Wheaton Precious Metals Announces Solid Third Quarter Results for 2023

November 9, 2023

Designated News Release
THIRD QUARTER FINANCIAL RESULTS

VANCOUVER, BC, Nov. 9, 2023 /CNW/ - "The importance of having a diversified portfolio of high-quality, low-cost assets was evidenced by Wheaton's ability to deliver solid operating results in the quarter, despite the temporary suspension of one of our largest assets, which has since begun the safe ramp-up of operations. Strong outperformances from Salobo and Constancia, have not only offset challenges faced by others, but also contributed significantly to our overall success. As such, we are pleased to reiterate our annual production guidance range for 2023 of 600,000 to 660,000 gold equivalent ounces," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "In this high interest rate environment, streaming continues to be one of the most competitive sources of capital, and our corporate development team remains exceptionally busy evaluating new opportunities. We remain resolutely committed to enhancing our portfolio with growth that is accretive and sustainable, benefiting all stakeholders."

Solid Financial Results and Strong Balance Sheet

  • Third quarter of 2023: $223 million in revenue, $171 million in operating cash flow, $116 million in net earnings and $121 million in adjusted net earnings1.
  • A cash balance of $834 million and no debt as at September 30, 2023, after making total upfront cash payments of $90 million relative to mineral stream interests in the quarter.
  • Undrawn $2 billion revolving credit facility maturing on June 22, 2028.
  • Declared a quarterly dividend1 of $0.15 per common share.

High Quality Asset Base

  • Streaming agreements on 18 operating mines and 14 development projects.
  • 93% of attributable production from assets in the lowest half of their respective cost curves2,3.
  • 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration2,4.
  • Third quarter production increased quarter over quarter to 154,800 gold equivalent ounces3 ("GEOs"), driven by strong outperformances at both Salobo and Constancia, and despite the temporary suspension at Peñasquito, highlighting the strength of our diversified portfolio.
  • Average annual production guidance for 2023 of 600,000 to 660,000 GEOs2,3 is maintained, with sector-leading growth over the next five to ten years.
  • Accretive portfolio growth:
    • Subsequent to the quarter, entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of $115 million.
    • Acquired a 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide Gold Project for total cash consideration of $3.6 million, along with an equity investment totalling $5 million in Liberty Gold at C$0.34 per share.

Leadership in Sustainability

  • Top Rankings: #1 out of 117 precious metals companies and ranked in the Global Top 50 companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
  • Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing's Corporate ESG Awards.

Operational Overview 

(all figures in US dollars unless otherwise
noted)



Q3 2023



Q3 2022


Change



YTD 2023



YTD 2022



Change

Units produced


















Gold ounces



105,436



72,078


46.3 %



261,635



216,574



20.8 %

Silver ounces



3,363



5,822


(42.2) %



12,876



18,497



(30.4) %

Palladium ounces



4,006



3,229


24.1 %



11,591



11,616



(0.2) %

Cobalt pounds



183



226


(19.1) %



458



596



(23.1) %

Gold equivalent ounces 3



154,800



153,025


1.2 %



444,597



473,868



(6.2) %

Units sold


















Gold ounces



74,426



62,000


20.0 %



212,325



224,238



(5.3) %

Silver ounces



2,965



5,234


(43.4) %



11,151



16,635



(33.0) %

Palladium ounces



4,242



4,227


0.4 %



10,580



11,680



(9.4) %

Cobalt pounds



198



115


72.2 %



786



851



(7.6) %

Gold equivalent ounces 3



119,030



135,179


(11.9) %



375,248



460,026



(18.4) %

Change in PBND and Inventory


















Gold equivalent ounces 3



22,438



4,460


(17,978)



27,248



(32,368)



(59,616)

Revenue


$

223,137


$

218,836


2.0 %


$

702,573


$

829,002



(15.3) %

Net earnings


$

116,371


$

196,460


(40.8) %


$

369,209


$

503,001



(26.6) %

Per share


$

0.257


$

0.435


(40.9) %


$

0.815


$

1.114



(26.8) %

Adjusted net earnings 1


$

121,467


$

93,878


29.4 %


$

368,481


$

401,168



(8.1) %

Per share 1


$

0.268


$

0.208


28.8 %


$

0.814


$

0.889



(8.4) %

Operating cash flows


$

171,103


$

154,497


10.7 %


$

508,584


$

571,396



(11.0) %

Per share 1


$

0.378


$

0.342


10.5 %


$

1.123


$

1.266



(11.3) %

All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.

 

Financial Review

Revenues
Revenue in the third quarter of 2023 was $223 million (65% gold, 32% silver, 2% palladium and 1% cobalt), with the $4 million increase relative to the prior period quarter being primarily due to a 16% increase in realized commodity prices, partially offset by lower sales volumes.

Revenue was $703 million in the nine months ended September 30, 2023, representing a $126 million decrease from the comparable period of the previous year due primarily to an 18% decrease in the number of GEOs³ sold, resulting from lower production and relative changes in the GEOs³ produced but not yet delivered; partially offset by a 4% increase in the average realized gold equivalent³ price.

Cash Costs and Margin
Average cash costs¹ in the third quarter of 2023 were $418 per GEO³ as compared to $451 in the third quarter of 2022. This resulted in a cash operating margin¹ of $1,457 per GEO³ sold, an increase of 25% as compared with the third quarter of 2022, a result of the higher realized price per ounce.

Average cash costs¹ for the nine months ended September 30, 2023 were $427 per GEO³ as compared to $448 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,445 per GEO³ sold, a 7% increase from the comparable period of the previous year.

Cash Flow from Operations
Operating cash flow in the third quarter of 2023 amounted to $171 million, with the $17 million increase due primarily to the higher realized price per GEO sold coupled with higher amounts of interest received in the third quarter of 2023.

Operating cash flows for the nine months ended September 30, 2023 amounted to $509 million, with the $63 million decrease from the comparable period of the previous year being due primarily to lower sales volumes, partially offset by higher amounts of interest received during the current year.

Balance Sheet (at September 30, 2023 )

  • Approximately $834 million of cash on hand
  • During the third quarter of 2023, the Company made total upfront cash payments of $90 million relative to the mineral stream interests consisting of
    • $70 million payment relative to the Blackwater Silver precious metals purchase agreement ("PMPA"); and
    • a $20 million payment relative to the expansion of the Blackwater Gold PMPA
  • With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

Third Quarter Operating Asset Highlights

Salobo: In the third quarter of 2023, Salobo produced 69,000 ounces of attributable gold, an increase of approximately 56% relative to the third quarter of 2022, driven by higher throughput, with production from the third concentrator line commencing at the end of 2022, and higher recoveries. The prior year was also affected by planned and corrective maintenance being performed. In the third quarter of 2023, Salobo reached its highest production level since the fourth quarter of 2019 as the ramp-up of the Salobo III expansion continues to advance. Salobo is expected to reach a throughput capacity of 32 Mtpa in the fourth quarter of 2023 and full throughput capacity by the end of 2024.

Antamina: In the third quarter of 2023, Antamina produced 0.9 million ounces of attributable silver, a decrease of approximately 35% relative to the third quarter of 2022, primarily due to lower grades as per the mine plan.

Peñasquito: In the third quarter of 2023, Peñasquito had no production resulting from a suspension of operations at the mine which began on June 7, 2023 due to a labour dispute. On October 13, 2023, Newmont Corporation ("Newmont") reached a definitive agreement to end the strike and has since begun the safe ramp-up of operations. Newmont expects to reach full operating capacity by the end of the fourth quarter.

Constancia: In the third quarter of 2023, Constancia produced 0.7 million ounces of attributable silver and 19,000 ounces of attributable gold, an increase of approximately 24% and 164%, respectively, relative to the third quarter of 2022. Record quarterly gold production combined with strong silver production are a result of significantly higher grades from mining the high-grade zones of the Pampacancha deposit, higher recoveries and higher throughput. As per Hudbay Minerals Inc. ("Hudbay"), production is expected to continue to benefit from higher grades in the fourth quarter of 2023.

Sudbury: In the third quarter of 2023, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 24% relative to the third quarter of 2022, due to higher grades which as per Vale, were partially offset by the annual planned maintenance activities at the Sudbury and Thompson mines and mills, as well as additional maintenance at the Sudbury refinery in the third quarter.

Stillwater: In the third quarter of 2023, the Stillwater mines produced 2,500 ounces of attributable gold and 4,000 ounces of attributable palladium, an increase of approximately 34% for gold and 24% for palladium relative to the third quarter of 2022, due primarily to the impact on production resulting from regional flooding that occurred in the second quarter of 2022.

San Dimas: In the third quarter of 2023, San Dimas produced 10,000 ounces of attributable gold, a decrease of approximately 15% relative to the third quarter of 2022, primarily due to lower grades, partially offset by higher throughput.

Voisey's Bay:  In the third quarter of 2023, the Voisey's Bay mine produced 183,000 pounds of attributable cobalt, a decrease of approximately 19% relative to the third quarter of 2022, primarily due to mining lower grade material during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey's Bay underground project. Production in the third quarter was also impacted as a result of maintenance at the Long Harbour Refinery. Vale reports that physical completion of the Voisey's Bay underground mine extension was 88% at the end of the third quarter, with Reid Brook's bulk material handling system near mechanical completion, and the commissioning of sub-systems currently taking place. Vale achieved the first ore production from the Reid Brook deposit, the first of two underground mines to be developed in the project, in the second quarter of 2021. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is continuing its scheduled production ramp-up.

Other Gold: In the third quarter of 2023, total Other Gold attributable production was 700 ounces, a decrease of approximately 81% relative to the third quarter of 2022, primarily due to the closure of the Minto mine in May 2023.

Other Silver:  In the third quarter of 2023, total Other Silver attributable production was 1.8 million ounces, a decrease of approximately 6% relative to the third quarter of 2022, primarily due to the termination of the Yauliyacu PMPA.

Aljustrel:  On September 12, 2023, it was announced that as a result of low zinc prices, the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

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.

Third Quarter Development Asset Highlights

Blackwater Project: On July 4, 2023, Artemis announced receipt of the Fisheries Act Authorization for development of the Blackwater Project, which will facilitate the commencement of construction of water diversion structures and dams in the Davidson Creek valley which runs through the basin of the Blackwater tailings storage facility. On October 24, 2023, Artemis announced that overall construction at the Blackwater mine was 45% complete as of September 30, 2023. Project development continues to advance on the schedule, targeting first gold pour in the second half of 2024.

Marmato Mine: On July 12, 2023, Aris Mining announced that they have received approval from the Corporación Autónoma Regional del Caldas, a regional environmental authority in Colombia, of the Environmental Management Plan, which now permits the development of the Marmato Lower Mine.

Marathon Project: On August 30, 2023, Generation Mining Limited ("Gen Mining") received the Endangered Species Act permit issued by the Ministry of the Environment, Conservation and Parks. This permit includes conditions intended to minimize impacts to caribou and SAR bats, as well as to create an overall benefit for these species at risk. Additionally, in September 2023, Gen Mining received the Environmental Compliance Approval issued by the Ministry of Environment, Conservations and Parks for air and noise emissions for the Marathon Project, and on November 7, 2023, announced that the province of Ontario had accepted and filed the Closure Plan, representing another major milestone in the permitting process. Additional permits and approvals are expected to be received during the balance of 2023.

Copper World Complex: On September 8, 2023, Hudbay announced the results of the enhanced pre-feasibility study for Phase I of its 100%-owned Copper World project in Arizona. After receipt of two outstanding permits which are expected in mid-2024, Hudbay intends to complete a minority joint venture partner process prior to commencing a definitive feasibility study. The opportunity to sanction Copper World is not expected until 2025 based on current estimated timelines. With the results from this pre-feasibility study, the Company has now incorporated gold in the mineral reserves and mineral resources statement on our website.

Curipamba Project:  On September 11, 2023, Adventus provided an update that the Constitutional Court of Ecuador declared that processing of an unconstitutionality claim filed by the indigenous group CONAIE and other complainants against Presidential Decree 754 that regulates environmental consultation for all public and private industries and sectors in Ecuador was a priority and set a public hearing for September 18, 2023. Adventus has indicated that historically the Court can be expected to issue a resolution within two to three months following the public hearing commencement.

On October 2, 2023, Adventus announced that the El Domo – Curipamba project has been issued a favourable Certificate of No Affect of Water by the Ministry of Environment and Water of the Government of Ecuador. This certificate and milestone allow the planned and designed projected infrastructure construction in an area with the presence of surface and ground water sources.

Goose Project: On September 18, 2023, B2Gold provided a construction update on the Goose Project highlighting that the purchasing of materials and supplies needed to support the 2024 construction campaign has been completed and all materials have been provided to the ports for the 2023 sealift. Additionally, B2Gold reported that it remains on track to pour first gold in the first quarter of 2025, and that concrete and steel work in the mill area are progressing ahead of schedule.

Cangrejos Project

On October 18, 2023, Lumina Gold Corp., ("Lumina") announced that the Cangrejos project is proceeding on schedule. Lumina has been actively executing its 2023 feasibility study drill plan with nine rigs currently at site. Lumina has signed contracts with several engineering companies for the advancement of the feasibility study. The feasibility study is expected to be completed in the first quarter of 2025.

Corporate Development

Black Pine Project

On September 10, 2023, the Company acquired a new 0.5% Net Smelter Royalty ("NSR") from Liberty Gold Corp., ("Liberty Gold") on the Black Pine Oxide Gold Project ("Black Pine") for total cash consideration of $4 million. Liberty Gold has been granted an option to repurchase 50% of the NSR for $4 million at any point in time up to the earlier of commercial production at Black Pine or January 1, 2030. The Company has been granted a Right of First Refusal on all royalties, streams or pre-pays that include precious metals pertaining to Black Pine. In addition, the Company made an equity investment of $5 million in Liberty Gold at C$0.34 per share. 

Mineral Park Project

On October 24, 2023, the Company announced that it had entered into a PMPA (the "Mineral Park PMPA") with Waterton Copper in respect of silver production from the Mineral Park mine located in Arizona, USA (the "Project" or "Mineral Park"). Under the Mineral Park PMPA, Wheaton will purchase 100% of the payable silver from Mineral Park for the life of the mine. Under the terms of the Mineral Park PMPA, the Company is committed to pay Waterton Copper total upfront cash consideration of $115 million in four payments during construction through three installments of $25 million and a final installment of $40 million. In addition, Wheaton will make ongoing payments for the silver ounces delivered equal to 18% of the spot price of silver until the value of the silver delivered, net of the production payment, is equal to the upfront consideration of $115 million, at which point the production payment will increase to 22% of the spot price of silver. The Company has also entered into a loan agreement to provide a secured debt facility of up to $25 million to the Mineral Park owner, an affiliate of Waterton Copper, once the full upfront consideration has been paid.

Sustainability

Ratings & Awards:

  • In the third quarter of 2023, Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing's Corporate ESG Awards.

Community Investment Program:

  • In the third quarter of 2023, the Tour De Cure Presented by Wheaton attracted over 1,500 riders and raised more than $7.1 million for the BC Cancer Foundation.
  • In the third quarter of 2023, a number of new programs were established with First Majestic Silver. These include support for the operation of a community centre, improvements to a solid waste storage facility and the implementation of a recycling program, as well as the implementation and operation of wastewater treatment facilities in the community of Tayoltita. In addition, Wheaton also committed to assisting First Majestic Silver in providing internet access for several remote communities close to the mine.

Management Update

Wheaton announces management changes effective October 1, 2023, including the creation of a Chief Sustainability Officer position as well as Vice President appointments. Patrick Drouin, Wheaton's former Senior Vice President of Sustainability and Investor Relations, has been appointed President of Wheaton International, succeeding Nik Tatarkin who although retiring from management, will remain on the Board of Wheaton International. Mr. Drouin will continue to oversee the Company's ESG practices and performance at the executive level as President of Wheaton International and Chief Sustainability Officer.

Emma Murray has been appointed Vice President, Investor Relations, effective October 1, 2023, and will be primarily responsible for liaising with the investment community and ensuring the market is well-informed about Wheaton's strategic vision, financial performance and growth prospects. 

Simona Antolak has been appointed Vice President, Communications and Corporate Affairs, with responsibility over external and internal communications as well as sustainability matters.

These changes further strengthen Wheaton's global management team.

About Wheaton Precious Metals Corp. and Outlook

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

Wheaton's estimated attributable production in 2023 is forecast to be approximately 600,000 to 660,000 GEOs, unchanged from previous guidance2,3. Due to the temporary suspension of the Peñasquito mine from June 7, 2023 to October 13, 2023, Wheaton now expects its full-year production to have a higher weighting toward gold. The Company has previously estimated that average annual production for the five-year period ending in 2027 would amount to 810,000 GEOs, while for the ten-year period ending in 2032, the Company estimated that average annual production would amount to 850,000 GEOs. The Company will provide updated longer-term guidance in normal course in the first quarter of 2024, which will incorporate the impact of recent developments and acquisitions2,3.

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.

Webcast and Conference Call Details

A conference call will be held on Friday, November 10, 2023, starting at 11:00 am ET (8:00 am PT) to discuss these results. To participate in the live call, please use one of the following methods:

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:                                                      35621453
Live webcast:                                                  Webcast URL

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 17, 2023 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:

Dial toll free from Canada or the US:             1-888-390-0541
Dial from outside Canada or the US:             1-416-764-8677
Pass code:                                                      621453 #
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.sedarplus.ca.

Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).

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

Investor Contact, Emma Murray, Vice President, Investor Relations, Tel: 1-844-288-9878, Email: info@wheatonpm.com; Media Contact, Simona Antolak, Vice President, Communications & Corporate Affairs, Tel: 604-639-9870, Email: simona.antolak@wheatonpm.com 

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 November 9, 2023, titled "Wheaton Precious Metals Declares Quarterly Dividend."

2 Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see "Cautionary Note Regarding Forward-Looking Statements" for material risks, assumptions and important disclosure associated with this information.

3 Company reports & S and P Capital IQ est. of 2022 byproduct cost curves for gold, zinc/lead, copper, PGM, nickel & silver mines. GEOs relating to production and guidance, which are provided to assist the reader, are based on the following commodity price assumptions: gold $1,850/oz, silver $24/oz, palladium $1,800/oz, platinum $1,100/oz and cobalt $18.75/lb. Five-year and ten-year guidance does not include any production from Pascua-Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo outside of the Salobo III expansion. In addition, five-year guidance also does not include any production from Kutcho, or the Victor project at Sudbury. Additionally, none of the deals announced in 2023 have been factored into 2023 or longer-term guidance including the Blackwater extension, Cangrejos and Mineral Park Projects, and the Black Pine Royalty. Ounces produced represent the quantity of silver, gold, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions.

4 Portfolio mine life based on recoverable reserves and resources as of Dec 31, 2022 and 2022 actual mill throughput and is weighted by individual reserve and resource category.

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)


2023

2022

2023

2022

Sales


$

223,137

$

218,836

$

702,573

$

829,002

Cost of sales










Cost of sales, excluding depletion


$

49,808

$

60,955

$

160,413

$

205,891

Depletion



46,435


55,728


145,908


178,812

Total cost of sales


$

96,243

$

116,683

$

306,321

$

384,703

Gross margin


$

126,894

$

102,153

$

396,252

$

444,299

General and administrative expenses



8,606


8,360


28,922


27,448

Share based compensation



4,336


77


16,217


11,586

Donations and community investments



1,736


1,406


5,054


3,379

Impairment reversal of mineral stream interests


-


(10,330)


-


(10,330)

Earnings from operations


$

112,216

$

102,640

$

346,059

$

412,216

Gain on disposal of mineral stream interest



-


(104,425)


(5,027)


(104,425)

Other (income) expense



(10,707)


(2,799)


(26,961)


(3,448)

Earnings before finance costs and income taxes

$

122,923

$

209,864

$

378,047

$

520,089

Finance costs



1,407


1,398


4,138


4,209

Earnings before income taxes


$

121,516

$

208,466

$

373,909

$

515,880

Income tax expense



(5,145)


(12,006)


(4,700)


(12,879)

Net earnings


$

116,371

$

196,460

$

369,209

$

503,001

Basic earnings per share


$

0.257

$

0.435

$

0.815

$

1.114

Diluted earnings per share


$

0.257

$

0.434

$

0.814

$

1.112

Weighted average number of shares outstanding










Basic



452,975


451,757


452,748


451,402

Diluted



453,538


452,386


453,419


452,221

 

Condensed Interim Consolidated Balance Sheets


As at
September 30

As at
December 31

(US dollars in thousands - unaudited)

2023

2022

Assets





Current assets





Cash and cash equivalents

$

833,919

$

696,089

Accounts receivable


10,492


10,187

Cobalt inventory


2,429


10,530

Taxes receivable


5,000


-

Other


4,353


3,287

Total current assets

$

856,193

$

720,093

Non-current assets





Mineral stream interests

$

5,737,454

$

5,707,019

Early deposit mineral stream interests


47,093


46,092

Long-term equity investments


200,893


256,095

Property, plant and equipment


8,092


4,210

Other


31,790


26,397

Total non-current assets

$

6,025,322

$

6,039,813

Total assets

$

6,881,515

$

6,759,906

Liabilities





Current liabilities





Accounts payable and accrued liabilities

$

11,999

$

12,570

Current taxes payable


-


2,763

Current portion of performance share units


9,404


14,566

Current portion of lease liabilities


590


818

Total current liabilities

$

21,993

$

30,717

Non-current liabilities





Performance share units

$

6,222

$

6,673

Lease liabilities


5,654


1,152

Deferred income taxes


189


165

Pension liability


4,196


3,524

Total non-current liabilities

$

16,261

$

11,514

Total liabilities

$

38,254

$

42,231

Shareholders' equity





Issued capital

$

3,774,333

$

3,752,662

Reserves


(78,872)


66,547

Retained earnings


3,147,800


2,898,466

Total shareholders' equity

$

6,843,261

$

6,717,675

Total liabilities and shareholders' equity

$

6,881,515

$

6,759,906

Condensed Interim Consolidated Statements of Cash Flows



Three Months Ended
September 30

Nine Months Ended
September 30

(US dollars in thousands - unaudited)


2023

2022

2023

2022

Operating activities










Net earnings


$

116,371

$

196,460

$

369,209

$

503,001

Adjustments for










Depreciation and depletion



46,784


56,129


147,031


180,004

Gain on disposal of mineral stream interest



-


(104,425)


(5,027)


(104,425)

Impairment (reversal of impairment) of mineral stream
interests



-


(10,330)


-


(10,330)

Interest expense



78


22


131


72

Equity settled stock based compensation



1,732


1,568


5,133


4,407

Performance share units - expense



2,604


(1,491)


11,084


7,179

Performance share units - paid



-


(163)


(16,675)


(18,411)

Pension expense



329


291


787


720

Pension paid



-


-


(116)


-

Income tax expense (recovery)



5,145


12,006


4,700


12,879

Loss (gain) on fair value adjustment of share purchase

 warrants held



143


204


248


1,101

Investment income recognized in net earnings



(10,537)


(1,953)


(26,564)


(2,696)

Other



163


(349)


662


(440)

Change in non-cash working capital



(489)


4,728


(876)


(3,825)

Cash generated from operations before income taxes and interest


$

162,323

$

152,697

$

489,727

$

569,236

Income taxes paid



(912)


(29)


(5,244)


(141)

Interest paid



(79)


(22)


(112)


(73)

Interest received



9,771


1,851


24,213


2,374

Cash generated from operating activities


$

171,103

$

154,497

$

508,584

$

571,396

Financing activities










Credit facility extension fees


$

(13)

$

(1,205)

$

(859)

$

(1,207)

Share purchase options exercised



93


-


10,603


7,549

Lease payments



(169)


(201)


(548)


(603)

Dividends paid



(66,994)


(59,487)


(198,085)


(176,604)

Cash used for financing activities


$

(67,083)

$

(60,893)

$

(188,889)

$

(170,865)

Investing activities










Mineral stream interests


$

(90,710)

$

(46,675)

$

(210,944)

$

(107,476)

Early deposit mineral stream interests



(250)


(750)


(1,000)


(1,500)

Mineral royalty interest



(3,602)


-


(3,602)


-

Net proceeds on disposal of mineral stream interests



-


(139)


46,400


(139)

Acquisition of long-term investments



(5,006)


-


(13,181)


(22,768)

Proceeds on disposal of long-term investments



-


-


202


-

Dividends received



700


102


1,617


322

Other



(35)


(69)


(1,804)


(194)

Cash used for investing activities


$

(98,903)

$

(47,531)

$

(182,312)

$

(131,755)

Effect of exchange rate changes on cash and cash equivalents


$

(35)

$

(81)

$

447

$

(203)

Increase in cash and cash equivalents


$

5,082

$

45,992

$

137,830

$

268,573

Cash and cash equivalents, beginning of period


828,837


448,626


696,089


226,045

Cash and cash equivalents, end of period


$

833,919

$

494,618

$

833,919

$

494,618

Summary of Units Produced


Q3 2023 

Q2 2023 

Q1 2023 

Q4 2022 

Q3 2022 

Q2 2022 

Q1 2022 

Q4 2021 

Gold ounces produced ²









Salobo

69,045

54,804

43,677

37,939

44,212

34,129

44,883

48,235

Sudbury 3

4,266

5,818

6,203

5,270

3,437

5,289

5,362

4,379

Constancia

19,003

7,444

6,905

10,496

7,196

8,042

6,311

9,857

San Dimas 4

9,995

11,166

10,754

10,037

11,808

10,044

10,461

13,714

Stillwater 5

2,454

2,017

1,960

2,185

1,833

2,171

2,497

2,664

Other









Marmato

673

639

457

533

542

778

477

479

         777 6

-

-

-

-

-

3,509

4,003

4,462

Minto

-

1,292

3,063

2,567

3,050

2,480

4,060

3,506

Total Other

673

1,931

3,520

3,100

3,592

6,767

8,540

8,447

Total gold ounces produced

105,436

83,180

73,019

69,027

72,078

66,442

78,054

87,296

Silver ounces produced 2









Peñasquito 7

-

1,744

2,076

1,761

2,017

2,089

2,219

2,145

Antamina

864

960

851

1,067

1,327

1,330

1,210

1,309

Constancia

697

420

552

655

564

584

506

578

Other









Los Filos

28

28

28

14

21

35

42

37

Zinkgruvan

785

374

632

664

642

739

577

482

Neves-Corvo

486

407

436

369

323

345

344

522

Aljustrel

327

279

343

313

246

292

287

325

Cozamin

165

184

141

157

179

169

186

213

Marmato

11

7

8

9

7

7

11

7

Yauliyacu 8

-

-

-

261

463

756

637

382

Stratoni 9

-

-

-

-

-

-

-

129

Minto

-

14

29

33

33

26

45

44

Keno Hill 10

-

-

-

-

-

48

20

30

         777 6

-

-

-

-

-

80

91

96

Total Other

1,802

1,293

1,617

1,820

1,914

2,497

2,240

2,267

Total silver ounces produced

3,363

4,417

5,096

5,303

5,822

6,500

6,175

6,299

Palladium ounces produced ²









Stillwater 5

4,006

3,880

3,705

3,869

3,229

3,899

4,488

4,733

Cobalt pounds produced ²









Voisey's Bay

183

152

124

128

226

136

234

381

GEOs produced 11

154,800

145,797

144,000

142,887

153,025

155,932

164,911

177,490

Average payable rate 2









Gold

95.5 %

95.1 %

95.1 %

94.9 %

95.1 %

95.1 %

95.2 %

96.0 %

Silver

79.0 %

83.2 %

82.3 %

83.6 %

85.8 %

85.9 %

86.3 %

86.2 %

Palladium

93.6 %

94.1 %

96.0 %

91.7 %

95.0 %

94.6 %

92.7 %

92.2 %

Cobalt

93.3 %

93.3 %

93.3 %

93.3 %

93.3 %

93.3 %

93.3 %

93.3 %

GEO 11

90.8 %

90.4 %

89.3 %

89.3 %

90.4 %

90.4 %

90.7 %

91.5 %

1)

All figures in thousands except gold and palladium ounces produced.

2)

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

3)

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

4)

Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. For reference, attributable silver production from prior periods is as follows: Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces; Q4 2022 - 348,000 ounces; Q3 2022 - 412,000 ounces; Q2 2022 - 382,000 ounces; Q1 2022 - 408,000 ounces; Q4 2021 - 544,000 ounces.

5)

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

6)

On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.

7)

There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023.

8)

On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million.

9)

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

10)

On September 7, 2022, the Company terminated the Keno Hill PMPA in exchange for $141 million of Hecla common stock.

11)

GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023. 

Summary of Units Sold 


Q3 2023 

Q2 2023 

Q1 2023 

Q4 2022 

Q3 2022 

Q2 2022 

Q1 2022 

Q4 2021 

Gold ounces sold









Salobo

44,444

46,030

35,966

41,029

31,818

48,515

42,513

47,171

Sudbury 2

4,836

4,775

4,368

4,988

5,147

7,916

3,712

965

Constancia

12,399

9,619

6,579

6,013

6,336

7,431

10,494

6,196

San Dimas

9,695

11,354

10,651

10,943

10,196

10,633

10,070

15,182

Stillwater 3

1,985

2,195

2,094

1,783

2,127

2,626

2,628

2,933

Other









Marmato

792

467

480

473

719

781

401

423

777

275

153

126

785

3,098

3,629

4,388

4,290

Minto

-

701

2,341

2,982

2,559

2,806

3,695

2,462

Total Other

1,067

1,321

2,947

4,240

6,376

7,216

8,484

7,175

Total gold ounces sold

74,426

75,294

62,605

68,996

62,000

84,337

77,901

79,622

Silver ounces sold









Peñasquito

453

1,913

1,483

2,066

1,599

2,096

2,188

1,818

Antamina

794

963

814

1,114

1,155

1,177

1,468

1,297

Constancia

435

674

366

403

498

494

644

351

Other









Los Filos

30

37

34

16

24

41

42

17

Zinkgruvan

714

370

520

547

376

650

355

346

Neves-Corvo

245

132

171

80

105

167

204

259

Aljustrel

142

182

205

156

185

123

145

133

Cozamin

139

150

119

150

154

148

177

174

Marmato

11

7

7

7

8

11

8

8

Yauliyacu

-

-

-

337

1,005

817

44

551

Stratoni

-

-

-

-

-

(2)

133

42

Minto

-

7

29

23

22

21

31

27

Keno Hill

-

-

1

1

30

30

27

24

777

2

2

-

35

73

75

87

69

Total Other

1,283

887

1,086

1,352

1,982

2,081

1,253

1,650

Total silver ounces sold

2,965

4,437

3,749

4,935

5,234

5,848

5,553

5,116

Palladium ounces sold









Stillwater 3

4,242

3,392

2,946

3,396

4,227

3,378

4,075

4,641

Cobalt pounds sold









Voisey's Bay

198

265

323

187

115

225

511

228

GEOs sold 4

119,030

138,835

117,383

138,218

135,179

165,766

159,082

152,826

Cumulative payable units PBND 5









Gold ounces

99,923

73,403

69,479

62,602

65,978

59,331

81,365

84,989

Silver ounces

1,071

1,325

2,065

1,606

2,287

2,438

2,693

3,042

Palladium ounces

5,607

6,122

5,751

5,098

5,041

6,267

5,535

5,629

Cobalt pounds

376

250

285

257

402

280

550

596

GEO 4

123,086

99,084

104,749

91,001

104,623

99,895

127,257

135,964

Inventory on hand









Cobalt pounds

155

310

398

633

556

582

410

657

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, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

5)

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

Results of Operations 

The operating results of the Company's reportable operating segments are summarized in the tables and commentary below.

Three Months Ended September 30, 2023


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

69,045

44,444

$

1,944

$

420

$

330

$

86,395

$

53,026

$

67,710

$

2,341,485

Sudbury 4

4,266

4,836


1,950


400


1,204


9,428


1,669


7,494


268,224

Constancia

19,003

12,399


1,944


419


316


24,102


14,991


18,906


86,555

San Dimas

9,995

9,695


1,944


631


260


18,846


10,216


12,732


147,638

Stillwater

2,454

1,985


1,944


349


510


3,859


2,154


3,167


212,650

Other 5

673

1,067


1,945


368


391


2,077


1,266


1,684


557,035


105,436

74,426

$

1,944

$

444

$

381

$

144,707

$

83,322

$

111,693

$

3,613,587

Silver

















Peñasquito

-

453

$

23.82

$

4.43

$

4.06

$

10,804

$

6,952

$

8,795

$

278,028

Antamina

864

794


23.82


4.81


7.06


18,915


9,496


15,097


527,227

Constancia

697

435


23.82


6.18


6.24


10,360


4,958


7,674


183,736

Other 6

1,802

1,283


23.62


5.15


2.64


30,293


20,301


19,439


549,641


3,363

2,965

$

23.73

$

5.10

$

4.57

$

70,372

$

41,707

$

51,005

$

1,538,632

Palladium

















Stillwater

4,006

4,242

$

1,251

$

223

$

459

$

5,307

$

2,416

$

4,361

$

222,154

Platinum

















Marathon

-

-

$

n.a.

$

n.a.

$

n.a.

$

-

$

-

$

-

$

9,450

Cobalt

















Voisey's Bay

183

198

$

13.87

$

3.66 ⁷

$

12.98

$

2,751

$

(551)

$

4,235

$

353,631

Operating results








$

223,137

$

126,894

$

171,294

$

5,737,454

Other















General and administrative










$

(8,606)

$

(6,321)



Share based compensation











(4,336)


-



Donations and community investments











(1,736)


(1,750)



Finance costs












(1,407)


(1,078)



Other











10,707


9,870



Income tax












(5,145)


(912)



Total other









$

(10,523)

$

(191)

$

1,144,061












$

116,371

$

171,103

$

6,881,515

1)

Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.

2)

Quantity produced 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 Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

6)

Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

7)

Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million, resulting in a decrease of $0.51 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

On a gold equivalent basis, results for the Company for the three months ended September 30, 2023 were as follows:

Three Months Ended September 30, 2023


Ounces
Produced 1

Ounces
Sold

Average
Realized
Price
($'s Per
Ounce)

Average
Cash Cost
($'s Per
Ounce) 2

Cash
Operating
Margin
($'s Per
Ounce) 3

Average
Depletion
($'s Per
Ounce)

Gross
Margin
($'s Per
Ounce)

Gold equivalent basis 4

154,800

119,030

$    1,875

$    418

$    1,457

$    390

$    1,067

1)

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

2)

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

3)

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

4)

GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 

Three Months Ended September 30, 2022


Units
Produced²

Units
Sold

Average
Realized
Price
($'s
Per Unit)

Average
Cash Cost
($'s Per
Unit) 3

Average
Depletion
($'s Per
Unit)

Sales

Impairment
Reversals /
Gain on

 Disposal 4

Net
Earnings

Cash Flow
From
Operations

Total
Assets

Gold



















Salobo

44,212

31,818

$

1,724

$

416

$

334

$

54,860

$

-

$

31,000

$

41,617

$

2,396,952

Sudbury 5

3,437

5,147


1,745


400


1,092


8,984


-


1,303


5,943


288,863

Constancia

7,196

6,336


1,724


415


271


10,925


-


6,578


8,295


97,213

San Dimas

11,808

10,196


1,724


624


260


17,579


-


8,567


11,213


158,704

Stillwater

1,833

2,127


1,724


317


429


3,667


-


2,080


2,992


216,617

Other 6

3,592

6,376


1,743


694


59


11,113


-


6,311


5,562


461,359


72,078

62,000

$

1,728

$

474

$

353

$

107,128

$

-

$

55,839

$

75,622

$

3,619,708

Silver



















Peñasquito

2,017

1,599

$

19.30

$

4.36

$

3.57

$

30,857

$

-

$

18,182

$

23,885

$

301,040

Antamina

1,327

1,155


19.30


3.75


7.06


22,287


-


9,798


17,951


553,231

Constancia

564

498


19.30


6.12


6.35


9,613


-


3,398


6,563


195,507

Other 7

1,914

1,982


18.93


7.51


6.84


37,513


114,755


123,823


21,896


538,739


5,822

5,234

$

19.16

$

5.59

$

5.84

$

100,270

$

114,755

$

155,201

$

70,295

$

1,588,517

Palladium



















Stillwater

3,229

4,227

$

2,091

$

353

$

399

$

8,838

$

-

$

5,657

$

7,344

$

228,168

Platinum



















Marathon

-

-

$

n.a.

$

n.a.

$

n.a.

$

-

$

-

$

-

$

-

$

9,425

Cobalt



















Voisey's Bay

226

115

$

22.68

$

7.21

$

13.63

$

2,600

$

-

$

211

$

7,352

$

361,238

Operating results








$

218,836

$

114,755

$

216,908

$

160,613

$

5,807,056

Other

















General and administrative












$

(8,360)

$

(5,342)



Share based compensation













(77)


(163)



Donations and community investments













(1,406)


(1,410)



Finance costs














(1,398)


(1,020)



Other













2,799


1,848



Income tax














(12,006)


(29)



Total other











$

(20,448)

$

(6,116)

$

780,539














$

196,460

$

154,497

$

6,587,595

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)

Relates to the termination of the Keno Hill PMPA.

5)

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

6)

Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7)

Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

On a gold equivalent basis, results for the Company for the three months ended September 30, 2022 were as follows:

Three Months Ended September 30, 2022


Ounces
Produced 1

Ounces
Sold

Average
Realized
Price
($'s Per
Ounce)

Average
Cash Cost
($'s Per
Ounce) 2

Cash
Operating
Margin
($'s Per
Ounce) 3

Average
Depletion
($'s Per
Ounce)

Gross
Margin
($'s Per
Ounce)

Gold equivalent basis 4

153,025

135,179

$    1,619

$    451

$    1,168

$    412

$    756

1)

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

2)

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

3)

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

4)

GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 

Nine Months Ended September 30, 2023


Units
Produced²

Units
Sold

Average
Realized
Price
($'s
Per Unit)

Average
Cash Cost
($'s Per
Unit) 3

Average
Depletion
($'s Per
Unit)

Sales

Gain on
Disposal 4

Net
Earnings

Cash Flow
From
Operations

Total
Assets

Gold



















Salobo

167,526

126,440

$

1,947

$

420

$

330

$

246,219

$

-

$

151,287

$

193,063

$

2,341,485

Sudbury 5

16,287

13,979


1,953


400


1,087


27,295


-


6,512


21,420


268,224

Constancia

33,352

28,597


1,948


417


316


55,718


-


34,751


43,779


86,555

San Dimas

31,915

31,700


1,945


628


260


61,657


-


33,535


41,762


147,638

Stillwater

6,431

6,274


1,945


347


510


12,201


-


6,824


10,026


212,650

Other 6

6,124

5,335


1,935


1,119


172


10,324


-


3,439


4,090


557,035


261,635

212,325

$

1,947

$

465

$

369

$

413,414

$

-

$

236,348

$

314,140

$

3,613,587

Silver



















Peñasquito

3,820

3,849

$

23.63

$

4.43

$

4.06

$

90,967

$

-

$

58,268

$

73,915

$

278,028

Antamina

2,675

2,571


23.65


4.69


7.06


60,812


-


30,625


48,765


527,227

Constancia

1,669

1,475


23.75


6.15


6.24


35,034


-


16,750


25,962


183,736

Other 7

4,712

3,256


23.44


5.58


2.82


76,316


5,027


53,966


55,364


549,641


12,876

11,151

$

23.60

$

5.05

$

4.68

$

263,129

$

5,027

$

159,609

$

204,006

$

1,538,632

Palladium



















Stillwater

11,591

10,580

$

1,410

$

255

$

440

$

14,922

$

-

$

7,565

$

12,223

$

222,154

Platinum



















Marathon

-

-

$

n.a.

$

n.a.

$

n.a.

$

-

$

-

$

-

$

-

$

9,450

Cobalt



















Voisey's Bay

458

786

$

14.13

$

3.36 ⁸

$

13.63

$

11,108

$

-

$

(2,243)

$

13,056

$

353,631

Operating results








$

702,573

$

5,027

$

401,279

$

543,425

$

5,737,454

Other

















General and administrative












$

(28,922)

$

(29,702)



Share based compensation













(16,217)


(16,675)



Donations and community investments













(5,054)


(4,896)



Finance costs














(4,138)


(3,147)



Other













26,961


24,823



Income tax














(4,700)


(5,244)



Total other











$

(32,070)

$

(34,841)

$

1,144,061














$

369,209

$

508,584

$

6,881,515

1)

Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.

2)

Quantity produced 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)

The gain on disposal of Other silver interests relates to the gain on the buyback of 33% of the Goose PMPA.

5)

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

6)

Comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7)

Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

8)

Cash cost per pound of cobalt sold during the nine months ended September 30, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

On a gold equivalent basis, results for the Company for the nine months ended September 30, 2023 were as follows:

Nine Months Ended September 30, 2023


Ounces
Produced 1

Ounces
Sold

Average
Realized
Price
($'s Per
Ounce)

Average
Cash Cost
($'s Per
Ounce) 2

Cash
Operating
Margin
($'s Per
Ounce) 3

Average
Depletion
($'s Per
Ounce)

Gross
Margin
($'s Per
Ounce)

Gold equivalent basis 4

444,597

375,248

$    1,872

$    427

$    1,445

$    389

$    1,056

1)

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

2)

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

3)

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

4)

GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

 

Nine Months Ended September 30, 2022


Units
Produced²

Units
Sold

Average
Realized
Price
($'s
Per Unit)

Average
Cash Cost
($'s Per
Unit) 3

Average
Depletion
($'s Per
Unit)

Sales

Impairment
Reversals /
Gain on
Disposal 4

Net
Earnings

Cash Flow
From
Operations

Total
Assets

Gold



















Salobo

123,224

122,846

$

1,834

$

416

$

334

$

225,267

$

-

$

133,146

$

174,134

$

2,396,952

Sudbury 5

14,088

16,775


1,828


400


1,091


30,673


-


5,657


22,980


288,863

Constancia

21,549

24,261


1,833


413


271


44,480


-


27,886


34,463


97,213

San Dimas

32,313

30,899


1,823


622


260


56,335


-


29,095


37,114


158,704

Stillwater

6,501

7,381


1,829


330


429


13,503


-


7,902


11,070


216,617

Other 6

18,899

22,076


1,829


734


45


40,388


-


23,183


22,912


461,359


216,574

224,238

$

1,831

$

471

$

348

$

410,646

$

-

$

226,869

$

302,673

$

3,619,708

Silver



















Peñasquito

6,325

5,883

$

22.21

$

4.36

$

3.57

$

130,686

$

-

$

84,058

$

105,036

$

301,040

Antamina

3,867

3,800


22.13


4.42


7.06


84,093


-


40,479


66,952


553,231

Constancia

1,654

1,636


22.15


6.09


6.34


36,227


-


15,883


26,260


195,507

Other 7

6,651

5,316


21.41


7.14


5.61


113,823


114,755


160,768


75,969


538,739


18,497

16,635

$

21.93

$

5.43

$

5.29

$

364,829

$

114,755

$

301,188

$

274,217

$

1,588,517

Palladium



















Stillwater

11,616

11,680

$

2,190

$

383

$

399

$

25,574

$

-

$

16,437

$

21,099

$

228,168

Platinum



















Marathon

-

-

$

n.a

$

n.a

$

n.a

$

-

$

-

$

-

$

-

$

9,425

Cobalt



















Voisey's Bay

596

851

$

32.85

$

6.24

$

9.49

$

27,953

$

-

$

14,560

$

24,412

$

361,238

Operating results








$

829,002

$

114,755

$

559,054

$

622,401

$

5,807,056

Other

















General and administrative












$

(27,448)

$

(28,688)



Share based compensation













(11,586)


(18,411)



Donations and community investments













(3,379)


(2,977)



Finance costs













(4,209)


(3,107)



Other













3,448


2,319



Income tax














(12,879)


(141)



Total other











$

(56,053)

$

(51,005)

$

780,539














$

503,001

$

571,396

$

6,587,595

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)

Relates to the termination of the Keno Hill PMPA.

5)

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

6)

Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.

7)

Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

On a gold equivalent basis, results for the Company for the nine months ended September 30, 2022 were as follows:

Nine Months Ended September 30, 2022


Ounces
Produced 1

Ounces
Sold

Average
Realized
Price
($'s Per
Ounce)

Average
Cash Cost
($'s Per
Ounce) 2

Cash
Operating
Margin
($'s Per
Ounce) 3

Average
Depletion
($'s Per
Ounce)

Gross
Margin
($'s Per
Ounce)

Gold equivalent basis 4

473,868

460,026

$    1,802

$    448

$    1,354

$    389

$    965

1)

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

2)

Silver ounces produced and sold in thousands.

3)

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

4)

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

5)

GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2023.

Non-IFRS Measures

Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating margin.

i.       

Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders' Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company's performance. 

The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted).


Three Months Ended
September 30

Nine Months Ended
September 30

(in thousands, except for per share amounts)


2023


2022


2023


2022

Net earnings


$

116,371


$

196,460


$

369,209


$

503,001

Add back (deduct):













Impairment charge (reversal)



-



(10,330)



-



(10,330)

Gain on disposal of Mineral Stream
Interest



-



(104,425)



(5,027)



(104,425)

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



143



204



248



1,101

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



-



3,644



-



4,143

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



5,115



546



7,205



701

Income tax recovery related to prior year
disposal of Mineral Stream Interest



-



7,779



(2,672)



7,779

Other



(162)



-



(482)



(802)

Adjusted net earnings


$

121,467


$

93,878


$

368,481


$

401,168

Divided by:













Basic weighted average number of shares
outstanding



452,975



451,757



452,748



451,402

Diluted weighted average number of
shares outstanding



453,538



452,386



453,419



452,221

Equals:













Adjusted earnings per share - basic


$

0.268


$

0.208


$

0.814


$

0.889

Adjusted earnings per share - diluted


$

0.268


$

0.208


$

0.813


$

0.887

 

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

Nine Months Ended
September 30

(in thousands, except for per share amounts)


2023


2022


2023


2022

Cash generated by operating activities


$

171,103


$

154,497


$

508,584


$

571,396

Divided by:













Basic weighted average number of shares
outstanding



452,975



451,757



452,748



451,402

Diluted weighted average number of
shares outstanding



453,538



452,386



453,419



452,221

Equals:













Operating cash flow per share - basic


$

0.378


$

0.342


$

1.123


$

1.266

Operating cash flow per share - diluted


$

0.377


$

0.342


$

1.122


$

1.264

 

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

Nine Months Ended
September 30

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


2023


2022


2023


2022

Cost of sales


$

96,243


$

116,683


$

306,321


$

384,703

Less:  depletion



(46,435)



(55,728)



(145,908)



(178,812)

Cash cost of sales


$

49,808


$

60,955


$

160,413


$

205,891

Cash cost of sales is comprised of:













Total cash cost of gold sold


$

33,014


$

29,398


$

98,724


$

105,719

Total cash cost of silver sold



15,121



29,238



56,351



90,384

Total cash cost of palladium sold



946



1,493



2,699



4,475

Total cash cost of cobalt sold



727



826



2,639



5,313

Total cash cost of sales


$

49,808


$

60,955


$

160,413


$

205,891

Divided by:













Total gold ounces sold



74,426



62,000



212,325



224,238

Total silver ounces sold



2,965



5,234



11,151



16,635

Total palladium ounces sold



4,242



4,227



10,580



11,680

Total cobalt pounds sold



198



115



786



851

Equals:













Average cash cost of gold (per ounce)


$

444


$

474


$

465


$

471

Average cash cost of silver (per ounce)


$

5.10


$

5.59


$

5.05


$

5.43

Average cash cost of palladium (per ounce)


$

223


$

353


$

255


$

383

Average cash cost of cobalt (per pound)


$

3.66


$

7.21


$

3.36


$

6.24

 

iv.  

Cash operating margin is calculated by adding back depletion to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company's performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company's ability to generate cash flow. 

The following table provides a reconciliation of cash operating margin.


Three Months Ended
September 30

Nine Months Ended
September 30

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


2023


2022


2023


2022

Gross margin


$

126,894


$

102,153


$

396,252


$

444,299

Add back:  depletion



46,435



55,728



145,908



178,812

Cash operating margin


$

173,329


$

157,881


$

542,160


$

623,111

Cash operating margin is comprised of:













Total cash operating margin of gold sold


$

111,693


$

77,730


$

314,690


$

304,927

Total cash operating margin of silver sold



55,251



71,032



206,778



274,445

Total cash operating margin of palladium sold



4,361



7,345



12,223



21,099

Total cash operating margin of cobalt sold



2,024



1,774



8,469



22,640

Total cash operating margin


$

173,329


$

157,881


$

542,160


$

623,111

Divided by:













Total gold ounces sold



74,426



62,000



212,325



224,238

Total silver ounces sold



2,965



5,234



11,151



16,635

Total palladium ounces sold



4,242



4,227



10,580



11,680

Total cobalt pounds sold



198



115



786



851

Equals:













Cash operating margin per gold ounce sold


$

1,500


$

1,254


$

1,482


$

1,360

Cash operating margin per silver ounce sold


$

18.63


$

13.57


$

18.55


$

16.50

Cash operating margin per palladium ounce sold


$

1,028


$

1,738


$

1,155


$

1,807

Cash operating margin per cobalt pound sold


$

10.21


$

15.47


$

10.77


$

26.61

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton's PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, the payment of $115 million to Waterton Copper and the satisfaction of each party's obligations in accordance with the Mineral Park PMPA and the receipt of silver production in respect of the Mineral Park Mine, 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, 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 risks related to the satisfaction of each party's obligations in accordance with the terms of the Mineral Park PMPA, 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 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, risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), 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 (including whether there will be any material change in the Company's facts or change in law or jurisprudence), potential amendments to Canada's transfer pricing rules under the Income Tax Act (Canada) that may result from the Department of Finance's consultation paper released June 6, 2023,  potential implementation of a 15% global minimum tax, including the draft legislation issued for consultation by the Canadian Federal Government on August 4, 2023 that would apply to the income of the Company's non-Canadian subsidiaries; 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.sedarplus.ca and Wheaton's Form 40-F for the year ended December 31, 2022 on file with the U.S. Securities and Exchange Commission on EDGAR (the "Disclosure"). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation): the payment of $115 million to Waterton Copper and the satisfaction of each party's obligations in accordance with the terms of the Mineral Park PMPA, 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 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), and such other assumptions and factors as set out in the Disclosure. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton's expected financial and operational performance and may not be appropriate for other purposes. Any forward-looking statement speaks only as of the date on which it is made, reflects Wheaton's management's current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward‑looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.

Cautionary Language Regarding Reserves and Resources

For further information on Mineral Reserves and Mineral Resources and on Wheaton more generally, readers should refer to Wheaton's Annual Information Form for the year ended December 31, 2022, which was filed on March 31, 2023 and other continuous disclosure documents filed by Wheaton since January 1, 2023, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability.

Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. The Company reports information regarding mineral properties, mineralization and estimates of mineral reserves and mineral resources in accordance with Canadian reporting requirements which are governed by, and utilize definitions required by,  Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards"). These definitions differ from the definitions adopted by the United States Securities and Exchange Commission ("SEC") under the United States Securities Act of 1933, as amended (the "Securities Act") which are applicable to U.S. companies. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted by the SEC. Accordingly, information contained herein that describes Wheaton's mineral deposits may not be comparable to similar information made public by U.S. companies subject to reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. United States investors are urged to consider closely the disclosure in Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from https://www.sec.gov/edgar.shtml.

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SOURCE Wheaton Precious Metals Corp.