WHEATON PRECIOUS METALS ANNOUNCES SOLID START TO 2022

    Author StreetSignalsPosted on Categories Metals & MiningTags , , , , , , , , , , , , , , , , , , , , , , ,

    <br /> WHEATON PRECIOUS METALS ANNOUNCES SOLID START TO 2022<br />

    PR Newswire

    TSX | NYSE | LSE: WPM

    Designated News Release


    FIRST QUARTER 2022 FINANCIAL RESULTS


    VANCOUVER, BC

    ,

    May 5, 2022

    /PRNewswire/ – “Wheaton once again had a solid start to the year, generating over

    $210 million

    in operating cash flow and continuing to return value to our shareholders through our competitive dividend,” said

    Randy Smallwood

    , President and Chief Executive Officer of Wheaton Precious Metals. “In the first three months of 2022, we added two new streams and increased our interest in a pre-existing stream. In addition, we took a significant step in strengthening our environmental, social and governance strategy by formalizing our climate change policy, including setting a goal of reaching net zero carbon emissions by 2050. The year is off to a good start, and I look forward to advancing on all of our initiatives throughout the year in order to continue building a strong, sustainable business, that delivers value and growth to all of our stakeholders.”


    First Quarter 2022 Highlights:

    • Over

      $305 million

      in revenue and

      $210 million

      in operating cash flow during the quarter, resulting in a net cash balance of

      $376 million

      as at

      March 31, 2022

      .

    • $158 million

      in adjusted net earnings

      1

      during the first quarter of 2022.
    • Announced a new precious metal purchase agreement (“PMPA”) on Adventus Mining Corporation’s Curipamba Project in respect of gold and silver production.
    • Announced PMPA on

      Sabina Gold

      & Silver Corp.’s Goose Project in respect of gold production.
    • Amended the PMPA on Aris Gold Corp.’s Marmato Mine, increasing the gold stream in exchange for additional upfront consideration.
    • Adopted a climate change policy and commitment to net zero carbon emissions by 2050.
    • Declared quarterly dividend

      1

      of

      $0.15

      per common share, an increase of 7% relative to the comparable period in 2021.


    Operational Overview


    (all figures in US dollars unless otherwise noted)


    Q1 2022


    Q1 2021


    Change



    Units produced


    Gold ounces


    79,087


    78,529


    0.7 %


    Silver ounces


    6,206


    6,765


    (8.3)%


    Palladium ounces


    4,488


    5,769


    (22.2)%


    Cobalt pounds


    234


    1,162


    (79.8)%


    Gold equivalent ounces

    2


    171,367


    196,756


    (12.9)%



    Units sold


    Gold ounces


    77,901


    75,104


    3.7 %


    Silver ounces


    5,553


    6,657


    (16.6)%


    Palladium ounces


    4,075


    5,131


    (20.6)%


    Cobalt pounds


    511


    132


    286.7 %


    Gold equivalent ounces



    2


    166,065


    172,271


    (3.6)%



    Revenue


    $


    307,244


    $


    324,119


    (5.2)%



    Net earnings


    $


    157,467


    $


    162,002


    (2.8)%


    Per share


    $


    0.349


    $


    0.360


    (3.1)%



    Adjusted net earnings


    1


    $


    158,007


    $


    161,132


    (1.9)%


    Per share


    1


    $


    0.350


    $


    0.358


    (2.2)%



    Operating cash flows


    $


    210,540


    $


    232,154


    (9.3)%


    Per share

    1


    $


    0.467


    $


    0.516


    (9.5)%


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

    [1]


    [2]


    Financial Review



    Revenues



    Revenue was

    $307 million

    in the first quarter of 2022 representing a 5% decrease from the first quarter of 2021 due primarily to a 4% decrease in the number of GEOs² sold.



    Cash Costs and Margin



    Average cash costs¹ in the first quarter of 2022 were

    $421

    per GEO² as compared to

    $457

    in the first quarter of 2021. This resulted in a cash operating margin¹ of

    $1,429

    per GEO² sold, virtually unchanged as compared with the first quarter of 2021.


    Balance Sheet


    (at



    March 31, 2022



    )

    • Approximately

      $376 million

      of cash on hand.
    • The Company’s

      $2 billion

      revolving term loan (the “Revolving Facility”) remains fully undrawn.
    • The Company is well positioned to fund all outstanding commitments as well as providing flexibility to acquire additional accretive mineral stream interests.


    First


    Quarter Asset Highlights



    Salobo:


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

    As per Vale’s First Quarter 2022 Performance Report, on

    January 6, 2022

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



    Antamina

    :

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



    Constancia

    :

    In the first quarter of 2022, Constancia produced 0.5 million ounces of attributable silver and 6,300 ounces of attributable gold, an increase of approximately 25% and 157%, respectively, relative to the first quarter of 2021. Silver production increased primarily due to higher throughput and grades. The increase in gold production was primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%.




    Sudbury


    :

    In the first quarter of 2022, Vale’s

    Sudbury

    mines produced 6,400 ounces of attributable gold, a decrease of approximately 9% relative to the first quarter of 2021 primarily due to lower throughput as a result of the temporary closure of the Totten mine. As per Vale, on

    September 26, 2021

    , a large piece of equipment, called a bucket scoop, blocked and damaged the mine shaft resulting in its temporary closure. Vale has reported that production at the Totten mine, which accounts for approximately 15% to 20% of the Company’s attributable gold production from

    Sudbury

    , resumed in the first quarter of 2022 and that operations at the

    Sudbury

    mines are expected to normalize in the second quarter of 2022.




    Stillwater


    :

    In the first quarter of 2022, the

    Stillwater

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




    San Dimas


    :

    In the first quarter of 2022,

    San Dimas

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

    Tayoltita

    community.



    Other Gold

    :

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

    June 2022

    .



    Other Silver:


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



    Voisey’s Bay:


    In the first quarter of 2022, the Voisey’s Bay mine produced 234 thousand pounds of attributable cobalt, a decrease of approximately 80% relative to the first quarter of 2021. The apparent significant decrease relative to the first quarter of 2021 was primarily attributed to Wheaton being contractually entitled to any cobalt processed at the Long Harbour Processing Plant as of

    January 1, 2021

    , resulting in reported production in the first quarter of 2021 including some material produced at the Voisey’s Bay Mine from prior periods. As per Vale’s First Quarter 2022 Performance Report, physical completion of the Voisey’s Bay underground mine extension was 70% at the end of the first quarter.


    Produced But Not Yet Delivered

    3

    and Inventory

    As at

    March 31, 2022

    , payable ounces and pounds attributable to the Company produced but not yet delivered amounted to:

    • 82,400 payable gold ounces, a decrease of 2,600 ounces during Q1 2022, primarily due to decreases at the Constancia and 777 mines partially offset by an increase at the

      Sudbury

      mines.
    • 3.9 million payable silver ounces, a decrease of 0.3 million ounces during Q1 2022.
    • 5,500 payable palladium ounces, virtually unchanged during Q1 2022.
    • 550 thousand payable cobalt pounds, virtually unchanged during Q1 2022.

    As of

    March 31, 2022

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

    Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton’s consolidated MD&A in the ‘Results of Operations and Operational Review’ section.


    Corporate Development



    Curipamba PMPA

    :

    On

    January 17, 2022

    , the Company entered into a PMPA with Adventus Mining Corporation (“Adventus”) in respect of the Curipamba Project (“Curipamba”) located in

    Ecuador

    . Under the Curipamba PMPA, Wheaton will purchase 50% of the payable gold production until 145,000 ounces have been delivered, thereafter dropping to 33% of payable gold production for the life of the mine and 75% of the payable silver production until 4.6 million ounces have been delivered, thereafter dropping to 50% for the life of mine. Under the terms of the agreement, the Company is committed to pay Adventus total upfront cash consideration of

    $175.5 million

    ,

    $13 million

    of which is available pre-construction and

    $500,000

    of which will be paid to support certain local community development initiatives around Curipamba. The remainder will be payable in four staged installments during construction, subject to various customary conditions being satisfied. In addition, Wheaton will make ongoing production payments for the gold and silver ounces delivered equal to 18% of the spot prices until the value of gold and silver delivered, net of the production payment, is equal to the upfront consideration of

    $175.5 million

    , at which point the production payment will increase to 22% of the spot prices.



    Marathon


    PMPA

    :

    On

    January 26, 2022

    , the Company entered into the previously announced PMPA with Generation Mining Limited (“Gen Mining”) in respect of the Marathon Project located in

    Ontario, Canada

    . Under the Marathon PMPA, Wheaton will purchase 100% of the payable gold production until 150,000 ounces have been delivered, thereafter dropping to 67% of payable gold production for the life of the mine and 22% of the payable platinum production until 120,000 ounces have been delivered, thereafter dropping to 15% for the life of mine. Under the terms of the agreement, the Company has committed to pay Gen Mining total upfront cash consideration of

    C$240 million

    ,

    C$40 million

    of which will be paid prior to construction and to be used for the development of the Marathon Project, with the remainder payable in four staged installments during construction, subject to various customary conditions being satisfied and pre-determined completion tests. Of this amount,

    $16 million

    (

    C$20 million

    ) was paid on

    March 31, 2022

    . In addition, Wheaton will make ongoing production payments for the gold and platinum ounces delivered equal to 18% of the spot prices until the value of gold and platinum delivered, net of the production payment, is equal to the upfront consideration of

    C$240 million

    , at which point the production payment will increase to 22% of the spot prices.



    Goose PMPA

    :

    On

    February 8, 2022

    , the Company announced that it had entered into a PMPA with

    Sabina Gold

    & Silver Corp. (“Sabina”) in respect of the Goose Project, part of Sabina’s Back River Gold District located in

    Nunavut, Canada

    . Under the Goose PMPA, Wheaton will purchase 4.15% of the payable gold production until 130,000 ounces have been delivered, thereafter dropping to 2.15% until 200,000 ounces have been delivered, thereafter dropping to 1.5% of the payable gold production. Under the terms of the agreement, the Company has committed to pay Sabina an upfront payment of

    $125 million

    in four equal installments during construction of the Goose Project, subject to customary conditions. In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot gold price until the value of gold, net of the production payment is equal to the upfront consideration of

    $125 million

    , at which point the production payment will increase to 22% of the spot gold price.



    Amendment to the Marmato PMPA:


    On

    March 21, 2022

    , the Company amended its PMPA with Aris Gold Corporation (“Aris Gold”) in respect of the Marmato mines. Under the amended terms, Wheaton will purchase 10.5% of the gold production and 100% of the silver production from the Marmato Upper and Lower mines until 310,000 ounces of gold and 2.15 million ounces of silver have been delivered, after which the stream drops to 5.25% of the gold production and 50% of the silver production for the life of mine. This increases the gold stream from the original Marmato PMPA under which Wheaton was entitled to purchase 6.5% of the gold production until 190,000 ounces were delivered, after which the stream was to drop to 3.25% of the gold production. The silver stream is unchanged. Under the terms of the amended Marmato PMPA, the Company is committed to pay

    Aris Gold

    total upfront cash payments of

    $175 million

    (

    $65 million

    relating to the increase in the gold stream). Of this amount,

    $53 million

    (

    $15 million

    relating to the increase in the gold stream) has been paid and the remaining amount is payable during the construction of the Marmato Lower Mine, subject to customary conditions.


    Sustainability



    Climate Change Commitments:


    On

    February 9, 2022

    , Wheaton announced the adoption of a Climate Change and Environmental Policy and commitment to net zero carbon emissions by 2050[4]. As part of this policy, Wheaton plans to establish targets across both Scope 2 and Scope 3 attributable emissions to support a 1.5° C trajectory. The Company has also committed an initial

    $4M

    to support our mining partners’ efforts to move to renewable energy sources and reduce emissions at the mines in which we have an interest.



    San Dimas Receives Recognition for Sustainability Efforts:


    The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic Silver Corp.’s (“First Majestic”)

    San Dimas

    mining unit the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This distinction from within the Mexican community recognizes excellence in environmental and social responsibility and ethical management.



    Partner Community Investment Program:


    Wheaton continues to support a wide range of programs with mining partners including Vale, Glencore, Hudbay and First Majestic Silver, focused on education, health, entrepreneurial support, and community engagement opportunities in the communities near the mines from which Wheaton receives precious metals. In the first quarter of 2022, all Partner Community Investment programs continued to operate as planned such as the continued enrollment of existing schoolteachers and administrators into the Enseña

    Peru

    training program, aimed at improving the academic performance for students living close to the Antamina mine.  During the quarter, the Wheaton team focused on engaging with partners on identifying and selecting programs and initiatives to be supported by Wheaton for 2022 and beyond.


    About Wheaton Precious Metals Corp. and Outlook

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

    Wheaton’s estimated attributable production in 2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000 to 48,000 GEOs

    2

    of other metals, resulting in production of approximately 700,000 to 760,000 GEOs

    2

    , unchanged from previous guidance. For the five-year period ending in 2026, the Company estimates that average production will amount to 850,000 GEOs

    2

    , while for the ten-year period ending in 2031, the Company estimates that average annual production will amount to 910,000 GEOs

    2

    , also unchanged from previous guidance.


    Webcast and Conference Call Details

    A conference call and webcast will be held on

    Friday, May 6, 2022

    starting at

    8:00am PT

    /

    11:00 am ET

    to discuss these results. To participate in the live call please use one of the following methods:

    Dial toll free from

    Canada

    or the US:             1-888-664-6383

    Dial from outside

    Canada

    or the US:             1-416-764-8650

    Pass code:                                                     78834538

    Live webcast:

    Webcast URL

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

    The accompanying slideshow will also be available in PDF format on the ‘Presentations’ page of the Wheaton Precious Metals

    website

    before the conference call.

    The conference call will be recorded and available until

    May 13, 2022

    at

    11:59 pm ET

    . The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:

    Dial toll free from

    Canada

    or the US:             1-888-390-0541

    Dial from outside

    Canada

    or the US:             1-416-764-8677

    Pass code:                                                      834538 #

    Archived webcast:

    Webcast URL

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

    www.sedar.com

    .

    Mr.

    Wes Carson

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

    Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by

    United States

    domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website.

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


    End Notes


    __________________________________



    1


    Please refer to non-IFRS measures at the end of this press release. Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. Details of the dividend can be found in the Wheaton’s news release date May 5, 2022, titled “Wheaton Precious Metals Declares Quarterly Dividend.”




    2

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



    3


    Payable gold, silver and palladium ounces and cobalt pounds produced but not yet delivered are based on management estimates only and rely upon information provided by the owners and operators of mining operations and may be revised and updated in future periods as additional information is received.




    4

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

    Condensed Interim

    Consolidated Statements of Earnings


    Three Months Ended

    March 31


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



    2022


    2021


    Sales


    $


    307,244


    $


    324,119


    Cost of sales


    Cost of sales, excluding depletion


    $


    69,994


    $


    78,783


    Depletion


    57,402


    70,173


    Total cost of sales


    $


    127,396


    $


    148,956


    Gross margin


    $


    179,848


    $


    175,163


    General and administrative expenses


    9,403


    9,735


    Share based compensation


    9,902


    1,630


    Donations & community investments


    813


    606


    Earnings from operations


    $


    159,730


    $


    163,192


    Other (income) expense


    170


    119


    Earnings before finance costs and income taxes


    $


    159,560


    $


    163,073


    Finance costs


    1,422


    1,573


    Earnings before income taxes


    $


    158,138


    $


    161,500


    Income tax (expense) recovery


    (671)


    502


    Net earnings


    $


    157,467


    $


    162,002


    Basic earnings per share


    $


    0.349


    $


    0.360


    Diluted earnings per share


    $


    0.348


    $


    0.360


    Weighted average number of shares outstanding


    Basic


    450,915


    449,509


    Diluted


    451,953


    450,600

    Condensed Interim

    Consolidated Balance Sheets



    As at

    March 31


    As at

    December 31


    (US dollars in thousands – unaudited)



    2022


    2021



    Assets


    Current assets


    Cash and cash equivalents


    $


    376,163


    $


    226,045


    Accounts receivable


    27,939


    11,577


    Other


    9,875


    12,102


    Total current assets


    $


    413,977


    $


    249,724


    Non-current assets


    Mineral stream interests


    $


    5,894,884


    $


    5,905,797


    Early deposit mineral stream interests


    45,342


    34,741


    Mineral royalty interest


    6,606


    6,606


    Long-term equity investments


    92,194


    61,477


    Convertible notes receivable


    –


    17,086


    Property, plant and equipment


    5,183


    5,509


    Other


    11,847


    15,211


    Total non-current assets


    $


    6,056,056


    $


    6,046,427


    Total assets


    $


    6,470,033


    $


    6,296,151



    Liabilities


    Current liabilities


    Accounts payable and accrued liabilities


    $


    11,861


    $


    13,935


    Dividends payable


    67,687


    –


    Current portion of performance share units


    31,413


    14,807


    Current portion of lease liabilities


    830


    813


    Other


    150


    136


    Total current liabilities


    $


    111,941


    $


    29,691


    Non-current liabilities


    Lease liabilities


    1,868


    2,060


    Deferred income taxes


    121


    100


    Performance share units


    3,759


    11,498


    Pension liability


    2,883


    2,685


    Total non-current liabilities


    $


    8,631


    $


    16,343


    Total liabilities


    $


    120,572


    $


    46,034



    Shareholders’ equity


    Issued capital


    $


    3,711,294


    $


    3,698,998


    Reserves


    44,304


    47,036


    Retained earnings


    2,593,863


    2,504,083


    Total shareholders’ equity


    $


    6,349,461


    $


    6,250,117


    Total liabilities and shareholders’ equity


    $


    6,470,033


    $


    6,296,151

    Condensed Interim

    Consolidated Statements of Cash Flows


    Three Months Ended

    March 31


    (US dollars in thousands – unaudited)



    2022


    2021



    Operating activities


    Net earnings


    $


    157,467


    $


    162,002


    Adjustments for


    Depreciation and depletion


    57,795


    70,649


    Interest expense


    26


    262


    Equity settled stock based compensation


    1,342


    1,325


    Performance share units


    8,560


    305


    Pension expense


    158


    151


    Income tax expense (recovery)


    671


    (502)


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


    743


    950


    Fair value (gain) loss on convertible note receivable


    1,380


    (1,238)


    Investment income recognized in net earnings


    (194)


    (2)


    Other


    (1,514)


    593


    Change in non-cash working capital


    (15,918)


    (1,972)


    Cash generated from operations before income taxes and interest


    $


    210,516


    $


    232,523


    Income taxes recovered (paid)


    (32)


    (30)


    Interest paid


    (26)


    (341)


    Interest received


    82


    2


    Cash generated from operating activities


    $


    210,540


    $


    232,154



    Financing activities


    Bank debt repaid


    $


    –


    $


    (195,000)


    Share purchase options exercised


    5,772


    4,793


    Lease payments


    (200)


    (214)


    Cash (used for) generated from financing activities


    $


    5,572


    $


    (190,421)



    Investing activities


    Mineral stream interests


    $


    (45,252)


    $


    (151,019)


    Early deposit mineral stream interests


    (750)


    (750)


    Mineral royalty interest


    –


    (3,561)


    Acquisition of long-term investments


    (20,135)


    –


    Proceeds on disposal of long-term investments


    –


    112,188


    Dividends received


    112


    –


    Other


    (36)


    (134)


    Cash (used for) generated from investing activities


    $


    (66,061)


    $


    (43,276)


    Effect of exchange rate changes on cash and cash equivalents


    $


    67


    $


    22


    Increase (decrease) in cash and cash equivalents


    $


    150,118


    $


    (1,521)


    Cash and cash equivalents, beginning of period


    226,045


    192,683


    Cash and cash equivalents, end of period


    $


    376,163


    $


    191,162


    Summary of Units Produced


    Q1 2022


    Q4 2021


    Q3 2021


    Q2 2021


    Q1 2021


    Q4 2020


    Q3 2020


    Q2 2020


    Gold ounces produced ²


    Salobo


    44,883


    48,235


    55,205


    55,590


    46,622


    62,854


    63,408


    59,104


    Sudbury

    3


    6,395


    4,379


    148


    4,563


    7,004


    6,659


    3,798


    9,257


    Constancia

    7


    6,311


    9,857


    8,533


    5,525


    2,453


    3,929


    3,780


    3,470


    San Dimas

    4, 7


    10,461


    13,714


    11,936


    11,478


    10,491


    11,652


    9,228


    6,074


    Stillwater

    5


    2,497


    2,664


    2,949


    2,962


    3,041


    3,290


    3,176


    3,222


    Other


    Minto


    4,060


    3,506


    1,703


    3,206


    2,638


    789


    1,832


    2,928


    777

    8


    4,003


    4,462


    4,717


    5,035


    6,280


    2,866


    5,278


    4,728


    Marmato


    477


    479


    433


    1,713


    –


    –


    –


    –


    Total Other


    8,540


    8,447


    6,853


    9,954


    8,918


    3,655


    7,110


    7,656


    Total gold ounces produced


    79,087


    87,296


    85,624


    90,072


    78,529


    92,039


    90,500


    88,783


    Silver ounces produced

    2


    Peñasquito

    7


    2,219


    2,145


    2,180


    2,026


    2,202


    2,014


    1,992


    967


    Antamina

    7


    1,260


    1,366


    1,548


    1,558


    1,577


    1,930


    1,516


    612


    Constancia

    7


    506


    578


    521


    468


    406


    478


    430


    254


    Other


    Los Filos

    7


    23


    37


    17


    26


    31


    6


    17


    14


    Zinkgruvan


    577


    482


    658


    457


    420


    515


    498


    389


    Yauliyacu

    7


    637


    382


    372


    629


    737


    454


    679


    273


    Stratoni

    9


    –


    129


    18


    164


    165


    185


    156


    148


    Minto


    45


    44


    25


    33


    21


    16


    15


    19


    Neves-Corvo


    344


    522


    362


    408


    345


    420


    281


    479


    Aljustrel


    287


    325


    314


    400


    474


    440


    348


    388


    Cozamin


    186


    213


    199


    183


    230


    –


    –


    –


    Marmato


    11


    7


    10


    39


    –


    –


    –


    –


    Keno Hill


    20


    30


    44


    55


    27


    –


    –


    –


    777

    8


    91


    96


    81


    83


    130


    51


    96


    108


    Total Other


    2,221


    2,267


    2,100


    2,477


    2,580


    2,087


    2,090


    1,818


    Total silver ounces produced


    6,206


    6,356


    6,349


    6,529


    6,765


    6,509


    6,028


    3,651


    Palladium ounces produced ²


    Stillwater

    5


    4,488


    4,733


    5,105


    5,301


    5,769


    5,672


    5,444


    5,759


    Cobalt pounds produced ²


    Voisey’s Bay


    234


    381


    370


    380


    1,162 ¹⁰


    –


    –


    –


    GEOs produced

    6


    171,367


    184,551


    183,012


    190,272


    196,756


    185,436


    177,230


    144,188


    SEOs produced

    6


    12,853


    13,841


    13,726


    14,270


    14,757


    13,908


    13,292


    10,814


    Average payable rate

    2


    Gold


    95.2%


    96.0%


    96.0%


    95.8%


    95.0%


    95.2%


    95.3%


    94.7%


    Silver


    86.1%


    86.0%


    86.6%


    86.9%


    86.6%


    86.3%


    86.1%


    81.9%


    Palladium


    92.7%


    92.2%


    94.5%


    95.0%


    91.6%


    93.6%


    94.0%


    90.8%


    Cobalt


    93.3%


    93.3%


    93.3%


    93.3%


    93.3%


    n.a.


    n.a.


    n.a.


    GEO

    6


    90.6%


    91.4%


    91.3%


    91.8%


    90.7%


    91.2%


    91.2%


    90.0%


    1)


    All figures in thousands except gold and palladium ounces produced.


    2)


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


    3)


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


    4)


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


    5)


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


    6)


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


    7)


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


    8)


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


    9)


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


    10)


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


    Summary of Units Sold


    Q1 2022


    Q4 2021


    Q3 2021


    Q2 2021


    Q1 2021


    Q4 2020


    Q3 2020


    Q2 2020


    Gold ounces sold


    Salobo


    42,513


    47,171


    35,185


    57,296


    51,423


    53,197


    59,584


    68,487


    Sudbury

    2


    3,712


    965


    1,915


    6,945


    3,691


    7,620


    7,858


    7,414


    Constancia

    6


    10,494


    6,196


    8,159


    2,321


    1,676


    3,853


    4,112


    3,024


    San Dimas

    6


    10,070


    15,182


    11,346


    11,214


    10,273


    11,529


    9,687


    6,030


    Stillwater

    3


    2,628


    2,933


    2,820


    2,574


    3,074


    3,069


    3,015


    3,066


    Other


    Minto


    3,695


    2,462


    1,907


    2,359


    2,390


    1,540


    –


    –


    777


    4,388


    4,290


    5,879


    5,694


    2,577


    5,435


    5,845


    4,783


    Marmato


    401


    423


    438


    1,687


    –


    –


    –


    –


    Total Other


    8,484


    7,175


    8,224


    9,740


    4,967


    6,975


    5,845


    4,783


    Total gold ounces sold


    77,901


    79,622


    67,649


    90,090


    75,104


    86,243


    90,101


    92,804


    Silver ounces sold


    Peñasquito

    6


    2,188


    1,818


    2,210


    1,844


    2,174


    1,417


    1,799


    1,917


    Antamina

    6


    1,468


    1,297


    1,502


    1,499


    1,930


    1,669


    1,090


    788


    Constancia

    6


    644


    351


    484


    295


    346


    442


    415


    254


    Other


    Los Filos

    6


    42


    17


    12


    42


    27


    –


    19


    25


    Zinkgruvan


    355


    346


    354


    355


    293


    326


    492


    376


    Yauliyacu

    6


    44


    551


    182


    601


    1,014


    15


    580


    704


    Stratoni


    133


    42


    41


    167


    117


    169


    134


    77


    Minto


    31


    27


    24


    29


    26


    20


    –


    –


    Neves-Corvo


    204


    259


    193


    215


    239


    145


    201


    236


    Aljustrel


    145


    133


    155


    208


    257


    280


    148


    252


    Cozamin


    177


    174


    170


    168


    173


    –


    –


    –


    Marmato


    8


    8


    10


    35


    –


    –


    –


    –


    Keno Hill


    27


    24


    51


    33


    12


    –


    –


    –


    777


    87


    69


    99


    109


    49


    93


    121


    100


    Total Other


    1,253


    1,650


    1,291


    1,962


    2,207


    1,048


    1,695


    1,770


    Total silver ounces sold


    5,553


    5,116


    5,487


    5,600


    6,657


    4,576


    4,999


    4,729


    Palladium ounces sold


    Stillwater

    3


    4,075


    4,641


    5,703


    3,869


    5,131


    4,591


    5,546


    4,976


    Cobalt pounds sold


    Voisey’s Bay


    511


    228


    131


    395


    132


    –


    –


    –


    GEOs sold

    4


    166,065


    157,439


    149,862


    176,502


    172,271


    152,613


    163,218


    161,664


    SEOs sold

    4


    12,455


    11,808


    11,240


    13,238


    12,920


    11,446


    12,241


    12,125


    Cumulative payable units PBND

    5


    Gold ounces


    82,350


    84,989


    80,819


    66,238


    70,072


    70,555


    75,750


    79,632


    Silver ounces


    3,893


    4,200


    3,845


    3,802


    3,738


    4,486


    3,437


    3,222


    Palladium ounces


    5,535


    5,629


    5,619


    6,822


    5,373


    5,597


    4,616


    4,883


    Cobalt pounds


    550


    596


    637


    777


    820


    –


    –


    –


    GEO

    4


    150,794


    158,477


    150,317


    139,145


    141,206


    136,894


    126,968


    128,291


    SEO

    4


    11,310


    11,886


    11,274


    10,436


    10,590


    10,267


    9,523


    9,622


    Inventory on hand


    Cobalt pounds


    410


    657


    488


    134


    132


    –


    –


    –


    1)


    All figures in thousands except gold and palladium ounces sold.


    2)


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


    3)


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


    4)


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


    5)


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


    6)


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


    Results of Operations

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


    Three Months Ended March 31, 2022


    Units

    Produced²


    Units

    Sold


    Average

    Realized

    Price

    ($’s

    Per Unit)


    Average

    Cash Cost

    ($’s Per

    Unit)

    3


    Average

    Depletion

    ($’s Per

    Unit)


    Sales


    Net

    Earnings


    Cash Flow

    From

    Operations


    Total

    Assets



    Gold


    Salobo


    44,883


    42,513


    $


    1,872


    $


    416


    $


    334


    $


    79,564


    $


    47,684


    $


    61,869


    $


    2,423,755


    Sudbury

    4


    6,395


    3,712


    1,861


    400


    1,092


    6,909


    1,370


    5,425


    303,115


    Constancia


    6,311


    10,494


    1,872


    412


    271


    19,641


    12,471


    15,482


    100,944


    San Dimas


    10,461


    10,070


    1,872


    618


    260


    18,846


    10,008


    12,621


    164,110


    Stillwater


    2,497


    2,628


    1,872


    329


    429


    4,918


    2,926


    4,054


    218,657


    Other

    5


    8,540


    8,484


    1,862


    771


    25


    15,797


    9,048


    8,822


    404,729


    79,087


    77,901


    $


    1,870


    $


    477


    $


    321


    $


    145,675


    $


    83,507


    $


    108,273


    $


    3,615,310



    Silver


    Peñasquito


    2,219


    2,188


    $


    24.10


    $


    4.36


    $


    3.57


    $


    52,727


    $


    35,387


    $


    43,188


    $


    314,217


    Antamina


    1,260


    1,468


    24.09


    4.94


    7.06


    35,359


    17,747


    27,759


    569,691


    Constancia


    506


    644


    24.10


    6.08


    6.33


    15,513


    7,526


    11,913


    201,811


    Other

    6


    2,221


    1,253


    24.52


    6.07


    3.45


    30,733


    18,797


    23,874


    589,875


    6,206


    5,553


    $


    24.19


    $


    5.10


    $


    4.78


    $


    134,332


    $


    79,457


    $


    106,734


    $


    1,675,594



    Palladium


    Stillwater


    4,488


    4,075


    $


    2,339


    $


    394


    $


    399


    $


    9,533


    $


    6,303


    $


    7,930


    $


    231,203



    Platinum


    Marathon


    –


    –


    $


    n.a.


    $


    n.a.


    $


    n.a.


    $


    –


    $


    –


    $


    –


    $


    4,820



    Cobalt


    Voisey’s Bay


    234


    511


    $


    34.61


    $


    5.76


    $


    8.17


    $


    17,704


    $


    10,581


    $


    3,263


    $


    367,957



    Operating results


    $


    307,244


    $


    179,848


    $


    226,200


    $


    5,894,884



    Other


    General and administrative


    $


    (9,403)


    $


    (15,128)


    Share based compensation


    (9,902)


    –


    Donations & community investments


    (813)


    (430)


    Finance costs


    (1,422)


    (1,077)


    Other


    (170)


    1,007


    Income tax


    (671)


    (32)


    Total other


    $


    (22,381)


    $


    (15,660)


    $


    575,149


    $


    157,467


    $


    210,540


    $


    6,470,033


    1)


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


    2)


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


    3)


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


    4)


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


    5)


    Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Rosemont, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests.


    6)


    Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama, Rosemont, Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021.

    On a gold equivalent and silver equivalent basis, results for the Company for the three months ended

    March 31, 2022

    were as follows:


    Three Months Ended March 31, 2022


    Ounces

    Produced

    1, 2


    Ounces

    Sold

    2


    Average

    Realized

    Price

    ($’s Per

    Ounce)


    Average

    Cash Cost

    ($’s Per

    Ounce)

    3



    Cash

    Operating

    Margin

    ($’s Per

    Ounce)

    4


    Average

    Depletion

    ($’s Per

    Ounce)



    Gross

    Margin

    ($’s Per

    Ounce)


    Gold equivalent basis

    5


    171,367


    166,065


    $    1,850


    $    421



    $    1,429


    $    346



    $    1,083


    Silver equivalent basis

    5


    12,853


    12,455


    $   24.67


    $   5.62



    $   19.05


    $   4.61



    $   14.44


    1)


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


    2)


    Silver ounces produced and sold in thousands.


    3)


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


    4)


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


    5)


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


    Three Months Ended March 31, 2021


    Units

    Produced²


    Units

    Sold


    Average

    Realized

    Price

    ($’s

    Per Unit)


    Average

    Cash Cost

    ($’s Per

    Unit)

    3


    Average

    Depletion

    ($’s Per

    Unit)


    Sales


    Net

    Earnings


    Cash Flow

    From

    Operations


    Total

    Assets



    Gold


    Salobo


    46,622


    51,423


    $


    1,796


    $


    412


    $


    374


    $


    92,356


    $


    51,946


    $


    71,163


    $


    2,490,127


    Sudbury

    4


    7,004


    3,691


    1,812


    400


    1,024


    6,688


    1,431


    5,219


    317,235


    Constancia


    2,453


    1,676


    1,796


    408


    315


    3,010


    1,798


    2,326


    105,041


    San Dimas


    10,491


    10,273


    1,796


    612


    322


    18,450


    8,851


    12,162


    178,891


    Stillwater


    3,041


    3,074


    1,796


    329


    397


    5,521


    3,290


    4,510


    223,090


    Other

    5


    8,918


    4,967


    1,812


    629


    –


    9,000


    5,878


    5,855


    7,591


    78,529


    75,104


    $


    1,798


    $


    450


    $


    374


    $


    135,025


    $


    73,194


    $


    101,235


    $


    3,321,975



    Silver


    Peñasquito


    2,202


    2,174


    $


    26.21


    $


    4.29


    $


    3.55


    $


    56,983


    $


    39,940


    $


    47,655


    $


    342,857


    Antamina


    1,577


    1,930


    26.21


    5.18


    7.53


    50,581


    26,058


    40,591


    612,401


    Constancia


    406


    346


    26.21


    6.02


    7.56


    9,072


    4,372


    6,988


    214,428


    Other

    6


    2,580


    2,207


    25.95


    9.41


    6.30


    57,247


    22,589


    39,098


    612,237


    6,765


    6,657


    $


    26.12


    $


    6.33


    $


    5.82


    $


    173,883


    $


    92,959


    $


    134,332


    $


    1,781,923



    Palladium


    Stillwater


    5,769


    5,131


    $


    2,392


    $


    427


    $


    442


    $


    12,275


    $


    7,813


    $


    10,084


    $


    239,118



    Cobalt


    Voisey’s Bay


    1,162


    132


    $


    22.19


    $


    4.98


    $


    8.17


    $


    2,936


    $


    1,197


    $


    (966)


    $


    225,348



    Operating results


    $


    324,119


    $


    175,163


    $


    244,685


    $


    5,568,364



    Other


    General and administrative


    $


    (9,735)


    $


    (12,664)


    Share based compensation


    (1,630)


    –


    Donations & community investments


    (606)


    (498)


    Finance costs


    (1,573)


    (1,229)


    Other


    (119)


    1,890


    Income tax


    502


    (30)


    Total other


    $


    (13,161)


    $


    (12,531)


    $


    360,048


    $


    162,002


    $


    232,154


    $


    5,928,412


    1)


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


    2)


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


    3)


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


    4)


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


    5)


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


    6)


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

    On a gold equivalent and silver equivalent basis, results for the Company for the three months ended

    March 31, 2021

    were as follows:


    Three Months Ended March 31, 2021


    Ounces

    Produced

    1, 2


    Ounces

    Sold

    2


    Average

    Realized

    Price

    ($’s Per

    Ounce)


    Average

    Cash Cost

    ($’s Per

    Ounce)

    3



    Cash

    Operating

    Margin

    ($’s Per

    Ounce)

    4


    Average

    Depletion

    ($’s Per

    Ounce)



    Gross

    Margin

    ($’s Per

    Ounce)


    Gold equivalent basis

    5


    196,756


    172,271


    $    1,881


    $    457



    $    1,424


    $    407



    $    1,017


    Silver equivalent basis

    5


    14,757


    12,920


    $   25.09


    $   6.10



    $   18.99


    $   5.43



    $   13.56


    1)


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


    2)


    Silver ounces produced and sold in thousands.


    3)


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


    4)


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


    5)


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


    Non-IFRS Measures


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


    i.


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


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


    Three Months Ended

    March 31


    (in thousands, except for per share amounts)



    2022


    2021


    Net earnings


    $


    157,467


    $


    162,002


    Add back (deduct):


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


    743


    950


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


    1,380


    (1,238)


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


    793


    1,568


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


    (194)


    (2,137)


    Other


    (2,182)


    (13)


    Adjusted net earnings


    $


    158,007


    $


    161,132


    Divided by:


    Basic weighted average number of shares outstanding


    450,915


    449,509


    Diluted weighted average number of shares outstanding


    451,953


    450,600


    Equals:


    Adjusted earnings per share – basic


    $


    0.350


    $


    0.358


    Adjusted earnings per share – diluted


    $


    0.350


    $


    0.358


    ii.


    Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metal mining industry who present results on a similar basis.


    The following table provides a reconciliation of operating cash flow per share (basic and diluted).


    Three Months Ended

    March 31


    (in thousands, except for per share amounts)



    2022


    2021


    Cash generated by operating activities


    $


    210,540


    $


    232,154


    Divided by:


    Basic weighted average number of shares outstanding


    450,915


    449,509


    Diluted weighted average number of shares outstanding


    451,953


    450,600


    Equals:


    Operating cash flow per share – basic


    $


    0.467


    $


    0.516


    Operating cash flow per share – diluted


    $


    0.466


    $


    0.515


    iii.


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


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


    Three Months Ended

    March 31


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



    2022


    2021


    Cost of sales


    $


    127,396


    $


    148,956


    Less:  depletion


    (57,402)


    (70,173)


    Cash cost of sales


    $


    69,994


    $


    78,783


    Cash cost of sales is comprised of:


    Total cash cost of gold sold


    $


    37,133


    $


    33,774


    Total cash cost of silver sold


    28,314


    42,160


    Total cash cost of palladium sold


    1,603


    2,191


    Total cash cost of cobalt sold


    2,944


    658


    Total cash cost of sales


    $


    69,994


    $


    78,783


    Divided by:


    Total gold ounces sold


    77,901


    75,104


    Total silver ounces sold


    5,553


    6,657


    Total palladium ounces sold


    4,075


    5,131


    Total cobalt pounds sold


    511


    132


    Equals:


    Average cash cost of gold (per ounce)


    $


    477


    $


    450


    Average cash cost of silver (per ounce)


    $


    5.10


    $


    6.33


    Average cash cost of palladium (per ounce)


    $


    394


    $


    427


    Average cash cost of cobalt (per pound)


    $


    5.76


    $


    4.98


    iv.


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


    The following table provides a reconciliation of cash operating margin.


    Three Months Ended

    March 31


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



    2022


    2021


    Total sales:


    Gold


    $


    145,675


    $


    135,025


    Silver


    $


    134,332


    $


    173,883


    Palladium


    $


    9,533


    $


    12,275


    Cobalt


    $


    17,704


    $


    2,936


    Divided by:


    Total gold ounces sold


    77,901


    75,104


    Total silver ounces sold


    5,553


    6,657


    Total palladium ounces sold


    4,075


    5,131


    Total cobalt pounds sold


    511


    132


    Equals:


    Average realized price of gold (per ounce)


    $


    1,870


    $


    1,798


    Average realized price of silver (per ounce)


    $


    24.19


    $


    26.12


    Average realized price of palladium (per ounce)


    $


    2,339


    $


    2,392


    Average realized price of cobalt (per pound)


    $


    34.61


    $


    22.19


    Less:


    Average cash cost of gold

    1

    (per ounce)


    $


    (477)


    $


    (450)


    Average cash cost of silver

    1

    (per ounce)


    $


    (5.10)


    $


    (6.33)


    Average cash cost of palladium

    1

    (per ounce)


    $


    (394)


    $


    (427)


    Average cash cost of cobalt

    1

    (per pound)


    $


    (5.76)


    $


    (4.98)


    Equals:


    Cash operating margin per gold ounce sold


    $


    1,393


    $


    1,348


    As a percentage of realized price of gold


    74%


    75%


    Cash operating margin per silver ounce sold


    $


    19.09


    $


    19.79


    As a percentage of realized price of silver


    79%


    76%


    Cash operating margin per palladium ounce sold


    $


    1,945


    $


    1,965


    As a percentage of realized price of palladium


    83%


    82%


    Cash operating margin per cobalt pound sold


    $


    28.85


    $


    17.21


    As a percentage of realized price of cobalt


    83%


    78%


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


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


    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

    This press release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation concerning the business, operations and financial performance of Wheaton and, in some instances, the business, mining operations and performance of Wheaton’s PMPA counterparties. Forward-looking statements, which are all statements other than statements of historical fact, include, but are not limited to, statements with respect to the future price of commodities, the estimation of future production from Mining Operations (including in the estimation of production, mill throughput, grades, recoveries and exploration potential), the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates) and the realization of such estimations, the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton’s PMPA counterparties at mineral stream interests owned by Wheaton (the “Mining Operations”), the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party’s obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements, the ability of Wheaton’s PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton’s PMPA counterparties) and the potential impacts of such on Wheaton, future payments by the Company in accordance with PMPAs, the costs of future production, the estimation of produced but not yet delivered ounces, the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks, future sales of common shares under the ATM program, continued listing of the Company’s common shares, any statements as to future dividends, the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs, including any acceleration of payments, projected increases to Wheaton’s production and cash flow profile, projected changes to Wheaton’s production mix, the ability of Wheaton’s PMPA counterparties to comply with the terms of any other obligations under agreements with the Company, the ability to sell precious metals and cobalt production, confidence in the Company’s business structure, the Company’s assessment of taxes payable and the impact of the CRA Settlement for years subsequent to 2010, possible domestic audits for taxation years subsequent to 2016 and international audits, the Company’s assessment of the impact of any tax reassessments, the Company’s intention to file future tax returns in a manner consistent with the CRA Settlement, the Company’s climate change and environmental commitments, and assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “projects”, “intends”, “anticipates” or “does not anticipate”, or “believes”, “potential”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the satisfaction of each party’s obligations in accordance with the terms of the Company’s PMPAs or royalty arrangements, risks associated with fluctuations in the price of commodities (including Wheaton’s ability to sell its precious metals or cobalt production at acceptable prices or at all), risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic), risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with the exploration, development, operating, expansion and improvement of the Mining Operations, environmental and economic risks of the Mining Operations, and changes in project parameters as plans continue to be refined), the absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the Mining Operations, uncertainty in the estimation of production from Mining Operations, uncertainty in the accuracy of mineral reserve and mineral resource estimation, the ability of each party to satisfy their obligations in accordance with the terms of the PMPAs, the estimation of future production from Mining Operations, Wheaton’s interpretation of, compliance with or application of, tax laws and regulations or accounting policies and rules being found to be incorrect, any challenge or reassessment by the CRA of the Company’s tax filings being successful and the potential negative impact to the Company’s previous and future tax filings, assessing the impact of the CRA Settlement for years subsequent to 2010 (including whether there will be any material change in the Company’s facts or change in law or jurisprudence), potential implementation of a 15% global minimum tax, counterparty credit and liquidity, mine operator concentration, indebtedness and guarantees, hedging, competition, claims and legal proceedings against Wheaton or the Mining Operations, security over underlying assets, governmental regulations, international operations of Wheaton and the Mining Operations, exploration, development, operations, expansions and improvements at the Mining Operations, environmental regulations, climate change, Wheaton and the Mining Operations ability to obtain and maintain necessary licenses, permits, approvals and rulings, Wheaton and the Mining Operations ability to comply with applicable laws, regulations and permitting requirements, lack of suitable supplies, infrastructure and employees to support the Mining Operations, inability to replace and expand mineral reserves, including anticipated timing of the commencement of production by certain Mining Operations (including increases in production, estimated grades and recoveries), uncertainties of title and indigenous rights with respect to the Mining Operations, environmental, social and governance matters, Wheaton and the Mining Operations ability to obtain adequate financing, the Mining Operations ability to complete permitting, construction, development and expansion, global financial conditions, Wheaton’s acquisition strategy and other risks discussed in the section entitled “Description of the Business – Risk Factors” in Wheaton’s Annual Information Form available on SEDAR at


    www.sedar.com


    , Wheaton’s Form 40-F for the year ended

    December 31, 2021

    and Form 6-K filed

    March 31, 2022

    both on file with the U.S. Securities and Exchange Commission on EDGAR (the “Disclosure”). Forward-looking statements are based on assumptions management currently believes to be reasonable, including (without limitation): that there will be no material adverse change in the market price of commodities, that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates, that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate, that each party will satisfy their obligations in accordance with the PMPAs, that Wheaton will continue to be able to fund or obtain funding for outstanding commitments, that Wheaton will be able to source and obtain accretive PMPAs, that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic), that any outbreak or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally, without such response requiring any prolonged closure of the Mining Operations or having other material adverse effects on the Company and counterparties to its PMPAs, that the trading of the Company’s common shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE, that the trading of the Company’s common shares will not be suspended, and that the net proceeds of sales of common shares, if any, will be used as anticipated, that expectations regarding the resolution of legal and tax matters will be achieved (including ongoing CRA audits involving the Company), that Wheaton has properly considered the interpretation and application of Canadian tax law to its structure and operations, that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax law, that Wheaton’s application of the CRA Settlement for years subsequent to 2010 is accurate (including the Company’s assessment that there will be no material change in the Company’s facts or change in law or jurisprudence for years subsequent to 2010), and such other assumptions and factors as set out in the Disclosure. There can be no assurance that forward-looking statements will prove to be accurate and even if events or results described in the forward-looking statements are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, Wheaton. Readers should not place undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking statements included herein are for the purpose of providing readers with information to assist them in understanding Wheaton’s expected financial and operational performance and may not be appropriate for other purposes. Any forward looking statement speaks only as of the date on which it is made, reflects Wheaton’s management’s current beliefs based on current information and will not be updated except in accordance with applicable securities laws. Although Wheaton has attempted to identify important factors that could cause actual results, level of activity, performance or achievements to differ materially from those contained in forward‑looking statements, there may be other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or intended.

    Cision
    View original content:

    https://www.prnewswire.com/news-releases/wheaton-precious-metals-announces-solid-start-to-2022-301541344.html

    SOURCE Wheaton Precious Metals Corp.

    PR Newswire
    May 5, 2022 – 2:06 PM PDT