TSX | NYSE | LSE: WPM
Designated News Release
FIRST QUARTER 2021 FINANCIAL RESULTS
VANCOUVER, BC, May 6, 2021 /PRNewswire/ - "Wheaton's first
quarter results illustrate the strength and growth profile of our
diversified, high-quality portfolio with record revenue achieved
and over $230 million in operating
cash flow generated. As a result of these strong results, we have
increased our dividend for the third quarter in a row and now have
net cash on the balance sheet, which we will look to deploy to
further grow our sector-leading portfolio," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "We are excited to report our
first production of cobalt from the Voisey's Bay mine in
Canada and look forward to having
many more years of what we believe is the most environmentally
friendly, socially responsible cobalt production in the world. In
addition, in the first quarter, we added a new precious metals
stream on a top-tier copper development project, Santo Domingo, which should provide additional
growth. Our corporate development team remains exceptionally busy
evaluating a host of new opportunities, and as always, Wheaton is
focused on ensuring our growth is both accretive and sustainable
for all of our stakeholders."
First Quarter 2021 Highlights:
- $232 million in operating cash
flow during the first quarter.
- Record quarterly revenue of $324
million during the first quarter.
- Revolving facility fully repaid during the quarter, resulting
in $191 million of cash on hand.
- Declared quarterly dividend1 of $0.14 per common share representing the third
quarterly dividend increase in a row and a 40% increase relative to
Q1 2020.
- First cobalt and silver deliveries from the Voisey's Bay and
Cozamin mines, respectively.
- New precious metal purchase agreement in respect to the
Santo Domingo project.
Operational Overview
(all figures in US
dollars unless otherwise noted)
|
|
Q1 2021
|
|
Q1 2020
|
Change
|
Units
produced
|
|
|
|
|
|
Gold ounces
|
|
77,733
|
|
94,999
|
(18.2)%
|
Silver
ounces
|
|
6,754
|
|
6,704
|
0.7 %
|
Palladium
ounces
|
|
5,769
|
|
5,312
|
8.6 %
|
Cobalt
pounds
|
|
1,160,921
|
|
-
|
n.a.
|
Gold equivalent
2
|
|
190,359
|
|
194,901
|
(2.3)%
|
Units
sold
|
|
|
|
|
|
Gold ounces
|
|
75,104
|
|
100,405
|
(25.2)%
|
Silver
ounces
|
|
6,657
|
|
4,928
|
35.1 %
|
Palladium
ounces
|
|
5,131
|
|
4,938
|
3.9 %
|
Cobalt
pounds
|
|
132,277
|
|
-
|
n.a.
|
Gold equivalent
2
|
|
175,419
|
|
175,154
|
0.2 %
|
Revenue
|
$
|
324,119
|
$
|
254,789
|
27.2 %
|
Net
earnings
|
$
|
162,002
|
$
|
94,896
|
71 %
|
Per share
|
$
|
0.360
|
$
|
0.212
|
69.8 %
|
Adjusted net
earnings 1
|
$
|
161,132
|
$
|
104,533
|
54.1 %
|
Per share
1
|
$
|
0.358
|
$
|
0.233
|
53.6 %
|
Operating cash
flows
|
$
|
232,154
|
$
|
177,588
|
30.7 %
|
Per share
1
|
$
|
0.516
|
$
|
0.397
|
30.0 %
|
All amounts in
thousands except gold, palladium & gold equivalent ounces and
cobalt pounds produced & sold, per ounce/pound amounts &
per share amounts.
|
Financial Review
Revenues
Revenue was $324 million in the
first quarter of 2021 representing a 27% increase from the first
quarter of 2020 due primarily to a 27% increase in the average
realized gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in
the first quarter of 2021 were $449
per gold equivalent² ounce as compared to $382 in Q1 2020. This resulted in a cash
operating margin¹ of $1,399 per gold
equivalent² ounce sold, an increase of 30% as compared with the
first quarter of 2020.
Balance Sheet (at March
31, 2021)
- Approximately $191 million of
cash on hand.
- The Company's $2 billion
revolving term loan (the "Revolving Facility") fully repaid.
- During Q1 2021, the company received $112 million in proceeds from the sale of its
remaining equity investment in First Majestic Silver Corp. ("First
Majestic").
- During Q1 2021, the Company has repaid $195 million under the Revolving Facility.
- The average effective interest rate for Q1 2021 was 1.17%.
First Quarter Asset Highlights
Salobo: In the first quarter of 2021, Salobo
produced 46,600 ounces of attributable gold, a decrease of
approximately 25% relative to the first quarter of 2020 due to
lower throughput. According to Vale S.A.'s ("Vale") First Quarter
2021 Production and Sales Report, throughput at Salobo was impacted
due to changes in maintenance routines which restricted mine
movement, with further impacts on feed grade for the
quarter. As per Vale's First Quarter 2021 Performance Report,
physical completion of the Salobo III mine expansion was
73% at the end of the first quarter and is on track for
start-up in the first half of 2022.
Peñasquito: In the first quarter of 2021,
Peñasquito produced 2.2 million ounces of attributable silver, a
decrease of approximately 17% relative to the first quarter of 2020
primarily due to the mining of lower grade material as per the mine
plan.
Antamina: In the first quarter of 2021, Antamina
produced 1.6 million ounces of attributable silver, an increase of
approximately 20% relative to the first quarter of 2020, due to
higher grades, recovery and throughput.
San Dimas: In the first quarter of 2021, San Dimas
produced 10,500 ounces of attributable gold, a decrease of
approximately 7% relative to the first quarter of 2020 due
primarily to lower grades. As per First Majestic's First Quarter
2021 Production Report, increased ore development activities
resulted in lower average ore grades processed in the
plant.
Constancia: In the first quarter of 2021,
Constancia produced 0.4 million ounces of attributable silver and
2,500 ounces of attributable gold, a decrease of approximately 12%
and 33%, respectively, relative to the first quarter of 2020, with
the reduction in gold production being primarily due to inclusion
of 2,005 ounces received in the first quarter of 2020 as a delay
payment relative to Pampacancha. Hudbay Minerals Inc.
("Hudbay") announced on April 7,
2021, that the final land user agreement for Pampacancha has
been completed and Hudbay now has full access to the site and has
begun pit development activities. As per Hudbay's MD&A for the
year ended December 31, 2020, Hudbay
no longer expects to mine four million tonnes of ore from the
Pampacancha deposit by June 30, 2021,
and should they fail to meet this milestone, they will be required
to deliver an additional 8,020 ounces of gold to the Company in
four equal quarterly installments, commencing September 30, 2021. Hudbay and the Company are
currently in discussions about, among other things, alternatives to
defer the additional gold deliveries over the Pampacancha mine
life.
Sudbury: In the
first quarter of 2021, Vale's Sudbury mines produced 6,200 ounces of
attributable gold, a decrease of approximately 20% relative to the
first quarter of 2020, due primarily to lower throughput.
Other Silver: In the first quarter of 2021,
total Other Silver attributable production was 2.6 million ounces,
an increase of approximately 13% relative to the first quarter of
2020 primarily due to the initial production from the Cozamin mine.
As per the precious metals purchase agreement ("PMPA") with
Capstone Mining Corp. ("Capstone"), Wheaton is entitled to any
silver sold from the Cozamin mine to an offtaker as of December 1, 2020, resulting in reported
production in the first quarter of 2021 including some material
processed in the previous quarter.
Voisey's Bay: In the first quarter of 2021,
the Voisey's Bay mine produced 1,161,000 pounds of attributable
cobalt. As at the end of the first quarter 2021, approximately
132,000 pounds of cobalt were held in inventory by Wheaton and
818,600 pounds were produced but not delivered. As per the PMPA
with Vale, Wheaton is entitled to any cobalt processed at the Long
Harbour Processing Plant as of January 1,
2021, resulting in reported production in the first quarter
of 2021 including some material produced at the Voisey's Bay Mine
in the previous quarter. As per Vale's First Quarter 2021
Performance Report, physical completion of the Voisey's Bay
underground mine extension was 62% at the end of the first quarter
and is on track for start-up in the first half of 2021, with full
completion scheduled for 2023.
Rosemont: Hudbay announced on
March 29, 2021, the intersection of
high-grade copper sulphide and oxide mineralization at shallow
depth on its wholly-owned patented mining claims located within
seven kilometers of its Rosemont
copper project in Arizona. As a
result of the discovery, Hudbay has initiated a second phase of
exploration drilling in 2021 with a 70,000 foot follow-up drill
program and has doubled the number of drill rigs operating at site
to six. The discovery is included in Wheaton's area of interest
under the PMPA.
Produced But Not Yet Delivered3
As at March 31, 2021, payable
ounces and pounds attributable to the Company produced but not yet
delivered amounted to:
- 69,300 payable gold ounces, a decrease of 1,300 ounces during
Q1 2021, primarily due to a reduction during the period relative to
the Salobo mine partially offset by increases at the 777 and
Sudbury mines.
- 3.7 million payable silver ounces, a decrease of 0.8 million
ounces during Q1 2021, primarily due to reductions during the
period relative to the Antamina, Yauliyacu and Peñasquito
mines.
- 5,400 payable palladium ounces, a decrease of 200 ounces during
Q1 2021.
- 818,600 payable cobalt pounds.
Detailed mine-by-mine production and sales figures can be found
in the Appendix to this press release and in Wheaton's consolidated
MD&A in the 'Results of Operations and Operational Review'
section.
Corporate Development
Santo Domingo
Mine: On March 25,
2021, the Company announced that it had entered into a PMPA
with Capstone in respect to the Santo
Domingo project located in the Atacama Region, Chile. The Company will purchase 100% of the
payable gold production until 285,000 ounces have been delivered,
thereafter dropping to 67% of payable gold production for the life
of the mine. The Company will pay Capstone a total upfront cash
consideration of $290 million,
$30 million of which was paid on
April 21, 2021, and the remainder of
which is payable during construction of the Santo Domingo project, subject to customary
conditions being satisfied, including Capstone attaining sufficient
financing to cover total expected capital expenditures. In
addition, Wheaton will make ongoing payments for gold ounces
delivered equal to 18% of the spot gold price until the market
value of gold delivered to the Company, net of the per ounce cash
payment, exceeds the initial upfront cash deposit, and 22% of the
spot gold price thereafter.
Other Corporate Development Updates:
- On February 19, 2021, the
previously announced PMPA relative to the Cozamin mine was closed,
with the upfront cash consideration of $150
million being paid to Capstone on that date.
- On April 15, 2021, the previously
announced PMPA relative to the Marmato mine was closed, with the
initial upfront cash consideration of $34
million being paid to Aris Gold Corporation ("Aris") on that
date.
- On January 5, 2021, the Company
acquired a 2.0% net smelter return royalty interest relative to the
Brewery Creek mine located in the Yukon Territories, Canada.
COVID-19 Community Support and Response Fund
In the second quarter of 2020, Wheaton announced the launch of a
$5 million Community Support and
Response Fund (the "CSR Fund") to support global efforts to combat
the COVID-19 pandemic and its impacts on our communities. The CSR
Fund is designed to meet the immediate needs of the communities in
which Wheaton and its mining partners operate. This fund is
incremental to Wheaton's already active Community Investment
Program that currently provides support to over 50 programs in
multiple communities around the world. As of March 31, 2021, the Company has made donations
totalling approximately $3 million
with the CSR Fund.
Webcast and Conference Call Details
A conference call and webcast will be held on Friday, May 7, 2021 starting at 11:00 am (Eastern Time) 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:
|
1-888-231-8191
|
Dial from outside
Canada or the US:
|
1-647-427-7450
|
Pass code:
|
3449069
|
Live audio
webcast:
|
Webcast
URL
|
Participants should dial in five to ten minutes before the
call.
The accompanying slideshow will also be available in PDF format
on the 'Events' page of the Wheaton Precious Metals website before
the conference call.
The conference call will be recorded and available until
May 14, 2021 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:
|
1-855-859-2056
|
Dial from outside
Canada or the
US:
|
1-416-849-0833
|
Pass
code:
|
3449069
|
Archived audio
webcast:
|
Webcast
URL
|
This earnings release should be read in conjunction with Wheaton
Precious Metals' MD&A and Financial Statements, which are
available on the Company's website at www.wheatonpm.com and
have been posted on SEDAR at www.sedar.com.
Mr. Wes Carson, P.Eng., Vice
President, Mining Operations, is a "qualified person" as such term
is defined under National Instrument 43-101, and has reviewed and
approved the technical information disclosed in this news
release.
Wheaton Precious Metals believes that there are no significant
differences between its corporate governance practices and
those required to be followed by United
States domestic issuers under the NYSE listing standards.
This confirmation is located on the Wheaton Precious Metals website
at
http://www.wheatonpm.com/Company/corporate-governance/default.aspx
.
About Wheaton Precious Metals Corp. and Outlook
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton
creates sustainable value through streaming.
Wheaton's estimated attributable production in 2021 is forecast
to be 370,000 to 400,000 ounces of gold, 22.5 to 24.0 million
ounces of silver, and 40,000 to 45,000 gold equivalent
ounces2 ("GEOs") of other metals, resulting in
production of approximately 720,000 to 780,000
GEOs2, unchanged from previous guidance. For the
five-year period ending in 2025, the Company estimates that average
production will amount to 810,000 GEOs4. For the
ten-year period ending in 2030, the Company estimates that average
annual production will amount to 830,000 GEOs4.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton
Precious Metals", "Wheaton" or the "Company") MD&A and
financial statements, reference to the Company includes the
Company's wholly owned subsidiaries.
End Notes
_____________________________
|
1 Please
refer to non-IFRS measures at the end of this press release.
Dividends declared in the referenced calendar quarter, relative to
the financial results of the prior quarter.
|
2
Commodity price assumptions for the gold equivalent production and
sales in 2021 and long-term forecasts are $1,800 / ounce gold, $25
/ ounce silver, and $2,300 / ounce palladium and $17.75 / pound
cobalt. Other metal includes palladium and cobalt.
|
3 Payable gold, silver and palladium
ounces and cobalt pounds produced but not yet delivered are based
on management estimates only and rely upon information provided by
the owners and operators of mining operations and may be revised
and updated in future periods as additional information is
received.
|
4 Gold equivalent guidance based on
the commodity prices outlined in note 2 above. Five- and ten-year
guidance do not include optionality production from Pascua Lama,
Navidad, Cotabambas, or additional expansions at Salobo outside of
project currently in construction. In addition, five-year guidance
also does not include any production from Rosemont, Toroparu,
Kutcho, or the Victor project at Sudbury.
|
Condensed Interim Consolidated Statements of
Earnings
|
Three Months
Ended
March 31
|
(US dollars and
shares in thousands, except per share amounts -
unaudited)
|
2021
|
2020
|
Sales
|
$
|
324,119
|
$
|
254,789
|
Cost of
sales
|
|
|
|
|
Cost of sales,
excluding depletion
|
$
|
78,783
|
$
|
66,908
|
Depletion
|
|
70,173
|
|
64,841
|
Total cost of
sales
|
$
|
148,956
|
$
|
131,749
|
Gross
margin
|
$
|
175,163
|
$
|
123,040
|
General and
administrative expenses
|
|
11,971
|
|
13,181
|
Earnings from
operations
|
$
|
163,192
|
$
|
109,859
|
Other (income)
expense
|
|
119
|
|
(597)
|
Earnings before
finance costs and income taxes
|
$
|
163,073
|
$
|
110,456
|
Finance
costs
|
|
1,573
|
|
7,118
|
Earnings before
income taxes
|
$
|
161,500
|
$
|
103,338
|
Income tax recovery
(expense)
|
|
502
|
|
(8,442)
|
Net
earnings
|
$
|
162,002
|
$
|
94,896
|
Basic earnings per
share
|
$
|
0.360
|
$
|
0.212
|
Diluted earnings per
share
|
$
|
0.360
|
$
|
0.211
|
Weighted average
number of shares outstanding
|
|
|
|
|
Basic
|
|
449,509
|
|
447,805
|
Diluted
|
|
450,600
|
|
448,891
|
Condensed Interim Consolidated Balance Sheets
|
As at
March 31
|
As at
December 31
|
(US dollars in
thousands - unaudited)
|
2021
|
2020
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
191,162
|
$
|
192,683
|
Accounts
receivable
|
|
6,094
|
|
5,883
|
Other
|
|
4,228
|
|
3,265
|
Total current
assets
|
$
|
201,484
|
$
|
201,831
|
Non-current
assets
|
|
|
|
|
Mineral stream
interests
|
$
|
5,568,364
|
$
|
5,488,391
|
Early deposit mineral
stream interests
|
|
33,991
|
|
33,241
|
Mineral royalty
interest
|
|
6,606
|
|
3,047
|
Long-term equity
investments
|
|
86,522
|
|
199,878
|
Convertible notes
receivable
|
|
12,591
|
|
11,353
|
Property, plant and
equipment
|
|
5,991
|
|
6,289
|
Other
|
|
12,863
|
|
13,242
|
Total non-current
assets
|
$
|
5,726,928
|
$
|
5,755,441
|
Total
assets
|
$
|
5,928,412
|
$
|
5,957,272
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts payable and
accrued liabilities
|
$
|
10,394
|
$
|
13,023
|
Dividends
payable
|
|
58,478
|
|
|
Current portion of
performance share units
|
|
26,428
|
|
17,297
|
Current portion of
lease liabilities
|
|
789
|
|
773
|
Other
|
|
883
|
|
76
|
Total current
liabilities
|
$
|
96,972
|
$
|
31,169
|
Non-current
liabilities
|
|
|
|
|
Bank debt
|
$
|
-
|
$
|
195,000
|
Lease
liabilities
|
|
2,687
|
|
2,864
|
Deferred income
taxes
|
|
235
|
|
214
|
Performance share
units
|
|
3,250
|
|
11,784
|
Pension
liability
|
|
1,841
|
|
1,670
|
Total non-current
liabilities
|
$
|
8,013
|
$
|
211,532
|
Total
liabilities
|
$
|
104,985
|
$
|
242,701
|
Shareholders'
equity
|
|
|
|
|
Issued
capital
|
$
|
3,656,400
|
$
|
3,646,291
|
Reserves
|
|
68,986
|
|
126,882
|
Retained
earnings
|
|
2,098,041
|
|
1,941,398
|
Total shareholders'
equity
|
$
|
5,823,427
|
$
|
5,714,571
|
Total liabilities and
shareholders' equity
|
$
|
5,928,412
|
$
|
5,957,272
|
Condensed Interim Consolidated Statements of Cash
Flows
|
Three Months
Ended
March 31
|
(US dollars in
thousands - unaudited)
|
2021
|
2020
|
Operating
activities
|
|
|
|
|
Net
earnings
|
$
|
162,002
|
$
|
94,896
|
Adjustments
for
|
|
|
|
|
Depreciation and
depletion
|
|
70,649
|
|
65,352
|
Interest
expense
|
|
262
|
|
5,978
|
Equity settled stock
based compensation
|
|
1,325
|
|
1,503
|
Performance share
units
|
|
305
|
|
3,277
|
Pension
expense
|
|
151
|
|
35
|
Income tax expense
(recovery)
|
|
(502)
|
|
8,442
|
Loss (gain) on fair
value adjustment of share purchase warrants held
|
|
950
|
|
71
|
Fair value (gain) loss
on convertible note receivable
|
|
(1,238)
|
|
790
|
Investment income
recognized in net earnings
|
|
(2)
|
|
(117)
|
Other
|
|
593
|
|
(317)
|
Change in non-cash
working capital
|
|
(1,972)
|
|
4,620
|
Cash generated from
operations before income taxes and interest
|
$
|
232,523
|
$
|
184,530
|
Income taxes
recovered (paid)
|
|
(30)
|
|
89
|
Interest
paid
|
|
(341)
|
|
(7,148)
|
Interest
received
|
|
2
|
|
117
|
Cash generated from
operating activities
|
$
|
232,154
|
$
|
177,588
|
Financing
activities
|
|
|
|
|
Bank debt
repaid
|
$
|
(195,000)
|
$
|
(159,000)
|
Credit facility
extension fees
|
|
-
|
|
(1,360)
|
Share purchase
options exercised
|
|
4,793
|
|
6,922
|
Lease
payments
|
|
(214)
|
|
(167)
|
Cash (used for)
generated from financing activities
|
$
|
(190,421)
|
$
|
(153,605)
|
Investing
activities
|
|
|
|
|
Mineral stream
interests
|
$
|
(151,019)
|
$
|
-
|
Early deposit mineral
stream interests
|
|
(750)
|
|
(750)
|
Mineral royalty
interest
|
|
(3,561)
|
|
-
|
Proceeds on disposal
of long-term investments
|
|
112,188
|
|
-
|
Other
|
|
(134)
|
|
(257)
|
Cash generated from
(used for) investing activities
|
$
|
(43,276)
|
$
|
(1,007)
|
Effect of exchange
rate changes on cash and cash equivalents
|
$
|
22
|
$
|
(286)
|
(Decrease) increase
in cash and cash equivalents
|
$
|
(1,521)
|
$
|
22,690
|
Cash and cash
equivalents, beginning of period
|
|
192,683
|
|
103,986
|
Cash and cash
equivalents, end of period
|
$
|
191,162
|
$
|
126,676
|
Summary of Units Produced
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Q2
2020
|
Q1
2020
|
Q4
2019
|
Q3
2019
|
Q2
2019
|
Gold ounces produced
²
|
|
|
|
|
|
|
|
|
|
Salobo
|
46,622
|
62,854
|
63,408
|
59,104
|
62,575
|
74,716
|
73,615
|
67,056
|
|
Sudbury
3
|
6,208
|
6,659
|
3,798
|
9,257
|
7,795
|
6,468
|
6,082
|
9,360
|
|
Constancia
8
|
2,453
|
3,929
|
3,780
|
3,470
|
3,681
|
4,757
|
5,172
|
4,533
|
|
San Dimas 4,
8
|
10,491
|
11,652
|
9,228
|
6,074
|
11,318
|
11,352
|
11,239
|
11,496
|
|
Stillwater
5
|
3,041
|
3,290
|
3,176
|
3,222
|
2,955
|
3,585
|
3,238
|
3,675
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Minto
6
|
2,638
|
789
|
1,832
|
2,928
|
2,124
|
2,189
|
-
|
-
|
|
|
777
9
|
6,280
|
2,866
|
5,278
|
4,728
|
4,551
|
3,987
|
4,278
|
4,788
|
|
Total
Other
|
8,918
|
3,655
|
7,110
|
7,656
|
6,675
|
6,176
|
4,278
|
4,788
|
Total gold ounces
produced
|
77,733
|
92,039
|
90,500
|
88,783
|
94,999
|
107,054
|
103,624
|
100,908
|
Silver ounces
produced 2
|
|
|
|
|
|
|
|
|
|
Peñasquito
8
|
2,202
|
2,014
|
1,992
|
967
|
2,658
|
1,895
|
2,026
|
702
|
|
Antamina
8
|
1,577
|
1,930
|
1,516
|
612
|
1,311
|
1,342
|
1,223
|
1,334
|
|
Constancia
8
|
406
|
478
|
430
|
254
|
461
|
632
|
686
|
552
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Los Filos
8
|
23
|
6
|
17
|
14
|
29
|
55
|
33
|
37
|
|
|
Zinkgruvan
|
420
|
515
|
498
|
389
|
662
|
670
|
587
|
590
|
|
|
Yauliyacu
8
|
737
|
454
|
679
|
273
|
557
|
358
|
620
|
627
|
|
|
Stratoni
|
165
|
185
|
156
|
148
|
183
|
147
|
131
|
172
|
|
|
Minto
6
|
21
|
16
|
15
|
19
|
18
|
18
|
-
|
-
|
|
|
Neves-Corvo
|
345
|
420
|
281
|
479
|
377
|
385
|
431
|
392
|
|
|
Aljustrel
|
474
|
440
|
348
|
388
|
352
|
325
|
240
|
322
|
|
|
Cozamin
|
230
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Keno Hill
|
24
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
777
9
|
130
|
51
|
96
|
108
|
96
|
81
|
62
|
93
|
|
Total
Other
|
2,569
|
2,087
|
2,090
|
1,818
|
2,274
|
2,039
|
2,104
|
2,233
|
Total silver ounces
produced
|
6,754
|
6,509
|
6,028
|
3,651
|
6,704
|
5,908
|
6,039
|
4,821
|
Palladium ounces
produced ²
|
|
|
|
|
|
|
|
|
|
Stillwater
5
|
5,769
|
5,672
|
5,444
|
5,759
|
5,312
|
6,057
|
5,471
|
5,736
|
Cobalt pounds
produced ²
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
1,160,921
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
GEOs produced
7
|
190,359
|
189,682
|
181,184
|
146,857
|
194,901
|
196,850
|
194,499
|
175,185
|
SEOs produced
7
|
13,706
|
13,657
|
13,045
|
10,574
|
14,033
|
14,173
|
14,004
|
12,613
|
Average payable rate
2
|
|
|
|
|
|
|
|
|
|
Gold
|
95.0%
|
95.2%
|
95.3%
|
94.7%
|
95.1%
|
95.6%
|
95.1%
|
95.3%
|
|
Silver
|
86.6%
|
86.3%
|
86.1%
|
81.9%
|
85.6%
|
85.3%
|
85.1%
|
83.3%
|
|
Palladium
|
85.1%
|
98.2%
|
97.0%
|
86.5%
|
93.0%
|
99.4%
|
83.5%
|
87.6%
|
|
Cobalt
|
93.3%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
|
GEO
7
|
90.4 %
|
91.1%
|
91.1%
|
89.8%
|
90.4%
|
91.5%
|
90.4%
|
90.4%
|
1)
|
All figures in
thousands except cobalt pounds and 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 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)
|
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. Effective April
1, 2020, the fixed gold to silver exchange ratio was revised to
90:1, with the 70:1 ratio being reinstated on October 15, 2020. For
reference, attributable silver production from prior periods is as
follows: Q1-2021 – 437,000 ounces; Q4-2020 – 476,000 ounces;
Q3-2020 – 420,000 ounces; Q2-2020 – 276,000 ounces; Q1-2020 –
419,000 ounces; Q4-2019 – 415,000 ounces; Q3-2019 – 410,000 ounces;
and Q2-2019 – 401,000 ounces.
|
5)
|
Comprised of the
Stillwater and East Boulder gold and palladium
interests.
|
6)
|
The Minto mine was
placed into care and maintenance from October 2018 to October
2019.
|
7)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2021.
|
8)
|
Operations at these
mines had been temporarily suspended during the second quarter of
2020 as a result of the COVID-19 pandemic. During the second half
of 2020, all of the operations were restarted. Additionally,
operations at Los Filos were suspended from September 3, 2020 to
December 23, 2020 as the result of an illegal road blockade by
members of the nearby Carrizalillo community.
|
9)
|
Operations at 777
were temporarily suspended from October 11, 2020 to November 25,
2020 as a result of an incident that occurred on October 9th during
routine maintenance of the hoist rope and
skip.
|
Summary of Units Sold
|
Q1
2021
|
Q4
2020
|
Q3
2020
|
Q2
2020
|
Q1
2020
|
Q4
2019
|
Q3
2019
|
Q2
2019
|
Gold ounces
sold
|
|
|
|
|
|
|
|
|
|
Salobo
|
51,423
|
53,197
|
59,584
|
68,487
|
74,944
|
58,137
|
63,064
|
57,715
|
|
Sudbury
2
|
3,691
|
7,620
|
7,858
|
7,414
|
4,822
|
7,394
|
7,600
|
8,309
|
|
Constancia
7
|
1,676
|
3,853
|
4,112
|
3,024
|
3,331
|
5,108
|
4,742
|
4,409
|
|
San Dimas
7
|
10,273
|
11,529
|
9,687
|
6,030
|
11,358
|
11,499
|
11,374
|
10,284
|
|
Stillwater
3
|
3,074
|
3,069
|
3,015
|
3,066
|
3,510
|
2,925
|
3,314
|
3,301
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Minto
4
|
2,390
|
1,540
|
-
|
-
|
-
|
-
|
-
|
765
|
|
|
777
|
2,577
|
5,435
|
5,845
|
4,783
|
2,440
|
4,160
|
4,672
|
5,294
|
|
Total
Other
|
4,967
|
6,975
|
5,845
|
4,783
|
2,440
|
4,160
|
4,672
|
6,059
|
Total gold ounces
sold
|
75,104
|
86,243
|
90,101
|
92,804
|
100,405
|
89,223
|
94,766
|
90,077
|
Silver ounces
sold
|
|
|
|
|
|
|
|
|
|
Peñasquito
7
|
2,174
|
1,417
|
1,799
|
1,917
|
2,310
|
1,268
|
1,233
|
912
|
|
Antamina
7
|
1,930
|
1,669
|
1,090
|
788
|
1,244
|
1,227
|
1,059
|
1,186
|
|
Constancia
7
|
346
|
442
|
415
|
254
|
350
|
672
|
521
|
478
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Los Filos
7
|
27
|
-
|
19
|
25
|
37
|
26
|
44
|
26
|
|
|
Zinkgruvan
|
293
|
326
|
492
|
376
|
447
|
473
|
459
|
337
|
|
|
Yauliyacu
7
|
1,014
|
15
|
580
|
704
|
9
|
561
|
574
|
542
|
|
|
Stratoni
|
117
|
169
|
134
|
77
|
163
|
120
|
126
|
240
|
|
|
Minto
4
|
26
|
20
|
-
|
-
|
-
|
-
|
-
|
2
|
|
|
Neves-Corvo
|
239
|
145
|
201
|
236
|
204
|
154
|
243
|
194
|
|
|
Aljustrel
|
257
|
280
|
148
|
252
|
123
|
121
|
139
|
216
|
|
|
Cozamin
|
173
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Keno Hill
|
12
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
777
|
49
|
93
|
121
|
100
|
41
|
62
|
86
|
108
|
|
Total
Other
|
2,207
|
1,048
|
1,695
|
1,770
|
1,024
|
1,517
|
1,671
|
1,665
|
Total silver ounces
sold
|
6,657
|
4,576
|
4,999
|
4,729
|
4,928
|
4,684
|
4,484
|
4,241
|
Palladium ounces
sold
|
|
|
|
|
|
|
|
|
|
Stillwater
3
|
5,131
|
4,591
|
5,546
|
4,976
|
4,938
|
5,312
|
4,907
|
5,273
|
Cobalt pounds
sold
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
132,277
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
GEOs sold
5
|
175,419
|
155,665
|
166,611
|
164,844
|
175,154
|
161,066
|
163,314
|
155,723
|
SEOs sold
5
|
12,630
|
11,208
|
11,996
|
11,869
|
12,611
|
11,597
|
11,759
|
11,212
|
Cumulative payable
units PBND 6
|
|
|
|
|
|
|
|
|
|
Gold
ounces
|
69,262
|
70,555
|
75,750
|
79,632
|
88,383
|
98,475
|
85,335
|
81,535
|
|
Silver
ounces
|
3,717
|
4,486
|
3,437
|
3,222
|
4,961
|
4,142
|
3,796
|
3,102
|
|
Palladium
ounces
|
5,373
|
5,597
|
4,616
|
4,883
|
4,875
|
4,872
|
4,163
|
4,504
|
|
Cobalt
pounds
|
818,584
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
GEO
5
|
135,828
|
140,008
|
129,391
|
130,623
|
163,521
|
162,225
|
143,380
|
130,374
|
|
SEO
5
|
9,198
|
10,081
|
9,316
|
9,405
|
11,774
|
11,680
|
10,323
|
9,387
|
Inventory on
hand
|
|
|
|
|
|
|
|
|
|
Cobalt
pounds
|
132,277
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1)
|
All figures in
thousands except cobalt pounds and 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 Minto mine was
placed into care and maintenance from October 2018 to October
2019.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2021.
|
6)
|
Payable gold, silver
and palladium ounces as well as cobalt pounds produced but not yet
delivered ("PBND") are based on management estimates. These figures
may be updated in future periods as additional information is
received.
|
7)
|
Operations at these
mines had been temporarily suspended during the second quarter of
2020 as a result of the COVID-19 pandemic. During the second half
of 2020, all of the operations were restarted.
|
Results of Operations
The operating results of the Company's reportable operating
segments are summarized in the tables and commentary below.
Three Months Ended
March 31, 2021
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s Per Unit)
|
Average
Cash Cost
($'s Per
Unit)3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
46,622
|
51,423
|
$
|
1,796
|
$
|
412
|
$
|
374
|
$
|
92,356
|
$
|
51,946
|
$
|
71,163
|
$
|
2,490,127
|
Sudbury
4
|
6,208
|
3,691
|
|
1,812
|
|
400
|
|
1,024
|
|
6,688
|
|
1,431
|
|
5,219
|
|
317,235
|
Constancia
|
2,453
|
1,676
|
|
1,796
|
|
408
|
|
315
|
|
3,010
|
|
1,798
|
|
2,326
|
|
105,041
|
San Dimas
|
10,491
|
10,273
|
|
1,796
|
|
612
|
|
322
|
|
18,450
|
|
8,851
|
|
12,162
|
|
178,891
|
Stillwater
|
3,041
|
3,074
|
|
1,796
|
|
329
|
|
397
|
|
5,521
|
|
3,290
|
|
4,510
|
|
223,090
|
Other
5
|
8,918
|
4,967
|
|
1,812
|
|
629
|
|
-
|
|
9,000
|
|
5,878
|
|
5,855
|
|
7,591
|
|
77,733
|
75,104
|
$
|
1,798
|
$
|
450
|
$
|
374
|
$
|
135,025
|
$
|
73,194
|
$
|
101,235
|
$
|
3,321,975
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,202
|
2,174
|
$
|
26.21
|
$
|
4.29
|
$
|
3.55
|
$
|
56,983
|
$
|
39,940
|
$
|
47,655
|
$
|
342,857
|
Antamina
|
1,577
|
1,930
|
|
26.21
|
|
5.18
|
|
7.53
|
|
50,581
|
|
26,058
|
|
40,591
|
|
612,401
|
Constancia
|
406
|
346
|
|
26.21
|
|
6.02
|
|
7.56
|
|
9,072
|
|
4,372
|
|
6,988
|
|
214,428
|
Other
6
|
2,569
|
2,207
|
|
25.95
|
|
9.41
|
|
6.30
|
|
57,247
|
|
22,589
|
|
39,098
|
|
612,237
|
|
6,754
|
6,657
|
$
|
26.12
|
$
|
6.33
|
$
|
5.82
|
$
|
173,883
|
$
|
92,959
|
$
|
134,332
|
$
|
1,781,923
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
5,769
|
5,131
|
$
|
2,392
|
$
|
427
|
$
|
442
|
$
|
12,275
|
$
|
7,813
|
$
|
10,084
|
$
|
239,118
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
1,160,921
|
132,277
|
$
|
22.19
|
$
|
4.98
|
$
|
8.17
|
$
|
2,936
|
$
|
1,197
|
$
|
(966)
|
$
|
225,348
|
Operating
results
|
|
|
|
|
|
|
|
|
$
|
324,119
|
$
|
175,163
|
$
|
244,685
|
$
|
5,568,364
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
$
|
(11,971)
|
$
|
(13,592)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(1,573)
|
|
(1,229)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
(119)
|
|
2,320
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
502
|
|
(30)
|
|
|
Total
other
|
|
|
|
|
|
|
|
|
|
|
$
|
(13,161)
|
$
|
(12,531)
|
$
|
360,048
|
|
|
|
|
|
|
|
|
|
|
|
$
|
162,002
|
$
|
232,154
|
$
|
5,928,412
|
1)
|
Units produced and
sold relative to gold, silver and palladium are reported in ounces,
while cobalt is reported in pounds. All figures in thousands except
cobalt pounds produced and sold, gold and palladium ounces produced
and sold and per unit amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests and the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating 777, Minto and Marmato gold interests, the non-operating
Rosemont gold interest and the newly acquired Santo Domingo gold
interest.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver
interests and the non-operating Loma de La Plata, Pascua-Lama
and Rosemont silver interests.
|
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March
31, 2021 were as follows:
Three Months Ended
March 31, 2021
|
|
Ounces
Produced 1, 2
|
Ounces
Sold 2
|
Average
Realized
Price
($'s Per
Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 3
|
Cash
Operating
Margin
($'s Per
Ounce) 4
|
Average
Depletion
($'s Per
Ounce)
|
Gross
Margin
($'s Per
Ounce)
|
Gold equivalent basis
5
|
190,359
|
175,419
|
$
|
1,848
|
$
|
449
|
$
|
1,399
|
$
|
400
|
$
|
999
|
Silver equivalent
basis 5
|
13,706
|
12,630
|
$
|
25.66
|
$
|
6.24
|
$
|
19.42
|
$
|
5.56
|
$
|
13.86
|
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces
produced and sold in thousands.
|
3)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release.
|
4)
|
Refer to discussion
on non-IFRS measure (iv) at the end of this press
release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2021.
|
Three Months Ended
March 31, 2020
|
|
Units
Produced²
|
Units
Sold
|
Average
Realized
Price
($'s Per Unit)
|
Average
Cash Cost
($'s Per
Unit)3
|
Average
Depletion
($'s Per
Unit)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salobo
|
62,575
|
74,944
|
$
|
1,589
|
$
|
408
|
$
|
374
|
$
|
119,094
|
$
|
60,459
|
$
|
89,137
|
$
|
2,577,202
|
Sudbury
4
|
7,795
|
4,822
|
|
1,585
|
|
400
|
|
828
|
|
7,641
|
|
1,719
|
|
5,616
|
|
340,050
|
Constancia
|
3,681
|
3,331
|
|
1,589
|
|
404
|
|
338
|
|
5,294
|
|
2,823
|
|
3,948
|
|
109,281
|
San Dimas
|
11,318
|
11,358
|
|
1,589
|
|
606
|
|
315
|
|
18,049
|
|
7,587
|
|
11,166
|
|
190,787
|
Stillwater
|
2,955
|
3,510
|
|
1,589
|
|
284
|
|
449
|
|
5,578
|
|
3,006
|
|
4,582
|
|
228,418
|
Other
5
|
6,675
|
2,440
|
|
1,585
|
|
420
|
|
305
|
|
3,866
|
|
2,096
|
|
2,840
|
|
12,424
|
|
94,999
|
100,405
|
$
|
1,589
|
$
|
426
|
$
|
389
|
$
|
159,522
|
$
|
77,690
|
$
|
117,289
|
$
|
3,458,162
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Peñasquito
|
2,658
|
2,310
|
$
|
17.41
|
$
|
4.26
|
$
|
3.24
|
$
|
40,223
|
$
|
22,893
|
$
|
30,383
|
$
|
367,212
|
Antamina
|
1,311
|
1,244
|
|
17.41
|
|
3.43
|
|
8.74
|
|
21,661
|
|
6,524
|
|
17,397
|
|
657,937
|
Constancia
|
461
|
350
|
|
17.41
|
|
5.96
|
|
7.63
|
|
6,088
|
|
1,337
|
|
4,004
|
|
225,520
|
Other
6
|
2,274
|
1,024
|
|
15.57
|
|
5.83
|
|
2.56
|
|
15,945
|
|
7,345
|
|
14,126
|
|
485,068
|
|
6,704
|
4,928
|
$
|
17.03
|
$
|
4.50
|
$
|
4.80
|
$
|
83,917
|
$
|
38,099
|
$
|
65,910
|
$
|
1,735,737
|
Palladium
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stillwater
|
5,312
|
4,938
|
$
|
2,298
|
$
|
402
|
$
|
428
|
$
|
11,350
|
$
|
7,251
|
$
|
9,364
|
$
|
247,856
|
Cobalt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Voisey's
Bay
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Operating
results
|
|
|
|
|
|
|
|
|
$
|
254,789
|
$
|
123,040
|
$
|
192,563
|
$
|
5,669,265
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
$
|
(13,181)
|
$
|
(10,732)
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
|
|
|
(7,118)
|
|
(8,110)
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
597
|
|
3,778
|
|
|
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(8,442)
|
|
89
|
|
|
Total
other
|
|
|
|
|
|
|
|
|
|
|
$
|
(28,144)
|
$
|
(14,975)
|
$
|
407,676
|
|
|
|
|
|
|
|
|
|
|
|
$
|
94,896
|
$
|
177,588
|
$
|
6,076,941
|
1)
|
Units produced and
sold relative to gold, silver and palladium are reported in ounces,
while cobalt is reported in pounds. All figures in thousands except
cobalt pounds produced and sold, gold and palladium ounces produced
and sold and per unit amounts.
|
2)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
3)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release.
|
4)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests as well as the non-operating Stobie and Victor gold
interests.
|
5)
|
Comprised of the
operating Minto and 777 gold interests in addition to the
non-operating Rosemont gold interest.
|
6)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo,
Aljustrel, Minto and 777 silver interests as well as the
non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont
silver interests.
|
On a gold equivalent and silver equivalent basis, results for
the Company for the three months ended March
31, 2020 were as follows:
1)
|
Quantity produced
represent the amount of gold, silver, palladium and cobalt
contained in concentrate or doré prior to smelting or refining
deductions. Production figures are based on information provided by
the operators of the mining operations to which the mineral stream
interests relate or management estimates in those situations where
other information is not available. Certain production figures may
be updated in future periods as additional information is
received.
|
2)
|
Silver ounces
produced and sold in thousands.
|
3)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release.
|
4)
|
Refer to discussion
on non-IFRS measure (iv) at the end of this press
release.
|
5)
|
GEOs and SEOs, which
are provided to assist the reader, are based on the following
commodity price assumptions: $1,800 per ounce gold; $25.00 per
ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's
production guidance for 2021.
|
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS
performance measures, including (i) adjusted net earnings and
adjusted net earnings per share; (ii) operating cash flow per share
(basic and diluted); (iii) average cash costs of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis,
with the Company receiving its first deliveries of cobalt relative
to its Voisey's Bay PMPA during the first quarter of 2021; and (iv)
cash operating margin. The Company has removed the non-IFRS measure
relative to net debt as Wheaton fully repaid its debt during the
first quarter of 2021.
i.
|
Adjusted net earnings
and adjusted net earnings per share are calculated by removing the
effects of the non-cash impairment charges, non-cash fair value
(gains) losses and other one-time (income) expenses as well as the
reversal of non-cash income tax expense (recovery) which is offset
by income tax expense (recovery) recognized in the Statements of
Shareholders' Equity and OCI, respectively. The Company believes
that, in addition to conventional measures prepared in accordance
with IFRS, management and certain investors use this information to
evaluate the Company's performance.
|
The following table provides a reconciliation of adjusted net
earnings and adjusted net earnings per share (basic and
diluted).
|
Three Months
Ended
March 31
|
(in thousands, except
for per share amounts)
|
2021
|
2020
|
Net
earnings
|
$
|
162,002
|
$
|
94,896
|
Add back
(deduct):
|
|
|
|
|
(Gain) loss on fair
value adjustment of share purchase warrants held
|
|
950
|
|
71
|
(Gain) loss on fair
value adjustment of convertible notes receivable
|
|
(1,238)
|
|
790
|
Income tax expense
(recovery) recognized in the Statement of Shareholders'
Equity
|
|
1,568
|
|
(1,480)
|
Income tax expense
(recovery) recognized in the Statement of OCI
|
|
(2,137)
|
|
9,853
|
Other
|
|
(13)
|
|
403
|
Adjusted net
earnings
|
$
|
161,132
|
$
|
104,533
|
Divided
by:
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
449,509
|
|
447,805
|
Diluted weighted
average number of shares outstanding
|
|
450,600
|
|
448,891
|
Equals:
|
|
|
|
|
Adjusted earnings per
share - basic
|
$
|
0.358
|
$
|
0.233
|
Adjusted earnings per
share - diluted
|
$
|
0.358
|
$
|
0.233
|
ii.
|
Operating cash flow
per share (basic and diluted) is calculated by dividing cash
generated by operating activities by the weighted average number of
shares outstanding (basic and diluted). The Company presents
operating cash flow per share as management and certain investors
use this information to evaluate the Company's performance in
comparison to other companies in the precious metal mining industry
who present results on a similar basis.
|
The following table provides a reconciliation of operating cash
flow per share (basic and diluted).
|
Three Months
Ended
March 31
|
(in thousands, except
for per share amounts)
|
2021
|
2020
|
Cash generated by
operating activities
|
$
|
232,154
|
$
|
177,588
|
Divided
by:
|
|
|
|
|
Basic weighted average
number of shares outstanding
|
|
449,509
|
|
447,805
|
Diluted weighted
average number of shares outstanding
|
|
450,600
|
|
448,891
|
Equals:
|
|
|
|
|
Operating cash flow
per share - basic
|
$
|
0.516
|
$
|
0.397
|
Operating cash flow
per share - diluted
|
$
|
0.515
|
$
|
0.396
|
iii.
|
Average cash cost of
gold, silver and palladium on a per ounce basis and cobalt on a per
pound basis is calculated by dividing the total cost of sales, less
depletion, by the ounces or pounds sold. In the precious metal
mining industry, this is a common performance measure but does not
have any standardized meaning prescribed by IFRS. In addition to
conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the
Company's performance and ability to generate cash flow.
|
The following table provides a calculation of average cash cost
of gold, silver and palladium on a per ounce basis and cobalt on a
per pound basis.
|
Three Months
Ended
March 31
|
(in thousands, except
for gold and palladium ounces and cobalt pounds sold and per unit
amounts)
|
2021
|
2020
|
Cost of
sales
|
$
|
148,956
|
$
|
131,749
|
Less:
depletion
|
|
(70,173)
|
|
(64,841)
|
Cash cost of
sales
|
$
|
78,783
|
$
|
66,908
|
Cash cost of sales is
comprised of:
|
|
|
|
|
Total cash cost of
gold sold
|
$
|
33,774
|
$
|
42,759
|
Total cash cost of
silver sold
|
|
42,160
|
|
22,163
|
Total cash cost of
palladium sold
|
|
2,191
|
|
1,986
|
Total cash cost of
cobalt sold
|
|
658
|
|
-
|
Total cash cost of
sales
|
$
|
78,783
|
$
|
66,908
|
Divided
by:
|
|
|
|
|
Total gold ounces
sold
|
|
75,104
|
|
100,405
|
Total silver ounces
sold
|
|
6,657
|
|
4,928
|
Total palladium ounces
sold
|
|
5,131
|
|
4,938
|
Total cobalt pounds
sold
|
|
132,277
|
|
-
|
Equals:
|
|
|
|
|
Average cash cost of
gold (per ounce)
|
$
|
450
|
$
|
426
|
Average cash cost of
silver (per ounce)
|
$
|
6.33
|
$
|
4.50
|
Average cash cost of
palladium (per ounce)
|
$
|
427
|
$
|
402
|
Average cash cost of
cobalt (per pound)
|
$
|
4.98
|
$
|
n.a.
|
iv.
|
Cash operating margin
is calculated by subtracting the average cash cost of gold, silver
and palladium on a per ounce basis and cobalt on a per pound basis
from the average realized selling price of gold, silver and
palladium on a per ounce basis and cobalt on a per pound basis. The
Company presents cash operating margin as management and certain
investors use this information to evaluate the Company's
performance in comparison to other companies in the precious metal
mining industry who present results on a similar basis as well as
to evaluate the Company's ability to generate cash
flow.
|
The following table provides a reconciliation of cash operating
margin.
|
Three Months
Ended
March 31
|
(in thousands, except
for cobalt pounds, gold and palladium ounces sold and per unit
amounts)
|
2021
|
2020
|
Total
sales:
|
|
|
|
|
Gold
|
$
|
135,025
|
$
|
159,522
|
Silver
|
$
|
173,883
|
$
|
83,917
|
Palladium
|
$
|
12,275
|
$
|
11,350
|
Cobalt
|
$
|
2,936
|
$
|
-
|
Divided
by:
|
|
|
|
|
Total gold ounces
sold
|
|
75,104
|
|
100,405
|
Total silver ounces
sold
|
|
6,657
|
|
4,928
|
Total palladium ounces
sold
|
|
5,131
|
|
4,938
|
Total cobalt pounds
sold
|
|
132,277
|
|
-
|
Equals:
|
|
|
|
|
Average realized price
of gold (per ounce)
|
$
|
1,798
|
$
|
1,589
|
Average realized price
of silver (per ounce)
|
$
|
26.12
|
$
|
17.03
|
Average realized price
of palladium (per ounce)
|
$
|
2,392
|
$
|
2,298
|
Average realized price
of cobalt (per pound)
|
$
|
22.19
|
$
|
n.a.
|
Less:
|
|
|
|
|
Average cash cost of
gold 1 (per ounce)
|
$
|
(450)
|
$
|
(426)
|
Average cash cost of
silver 1 (per ounce)
|
$
|
(6.33)
|
$
|
(4.50)
|
Average cash cost of
palladium 1 (per ounce)
|
$
|
(427)
|
$
|
(402)
|
Average cash cost of
cobalt 1 (per pound)
|
$
|
(4.98)
|
$
|
n.a.
|
Equals:
|
|
|
|
|
Cash operating margin
per gold ounce sold
|
$
|
1,348
|
$
|
1,163
|
As a percentage of
realized price of gold
|
|
75%
|
|
73%
|
Cash operating margin
per silver ounce sold
|
$
|
19.79
|
$
|
12.53
|
As a percentage of
realized price of silver
|
|
76%
|
|
74%
|
Cash operating margin
per palladium ounce sold
|
$
|
1,965
|
$
|
1,896
|
As a percentage of
realized price of palladium
|
|
82%
|
|
83%
|
Cash operating margin
per cobalt pound sold
|
$
|
17.21
|
$
|
n.a.
|
As a percentage of
realized price of cobalt
|
|
78%
|
|
n.a.
|
1) Please refer to
non-IFRS measure (iii), above.
|
These non-IFRS measures do not have any standardized meaning
prescribed by IFRS, and other companies may calculate these
measures differently. The presentation of these non-IFRS
measures is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. For more detailed
information, please refer to Wheaton's MD&A available on the
Company's website at www.wheatonpm.com and posted on SEDAR at
www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD
LOOKING-STATEMENTS
This press release contains "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and "forward-looking information" within the
meaning of applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to the
future price of commodities, the impact of epidemics (including the
COVID-19 virus pandemic), including the potential heightening of
other risks, the estimation of future production from Mining
Operations (including in the estimation of production, mill
throughput, grades, recoveries and exploration potential), the
estimation of mineral reserves and mineral resources (including the
estimation of reserve conversion rates) and the realization of such
estimations, the commencement, timing and achievement of
construction, expansion or improvement projects by Wheaton's PMPA
counterparties at mineral stream interests owned by Wheaton (the
"Mining Operations"), the 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, the
costs of future production, the estimation of produced but not yet
delivered ounces, the impact of the listing of the Company's common
shares on the LSE, any statements as to future dividends, the
ability to fund outstanding commitments and the ability to continue
to acquire accretive PMPAs, future payments by the Company in
accordance with PMPAs, including any acceleration of payments,
projected increases to Wheaton's production and cash flow profile,
projected changes to Wheaton's production mix, the ability of
Wheaton's PMPA counterparties to comply with the terms of any other
obligations under agreements with the Company, the ability to sell
precious metals and cobalt production, confidence in the Company's
business structure, the Company's assessment of taxes payable and
the impact of the CRA Settlement for years subsequent to 2010,
possible audits for taxation years subsequent to 2015, the
Company's assessment of the impact of any tax
reassessments, the Company's intention to file future tax
returns in a manner consistent with the CRA Settlement, , and
assessments of the impact and resolution of various legal and tax
matters, including but not limited to outstanding class action and
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 associated with
fluctuations in the price of commodities (including Wheaton's
ability to sell its precious metals or cobalt production at
acceptable prices or at all), risks of significant impacts on
Wheaton or the Mining Operations as a result of an epidemic
(including the COVID-19 virus pandemic), risks related to the
Mining Operations (including fluctuations in the price of the
primary or other commodities mined at such operations, regulatory,
political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated
with the exploration, development, operating, expansion and
improvement of the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the absence of control over the
Mining Operations and having to rely on the accuracy of the public
disclosure and other information Wheaton receives from the Mining
Operations, uncertainty in the estimation of production from Mining
Operations, uncertainty in the accuracy of mineral reserve and
mineral resource estimation, the ability of each party to satisfy
their obligations in accordance with the terms of the PMPAs, the
estimation of future production from Mining Operations, Wheaton's
interpretation of, compliance with or application of, tax laws and
regulations or accounting policies and rules being found to be
incorrect, any challenge or reassessment by the CRA of the
Company's tax filings being successful and the potential negative
impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement for years subsequent to 2010
(including whether there will be any material change in the
Company's facts or change in law or jurisprudence), credit and
liquidity, indebtedness and guarantees, mine operator
concentration, hedging, competition, claims and legal proceedings
against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of
Wheaton and the Mining Operations, exploration, development,
operations, expansions and improvements at the Mining Operations,
environmental regulations and climate change, Wheaton and the
Mining Operations ability to obtain and maintain necessary
licenses, permits, approvals and rulings, Wheaton and the Mining
Operations ability to comply with applicable laws, regulations and
permitting requirements, lack of suitable infrastructure and
employees to support the Mining Operations, inability to replace
and expand mineral reserves, including anticipated timing of the
commencement of production by certain Mining Operations (including
increases in production, estimated grades and recoveries),
uncertainties of title and indigenous rights with respect to the
Mining Operations, Wheaton and the Mining Operations ability to
obtain adequate financing, the Mining Operations ability to
complete permitting, construction, development and expansion,
global financial conditions, and other risks discussed in the
section entitled "Description of the Business – Risk Factors" in
Wheaton's Annual Information Form available on SEDAR at
www.sedar.com, Wheaton's Form 40-F for the year ended December 31, 2020 and Form 6-K filed March 11, 2021 both on file with the U.S.
Securities and Exchange Commission on EDGAR (the "Disclosure").
Forward-looking statements are based on assumptions management
currently believes to be reasonable, including (without
limitation): that there will be no material adverse change in the
market price of commodities, that neither Wheaton nor the Mining
Operations will suffer significant impacts as a result of an
epidemic (including the COVID-19 virus pandemic), that the Mining
Operations will continue to operate and the mining projects will be
completed in accordance with public statements and achieve
their stated production estimates, that the mineral reserves and
mineral resource estimates from Mining Operations (including
reserve conversion rates) are accurate, that each party will
satisfy their obligations in accordance with the PMPAs, that
Wheaton will continue to be able to fund or obtain funding for
outstanding commitments, that Wheaton will be able to source and
obtain accretive PMPAs, that any outbreak or threat of an outbreak
of a virus or other contagions or epidemic disease will be
adequately responded to locally, nationally, regionally and
internationally, without such response requiring any prolonged
closure of the Mining Operations or having other material adverse
effects on the Company and counterparties to its PMPAs, that the
trading of the Company's common shares will not be adversely
affected by the differences in liquidity, settlement and clearing
systems as a result of multiple listings of the Common Shares on
the LSE, the TSX and the NYSE, that the trading of the Company's
common shares will not be suspended, and that the net proceeds of
sales of common shares, if any, will be used as anticipated, that
expectations regarding the resolution of legal and tax matters will
be achieved (including ongoing class action litigation and CRA
audits involving the Company), that Wheaton has properly considered
the interpretation and application of Canadian tax law to its
structure and operations, that Wheaton has filed its tax returns
and paid applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement for years subsequent to
2010 is accurate (including the Company's assessment that there
will be no material change in the Company's facts or change in law
or jurisprudence for years subsequent to 2010), and such other
assumptions and factors as set out in the Disclosure. There can be
no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward–looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
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SOURCE Wheaton Precious Metals Corp.