WHEATON PRECIOUS METALS ANNOUNCES SOLID START TO 2022

 
 

TSX | NYSE | LSE: WPM

 

Designated News Release
FIRST QUARTER 2022 FINANCIAL RESULTS  

 

"Wheaton once again had a solid start to the year, generating over $210 million in operating cash flow and continuing to return value to our shareholders through our competitive dividend," said Randy Smallwood President and Chief Executive Officer of Wheaton Precious Metals. "In the first three months of 2022, we added two new streams and increased our interest in a pre-existing stream. In addition, we took a significant step in strengthening our environmental, social and governance strategy by formalizing our climate change policy, including setting a goal of reaching net zero carbon emissions by 2050. The year is off to a good start, and I look forward to advancing on all of our initiatives throughout the year in order to continue building a strong, sustainable business, that delivers value and growth to all of our stakeholders."

 

  First Quarter 2022 Highlights:  

 
  • Over $305 million in revenue and $210 million in operating cash flow during the quarter, resulting in a net cash balance of $376 million as at March 31, 2022 .
  •  
  •   $158 million in adjusted net earnings 1 during the first quarter of 2022.
  •  
  • Announced a new precious metal purchase agreement ("PMPA") on Adventus Mining Corporation's Curipamba Project in respect of gold and silver production.
  •  
  • Announced PMPA on Sabina Gold & Silver Corp.'s Goose Project in respect of gold production.
  •  
  • Amended the PMPA on Aris Gold Corp.'s Marmato Mine, increasing the gold stream in exchange for additional upfront consideration.
  •  
  • Adopted a climate change policy and commitment to net zero carbon emissions by 2050.
  •  
  • Declared quarterly dividend 1 of $0.15 per common share, an increase of 7% relative to the comparable period in 2021.
  •  

  Operational Overview  

 
 
                                                                                                                                                                                    
 

  (all figures in US dollars unless otherwise noted)  

 
 
 
 

  Q1 2022  

 
 
 
 

  Q1 2021  

 
 
 

  Change  

 
 

   Units produced   

 
 
 
 
 
 
 
 
 
 

  Gold ounces  

 
 
 
 

  79,087  

 
 
 
 

  78,529  

 
 
 

  0.7 %  

 
 

  Silver ounces  

 
 
 
 

  6,206  

 
 
 
 

  6,765  

 
 
 

  (8.3)%  

 
 

  Palladium ounces  

 
 
 
 

  4,488  

 
 
 
 

  5,769  

 
 
 

  (22.2)%  

 
 

  Cobalt pounds  

 
 
 
 

  234  

 
 
 
 

  1,162  

 
 
 

  (79.8)%  

 
 

  Gold equivalent ounces 2  

 
 
 
 

  171,367  

 
 
 
 

  196,756  

 
 
 

  (12.9)%  

 
 

   Units sold   

 
 
 
 
 
 
 
 
 
 

  Gold ounces  

 
 
 
 

  77,901  

 
 
 
 

  75,104  

 
 
 

  3.7 %  

 
 

  Silver ounces  

 
 
 
 

  5,553  

 
 
 
 

  6,657  

 
 
 

  (16.6)%  

 
 

  Palladium ounces  

 
 
 
 

  4,075  

 
 
 
 

  5,131  

 
 
 

  (20.6)%  

 
 

  Cobalt pounds  

 
 
 
 

  511  

 
 
 
 

  132  

 
 
 

  286.7 %  

 
 

  Gold equivalent ounces    2  

 
 
 
 

  166,065  

 
 
 
 

  172,271  

 
 
 

  (3.6)%  

 
 

   Revenue   

 
 
 

  $  

 
 

  307,244  

 
 
 

  $  

 
 

  324,119  

 
 
 

  (5.2)%  

 
 

   Net earnings   

 
 
 

  $  

 
 

  157,467  

 
 
 

  $  

 
 

  162,002  

 
 
 

  (2.8)%  

 
 

  Per share  

 
 
 

  $  

 
 

  0.349  

 
 
 

  $  

 
 

  0.360  

 
 
 

  (3.1)%  

 
 

   Adjusted net earnings   1  

 
 
 

  $  

 
 

  158,007  

 
 
 

  $  

 
 

  161,132  

 
 
 

  (1.9)%  

 
 

  Per share   1

 
 
 

  $  

 
 

  0.350  

 
 
 

  $  

 
 

  0.358  

 
 
 

  (2.2)%  

 
 

   Operating cash flows   

 
 
 

  $  

 
 

  210,540  

 
 
 

  $  

 
 

  232,154  

 
 
 

  (9.3)%  

 
 

  Per share 1  

 
 
 

  $  

 
 

  0.467  

 
 
 

  $  

 
 

  0.516  

 
 
 

  (9.5)%  

 
 
 
 
 
 

  All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, and per share amounts. [1]   [2]   

 
 
 

 

 

  Financial Review  

 

   Revenues
 
Revenue was $307 million in the first quarter of 2022 representing a 5% decrease from the first quarter of 2021 due primarily to a 4% decrease in the number of GEOs² sold.

 

   Cash Costs and Margin
 
Average cash costs¹ in the first quarter of 2022 were $421 per GEO² as compared to $457 in the first quarter of 2021. This resulted in a cash operating margin¹ of $1,429 per GEO² sold, virtually unchanged as compared with the first quarter of 2021.

 

  Balance Sheet   (at    March 31, 2022    )  

 
  • Approximately $376 million of cash on hand.
  •  
  • The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully undrawn.
  •  
  • The Company is well positioned to fund all outstanding commitments as well as providing flexibility to acquire additional accretive mineral stream interests.
  •  

  First   Quarter Asset Highlights  

 

   Salobo:   In the first quarter of 2022, Salobo produced 44,900 ounces of attributable gold, a decrease of approximately 4% relative to the first quarter of 2021. According to Vale S.A. ("Vale"), during the quarter, Salobo operations were impacted by both planned and corrective maintenance in the mill liners. In addition, above average seasonal rain level in the region during the fourth quarter of 2021 impacted mine plans in the first quarter of 2022; however, Vale does not anticipate any impact to the overall 2022 production.

 

As per Vale's First Quarter 2022 Performance Report, on January 6, 2022 , heavy rainfall in the region of the Salobo III mine expansion caused a landslide that damaged part of a conveyor belt and blocked access to the project site. Vale reports that remediation work on the conveyor is ongoing and is expected to be completed in May. Furthermore, Vale does not foresee the impacts of this event modifying the project delivery date beyond the fourth quarter of 2022. Vale reports that physical completion of the Salobo III mine expansion was 90% at the end of the first quarter.

 

   Antamina : In the first quarter of 2022, Antamina produced 1.3 million ounces of attributable silver, a decrease of approximately 20% relative to the first quarter of 2021, primarily due to lower grades as per the mine plan.

 

   Constancia : In the first quarter of 2022, Constancia produced 0.5 million ounces of attributable silver and 6,300 ounces of attributable gold, an increase of approximately 25% and 157%, respectively, relative to the first quarter of 2021. Silver production increased primarily due to higher throughput and 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%.

 

    Sudbury   : In the first quarter of 2022, Vale's Sudbury mines produced 6,400 ounces of attributable gold, a decrease of approximately 9% relative to the first quarter of 2021 primarily due to lower throughput as a result of the temporary closure of the Totten mine. As per Vale, on September 26, 2021 , a large piece of equipment, called a bucket scoop, blocked and damaged the mine shaft resulting in its temporary closure. Vale has reported that production at the Totten mine, which accounts for approximately 15% to 20% of the Company's attributable gold production from Sudbury , resumed in the first quarter of 2022 and that operations at the Sudbury mines are expected to normalize in the second quarter of 2022.

 

    Stillwater   : In the first quarter of 2022, the Stillwater mines produced 2,500 ounces of attributable gold and 4,500 ounces of attributable palladium, a decrease of approximately 18% for gold and 22% for palladium relative to the first quarter of 2021. The decrease was due to lower throughput and grades, partially offset by higher recoveries.

 

    San Dimas   : In the first quarter of 2022, San Dimas produced 10,500 ounces of attributable gold, virtually unchanged relative to the first quarter of 2021. First Majestic Silver Corp. ("First Majestic") reports that production in the first quarter of 2022 was impacted due to high absenteeism in the months of January and February caused by an increase in COVID-19 infections within the Tayoltita community.

 

   Other Gold : In the first quarter of 2022, total Other Gold attributable production was 8,500 ounces, a decrease of approximately 4% relative to the first quarter of 2021, primarily due to the mining of lower grade material at 777, which is scheduled to close in June 2022 .

 

   Other Silver:   In the first quarter of 2022, total Other Silver attributable production was 2.2 million ounces, a decrease of approximately 14% relative to the first quarter of 2021, primarily due to lower grades at Aljustrel and the placement of Stratoni into care and maintenance.

 

   Voisey's Bay:   In the first quarter of 2022, the Voisey's Bay mine produced 234 thousand pounds of attributable cobalt, a decrease of approximately 80% relative to the first quarter of 2021. The apparent significant decrease relative to the first quarter of 2021 was primarily attributed to Wheaton being contractually 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 from prior periods. As per Vale's First Quarter 2022 Performance Report, physical completion of the Voisey's Bay underground mine extension was 70% at the end of the first quarter.

 

  Produced But Not Yet Delivered 3 and Inventory  

 

As at March 31, 2022 , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:

 
  • 82,400 payable gold ounces, a decrease of 2,600 ounces during Q1 2022, primarily due to decreases at the Constancia and 777 mines partially offset by an increase at the Sudbury mines.
  •  
  • 3.9 million payable silver ounces, a decrease of 0.3 million ounces during Q1 2022.
  •  
  • 5,500 payable palladium ounces, virtually unchanged during Q1 2022.
  •  
  • 550 thousand payable cobalt pounds, virtually unchanged during Q1 2022.
  •  

As of March 31, 2022 , approximately 410 thousand pounds of cobalt were held in inventory by Wheaton, a decrease of 247 pounds during Q1 2022.

 

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.

 

  Corporate Development  

 

   Curipamba PMPA : On January 17, 2022 , the Company entered into a PMPA with Adventus Mining Corporation ("Adventus") in respect of the Curipamba Project ("Curipamba") located in Ecuador . Under the Curipamba PMPA, Wheaton will purchase 50% of the payable gold production until 145,000 ounces have been delivered, thereafter dropping to 33% of payable gold production for the life of the mine and 75% of the payable silver production until 4.6 million ounces have been delivered, thereafter dropping to 50% for the life of mine. Under the terms of the agreement, the Company is committed to pay Adventus total upfront cash consideration of $175.5 million , $13 million of which is available pre-construction and $500,000 of which will be paid to support certain local community development initiatives around Curipamba. The remainder will be payable in four staged installments during construction, subject to various customary conditions being satisfied. In addition, Wheaton will make ongoing production payments for the gold and silver ounces delivered equal to 18% of the spot prices until the value of gold and silver delivered, net of the production payment, is equal to the upfront consideration of $175.5 million , at which point the production payment will increase to 22% of the spot prices.

 

   Marathon   PMPA : On January 26, 2022 , the Company entered into the previously announced PMPA with Generation Mining Limited ("Gen Mining") in respect of the Marathon Project located in Ontario, Canada . Under the Marathon PMPA, Wheaton will purchase 100% of the payable gold production until 150,000 ounces have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces have been delivered, thereafter dropping to 15% for the life of mine. Under the terms of the agreement, the Company has committed to pay Gen Mining total upfront cash consideration of C$240 million , C$40 million of which will be paid prior to construction and to be used for the development of the Marathon Project, with the remainder payable in four staged installments during construction, subject to various customary conditions being satisfied and pre-determined completion tests. Of this amount, $16 million ( C$20 million ) was paid on March 31, 2022 . In addition, Wheaton will make ongoing production payments for the gold and platinum ounces delivered equal to 18% of the spot prices until the value of gold and platinum delivered, net of the production payment, is equal to the upfront consideration of C$240 million , at which point the production payment will increase to 22% of the spot prices.

 

   Goose PMPA : On February 8, 2022 , the Company announced that it had entered into a PMPA with Sabina Gold & Silver Corp. ("Sabina") in respect of the Goose Project, part of Sabina's Back River Gold District located in Nunavut, Canada . Under the Goose PMPA, Wheaton will purchase 4.15% of the payable gold production until 130,000 ounces have been delivered, thereafter dropping to 2.15% until 200,000 ounces have been delivered, thereafter dropping to 1.5% of the payable gold production. Under the terms of the agreement, the Company has committed to pay Sabina an upfront payment of $125 million in four equal installments during construction of the Goose Project, subject to customary conditions. In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot gold price until the value of gold, net of the production payment is equal to the upfront consideration of $125 million , at which point the production payment will increase to 22% of the spot gold price.

 

   Amendment to the Marmato PMPA:   On March 21, 2022 , the Company amended its PMPA with Aris Gold Corporation ("Aris Gold") in respect of the Marmato mines. Under the amended terms, Wheaton will purchase 10.5% of the gold production and 100% of the silver production from the Marmato Upper and Lower mines until 310,000 ounces of gold and 2.15 million ounces of silver have been delivered, after which the stream drops to 5.25% of the gold production and 50% of the silver production for the life of mine. This increases the gold stream from the original Marmato PMPA under which Wheaton was entitled to purchase 6.5% of the gold production until 190,000 ounces were delivered, after which the stream was to drop to 3.25% of the gold production. The silver stream is unchanged. Under the terms of the amended Marmato PMPA, the Company is committed to pay Aris Gold total upfront cash payments of $175 million ( $65 million relating to the increase in the gold stream). Of this amount, $53 million ( $15 million relating to the increase in the gold stream) has been paid and the remaining amount is payable during the construction of the Marmato Lower Mine, subject to customary conditions.

 

  Sustainability  

 

   Climate Change Commitments:   On February 9, 2022 , Wheaton announced the adoption of a Climate Change and Environmental Policy and commitment to net zero carbon emissions by 2050[4]. As part of this policy, Wheaton plans to establish targets across both Scope 2 and Scope 3 attributable emissions to support a 1.5° C trajectory. The Company has also committed an initial $4M to support our mining partners' efforts to move to renewable energy sources and reduce emissions at the mines in which we have an interest.

 

   San Dimas Receives Recognition for Sustainability Efforts:   The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic Silver Corp.'s ("First Majestic") San Dimas mining unit the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This distinction from within the Mexican community recognizes excellence in environmental and social responsibility and ethical management.

 

   Partner Community Investment 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 first quarter of 2022, all Partner Community Investment programs continued to operate as planned such as the continued enrollment of existing schoolteachers and administrators into the Enseña Peru training program, aimed at improving the academic performance for students living close to the Antamina mine.  During the quarter, the Wheaton team focused on engaging with partners on identifying and selecting programs and initiatives to be supported by Wheaton for 2022 and beyond.

 

  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 2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000 to 48,000 GEOs 2 of other metals, resulting in production of approximately 700,000 to 760,000 GEOs 2 , unchanged from previous guidance. For the five-year period ending in 2026, the Company estimates that average production will amount to 850,000 GEOs 2 , while for the ten-year period ending in 2031, the Company estimates that average annual production will amount to 910,000 GEOs 2 , also unchanged from previous guidance.

 

  Webcast and Conference Call Details  

 

A conference call and webcast will be held on Friday, May 6, 2022 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:                                                     78834538
Live 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 May 13, 2022 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:                                                      834538 #
Archived 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 have 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.

 

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. Details of the dividend can be found in the Wheaton's news release date May 5, 2022, titled "Wheaton Precious Metals Declares Quarterly Dividend."  

 
 

    2 Commodity price assumptions for the gold equivalent production and sales in 2022 are $1,800 / ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other metal includes palladium and cobalt.  

 
 

   3   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.  

 
 

    4 Net zero includes emissions reductions in line with a 1.5 trajectory across Scopes 1, 2 and 3. Achievement of net zero may include the use of offsets for residual emissions in 2050.  

 
 
 

 

 

Condensed Interim Consolidated Statements of Earnings  

 
 
                                                                                                                                     
 
 
 

  Three Months Ended
March 31
 

 
 

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

 
 
 

   2022   

 
 

  2021  

 
 

  Sales  

 
 
 

  $  

 
 

  307,244  

 
 

  $  

 
 

  324,119  

 
 

  Cost of sales  

 
 
 
 
 
 
 

  Cost of sales, excluding depletion  

 
 
 

  $  

 
 

  69,994  

 
 

  $  

 
 

  78,783  

 
 

  Depletion  

 
 
 
 

  57,402  

 
 
 

  70,173  

 
 

  Total cost of sales  

 
 
 

  $  

 
 

  127,396  

 
 

  $  

 
 

  148,956  

 
 

  Gross margin  

 
 
 

  $  

 
 

  179,848  

 
 

  $  

 
 

  175,163  

 
 

  General and administrative expenses  

 
 
 
 

  9,403  

 
 
 

  9,735  

 
 

  Share based compensation  

 
 
 
 

  9,902  

 
 
 

  1,630  

 
 

  Donations & community investments  

 
 
 
 

  813  

 
 
 

  606  

 
 

  Earnings from operations  

 
 
 

  $  

 
 

  159,730  

 
 

  $  

 
 

  163,192  

 
 

  Other (income) expense  

 
 
 
 

  170  

 
 
 

  119  

 
 

  Earnings before finance costs and income taxes  

 
 
 

  $  

 
 

  159,560  

 
 

  $  

 
 

  163,073  

 
 

  Finance costs  

 
 
 
 

  1,422  

 
 
 

  1,573  

 
 

  Earnings before income taxes  

 
 
 

  $  

 
 

  158,138  

 
 

  $  

 
 

  161,500  

 
 

  Income tax (expense) recovery  

 
 
 
 

  (671)  

 
 
 

  502  

 
 

  Net earnings  

 
 
 

  $  

 
 

  157,467  

 
 

  $  

 
 

  162,002  

 
 

  Basic earnings per share  

 
 
 

  $  

 
 

  0.349  

 
 

  $  

 
 

  0.360  

 
 

  Diluted earnings per share  

 
 
 

  $  

 
 

  0.348  

 
 

  $  

 
 

  0.360  

 
 

  Weighted average number of shares outstanding  

 
 
 
 
 
 
 

  Basic  

 
 
 
 

  450,915  

 
 
 

  449,509  

 
 

  Diluted  

 
 
 
 

  451,953  

 
 
 

  450,600  

 
 
 

 

 

Condensed Interim Consolidated Balance Sheets  

 
 
                                                                                                                                                                                               
 
 

   As at
March 31
 
 

 
 

  As at
December 31
 

 
 

  (US dollars in thousands - unaudited)  

 
 

   2022   

 
 

  2021  

 
 

   Assets   

 
 
 
 
 
 

  Current assets  

 
 
 
 
 
 

  Cash and cash equivalents  

 
 

  $  

 
 

  376,163  

 
 

  $  

 
 

  226,045  

 
 

  Accounts receivable  

 
 
 

  27,939  

 
 
 

  11,577  

 
 

  Other  

 
 
 

  9,875  

 
 
 

  12,102  

 
 

  Total current assets  

 
 

  $  

 
 

  413,977  

 
 

  $  

 
 

  249,724  

 
 

  Non-current assets  

 
 
 
 
 
 

  Mineral stream interests  

 
 

  $  

 
 

  5,894,884  

 
 

  $  

 
 

  5,905,797  

 
 

  Early deposit mineral stream interests  

 
 
 

  45,342  

 
 
 

  34,741  

 
 

  Mineral royalty interest  

 
 
 

  6,606  

 
 
 

  6,606  

 
 

  Long-term equity investments  

 
 
 

  92,194  

 
 
 

  61,477  

 
 

  Convertible notes receivable  

 
 
 

  -  

 
 
 

  17,086  

 
 

  Property, plant and equipment  

 
 
 

  5,183  

 
 
 

  5,509  

 
 

  Other  

 
 
 

  11,847  

 
 
 

  15,211  

 
 

  Total non-current assets  

 
 

  $  

 
 

  6,056,056  

 
 

  $  

 
 

  6,046,427  

 
 

  Total assets  

 
 

  $  

 
 

  6,470,033  

 
 

  $  

 
 

  6,296,151  

 
 

   Liabilities   

 
 
 
 
 
 

  Current liabilities  

 
 
 
 
 
 

  Accounts payable and accrued liabilities  

 
 

  $  

 
 

  11,861  

 
 

  $  

 
 

  13,935  

 
 

  Dividends payable  

 
 
 

  67,687  

 
 
 

  -  

 
 

  Current portion of performance share units  

 
 
 

  31,413  

 
 
 

  14,807  

 
 

  Current portion of lease liabilities  

 
 
 

  830  

 
 
 

  813  

 
 

  Other  

 
 
 

  150  

 
 
 

  136  

 
 

  Total current liabilities  

 
 

  $  

 
 

  111,941  

 
 

  $  

 
 

  29,691  

 
 

  Non-current liabilities  

 
 
 
 
 
 

  Lease liabilities  

 
 
 

  1,868  

 
 
 

  2,060  

 
 

  Deferred income taxes  

 
 
 

  121  

 
 
 

  100  

 
 

  Performance share units  

 
 
 

  3,759  

 
 
 

  11,498  

 
 

  Pension liability  

 
 
 

  2,883  

 
 
 

  2,685  

 
 

  Total non-current liabilities  

 
 

  $  

 
 

  8,631  

 
 

  $  

 
 

  16,343  

 
 

  Total liabilities  

 
 

  $  

 
 

  120,572  

 
 

  $  

 
 

  46,034  

 
 

   Shareholders' equity   

 
 
 
 
 
 

  Issued capital  

 
 

  $  

 
 

  3,711,294  

 
 

  $  

 
 

  3,698,998  

 
 

  Reserves  

 
 
 

  44,304  

 
 
 

  47,036  

 
 

  Retained earnings  

 
 
 

  2,593,863  

 
 
 

  2,504,083  

 
 

  Total shareholders' equity  

 
 

  $  

 
 

  6,349,461  

 
 

  $  

 
 

  6,250,117  

 
 

  Total liabilities and shareholders' equity  

 
 

  $  

 
 

  6,470,033  

 
 

  $  

 
 

  6,296,151  

 
 
 

 

 

Condensed Interim Consolidated Statements of Cash Flows  

 
 
                                                                                                                                                                                                                                     
 
 
 

  Three Months Ended
March 31
 

 
 

  (US dollars in thousands - unaudited)  

 
 
 

   2022   

 
 

  2021  

 
 

   Operating activities   

 
 
 
 
 
 
 

  Net earnings  

 
 
 

  $  

 
 

  157,467  

 
 

  $  

 
 

  162,002  

 
 

  Adjustments for  

 
 
 
 
 
 
 

  Depreciation and depletion  

 
 
 
 

  57,795  

 
 
 

  70,649  

 
 

  Interest expense  

 
 
 
 

  26  

 
 
 

  262  

 
 

  Equity settled stock based compensation  

 
 
 
 

  1,342  

 
 
 

  1,325  

 
 

  Performance share units  

 
 
 
 

  8,560  

 
 
 

  305  

 
 

  Pension expense  

 
 
 
 

  158  

 
 
 

  151  

 
 

  Income tax expense (recovery)  

 
 
 
 

  671  

 
 
 

  (502)  

 
 

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

 
 
 
 

  743  

 
 
 

  950  

 
 

  Fair value (gain) loss on convertible note receivable  

 
 
 
 

  1,380  

 
 
 

  (1,238)  

 
 

  Investment income recognized in net earnings  

 
 
 
 

  (194)  

 
 
 

  (2)  

 
 

  Other  

 
 
 
 

  (1,514)  

 
 
 

  593  

 
 

  Change in non-cash working capital  

 
 
 
 

  (15,918)  

 
 
 

  (1,972)  

 
 

  Cash generated from operations before income taxes and interest  

 
 
 

  $  

 
 

  210,516  

 
 

  $  

 
 

  232,523  

 
 

  Income taxes recovered (paid)  

 
 
 
 

  (32)  

 
 
 

  (30)  

 
 

  Interest paid  

 
 
 
 

  (26)  

 
 
 

  (341)  

 
 

  Interest received  

 
 
 
 

  82  

 
 
 

  2  

 
 

  Cash generated from operating activities  

 
 
 

  $  

 
 

  210,540  

 
 

  $  

 
 

  232,154  

 
 

   Financing activities   

 
 
 
 
 
 
 

  Bank debt repaid  

 
 
 

  $  

 
 

  -  

 
 

  $  

 
 

  (195,000)  

 
 

  Share purchase options exercised  

 
 
 
 

  5,772  

 
 
 

  4,793  

 
 

  Lease payments  

 
 
 
 

  (200)  

 
 
 

  (214)  

 
 

  Cash (used for) generated from financing activities  

 
 
 

  $  

 
 

  5,572  

 
 

  $  

 
 

  (190,421)  

 
 

   Investing activities   

 
 
 
 
 
 
 

  Mineral stream interests  

 
 
 

  $  

 
 

  (45,252)  

 
 

  $  

 
 

  (151,019)  

 
 

  Early deposit mineral stream interests  

 
 
 
 

  (750)  

 
 
 

  (750)  

 
 

  Mineral royalty interest  

 
 
 
 

  -  

 
 
 

  (3,561)  

 
 

  Acquisition of long-term investments  

 
 
 
 

  (20,135)  

 
 
 

  -  

 
 

  Proceeds on disposal of long-term investments  

 
 
 
 

  -  

 
 
 

  112,188  

 
 

  Dividends received  

 
 
 
 

  112  

 
 
 

  -  

 
 

  Other  

 
 
 
 

  (36)  

 
 
 

  (134)  

 
 

  Cash (used for) generated from investing activities  

 
 
 

  $  

 
 

  (66,061)  

 
 

  $  

 
 

  (43,276)  

 
 

  Effect of exchange rate changes on cash and cash equivalents  

 
 
 

  $  

 
 

  67  

 
 

  $  

 
 

  22  

 
 

  Increase (decrease) in cash and cash equivalents  

 
 
 

  $  

 
 

  150,118  

 
 

  $  

 
 

  (1,521)  

 
 

  Cash and cash equivalents, beginning of period  

 
 
 
 

  226,045  

 
 
 

  192,683  

 
 

  Cash and cash equivalents, end of period  

 
 
 

  $  

 
 

  376,163  

 
 

  $  

 
 

  191,162  

 
 
 

 

 

  Summary of Units Produced  

 
 
                                                                                                                                                                                                                                                                                                                                                                                                   
 
 

  Q1 2022  

 
 

  Q4 2021  

 
 

  Q3 2021  

 
 

  Q2 2021  

 
 

  Q1 2021  

 
 

  Q4 2020  

 
 

  Q3 2020  

 
 

  Q2 2020  

 
 

  Gold ounces produced ²  

 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  44,883  

 
 

  48,235  

 
 

  55,205  

 
 

  55,590  

 
 

  46,622  

 
 

  62,854  

 
 

  63,408  

 
 

  59,104  

 
 

  Sudbury 3  

 
 

  6,395  

 
 

  4,379  

 
 

  148  

 
 

  4,563  

 
 

  7,004  

 
 

  6,659  

 
 

  3,798  

 
 

  9,257  

 
 

  Constancia 7  

 
 

  6,311  

 
 

  9,857  

 
 

  8,533  

 
 

  5,525  

 
 

  2,453  

 
 

  3,929  

 
 

  3,780  

 
 

  3,470  

 
 

  San Dimas 4, 7  

 
 

  10,461  

 
 

  13,714  

 
 

  11,936  

 
 

  11,478  

 
 

  10,491  

 
 

  11,652  

 
 

  9,228  

 
 

  6,074  

 
 

  Stillwater 5  

 
 

  2,497  

 
 

  2,664  

 
 

  2,949  

 
 

  2,962  

 
 

  3,041  

 
 

  3,290  

 
 

  3,176  

 
 

  3,222  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 

  Minto  

 
 

  4,060  

 
 

  3,506  

 
 

  1,703  

 
 

  3,206  

 
 

  2,638  

 
 

  789  

 
 

  1,832  

 
 

  2,928  

 
 

  777 8  

 
 

  4,003  

 
 

  4,462  

 
 

  4,717  

 
 

  5,035  

 
 

  6,280  

 
 

  2,866  

 
 

  5,278  

 
 

  4,728  

 
 

  Marmato  

 
 

  477  

 
 

  479  

 
 

  433  

 
 

  1,713  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Total Other  

 
 

  8,540  

 
 

  8,447  

 
 

  6,853  

 
 

  9,954  

 
 

  8,918  

 
 

  3,655  

 
 

  7,110  

 
 

  7,656  

 
 

  Total gold ounces produced  

 
 

  79,087  

 
 

  87,296  

 
 

  85,624  

 
 

  90,072  

 
 

  78,529  

 
 

  92,039  

 
 

  90,500  

 
 

  88,783  

 
 

  Silver ounces produced 2  

 
 
 
 
 
 
 
 
 
 

  Peñasquito 7  

 
 

  2,219  

 
 

  2,145  

 
 

  2,180  

 
 

  2,026  

 
 

  2,202  

 
 

  2,014  

 
 

  1,992  

 
 

  967  

 
 

  Antamina 7  

 
 

  1,260  

 
 

  1,366  

 
 

  1,548  

 
 

  1,558  

 
 

  1,577  

 
 

  1,930  

 
 

  1,516  

 
 

  612  

 
 

  Constancia 7  

 
 

  506  

 
 

  578  

 
 

  521  

 
 

  468  

 
 

  406  

 
 

  478  

 
 

  430  

 
 

  254  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 

  Los Filos 7  

 
 

  23  

 
 

  37  

 
 

  17  

 
 

  26  

 
 

  31  

 
 

  6  

 
 

  17  

 
 

  14  

 
 

  Zinkgruvan  

 
 

  577  

 
 

  482  

 
 

  658  

 
 

  457  

 
 

  420  

 
 

  515  

 
 

  498  

 
 

  389  

 
 

  Yauliyacu 7  

 
 

  637  

 
 

  382  

 
 

  372  

 
 

  629  

 
 

  737  

 
 

  454  

 
 

  679  

 
 

  273  

 
 

  Stratoni 9  

 
 

  -  

 
 

  129  

 
 

  18  

 
 

  164  

 
 

  165  

 
 

  185  

 
 

  156  

 
 

  148  

 
 

  Minto  

 
 

  45  

 
 

  44  

 
 

  25  

 
 

  33  

 
 

  21  

 
 

  16  

 
 

  15  

 
 

  19  

 
 

  Neves-Corvo  

 
 

  344  

 
 

  522  

 
 

  362  

 
 

  408  

 
 

  345  

 
 

  420  

 
 

  281  

 
 

  479  

 
 

  Aljustrel  

 
 

  287  

 
 

  325  

 
 

  314  

 
 

  400  

 
 

  474  

 
 

  440  

 
 

  348  

 
 

  388  

 
 

  Cozamin  

 
 

  186  

 
 

  213  

 
 

  199  

 
 

  183  

 
 

  230  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Marmato  

 
 

  11  

 
 

  7  

 
 

  10  

 
 

  39  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Keno Hill  

 
 

  20  

 
 

  30  

 
 

  44  

 
 

  55  

 
 

  27  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  777 8  

 
 

  91  

 
 

  96  

 
 

  81  

 
 

  83  

 
 

  130  

 
 

  51  

 
 

  96  

 
 

  108  

 
 

  Total Other  

 
 

  2,221  

 
 

  2,267  

 
 

  2,100  

 
 

  2,477  

 
 

  2,580  

 
 

  2,087  

 
 

  2,090  

 
 

  1,818  

 
 

  Total silver ounces produced  

 
 

  6,206  

 
 

  6,356  

 
 

  6,349  

 
 

  6,529  

 
 

  6,765  

 
 

  6,509  

 
 

  6,028  

 
 

  3,651  

 
 

  Palladium ounces produced ²  

 
 
 
 
 
 
 
 
 
 

  Stillwater 5  

 
 

  4,488  

 
 

  4,733  

 
 

  5,105  

 
 

  5,301  

 
 

  5,769  

 
 

  5,672  

 
 

  5,444  

 
 

  5,759  

 
 

  Cobalt pounds produced ²  

 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  234  

 
 

  381  

 
 

  370  

 
 

  380  

 
 

  1,162 ¹⁰  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEOs produced 6  

 
 

  171,367  

 
 

  184,551  

 
 

  183,012  

 
 

  190,272  

 
 

  196,756  

 
 

  185,436  

 
 

  177,230  

 
 

  144,188  

 
 

  SEOs produced 6  

 
 

  12,853  

 
 

  13,841  

 
 

  13,726  

 
 

  14,270  

 
 

  14,757  

 
 

  13,908  

 
 

  13,292  

 
 

  10,814  

 
 

  Average payable rate 2  

 
 
 
 
 
 
 
 
 
 

  Gold  

 
 

  95.2%  

 
 

  96.0%  

 
 

  96.0%  

 
 

  95.8%  

 
 

  95.0%  

 
 

  95.2%  

 
 

  95.3%  

 
 

  94.7%  

 
 

  Silver  

 
 

  86.1%  

 
 

  86.0%  

 
 

  86.6%  

 
 

  86.9%  

 
 

  86.6%  

 
 

  86.3%  

 
 

  86.1%  

 
 

  81.9%  

 
 

  Palladium  

 
 

  92.7%  

 
 

  92.2%  

 
 

  94.5%  

 
 

  95.0%  

 
 

  91.6%  

 
 

  93.6%  

 
 

  94.0%  

 
 

  90.8%  

 
 

  Cobalt  

 
 

  93.3%  

 
 

  93.3%  

 
 

  93.3%  

 
 

  93.3%  

 
 

  93.3%  

 
 

  n.a.  

 
 

  n.a.  

 
 

  n.a.  

 
 

  GEO 6  

 
 

  90.6%  

 
 

  91.4%  

 
 

  91.3%  

 
 

  91.8%  

 
 

  90.7%  

 
 

  91.2%  

 
 

  91.2%  

 
 

  90.0%  

 
 
 
 
                    
 

  1)  

 
 

  All figures in thousands except gold and palladium ounces produced.  

 
 

  2)  

 
 

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

 
 

  3)  

 
 

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

 
 

  4)  

 
 

  Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces; Q2-2020 - 276,000 ounces.  

 
 

  5)  

 
 

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

 
 

  6)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.  

 
 

  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. 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.  

 
 

  8)  

 
 

  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.  

 
 

  9)  

 
 

  The Stratoni mine was placed into care and maintenance during Q4-2021.  

 
 

  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  

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                              
 
 

  Q1 2022  

 
 

  Q4 2021  

 
 

  Q3 2021  

 
 

  Q2 2021  

 
 

  Q1 2021  

 
 

  Q4 2020  

 
 

  Q3 2020  

 
 

  Q2 2020  

 
 

  Gold ounces sold  

 
 
 
 
 
 
 
 
 
 

  Salobo  

 
 

  42,513  

 
 

  47,171  

 
 

  35,185  

 
 

  57,296  

 
 

  51,423  

 
 

  53,197  

 
 

  59,584  

 
 

  68,487  

 
 

  Sudbury 2  

 
 

  3,712  

 
 

  965  

 
 

  1,915  

 
 

  6,945  

 
 

  3,691  

 
 

  7,620  

 
 

  7,858  

 
 

  7,414  

 
 

  Constancia 6  

 
 

  10,494  

 
 

  6,196  

 
 

  8,159  

 
 

  2,321  

 
 

  1,676  

 
 

  3,853  

 
 

  4,112  

 
 

  3,024  

 
 

  San Dimas 6  

 
 

  10,070  

 
 

  15,182  

 
 

  11,346  

 
 

  11,214  

 
 

  10,273  

 
 

  11,529  

 
 

  9,687  

 
 

  6,030  

 
 

  Stillwater 3  

 
 

  2,628  

 
 

  2,933  

 
 

  2,820  

 
 

  2,574  

 
 

  3,074  

 
 

  3,069  

 
 

  3,015  

 
 

  3,066  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 

  Minto  

 
 

  3,695  

 
 

  2,462  

 
 

  1,907  

 
 

  2,359  

 
 

  2,390  

 
 

  1,540  

 
 

  -  

 
 

  -  

 
 

  777  

 
 

  4,388  

 
 

  4,290  

 
 

  5,879  

 
 

  5,694  

 
 

  2,577  

 
 

  5,435  

 
 

  5,845  

 
 

  4,783  

 
 

  Marmato  

 
 

  401  

 
 

  423  

 
 

  438  

 
 

  1,687  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Total Other  

 
 

  8,484  

 
 

  7,175  

 
 

  8,224  

 
 

  9,740  

 
 

  4,967  

 
 

  6,975  

 
 

  5,845  

 
 

  4,783  

 
 

  Total gold ounces sold  

 
 

  77,901  

 
 

  79,622  

 
 

  67,649  

 
 

  90,090  

 
 

  75,104  

 
 

  86,243  

 
 

  90,101  

 
 

  92,804  

 
 

  Silver ounces sold  

 
 
 
 
 
 
 
 
 
 

  Peñasquito 6  

 
 

  2,188  

 
 

  1,818  

 
 

  2,210  

 
 

  1,844  

 
 

  2,174  

 
 

  1,417  

 
 

  1,799  

 
 

  1,917  

 
 

  Antamina 6  

 
 

  1,468  

 
 

  1,297  

 
 

  1,502  

 
 

  1,499  

 
 

  1,930  

 
 

  1,669  

 
 

  1,090  

 
 

  788  

 
 

  Constancia 6  

 
 

  644  

 
 

  351  

 
 

  484  

 
 

  295  

 
 

  346  

 
 

  442  

 
 

  415  

 
 

  254  

 
 

  Other  

 
 
 
 
 
 
 
 
 
 

  Los Filos 6  

 
 

  42  

 
 

  17  

 
 

  12  

 
 

  42  

 
 

  27  

 
 

  -  

 
 

  19  

 
 

  25  

 
 

  Zinkgruvan  

 
 

  355  

 
 

  346  

 
 

  354  

 
 

  355  

 
 

  293  

 
 

  326  

 
 

  492  

 
 

  376  

 
 

  Yauliyacu 6  

 
 

  44  

 
 

  551  

 
 

  182  

 
 

  601  

 
 

  1,014  

 
 

  15  

 
 

  580  

 
 

  704  

 
 

  Stratoni  

 
 

  133  

 
 

  42  

 
 

  41  

 
 

  167  

 
 

  117  

 
 

  169  

 
 

  134  

 
 

  77  

 
 

  Minto  

 
 

  31  

 
 

  27  

 
 

  24  

 
 

  29  

 
 

  26  

 
 

  20  

 
 

  -  

 
 

  -  

 
 

  Neves-Corvo  

 
 

  204  

 
 

  259  

 
 

  193  

 
 

  215  

 
 

  239  

 
 

  145  

 
 

  201  

 
 

  236  

 
 

  Aljustrel  

 
 

  145  

 
 

  133  

 
 

  155  

 
 

  208  

 
 

  257  

 
 

  280  

 
 

  148  

 
 

  252  

 
 

  Cozamin  

 
 

  177  

 
 

  174  

 
 

  170  

 
 

  168  

 
 

  173  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Marmato  

 
 

  8  

 
 

  8  

 
 

  10  

 
 

  35  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  Keno Hill  

 
 

  27  

 
 

  24  

 
 

  51  

 
 

  33  

 
 

  12  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  777  

 
 

  87  

 
 

  69  

 
 

  99  

 
 

  109  

 
 

  49  

 
 

  93  

 
 

  121  

 
 

  100  

 
 

  Total Other  

 
 

  1,253  

 
 

  1,650  

 
 

  1,291  

 
 

  1,962  

 
 

  2,207  

 
 

  1,048  

 
 

  1,695  

 
 

  1,770  

 
 

  Total silver ounces sold  

 
 

  5,553  

 
 

  5,116  

 
 

  5,487  

 
 

  5,600  

 
 

  6,657  

 
 

  4,576  

 
 

  4,999  

 
 

  4,729  

 
 

  Palladium ounces sold  

 
 
 
 
 
 
 
 
 
 

  Stillwater 3  

 
 

  4,075  

 
 

  4,641  

 
 

  5,703  

 
 

  3,869  

 
 

  5,131  

 
 

  4,591  

 
 

  5,546  

 
 

  4,976  

 
 

  Cobalt pounds sold  

 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  511  

 
 

  228  

 
 

  131  

 
 

  395  

 
 

  132  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEOs sold 4  

 
 

  166,065  

 
 

  157,439  

 
 

  149,862  

 
 

  176,502  

 
 

  172,271  

 
 

  152,613  

 
 

  163,218  

 
 

  161,664  

 
 

  SEOs sold 4  

 
 

  12,455  

 
 

  11,808  

 
 

  11,240  

 
 

  13,238  

 
 

  12,920  

 
 

  11,446  

 
 

  12,241  

 
 

  12,125  

 
 

  Cumulative payable units PBND 5  

 
 
 
 
 
 
 
 
 
 

  Gold ounces  

 
 

  82,350  

 
 

  84,989  

 
 

  80,819  

 
 

  66,238  

 
 

  70,072  

 
 

  70,555  

 
 

  75,750  

 
 

  79,632  

 
 

  Silver ounces  

 
 

  3,893  

 
 

  4,200  

 
 

  3,845  

 
 

  3,802  

 
 

  3,738  

 
 

  4,486  

 
 

  3,437  

 
 

  3,222  

 
 

  Palladium ounces  

 
 

  5,535  

 
 

  5,629  

 
 

  5,619  

 
 

  6,822  

 
 

  5,373  

 
 

  5,597  

 
 

  4,616  

 
 

  4,883  

 
 

  Cobalt pounds  

 
 

  550  

 
 

  596  

 
 

  637  

 
 

  777  

 
 

  820  

 
 

  -  

 
 

  -  

 
 

  -  

 
 

  GEO 4  

 
 

  150,794  

 
 

  158,477  

 
 

  150,317  

 
 

  139,145  

 
 

  141,206  

 
 

  136,894  

 
 

  126,968  

 
 

  128,291  

 
 

  SEO 4  

 
 

  11,310  

 
 

  11,886  

 
 

  11,274  

 
 

  10,436  

 
 

  10,590  

 
 

  10,267  

 
 

  9,523  

 
 

  9,622  

 
 

  Inventory on hand  

 
 
 
 
 
 
 
 
 
 

  Cobalt pounds  

 
 

  410  

 
 

  657  

 
 

  488  

 
 

  134  

 
 

  132  

 
 

  -  

 
 

  -  

 
 

  -  

 
 
 
 
            
 

  1)  

 
 

  All figures in thousands except gold and palladium ounces sold.  

 
 

  2)  

 
 

  Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.  

 
 

  3)  

 
 

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

 
 

  4)  

 
 

  GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.  

 
 

  5)  

 
 

  Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered ("PBND") are based on management estimates. These figures may be updated in future periods as additional information is received.  

 
 

  6)  

 
 

  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 March 31, 2022  

 
 
 

  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  

 
 

  44,883  

 
 

  42,513  

 
 

  $  

 
 

  1,872  

 
 

  $  

 
 

  416  

 
 

  $  

 
 

  334  

 
 

  $  

 
 

  79,564  

 
 

  $  

 
 

  47,684  

 
 

  $  

 
 

  61,869  

 
 

  $  

 
 

  2,423,755  

 
 

  Sudbury 4  

 
 

  6,395  

 
 

  3,712  

 
 
 

  1,861  

 
 
 

  400  

 
 
 

  1,092  

 
 
 

  6,909  

 
 
 

  1,370  

 
 
 

  5,425  

 
 
 

  303,115  

 
 

  Constancia  

 
 

  6,311  

 
 

  10,494  

 
 
 

  1,872  

 
 
 

  412  

 
 
 

  271  

 
 
 

  19,641  

 
 
 

  12,471  

 
 
 

  15,482  

 
 
 

  100,944  

 
 

  San Dimas  

 
 

  10,461  

 
 

  10,070  

 
 
 

  1,872  

 
 
 

  618  

 
 
 

  260  

 
 
 

  18,846  

 
 
 

  10,008  

 
 
 

  12,621  

 
 
 

  164,110  

 
 

  Stillwater  

 
 

  2,497  

 
 

  2,628  

 
 
 

  1,872  

 
 
 

  329  

 
 
 

  429  

 
 
 

  4,918  

 
 
 

  2,926  

 
 
 

  4,054  

 
 
 

  218,657  

 
 

  Other 5  

 
 

  8,540  

 
 

  8,484  

 
 
 

  1,862  

 
 
 

  771  

 
 
 

  25  

 
 
 

  15,797  

 
 
 

  9,048  

 
 
 

  8,822  

 
 
 

  404,729  

 
 
 

  79,087  

 
 

  77,901  

 
 

  $  

 
 

  1,870  

 
 

  $  

 
 

  477  

 
 

  $  

 
 

  321  

 
 

  $  

 
 

  145,675  

 
 

  $  

 
 

  83,507  

 
 

  $  

 
 

  108,273  

 
 

  $  

 
 

  3,615,310  

 
 

   Silver   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Peñasquito  

 
 

  2,219  

 
 

  2,188  

 
 

  $  

 
 

  24.10  

 
 

  $  

 
 

  4.36  

 
 

  $  

 
 

  3.57  

 
 

  $  

 
 

  52,727  

 
 

  $  

 
 

  35,387  

 
 

  $  

 
 

  43,188  

 
 

  $  

 
 

  314,217  

 
 

  Antamina  

 
 

  1,260  

 
 

  1,468  

 
 
 

  24.09  

 
 
 

  4.94  

 
 
 

  7.06  

 
 
 

  35,359  

 
 
 

  17,747  

 
 
 

  27,759  

 
 
 

  569,691  

 
 

  Constancia  

 
 

  506  

 
 

  644  

 
 
 

  24.10  

 
 
 

  6.08  

 
 
 

  6.33  

 
 
 

  15,513  

 
 
 

  7,526  

 
 
 

  11,913  

 
 
 

  201,811  

 
 

  Other 6  

 
 

  2,221  

 
 

  1,253  

 
 
 

  24.52  

 
 
 

  6.07  

 
 
 

  3.45  

 
 
 

  30,733  

 
 
 

  18,797  

 
 
 

  23,874  

 
 
 

  589,875  

 
 
 

  6,206  

 
 

  5,553  

 
 

  $  

 
 

  24.19  

 
 

  $  

 
 

  5.10  

 
 

  $  

 
 

  4.78  

 
 

  $  

 
 

  134,332  

 
 

  $  

 
 

  79,457  

 
 

  $  

 
 

  106,734  

 
 

  $  

 
 

  1,675,594  

 
 

   Palladium   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Stillwater  

 
 

  4,488  

 
 

  4,075  

 
 

  $  

 
 

  2,339  

 
 

  $  

 
 

  394  

 
 

  $  

 
 

  399  

 
 

  $  

 
 

  9,533  

 
 

  $  

 
 

  6,303  

 
 

  $  

 
 

  7,930  

 
 

  $  

 
 

  231,203  

 
 

   Platinum   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Marathon  

 
 

  -  

 
 

  -  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  n.a.  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  -  

 
 

  $  

 
 

  4,820  

 
 

   Cobalt   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  234  

 
 

  511  

 
 

  $  

 
 

  34.61  

 
 

  $  

 
 

  5.76  

 
 

  $  

 
 

  8.17  

 
 

  $  

 
 

  17,704  

 
 

  $  

 
 

  10,581  

 
 

  $  

 
 

  3,263  

 
 

  $  

 
 

  367,957  

 
 

   Operating results   

 
 
 
 
 
 
 
 
 

  $  

 
 

  307,244  

 
 

  $  

 
 

  179,848  

 
 

  $  

 
 

  226,200  

 
 

  $  

 
 

  5,894,884  

 
 

   Other   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  General and administrative  

 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (9,403)  

 
 

  $  

 
 

  (15,128)  

 
 
 
 

  Share based compensation  

 
 
 
 
 
 
 
 
 
 
 
 

  (9,902)  

 
 
 

  -  

 
 
 
 

  Donations & community investments  

 
 
 
 
 
 
 
 
 
 
 
 

  (813)  

 
 
 

  (430)  

 
 
 
 

  Finance costs  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (1,422)  

 
 
 

  (1,077)  

 
 
 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 
 

  (170)  

 
 
 

  1,007  

 
 
 
 

  Income tax  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (671)  

 
 
 

  (32)  

 
 
 
 

  Total other  

 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (22,381)  

 
 

  $  

 
 

  (15,660)  

 
 

  $  

 
 

  575,149  

 
 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  157,467  

 
 

  $  

 
 

  210,540  

 
 

  $  

 
 

  6,470,033  

 
 
 
 
            
 

  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 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, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests.  

 
 

  6)  

 
 

  Comprised of the 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, Rosemont, Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021.  

 
 
 

On a gold equivalent and silver equivalent basis, results for the Company for the three months ended March 31, 2022 were as follows:

 
 
                         
 

  Three Months Ended March 31, 2022  

 
 
 

  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  

 
 

  171,367  

 
 

  166,065  

 
 

  $    1,850  

 
 

  $    421  

 
 

   $    1,429   

 
 

  $    346  

 
 

   $    1,083   

 
 

  Silver equivalent basis 5  

 
 

  12,853  

 
 

  12,455  

 
 

  $   24.67  

 
 

  $   5.62  

 
 

   $   19.05   

 
 

  $   4.61  

 
 

   $   14.44   

 
 
 
 
          
 

  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; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.  

 
 
 

 

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
 

  Three Months Ended March 31, 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  

 
 

  46,622  

 
 

  51,423  

 
 

  $  

 
 

  1,796  

 
 

  $  

 
 

  412  

 
 

  $  

 
 

  374  

 
 

  $  

 
 

  92,356  

 
 

  $  

 
 

  51,946  

 
 

  $  

 
 

  71,163  

 
 

  $  

 
 

  2,490,127  

 
 

  Sudbury 4  

 
 

  7,004  

 
 

  3,691  

 
 
 

  1,812  

 
 
 

  400  

 
 
 

  1,024  

 
 
 

  6,688  

 
 
 

  1,431  

 
 
 

  5,219  

 
 
 

  317,235  

 
 

  Constancia  

 
 

  2,453  

 
 

  1,676  

 
 
 

  1,796  

 
 
 

  408  

 
 
 

  315  

 
 
 

  3,010  

 
 
 

  1,798  

 
 
 

  2,326  

 
 
 

  105,041  

 
 

  San Dimas  

 
 

  10,491  

 
 

  10,273  

 
 
 

  1,796  

 
 
 

  612  

 
 
 

  322  

 
 
 

  18,450  

 
 
 

  8,851  

 
 
 

  12,162  

 
 
 

  178,891  

 
 

  Stillwater  

 
 

  3,041  

 
 

  3,074  

 
 
 

  1,796  

 
 
 

  329  

 
 
 

  397  

 
 
 

  5,521  

 
 
 

  3,290  

 
 
 

  4,510  

 
 
 

  223,090  

 
 

  Other 5  

 
 

  8,918  

 
 

  4,967  

 
 
 

  1,812  

 
 
 

  629  

 
 
 

  -  

 
 
 

  9,000  

 
 
 

  5,878  

 
 
 

  5,855  

 
 
 

  7,591  

 
 
 

  78,529  

 
 

  75,104  

 
 

  $  

 
 

  1,798  

 
 

  $  

 
 

  450  

 
 

  $  

 
 

  374  

 
 

  $  

 
 

  135,025  

 
 

  $  

 
 

  73,194  

 
 

  $  

 
 

  101,235  

 
 

  $  

 
 

  3,321,975  

 
 

   Silver   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Peñasquito  

 
 

  2,202  

 
 

  2,174  

 
 

  $  

 
 

  26.21  

 
 

  $  

 
 

  4.29  

 
 

  $  

 
 

  3.55  

 
 

  $  

 
 

  56,983  

 
 

  $  

 
 

  39,940  

 
 

  $  

 
 

  47,655  

 
 

  $  

 
 

  342,857  

 
 

  Antamina  

 
 

  1,577  

 
 

  1,930  

 
 
 

  26.21  

 
 
 

  5.18  

 
 
 

  7.53  

 
 
 

  50,581  

 
 
 

  26,058  

 
 
 

  40,591  

 
 
 

  612,401  

 
 

  Constancia  

 
 

  406  

 
 

  346  

 
 
 

  26.21  

 
 
 

  6.02  

 
 
 

  7.56  

 
 
 

  9,072  

 
 
 

  4,372  

 
 
 

  6,988  

 
 
 

  214,428  

 
 

  Other 6  

 
 

  2,580  

 
 

  2,207  

 
 
 

  25.95  

 
 
 

  9.41  

 
 
 

  6.30  

 
 
 

  57,247  

 
 
 

  22,589  

 
 
 

  39,098  

 
 
 

  612,237  

 
 
 

  6,765  

 
 

  6,657  

 
 

  $  

 
 

  26.12  

 
 

  $  

 
 

  6.33  

 
 

  $  

 
 

  5.82  

 
 

  $  

 
 

  173,883  

 
 

  $  

 
 

  92,959  

 
 

  $  

 
 

  134,332  

 
 

  $  

 
 

  1,781,923  

 
 

   Palladium   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Stillwater  

 
 

  5,769  

 
 

  5,131  

 
 

  $  

 
 

  2,392  

 
 

  $  

 
 

  427  

 
 

  $  

 
 

  442  

 
 

  $  

 
 

  12,275  

 
 

  $  

 
 

  7,813  

 
 

  $  

 
 

  10,084  

 
 

  $  

 
 

  239,118  

 
 

   Cobalt   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Voisey's Bay  

 
 

  1,162  

 
 

  132  

 
 

  $  

 
 

  22.19  

 
 

  $  

 
 

  4.98  

 
 

  $  

 
 

  8.17  

 
 

  $  

 
 

  2,936  

 
 

  $  

 
 

  1,197  

 
 

  $  

 
 

  (966)  

 
 

  $  

 
 

  225,348  

 
 

   Operating results   

 
 
 
 
 
 
 
 
 

  $  

 
 

  324,119  

 
 

  $  

 
 

  175,163  

 
 

  $  

 
 

  244,685  

 
 

  $  

 
 

  5,568,364  

 
 

   Other   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  General and administrative  

 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (9,735)  

 
 

  $  

 
 

  (12,664)  

 
 
 
 

  Share based compensation  

 
 
 
 
 
 
 
 
 
 
 
 

  (1,630)  

 
 
 

  -  

 
 
 
 

  Donations & community investments  

 
 
 
 
 
 
 
 
 
 
 
 

  (606)  

 
 
 

  (498)  

 
 
 
 

  Finance costs  

 
 
 
 
 
 
 
 
 
 
 
 
 

  (1,573)  

 
 
 

  (1,229)  

 
 
 
 

  Other  

 
 
 
 
 
 
 
 
 
 
 
 

  (119)  

 
 
 

  1,890  

 
 
 
 

  Income tax  

 
 
 
 
 
 
 
 
 
 
 
 
 

  502  

 
 
 

  (30)  

 
 
 
 

  Total other  

 
 
 
 
 
 
 
 
 
 

  $  

 
 

  (13,161)  

 
 

  $  

 
 

  (12,531)  

 
 

  $  

 
 

  360,048  

 
 
 
 
 
 
 
 
 
 
 
 
 

  $  

 
 

  162,002  

 
 

  $  

 
 

  232,154  

 
 

  $  

 
 

  5,928,412  

 
 
 
 
            
 

  1)  

 
 

  Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands 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, 777 and Marmato 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, Keno Hill, 777, Marmato and Cozamin 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 March 31, 2021 were as follows:

 
 
                         
 

  Three Months Ended March 31, 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  

 
 

  196,756  

 
 

  172,271  

 
 

  $    1,881  

 
 

  $    457  

 
 

   $    1,424   

 
 

  $    407  

 
 

   $    1,017   

 
 

  Silver equivalent basis 5  

 
 

  14,757  

 
 

  12,920  

 
 

  $   25.09  

 
 

  $   6.10  

 
 

   $   18.99   

 
 

  $   5.43  

 
 

   $   13.56   

 
 
 
 
          
 

  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; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2022.  

 
 
 

 

 

  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 (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
March 31
 

 
 

  (in thousands, except for per share amounts)  

 
 
 

   2022   

 
 
 

  2021  

 
 

  Net earnings  

 
 
 

  $  

 
 

  157,467  

 
 
 

  $  

 
 

  162,002  

 
 

  Add back (deduct):  

 
 
 
 
 
 
 
 

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

 
 
 
 

  743  

 
 
 
 

  950  

 
 

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

 
 
 
 

  1,380  

 
 
 
 

  (1,238)  

 
 

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

 
 
 
 

  793  

 
 
 
 

  1,568  

 
 

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

 
 
 
 

  (194)  

 
 
 
 

  (2,137)  

 
 

  Other  

 
 
 
 

  (2,182)  

 
 
 
 

  (13)  

 
 

  Adjusted net earnings  

 
 
 

  $  

 
 

  158,007  

 
 
 

  $  

 
 

  161,132  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Basic weighted average number of shares outstanding  

 
 
 
 

  450,915  

 
 
 
 

  449,509  

 
 

  Diluted weighted average number of shares outstanding  

 
 
 
 

  451,953  

 
 
 
 

  450,600  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Adjusted earnings per share - basic  

 
 
 

  $  

 
 

  0.350  

 
 
 

  $  

 
 

  0.358  

 
 

  Adjusted earnings per share - diluted  

 
 
 

  $  

 
 

  0.350  

 
 
 

  $  

 
 

  0.358  

 
 
 

 

 
 
      
 

  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
March 31
 

 
 

  (in thousands, except for per share amounts)  

 
 
 

   2022   

 
 
 

  2021  

 
 

  Cash generated by operating activities  

 
 
 

  $  

 
 

  210,540  

 
 
 

  $  

 
 

  232,154  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Basic weighted average number of shares outstanding  

 
 
 
 

  450,915  

 
 
 
 

  449,509  

 
 

  Diluted weighted average number of shares outstanding  

 
 
 
 

  451,953  

 
 
 
 

  450,600  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Operating cash flow per share - basic  

 
 
 

  $  

 
 

  0.467  

 
 
 

  $  

 
 

  0.516  

 
 

  Operating cash flow per share - diluted  

 
 
 

  $  

 
 

  0.466  

 
 
 

  $  

 
 

  0.515  

 
 
 

 

 
 
      
 

  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
March 31
 

 
 

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

 
 
 

   2022   

 
 
 

  2021  

 
 

  Cost of sales  

 
 
 

  $  

 
 

  127,396  

 
 
 

  $  

 
 

  148,956  

 
 

  Less:  depletion  

 
 
 
 

  (57,402)  

 
 
 
 

  (70,173)  

 
 

  Cash cost of sales  

 
 
 

  $  

 
 

  69,994  

 
 
 

  $  

 
 

  78,783  

 
 

  Cash cost of sales is comprised of:  

 
 
 
 
 
 
 
 

  Total cash cost of gold sold  

 
 
 

  $  

 
 

  37,133  

 
 
 

  $  

 
 

  33,774  

 
 

  Total cash cost of silver sold  

 
 
 
 

  28,314  

 
 
 
 

  42,160  

 
 

  Total cash cost of palladium sold  

 
 
 
 

  1,603  

 
 
 
 

  2,191  

 
 

  Total cash cost of cobalt sold  

 
 
 
 

  2,944  

 
 
 
 

  658  

 
 

  Total cash cost of sales  

 
 
 

  $  

 
 

  69,994  

 
 
 

  $  

 
 

  78,783  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Total gold ounces sold  

 
 
 
 

  77,901  

 
 
 
 

  75,104  

 
 

  Total silver ounces sold  

 
 
 
 

  5,553  

 
 
 
 

  6,657  

 
 

  Total palladium ounces sold  

 
 
 
 

  4,075  

 
 
 
 

  5,131  

 
 

  Total cobalt pounds sold  

 
 
 
 

  511  

 
 
 
 

  132  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Average cash cost of gold (per ounce)  

 
 
 

  $  

 
 

  477  

 
 
 

  $  

 
 

  450  

 
 

  Average cash cost of silver (per ounce)  

 
 
 

  $  

 
 

  5.10  

 
 
 

  $  

 
 

  6.33  

 
 

  Average cash cost of palladium (per ounce)  

 
 
 

  $  

 
 

  394  

 
 
 

  $  

 
 

  427  

 
 

  Average cash cost of cobalt (per pound)  

 
 
 

  $  

 
 

  5.76  

 
 
 

  $  

 
 

  4.98  

 
 
 

 

 
 
      
 

  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
March 31
 

 
 

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

 
 
 

   2022   

 
 
 

  2021  

 
 

  Total sales:  

 
 
 
 
 
 
 
 

  Gold  

 
 
 

  $  

 
 

  145,675  

 
 
 

  $  

 
 

  135,025  

 
 

  Silver  

 
 
 

  $  

 
 

  134,332  

 
 
 

  $  

 
 

  173,883  

 
 

  Palladium  

 
 
 

  $  

 
 

  9,533  

 
 
 

  $  

 
 

  12,275  

 
 

  Cobalt  

 
 
 

  $  

 
 

  17,704  

 
 
 

  $  

 
 

  2,936  

 
 

  Divided by:  

 
 
 
 
 
 
 
 

  Total gold ounces sold  

 
 
 
 

  77,901  

 
 
 
 

  75,104  

 
 

  Total silver ounces sold  

 
 
 
 

  5,553  

 
 
 
 

  6,657  

 
 

  Total palladium ounces sold  

 
 
 
 

  4,075  

 
 
 
 

  5,131  

 
 

  Total cobalt pounds sold  

 
 
 
 

  511  

 
 
 
 

  132  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Average realized price of gold (per ounce)  

 
 
 

  $  

 
 

  1,870  

 
 
 

  $  

 
 

  1,798  

 
 

  Average realized price of silver (per ounce)  

 
 
 

  $  

 
 

  24.19  

 
 
 

  $  

 
 

  26.12  

 
 

  Average realized price of palladium (per ounce)  

 
 
 

  $  

 
 

  2,339  

 
 
 

  $  

 
 

  2,392  

 
 

  Average realized price of cobalt (per pound)  

 
 
 

  $  

 
 

  34.61  

 
 
 

  $  

 
 

  22.19  

 
 

  Less:  

 
 
 
 
 
 
 
 

  Average cash cost of gold 1 (per ounce)  

 
 
 

  $  

 
 

  (477)  

 
 
 

  $  

 
 

  (450)  

 
 

  Average cash cost of silver 1 (per ounce)  

 
 
 

  $  

 
 

  (5.10)  

 
 
 

  $  

 
 

  (6.33)  

 
 

  Average cash cost of palladium 1 (per ounce)  

 
 
 

  $  

 
 

  (394)  

 
 
 

  $  

 
 

  (427)  

 
 

  Average cash cost of cobalt 1 (per pound)  

 
 
 

  $  

 
 

  (5.76)  

 
 
 

  $  

 
 

  (4.98)  

 
 

  Equals:  

 
 
 
 
 
 
 
 

  Cash operating margin per gold ounce sold  

 
 
 

  $  

 
 

  1,393  

 
 
 

  $  

 
 

  1,348  

 
 

  As a percentage of realized price of gold  

 
 
 
 

  74%  

 
 
 
 

  75%  

 
 

  Cash operating margin per silver ounce sold  

 
 
 

  $  

 
 

  19.09  

 
 
 

  $  

 
 

  19.79  

 
 

  As a percentage of realized price of silver  

 
 
 
 

  79%  

 
 
 
 

  76%  

 
 

  Cash operating margin per palladium ounce sold  

 
 
 

  $  

 
 

  1,945  

 
 
 

  $  

 
 

  1,965  

 
 

  As a percentage of realized price of palladium  

 
 
 
 

  83%  

 
 
 
 

  82%  

 
 

  Cash operating margin per cobalt pound sold  

 
 
 

  $  

 
 

  28.85  

 
 
 

  $  

 
 

  17.21  

 
 

  As a percentage of realized price of cobalt  

 
 
 
 

  83%  

 
 
 
 

  78%  

 
 
 
 
 
 

  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 future price of commodities, 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 payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements, the ability of Wheaton's PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton's PMPA counterparties) and the potential impacts of such on Wheaton, future payments by the Company in accordance with PMPAs, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, future sales of common shares under the ATM program, continued 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, 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 domestic audits for taxation years subsequent to 2016 and international audits, the Company's assessment of the impact of any tax reassessments, the Company's intention to file future tax returns in a manner consistent with the CRA Settlement, the Company's climate change and environmental commitments, and assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "projects", "intends", "anticipates" or "does not anticipate", or "believes", "potential", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the satisfaction of each party's obligations in accordance with the terms of the Company's PMPAs or royalty arrangements, 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, 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 supplies, 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, environmental, social and governance matters, Wheaton and the Mining Operations ability to obtain adequate financing, the Mining Operations ability to complete permitting, construction, development and expansion, global financial conditions, Wheaton's acquisition strategy 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, 2021 and Form 6-K filed March 31, 2022 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): that there will be no material adverse change in the market price of commodities, that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates, that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate, that 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 neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), 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 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-solid-start-to-2022-301541344.html  

 

SOURCE Wheaton Precious Metals Corp.

 
 

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