WPM Wheaton Precious Metals Corp

Designated News Release 
THIRD QUARTER FINANCIAL RESULTS

VANCOUVER, BC, Nov. 7, 2024 /PRNewswire/ - "Wheaton achieved record cash flow from operations in the third quarter of 2024, underscoring the effectiveness of our business model in leveraging rising commodity prices, with our cash operating margins increasing by over 30% relative to the third quarter of 2023. Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage's Koné Project and an amendment to the existing stream on Rio2's Fenix Project. Together, these transactions further diversify our strategic partnerships and the geography of our portfolio. Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production, reinforcing Wheaton's already prominent position as a leader in the sector's growth landscape."

Solid Financial Results and Strong Balance Sheet

• Third quarter of 2024: $308 million in revenue, $254 million in operating cash flow, $155 million in net earnings and $153 million in adjusted net earnings¹, and declared a quarterly dividend¹ of $0.155 per common share.
• Balance Sheet: cash balance of $694 million, no debt, and an undrawn $2 billion revolving credit facility as at September 30, 2024 after making total upfront cash payments of $30 million relative to mineral stream and royalty interests in the quarter.

High Quality Asset Base

• Streaming and royalty agreements on 18 operating mines and 28 development projects⁵, including the addition of the Koné project announced subsequent to the quarter.
• 93% of attributable production from assets in the lowest half of their respective cost curves^2,4.
• Attributable gold equivalent production³ ("GEOs") of 144,200 ounces in the third quarter of 2024 and 448,400 for the first nine months of 2024, with quarterly production consistent with the comparable period of the prior year, as lower production from Salobo and Constancia was largely offset by higher production from Peñasquito. 
• Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs³ maintained, with forecasted sector-leading growth to over 800,000 GEOs³ by 2028, and average annual forecast attributable production growing to over 850,000 GEOs³ in years 2029 to 2033.
• Further de-risked forecast growth profile as construction activities advanced at the Blackwater, Goose, Platreef, and Mineral Park projects, all of which are expected to be producing within the next 12 months.
• Subsequent to the quarter, the Company announced two accretive precious metals streaming agreements:
  • On October 23, 2024, the Company entered into a precious metals purchase agreement ("PMPA") with Montage Gold Corp. in respect to the Koné Gold Project located in Côte d'Ivoire.
  • On October 21, 2024, the Company amended the Fenix PMPA, increasing the amount of attributable gold it is entitled to under the contract.

Leadership in Sustainability

• Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
• Launch of inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology aimed at minimizing environmental impacts, improving efficiencies, and contributing to climate solutions, while ensuring key resources are responsibly available for future generations.

Operational Overview 

Financial Review

Revenues
Revenue in the third quarter of 2024 was $308 million (61% gold, 37% silver, 1% palladium and 1% cobalt), with the $85 million increase relative to the prior period quarter being primarily due to a 26% increase in the average realized gold equivalent³ price; and a 10% increase in the number of GEOs³ sold.

Revenue was $904 million in the nine months ended September 30, 2024, representing a $202 million increase from the comparable period of the previous year due primarily to a 16% increase in the average realized gold equivalent³ price; and an 11% increase in the number of GEOs³ sold.

Cash Costs and Margin
Average cash costs¹ in the third quarter of 2024 were $437 per GEO³ as compared to $445 in the third quarter of 2023. This resulted in a cash operating margin¹ of $2,075 per GEO³ sold, an increase of 34% as compared with the third quarter of 2023, a result of the higher realized price per ounce coupled with the lower average cash costs due to changes in the sales mix.

Average cash costs¹ for the nine months ended September 30, 2024 were $434 per GEO³ as compared to $457 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,885 per GEO³ sold, a 22% increase from comparable period of the previous year.

Cash Flow from Operations
Operating cash flow in the third quarter of 2024 amounted to $254 million, with the $83 million increase due primarily to the higher gross margin.

Operating cash flows for the nine months ended September 30, 2024 amounted to $708 million, with the $200 million increase from the comparable period of the previous year being due primarily to the higher gross margin.

Balance Sheet (at September 30, 2024)

• Approximately $694 million of cash on hand
• During the third quarter of 2024, the Company made total upfront cash payments of $30 million relative to the mineral stream and royalty interests consisting of:
  • $25 million relative to the Mineral Park PMPA; and
  • $5 million relative to the DeLamar Royalty.
• With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company believes it is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

Global Minimum Tax
The Company is within the scope of global minimum tax ("GMT") under the OECD Pillar Two model rules ("Pillar Two"), under which large multinational entities are subject to a 15% GMT. On June 20, 2024, Canada's Global Minimum Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two model rules where in scope companies are subject to a 15% GMT for fiscal years commencing on or after December 31, 2023. With the enactment of the GMTA on June 20, 2024, the income of the Company's subsidiaries which operate in jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the three months ended September 30, 2024 an amount of $28 million current tax expense associated with GMT was recorded (nine months - $78 million). GMT accrued to December 31, 2024, is payable on or before June 30, 2026 (18 months following year-end).

Third Quarter Operating Asset Highlights

Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of attributable gold, a decrease of approximately 9% relative to the third quarter of 2023, primarily due to lower grades, partially offset by higher throughput. On July 25, 2024, Vale S.A. ("Vale") reported that the Salobo III processing plant operations resumed in July, after being halted for 31 days due to a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355 kt has been maintained.

Antamina: In the third quarter of 2024, Antamina produced 0.9 million ounces of attributable silver, an increase of approximately 3% relative to the third quarter of 2023 primarily due to higher recoveries, partially offset by lower throughput.

Peñasquito: In the third quarter of 2024, Peñasquito produced 1.8 million ounces of attributable silver, with Peñasquito producing no ounces in the third quarter of 2023 as a result of a labour strike which lasted from June 7 to October 13, 2023.

Constancia: In the third quarter of 2024, Constancia produced 0.6 million ounces of attributable silver and 10,400 ounces of attributable gold, a decrease of approximately 7% and 45%, respectively, relative to the third quarter of 2023. The decrease in silver production was primarily due to lower recoveries. The decrease in gold production was primarily the result of lower gold grades due largely to the planned stripping activity in the Pampacancha pit, which commenced in the second quarter, and continued throughout the third quarter. On August 13, 2024, Hudbay Minerals Inc. ("Hudbay") reported that the stripping program for the next mining phase at Pampacancha was underway and expected to lead to significantly higher copper and gold grades in the fourth quarter of 2024.

Sudbury: In the third quarter of 2024, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 11% relative to the third quarter of 2023, due to higher throughput. 

Stillwater: In the third quarter of 2024, the Stillwater mines produced 2,200 ounces of attributable gold and 4,000 ounces of attributable palladium, a decrease of approximately 8% for gold relative to the third quarter of 2023, due primarily to lower recoveries, while palladium production was virtually unchanged. On September 12, 2024, Sibanye Stillwater ("Sibanye") announced that as a result of low palladium prices it was placing the Stillwater West operations into care and maintenance, while Stillwater East and East Boulder operations continue to operate. Sibanye reports that Stillwater West could return to production as prices permit. Based on Sibanye's Q3 MD&A, the Company's management estimates that with the Stillwater West operations in care and maintenance, 2025 production relative to the Stillwater PMPA will be approximately 40% to 45% lower than historical levels.

Voisey's Bay: In the third quarter of 2024, the Voisey's Bay mine produced 397,000 pounds of attributable cobalt, an increase of approximately 118% relative to the third quarter of 2023, as the transitional period between the depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's Bay underground mine nears completion. Vale reported that physical completion of the Voisey's Bay underground mine extension was 99% at the end of the third quarter, with all surface construction completed and the commissioning of the Reid Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material Handling system achieved mechanical completion in early October and Vale indicated that the focus is now on commissioning, with handover to Operations within 2024. Demobilization efforts are ongoing, with Surface contractors already fully demobilized.

Other Silver: In the third quarter of 2024, total Other Silver attributable production was 1.2 million ounces, a decrease of approximately 34% relative to the third quarter of 2023. The decrease from the comparable period of the prior year is primarily due to the temporary suspension of attributable ore mined at Aljustrel commencing September 24, 2023.

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

Recent Development Asset Updates

Blackwater Project: On November 6, 2024, Artemis Gold Inc., ("Artemis") announced that overall construction was over 95% complete as of September 30, 2024 and first gold pour is targeted for late Q4 2024.  Construction of the tailings storage facility is ready to allow for the commencement of commissioning of the plant. Artemis reported that the initial mining fleet has been commissioned and pre-stripping of the mine, as well as the construction of haul roads are well advanced.

Platreef Project: On October 30, 2024, Ivanhoe Mines ("Ivanhoe") reported that construction of the Phase 1 concentrator was completed on schedule early in the third quarter. First ore is scheduled for the second half of 2025, while underground development prioritizes development to accelerate Phase 2. Ivanhoe also states that work continues on the updated feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic assessment of the previously announced Phase 3 expansion to 10 Mtpa processing capacity. Both studies are now expected to be published in Q1 2025.

Goose Project: On November 6 2024, B2Gold Corp. ("B2Gold") announced that all planned construction year to date in 2024 has been completed. Project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign.

Marmato Mine: On July 16, 2024, Aris Mining Corporation ("Aris") reported that the Lower Mine project is on track for first gold pour by the end of 2025, followed by an approximate six-month ramp-up period. On October 7, 2024, Aris provided an update that the Marmato Lower Mine expansion is progressing on schedule, with the site access road and portal face now complete and the contractor preparing to initiate work on the twin declines. Both the SAG and ball mill fabrication are progressing on schedule for completion before the end of 2024.

Curipamba Project: On July 31, 2024, Silvercorp Metals Inc. ("Silvercorp") completed the previously announced acquisition of all of the issued and outstanding common shares of Adventus Mining Corporation. Under the terms of the Curipamba PMPA, within 30 days of a change of control, Silvercorp had a one-time option to repurchase 33% of the gold and silver stream which expired unexercised.

Marathon Project: On July 31, 2024, Generation Mining Limited ("Gen Mining") reported that the federal government has approved amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will allow for the construction of specific water management structures and operation of key infrastructure for the Marathon Project. On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization for the Marathon project. Gen Mining also states that receipt of the few remaining provincial and federal approvals and permits required for construction is expected in the coming months. Following which, the Marathon project will have all of the key government permits and approvals required for construction.

Santo Domingo: On July 31, 2024, Capstone Copper Corp. ("Capstone") published the results of an updated feasibility study for the Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-year mine life supported by higher mineral reserve estimates. The report indicates that total gold production is expected to average 35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per year. Capstone has reported that with construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly announced two-year, $25 million exploration program at Mantoverde, aimed at supporting the two future processing centers between Mantoverde and Santo Domingo.

Curraghinalt Project: On May 3, 2024, the Planning Appeals Commission & Water Appeals Commission (the "Commission") in Northern Ireland concluded that the water abstraction and impoundment licenses ("Water Licenses") relative to the Curraghinalt Project have been rescinded and that license applications would need to be resubmitted, and subsequent public inquiry referrals held. Dalradian has re-submitted two new applications for the abstraction licenses and those licenses were received by the Commission on September 5, 2024. The Commission has set new dates to resume the public inquiry process beginning January 13, 2025. 

Fenix Project: On October 2, 2024, Rio2 Limited ("Rio2") announced that its Chilean subsidiary has received the principal Sectorial Permits it requires to begin construction at the Fenix project. These Sectorial Permits represent the last governmental authorization required to enable the start of the construction phase and subsequent operation of the Fenix mine.

Copper World Project: On August 29, 2024, Hudbay announced that it has received an Aquifer Protection Permit for the Copper World project from the Arizona Department of Environmental Quality. The issuance of this permit is a key milestone in the advancement of Copper World. The last key state-level permit is the Air Quality Permit which is progressing as planned.

Corporate Development

Koné Gold Project

On October 23, 2024, the Company entered into a PMPA (the "Koné Gold PMPA") with Montage Gold Corp. ("Montage") in respect of its 90% owned Koné Gold Project located in Côte d'Ivoire. Under the terms of the agreement, Wheaton will purchase 19.5% of the payable gold production until 400,000 ounces of gold have been delivered (subject to adjustment if there are delays in deliveries relative to an agreed schedule), 10.8% of the gold production until the delivery of a further 130,000 ounces and 5.4% gold production thereafter for the life of mine. Under the terms of the Koné Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million, payable in four equal installment payments during construction, subject to certain conditions, including that all permits have been obtained.

In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 20% of the spot gold price. For the first five years after the PMPA is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 per ounce or greater than $2,700 per ounce.

The Company has also provided Montage with a secured debt facility of up to $75 million (the "Facility").

Amendment to the Fenix PMPA

On November 15, 2021, the Company acquired a gold stream in respect of gold production from the Fenix Project (the "Fenix PMPA"). Under the terms of the Fenix PMPA, the Company was to acquire an amount of gold equal to 6% of the gold production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life of mine.

On October 21, 2024, the Company amended the Fenix PMPA. Under the terms of the amended agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total, subject to adjustment if there are delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds under the original Fenix PMPA (as described above). Rio2 has a one-time option to terminate the requirement to deliver the additional gold production from the end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the original Fenix PMPA. Finally, the Company has also agreed to adjust the production payment for all gold ounces delivered to 20% of the spot gold price. In exchange for the amendment, the Company is committed to pay additional upfront cash consideration of $100 million, payable in two equal installments, subject to various customary conditions being satisfied.

Wheaton will also provide a $20 million contingent secured debt facility in the form of a standby loan facility. Lastly, Wheaton has committed to participate in a private placement of Rio2 common shares for Cdn$5 million at a price per share equal to, and concurrent with, a public offering by Rio2.

Sustainability

Future of Mining Challenge

On September 16, 2024, Wheaton announced the launch of the inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology. The Future of Mining Challenge invites cleantech ventures from around the world to submit and propose industry solutions. This year's challenge focuses on identifying eligible technologies with the potential to reduce greenhouse gas emissions across mining operations. In alignment with Wheaton's business model, the solutions should be applicable to base and/or precious metal mining. They should also be scalable globally, with the aim of future implementation at operating mines. The challenge is being supported by Foresight Canada. Submissions for challenge applications opened in September 2024, and the winner will be announced in March 2025 at the PDAC Convention in Toronto, the world's largest mining conference. More information can be found at www.futureofmining.ca.

Community Investment Program

• Wheaton's Partner Community Investment Program continues to support initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina, Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the communities influenced by the mines and provide vital services and programs including educational resources, health and dental programs, poverty reduction initiatives, entrepreneurial opportunities, and various social and environmental programs.
• In August 2024, the BC Cancer Foundation's Tour de Cure presented by Wheaton raised C$7.3 million to advance groundbreaking cancer research and care enhancements in British Columbia.

2024 and Long-Term Production Outlook

Wheaton's estimated attributable production in 2024 is forecast to be 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 GEOs³ of other metals, resulting in annual production of approximately 550,000 to 620,000 GEOs³, unchanged from previous guidance^2,3.

Annual production is forecast to increase by approximately 40% to over 800,000 GEOs³ by 2028, with average annual production forecast to grow to over 850,000 GEO³ in years 2029 to 2033, also unchanged from previous guidance⁶. The transactions announced in 2024, including the new stream associated with the Koné Project and the amendment related to the Fenix Project, have not been incorporated into the long-term guidance.

The Company will provide updated longer-term guidance in normal course in the first quarter of 2025, which will incorporate the impact of recent developments and the acquisitions announced in 2024.^2,3

About Wheaton Precious Metals Corp.

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

In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.

Webcast and Conference Call Details

A conference call will be held on Friday, November 8, 2024, starting at 11:00 am ET (8:00 am PT) to discuss these results. To participate in the live call, please use one of the following methods:

RapidConnect URL:                                       Click here
Live webcast:                                                 Click here
Dial toll free:                                                   1-888-510-2154 or 1-437-900-0527
Conference Call ID:                                        48142

The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call. The conference call will be recorded and available until November 15, 2024 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:             1-289-819-1450
Dial from outside Canada or the US:             1-888-660-6345
Pass code:                                                      48142
Archived webcast:                                          Click here

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

Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).

Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx.

Condensed Interim Consolidated Statements of Earnings

Condensed Interim Consolidated Balance Sheets

Condensed Interim Consolidated Statements of Cash Flows

Summary of Units Produced

Summary of Units Sold

Results of Operations 

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