REG - Wheaton Precious Met - Fourth Quarter and Full Year Financial Results
14/03/2025 07:00
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RNS Number : 6668A Wheaton Precious Metals Corp. 14 March 2025
March 13, 2025
Vancouver, British Columbia
Designated News Release
fourth QUARTER and full year FINANCIAL results
Wheaton Precious Metals Announces Record Revenue, Adjusted Net Earnings and
Operating Cash Flow for 2024
"Wheaton achieved record revenue, adjusted net earnings and operating cash
flow in 2024, driven by our diversified portfolio of high-quality and
long-life assets. We exceeded our production guidance for the year due to
outperformances at Salobo and Constancia and are proud to have returned a
record level of dividends to shareholders in 2024," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals. "In 2024,
Wheaton remained focused on accretive growth, delivering four new streams and
royalties and further reinforcing our industry-leading growth profile. This
impressive growth is readily apparent in our five-year production forecast,
where we estimate annual production increasing by 40% to 870,000 gold
equivalent ounces. As we enter 2025, we look forward to building off our
accomplishments from 2024, delivering on a consistent growth profile, and
ultimately creating lasting value for all stakeholders."
Solid Financial Results and Strong Balance Sheet
· Fourth quarter of 2024: A record $381 million in revenue, a record $319
million in operating cash flow, $88 million in net earnings and a record $199
million in adjusted net earnings 1 (#_edn1) . Declared a quarterly
dividend(1) of $0.155 per common share.
· Full year of 2024: A record $1,285 million in revenue, a record $1,028
million in operating cash flow, $529 million in net earnings and a record $640
million in adjusted net earnings(1.) Declared record annual dividends(1) of
$0.62 per common share.
· Balance Sheet: cash balance of $818 million, no debt, and an undrawn $2
billion revolving credit facility as at December 31, 2024.
High Quality Asset Base
· Streaming and royalty agreements on 18 operating mines and 28
development projects and other(5), including the addition of the Koné and
Kurmuk projects announced in the fourth quarter.
· Attributable gold equivalent production(3) ("GEOs") of 187,500 ounces
in the fourth quarter of 2024 and 635,000 for the full year of 2024, with
quarterly production increasing 14% relative to the comparable period of the
prior year as a result of higher production from Salobo and Peñasquito, with
gold production achieving record quarterly production.
· Exceeded the upper limits of the 2024 annual production guidance of
550,000 to 620,000 GEOs(3), primarily resulting from stronger than expected
production at Salobo due to higher gold grades and recoveries, and higher
grades at Constancia from the mining of the Pampacancha deposit.
· Further de-risked forecast growth profile as construction activities
advanced at a number of projects, including the Blackwater, Goose, Platreef,
and Mineral Park projects which are expected to be producing by the end of
2025.
· Accretive portfolio growth:
o On October 21, 2024, the Company amended the Fenix PMPA, increasing the
amount of attributable gold it is entitled to under the contract.
o On October 23, 2024, the Company entered into a precious metals purchase
agreement ("PMPA") with Montage Gold Corp. ("Montage") in respect to the
Koné Gold Project located in Côte d'Ivoire.
o On December 5, 2024, the Company entered into a PMPA with Allied Gold
Corporation ("Allied") in respect to the Kurmuk Project located in Ethiopia.
o Subsequent to the quarter, on March 7, 2025, the Company amended its PMPA
with Artemis Gold Inc. ("Artemis") in respect to the Blackwater project
located in Canada.
Leadership in Sustainability
· Top Rankings: One of the top-rated companies by Sustainalytics,
AAA rated by MSCI (upgraded in 2024 from AA to AAA, the highest possible
rating), and Prime rated by ISS.
· Subsequent to the quarter, awarded US$1 million to the winning
venture of the inaugural Future of Mining Challenge, ReThink Milling Inc., to
advance their Conjugate Anvil Hammer Mill ("CAHM") and MonoRoll technologies,
for their potential ability to lower energy use in the milling process.
· Subsequent to the quarter, Wheaton was recognized by Corporate
Knights as one of the 2025 Global 100 Most Sustainable Corporations, based
on a rigorous assessment of over more than 8,300 public companies with revenue
over US$1 billion.
Operational Overview
(all figures in US dollars unless otherwise noted) Q4 2024 Q4 2023 Change 2024 2023 Change
Units produced
Gold ounces 117,526 112,926 4.1 % 379,530 374,152 1.4 %
Silver ounces 5,740 4,206 36.5 % 20,807 17,191 21.0 %
Palladium ounces 2,797 4,209 (33.5)% 15,632 15,800 (1.1)%
Cobalt pounds 393 215 83.1 % 1,289 673 91.5 %
Gold equivalent ounces (3) 187,493 164,796 13.8 % 635,007 584,127 8.7 %
Units sold
Gold ounces 87,662 115,011 (23.8)% 332,701 327,336 1.6 %
Silver ounces 4,307 3,175 35.7 % 16,072 14,326 12.2 %
Palladium ounces 4,434 3,339 32.8 % 17,270 13,919 24.1 %
Cobalt pounds 485 288 68.4 % 970 1,074 (9.7)%
Gold equivalent ounces (3) 142,561 155,059 (8.1)% 532,468 506,020 5.2 %
Change in PBND and Inventory
Gold equivalent ounces (3) 29,293 (4,030) (33,323) 46,378 15,990 (30,388)
Revenue $ 380,516 $ 313,471 21.4 % $ 1,284,639 $ 1,016,045 26.4 %
Net earnings $ 88,148 $ 168,435 (47.7)% $ 529,140 $ 537,644 (1.6)%
Per share $ 0.194 $ 0.372 (47.8)% $ 1.167 $ 1.187 (1.7)%
Adjusted net earnings (1) $ 198,969 $ 164,569 20.9 % $ 640,170 $ 533,051 20.1 %
Per share (1) $ 0.439 $ 0.363 20.9 % $ 1.412 $ 1.177 20.0 %
Operating cash flows $ 319,471 $ 242,226 31.9 % $ 1,027,581 $ 750,809 36.9 %
Per share (1) $ 0.704 $ 0.535 31.6 % $ 2.266 $ 1.658 36.7 %
All amounts in thousands except gold, palladium & gold equivalent ounces,
and per share amounts.
Financial Review
Revenues
Revenue in the fourth quarter of 2024 was $381 million (62% gold, 35% silver,
1% palladium and 2% cobalt), with the $67 million increase relative to the
prior period quarter being primarily due to a 32% increase in the average
realized gold equivalent³ price; partially offset by an 8% decrease in the
number of GEOs³ sold.
Revenue was $1,285 million in the year ended December 31, 2024, representing a
$269 million increase from 2023 due primarily to a 20% increase in the average
realized gold equivalent³ price; and a 5% increase in the number of GEOs³
sold.
Cash Costs and Margin
Average cash costs¹ in the fourth quarter of 2024 were $441 per GEO³ as
compared to $437 in the fourth quarter of 2023. This resulted in a cash
operating margin¹ of $2,228 per GEO³ sold, an increase of 41% as compared
with the fourth quarter of 2023, a result of the higher realized price per
ounce.
Average cash costs¹ in 2024 were $436 per GEO³ as compared to $451 in 2023.
This resulted in a cash operating margin¹ of $1,977 per GEO³ sold, a 27%
increase from 2023, a result of the higher realized price per ounce coupled
with the lower average cash costs due to changes in the sales mix.
Cash Flow from Operations
Operating cash flow in the fourth quarter of 2024 amounted to $319 million,
with the $77 million increase due primarily to the higher gross margin.
Operating cash flows in 2024 amounted to $1,028 million, with the $277 million
increase from the comparable period of the previous year being due primarily
to the higher gross margin.
Voisey's Bay Impairment
On June 11, 2018, the Company entered into an agreement (the "Voisey's Bay
PMPA") to acquire from Vale an amount of cobalt equal to 42.4% of the cobalt
production from its Voisey's Bay mine, until the delivery of 31 million pounds
of cobalt and 21.2% of cobalt production thereafter for the life of mine for a
total upfront cash payment of $390 million.
At December 31, 2024, the Company determined there to be an impairment charge
relative to the Voisey's Bay PMPA due to a significant and sustained decline
in market cobalt prices. The Voisey's Bay PMPA had a carrying value at
December 31, 2024 of $340 million. Management estimated that the recoverable
amount at December 31, 2024 under the Voisey's Bay PMPA was $231 million,
representing its fair value less cost of disposal and resulting in an
impairment charge of $109 million. The recoverable amount related to the
Voisey's Bay PMPA was estimated using an average discount rate of 5.5% and the
market price of cobalt of $13.62 per pound.
Produced But Not Yet Delivered
As at December 31, 2024, approximately 163,600 GEO's(3) were produced but not
yet delivered representing approximately three months of payable production.
This build in PBND is an increase from the preceding four quarters and at the
upper end of our guided range of two to three months, due to a significant
increase in quarter-over-quarter production driven by increased production at
Peñasquito and Salobo, with Salobo representing a quarterly record.
Balance Sheet (at December 31, 2024)
· Approximately $818 million of cash on hand
· During the fourth quarter of 2024, the Company made total upfront cash
payments of $115 million relative to the mineral stream interests consisting
of:
o $44 million relative to the Kurmuk PMPA;
o $40 million relative to the Marmato PMPA;
o $25 million relative to the Mineral Park PMPA; and
o $6 million relative to the Cangrejos PMPA.
· During the fourth quarter of 2024, the Company received a repayment of
the upfront cash payment of $13 million relative to the El Domo PMPA, with
this amount to be re-advanced at a later date.
· With the existing cash on hand coupled with the fully undrawn $2
billion revolving credit facility, the Company believes it is well positioned
to fund all outstanding commitments and known contingencies as well as
providing flexibility to acquire additional accretive mineral stream
interests. Given the strength of Wheaton's balance sheet and forecasted cash
flows, the Company has elected to not renew its at-the-market equity program,
under which no shares have been issued as of December 31, 2024.
Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD
Pillar Two model rules ("Pillar Two"), under which large multinational
entities are subject to a 15% GMT. On June 20, 2024, Canada's Global Minimum
Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two
model rules where in scope companies are subject to a 15% GMT for fiscal years
commencing on or after December 31, 2023. With the enactment of the GMTA on
June 20, 2024, the income of the Company's subsidiaries which operate in
jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the
three months and year ended December 31, 2024 an amount of $35 million and
$114 million, respectively, current tax expense associated with GMT was
recorded. GMT accrued to December 31, 2024, is payable on or before June 30,
2026 (18 months following year-end).
Fourth Quarter Operating Asset Highlights
Salobo: In the fourth quarter of 2024, Salobo produced 84,300 ounces of
attributable gold, representing record quarterly production and an increase of
approximately 17% relative to the fourth quarter of 2023, primarily due to
higher throughput, grades and recovery. On January 28, 2025, Vale S.A.
("Vale") announced the completion of the Salobo III ramp-up and improved
performance at Salobo I and II.
On March 4, 2025, Vale informed the Company that it had achieved a sustained
throughput capacity of over 35 Mtpa over a 90-day period, indicating
completion of the second phase of the Salobo III expansion project. Pending
review of the final completion test by the Company, Wheaton anticipates
advancing the remaining balance of the expansion payment to Vale, in the
amount of $144 million within thirty days of the date of receipt.
Antamina: In the fourth quarter of 2024, Antamina produced 0.9 million ounces
of attributable silver, a decrease of approximately 8% relative to the fourth
quarter of 2023 primarily due to lower throughput, partially offset by higher
recoveries.
Peñasquito: In the fourth quarter of 2024, Peñasquito produced 2.5 million
ounces of attributable silver, an increase of approximately 138% relative to
the fourth quarter of 2023, as prior year operations were impacted by a labour
strike which began on June 7, 2023 and ended on October 13, 2023 with the safe
ramp-up of operations beginning after the end of the strike. On February 20,
2025, Newmont Corporation ("Newmont") announced that co-product production in
2025 is expected to decline as mining moves back into the Peñasco pit which
contains lower silver grades relative to the Chile Colorado pit.
Constancia: In the fourth quarter of 2024, Constancia produced 1.0 million
ounces of attributable silver and 18,200 ounces of attributable gold, an
increase of approximately 16% for silver production and a decrease of
approximately 18% for gold production relative to the fourth quarter of 2023.
The increase in silver production, which represented a quarterly record, was
primarily due to higher grades. The decrease in gold production was primarily
the result of lower gold grades as more material was mined from Constancia and
reclaimed from the stockpile compared with the prior year. On February 19,
2025, Hudbay Minerals Inc. ("Hudbay") announced that gold production in 2025
is expected to be lower than 2024 levels as additional high grade gold benches
were mined in late 2024, ahead of schedule, resulting in gold production
exceeding 2024 guidance levels. The Pampacancha deposit is now expected to be
depleted in early December 2025 as opposed to October 2025, as the mine plan
has smoothed Pampacancha production throughout the year. Total mill ore feed
from Pampacancha is expected to be approximately 25% in 2025, lower than the
typical one-third in prior years as Pampacancha approaches depletion.
Sudbury: In the fourth quarter of 2024, Vale's Sudbury mines produced 5,000
ounces of attributable gold, a decrease of approximately 14% relative to the
fourth quarter of 2023, due to lower recoveries.
Stillwater: In the fourth quarter of 2024, the Stillwater mines produced 2,200
ounces of attributable gold and 2,800 ounces of attributable palladium, a
decrease of approximately 7% for gold and 34% for palladium relative to the
fourth quarter of 2023, primarily due to lower throughput as Stillwater West
operations were put into care and maintenance on September 12, 2024.
Voisey's Bay: In the fourth quarter of 2024, the Voisey's Bay mine produced
393,000 pounds of attributable cobalt, an increase of approximately 83%
relative to the fourth quarter of 2023, as the transitional period between the
depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's
Bay underground mine nears completion. On December 3, 2024, Vale reported that
it has completed construction and commissioning of the Voisey's Bay
underground mine extension. The expansion transitioned Voisey's Bay from open
pit to underground mining. The project involved the development of two
underground mines, Reid Brook and Eastern Deeps, which will deliver ore for
processing at Vale's Long Harbour refinery. The full ramp-up is expected by
the second half of 2026.
Other Silver: In the fourth quarter of 2024, total Other Silver attributable
production was 1.4 million ounces, an increase of approximately 4% relative to
the fourth quarter of 2023, primarily due to higher production at Zinkgruvan,
partially offset by lower production at Neves-Corvo.
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.
Recent Development Asset Updates
Blackwater Project: On November 6, 2024, Artemis announced that overall
construction of the Blackwater project was over 95% complete as of September
30, 2024. Construction of the tailings storage facility is ready to allow
for the commencement of commissioning of the plant. Artemis reported that the
initial mining fleet has been commissioned and pre-stripping of the mine, as
well as the construction of haul roads are well advanced. On January 22, 2025,
Artemis announced that commissioning of the grinding circuit at the Blackwater
project has advanced and milling of first ore commenced, with the first pour
of gold and silver being announced on January 29, 2025. Commercial production
remains targeted for Q2 2025.
Goose Project: On February 19, 2025, B2Gold Corp. ("B2Gold") announced that
all planned construction activities for 2024 were completed and project
construction and development continue to progress on track to achieve first
gold pour at the Goose project in the second quarter of 2025, followed by a
ramp up to commercial production in the third quarter of 2025. Following the
successful completion of the 2024 sea lift, the construction of the 163
kilometer Winter Ice Road was completed in February 2025. As of February 18,
2025, the Winter Ice Road is fully operational with the transportation of all
materials from the Marine Laydown Area to the Goose project site expected to
be completed by May 15, 2025.
Mineral Park Project: During the quarter, Waterton's Origin Mining continued
to advance the Mineral Park project, with the installation of new crushing and
milling circuits nearing completion. Project construction continues to
progress on track for first ore to the mill in Q2 2025, followed by a ramp up
to commercial production during the second half of 2025. At project completion
the fully refurbished mill capacity will be 16.5 Mtpa.
Platreef Project: On October 30, 2024, Ivanhoe Mines ("Ivanhoe") reported that
construction of the Phase 1 concentrator was completed on schedule early in
the third quarter. First ore is scheduled for the second half of 2025, while
underground development prioritizes development to accelerate Phase 2. Ivanhoe
also states that work continues on the updated feasibility study to accelerate
the startup of Phase 2, as well as the preliminary economic assessment of the
previously announced Phase 3 expansion to 10 Mtpa processing capacity. On
February 18, 2025, Ivanhoe reported positive results from the two independent
technical studies completed on the Phase 2 and Phase 3 expansions. The study
outlines Phase 1 production from Q4-2025, followed by the Phase 2 expansion
two years later in Q4-2027. Ivanhoe noted that the Phase 3 expansion is
expected to rank Platreef as one of the largest primary PGM producers on a
platinum equivalent basis.
Fenix Project: On October 2, 2024, Rio2 Limited ("Rio2") announced that its
Chilean subsidiary has received the principal Sectorial Permits it requires to
begin construction at the Fenix project. These Sectorial Permits represent the
last governmental authorization required to enable the start of the
construction phase and subsequent operation of the Fenix mine. On January 13,
2025, Rio2 reported that construction activities recommenced in October 2024
and construction is expected to be completed in November 2025. Bulk earthworks
at the plant side have been completed and concrete bases for the footings of
the processing plant have been poured. Earthworks have commenced on the leach
pad stability platform, which forms the base of the Phase 1 leach pad. First
gold production is currently expected in January 2026.
Marmato Mine: On March 13, 2025, Aris announced an enhanced Marmato expansion,
whereby the design of the carbon-in-pulp processing facility will be upgraded
by 25% from 4,000 tpd to 5,000 tpd. Aris reports that construction remains on
track, and production is expected to start ramping up in the second half of
2026.
Kurmuk Project: On January 22, 2025, Allied reported that earthworks at the
plant terrace advanced during the quarter to near completion, while civil
works and structural, mechanical, plate, and piping contractor mobilizations
are in progress. Main camp construction, along with engineering and
procurement activities, progressed during the quarter, with the project
remaining on track and on budget. On February 20, 2025, Allied reported that
the Kurmuk project is expected to start production by mid-2026.
El Domo Project: During the second quarter of 2024, Silvercorp Metals Inc.
("Silvercorp" announced that an Ecuadorian court rejected a constitutional
protective action (the "Constitutional Action") filed by third parties against
Ministry of Environment, Water and Energy Transition of the Government of
Ecuador ("MAATE") and concluded that the consultative process followed by
MAATE in issuing the various permits relative to the El Domo project complied
with applicable legal requirements. An appeal was granted and a hearing took
place at the Superior Court of Bolivar (the Superior Court") on October 17,
2024. On November 15, 2024, Silvercorp announced that the Superior Court
rejected the appeal.
On January 7, 2025, Silvercorp reported it is targeting to bring the project
into production in the second half of 2026 and have recently awarded the
earthworks contract to a large international mining contractor with over ten
years of experience working in Ecuador.
Koné Project: On December 18, 2024, Montage announced that it has launched
the construction of its Koné project, with first gold production scheduled
for the second quarter of 2027. Significant progress is being made to rapidly
advance and de-risk the project as early works are well underway and major
construction works are set to commence in the coming weeks, once further
construction equipment arrives to site. The Koné project is fully permitted.
Copper World Project: On January 2, 2025, Hudbay announced that it has
received an Air Quality Permit for the Copper World project from the Arizona
Department of Environmental Quality. The issuance of this permit is a
significant milestone in the advancement of the project as it is the final
major permit required for the development and operation of Copper World.
Hudbay commenced a minority joint venture partner process early in 2025, and
it is anticipated that any minority joint venture partner would participate in
the funding of definitive feasibility study activities in 2025 as well as in
the final project design and construction for Copper World. The sanctioning of
Copper World is not expected until 2026 based on current estimated timelines.
Santo Domingo Project: On January 20, 2025, Capstone Copper Corporation
("Capstone") announced plans to progress partnership discussions and its
financing strategy throughout 2025. A potential project sanctioning decision
is not anticipated prior to 2026. On February 19, 2025, Capstone reported the
Mantoverde exploration drill program commenced in Q4 2024.
Cangrejos Project: On January 28, 2025, Lumina Gold Corp., ("Lumina"),
announced significant progress regarding power infrastructure required for the
Cangrejos project. Lumina received approval of the definitive feasibility
level designs for connection to the national grid for the future energy demand
of the Cangrejos project from Corporación Eléctrica del Ecuador on January
15, 2025. The lead engineering contractor for the feasibility study has
completed 92% of the estimated work. The feasibility study remains on schedule
for completion during Q2 2025. Work for the Environmental Impact Study is
progressing on schedule which will allow for its submission to the Government
of Ecuador in mid-2025. Lumina is targeting receiving its environmental
license by early 2026.
Corporate Development
Amendment to the Fenix PMPA: On October 21, 2024, the Company amended the
Fenix PMPA(6), in exchange for which, the Company is committed to pay
additional upfront cash consideration of $100 million, payable in two equal
installments, subject to various customary conditions being satisfied. To
date, no amounts have been advanced under the Fenix PMPA amendment.
Koné Project: On October 23, 2024, the Company entered into a PMPA (the
"Koné Gold PMPA")(7) with Montage in respect of its 90% owned Koné Gold
project located in Côte d'Ivoire. Under the terms of the Koné Gold PMPA,
the Company is committed to pay Montage total upfront cash payments of $625
million, payable in four equal installment payments during construction,
subject to certain conditions, including that all permits have been obtained.
To date, no amounts have been advanced under the Koné Gold PMPA.
Kurmuk Project: On December 5, 2024, the Company entered into a PMPA (the
"Kurmuk Gold PMPA")(8) with Allied Gold Corporation ("Allied") in respect of
its Kurmuk project located in Ethiopia. Under the terms of the agreement,
Wheaton is committed to pay Allied total upfront cash payments of $175
million, payable in four equal installment payments during construction,
subject to certain conditions. The first payment of $44 million was paid on
December 19, 2024.
Amendment to Blackwater PMPA: On March 7, 2025, the Company amended its PMPA
(the "Blackwater Silver PMPA") with Artemis Gold Inc. ("Artemis") in respect
of silver production from the Blackwater Project located in British Columbia
in Canada (the "Blackwater Project"). Under the Blackwater Silver PMPA,
Wheaton will acquire an amount of silver equal to 50% of the payable silver
until 17.8 million ounces have been delivered and 33% of payable silver
thereafter for the life of the mine.
Previously, the determination of payable silver production under the Silver
Stream required the application of a complex metallurgical protocol to
determine the silver content of the mill feed and applied a fixed recovery
rate of 61%. As a result of the amendment, the amount of payable silver will
be determined based on a fixed ratio of silver to gold ounces produced. The
ratio will be as follows:
· 5.17 ounces of silver for every ounce of gold produced while the
plant throughput is less than 15Mtpa;
· 5.10 ounces of silver for every ounce of gold produced while the
plant throughput exceeds 15Mtpa, but is less than 20Mtpa;
· 5.07 ounces of silver for every ounce of gold produced while the
plant throughput exceeds 20Mtpa.
Once 17.8 million ounces of silver have been delivered, the determination of
payable silver will revert to being based on a fixed silver recovery factor,
consistent with the previous terms of the Blackwater Silver PMPA. As a result
of the changed payable silver profile which is expected to deliver silver
ounces to the Company sooner relative to the original profile, on March 10,
2025, the Company paid Artemis $30 million in connection with this amendment.
Reserves and Resources (at December 31, 2024)
· Proven and Probable Mineral Reserves attributable to Wheaton were 15.5
million ounces of gold compared with 15.1 million ounces as reported in
Wheaton's 2023 Annual Information Form ("AIF"), an increase of 3%; 476.3
million ounces of silver compared with 484.7 million ounces, a decrease of 2%;
0.83 million ounces palladium compared with 0.90 million ounces, a decrease of
8%; 0.52 million ounces of platinum, unchanged; and 30.6 million pounds of
cobalt compared to 32.3 million pounds, a decrease of 5%. On a GEO(5) basis,
total Proven and Probable Mineral Reserves for all metals attributable to
Wheaton were 21.6 million ounces compared to 21.3 million ounces, an increase
of 1%.
· Measured and Indicated Mineral Resources attributable to Wheaton were
6.8 million ounces of gold compared with 6.9 million ounces as reported in
Wheaton's 2023 AIF, a decrease of 2%; 701.4 million ounces of silver compared
with 707.2 million ounces, a decrease of 1%; 0.13 million ounces of palladium
compared with 0.12 million ounces, an increase of 11%; 0.092 million ounces of
platinum compared with 0.093 million ounces, a decrease of 1%; and 1.2 million
pounds of cobalt, unchanged. On a GEO(5) basis, total Measured and Indicated
Mineral Resources for all metals attributable to Wheaton were 15.0 million
ounces compared with 15.2 million ounces, a decrease of 1%.
· Inferred Mineral Resources attributable to Wheaton were 4.9 million
ounces of gold compared with 5.1 million ounces as reported in Wheaton's 2023
AIF, a decrease of 3%; 327.8 million ounces of silver compared with 306.8
million ounces, an increase of 7%, 0.34 million ounces of palladium compared
with 0.36 million ounces, a decrease of 6%; 0.04 million ounces of platinum,
unchanged; and 7.4 million pounds of cobalt compared with 7.2 million pounds,
an increase of 4%. On a GEO(5) basis, total Inferred Mineral Resources for all
metals attributable to Wheaton were 8.9 million ounces compared with 8.8
million ounces, an increase of 1%.
Estimated attributable reserves and resources contained in this press release
are based on information available to the Company as of March 6, 2025, and
therefore will not reflect updates, if any, after that date. Updated reserves
and resources data incorporating year-end 2024 estimates will also be included
in the Company's 2024 Annual Information Form. Wheaton's most current
attributable reserves and resources, as of December 31, 2024, can be found on
the Company's website at www.wheatonpm.com
(https://can01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.wheatonpm.com%2F&data=05%7C02%7CNeil.Burns%40wheatonpm.com%7C29a79baceb924b096b3908dd5079daf9%7Cef155bdcfbc947aaba8f1b31121bfb94%7C1%7C0%7C638755206496532871%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=0xa%2FlojBeBCr3EwRIoo1nAYa6nne5w16HjHjXPa8YZ4%3D&reserved=0)
.
Sustainability
Future of Mining Challenge
On March 4, 2025, Wheaton announced the winner of its inaugural Future of
Mining Challenge. ReThink Milling Inc. has been awarded $1 million for its
Conjugate Anvil Hammer Mill and MonoRoll technologies, which have the
potential to revolutionize the milling process. This innovative grinding
technology demonstrates immense potential to deliver greater efficiency with
significantly lower energy use, leading to reduced greenhouse gas emissions
and operating costs.
Community Investment Program
· In 2024, Wheaton contributed more than US$8.5 million to over 130
charitable causes and initiatives globally.
· Wheaton's Partner Community Investment Program continues to support
initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina,
Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the
communities influenced by the mines and provide vital services and programs
including educational resources, health and dental programs, poverty reduction
initiatives, entrepreneurial opportunities, and various social and
environmental programs.
· In November 2024, Wheaton was the presenting sponsor for the Special
Olympics BC Sports Celebrities Festival, which raises money for the Canucks
for Kids Fund and Special Olympics B.C.'s work to offer year-round programs
for athletes with intellectual disabilities of all ages and a wide range of
ability levels in 55 communities across British Columbia. The 2024 gala raised
$500,000 to support this programming.
Subsequent Events
Declaration of Dividend
The Company has increased its quarterly dividend under its dividend policy,
setting it at $0.165 per common share for 2025. This represents a 6.5%
increase over the quarterly dividend paid in 2024 and represents the second
consecutive year that the dividend has been increased, highlighting the
Company's commitment to a progressive dividend. The declaration, timing,
amount and payment of future dividends remain at the discretion of the Board
of Directors.
Chief Financial Officer Transition
On January 9, 2024, Wheaton announced that Gary Brown will be stepping down
from his role as Chief Financial Officer ("CFO"), effective March 31, 2025. As
part of a planned leadership succession, Vincent Lau, Wheaton's Vice President
of Finance, will be appointed CFO and will join the senior leadership team.
2025 Production Outlook
In 2025, Wheaton provides 2025 production guidance between 600,000 and 670,000
GEOs(4). The midpoint of the 2024 guidance range compared to the midpoint of
the 2025 guidance range suggests year-over-year production growth of
approximately 10%, in alignment with the Company's previously stated long-term
growth forecast. This forecast growth is driven by stronger attributable
production from Antamina, the start-up of several development projects, and a
stable forecast for Salobo production. This increase is expected to be
partially offset by lower production from Peñasquito and Constancia.
Attributable production is forecast to increase at Antamina in 2025 due to
expected higher silver grades, as a result of a higher ratio of copper-zinc
ore versus copper-only ore being mined in 2025. Wheaton's 2025 forecast also
includes inaugural production from four projects currently in development;
Blackwater, Goose, Mineral Park and Platreef, all of which are expected to
commence production in 2025. In addition, the Aljustrel mine is anticipated to
re-start production in the third quarter of 2025, following the announcement
made on September 12, 2023, that as a result of low zinc prices, the
production of zinc and lead concentrates would be temporarily halted from
September 24, 2023 onward. Increased production from the forementioned assets
is anticipated to be offset by lower production at Peñasquito, as mining
transitions from the Chile Colorado to the main Peñasco pit, which contains
lower relative silver grades. In addition, lower production levels are
anticipated at Constancia, predominantly due to additional gold benches being
mined in late 2024 that were brought forward from the 2025 plan, coupled with
the expectation that total mill ore feed from Pampacancha will be
approximately 25% in 2025, lower than the typical one-third in prior years as
Pampacancha approaches depletion. After a record-breaking quarter to end 2024,
production levels at Salobo are expected to remain consistent, with higher
throughput levels attributable to the Salobo III expansion project anticipated
to be offset by lower gold grades.
Long-Term Production Outlook
Production is forecast to increase by approximately 40% over the next five
years to 870,000 GEOs(4) by 2029, due to growth from multiple Operating assets
including Antamina, Aljustrel and Marmato; Development assets that are in
construction, including the Blackwater, Mineral Park, Goose, Platreef, Fenix,
Kurmuk, and Koné projects; and Pre-development assets including the El Domo
and Copper World projects.
From 2030 to 2034, attributable production is forecast to average over 950,000
GEOs(4) annually and incorporates additional incremental production from
Pre-development assets including the Santo Domingo, Cangrejos, Kudz ze Kayah,
Marathon and Kutcho projects, in addition to the Mt. Todd, Black Pine and
DeLamar royalties.
Not included in Wheaton's long-term forecast and instead classified as
'optionality', is potential future production from nine other assets,
including Pascua-Lama and Navidad, in addition to expansions at Salobo outside
of the Salobo III mine expansion project.
About Wheaton Precious Metals Corp.
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.
Webcast and Conference Call Details
Wheaton will release its 2024 fourth quarter and full year results on
Thursday, March 13, 2025, after market close. A conference call will be held
on Friday, March 14, 2025, 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: 1-888-510-2154
Dial from outside Canada or the US: 1-437-900-0527
Pass
code:
69732#
Live audio
webcast:
Webcast (https://app.webinar.net/VYkl8wybMZn) Link
(https://app.webinar.net/VYkl8wybMZn)
Participants should dial in five to ten minutes before the call.
The conference call will be recorded and available until March 20, 2025 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: 1-888-660-6345
Dial from outside Canada or the US: 1-646-517-4150
Pass
code:
69732#
Archived audio
webcast: Webcast
(https://app.webinar.net/VYkl8wybMZn) Link
(https://app.webinar.net/VYkl8wybMZn)
This earnings release should be read in conjunction with Wheaton Precious
Metals' MD&A and Financial Statements, which are available on the
Company's website at www.wheatonpm.com and have been posted on SEDAR+ at
www.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo.,
Vice President, Technical Services for Wheaton Precious Metals and Ryan
Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such
term is defined under National Instrument 43-101, and have reviewed and
approved the technical information disclosed in this news release
(specifically Mr. Carson has reviewed production figures, Mr. Burns has
reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral
reserve estimates).
Wheaton Precious Metals believes that there are no significant differences
between its corporate governance practices and those required to be followed
by United States domestic issuers under the NYSE listing standards. This
confirmation is located on the Wheaton Precious Metals website at
http://www.wheatonpm.com.
For further information:
Investor Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts) 2024 2023
Sales $ 1,284,639 $ 1,016,045
Cost of sales
Cost of sales, excluding depletion $ 235,108 $ 228,171
Depletion 246,944 214,434
Total cost of sales $ 482,052 $ 442,605
Gross margin $ 802,587 $ 573,440
General and administrative expenses 40,668 38,165
Share based compensation 23,268 22,744
Donations and community investments 8,958 7,261
Impairment of mineral stream interests 108,861 -
Earnings from operations $ 620,832 $ 505,270
Gain on disposal of mineral stream interests - 5,027
Other income (expense) 29,061 34,271
Earnings before finance costs and income taxes $ 649,893 $ 544,568
Finance costs 5,549 5,510
Earnings before income taxes $ 644,344 $ 539,058
Income tax expense 115,204 1,414
Net earnings $ 529,140 $ 537,644
Basic earnings per share $ 1.167 $ 1.187
Diluted earnings per share $ 1.165 $ 1.186
Weighted average number of shares outstanding
Basic 453,460 452,814
Diluted 454,119 453,463
Consolidated Balance Sheets
As at As at
December 31
December 31
(US dollars in thousands) 2024 2023
Assets
Current assets
Cash and cash equivalents $ 818,166 $ 546,527
Accounts receivable 6,217 10,078
Cobalt inventory - 1,372
Income taxes receivable - 5,935
Other 3,697 3,499
Total current assets $ 828,080 $ 567,411
Non-current assets
Mineral stream interests $ 6,379,580 $ 6,122,441
Early deposit mineral stream interests 47,094 47,093
Mineral royalty interests 40,421 13,454
Long-term equity investments 98,975 246,678
Property, plant and equipment 8,691 7,638
Other 21,616 26,470
Total non-current assets $ 6,596,377 $ 6,463,774
Total assets $ 7,424,457 $ 7,031,185
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 13,553 $ 13,458
Income taxes payable 2,127 -
Current portion of performance share units 13,562 12,013
Current portion of lease liabilities 262 604
Total current liabilities $ 29,504 $ 26,075
Non-current liabilities
Performance share units $ 11,522 $ 9,113
Lease liabilities 4,909 5,625
Global minimum tax payable 113,505 -
Deferred income taxes 349 232
Pension liability 5,289 4,624
Total non-current liabilities $ 135,574 $ 19,594
Total liabilities $ 165,078 $ 45,669
Shareholders' equity
Issued capital $ 3,798,108 $ 3,777,323
Reserves (63,503) (40,091)
Retained earnings 3,524,774 3,248,284
Total shareholders' equity $ 7,259,379 $ 6,985,516
Total liabilities and shareholders' equity $ 7,424,457 $ 7,031,185
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands) 2024 2023
Operating activities
Net earnings $ 529,140 $ 537,644
Adjustments for
Depreciation and depletion 248,303 215,926
Gain on disposal of mineral stream interest - (5,027)
Impairment of mineral stream interests 108,861 -
Interest expense 284 207
Equity settled stock based compensation 6,703 6,438
Performance share units - expense 16,565 16,306
Performance share units - paid (11,129) (16,675)
Pension expense 1,124 1,122
Pension paid (43) (116)
Income tax expense 115,204 1,414
(Gain) loss on fair value adjustment of share purchase warrants held 8 31
Investment income recognized in net earnings (27,014) (37,178)
Other 3,142 1,227
Change in non-cash working capital 4,426 1,912
Cash generated from operations before income taxes and interest $ 995,574 $ 723,231
Income taxes refunded (paid) 8,516 (6,192)
Interest paid (287) (187)
Interest received 23,778 33,957
Cash generated from operating activities $ 1,027,581 $ 750,809
Financing activities
Credit facility extension fees $ (937) $ (859)
Share purchase options exercised 13,192 12,415
Lease payments (594) (691)
Dividends paid (279,050) (265,109)
Cash used for financing activities $ (267,389) $ (254,244)
Investing activities
Mineral stream interests $ (628,234) $ (663,528)
Repayment of mineral stream interests deposit 13,250 -
Early deposit mineral stream interests - (1,000)
Mineral royalty interest (26,981) (6,833)
Net proceeds on disposal of mineral stream interests - 46,400
Acquisition of long-term investments (20,234) (17,447)
Proceeds on disposal of long-term investments 177,088 202
Investment in subscription rights (3,114) (4,510)
Dividends received 2,188 2,317
Other (2,266) (2,247)
Cash used for investing activities $ (488,303) $ (646,646)
Effect of exchange rate changes on cash and cash equivalents $ (250) $ 519
Increase (decrease) in cash and cash equivalents $ 271,639 $ (149,562)
Cash and cash equivalents, beginning of year 546,527 696,089
Cash and cash equivalents, end of year $ 818,166 $ 546,527
Summary of Units Produced
Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
Gold ounces produced ²
Salobo 84,291 62,689 63,225 61,622 71,778 69,045 54,804 43,677
Sudbury (3) 5,004 3,593 4,477 5,618 5,823 3,857 5,818 6,203
Constancia 18,180 10,446 6,086 13,897 22,292 19,003 7,444 6,905
San Dimas (4) 7,263 6,882 7,089 7,542 10,024 9,995 11,166 10,754
Stillwater (5) 2,166 2,247 2,099 2,637 2,341 2,454 2,017 1,960
Other
Marmato 622 648 584 623 668 673 639 457
Minto (6) - - - - - - 1,292 3,063
Total Other 622 648 584 623 668 673 1,931 3,520
Total gold ounces produced 117,526 86,505 83,560 91,939 112,926 105,027 83,180 73,019
Silver ounces produced (2)
Peñasquito (7) 2,465 1,785 2,263 2,643 1,036 - 1,744 2,076
Antamina 947 925 992 806 1,030 894 984 872
Constancia 969 648 451 640 836 697 420 552
Other
Los Filos 29 26 27 48 26 32 41 45
Zinkgruvan 637 537 699 641 510 785 374 632
Neves-Corvo 494 425 432 524 573 486 407 436
Aljustrel (8) - - - - - 327 279 343
Cozamin 192 185 177 173 185 165 184 141
Marmato 7 7 6 7 10 11 7 8
Minto (6) - - - - - - 14 29
Total Other 1,359 1,180 1,341 1,393 1,304 1,806 1,306 1,634
Total silver ounces produced 5,740 4,538 5,047 5,482 4,206 3,397 4,454 5,134
Palladium ounces produced ²
Stillwater (5) 2,797 4,034 4,338 4,463 4,209 4,006 3,880 3,705
Cobalt pounds produced ²
Voisey's Bay 393 397 259 240 215 183 152 124
GEOs produced (9) 187,493 143,290 145,449 158,775 164,796 147,278 137,323 134,730
Average payable rate (2)
Gold 95.3% 95.0% 95.0% 94.7% 95.1% 95.4% 95.1% 95.1%
Silver 84.2% 83.9% 84.3% 84.5% 83.0% 78.4% 83.7% 83.1%
Palladium 97.5% 98.4% 97.3% 97.8% 98.0% 94.1% 94.1% 96.3%
Cobalt 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3% 93.3%
GEO (9) 91.4% 91.0% 90.7% 90.7% 91.6% 90.9% 90.9% 89.8%
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and
cobalt contained in concentrate or doré prior to smelting or refining
deductions. Production figures and payable rates are based on information
provided by the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where other
information is not available. Certain production figures and payable rates may
be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten
gold interests.
4) Under the terms of the San Dimas PMPA, the Company is entitled to an
amount equal to 25% of the payable gold production plus an additional amount
of gold equal to 25% of the payable silver production converted to gold at a
fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the
average gold to silver price ratio decreases to less than 50:1 or increases to
more than 90:1 for a period of 6 months or more, then the "70" shall be
revised to "50" or "90", as the case may be, until such time as the average
gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or
more in which event the "70" shall be reinstated. For reference, attributable
silver production from prior periods is as follows: Q4 2024 - 295,000 ounces;
Q3 2024 - 262,000 ounces; Q2 2024 - 285,000 ounces; Q1 2024 - 291,000 ounces;
Q4 2023 - 378,000 ounces; Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces;
Q1 2023 - 401,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium
interests.
6) On May 13, 2023, Minto Metals Corp. announced the suspension of
operations at the Minto mine.
7) There was a temporary suspension of operations at Peñasquito due to a
labour strike which ran from June 7, 2023 to October 13, 2023.
8) On September 12, 2023, it was announced that the production of the zinc
and lead concentrates at the Aljustrel mine will be halted from September 24,
2023 until the third quarter of 2025.
9) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for
2024.
Summary of Units Sold
Q4 2024 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023
Gold ounces sold
Salobo 55,170 58,101 54,962 56,841 76,656 44,444 46,030 35,966
Sudbury (2) 4,048 2,495 5,679 4,129 5,011 4,836 4,775 4,368
Constancia 17,873 5,186 6,640 20,123 19,925 12,399 9,619 6,579
San Dimas 6,990 7,022 6,801 7,933 10,472 9,695 11,354 10,651
Stillwater (3) 2,410 1,635 2,628 2,355 2,314 1,985 2,195 2,094
Other
Marmato 650 550 616 638 633 792 467 480
777 - - - - - 275 153 126
Minto - - - - - - 701 2,341
Santo Domingo (4) 312 447 - - - - - -
El Domo (4) 209 258 - - - - - -
Total Other 1,171 1,255 616 638 633 1,067 1,321 2,947
Total gold ounces sold 87,662 75,694 77,326 92,019 115,011 74,426 75,294 62,605
Silver ounces sold
Peñasquito 1,852 1,667 1,482 1,839 442 453 1,913 1,483
Antamina 858 989 917 762 1,091 794 963 814
Constancia 797 366 422 726 665 435 674 366
Other
Los Filos 29 26 24 44 24 30 37 34
Zinkgruvan 452 488 597 297 449 714 370 520
Neves-Corvo 154 185 216 243 268 245 132 171
Aljustrel - - - 1 86 142 182 205
Cozamin 158 148 158 147 141 139 150 119
Marmato 7 6 7 8 9 11 7 7
Minto - - - - - - 7 29
Keno Hill - - - - - - - 1
777 - - - - - 2 2 -
Total Other 800 853 1,002 740 977 1,283 887 1,086
Total silver ounces sold 4,307 3,875 3,823 4,067 3,175 2,965 4,437 3,749
Palladium ounces sold
Stillwater (3) 4,434 3,761 4,301 4,774 3,339 4,242 3,392 2,946
Cobalt pounds sold
Voisey's Bay 485 88 88 309 288 198 265 323
GEOs sold (5) 142,561 122,715 124,009 143,184 155,059 111,935 129,734 109,293
Cumulative payable units PBND (6)
Gold ounces 119,446 94,578 87,350 85,259 90,237 97,860 72,061 76,522
Silver ounces 3,260 2,733 2,801 2,368 1,802 1,486 1,790 2,531
Palladium ounces 4,439 6,186 6,018 6,198 6,666 5,607 6,122 5,751
Cobalt pounds 678 796 513 360 356 377 251 285
GEO (5) 163,562 134,269 125,906 117,930 116,610 120,203 97,331 110,362
Inventory on hand
Cobalt pounds - - - - 88 155 310 398
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) The ounces sold under Santo Domingo and El Domo relate to ounces
received due to the delay ounce provision as per the respective PMPA. Please
see the Company's MD&A for more information.
5) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
6) Payable gold, silver and palladium ounces as well as cobalt pounds
produced but not yet delivered ("PBND") are based on management estimates.
These figures may be updated in future periods as additional information is
received.
Results of Operations
The operating results of the Company's reportable operating segments are
summarized in the tables and commentary below.
Three Months Ended December 31, 2024
Units Produced² Units Average Average Average Sales Impairment Charges (5) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit) (4)
Per Unit)
Gold
Salobo 84,291 55,170 $ 2,676 $ 425 $ 378 $ 147,610 $ - $ 103,323 $ 121,254 $ 2,595,485
Sudbury (6) 5,004 4,048 2,709 400 1,326 10,968 - 3,982 9,853 241,551
Constancia 18,180 17,873 2,676 425 323 47,821 - 34,463 40,232 64,326
San Dimas 7,263 6,990 2,676 637 290 18,704 - 12,226 14,251 136,481
Stillwater 2,166 2,410 2,676 481 421 6,448 - 4,275 5,289 207,460
Other (7) 622 1,171 2,681 265 1,485 3,139 - 1,089 2,828 981,316
117,526 87,662 $ 2,677 $ 440 $ 420 $ 234,690 $ - $ 159,358 $ 193,707 $ 4,226,619
Silver
Peñasquito 2,465 1,852 $ 31.48 $ 4.50 $ 4.86 $ 58,293 $ - $ 40,965 $ 49,960 $ 244,465
Antamina 947 858 31.48 6.28 8.46 27,009 - 14,360 21,619 490,771
Constancia 969 797 31.48 6.26 6.10 25,084 - 15,232 20,096 165,378
Other (8) 1,359 800 30.43 4.37 5.34 24,347 - 16,570 25,204 662,630
5,740 4,307 $ 31.28 $ 5.16 $ 5.90 $ 134,733 $ - $ 87,127 $ 116,879 $ 1,563,244
Palladium
Stillwater 2,797 4,434 $ 1,008 $ 184 $ 429 $ 4,468 $ - $ 1,749 $ 3,653 $ 213,179
Platreef - - n.a. n.a. n.a. - - - - 78,814
2,797 4,434 $ 1,008 $ 184 $ 429 $ 4,468 $ - $ 1,749 $ 3,653 $ 291,993
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - - 57,584
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 67,035
Cobalt
Voisey's Bay 393 485 $ 13.66 $ 2.59 $ 12.78 $ 6,625 $ (108,861) $ (109,688) $ 4,618 $ 230,689
Operating results $ 380,516 $ (108,861) $ 138,546 $ 318,857 $ 6,379,580
Other
General and administrative $ (10,475) $ (6,996)
Share based compensation (6,118) -
Donations and community investments (4,332) (3,913)
Finance costs (1,404) (1,046)
Other 9,138 6,787
Income tax (37,207) 5,782
Total other $ (50,398) $ 614 $ 1,044,877
$ 88,148 $ 319,471 $ 7,424,457
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 represents 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-GAAP measure (iii) at the end of this press
release.
4) Includes the non-cash per ounce cost of sale associated with delay
ounces. Please see the Company's MD&A for more information.
5) Please see page 3 of this press release for more information.
6) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
7) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Copper World, Santo Domingo, Fenix, Blackwater,
El Domo, Marathon, Goose, Cangrejos, Platreef, Curraghinalt, Kudz Ze Kayah,
Koné and Kurmuk gold interests. Other includes ounces sold that were received
under the delay ounce provisions of each of the Santo Domingo and El Domo
PMPAs. Please see the Company's MD&A for more information.
8) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the
non-operating Stratoni, Aljustrel, Pascua-Lama, Copper World, Navidad,
Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
Three Months Ended December 31, 2023
Units Units Average Average Average Sales Net Cash Flow Total
Produced²
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 71,778 76,656 $ 2,005 $ 420 $ 393 $ 153,717 $ 91,390 $ 121,491 $ 2,681,419
Sudbury (4) 5,823 5,011 2,023 400 1,145 10,137 2,394 8,134 262,485
Constancia 22,292 19,925 2,005 420 316 39,954 25,288 31,578 80,265
San Dimas 10,024 10,472 2,005 631 279 20,999 11,479 14,395 144,722
Stillwater 2,341 2,314 2,005 352 510 4,640 2,645 3,826 211,469
Other (5) 668 633 2,005 350 527 1,269 714 1,047 603,689
112,926 115,011 $ 2,006 $ 437 $ 405 $ 230,716 $ 133,910 $ 180,471 $ 3,984,049
Silver
Peñasquito 1,036 442 $ 23.87 $ 4.43 $ 4.06 $ 10,547 $ 6,794 $ 8,589 $ 276,232
Antamina 1,030 1,091 23.87 4.73 7.06 26,043 13,190 20,887 519,530
Constancia 836 665 23.87 6.20 6.24 15,879 7,601 11,755 179,583
Other (6) 1,304 977 23.55 4.82 3.22 22,996 15,138 18,909 582,113
4,206 3,175 $ 23.77 $ 5.02 $ 5.29 $ 75,465 $ 42,723 $ 60,140 $ 1,557,458
Palladium
Stillwater 4,209 3,339 $ 1,070 $ 198 $ 445 $ 3,574 $ 1,426 $ 2,912 $ 220,667
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ 9,451
Cobalt
Voisey's Bay 215 288 $ 12.92 $ 3.14 ⁷ $ 12.80 $ 3,716 $ (871) $ 2,016 $ 350,816
Operating results $ 313,471 $ 177,188 $ 245,539 $ 6,122,441
Other
General and administrative $ (9,244) $ (6,490)
Share based compensation (6,527) -
Donations and community investments (2,208) (2,143)
Finance costs (1,371) (1,083)
Other 7,311 7,351
Income tax 3,286 (948)
Total other $ (8,753) $ (3,313) $ 908,744
$ 168,435 $ 242,226 $ 7,031,185
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 represents 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-GAAP 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) Other gold interests are comprised of the operating Marmato gold
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, El Domo, Goose, Cangrejos and
Curraghinalt gold interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced. On May
13, 2023, Minto announced the suspension of operations at the Minto mine.
6) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests, the
non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater, El Domo and Mineral Park silver interests. On June 22,
2022, Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On May 13, 2023, Minto announced the
suspension of operations at the Minto mine. On September 12, 2023, it was
announced that the production of zinc and lead concentrates at Aljustrel will
be halted from September 24, 2023 until the third quarter of 2025.
7) Cash cost per pound of cobalt sold during the fourth quarter of 2023
was net of a previously recorded inventory write-down of $0.02 million,
resulting in a decrease of $0.08 per pound of cobalt sold.
Comparative Results of Operations on a GEO Basis
Q4 2024 Q4 2023 Change Change
GEO Production (1, 2) 187,493 164,796 22,696 13.8 %
GEO Sales (2) 142,561 155,059 (12,498) (8.1)%
Average price per GEO sold (2) $ 2,669 $ 2,022 $ 647 32.0 %
Revenue $ 380,516 $ 313,471 $ 67,045 21.4 %
Cost of sales, excluding depletion $ 64,236 $ 67,757 $ 3,521 5.2 %
Depletion 68,873 68,526 (347) (0.5)%
Cost of Sales $ 133,109 $ 136,283 $ 3,174 2.3 %
Gross Margin $ 247,407 $ 177,188 $ 70,219 39.6 %
General and administrative expenses 10,475 9,244 (1,231) (13.3)%
Share based compensation 6,118 6,527 409 6.3 %
Donations and community investments 4,332 2,208 (2,124) (96.2)%
Impairment of mineral stream interests 108,861 - (108,861) n.a.
Earnings from Operations $ 117,621 $ 159,209 $ (41,588) (26.1)%
Other income (expense) 9,138 7,311 1,827 25.0 %
Earnings before finance costs and income taxes $ 126,759 $ 166,520 $ (39,761) (23.9)%
Finance costs 1,404 1,371 (33) (2.4)%
Earnings before income taxes $ 125,355 $ 165,149 $ (39,794) (24.1)%
Income tax expense 37,207 (3,286) (40,493) (1,232.3)%
Net earnings $ 88,148 $ 168,435 $ (80,287) (47.7)%
1) Quantity produced represents 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) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Year Ended December 31, 2024
Units Produced² Units Average Average Average Sales Impairment Charges (5) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit) (4)
Per Unit)
Gold
Salobo 271,827 225,074 $ 2,397 $ 425 $ 382 $ 539,583 $ - $ 358,081 $ 444,015 $ 2,595,485
Sudbury (6) 18,692 16,351 2,391 400 1,280 39,098 - 11,623 32,571 241,551
Constancia 48,609 49,822 2,370 422 320 118,096 - 81,126 97,066 64,326
San Dimas 28,776 28,746 2,388 635 287 68,654 - 42,166 50,407 136,481
Stillwater 9,149 9,028 2,392 425 444 21,592 - 13,743 17,752 207,460
Other (7) 2,477 3,680 2,453 284 1,192 9,028 - 3,596 7,982 981,316
379,530 332,701 $ 2,393 $ 440 $ 419 $ 796,051 $ - $ 510,335 $ 649,793 $ 4,226,619
Silver
Peñasquito 9,156 6,840 $ 28.34 $ 4.50 $ 4.64 $ 193,871 $ - $ 131,325 $ 163,092 $ 244,465
Antamina 3,670 3,526 28.56 5.74 8.16 100,719 - 51,738 80,497 490,771
Constancia 2,708 2,311 28.25 6.23 6.15 65,264 - 36,676 50,881 165,378
Other (8) 5,273 3,395 28.85 4.31 4.71 97,976 - 67,356 85,230 662,630
20,807 16,072 $ 28.49 $ 4.98 $ 5.64 $ 457,830 $ - $ 287,095 $ 379,700 $ 1,563,244
Palladium
Stillwater 15,632 17,270 $ 984 $ 179 $ 434 $ 16,999 $ - $ 6,423 $ 13,911 $ 213,179
Platreef - - n.a. n.a. n.a. - - - - 78,814
15,632 17,270 $ 984 $ 179 $ 434 $ 16,999 $ - $ 6,423 $ 13,911 $ 291,993
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,451
Platreef - - n.a. n.a. n.a. - - - - 57,584
- - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 67,035
Cobalt
Voisey's Bay 1,289 970 $ 14.18 $ 2.71 $ 12.78 $ 13,759 $ (108,861) $ (110,127) $ 14,025 $ 230,689
Operating results $ 1,284,639 $ (108,861) $ 693,726 $ 1,057,429 $ 6,379,580
Other
General and administrative $ (40,668) $ (38,130)
Share based compensation (23,268) (11,129)
Donations and community investments (8,958) (8,098)
Finance costs (5,549) (4,280)
Other 29,061 23,273
Income tax (115,204) 8,516
Total other $ (164,586) $ (29,848) $ 1,044,877
$ 529,140 $ 1,027,581 $ 7,424,457
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 represents 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-GAAP measure (iii) at the end of this press
release.
4) Includes the non-cash per ounce cost of sale associated with delay
ounces. Please see the Company's MD&A for more information.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Other gold interests comprised of the operating Marmato gold interest
as well as the non-operating Copper World, Santo Domingo, Fenix, Blackwater,
El Domo, Marathon, Goose, Cangrejos, Platreef, Curraghinalt, Kudz Ze Kayah,
Koné and Kurmuk gold interests. Other includes ounces sold that were received
under the delay ounce provisions of each of the Santo Domingo and El Domo
PMPAs. Please see the Company's MD&A for more information.
7) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the
non-operating Stratoni, Aljustrel, Pascua-Lama, Copper World, Navidad,
Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
Year Ended December 31, 2023
Units Produced² Units Average Average Average Sales Gain on Disposal (4) Net Cash Flow Total
Sold
Realized
Cash Cost
Depletion
Earnings
From
Assets
Price
($'s Per
($'s Per
Operations
($'s
Unit) (3)
Unit)
Per Unit)
Gold
Salobo 239,304 203,096 $ 1,969 $ 420 $ 354 $ 399,936 $ - $ 242,676 $ 314,555 $ 2,681,419
Sudbury (5) 21,701 18,990 1,971 400 1,102 37,432 - 8,905 29,554 262,485
Constancia 55,644 48,522 1,972 419 316 95,672 - 60,039 75,357 80,265
San Dimas 41,939 42,172 1,960 628 264 82,656 - 45,014 56,157 144,722
Stillwater 8,772 8,588 1,961 348 510 16,842 - 9,470 13,853 211,469
Other (6) 6,792 5,968 1,942 1,037 209 11,593 - 4,152 5,137 603,689
374,152 327,336 $ 1,968 $ 455 $ 382 $ 644,131 $ - $ 370,256 $ 494,613 $ 3,984,049
Silver
Peñasquito 4,856 4,291 $ 23.66 $ 4.43 $ 4.06 $ 101,514 $ - $ 65,062 $ 82,504 $ 276,232
Antamina 3,780 3,662 23.72 4.70 7.06 86,855 - 43,814 69,652 519,530
Constancia 2,505 2,140 23.79 6.17 6.24 50,913 - 24,352 37,716 179,583
Other (7) 6,050 4,233 23.47 5.41 2.92 99,312 5,027 69,106 74,272 582,113
17,191 14,326 $ 23.64 $ 5.05 $ 4.82 $ 338,594 $ 5,027 $ 202,334 $ 264,144 $ 1,557,458
Palladium
Stillwater 15,800 13,919 $ 1,329 $ 241 $ 441 $ 18,496 $ - $ 8,991 $ 15,135 $ 220,667
Platinum
Marathon - - $ n.a. $ n.a. $ n.a. $ - $ - $ - $ - $ 9,451
Cobalt
Voisey's Bay 673 1,074 $ 13.81 $ 3.30 ⁸ $ 13.41 $ 14,824 $ - $ (3,114) $ 15,071 $ 350,816
Operating results $ 1,016,045 $ 5,027 $ 578,467 $ 788,963 $ 6,122,441
Other
General and administrative $ (38,165) $ (36,025)
Share based compensation (22,744) (16,675)
Donations and community investments (7,261) (7,039)
Finance costs (5,510) (4,230)
Other 34,271 32,007
Income tax (1,414) (6,192)
Total other $ (40,823) $ (38,154) $ 908,744
$ 537,644 $ 750,809 $ 7,031,185
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 represents 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-GAAP measure (iii) at the end of this press
release.
4) The gain on disposal of Other silver interests relates to the gain on
the buyback of 33% of the Goose PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and
Totten gold interests as well as the non-operating Stobie and Victor gold
interests.
6) Other gold interests are comprised of the operating Marmato gold
interests as well as the non-operating Minto, 777, Copper World, Santo
Domingo, Fenix, Blackwater, Marathon, El Domo, Goose, Cangrejos and
Curraghinalt gold interests. On June 22, 2022, Hudbay announced that mining
activities at 777 have concluded and closure activities have commenced. On May
13, 2023, Minto announced the suspension of operations at the Minto mine.
7) Other silver interests comprised of the operating Los Filos,
Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and
the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper
World, Blackwater, El Domo and Mineral Park silver interests. On June 22,
2022, Hudbay announced that mining activities at 777 have concluded and
closure activities have commenced. On May 13, 2023, Minto announced the
suspension of operations at the Minto mine. On September 12, 2023, it was
announced that the production of zinc and lead concentrates at Aljustrel will
be halted from September 24, 2023 until the third quarter of 2025.
8) Cash cost per pound of cobalt sold during the year ended December 31,
2023 was net of a previously recorded inventory write-down of $1.6 million,
resulting in a decrease of $0.91 per pound of cobalt sold.
Comparative Results of Operations on a GEO Basis
2024 2023 Change Change
GEO Production (1, 2) 635,007 584,127 50,881 8.7 %
GEO Sales (2) 532,468 506,020 26,448 5.2 %
Average price per GEO sold (2) $ 2,413 $ 2,008 $ 405 20.2 %
Revenue $ 1,284,639 $ 1,016,045 $ 268,594 26.4 %
Cost of sales, excluding depletion $ 235,108 $ 228,171 $ (6,937) (3.0)%
Depletion 246,944 214,434 (32,510) (15.2)%
Cost of Sales $ 482,052 $ 442,605 $ (39,447) (8.9)%
Gross Margin $ 802,587 $ 573,440 $ 229,147 40.0 %
General and administrative expenses 40,668 38,165 (2,503) (6.6)%
Share based compensation 23,268 22,744 (524) (2.3)%
Donations and community investments 8,958 7,261 (1,697) (23.4)%
Impairment of mineral stream interests 108,861 - (108,861) n.a.
Earnings from Operations $ 620,832 $ 505,270 $ 115,562 22.9 %
Gain on disposal of mineral stream interests - 5,027 (5,027) (100.0)%
Other income (expense) 29,061 34,271 (5,210) (15.2)%
Earnings before finance costs and income taxes $ 649,893 $ 544,568 $ 105,325 19.3 %
Finance costs 5,549 5,510 (39) (0.7)%
Earnings before income taxes $ 644,344 $ 539,058 $ 105,286 19.5 %
Income tax expense 115,204 1,414 (113,790) (8,047.4)%
Net earnings $ 529,140 $ 537,644 $ (8,504) (1.6)%
1) Quantity produced represents 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) GEOs, which are provided to assist the reader, are based on the
following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce
silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent
with those used in estimating the Company's production guidance for 2024.
Non-GAAP Measures
Wheaton has included, throughout this document, certain non-GAAP performance
measures, including (i) adjusted net earnings and adjusted net earnings per
share; (ii) operating cash flow per share (basic and diluted); (iii) average
cash costs of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis; and (iv) cash operating margin.
i. Adjusted net earnings and adjusted net earnings per share are
calculated by removing the effects of non-cash impairment charges
(reversals) (if any), non-cash fair value (gains) losses and other one-time
(income) expenses as well as the reversal of non-cash income tax expense
(recovery) which is offset by income tax expense (recovery) recognized in the
Statements of Shareholders' Equity and OCI, respectively. The Company believes
that, in addition to conventional measures prepared in accordance with IFRS
Accounting Standards, 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 Years Ended
December 31
December 31
(in thousands, except for per share amounts) 2024 2023 2024 2023
Net earnings $ 88,148 $ 168,435 $ 529,140 $ 537,644
Add back (deduct):
Impairment charge (reversal) 108,861 - 108,861 -
Gain on disposal of Mineral Stream Interest - - - (5,027)
(Gain) loss on fair value adjustment of share purchase warrants held 910 (217) 8 31
Deferred income tax (expense) recovery recognized in the Statement of OCI 1,225 (3,487) 2,857 3,719
Income tax recovery related to prior year disposal of Mineral Stream Interest - - - (2,672)
Other (175) (162) (696) (644)
Adjusted net earnings $ 198,969 $ 164,569 $ 640,170 $ 533,051
Divided by:
Basic weighted average number of shares outstanding 453,669 453,010 453,460 452,814
Diluted weighted average number of shares outstanding 454,361 453,611 454,119 453,463
Equals:
Adjusted earnings per share - basic $ 0.439 $ 0.363 $ 1.412 $ 1.177
Adjusted earnings per share - diluted $ 0.438 $ 0.363 $ 1.410 $ 1.176
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 Years Ended
December 31
December 31
(in thousands, except for per share amounts) 2024 2023 2024 2023
Cash generated by operating activities $ 319,471 $ 242,226 $ 1,027,581 $ 750,809
Divided by:
Basic weighted average number of shares outstanding 453,669 453,010 453,460 452,814
Diluted weighted average number of shares outstanding 454,361 453,611 454,119 453,463
Equals:
Operating cash flow per share - basic $ 0.704 $ 0.535 $ 2.266 $ 1.658
Operating cash flow per share - diluted $ 0.703 $ 0.534 $ 2.263 $ 1.656
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 and cost of sales related to delay ounces, 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 Accounting Standards. In addition to conventional measures prepared in
accordance with IFRS Accounting Standards, 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 Years Ended
December 31
December 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Cost of sales $ 133,109 $ 136,283 $ 482,052 $ 442,605
Less: depletion (68,873) (68,526) (246,944) (214,434)
Less: cost of sales related to delay ounces (1) (1,396) - (3,095) -
Cash cost of sales $ 62,840 $ 67,757 $ 232,013 $ 228,171
Cash cost of sales is comprised of:
Total cash cost of gold sold $ 38,556 $ 50,246 $ 146,271 $ 148,972
Total cash cost of silver sold 22,213 15,945 80,022 72,296
Total cash cost of palladium sold 816 662 3,088 3,360
Total cash cost of cobalt sold (2) 1,255 904 2,632 3,543
Total cash cost of sales $ 62,840 $ 67,757 $ 232,013 $ 228,171
Divided by:
Total gold ounces sold 87,662 115,011 332,701 327,336
Total silver ounces sold 4,307 3,175 16,072 14,326
Total palladium ounces sold 4,434 3,339 17,270 13,919
Total cobalt pounds sold 485 288 970 1,074
Equals:
Average cash cost of gold (per ounce) $ 440 $ 437 $ 440 $ 455
Average cash cost of silver (per ounce) $ 5.16 $ 5.02 $ 4.98 $ 5.05
Average cash cost of palladium (per ounce) $ 184 $ 198 $ 179 $ 241
Average cash cost of cobalt (per pound) $ 2.59 $ 3.14 $ 2.71 $ 3.30
1) The cost of sales related to delay ounces is a non-cash expense. Please
see the Company's MD&A for more information.
2) Cash cost per pound of cobalt sold during the fourth quarter of 2023 was
net of a previously recorded inventory write-down of $0.02 million (twelve
months - $1.6 million), resulting in a decrease of $0.08 per pound of cobalt
sold (twelve months - $0.91 per pound of cobalt sold).
iv. Cash operating margin is calculated by adding back depletion and the
cost of sales related to delay ounces to the gross margin. Cash operating
margin on a per ounce or per pound basis is calculated by dividing the cash
operating margin by the number of ounces or pounds sold during the period. The
Company presents cash operating margin as management and certain investors use
this information to evaluate the Company's performance in comparison to other
companies in the precious metal mining industry who present results on a
similar basis as well as to evaluate the Company's ability to generate cash
flow.
The following table provides a reconciliation of cash operating margin.
Three Months Ended Years Ended
December 31
December 31
(in thousands, except for gold and palladium ounces sold and per unit amounts) 2024 2023 2024 2023
Gross margin $ 247,407 $ 177,188 $ 802,587 $ 573,440
Add back: depletion 68,873 68,526 246,944 214,434
Add back: cost of sales related to delay ounces (1) 1,396 - 3,095 -
Cash operating margin $ 317,676 $ 245,714 $ 1,052,626 $ 787,874
Cash operating margin is comprised of:
Total cash operating margin of gold sold $ 196,134 $ 180,470 $ 649,780 $ 495,159
Total cash operating margin of silver sold 112,520 59,520 377,808 266,298
Total cash operating margin of palladium sold 3,652 2,912 13,911 15,136
Total cash operating margin of cobalt sold 5,370 2,812 11,127 11,281
Total cash operating margin $ 317,676 $ 245,714 $ 1,052,626 $ 787,874
Divided by:
Total gold ounces sold 87,662 115,011 332,701 327,336
Total silver ounces sold 4,307 3,175 16,072 14,326
Total palladium ounces sold 4,434 3,339 17,270 13,919
Total cobalt pounds sold 485 288 970 1,074
Equals:
Cash operating margin per gold ounce sold $ 2,237 $ 1,569 $ 1,953 $ 1,513
Cash operating margin per silver ounce sold $ 26.12 $ 18.75 $ 23.51 $ 18.59
Cash operating margin per palladium ounce sold $ 824 $ 872 $ 805 $ 1,088
Cash operating margin per cobalt pound sold $ 11.07 $ 9.78 $ 11.47 $ 10.51
1) The cost of sales related to delay ounces is a non-cash expense. Please
see the Company's MD&A for more information.
These non-GAAP measures do not have any standardized meaning prescribed by
IFRS Accounting Standards, and other companies may calculate these measures
differently. The presentation of these non-GAAP 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
Accounting Standards. For more detailed information, please refer to Wheaton's
MD&A available on the Company's website at www.wheatonpm.com and posted on
SEDAR+ at www.sedarplus.ca.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's PMPA counterparties. Forward-looking statements,
which are all statements other than statements of historical fact, include,
but are not limited to, statements with respect to:
· payment by the Company of $625 million to Montage and the
satisfaction of each party's obligations in accordance with the Koné Gold
PMPA;
· the receipt by the Company of gold production in respect of the
Koné Gold Project;
· the advance by the Company, and the repayment by Montage, of up
to $75 million to Montage in connection with the Facility;
· payment by the Company of $125 million to Rio2 and the
satisfaction of each party's obligations in accordance with the Fenix PMPA (as
amended);
· the receipt by the Company of gold production in respect of the
Fenix Gold Project;
· the advance by the Company, and the repayment by Rio2, of up to
$20 million to Rio2 in connection with the Rio2 standby loan facility;
· the future price of commodities;
· the estimation of future production from the mineral stream
interests and mineral royalty interests currently owned by the Company (the
"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 Mining
Operations;
· the payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance with PMPAs
and the receipt by the Company of precious metals and cobalt production or
other payments in respect of the applicable Mining Operations under PMPAs;
· 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,
including any acceleration of payments;
· the costs of future production;
· the estimation of produced but not yet delivered ounces;
· the future sales of Common Shares under, the amount of net
proceeds from, and the use of the net proceeds from, the at-the-market equity
program;
· continued listing of the Common Shares on the LSE, NYSE and TSX;
· any statements as to future dividends;
· the ability to fund outstanding commitments and the ability to
continue to acquire accretive PMPAs;
· 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, including taxes
payable under the GMT, and the impact of the CRA Settlement, and the Company's
ability to pay its taxes;
· possible CRA domestic audits for taxation years subsequent to
2016 and international audits;
· the Company's assessment of the impact of any tax reassessments;
· the Company's intention to file future tax returns in a manner
consistent with the CRA Settlement;
· the Company's climate change and environmental commitments; and
· assessments of the impact and resolution of various legal and
tax matters, including but not limited to audits.
Generally, these forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect",
"is expected", "budget", "scheduled", "estimates", "forecasts", "projects",
"intends", "anticipates" or "does not anticipate", or "believes", "potential",
or variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including but not limited to:
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Koné Gold PMPA;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Facility;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Fenix PMPA;
· risks relating to the satisfaction of each party's obligations in
accordance with the terms of the Rio2 standby loan facility;
· risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or cobalt production
at acceptable prices or at all);
· risks related to the Mining Operations (including fluctuations in
the price of the primary or other commodities mined at such operations,
regulatory, political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated with
exploration, development, operating, expansion and improvement at the Mining
Operations, environmental and economic risks of the Mining Operations, and
changes in project parameters as Mining Operations plans continue to be
refined);
· 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 owners and operators of the Mining Operations as the basis
for its analyses, forecasts and assessments relating to its own business;
· risks related to the uncertainty in the accuracy of mineral
reserve and mineral resource estimation;
· risks related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the ability of the
companies with which the Company has PMPAs to perform their obligations under
those PMPAs in the event of a material adverse effect on the results of
operations, financial condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration potential;
· risks relating to production estimates from Mining Operations,
including anticipated timing of the commencement of production by certain
Mining Operations;
· Wheaton's interpretation of, or compliance with, or application
of, tax laws and regulations or accounting policies and rules, being found to
be incorrect or the tax impact to the Company's business operations being
materially different than currently contemplated, , or the ability of the
Company to pay such taxes as and when due;
· 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;
· risks in assessing the impact of the CRA Settlement (including
whether there will be any material change in the Company's facts or change in
law or jurisprudence);
· risks related to any potential amendments to Canada's transfer
pricing rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6, 2023;
· risks relating to Wheaton's interpretation of, compliance with,
or application of the GMT, including Canada's GMTA and the legislation enacted
in Luxembourg, that applies to the income of the Company's subsidiaries for
fiscal years beginning on or after December 31, 2023;
· counterparty credit and liquidity risks;
· mine operator and counterparty concentration risks;
· indebtedness and guarantees risks;
· hedging risk;
· competition in the streaming industry risk;
· risks relating to security over underlying assets;
· risks relating to third-party PMPAs;
· risks relating to revenue from royalty interests;
· risks related to Wheaton's acquisition strategy;
· risks relating to third-party rights under PMPAs;
· risks relating to future financings and security issuances;
· risks relating to unknown defects and impairments;
· risks related to governmental regulations;
· risks related to international operations of Wheaton and the
Mining Operations;
· risks relating to exploration, development, operating, expansions
and improvements at the Mining Operations;
· risks related to environmental regulations;
· the ability of Wheaton and the Mining Operations to obtain and
maintain necessary licenses, permits, approvals and rulings;
· the ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting requirements;
· lack of suitable supplies, infrastructure and employees to
support the Mining Operations;
· risks related to underinsured 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 related to title and indigenous rights with respect
to the mineral properties of the Mining Operations;
· the ability of Wheaton and the Mining Operations to obtain
adequate financing;
· the ability of the Mining Operations to complete permitting,
construction, development and expansion;
· challenges related to global financial conditions;
· risks associated with environmental, social and governance
matters;
· risks related to fluctuations in commodity prices of metals
produced from the Mining Operations other than precious metals or cobalt;
· risks related to claims and legal proceedings against Wheaton or
the Mining Operations;
· risks related to the market price of the Common Shares of
Wheaton;
· the ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and experienced
personnel;
· risks related to interest rates;
· risks related to the declaration, timing and payment of
dividends;
· risks related to access to confidential information regarding
Mining Operations;
· risks associated with multiple listings of the Common Shares on
the LSE, NYSE and TSX;
· risks associated with a possible suspension of trading of Common
Shares;
· risks associated with the sale of Common Shares under the
at-the-market equity program, including the amount of any net proceeds from
such offering of Common Shares and the use of any such proceeds;
· equity price risks related to Wheaton's holding of long‑term
investments in other companies;
· risks relating to activist shareholders;
· risks relating to reputational damage;
· risks relating to expression of views by industry analysts;
· risks related to the impacts of climate change and the transition
to a low-carbon economy;
· risks associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining Operations;
· risks related to ensuring the security and safety of information
systems, including cyber security risks;
· risks relating to generative artificial intelligence;
· risks relating to compliance with anti-corruption and
anti-bribery laws;
· risks relating to corporate governance and public disclosure
compliance;
· risks of significant impacts on Wheaton or the Mining Operations
as a result of an epidemic or pandemic;
· risks related to the adequacy of internal control over financial
reporting; and
· other risks discussed in the section entitled "Description of the
Business - Risk Factors" in Wheaton's Annual Information Form available on
SEDAR+ at www.sedarplus.ca (http://www.sedarplus.ca) and Wheaton's Form 40-F
for the year ended December 31, 2022 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management currently
believes to be reasonable, including (without limitation):
· the payment of $625 million to Montage and the satisfaction of
each party's obligations in accordance with the terms of the Koné Gold PMPA;
· the advance by the Company of up to $75 million to Montage in
connection with the Facility and the receipt by the Company of all amounts
owing under the Facility, including, but not limited to, interest;
· the payment of $125 million to Rio2 and the satisfaction of each
party's obligations in accordance with the terms of the Fenix PMPA;
· the advance by the Company of up to $20 million to Rio2 in
connection with the Rio2 standby loan facility and the receipt by WPMI of all
amounts owing under the Rio2 standby loan facility, including, but not limited
to, interest;
· 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 public disclosure and other information Wheaton receives
from the owners and operators of the Mining Operations is accurate and
complete;
· that the production estimates from Mining Operations 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 the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;
· that Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;
· that expectations regarding the resolution of legal and tax
matters will be achieved (including CRA audits involving the Company);
· that Wheaton has properly considered the application of Canadian
tax laws to its structure and operations and that Wheaton will be able to
pay taxes when due;
· that Wheaton has filed its tax returns and paid applicable taxes
in compliance with Canadian tax laws;
· that Wheaton's application of the CRA Settlement is accurate
(including the Company's assessment that there has been no material change in
the Company's facts or change in law or jurisprudence);
· that Wheaton's assessment of the tax exposure and impact on the
Company and its subsidiaries of the implementation of a 15% global minimum tax
is accurate;
· that any sale of Common Shares under the at-the-market equity
program will not have a significant impact on the market price of the Common
Shares and that the net proceeds of sales of Common Shares, if any, will be
used as anticipated;
· that the trading of the 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;
· the estimate of the recoverable amount for any PMPA with an
indicator of impairment;
· that neither Wheaton nor the Mining Operations will suffer
significant impacts as a result of an epidemic or pandemic; 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, 2023, which was filed on March 28, 2024
and other continuous disclosure documents filed by Wheaton since January 1,
2024, available on SEDAR+ at www.sedarplus.ca. Wheaton's Mineral Reserves and
Mineral Resources are subject to the qualifications and notes set forth
therein. Mineral Resources, which are not Mineral Reserves, do not have
demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured,
Indicated and Inferred Resources: The information contained herein has been
prepared in accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States securities
laws. The Company reports information regarding mineral properties,
mineralization and estimates of mineral reserves and mineral resources in
accordance with Canadian reporting requirements which are governed by, and
utilize definitions required by, Canadian National Instrument 43-101 -
Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") - CIM Definition
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM
Council, as amended (the "CIM Standards"). These definitions differ from the
definitions adopted by the United States Securities and Exchange Commission
("SEC") under the United States Securities Act of 1933, as amended (the
"Securities Act") which are applicable to U.S. companies. Accordingly, there
is no assurance any mineral reserves or mineral resources that the Company may
report as "proven mineral reserves", "probable mineral reserves", "measured
mineral resources", "indicated mineral resources" and "inferred mineral
resources" under NI 43-101 would be the same had the Company prepared the
reserve or resource estimates under the standards adopted by the SEC.
Accordingly, information contained herein that describes Wheaton's mineral
deposits may not be comparable to similar information made public by U.S.
companies subject to reporting and disclosure requirements under the United
States federal securities laws and the rules and regulations thereunder.
United States investors are urged to consider closely the disclosure in
Wheaton's Form 40-F, a copy of which may be obtained from Wheaton or from
https://www.sec.gov/edgar.shtml (https://www.sec.gov/edgar.shtml) .
End Notes
1 (#_ednref1) Please refer to disclosure on non-GAAP measures in this press
release. Dividends declared in the referenced calendar quarter, are relative
to the financial results of the prior quarter. Details of the dividend can be
found in Wheaton's news release dated March 13, 2025, titled "Wheaton Precious
Metals Announces Increase to Quarterly Dividend."
2 Statements made in this section contain forward-looking information with
respect to forecast production, production growth, funding outstanding
commitments, continuing to acquire accretive mineral stream interests and the
commencement, timing and achievement of construction, expansion or improvement
projects and readers are cautioned that actual outcomes may vary. Please see
"Cautionary Note Regarding Forward-Looking Statements" for material risks,
assumptions and important disclosure associated with this information.
(3) Gold equivalent forecast production for 2024 and the longer-term outlook
are based on the following commodity price assumptions: $2,000 per ounce gold,
$23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of platinum
and $13.00 per pound cobalt.
(4)Gold equivalent forecast production for 2025 and the longer-term outlook
are based on the following updated commodity price assumptions: $2,600 per
ounce gold, $30 per ounce silver, $950 per ounce palladium, $950 per ounce of
platinum and $13.50 per pound cobalt. For purposes of comparison, 2024 actual
production numbers have been adjusted to reflect 2025 commodity price
assumptions.
(5)Total streaming and royalty agreements relate to precious metals purchase
agreements for the purchase of precious metals and cobalt relating to 18
mining assets which are currently operating, 24 which are at various stages of
development and 4 of which have been placed in care and maintenance or have
been closed.
(6)On October 21, 2024, the Company amended the Fenix PMPA. Under the original
agreement, the Company was to acquire an amount of gold equal to 6% of the
gold production until 90,000 ounces have been delivered, 4% of the gold
production until the delivery of a further 140,000 ounces and 3.5% gold
production thereafter for the life of mine. Under the revised agreement, the
Company is entitled to purchase an additional 16% of payable gold production
(22% in total) (subject to adjustment if there are delays in deliveries
relative to an agreed schedule). Once Rio2 delivers the incremental 95,000
ounces (as adjusted), the stream reverts to the percentages and thresholds
under the original Fenix PMPA (as described). Rio2 has a one-time option to
terminate the requirement to deliver the incremental gold production from the
end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted)
less previously delivered gold ounces, excluding those gold ounces which would
have been delivered under the original Fenix PMPA.
(7)The Koné PMPA provides that Montage will deliver gold equal to 19.5% of
the payable gold production until 400,000 ounces of gold are delivered, then
10.8% until 530,000 ounces are delivered and 5.4% thereafter for the life of
the mine.
(8)The Kurmuk PMPA provides that Allied will deliver gold equal to 6.7% of the
payable gold production until 220,000 ounces of gold are delivered, then 4.8%
thereafter for the life of the mine. During any period in which debt exceeding
$150 million ranks ahead of the gold stream, the stream percentage increases
to 7.15% and decreases to 5.25% once the drop-down threshold is reached.
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