Wheaton Precious Metals Announces Record Revenue, Earnings and Cash Flow for the First Nine Months of 2021

 
 

  TSX | NYSE | LSE: WPM  

 

  Designated News Release
   THIRD QUARTER 2021 FINANCIAL RESULTS   

 

"Wheaton's diversified portfolio of high-quality, long-life assets continues to deliver strong results, including record revenue, earnings and cash flow in the first nine months of 2021. In addition, the Company declared a dividend of $0.15 per common share, a 25% increase relative to the prior year," said Randy Smallwood President and Chief Executive Officer of Wheaton Precious Metals. "Strong year to date production, particularly driven by silver, has led the Company to narrow its annual guidance to 735,000 to 765,000 gold equivalent ounces, consistent with the previous midpoint of guidance."

 

  Third Quarter 2021 Highlights:  

 
  •     Over $200 million in operating cash flow during the third quarter and a record $650 million in the first nine months of 2021.  
  •  
  •      $269 million in revenue during the third quarter and a record $923 million in the first nine months of 2021.  
  •  
  •      $137 million in adjusted net earnings during the third quarter and a record $460 million in the first nine months of 2021.  
  •  
  •     Signed a non-binding term sheet with Rio2 Limited to enter into a precious metals purchase agreement in connection with the Fenix Gold project located in Chile .  
  •  
  • Strong financial position with approximately $372 million in cash on hand and $2 billion of additional capacity through the revolving credit facility as of September 30, 2021 .
  •  
  •     Declared   quarterly dividend   1   of $0.15 per common share   .  
  •  

   Operational Overview   

 
 
                                                                                                                        
 

  (all figures in US dollars unless otherwise noted)  

 
 
 

  Q3 2021  

 
 
 

  Q3 2020  

 
 

  Change  

 
 

    Units produced    

 
 
 
 
 
 
 

  Gold ounces  

 
 
 

  85,941  

 
 
 

  90,500  

 
 

  (5.0)%  

 
 

  Silver ounces  

 
 
 

  6,394  

 
 
 

  6,028  

 
 

  6.1 %  

 
 

  Palladium ounces  

 
 
 

  5,105  

 
 
 

  5,444  

 
 

  (6.2)%  

 
 

  Cobalt pounds  

 
 
 

  370,522  

 
 
 

  -  

 
 

  n.a.  

 
 

  Gold equivalent ounces 2   

 
 
 

  184,918  

 
 
 

  181,184  

 
 

  2.1 %  

 
 

    Units sold    

 
 
 
 
 
 
 

  Gold ounces  

 
 
 

  67,649  

 
 
 

  90,101  

 
 

  (24.9)%  

 
 

  Silver ounces  

 
 
 

  5,487  

 
 
 

  4,999  

 
 

  9.8 %  

 
 

  Palladium ounces  

 
 
 

  5,703  

 
 
 

  5,546  

 
 

  2.8 %  

 
 

  Cobalt pounds  

 
 
 

  131,174  

 
 
 

  -  

 
 

  n.a.  

 
 

  Gold equivalent ounces 2   

 
 
 

  152,432  

 
 
 

  166,611  

 
 

  (8.5)%  

 
 

    Revenue    

 
 

  $  

 
 

  268,957  

 
 

  $  

 
 

  307,268  

 
 

  (12.5)%  

 
 

    Net earnings    

 
 

  $  

 
 

  134,937  

 
 

  $  

 
 

  149,875  

 
 

  (10.0)%  

 
 

  Per share  

 
 

  $  

 
 

  0.300  

 
 

  $  

 
 

  0.334  

 
 

  (10.2)%  

 
 

    Adjusted net earnings    1   

 
 

  $  

 
 

  137,087  

 
 

  $  

 
 

  152,007  

 
 

  (9.8)%  

 
 

  Per share 1   

 
 

  $  

 
 

  0.304  

 
 

  $  

 
 

  0.338  

 
 

  (10.1)%  

 
 

    Operating cash flows    

 
 

  $  

 
 

  201,287  

 
 

  $  

 
 

  228,099  

 
 

  (11.8)%  

 
 

  Per share 1  

 
 

  $  

 
 

  0.447  

 
 

  $  

 
 

  0.508  

 
 

  (12.0)%  

 
 
 
 
 
 

    All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, per ounce/pound amounts & per share amounts.    

 
 
 

  Reiterating Gold Equivalent Production Guidance  

 

Wheaton's estimated attributable production in 2021 is now forecast to be approximately 735,000 to 765,000 gold equivalent ounces 2 ("GEOs") in line with previous guidance of 720,000 to 780,000 GEOs. However, given strong performances at Peñasquito, Antamina and Voisey's Bay, coupled with production being lower than expected at Salobo, Wheaton is adjusting the production mix by metal as per the table below. Longer term guidance remains unchanged at an average production of 810,000 GEOs for the five-year period ending 2025 and 830,000 GEOs for the ten-year period ending in 2030   3 .

 
 
               
 
 

   Updated Guidance   

 
 

   Original Guidance   

 
 

  Gold Ounces  

 
 

  330,000 to 345,000  

 
 

  370,000 to 400,000  

 
 

  Silver Ounces('000s)  

 
 

  25,500 to 26,500  

 
 

  22,500 to 24,000  

 
 

  Other Metals 2   (GEOs)  

 
 

  45,000 to 55,000  

 
 

  40,000 to 45,000  

 
 

  Total GEOs 2   

 
 

  735,000 to 765,000  

 
 

  720,000 to 780,000  

 
 
 

   Corporate Development   

 

    Fenix Gold Project:       On July 20, 2021 , the Company signed a non-binding term sheet with Rio2 Limited ("Rio2") to enter into a precious metals purchase agreement ("PMPA") in connection with the Fenix Gold project located in Chile . Under the terms of the proposed Fenix PMPA, the Company will acquire 6% of the gold production until 90,000 ounces have been delivered and 4% of the gold production until 140,000 ounces have been delivered, after which the stream drops to 3.5% for the life of mine. In addition, under the proposed Fenix PMPA, the Company will pay a total upfront cash consideration of $50 million , $25 million of which is payable upon closing, subject to certain conditions, and $25 million payable subject to Rio2's receipt of its Environmental Impact Assessment for the Fenix Gold project, and certain other conditions. In addition, the Company will make ongoing delivery payments equal to approximately 18% of the spot price until the value of gold delivered less the production payment is equal to the upfront consideration of $50 million , at which point the production payment will increase to 22% of the spot gold price. The entering into of the Fenix PMPA is subject to, among other matters, the negotiation and completion of definitive documentation.  

 

   Financial Review   

 

    Revenues
 
 
  Revenue was $269 million in the third quarter of 2021 representing a 12% decrease from the third quarter of 2020 due primarily   to a 9% decrease in the number of gold equivalent² ounces sold, primarily the result of a large build-up of payable ounces produced but not yet delivered ("PBND") at Salobo; and a 4% decrease in the average realized gold equivalent² price.    

 

    Cash Costs and Margin  
 
  Average cash costs¹ in the third quarter of 2021 were $410 per gold equivalent² ounce as compared to $421 in third quarter of 2020.     This resulted in a cash operating margin¹ of $1,354 per gold equivalent² ounce sold, a decrease of 5% as compared with the third quarter of 2020.    

 

    Balance Sheet      (at      September 30, 2021      )   

 
  •     Approximately $372 million of cash on hand.  
  •  
  •     The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully repaid.  
  •  

  Third   Quarter Asset Highlights  

 

    Salobo:     In the third quarter of 2021, Salobo produced 55,200 ounces of attributable gold, a decrease of approximately 13% relative to the third quarter of 2020 due to lower throughput and grade. On October 22, 2021 , Vale S.A. ("Vale") announced the resumption of conveyor belt operations at Salobo, that was halted for 18 days due to a fire. Other activities, including mine and maintenance operations, continued as usual during this period but concentrate production was interrupted. Concentrate production resumed on October 22, 2021 and ramped up over a three day period. Vale further reports that physical completion of the Salobo III mine expansion was 81% at the end of the third   quarter   and is on track for start-up in the second half of 2022   .  

 

    Peñasquito:     In the third quarter of 2021, Peñasquito produced 2.2 million ounces of attributable silver, an increase of approximately 9% relative to the third quarter of 2020, with throughput, grades and recoveries all being higher.  

 

    Antamina:     In the third quarter of 2021, Antamina produced 1.5 million ounces of attributable silver, an increase of approximately 2% relative to the third quarter of 2020, primarily due to higher recoveries   .   Subsequent to the quarter, as per Compañía Minera Antamina S.A.'s (the operating company of Antamina) news release dated October 31, 2021 , operations at Antamina have been temporarily suspended to ensure the health and safety of its workforce and other stakeholders following recent protests in Peru .  

 

    Constancia:     In the third quarter of 2021, Constancia produced 0.5 million ounces of attributable silver and 8,500 ounces of attributable gold, an increase of approximately 21% and 126%, respectively, relative to the third quarter of 2020. Silver production was higher primarily as a result of higher grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%, partially offset by the receipt of 2,005 ounces in the third quarter of 2020 related to delays in accessing the Pampacancha deposit while no delay payment was received in 2021.    

 

    Sudbury :   In the third quarter of 2021, Vale's Sudbury mines produced 500 ounces of attributable gold, a decrease of approximately 88% relative to the third quarter of 2020, which was primarily due to lower throughput, as operations at the mine were suspended due to a labour dispute, which lasted from June 1, 2021 to August 9, 2021 . Vale announced on August 3, 2021 that a new five-year collective bargaining agreement had been ratified with mine workers. The Sudbury PMPA had an effective date of February 28, 2013 with a term of 20 years. Under the provisions of the Sudbury PMPA, should the facilities at Sudbury be shut down for 60 or more cumulative days, exclusive of scheduled maintenance or shutdowns for periods of 20 days or less, the term of the Sudbury PMPA shall be extended for the same duration. As a result, the term of the agreement was extended by 69 days.

 

     Stillwater :       In the third quarter of 2021, the Stillwater mines produced 2,900 ounces of attributable gold and 5,100 ounces of attributable palladium, a decrease of approximately 7% for gold and 6% for palladium relative to the third quarter of 2020 due to lower grades.  

 

    San Dimas:     In the third quarter of 2021, San Dimas produced 11,900 ounces of attributable gold, an increase of approximately 29% relative to the third quarter of 2020   ,   primarily due to higher throughput coupled with the impact of changing the silver to gold conversion ratio from 70:1 to 90:1 from April 1, 2020 to October 15, 2020 , at which time it reverted to 70:1.    

 

    Voisey's Bay:       In the third quarter of 2021, the Voisey's Bay mine produced 371,000 pounds of attributable cobalt.   As at the end of the third quarter 2021, approximately 488,000 pounds of cobalt were held in inventory by Wheaton and 638,000 pounds were produced but not yet delivered. As per Vale's Third Quarter 2021 Performance Report, physical completion of the Voisey's Bay underground mine extension, which includes developing two underground mines - Reid Brook and Eastern Deeps - was 70% at the end of the third quarter.      

 

     Rosemont :         Hudbay announced on September 22, 2021 , the intersection of additional high-grade copper sulphide and oxide mineralization on its wholly-owned patented mining claims located within close proximity of its Rosemont copper project in Arizona ("Copper World"). To date, seven deposits have been identified at Copper World with a combined strike length of over seven kilometres. As of June 30, 2021 , approximately 166 holes were completed totaling over 91,000 feet of drilling. Hudbay expects to publish an initial inferred mineral resource estimate for Copper World before the end of 2021, and these mineral resource estimates will form the basis for a preliminary economic assessment ("PEA") expected to be released by Hudbay in the first half of 2022. The Copper World discovery is included in Wheaton's area of interest under the PMPA.

 

   Produced But Not Yet Delivered   4    

 

  As at    September 30, 2021    , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:  

 
  •     81,200 payable gold ounces, an increase of 15,000 ounces during Q3 2021   , primarily due to an increase during the period at the Salobo mine.  
  •  
  •     4.1 million payable silver ounces, virtually unchanged during Q3 2021, as decreases during the period at the Peñasquito mine were offset by an increase at the Yauliyacu mine.  
  •  
  •     5,600 payable palladium ounces, a decrease of 1,200 ounces during Q3 2021.  
  •  
  •     638,000 payable cobalt pounds, a decrease of 139,300 pounds during Q3 2021.  
  •  

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.

 

   Sustainability   

 

    COVID-19 Community Support and Response Fund:     In the second quarter of 2020, Wheaton announced the launch of a $5 million Community Support and Response Fund (the "CSR Fund") to support global efforts to combat the social and economic impact of the COVID-19 pandemic. The CSR Fund is designed to meet the immediate needs of the communities in which Wheaton and its mining partners operate. This fund is incremental to Wheaton's already active Community Investment Program that currently provides support to over 50 programs in multiple communities around the world. As of September 30, 2021 , the Company has made donations totaling approximately $4 million through the CSR Fund.  

 

    ESG Ratings:     Following recent rating updates, Wheaton's Sustainalytics 5 score further improved from 9.2 to 7.9 indicating reduced risk exposure and maintained its AA rating from MSCI   5   demonstrating Wheaton's continued leadership in ESG practices. Wheaton is currently ranked in the Global Top 50 out of more than 14,000 companies and #1 for precious metals out of 122 companies by Sustainalytics   5   .  

 

    Partner CSR Program:     Wheaton continues to support a wide range of programs with mining partners including Vale, Glencore, Hudbay and First Majestic Silver focused on education, health, entrepreneurial support, and community engagement opportunities in the communities near the mines from which Wheaton receives precious metals. In the third quarter of 2021, a solar panel installation project was completed at a Knowledge Station run by the Vale Foundation in the community of Marabá, Brazil .  

 

  Webcast and Conference Call Details  

 

  A conference call and webcast will be held on Friday, November 5, 2021 starting at 8:00am PT / 11:00 am ET to discuss these results. To participate in the live call please use one of the following methods:  

 

  Dial toll free from Canada or the US: 1-888-664-6383
Dial from outside Canada or the US: 1-416-764-8650
Pass code: 61024959
Live audio webcast:    Webcast URL    

 

  Participants should dial in five to ten minutes before the call.  

 

  The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call.  

 

The conference call will be recorded and available until November 12, 2021 at 11:59 pm ET . The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:

 

Dial toll free from Canada or the US:             1-888-390-0541
Dial from outside Canada or the US:             1-416-764-8677
Pass code: 024959#
Archived audio webcast:   Webcast URL    

 

  This earnings release should be read in conjunction with Wheaton Precious Metals' MD&A and Financial Statements, which are available on the Company's website at    www.wheatonpm.com    and have been posted on SEDAR at www.sedar.com .  

 

  Mr. Wes Carson , P.Eng., Vice President, Mining Operations, is a "qualified person" as such term is defined under National Instrument 43-101 and has reviewed and approved the   technical information disclosed in this news release.  

 

  Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at https://www.wheatonpm.com/Company/corporate-governance/default.aspx   

 

  About Wheaton Precious Metals Corp. and Outlook  

 

  Wheaton   is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.  

 

  Wheaton's estimated attributable production in 2021 is forecast to be 330,000 to 345,000 ounces of gold, 25.5 to 26.5 million ounces of silver, and 45,000 to 55,000 GEOs of other metals, resulting in production of approximately 735,000 to 765,000 GEOs, in line with previous guidance.  For the five-year period ending in 2025, the Company estimates that average production will amount to 810,000 GEOs   3   . For the ten-year period ending in 2030, the Company estimates that average annual production will amount to 830,000 GEOs   3   .  

 

  In accordance with   Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company")   MD&A and financial statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.  

 

   End Notes   

 
 
  
 

   ________________________________   

 
 

   1 Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter.
2 Commodity price assumptions for the gold equivalent production and sales in 2021 and long-term forecasts are $1,800 / ounce gold, $25 / ounce silver, and $2,300 / ounce palladium and $17.75 / pound cobalt. Other metal includes palladium and cobalt.
3 Gold equivalent guidance based on the commodity prices outlined in note 2 above. Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas, or additional expansions at Salobo outside of project currently in construction. In addition, five-year guidance also does not include any production from Rosemont, Toroparu, Kutcho, or the Victor project at Sudbury.
4 Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.
5 Rating current as of October 7, 2021, for Sustainalytics and as of September 23, 2021, for MSCI.
 

 
 
 

  Condensed Interim    Consolidated Statements of Earnings   

 
 
                                                                                                                                                                                                          
 
 
 

  Three Months Ended
September 30
 

 
 

  Nine Months Ended
September 30
 

 
 

  (US dollars and shares in thousands, except per share amounts - unaudited)  

 
 
 

   2021   

 
 
 

  2020  

 
 
 

   2021   

 
 
 

  2020  

 
 

  Sales  

 
 
 

  $  

 
 

  268,957  

 
 

  $  

 
 

  307,268  

 
 

  $  

 
 

  923,468  

 
 

  $  

 
 

  810,012  

 
 

  Cost of sales  

 
 
 
 
 
 
 
 
 
 
 

  Cost of sales, excluding depletion  

 
 
 

  $  

 
 

  62,529  

 
 

  $  

 
 

  70,119  

 
 

  $  

 
 

  219,757  

 
 

  $  

 
 

  202,238  

 
 

  Depletion  

 
 
 
 

  54,976  

 
 
 

  60,601  

 
 
 

  195,458  

 
 
 

  184,104  

 
 

  Total cost of sales  

 
 
 

  $  

 
 

  117,505  

 
 

  $  

 
 

  130,720  

 
 

  $  

 
 

  415,215  

 
 

  $  

 
 

  386,342  

 
 

  Gross margin  

 
 
 

  $  

 
 

  151,452  

 
 

  $  

 
 

  176,548  

 
 

  $  

 
 

  508,253  

 
 

  $  

 
 

  423,670  

 
 

  General and administrative expenses  

 
 
 
 

  13,595  

 
 
 

  21,326  

 
 
 

  44,030  

 
 
 

  56,307  

 
 

  Earnings from operations  

 
 
 

  $  

 
 

  137,857  

 
 

  $  

 
 

  155,222  

 
 

  $  

 
 

  464,223  

 
 

  $  

 
 

  367,363  

 
 

  Other (income) expense  

 
 
 
 

  1,108  

 
 
 

  2,624  

 
 
 

  (2,194)  

 
 
 

  (1,340)  

 
 

  Earnings before finance costs and income taxes  

 
 

  $  

 
 

  136,749  

 
 

  $  

 
 

  152,598  

 
 

  $  

 
 

  466,417  

 
 

  $  

 
 

  368,703  

 
 

  Finance costs  

 
 
 
 

  1,379  

 
 
 

  2,766  

 
 
 

  4,309  

 
 
 

  14,519  

 
 

  Earnings before income taxes  

 
 
 

  $  

 
 

  135,370  

 
 

  $  

 
 

  149,832  

 
 

  $  

 
 

  462,108  

 
 

  $  

 
 

  354,184  

 
 

  Income tax (expense) recovery  

 
 
 
 

  (433)  

 
 
 

  43  

 
 
 

  955  

 
 
 

  (3,601)  

 
 

  Net earnings  

 
 
 

  $  

 
 

  134,937  

 
 

  $  

 
 

  149,875  

 
 

  $  

 
 

  463,063  

 
 

  $  

 
 

  350,583  

 
 

  Basic earnings per share  

 
 
 

  $  

 
 

  0.300  

 
 

  $  

 
 

  0.334  

 
 

  $  

 
 

  1.029  

 
 

  $  

 
 

  0.782  

 
 

  Diluted earnings per share  

 
 
 

  $  

 
 

  0.299  

 
 

  $  

 
 

  0.332  

 
 

  $  

 
 

  1.026  

 
 

  $  

 
 

  0.779  

 
 

  Weighted average number of shares outstanding  

 
 
 
 
 
 
 
 
 
 
 

  Basic  

 
 
 
 

  450,326  

 
 
 

  449,125  

 
 
 

  449,977  

 
 
 

  448,484  

 
 

  Diluted  

 
 
 
 

  451,717  

 
 
 

  451,999  

 
 
 

  451,369  

 
 
 

  449,892  

 
 
 

  Condensed Interim    Consolidated Balance Sheets   

 

     

 
 
                                                                                                                                                                                               
 
 

    As at
September 30
 
 
 

 
 

  As at
December 31
 

 
 

  (US dollars in thousands - unaudited)  

 
 

   2021   

 
 

  2020  

 
 

    Assets    

 
 
 
 
 
 

  Current assets  

 
 
 
 
 
 

  Cash and cash equivalents  

 
 

  $  

 
 

  372,450  

 
 

  $  

 
 

  192,683  

 
 

  Accounts receivable  

 
 
 

  10,392  

 
 
 

  5,883  

 
 

  Other  

 
 
 

  9,874  

 
 
 

  3,265  

 
 

  Total current assets  

 
 

  $  

 
 

  392,716  

 
 

  $  

 
 

  201,831  

 
 

  Non-current assets  

 
 
 
 
 
 

  Mineral stream interests  

 
 

  $  

 
 

  5,505,663  

 
 

  $  

 
 

  5,488,391  

 
 

  Early deposit mineral stream interests  

 
 
 

  34,741  

 
 
 

  33,241  

 
 

  Mineral royalty interest  

 
 
 

  6,606  

 
 
 

  3,047  

 
 

  Long-term equity investments  

 
 
 

  71,741  

 
 
 

  199,878  

 
 

  Convertible notes receivable  

 
 
 

  15,489  

 
 
 

  11,353  

 
 

  Property, plant and equipment  

 
 
 

  5,790  

 
 
 

  6,289  

 
 

  Other  

 
 
 

  13,994  

 
 
 

  13,242  

 
 

  Total non-current assets  

 
 

  $  

 
 

  5,654,024  

 
 

  $  

 
 

  5,755,441  

 
 

  Total assets  

 
 

  $  

 
 

  6,046,740  

 
 

  $  

 
 

  5,957,272  

 
 

    Liabilities    

 
 
 
 
 
 

  Current liabilities  

 
 
 
 
 
 

  Accounts payable and accrued liabilities  

 
 

  $  

 
 

  14,514  

 
 

  $  

 
 

  13,023  

 
 

  Current portion of performance share units  

 
 
 

  13,348  

 
 
 

  17,297  

 
 

  Current portion of lease liabilities  

 
 
 

  801  

 
 
 

  773  

 
 

  Other  

 
 
 

  154  

 
 
 

  76  

 
 

  Total current liabilities  

 
 

  $  

 
 

  28,817  

 
 

  $  

 
 

  31,169  

 
 

  Non-current liabilities  

 
 
 
 
 
 

  Bank debt  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  195,000  

 
 

  Lease liabilities  

 
 
 

  2,258  

 
 
 

  2,864  

 
 

  Deferred income taxes  

 
 
 

  276  

 
 
 

  214  

 
 

  Performance share units  

 
 
 

  8,667  

 
 
 

  11,784  

 
 

  Pension liability  

 
 
 

  2,369  

 
 
 

  1,670  

 
 

  Total non-current liabilities  

 
 

  $  

 
 

  13,570  

 
 

  $  

 
 

  211,532  

 
 

  Total liabilities  

 
 

  $  

 
 

  42,387  

 
 

  $  

 
 

  242,701  

 
 

    Shareholders' equity    

 
 
 
 
 
 

  Issued capital  

 
 

  $  

 
 

  3,685,032  

 
 

  $  

 
 

  3,646,291  

 
 

  Reserves  

 
 
 

  50,769  

 
 
 

  126,882  

 
 

  Retained earnings  

 
 
 

  2,268,552  

 
 
 

  1,941,398  

 
 

  Total shareholders' equity  

 
 

  $  

 
 

  6,004,353  

 
 

  $  

 
 

  5,714,571  

 
 

  Total liabilities and shareholders' equity  

 
 

  $  

 
 

  6,046,740  

 
 

  $  

 
 

  5,957,272  

 
 
 

  Condensed Interim    Consolidated Statements of Cash Flows   

 

   
 
 

 
 
                                                                                                                                                                                                                                                                                                                                                                       
 
 

  Three Months Ended
September 30
 

 
 

  Nine Months Ended
September 30
 

 
 

  (US dollars in thousands - unaudited)  

 
 

   2021   

 
 

  2020  

 
 

   2021   

 
 

  2020  

 
 

    Operating activities    

 
 
 
 
 
 
 
 
 
 

  Net earnings  

 
 

  $  

 
 

  134,937  

 
 

  $  

 
 

  149,875  

 
 

  $  

 
 

  463,063  

 
 

  $  

 
 

  350,583  

 
 

  Adjustments for  

 
 
 
 
 
 
 
 
 
 

  Depreciation and depletion  

 
 
 

  55,445  

 
 
 

  61,050  

 
 
 

  196,869  

 
 
 

  185,542  

 
 

  Interest expense  

 
 
 

  30  

 
 
 

  1,795  

 
 
 

  324  

 
 
 

  11,289  

 
 

  Equity settled stock based compensation  

 
 
 

  1,315  

 
 
 

  1,319  

 
 
 

  3,946  

 
 
 

  4,127  

 
 

  Performance share units  

 
 
 

  2,824  

 
 
 

  9,325  

 
 
 

  (7,128)  

 
 
 

  11,734  

 
 

  Pension expense  

 
 
 

  294  

 
 
 

  265  

 
 
 

  710  

 
 
 

  533  

 
 

  Income tax expense (recovery)  

 
 
 

  433  

 
 
 

  (43)  

 
 
 

  (955)  

 
 
 

  3,601  

 
 

  Loss (gain) on fair value adjustment of share purchase warrants held  

 
 
 

  1,246  

 
 
 

  1,107  

 
 
 

  2,392  

 
 
 

  845  

 
 

  Fair value (gain) loss on convertible note receivable  

 
 
 

  490  

 
 
 

  1,095  

 
 
 

  (4,136)  

 
 
 

  (1,382)  

 
 

  Investment income recognized in net earnings  

 
 
 

  (178)  

 
 
 

  (23)  

 
 
 

  (275)  

 
 
 

  (178)  

 
 

  Other  

 
 
 

  (9)  

 
 
 

  567  

 
 
 

  685  

 
 
 

  513  

 
 

  Change in non-cash working capital  

 
 
 

  4,434  

 
 
 

  3,656  

 
 
 

  (5,341)  

 
 
 

  2,771  

 
 

  Cash generated from operations before income taxes and interest  

 
 

  $  

 
 

  201,261  

 
 

  $  

 
 

  229,988  

 
 

  $  

 
 

  650,154  

 
 

  $  

 
 

  569,978  

 
 

  Income taxes recovered (paid)  

 
 
 

  -  

 
 
 

  -  

 
 
 

  (51)  

 
 
 

  70  

 
 

  Interest paid  

 
 
 

  (31)  

 
 
 

  (1,912)  

 
 
 

  (401)  

 
 
 

  (12,745)  

 
 

  Interest received  

 
 
 

  57  

 
 
 

  23  

 
 
 

  154  

 
 
 

  177  

 
 

  Cash generated from operating activities  

 
 

  $  

 
 

  201,287  

 
 

  $  

 
 

  228,099  

 
 

  $  

 
 

  649,856  

 
 

  $  

 
 

  557,480  

 
 

    Financing activities    

 
 
 
 
 
 
 
 
 
 

  Bank debt repaid  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  (153,000)  

 
 

  $  

 
 

  (195,000)  

 
 

  $  

 
 

  (387,000)  

 
 

  Credit facility extension fees  

 
 
 

  (54)  

 
 
 

  (6)  

 
 
 

  (1,727)  

 
 
 

  (1,373)  

 
 

  Share purchase options exercised  

 
 
 

  183  

 
 
 

  2,763  

 
 
 

  5,719  

 
 
 

  20,779  

 
 

  Lease payments  

 
 
 

  (196)  

 
 
 

  (132)  

 
 
 

  (583)  

 
 
 

  (438)  

 
 

  Dividends paid  

 
 
 

  (57,235)  

 
 
 

  (37,309)  

 
 
 

  (160,784)  

 
 
 

  (120,312)  

 
 

  Cash (used for) generated from financing activities  

 
 

  $  

 
 

  (57,302)  

 
 

  $  

 
 

  (187,684)  

 
 

  $  

 
 

  (352,375)  

 
 

  $  

 
 

  (488,344)  

 
 

    Investing activities    

 
 
 
 
 
 
 
 
 
 

  Mineral stream interests  

 
 

  $  

 
 

  (1,055)  

 
 

  $  

 
 

  (40)  

 
 

  $  

 
 

  (216,845)  

 
 

  $  

 
 

  (40)  

 
 

  Early deposit mineral stream interests  

 
 
 

  (750)  

 
 
 

  (750)  

 
 
 

  (1,500)  

 
 
 

  (1,500)  

 
 

  Mineral royalty interest  

 
 
 

  -  

 
 
 

  -  

 
 
 

  (3,571)  

 
 
 

  -  

 
 

  Acquisition of long-term investments  

 
 
 

  (5,076)  

 
 
 

  (10,671)  

 
 
 

  (7,453)  

 
 
 

  (10,671)  

 
 

  Proceeds on disposal of long-term investments  

 
 
 

  -  

 
 
 

  49,454  

 
 
 

  112,188  

 
 
 

  49,577  

 
 

  Dividends received  

 
 
 

  110  

 
 
 

  -  

 
 
 

  110  

 
 
 

  -  

 
 

  Other  

 
 
 

  (171)  

 
 
 

  (363)  

 
 
 

  (691)  

 
 
 

  (691)  

 
 

  Cash generated from (used for) investing activities  

 
 

  $  

 
 

  (6,942)  

 
 

  $  

 
 

  37,630  

 
 

  $  

 
 

  (117,762)  

 
 

  $  

 
 

  36,675  

 
 

  Effect of exchange rate changes on cash and cash equivalents  

 
 

  $  

 
 

  (39)  

 
 

  $  

 
 

  25  

 
 

  $  

 
 

  48  

 
 

  $  

 
 

  37  

 
 

  Increase in cash and cash equivalents  

 
 

  $  

 
 

  137,004  

 
 

  $  

 
 

  78,070  

 
 

  $  

 
 

  179,767  

 
 

  $  

 
 

  105,848  

 
 

  Cash and cash equivalents, beginning of period  

 
 
 

  235,446  

 
 
 

  131,764  

 
 
 

  192,683  

 
 
 

  103,986  

 
 

  Cash and cash equivalents, end of period  

 
 

  $  

 
 

  372,450  

 
 

  $  

 
 

  209,834  

 
 

  $  

 
 

  372,450  

 
 

  $  

 
 

  209,834  

 
 
 

   Summary of Units Produced   

 

   
 
 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                 
 
 

  Q3 2021  

 
 

  Q2 2021  

 
 

  Q1 2021  

 
 

  Q4 2020  

 
 

  Q3 2020  

 
 

  Q2 2020  

 
 

  Q1 2020  

 
 

  Q4 2019  

 
 

  Gold ounces produced ²  

 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  55,205  

 
 

  55,590  

 
 

  46,622  

 
 

  62,854  

 
 

  63,408  

 
 

  59,104  

 
 

  62,575  

 
 

  74,716  

 
 

  Sudbury 3  

 
 

  465  

 
 

  4,563  

 
 

  7,004  

 
 

  6,659  

 
 

  3,798  

 
 

  9,257  

 
 

  7,795  

 
 

  6,468  

 
 

  Constancia 8  

 
 

  8,533  

 
 

  5,519  

 
 

  2,453  

 
 

  3,929  

 
 

  3,780  

 
 

  3,470  

 
 

  3,681  

 
 

  4,757  

 
 

  San Dimas 4, 8  

 
 

  11,936  

 
 

  11,478  

 
 

  10,491  

 
 

  11,652  

 
 

  9,228  

 
 

  6,074  

 
 

  11,318  

 
 

  11,352  

 
 

  Stillwater 5  

 
 

  2,949  

 
 

  2,962  

 
 

  3,041  

 
 

  3,290  

 
 

  3,176  

 
 

  3,222  

 
 

  2,955  

 
 

  3,585  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 

  Minto 6  

 
 

  1,703  

 
 

  3,206  

 
 

  2,638  

 
 

  789  

 
 

  1,832  

 
 

  2,928  

 
 

  2,124  

 
 

  2,189  

 
 
 

  777 9  

 
 

  4,717  

 
 

  5,035  

 
 

  6,280  

 
 

  2,866  

 
 

  5,278  

 
 

  4,728  

 
 

  4,551  

 
 

  3,987  

 
 
 

  Marmato  

 
 

  433  

 
 

  1,713  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Total Other  

 
 

  6,853  

 
 

  9,954  

 
 

  8,918  

 
 

  3,655  

 
 

  7,110  

 
 

  7,656  

 
 

  6,675  

 
 

  6,176  

 
 

  Total gold ounces produced  

 
 

  85,941  

 
 

  90,066  

 
 

  78,529  

 
 

  92,039  

 
 

  90,500  

 
 

  88,783  

 
 

  94,999  

 
 

  107,054  

 
 

  Silver ounces produced 2  

 
 
 
 
 
 
 
 
 
 

  Peñasquito 8  

 
 

  2,180  

 
 

  2,026  

 
 

  2,202  

 
 

  2,014  

 
 

  1,992  

 
 

  967  

 
 

  2,658  

 
 

  1,895  

 
 

  Antamina 8  

 
 

  1,548  

 
 

  1,558  

 
 

  1,577  

 
 

  1,930  

 
 

  1,516  

 
 

  612  

 
 

  1,311  

 
 

  1,342  

 
 

  Constancia 8  

 
 

  521  

 
 

  468  

 
 

  406  

 
 

  478  

 
 

  430  

 
 

  254  

 
 

  461  

 
 

  632  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 

  Los Filos 8  

 
 

  12  

 
 

  26  

 
 

  31  

 
 

  6  

 
 

  17  

 
 

  14  

 
 

  29  

 
 

  55  

 
 
 

  Zinkgruvan  

 
 

  658  

 
 

  457  

 
 

  420  

 
 

  515  

 
 

  498  

 
 

  389  

 
 

  662  

 
 

  670  

 
 
 

  Yauliyacu 8  

 
 

  432  

 
 

  821  

 
 

  737  

 
 

  454  

 
 

  679  

 
 

  273  

 
 

  557  

 
 

  358  

 
 
 

  Stratoni  

 
 

  8  

 
 

  164  

 
 

  165  

 
 

  185  

 
 

  156  

 
 

  148  

 
 

  183  

 
 

  147  

 
 
 

  Minto 6  

 
 

  25  

 
 

  33  

 
 

  21  

 
 

  16  

 
 

  15  

 
 

  19  

 
 

  18  

 
 

  18  

 
 
 

  Neves-Corvo  

 
 

  362  

 
 

  408  

 
 

  345  

 
 

  420  

 
 

  281  

 
 

  479  

 
 

  377  

 
 

  385  

 
 
 

  Aljustrel  

 
 

  314  

 
 

  400  

 
 

  474  

 
 

  440  

 
 

  348  

 
 

  388  

 
 

  352  

 
 

  325  

 
 
 

  Cozamin  

 
 

  199  

 
 

  183  

 
 

  230  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  Marmato  

 
 

  10  

 
 

  39  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  Keno Hill  

 
 

  44  

 
 

  55  

 
 

  27  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  777 9  

 
 

  81  

 
 

  83  

 
 

  130  

 
 

  51  

 
 

  96  

 
 

  108  

 
 

  96  

 
 

  81  

 
 

  Total Other  

 
 

  2,145  

 
 

  2,669  

 
 

  2,580  

 
 

  2,087  

 
 

  2,090  

 
 

  1,818  

 
 

  2,274  

 
 

  2,039  

 
 

  Total silver ounces produced  

 
 

  6,394  

 
 

  6,721  

 
 

  6,765  

 
 

  6,509  

 
 

  6,028  

 
 

  3,651  

 
 

  6,704  

 
 

  5,908  

 
 

  Palladium ounces produced ²  

 
 
 
 
 
 
 
 
 
 

  Stillwater 5  

 
 

  5,105  

 
 

  5,301  

 
 

  5,769  

 
 

  5,672  

 
 

  5,444  

 
 

  5,759  

 
 

  5,312  

 
 

  6,057  

 
 

  Cobalt pounds produced ²  

 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  370,522  

 
 

  379,757  

 
 

  1,162,243 ¹⁰  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEOs produced 7  

 
 

  184,918  

 
 

  193,927  

 
 

  191,308  

 
 

  189,682  

 
 

  181,184  

 
 

  146,857  

 
 

  194,901  

 
 

  196,850  

 
 

  SEOs produced 7  

 
 

  13,314  

 
 

  13,963  

 
 

  13,774  

 
 

  13,657  

 
 

  13,045  

 
 

  10,574  

 
 

  14,033  

 
 

  14,173  

 
 

  Average payable rate 2  

 
 
 
 
 
 
 
 
 
 

  Gold  

 
 

  96.2%  

 
 

  95.8%  

 
 

  95.0%  

 
 

  95.2%  

 
 

  95.3%  

 
 

  94.7%  

 
 

  95.1%  

 
 

  95.6%  

 
 

  Silver  

 
 

  86.6%  

 
 

  87.0%  

 
 

  86.6%  

 
 

  86.3%  

 
 

  86.1%  

 
 

  81.9%  

 
 

  85.6%  

 
 

  85.3%  

 
 

  Palladium  

 
 

  94.5%  

 
 

  95.0%  

 
 

  91.6%  

 
 

  93.6%  

 
 

  94.0%  

 
 

  90.8%  

 
 

  91.0%  

 
 

  92.2%  

 
 

  Cobalt  

 
 

  93.3%  

 
 

  93.3%  

 
 

  93.3%  

 
 

  n.a.  

 
 

  n.a.  

 
 

  n.a.  

 
 

  n.a.  

 
 

  n.a.  

 
 

  GEO 7  

 
 

  91.2%  

 
 

  91.7%  

 
 

  90.4%  

 
 

  91.1%  

 
 

  91.1%  

 
 

  89.8%  

 
 

  90.4%  

 
 

  91.5%  

 
 
 
 
                    
 

  1)  

 
 

  All figures in thousands except cobalt pounds and gold and palladium ounces produced.  

 
 

  2)  

 
 

  Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received.  

 
 

  3)  

 
 

  Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees.  

 
 

  4)  

 
 

  Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000 ounces; Q4-2019 - 415,000 ounces.  

 
 

  5)  

 
 

  Comprised of the Stillwater and East Boulder gold and palladium interests.  

 
 

  6)  

 
 

  The Minto mine was placed into care and maintenance from October 2018 to October 2019.  

 
 

  7)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.  

 
 

  8)  

 
 

  Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted. Additionally, operations at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community and had been temporarily suspended from June 22, 2021 to July 26, 2021 as the result of illegal blockades by a group of unionized employees and members of the Xochipala community.  

 
 

  9)  

 
 

  Operations at 777 were temporarily suspended from October 11, 2020 to November 25, 2020 as a result of an incident that occurred on October 9th during routine maintenance of the hoist rope and skip.  

 
 

  10)  

 
 

  

 

  Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey's Bay mine. As per the Voisey's Bay PMPA with Vale, Wheaton is entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey's Bay mine in the previous quarter.  

 

 

 

 

 

 

 
 
 

   Summary of Units Sold   

 

   
 
 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                            
 
 

  Q3 2021  

 
 

  Q2 2021  

 
 

  Q1 2021  

 
 

  Q4 2020  

 
 

  Q3 2020  

 
 

  Q2 2020  

 
 

  Q1 2020  

 
 

  Q4 2019  

 
 

  Gold ounces sold  

 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  35,185  

 
 

  57,296  

 
 

  51,423  

 
 

  53,197  

 
 

  59,584  

 
 

  68,487  

 
 

  74,944  

 
 

  58,137  

 
 

  Sudbury 2  

 
 

  1,915  

 
 

  6,945  

 
 

  3,691  

 
 

  7,620  

 
 

  7,858  

 
 

  7,414  

 
 

  4,822  

 
 

  7,394  

 
 

  Constancia 7  

 
 

  8,159  

 
 

  2,321  

 
 

  1,676  

 
 

  3,853  

 
 

  4,112  

 
 

  3,024  

 
 

  3,331  

 
 

  5,108  

 
 

  San Dimas 7  

 
 

  11,346  

 
 

  11,214  

 
 

  10,273  

 
 

  11,529  

 
 

  9,687  

 
 

  6,030  

 
 

  11,358  

 
 

  11,499  

 
 

  Stillwater 3  

 
 

  2,820  

 
 

  2,574  

 
 

  3,074  

 
 

  3,069  

 
 

  3,015  

 
 

  3,066  

 
 

  3,510  

 
 

  2,925  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 

  Minto 4  

 
 

  1,907  

 
 

  2,359  

 
 

  2,390  

 
 

  1,540  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  777  

 
 

  5,879  

 
 

  5,694  

 
 

  2,577  

 
 

  5,435  

 
 

  5,845  

 
 

  4,783  

 
 

  2,440  

 
 

  4,160  

 
 
 

  Marmato  

 
 

  438  

 
 

  1,687  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Total Other  

 
 

  8,224  

 
 

  9,740  

 
 

  4,967  

 
 

  6,975  

 
 

  5,845  

 
 

  4,783  

 
 

  2,440  

 
 

  4,160  

 
 

  Total gold ounces sold  

 
 

  67,649  

 
 

  90,090  

 
 

  75,104  

 
 

  86,243  

 
 

  90,101  

 
 

  92,804  

 
 

  100,405  

 
 

  89,223  

 
 

  Silver ounces sold  

 
 
 
 
 
 
 
 
 
 

  Peñasquito 7  

 
 

  2,210  

 
 

  1,844  

 
 

  2,174  

 
 

  1,417  

 
 

  1,799  

 
 

  1,917  

 
 

  2,310  

 
 

  1,268  

 
 

  Antamina 7  

 
 

  1,502  

 
 

  1,499  

 
 

  1,930  

 
 

  1,669  

 
 

  1,090  

 
 

  788  

 
 

  1,244  

 
 

  1,227  

 
 

  Constancia 7  

 
 

  484  

 
 

  295  

 
 

  346  

 
 

  442  

 
 

  415  

 
 

  254  

 
 

  350  

 
 

  672  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 

  Los Filos 7  

 
 

  12  

 
 

  42  

 
 

  27  

 
 

  -  

 
 

  19  

 
 

  25  

 
 

  37  

 
 

  26  

 
 
 

  Zinkgruvan  

 
 

  354  

 
 

  355  

 
 

  293  

 
 

  326  

 
 

  492  

 
 

  376  

 
 

  447  

 
 

  473  

 
 
 

  Yauliyacu 7  

 
 

  182  

 
 

  601  

 
 

  1,014  

 
 

  15  

 
 

  580  

 
 

  704  

 
 

  9  

 
 

  561  

 
 
 

  Stratoni  

 
 

  41  

 
 

  167  

 
 

  117  

 
 

  169  

 
 

  134  

 
 

  77  

 
 

  163  

 
 

  120  

 
 
 

  Minto 4  

 
 

  24  

 
 

  29  

 
 

  26  

 
 

  20  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  Neves-Corvo  

 
 

  193  

 
 

  215  

 
 

  239  

 
 

  145  

 
 

  201  

 
 

  236  

 
 

  204  

 
 

  154  

 
 
 

  Aljustrel  

 
 

  155  

 
 

  208  

 
 

  257  

 
 

  280  

 
 

  148  

 
 

  252  

 
 

  123  

 
 

  121  

 
 
 

  Cozamin  

 
 

  170  

 
 

  168  

 
 

  173  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  Marmato  

 
 

  10  

 
 

  35  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  Keno Hill  

 
 

  51  

 
 

  33  

 
 

  12  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 

  777  

 
 

  99  

 
 

  109  

 
 

  49  

 
 

  93  

 
 

  121  

 
 

  100  

 
 

  41  

 
 

  62  

 
 

  Total Other  

 
 

  1,291  

 
 

  1,962  

 
 

  2,207  

 
 

  1,048  

 
 

  1,695  

 
 

  1,770  

 
 

  1,024  

 
 

  1,517  

 
 

  Total silver ounces sold  

 
 

  5,487  

 
 

  5,600  

 
 

  6,657  

 
 

  4,576  

 
 

  4,999  

 
 

  4,729  

 
 

  4,928  

 
 

  4,684  

 
 

  Palladium ounces sold  

 
 
 
 
 
 
 
 
 
 

  Stillwater 3  

 
 

  5,703  

 
 

  3,869  

 
 

  5,131  

 
 

  4,591  

 
 

  5,546  

 
 

  4,976  

 
 

  4,938  

 
 

  5,312  

 
 

  Cobalt pounds sold  

 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  131,174  

 
 

  394,623  

 
 

  132,277  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEOs sold 5  

 
 

  152,432  

 
 

  176,700  

 
 

  175,419  

 
 

  155,665  

 
 

  166,611  

 
 

  164,844  

 
 

  175,154  

 
 

  161,066  

 
 

  SEOs sold 5  

 
 

  10,975  

 
 

  12,722  

 
 

  12,630  

 
 

  11,208  

 
 

  11,996  

 
 

  11,869  

 
 

  12,611  

 
 

  11,597  

 
 

  Cumulative payable units PBND 6  

 
 
 
 
 
 
 
 
 
 

  Gold ounces  

 
 

  81,246  

 
 

  66,250  

 
 

  70,072  

 
 

  70,555  

 
 

  75,750  

 
 

  79,632  

 
 

  88,383  

 
 

  98,475  

 
 

  Silver ounces  

 
 

  4,056  

 
 

  3,975  

 
 

  3,738  

 
 

  4,486  

 
 

  3,437  

 
 

  3,222  

 
 

  4,961  

 
 

  4,142  

 
 

  Palladium ounces  

 
 

  5,619  

 
 

  6,822  

 
 

  5,373  

 
 

  5,597  

 
 

  4,616  

 
 

  4,883  

 
 

  4,875  

 
 

  4,872  

 
 

  Cobalt pounds  

 
 

  637,986  

 
 

  777,304  

 
 

  819,819  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEO 5  

 
 

  151,056  

 
 

  137,835  

 
 

  136,933  

 
 

  140,008  

 
 

  129,391  

 
 

  130,623  

 
 

  163,521  

 
 

  162,225  

 
 

  SEO 5  

 
 

  10,423  

 
 

  9,372  

 
 

  9,277  

 
 

  10,081  

 
 

  9,316  

 
 

  9,405  

 
 

  11,774  

 
 

  11,680  

 
 

  Inventory on hand  

 
 
 
 
 
 
 
 
 
 

  Cobalt pounds  

 
 

  488,324  

 
 

  134,482  

 
 

  132,277  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 
 
              
 

  1)  

 
 

  All figures in thousands except cobalt pounds and 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 Minto mine was placed into care and maintenance from October 2018 to October 2019.  

 
 

  5)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.  

 
 

  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.  

 
 

  7)  

 
 

  Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.  

 
 
 

   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, 2021  

 
 
 

  Units Produced²  

 
 

  Units
Sold
 

 
 

  Average
Realized
Price
($'s
Per Unit)
 

 
 

  Average
Cash Cost
($'s Per
Unit) 3
 

 
 

  Average
Depletion
($'s Per
Unit)
 

 
 

  Sales  

 
 

  Net
Earnings
 

 
 

  Cash Flow
From
Operations
 

 
 

  Total
Assets
 

 
 

    Gold    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  55,205  

 
 

  35,185  

 
 

  $  

 
 

  1,795  

 
 

  $  

 
 

  412  

 
 

  $  

 
 

  374  

 
 

  $  

 
 

  63,154  

 
 

  $  

 
 

  35,504  

 
 

  $  

 
 

  50,404  

 
 

  $  

 
 

  2,455,567  

 
 

  Sudbury 4  

 
 

  465  

 
 

  1,915  

 
 
 

  1,794  

 
 
 

  400  

 
 
 

  1,024  

 
 
 

  3,436  

 
 
 

  708  

 
 
 

  2,242  

 
 
 

  308,158  

 
 

  Constancia  

 
 

  8,533  

 
 

  8,159  

 
 
 

  1,795  

 
 
 

  411  

 
 
 

  315  

 
 
 

  14,645  

 
 
 

  8,723  

 
 
 

  11,487  

 
 
 

  101,741  

 
 

  San Dimas  

 
 

  11,936  

 
 

  11,346  

 
 
 

  1,795  

 
 
 

  618  

 
 
 

  322  

 
 
 

  20,365  

 
 
 

  9,693  

 
 
 

  13,351  

 
 
 

  171,617  

 
 

  Stillwater  

 
 

  2,949  

 
 

  2,820  

 
 
 

  1,795  

 
 
 

  326  

 
 
 

  397  

 
 
 

  5,061  

 
 
 

  3,024  

 
 
 

  4,144  

 
 
 

  220,949  

 
 

  Other 5  

 
 

  6,853  

 
 

  8,224  

 
 
 

  1,794  

 
 
 

  590  

 
 
 

  38  

 
 
 

  14,755  

 
 
 

  9,586  

 
 
 

  9,887  

 
 
 

  64,985  

 
 
 

  85,941  

 
 

  67,649  

 
 

  $  

 
 

  1,795  

 
 

  $  

 
 

  464  

 
 

  $  

 
 

  337  

 
 

  $  

 
 

  121,416  

 
 

  $  

 
 

  67,238  

 
 

  $  

 
 

  91,515  

 
 

  $  

 
 

  3,323,017  

 
 

    Silver    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Peñasquito  

 
 

  2,180  

 
 

  2,210  

 
 

  $  

 
 

  24.09  

 
 

  $  

 
 

  4.29  

 
 

  $  

 
 

  3.55  

 
 

  $  

 
 

  53,259  

 
 

  $  

 
 

  35,932  

 
 

  $  

 
 

  43,776  

 
 

  $  

 
 

  328,470  

 
 

  Antamina  

 
 

  1,548  

 
 

  1,502  

 
 
 

  23.99  

 
 
 

  4.80  

 
 
 

  7.53  

 
 
 

  36,000  

 
 
 

  17,503  

 
 
 

  28,993  

 
 
 

  589,816  

 
 

  Constancia  

 
 

  521  

 
 

  484  

 
 
 

  24.09  

 
 
 

  6.05  

 
 
 

  7.56  

 
 
 

  11,668  

 
 
 

  5,076  

 
 
 

  9,033  

 
 
 

  208,537  

 
 

  Other 6  

 
 

  2,145  

 
 

  1,291  

 
 
 

  22.97  

 
 
 

  6.33  

 
 
 

  4.49  

 
 
 

  29,660  

 
 
 

  15,686  

 
 
 

  24,011  

 
 
 

  602,796  

 
 
 

  6,394  

 
 

  5,487  

 
 

  $  

 
 

  23.80  

 
 

  $  

 
 

  5.06  

 
 

  $  

 
 

  5.21  

 
 

  $  

 
 

  130,587  

 
 

  $  

 
 

  74,197  

 
 

  $  

 
 

  105,813  

 
 

  $  

 
 

  1,729,619  

 
 

    Palladium    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Stillwater  

 
 

  5,105  

 
 

  5,703  

 
 

  $  

 
 

  2,426  

 
 

  $  

 
 

  468  

 
 

  $  

 
 

  442  

 
 

  $  

 
 

  13,834  

 
 

  $  

 
 

  8,644  

 
 

  $  

 
 

  11,168  

 
 

  $  

 
 

  234,883  

 
 

    Cobalt    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  370,522  

 
 

  131,174  

 
 

  $  

 
 

  23.78  

 
 

  $  

 
 

  5.15  

 
 

  $  

 
 

  8.17  

 
 

  $  

 
 

  3,120  

 
 

  $  

 
 

  1,373  

 
 

  $  

 
 

  159  

 
 

  $  

 
 

  218,144  

 
 

    Operating results    

 
 
 
 
 
 
 
 
 

  $  

 
 

  268,957  

 
 

  $  

 
 

  151,452  

 
 

  $  

 
 

  208,655  

 
 

  $  

 
 

  5,505,663  

 
 

    Other    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  General and administrative  

 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (13,595)  

 
 

  $  

 
 

  (6,432)  

 
 
 
 

  Finance costs  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (1,379)  

 
 
 

  (1,039)  

 
 
 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 
 

  (1,108)  

 
 
 

  103  

 
 
 
 

  Income tax  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (433)  

 
 
 

  -  

 
 
 
 

  Total other  

 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (16,515)  

 
 

  $  

 
 

  (7,368)  

 
 

  $  

 
 

  541,077  

 
 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  134,937  

 
 

  $  

 
 

  201,287  

 
 

  $  

 
 

  6,046,740  

 
 
 
 
            
 

  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 cobalt pounds produced and sold, gold and palladium ounces produced and sold and per unit amounts.  

 
 

  2)  

 
 

  Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.  

 
 

  3)  

 
 

  Refer to discussion on non-IFRS measure (iii) at the end of this press release.  

 
 

  4)  

 
 

  Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.  

 
 

  5)  

 
 

  Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Rosemont and Santo Domingo gold interests.  

 
 

  6)  

 
 

  Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama and Rosemont silver interests.  

 
 
 

  On a gold equivalent and silver equivalent basis, results for the Company for the three months ended September 30, 2021 were as follows:  

 
 
                         
 

  Three Months Ended September 30, 2021  

 
 
 

  Ounces
Produced 1, 2
 

 
 

  Ounces
Sold 2
 

 
 

  Average
Realized
Price
($'s Per
Ounce)
 

 
 

  Average
Cash Cost
($'s Per
Ounce) 3
 

 
 

    Cash Operating Margin
($'s Per Ounce) 4
 
 
 

 
 

  Average
Depletion
($'s Per
Ounce)
 

 
 

    Gross
Margin
($'s Per
Ounce)
 
 
 

 
 

  Gold equivalent basis 5   

 
 

  184,918  

 
 

  152,432  

 
 

  $    1,764  

 
 

  $    410  

 
 

   $    1,354   

 
 

  $    361  

 
 

   $    993   

 
 

  Silver equivalent basis 5   

 
 

  13,314  

 
 

  10,975  

 
 

  $   24.51  

 
 

  $   5.70  

 
 

   $   18.81   

 
 

  $   5.01  

 
 

   $   13.80   

 
 
 
 
          
 

  1)  

 
 

  Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.  

 
 

  2)  

 
 

  Silver ounces produced and sold in thousands.  

 
 

  3)  

 
 

  Refer to discussion on non-IFRS measure (iii) at the end of this press release.  

 
 

  4)  

 
 

  Refer to discussion on non-IFRS measure (iv) at the end of this press release.  

 
 

  5)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 

  Three Months Ended September 30, 2020  

 
 
 

  Units Produced²  

 
 

  Units
Sold
 

 
 

  Average
Realized
Price
($'s
Per Unit)
 

 
 

  Average
Cash Cost
($'s Per
Unit) 3
 

 
 

  Average
Depletion
($'s Per
Unit)
 

 
 

  Sales  

 
 

  Net
Earnings
 

 
 

  Cash Flow
From
Operations
 

 
 

  Total
Assets
 

 
 

    Gold    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  63,408  

 
 

  59,584  

 
 

  $  

 
 

  1,902  

 
 

  $  

 
 

  408  

 
 

  $  

 
 

  374  

 
 

  $  

 
 

  113,319  

 
 

  $  

 
 

  66,700  

 
 

  $  

 
 

  91,917  

 
 

  $  

 
 

  2,529,258  

 
 

  Sudbury 4  

 
 

  3,798  

 
 

  7,858  

 
 
 

  1,929  

 
 
 

  400  

 
 
 

  831  

 
 
 

  15,161  

 
 
 

  5,485  

 
 
 

  12,018  

 
 
 

  327,352  

 
 

  Constancia  

 
 

  3,780  

 
 

  4,112  

 
 
 

  1,902  

 
 
 

  407  

 
 
 

  338  

 
 
 

  7,819  

 
 
 

  4,758  

 
 
 

  6,147  

 
 
 

  106,870  

 
 

  San Dimas  

 
 

  9,228  

 
 

  9,687  

 
 
 

  1,902  

 
 
 

  612  

 
 
 

  315  

 
 
 

  18,423  

 
 
 

  9,442  

 
 
 

  14,309  

 
 
 

  185,835  

 
 

  Stillwater  

 
 

  3,176  

 
 

  3,015  

 
 
 

  1,902  

 
 
 

  345  

 
 
 

  449  

 
 
 

  5,734  

 
 
 

  3,341  

 
 
 

  4,695  

 
 
 

  225,688  

 
 

  Other 5  

 
 

  7,110  

 
 

  5,845  

 
 
 

  1,929  

 
 
 

  423  

 
 
 

  305  

 
 
 

  11,278  

 
 
 

  7,022  

 
 
 

  8,804  

 
 
 

  9,184  

 
 
 

  90,500  

 
 

  90,101  

 
 

  $  

 
 

  1,906  

 
 

  $  

 
 

  428  

 
 

  $  

 
 

  404  

 
 

  $  

 
 

  171,734  

 
 

  $  

 
 

  96,748  

 
 

  $  

 
 

  137,890  

 
 

  $  

 
 

  3,384,187  

 
 

    Silver    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Peñasquito  

 
 

  1,992  

 
 

  1,799  

 
 

  $  

 
 

  24.55  

 
 

  $  

 
 

  4.26  

 
 

  $  

 
 

  3.24  

 
 

  $  

 
 

  44,154  

 
 

  $  

 
 

  30,660  

 
 

  $  

 
 

  36,492  

 
 

  $  

 
 

  355,167  

 
 

  Antamina  

 
 

  1,516  

 
 

  1,090  

 
 
 

  24.55  

 
 
 

  4.67  

 
 
 

  8.74  

 
 
 

  26,758  

 
 
 

  12,139  

 
 
 

  21,666  

 
 
 

  641,521  

 
 

  Constancia  

 
 

  430  

 
 

  415  

 
 
 

  24.55  

 
 
 

  5.99  

 
 
 

  7.63  

 
 
 

  10,190  

 
 
 

  4,538  

 
 
 

  7,704  

 
 
 

  220,417  

 
 

  Other 6  

 
 

  2,090  

 
 

  1,695  

 
 
 

  24.98  

 
 
 

  8.37  

 
 
 

  1.94  

 
 
 

  42,332  

 
 
 

  24,859  

 
 
 

  24,333  

 
 
 

  475,613  

 
 
 

  6,028  

 
 

  4,999  

 
 

  $  

 
 

  24.69  

 
 

  $  

 
 

  5.89  

 
 

  $  

 
 

  4.36  

 
 

  $  

 
 

  123,434  

 
 

  $  

 
 

  72,196  

 
 

  $  

 
 

  90,195  

 
 

  $  

 
 

  1,692,718  

 
 

    Palladium    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Stillwater  

 
 

  5,444  

 
 

  5,546  

 
 

  $  

 
 

  2,182  

 
 

  $  

 
 

  383  

 
 

  $  

 
 

  428  

 
 

  $  

 
 

  12,100  

 
 

  $  

 
 

  7,604  

 
 

  $  

 
 

  9,977  

 
 

  $  

 
 

  243,354  

 
 

    Cobalt    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  -  

 
 

  -  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  227,510  

 
 

    Operating results    

 
 
 
 
 
 
 
 
 

  $  

 
 

  307,268  

 
 

  $  

 
 

  176,548  

 
 

  $  

 
 

  238,062  

 
 

  $  

 
 

  5,547,769  

 
 

    Other    

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  General and administrative  

 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (21,326)  

 
 

  $  

 
 

  (7,239)  

 
 
 
 

  Finance costs  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (2,766)  

 
 
 

  (2,820)  

 
 
 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 
 

  (2,624)  

 
 
 

  96  

 
 
 
 

  Income tax  

 
 
 
 
 
 
 
 
 
 
 
 
 

  43  

 
 
 

  -  

 
 
 
 

  Total other  

 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (26,673)  

 
 

  $  

 
 

  (9,963)  

 
 

  $  

 
 

  543,418  

 
 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  149,875  

 
 

  $  

 
 

  228,099  

 
 

  $  

 
 

  6,091,187  

 
 
 
 
            
 

  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 cobalt pounds produced and sold, gold and palladium ounces produced and sold and per unit amounts.  

 
 

  2  

 
 

  Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.  

 
 

  3)  

 
 

  Refer to discussion on non-IFRS measure (iii) at the end of this press release.  

 
 

  4)  

 
 

  Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.  

 
 

  5)  

 
 

  Comprised of the operating Minto and 777 gold interests as well as the non-operating Rosemont gold interest.  

 
 

  6)  

 
 

  Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont silver interests.  

 
 
 

  On a gold equivalent and silver equivalent basis, results for the Company for the three months ended September 30, 2020 were as follows:  

 
 
                         
 

  Three Months Ended September 30, 2020  

 
 
 

  Ounces
Produced 1, 2
 

 
 

  Ounces
Sold 2
 

 
 

  Average
Realized
Price
($'s Per
Ounce)
 

 
 

  Average
Cash Cost
($'s Per
Ounce) 3
 

 
 

    Cash Operating Margin
($'s Per Ounce) 4
 
 
 

 
 

  Average
Depletion
($'s Per
Ounce)
 

 
 

    Gross
Margin
($'s Per
Ounce)
 
 
 

 
 

  Gold equivalent basis 5   

 
 

  181,184  

 
 

  166,611  

 
 

  $    1,844  

 
 

  $    421  

 
 

   $    1,423   

 
 

  $    364  

 
 

   $    1,059   

 
 

  Silver equivalent basis 5   

 
 

  13,045  

 
 

  11,996  

 
 

  $   25.61  

 
 

  $   5.85  

 
 

   $   19.76   

 
 

  $   5.05  

 
 

   $   14.71   

 
 
 
 
          
 

  1)  

 
 

  Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.  

 
 

  2)  

 
 

  Silver ounces produced and sold in thousands.  

 
 

  3)  

 
 

  Refer to discussion on non-IFRS measure (iii) at the end of this press release.  

 
 

  4)  

 
 

  Refer to discussion on non-IFRS measure (iv) at the end of this press release.  

 
 

  5)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.  

 
 
 

   Non-IFRS Measures   

 

  Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis, with the Company receiving its first deliveries of cobalt from Voisey's Bay during the first quarter of 2021; and (iv) cash operating margin. The Company has removed the non-IFRS measure associated with net debt as Wheaton fully repaid its debt during the first quarter of 2021.  

 
 
      
 

  i.  

 
 

  Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges,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
September 30
 

 
 

  (in thousands, except for per share amounts)  

 
 
 

   2021   

 
 
 

  2020  

 
 

  Net earnings  

 
 
 

  $  

 
 

  134,937  

 
 
 

  $  

 
 

  149,875  

 
 

  Add back (deduct):  

 
 
 
 
 
 
 
 

  (Gain) loss on fair value adjustment of share purchase warrants held  

 
 
 
 

  1,246  

 
 
 
 

  1,107  

 
 

  (Gain) loss on fair value adjustment of convertible notes receivable  

 
 
 
 

  490  

 
 
 
 

  1,095  

 
 

  Income tax expense (recovery) recognized in the Statement of Shareholders' Equity  

 
 
 
 

  (269)  

 
 
 
 

  (92)  

 
 

  Income tax expense (recovery) recognized in the Statement of OCI  

 
 
 
 

  627  

 
 
 
 

  (9)  

 
 

  Other  

 
 
 
 

  56  

 
 
 
 

  31  

 
 

  Adjusted net earnings  

 
 
 

  $  

 
 

  137,087  

 
 
 

  $  

 
 

  152,007  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Basic weighted average number of shares outstanding  

 
 
 
 

  450,326  

 
 
 
 

  449,125  

 
 

  Diluted weighted average number of shares outstanding  

 
 
 
 

  451,717  

 
 
 
 

  451,999  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Adjusted earnings per share - basic  

 
 
 

  $  

 
 

  0.304  

 
 
 

  $  

 
 

  0.338  

 
 

  Adjusted earnings per share - diluted  

 
 
 

  $  

 
 

  0.303  

 
 
 

  $  

 
 

  0.336  

 
 
 

   

 
 
      
 

  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
September 30
 

 
 

  (in thousands, except for per share amounts)  

 
 
 

   2021   

 
 
 

  2020  

 
 

  Cash generated by operating activities  

 
 
 

  $  

 
 

  201,287  

 
 
 

  $  

 
 

  228,099  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Basic weighted average number of shares outstanding  

 
 
 
 

  450,326  

 
 
 
 

  449,125  

 
 

  Diluted weighted average number of shares outstanding  

 
 
 
 

  451,717  

 
 
 
 

  451,999  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Operating cash flow per share - basic  

 
 
 

  $  

 
 

  0.447  

 
 
 

  $  

 
 

  0.508  

 
 

  Operating cash flow per share - diluted  

 
 
 

  $  

 
 

  0.446  

 
 
 

  $  

 
 

  0.505  

 
 
 

 

 
 
      
 

  iii.  

 
 

  Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is calculated by dividing the total cost of sales, less depletion, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance measure but does not have any standardized meaning prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance and ability to generate cash flow.  

 
 
 
 
 

  The following table provides a calculation of average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis.  

 
 
 

   

 
 
                                                                                                                                            
 
 

  Three Months Ended
September 30
 

 
 

  (in thousands, except for gold and palladium ounces sold, cobalt pounds sold and per unit amounts)  

 
 
 

   2021   

 
 
 

  2020  

 
 

  Cost of sales  

 
 
 

  $  

 
 

  117,505  

 
 
 

  $  

 
 

  130,720  

 
 

  Less:  depletion  

 
 
 
 

  (54,976)  

 
 
 
 

  (60,601)  

 
 

  Cash cost of sales  

 
 
 

  $  

 
 

  62,529  

 
 
 

  $  

 
 

  70,119  

 
 

  Cash cost of sales is comprised of:  

 
 
 
 
 
 
 
 

  Total cash cost of gold sold  

 
 
 

  $  

 
 

  31,405  

 
 
 

  $  

 
 

  38,570  

 
 

  Total cash cost of silver sold  

 
 
 
 

  27,782  

 
 
 
 

  29,426  

 
 

  Total cash cost of palladium sold  

 
 
 
 

  2,667  

 
 
 
 

  2,123  

 
 

  Total cash cost of cobalt sold  

 
 
 
 

  675  

 
 
 
 

  -  

 
 

  Total cash cost of sales  

 
 
 

  $  

 
 

  62,529  

 
 
 

  $  

 
 

  70,119  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Total gold ounces sold  

 
 
 
 

  67,649  

 
 
 
 

  90,101  

 
 

  Total silver ounces sold  

 
 
 
 

  5,487  

 
 
 
 

  4,999  

 
 

  Total palladium ounces sold  

 
 
 
 

  5,703  

 
 
 
 

  5,546  

 
 

  Total cobalt pounds sold  

 
 
 
 

  131,174  

 
 
 
 

  -  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Average cash cost of gold (per ounce)  

 
 
 

  $  

 
 

  464  

 
 
 

  $  

 
 

  428  

 
 

  Average cash cost of silver (per ounce)  

 
 
 

  $  

 
 

  5.06  

 
 
 

  $  

 
 

  5.89  

 
 

  Average cash cost of palladium (per ounce)  

 
 
 

  $  

 
 

  468  

 
 
 

  $  

 
 

  383  

 
 

  Average cash cost of cobalt (per pound)  

 
 
 

  $  

 
 

  5.15  

 
 
 

  $  

 
 

  n.a.  

 
 
 

   

 

   

 
 
      
 

  iv.  

 
 

  Cash operating margin is calculated by subtracting the average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis from the average realized selling price of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow.  

 
 
 
 
 

  The following table provides a reconciliation of cash operating margin.  

 
 
 

   

 
 
                                                                                                                                                                                                                  
 
 

  Three Months Ended
September 30
 

 
 

  (in thousands, except for cobalt pounds sold, gold and palladium ounces sold and per unit amounts)  

 
 
 

   2021   

 
 
 

  2020  

 
 

  Total sales:  

 
 
 
 
 
 
 
 

  Gold  

 
 
 

  $  

 
 

  121,416  

 
 
 

  $  

 
 

  171,734  

 
 

  Silver  

 
 
 

  $  

 
 

  130,587  

 
 
 

  $  

 
 

  123,434  

 
 

  Palladium  

 
 
 

  $  

 
 

  13,834  

 
 
 

  $  

 
 

  12,100  

 
 

  Cobalt  

 
 
 

  $  

 
 

  3,120  

 
 
 

  $  

 
 

  -  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Total gold ounces sold  

 
 
 
 

  67,649  

 
 
 
 

  90,101  

 
 

  Total silver ounces sold  

 
 
 
 

  5,487  

 
 
 
 

  4,999  

 
 

  Total palladium ounces sold  

 
 
 
 

  5,703  

 
 
 
 

  5,546  

 
 

  Total cobalt pounds sold  

 
 
 
 

  131,174  

 
 
 
 

  -  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Average realized price of gold (per ounce)  

 
 
 

  $  

 
 

  1,795  

 
 
 

  $  

 
 

  1,906  

 
 

  Average realized price of silver (per ounce)  

 
 
 

  $  

 
 

  23.80  

 
 
 

  $  

 
 

  24.69  

 
 

  Average realized price of palladium (per ounce)  

 
 
 

  $  

 
 

  2,426  

 
 
 

  $  

 
 

  2,182  

 
 

  Average realized price of cobalt (per pound)  

 
 
 

  $  

 
 

  23.78  

 
 
 

  $  

 
 

  n.a.  

 
 

  Less:  

 
 
 
 
 
 
 
 

  Average cash cost of gold 1 (per ounce)  

 
 
 

  $  

 
 

  (464)  

 
 
 

  $  

 
 

  (428)  

 
 

  Average cash cost of silver 1 (per ounce)  

 
 
 

  $  

 
 

  (5.06)  

 
 
 

  $  

 
 

  (5.89)  

 
 

  Average cash cost of palladium 1 (per ounce)  

 
 
 

  $  

 
 

  (468)  

 
 
 

  $  

 
 

  (383)  

 
 

  Average cash cost of cobalt 1 (per pound)  

 
 
 

  $  

 
 

  (5.15)  

 
 
 

  $  

 
 

  n.a.  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Cash operating margin per gold ounce sold  

 
 
 

  $  

 
 

  1,331  

 
 
 

  $  

 
 

  1,478  

 
 

  As a percentage of realized price of gold  

 
 
 
 

  74%  

 
 
 
 

  78%  

 
 

  Cash operating margin per silver ounce sold  

 
 
 

  $  

 
 

  18.74  

 
 
 

  $  

 
 

  18.80  

 
 

  As a percentage of realized price of silver  

 
 
 
 

  79%  

 
 
 
 

  76%  

 
 

  Cash operating margin per palladium ounce sold  

 
 
 

  $  

 
 

  1,958  

 
 
 

  $  

 
 

  1,799  

 
 

  As a percentage of realized price of palladium  

 
 
 
 

  81%  

 
 
 
 

  82%  

 
 

  Cash operating margin per cobalt pound sold  

 
 
 

  $  

 
 

  18.63  

 
 
 

  $  

 
 

  n.a.  

 
 

  As a percentage of realized price of cobalt  

 
 
 
 

  78%  

 
 
 
 

  n.a.  

 
 
 
 
 
 

  1) Please refer to non-IFRS measure (iii), above.  

 
 
 

  These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may calculate these measures differently.  The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more detailed information, please refer to Wheaton's MD&A available on the Company's website at www.wheatonpm.com and posted on SEDAR at www.sedar.com .  

 

   CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS   

 

  This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton's PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the successful negotiation and entering into of definitive documentation by Wheaton International with Rio2, payment by Wheaton International of US$50 million to Rio2 and the satisfaction of each party's obligations in accordance with the Fenix PMPA, the receipt by Wheaton International of gold production in respect of the Fenix Gold project, statements with respect to the future price of commodities, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, the estimation of future production from Mining Operations (including in the estimation of production, mill throughput, grades, recoveries and exploration potential), the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates) and the realization of such estimations, the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton's PMPA counterparties at mineral stream interests owned by Wheaton (the "Mining Operations"), the ability of Wheaton's PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton's PMPA counterparties) and the potential impacts of such on Wheaton, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of the listing of the Company's common shares, any statements as to future dividends, the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs, future payments by the Company in accordance with PMPAs, including any acceleration of payments, projected increases to Wheaton's production and cash flow profile, projected changes to Wheaton's production mix, the ability of Wheaton's PMPA counterparties to comply with the terms of any other obligations under agreements with the Company, the ability to sell precious metals and cobalt production, confidence in the Company's business structure, the Company's assessment of taxes payable and the impact of the CRA Settlement for years subsequent to 2010, possible audits for taxation years subsequent to 2015, the Company's assessment of the impact of any tax reassessments, the Company's intention to file future tax returns in a manner consistent with the CRA Settlement, and assessments of the impact and resolution of various legal and tax matters, including but not limited to outstanding class action and audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to specific risks relating to the completion of documentation and diligence for the Fenix PMPA with Rio2, the satisfaction of each party's obligations in accordance with the terms of the Fenix PMPA with Rio2, risks associated with fluctuations in the price of commodities (including Wheaton's ability to sell its precious metals or cobalt production at acceptable prices or at all), risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with the exploration, development, operating, expansion and improvement of the Mining Operations, environmental and economic risks of the Mining Operations, and changes in project parameters as plans continue to be refined), the absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the Mining Operations, uncertainty in the estimation of production from Mining Operations, uncertainty in the accuracy of mineral reserve and mineral resource estimation, the ability of each party to satisfy their obligations in accordance with the terms of the PMPAs, the estimation of future production from Mining Operations, Wheaton's interpretation of, compliance with or application of, tax laws and regulations or accounting policies and rules being found to be incorrect, any challenge or reassessment by the CRA of the Company's tax filings being successful and the potential negative impact to the Company's previous and future tax filings, assessing the impact of the CRA Settlement for years subsequent to 2010 (including whether there will be any material change in the Company's facts or change in law or jurisprudence), potential implementation of a 15% global minimum tax, counterparty credit and liquidity, mine operator concentration, indebtedness and guarantees, hedging, competition, claims and legal proceedings against Wheaton or the Mining Operations, security over underlying assets, governmental regulations, international operations of Wheaton and the Mining Operations, exploration, development, operations, expansions and improvements at the Mining Operations, environmental regulations and climate change, Wheaton and the Mining Operations ability to obtain and maintain necessary licenses, permits, approvals and rulings, Wheaton and the Mining Operations ability to comply with applicable laws, regulations and permitting requirements, lack of suitable infrastructure and employees to support the Mining Operations, inability to replace and expand mineral reserves, including anticipated timing of the commencement of production by certain Mining Operations (including increases in production, estimated grades and recoveries), uncertainties of title and indigenous rights with respect to the Mining Operations, Wheaton and the Mining Operations ability to obtain adequate financing, the Mining Operations ability to complete permitting, construction, development and expansion, global financial conditions, and other risks discussed in the section entitled "Description of the Business – Risk Factors" in Wheaton's Annual Information Form available on SEDAR at    www.sedar.com    , Wheaton's Form 40-F for the year ended December 31, 2020 and Form 6-K filed March 11, 2021 both on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure"). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation):   the completion of documentation and diligence in respect of the Fenix PMPA with Rio2, the payment of US$50 million to Rio2 and the satisfaction of each party's obligations in accordance with the terms of the Fenix PMPA with Rio2, that there will be no material adverse change in the market price of commodities, that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), that the Mining Operations will continue to operate and the mining projects will be completed   in accordance with public statements   and achieve their stated production estimates, that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate, that each party will satisfy their obligations in accordance with the PMPAs, that Wheaton will continue to be able to fund or obtain funding for outstanding commitments, that Wheaton will be able to source and obtain accretive PMPAs, that any outbreak or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally, without such response requiring any prolonged closure of the Mining Operations or having other material adverse effects on the Company and counterparties to its PMPAs , that the trading of the Company's common shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE, that the trading of the Company's common shares will not be suspended, and that the net proceeds of sales of common shares, if any, will be used as anticipated, that expectations regarding the resolution of legal and tax matters will be achieved (including ongoing class action litigation and CRA audits involving the Company), that Wheaton has properly considered the interpretation and application of Canadian tax law to its structure and operations, that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, that Wheaton's application of the CRA Settlement for years subsequent to 2010 is accurate (including the Company's assessment that there will be no material change in the Company's facts or change in law or jurisprudence for years subsequent to 2010), and such other assumptions and factors as set out in the Disclosure. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward-looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward–looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.  

 

 Cision View original content: https://www.prnewswire.com/news-releases/wheaton-precious-metals-announces-record-revenue-earnings-and-cash-flow-for-the-first-nine-months-of-2021-301417150.html  

 

SOURCE Wheaton Precious Metals Corp.

 

 

 

 Cision View original content: https://www.newswire.ca/en/releases/archive/November2021/04/c1456.html  

 
 

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