TSX: WPM
NYSE: WPM
VANCOUVER,
Nov. 9, 2017 /CNW/
- Wheaton Precious Metals™ Corp. ("Wheaton" or the
"Company") is pleased to announce its results for the
third quarter ended September 30,
2017. All figures are presented in United States dollars unless otherwise
noted.
In the third quarter of 2017, Wheaton Precious Metals
continued to generate strong cash flow and remains on track to meet
2017 production guidance.
Operational Overview
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Q3
2017
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Q3
2016
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Change
|
Ounces produced
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Silver
|
|
|
|
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7,595
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|
|
|
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7,651
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|
|
|
(0.7)%
|
|
Gold
|
|
|
|
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95,897
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|
|
|
|
113,008
|
|
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(15.1)%
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Ounces sold
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|
|
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|
|
|
|
|
|
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Silver
|
|
|
|
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5,758
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|
|
|
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6,122
|
|
|
|
(5.9)%
|
|
Gold
|
|
|
|
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82,548
|
|
|
|
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85,063
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|
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(3.0)%
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Sales price per ounce
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|
|
|
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|
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Silver
|
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$
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16.87
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$
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19.53
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|
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(13.6)%
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|
Gold
|
|
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$
|
|
1,283
|
|
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$
|
|
1,336
|
|
|
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(4.0)%
|
Cash costs per ounce
1
|
|
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|
|
|
|
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|
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Silver
1
|
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$
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4.43
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|
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$
|
|
4.51
|
|
|
|
(1.8)%
|
|
Gold
1
|
|
|
$
|
|
396
|
|
|
$
|
|
390
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|
|
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1.5 %
|
Cash operating margin per ounce
1
|
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|
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|
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|
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Silver
1
|
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$
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12.44
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|
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$
|
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15.02
|
|
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(17.2)%
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|
Gold
1
|
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$
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887
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$
|
|
946
|
|
|
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(6.2)%
|
Revenue
|
|
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$
|
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203,034
|
|
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$
|
|
233,204
|
|
|
|
(12.9)%
|
Net earnings
|
|
|
$
|
|
66,578
|
|
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$
|
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82,986
|
|
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(19.8)%
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Per share
|
|
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$
|
|
0.15
|
|
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$
|
|
0.19
|
|
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(21.1)%
|
Operating cash flows
|
|
|
$
|
|
129,121
|
|
|
$
|
|
161,577
|
|
|
|
(20.1)%
|
|
Per share
1
|
|
|
$
|
|
0.29
|
|
|
$
|
|
0.37
|
|
|
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(21.6)%
|
Dividends paid
|
|
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$
|
|
44,201
|
|
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$
|
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22,049
|
|
|
|
100.5%
|
|
Per
share
|
|
|
$
|
|
0.10
|
|
|
$
|
|
0.05
|
|
|
|
100.0%
|
All amounts in
thousands except gold ounces produced and sold, per ounce amounts
and per share amounts.
|
Third Quarter Highlights
- Attributable silver production for the three months ended
September 30, 2017, decreased 1%
relative to the comparable period in 2016, with lower production
from San Dimas and Constancia
being largely offset by increased production from Antamina and
Peñasquito.
- Attributable gold production for the three months ended
September 30, 2017, decreased 15%
relative to the comparable period in 2016, with the decrease being
in line with expectations and primarily due to lower attributable
production from 777 and Minto.
- On a silver equivalent ounce2 ("SEO") basis
and gold equivalent ounce2 ("GEO") basis:
-
- Attributable production in Q3 2017 was 14.9 million SEOs
or 195,900 GEOs, compared with 15.3 million SEOs or 225,400 GEOs in
Q3 2016, a decrease of 3% and 13%, respectively.
- Sales volume in Q3 2017 was 12.0 million SEOs or 158,400
GEOs, compared with 11.9 million SEOs or 175,000 GEOs in Q3 2016,
an increase of 1% and a decrease of 9%, respectively.
- As at September 30, 2017,
payable ounces attributable to the Company produced but not yet
delivered³ amounted to 5.3 million payable silver ounces and 57,200
payable gold ounces, representing an increase of 1.1 million
payable silver ounces and 8,200 payable gold ounces during the
three month period ended September 30,
2017.
- Declared quarterly dividend of $0.09 per common share. This represents an
increase of 50% relative to the comparable period in
2016.
- The Company is reiterating its production guidance for
2017.
"Wheaton Precious Metals continues to generate strong
operating margins from its portfolio of low-cost assets and remains
on track to meet full year production guidance," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "We continue to work diligently
not only to strengthen our current portfolio, the source of our
sector leading cash flows and dividend yield, but also to pursue
additional accretive opportunities."
Financial Review
Revenues
Revenue was
$203 million in the third quarter of
2017, on sales volume of 5.8 million ounces of silver and 82,500
ounces of gold. This represents a 13% decrease from the
$233 million of revenue generated in
the third quarter of 2016 due primarily to (i) a 6% decrease in the
number of silver ounces sold; (ii) a 3% decrease in the number of
gold ounces sold; (iii) a 14% decrease in the average realized
silver price ($16.87 in Q3 2017
compared with $19.53 in Q3 2016); and
(iv) a 4% decrease in the average realized gold price ($1,283 in Q3 2017 compared with $1,336 in Q3 2016).
Costs and Expenses
Average
cash costs¹ in the third quarter of 2017 were $4.43 per silver ounce sold and $396 per gold ounce sold, as compared with
$4.51 per silver ounce and
$390 per gold ounce during the
comparable period of 2016. This resulted in a cash operating
margin¹ of $12.44 per silver ounce
sold and $887 per gold ounce sold, a
reduction of 17% and 6% as compared with Q3 2016. The decrease in
the cash operating margin was primarily due to a 14% decrease in
the average realized silver price and a 4% decrease in the average
realized gold price in Q3 2017 compared with Q3 2016.
Earnings and Operating Cash
Flows
Net earnings and cash flow from
operations in the third quarter of 2017 were $67 million ($0.15
per share) and $129 million
($0.29 per share¹), compared with
$83 million ($0.19 per share) and $162
million ($0.37 per share¹) for
the same period in 2016, both a decrease of 20%.
Balance Sheet
At
September 30, 2017, the Company had
approximately $70 million of cash on
hand and $854 million outstanding
under the Company's $2 billion
revolving term loan (the "Revolving Facility").
Third Quarter Asset Highlights
During the third quarter of 2017, attributable production
was 7.6 million ounces of silver and 95,900 ounces of gold,
representing a decrease of 1% and 15%, respectively, compared with
the third quarter of 2016.
Operational highlights for the quarter ended September 30, 2017, based upon counterparties'
reporting, are as follows:
Salobo
In the third
quarter of 2017, Salobo produced 73,000 ounces of attributable
gold, an increase of approximately 7% relative to the third quarter
of 2016. According to Vale S.A.'s ("Vale") third quarter of 2017
production report, production was positively impacted mainly due to
higher feed grades and stronger plant performance in the third
quarter. The Salobo plant operated above nameplate capacity on
average in the third quarter of 2017.
Peñasquito
In the third quarter of 2017,
Peñasquito produced 1.6 million ounces of attributable silver, an
increase of approximately 10% relative to the third quarter of 2016
primarily due to higher metal recoveries and grades. According to
Goldcorp Inc.'s ("Goldcorp") third quarter of 2017 MD&A,
throughput at Peñasquito is expected to increase in the fourth
quarter of 2017 as a result of improved mill efficiencies.
Pre-stripping of the Chile Colorado pit is reportedly ahead of
schedule and will contribute to mill feed starting in
2018.
According to Goldcorp, the Pyrite Leach Project ("PLP") at
Peñasquito is 40% complete and expected to commence commissioning
in the fourth quarter of 2018, three months ahead of schedule. The
PLP is reportedly expected to recover approximately 40% of the gold
and 48% of the silver currently reporting to the tailings, and is
expected to add production of approximately 1 million ounces of
gold and 44 million ounces of silver over the current life of the
mine. As a reminder, Wheaton Precious Metals is entitled to 25% of
the silver produced at Peñasquito for the life of mine, or 11
million of the additional 44 million silver ounces.
Antamina
In the third
quarter of 2017, Antamina produced 1.7 million ounces of
attributable silver, an increase of approximately 18% relative to
the third quarter of 2016 primarily due to increased
grades and throughput, partially offset by lower
recovery.
San
Dimas
In the third quarter of 2017,
San Dimas produced 1.0 million
ounces of attributable silver, a decrease of approximately 17%
relative to the third quarter of 2016 primarily due to a decrease
in throughput, which was partially offset by better grades.
According to Primero Mining Corp.'s ("Primero") news release
dated September 21, 2017, the
expected ramp-up in production at San
Dimas following a work stoppage in the second quarter of
2017 was significantly delayed due to persistent issues with
underground equipment reliability, which has impacted development
rates and underground stoping activities. As a result of these
issues, Primero reduced the upper end of its 2017 silver production
guidance range from 4.5-5.5 million ounces to 4.5-5.0 million
ounces. As a reminder, Wheaton's full year 2017 guidance is based
on attributable production from San Dimas of 4.0 million ounces of
silver.
Wheaton continues to work closely with Primero
as they work through their strategic review process. As per
Primero's announcement on March 24,
2017, Wheaton provided significant support for the strategic
review process by providing a guarantee to the lenders under
Primero's existing revolving credit facility, which resulted in an
extension of the maturity date by six months to November 23, 2017. The intent of this guarantee
is to provide Primero with time to complete its strategic review
process, which was first announced on February 27, 2017. Wheaton has been encouraged by
Primero's ability through this process to reduce general and
administrative costs and divest of non-core operations. Also, as
noted in Primero's second quarter of 2017 MD&A, Primero has
received a number of proposals from interested parties regarding a
potential acquisition of the San
Dimas operation. The process is ongoing but there can be no
certainty that these discussions will result in a resolution
acceptable to all stakeholders, including the
Company.4
Sudbury
In the third
quarter of 2017, Vale's Sudbury
mines produced 8,400 ounces of attributable gold, a decrease of
approximately 22% relative to the third quarter of
2016 primarily due to lower throughput. According to Vale's
third quarter of 2017 production report, the decrease in production
was primarily due to the full operation of two furnaces in Q3 2016,
while in Q3 2017 Sudbury transitioned to a single furnace
operation. According to Vale, the transition has gone very well
with the newly designed furnace already exceeding its nameplate
capacity. Vale further reports that while nickel production was
down in the quarter, with the transition to the new single furnace
flowsheet, Sudbury achieved record
quarterly copper concentrate production.
Constancia
In the third
quarter of 2017, Constancia produced 0.6 million ounces of
attributable silver and 2,500 ounces of attributable gold, a
decrease of approximately 18% and 33%, respectively, relative to
the third quarter of 2016. The decrease in production was primarily
the result of the processing of lower grade ore as expected in
Hudbay Mineral Inc.'s ("Hudbay") mine plan as well as lower
recovery, partially offset by record high throughput.
Other Gold
In the third
quarter of 2017, total Other Gold attributable production was
12,000 ounces, a decrease of approximately 60% relative to the
third quarter of 2016. The decrease was relatively in
line with expectations and primarily due to the anticipated
reduction of the Company's share of the gold production at the 777
mine from 100% to 50% effective January 1,
2017, coupled with reduced production at the Minto mine due to mine sequencing changes to
support the mine life extension as previously announced by Capstone
Mining Corp. ("Capstone").
Subsequent to the quarter, in October 2017, the Company agreed to amend the
Minto precious metal purchase
agreement in order to incentivize Capstone
to extend the mine life of Minto. The primary modification is to increase
the production payment per ounce of gold delivered to Wheaton
Precious Metals over the current fixed price in periods where the
market price of copper is lower than $2.50 per pound. In consideration for this
contract amendment and certain other agreements made between the
Company and Capstone, the Company received shares of Capstone with
a value of $8 million.
Other Silver
In the third
quarter of 2017, total Other Silver attributable production was 2.6
million ounces, a decrease of approximately 5% relative to the
third quarter of 2016. The decrease was driven primarily by the
cessation of production from Cozamin as the Cozamin silver purchase
agreement with Capstone expired on April 4,
2017, as well as lower grades at Yauliyacu. Lower
attributable production from Cozamin and Yauliyacu was partially
offset by stronger production from Zinkgruvan.
Produced But Not Yet Delivered
3
As at September 30, 2017, payable ounces attributable
to the Company produced but not yet delivered³
amounted to 5.3 million payable silver ounces and 57,200
payable gold ounces, representing an increase of 1.1 million
payable silver ounces and 8,200 payable gold ounces during the
three month period ended September 30,
2017. Payable silver ounces produced but not yet delivered
increased primarily as a result of increases related to the
Peñasquito, Zinkgruvan, Yauliyacu, and Antamina silver interests.
Payable gold ounces produced but not yet delivered increased
primarily as a result of increases related to the Sudbury and Salobo gold interests. Payable
ounces produced but not yet delivered to the Wheaton Precious
Metals group of companies are expected to average approximately two
months of annualized production but may vary from quarter to
quarter due to a number of mining operation factors including mine
ramp-up and timing of shipments.
Detailed mine-by-mine production and sales figures can be
found in the Appendix to this press release and in Wheaton Precious
Metals' consolidated MD&A in the 'Results of Operations and
Operational Review' section.
Events Subsequent to the Quarter
Kutcho
Pending
completion of the Kutcho Early Deposit Agreement, the Company has
entered into a non-binding term sheet with Desert Star Resources
Ltd. to provide assistance in the form of an up to Cdn$20 million subordinated secured convertible
debt loan at an interest rate of 10% per annum over a 7-year term
(the "Desert Star Loan"). There can be no assurance that the Desert
Star Loan will be completed on the terms set out in the non-binding
term sheet or at all.
Dividend
Fourth Quarterly
Dividend
The fourth
quarterly cash dividend of US$0.09 will be paid to holders of record of
Wheaton Precious Metals common shares as of the close of business
on November 27,
2017, and will be distributed on or
about December
7, 2017.
Under the Company's dividend policy, the quarterly
dividend per common share will be equal to 30% of the average cash
generated by operating activities in the previous four quarters
divided by the Company's then outstanding common shares, all
rounded to the nearest cent.
The declaration, timing, amount and payment of future
dividends remain at the discretion of the Board of Directors. This
dividend qualifies as an 'eligible dividend' for Canadian income
tax purposes.
Dividend Reinvestment
Plan
The Company has previously implemented
a Dividend Reinvestment Plan ("DRIP"). Participation in the DRIP is
optional. For the purposes of this fourth quarterly dividend, the
Company has elected to issue common shares under the
DRIP through treasury at a 3% discount to the Average Market Price,
as defined in the DRIP. However, the Company may, from
time to time, in its discretion, change or eliminate the discount
applicable to Treasury Acquisitions, as defined in the DRIP,
or direct that such common shares be purchased in Market
Acquisitions, as defined in the DRIP, at the
prevailing market price, any of which would be publicly
announced.
The DRIP and enrollment forms are available for download
on the Company's website at
www.wheatonpm.com, accessible by quick links
directly from the home page, and can also be found in the
'investors' section, under the 'dividends' tab.
Registered shareholders may also enroll in the DRIP online
through the plan agent's self-service web portal at:
https://www.canstockta.com/en/InvestorServices/Investor_Information/Issuer_List/IssuerDetail.jsp?companyCode=1501.
Beneficial shareholders should contact their financial
intermediary to arrange enrollment. All shareholders considering
enrollment in the DRIP should carefully review the terms of the
DRIP and consult with their advisors as to the implications of
enrollment in the DRIP.
This press release is not an offer to sell or a
solicitation of an offer of securities. A registration statement
relating to the DRIP has been filed with the U.S. Securities and
Exchange Commission and may be obtained under the Company's profile
on the U.S. Securities and Exchange Commission's website at
http://www.sec.gov. A written copy of the
prospectus included in the registration statement may be obtained
by contacting the Corporate Secretary of the Company at 1021 West
Hastings Street, Suite 3500, Vancouver,
British Columbia, Canada V6E 0C3.
Outlook
Wheaton Precious Metals' estimated attributable silver and
gold production in 2017 is forecast to be 28 million silver ounces
and 340,000 gold ounces. Estimated average annual attributable
silver and gold production over the next five years (including
2017) is anticipated to be approximately 29 million silver ounces
and 340,000 gold ounces per year. As a reminder, Wheaton Precious
Metals does not include any production in its guidance from streams
on development assets, such as Barrick's Pascua-Lama project or
Hudbay's Rosemont
project.
From a liquidity perspective, the $70 million of cash and cash equivalents as at
September 30, 2017 combined with the
liquidity provided by the available credit under the $2 billion Revolving Facility and ongoing
operating cash flows positions the Company well to fund all
outstanding commitments and known contingencies as well as
providing flexibility to acquire additional accretive precious
metal stream interests.
Webcast and Conference Call Details
A conference call and webcast will be held Friday, November 10, 2017, 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:
|
888-231-8191
|
Dial from outside
Canada or the US:
|
647-427-7450
|
Pass code:
|
94521962
|
Live audio
webcast:
|
www.wheatonpm.com
|
Participants should dial in five to ten minutes before the
call.
The conference call will be recorded and available until
November 17, 2017 at 11:59 pm (Eastern Time). 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
|
855-859-2056
|
Dial from outside
Canada or the US:
|
416-849-0833
|
Pass code:
|
94521962
|
Archived audio
webcast:
|
www.wheatonpm.com
|
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. Neil Burns, Vice
President, Technical Services for Wheaton Precious Metals, is a
"qualified person" as such term is defined under National
Instrument 43-101, and has reviewed and approved the technical
information including information on mineral reserves and mineral
resources 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.aspxhttp://www.silverwheaton.com/company/corporate-governance/default.aspx.
End Notes
_______________________________
1
|
Please refer to
non-IFRS measures at the end of this press release.
|
2
|
Silver equivalent
ounces (SEOs) and gold equivalent ounces (GEOs), which are provided
to assist the reader, are calculated by converting gold (in the
case of SEOs) or silver (in the case of GEOs) using the ratio of
the average price of silver to the average price of gold per the
London Bullion Metal Exchange during the period. The silver / gold
ratio is the ratio of the average price of silver to the average
price of gold per the London Bullion Metal Exchange during the
period.
|
3
|
Payable silver and
gold ounces produced but not yet delivered are based on management
estimates, and may be updated in future periods as additional
information is received.
|
4
|
Please refer to
Wheaton Precious Metals Q3 2017 Management's Discussion and
Analysis ("MD&A") for a more detailed description of the status
and risks associated with the San Dimas Silver Interest. Please
also see "Cautionary Note Regarding Forward Looking Statements" in
the Company's MD&A for material risks, assumptions, and
important disclosure associated with San Dimas and Primero.
|
Condensed Interim Consolidated Statements of
Earnings
|
|
Three Months
Ended
September 30
|
Nine Months Ended
September 30
|
(US dollars and
shares in thousands, except per share amounts -
unaudited)
|
|
2017
|
2016
|
2017
|
2016
|
Sales
|
|
$
|
203,034
|
$
|
233,204
|
$
|
600,669
|
$
|
633,066
|
Cost of sales
|
|
|
|
|
|
|
|
|
|
|
Cost of sales,
excluding depletion
|
|
$
|
58,234
|
$
|
60,776
|
$
|
173,506
|
$
|
177,620
|
|
Depletion
|
|
|
61,852
|
|
73,919
|
|
185,567
|
|
220,336
|
Total cost of sales
|
|
$
|
120,086
|
$
|
134,695
|
$
|
359,073
|
$
|
397,956
|
Gross margin
|
|
$
|
82,948
|
$
|
98,509
|
$
|
241,596
|
$
|
235,110
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
General and
administrative 1
|
|
$
|
8,793
|
$
|
9,513
|
$
|
25,760
|
$
|
30,316
|
|
Interest
expense
|
|
|
6,360
|
|
6,007
|
|
19,214
|
|
17,529
|
|
Other
income
|
|
|
(93)
|
|
(19)
|
|
(2,266)
|
|
(105)
|
|
Other
expense
|
|
|
1,410
|
|
1,377
|
|
3,917
|
|
3,632
|
|
Foreign exchange
loss
|
|
|
163
|
|
22
|
|
248
|
|
611
|
|
|
$
|
16,633
|
$
|
16,900
|
$
|
46,873
|
$
|
51,983
|
Earnings before income taxes
|
|
$
|
66,315
|
$
|
81,609
|
$
|
194,723
|
$
|
183,127
|
Income tax recovery
|
|
|
263
|
|
1,377
|
|
691
|
|
1,144
|
Net earnings
|
|
$
|
66,578
|
$
|
82,986
|
$
|
195,414
|
$
|
184,271
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
0.15
|
$
|
0.19
|
$
|
0.44
|
$
|
0.43
|
Diluted earnings per share
|
|
$
|
0.15
|
$
|
0.19
|
$
|
0.44
|
$
|
0.43
|
Weighted average number of shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
442,094
|
|
440,635
|
|
441,790
|
|
426,737
|
|
Diluted
|
|
|
442,476
|
|
441,917
|
|
442,263
|
|
427,094
|
1) Equity settled
stock based compensation (a non-cash item)
included in general and administrative expenses.
|
|
$
|
1,279
|
$
|
1,220
|
$
|
3,748
|
$
|
3,822
|
Condensed Interim Consolidated Balance
Sheets
|
|
As at
September 30
|
As at
December 31
|
(US dollars in
thousands - unaudited)
|
2017
|
2016
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
69,910
|
$
|
124,295
|
|
Accounts
receivable
|
|
|
5,895
|
|
2,316
|
|
Other
|
|
|
2,678
|
|
1,481
|
Total current
assets
|
|
$
|
78,483
|
$
|
128,092
|
Non-current
assets
|
|
|
|
|
|
|
Silver and gold
interests
|
|
$
|
5,728,770
|
$
|
5,919,272
|
|
Early deposit -
silver and gold interests
|
|
|
20,709
|
|
20,064
|
|
Royalty
interest
|
|
|
9,107
|
|
9,107
|
|
Long-term
investments
|
|
|
86,265
|
|
64,621
|
|
Other
|
|
|
12,352
|
|
12,163
|
Total non-current
assets
|
|
$
|
5,857,203
|
$
|
6,025,227
|
Total
assets
|
|
$
|
5,935,686
|
$
|
6,153,319
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
13,522
|
$
|
18,829
|
|
Current portion of
performance share units
|
|
|
-
|
|
228
|
Total current
liabilities
|
|
$
|
13,522
|
$
|
19,057
|
Non-current
liabilities
|
|
|
|
|
|
|
Bank debt
|
|
$
|
854,000
|
$
|
1,193,000
|
|
Deferred income
taxes
|
|
|
61
|
|
262
|
|
Performance share
units
|
|
|
798
|
|
1,012
|
Total non-current
liabilities
|
|
$
|
854,859
|
$
|
1,194,274
|
Total
liabilities
|
|
$
|
868,381
|
$
|
1,213,331
|
Shareholders' equity
|
|
|
|
|
|
Issued
capital
|
|
$
|
3,464,856
|
$
|
3,445,914
|
Reserves
|
|
|
74,295
|
|
55,301
|
Retained
earnings
|
|
|
1,528,154
|
|
1,438,773
|
Total shareholders'
equity
|
|
$
|
5,067,305
|
$
|
4,939,988
|
Total liabilities and
shareholders' equity
|
|
$
|
5,935,686
|
$
|
6,153,319
|
Condensed Interim Consolidated Statements of Cash
Flows
|
|
Three Months
Ended
September 30
|
Nine Months Ended
September 30
|
(US dollars in
thousands - unaudited)
|
|
2017
|
2016
|
2017
|
2016
|
Operating activities
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
$
|
66,578
|
$
|
82,986
|
$
|
195,414
|
$
|
184,271
|
Adjustments
for
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
depletion
|
|
|
62,096
|
|
74,149
|
|
186,298
|
|
221,032
|
|
Amortization of
credit facility origination fees:
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
167
|
|
190
|
|
551
|
|
596
|
|
|
Amortization of
credit facility origination fees - undrawn facilities
|
|
|
201
|
|
177
|
|
541
|
|
498
|
|
Interest
expense
|
|
|
6,194
|
|
5,817
|
|
18,664
|
|
16,933
|
|
Equity settled stock
based compensation
|
|
|
1,279
|
|
1,220
|
|
3,748
|
|
3,822
|
|
Performance share
units
|
|
|
(38)
|
|
565
|
|
(496)
|
|
744
|
|
Deferred income tax
(recovery) expense
|
|
|
(279)
|
|
(1,404)
|
|
(985)
|
|
(1,170)
|
|
Investment income
recognized in net earnings
|
|
|
(93)
|
|
(19)
|
|
(256)
|
|
(105)
|
|
Other
|
|
|
(434)
|
|
(308)
|
|
(1,507)
|
|
(220)
|
Change in non-cash
working capital
|
|
|
(234)
|
|
3,397
|
|
(9,162)
|
|
(401)
|
Cash generated from
operations before interest paid and received
|
|
$
|
135,437
|
$
|
166,770
|
$
|
392,810
|
$
|
426,000
|
Interest paid -
expensed
|
|
|
(6,394)
|
|
(5,204)
|
|
(19,296)
|
|
(16,478)
|
Interest
received
|
|
|
78
|
|
11
|
|
211
|
|
76
|
Cash generated from
operating activities
|
|
$
|
129,121
|
$
|
161,577
|
$
|
373,725
|
$
|
409,598
|
Financing activities
|
|
|
|
|
|
|
|
|
|
Bank debt
repaid
|
|
$
|
(99,000)
|
$
|
(141,000)
|
$
|
(339,000)
|
$
|
(901,000)
|
Bank debt
drawn
|
|
|
-
|
|
780,000
|
|
-
|
|
780,000
|
Credit facility
origination fees
|
|
|
(6)
|
|
-
|
|
(1,311)
|
|
(1,300)
|
Shares
issued
|
|
|
-
|
|
-
|
|
-
|
|
632,547
|
Share issue
costs
|
|
|
-
|
|
(162)
|
|
-
|
|
(25,996)
|
Repurchase of share
capital
|
|
|
-
|
|
-
|
|
-
|
|
(33,126)
|
Share purchase
options exercised
|
|
|
-
|
|
20,284
|
|
1,002
|
|
20,883
|
Dividends
paid
|
|
|
(36,663)
|
|
(19,310)
|
|
(88,771)
|
|
(56,050)
|
Cash (used for)
generated from financing activities
|
|
$
|
(135,669)
|
$
|
639,812
|
$
|
(428,080)
|
$
|
415,958
|
Investing activities
|
|
|
|
|
|
|
|
|
|
Silver and gold
interests
|
|
$
|
-
|
$
|
(800,013)
|
$
|
-
|
$
|
(800,297)
|
Interest paid -
capitalized to silver interests
|
|
|
-
|
|
-
|
|
-
|
|
(615)
|
Early deposit -
silver and gold interests
|
|
|
(5)
|
|
-
|
|
(899)
|
|
(2,042)
|
Proceeds on disposal
of silver interest 1
|
|
|
-
|
|
-
|
|
1,022
|
|
-
|
Dividend income
received
|
|
|
15
|
|
8
|
|
45
|
|
28
|
Other
|
|
|
(116)
|
|
(115)
|
|
(202)
|
|
(222)
|
Cash used
for investing activities
|
|
$
|
(106)
|
$
|
(800,120)
|
$
|
(34)
|
$
|
(803,148)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
$
|
(11)
|
$
|
(214)
|
$
|
4
|
$
|
(160)
|
(Decrease) increase
in cash and cash equivalents
|
|
$
|
(6,665)
|
$
|
1,055
|
$
|
(54,385)
|
$
|
22,248
|
Cash and cash
equivalents, beginning of period
|
|
|
76,575
|
|
124,490
|
|
124,295
|
|
103,297
|
Cash and cash
equivalents, end of period
|
|
$
|
69,910
|
$
|
125,545
|
$
|
69,910
|
$
|
125,545
|
1)
|
During the three
months ended March 31, 2017, the Company received an additional $1
million settlement related to the November 4, 2014 bankruptcy of
Mercator Minerals Ltd. ("Mercator") with whom Wheaton Precious
Metals had a silver purchase agreement relative to Mercator's
Mineral Park mine in the United
States.
|
Summary of Ounces Produced
|
Q3
2017
|
Q2
2017
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Q1
2016
|
Q4
2015
|
Silver ounces
produced 2
|
|
|
|
|
|
|
|
|
|
San Dimas
|
1,043
|
973
|
623
|
1,429
|
1,264
|
1,596
|
923
|
2,317
|
|
Peñasquito
|
1,641
|
1,483
|
1,339
|
1,328
|
1,487
|
867
|
1,352
|
1,766
|
|
Antamina
|
1,735
|
1,888
|
1,464
|
1,599
|
1,469
|
1,707
|
2,021
|
2,403
|
|
Constancia
|
618
|
546
|
540
|
723
|
749
|
778
|
509
|
637
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Los Filos
|
43
|
42
|
32
|
33
|
44
|
56
|
40
|
45
|
|
|
Zinkgruvan
|
710
|
493
|
538
|
557
|
449
|
495
|
659
|
729
|
|
|
Yauliyacu
|
588
|
607
|
562
|
379
|
721
|
686
|
657
|
749
|
|
|
Stratoni
|
137
|
171
|
166
|
187
|
206
|
222
|
136
|
178
|
|
|
Minto
|
43
|
42
|
56
|
100
|
153
|
60
|
43
|
53
|
|
|
Neves-Corvo
3
|
341
|
316
|
330
|
312
|
279
|
331
|
319
|
269
|
|
|
Cozamin
4
|
-
|
17
|
397
|
265
|
239
|
253
|
277
|
400
|
|
|
Lagunas
Norte
|
243
|
218
|
210
|
234
|
215
|
233
|
273
|
291
|
|
|
Pierina
|
107
|
114
|
137
|
117
|
50
|
31
|
35
|
54
|
|
|
Veladero
|
201
|
144
|
158
|
174
|
160
|
193
|
182
|
281
|
|
|
777
|
145
|
138
|
96
|
152
|
166
|
99
|
106
|
112
|
|
Total
Other
|
2,558
|
2,302
|
2,682
|
2,510
|
2,682
|
2,659
|
2,727
|
3,161
|
Total silver ounces
produced
|
7,595
|
7,192
|
6,648
|
7,589
|
7,651
|
7,607
|
7,532
|
10,284
|
Gold ounces produced
²
|
|
|
|
|
|
|
|
|
|
Sudbury
5
|
8,401
|
7,468
|
9,182
|
8,901
|
10,779
|
15,054
|
7,895
|
13,678
|
|
Salobo
|
72,980
|
57,514
|
53,193
|
71,328
|
68,168
|
35,627
|
38,474
|
39,395
|
|
Constancia
|
2,498
|
2,332
|
2,431
|
3,151
|
3,737
|
4,622
|
3,435
|
4,617
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Minto
|
6,904
|
6,063
|
9,734
|
10,906
|
20,184
|
6,985
|
3,779
|
5,237
|
|
|
777
|
5,114
|
6,259
|
4,422
|
10,919
|
10,140
|
8,900
|
8,274
|
9,439
|
|
Total
Other
|
12,018
|
12,322
|
14,156
|
21,825
|
30,324
|
15,885
|
12,053
|
14,676
|
Total gold ounces
produced
|
95,897
|
79,636
|
78,962
|
105,205
|
113,008
|
71,188
|
61,857
|
72,366
|
SEOs produced
6
|
14,874
|
13,009
|
12,176
|
15,067
|
15,343
|
12,947
|
12,453
|
15,699
|
GEOs produced
6
|
195,944
|
178,100
|
173,949
|
211,970
|
225,393
|
172,566
|
156,513
|
209,783
|
Silver / Gold Ratio
7
|
75.9
|
73.0
|
70.0
|
71.1
|
68.1
|
75.0
|
79.6
|
74.8
|
1)
|
All figures in
thousands except gold ounces produced.
|
2)
|
Ounces produced
represent the quantity of silver and gold 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 silver or gold 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)
|
As per Lundin Mining
Corporation's ("Lundin") MD&A for the three months ended
September 30, 2017, the Mining Industry Workers Union organized a
strike at the Neves-Corvo mine from October 3-7, 2017. Lundin
states that they have been advised that the union intends to
undertake another strike during a five-day period commencing
November 6, 2017 and it may repeat this action a third time in the
month of December, resulting in their decision to revise production
guidance downward to reflect anticipated lost production from the
labour actions. Lundin has engaged in dialogue with the unions, who
are looking for changes to work schedules and other factors that
have also been demanded of other industries as part of a
nation-wide union initiative. These labour issues at Neves-Corvo
have not impacted Wheaton Precious Metals' production guidance for
2017.
|
4)
|
The Cozamin precious
metal purchase agreement expired on April 4, 2017.
|
5)
|
Comprised of the
Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold
interests. The Stobie gold interest was placed into care and
maintenance as of May 2017.
|
6)
|
Silver equivalent
ounces (SEOs) and gold equivalent ounces (GEOs), which are provided
to assist the reader, are calculated by converting gold (in the
case of SEOs) or silver (in the case of GEOs) using the ratio of
the average price of silver to the average price of gold per the
London Bullion Metal Exchange during the
period.
|
7)
|
The silver / gold
ratio is the ratio of the average price of silver to the average
price of gold per the London Bullion Metal Exchange during the
period.
|
Summary of Ounces Sold
|
Q3
2017
|
Q2
2017
|
Q1
2017
|
Q4
2016
|
Q3
2016
|
Q2
2016
|
Q1
2016
|
Q4
2015
|
Silver ounces
sold
|
|
|
|
|
|
|
|
|
|
San Dimas
|
962
|
845
|
796
|
1,571
|
1,065
|
1,426
|
1,345
|
2,097
|
|
Peñasquito
|
1,109
|
1,639
|
860
|
1,270
|
1,078
|
886
|
949
|
2,086
|
|
Antamina
|
1,537
|
1,453
|
1,170
|
1,488
|
1,598
|
2,202
|
1,879
|
1,340
|
|
Constancia
|
491
|
559
|
383
|
702
|
536
|
520
|
666
|
511
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
Los Filos
|
43
|
42
|
32
|
33
|
44
|
55
|
39
|
45
|
|
|
Zinkgruvan
|
305
|
398
|
296
|
592
|
340
|
369
|
812
|
507
|
|
|
Yauliyacu
|
364
|
423
|
403
|
671
|
342
|
578
|
603
|
987
|
|
|
Stratoni
|
84
|
123
|
195
|
165
|
203
|
129
|
148
|
39
|
|
Campo Morado
2
|
-
|
-
|
-
|
-
|
-
|
-
|
4
|
9
|
|
Minto
|
43
|
39
|
37
|
102
|
96
|
26
|
53
|
13
|
|
Cozamin
3
|
23
|
125
|
232
|
196
|
207
|
219
|
300
|
317
|
|
Neves-Corvo
|
117
|
114
|
153
|
147
|
88
|
158
|
142
|
153
|
|
Lagunas
Norte
|
242
|
204
|
217
|
227
|
237
|
224
|
299
|
252
|
|
Pierina
|
102
|
136
|
150
|
84
|
32
|
27
|
46
|
36
|
|
Veladero
|
201
|
144
|
159
|
174
|
160
|
193
|
182
|
281
|
|
777
|
135
|
125
|
142
|
84
|
96
|
130
|
85
|
78
|
|
Total
Other
|
1,659
|
1,873
|
2,016
|
2,475
|
1,845
|
2,108
|
2,713
|
2,717
|
Total silver ounces
sold
|
5,758
|
6,369
|
5,225
|
7,506
|
6,122
|
7,142
|
7,552
|
8,751
|
Gold ounces
sold
|
|
|
|
|
|
|
|
|
|
Sudbury
4
|
3,237
|
5,822
|
6,887
|
10,183
|
12,294
|
11,351
|
9,007
|
6,256
|
|
Salobo
|
67,198
|
50,478
|
63,007
|
73,646
|
50,043
|
45,396
|
35,366
|
44,491
|
|
Constancia
|
2,206
|
2,356
|
2,315
|
3,343
|
3,396
|
3,610
|
4,933
|
4,473
|
|
Other
|
|
|
|
|
|
|
|
|
|
Minto
|
4,603
|
6,988
|
9,902
|
15,445
|
11,110
|
19
|
8,815
|
3,317
|
|
777
|
5,304
|
6,321
|
6,286
|
6,314
|
8,220
|
10,381
|
7,137
|
6,362
|
|
Total
Other
|
9,907
|
13,309
|
16,188
|
21,759
|
19,330
|
10,400
|
15,952
|
9,679
|
Total gold ounces
sold
|
82,548
|
71,965
|
88,397
|
108,931
|
85,063
|
70,757
|
65,258
|
64,899
|
SEOs sold
5
|
12,024
|
11,625
|
11,412
|
15,249
|
11,913
|
12,451
|
12,745
|
13,607
|
GEOs sold
5
|
158,401
|
159,161
|
163,032
|
214,529
|
175,008
|
165,945
|
160,180
|
181,838
|
Cumulative payable
silver ounces PBND 6
|
5,257
|
4,152
|
3,967
|
3,224
|
3,783
|
2,999
|
3,230
|
3,872
|
Cumulative payable
gold ounces PBND 6
|
57,205
|
48,997
|
45,669
|
59,536
|
68,148
|
44,780
|
49,679
|
56,867
|
Silver / Gold Ratio
7
|
75.9
|
73.0
|
70.0
|
71.1
|
68.1
|
75.0
|
79.6
|
74.8
|
1)
|
All figures in
thousands except gold ounces sold.
|
2)
|
The Campo Morado
silver interest was disposed of on December 31, 2014.
|
3)
|
The Cozamin precious
metal purchase agreement expired on April 4, 2017.
|
4)
|
Comprised of the
Coleman, Copper Cliff, Garson, Stobie, Creighton and Totten gold
interests.The Stobie gold interest was placed into care and
maintenance as of May 2017.
|
5)
|
Silver equivalent
ounces (SEOs) and gold equivalent ounces (GEOs), which are provided
to assist the reader, are calculated by converting gold (in the
case of SEOs) or silver (in the case of GEOs) using the ratio of
the average price of silver to the average price of gold per the
London Bullion Metal Exchange during the period.
|
6)
|
Payable silver and
gold ounces 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)
|
The silver / gold
ratio is the ratio of the average price of silver to the average
price of gold per the London Bullion Metal Exchange during the
period.
|
Results of Operations
The Company currently has eight reportable operating
segments: the silver produced by the San
Dimas, Peñasquito and Antamina mines, the gold produced by
the Sudbury and Salobo mines, the
silver and gold produced by the Constancia mine and the Other
mines, and corporate operations.
Three Months Ended
September 30, 2017
|
|
Ounces
Produced²
|
Ounces
Sold
|
Average
Realized
Price
($'s Per Ounce)
|
Average
Cash Cost
($'s Per
Ounce)3
|
Average
Depletion
($'s Per
Ounce)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Dimas
|
1,043
|
962
|
$
|
16.84
|
$
|
4.32
|
$
|
1.46
|
$
|
16,205
|
$
|
10,640
|
$
|
12,049
|
$
|
136,763
|
|
Peñasquito
|
1,641
|
1,109
|
|
16.67
|
|
4.13
|
|
2.88
|
|
18,491
|
|
10,715
|
|
13,911
|
|
407,679
|
|
Antamina
|
1,735
|
1,537
|
|
17.01
|
|
3.34
|
|
9.81
|
|
26,147
|
|
5,938
|
|
21,017
|
|
774,993
|
|
Constancia
|
618
|
491
|
|
17.16
|
|
5.90
|
|
7.36
|
|
8,429
|
|
1,915
|
|
5,531
|
|
265,420
|
|
Other
4
|
2,558
|
1,659
|
|
16.79
|
|
5.28
|
|
3.77
|
|
27,854
|
|
12,836
|
|
19,109
|
|
759,840
|
|
7,595
|
5,758
|
$
|
16.87
|
$
|
4.43
|
$
|
5.13
|
$
|
97,126
|
$
|
42,044
|
$
|
71,617
|
$
|
2,344,695
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sudbury
5
|
8,401
|
3,237
|
$
|
1,281
|
$
|
400
|
$
|
769
|
$
|
4,147
|
$
|
362
|
$
|
2,852
|
$
|
389,266
|
|
Salobo
|
72,980
|
67,198
|
|
1,280
|
|
400
|
|
381
|
|
86,030
|
|
33,561
|
|
59,150
|
|
2,836,029
|
|
Constancia
|
2,498
|
2,206
|
|
1,301
|
|
400
|
|
409
|
|
2,869
|
|
1,083
|
|
1,986
|
|
122,856
|
|
Other
6
|
12,018
|
9,907
|
|
1,298
|
|
368
|
|
335
|
|
12,862
|
|
5,898
|
|
8,823
|
|
35,924
|
|
95,897
|
82,548
|
$
|
1,283
|
$
|
396
|
$
|
391
|
$
|
105,908
|
$
|
40,904
|
$
|
72,811
|
$
|
3,384,075
|
Operating results
|
|
|
|
|
|
|
|
$
|
203,034
|
$
|
82,948
|
$
|
144,428
|
$
|
5,728,770
|
Corporate costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
$
|
(8,793)
|
$
|
(6,693)
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
(6,360)
|
|
(6,394)
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
(1,480)
|
|
(2,220)
|
|
|
|
Income tax
recovery
|
|
|
|
|
|
|
|
|
|
|
|
263
|
|
-
|
|
|
Total corporate
costs
|
|
|
|
|
|
|
|
|
$
|
(16,370)
|
$
|
(15,307)
|
$
|
206,916
|
|
|
|
|
|
|
|
|
|
|
|
$
|
66,578
|
$
|
129,121
|
$
|
5,935,686
|
1)
|
All figures in
thousands except gold ounces produced and sold and per ounce
amounts.
|
2)
|
Ounces produced
represent the quantity of silver and gold 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 silver or gold 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 (ii) at the end of this press
release.
|
4)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Minto,
Cozamin, Neves-Corvo, Lagunas Norte, Pierina, Veladero and 777
silver interests as well as the non-operating Keno Hill, Aljustrel,
Loma de La Plata, Pascua-Lama and Rosemont silver interests. The
Cozamin precious metal purchase agreement expired on April 4,
2017.
|
5)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests, the non-operating Victor gold interest and the Stobie
gold interest which was placed into care and maintenance during the
second quarter of 2017.
|
6)
|
Comprised of the
operating Minto and 777 gold interests in addition to the
non-operating Rosemont gold interest.
|
On a silver equivalent and gold equivalent basis, results
for the Company for the three months ended September 30, 2017 were as follows:
Three Months Ended
September 30, 2017
|
|
Silver / Gold
Ratio 1
|
Ounces
Produced 2, 3
|
Ounces
Sold 3
|
Average
Realized
Price
($'s Per Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 4
|
Cash
Operating
Margin
($'s Per
Ounce) 5
|
Average
Depletion
($'s Per
Ounce)
|
Gross Margin
($'s Per
Ounce)
|
|
|
|
|
|
|
|
|
|
Silver equivalent
basis
|
75.9
|
14,874
|
12,024
|
$
16.89
|
$
4.84
|
$
12.05
|
$
5.14
|
$
6.91
|
Gold equivalent
basis
|
75.9
|
195,944
|
158,401
|
$
1,282
|
$
368
|
$
914
|
$
390
|
$
524
|
1)
|
The silver / gold
ratio is the ratio of the average price of silver to the average
price of gold per the London Bullion Metal Exchange during the
period.
|
2)
|
Ounces produced
represent the quantity of silver and gold 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 silver or gold 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)
|
Silver ounces
produced and sold in thousands.
|
4)
|
Refer to discussion
on non-IFRS measure (ii) at the end of this press
release.
|
5)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release
|
Three Months Ended
September 30, 2016
|
|
Ounces
Produced²
|
Ounces
Sold
|
Average
Realized
Price
($'s Per Ounce)
|
Average
Cash Cost
($'s Per
Ounce)3
|
Average
Depletion
($'s Per
Ounce)
|
Sales
|
Net
Earnings
|
Cash Flow
From
Operations
|
Total
Assets
|
Silver
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Dimas
|
1,264
|
1,065
|
$
|
19.75
|
$
|
4.28
|
$
|
1.11
|
$
|
21,037
|
$
|
15,300
|
$
|
16,478
|
$
|
142,312
|
|
Peñasquito
|
1,487
|
1,078
|
|
19.73
|
|
4.09
|
|
3.05
|
|
21,276
|
|
13,574
|
|
16,866
|
|
421,955
|
|
Antamina
|
1,469
|
1,598
|
|
19.67
|
|
3.84
|
|
9.94
|
|
31,437
|
|
9,424
|
|
25,305
|
|
830,594
|
|
Constancia
|
749
|
536
|
|
19.38
|
|
5.90
|
|
7.41
|
|
10,379
|
|
3,250
|
|
7,219
|
|
281,170
|
|
Other
4
|
2,682
|
1,845
|
|
19.20
|
|
5.08
|
|
4.90
|
|
35,444
|
|
17,028
|
|
28,037
|
|
799,465
|
|
7,651
|
6,122
|
$
|
19.53
|
$
|
4.51
|
$
|
5.45
|
$
|
119,573
|
$
|
58,576
|
$
|
93,905
|
$
|
2,475,496
|
Gold
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sudbury
5
|
10,779
|
12,294
|
$
|
1,332
|
$
|
400
|
$
|
787
|
$
|
16,382
|
$
|
1,787
|
$
|
11,463
|
$
|
480,550
|
|
Salobo
|
68,168
|
50,043
|
|
1,339
|
|
400
|
|
382
|
|
67,008
|
|
27,875
|
|
46,991
|
|
2,932,959
|
|
Constancia
|
3,737
|
3,396
|
|
1,338
|
|
400
|
|
409
|
|
4,544
|
|
1,795
|
|
3,186
|
|
127,038
|
|
Other
6
|
30,324
|
19,330
|
|
1,329
|
|
354
|
|
537
|
|
25,697
|
|
8,476
|
|
19,016
|
|
62,586
|
|
113,008
|
85,063
|
$
|
1,336
|
$
|
390
|
$
|
477
|
$
|
113,631
|
$
|
39,933
|
$
|
80,656
|
$
|
3,603,133
|
Operating results
|
|
|
|
|
|
|
|
$
|
233,204
|
$
|
98,509
|
$
|
174,561
|
$
|
6,078,629
|
Corporate costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative
|
|
|
|
|
|
|
|
|
|
|
$
|
(9,513)
|
$
|
(6,881)
|
|
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
(6,007)
|
|
(5,204)
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
(1,380)
|
|
(899)
|
|
|
|
Income tax
recovery
|
|
|
|
|
|
|
|
|
|
|
|
1,377
|
|
-
|
|
|
Total corporate
costs
|
|
|
|
|
|
|
|
|
$
|
(15,523)
|
$
|
(12,984)
|
$
|
247,403
|
|
|
|
|
|
|
|
|
|
|
|
$
|
82,986
|
$
|
161,577
|
$
|
6,326,032
|
1)
|
All figures in
thousands except gold ounces produced and sold and per ounce
amounts.
|
2)
|
Ounces produced
represent the quantity of silver and gold 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 silver or gold 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 (ii) at the end of this press
release.
|
4)
|
Comprised of the
operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Minto,
Cozamin, Neves-Corvo, Lagunas Norte, Pierina, Veladero and 777
silver interests as well as the non-operating Keno Hill, Aljustrel,
Loma de La Plata, Pascua-Lama and Rosemont silver interests. The
Cozamin precious metal purchase agreement expired on April 4,
2017.
|
5)
|
Comprised of the
operating Coleman, Copper Cliff, Garson, Creighton and Totten gold
interests, the non-operating Victor gold interest and the Stobie
gold interest which was placed into care and maintenance during the
second quarter of
2017.
|
6)
|
Comprised of the
operating Minto and 777 gold interests in addition to the
non-operating Rosemont gold interest.
|
On a silver equivalent and gold equivalent basis, results
for the Company for the three months ended September 30, 2016 were as follows:
Three Months Ended
September 30, 2016
|
|
Silver / Gold
Ratio 1
|
Ounces
Produced 2, 3
|
Ounces
Sold 3
|
Average
Realized
Price
($'s Per Ounce)
|
Average
Cash Cost
($'s Per
Ounce) 4
|
Cash Operating Margin
($'s Per Ounce) 5
|
Average
Depletion
($'s Per
Ounce)
|
Gross Margin
($'s Per
Ounce)
|
|
|
|
|
|
|
|
|
|
Silver equivalent
basis
|
68.1
|
15,343
|
11,913
|
$
19.57
|
$
5.10
|
$
14.47
|
$
6.20
|
$
8.27
|
Gold equivalent
basis
|
68.1
|
225,393
|
175,008
|
$
1,333
|
$
347
|
$
986
|
$
422
|
$
564
|
1)
|
The silver / gold
ratio is the ratio of the average price of silver to the average
price of gold per the London Bullion Metal Exchange during the
period.
|
2)
|
Ounces produced
represent the quantity of silver and gold 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 silver or gold 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)
|
Silver ounces
produced and sold in thousands.
|
4)
|
Refer to discussion
on non-IFRS measure (ii) at the end of this press
release.
|
5)
|
Refer to discussion
on non-IFRS measure (iii) at the end of this press
release.
|
Non-IFRS Measures
Wheaton Precious Metals has included, throughout this
document, certain non-IFRS performance measures, including (i)
operating cash flow per share (basic and diluted); (ii) average
cash costs of silver and gold on a per ounce basis and; (iii) cash
operating margin.
i.
|
Operating cash flow
per share (basic and diluted) is calculated by dividing cash
generated by operating activities by the weighted average number of
shares outstanding (basic and diluted). The Company presents
operating cash flow per share as management and certain investors
use this information to evaluate the Company's performance in
comparison to other companies in the precious metal mining industry
who present results on a similar
basis.
|
|
|
|
The following table
provides a reconciliation of operating cash flow per share (basic
and diluted).
|
|
Three Months
Ended
September 30
|
(in thousands, except
for per share amounts)
|
|
2017
|
|
2016
|
Cash generated by
operating activities
|
|
$
|
129,121
|
|
$
|
161,577
|
Divided
by:
|
|
|
|
|
|
|
|
Basic weighted
average number of shares outstanding
|
|
|
442,094
|
|
|
440,635
|
|
Diluted weighted
average number of shares
outstanding
|
|
|
442,476
|
|
|
441,917
|
Equals:
|
|
|
|
|
|
|
|
Operating cash flow
per share - basic
|
|
$
|
0.29
|
|
$
|
0.37
|
|
Operating cash flow
per share - diluted
|
|
$
|
0.29
|
|
$
|
0.37
|
ii.
|
Average cash cost of
silver and gold on a per ounce basis is calculated by dividing the
total cost of sales, less depletion, by the ounces sold. In the
precious metal mining industry, this is a common performance
measure but does not have any standardized meaning. 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 reconciliation of average cash cost of silver and gold
on a per ounce basis.
|
|
Three Months
Ended
September 30
|
(in thousands, except
for gold ounces sold and per ounce
amounts)
|
|
2017
|
|
2016
|
Cost of
sales
|
|
$
|
120,086
|
|
$
|
134,695
|
Less:
depletion
|
|
|
(61,852)
|
|
|
(73,919)
|
Cash cost of
sales
|
|
$
|
58,234
|
|
$
|
60,776
|
Cash cost of sales is
comprised of:
|
|
|
|
|
|
|
|
Total cash cost of
silver sold
|
|
$
|
25,529
|
|
$
|
27,637
|
|
Total cash cost of
gold sold
|
|
|
32,705
|
|
|
33,139
|
|
Total cash cost of
sales
|
|
$
|
58,234
|
|
$
|
60,776
|
Divided
by:
|
|
|
|
|
|
|
|
Total silver ounces
sold
|
|
|
5,758
|
|
|
6,122
|
|
Total gold ounces
sold
|
|
|
82,548
|
|
|
85,063
|
Equals:
|
|
|
|
|
|
|
|
Average cash cost of
silver (per ounce)
|
|
$
|
4.43
|
|
$
|
4.51
|
|
Average cash cost of
gold (per
ounce)
|
|
$
|
396
|
|
$
|
390
|
iii.
|
Cash operating margin
is calculated by subtracting the average cash cost of silver and
gold on a per ounce basis from the average realized selling price
of silver and gold on a per ounce 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
September 30
|
(in thousands, except
for gold ounces sold and per ounce
amounts)
|
|
2017
|
|
2016
|
Total
sales:
|
|
|
|
|
|
|
|
Silver
|
|
$
|
97,126
|
|
$
|
119,573
|
|
Gold
|
|
$
|
105,908
|
|
$
|
113,631
|
Divided
by:
|
|
|
|
|
|
|
|
Total silver ounces
sold
|
|
|
5,758
|
|
|
6,122
|
|
Total gold ounces
sold
|
|
|
82,548
|
|
|
85,063
|
Equals:
|
|
|
|
|
|
|
|
Average realized
price of silver (per ounce)
|
|
$
|
16.87
|
|
$
|
19.53
|
|
Average realized
price of gold (per ounce)
|
|
$
|
1,283
|
|
$
|
1,336
|
Less:
|
|
|
|
|
|
|
|
Average cash cost of
silver 1 (per ounce)
|
|
$
|
(4.43)
|
|
$
|
(4.51)
|
|
Average cash cost of
gold 1 (per ounce)
|
|
$
|
(396)
|
|
$
|
(390)
|
Equals:
|
|
|
|
|
|
|
|
Cash operating margin
per silver ounce sold
|
|
$
|
12.44
|
|
$
|
15.02
|
|
|
As a percentage of
realized price of
silver
|
|
|
74%
|
|
|
77%
|
|
Cash operating margin
per gold ounce
sold
|
|
$
|
887
|
|
$
|
946
|
|
As a percentage of
realized price of
gold
|
|
|
69%
|
|
|
71%
|
1) Please refer
to non-IFRS measure (ii), 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 Precious Metals' 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
The information contained herein 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. Forward-looking statements, which are all statements
other than statements of historical fact, include, but are not
limited to, statements with respect to:
- statements with respect to the proposed entering into,
and advance, by the Company of up to Cdn$20
million subordinated secured convertible debenture term debt
loan to Desert Star;
- statements with respect to the successful negotiation and
entering into of a definitive documentation by the Company with
Desert Star, payment by the Company of US$65
million to Desert Star and the satisfaction of each party's
obligations in accordance with the Kutcho Early Deposit
Agreement;
- the receipt by the Company of silver and gold production
in respect of the Kutcho project;
- future payments by the Company in accordance with
precious metal purchase agreements, including any acceleration of
payments, estimated throughput and exploration
potential;
- projected increases to Wheaton Precious Metals'
production and cash flow profile;
- the expansion and exploration
potential at the Salobo and San
Dimas mines;
- projected changes to Wheaton Precious Metals' production
mix;
- anticipated increases in total throughput;
- the effect of the SAT legal claim on Primero's business,
financial condition, results of operations and cash flows for
2010-2014 and 2015-2019;
- the impact on Primero of the unionized employee strike at
the San Dimas mine which concluded
in April 2017 and any other labour
disruptions;
- the ability of Primero to continue as a going
concern;
- the ability of Primero to determine that it is uneconomic
to continue mining operations at the San
Dimas mine;
- the ability of Primero to achieve expected production
levels;
- the Guarantee of the Primero Facility;
- possible amendments to the San
Dimas silver purchase agreement as a result of any strategic
process or discussions with Primero;
- the estimated future production;
- the future price of commodities;
- the estimation of mineral reserves and mineral
resources;
- the realization of mineral reserve estimates;
- the timing and amount of estimated future production
(including 2017 and average attributable annual production over the
next five years);
- the costs of future production;
- reserve determination;
- estimated reserve conversion rates and produced but not
yet delivered ounces;
- any statements as to future dividends, the ability to
fund outstanding commitments and the ability to continue to acquire
accretive precious metal stream interests;
- confidence in the Company's business
structure;
- the Company's position relating to any dispute with the
CRA and the Company's intention to defend reassessments issued by
the CRA; the impact of potential taxes, penalties and interest
payable to the CRA; possible audits for taxation years subsequent
to 2015; estimates as to amounts that may be reassessed by the CRA
in respect of taxation years subsequent to 2010; amounts that may
be payable in respect of penalties and interest; the Company's
intention to file future tax returns in a manner consistent with
previous filings; that the CRA will continue to accept the Company
posting security for amounts sought by the CRA under notices of
reassessment for the 2005-2010 taxation years or will accept
posting security for any other amounts that may be sought by the
CRA under other notices of reassessment; the length of time it
would take to resolve any dispute with the CRA or an objection to a
reassessment; and assessments of the impact and resolution of
various tax matters, including outstanding audits, proceedings with
the CRA and proceedings before the courts; and
- assessments of the impact and resolution of various legal
and tax matters, including but not limited to outstanding class
action litigation.
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 Precious Metals to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited
to:
- specific risks relating to the entering into and
advancing of amounts under the subordinated secured convertible
debenture term debt loan;
- Desert Star not being able to make payments under the
subordinated secured convertible debenture term debt
loan;
- any specific risks relating to the completion of
documentation and diligence for the Kutcho Early Deposit
Agreement;
- the satisfaction of each party's obligations in
accordance with the terms of the Kutcho Early Deposit
Agreement;
- risks related to the satisfaction of each party's
obligations in accordance with the terms of the precious metal
purchase agreements, including any acceleration of payments,
estimated throughput and exploration potential;
- fluctuations in the price of commodities;
- risks related to the mining operations from which Wheaton
Precious Metals purchases silver or gold (the "Mining Operations")
including risks related to fluctuations in the price of the primary
commodities mined at such operations, actual results of mining and
exploration activities, environmental, economic and political risks
of the jurisdictions in which the Mining Operations are located,
and changes in project parameters as plans continue to
be refined;
- the absence of control over Mining Operations and having
to rely on the accuracy of the public disclosure and other
information Wheaton Precious Metals receives from the owners and
operators of the Mining Operations as the basis for its analyses,
forecasts and assessments relating to its own business;
- Primero is not able to defend the validity of the 2012
APA, is unable to pay taxes in Mexico based on realized silver prices or the
SAT proceedings or actions otherwise have an adverse impact on the
business, financial condition or results of operation of
Primero;
- Primero not being able to profitably operate the
San Dimas mine due to the impact
of the strike or other labour disruptions;
- Primero not being able to continue as a going
concern;
- Primero determining that it is uneconomic to continue
mining operations at the San Dimas
mine and ceasing such mining operations;
- Primero not being able to achieve expected production
levels;
- Primero not being able to secure additional funding,
resume San Dimas mine operations
to normal operating capacity, reduce cash outflows or have a
successful outcome to a strategic review process;
- Primero failing to make required payments or otherwise
defaulting under its credit facility and the Company having to meet
its guarantee obligations under the Guarantee;
- amendments to the San
Dimas silver purchase agreement have a material adverse
effect on the Company's business, financial condition, results of
operation or cash flows;
- differences in the interpretation or application of tax
laws and regulations or accounting policies and rules; and Wheaton
Precious Metals' interpretation of, or compliance with, tax laws
and regulations or accounting policies and rules, is found to
be incorrect or the tax impact to the Company's business
operations is materially different than currently
contemplated;
- any challenge by the CRA of the Company's tax filings is
successful and the potential negative impact to the Company's
previous and future tax filings;
- the Company's business or ability to enter into precious
metal purchase agreements is materially impacted as a result of any
CRA reassessment;
- any reassessment of the Company's tax filings and the
continuation or timing of any such process is outside the Company's
control;
- any requirement to pay reassessed tax, and
the amount of any tax, interest and penalties that may be payable
changing due to currency fluctuations;
- the Company is not assessed taxes on its foreign
subsidiary's income on the same basis that the Company pays taxes
on its Canadian income, if taxable in Canada;
- interest and penalties associated with a CRA reassessment
having an adverse impact on the Company's financial
position;
- litigation risk associated with a challenge to the
Company's tax filings;
- credit and liquidity risks;
- hedging risk;
- competition in the mining industry;
- risks related to Wheaton Precious Metals' acquisition
strategy;
- risks related to the market price of the common shares of
Wheaton Precious Metals;
- equity price risks related to Wheaton Precious Metals'
holding of long‑term investments in other exploration and mining
companies;
- ·risks related to the declaration, timing
and payment of dividends;
- the ability of Wheaton Precious Metals and the Mining
Operations to retain key management employees or procure the
services of skilled and experienced personnel;
- litigation risk associated with outstanding legal
matters;
- risks related to claims and legal proceedings against
Wheaton Precious Metals or the Mining Operations;
- risks relating to unknown defects and
impairments;
- risks relating to security over underlying
assets;
- risks related to ensuring the security and safety of
information systems, including cyber security risks;
- risks related to the adequacy of internal control over
financial reporting;
- risks related to governmental regulations;
- risks related to international operations of Wheaton
Precious Metals and the Mining Operations;
- risks relating to exploration, development and operations
at the Mining Operations;
- risks related to the ability of the companies with which
the Company has precious metal purchase agreements to perform their
obligations under those precious metal purchase agreements in the
event of a material adverse effect on the results of operations,
financial condition, cash flows or business of such
companies;
- risks related to environmental regulations
and climate change;
- the ability of Wheaton Precious Metals and the Mining
Operations to obtain and maintain necessary licenses, permits,
approvals and rulings;
- the ability of Wheaton Precious Metals and the Mining
Operations to comply with applicable laws, regulations and
permitting requirements;
- lack of suitable infrastructure and employees to support
the Mining Operations;
- uncertainty in the accuracy of mineral reserve and
mineral resource estimates;
- inability to replace and expand mineral
reserves;
- risks relating to production estimates from Mining
Operations, including anticipated timing of the commencement of
production by certain Mining Operations;
- uncertainties related to title and indigenous rights with
respect to the mineral properties of the Mining
Operations;
- fluctuation in the commodity prices other than silver or
gold;
- the ability of Wheaton Precious Metals and the Mining
Operations to obtain adequate financing;
- the ability of Mining Operations to complete permitting,
construction, development and expansion;
- challenges related to global financial
conditions;
- risks relating to future sales or the issuance of equity
securities; and
- other risks discussed in the section entitled
"Description of the Business – Risk Factors" in Wheaton Precious
Metals' Annual Information Form available on SEDAR at
www.sedar.com, and in Wheaton Precious Metals' Form 40-F filed
March 31, 2017 and Form 6-K filed
March 21, 2017 both on file with the
U.S. Securities and Exchange Commission in Washington, D.C. (the
"Disclosure").
Forward-looking statements are based on assumptions
management currently believes to be reasonable, including but not
limited to:
- the completion of documentation and receipt of all
necessary approvals in respect of the subordinated secured
convertible debenture term debt loan with Desert Star;
- that Desert Star will make all required payments and not
be in default under the subordinated secured convertible debenture
term debt loan;
- the completion of documentation and diligence in respect
of the Kutcho Early Deposit Agreement;
- the payment of US$65
million to Desert Star and the satisfaction of each party's
obligations in accordance with the terms of the Kutcho Early
Deposit Agreement;
- the satisfaction of each party's obligations in
accordance with the precious metal purchase agreements;
- 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;
- the continuing ability to fund or obtain funding for
outstanding commitments;
- that the impact on Primero of the unionized employee
strike or other labour disruptions at the San Dimas mine will not be
significant;
- that Primero is able to continue as a going
concern;
- that Primero will not determine that it is uneconomic to
continue mining operations at the San
Dimas mine;
- that Primero is able to achieve expected production
levels;
- that Primero will make all required payments and not be
in default under the Primero Facility;
- that any amendments to the San
Dimas silver purchase agreement will not have a material
adverse effect on the Company's business, financial condition,
results of operation or cash flows;
- Wheaton Precious Metals' ability to source and obtain
accretive precious metal stream interests;
- expectations regarding the resolution of legal and tax
matters, including the ongoing class action litigation
and CRA audit involving the Company;
- Wheaton Precious Metals will be successful in challenging
any reassessment by the CRA;
- Wheaton Precious Metals has properly considered the
application of Canadian tax law to its structure and
operations;
- Wheaton Precious Metals will continue to be permitted to
post security for amounts sought by the CRA under notices of
reassessment;
- Wheaton Precious Metals has filed its tax returns and
paid applicable taxes in compliance with Canadian tax
law;
- Wheaton Precious Metals will not change its business as a
result of any CRA reassessment;
- Wheaton Precious Metals' ability to enter into new
precious metal purchase agreements will not be impacted by any CRA
reassessment;
- expectations and assumptions concerning prevailing tax
laws and the potential amount that could be reassessed as
additional tax, penalties and interest by the CRA;
- any foreign subsidiary income, if taxable in Canada, would be subject to the same or
similar tax calculations as Wheaton Precious Metals' Canadian
income, including the Company's position, in respect of precious
metal purchase agreements with upfront payments paid in the form of
a deposit, that the estimates of income subject to tax is based on
the cost of precious metal acquired under such precious metal
purchase agreements being equal to the market value of such
precious metal.
- the estimate of the recoverable amount for any precious
metal purchase agreement with an indicator of impairment;
and
- such other assumptions and factors as set out in the
Disclosure.
Although Wheaton Precious Metals 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. 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 Precious Metals.
Accordingly, 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 investors with information to assist them
in understanding Wheaton Precious Metals' 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. Wheaton Precious Metals does not undertake to
update any forward-looking statements that are included or
incorporated by reference herein, except in accordance with
applicable securities laws.
Cautionary Language Regarding Reserves And
Resources
For further information on Mineral Reserves and Mineral
Resources and on Wheaton Precious Metals more generally, readers
should refer to Wheaton Precious Metals' Annual Information Form
for the year ended December 31, 2016
and other continuous disclosure documents filed by Wheaton Precious
Metals since January 1, 2017,
available on SEDAR at www.sedar.com. Wheaton Precious Metals'
Mineral Reserves and Mineral Resources are subject to the
qualifications and notes set forth therein. Mineral Resources which
are not Mineral Reserves do not have demonstrated economic
viability.
Cautionary Note to United States Investors Concerning
Estimates of Measured, Indicated and Inferred Resources:
The information contained herein has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the
requirements of United States
securities laws. The terms "mineral reserve", "proven mineral
reserve" and "probable mineral reserve" are Canadian mining terms
defined in accordance with Canadian National Instrument 43-101 –
Standards of Disclosure for Mineral Projects ("NI 43-101") and the
Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
– CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the "CIM
Standards"). These definitions differ from the definitions in
Industry Guide 7 ("SEC Industry Guide 7") under the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act"). Under U.S.
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. Also, under SEC Industry Guide 7
standards, a "final" or "bankable" feasibility study is required to
report reserves, the three-year historical average price is used in
any reserve or cash flow analysis to designate reserves and the
primary environmental analysis or report must be filed with the
appropriate governmental authority. In addition, the terms "mineral
resource", "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource" are defined in and
required to be disclosed by NI 43-101; however, these terms are not
defined terms under SEC Industry Guide 7 and are normally not
permitted to be used in reports and registration statements filed
with the SEC. Investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be
converted into reserves. "Inferred mineral resources" have a great
amount of uncertainty as to their existence and as to their
economic and legal feasibility. It cannot be assumed that all or
any part of an inferred mineral resource will ever be upgraded to a
higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that all or any part of an inferred mineral
resource exists or is economically or legally mineable. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. Disclosure of "contained ounces" in a resource
is permitted disclosure under Canadian regulations; however, the
SEC normally only permits issuers to report mineralization that
does not constitute "reserves" by SEC standards as in place tonnage
and grade without reference to unit measures. Accordingly,
information contained herein that describes Wheaton Precious
Metals' 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
Precious Metals' Form 40-F, a copy of which may be obtained from
Wheaton Precious Metals or from
http://www.sec.gov/edgar.shtml.
In accordance with the Company's MD&A and financial
statements, reference to the Company includes the Company's wholly
owned subsidiaries.
SOURCE Wheaton Precious Metals Corp.