of GEOs³ sold.
Cash Costs and Margin
Average cash costs¹ in the third quarter of 2024 were $437 per GEO³ as compared to $445 in the third quarter of 2023. This resulted in a cash operating margin¹ of $2,075 per GEO³ sold, an increase of 34% as compared with the third quarter of 2023, a result of the higher realized price per ounce coupled with the lower average cash costs due to changes in the sales mix.
Average cash costs¹ for the nine months ended September 30, 2024 were $434 per GEO³ as compared to $457 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,885 per GEO³ sold, a 22% increase from comparable period of the previous year.
Cash Flow from Operations
Operating cash flow in the third quarter of 2024 amounted to $254 million , with the $83 million increase due primarily to the higher gross margin.
Operating cash flows for the nine months ended September 30, 2024 amounted to $708 million , with the $200 million increase from the comparable period of the previous year being due primarily to the higher gross margin.
Balance Sheet (at September 30, 2024 )
Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD Pillar Two model rules ("Pillar Two"), under which large multinational entities are subject to a 15% GMT. On June 20, 2024 , Canada's Global Minimum Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two model rules where in scope companies are subject to a 15% GMT for fiscal years commencing on or after December 31, 2023 . With the enactment of the GMTA on June 20, 2024 , the income of the Company's subsidiaries which operate in jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the three months ended September 30, 2024 an amount of $28 million current tax expense associated with GMT was recorded (nine months - $78 million ). GMT accrued to December 31, 2024 , is payable on or before June 30, 2026 (18 months following year-end).
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of attributable gold, a decrease of approximately 9% relative to the third quarter of 2023, primarily due to lower grades, partially offset by higher throughput. On July 25, 2024 , Vale S.A. ("Vale") reported that the Salobo III processing plant operations resumed in July, after being halted for 31 days due to a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355 kt has been maintained.
Antamina : In the third quarter of 2024, Antamina produced 0.9 million ounces of attributable silver, an increase of approximately 3% relative to the third quarter of 2023 primarily due to higher recoveries, partially offset by lower throughput.
Peñasquito : In the third quarter of 2024, Peñasquito produced 1.8 million ounces of attributable silver, with Peñasquito producing no ounces in the third quarter of 2023 as a result of a labour strike which lasted from June 7 to October 13, 2023 .
Constancia : In the third quarter of 2024, Constancia produced 0.6 million ounces of attributable silver and 10,400 ounces of attributable gold, a decrease of approximately 7% and 45%, respectively, relative to the third quarter of 2023. The decrease in silver production was primarily due to lower recoveries. The decrease in gold production was primarily the result of lower gold grades due largely to the planned stripping activity in the Pampacancha pit, which commenced in the second quarter, and continued throughout the third quarter. On August 13, 2024 , Hudbay Minerals Inc. ("Hudbay") reported that the stripping program for the next mining phase at Pampacancha was underway and expected to lead to significantly higher copper and gold grades in the fourth quarter of 2024.
Sudbury : In the third quarter of 2024, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 11% relative to the third quarter of 2023, due to higher throughput.
Stillwater : In the third quarter of 2024, the Stillwater mines produced 2,200 ounces of attributable gold and 4,000 ounces of attributable palladium, a decrease of approximately 8% for gold relative to the third quarter of 2023, due primarily to lower recoveries, while palladium production was virtually unchanged. On September 12, 2024 , Sibanye Stillwater ("Sibanye") announced that as a result of low palladium prices it was placing the Stillwater West operations into care and maintenance, while Stillwater East and East Boulder operations continue to operate. Sibanye reports that Stillwater West could return to production as prices permit. Based on Sibanye's Q3 MD&A, the Company's management estimates that with the Stillwater West operations in care and maintenance, 2025 production relative to the Stillwater PMPA will be approximately 40% to 45% lower than historical levels.
Voisey's Bay: In the third quarter of 2024, the Voisey's Bay mine produced 397,000 pounds of attributable cobalt, an increase of approximately 118% relative to the third quarter of 2023, as the transitional period between the depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's Bay underground mine nears completion. Vale reported that physical completion of the Voisey's Bay underground mine extension was 99% at the end of the third quarter, with all surface construction completed and the commissioning of the Reid Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material Handling system achieved mechanical completion in early October and Vale indicated that the focus is now on commissioning, with handover to Operations within 2024. Demobilization efforts are ongoing, with Surface contractors already fully demobilized.
Other Silver: In the third quarter of 2024, total Other Silver attributable production was 1.2 million ounces, a decrease of approximately 34% relative to the third quarter of 2023. The decrease from the comparable period of the prior year is primarily due to the temporary suspension of attributable ore mined at Aljustrel commencing September 24, 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.
Recent Development Asset Updates
Blackwater Project: On November 6, 2024 , Artemis Gold Inc., ("Artemis") announced that overall construction was over 95% complete as of September 30, 2024 and first gold pour is targeted for late Q4 2024. Construction of the tailings storage facility is ready to allow for the commencement of commissioning of the plant. Artemis reported that the initial mining fleet has been commissioned and pre-stripping of the mine, as well as the construction of haul roads are well advanced.
Platreef Project: On October 30, 2024 , Ivanhoe Mines ("Ivanhoe") reported that construction of the Phase 1 concentrator was completed on schedule early in the third quarter. First ore is scheduled for the second half of 2025, while underground development prioritizes development to accelerate Phase 2. Ivanhoe also states that work continues on the updated feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic assessment of the previously announced Phase 3 expansion to 10 Mtpa processing capacity. Both studies are now expected to be published in Q1 2025.
Goose Project: On November 6 2024, B2Gold Corp. ("B2Gold") announced that all planned construction year to date in 2024 has been completed. Project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024 , with ten ships and one barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign.
Marmato Mine: On July 16, 2024 , Aris Mining Corporation ("Aris") reported that the Lower Mine project is on track for first gold pour by the end of 2025, followed by an approximate six-month ramp-up period. On October 7, 2024 , Aris provided an update that the Marmato Lower Mine expansion is progressing on schedule, with the site access road and portal face now complete and the contractor preparing to initiate work on the twin declines. Both the SAG and ball mill fabrication are progressing on schedule for completion before the end of 2024.
Curipamba Project: On July 31, 2024 , Silvercorp Metals Inc. ("Silvercorp") completed the previously announced acquisition of all of the issued and outstanding common shares of Adventus Mining Corporation. Under the terms of the Curipamba PMPA, within 30 days of a change of control, Silvercorp had a one-time option to repurchase 33% of the gold and silver stream which expired unexercised.
Marathon Project : On July 31, 2024 , Generation Mining Limited ("Gen Mining") reported that the federal government has approved amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will allow for the construction of specific water management structures and operation of key infrastructure for the Marathon Project. On August 7, 2024 , Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization for the Marathon project. Gen Mining also states that receipt of the few remaining provincial and federal approvals and permits required for construction is expected in the coming months. Following which, the Marathon project will have all of the key government permits and approvals required for construction.
Santo Domingo : On July 31, 2024 , Capstone Copper Corp. ("Capstone") published the results of an updated feasibility study for the Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-year mine life supported by higher mineral reserve estimates. The report indicates that total gold production is expected to average 35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per year. Capstone has reported that with construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly announced two-year, $25 million exploration program at Mantoverde, aimed at supporting the two future processing centers between Mantoverde and Santo Domingo .
Curraghinalt Project: On May 3, 2024 , the Planning Appeals Commission & Water Appeals Commission (the "Commission") in Northern Ireland concluded that the water abstraction and impoundment licenses ("Water Licenses") relative to the Curraghinalt Project have been rescinded and that license applications would need to be resubmitted, and subsequent public inquiry referrals held. Dalradian has re-submitted two new applications for the abstraction licenses and those licenses were received by the Commission on September 5, 2024 . The Commission has set new dates to resume the public inquiry process beginning January 13 , 2025.
Fenix Project: On October 2, 2024 , Rio2 Limited ("Rio2") announced that its Chilean subsidiary has received the principal Sectorial Permits it requires to begin construction at the Fenix project. These Sectorial Permits represent the last governmental authorization required to enable the start of the construction phase and subsequent operation of the Fenix mine.
Copper World Project: On August 29, 2024 , Hudbay announced that it has received an Aquifer Protection Permit for the Copper World project from the Arizona Department of Environmental Quality. The issuance of this permit is a key milestone in the advancement of Copper World. The last key state-level permit is the Air Quality Permit which is progressing as planned.
Corporate Development
Koné Gold Project
On October 23, 2024 , the Company entered into a PMPA (the "Koné Gold PMPA") with Montage Gold Corp. ("Montage") in respect of its 90% owned Koné Gold Project located in Côte d'Ivoire. Under the terms of the agreement, Wheaton will purchase 19.5% of the payable gold production until 400,000 ounces of gold have been delivered (subject to adjustment if there are delays in deliveries relative to an agreed schedule), 10.8% of the gold production until the delivery of a further 130,000 ounces and 5.4% gold production thereafter for the life of mine. Under the terms of the Koné Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million , payable in four equal installment payments during construction, subject to certain conditions, including that all permits have been obtained.
In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 20% of the spot gold price. For the first five years after the PMPA is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 per ounce or greater than $2,700 per ounce.
The Company has also provided Montage with a secured debt facility of up to $75 million (the "Facility").
Amendment to the Fenix PMPA
On November 15, 2021 , the Company acquired a gold stream in respect of gold production from the Fenix Project (the "Fenix PMPA"). Under the terms of the Fenix PMPA, the Company was to acquire an amount of gold equal to 6% of the gold production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life of mine.
On October 21, 2024 , the Company amended the Fenix PMPA. Under the terms of the amended agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total, subject to adjustment if there are delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds under the original Fenix PMPA (as described above). Rio2 has a one-time option to terminate the requirement to deliver the additional gold production from the end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the original Fenix PMPA. Finally, the Company has also agreed to adjust the production payment for all gold ounces delivered to 20% of the spot gold price. In exchange for the amendment, the Company is committed to pay additional upfront cash consideration of $100 million , payable in two equal installments, subject to various customary conditions being satisfied.
Wheaton will also provide a $20 million contingent secured debt facility in the form of a standby loan facility. Lastly, Wheaton has committed to participate in a private placement of Rio2 common shares for Cdn$5 million at a price per share equal to, and concurrent with, a public offering by Rio2.
Sustainability
Future of Mining Challenge
On September 16, 2024 , Wheaton announced the launch of the inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology. The Future of Mining Challenge invites cleantech ventures from around the world to submit and propose industry solutions. This year's challenge focuses on identifying eligible technologies with the potential to reduce greenhouse gas emissions across mining operations. In alignment with Wheaton's business model, the solutions should be applicable to base and/or precious metal mining. They should also be scalable globally, with the aim of future implementation at operating mines. The challenge is being supported by Foresight Canada. Submissions for challenge applications opened in September 2024 , and the winner will be announced in March 2025 at the PDAC Convention in Toronto , the world's largest mining conference. More information can be found at www.futureofmining.ca .
Community Investment Program
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 GEOs 3 of other metals, resulting in annual production of approximately 550,000 to 620,000 GEOs 3 , unchanged from previous guidance 2,3 .
Annual production is forecast to increase by approximately 40% to over 800,000 GEOs 3 by 2028, with average annual production forecast to grow to over 850,000 GEO 3 in years 2029 to 2033, also unchanged from previous guidance 6 . The transactions announced in 2024, including the new stream associated with the Koné Project and the amendment related to the Fenix Project, have not been incorporated into the long-term guidance.
The Company will provide updated longer-term guidance in normal course in the first quarter of 2025, which will incorporate the impact of recent developments and the acquisitions announced in 2024. 2,3
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, November 8, 2024 , starting at 11:00 am ET ( 8:00 am PT ) to discuss these results. To participate in the live call, please use one of the following methods:
RapidConnect URL: Click here
Live webcast: Click here
Dial toll free: 1-888-510-2154 or 1-437-900-0527
Conference Call ID: 48142
The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call. The conference call will be recorded and available until November 15, 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 Canada or the US: 1-289-819-1450
Dial from outside Canada or the US: 1-888-660-6345
Pass code: 48142
Archived webcast: Click here
This earnings release should be read in conjunction with Wheaton Precious Metals' MD&A and Financial Statements, which are available on the Company's website at www.wheatonpm.com and have been posted on SEDAR+ at www.sedarplus.ca .
Mr. Wes Carson , P.Eng., Vice President, Mining Operations, Neil Burns , P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky , P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx .
Condensed Interim Consolidated Statements of Earnings
Three Months Ended | Nine Months Ended | |||||||||||
(US dollars and shares in thousands, except per share amounts - unaudited) | 2024 | 2023 | 2024 | 2023 | ||||||||
Sales | $ | 308,253 | $ | 223,137 | $ | 904,123 | $ | 702,573 | ||||
Cost of sales | ||||||||||||
Cost of sales, excluding depletion | $ | 55,310 | $ | 49,808 | $ | 170,872 | $ | 160,413 | ||||
Depletion | 55,530 | 46,435 | 178,071 | 145,908 | ||||||||
Total cost of sales | $ | 110,840 | $ | 96,243 | $ | 348,943 | $ | 306,321 | ||||
Gross margin | $ | 197,413 | $ | 126,894 | $ | 555,180 | $ | 396,252 | ||||
General and administrative expenses | 9,488 | 8,606 | 30,193 | 28,922 | ||||||||
Share based compensation | 9,628 | 4,336 | 17,150 | 16,217 | ||||||||
Donations and community investments | 2,352 | 1,736 | 4,626 | 5,054 | ||||||||
Earnings from operations | $ | 175,945 | $ | 112,216 | $ | 503,211 | $ | 346,059 | ||||
Gain on disposal of mineral stream interests | - | - | - | 5,027 | ||||||||
Other income (expense) | 7,605 | 10,707 | 19,922 | 26,961 | ||||||||
Earnings before finance costs and income taxes | $ | 183,550 | $ | 122,923 | $ | 523,133 | $ | 378,047 | ||||
Finance costs | 1,404 | 1,407 | 4,144 | 4,138 | ||||||||
Earnings before income taxes | $ | 182,146 | $ | 121,516 | $ | 518,989 | $ | 373,909 | ||||
Income tax expense | 27,511 | 5,145 | 77,996 | 4,700 | ||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | ||||
Basic earnings per share | $ | 0.341 | $ | 0.257 | $ | 0.973 | $ | 0.815 | ||||
Diluted earnings per share | $ | 0.340 | $ | 0.257 | $ | 0.971 | $ | 0.814 | ||||
Weighted average number of shares outstanding | ||||||||||||
Basic | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted | 454,302 | 453,538 | 454,037 | 453,419 | ||||||||
Condensed Interim Consolidated Balance Sheets
As at | As at | |||
(US dollars in thousands - unaudited) | 2024 | 2023 | ||
Assets | ||||
Current assets | ||||
Cash and cash equivalents | $ | 694,085 | $ | 546,527 |
Accounts receivable | 10,435 | 10,078 | ||
Cobalt inventory | - | 1,372 | ||
Income taxes receivable | 1,392 | 5,935 | ||
Other | 3,938 | 3,499 | ||
Total current assets | $ | 709,850 | $ | 567,411 |
Non-current assets | ||||
Mineral stream interests | $ | 6,456,123 | $ | 6,122,441 |
Early deposit mineral stream interests | 47,094 | 47,093 | ||
Mineral royalty interests | 40,429 | 13,454 | ||
Long-term equity investments | 103,068 | 246,678 | ||
Property, plant and equipment | 7,535 | 7,638 | ||
Other | 22,080 | 26,470 | ||
Total non-current assets | $ | 6,676,329 | $ | 6,463,774 |
Total assets | $ | 7,386,179 | $ | 7,031,185 |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities | $ | 14,766 | $ | 13,458 |
Current portion of performance share units | 12,522 | 12,013 | ||
Current portion of lease liabilities | 324 | 604 | ||
Total current liabilities | $ | 27,612 | $ | 26,075 |
Non-current liabilities | ||||
Performance share units | $ | 9,301 | $ | 9,113 |
Lease liabilities | 5,340 | 5,625 | ||
Global minimum tax | 78,361 | - | ||
Deferred income taxes | 264 | 232 | ||
Pension liability | 5,287 | 4,624 | ||
Total non-current liabilities | $ | 98,553 | $ | 19,594 |
Total liabilities | $ | 126,165 | $ | 45,669 |
Shareholders' equity | ||||
Issued capital | $ | 3,797,558 | $ | 3,777,323 |
Reserves | (44,489) | (40,091) | ||
Retained earnings | 3,506,945 | 3,248,284 | ||
Total shareholders' equity | $ | 7,260,014 | $ | 6,985,516 |
Total liabilities and shareholders' equity | $ | 7,386,179 | $ | 7,031,185 |
Condensed Interim Consolidated Statements of Cash Flows
Three Months Ended | Nine Months Ended | ||||||||
(US dollars in thousands - unaudited) | 2024 | 2023 | 2024 | 2023 | |||||
Operating activities | |||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | |
Adjustments for | |||||||||
Depreciation and depletion | 55,887 | 46,784 | 179,111 | 147,031 | |||||
Gain on disposal of mineral stream interest | - | - | - | (5,027) | |||||
Interest expense | 71 | 78 | 216 | 131 | |||||
Equity settled stock based compensation | 1,725 | 1,732 | 4,978 | 5,133 | |||||
Performance share units - expense | 7,903 | 2,604 | 12,172 | 11,084 | |||||
Performance share units - paid | - | - | (11,129) | (16,675) | |||||
Pension expense | 336 | 329 | 794 | 787 | |||||
Pension paid | - | - | (43) | (116) | |||||
Income tax (recovery) expense | 27,511 | 5,145 | 77,996 | 4,700 | |||||
(Gain) loss on fair value adjustment of share purchase warrants held | (523) | 143 | (903) | 248 | |||||
Investment income recognized in net earnings | (7,249) | (10,537) | (18,564) | (26,564) | |||||
Other | 2,246 | 163 | 2,646 | 662 | |||||
Change in non-cash working capital | 2,837 | (489) | 1,329 | (876) | |||||
Cash generated from operations before income taxes and interest | $ | 245,379 | $ | 162,323 | $ | 689,596 | $ | 489,727 | |
Income taxes paid | 2,925 | (912) | 2,734 | (5,244) | |||||
Interest paid | (71) | (79) | (219) | (112) | |||||
Interest received | 6,104 | 9,771 | 15,999 | 24,213 | |||||
Cash generated from operating activities | $ | 254,337 | $ | 171,103 | $ | 708,110 | $ | 508,584 | |
Financing activities | |||||||||
Credit facility extension fees | $ | (11) | $ | (13) | $ | (936) | $ | (859) | |
Share purchase options exercised | 847 | 93 | 13,011 | 10,603 | |||||
Lease payments | (149) | (169) | (444) | (548) | |||||
Dividends paid | (69,984) | (66,994) | (209,108) | (198,085) | |||||
Cash used for financing activities | $ | (69,297) | $ | (67,083) | $ | (197,477) | $ | (188,889) | |
Investing activities | |||||||||
Mineral stream interests | $ | (25,876) | $ | (90,710) | $ | (512,383) | $ | (210,944) | |
Early deposit mineral stream interests | - | (250) | - | (1,000) | |||||
Mineral royalty interest | (4,956) | (3,602) | (26,981) | (3,602) | |||||
Net proceeds on disposal of mineral stream interests | - | - | - | 46,400 | |||||
Acquisition of long-term investments | (728) | (5,006) | (1,479) | (13,181) | |||||
Proceeds on disposal of long-term investments | - | - | 177,088 | 202 | |||||
Dividends received | 482 | 700 | 1,663 | 1,617 | |||||
Other | (155) | (35) | (944) | (1,804) | |||||
Cash used for investing activities | $ | (31,233) | $ | (98,903) | $ | (363,036) | $ | (182,312) | |
Effect of exchange rate changes on cash and cash equivalents | $ | 61 | $ | (35) | $ | (39) | $ | 447 | |
Increase in cash and cash equivalents | $ | 153,868 | $ | 5,082 | $ | 147,558 | $ | 137,830 | |
Cash and cash equivalents, beginning of period | 540,217 | 828,837 | 546,527 | 696,089 | |||||
Cash and cash equivalents, end of period | $ | 694,085 | $ | 833,919 | $ | 694,085 | $ | 833,919 | |
Summary of Units Produced
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |
Gold ounces produced ² | ||||||||
Salobo | 62,689 | 63,225 | 61,622 | 71,778 | 69,045 | 54,804 | 43,677 | 37,939 |
Sudbury 3 | 4,287 | 4,477 | 5,618 | 5,823 | 3,857 | 5,818 | 6,203 | 5,270 |
Constancia | 10,446 | 6,086 | 13,897 | 22,292 | 19,003 | 7,444 | 6,905 | 10,496 |
San Dimas 4 | 6,882 | 7,089 | 7,542 | 10,024 | 9,995 | 11,166 | 10,754 | 10,037 |
Stillwater 5 | 2,247 | 2,099 | 2,637 | 2,341 | 2,454 | 2,017 | 1,960 | 2,185 |
Other | ||||||||
Marmato | 648 | 584 | 623 | 668 | 673 | 639 | 457 | 533 |
Minto 6 | - | - | - | - | - | 1,292 | 3,063 | 2,567 |
Total Other | 648 | 584 | 623 | 668 | 673 | 1,931 | 3,520 | 3,100 |
Total gold ounces produced | 87,199 | 83,560 | 91,939 | 112,926 | 105,027 | 83,180 | 73,019 | 69,027 |
Silver ounces produced 2 | ||||||||
Peñasquito 7 | 1,785 | 2,263 | 2,643 | 1,036 | - | 1,744 | 2,076 | 1,761 |
Antamina | 925 | 992 | 806 | 1,030 | 894 | 984 | 872 | 1,067 |
Constancia | 648 | 451 | 640 | 836 | 697 | 420 | 552 | 655 |
Other | ||||||||
Los Filos | 42 | 27 | 48 | 26 | 32 | 41 | 45 | 14 |
Zinkgruvan | 537 | 699 | 641 | 510 | 785 | 374 | 632 | 664 |
Neves-Corvo | 425 | 432 | 524 | 573 | 486 | 407 | 436 | 369 |
Aljustrel 8 | - | - | - | - | 327 | 279 | 343 | 313 |
Cozamin | 185 | 177 | 173 | 185 | 165 | 184 | 141 | 157 |
Marmato | 7 | 6 | 7 | 10 | 11 | 7 | 8 | 9 |
Yauliyacu 9 | - | - | - | - | - | - | - | 261 |
Minto 6 | - | - | - | - | - | 14 | 29 | 33 |
Total Other | 1,196 | 1,341 | 1,393 | 1,304 | 1,806 | 1,306 | 1,634 | 1,820 |
Total silver ounces produced | 4,554 | 5,047 | 5,482 | 4,206 | 3,397 | 4,454 | 5,134 | 5,303 |
Palladium ounces produced ² | ||||||||
Stillwater 5 | 4,034 | 4,338 | 4,463 | 4,209 | 4,006 | 3,880 | 3,705 | 3,869 |
Cobalt pounds produced ² | ||||||||
Voisey's Bay | 397 | 259 | 240 | 215 | 183 | 152 | 124 | 128 |
GEOs produced 10 | 144,164 | 145,449 | 158,775 | 164,796 | 147,278 | 137,323 | 134,730 | 132,780 |
Average payable rate 2 | ||||||||
Gold | 95.1 % | 95.0 % | 94.7 % | 95.1 % | 95.4 % | 95.1 % | 95.1 % | 94.9 % |
Silver | 83.9 % | 84.3 % | 84.5 % | 83.0 % | 78.4 % | 83.7 % | 83.1 % | 84.2 % |
Palladium | 98.4 % | 97.3 % | 97.8 % | 98.0 % | 94.1 % | 94.1 % | 96.3 % | 93.9 % |
Cobalt | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % | 93.3 % |
GEO 10 | 91.1 % | 90.7 % | 90.7 % | 91.6 % | 90.9 % | 90.9 % | 89.8 % | 89.9 % |
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. |
4) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. For reference, attributable silver production from prior periods is as follows: Q3 2024 - 262,000 ounces; Q2 2024 - 285,000 ounces; Q1 2024 - 291,000 ounces; Q4 2023 - 378,000 ounces; Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces. |
5) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
6) | On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine. |
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 $132 million. |
10) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Summary of Units Sold
Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | |
Gold ounces sold | ||||||||
Salobo | 58,101 | 54,962 | 56,841 | 76,656 | 44,444 | 46,030 | 35,966 | 41,029 |
Sudbury 2 | 2,495 | 5,679 | 4,129 | 5,011 | 4,836 | 4,775 | 4,368 | 4,988 |
Constancia | 5,186 | 6,640 | 20,123 | 19,925 | 12,399 | 9,619 | 6,579 | 6,013 |
San Dimas | 7,022 | 6,801 | 7,933 | 10,472 | 9,695 | 11,354 | 10,651 | 10,943 |
Stillwater 3 | 1,635 | 2,628 | 2,355 | 2,314 | 1,985 | 2,195 | 2,094 | 1,783 |
Other | ||||||||
Marmato | 550 | 616 | 638 | 633 | 792 | 467 | 480 | 473 |
777 | - | - | - | - | 275 | 153 | 126 | 785 |
Minto | - | - | - | - | - | 701 | 2,341 | 2,982 |
Santo Domingo 4 | 447 | - | - | - | - | - | - | - |
Curipamba 4 | 258 | - | - | - | - | - | - | - |
Total Other | 1,255 | 616 | 638 | 633 | 1,067 | 1,321 | 2,947 | 4,240 |
Total gold ounces sold | 75,694 | 77,326 | 92,019 | 115,011 | 74,426 | 75,294 | 62,605 | 68,996 |
Silver ounces sold | ||||||||
Peñasquito | 1,667 | 1,482 | 1,839 | 442 | 453 | 1,913 | 1,483 | 2,066 |
Antamina | 989 | 917 | 762 | 1,091 | 794 | 963 | 814 | 1,114 |
Constancia | 366 | 422 | 726 | 665 | 435 | 674 | 366 | 403 |
Other | ||||||||
Los Filos | 26 | 24 | 44 | 24 | 30 | 37 | 34 | 16 |
Zinkgruvan | 488 | 597 | 297 | 449 | 714 | 370 | 520 | 547 |
Neves-Corvo | 185 | 216 | 243 | 268 | 245 | 132 | 171 | 80 |
Aljustrel | - | - | 1 | 86 | 142 | 182 | 205 | 156 |
Cozamin | 148 | 158 | 147 | 141 | 139 | 150 | 119 | 150 |
Marmato | 6 | 7 | 8 | 9 | 11 | 7 | 7 | 7 |
Yauliyacu | - | - | - | - | - | - | - | 337 |
Minto | - | - | - | - | - | 7 | 29 | 23 |
Keno Hill | - | - | - | - | - | - | 1 | 1 |
777 | - | - | - | - | 2 | 2 | - | 35 |
Total Other | 853 | 1,002 | 740 | 977 | 1,283 | 887 | 1,086 | 1,352 |
Total silver ounces sold | 3,875 | 3,823 | 4,067 | 3,175 | 2,965 | 4,437 | 3,749 | 4,935 |
Palladium ounces sold | ||||||||
Stillwater 3 | 3,761 | 4,301 | 4,774 | 3,339 | 4,242 | 3,392 | 2,946 | 3,396 |
Cobalt pounds sold | ||||||||
Voisey's Bay | 88 | 88 | 309 | 288 | 198 | 265 | 323 | 187 |
GEOs sold 5 | 122,715 | 124,009 | 143,184 | 155,059 | 111,935 | 129,734 | 109,293 | 128,662 |
Cumulative payable units PBND 6 | ||||||||
Gold ounces | 96,158 | 88,205 | 86,114 | 91,092 | 98,715 | 72,916 | 77,377 | 70,562 |
Silver ounces | 2,748 | 2,801 | 2,368 | 1,802 | 1,486 | 1,790 | 2,531 | 2,013 |
Palladium ounces | 6,186 | 6,018 | 6,198 | 6,666 | 5,607 | 6,122 | 5,751 | 5,098 |
Cobalt pounds | 796 | 513 | 360 | 356 | 377 | 251 | 285 | 258 |
GEO 5 | 136,027 | 126,761 | 118,785 | 117,465 | 121,058 | 98,186 | 111,217 | 97,936 |
Inventory on hand | ||||||||
Cobalt pounds | - | - | - | 88 | 155 | 310 | 398 | 633 |
1) | All figures in thousands except gold and palladium ounces sold. |
2) | Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. |
3) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
4) | The ounces sold under Santo Domingo and Curipamba relate to ounces received due to the delay ounce provision as per the respective PMPA. Please see the Company's MD&A for more information. |
5) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
6) | Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received. |
Results of Operations
The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.
Three Months Ended September 30, 2024 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 62,689 | 58,101 | $ | 2,490 | $ | 425 | $ | 378 | $ | 144,656 | $ | 98,016 | $ | 122,916 | $ | 2,616,346 |
Sudbury 5 | 4,287 | 2,495 | 2,519 | 400 | 1,326 | 6,286 | 1,979 | 4,798 | 246,918 | |||||||
Constancia | 10,446 | 5,186 | 2,490 | 422 | 323 | 12,912 | 9,048 | 10,722 | 70,095 | |||||||
San Dimas | 6,882 | 7,022 | 2,490 | 637 | 290 | 17,482 | 10,975 | 13,010 | 138,507 | |||||||
Stillwater | 2,247 | 1,635 | 2,490 | 438 | 421 | 4,071 | 2,667 | 3,355 | 208,474 | |||||||
Other 6 | 648 | 1,255 | 2,481 | 192 | 1,584 | 3,114 | 886 | 2,874 | 901,880 | |||||||
87,199 | 75,694 | $ | 2,491 | $ | 440 | $ | 418 | $ | 188,521 | $ | 123,571 | $ | 157,675 | $ | 4,182,220 | |
Silver | ||||||||||||||||
Peñasquito | 1,785 | 1,667 | $ | 29.58 | $ | 4.50 | $ | 4.86 | $ | 49,329 | $ | 33,725 | $ | 41,825 | $ | 253,461 |
Antamina | 925 | 989 | 29.58 | 6.06 | 8.46 | 29,257 | 14,893 | 23,260 | 498,029 | |||||||
Constancia | 648 | 366 | 29.58 | 6.23 | 6.10 | 10,822 | 6,310 | 8,543 | 170,242 | |||||||
Other 7 | 1,196 | 853 | 30.17 | 4.34 | 4.83 | 25,741 | 17,912 | 22,594 | 645,485 | |||||||
4,554 | 3,875 | $ | 29.71 | $ | 5.03 | $ | 5.89 | $ | 115,149 | $ | 72,840 | $ | 96,222 | $ | 1,567,217 | |
Palladium | ||||||||||||||||
Stillwater | 4,034 | 3,761 | $ | 969 | $ | 173 | $ | 429 | $ | 3,644 | $ | 1,380 | $ | 2,994 | $ | 215,082 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 78,820 | |||||||
4,034 | 3,761 | $ | 969 | $ | 173 | $ | 429 | $ | 3,644 | $ | 1,380 | $ | 2,994 | $ | 293,902 | |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,451 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 57,588 | |||||||
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 67,039 | |
Cobalt | ||||||||||||||||
Voisey's Bay | 397 | 88 | $ | 10.65 | $ | 2.15 | $ | 12.78 | $ | 939 | $ | (378) | $ | 321 | $ | 345,745 |
Operating results | $ | 308,253 | $ | 197,413 | $ | 257,212 | $ | 6,456,123 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (9,488) | $ | (6,215) | ||||||||||||
Share based compensation | (9,628) | - | ||||||||||||||
Donations and community investments | (2,352) | (2,198) | ||||||||||||||
Finance costs | (1,404) | (1,051) | ||||||||||||||
Other | 7,605 | 3,664 | ||||||||||||||
Income tax | (27,511) | 2,925 | ||||||||||||||
Total other | $ | (42,778) | $ | (2,875) | $ | 930,056 | ||||||||||
$ | 154,635 | $ | 254,337 | $ | 7,386,179 | |||||||||||
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) | Includes the non-cash per ounce cost of sale associated with delay ounces. Please see the Company's MD&A for more information. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
6) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, Santo Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and Kudz Ze Kayah gold interests. Other includes ounces sold that were received under the delay ounce provisions of each of the Santo Domingo and Curipamba PMPAs. Please see the Company's MD&A for more information. |
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, Minto, Pascua-Lama, Copper World, Navidad, Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests. |
Three Months Ended September 30, 2023 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 69,045 | 44,444 | $ | 1,944 | $ | 420 | $ | 330 | $ | 86,395 | $ | 53,026 | $ | 67,710 | $ | 2,341,485 |
Sudbury 4 | 3,857 | 4,836 | 1,950 | 400 | 1,204 | 9,428 | 1,669 | 7,494 | 268,224 | |||||||
Constancia | 19,003 | 12,399 | 1,944 | 419 | 316 | 24,102 | 14,991 | 18,906 | 86,555 | |||||||
San Dimas | 9,995 | 9,695 | 1,944 | 631 | 260 | 18,846 | 10,216 | 12,732 | 147,638 | |||||||
Stillwater | 2,454 | 1,985 | 1,944 | 349 | 510 | 3,859 | 2,154 | 3,167 | 212,650 | |||||||
Other 5 | 673 | 1,067 | 1,945 | 368 | 391 | 2,077 | 1,266 | 1,684 | 557,035 | |||||||
105,027 | 74,426 | $ | 1,944 | $ | 444 | $ | 381 | $ | 144,707 | $ | 83,322 | $ | 111,693 | $ | 3,613,587 | |
Silver | ||||||||||||||||
Peñasquito | - | 453 | $ | 23.82 | $ | 4.43 | $ | 4.06 | $ | 10,804 | $ | 6,952 | $ | 8,795 | $ | 278,028 |
Antamina | 894 | 794 | 23.82 | 4.81 | 7.06 | 18,915 | 9,496 | 15,097 | 527,227 | |||||||
Constancia | 697 | 435 | 23.82 | 6.18 | 6.24 | 10,360 | 4,958 | 7,674 | 183,736 | |||||||
Other 6 | 1,806 | 1,283 | 23.62 | 5.15 | 2.64 | 30,293 | 20,301 | 19,439 | 549,641 | |||||||
3,397 | 2,965 | $ | 23.73 | $ | 5.10 | $ | 4.57 | $ | 70,372 | $ | 41,707 | $ | 51,005 | $ | 1,538,632 | |
Palladium | ||||||||||||||||
Stillwater | 4,006 | 4,242 | $ | 1,251 | $ | 223 | $ | 459 | $ | 5,307 | $ | 2,416 | $ | 4,361 | $ | 222,154 |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,450 |
Cobalt | ||||||||||||||||
Voisey's Bay | 183 | 198 | $ | 13.87 | $ | 3.66 ⁷ | $ | 12.98 | $ | 2,751 | $ | (551) | $ | 4,235 | $ | 353,631 |
Operating results | $ | 223,137 | $ | 126,894 | $ | 171,294 | $ | 5,737,454 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (8,606) | $ | (6,321) | ||||||||||||
Share based compensation | (4,336) | - | ||||||||||||||
Donations and community investments | (1,736) | (1,750) | ||||||||||||||
Finance costs | (1,407) | (1,078) | ||||||||||||||
Other | 10,707 | 9,870 | ||||||||||||||
Income tax | (5,145) | (912) | ||||||||||||||
Total other | $ | (10,523) | $ | (191) | $ | 1,144,061 | ||||||||||
$ | 116,371 | $ | 171,103 | $ | 6,881,515 | |||||||||||
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
5) | Other gold interests are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. |
6) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests, the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025. |
7) | Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million, resulting in a decrease of $0.51 per pound of cobalt sold. |
Comparative Results of Operations on a GEO Basis
Q3 2024 | Q3 2023 | Change | Change | ||||||||
GEO Production 1, 2 | 144,164 | 147,278 | (3,114) | (2.1) % | |||||||
GEO Sales 2 | 122,715 | 111,935 | 10,780 | 9.6 % | |||||||
Average price per GEO sold 2 | $ | 2,512 | $ | 1,993 | $ | 519 | 26.0 % | ||||
Revenue | $ | 308,253 | $ | 223,137 | $ | 85,116 | 38.1 % | ||||
Cost of sales, excluding depletion | $ | 55,310 | $ | 49,808 | $ | (5,502) | (11.0) % | ||||
Depletion | 55,530 | 46,435 | (9,095) | (19.6) % | |||||||
Cost of Sales | $ | 110,840 | $ | 96,243 | $ | (14,597) | (15.2) % | ||||
Gross Margin | $ | 197,413 | $ | 126,894 | $ | 70,519 | 55.6 % | ||||
General and administrative expenses | 9,488 | 8,606 | (882) | (10.2) % | |||||||
Share based compensation | 9,628 | 4,336 | (5,292) | (122.0) % | |||||||
Donations and community investments | 2,352 | 1,736 | (616) | (35.5) % | |||||||
Earnings from Operations | $ | 175,945 | $ | 112,216 | $ | 63,729 | 56.8 % | ||||
Other income (expense) | 7,605 | 10,707 | (3,102) | (29.0) % | |||||||
Earnings before finance costs and income taxes | $ | 183,550 | $ | 122,923 | $ | 60,627 | 49.3 % | ||||
Finance costs | 1,404 | 1,407 | 3 | 0.2 % | |||||||
Earnings before income taxes | $ | 182,146 | $ | 121,516 | $ | 60,630 | 49.9 % | ||||
Income tax expense | 27,511 | 5,145 | (22,366) | (434.7) % | |||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 38,264 | 32.9 % |
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) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Nine Months Ended September 30, 2024 | ||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Net | Cash Flow | Total | ||||||||
Gold | ||||||||||||||||
Salobo | 187,536 | 169,904 | $ | 2,307 | $ | 425 | $ | 383 | $ | 391,973 | $ | 254,758 | $ | 322,761 | $ | 2,616,346 |
Sudbury 5 | 14,382 | 12,303 | 2,286 | 400 | 1,265 | 28,130 | 7,642 | 22,718 | 246,918 | |||||||
Constancia | 30,429 | 31,949 | 2,200 | 421 | 318 | 70,275 | 46,663 | 56,833 | 70,095 | |||||||
San Dimas | 21,513 | 21,756 | 2,296 | 634 | 286 | 49,950 | 29,941 | 36,156 | 138,507 | |||||||
Stillwater | 6,983 | 6,618 | 2,288 | 405 | 453 | 15,144 | 9,469 | 12,464 | 208,474 | |||||||
Other 6 | 1,855 | 2,509 | 2,347 | 293 | 1,056 | 5,888 | 2,504 | 5,153 | 901,880 | |||||||
262,698 | 245,039 | $ | 2,291 | $ | 440 | $ | 419 | $ | 561,360 | $ | 350,977 | $ | 456,085 | $ | 4,182,220 | |
Silver | ||||||||||||||||
Peñasquito | 6,691 | 4,988 | $ | 27.18 | $ | 4.50 | $ | 4.57 | $ | 135,578 | $ | 90,361 | $ | 113,132 | $ | 253,461 |
Antamina | 2,723 | 2,668 | 27.63 | 5.56 | 8.06 | 73,710 | 37,377 | 58,878 | 498,029 | |||||||
Constancia | 1,739 | 1,514 | 26.55 | 6.21 | 6.17 | 40,180 | 21,444 | 30,785 | 170,242 | |||||||
Other 7 | 3,930 | 2,595 | 28.37 | 4.29 | 4.51 | 73,630 | 50,785 | 60,026 | 645,485 | |||||||
15,083 | 11,765 | $ | 27.46 | $ | 4.91 | $ | 5.55 | $ | 323,098 | $ | 199,967 | $ | 262,821 | $ | 1,567,217 | |
Palladium | ||||||||||||||||
Stillwater | 12,835 | 12,836 | $ | 976 | $ | 177 | $ | 435 | $ | 12,531 | $ | 4,674 | $ | 10,259 | $ | 215,082 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 78,820 | |||||||
12,835 | 12,836 | $ | 976 | $ | 177 | $ | 435 | $ | 12,531 | $ | 4,674 | $ | 10,259 | $ | 293,902 | |
Platinum | ||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 9,451 |
Platreef | - | - | n.a. | n.a. | n.a. | - | - | - | 57,588 | |||||||
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 67,039 | |
Cobalt | ||||||||||||||||
Voisey's Bay | 896 | 485 | $ | 14.71 | $ | 2.84 | $ | 12.77 | $ | 7,134 | $ | (438) | $ | 9,407 | $ | 345,745 |
Operating results | $ | 904,123 | $ | 555,180 | $ | 738,572 | $ | 6,456,123 | ||||||||
Other | ||||||||||||||||
General and administrative | $ | (30,193) | $ | (31,134) | ||||||||||||
Share based compensation | (17,150) | (11,129) | ||||||||||||||
Donations and community investments | (4,626) | (4,185) | ||||||||||||||
Finance costs | (4,144) | (3,234) | ||||||||||||||
Other | 19,922 | 16,486 | ||||||||||||||
Income tax | (77,996) | 2,734 | ||||||||||||||
Total other | $ | (114,187) | $ | (30,462) | $ | 930,056 | ||||||||||
$ | 440,993 | $ | 708,110 | $ | 7,386,179 | |||||||||||
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) | Includes the non-cash per ounce cost of sale associated with delay ounces. Please see the Company's MD&A for more information. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
6) | Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, Santo Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos, Platreef, Curraghinalt and Kudz Ze Kayah gold interests. Other includes ounces sold that were received under the delay ounce provisions of each of the Santo Domingo and Curipamba PMPAs. Please see the Company's MD&A for more information. |
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, Minto, Pascua-Lama, Copper World, Navidad, Blackwater, Curipamba, Mineral Park and Kudz Ze Kayah silver interests. |
Nine Months Ended September 30, 2023 | ||||||||||||||||||
Units Produced² | Units | Average | Average | Average | Sales | Gain on Disposal 4 | Net | Cash Flow | Total | |||||||||
Gold | ||||||||||||||||||
Salobo | 167,526 | 126,440 | $ | 1,947 | $ | 420 | $ | 330 | $ | 246,219 | $ | - | $ | 151,287 | $ | 193,063 | $ | 2,341,485 |
Sudbury 5 | 15,878 | 13,979 | 1,953 | 400 | 1,087 | 27,295 | - | 6,512 | 21,420 | 268,224 | ||||||||
Constancia | 33,352 | 28,597 | 1,948 | 417 | 316 | 55,718 | - | 34,751 | 43,779 | 86,555 | ||||||||
San Dimas | 31,915 | 31,700 | 1,945 | 628 | 260 | 61,657 | - | 33,535 | 41,762 | 147,638 | ||||||||
Stillwater | 6,431 | 6,274 | 1,945 | 347 | 510 | 12,201 | - | 6,824 | 10,026 | 212,650 | ||||||||
Other 6 | 6,124 | 5,335 | 1,935 | 1,119 | 172 | 10,324 | - | 3,439 | 4,090 | 557,035 | ||||||||
261,226 | 212,325 | $ | 1,947 | $ | 465 | $ | 369 | $ | 413,414 | $ | - | $ | 236,348 | $ | 314,140 | $ | 3,613,587 | |
Silver | ||||||||||||||||||
Peñasquito | 3,820 | 3,849 | $ | 23.63 | $ | 4.43 | $ | 4.06 | $ | 90,967 | $ | - | $ | 58,268 | $ | 73,915 | $ | 278,028 |
Antamina | 2,750 | 2,571 | 23.65 | 4.69 | 7.06 | 60,812 | - | 30,625 | 48,765 | 527,227 | ||||||||
Constancia | 1,669 | 1,475 | 23.75 | 6.15 | 6.24 | 35,034 | - | 16,750 | 25,962 | 183,736 | ||||||||
Other 7 | 4,746 | 3,256 | 23.44 | 5.58 | 2.82 | 76,316 | 5,027 | 53,966 | 55,364 | 549,641 | ||||||||
12,985 | 11,151 | $ | 23.60 | $ | 5.05 | $ | 4.68 | $ | 263,129 | $ | 5,027 | $ | 159,609 | $ | 204,006 | $ | 1,538,632 | |
Palladium | ||||||||||||||||||
Stillwater | 11,591 | 10,580 | $ | 1,410 | $ | 255 | $ | 440 | $ | 14,922 | $ | - | $ | 7,565 | $ | 12,223 | $ | 222,154 |
Platinum | ||||||||||||||||||
Marathon | - | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | - | $ | 9,450 |
Cobalt | ||||||||||||||||||
Voisey's Bay | 458 | 786 | $ | 14.13 | $ | 3.36 ⁸ | $ | 13.63 | $ | 11,108 | $ | - | $ | (2,243) | $ | 13,056 | $ | 353,631 |
Operating results | $ | 702,573 | $ | 5,027 | $ | 401,279 | $ | 543,425 | $ | 5,737,454 | ||||||||
Other | ||||||||||||||||||
General and administrative | $ | (28,922) | $ | (29,702) | ||||||||||||||
Share based compensation | (16,217) | (16,675) | ||||||||||||||||
Donations and community investments | (5,054) | (4,896) | ||||||||||||||||
Finance costs | (4,138) | (3,147) | ||||||||||||||||
Other | 26,961 | 24,823 | ||||||||||||||||
Income tax | (4,700) | (5,244) | ||||||||||||||||
Total other | $ | (32,070) | $ | (34,841) | $ | 1,144,061 | ||||||||||||
$ | 369,209 | $ | 508,584 | $ | 6,881,515 | |||||||||||||
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) at the end of this press release. |
4) | The gain on disposal of Other silver interests relates to the gain on the buyback of 33% of the Goose PMPA. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
6) | Other gold interests are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater, Marathon, Curipamba, Goose and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. |
7) | Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025. |
8) | Cash cost per pound of cobalt sold during the nine months ended September 30, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold. |
Comparative Results of Operations on a GEO Basis
YTD 2024 | YTD 2023 | Change | Change | ||||||||
GEO Production 1, 2 | 448,388 | 419,330 | 29,058 | 6.9 % | |||||||
GEO Sales 2 | 389,907 | 350,961 | 38,946 | 11.1 % | |||||||
Average price per GEO sold 2 | $ | 2,319 | $ | 2,002 | $ | 317 | 15.8 % | ||||
Revenue | $ | 904,123 | $ | 702,573 | $ | 201,550 | 28.7 % | ||||
Cost of sales, excluding depletion | $ | 170,872 | $ | 160,413 | $ | (10,459) | (6.5) % | ||||
Depletion | 178,071 | 145,908 | (32,163) | (22.0) % | |||||||
Cost of Sales | $ | 348,943 | $ | 306,321 | $ | (42,622) | (13.9) % | ||||
Gross Margin | $ | 555,180 | $ | 396,252 | $ | 158,928 | 40.1 % | ||||
General and administrative expenses | 30,193 | 28,922 | (1,271) | (4.4) % | |||||||
Share based compensation | 17,150 | 16,217 | (933) | (5.8) % | |||||||
Donations and community investments | 4,626 | 5,054 | 428 | 8.5 % | |||||||
Earnings from Operations | $ | 503,211 | $ | 346,059 | $ | 157,152 | 45.4 % | ||||
Gain on disposal of mineral stream interests | - | 5,027 | (5,027) | (100.0) % | |||||||
Other income (expense) | 19,922 | 26,961 | (7,039) | (26.1) % | |||||||
Earnings before finance costs and income taxes | $ | 523,133 | $ | 378,047 | $ | 145,086 | 38.4 % | ||||
Finance costs | 4,144 | 4,138 | (6) | (0.1) % | |||||||
Earnings before income taxes | $ | 518,989 | $ | 373,909 | $ | 145,080 | 38.8 % | ||||
Income tax expense | 77,996 | 4,700 | (73,296) | (1,559.5) % | |||||||
Net earnings | $ | 440,993 | $ | 369,209 | $ | 71,784 | 19.4 % |
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) | GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024. |
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.
i. | Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance. |
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted). | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Net earnings | $ | 154,635 | $ | 116,371 | $ | 440,993 | $ | 369,209 | ||||
Add back (deduct): | ||||||||||||
Gain on disposal of Mineral Stream Interest | - | - | - | (5,027) | ||||||||
(Gain) loss on fair value adjustment of share purchase warrants held | (523) | 143 | (903) | 248 | ||||||||
Deferred income tax (expense) recovery recognized in the Statement of OCI | (1,134) | 5,115 | 1,632 | 7,205 | ||||||||
Income tax recovery related to prior year disposal of Mineral Stream Interest | - | - | - | (2,672) | ||||||||
Other | (175) | (162) | (521) | (482) | ||||||||
Adjusted net earnings | $ | 152,803 | $ | 121,467 | $ | 441,201 | $ | 368,481 | ||||
Divided by: | ||||||||||||
Basic weighted average number of shares outstanding | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted weighted average number of shares outstanding | 454,302 | 453,538 | 454,037 | 453,419 | ||||||||
Equals: | ||||||||||||
Adjusted earnings per share - basic | $ | 0.337 | $ | 0.268 | $ | 0.973 | $ | 0.814 | ||||
Adjusted earnings per share - diluted | $ | 0.336 | $ | 0.268 | $ | 0.972 | $ | 0.813 | ||||
ii. | Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis. |
The following table provides a reconciliation of operating cash flow per share (basic and diluted). | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for per share amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Cash generated by operating activities | $ | 254,337 | $ | 171,103 | $ | 708,110 | $ | 508,584 | ||||
Divided by: | ||||||||||||
Basic weighted average number of shares outstanding | 453,641 | 452,975 | 453,389 | 452,748 | ||||||||
Diluted weighted average number of shares outstanding | 454,302 | 453,538 | 454,037 | 453,419 | ||||||||
Equals: | ||||||||||||
Operating cash flow per share - basic | $ | 0.561 | $ | 0.378 | $ | 1.562 | $ | 1.123 | ||||
Operating cash flow per share - diluted | $ | 0.560 | $ | 0.377 | $ | 1.560 | $ | 1.122 | ||||
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 and cost of sales related to delay ounces, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance measure but does not have any standardized meaning prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance and ability to generate cash flow. | |
The following table provides a calculation of average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. | ||
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Cost of sales | $ | 110,840 | $ | 96,243 | $ | 348,943 | $ | 306,321 | ||||
Less: depletion | (55,530) | (46,435) | (178,071) | (145,908) | ||||||||
Less: cost of sales related to delay ounces 1 | (1,698) | - | (1,698) | - | ||||||||
Cash cost of sales | $ | 53,612 | $ | 49,808 | $ | 169,174 | $ | 160,413 | ||||
Cash cost of sales is comprised of: | ||||||||||||
Total cash cost of gold sold | $ | 33,287 | $ | 33,014 | $ | 107,715 | $ | 98,724 | ||||
Total cash cost of silver sold | 19,485 | 15,121 | 57,811 | 56,351 | ||||||||
Total cash cost of palladium sold | 650 | 946 | 2,272 | 2,699 | ||||||||
Total cash cost of cobalt sold 2 | 190 | 727 | 1,376 | 2,639 | ||||||||
Total cash cost of sales | $ | 53,612 | $ | 49,808 | $ | 169,174 | $ | 160,413 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 75,694 | 74,426 | 245,039 | 212,325 | ||||||||
Total silver ounces sold | 3,875 | 2,965 | 11,765 | 11,151 | ||||||||
Total palladium ounces sold | 3,761 | 4,242 | 12,836 | 10,580 | ||||||||
Total cobalt pounds sold | 88 | 198 | 485 | 786 | ||||||||
Equals: | ||||||||||||
Average cash cost of gold (per ounce) | $ | 440 | $ | 444 | $ | 440 | $ | 465 | ||||
Average cash cost of silver (per ounce) | $ | 5.03 | $ | 5.10 | $ | 4.91 | $ | 5.05 | ||||
Average cash cost of palladium (per ounce) | $ | 173 | $ | 223 | $ | 177 | $ | 255 | ||||
Average cash cost of cobalt (per pound) | $ | 2.15 | $ | 3.66 | $ | 2.84 | $ | 3.36 | ||||
1) | The cost of sales related to delay ounces is a non-cash expense. Please see the Company's MD&A for more information. |
2) | Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million (nine months - $1.6 million), resulting in a decrease of $0.51 per pound of cobalt sold (nine months - $2.05 per pound of cobalt sold). |
iv. | Cash operating margin is calculated by adding back depletion and the cost of sales related to delay ounces to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow. |
The following table provides a reconciliation of cash operating margin. | |
Three Months Ended | Nine Months Ended | |||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) | 2024 | 2023 | 2024 | 2023 | ||||||||
Gross margin | $ | 197,413 | $ | 126,894 | $ | 555,180 | $ | 396,252 | ||||
Add back: depletion | 55,530 | 46,435 | 178,071 | 145,908 | ||||||||
Add back: cost of sales related to delay ounces 1 | 1,698 | - | 1,698 | - | ||||||||
Cash operating margin | $ | 254,641 | $ | 173,329 | $ | 734,949 | $ | 542,160 | ||||
Cash operating margin is comprised of: | ||||||||||||
Total cash operating margin of gold sold | $ | 155,234 | $ | 111,693 | $ | 453,645 | $ | 314,690 | ||||
Total cash operating margin of silver sold | 95,664 | 55,251 | 265,287 | 206,778 | ||||||||
Total cash operating margin of palladium sold | 2,994 | 4,361 | 10,259 | 12,223 | ||||||||
Total cash operating margin of cobalt sold | 749 | 2,024 | 5,758 | 8,469 | ||||||||
Total cash operating margin | $ | 254,641 | $ | 173,329 | $ | 734,949 | $ | 542,160 | ||||
Divided by: | ||||||||||||
Total gold ounces sold | 75,694 | 74,426 | 245,039 | 212,325 | ||||||||
Total silver ounces sold | 3,875 | 2,965 | 11,765 | 11,151 | ||||||||
Total palladium ounces sold | 3,761 | 4,242 | 12,836 | 10,580 | ||||||||
Total cobalt pounds sold | 88 | 198 | 485 | 786 | ||||||||
Equals: | ||||||||||||
Cash operating margin per gold ounce sold | $ | 2,051 | $ | 1,500 | $ | 1,851 | $ | 1,482 | ||||
Cash operating margin per silver ounce sold | $ | 24.68 | $ | 18.63 | $ | 22.55 | $ | 18.55 | ||||
Cash operating margin per palladium ounce sold | $ | 796 | $ | 1,028 | $ | 799 | $ | 1,155 | ||||
Cash operating margin per cobalt pound sold | $ | 8.50 | $ | 10.21 | $ | 11.87 | $ | 10.77 | ||||
1) The cost of sales related to delay ounces is a non-cash expense. Please see the Company's MD&A for more information. |
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:
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:
Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation):
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, 2023 , which was filed on March 28, 2024 and other continuous disclosure documents filed by Wheaton since January 1, 2024 , available on SEDAR+ at www.sedarplus.ca . Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada , which differ from the requirements of United States securities laws. The Company reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources in accordance with Canadian reporting requirements which are governed by, and utilize definitions required by, Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). These definitions differ from the definitions adopted by the United States Securities and Exchange Commission ("SEC") under the United States Securities Act of 1933, as amended (the "Securities Act") which are applicable to U.S. companies. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted by the SEC. Accordingly, information contained herein that describes Wheaton's mineral deposits may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States investors are urged to consider closely the disclosure in Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from https://www.sec.gov/edgar.shtml .
End Notes
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1 Please refer to disclosure on non-IFRS measures in 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 dated November 7, 2024, titled "Wheaton Precious Metals Declares Quarterly Dividend." |
2 Statements made in this section contain forward-looking information with respect to forecast production, production growth, funding outstanding commitments, continuing to acquire accretive mineral stream interests and the commencement, timing and achievement of construction, expansion or improvement projects 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 Gold equivalent forecast production for 2024 and the longer-term outlook are based on the following commodity price assumptions: $2,000 per ounce gold, $23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of platinum and $13.00 per pound cobalt. |
4 Source: Company reports & S and P Capital IQ estimates of 2024 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2023 and 2023 actual mill throughput and is weighted by individual reserve and resource category. |
5 Total streaming and royalty agreements relate to precious metals purchase agreements for the purchase of precious metals and cobalt relating to 18 mining assets which are currently operating, 24 which are at various stages of development and 4 of which have been placed in care and maintenance or have been closed. |
6 Further details for long-term guidance can be found in the Wheaton news release dated March 14, 2024, titled "Wheaton Precious Metals Announces Solid 2023 Annual Results and Transition to Progressive Dividend Policy". Additionally, neither of the transactions announced in 2024 have been factored into long-term guidance including the new stream relative to the Koné Project, and the stream amendment relative to the Fenix Project. |
View original content: https://www.prnewswire.com/news-releases/wheaton-precious-metals-announces-third-quarter-2024-results-and-record-quarterly-operating-cash-flow-302299373.html
SOURCE Wheaton Precious Metals Corp.
View original content: http://www.newswire.ca/en/releases/archive/November2024/07/c3337.html
News Provided by Canada Newswire via QuoteMedia
Ms. Noora Ahola, Mawson Finland CEO, states: " We regard our latest drilling season at Rajapalot a success and believe that the gold-cobalt resource at Rajapalot has a great potential to be extended beyond its current size. The most significant highlights reported here demonstrate that depth potential at South Palokas remains open, with 2 gold-cobalt mineralized horizons now present in this new, deeper drilling. Similarly, an additional thick intercept on ‘New lens' follows-up our previously reported discovery of this mineralization, demonstrating geological and grade continuity of this zone of gold-cobalt mineralization of which we are eager to follow-up at depth in this coming 2025 winter drilling season. Our work continues with ongoing geophysical measurements and planning of a new extensive drill program starting in January 2025. We anticipate that our success should continue into 2025 as we work towards our goal of adding ounces to the resource".
Detailed Summary
During January to April 2024, 3 drill-rigs drilled a total of 11,376 metres of diamond core from 38 drillholes around the Palokas, South Palokas, The Hut, Raja and Joki zones of gold-cobalt mineralization (Figure 1). Primary aims of this 2024 drilling campaign at the Rajapalot project were to further delineate additional gold-cobalt mineralization in order to enlarge the inferred category mineral resource over the property beyond its presently defined size of 9.78 mt @ 2.8 g/t gold and 441 ppm cobalt, with total contained metal of 867 koz of gold and 4311 tonnes of cobalt.
Palokas Area: Twenty drillholes were drilled around the Palokas and South Palokas mineralized zones, with several intercepts encountering significant gold-cobalt mineralization. Along the southern margin of the presently defined limits of the Palokas zone, several significant intercepts were drilled, including a shallow high-grade intercept of 7 m @ 9.1 g/t gold and 706 ppm cobalt approximately 70 metres below surface (PAL0346), and a deeper intercept of 12 m @ 1.7 g/t Au approximately 300 metres below surface (see Figure 2). At South Palokas, significant intercepts were also recorded along the southern margin of its presently defined limits, with holes PAL0335, PAL0340, PAL0344, PAL0361 and PAL0364 all intercepting multiple significant intercepts from approximately 100 metres, to 450 metres below surface (see Figure 2). A new zone of high-grade mineralization was discovered in the footwall of South Palokas, approximately 100 metres below the presently defined gold-cobalt mineralized envelope of the South Palokas. Here, a thick 21.75 metre lens of high-grade mineralization was intercepted in PAL0335, grading at 5.25 g/t Au & 515 ppm Co. A follow-up intercept on this ‘New Lens' of mineralization, located 50 metres up-plunge from the PAL0355 intercept, drilled a 17 metre thick interval grading 1.05 g/t Au and 224 ppm Co, confirming both the local geological and grade continuity of ‘New Lens' (see Table 1, Table 2, Figure 2 and Figure 3).
Raja Area: Six drillholes were drilled around the Raja zone of mineralization in an effort to extend the mineralized envelope here to both the north-east, and south-west of its presently defined limits. Five of 6 drillholes intercepted significant mineralization, with drillholes PAL0355, PAL0353, and PAL0358 extending the known limits of gold-cobalt mineralization between 40 metres and 90 metres to the north-east (see Table 1, Table 2 and Figure 4)
The Hut Area: Drilling around The Hut area consisted of 8 drill holes; 4 holes investigating potential extensions to The Hut inferred resource, 2 drillholes below the Terry's Hammer mineralized zone, and a further 2 drillholes in the unexplored area located between South Palokas and The Hut zones of mineralization (See Table 1, Table 2 and Figure 2). Drillholes PAL0363 and PAL0368 extended the mineralized strike-length at The Hut in both the north and south directions, while drillhole PAL0371 encountered gold-cobalt mineralization below Terry's Hammer.
Joki Area: Drilling around the Joki mineralized zone consisted of 4 drillholes, of which 3 holes were designed to further design gold-cobalt mineralization up-dip of the main lens, while an additional drillhole was located to the north-east in order to step-out from the known limits of mineralization. The 3 drillholes placed up-dip or mineralization returned no significant intercepts, while the remaining north-east step-out drillhole (PAL0338) returned only a single significant intercept (see Table 1, Table 2 and Figure 5).
Technical Background, Data Verification and Quality Assurance and Quality Control
Three diamond drill rigs from MK Core Drilling Oy, Comadev Oy and Arctic Drilling Company Oy, all with water recirculation and drill cuttings collection systems, were used in this drill program. Core diameter is NQ2 (50.7 mm). Core recoveries are excellent and average close to 100% in fresh rock. After photographing and logging in Mawson's Rovaniemi facilities, core intervals of between 0.5 to 2 metres are taken, then half-sawn by independent contractors the Geological Survey of Finland (GTK) in Rovaniemi, Palsatech Oy in Kemi and Geopool Oy in Sodankylä. The remaining half core is retained for verification and reference purposes. Analytical samples are transported by commercial transport from site to the independent contractor CRS Minlab Oy (" CRS ") facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS equipment. Samples for multi-element analysis (including cobalt) are pulped at CRS, then transported by air to MSALABS in Vancouver, Canada and analyzed using four acid digest ICP-MS methods. All the foregoing laboratories are independent of the Company. The quality assurance and quality control program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks placed within sample runs in interpreted mineralized rock. In addition, CRS inserts blanks and standards into the analytical process. In addition to the sample preparation and security measures described above, data verification procedures are well integrated into the Company's quality assurance and quality control program. Routine ongoing checking of all data is undertaken prior to being uploaded to the database. This will be followed by independent data verification audits at exploration milestones throughout the Rajapalot project's development. Dr. Fromhold (see " Qualified Person " below) has also reviewed the qualifications and analytical procedures of the above-mentioned laboratories, photographs of drill cores, and the PEA in connection with verifying the exploration information presented herein.
All maps have been created within the KKJ3/Finland Uniform Coordinate System (EPSG:2393). Tables 1-3 in Schedule "A" hereto provide collar and assay data. Due to the typically low angles of drill intercepts, the true thickness of the mineralized intervals are interpreted to be approximately 80-90% of the drilled thickness. Table 3 gives detailed individual assay data of all intervals reported in this press release. Intersections are reported with a lower cut of 0.3 g/t Au over 1 metre intervals, with composite data (Table 2 in Schedule "A" hereto) containing no more than 2 consecutive 1 m intervals of waste-rock (i.e., 1 m intervals with <0.3 g/t Au). No upper-cut was applied.
Deposit Model
At Rajapalot, mineralization is regarded as orogenic in nature. All examples of gold-cobalt mineralization are consistently located within highly-sheared and foliated wall-rocks adjacent to strongly hydrothermally altered, northwest to north dipping shear-zones. Mineralization is typically encountered as disseminated to semi-massive sulfide lenses (predominantly pyrrhotite and lesser pyrite ± cobaltite), hosted within strongly deformed and altered, mafic volcanic and volcaniclasitic stratigraphy of the upper portions of the Paleoproterozoic-aged Kivalo Group of the Peräpohja Greenstone Belt. Prospects with high-grade gold and cobalt mineralization at Rajapalot occur across a 3 km (east-west) by 2 km (north-south) area within the larger Rajapalot project area measuring 4 km by 4 km with multiple mineralized boulders, base-of-till (BOT). Gold-Cobalt mineralization at Rajapalot has been drilled to approximately 470 metres below surface at both South Palokas and Raja prospects, and mineralization remains open at depth across the entire project.
Rajapalot Mineral Resource
An Inferred Mineral Resource ("MRE") has been calculated for the Rajaplot project (effective date August 26, 2021), and is based on an ‘underground only' scenario containing 9.8 million tonnes @ 2.8 g/t gold (Au) and 441 ppm cobalt (Co), equating to 867 thousand ounces ("koz") gold and 4,311 tonnes of cobalt.
Rajapalot Inferred Mineral Resource Effective August 26, 2021
Qualified Person
The technical and scientific information in this news release was reviewed, verified and approved by Dr. Thomas Fromhold, an employee of Fromhold Geoconsult AB, and Member of The Australian Institute of Geosciences (MAIG, Membership No. 8838). Dr. Fromhold is a "qualified person" as defined under NI 43-101. Dr. Fromhold is not considered independent of the Company under NI 43-101 as he is a consultant of the Company.
About Mawson Finland Limited
Mawson Finland Limited is an exploration stage mining development company engaged in the acquisition and exploration of precious and base metal properties in Finland. The Company is primarily focused on gold and cobalt. The Corporation currently holds a 100% interest in the Rajapalot Gold-Cobalt Project located in Finland. The Rajapalot Project represents approximately 5% of the 100-square kilometre Rompas-Rajapalot Property, which is wholly owned by Mawson and consists of 11 granted exploration permits for 10,204 hectares and 2 exploration permit applications and a reservation notification area for a combined total of 40,496 hectares. In Finland, all operations are carried out through the Company's fully owned subsidiary, Mawson Oy. Mawson maintains an active local presence of Finnish staff with close ties to the communities of Rajapalot.
Additional disclosure including the Company's financial statements, technical reports, news releases and other information can be obtained at mawsonfinland.com or on SEDAR+ at www.sedarplus.ca .
Media and Investor Relations Inquiries
Please contact: Neil MacRae Executive Chairman at neil@mawsonfinland.com or +1 (778) 999-4653, or Noora Ahola Chief Executive Officer at nahola@mawson.fi or +358 (505) 213-515.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No securities regulatory authority has reviewed or approved of the contents of this news release.
Forward-looking Information
This news release includes certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities laws (collectively, "forward-looking information") which are not comprised of historical facts. Forward-looking information includes, without limitation, estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking information may be identified by such terms as "believes", "anticipates", "expects", "estimates", "aims", "may", "could", "would", "will", "must" or "plan". Since forward-looking information is based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, and management of the Company believes them to be reasonable based upon, among other information, the contents of the PEA and the exploration information disclosed in this news release, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes, but is not limited to, the Company's objectives, goals or future plans, any expected receipt of additional assay results or other exploration results and the impact upon the Company thereof, any expected milestone independent data verification, the continuance of the Company's quality assurance and quality control program, potential mineralization whether peripheral to the existing Rajapalot resource or elsewhere, any anticipated disclosure of assay or other exploration results and the timing thereof, the estimation of mineral resources, exploration and mine development plans, including drilling, soil sampling, geophysical and geochemical work, any expected search for additional exploration targets and any results of such searches, potential acquisition by the Company of any property, the growth potential of the Rajapalot resource, all values, estimates and expectations drawn from or based upon the PEA, and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to: any change in industry or wider economic conditions which could cause the Company to adjust or cancel entirely its exploration plans, failure to identify mineral resources or any additional exploration targets, failure to convert estimated mineral resources to reserves, any failure to receive the results of completed assays or other exploration work, poor exploration results, the inability to complete a feasibility study which recommends a production decision, the preliminary and uncertain nature of the PEA, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry, and those risks set out in the Company's public documents filed on SEDAR+. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.
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