PR Newswire
TSX | NYSE | LSE: WPM
Designated News Release
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
VANCOUVER, BC
,
March 10, 2022
/PRNewswire/ – “Wheaton generated record annual revenue and operating cash flow in 2021 as our diversified portfolio of high-quality, long-life assets delivered strong results. We are proud of the value we were able to return to our shareholders resulting from our record-setting performance, with total dividends paid in 2021 increasing by over 35% from 2020,” said
Randy Smallwood
, President and Chief Executive Officer of Wheaton Precious Metals. “In 2021, Wheaton also remained focused on accretive growth, and over the past three months alone, we added five new streams to our already robust portfolio. This additional growth is readily apparent in our ten-year production forecast, where we see annual production climbing to well over 900,000 gold equivalent ounces.”
“In addition to our financial and corporate development successes in 2021, Wheaton also made significant strides in bolstering our sustainability efforts while continuing to support community programs around our offices and mining partners’ sites. We substantially strengthened our policies and disclosure around our environmental, social and governance strategy, including aligning our approach with the most recent climate science with the goal of reaching net zero carbon emissions by 2050. As we enter 2022, we look forward to building off our accomplishments from 2021 and continuing to create lasting value for all of our stakeholders.”
Fourth Quarter and Year End 2021 Highlights:
-
Nearly
$200 million
in operating cash flow during the fourth quarter and a record
$845 million
during 2021.
-
$278 million
in revenue during the fourth quarter and a record
$1.2 billion
during 2021.
-
$132 million
in adjusted net earnings
1
during the fourth quarter and a record
$592 million
during 2021.
-
Attributable production in 2021 was 752,958 gold equivalent ounces
2
(“GEOs”), in line with Company guidance.
-
Announced a new precious metal purchase agreement (“PMPA”) on Artemis Gold Inc.’s Blackwater Gold Project (“Blackwater”) in respect of silver production and acquired the existing PMPA held by New Gold Inc. in respect of gold production from Blackwater.
-
Announced new PMPA on Generation Mining Limited’s Marathon Project in respect of gold and platinum production.
-
Subsequent to the quarter, announced new PMPAs on Adventus Mining Corporation’s Curipamba Project in respect of gold and silver production and
Sabina Gold
& Silver Corp.’s Goose Project in respect of gold production.
-
On a GEO
3
basis, total attributable Proven and Probable Mineral Reserves for all metals increased by 13%, driven by a 20% increase in total attributable gold Proven and Probable Mineral Reserves, primarily due to recently added PMPAs and increases at Salobo.
-
Declared quarterly dividend
1
of
$0.15
per common share
Operational Overview
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Production Guidance
-
2022 Guidance:
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
3
of other metals, resulting in production of approximately 700,000 to 760,000 GEOs
3
.
-
Five-year guidance:
For the five-year period ending in 2026, the Company estimates that average production will amount to 850,000 GEOs
3
.
-
Ten-year guidance:
For the ten-year period ending in 2031, the Company estimates that average annual production will amount to 910,000 GEOs
3
.
Financial Review
Revenues
Revenue was
$278 million
in the fourth quarter of 2021 representing a 3% decrease from the fourth quarter of 2020 due primarily
to a 5% decrease in the average realized gold equivalent² price; partially offset by a 2% increase in the number of GEOs² sold.
Revenue was
$1,202 million
in the year ended
December 31, 2021
representing a 10% increase from 2020 due primarily to a 9% increase in the average realized gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2021 were
$429
per GEO² as compared to
$415
in fourth quarter of 2020.
This resulted in a cash operating margin¹ of
$1,322
per GEO² sold, a decrease of 7% as compared with the fourth quarter of 2020.
Average cash costs¹ in 2021 were
$434
per GEO² as compared to
$403
in 2020. This resulted in a cash operating margin¹ of
$1,377
per GEO² sold, an increase of 10% as compared with 2020.
Impairment Reversals of Mineral Stream Interests
Net earnings were positively impacted as the result of an impairment reversal on the Voisey’s Bay PMPA amounting to
$157 million
at
December 31, 2021
.
Indicators of impairment reversal were identified relative to the Voisey’s Bay PMPA, as a result of significant and sustained increases in the market prices of cobalt. Management estimated that the recoverable amount under the Voisey’s Bay PMPA exceeded the carrying amount that would have been determined, net of depletion, had no impairment charge been recognized for the PMPA in prior years, resulting in an impairment reversal of
$157 million
at
December 31, 2021
.
Balance Sheet
(at
December 31, 2021
)
-
Approximately
$226 million
of cash on hand.
-
The Company’s
$2 billion
revolving term loan (the “Revolving Facility”) remains fully undrawn.
Fourth
Quarter Asset Highlights
Salobo:
In the fourth quarter of 2021, Salobo produced 48,200 ounces of attributable gold, a decrease of approximately 23% relative to the fourth quarter of 2020 primarily due to lower throughput, grades and recovery, with throughput being impacted as a result of an 18-day suspension of operations following a conveyor belt fire in
October 2021
. According to Vale S.A. (“Vale”), other activities, including mine and maintenance operations, continued as usual during this period but concentrate production was interrupted. Concentrate production resumed on
October 22, 2021
and ramped up over a three-day period. Vale reported that despite the challenges, mine movement continued to improve at Salobo operation and reached pre-safety review levels by the end of the year.
As per Vale’s Fourth Quarter 2021 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. Safety conditions at the area were reestablished and Vale is working on additional preventive measures and replacement of damaged equipment. A full assessment of impact by Vale is ongoing with conclusion expected early in the second quarter of 2022. Vale further reports that physical completion of the Salobo III mine expansion was 85%
at the end of the fourth quarter
.
Peñasquito:
In the fourth quarter of 2021, Peñasquito produced 2.1 million ounces of attributable silver, an increase of approximately 7% relative to the fourth quarter of 2020, primarily due to higher grades and recoveries, partially offset by lower throughput.
Antamina:
In the fourth quarter of 2021, Antamina produced 1.4 million ounces of attributable silver, a decrease of approximately 29% relative to the fourth quarter of 2020, primarily due to lower throughput and grades
.
As per Compañía Minera Antamina S.A.’s (the operating company of Antamina) news release dated
October 31, 2021
, operations at Antamina were briefly suspended to ensure the health and safety of its workforce and other stakeholders following localized protests in
Peru
.
Constancia:
In the fourth quarter of 2021, Constancia produced 0.6 million ounces of attributable silver and 9,900 ounces of attributable gold, an increase of approximately 21% and 151%, respectively, relative to the fourth quarter of 2020. Silver production increased primarily due to higher grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%, partially offset by the receipt of 2,005 ounces in the fourth quarter of 2020 related to delays in accessing the Pampacancha deposit while no delay payment was received in 2021.
Additionally, as Hudbay mined and processed four million tonnes of ore from the Pampacancha deposit by
December 31, 2021
, the Company was required to make an additional deposit payment of
$4 million
to Hudbay for the increase in the fixed gold recoveries, which was paid on
December 23, 2021
.
Sudbury
:
In the fourth quarter of 2021, Vale’s
Sudbury
mines produced 5,400 ounces of attributable gold, a decrease of approximately 19% relative to the fourth quarter of 2020, 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 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 fourth quarter of 2021, the
Stillwater
mines produced 2,700 ounces of attributable gold and 4,700 ounces of attributable palladium, a decrease of approximately 19% for gold and 17% for palladium relative to the fourth quarter of 2020 due to lower throughput.
San Dimas:
In the fourth quarter of 2021, San Dimas produced 13,700 ounces of attributable gold, an increase of approximately 18% relative to the fourth quarter of 2020
,
primarily due to the mining of higher-grade material.
Other Gold:
In the fourth quarter of 2021, total Other Gold attributable production was 8,400 ounces, an increase of approximately 131% relative to the fourth quarter of 2020, primarily due to the mining of higher-grade material at
Minto
.
Other Silver:
In the fourth quarter of 2021, total Other Silver attributable production was 2.3 million ounces, an increase of approximately 9% relative to the fourth quarter of 2020, primarily due to higher production at Neves-Corvo and the newly acquired Cozamin stream, partially offset by lower production at Yauliyacu and Aljustrel.
Voisey’s Bay:
In the fourth quarter of 2021, the Voisey’s Bay mine produced 381 thousand pounds of attributable cobalt.
As per Vale’s Fourth Quarter 2021 Performance Report, physical completion of the Voisey’s Bay underground mine extension, which includes developing two underground mines –
Reid Brook
and Eastern Deeps – was 67% at the end of the fourth quarter.
As per Vale, production commenced from
Reid Brook
in the second quarter of 2021, and the start-up of Eastern Deeps is expected by the second half of 2022.
Produced But Not Yet Delivered
4
and Inventory
As at
December 31, 2021
, payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:
-
85,900 payable gold ounces, an increase of 5,100 ounces during Q4 2021
, primarily due to an increase during the period at the
Sudbury
and Constancia mines.
-
4.2 million payable silver ounces, an increase of 0.4 million ounces during Q4 2021.
-
5,600 payable palladium ounces, virtually unchanged during Q4 2021.
-
596 thousand payable cobalt pounds, virtually unchanged during Q4 2021.
As of
December 31, 2021
, 657 thousand pounds of cobalt were held in inventory by Wheaton, an increase of 169 thousand pounds during Q4 2021.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.
Corporate Development
Fenix Gold PMPA:
On
November 15, 2021
, the Company entered into the previously disclosed PMPA with Rio2 Limited (“Rio2”) in connection with the Fenix Gold Project located in
Chile
.
Blackwater PMPA
:
On
December 13, 2021
, the Company entered into a PMPA with Artemis Gold Inc. (“Artemis”) in respect of silver production from the Blackwater Gold Project located in
British Columbia, Canada
. Under the PMPA, Wheaton will be entitled to receive 50% of the payable silver production until 17.8 million ounces (“Moz”) have been delivered, thereafter dropping to 33% of payable silver production for the life of the mine. The Company is committed to pay total upfront consideration of
$141 million
for this stream, payable in four equal installments during the construction of Blackwater, subject to customary conditions being satisfied. In addition, Wheaton will make ongoing cash payments equal to 18% of the spot silver price per ounce of silver delivered under the agreement until the value of silver delivered, net of the per ounce production payment for silver, is equal to the upfront consideration of
$141 million
, and 22% of the spot price of silver thereafter.
Additionally, on
December 13, 2021
, the Company announced that it had entered into a definitive agreement to acquire the existing gold stream held by New Gold Inc. (“New Gold”) in respect of gold production from Blackwater. Under this agreement, Wheaton will be entitled to receive 8% of the payable gold production until 279,908 ounces have been delivered, thereafter dropping to 4% of payable gold production for the life of the mine. The Company paid
$300 million
for the stream. In addition, Wheaton will make ongoing production payments equal to 35% of the spot gold price per ounce of gold delivered under the agreement.
Subsequent to the Quarter – 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 150,000 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 a 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. 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
(the “Goose Project”). 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.
Reserves and Resources
(at
December 31, 2021
)
-
Proven and Probable Mineral Reserves attributable to Wheaton were 14.01 million ounces of gold compared with 11.71 million ounces as reported in Wheaton’s 2020 Annual Information Form (“AIF”), an increase of 20% (primarily due to recently added PMPAs and increases at Salobo); 567.9 million ounces of silver compared with 550.3 million ounces, an increase of 3%; 0.63 million ounces palladium compared with 0.64 million ounces, a decrease of 2%; 31.4 million pounds of cobalt compared to 31.7 million pounds, a decrease of 1%; and first time reporting of platinum of 0.17 million ounces. On a GEO
3
basis, total Proven and Probable Mineral Reserves for all metals attributable to Wheaton were 22.98 million ounces, an increase of 13%.
-
Measured and Indicated Mineral Resources attributable to Wheaton were 5.34 million ounces of gold compared with 4.50 million ounces as reported in Wheaton’s 2020 AIF, an increase of 18%; 766.6 million ounces of silver compared with 743.0 million ounces, an increase of 3%; 0.12 million ounces of palladium compared to 0.03 million ounces, an increase of 318%; 1.5 million pounds of cobalt remained the same as 2020; and first time reporting of platinum of 0.097 million ounces. On a GEO
3
basis, total Measured and Indicated Mineral Resources for all metals attributable to Wheaton were 15.78 million ounces, an increase of 9%.
-
Inferred Mineral Resources attributable to Wheaton were 4.96 million ounces of gold compared with 4.46 million ounces as reported in Wheaton’s 2020 AIF, an increase of 11%; 464.0 million ounces of silver compared with 469.5 million ounces, a decrease of 1%, 0.35 million ounces of palladium compared with 0.37 million ounces, a decrease of 7%; 6.8 million pounds of cobalt compared to 7.6, a decrease of 10%; and first time report of platinum of 0.017 million ounces. On a GEO
3
basis, total Inferred Mineral Resources for all metals attributable to Wheaton were 11.69 million ounces, an increase of 3%.
Estimated attributable reserves and resources contained in this press release are based on information available to the Company as of
March 9, 2022
, and therefore will not reflect updates, if any, after that date. Updated reserves and resources data incorporating year-end 2021 estimates will also be included in the Company’s 2021 Annual Information Form. Wheaton’s most current attributable reserves and resources, as of
December 31, 2021
, can be found on the Company’s website at
www.wheatonpm.com
.
Sustainability
Climate Change Commitments:
Subsequent to the quarter, Wheaton announced the adoption of a climate change policy and commitment to net zero carbon emissions by 2050. 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 established a
fund to support our mining partners’ efforts to move to renewable energy sources and reduce emissions at the mines in which we have an interest.
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 fourth quarter of 2021, the second phase of the Agricultural and Livestock Development Program run by Hudbay in
Peru
was completed. The program, aimed at improving all aspects of the production chain related to the raising of livestock in rural communities, provided nutritional support to nearly 37,000 animals during the fourth quarter alone.
COVID-19 Community Support and Response Fund:
In the second quarter of 2020, Wheaton announced the launch of a
$5 million
Community Support and Response Fund (the “CSR Fund”) to support global efforts to combat the social and economic impact of the COVID-19 pandemic. The CSR Fund is designed to meet the immediate needs of the communities in which Wheaton and its mining partners operate. This fund is incremental to Wheaton’s already active Community Investment Program that currently provides support to over 50 programs in multiple communities around the world. As of
December 31, 2021
, the Company has made donations totaling approximately
$4.6 million
through the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on
Friday, March 11, 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:
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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
March 18, 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:
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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,
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
.
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.
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
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Consolidated Statements of Earnings
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Consolidated Balance Sheets
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Consolidated Statements of Cash Flows
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|||
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|
|||
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|
|||
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|||
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|||
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|||
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|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
Summary of Units Produced
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
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||||||||
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||||||||
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||||||||
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||||||||
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||||||||
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||||||||
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of Units Sold
|
|
|
|
|
|
|
|
|
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|
|
||||||||
|
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||||||||
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||||||||
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||||||||
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||||||||
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||||||||
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||||||||
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||||||||
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|
|
|
Results of Operations
The operating results of the Company’s reportable operating segments are summarized in the tables and commentary below.
|
|
||||||||||||||||||||
|
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||||||||||
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||||||||||||||||||||
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|||||||||
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|||||||||
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|||||||||
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|||||||||
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||||||||||||||||||||
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|||||||||
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|||||||||
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|||||||||
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||||||||||||||||||||
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||||||||||||||||||||
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||||||||
|
|
||||||||||||||||||||
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||||||||||||||||
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||||||||||||||||||
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||||||||||||||||||
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||||||||||||||||||
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||||||||||||||
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|||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended
December 31, 2021
were as follows:
|
|
||||||||||||
|
|
|
|
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|
||||||
|
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||||||||||||||||
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||||||||
|
|
||||||||||||||||
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|||||||
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|||||||
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|||||||
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|||||||
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|||||||
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||||||||||||||||
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|||||||
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|||||||
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|||||||
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||||||||||||||||
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||||||||||||||||
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||||||||
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||||||||||||||||
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||||||||||||
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||||||||||||||
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||||||||||||||
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||||||||||||||
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||||||||||
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|||||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
On a gold equivalent and silver equivalent basis, results for the Company for the three months ended
December 31, 2020
were as follows:
|
|
||||||||||||
|
|
|
|
|
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|
||||||
|
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|||||||||||||||||||||
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|||||||||||
|
|
|||||||||||||||||||||
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||||||||||
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||||||||||
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||||||||||
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||||||||||
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||||||||||
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||
|
|
|||||||||||||||||||||
|
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|
||||||||||
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||||||||||
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||||||||||
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||
|
|
|||||||||||||||||||||
|
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|
|||||||||||||||||||||
|
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|
|||||||||
|
|
|||||||||||||||||||||
|
|
|
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|
|
|||||||||||||||||
|
|
|
|
|||||||||||||||||||
|
|
|
|
|||||||||||||||||||
|
|
|
|
|||||||||||||||||||
|
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|
|
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|
|
|||||||||||||||
|
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|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On a gold equivalent and silver equivalent basis, results for the Company for the year ended
December 31, 2021
were as follows:
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
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|
||||||||||||||||
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||||||||
|
|
||||||||||||||||
|
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|||||||
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|||||||
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|||||||
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|
|||||||
|
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|||||||
|
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|
|
||||||||||||||||
|
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|
|||||||
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|||||||
|
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|
|||||||
|
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|
|
||||||||||||||||
|
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|
|
||||||||||||||||
|
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|
|
||||||||
|
|
||||||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
|
||||||||||||||
|
|
|
|
||||||||||||||
|
|
|
|
||||||||||||||
|
|
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|
|
|
||||||||||
|
|
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|
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|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On a gold equivalent and silver equivalent basis, results for the Company for the year ended
December 31, 2020
were as follows:
|
|
||||||||||||
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share (basic and diluted).
|
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The following table provides a reconciliation of operating cash flow per share (basic and diluted).
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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.
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The following table provides a reconciliation of cash operating margin.
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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 audits for taxation years subsequent to 2015,
the Company’s assessment of the impact of any tax reassessments,
the Company’s intention to file future tax returns in a manner consistent with the CRA Settlement, 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, 2020
and Form 6-K filed
March 10, 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.
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, 2021
, which will be filed on or about
March 31, 2022
and other continuous disclosure documents filed by Wheaton since
January 1, 2022
, available on SEDAR at
www.sedar.com
. 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 terms “mineral reserve”, “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms defined in accordance with 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”). In addition, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in and required to be disclosed by NI 43-101. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. “Inferred mineral resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations. The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”). These amendments became effective
February 25, 2019
(the “SEC Modernization Rules”) with compliance required for the first fiscal year beginning on or after
January 1, 2021
. Under the SEC Modernization Rules, the historical property disclosure requirements for mining registrants included in SEC Industry Guide 7 will be rescinded and replaced with disclosure requirements in subpart 1300 of SEC Regulation S-K. Following the transition period, as a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system, the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101. As a result of the adoption of the SEC Modernization Rules, the SEC will recognize estimates of “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources.” In addition, the SEC has amended its definitions of “proven mineral reserves” and “probable mineral reserves” to be “substantially similar” to the corresponding definitions under the CIM Definition Standards that are required under NI 43-101. However, while the above terms are “substantially similar” to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. 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 under the SEC Modernization Rules. 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
.
View original content:
https://www.prnewswire.com/news-releases/wheaton-precious-metals-announces-record-revenue-earnings-and-operating-cash-flow-for-2021-301500594.html
SOURCE Wheaton Precious Metals Corp.
