Wheaton Precious Metals Announces Solid Third Quarter Results for 2023

“The importance of having a diversified portfolio of high-quality, low-cost assets was evidenced by Wheaton’s ability to deliver solid operating results in the quarter, despite the temporary suspension of one of our largest assets, which has since begun the safe ramp-up of operations. Strong outperformances from Salobo and Constancia, have not only offset challenges faced by others, but also contributed significantly to our overall success. As such, we are pleased to reiterate our annual production guidance range for 2023 of 600,000 to 660,000 gold equivalent ounces,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “In this high interest rate environment, streaming continues to be one of the most competitive sources of capital, and our corporate development team remains exceptionally busy evaluating new opportunities. We remain resolutely committed to enhancing our portfolio with growth that is accretive and sustainable, benefiting all stakeholders.”

Solid Financial Results and Strong Balance Sheet

• Third quarter of 2023: $223 million in revenue, $171 million in operating cash flow, $116 million in net earnings and $121 million in adjusted net earnings[1].
• A cash balance of $834 million and no debt as at September 30, 2023, after making total upfront cash payments of $90 million relative to mineral stream interests in the quarter.
• Undrawn $2 billion revolving credit facility maturing on June 22, 2028.
• Declared a quarterly dividend1 of $0.15 per common share.

High Quality Asset Base

• Streaming agreements on 18 operating mines and 14 development projects.
• 93% of attributable production from assets in the lowest half of their respective cost curves[2],[3].
• 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration2,[4].
• Third quarter production increased quarter over quarter to 154,800 gold equivalent ounces3 (“GEOs”), driven by strong outperformances at both Salobo and Constancia, and despite the temporary suspension at Peñasquito, highlighting the strength of our diversified portfolio.
• Average annual production guidance for 2023 of 600,000 to 660,000 GEOs2,3 is maintained, with sector-leading growth over the next five to ten years.
• Accretive portfolio growth:
  • Subsequent to the quarter, entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of $115 million.
  • Acquired a 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide Gold Project for total cash consideration of $3.6 million, along with an equity investment totalling $5 million in Liberty Gold at C$0.34 per share.

In the interview below CEO Randy Smallwood provides an overview of the business and his view on the precious metals market