Operational Overview |
4 | |||
Highlights |
5 | |||
Outlook |
6 | |||
Mineral Stream Interests |
7 | |||
Mineral Royalty Interests |
10 | |||
Long-Term Equity Investments |
10 | |||
Convertible Notes Receivable |
12 | |||
Quarterly Financial Review 1 |
15 | |||
Results of Operations and Operational Review |
16 | |||
Liquidity and Capital Resources |
26 | |||
Share Capital |
34 | |||
Financial Instruments |
34 | |||
Future Changes to Accounting Policies |
34 | |||
Non-IFRS Measures |
36 | |||
Subsequent Events |
40 | |||
Controls and Procedures |
40 | |||
Attributable Reserves and Resources |
41 | |||
Cautionary Note Regarding Forward-Looking Statements |
48 |
Q2 2022 | Q2 2021 | Change | YTD 2022 | YTD 2021 | Change | |||||||||||||||||||
Units produced |
||||||||||||||||||||||||
Gold ounces |
68,365 | 90,072 | (24.1)% | 146,419 | 168,601 | (13.2)% | ||||||||||||||||||
Silver ounces |
6,537 | 6,529 | 0.1 % | 12,770 | 13,294 | (3.9)% | ||||||||||||||||||
Palladium ounces |
3,899 | 5,301 | (26.4)% | 8,387 | 11,070 | (24.2)% | ||||||||||||||||||
Cobalt pounds |
136 | 380 | (64.1)% | 371 | 1,542 | (76.0)% | ||||||||||||||||||
Gold equivalent ounces 2 |
162,569 | 190,272 | (14.6)% | 333,265 | 387,028 | (13.9)% | ||||||||||||||||||
Silver equivalent ounces 2 |
12,193 | 14,270 | (14.6)% | 24,995 | 29,027 | (13.9)% | ||||||||||||||||||
Units sold |
||||||||||||||||||||||||
Gold ounces |
84,337 | 90,090 | (6.4)% | 162,238 | 165,194 | (1.8)% | ||||||||||||||||||
Silver ounces |
5,848 | 5,600 | 4.4 % | 11,401 | 12,257 | (7.0)% | ||||||||||||||||||
Palladium ounces |
3,378 | 3,869 | (12.7)% | 7,453 | 9,000 | (17.2)% | ||||||||||||||||||
Cobalt pounds |
225 | 395 | (43.0)% | 736 | 527 | 39.7 % | ||||||||||||||||||
Gold equivalent ounces 2 |
170,371 | 176,502 | (3.5)% | 336,436 | 348,773 | (3.5)% | ||||||||||||||||||
Silver equivalent ounces 2 |
12,778 | 13,238 | (3.5)% | 25,233 | 26,158 | (3.5)% | ||||||||||||||||||
Change in PBND and Inventory 3 |
||||||||||||||||||||||||
Gold ounces |
(20,168) | (3,834) | 16,334 | (23,791) | (4,317) | 19,474 | ||||||||||||||||||
Silver ounces |
(236) | 65 | 301 | (517) | (683) | (166) | ||||||||||||||||||
Palladium ounces |
732 | 1,449 | 717 | 637 | 1,225 | 588 | ||||||||||||||||||
Cobalt pounds |
(98) | (40) | 58 | (390) | 912 | 1,302 | ||||||||||||||||||
Gold equivalent ounces 2 |
(24,259) | (2,020) | 22,239 | (37,094) | 4,716 | 41,810 | ||||||||||||||||||
Silver equivalent ounces 2 |
(1,819) | (152) | 1,667 | (2,782) | 354 | 3,136 | ||||||||||||||||||
Per unit metrics |
||||||||||||||||||||||||
Sales price |
||||||||||||||||||||||||
Gold per ounce |
$ | 1,872 | $ | 1,801 | 3.9 % | $ | 1,871 | $ | 1,800 | 3.9 % | ||||||||||||||
Silver per ounce |
$ | 22.27 | $ | 26.69 | (16.6)% | $ | 23.21 | $ | 26.38 | (12.0)% | ||||||||||||||
Palladium per ounce |
$ | 2,132 | $ | 2,797 | (23.8)% | $ | 2,246 | $ | 2,566 | (12.5)% | ||||||||||||||
Cobalt per pound |
$ | 34.01 | $ | 19.82 | 71.6 % | $ | 34.43 | $ | 20.42 | 68.6 % | ||||||||||||||
Gold equivalent per ounce 2 |
$ | 1,778 | $ | 1,872 | (5.0)% | $ | 1,814 | $ | 1,877 | (3.4)% | ||||||||||||||
Silver equivalent per ounce 2 |
$ | 23.71 | $ | 24.96 | (5.0)% | $ | 24.18 | $ | 25.02 | (3.4)% | ||||||||||||||
Cash costs 4 |
||||||||||||||||||||||||
Gold per ounce 4 |
$ | 465 | $ | 450 | (3.3)% | $ | 470 | $ | 450 | (4.4)% | ||||||||||||||
Silver per ounce 4 |
$ | 5.61 | $ | 6.11 | 8.2 % | $ | 5.36 | $ | 6.23 | 14.0 % | ||||||||||||||
Palladium per ounce 4 |
$ | 408 | $ | 503 | 18.9 % | $ | 400 | $ | 460 | 13.0 % | ||||||||||||||
Cobalt per pound 4 |
$ | 6.86 | $ | 4.41 | (55.6)% | $ | 6.09 | $ | 4.55 | (33.8)% | ||||||||||||||
Gold equivalent per ounce 2 |
$ | 440 | $ | 444 | 0.9 % | $ | 431 | $ | 451 | 4.4 % | ||||||||||||||
Silver equivalent per ounce 2 |
$ | 5.87 | $ | 5.93 | 1.0 % | $ | 5.74 | $ | 6.01 | 4.5 % | ||||||||||||||
Cash operating margin 4 |
||||||||||||||||||||||||
Gold per ounce 4 |
$ | 1,407 | $ | 1,351 | 4.1 % | $ | 1,401 | $ | 1,350 | 3.8 % | ||||||||||||||
Silver per ounce 4 |
$ | 16.66 | $ | 20.58 | (19.0)% | $ | 17.85 | $ | 20.15 | (11.4)% | ||||||||||||||
Palladium per ounce 4 |
$ | 1,724 | $ | 2,294 | (24.8)% | $ | 1,846 | $ | 2,106 | (12.4)% | ||||||||||||||
Cobalt per pound 4 |
$ | 27.15 | $ | 15.41 | 76.2 % | $ | 28.34 | $ | 15.87 | 78.6 % | ||||||||||||||
Gold equivalent per ounce 2 |
$ | 1,338 | $ | 1,428 | (6.3)% | $ | 1,383 | $ | 1,426 | (3.0)% | ||||||||||||||
Silver equivalent per ounce 2 |
$ | 17.84 | $ | 19.03 | (6.3)% | $ | 18.44 | $ | 19.01 | (3.0)% | ||||||||||||||
Total revenue |
$ | 302,922 | $ | 330,393 | (8.3)% | $ | 610,166 | $ | 654,512 | (6.8)% | ||||||||||||||
Gold revenue |
$ | 157,842 | $ | 162,293 | (2.7)% | $ | 303,517 | $ | 297,319 | 2.1 % | ||||||||||||||
Silver revenue |
$ | 130,228 | $ | 149,455 | (12.9)% | $ | 264,560 | $ | 323,337 | (18.2)% | ||||||||||||||
Palladium revenue |
$ | 7,203 | $ | 10,822 | (33.4)% | $ | 16,736 | $ | 23,097 | (27.5)% | ||||||||||||||
Cobalt revenue |
$ | 7,649 | $ | 7,823 | (2.2)% | $ | 25,353 | $ | 10,759 | 135.6 % | ||||||||||||||
Net earnings |
$ | 149,074 | $ | 166,124 | (10.3)% | $ | 306,542 | $ | 328,126 | (6.6)% | ||||||||||||||
Per share |
$ | 0.330 | $ | 0.369 | (10.6)% | $ | 0.679 | $ | 0.729 | (6.9)% | ||||||||||||||
Adjusted net earnings 4 |
$ | 149,285 | $ | 161,626 | (7.6)% | $ | 307,292 | $ | 322,760 | (4.8)% | ||||||||||||||
Per share 4 |
$ | 0.331 | $ | 0.359 | (7.8)% | $ | 0.681 | $ | 0.718 | (5.2)% | ||||||||||||||
Operating cash flows |
$ | 206,359 | $ | 216,415 | (4.6)% | $ | 416,899 | $ | 448,569 | (7.1)% | ||||||||||||||
Per share 4 |
$ | 0.457 | $ | 0.481 | (5.0)% | $ | 0.924 | $ | 0.997 | (7.3)% | ||||||||||||||
Dividends paid 5 |
$ | 67,708 | $ | 63,009 | 7.5 % | $ | 135,396 | $ | 121,487 | 11.4 % | ||||||||||||||
Per share |
$ | 0.15 | $ | 0.14 | 7.1 % | $ | 0.30 | $ | 0.27 | 11.1 % |
1) | All amounts in thousands except gold and palladium ounces produced and sold, per ounce amounts and per share amounts. |
2) | Please refer to the tables on the bottom of pages 16, 17, 20 and 21 for further information on the methodology of converting production and sales volumes to gold-equivalent ounces (“GEOs”) and silver-equivalent ounces (“SEOs”). |
3) | Represents the increase (decrease) in payable ounces produced but not delivered (“PBND”) relative to the various mines that the Company derives precious metal from and, for cobalt, the increase (decrease) of payable pounds PBND and inventory on hand. Payable units PBND will be recognized in future sales as they are delivered to the Company under the terms of their contracts. Payable ounces PBND to Wheaton is expected to average approximately two to three months of annualized production for both gold and palladium and two months for silver but may vary from quarter to quarter due to a number of factors, including mine ramp-up and the timing of shipments.1 |
4) | Refer to discussion on non-IFRS measures beginning on page 36 of this MD&A. |
5) | Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. |
1 |
Statements made in this section contain forward-looking information with respect to forecast ounces produced but not yet delivered and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
● |
During the three and six months ended June 30, 2022, Wheaton generated revenue of $303 million (52% gold, 43% silver, 2% palladium and 3% cobalt) and $610 million (50% gold, 43% silver, 3% palladium and 4% cobalt), respectively. |
● |
During the three and six months ended June 30, 2022, Wheaton’s gold equivalent ounces produced amounted to 162,600 ounces and 333,300 ounces, respectively, a decrease of 15% and 14% relative to the comparable periods of the prior year. |
● |
During the three and six months ended June 30, 2022, Wheaton’s gold equivalent ounces sold amounted to 170,400 ounces and 336,400 ounces, respectively, a decrease of 3% and 4% relative to the comparable periods of the prior year. |
● |
During the three and six months ended June 30, 2022, Wheaton generated operating cash flow of $206 million and $417 million, respectively, a decrease of 5% and 7% relative to the comparable periods of the previous year. |
● |
Relative to the comparable three-month period of the prior year: |
o | The decrease in attributable gold production was primarily due to lower production at Salobo. |
o | The decrease in attributable cobalt production was primarily due to lower throughput resulting from a scheduled maintenance shut down at Voisey’s Bay coupled with lower grades during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey’s Bay underground project. |
o | The decrease in adjusted net earnings was primarily due to lower margins resulting from a 3% decrease in sales volumes and a 5% decrease in the realized sales price, partially offset by lower share based compensation costs. |
● |
Relative to the comparable six-month period of the prior year: |
o | The decrease in attributable gold production was primarily due to lower throughput and grades at Salobo. |
o | The decrease in attributable silver production was primarily due to lower grades at Antamina, consistent with their mine plan. |
o | The decrease in attributable cobalt production was primarily due to the comparable period in the prior year including 676,000 pounds of production from prior periods coupled with a scheduled maintenance shutdown during the second quarter of 2022 and the mining of lower grade material. |
o | The decrease in adjusted net earnings was primarily the result of lower margins resulting from a 4% decrease in sales volumes and a 3% decrease in realized sales price. |
● |
On August 11, 2022, the Board of Directors declared a dividend in the amount of $0.15 per common share. |
● |
On July 5, 2022, Hecla Mining Company (“Hecla”) announced a definitive agreement for Hecla to acquire all of the outstanding common shares of Alexco Resource Corp. (“Alexco”). In conjunction with this agreement, the Company has entered into an agreement with Hecla to terminate the Keno Hill PMPA in exchange for $135 million of Hecla common stock conditional upon the completion of Hecla’s acquisition of Alexco. |
2022 Forecast |
Original Guidance | Updated Guidance | ||
Gold Ounces |
350,000 to 380,000 | 300,000 to 320,000 | ||
Silver Ounces (‘000s) |
23,000 to 24,500 | 22,500 to 24,000 | ||
Other Metals 2 (GEOs) |
44,000 to 48,000 | 35,000 to 40,000 | ||
Total GEOs 2 |
700,000 to 760,000 | 640,000 to 680,000 | ||
Long-Term Forecast | ||||
5-Year Annual Average (GEOs)2 |
850,000 | 820,000 | ||
10-Year Annual Average (GEOs)2 |
910,000 | 870,000 |
1 |
Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
2 |
Gold equivalent forecast production for 2022 and the longer term outlook are based on the following commodity price assumptions: $1,800 / ounce gold, $24 / ounce silver, $2,100 / ounce palladium, $1,000 / ounce platinum and $33.00 / pound of cobalt. Other metal includes palladium, platinum and cobalt. Five- and ten-year guidance do not include optionality production from Pascua Lama, Navidad, Cotabambas, Metates or additional expansions at Salobo outside of the project currently in construction. In addition, five-year guidance also does not include any production from Kutcho, or the Victor project at Sudbury. |
Mineral Stream Interests |
Mine Owner ¹ |
Location¹ |
Attributable Production |
Per Unit Production Payment 2 , 3 |
Total Upfront Consideration Paid to Date ³ |
Cash Flow Generated to Date ³ |
Units Received & Sold to Date ³ |
Q2-2022 Inventory & PBND 3 , 4 |
Term ¹ |
Date of Original Contract |
||||||||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||||||||||
Salobo |
Vale | BRA | 75% | $416 | $ | 3,059,360 | $1,754,395 | 1,693,332 | 33,625 | LOM | 28-Feb-13 |
|||||||||||||||||||||||||||||
Sudbury 5 |
Vale | CAN | 70% | $400 | 623,572 | 245,794 | 249,345 | 13,380 | 20 years | 28-Feb-13 |
||||||||||||||||||||||||||||||
Constancia |
Hudbay | PER | 50% | 6 |
$412 | 135,000 | 129,427 | 116,932 | 1,845 | LOM | 8-Aug-12 |
|||||||||||||||||||||||||||||
San Dimas |
FM | MEX | variable | 7 |
$624 | 220,000 | 176,857 | 173,951 | 2,264 | LOM | 10-May-18 |
|||||||||||||||||||||||||||||
Stillwater 8 |
Sibanye | USA | 100% | 18% of spot | 237,880 | 62,983 | 47,259 | 5,018 | LOM | 16-Jul-18 |
||||||||||||||||||||||||||||||
Other |
796,938 | 534,884 | 535,454 | 5,066 | ||||||||||||||||||||||||||||||||||||
Minto |
MNTO | CAN | 100% | 9 |
65%² of spot | LOM | 20-Nov-08 |
|||||||||||||||||||||||||||||||||
Copper World 10 |
Hudbay | USA | 100% | $450 | LOM | 10-Feb-10 |
||||||||||||||||||||||||||||||||||
777 11 |
Hudbay | CAN | 50% | $429 | LOM | 8-Aug-12 |
||||||||||||||||||||||||||||||||||
Marmato 12 |
Aris | CO | 10.5% | 12 |
18% of spot | LOM | 5-Nov-20 |
|||||||||||||||||||||||||||||||||
Santo Domingo |
Capstone | CHL | 100% | 13 |
18% of spot | LOM | 24-Mar-21 |
|||||||||||||||||||||||||||||||||
Fenix |
Rio2 | CHL | 6% | 14 |
18% of spot | LOM | 15-Nov-21 |
|||||||||||||||||||||||||||||||||
Blackwater |
Artemis | CAN | 8% | 15 |
35% of spot | LOM | 13-Dec-21 |
|||||||||||||||||||||||||||||||||
Curipamba |
Adventus | ECU | 50% | 16 |
18% of spot | LOM | 17-Jan-22 |
|||||||||||||||||||||||||||||||||
Marathon |
Gen Mining | CAN | 100% | 17 |
18% of spot | LOM | 26-Jan-22 |
|||||||||||||||||||||||||||||||||
Goose |
Sabina | CAN | 4.15% | 18 |
18% of spot | LOM | 08-Feb-22 |
|||||||||||||||||||||||||||||||||
$ | 5,072,750 | $ 2,904,340 | 2,816,273 | 61,198 | ||||||||||||||||||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||||||||||
Peñasquito |
Newmont | MEX | 25% | $4.36 | $ | 485,000 | $ 1,247,613 | 72,131 | 590 | LOM | 24-Jul-07 |
|||||||||||||||||||||||||||||
Antamina |
Glencore | PER | 33.75% | 19 |
20% of spot | 900,000 | 579,308 | 38,293 | 1,583 | LOM | 3-Nov-15 |
|||||||||||||||||||||||||||||
Constancia |
Hudbay | PER | 100% | $6.08 | 294,900 | 175,546 | 14,168 | 164 | LOM | 8-Aug-12 |
||||||||||||||||||||||||||||||
Other |
1,035,735 | 1,467,962 | 101,954 | 1,347 | ||||||||||||||||||||||||||||||||||||
Los Filos |
Equinox | MEX | 100% | $4.53 | 25 years | 15-Oct-04 |
||||||||||||||||||||||||||||||||||
Zinkgruvan |
Lundin | SWE | 100% | $4.53 | LOM | 8-Dec-04 |
||||||||||||||||||||||||||||||||||
Yauliyacu |
Glencore | PER | 100% | 20 |
$9.05 | LOM | 23-Mar-06 |
|||||||||||||||||||||||||||||||||
Stratoni |
Eldorado | GRC | 100% | $11.54 | LOM | 23-Apr-07 |
||||||||||||||||||||||||||||||||||
Neves-Corvo |
Lundin | PRT | 100% | $4.42 | 50 years | 5-Jun-07 |
||||||||||||||||||||||||||||||||||
Aljustrel |
Almina | PRT | 100% | 21 |
50% of spot | 50 years | 5-Jun-07 |
|||||||||||||||||||||||||||||||||
Keno Hill |
Alexco | CAN | 25% | variable ² | LOM | 2-Oct-08 |
||||||||||||||||||||||||||||||||||
Minto |
MNTO | CAN | 100% | $4.35 | LOM | 20-Nov-08 |
||||||||||||||||||||||||||||||||||
Pascua-Lama |
Barrick | CHL/ARG | 25% | $3.90 | LOM | 8-Sep-09 |
||||||||||||||||||||||||||||||||||
Copper World 10 |
Hudbay | USA | 100% | $3.90 | LOM | 10-Feb-10 |
||||||||||||||||||||||||||||||||||
777 11 |
Hudbay | CAN | 100% | $6.32 | LOM | 8-Aug-12 |
||||||||||||||||||||||||||||||||||
Navidad |
PAAS | ARG | 12.5% | $4.00 | LOM | n/a 22 |
||||||||||||||||||||||||||||||||||
Marmato 12 |
Aris | CO | 100% | 12 |
18% of spot | LOM | 5-Nov-20 |
|||||||||||||||||||||||||||||||||
Cozamin |
Capstone | MEX | 50% | 23 |
10% of spot | LOM | 11-Dec-20 |
|||||||||||||||||||||||||||||||||
Blackwater |
Artemis | CAN | 50% | 15 |
18% of spot | LOM | 13-Dec-21 |
|||||||||||||||||||||||||||||||||
Curipamba |
Adventus | ECU | 75% | 16 |
18% of spot | LOM | 17-Jan-22 |
|||||||||||||||||||||||||||||||||
$ | 2,715,635 | $ | 3,470,429 | 226,546 | 3,684 | |||||||||||||||||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||||||
Stillwater 8 |
Sibanye | USA | 4.5% 24 |
18% of spot | $ | 262,120 | $ | 120,987 | 76,246 | 6,267 | LOM | 16-Jul-18 |
||||||||||||||||||||||||||||
Platinum |
||||||||||||||||||||||||||||||||||||||||
Marathon |
Gen Mining | CAN | 22% 17 |
18% of spot | $ | 9,408 | $ | - | - | - | LOM | 26-Jan-22 |
||||||||||||||||||||||||||||
Cobalt |
||||||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
Vale | CAN | 42.4% 25 |
18% of spot | $ | 390,000 | $ | 20,747 | 1,623 | 862 | LOM | 11-Jun-18 |
||||||||||||||||||||||||||||
Total |
$ | 8,449,913 | $ | 6,516,503 |
1) | Abbreviations as follows: FM = First Majestic Silver Corp; MNTO = Minto Metals Corp.; PAAS = Pan American Silver Corp; ARG = Argentina; BRA = Brazil; CAN = Canada; CHL = Chile; CO = Colombia; ECU = Ecuador; GRC = Greece; MEX = Mexico; PER = Peru; PRT = Portugal; SWE = Sweden; USA = United States; and LOM = Life of Mine. |
2) | Please refer to the section entitled “Contractual Obligations and Contingencies – Mineral Stream Interests” on page 29 of this MD&A for more information. |
3) | All figures in thousands except gold and palladium ounces and per ounce amounts. The total upfront consideration paid to date excludes closing costs and capitalized interest, where applicable. Please refer to the section entitled “Other Contractual Obligations and Contingencies” on page 31 of this MD&A for details of when the remaining upfront consideration to be paid becomes due. |
4) | Payable gold, silver, palladium and cobalt PBND are based on management estimates. These figures may be updated in the future as additional information is received. |
1 |
Statements made in this section contain forward-looking information including the timing and amount of estimated future production and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
5) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. As of June 30, 2022, the Company has received approximately $246 million of operating cash flows from the Sudbury stream. Should the market value of gold delivered to Wheaton through the 20-year term of the contract, net of the per ounce cash payment, be lower than the initial $670 million refundable deposit, the Company will be entitled to a refund of the difference at the conclusion of the term. As a result of a labour disruption that lasted from June 1, 2021 to August 9, 2021, the term of the agreement was extended by 69 days. |
6) | On May 10, 2021, Wheaton and Hudbay agreed to amend the Constancia streaming agreement so that Hudbay would no longer be required to deliver an additional 8,020 ounces of gold to Wheaton for not mining four million tonnes of ore from Pampacancha by June 30, 2021. As part of this amendment, Hudbay has agreed to increase the fixed gold recoveries that apply to Constancia ore production from 55% to 70% during the reserve life of Pampacancha. Additionally, as Hudbay mined and processed four million tonnes of ore from the Pampacancha deposit by December 31, 2021, the Company was required to make an additional deposit payment of $4 million to Hudbay, which was paid on December 23, 2021. |
7) | The original San Dimas SPA, entered into on October 15, 2004, was terminated on May 10, 2018 and concurrently the Company entered into the new San Dimas PMPA. Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the “70” shall be revised to “50” or “90”, as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the “70” shall be reinstated. The current ratio is 70:1. |
8) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
9) | The Company is entitled to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter. |
10) | Copper World Complex (formerly referred to as Rosemont in this MD&A). |
11) | As of June 30, 2022, the Company has received approximately $369 million of operating cash flows from the 777 stream. Should the market value of gold and silver delivered to Wheaton through the initial 40 year term of the contract, net of the per ounce cash payment, be lower than the initial $455 million upfront consideration, the Company will be entitled to a refund of the difference at the conclusion of the 40 year term. On June 22, 2022, Hudbay announced that mining activities at the 777 mine have concluded after the reserves were depleted and closure activities have commenced. |
12) | Once the Company has received 310,000 ounces of gold and 2.15 million ounces of silver under the Marmato PMPA, the attributable gold and silver production will be reduced to 5.25% and 50%, respectively. |
13) | Once the Company has received 285,000 ounces of gold under the Santo Domingo PMPA, the Company’s attributable gold production will be reduced to 67%. |
14) | Once the Company has received 90,000 ounces of gold under the Fenix PMPA, the attributable gold production will reduce to 4% until 140,000 ounces have been delivered, after which the stream drops to 3.5%. |
15) | Once the Company has received 279,908 ounces of gold and 17.8 million ounces of silver under the Blackwater PMPA, the attributable gold and silver production will be reduced to 4% and 33%. |
16) | Once the Company has received 145,000 ounces of gold and 4.6 million ounces of silver under the Curipamba PMPA, the attributable gold and silver production will be reduced to 33% and 50%. |
17) | Once the Company has received 150,000 ounces of gold and 120,000 ounces of platinum under the Marathon PMPA, the attributable gold and platinum production will be reduced to 67% and 15%. |
18) | Once the Company has received 130,000 ounces of gold under the Goose PMPA, the Company’s attributable gold production will be 2.15%, and once the Company has received 200,000 ounces of gold under the agreement, the Company’s attributable gold production will be reduced to 1.5%. |
19) | Once Wheaton has received 140 million ounces of silver under the Antamina PMPA, the Company’s attributable silver production will be reduced to 22.5%. |
20) | Per annum the Company will purchase an amount equal to 100% of the first 1.5 million ounces of silver for which an offtaker payment is due, and 50% of any excess. |
21) | Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine. |
22) | Wheaton and PAAS have not yet finalized the definitive terms of the agreement. |
23) | Once Wheaton has received 10 million ounces of silver under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33%. |
24) | Once the Company has received 375,000 ounces of palladium under the Stillwater agreement, the Company’s attributable palladium production will be reduced to 2.25%, and once the Company has received 550,000 ounces of palladium under the agreement, the Company’s attributable palladium production will be reduced to 1%. |
25) | Once the Company has received 31 million pounds of cobalt under the Voisey’s Bay agreement, the Company’s attributable cobalt production will be reduced to 21.2%. |
Attributable Production to be Purchased |
||||||||||||||||||||||||||||||||||||
Early Deposit Mineral Stream Interests |
Mine Owner |
Location of Mine |
Upfront Consideration Paid to Date 1 |
Upfront Consideration to be Paid 1, 2 |
Total Upfront Consideration¹ |
Gold |
Silver |
Term of Agreement |
Date of Original Contract |
|||||||||||||||||||||||||||
Toroparu |
GCM | Guyana | $ | 15,500 | $ | 138,000 | $ | 153,500 | 10 | % | 50 | % | Life of Mine | 11-Nov-13 |
||||||||||||||||||||||
Cotabambas |
Panoro | Peru | 12,250 | 127,750 | 140,000 | 25 | % ³ | 100 | % ³ | Life of Mine | 21-Mar-16 |
|||||||||||||||||||||||||
Kutcho |
Kutcho | Canada | 16,852 | 58,000 | 74,852 | 100 | % | 100 | % | Life of Mine | 14-Dec-17 |
|||||||||||||||||||||||||
$ | 44,602 | $ | 323,750 | $ | 368,352 |
1) | Expressed in thousands; excludes closing costs and capitalized interest, where applicable. |
2) | Please refer to the section entitled “Other Contractual Obligations and Contingencies” on page 31 of this MD&A for details of when the remaining upfront consideration to be paid becomes due. |
3) | Once 90 million silver equivalent ounces attributable to Wheaton have been produced, the attributable production will decrease to 16.67% of gold production and 66.67% of silver production for the life of mine. |
(in thousands) |
June 30 2022 |
December 31 2021 |
||||||
Common shares held |
$ | 60,103 | $ | 59,941 | ||||
Warrants held |
696 | 1,536 | ||||||
Total long-term equity investments |
$ | 60,799 | $ | 61,477 |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Mar 31, 2022 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2022 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
13,264 | 8.70% | $ | 11,358 | $ | - | $ | - | $ | (3,123 | ) | $ | 8,235 | $ | - | |||||||||||||||||
Sabina |
31,095 | 5.67% | 34,476 | 2,633 | - | (11,530 | ) | 25,579 | - | |||||||||||||||||||||||
Kutcho |
18,640 | 14.97% | 8,502 | - | - | (4,162 | ) | 4,340 | - | |||||||||||||||||||||||
Other |
37,008 | - | - | (15,059 | ) | 21,949 | - | |||||||||||||||||||||||||
Total |
$ | 91,344 | $ | 2,633 | $ | - | $ | (33,874 | ) | $ | 60,103 | $ | - |
1) | Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”). |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Mar 31, 2021 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2021 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
13,264 | 10.70% | $ | 22,889 | $ | - | $ | - | $ | (5,551 | ) | $ | 17,338 | $ | - | |||||||||||||||||
Sabina |
11,700 | 3.36% | 16,841 | - | - | (321 | ) | 16,520 | - | |||||||||||||||||||||||
Other |
44,106 | 2,377 | - | 3,546 | 50,029 | - | ||||||||||||||||||||||||||
Total |
$ | 83,836 | $ | 2,377 | $ | - | $ | (2,326 | ) | $ | 83,887 | $ | - |
1) | Fair Value Gains (Losses) are reflected as a component of OCI. |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Dec 31, 2021 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2022 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
13,264 | 8.70% | $ | 12,764 | $ | - | $ | - | $ | (4,529) | $ | 8,235 | $ | - | ||||||||||||||||||
Sabina |
31,095 | 5.67% | 13,381 | 19,833 | - | (7,635) | 25,579 | - | ||||||||||||||||||||||||
Kutcho |
18,640 | 14.97% | - | 11,721 | - | (7,381) | 4,340 | - | ||||||||||||||||||||||||
Other |
33,796 | 2,392 | - | (14,239) | 21,949 | - | ||||||||||||||||||||||||||
Total |
$ | 59,941 | $ | 33,946 | $ | - | $ | (33,784) | $ | 60,103 | $ | - |
1) | Fair Value Gains (Losses) are reflected as a component of OCI. |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Dec 31, 2020 |
Cost of Additions |
Proceeds of Disposition 1 |
Fair Value Adjustment Gains (Losses) 2 |
Fair Value at Jun 30, 2021 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
13,264 | 10.70% | $ | 32,609 | $ | - | $ | - | $ | (15,271) | $ | 17,338 | $ | - | ||||||||||||||||||
Sabina |
11,700 | 3.36% | 30,233 | - | - | (13,713) | 16,520 | - | ||||||||||||||||||||||||
First Majestic |
- | 0.00% | 95,984 | - | (112,188) | 16,204 | - | 60,530 | ||||||||||||||||||||||||
Other |
37,415 | 2,377 | - | 10,237 | 50,029 | - | ||||||||||||||||||||||||||
Total |
$ | 196,241 | $ | 2,377 | $ | (112,188) | $ | (2,543) | $ | 83,887 | $ | 60,530 |
1) | Disposals during 2021 were made in order to capitalize on the share appreciation resulting from the strong commodity price environment. |
2) | Fair Value Gains (Losses) are reflected as a component of OCI. |
Six Months Ended June 30, 2022 | ||||||||||||||||||||
(in thousands) |
Fair Value at Dec 31, 2021 |
Amount Advanced |
Termination | Fair Value Adjustment Gains (Losses) |
Fair Value at Jun 30, 2022 |
|||||||||||||||
Kutcho |
$ | 17,086 | $ | - | $ | (15,706) | $ | (1,380) | $ | - |
Six Months Ended June 30, 2021 | ||||||||||||||||||||
(in thousands) |
Fair Value at Dec 31, 2020 |
Amount Advanced |
Termination | Fair Value Adjustment Gains (Losses) |
Fair Value at Jun 30, 2021 |
|||||||||||||||
Kutcho |
$ | 11,353 | $ |
- |
|
$ | - | $ | 4,626 | $ | 15,979 |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||||||||||||
Gold ounces produced ² |
||||||||||||||||||||||||||||||||
Salobo |
34,129 | 44,883 | 48,235 | 55,205 | 55,590 | 46,622 | 62,854 | 63,408 | ||||||||||||||||||||||||
Sudbury 3 |
7,212 | 5,362 | 4,379 | 148 | 4,563 | 7,004 | 6,659 | 3,798 | ||||||||||||||||||||||||
Constancia |
8,042 | 6,311 | 9,857 | 8,533 | 5,525 | 2,453 | 3,929 | 3,780 | ||||||||||||||||||||||||
San Dimas 4 |
10,044 | 10,461 | 13,714 | 11,936 | 11,478 | 10,491 | 11,652 | 9,228 | ||||||||||||||||||||||||
Stillwater 5 |
2,171 | 2,497 | 2,664 | 2,949 | 2,962 | 3,041 | 3,290 | 3,176 | ||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Minto |
2,480 | 4,060 | 3,506 | 1,703 | 3,206 | 2,638 | 789 | 1,832 | ||||||||||||||||||||||||
777 6 |
3,509 | 4,003 | 4,462 | 4,717 | 5,035 | 6,280 | 2,866 | 5,278 | ||||||||||||||||||||||||
Marmato |
778 | 477 | 479 | 433 | 1,713 | - | - | - | ||||||||||||||||||||||||
Total Other |
6,767 | 8,540 | 8,447 | 6,853 | 9,954 | 8,918 | 3,655 | 7,110 | ||||||||||||||||||||||||
Total gold ounces produced |
68,365 | 78,054 | 87,296 | 85,624 | 90,072 | 78,529 | 92,039 | 90,500 | ||||||||||||||||||||||||
Silver ounces produced 2 |
||||||||||||||||||||||||||||||||
Peñasquito |
2,089 | 2,219 | 2,145 | 2,180 | 2,026 | 2,202 | 2,014 | 1,992 | ||||||||||||||||||||||||
Antamina |
1,379 | 1,268 | 1,366 | 1,548 | 1,558 | 1,577 | 1,930 | 1,516 | ||||||||||||||||||||||||
Constancia |
584 | 506 | 578 | 521 | 468 | 406 | 478 | 430 | ||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Los Filos 7 |
23 | 42 | 37 | 17 | 26 | 31 | 6 | 17 | ||||||||||||||||||||||||
Zinkgruvan |
739 | 577 | 482 | 658 | 457 | 420 | 515 | 498 | ||||||||||||||||||||||||
Yauliyacu |
756 | 637 | 382 | 372 | 629 | 737 | 454 | 679 | ||||||||||||||||||||||||
Stratoni 8 |
|
- |
|
- | 129 | 18 | 164 | 165 | 185 | 156 | ||||||||||||||||||||||
Minto |
25 | 45 | 44 | 25 | 33 | 21 | 16 | 15 | ||||||||||||||||||||||||
Neves-Corvo |
345 | 344 | 522 | 362 | 408 | 345 | 420 | 281 | ||||||||||||||||||||||||
Aljustrel |
292 | 287 | 325 | 314 | 400 | 474 | 440 | 348 | ||||||||||||||||||||||||
Cozamin |
169 | 186 | 213 | 199 | 183 | 230 | - | - | ||||||||||||||||||||||||
Marmato |
8 | 11 | 7 | 10 | 39 | - | - | - | ||||||||||||||||||||||||
Keno Hill 9 |
48 | 20 | 30 | 44 | 55 | 27 | - | - | ||||||||||||||||||||||||
777 6 |
80 | 91 | 96 | 81 | 83 | 130 | 51 | 96 | ||||||||||||||||||||||||
Total Other |
2,485 | 2,240 | 2,267 | 2,100 | 2,477 | 2,580 | 2,087 | 2,090 | ||||||||||||||||||||||||
Total silver ounces produced |
6,537 | 6,233 | 6,356 | 6,349 | 6,529 | 6,765 | 6,509 | 6,028 | ||||||||||||||||||||||||
Palladium ounces produced ² |
||||||||||||||||||||||||||||||||
Stillwater 5 |
3,899 | 4,488 | 4,733 | 5,105 | 5,301 | 5,769 | 5,672 | 5,444 | ||||||||||||||||||||||||
Cobalt pounds produced ² |
||||||||||||||||||||||||||||||||
Voisey’s Bay |
136 | 234 | 381 | 370 | 380 | 1,162 | 10 |
|
- |
|
- | |||||||||||||||||||||
GEOs produced 11 |
162,569 | 170,696 | 184,551 | 183,012 | 190,272 | 196,756 | 185,436 | 177,230 | ||||||||||||||||||||||||
SEOs produced 11 |
12,193 | 12,802 | 13,841 | 13,726 | 14,270 | 14,757 | 13,908 | 13,292 | ||||||||||||||||||||||||
Average payable rate 2 |
||||||||||||||||||||||||||||||||
Gold |
95.1% | 95.2% | 96.0% | 96.0% | 95.8% | 95.0% | 95.2% | 95.3% | ||||||||||||||||||||||||
Silver |
85.5% | 86.2% | 86.0% | 86.6% | 86.9% | 86.6% | 86.3% | 86.1% | ||||||||||||||||||||||||
Palladium |
94.6% | 92.7% | 92.2% | 94.5% | 95.0% | 91.6% | 93.6% | 94.0% | ||||||||||||||||||||||||
Cobalt |
93.3% | 93.3% | 93.3% | 93.3% | 93.3% | 93.3% | n.a. | n.a. | ||||||||||||||||||||||||
GEO 11 |
90.2% | 90.5% | 91.4% | 91.3% | 91.8% | 90.7% | 91.2% | 91.2% |
1) | All figures in thousands except gold and palladium ounces produced. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received. |
3) | Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. Operations at the Sudbury mines were suspended from June 1, 2021 to August 9, 2021 as a result of a labour disruption by unionized employees. |
4) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the “70” shall be revised to “50” or “90”, as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the “70” shall be reinstated. Effective April 1, 2020, the fixed gold to silver exchange ratio was revised to 90:1, with the 70:1 ratio being reinstated on October 15, 2020. For reference, attributable silver production from prior periods is as follows: Q2-2022 - 382,000 ounces; Q1-2022 - 408,000 ounces; Q4-2021 - 544,000 ounces; Q3-2021 - 472,000 ounces; Q2-2021 - 467,000 ounces; Q1-2021 - 429,000 ounces; Q4-2020 - 485,000 ounces; Q3-2020 - 420,000 ounces. |
5) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
6) | Operations at 777 were temporarily suspended from October 11, 2020 to November 25, 2020 as a result of an incident that occurred on October 9th during routine maintenance of the hoist rope and skip. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
7) | Operations at Los Filos were suspended from September 3, 2020 to December 23, 2020 as the result of an illegal road blockade by members of the nearby Carrizalillo community and had been temporarily suspended from June 22, 2021 to July 26, 2021 as the result of illegal blockades by a group of unionized employees and members of the Xochipala community. |
8) | The Stratoni mine was placed into care and maintenance during Q4-2021. |
9) | On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
10) | Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey’s Bay mine. As per the PMPA with Vale, Wheaton is entitled to any cobalt processed at the Long Harbour Processing Plant as of January 1, 2021, resulting in reported production in the first quarter of 2021 including some material produced at the Voisey’s Bay mine in the previous quarter. |
11) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||||||||||||
Gold ounces sold |
||||||||||||||||||||||||||||||||
Salobo |
48,515 | 42,513 | 47,171 | 35,185 | 57,296 | 51,423 | 53,197 | 59,584 | ||||||||||||||||||||||||
Sudbury 2 |
7,916 | 3,712 | 965 | 1,915 | 6,945 | 3,691 | 7,620 | 7,858 | ||||||||||||||||||||||||
Constancia |
7,431 | 10,494 | 6,196 | 8,159 | 2,321 | 1,676 | 3,853 | 4,112 | ||||||||||||||||||||||||
San Dimas |
10,633 | 10,070 | 15,182 | 11,346 | 11,214 | 10,273 | 11,529 | 9,687 | ||||||||||||||||||||||||
Stillwater 3 |
2,626 | 2,628 | 2,933 | 2,820 | 2,574 | 3,074 | 3,069 | 3,015 | ||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Minto |
2,806 | 3,695 | 2,462 | 1,907 | 2,359 | 2,390 | 1,540 | - | ||||||||||||||||||||||||
777 |
3,629 | 4,388 | 4,290 | 5,879 | 5,694 | 2,577 | 5,435 | 5,845 | ||||||||||||||||||||||||
Marmato |
781 | 401 | 423 | 438 | 1,687 | - | - | - | ||||||||||||||||||||||||
Total Other |
7,216 | 8,484 | 7,175 | 8,224 | 9,740 | 4,967 | 6,975 | 5,845 | ||||||||||||||||||||||||
Total gold ounces sold |
84,337 | 77,901 | 79,622 | 67,649 | 90,090 | 75,104 | 86,243 | 90,101 | ||||||||||||||||||||||||
Silver ounces sold |
||||||||||||||||||||||||||||||||
Peñasquito |
2,096 | 2,188 | 1,818 | 2,210 | 1,844 | 2,174 | 1,417 | 1,799 | ||||||||||||||||||||||||
Antamina |
1,177 | 1,468 | 1,297 | 1,502 | 1,499 | 1,930 | 1,669 | 1,090 | ||||||||||||||||||||||||
Constancia |
494 | 644 | 351 | 484 | 295 | 346 | 442 | 415 | ||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Los Filos |
41 | 42 | 17 | 12 | 42 | 27 | - | 19 | ||||||||||||||||||||||||
Zinkgruvan |
650 | 355 | 346 | 354 | 355 | 293 | 326 | 492 | ||||||||||||||||||||||||
Yauliyacu |
817 | 44 | 551 | 182 | 601 | 1,014 | 15 | 580 | ||||||||||||||||||||||||
Stratoni |
(2 | ) | 133 | 42 | 41 | 167 | 117 | 169 | 134 | |||||||||||||||||||||||
Minto |
21 | 31 | 27 | 24 | 29 | 26 | 20 | - | ||||||||||||||||||||||||
Neves-Corvo |
167 | 204 | 259 | 193 | 215 | 239 | 145 | 201 | ||||||||||||||||||||||||
Aljustrel |
123 | 145 | 133 | 155 | 208 | 257 | 280 | 148 | ||||||||||||||||||||||||
Cozamin |
148 | 177 | 174 | 170 | 168 | 173 | - | - | ||||||||||||||||||||||||
Marmato |
11 | 8 | 8 | 10 | 35 | - | - | - | ||||||||||||||||||||||||
Keno Hill |
30 | 27 | 24 | 51 | 33 | 12 | - | - | ||||||||||||||||||||||||
777 |
75 | 87 | 69 | 99 | 109 | 49 | 93 | 121 | ||||||||||||||||||||||||
Total Other |
2,081 | 1,253 | 1,650 | 1,291 | 1,962 | 2,207 | 1,048 | 1,695 | ||||||||||||||||||||||||
Total silver ounces sold |
5,848 | 5,553 | 5,116 | 5,487 | 5,600 | 6,657 | 4,576 | 4,999 | ||||||||||||||||||||||||
Palladium ounces sold |
||||||||||||||||||||||||||||||||
Stillwater 3 |
3,378 | 4,075 | 4,641 | 5,703 | 3,869 | 5,131 | 4,591 | 5,546 | ||||||||||||||||||||||||
Cobalt pounds sold |
||||||||||||||||||||||||||||||||
Voisey’s Bay |
225 | 511 | 228 | 131 | 395 | 132 | - | - | ||||||||||||||||||||||||
GEOs sold 4 |
170,371 | 166,065 | 157,439 | 149,862 | 176,502 | 172,271 | 152,613 | 163,218 | ||||||||||||||||||||||||
SEOs sold 4 |
12,778 | 12,455 | 11,808 | 11,240 | 13,238 | 12,920 | 11,446 | 12,241 | ||||||||||||||||||||||||
Cumulative payable units PBND 5 |
||||||||||||||||||||||||||||||||
Gold ounces |
61,198 | 81,365 | 84,989 | 80,819 | 66,238 | 70,072 | 70,555 | 75,750 | ||||||||||||||||||||||||
Silver ounces |
3,684 | 3,920 | 4,200 | 3,845 | 3,802 | 3,738 | 4,486 | 3,437 | ||||||||||||||||||||||||
Palladium ounces |
6,267 | 5,535 | 5,629 | 5,619 | 6,822 | 5,373 | 5,597 | 4,616 | ||||||||||||||||||||||||
Cobalt pounds |
280 | 550 | 596 | 637 | 777 | 820 | - | - | ||||||||||||||||||||||||
GEO 4 |
122,758 | 150,170 | 158,477 | 150,317 | 139,145 | 141,206 | 136,894 | 126,968 | ||||||||||||||||||||||||
SEO 4 |
9,207 | 11,263 | 11,886 | 11,274 | 10,436 | 10,590 | 10,267 | 9,523 | ||||||||||||||||||||||||
Inventory on hand |
||||||||||||||||||||||||||||||||
Cobalt pounds |
582 | 410 | 657 | 488 | 134 | 132 | - | - |
1) | All figures in thousands except gold and palladium ounces sold. |
2) | Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests. |
3) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
4) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
5) | Payable gold, silver and palladium ounces PBND and cobalt pounds PBND are based on management estimates. These figures may be updated in future periods as additional information is received. |
Q2 2022 | Q1 2022 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | |||||||||||||||||||||||||
Gold ounces sold |
84,337 | 77,901 | 79,622 | 67,649 | 90,090 | 75,104 | 86,243 | 90,101 | ||||||||||||||||||||||||
Realized price 2 |
$ | 1,872 | $ | 1,870 | $ | 1,798 | $ | 1,795 | $ | 1,801 | $ | 1,798 | $ | 1,882 | $ | 1,906 | ||||||||||||||||
Gold sales |
$ | 157,842 | $ | 145,675 | $ | 143,187 | $ | 121,416 | $ | 162,293 | $ | 135,025 | $ | 162,299 | $ | 171,734 | ||||||||||||||||
Silver ounces sold |
5,848 | 5,553 | 5,116 | 5,487 | 5,600 | 6,657 | 4,576 | 4,999 | ||||||||||||||||||||||||
Realized price 2 |
$ | 22.27 | $ | 24.19 | $ | 23.36 | $ | 23.80 | $ | 26.69 | $ | 26.12 | $ | 24.72 | $ | 24.69 | ||||||||||||||||
Silver sales |
$ | 130,228 | $ | 134,332 | $ | 119,504 | $ | 130,587 | $ | 149,455 | $ | 173,883 | $ | 113,131 | $ | 123,434 | ||||||||||||||||
Palladium ounces sold |
3,378 | 4,075 | 4,641 | 5,703 | 3,869 | 5,131 | 4,591 | 5,546 | ||||||||||||||||||||||||
Realized price 2 |
$ | 2,132 | $ | 2,339 | $ | 1,918 | $ | 2,426 | $ | 2,797 | $ | 2,392 | $ | 2,348 | $ | 2,182 | ||||||||||||||||
Palladium sales |
$ | 7,203 | $ | 9,533 | $ | 8,902 | $ | 13,834 | $ | 10,822 | $ | 12,275 | $ | 10,782 | $ | 12,100 | ||||||||||||||||
Cobalt pounds sold |
225 | 511 | 228 | 131 | 395 | 132 | n.a. | n.a. | ||||||||||||||||||||||||
Realized price 2 |
$ | 34.01 | $ | 34.61 | $ | 28.94 | $ | 23.78 | $ | 19.82 | $ | 22.19 | $ | n.a. | $ | n.a. | ||||||||||||||||
Cobalt sales |
$ | 7,649 | $ | 17,704 | $ | 6,604 | $ | 3,120 | $ | 7,823 | $ | 2,936 | $ | n.a. | $ | n.a. | ||||||||||||||||
Total sales |
$ | 302,922 | $ | 307,244 | $ | 278,197 | $ | 268,957 | $ | 330,393 | $ | 324,119 | $ | 286,212 | $ | 307,268 | ||||||||||||||||
Cash cost 2, 3 |
||||||||||||||||||||||||||||||||
Gold / oz |
$ | 465 | $ | 477 | $ | 472 | $ | 464 | $ | 450 | $ | 450 | $ | 433 | $ | 428 | ||||||||||||||||
Silver / oz |
$ | 5.61 | $ | 5.10 | $ | 5.47 | $ | 5.06 | $ | 6.11 | $ | 6.33 | $ | 5.51 | $ | 5.89 | ||||||||||||||||
Palladium / oz |
$ | 408 | $ | 394 | $ | 340 | $ | 468 | $ | 503 | $ | 427 | $ | 423 | $ | 383 | ||||||||||||||||
Cobalt / lb |
$ | 6.86 | $ | 5.76 | $ | 4.68 | $ | 5.15 | $ | 4.41 | $ | 4.98 | $ | n.a. | $ | n.a. | ||||||||||||||||
Depletion 2 |
||||||||||||||||||||||||||||||||
Gold / oz |
$ | 369 | $ | 321 | $ | 338 | $ | 337 | $ | 390 | $ | 374 | $ | 397 | $ | 404 | ||||||||||||||||
Silver / oz |
$ | 5.28 | $ | 4.78 | $ | 5.57 | $ | 5.21 | $ | 5.40 | $ | 5.82 | $ | 5.16 | $ | 4.36 | ||||||||||||||||
Palladium / oz |
$ | 399 | $ | 399 | $ | 442 | $ | 442 | $ | 442 | $ | 442 | $ | 428 | $ | 428 | ||||||||||||||||
Cobalt / lb |
$ | 10.40 | $ | 8.17 | $ | 8.17 | $ | 8.17 | $ | 8.17 | $ | 8.17 | $ | n.a. | $ | n.a. | ||||||||||||||||
Net earnings |
$ | 149,074 | $ | 157,467 | $ | 291,822 | $ | 134,937 | $ | 166,124 | $ | 162,002 | $ | 157,221 | $ | 149,875 | ||||||||||||||||
Per share |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.330 | $ | 0.349 | $ | 0.648 | $ | 0.300 | $ | 0.369 | $ | 0.360 | $ | 0.350 | $ | 0.334 | ||||||||||||||||
Diluted |
$ | 0.330 | $ | 0.348 | $ | 0.646 | $ | 0.299 | $ | 0.368 | $ | 0.360 | $ | 0.349 | $ | 0.332 | ||||||||||||||||
Adjusted net earnings 3 |
$ | 149,285 | $ | 158,007 | $ | 132,232 | $ | 137,087 | $ | 161,626 | $ | 161,133 | $ | 149,441 | $ | 152,007 | ||||||||||||||||
Per share |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.331 | $ | 0.350 | $ | 0.293 | $ | 0.304 | $ | 0.359 | $ | 0.358 | $ | 0.333 | $ | 0.338 | ||||||||||||||||
Diluted |
$ | 0.330 | $ | 0.350 | $ | 0.293 | $ | 0.303 | $ | 0.358 | $ | 0.358 | $ | 0.331 | $ | 0.336 | ||||||||||||||||
Cash flow from operations |
$ | 206,359 | $ | 210,540 | $ | 195,290 | $ | 201,287 | $ | 216,415 | $ | 232,154 | $ | 207,962 | $ | 228,099 | ||||||||||||||||
Per share 3 |
||||||||||||||||||||||||||||||||
Basic |
$ | 0.457 | $ | 0.467 | $ | 0.433 | $ | 0.447 | $ | 0.481 | $ | 0.516 | $ | 0.463 | $ | 0.508 | ||||||||||||||||
Diluted |
$ | 0.456 | $ | 0.466 | $ | 0.432 | $ | 0.446 | $ | 0.480 | $ | 0.515 | $ | 0.461 | $ | 0.505 | ||||||||||||||||
Dividends declared |
$ | 67,708 | $ | 67,687 | $ | 67,580 | $ | 67,541 | $ | 63,009 | $ | 58,478 | $ | 53,914 | $ | 44,896 | ||||||||||||||||
Per share |
$ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.15 | $ | 0.14 | $ | 0.13 | $ | 0.12 | $ | 0.10 | ||||||||||||||||
Total assets |
$ | 6,448,695 | $ | 6,470,033 | $ | 6,296,151 | $ | 6,046,740 | $ | 5,981,466 | $ | 5,928,412 | $ | 5,957,272 | $ | 6,091,187 | ||||||||||||||||
Total liabilities |
$ | 31,894 | $ | 120,572 | $ | 46,034 | $ | 42,387 | $ | 38,202 | $ | 104,985 | $ | 242,701 | $ | 539,849 | ||||||||||||||||
Total shareholders’ equity |
$ | 6,416,801 | $ | 6,349,461 | $ | 6,250,117 | $ | 6,004,353 | $ | 5,943,264 | $ | 5,823,427 | $ | 5,714,571 | $ | 5,551,338 |
1) | All figures in thousands except gold and palladium ounces produced and sold, per unit amounts and per share amounts. |
2) | Expressed as dollars per ounce and for cobalt per pound. |
3) | Refer to discussion on non-IFRS beginning on page 36 of this MD&A. |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||
Units Produced² |
Units Sold |
Average Realized Price ($‘s Per Unit) |
Average Cash Cost ($‘s Per Unit) 3 |
Average Depletion ($‘s Per Unit) |
Sales | Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||||||
Salobo |
34,129 | 48,515 | $ | 1,872 | $ | 416 | $ | 334 | $ | 90,842 | $ | 54,462 | $ | 70,649 | $ | 2,407,579 | ||||||||||||||||||||
Sudbury 4 |
7,212 | 7,916 | 1,867 | 400 | 1,090 | 14,780 | 2,983 | 11,613 | 294,485 | |||||||||||||||||||||||||||
Constancia |
8,042 | 7,431 | 1,872 | 412 | 271 | 13,915 | 8,838 | 10,686 | 98,930 | |||||||||||||||||||||||||||
San Dimas |
10,044 | 10,633 | 1,872 | 624 | 260 | 19,910 | 10,520 | 13,280 | 161,350 | |||||||||||||||||||||||||||
Stillwater |
2,171 | 2,626 | 1,872 | 340 | 429 | 4,917 | 2,897 | 4,024 | 217,530 | |||||||||||||||||||||||||||
Other 5 |
6,767 | 7,216 | 1,868 | 727 | 57 | 13,478 | 7,823 | 8,529 | 419,696 | |||||||||||||||||||||||||||
68,365 | 84,337 | $ | 1,872 | $ | 465 | $ | 369 | $ | 157,842 | $ | 87,523 | $ | 118,781 | $ | 3,599,570 | |||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||||||
Peñasquito |
2,089 | 2,096 | $ | 22.47 | $ | 4.36 | $ | 3.57 | $ | 47,102 | $ | 30,488 | $ | 37,963 | $ | 306,742 | ||||||||||||||||||||
Antamina |
1,379 | 1,177 | 22.47 | 4.42 | 7.06 | 26,448 | 12,934 | 21,242 | 561,383 | |||||||||||||||||||||||||||
Constancia |
584 | 494 | 22.47 | 6.08 | 6.35 | 11,101 | 4,958 | 7,784 | 198,672 | |||||||||||||||||||||||||||
Other 6 |
2,485 | 2,081 | 21.91 | 7.44 | 5.74 | 45,577 | 18,148 | 30,198 | 577,944 | |||||||||||||||||||||||||||
6,537 | 5,848 | $ | 22.27 | $ | 5.61 | $ | 5.28 | $ | 130,228 | $ | 66,528 | $ | 97,187 | $ | 1,644,741 | |||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||
Stillwater |
3,899 | 3,378 | $ | 2,132 | $ | 408 | $ | 399 | $ | 7,203 | $ | 4,477 | $ | 5,825 | $ | 229,855 | ||||||||||||||||||||
Platinum |
||||||||||||||||||||||||||||||||||||
Marathon |
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 4,852 | ||||||||||||||||||||
Cobalt |
||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
136 | 225 | $ | 34.01 | $ | 6.86 | $ | 10.40 | $ | 7,649 | $ | 3,769 | $ | 13,797 | $ | 362,460 | ||||||||||||||||||||
Operating results |
$ | 302,922 | $ | 162,297 | $ | 235,590 | $ | 5,841,478 | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||
General and administrative |
$ | (9,685) | $ | (8,379) | ||||||||||||||||||||||||||||||||
Share based compensation |
(1,608) | (18,161) | ||||||||||||||||||||||||||||||||||
Donations and community investments |
(1,160) | (1,135) | ||||||||||||||||||||||||||||||||||
Finance costs |
(1,389) | (1,011) | ||||||||||||||||||||||||||||||||||
Other |
820 | (465) | ||||||||||||||||||||||||||||||||||
Income tax |
(201) | (80) | ||||||||||||||||||||||||||||||||||
Total other |
|
$ | (13,223) | $ | (29,231) | $ | 607,217 | |||||||||||||||||||||||||||||
$ | 149,074 | $ | 206,359 | $ | 6,448,695 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
5) | Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont in this MD&A), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
6) | Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in this MD&A), Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
Ounces Produced 1, 2 |
Ounces Sold 2 |
Average Realized Price ($‘s Per Ounce) |
Average Cash Cost ($‘s Per Ounce) 3 |
Cash Operating Margin ($‘s Per Ounce) 4 |
Average Depletion ($‘s Per Ounce) |
Gross Margin ($‘s Per Ounce) |
||||||||||||||||||||||
Gold equivalent basis 5 |
162,569 | 170,371 | $ | 1,778 | $ | 440 | $ |
1,338 |
$ | 386 | $ |
952 |
||||||||||||||||
Silver equivalent basis 5 |
12,193 | 12,778 | $ | 23.71 | $ | 5.87 | $ |
17.84 |
$ | 5.14 | $ |
12.70 |
1) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Silver ounces produced and sold in thousands. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Refer to discussion on non-IFRS measure (iv) on page 39 of this MD&A. |
5) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
Three Months Ended June 30, 2021 |
| |||||||||||||||||||||||||||||||||||
Units Produced² |
Units Sold |
Average Realized Price ($‘s Per Unit) |
Average Cash Cost ($‘s Per Unit) 3 |
Average Depletion ($‘s Per Unit) |
Sales | Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||||||
Salobo |
55,590 | 57,296 | $ | 1,798 | $ | 412 | $ | 374 | $ | 103,039 | $ | 58,015 | $ | 79,426 | $ | 2,468,716 | ||||||||||||||||||||
Sudbury 4 |
4,563 | 6,945 | 1,817 | 400 | 1,024 | 12,618 | 2,725 | 10,262 | 310,120 | |||||||||||||||||||||||||||
Constancia |
5,525 | 2,321 | 1,798 | 408 | 315 | 4,174 | 2,496 | 3,227 | 104,310 | |||||||||||||||||||||||||||
San Dimas |
11,478 | 11,214 | 1,798 | 618 | 322 | 20,167 | 9,627 | 13,242 | 175,275 | |||||||||||||||||||||||||||
Stillwater |
2,962 | 2,574 | 1,798 | 326 | 397 | 4,629 | 2,769 | 3,791 | 222,069 | |||||||||||||||||||||||||||
Other 5 |
9,954 | 9,740 | 1,814 | 559 | 125 | 17,666 | 11,007 | 12,238 | 65,296 | |||||||||||||||||||||||||||
90,072 | 90,090 | $ | 1,801 | $ | 450 | $ | 390 | $ | 162,293 | $ | 86,639 | $ | 122,186 | $ | 3,345,786 | |||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||||||
Peñasquito |
2,026 | 1,844 | $ | 26.65 | $ | 4.29 | $ | 3.55 | $ | 49,133 | $ | 34,682 | $ | 41,223 | $ | 336,314 | ||||||||||||||||||||
Antamina |
1,558 | 1,499 | 26.63 | 5.39 | 7.53 | 39,903 | 20,545 | 31,013 | 601,117 | |||||||||||||||||||||||||||
Constancia |
468 | 295 | 26.65 | 6.02 | 7.56 | 7,865 | 3,858 | 6,088 | 212,197 | |||||||||||||||||||||||||||
Other 6 |
2,477 | 1,962 | 26.78 | 8.39 | 5.20 | 52,554 | 25,893 | 34,132 | 608,588 | |||||||||||||||||||||||||||
6,529 | 5,600 | $ | 26.69 | $ | 6.11 | $ | 5.40 | $ | 149,455 | $ | 84,978 | $ | 112,456 | $ | 1,758,216 | |||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||
Stillwater |
5,301 | 3,869 | $ | 2,797 | $ | 503 | $ | 442 | $ | 10,822 | $ | 7,164 | $ | 8,876 | $ | 237,407 | ||||||||||||||||||||
Cobalt |
||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
380 | 395 | $ | 19.82 | $ | 4.41 | $ | 8.17 | $ | 7,823 | $ | 2,859 | $ | 2,052 | $ | 222,106 | ||||||||||||||||||||
Operating results |
$ | 330,393 | $ | 181,640 | $ | 245,570 | $ | 5,563,515 | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||
General and administrative |
$ | (8,904) | $ | (8,573) | ||||||||||||||||||||||||||||||||
Share based compensation |
(7,978) | (16,926) | ||||||||||||||||||||||||||||||||||
Donations and community investments |
(1,583) | (1,075) | ||||||||||||||||||||||||||||||||||
Finance costs |
(1,357) | (978) | ||||||||||||||||||||||||||||||||||
Other |
3,420 | (1,582) | ||||||||||||||||||||||||||||||||||
Income tax |
886 | (21) | ||||||||||||||||||||||||||||||||||
Total other |
|
$ | (15,516) | $ | (29,155) | $ | 417,951 | |||||||||||||||||||||||||||||
$ | 166,124 | $ | 216,415 | $ | 5,981,466 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
5) | Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont in this MD&A). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
6) | Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont in this MD&A) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Three Months Ended June 30, 2021 | ||||||||||||||||||||||||||||
Ounces Produced 1, 2 |
Ounces Sold 2 |
Average Realized Price ($‘s Per Ounce) |
Average Cash Cost ($‘s Per Ounce) 3 |
Cash Operating Margin ($‘s Per Ounce) 4 |
Average Depletion ($‘s Per Ounce) |
Gross Margin ($‘s Per Ounce) |
||||||||||||||||||||||
Gold equivalent basis 5 |
190,272 | 176,502 | $ | 1,872 | $ | 444 | $ |
1,428 |
$ | 398 | $ |
1,030 |
||||||||||||||||
Silver equivalent basis 5 |
14,270 | 13,238 | $ | 24.96 | $ | 5.93 | $ |
19.03 |
$ | 5.31 | $ |
13.72 |
1) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Silver ounces produced and sold in thousands. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Refer to discussion on non-IFRS measure (iv) on page 39 of this MD&A. |
5) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
● |
21,500 ounce (39%) decrease from Salobo, resulting from lower throughput and grades. Vale has reported that while mine movement continued to improve during the quarter, concentrate production was negatively impacted by plant performance due to delays in ramp-up after planned and corrective maintenance. As it relates to throughput, the two 12 mtpa lines operated at an average rate of approximately 74% of capacity during Q2-2022 as compared to 90% during Q2-2021; and |
● |
3,200 ounce (32%) decrease from Other mines, primarily due to lower production at 777 with closure activities commencing in June 2022; with these decreases being partially offset by |
● |
2,600 ounce (58%) increase from Sudbury, due to higher throughput as the prior year was impacted by the temporary suspension of operations at the mine from June 1, 2021 to August 9, 2021 as a result of a labour dispute; and |
● |
2,500 ounce (46%) increase from Constancia, primarily due to the mining of higher grade material from the Pampacancha pit. |
● |
116,000 ounce (25%) increase from Constancia, primarily due to higher grades; and |
● |
63,000 ounce (3%) increase from Peñasquito, primarily due to higher grades; partially offset by |
● |
179,000 ounce (11%) decrease from Antamina, primarily due to lower grades and throughput. |
Net earnings for the three months ended June 30, 2021 |
$ | 166,124 | ||
Variance in gross margin |
||||
Variance in revenue due to: |
||||
Payable gold production |
$ | (38,246) | ||
Payable silver production |
(2,308) | |||
Payable palladium production |
(3,378) | |||
Payable cobalt production |
(4,504) | |||
Changes in inventory and PBND |
39,952 | |||
Prices realized per ounce sold |
(18,987) | |||
Total decrease to revenue |
$ | (27,471) | ||
Variance in cost of sales due to: |
||||
Sales volume |
$ | 4,575 | ||
Sales mix differences |
(1,135) | |||
Cash cost per ounce |
1,210 | |||
Depletion per ounce |
3,478 | |||
Total decrease to cost of sales |
$ | 8,128 | ||
Total decrease to gross margin |
$ | (19,343) | ||
Other variances |
||||
General and administrative expenses (see page 24) |
(781) | |||
Share based compensation (see page 24) |
6,370 | |||
Donations and community investment (see page 25) |
423 | |||
Other income / expense (see page 25) |
(2,600) | |||
Finance costs (see page 25) |
(32) | |||
Income taxes (see page 26) |
(1,087) | |||
Total decrease in net earnings |
$ | (17,050) | ||
Net earnings for the three months ended June 30, 2022 |
$ | 149,074 |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||
Units Produced² |
Units Sold |
Average Realized Price ($‘s Per Unit) |
Average Cash Cost ($‘s Per Unit) 3 |
Average Depletion ($‘s Per Unit) |
Sales | Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||||||
Salobo |
79,012 | 91,028 | $ | 1,872 | $ | 416 | $ | 334 | $ | 170,407 | $ | 102,147 | $ | 132,517 | $ | 2,407,579 | ||||||||||||||||||||
Sudbury 4 |
12,574 | 11,628 | 1,865 | 400 | 1,091 | 21,689 | 4,354 | 17,038 | 294,485 | |||||||||||||||||||||||||||
Constancia |
14,353 | 17,925 | 1,872 | 412 | 271 | 33,555 | 21,308 | 26,168 | 98,930 | |||||||||||||||||||||||||||
San Dimas |
20,505 | 20,703 | 1,872 | 621 | 260 | 38,756 | 20,528 | 25,901 | 161,350 | |||||||||||||||||||||||||||
Stillwater |
4,668 | 5,254 | 1,872 | 335 | 429 | 9,835 | 5,823 | 8,078 | 217,530 | |||||||||||||||||||||||||||
Other 5 |
15,307 | 15,700 | 1,865 | 750 | 40 | 29,275 | 16,871 | 17,351 | 419,696 | |||||||||||||||||||||||||||
146,419 | 162,238 | $ | 1,871 | $ | 470 | $ | 346 | $ | 303,517 | $ | 171,031 | $ | 227,053 | $ | 3,599,570 | |||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||||||
Peñasquito |
4,308 | 4,284 | $ | 23.30 | $ | 4.36 | $ | 3.57 | $ | 99,829 | $ | 65,874 | $ | 81,151 | $ | 306,742 | ||||||||||||||||||||
Antamina |
2,647 | 2,645 | 23.37 | 4.71 | 7.06 | 61,806 | 30,680 | 49,001 | 561,383 | |||||||||||||||||||||||||||
Constancia |
1,090 | 1,138 | 23.39 | 6.08 | 6.34 | 26,614 | 12,484 | 19,697 | 198,672 | |||||||||||||||||||||||||||
Other 6 |
4,725 | 3,334 | 22.89 | 6.93 | 4.88 | 76,311 | 36,946 | 54,073 | 577,944 | |||||||||||||||||||||||||||
12,770 | 11,401 | $ | 23.21 | $ | 5.36 | $ | 5.04 | $ | 264,560 | $ | 145,984 | $ | 203,922 | $ | 1,644,741 | |||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||
Stillwater |
8,387 | 7,453 | $ | 2,246 | $ | 400 | $ | 399 | $ | 16,736 | $ | 10,781 | $ | 13,755 | $ | 229,855 | ||||||||||||||||||||
Platinum |
||||||||||||||||||||||||||||||||||||
Marathon |
- | - | $ | n.a. | $ | n.a. | $ | n.a. | $ | - | $ | - | $ | - | $ | 4,852 | ||||||||||||||||||||
Cobalt |
||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
371 | 736 | $ | 34.43 | $ | 6.09 | $ | 8.85 | $ | 25,353 | $ | 14,350 | $ | 17,269 | $ | 362,460 | ||||||||||||||||||||
Operating results |
$ | 610,166 | $ | 342,146 | $ | 461,999 | $ | 5,841,478 | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||
General and administrative |
$ | (19,089) | $ | (23,506) | ||||||||||||||||||||||||||||||||
Share based compensation |
(11,509) | (18,161) | ||||||||||||||||||||||||||||||||||
Donations and community investments |
(1,973) | (1,565) | ||||||||||||||||||||||||||||||||||
Finance costs |
(2,811) | (2,088) | ||||||||||||||||||||||||||||||||||
Other |
650 | 333 | ||||||||||||||||||||||||||||||||||
Income tax |
(872) | (113) | ||||||||||||||||||||||||||||||||||
Total other |
|
$ | (35,604) | $ | (45,100) | $ | 607,217 | |||||||||||||||||||||||||||||
$ | 306,542 | $ | 416,899 | $ | 6,448,695 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests. |
5) | Comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont in this MD&A), Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
6) | Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in this MD&A), Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
Ounces Produced 1, 2 |
Ounces Sold 2 |
Average Realized Price ($‘s Per Ounce) |
Average Cash Cost ($‘s Per Ounce) 3 |
Cash Operating Margin ($‘s Per Ounce) 4 |
Average Depletion ($‘s Per Ounce) |
Gross Margin ($‘s Per Ounce) |
||||||||||||||||||||||
Gold equivalent basis 5 |
333,265 | 336,436 | $ | 1,814 | $ | 431 | $ |
1,383 |
$ | 366 | $ |
1,017 |
||||||||||||||||
Silver equivalent basis 5 |
24,995 | 25,233 | $ | 24.18 | $ | 5.74 | $ |
18.44 |
$ | 4.88 | $ |
13.56 |
1) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Silver ounces and cobalt pounds produced and sold in thousands. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Refer to discussion on non-IFRS measure (iv) on page 39 of this MD&A. |
5) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||
Units Produced² |
Units Sold |
Average Realized Price ($‘s Per Unit) |
Average Cash Cost ($‘s Per Unit) 3 |
Average Depletion ($‘s Per Unit) |
Sales | Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||||||||||||
Gold |
||||||||||||||||||||||||||||||||||||
Salobo |
102,212 | 108,719 | $ | 1,797 | $ | 412 | $ | 374 | $ | 195,395 | $ | 109,962 | $ | 150,590 | $ | 2,468,716 | ||||||||||||||||||||
Sudbury 4 |
11,567 | 10,636 | 1,815 | 400 | 1,024 | 19,306 | 4,156 | 15,480 | 310,120 | |||||||||||||||||||||||||||
Constancia |
7,978 | 3,997 | 1,797 | 408 | 315 | 7,184 | 4,294 | 5,553 | 104,310 | |||||||||||||||||||||||||||
San Dimas |
21,969 | 21,487 | 1,797 | 615 | 322 | 38,617 | 18,477 | 25,404 | 175,275 | |||||||||||||||||||||||||||
Stillwater |
6,003 | 5,648 | 1,797 | 327 | 397 | 10,150 | 6,059 | 8,300 | 222,069 | |||||||||||||||||||||||||||
Other 5 |
18,872 | 14,707 | 1,813 | 582 | 83 | 26,667 | 16,885 | 18,093 | 65,296 | |||||||||||||||||||||||||||
168,601 | 165,194 | $ | 1,800 | $ | 450 | $ | 382 | $ | 297,319 | $ | 159,833 | $ | 223,420 | $ | 3,345,786 | |||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||||||
Peñasquito |
4,228 | 4,018 | $ | 26.41 | $ | 4.29 | $ | 3.55 | $ | 106,116 | $ | 74,621 | $ | 88,879 | $ | 336,314 | ||||||||||||||||||||
Antamina |
3,135 | 3,429 | 26.39 | 5.27 | 7.53 | 90,485 | 46,603 | 71,604 | 601,117 | |||||||||||||||||||||||||||
Constancia |
874 | 641 | 26.41 | 6.02 | 7.56 | 16,936 | 8,229 | 13,076 | 212,197 | |||||||||||||||||||||||||||
Other 6 |
5,057 | 4,169 | 26.34 | 8.93 | 5.78 | 109,800 | 48,482 | 73,230 | 608,588 | |||||||||||||||||||||||||||
13,294 | 12,257 | $ | 26.38 | $ | 6.23 | $ | 5.63 | $ | 323,337 | $ | 177,935 | $ | 246,789 | $ | 1,758,216 | |||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||
Stillwater |
11,070 | 9,000 | $ | 2,566 | $ | 460 | $ | 442 | $ | 23,097 | $ | 14,978 | $ | 18,960 | $ | 237,407 | ||||||||||||||||||||
Cobalt |
||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
1,542 | 527 | $ | 20.42 | $ | 4.55 | $ | 8.17 | $ | 10,759 | $ | 4,056 | $ | 1,086 | $ | 222,106 | ||||||||||||||||||||
Operating results |
$ | 654,512 | $ | 356,802 | $ | 490,255 | $ | 5,563,515 | ||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||
General and administrative |
$ | (18,639) | $ | (21,236) | ||||||||||||||||||||||||||||||||
Share based compensation |
(9,608) | (16,926) | ||||||||||||||||||||||||||||||||||
Donations and community investments |
(2,188) | (1,573) | ||||||||||||||||||||||||||||||||||
Finance costs |
(2,930) | (2,207) | ||||||||||||||||||||||||||||||||||
Other |
3,301 | 307 | ||||||||||||||||||||||||||||||||||
Income tax |
1,388 | (51) | ||||||||||||||||||||||||||||||||||
Total other |
|
$ | (28,676) | $ | (41,686) | $ | 417,951 | |||||||||||||||||||||||||||||
$ | 328,126 | $ | 448,569 | $ | 5,981,466 |
1) | Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts. |
2) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
5) | Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont in this MD&A). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
6) | Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont in this MD&A) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Six Months Ended June 30, 2021 | ||||||||||||||||||||||||||||
Ounces Produced 1, 2 |
Ounces Sold 2 |
Average Realized Price ($‘s Per Ounce) |
Average Cash Cost ($‘s Per Ounce) 3 |
Cash Operating Margin ($‘s Per Ounce) 4 |
Average Depletion ($‘s Per Ounce) |
Gross Margin ($‘s Per Ounce) |
||||||||||||||||||||||
Gold equivalent basis 5 |
387,028 | 348,773 | $ | 1,877 | $ | 451 | $ |
1,426 |
$ | 403 | $ |
1,023 |
||||||||||||||||
Silver equivalent basis 5 |
29,027 | 26,158 | $ | 25.02 | $ | 6.01 | $ |
19.01 |
$ | 5.37 | $ |
13.64 |
1) | Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received. |
2) | Silver ounces and cobalt pounds produced and sold in thousands. |
3) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
4) | Refer to discussion on non-IFRS measure (iv) on page 39 of this MD&A. |
5) | GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $24.00 per ounce silver; $2,100 per ounce palladium; and $33.00 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2022. |
● |
23,200 ounce (23%) decrease from Salobo, primarily due to lower grades and throughput, with Vale reporting that during the first quarter of 2022, operations at Salobo were impacted by both planned and corrective maintenance in the mill liners, coupled with above average seasonal rain level in the region during the fourth quarter of 2021 impacting mine plans in the first quarter of 2022. Additionally, as discussed on page 18 of this MD&A, during the second quarter, concentrate production was negatively impacted by plant performance due to delays in ramp-up after the planned and corrective maintenance. As it relates to throughput, the two 12 mtpa lines operated at an average rate of approximately 77% of capacity during the first six month of 2022 as compared to 86% during the comparable period of 2021; |
● |
3,600 ounce (19%) decrease from Other mines, primarily due to lower production at 777 with closure activities commencing in June 2022; and |
● |
1,500 ounce (7%) decrease from San Dimas, primarily due to lower grades and throughput; with these decreases being partially offset by |
● |
6,400 ounce (80%) increase from Constancia, primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and the increase in fixed recoveries from 55% to 70%, both occurring during Q2-2022; and |
● |
1,000 ounce (9%) increase from Sudbury, primarily due to higher grades and recoveries. |
● |
488,000 ounce (16%) decrease from Antamina, primarily due to lower grades; and |
● |
331,000 ounce (7%) decrease from Other mines, primarily due to the placement of Stratoni into care and maintenance during Q4 2021; partially offset by |
● |
80,000 ounce (2%) increase from Peñasquito, primarily due to higher grades. |
Net earnings for the six months ended June 30, 2021 |
$ | 328,126 | ||
Variance in gross margin |
||||
Variance in revenue due to: |
||||
Payable gold production |
$ | (38,829) | ||
Payable silver production |
(15,193) | |||
Payable palladium production |
(5,479) | |||
Payable cobalt production |
(22,314) | |||
Changes in inventory and PBND |
54,212 | |||
Prices realized per ounce sold |
(16,743) | |||
Total decrease to revenue |
$ | (44,346) | ||
Variance in cost of sales due to: |
||||
Sales volume |
$ | 11,350 | ||
Sales mix differences |
11,257 | |||
Cash cost per ounce |
(504) | |||
Depletion per ounce |
7,587 | |||
Total decrease to cost of sales |
$ | 29,690 | ||
Total decrease to gross margin |
$ | (14,656) | ||
Other variances |
||||
General and administrative expenses (see page 24) |
(450) | |||
Donations and community investment (see page 25) |
215 | |||
Share based compensation (see page 24) |
(1,901) | |||
Other income / expense (see page 25) |
(2,651) | |||
Finance costs (see page 25) |
119 | |||
Income taxes (see page 26) |
(2,260) | |||
Total decrease in net earnings |
$ | (21,584) | ||
Net earnings for the six months ended June 30, 2022 |
$ | 306,542 |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Corporate |
||||||||||||||||
Salaries and benefits |
$ | 3,912 | $ | 3,618 | $ | 8,149 | $ | 7,298 | ||||||||
Depreciation |
288 | 274 | 575 | 552 | ||||||||||||
Professional fees |
329 | 769 | 822 | 2,284 | ||||||||||||
Business travel |
363 | 29 | 465 | 37 | ||||||||||||
Director fees |
279 | 257 | 601 | 549 | ||||||||||||
Employer health tax |
391 | 349 | 708 | 638 | ||||||||||||
Audit and regulatory |
887 | 833 | 1,716 | 1,779 | ||||||||||||
Insurance |
529 | 360 | 1,035 | 739 | ||||||||||||
Other |
888 | 724 | 1,783 | 1,528 | ||||||||||||
General and administrative - corporate |
$ | 7,866 | $ | 7,213 | $ | 15,854 | $ | 15,404 | ||||||||
Subsidiaries |
||||||||||||||||
Salaries and benefits |
$ | 1,149 | $ | 1,016 | $ | 2,257 | $ | 2,046 | ||||||||
Depreciation |
110 | 97 | 216 | 198 | ||||||||||||
Professional fees |
165 | 168 | 258 | 269 | ||||||||||||
Business travel |
64 | 23 | 68 | 23 | ||||||||||||
Director fees |
50 | 50 | 100 | 100 | ||||||||||||
Insurance |
10 | 11 | 24 | 20 | ||||||||||||
Other |
271 | 326 | 312 | 579 | ||||||||||||
General and administrative - subsidiaries |
$ | 1,819 | $ | 1,691 | $ | 3,235 | $ | 3,235 | ||||||||
Consolidated general and administrative |
$ | 9,685 | $ | 8,904 | $ | 19,089 | $ | 18,639 |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Equity settled share based compensation |
||||||||||||||||
Stock options |
$ | 611 | $ | 514 | $ | 1,145 | $ | 1,029 | ||||||||
RSUs |
887 | 793 | 1,694 | 1,603 | ||||||||||||
Cash settled share based compensation |
||||||||||||||||
PSUs |
110 | 6,671 | 8,670 | 6,976 | ||||||||||||
Total share based compensation |
$ | 1,608 | $ | 7,978 | $ | 11,509 | $ | 9,608 |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Local donations and community investments 1 |
352 | 364 | $ | 907 | $ | 696 | ||||||||||
Partner donations and community investments 2 |
708 | 627 | 901 | 692 | ||||||||||||
COVID-19 and community support and response fund |
100 | 592 | 165 | 800 | ||||||||||||
Total donations and community investments |
$ | 1,160 | $ | 1,583 | $ | 1,973 | $ | 2,188 |
1) | The Local Community Investment Program supports organizations in Vancouver and the Cayman Islands, where Wheaton’s offices are located. |
2) | The Partner Community Investment Program supports the communities influenced by Mining Partners’ operations. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Interest income |
$ | (441) | $ | (95) | $ | (523) | $ | (97) | ||||||||
Dividend income |
(108) | - | (220) | - | ||||||||||||
Foreign exchange (gain) loss |
(433) | 221 | (19) | 637 | ||||||||||||
(Gain) loss on fair value adjustment of share purchase warrants held |
154 | 194 | 897 | 1,145 | ||||||||||||
(Gain) loss on fair value adjustment of convertible notes receivable |
- | (3,388) | 1,380 | (4,626) | ||||||||||||
Other |
8 | (352) | (2,165) | (360) | ||||||||||||
Total other (income) expense |
$ | (820) | $ | (3,420) | $ | (650) | $ | (3,301) |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Average principal outstanding during period |
$ | - | $ | - | $ | - | $ | 39,011 | ||||||||
Average effective interest rate during period |
n.a. | n.a. | n.a. | 1.17% | ||||||||||||
Total interest costs incurred during period |
$ | - | $ | - | $ | - | $ | 229 | ||||||||
Costs related to undrawn credit facilities |
1,297 | 1,325 | 2,639 | 2,636 | ||||||||||||
Interest expense - lease liabilities |
24 | 32 | 50 | 65 | ||||||||||||
Letter of guarantee |
68 | - | 122 | - | ||||||||||||
Total finance costs |
$ | 1,389 | $ | 1,357 | $ | 2,811 | $ | 2,930 |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Current income tax expense (recovery) |
$ | (819) | $ | (726) | $ | 78 | $ | (6,139) | ||||||||
Deferred income tax expense (recovery) related to: |
||||||||||||||||
Origination and reversal of temporary differences |
2,849 | 2,423 | $ | 9,123 | $ | 13,936 | ||||||||||
Write down (reversal of write down) or recognition of prior period temporary differences |
(1,829) | (2,583) | (8,329) | (9,185) | ||||||||||||
Total deferred income tax expense (recovery) |
$ | 1,020 | $ | (160) | $ | 794 | $ | 4,751 | ||||||||
Income tax expense (recovery) recognized in net earnings |
$ | 201 | $ | (886) | $ | 872 | $ | (1,388) |
Operating cash inflow for the three months ended June 30, 2021 |
$ | 216,415 | ||
Variance attributable to revenue (see page 19): |
$ | (27,471) | ||
Decrease in accounts receivable |
19,797 | |||
Total decrease to cash inflows attributable to sales |
$ | (7,674) | ||
Variance attributable to cost of sales, excluding depletion: |
||||
Sales volume |
$ | 2,069 | ||
Sales mix differences |
223 | |||
Cost per ounce |
1,210 | |||
Decrease in accounts payable |
(5,808) | |||
Total increase to cash outflows attributable to cost of sales |
$ | (2,306) | ||
Total decrease to net cash inflows attributable to gross margin |
$ | (9,980) | ||
Other variances: |
||||
General and administrative |
194 | |||
Donation and community investment |
(60) | |||
Share based compensation - PSUs |
(1,235) | |||
Finance costs |
(33) | |||
Income taxes |
(59) | |||
Other |
1,117 | |||
Total decrease to net cash inflows |
$ | (10,056) | ||
Operating cash inflow for the three months ended June 30, 2022 |
$ | 206,359 |
1 |
Statements made in this section contain forward-looking information with respect to funding outstanding commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
Operating cash inflow for the six months ended June 30, 2021 |
$ | 448,569 | ||
Variance attributable to revenue (see page 23): |
$ | (44,346) | ||
Decrease in accounts receivable |
4,167 | |||
Total decrease to cash inflows attributable to sales |
$ | (40,179) | ||
Variance attributable to cost of sales, excluding depletion: |
||||
Sales volume |
$ | 6,424 | ||
Sales mix differences |
6,373 | |||
Cost per ounce |
(504) | |||
Decrease in accounts payable |
(370) | |||
Total decrease to cash outflows attributable to cost of sales |
$ | 11,923 | ||
Total decrease to net cash inflows attributable to gross margin |
$ | (28,256) | ||
Other variances: |
||||
General and administrative |
(2,270) | |||
Donation and community investment |
8 | |||
Share based compensation - PSUs |
(1,235) | |||
Finance costs |
119 | |||
Income taxes |
(62) | |||
Other |
26 | |||
Total decrease to net cash inflows |
$ | (31,670) | ||
Operating cash inflow for the six months ended June 30, 2022 |
$ | 416,899 |
Mineral Stream Interests | Attributable Payable Production to be Purchased | Per Unit of Measurement Cash Payment 1 |
Term of Agreement |
Date of Original Contract |
||||||||||||||||||||||||||||||||||||||||||||
Gold | Silver | Palladium | Cobalt | Platinum | Gold | Silver | Palladium | Cobalt | Platinum | |||||||||||||||||||||||||||||||||||||||
Peñasquito |
0% | 25% | 0% | 0% | 0% | n/a | $ | 4.36 | n/a | n/a | n/a | Life of Mine | 24-Jul-07 |
|||||||||||||||||||||||||||||||||||
Constancia |
50% | 100% | 0% | 0% | 0% | $ | 412 | 2 |
$ | 6.08 | 2 |
n/a | n/a | n/a | Life of Mine | 8-Aug-12 |
||||||||||||||||||||||||||||||||
Salobo |
75% | 0% | 0% | 0% | 0% | $ | 416 | n/a | n/a | n/a | n/a | Life of Mine | 28-Feb-13 |
|||||||||||||||||||||||||||||||||||
Sudbury |
70% | 0% | 0% | 0% | 0% | $ | 400 | n/a | n/a | n/a | n/a | 20 years | 28-Feb-13 |
|||||||||||||||||||||||||||||||||||
Antamina |
0% | 33.75% | 0% | 0% | 0% | n/a | 20% | n/a | n/a | n/a | Life of Mine | 3-Nov-15 |
||||||||||||||||||||||||||||||||||||
San Dimas |
variable | 3 |
0% | 3 |
0% | 0% | 0% | $ | 624 | n/a | n/a | n/a | n/a | Life of Mine | 10-May-18 |
|||||||||||||||||||||||||||||||||
Stillwater |
100% | 0% | 4.5% | 4 |
0% | 0% | 18% | 5 |
n/a | 18% | 5 |
n/a | n/a | Life of Mine | 16-Jul-18 |
|||||||||||||||||||||||||||||||||
Voisey’s Bay |
0% | 0% | 0% | 42.4% | 6 |
0% | n/a | n/a | n/a | 18% | 7 |
n/a | Life of Mine | 11-Jun-18 |
||||||||||||||||||||||||||||||||||
Marathon |
100% | 8 |
0% | 0% | 0% | 22% | 8 |
18% | 5 |
n/a | n/a | n/a | 18% | 5 |
Life of Mine | 26-Jan-22 |
||||||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||||||||||
Los Filos |
0% | 100% | 0% | 0% | 0% | n/a | $ | 4.53 | n/a | n/a | n/a | 25 years | 15-Oct-04 |
|||||||||||||||||||||||||||||||||||
Zinkgruvan |
0% | 100% | 0% | 0% | 0% | n/a | $ | 4.53 | n/a | n/a | n/a | Life of Mine | 8-Dec-04 |
|||||||||||||||||||||||||||||||||||
Yauliyacu |
0% | 100% | 9 |
0% | 0% | 0% | n/a | $ | 9.05 | 10 |
n/a | n/a | n/a | Life of Mine | 23-Mar-06 |
|||||||||||||||||||||||||||||||||
Stratoni |
0% | 100% | 0% | 0% | 0% | n/a | $ | 11.54 | n/a | n/a | n/a | Life of Mine | 23-Apr-07 |
|||||||||||||||||||||||||||||||||||
Neves-Corvo |
0% | 100% | 0% | 0% | 0% | n/a | $ | 4.42 | n/a | n/a | n/a | 50 years | 5-Jun-07 |
|||||||||||||||||||||||||||||||||||
Aljustrel |
0% | 100% | 11 |
0% | 0% | 0% | n/a | 50% | n/a | n/a | n/a | 50 years | 5-Jun-07 |
|||||||||||||||||||||||||||||||||||
Minto |
100% | ¹² | 100% | 0% | 0% | 0% | 65% | 13 |
$ | 4.35 | n/a | n/a | n/a | Life of Mine | 20-Nov-08 |
|||||||||||||||||||||||||||||||||
Keno Hill |
0% | 25% | 0% | 0% | 0% | n/a | variable | 14 |
n/a | n/a | n/a | Life of Mine | 2-Oct-08 |
|||||||||||||||||||||||||||||||||||
Pascua-Lama |
0% | 25% | 0% | 0% | 0% | n/a | $ | 3.90 | n/a | n/a | n/a | Life of Mine | 8-Sep-09 |
|||||||||||||||||||||||||||||||||||
Copper World 15 |
100% | 100% | 0% | 0% | 0% | $ | 450 | $ | 3.90 | n/a | n/a | n/a | Life of Mine | 10-Feb-10 |
||||||||||||||||||||||||||||||||||
Loma de La Plata |
0% | 12.5% | 0% | 0% | 0% | n/a | $ | 4.00 | n/a | n/a | n/a | Life of Mine | n/a 16 |
|||||||||||||||||||||||||||||||||||
777 |
50% | 100% | 0% | 0% | 0% | $ | 429 | 2 |
$ | 6.32 | 2 |
n/a | n/a | n/a | Life of Mine | 8-Aug-12 |
||||||||||||||||||||||||||||||||
Marmato |
10.5% | 17 |
100% | 17 |
0% | 0% | 0% | 18% | 18 |
18% | 18 |
n/a | n/a | n/a | Life of Mine | 5-Nov-20 |
||||||||||||||||||||||||||||||||
Cozamin |
0% | 50% | 19 |
0% | 0% | 0% | n/a | 10% | n/a | n/a | n/a | Life of Mine | 11-Dec-20 |
|||||||||||||||||||||||||||||||||||
Santo Domingo |
100% | 20 |
0% | 0% | 0% | 0% | 18% | 5 |
n/a | n/a | n/a | n/a | Life of Mine | 24-Mar-21 |
||||||||||||||||||||||||||||||||||
Fenix |
6% | 21 |
0% | 0% | 0% | 0% | 18% | 5 |
n/a | n/a | n/a | n/a | Life of Mine | 15-Nov-21 |
||||||||||||||||||||||||||||||||||
Blackwater |
8% | 22 |
50% | 22 |
0% | 0% | 0% | 35% | 18% | 5 |
n/a | n/a | n/a | Life of Mine | 13-Dec-21 |
|||||||||||||||||||||||||||||||||
Curipamba |
50% | 23 |
75% | 23 |
0% | 0% | 0% | 18% | 5 |
18% | 5 |
n/a | n/a | n/a | Life of Mine | 17-Jan-22 |
||||||||||||||||||||||||||||||||
Goose |
4.15% | 24 |
0% | 0% | 0% | 0% | 18% | 5 |
n/a | n/a | n/a | n/a | Life of Mine | 8-Feb-22 |
||||||||||||||||||||||||||||||||||
Early Deposit |
||||||||||||||||||||||||||||||||||||||||||||||||
Toroparu |
10% | 50% | 0% | 0% | 0% | $ | 400 | $ | 3.90 | n/a | n/a | n/a | Life of Mine | 11-Nov-13 |
||||||||||||||||||||||||||||||||||
Cotabambas |
25% | 25 |
100% | 25 |
0% | 0% | 0% | $ | 450 | $ | 5.90 | n/a | n/a | n/a | Life of Mine | 21-Mar-16 |
||||||||||||||||||||||||||||||||
Kutcho |
100% | 100% | 0% | 0% | 0% | 20% | 20% | n/a | n/a | n/a | Life of Mine | 14-Dec-17 |
1) | The production payment is measured as either a fixed amount per unit of metal delivered, or as a percentage of the spot price of the underlying metal on the date of delivery. Contracts where the payment is a fixed amount per unit of metal delivered are subject to an annual inflationary increase, with the exception of Loma de La Plata and Sudbury. Additionally, should the prevailing market price for the applicable metal be lower than this fixed amount, the per unit cash payment will be reduced to the prevailing market price, with the exception of Yauliyacu where the per ounce cash payment will not be reduced below $4.48, subject to an annual inflationary factor. |
2) | Subject to an increase to $9.90 per ounce of silver and $550 per ounce of gold after the initial 40-year term. |
3) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the “70” shall be revised to “50” or “90”, as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the “70” shall be reinstated. Currently, the fixed gold to silver exchange ratio is 70:1. |
4) | The Company is committed to purchase 4.5% of Stillwater palladium production until 375,000 ounces are delivered to the Company, thereafter 2.25% of Stillwater palladium production until 550,000 ounces are delivered to the Company and 1% of Stillwater palladium production thereafter for the life of mine. |
5) | To be increased to 22% once the market value of metal delivered to Wheaton, net of the per ounce cash payment, exceeds the initial upfront cash deposit. |
6) | Once the Company has received 31 million pounds of cobalt, the Company’s attributable cobalt production will be reduced to 21.2%. |
7) | To be increased to 22% once the market value of cobalt delivered to Wheaton, net of the per pound cash payment, exceeds the initial upfront cash deposit. Additionally, on each sale of cobalt, the Company is committed to pay a variable commission depending on the market price of cobalt. |
8) | Once the Company has received 150,000 ounces of gold and 120,000 ounces of platinum under the Marathon PMPA, the attributable gold and platinum production will be reduced to 67% and 15%, respectively. |
9) | Per annum the Company will purchase an amount equal to 100% of the first 1.5 million ounces of silver for which an offtaker payment is due, and 50% of any excess. |
1 |
Statements made in this section contain forward-looking information and readers are cautioned that actual outcomes may vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information. |
10) | Should the market price of silver exceed $20 per ounce, in addition to the $9.05 per ounce, the Company is committed to pay Glencore an additional amount for each ounce of silver delivered equal to 50% of the excess, to a maximum of $10 per ounce, such that when the market price of silver is $40 or above, the Company will pay Glencore $19.05 per ounce of silver delivered. |
11) | Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine. |
12) | The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter. |
13) | The Company is currently negotiating an amendment to the Minto PMPA such that the cash payment per ounce of gold delivered will be the lower of 65% of the spot price of gold and $1,250. This proposed amended pricing will end on the earlier of (i) January 27, 2023; or (ii) once 27,000 ounces of gold have been delivered to the Company. Once this proposed amended pricing ends, the cash payment per ounce of gold delivered will be the lower of 50% of the spot price of gold and $1,000. In the event that the parties are unable to finalize the terms of the proposed amendment, the production payment will remain as set out in the existing Minto PMPA, being a fixed price of $325 per ounce. |
14) | The price paid per ounce of silver delivered under the Keno Hill PMPA is between 10% of the spot price of silver when the market price of silver is at or above $23.00 per ounce, to 90% of the spot price of silver when the market price of silver is at or below $15.00 per ounce. |
15) | Copper World Complex (formerly referred to as Rosemont in this MD&A). |
16) | Terms of the agreement not yet finalized. |
17) | Once Wheaton has received 310,000 ounces of gold and 2.15 million ounces of silver under the Marmato PMPA the Company’s attributable gold and silver production will be reduced to 5.25% and 50%, respectively. |
18) | To be increased to 22% of the spot price once the market value of gold and silver delivered to the Company, net of the per ounce cash payment, exceeds the initial upfront cash deposit. |
19) | Once Wheaton has received 10 million ounces under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33% of silver production for the life of the mine. |
20) | Once the Company has received 285,000 ounces of gold under the Santo Domingo PMPA, the Company’s attributable gold production will be reduced to 67%. |
21) | Once the Company has received 90,000 ounces of gold under the Fenix PMPA, the Company attributable gold production will be reduced to 4% until 140,000 ounces have been delivered, after which the stream drops to 3.5%. |
22) | Once the Company has received 279,908 ounces of gold and 17.8 million ounces of silver under the Blackwater PMPA, the attributable gold and silver production will be reduced to 4% and 33%. |
23) | Once the Company has received 145,000 ounces of gold and 4.6 million ounces of silver under the Curipamba PMPA, the attributable gold and silver production will be reduced to 33% and 50%. |
24) | The Company is committed to purchase 4.15% of Goose gold production until 130,000 ounces are delivered to the Company, thereafter 2.15% of Goose gold production until 200,000 ounces are delivered to the Company and 1.5% of Goose gold production thereafter for the life of mine. |
25) | Once 90 million silver equivalent ounces attributable to Wheaton have been produced under the Cotabambas PMPA, the attributable production will decrease to 16.67% of gold production and 66.67% of silver production for the life of mine. |
Obligations With Scheduled Payment Dates | ||||||||||||||||||||||||||||
(in thousands) | 2022 | 2023 - 2024 |
2025 - 2026 |
After 2026 | Sub-Total |
Other Commitments |
Total | |||||||||||||||||||||
Payments for mineral stream interests |
||||||||||||||||||||||||||||
Copper World 1 |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | 231,150 | $ | 231,150 | ||||||||||||||
Loma de La Plata |
- | - | - | - | - | 32,400 | 32,400 | |||||||||||||||||||||
Marmato |
- | - | - | - | - | 122,000 | 122,000 | |||||||||||||||||||||
Santo Domingo |
- | - | - | - | - | 260,000 | 260,000 | |||||||||||||||||||||
Salobo 2 |
- | 646,000 | - | - | 646,000 | - | 646,000 | |||||||||||||||||||||
Fenix Gold |
- | - | - | - | - | 25,000 | 25,000 | |||||||||||||||||||||
Blackwater |
- | - | - | - | - | 141,000 | 141,000 | |||||||||||||||||||||
Marathon |
15,519 | - | - | - | 15,519 | 155,195 | 170,714 | |||||||||||||||||||||
Curipamba |
13,000 | - | - | - | 13,000 | 162,500 | 175,500 | |||||||||||||||||||||
Goose |
- | - | - | - | - | 125,000 | 125,000 | |||||||||||||||||||||
Payments for early deposit mineral stream interest |
||||||||||||||||||||||||||||
Toroparu 3 |
- | 138,000 | - | - | 138,000 | - | 138,000 | |||||||||||||||||||||
Cotabambas |
750 | 1,000 | - | - | 1,750 | 126,000 | 127,750 | |||||||||||||||||||||
Kutcho |
- | - | - | - | - | 58,000 | 58,000 | |||||||||||||||||||||
Leases liabilities |
448 | 1,817 | 308 | - | 2,573 | - | 2,573 | |||||||||||||||||||||
Total contractual obligations |
$ | 29,717 | $ | 786,817 | $ | 308 | $ | - | $ | 816,842 | $ | 1,438,245 | $ | 2,255,087 |
1) | Copper World Complex (formerly referred to as Rosemont in this MD&A). Figure includes contingent transaction costs of $1 million. |
2) | As more fully explained on the following page, assuming the Salobo III expansion project achieves 12 Mtpa of additional processing capacity (bringing total processing capacity at Salobo to 36 Mtpa) by the end of 2023, the Company would expect to pay an estimated expansion payment of between $550 million to $650 million. |
3) | The Company anticipates construction to begin in this period. |
1 |
The assessment by management of the expected impact of the Domestic Reassessments on the Company is “forward-looking information”. Please see “Cautionary Note Regarding Forward-Looking Statements” in the MD&A for material risks, assumptions and important disclosure associated with this information. |
● |
a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized and a deferred tax liability for all deductible and taxable temporary differences associated with right-of-use |
● |
the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date. |
i. | Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges (if any), non-cash fair value (gains) losses and other one-time (income) expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax expense (recovery) recognized in the Statements of Shareholders’ Equity and OCI, respectively. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company’s performance. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands, except for per share amounts) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net earnings |
$ | 149,074 | $ | 166,124 | $ | 306,542 | $ | 328,126 | ||||||||
Add back (deduct): |
||||||||||||||||
(Gain) loss on fair value adjustment of share purchase warrants held |
154 | 194 | 897 | 1,145 | ||||||||||||
(Gain) loss on fair value adjustment of convertible notes receivable |
- | (3,388) | 1,380 | (4,626) | ||||||||||||
Income tax expense (recovery) recognized in the Statement of Shareholders’ Equity |
(292) | (463) | 500 | 1,107 | ||||||||||||
Income tax expense (recovery) recognized in the Statement of OCI |
349 | (479) | 155 | (2,616) | ||||||||||||
Other |
- | (362) | (2,182) | (376) | ||||||||||||
Adjusted net earnings |
$ | 149,285 | $ | 161,626 | $ | 307,292 | $ | 322,760 | ||||||||
Divided by: |
||||||||||||||||
Basic weighted average number of shares outstanding |
451,524 | 450,088 | 451,221 | 449,800 | ||||||||||||
Diluted weighted average number of shares outstanding |
452,359 | 451,203 | 452,123 | 450,869 | ||||||||||||
Equals: |
||||||||||||||||
Adjusted earnings per share - basic |
$ | 0.331 | $ | 0.359 | $ | 0.681 | $ | 0.718 | ||||||||
Adjusted earnings per share - diluted |
$ | 0.330 | $ | 0.358 | $ | 0.680 | $ | 0.716 |
ii. | Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metal mining industry who present results on a similar basis. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands, except for per share amounts) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Cash generated by operating activities |
$ | 206,359 | $ | 216,415 | $ | 416,899 | $ | 448,569 | ||||||||
Divided by: |
||||||||||||||||
Basic weighted average number of shares outstanding |
451,524 | 450,088 | 451,221 | 449,800 | ||||||||||||
Diluted weighted average number of shares outstanding |
452,359 | 451,203 | 452,123 | 450,869 | ||||||||||||
Equals: |
||||||||||||||||
Operating cash flow per share - basic |
$ | 0.457 | $ | 0.481 | $ | 0.924 | $ | 0.997 | ||||||||
Operating cash flow per share - diluted |
$ | 0.456 | $ | 0.480 | $ | 0.922 | $ | 0.995 |
iii. | Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is calculated by dividing the total cost of sales, less depletion, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance measure but does not have any standardized meaning prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management and certain investors use this information to evaluate the Company’s performance and ability to generate cash flow. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Cost of sales |
$ | 140,625 | $ | 148,753 | $ | 268,020 | $ | 297,710 | ||||||||
Less: depletion |
(65,682) | (70,308) | (123,084) | (140,482) | ||||||||||||
Cash cost of sales |
$ | 74,943 | $ | 78,445 | $ | 144,936 | $ | 157,228 | ||||||||
Cash cost of sales is comprised of: |
||||||||||||||||
Total cash cost of gold sold |
$ | 39,189 | $ | 40,543 | $ | 76,321 | $ | 74,318 | ||||||||
Total cash cost of silver sold |
32,834 | 34,216 | 61,149 | 76,375 | ||||||||||||
Total cash cost of palladium sold |
1,378 | 1,946 | 2,980 | 4,137 | ||||||||||||
Total cash cost of cobalt sold |
1,542 | 1,740 | 4,486 | 2,398 | ||||||||||||
Total cash cost of sales |
$ | 74,943 | $ | 78,445 | $ | 144,936 | $ | 157,228 | ||||||||
Divided by: |
||||||||||||||||
Total gold ounces sold |
84,337 | 90,090 | 162,238 | 165,194 | ||||||||||||
Total silver ounces sold |
5,848 | 5,600 | 11,401 | 12,257 | ||||||||||||
Total palladium ounces sold |
3,378 | 3,869 | 7,453 | 9,000 | ||||||||||||
Total cobalt pounds sold |
225 | 395 | 736 | 527 | ||||||||||||
Equals: |
||||||||||||||||
Average cash cost of gold (per ounce) |
$ | 465 | $ | 450 | $ | 470 | $ | 450 | ||||||||
Average cash cost of silver (per ounce) |
$ | 5.61 | $ | 6.11 | $ | 5.36 | $ | 6.23 | ||||||||
Average cash cost of palladium (per ounce) |
$ | 408 | $ | 503 | $ | 400 | $ | 460 | ||||||||
Average cash cost of cobalt (per pound) |
$ | 6.86 | $ | 4.41 | $ | 6.09 | $ | 4.55 |
iv. | Cash operating margin is calculated by subtracting the average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis from the average realized selling price of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis. The Company presents cash operating margin as management and certain investors use this information to evaluate the Company’s performance in comparison to other companies in the precious metal mining industry who present results on a similar basis as well as to evaluate the Company’s ability to generate cash flow. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands, except for gold and palladium ounces sold and per unit amounts) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Total sales: |
||||||||||||||||
Gold |
$ | 157,842 | $ | 162,293 | $ | 303,517 | $ | 297,319 | ||||||||
Silver |
$ | 130,228 | $ | 149,455 | $ | 264,560 | $ | 323,337 | ||||||||
Palladium |
$ | 7,203 | $ | 10,822 | $ | 16,736 | $ | 23,097 | ||||||||
Cobalt |
$ | 7,649 | $ | 7,823 | $ | 25,353 | $ | 10,759 | ||||||||
Divided by: |
||||||||||||||||
Total gold ounces sold |
84,337 | 90,090 | 162,238 | 165,194 | ||||||||||||
Total silver ounces sold |
5,848 | 5,600 | 11,401 | 12,257 | ||||||||||||
Total palladium ounces sold |
3,378 | 3,869 | 7,453 | 9,000 | ||||||||||||
Total cobalt pounds sold |
225 | 395 | 736 | 527 | ||||||||||||
Equals: |
||||||||||||||||
Average realized price of gold (per ounce) |
$ | 1,872 | $ | 1,801 | $ | 1,871 | $ | 1,800 | ||||||||
Average realized price of silver (per ounce) |
$ | 22.27 | $ | 26.69 | $ | 23.21 | $ | 26.38 | ||||||||
Average realized price of palladium (per ounce) |
$ | 2,132 | $ | 2,797 | $ | 2,246 | $ | 2,566 | ||||||||
Average realized price of cobalt (per pound) |
$ | 34.01 | $ | 19.82 | $ | 34.43 | $ | 20.42 | ||||||||
Less: |
||||||||||||||||
Average cash cost of gold 1 (per ounce) |
$ | (465) | $ | (450) | $ | (470) | $ | (450) | ||||||||
Average cash cost of silver 1 (per ounce) |
$ | (5.61) | $ | (6.11) | $ | (5.36) | $ | (6.23) | ||||||||
Average cash cost of palladium 1 (per ounce) |
$ | (408) | $ | (503) | $ | (400) | $ | (460) | ||||||||
Average cash cost of cobalt 1 (per pound) |
$ | (6.86) | $ | (4.41) | $ | (6.09) | $ | (4.55) | ||||||||
Equals: |
||||||||||||||||
Cash operating margin per gold ounce sold |
$ | 1,407 | $ | 1,351 | $ | 1,401 | $ | 1,350 | ||||||||
As a percentage of realized price of gold |
75% | 75% | 75% | 75% | ||||||||||||
Cash operating margin per silver ounce sold |
$ | 16.66 | $ | 20.58 | $ | 17.85 | $ | 20.15 | ||||||||
As a percentage of realized price of silver |
75% | 77% | 77% | 76% | ||||||||||||
Cash operating margin per palladium ounce sold |
$ | 1,724 | $ | 2,294 | $ | 1,846 | $ | 2,106 | ||||||||
As a percentage of realized price of palladium |
81% | 82% | 82% | 82% | ||||||||||||
Cash operating margin per cobalt pound sold |
$ | 27.15 | $ | 15.41 | $ | 28.34 | $ | 15.87 | ||||||||
As a percentage of realized price of cobalt |
80% | 78% | 82% | 78% |
1) | Refer to discussion on non-IFRS measure (iii) on page 38 of this MD&A. |
● |
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; |
● |
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of the Company are being made only in accordance with authorizations of the Company’s management and directors; and, |
● |
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the annual financial statements or interim financial statements. |
December 31, 2021 (6) |
December 31, 2020 |
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Proven |
Probable |
Proven & Probable |
Proven & Probable |
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Tonnage | Grade | Contained | Tonnage | Grade | Contained | Tonnage | Grade | Contained | Process Recovery % (7) |
Tonnage | Grade | Contained | ||||||||||||||||||||||||||||||||||||||||||||
Asset |
Interest |
Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | |||||||||||||||||||||||||||||||||||||||||||
Gold |
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Salobo (10) |
75% | 173.3 | 0.40 | 2.23 | 676.9 | 0.34 | 7.38 | 850.1 | 0.35 | 9.60 | 76% | 867.8 | 0.31 | 8.59 | ||||||||||||||||||||||||||||||||||||||||||
Stillwater (13) |
100% | 8.2 | 0.41 | 0.11 | 60.1 | 0.33 | 0.63 | 68.3 | 0.34 | 0.74 | 69% | 58.2 | 0.39 | 0.73 | ||||||||||||||||||||||||||||||||||||||||||
Constancia |
50% | 231.3 | 0.07 | 0.50 | 29.2 | 0.05 | 0.05 | 260.5 | 0.07 | 0.55 | 61% | 266.3 | 0.07 | 0.56 | ||||||||||||||||||||||||||||||||||||||||||
Sudbury (11) |
70% | 11.4 | 0.46 | 0.17 | 11.4 | 0.45 | 0.17 | 22.8 | 0.45 | 0.33 | 75% | 23.8 | 0.45 | 0.34 | ||||||||||||||||||||||||||||||||||||||||||
San Dimas (14) |
25% | 0.6 | 4.42 | 0.08 | 0.4 | 3.02 | 0.04 | 1.0 | |
3.87 |
|
0.12 | 95% | 1.0 | 3.77 | 0.12 | ||||||||||||||||||||||||||||||||||||||||
Marmato (11,15) |
10.5% | 0.1 | 5.14 | 0.01 | 2.0 | 3.11 | 0.20 | 2.1 | 3.19 | 0.21 | 90% | 1.3 | 3.19 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||
777 |
50% | 0.2 | 1.78 | 0.013 | - | - | - | 0.2 | 1.78 | 0.01 | 58% | 0.8 | 2.13 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
Minto |
100% | - | - | - | - | - | - | - | - | - | 75% | 2.4 | 0.60 | 0.05 | ||||||||||||||||||||||||||||||||||||||||||
Blackwater (11,28) |
8% | 19.3 | 0.74 | 0.46 | 0.5 | 0.80 | 0.01 | 19.8 | 0.74 | 0.47 | 91% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Toroparu (12,16) |
10% | 3.0 | 1.10 | 0.10 | 9.7 | 0.98 | 0.31 | 12.7 | 1.00 | 0.41 | 89% | 12.7 | 1.00 | 0.41 | ||||||||||||||||||||||||||||||||||||||||||
Santo Domingo (11,26) |
100% | 65.4 | 0.08 | 0.17 | 326.9 | 0.03 | 0.34 | 392.3 | 0.04 | 0.51 | 61% | 392.3 | 0.04 | 0.51 | ||||||||||||||||||||||||||||||||||||||||||
Marathon (11,29) |
100% | 85.1 | 0.07 | 0.19 | 32.6 | 0.06 | 0.06 | 117.7 | 0.07 | 0.26 | 71% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Curipamba (11,30) |
50% | 1.6 | 2.83 | 0.14 | 1.7 | 2.23 | 0.12 | 3.2 | 2.52 | 0.26 | 53% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Goose (11,31) |
4.15% | 0.3 | 5.54 | 0.06 | 0.4 | 6.29 | 0.09 | 0.8 | 5.97 | 0.14 | 93% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Kutcho (12) |
100% | 6.8 | 0.37 | 0.08 | 10.6 | 0.39 | 0.13 | 17.4 | 0.38 | 0.21 | 41% | 10.4 | 0.37 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||
Fenix (11,27) |
6% | 3.1 | 0.51 | 0.05 | 3.8 | 0.47 | 0.06 | 6.9 | 0.49 | 0.11 | 75% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Metates Royalty (17) |
0.5% | 1.4 | 0.70 | 0.03 | 4.1 | 0.45 | 0.06 | 5.5 | 0.52 | 0.09 | 91% | 5.5 | 0.52 | 0.09 | ||||||||||||||||||||||||||||||||||||||||||
Total Gold |
4.41 |
9.63 |
14.04 |
11.71 |
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Silver |
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Peñasquito (10) |
25% | 28.8 | 38.3 | 35.4 | 61.8 | 31.8 | 63.1 | 90.5 | 33.8 | 98.5 | 87% | 97.0 | 34.1 | 106.4 | ||||||||||||||||||||||||||||||||||||||||||
Constancia |
100% | 462.6 | 3.1 | 45.8 | 58.4 | 3.1 | 5.9 | 521.0 | 3.1 | 51.7 | 70% | 532.5 | 3.0 | 52.0 | ||||||||||||||||||||||||||||||||||||||||||
Antamina (11,18) |
33.75% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
44.9 | 7.1 | 10.2 | 27.6 | 8.4 | 7.5 | 72.5 | 7.6 | 17.7 | 71% | 78.6 | 7.2 | 18.3 | |||||||||||||||||||||||||||||||||||||||||||
Copper-Zinc |
17.9 | 13.1 | 7.5 | 23.0 | 14.6 | 10.8 | 40.9 | 14.0 | 18.4 | 71% | 50.3 | 12.9 | 20.8 | |||||||||||||||||||||||||||||||||||||||||||
Zinkgruvan |
100% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Zinc |
3.1 | 80.0 | 7.8 | 7.2 | 88.0 | 20.4 | 10.3 | 85.6 | 28.3 | 83% | 8.8 | 81.4 | 23.0 | |||||||||||||||||||||||||||||||||||||||||||
Copper |
2.0 | 32.0 | 2.1 | 0.2 | 35.0 | 0.2 | 2.2 | 32.3 | 2.3 | 70% | 3.1 | 30.3 | 3.0 | |||||||||||||||||||||||||||||||||||||||||||
Neves-Corvo |
100% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
4.4 | 34.0 | 4.8 | 20.7 | 30.8 | 20.5 | 25.1 | 31.4 | 25.3 | 24% | 29.7 | 30.2 | 28.8 | |||||||||||||||||||||||||||||||||||||||||||
Zinc |
3.8 | 69.0 | 8.4 | 21.0 | 62.0 | 41.8 | 24.8 | 63.1 | 50.2 | 30% | 30.1 | 62.2 | 60.3 | |||||||||||||||||||||||||||||||||||||||||||
Yauliyacu (19) |
100% | 1.1 | 67.2 | 2.3 | 7.0 | 86.7 | 19.6 | 8.1 | 84.1 | 22.0 | 83% | 8.2 | 97.4 | 25.6 | ||||||||||||||||||||||||||||||||||||||||||
Aljustrel (20) |
100% | 9.7 | 47.4 | 14.8 | 27.4 | 46.9 | 41.4 | 37.2 | 47.1 | 56.2 | 26% | 37.2 | 47.1 | 56.2 | ||||||||||||||||||||||||||||||||||||||||||
San Dimas (14) |
25% | 0.6 | 348.0 | 6.5 | 0.4 | 264.7 | 3.2 | 1.0 | 315.3 | 9.7 | 94% | 1.0 | 329.7 | 10.6 | ||||||||||||||||||||||||||||||||||||||||||
Cozamin (11,21) |
50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
- | - | - | 5.4 | 45.6 | 8.0 | 5.4 | 45.6 | 8.0 | 86% | 6.3 | 44.4 | 9.0 | |||||||||||||||||||||||||||||||||||||||||||
Zinc |
- | - | - | 0.7 | 44.5 | 1.0 | 0.7 | 44.5 | 1.0 | 86% | 0.7 | 44.3 | 1.1 | |||||||||||||||||||||||||||||||||||||||||||
Keno Hill |
25% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underground |
- | - | - | 0.4 | 804.3 | 9.3 | 0.4 | 804.3 | 9.3 | 96% | 0.3 | 804.5 | 7.6 | |||||||||||||||||||||||||||||||||||||||||||
Los Filos |
100% | 26.2 | 3.5 | 3.0 | 78.1 | 10.2 | 25.5 | 104.2 | 8.5 | 28.5 | 10% | 104.2 | 8.5 | 28.5 | ||||||||||||||||||||||||||||||||||||||||||
Marmato (11,15) |
100% | 0.8 | 22.1 | 0.6 | 18.9 | 6.2 | 3.8 | 19.7 | 6.9 | 4.4 | 34% | 19.7 | 6.9 | 4.4 | ||||||||||||||||||||||||||||||||||||||||||
777 |
100% | 0.5 | 32.2 | 0.5 | - | - | - | 0.5 | 32.2 | 0.5 | 45% | 1.5 | 31.0 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||
Minto |
100% | - | - | - | - | - | - | - | - | - | 45% | 2.4 | 5.6 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||
Stratoni |
100% | - | - | - | - | - | - | - | - | - | 45% | 0.6 | 148.0 | 2.7 | ||||||||||||||||||||||||||||||||||||||||||
Copper World Complex (22) |
100% | 408.6 | 5.0 | 66.2 | 108.0 | 3.0 | 10.4 | 516.6 | 4.6 | 76.7 | 76% | 516.6 | 4.6 | 76.7 | ||||||||||||||||||||||||||||||||||||||||||
Blackwater (11,28) |
50% | 161.9 | 5.8 | 30.1 | 4.6 | 5.8 | 0.9 | 166.5 | 5.8 | 31.0 | 61% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Kutcho (12) |
100% | 6.8 | 24.5 | 5.4 | 10.6 | 30.1 | 10.2 | 17.4 | 27.9 | 15.6 | 46% | 9.9 | 34.6 | 11.0 | ||||||||||||||||||||||||||||||||||||||||||
Curipamba (11,30) |
75% | 2.4 | 41.4 | 3.1 | 2.5 | 49.7 | 4.0 | 4.9 | 45.7 | 7.1 | 63% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Metates Royalty (17) |
0.5% | 1.4 | 17.2 | 0.8 | 4.1 | 13.1 | 1.7 | 5.5 | 14.2 | 2.5 | 66% | 5.5 | 14.2 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||
Total Silver |
255.4 |
309.2 |
564.6 |
550.3 |
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Palladium |
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Stillwater (13) |
4.5% | 0.2 | 12.0 | 0.09 | 1.8 | 9.4 | 0.53 | 2.0 | 9.7 | 0.63 | 90% | 1.8 | 11.2 | 0.64 | ||||||||||||||||||||||||||||||||||||||||||
Total Palladium |
0.09 |
0.53 |
0.63 |
0.64 |
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Platinum |
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Marathon (11,29) |
22% | 18.7 | 0.2 | 0.13 | 7.2 | 0.2 | 0.04 | 25.9 | 0.2 | 0.17 | 84% | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total Platinum |
0.13 |
0.04 |
0.17 |
- | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Cobalt |
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Voisey’s Bay (11,23) |
42.4% | 4.9 | 0.13 | 13.5 | 6.5 | 0.12 | 17.8 | 11.4 | 0.12 | 31.4 | 84% | 12.1 | 0.12 | 31.7 | ||||||||||||||||||||||||||||||||||||||||||
Total Cobalt |
13.5 |
17.8 |
31.4 |
31.7 |
December 31, 2021 (6 ) |
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Measured |
Indicated |
Measured & Indicated |
Inferred |
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Tonnage | Grade | Contained | Tonnage | Grade | Contained | Tonnage | Grade | Contained | Tonnage | Grade | Contained | |||||||||||||||||||||||||||||||||||||||||
Interest |
Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | Mt | g/t / % | Moz / Mlbs | ||||||||||||||||||||||||||||||||||||||||
Gold |
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Salobo (10) |
75 | % | 22.7 | 0.17 | 0.12 | 329.6 | 0.25 | 2.65 | 352.3 | 0.24 | 2.77 | 201.7 | 0.29 | 1.88 | ||||||||||||||||||||||||||||||||||||||
Stillwater (13) |
100 | % | 15.1 | 0.40 | 0.19 | 19.9 | 0.39 | 0.25 | 35.0 | 0.39 | 0.44 | 113.6 | 0.34 | 1.24 | ||||||||||||||||||||||||||||||||||||||
Constancia |
50 | % | 66.5 | 0.06 | 0.12 | 59.9 | 0.04 | 0.08 | 126.4 | 0.05 | 0.19 | 32.1 | 0.09 | 0.09 | ||||||||||||||||||||||||||||||||||||||
Sudbury (11) |
70 | % | 0.9 | 0.30 | 0.01 | 6.0 | 0.63 | 0.12 | 6.9 | 0.59 | 0.13 | 2.0 | 0.54 | 0.03 | ||||||||||||||||||||||||||||||||||||||
San Dimas (14) |
25 | % | 0.1 | 5.95 | 0.02 | 0.1 | 2.87 | 0.01 | 0.3 | 4.27 | 0.04 | 1.0 | 3.54 | 0.12 | ||||||||||||||||||||||||||||||||||||||
Marmato (11,15) |
10.5 | % | 0.2 | 5.95 | 0.03 | 2.7 | 2.77 | 0.24 | 2.8 | 2.94 | 0.27 | 1.6 | 2.59 | 0.13 | ||||||||||||||||||||||||||||||||||||||
Minto |
100 | % | - | - | - | 11.1 | 0.53 | 0.19 | 11.1 | 0.53 | 0.19 | 13.0 | 0.49 | 0.21 | ||||||||||||||||||||||||||||||||||||||
Blackwater (11,28) |
8 | % | 4.1 | 0.35 | 0.05 | 6.4 | 0.49 | 0.10 | 10.5 | 0.44 | 0.15 | 0.7 | 0.45 | 0.01 | ||||||||||||||||||||||||||||||||||||||
Toroparu (12,16) |
10 | % | 3.5 | 2.33 | 0.26 | 2.3 | 2.33 | 0.17 | 5.8 | 2.33 | 0.43 | 1.4 | 2.74 | 0.12 | ||||||||||||||||||||||||||||||||||||||
Santo Domingo (11,26) |
100 | % | 1.4 | 0.05 | 0.002 | 120.1 | 0.03 | 0.11 | 121.5 | 0.03 | 0.12 | 31.8 | 0.02 | 0.03 | ||||||||||||||||||||||||||||||||||||||
Marathon (11,29) |
100 | % | 19.4 | 0.08 | 0.05 | 66.6 | 0.06 | 0.13 | 86.0 | 0.07 | 0.18 | 22.7 | 0.05 | 0.04 | ||||||||||||||||||||||||||||||||||||||
Curipamba (11,30) |
50 | % | - | - | - | 1.2 | 1.63 | 0.06 | 1.2 | 1.63 | 0.06 | 0.4 | 1.62 | 0.02 | ||||||||||||||||||||||||||||||||||||||
Goose (11,31) |
4.15 | % | 0.04 | 4.94 | 0.01 | 0.1 | 5.18 | 0.02 | 0.2 | 5.13 | 0.03 | 0.2 | 6.64 | 0.04 | ||||||||||||||||||||||||||||||||||||||
Kutcho (12) |
100 | % | 0.4 | 0.20 | 0.003 | 5.0 | 0.38 | 0.06 | 5.4 | 0.37 | 0.06 | 12.9 | 0.25 | 0.10 | ||||||||||||||||||||||||||||||||||||||
Fenix (11,27) |
6 | % | 2.9 | 0.34 | 0.03 | 9.3 | 0.33 | 0.10 | 12.3 | 0.33 | 0.13 | 4.8 | 0.32 | 0.05 | ||||||||||||||||||||||||||||||||||||||
Cotabambas (12,24) |
25 | % | - | - | - | 29.3 | 0.23 | 0.22 | 29.3 | 0.23 | 0.22 | 151.3 | 0.17 | 0.84 | ||||||||||||||||||||||||||||||||||||||
Brewery Creek Royalty (25) |
2 | % | 0.3 | 1.06 | 0.01 | 0.5 | 1.02 | 0.02 | 0.8 | 1.03 | 0.03 | 1.0 | 0.88 | 0.03 | ||||||||||||||||||||||||||||||||||||||
Metates Royalty (17) |
0.5 | % | 0.3 | 0.23 | 0.002 | 0.7 | 0.23 | 0.01 | 1.0 | 0.23 | 0.01 | 0.3 | 0.32 | 0.003 | ||||||||||||||||||||||||||||||||||||||
Total Gold |
0.90 |
4.54 |
5.44 |
4.98 |
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Silver |
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Peñasquito (10) |
25 | % | 7.9 | 25.7 | 6.5 | 44.2 | 26.4 | 37.4 | 52.0 | 26.3 | 43.9 | 22.5 | 28.0 | 20.2 | ||||||||||||||||||||||||||||||||||||||
Constancia |
100 | % | 133.0 | 2.3 | 9.9 | 119.7 | 2.1 | 8.2 | 252.7 | 2.2 | 18.1 | 64.3 | 3.5 | 7.3 | ||||||||||||||||||||||||||||||||||||||
Antamina (11,18) |
33.75 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
28.5 | 7.2 | 6.6 | 107.8 | 8.5 | 29.4 | 136.2 | 8.2 | 36.0 | 218.2 | 9.0 | 63.1 | ||||||||||||||||||||||||||||||||||||||||
Copper-Zinc |
12.2 | 20.7 | 8.1 | 50.5 | 18.1 | 29.4 | 62.7 | 18.6 | 37.5 | 100.5 | 15.5 | 50.1 | ||||||||||||||||||||||||||||||||||||||||
Zinkgruvan |
100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Zinc |
3.1 | 58.2 | 5.8 | 8.2 | 60.0 | 15.9 | 11.3 | 59.5 | 21.7 | 14.2 | 81.0 | 37.0 | ||||||||||||||||||||||||||||||||||||||||
Copper |
1.8 | 34.8 | 2.0 | 0.3 | 34.7 | 0.4 | 2.1 | 34.8 | 2.3 | 0.2 | 27.0 | 0.2 | ||||||||||||||||||||||||||||||||||||||||
Neves-Corvo |
100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
4.8 | 51.3 | 7.9 | 31.2 | 50.7 | 50.9 | 36.0 | 50.8 | 58.8 | 12.7 | 34.0 | 13.9 | ||||||||||||||||||||||||||||||||||||||||
Zinc |
7.0 | 62.6 | 14.0 | 37.7 | 58.8 | 71.2 | 44.6 | 59.4 | 85.3 | 4.1 | 64.0 | 8.4 | ||||||||||||||||||||||||||||||||||||||||
Yauliyacu (19) |
100 | % | 5.6 | 119.7 | 21.6 | 7.5 | 131.2 | 31.7 | 13.1 | 126.3 | 53.3 | 12.9 | 259.9 | 107.6 | ||||||||||||||||||||||||||||||||||||||
San Dimas (14) |
25 | % | 0.1 | 413.8 | 1.6 | 0.1 | 252.3 | 1.1 | 0.3 | 325.7 | 2.7 | 1.0 | 310.4 | 10.2 | ||||||||||||||||||||||||||||||||||||||
Aljustrel (20) |
100 | % | 4.3 | 67.3 | 9.3 | 3.9 | 58.9 | 7.4 | 8.2 | 63.3 | 16.7 | 15.7 | 46.2 | 23.3 | ||||||||||||||||||||||||||||||||||||||
Cozamin (11,21) |
50 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Copper |
0.2 | 53.3 | 0.3 | 4.8 | 35.1 | 5.4 | 4.9 | 35.7 | 5.7 | 2.4 | 39.9 | 3.1 | ||||||||||||||||||||||||||||||||||||||||
Zinc |
- | - | - | 1.8 | 32.4 | 1.9 | 1.8 | 32.4 | 1.9 | 2.2 | 38.0 | 2.6 | ||||||||||||||||||||||||||||||||||||||||
Keno Hill |
25 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Underground |
- | - | - | 0.8 | 490.0 | 12.1 | 0.8 | 490.0 | 12.1 | 0.5 | 494.0 | 8.2 | ||||||||||||||||||||||||||||||||||||||||
Elsa Tailings |
- | - | - | 0.6 | 119.0 | 2.4 | 0.6 | 119.0 | 2.4 | - | - | - | ||||||||||||||||||||||||||||||||||||||||
Los Filos |
100 | % | 88.5 | 5.3 | 15.2 | 133.7 | 8.1 | 35.0 | 222.2 | 7.0 | 50.2 | 98.2 | 6.1 | 19.4 | ||||||||||||||||||||||||||||||||||||||
Marmato (11,15) |
100 | % | 1.3 | 27.9 | 1.2 | 22.8 | 6.3 | 4.6 | 24.1 | 7.5 | 5.8 | 15.4 | 3.3 | 1.6 | ||||||||||||||||||||||||||||||||||||||
Minto |
100 | % | - | - | - | 11.1 | 4.7 | 1.7 | 11.1 | 4.7 | 1.7 | 13.0 | 4.5 | 1.9 | ||||||||||||||||||||||||||||||||||||||
Stratoni |
100 | % | - | - | - | 1.4 | 153.0 | 6.6 | 1.4 | 153.0 | 6.6 | 1.7 | 162.2 | 8.9 | ||||||||||||||||||||||||||||||||||||||
Copper World Complex (22) |
100 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Rosemont |
112.2 | 3.9 | 14.1 | 358.0 | 2.7 | 31.5 | 470.2 | 3.0 | 45.6 | 68.7 | 1.7 | 3.7 | ||||||||||||||||||||||||||||||||||||||||
Copper World |
- | - | - | 180.0 | 2.7 | 15.6 | 180.0 | 2.7 | 15.6 | 91.0 | 3.8 | 11.1 | ||||||||||||||||||||||||||||||||||||||||
Blackwater (11,28) |
50 | % | 33.7 | 4.7 | 5.1 | 52.9 | 8.7 | 14.8 | 86.6 | 7.1 | 19.9 | 5.6 | 12.8 | 2.3 | ||||||||||||||||||||||||||||||||||||||
Kutcho (12) |
100 | % | 0.4 | 28.0 | 0.4 | 5.0 | 25.7 | 4.1 | 5.4 | 25.9 | 4.5 | 12.9 | 20.0 | 8.3 | ||||||||||||||||||||||||||||||||||||||
Curipamba (11,30) |
75 | % | - | - | - | 1.8 | 38.4 | 2.2 | 1.8 | 38.4 | 2.2 | 0.7 | 31.6 | 0.7 | ||||||||||||||||||||||||||||||||||||||
Pascua-Lama |
25 | % | 10.7 | 57.2 | 19.7 | 97.9 | 52.2 | 164.4 | 108.6 | 52.7 | 184.1 | 3.8 | 17.8 | 2.2 | ||||||||||||||||||||||||||||||||||||||
Loma de La Plata |
12.5 | % | - | - | - | 3.6 | 169.0 | 19.8 | 3.6 | 169.0 | 19.8 | 0.2 | 76.0 | 0.4 | ||||||||||||||||||||||||||||||||||||||
Toroparu (12,16) |
50 | % | 55.4 | 1.1 | 2.0 | 37.0 | 0.8 | 1.0 | 92.5 | 1.0 | 3.0 | 6.9 | 0.4 | 0.1 | ||||||||||||||||||||||||||||||||||||||
Cotabambas (12,24) |
100 | % | - | - | - | 117.1 | 2.7 | 10.3 | 117.1 | 2.7 | 10.3 | 605.3 | 2.3 | 45.4 | ||||||||||||||||||||||||||||||||||||||
Metates Royalty (17) |
0.5 | % | 0.3 | 6.2 | 0.1 | 0.7 | 6.2 | 0.1 | 1.0 | 6.2 | 0.2 | 0.3 | 9.0 | 0.1 | ||||||||||||||||||||||||||||||||||||||
Total Silver |
151.1 |
616.7 |
767.8 |
461.1 |
||||||||||||||||||||||||||||||||||||||||||||||||
Palladium |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Stillwater (13) |
4.5 | % | 0.15 | 11.2 | 0.05 | 0.2 | 10.7 | 0.07 | 0.4 | 10.9 | 0.12 | 1.1 | 9.5 | 0.35 | ||||||||||||||||||||||||||||||||||||||
Total Palladium |
0.05 |
0.07 |
0.12 |
0.35 |
||||||||||||||||||||||||||||||||||||||||||||||||
Platinum |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Marathon (11,29) |
22.0 | % | 4.39 | 0.2 | 0.03 | 15.0 | 0.1 | 0.07 | 19.4 | 0.2 | 0.10 | 5.1 | 0.1 | 0.02 | ||||||||||||||||||||||||||||||||||||||
Total Platinum |
0.03 |
0.07 |
0.10 |
0.02 |
||||||||||||||||||||||||||||||||||||||||||||||||
Cobalt |
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Voisey’s Bay (11,23) |
42.4 | % | 1.7 | 0.04 | 1.5 | - | - | - | 1.7 | 0.04 | 1.5 | 2.5 | 0.12 | 6.8 | ||||||||||||||||||||||||||||||||||||||
Total Cobalt |
1.5 |
- |
1.5 |
6.8 |
1. | All Mineral Reserves and Mineral Resources have been estimated in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards for Mineral Resources and Mineral Reserves and National Instrument 43-101 – Standards for Disclosure for Mineral Projects (“NI 43-101”), or the 2012 Australasian Joint Ore Reserves Committee (JORC) Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. |
2. | Mineral Reserves and Mineral Resources are reported above in millions of metric tonnes (“Mt”), grams per metric tonne (“g/t”) for gold, silver, palladium and platinum, percent (“%”) for cobalt, millions of ounces (“Moz”) for gold, silver, palladium and platinum and millions of pounds (“Mlbs”) for cobalt. |
3. | Qualified persons (“QPs”), as defined by the NI 43-101, for the technical information contained in this document (including the Mineral Reserve and Mineral Resource estimates) are: |
a. | Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); and |
b. | Ryan Ulansky, M.A.Sc., P.Eng. (Vice President, Engineering), |
4. | The Mineral Resources reported in the above tables are exclusive of Mineral Reserves. The Cozamin mine, San Dimas mine, Minto mine, Neves-Corvo mine, Zinkgruvan mine Keno Hill mines, Aljustrel mines, Santo Domingo project, Blackwater project, Kutcho project, Marathon project, Fenix project, Curipamba project, Goose project and Toroparu project (gold only) report Mineral Resources inclusive of Mineral Reserves. The Company’s QPs have made the exclusive Mineral Resource estimates for these mines based on average mine recoveries and dilution. |
5. | Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. |
6. | Other than as detailed below, Mineral Reserves and Mineral Resources are reported as of December 31, 2021 based on information available to the Company as of the date of this document, and therefore will not reflect updates, if any, after such date. |
a. | Mineral Resources for Aljustrel’s Feitais mine are reported as of July 2020, Moinho & St João mines as of August 2020 and the Estação project as of July 2018. |
b. | Mineral Resources for the Blackwater project are reported as of May 5, 2020 and Mineral Reserves as of September 10, 2021. |
c. | Mineral Resources for the Brewery Creek project are reported as of January 18, 2022. |
d. | Mineral Resources for the Cotabambas project are reported as of June 20, 2013. |
e. | Mineral Resources for the Curipamba project are reported as of October 26, 2021 and Mineral Reserves as of October 22, 2021. |
f. | Mineral Resources and Mineral Reserves for the Fenix project are reported as of August 15, 2019. |
g. | Mineral Resources for the Goose project are reported as of December 31, 2020 and Mineral Reserves as of January 15, 2021. |
h. | Mineral Resources for Keno Hill’s Elsa Tailings project are reported as of April 22, 2010, Bellekeno mine Indicated Mineral Resources as of January 1, 2021, Mineral Resources for the Lucky Queen, Flame & Moth and Onek mines as of January 3, 2017 and Bermingham mine as of November 30, 2021. Mineral Reserves are reported as of May 26, 2021. |
i. | Mineral Resources for the Kutcho project are reported as of July 20, 2021 and Mineral Reserves are reported as of November 8, 2021. |
j. | Mineral Resources for the Loma de La Plata project are reported as of May 20, 2009. |
k. | Mineral Resources and Mineral Reserves for the Los Filos mine are reported as of October 31, 2018. |
l. | Mineral Resources for the Marathon project are reported as of June 30, 2020 and Mineral Reserves as of September 15, 2020. |
m. | Mineral Resources Marmato mine are reported as of June 30, 2021 and Mineral Reserves as of March 17, 2020. |
n. | Mineral Resources Metates royalty are reported as of May 18, 2021 and Mineral Reserves as of April 29, 2016. |
o. | Mineral Resources for the Minto mine are reported as of March 31, 2021. |
p. | Mineral Resources and Mineral Reserves for the Neves-Corvo and Zinkgruvan mines are reported as of June 30, 2021. |
q. | Mineral Resources and Mineral Reserves for the Copper World Complex (formerly referred to as Rosemont in this MD&A) are reported as of March 30, 2017 and Mineral Resources for Copper World as of December 1, 2021. |
r. | Mineral Resources for the Santo Domingo project are reported as of February 13, 2020 and Mineral Reserves as of November 14, 2018. |
s. | Mineral Resources and Mineral Reserves for the Stratoni mine are reported as of September 30, 2021. |
t. | Mineral Resources for the Toroparu project are reported as of November 1, 2021 and Mineral Reserves are reported as of March 31, 2013. |
7. | Process recoveries are the average percentage of gold, silver, palladium, platinum, or cobalt in a saleable product (doré or concentrate) recovered from mined ore at the applicable site process plants as reported by the operators. |
8. | Mineral Reserves are estimated using appropriate process and mine recovery rates, dilution, operating costs and the following commodity prices: |
a. | Aljustrel mine – 3.5% zinc cut-off for the Feitais, Moinho and St João mines and 3.0% zinc cut-off for the Estação project. |
b. | Antamina mine - $6,000 per hour of mill operation cut-off assuming $3.03 per pound copper, $1.07 per pound zinc, $9.40 per pound molybdenum and $18.32 per ounce silver. |
c. | Blackwater project – CAD $13.00 per tonne NSR cut-off assuming $1,400 per ounce gold and $15.00 per ounce silver. |
d. | Constancia mine – NSR cut-off of $6.40 per tonne assuming $1,500 per ounce gold, $20.00 per ounce silver, $3.45 per pound copper and $11.00 per pound molybdenum. |
e. | Copper World Complex, Rosemont project - $6.00 per ton NSR cut-off assuming $18.00 per ounce silver, $3.15 per pound copper and $11.00 per pound molybdenum. |
f. | Cozamin mine - NSR cut-offs of $48.04 per tonne for conventionally backfilled zones for 2020-2022, $51.12 per tonne for conventionally backfilled zones for 2023 and onward, $56.51 per tonne for paste backfilled zones of Vein 10 and $56.12 per tonne for paste backfilled zones of Vein 20, all assuming $2.75 per pound copper, $17.00 per ounce silver, $0.90 per pound lead and $1.00 per pound zinc. |
g. | Curipamba project - NSR cut-off of $32.99 per tonne assuming $1,630 per ounce gold, $21 per ounce silver, $3.31 per pound copper, $0.92 per pound lead and $1.16 per pound zinc. |
h. | Fenix project – 0.24 grams per tonne gold cut-off assuming $1.250 per ounce gold. |
i. | Goose project: |
i. | Umwelt – 1.72 grams per tonne for open pit and 3.9 grams per tonne for underground. |
ii. | Llama – 1.74 grams per tonne for open pit and 4.1 grams per tonne for underground. |
iii. | Goose Main – 1.70 grams per tonne for open pit and 4.1 grams per tonne for underground. |
iv. | Echo – 1.60 grams per tonne for open pit and 3.5 grams per tonne for underground. |
j. | Keno Hill mines - $1,300 per ounce gold, $18.50 per ounce silver, $1.00 per pound lead and $1.15 per pound zinc. |
k. | Kutcho project – NSR cut-offs of C$38.40 per tonne for oxide ore and C$55.00 per tonne for sulfide for the open pit and C$129.45 per tonne for the underground assuming $3.50 per pound copper, $1.15 per pound zinc, $20.00 per ounce silver and $1,600 per ounce gold. |
l. | Los Filos mine - $1,200 per ounce gold and $4.39 per ounce silver. |
m. | Marathon project - NSR cut-offs ranging from of CAD$18.00 per tonne to CAD$21.33 per tonne assuming $1,500 per ounce palladium, $900 per ounce platinum, $2.75 per pound copper, $1,300 per ounce gold and $16.00 per ounce silver. |
n. | Marmato mine – 2.23 grams per tonne gold cut-off for the Upper Mine, 1.91 grams per tonne gold cut-off for the Transition Zone and 1.61 grams per tonne gold cut-off for the Lower Mine, all assuming $1,400 per ounce gold. |
o. | Metates royalty – 0.34 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $19.20 per ounce silver. |
p. | Neves-Corvo mine – 1.41% copper cut-off for the copper Mineral Reserves and 5.4% zinc cut-off for the zinc Mineral Reserves, both assuming $3.00 per pound copper, $0.95 per pound lead and $1.00 per pound zinc. |
q. | Peñasquito mine - $1,200 per ounce gold, $20.00 per ounce silver, $0.90 per pound lead and $1.15 per pound zinc. |
r. | Salobo mine – 0.25% copper equivalent cut-off assuming $1,450 per ounce gold and $3.40 per pound copper. |
s. | San Dimas mine – $1,750 per ounce gold and $22.50 per ounce silver. |
t. | Santo Domingo project - variable throughput rates and cut-offs assuming $3.00 per pound copper,$1,290 per ounce gold and $100 per tonne iron. |
u. | Stillwater mines - combined platinum and palladium cut-off of 6.86 grams per tonne for Stillwater and East Boulder sub-level extraction and 1.71 grams per tonne for Ramp & Fill at East Boulder. |
v. | Sudbury mines - $1,450 per ounce gold, $8.16 per pound nickel, $3.40 per pound copper, $1,200 per ounce platinum, $1,400 per ounce palladium and $22.68 per pound cobalt. |
w. | Toroparu project – 0.38 grams per tonne gold cut-off assuming $1,070 per ounce gold for fresh rock and 0.35 grams per tonne gold cut-off assuming $970 per ounce gold for saprolite. |
x. | Voisey’s Bay mines –$3.40 per pound copper, $8.16 per pound nickel and $22.68 per pound cobalt. |
y. | Yauliyacu mine - $18.32 per ounce silver, $3.03 per pound copper, and $1.07 per pound zinc. |
z. | Zinkgruvan mine – Full cost breakeven NSR cut-offs of between $72.65 and $92.33 per tonne, assuming $3.00 per pound copper and $0.95 per pound lead and $1.00 per pound zinc. |
aa. | 777 mine – $1,800 per ounce gold, $24.00 per ounce silver, $4.00 per pound copper and $1.32 per pound zinc. |
9. | Mineral Resources are estimated using appropriate recovery rates and the following commodity prices: |
a. | Aljustrel mine – 3.5% zinc cut-off for Feitais, Moinho and St João mines and 3.0% zinc cut-off for the Estação project. |
b. | Antamina mine - $3.30 per pound copper, $1.18 per pound zinc, $11.11 per pound molybdenum and $25.14 per ounce silver. |
c. | Blackwater project – 0.2 grams per tonne gold equivalent cut-off assuming $1,400 per ounce gold and $15.00 per ounce silver. |
d. | Brewery Creek project – 0.37 grams per tonne gold cut-off assuming $1,500 per ounce gold. |
e. | Constancia mine – NSR cut-off of $6.40 per tonne for open pit and 0.65% copper cut-off for underground, both assuming $1,500 per ounce gold, $20.00 per ounce silver, $3.45 per pound copper and $11.00 per pound molybdenum. |
f. | Copper World Complex - $5.70 per ton NSR cut-off assuming $18.00 per ounce silver, $3.15 per pound copper and $11.00 per pound molybdenum for Rosemont and 0.1% copper cut-off assuming $3.45 per pound copper, $20.00 per ounce silver, $11.00 per pound molybdenum for Copper World. |
g. | Cotabambas project – 0.2% copper equivalent cut-off assuming $1,350 per ounce gold, $23.00 per ounce silver, $3.20 per pound copper and $12.50 per pound molybdenum. |
h. | Cozamin mine - $50 per tonne NSR cut-off assuming $3.25 per pound copper, $20.00 per ounce silver, $1.00 per pound lead and $1.20 per pound zinc. |
i. | Curipamba project - NSR cut-off of $29.00 per tonne for the open pit and $105 per tonne for the underground assuming $1,800 per ounce gold, $24 per ounce silver, $4.00 per pound copper, $1.05 per pound lead and $1.30 per pound zinc. |
j. | Fenix project – 0.15 grams per tonne gold cut-off assuming $1,500 per ounce gold. |
k. | Goose project - 1.4 grams per tonne gold cut-off for open pit and 3.0 grams per tonne for underground for all deposits, assuming a gold price of $1,550 per ounce. |
l. | Keno Hill mines: |
i. | Bellekeno mine – Cdn $185 per tonne NSR cut-off assuming $22.50 per ounce silver, $0.85 per pound lead and $0.95 per pound zinc. |
ii. | Lucky Queen and Flame & Moth mines – Cdn $185 per tonne NSR cut-off assuming $1,300 per ounce gold, $20.00 per ounce silver, $0.94 per pound lead and $1.00 per pound zinc. |
iii. | Onek mine - Cdn $185 per tonne NSR cut-off assuming $1,250 per ounce gold, $20.00 per ounce silver, $0.90 per pound lead and $0.95 per pound zinc. |
iv. | Bermingham mine - Cdn $185 per tonne NSR cut-off assuming $20.00 per ounce silver, $0.95 per pound lead, $1.00 per pound zinc and $1,300 per ounce gold. |
v. | Elsa Tailings project – 50 grams per tonne silver cut-off assuming $17.00 per ounce silver and $1,000 per ounce gold. |
m. | Kutcho project – 0.45% copper equivalent cut-off for the Main open pit and underground copper equivalent cut-offs of 1.05%, 0.95% and 1.05% for Main, Esso and Sumac respectively, all assuming $3.50 per pound copper, $1.15 per pound zinc, $20.00 per ounce silver and $1,600 per ounce gold. |
n. | Loma de La Plata project – 50 grams per tonne silver equivalent cut-off assuming $12.50 per ounce silver and $0.50 per pound lead. |
o. | Los Filos mine - $1,400 per ounce gold and $4.39 per ounce silver. |
p. | Marathon project - NSR cut-off of CAD$13.00 per tonne assuming $1,600 per ounce palladium, $900 per ounce platinum, $3.00 per pound copper, $1,500 per ounce gold and $18.00 per ounce silver. |
q. | Marmato mine – 1.9 grams per tonne gold cut-off for the Upper Mine and 1.4 grams per tonne gold cut-off for the Lower Mine and Transition Zone, all assuming $1,600 per ounce gold. |
r. | Metates royalty – 0.26 grams per tonne gold equivalent cut-off assuming $1,600 per ounce gold and $20.00 per ounce silver. |
s. | Minto mine – C$35.00 per tonne NSR cut-off for open pit and C$70 per tonne for underground, assuming $1,500 per ounce gold, $18.00 per ounce silver and $3.10 per pound copper. |
t. | Neves-Corvo mine – 1.0% copper cut-off for the copper Mineral Resource and 4.5% zinc cut-off for the zinc Mineral Resource, both assuming $3.00 per pound copper, $0.95 per pound lead and $1.00 per pound zinc. |
u. | Pascua-Lama project – $1,500 per ounce gold, $18.75 per ounce silver and $3.50 per pound copper. |
v. | Peñasquito mine - $1,400 per ounce gold, $23.00 per ounce silver, $1.10 per pound lead and $1.40 per pound zinc. |
w. | Salobo mine – 0.25% copper equivalent cut-off assuming $1,300 per ounce gold and $3.18 per pound copper. |
x. | San Dimas mine – 165 grams per tonne silver equivalent cut-off assuming $1,800 per ounce gold and $25.00 per ounce silver. |
y. | Santo Domingo project - 0.125% copper equivalent cut-off assuming $3.50 per pound copper, $1,300 per ounce gold and $99 per tonne iron. |
z. | Stillwater mines – combined platinum and palladium cut-off of 6.86 grams per tonne for Stillwater and East Boulder sub-level extraction and 1.71 grams per tonne for Ramp & Fill at East Boulder. |
aa. | Stratoni mine – $200 per tonne NSR cut-off assuming $2.75 per pound copper, $0.91 per pound lead, $1.04 per pound zinc and $17.00 per ounce silver. |
bb. | Sudbury mines - $1,200 to $1,300 per ounce gold, $6.07 to $8.16 per pound nickel, $2.77 to $3.18 per pound copper, $1,150 to $1,225 per ounce platinum, $750 to $1,093 per ounce palladium and $12.47 to $20.41 per pound cobalt. |
cc. | Toroparu project – 0.40 grams per tonne gold cut-off for open pit and 1.8 grams per tonne for underground assuming $1,630 per ounce gold. |
dd. | Voisey’s Bay mines - $2.81 to $2.90 per pound copper, $6.35 per pound nickel and $20.41 per pound cobalt. |
ee. | Yauliyacu mine – $25.14 per ounce silver, $3.30 per pound copper, and $1.18 per pound zinc. |
ff. | Zinkgruvan mine – Area dependent margin NSR cut-offs of between $47.56 and $59.05 per tonne for the zinc Mineral Reserve and $47.56 per tonne NSR cut-off for the copper Mineral Reserve, both assuming $3.00 per pound copper and $0.95 per pound lead and $1.00 per pound zinc. |
10. | The scientific and technical information in these tables regarding the Peñasquito mine was sourced by the Company from the following filed documents: |
a. | Antamina – Teck Resources Annual Information Form dated February 23, 2022. |
b. | Peñasquito – Newmont’s December 31, 2021 Resources and Reserves press release dated February 24, 2022 and |
c. | Salobo – Vale has filed a technical report summary for the Salobo Mine, which is available on Edgar at https://www.sec.gov/Archives/edgar/data/0000917851/000110465922040322/tm2210823d1_6k.htm. |
11. | The Company’s attributable Mineral Resources and Mineral Reserves for the Antamina silver interest, Cozamin silver interest, Marmato gold and silver interests, Santo Domingo gold interest, Blackwater gold and silver interests, Marathon gold and platinum interests, Sudbury gold interest, Fenix gold interest, Goose gold interest, Curipamba gold and silver interests, Stillwater palladium interest and Voisey’s Bay cobalt interest have been constrained to the production expected for the various contracts. |
12. | The Company has the option in the Early Deposit agreements, to terminate the agreement following the delivery of a feasibility study or if feasibility study has not been delivered within a required time frame. |
13. | The Stillwater precious metals purchase agreement provides that effective July 1, 2018, Sibanye-Stillwater will deliver 100% of the gold production for the life of the mines and 4.5% of palladium production until 375,000 ounces are delivered, 2.25% of palladium production until a further 175,000 ounces are delivered and 1.0% of the palladium production thereafter for the life of the mines. Attributable palladium Mineral Reserves and Mineral Resources have been calculated based upon the 4.5% / 2.25% / 1.0% production entitlements. |
a. | Stillwater mine: Pd = (Pt + Pd) / (1/3.51 + 1) and Au = (Pd + Pt) x 0.0238 |
b. | East Boulder mine: Pd = (Pt + Pd) / (1/3.60 + 1) and Au = (Pd + Pt) x 0.0323 |
14. | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the “70” shall be revised to “50” or “90”, as the case may be, until such time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the “70” shall be reinstated. |
15. | The Marmato PMPA provides that Aris Gold Corp will deliver 10.5% of the gold production until 310 thousand ounces are delivered and 5.25% of gold production thereafter, as well as, 100% of the silver production until 2.15 million ounces are delivered and 50% of silver production thereafter. Attributable reserves and resources have been calculated on the 10.5% / 5.25% basis for gold and 100% / 50% basis for silver. |
16. | The Company’s PMPA with Gold X Mining Corp., a subsidiary of GCM Mining Corp., is an Early Deposit agreement, whereby the Company will be entitled to purchase 10% of the gold production and 50% of the silver production from the Toroparu project for the life of mine. |
17. | The Company’s agreement with Chesapeake Gold Corp (Chesapeake) is a royalty whereby the Company will be entitled to a 0.5% net smelter return royalty. |
18. | The Antamina PMPA in respect to the Antamina mine (November 3, 2015) provides that Glencore will deliver silver equal to 33.75% of the silver production until 140 million ounces are delivered and 22.5% of silver production thereafter, for a 50-year term that can be extended in increments of 10 years at the Company’s discretion. Attributable reserves and resources have been calculated on the 33.75% / 22.5% basis. |
19. | The Yauliyacu mine PMPA provides that Glencore will deliver to the Company a per annum amount equal to the first 1.5 million ounces of payable silver produced at the Yauliyacu mine and 50% of any excess for the life of the mine. |
20. | The Company only has the rights to silver contained in concentrates containing less than 15% copper at the Aljustrel mine. |
21. | The Cozamin PMPA provides that Capstone will deliver silver equal to 50% of the silver production until 10 million ounces are delivered and 33% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 50% / 33% basis. |
22. | The Copper World Complex Mineral Resources and Mineral Reserves do not include the Oxide material from Rosemont or the Leach material from Copper World. |
23. | The Voisey’s Bay cobalt PMPA provides that effective January 1, 2021, Vale will deliver 42.4% of the cobalt production until 31 million pounds are delivered to the Company and 21.2% of cobalt production thereafter, for the life of the mine. Attributable reserves and resources have been calculated on the 42.4% / 21.2% basis. |
24. | The Company’s PMPA with Panoro is an Early Deposit agreement, whereby the Company will be entitled to purchase 100% of the silver production and 25% of the gold production from the Cotabambas project until 90 million silver equivalent ounces have been delivered, at which point the stream will drop to 66.67% of silver production and 16.67% of gold production for the life of mine. |
25. | The Company’s PMPA with Golden Predator Exploration Ltd., a subsidiary of Sabre Gold Mines Corp., is a royalty, whereby the Company will be entitled to a 2.0% net smelter return royalty for the first 600,000 ounces of gold produced, above which the NSR will increase to 2.75%. Sabre has the right to repurchase 0.625% of the increased NSR by paying the Company Cdn$2.0M. Attributable resources have been calculated on the 2.0% / 2.75% basis. |
26. | The Santo Domingo PMPA provides that Capstone will deliver gold equal to 100% of the gold production until 285,000 ounces are delivered and 67% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 100% / 67% basis. |
27. | The Fenix PMPA provides that Rio2 will deliver gold equal to 6% of the gold production until 90,000 ounces are delivered, then 4% of the gold production until 140,000 ounces are delivered and 3.5% thereafter for the life of the mine. Attributable reserves and resources have been calculated on this 6% / 4% / 3.5% basis. |
28. | The Blackwater silver and gold stream agreements provide that Artemis will deliver respectively silver and gold equal to (i) 50% of the payable silver production until 17.8 million ounces are delivered and 33% thereafter for the life of the mine, and (ii) 8% of the payable gold production until 279,908 ounces are delivered and 4% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 50% / 33% basis for silver and 8% / 4% basis for gold. |
29. | The Marathon PMPA provides that Generation will deliver 100% of the gold production until 150 thousand ounces are delivered and 67% thereafter for the life of the mine and 22% of the platinum production until 120 thousand ounces are delivered and 15% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 100% / 67% basis for gold and 22% / 15% basis for platinum. |
30. | The Curipamba PMPA provides that Adventus will deliver silver and gold equal to 75% of the silver production until 4.6 million ounces are delivered and 50% thereafter for the life of the mine and 50% of the gold production until 150 thousand ounces are delivered and 33% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 75% / 50% basis for silver and 50% / 33% basis for gold. |
31. | The Goose PMPA provides that Sabina will deliver gold equal to 4.15% of the gold production until 130 thousand ounces are delivered, then 2.15% until 200 thousand ounces are delivered and 1.5% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 4.15% / 2.15% / 1.5% basis. |
32. | Precious metals and cobalt are by-product metals at all of the Mining Operations, other than gold at the Marmato mine, Toroparu project, Fenix project, Goose project and Blackwater project, silver at the Keno Hill mines and the Loma de La Plata zone of the Navidad project and palladium at the Stillwater mines, and therefore, the economic cut off applied to the reporting of precious metals and cobalt reserves and resources will be influenced by changes in the commodity prices of other metals at the mines. |
● |
the future price of commodities; |
● |
the estimation of future production from Mining Operations (including in the estimation of production, mill throughput, grades, recoveries and exploration potential); |
● |
the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion rates) and the realization of such estimations); |
● |
the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton’s PMPA counterparties at Mining Operations; |
● |
the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party’s obligations in accordance with PMPAs and royalty arrangements and the receipt by the Company of precious metals and cobalt production in respect of the applicable Mining Operations under PMPAs or other payments under royalty arrangements; |
● |
the ability of Wheaton’s PMPA counterparties to comply with the terms of a PMPA (including as a result of the business, mining operations and performance of Wheaton’s PMPA counterparties) and the potential impacts of such on Wheaton; |
● |
future payments by the Company in accordance with PMPAs, including any acceleration of payments; |
● |
the costs of future production; |
● |
the estimation of produced but not yet delivered ounces; |
● |
the impact of epidemics (including the COVID-19 virus pandemic), including the potential heightening of other risks; |
● |
the future sales of Common Shares under, the amount of net proceeds from, and the use of the net proceeds from, the ATM Program; |
● |
continued listing of the Common Shares on the LSE, NYSE and TSX; |
● |
any statements as to future dividends; |
● |
the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs; |
● |
projected increases to Wheaton’s production and cash flow profile; |
● |
projected changes to Wheaton’s production mix; |
● |
the ability of Wheaton’s PMPA counterparties to comply with the terms of any other obligations under agreements with the Company; |
● |
the ability to sell precious metals and cobalt production; |
● |
confidence in the Company’s business structure; |
● |
the Company’s assessment of taxes payable and the impact of the CRA Settlement; |
● |
possible CRA domestic audits for taxation years subsequent to 2016 and international audits |
● |
the Company’s assessment of the impact of any tax reassessments; |
● |
the Company’s intention to file future tax returns in a manner consistent with the CRA Settlement; |
● |
the Company’s climate change and environmental commitments; and |
● |
assessments of the impact and resolution of various legal and tax matters, including but not limited to audits. |
● |
the satisfaction of each party’s obligations in accordance with the terms of the Company’s PMPAs or royalty arrangements; |
● |
risks associated with fluctuations in the price of commodities (including Wheaton’s ability to sell its precious metals or cobalt production at acceptable prices or at all); |
● |
risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic (including the COVID-19 virus pandemic); |
● |
risks related to the Mining Operations (including fluctuations in the price of the primary or other commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which the Mining Operations are located, actual results of mining, risks associated with exploration, development, operating, expansion and improvement at the Mining Operations, environmental and |
economic risks of the Mining Operations, and changes in project parameters as Mining Operations plans continue to be refined); |
● |
absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure and other information Wheaton receives from the owners and operators of the Mining Operations as the basis for its analyses, forecasts and assessments relating to its own business; |
● |
risks related to the uncertainty in the accuracy of mineral reserve and mineral resource estimation; |
● |
risks related to the satisfaction of each party’s obligations in accordance with the terms of the Company’s PMPAs, including the ability of the companies with which the Company has PMPAs to perform their obligations under those PMPAs in the event of a material adverse effect on the results of operations, financial condition, cash flows or business of such companies, any acceleration of payments, estimated throughput and exploration potential; |
● |
risks relating to production estimates from Mining Operations, including anticipated timing of the commencement of production by certain Mining Operations; |
● |
Wheaton’s interpretation of, or compliance with, or application of, tax laws and regulations or accounting policies and rules, being found to be incorrect or the tax impact to the Company’s business operations being materially different than currently contemplated; |
● |
any challenge or reassessment by the CRA of the Company’s tax filings being successful and the potential negative impact to the Company’s previous and future tax filings; |
● |
risks in assessing the impact of the CRA Settlement (including whether there will be any material change in the Company’s facts or change in law or jurisprudence); |
● |
risks relating to the potential implementation of a 15% global minimum tax; |
● |
counterparty credit and liquidity risks; |
● |
mine operator and counterparty concentration risks; |
● |
indebtedness and guarantees risks; |
● |
hedging risk; |
● |
competition in the streaming industry risk; |
● |
risks related to claims and legal proceedings against Wheaton or the Mining Operations; |
● |
risks relating to security over underlying assets; |
● |
risks related to governmental regulations; |
● |
risks related to international operations of Wheaton and the Mining Operations; |
● |
risks relating to exploration, development, operating, expansions and improvements at the Mining Operations; |
● |
risks related to environmental regulations; |
● |
risks related to climate change; |
● |
the ability of Wheaton and the Mining Operations to obtain and maintain necessary licenses, permits, approvals and rulings; |
● |
the ability of Wheaton and the Mining Operations to comply with applicable laws, regulations and permitting requirements; |
● |
lack of suitable supplies, infrastructure and employees to support the Mining Operations; |
● |
inability to replace and expand mineral reserves, including anticipated timing of the commencement of production by certain Mining Operations (including increases in production, estimated grades and recoveries); |
● |
uncertainties related to title and indigenous rights with respect to the mineral properties of the Mining Operations; |
● |
risks associated with environmental, social and governance matters; |
● |
the ability of Wheaton and the Mining Operations to obtain adequate financing; |
● |
the ability of the Mining Operations to complete permitting, construction, development and expansion; |
● |
challenges related to global financial conditions; |
● |
risks related to Wheaton’s acquisition strategy; |
● |
risks related to the market price of the common shares of Wheaton (the “Common Shares”); |
● |
risks associated with multiple listings of the Common Shares on the LSE, NYSE and TSX; |
● |
risks associated with a possible suspension of trading of Common Shares; |
● |
risks associated with the sale of Common Shares under the ATM Program, including the amount of any net proceeds from such offering of Common Shares and the use of any such proceeds; |
● |
risks associated with the ability to achieve climate change and environmental commitments at Wheaton and at the Mining Operations; |
● |
equity price risks related to Wheaton’s holding of long-term investments in other companies; |
● |
risks related to interest rates; |
● |
risks related to the declaration, timing and payment of dividends; |
● |
the ability of Wheaton and the Mining Operations to retain key management employees or procure the services of skilled and experienced personnel; |
● |
risks relating to activist shareholders; |
● |
risks relating to reputational damage; |
● |
risks relating to unknown defects and impairments; |
● |
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 fluctuations in commodity prices of metals produced from the Mining Operations other than precious metals or cobalt; |
● |
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’s most recent Annual Information Form available on SEDAR at www.sedar.com, and in Wheaton’s Form 40-F and Form 6-Ks, all on file with the U.S. Securities and Exchange Commission in Washington, D.C. and available on EDGAR (the “Disclosure”). |
● |
that there will be no material adverse change in the market price of commodities; |
● |
that the Mining Operations will continue to operate and the mining projects will be completed in accordance with public statements and achieve their stated production estimates; |
● |
that the mineral reserves and mineral resource estimates from Mining Operations (including reserve conversion rates) are accurate; |
● |
that each party will satisfy their obligations in accordance with the PMPAs; |
● |
that Wheaton will continue to be able to fund or obtain funding for outstanding commitments; |
● |
that Wheaton will be able to source and obtain accretive PMPAs; |
● |
that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 virus pandemic); |
● |
that any outbreak or threat of an outbreak of a virus or other contagions or epidemic disease will be adequately responded to locally, nationally, regionally and internationally, without such response requiring any prolonged closure of the Mining Operations or having other material adverse effects on the Company and counterparties to its PMPAs; |
● |
that the trading of the Common Shares will not be adversely affected by the differences in liquidity, settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the TSX and the NYSE; |
● |
that the trading of the Company’s Common Shares will not be suspended; |
● |
that expectations regarding the resolution of legal and tax matters will be achieved (including CRA audits involving the Company); |
● |
that Wheaton has properly considered the application of Canadian tax law to its structure and operations; |
● |
that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax law; |
● |
that Wheaton’s application of the CRA Settlement is accurate (including the Company’s assessment that there has been no material change in the Company’s facts or change in law or jurisprudence); |
● |
that any sale of Common Shares under the ATM Program will not have a significant impact on the market price of the Common Shares and that the net proceeds of sales of Common Shares, if any, will be used as anticipated; |
● |
the estimate of the recoverable amount for any PMPA with an indicator of impairment; and |
● |
such other assumptions and factors as set out in the Disclosure. |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||
(US dollars and shares in thousands, except per share amounts - unaudited) |
Note |
2022 |
2021 |
2022 |
2021 |
|||||||||||||||
Sales |
6 | $ | |
$ | |
$ | |
$ | |
|||||||||||
Cost of sales |
||||||||||||||||||||
Cost of sales, excluding depletion |
$ | $ | $ | $ | ||||||||||||||||
Depletion |
12 | |||||||||||||||||||
Total cost of sales |
$ | $ | $ | $ | ||||||||||||||||
Gross margin |
$ | $ | $ | $ | ||||||||||||||||
General and administrative expenses |
7 | |||||||||||||||||||
Share based compensation |
8 | |||||||||||||||||||
Donations and community investments |
9 | |||||||||||||||||||
Earnings from operations |
$ | $ | $ | $ | ||||||||||||||||
Other (income) expense |
10 | ( |
( |
( |
( |
|||||||||||||||
Earnings before finance costs and income taxes |
$ | $ | $ | $ | ||||||||||||||||
Finance costs |
18.3 | |||||||||||||||||||
Earnings before income taxes |
$ | $ | $ | $ | ||||||||||||||||
Income tax (expense) recovery |
24 | ( |
( |
|||||||||||||||||
Net earnings |
$ | $ | $ | $ | ||||||||||||||||
Basic earnings per share |
$ | $ | $ | $ | ||||||||||||||||
Diluted earnings per share |
$ | $ | $ | $ | ||||||||||||||||
Weighted average number of shares outstanding |
||||||||||||||||||||
Basic |
22 | |||||||||||||||||||
Diluted |
22 |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||
(US dollars in thousands - unaudited) |
Note |
2022 |
2021 |
2022 |
2021 |
|||||||||||||||
Net earnings |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Other comprehensive income |
||||||||||||||||||||
Items that will not be reclassified to net earnings |
||||||||||||||||||||
Loss on LTIs 1 |
16 | $ | ( |
$ | ( |
$ | ( |
$ | ( |
|||||||||||
Income tax recovery (expense) related to LTIs |
24 | ( |
( |
|||||||||||||||||
Total other comprehensive loss |
$ | ( |
$ | ( |
$ | ( |
$ | ( |
||||||||||||
Total comprehensive income |
$ | $ | $ | $ |
1) |
LTIs = long-term investments – common shares held. |
(US dollars in thousands - unaudited) |
Note |
As at June 30 2022 |
As at December 31 2021 |
|||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
23 | $ | $ | |||||||||
Accounts receivable |
11 | |||||||||||
Other |
25 | |||||||||||
Total current assets |
$ | $ | ||||||||||
Non-current assets |
||||||||||||
Mineral stream interests |
12 | $ | $ | |||||||||
Early deposit mineral stream interests |
13 | |||||||||||
Mineral royalty interest |
14 | |||||||||||
Long-term equity investments |
16 | |||||||||||
Convertible notes receivable |
15 | |||||||||||
Property, plant and equipment |
17 | |||||||||||
Other |
26 | |||||||||||
Total non-current assets |
$ | $ | ||||||||||
Total assets |
$ | $ | ||||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable and accrued liabilities |
$ | $ | ||||||||||
Current portion of performance share units |
21.1 | |||||||||||
Current portion of lease liabilities |
18.2 | |||||||||||
Other |
||||||||||||
Total current liabilities |
$ | $ | ||||||||||
Non-current liabilities |
||||||||||||
Lease liabilities |
18.2 | |||||||||||
Deferred income taxes |
24 | |||||||||||
Performance share units |
21.1 | |||||||||||
Pension liability |
||||||||||||
Total non-current liabilities |
$ | $ | ||||||||||
Total liabilities |
$ | $ | ||||||||||
Shareholders’ equity |
||||||||||||
Issued capital |
19 | $ | $ | |||||||||
Reserves |
20 | |||||||||||
Retained earnings |
||||||||||||
Total shareholders’ equity |
$ | $ | ||||||||||
Total liabilities and shareholders’ equity |
$ | $ |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||
(US dollars in thousands – unaudited) |
Note | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Operating activities |
||||||||||||||||||||
Net earnings |
$ | $ | $ | $ | ||||||||||||||||
Adjustments for |
||||||||||||||||||||
Depreciation and depletion |
||||||||||||||||||||
Interest expense |
18.3 | |||||||||||||||||||
Equity settled stock based compensation |
||||||||||||||||||||
Performance share units |
21.1 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Pension expense |
||||||||||||||||||||
Income tax expense (recovery) |
24 | ( |
) | ( |
) | |||||||||||||||
Loss (gain) on fair value adjustment of share purchase warrants held |
10 | |||||||||||||||||||
Fair value (gain) loss on convertible note receivable |
15 | - | ( |
) | ( |
) | ||||||||||||||
Investment income recognized in net earnings |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Other |
( |
) | ||||||||||||||||||
Change in non-cash working capital |
23 | ( |
) | ( |
) | ( |
) | |||||||||||||
Cash generated from operations before income taxes and interest |
$ | $ | $ | $ | ||||||||||||||||
Income taxes recovered (paid) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Interest paid |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Interest received |
||||||||||||||||||||
Cash generated from operating activities |
$ | $ | $ | $ | ||||||||||||||||
Financing activities |
||||||||||||||||||||
Bank debt repaid |
18.1 | $ | - | $ | - | $ | - | $ | ( |
) | ||||||||||
Credit facility extension fees |
18.1 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Share purchase options exercised |
20.2 | |||||||||||||||||||
Lease payments |
18.2 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Dividends paid |
19.2, 23 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Cash (used for) generated from financing activities |
$ | ( |
$ | ( |
$ | ( |
$ | ( |
) | |||||||||||
Investing activities |
||||||||||||||||||||
Mineral stream interests |
12 | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||||
Early deposit mineral stream interests |
13 | - | - | ( |
) | ( |
) | |||||||||||||
Mineral royalty interest |
14 | - | ( |
) | - | ( |
) | |||||||||||||
Acquisition of long-term investments |
16 | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Proceeds on disposal of long-term investments |
16 | - | - | - | ||||||||||||||||
Dividends received |
10 |
- | - | |||||||||||||||||
Other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
Cash (used for) generated from investing activities |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||
Increase in cash and cash equivalents |
$ | $ | $ | $ | ||||||||||||||||
Cash and cash equivalents, beginning of period |
||||||||||||||||||||
Cash and cash equivalents, end of period |
23 | $ | $ | $ | $ |
Reserves | ||||||||||||||||||||||||||||||||||||
(US dollars in thousands – unaudited) |
Number of Shares (000’s) |
Issued Capital |
Share Purchase Warrants Reserve |
Share Purchase Options Reserve |
Restricted Share Units Reserve |
LTI 1 Revaluation Reserve (Net of Tax) |
Total Reserves |
Retained Earnings |
Total | |||||||||||||||||||||||||||
At January 1, 2021 |
$ | $ | $ | $ | $ | $ | $ | |
$ | |
||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Net earnings |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||||||||
OCI 1 |
- | - | - | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total comprehensive income |
$ | - | $ | - | $ | - | $ | - | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
Income tax recovery (expense) |
$ | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | ||||||||||||||||||||||
SBC 1 expense |
- | - | - | - | ||||||||||||||||||||||||||||||||
Options 1 exercised |
- | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||
RSUs 1 released |
- | - | ( |
) | - | ( |
) | - | - | |||||||||||||||||||||||||||
Dividends (Note 19.2) |
- | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
Realized gain on disposal of LTIs ¹ (Note 20.4) |
- | - | - | - | ( |
) | ( |
) | - | |||||||||||||||||||||||||||
At March 31, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Net earnings |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||||||||
OCI 1 |
- | - | - | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total comprehensive income |
$ | - | $ | - | $ | - | $ | - | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
Income tax recovery (expense) |
$ | ( |
) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | ( |
) | ||||||||||||||||||
SBC 1 expense |
- | - | - | - | ||||||||||||||||||||||||||||||||
Options 1 exercised |
- | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||
RSUs 1 released |
- | - | ( |
) | - | ( |
) | - | - | |||||||||||||||||||||||||||
Dividends (Note 19.2) |
- | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
At June 30, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Net earnings |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||||||||
OCI 1 |
- | - | - | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total comprehensive income |
$ | - | $ | - | $ | - | $ | - | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
Income tax recovery (expense) |
$ | $ | - | $ | - | $ | - | - | $ | - | $ | - | $ | |||||||||||||||||||||||
SBC 1 expense |
- | - | - | - | ||||||||||||||||||||||||||||||||
Options 1 exercised |
- | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||
Dividends (Note 19.2) |
- | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
Realized gain on disposal of LTIs ¹ (Note 20.4) |
- | - | - | - | ( |
) | ( |
) | - | |||||||||||||||||||||||||||
At December 31, 2021 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Net earnings |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||||||||
OCI 1 |
- | - | - | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total comprehensive income |
$ | - | $ | - | $ | - | $ | - | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
Income tax recovery (expense) |
$ | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | ||||||||||||||||||||||
SBC 1 expense |
- | - | - | - | ||||||||||||||||||||||||||||||||
Options 1 exercised |
- | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||
RSUs 1 released |
- | - | ( |
) | - | ( |
) | - | - | |||||||||||||||||||||||||||
Dividends (Note 19.2) |
- | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
At March 31, 2022 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
Total comprehensive income |
||||||||||||||||||||||||||||||||||||
Net earnings |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||||||||
OCI 1 |
- | - | - | - | ( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total comprehensive income |
$ | - | $ | - | $ | - | $ | - | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||
Income tax recovery (expense) |
$ | ( |
) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | ( |
) | ||||||||||||||||||
SBC 1 expense |
- | - | - | - | ||||||||||||||||||||||||||||||||
Options 1 exercised |
- | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||
Dividends (Note 19.2) |
- | - | - | - | - | ( |
) | ( |
) | |||||||||||||||||||||||||||
At June 30, 2022 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ |
1) | Definitions as follows: “OCI” = Other Comprehensive Income (Loss); “SBC” = Equity Settled Stock Based Compensation; “Options” = Share Purchase Options; “RSUs” = Restricted Share Units; “LTI’s” = Long-Term Investments; “Warrants” = Share Purchase Warrants. |
1. |
Description of Business and Nature of Operations |
2. |
Basis of Presentation and Statement of Compliance |
3. |
Significant Accounting Policies |
3.1. |
Future Changes to Accounting Policies |
● |
a deferred tax asset to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized and a deferred tax liability for all deductible and taxable temporary differences associated with right-of-use |
● |
the cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date. |
4. |
Key Sources of Estimation Uncertainty and Critical Accounting Judgments |
4.1. |
Attributable Reserve, Resource and Exploration Potential Estimates |
4.2. |
Depletion |
4.3. |
Impairment of Assets |
4.4. |
Valuation of Stock Based Compensation |
4.5. |
Contingencies |
4.6. |
Income Taxes |
5. |
Financial Instruments |
5.1. |
Capital Risk Management |
5.2. |
Categories of Financial Assets and Liabilities |
(in thousands) |
Note |
June 30 2022 |
December 31 2021 |
|||||||||
Financial assets |
||||||||||||
Financial assets mandatorily measured at FVTNE 1 |
||||||||||||
Cash and cash equivalents |
23 | $ | $ | |||||||||
Trade receivables from provisional concentrate sales, net of fair value adjustment |
6, 11 | |||||||||||
Long-term investments- warrants held |
||||||||||||
Convertible note receivable |
15 | |||||||||||
Investments in equity instruments designated at FVTOCI 1 |
||||||||||||
Long-term investments- common shares held |
16 | |||||||||||
Financial assets measured at amortized cost |
||||||||||||
Non-revolving term loan |
15, 25 | |||||||||||
Trade receivables from sales of cobalt |
11 | |||||||||||
Other accounts receivable |
11 | |||||||||||
Total financial assets |
$ | |
$ | |
||||||||
Financial liabilities |
||||||||||||
Financial liabilities at amortized cost |
||||||||||||
Accounts payable and accrued liabilities |
||||||||||||
Pension liability |
||||||||||||
Total financial liabilities |
$ | $ |
1) | FVTNE refers to Fair Value Through Net Earnings, FVTOCI refers to Fair Value Through Other Comprehensive Income |
5.3. |
Credit Risk |
(in thousands) |
Note | June 30 2022 |
December 31 2021 |
|||||||||
Cash and cash equivalents |
23 | $ | $ | |||||||||
Trade receivables from provisional concentrate sales, net of fair value adjustment |
11 | |||||||||||
Trade receivables from sales of cobalt |
11 | |||||||||||
Other accounts receivables |
11 | |||||||||||
Non-revolving term loan |
15, 25 | |||||||||||
Convertible notes receivable |
15 | |||||||||||
Maximum exposure to credit risk related to financial assets |
$ | |
$ | |
5.4. |
Liquidity Risk |
As at June 30, 2022 |
| |||||||||||||||||||||||||||||||||||
(in thousands) |
2022 |
2023 - 2024 |
2025 - 2026 |
After 2026 |
Total |
|||||||||||||||||||||||||||||||
Non-derivative financial liabilities |
||||||||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities |
$ | $ | - | $ | - | $ | $ | |||||||||||||||||||||||||||||
Performance share units 1 |
||||||||||||||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ | |
1) | Assumes a weighted average performance factor of 189% (see Note 21.1). |
5.5. |
Currency Risk |
(in thousands) |
June 30 2022 |
December 31 2021 |
||||||
Monetary assets |
||||||||
Cash and cash equivalents |
$ | $ | ||||||
Accounts receivable |
||||||||
Long-term investments - common shares held |
||||||||
Long-term investments - warrants held |
||||||||
Convertible note receivable |
||||||||
Non-revolving term loan |
||||||||
Other long-term assets |
||||||||
Total Canadian dollar denominated monetary assets |
$ | |
$ | |
||||
Monetary liabilities |
||||||||
Accounts payable and accrued liabilities |
$ | |
$ | |
||||
Performance share units |
||||||||
Lease liability |
||||||||
Pension liability |
||||||||
Total Canadian dollar denominated monetary liabilities |
$ | $ |
As at June 30, 2022 | ||||||||
Change in Canadian Dollar | ||||||||
(in thousands) |
10% Increase |
10% Decrease |
||||||
Increase (decrease) in net earnings |
$ | ( |
$ | |
||||
Increase (decrease) in other comprehensive income |
( |
) | ||||||
Increase (decrease) in total comprehensive income |
$ | |
$ | ( |
) |
As at December 31, 2021 | ||||||||
Change in Canadian Dollar | ||||||||
(in thousands) |
10% Increase |
10% Decrease |
||||||
Increase (decrease) in net earnings |
$ | ( |
) | $ | |
|||
Increase (decrease) in other comprehensive income |
|
( |
) | |||||
Increase (decrease) in total comprehensive income |
$ | $ | ( |
) |
5.6. |
Interest Rate Risk |
5.7. |
Other Price Risk |
5.8. |
Fair Value Estimation |
June 30, 2022 | ||||||||||||||||||||
(in thousands) |
Note | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Cash and cash equivalents | 23 | $ | $ | $ | - | $ | - | |||||||||||||
Trade receivables from provisional concentrate sales, net of fair value adjustment | 11 | - | - | |||||||||||||||||
Long-term investments - common shares held | 16 | - | - | |||||||||||||||||
Long-term investments - warrants held | 16 | - | - | |||||||||||||||||
$ | |
$ | |
$ | |
$ | |
December 31, 2021 | ||||||||||||||||||||
(in thousands) |
Note | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||
Cash and cash equivalents | 23 | $ | |
$ | |
$ | - | $ | - | |||||||||||
Trade receivables from provisional concentrate sales, net of fair value adjustment | 11 | - | - | |||||||||||||||||
Long-term investments - common shares held | 16 | - | - | |||||||||||||||||
Long-term investments - warrants held | 16 | - | - | |||||||||||||||||
Kutcho Convertible Note | 15 | - | - | |||||||||||||||||
$ | |
$ | |
$ | |
$ | |
5.8.1. |
Valuation Techniques for Level 1 Assets |
5.8.2. |
Valuation Techniques for Level 2 Assets |
5.8.3. |
Valuation Techniques for Level 3 Assets |
6. |
Revenue |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||
Sales |
||||||||||||||||||||||||||||||||
Gold credit sales |
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||
Silver |
||||||||||||||||||||||||||||||||
Silver credit sales |
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||
Concentrate sales |
% | % | % | % | ||||||||||||||||||||||||||||
Total silver sales |
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||
Palladium credit sales |
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||
Cobalt sales |
$ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||||||
Total sales revenue |
$ | |
% | $ | |
% | $ | |
% | $ | |
% |
7. |
General and Administrative |
Three Months Ended June 30 |
Six Months Ended June 30 | |||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Corporate |
||||||||||||||||
Salaries and benefits |
$ | $ | $ | $ | ||||||||||||
Depreciation |
||||||||||||||||
Professional fees |
||||||||||||||||
Business travel |
||||||||||||||||
Director fees |
||||||||||||||||
Employer health tax |
||||||||||||||||
Audit and regulatory |
||||||||||||||||
Insurance |
||||||||||||||||
Other |
||||||||||||||||
General and administrative - corporate |
$ | $ | $ | $ | ||||||||||||
Subsidiaries |
||||||||||||||||
Salaries and benefits |
$ | $ | $ | $ | ||||||||||||
Depreciation |
||||||||||||||||
Professional fees |
||||||||||||||||
Business travel |
||||||||||||||||
Director fees |
||||||||||||||||
Insurance |
||||||||||||||||
Other |
||||||||||||||||
General and administrative - subsidiaries |
$ | $ | $ | $ | ||||||||||||
Consolidated general and administrative |
$ | |
$ | |
$ | |
$ | |
8. |
Share Based Compensation |
Three Months Ended June 30 |
Six Months Ended June 30 | |||||||||||||||||||
(in thousands) |
Note |
2022 |
2021 |
2022 |
2021 | |||||||||||||||
Equity settled share based compensation 1 |
||||||||||||||||||||
Stock options |
20.2 | $ | $ | $ | $ | |||||||||||||||
RSUs |
20.3 | |||||||||||||||||||
Cash settled share based compensation |
||||||||||||||||||||
PSUs 2 |
21.1 | $ | $ | $ | $ | |||||||||||||||
Total share based compensation |
$ | |
$ | |
$ | |
$ | |
1) |
Equity settled stock based compensation is a non-cash expense. |
2) | The PSU accrual related to the anticipated fair value of the PSUs issued uses a weighted average performance factor of |
9. |
Donations and Community Investments |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Local donations and community investments 1 |
$ | $ | $ | $ | ||||||||||||
Partner donations and community investments 2 |
||||||||||||||||
COVID-19 and community support and response fund |
||||||||||||||||
Total donations and community investments |
$ | |
$ | |
$ | |
$ | |
1 ) |
The Local Community Investment Program supports organizations in Vancouver and the Cayman Islands, where Wheaton’s offices are located. |
2) |
The Partner Community Investment Program supports the communities influenced by Mining Partners’ operations. |
10. |
Other (Income) Expense |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||
(in thousands) |
Note | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
Interest income |
$ | ( |
$ |
( |
$ |
( |
$ |
( |
||||||||||||
Dividends received |
( |
- |
( |
- |
||||||||||||||||
Foreign exchange (gain) loss |
( |
( |
||||||||||||||||||
Net (gain) loss arising on financial assets mandatorily measured at FVTPL ¹ |
||||||||||||||||||||
(Gain) loss on fair value adjustment of share purchase warrants held |
|
|||||||||||||||||||
(Gain) loss on fair value adjustment of convertible notes receivable |
15 |
- | ( |
( |
||||||||||||||||
Other |
( |
( |
( |
|||||||||||||||||
Total other (income) expense |
$ | ( |
$ |
( |
$ |
( |
$ |
( |
1) | FVTPL refers to Fair Value Through Profit or Loss |
11. |
Accounts Receivable |
June 30 | December 31 | |||||||||||
(in thousands) |
Note | 2022 | 2021 | |||||||||
Trade receivables from provisional concentrate sales, net of fair value adjustment |
6 | $ | $ | |||||||||
Trade receivables from sales of cobalt |
6 | |||||||||||
Other accounts receivable |
||||||||||||
Total accounts receivable |
$ | |
$ | |
12. |
Mineral Stream Interests |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||
Cost | Accumulated Depletion & Impairment 1 |
Carrying Amount Jun 30, 2022 |
||||||||||||||||||||||||||
(in thousands) |
Balance Jan 1, 2022 |
Additions (Reductions) |
Balance Jun 30, 2022 |
Balance Jan 1, 2022 |
Depletion | Balance Jun 30, 2022 |
||||||||||||||||||||||
Gold interests |
||||||||||||||||||||||||||||
Salobo |
$ | $ | $ | $ | ( |
$ | ( |
$ | ( |
$ | ||||||||||||||||||
Sudbury 2 |
( |
( |
( |
|||||||||||||||||||||||||
Constancia |
( |
( |
( |
|||||||||||||||||||||||||
San Dimas |
( |
( |
( |
|||||||||||||||||||||||||
Stillwater 3 |
( |
( |
( |
|||||||||||||||||||||||||
Other 4 |
( |
( |
( |
|||||||||||||||||||||||||
$ | $ | $ | |
$ | ( |
$ | ( |
$ | ( |
$ | ||||||||||||||||||
Silver interests |
||||||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | ( |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Antamina |
( |
( |
( |
|||||||||||||||||||||||||
Constancia |
( |
( |
( |
|||||||||||||||||||||||||
Other 5 |
( |
( |
( |
|||||||||||||||||||||||||
$ | $ | $ | $ | ( |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Palladium interests |
||||||||||||||||||||||||||||
Stillwater 3 |
$ | $ | $ | $ | ( |
$ | ( |
$ | ( |
$ | ||||||||||||||||||
Platinum interests |
||||||||||||||||||||||||||||
Marathon |
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
Cobalt interests |
||||||||||||||||||||||||||||
Voisey’s Bay 6 |
$ | $ | $ | $ | ( |
$ | ( |
$ | ( |
$ | ||||||||||||||||||
$ | |
$ | |
$ | |
$ | ( |
$ | ( |
$ | ( |
$ | |
1) | Includes cumulative impairment charges to June 30, 2022 as follows: Keno Hill silver interest - $ |
2) | Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests. |
3) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
4) | Comprised of the Minto, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Santo Domingo, Fenix, Blackwater Marathon, Goose and Curipamba gold interests. |
5) | Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Cozamin, Blackwater and Curipamba silver interests. |
6) | When cobalt is delivered to the Company it is recorded as inventory until such time as it is sold and the cost of the cobalt is recorded as a cost of sale. Depletion in this table for the Voisey’s Bay cobalt interest is inclusive of depletion relating to inventory. |
Year Ended December 31, 2021 | ||||||||||||||||||||||||||||||||
Cost | Accumulated Depletion & Impairment 1 |
Carrying Amount Dec 31, 2021 |
||||||||||||||||||||||||||||||
(in thousands) |
Balance Jan 1, 2021 |
Additions (Reductions) |
Balance Dec 31, 2021 |
Balance Jan 1, 2021 |
Depletion | Impairment Reversal |
Balance Dec 31, 2021 |
|||||||||||||||||||||||||
Gold interests |
||||||||||||||||||||||||||||||||
Salobo |
$ | $ | - | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Sudbury 2 |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Constancia |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
San Dimas |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Stillwater 3 |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Other 4 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
$ | |
$ | $ | |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Silver interests |
|
|||||||||||||||||||||||||||||||
Peñasquito |
$ | $ | - | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Antamina |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Constancia |
- | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Other 5 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
$ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||||
Palladium interests |
|
|||||||||||||||||||||||||||||||
Stillwater 3 |
$ | $ | - | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Cobalt interests |
|
|||||||||||||||||||||||||||||||
Voisey’s Bay 6 |
$ | $ | - | $ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
$ | $ | |
$ | $ | ( |
) | $ | ( |
) | $ | |
$ | ( |
) | $ | |
1) | Includes cumulative impairment charges to December 31, 2021 as follows: Keno Hill silver interest - $ |
2) | Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests. |
3) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
4) | Comprised of the Minto, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Santo Domingo, Fenix and Blackwater gold interests. |
5) | Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Cozamin and Blackwater silver interests. |
6) | When cobalt is delivered to the Company it is recorded as inventory until such time as it is sold and the cost of the cobalt is recorded as a cost of sale. Depletion in this table for the Voisey’s Bay cobalt interest is inclusive of depletion relating to inventory. |
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||
(in thousands) |
Depletable | Non- Depletable |
Total | Depletable | Non- Depletable |
Total | ||||||||||||||||||
Gold interests |
||||||||||||||||||||||||
Salobo |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Sudbury 1 |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
San Dimas |
||||||||||||||||||||||||
Stillwater 2 |
||||||||||||||||||||||||
Other 3 |
||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Silver interests |
||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Antamina |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
Other 4 |
||||||||||||||||||||||||
$ | $ | $ | $ | $ | $ | |||||||||||||||||||
Palladium interests |
||||||||||||||||||||||||
Stillwater 2 |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Platinum interests |
||||||||||||||||||||||||
Marathon |
$ | - | $ | $ | $ | - | $ | - | $ | - | ||||||||||||||
Cobalt interests |
||||||||||||||||||||||||
Voisey’s Bay |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
1) | Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests. |
2) | Comprised of the Stillwater and East Boulder gold and palladium interests. |
3) | Comprised of the Minto, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Santo Domingo, Fenix, Blackwater, Marathon, Goose and Curipamba gold interests. |
4) | Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in these financial statements), 777, Marmato, Cozamin, Blackwater and Curipamba silver interests. |
13. |
Early Deposit Mineral Stream Interests |
Attributable Production to be Purchased |
||||||||||||||||||||||||||||||||
Early Deposit Mineral Stream Interests |
Mine Owner |
Location of Mine |
Upfront Consideration Paid to Date 1 |
Upfront Consideration to be Paid 1, 2 |
Total Upfront Consideration¹ |
Gold |
Silver |
Term of Agreement |
||||||||||||||||||||||||
Toroparu |
$ | $ | $ | % | % | |||||||||||||||||||||||||||
Cotabambas |
% ³ | % ³ | ||||||||||||||||||||||||||||||
Kutcho |
% | % | ||||||||||||||||||||||||||||||
$ | |
$ | |
$ | |
1) | Expressed in thousands of United States dollars; excludes closing costs and capitalized interest, where applicable. |
2) | Please refer to Note 27 for details of when the remaining upfront consideration to be paid becomes due. |
3) | Once |
Kutcho |
– Contract Modifications |
14. |
Mineral Royalty Interests |
15. |
Convertible Notes Receivable |
Six Months Ended June 30, 2022 | ||||||||||||||||||||
(in thousands) |
Fair Value at Dec 31, 2021 |
Amount Advanced |
Termination | Fair Value Adjustment Gains (Losses) |
Fair Value at Jun 30, 2022 |
|||||||||||||||
Kutcho |
$ | |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
||||||||
Six Months Ended June 30, 2021 | ||||||||||||||||||||
(in thousands) |
Fair Value at Dec 31, 2020 |
Amount Advanced |
Termination | Fair Value Adjustment Gains (Losses) |
Fair Value at Jun 30, 2021 |
|||||||||||||||
Kutcho |
$ | |
$ | $ | |
$ | |
$ | |
16. |
Long-Term Equity Investments |
June 30 | December 31 | |||||||
(in thousands) |
2022 | 2021 | ||||||
Common shares held |
$ | |
$ | |||||
Warrants held |
||||||||
Total long-term equity investments |
$ | |
$ |
Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Mar 31, 2022 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2022 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
% | $ | |
$ | - | $ | - | $ | ( |
) | $ | $ | |
|||||||||||||||||||
Sabina |
% | - | ( |
) | - | |||||||||||||||||||||||||||
Kutcho |
% | - | - | ( |
) | - | ||||||||||||||||||||||||||
Other |
- | - | ( |
) | - | |||||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | - | $ | ( |
) | $ | |
$ | |
1) | Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”). |
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Mar 31, 2021 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2021 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
% | $ | |
$ | - | $ | - | $ | ( |
) | $ | $ | ||||||||||||||||||||
Sabina |
% | - | - | ( |
) | - | ||||||||||||||||||||||||||
Other |
- | - | ||||||||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | - | $ | ( |
) | $ | |
$ | |
1) |
Fair Value Gains (Losses) are reflected as a component of OCI. |
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Dec 31, 2021 |
Cost of Additions |
Proceeds of Disposition |
Fair Value Adjustment Gains (Losses) 1 |
Fair Value at Jun 30, 2022 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
$ | $ | - | $ | - | $ | ( |
$ | $ | |||||||||||||||||||||||
Sabina |
- | ( |
- | |||||||||||||||||||||||||||||
Kutcho |
- | - | ( |
- | ||||||||||||||||||||||||||||
Other |
- | ( |
- | |||||||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | - | $ | ( |
$ | |
$ | |
1) | Fair Value Gains (Losses) are reflected as a component of OCI. |
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||||||||
(in thousands) |
Shares Owned (000’s) |
% of Outstanding Shares Owned |
Fair Value at Dec 31, 2020 |
Cost of Additions |
Proceeds of Disposition 1 |
Fair Value Adjustment Gains (Losses) 2 |
Fair Value at Jun 30, 2021 |
Realized Gain on Disposal |
||||||||||||||||||||||||
Bear Creek |
$ | $ | - | $ | - | $ | ( |
$ | |
$ | - | |||||||||||||||||||||
Sabina |
- | - | ( |
- | ||||||||||||||||||||||||||||
First Majestic |
- | ( |
- | |||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||
Total |
$ | |
$ | |
$ | ( |
$ | ( |
$ | |
$ | |
1) |
Disposals during 2021 were made in order to capitalize on the share appreciation resulting from the strong commodity price environment. |
2) |
Fair Value Gains (Losses) are reflected as a component of OCI. |
17. |
Property, Plant and Equipment |
June 30, 2022 | ||||||||||||||||
(in thousands) |
Leasehold Improvements |
Right of Use Assets- Property |
Other | Total | ||||||||||||
Cost |
||||||||||||||||
Balance - January 1, 2022 |
$ | $ | $ | $ | ||||||||||||
Additions |
- | - | ||||||||||||||
Disposals |
( |
) | - | ( |
) | ( |
) | |||||||||
Balance - June 30, 2022 |
$ | $ | $ | $ | ||||||||||||
Accumulated Depreciation |
||||||||||||||||
Balance - January 1, 2022 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Disposals |
- | |||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Balance - June 30, 2022 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Net book value - June 30, 2022 |
$ | $ | $ | |
$ |
December 31, 2021 | ||||||||||||||||
(in thousands) |
Leasehold Improvements |
Right of Use Assets- Property |
Other | Total | ||||||||||||
Cost |
||||||||||||||||
Balance - January 1, 2021 |
$ | $ | $ | $ | ||||||||||||
Additions |
- | - | ||||||||||||||
Disposals |
- | - | ( |
) | ( |
) | ||||||||||
Balance - December 31, 2021 |
$ | $ | $ | $ | ||||||||||||
Accumulated Depreciation |
||||||||||||||||
Balance - January 1, 2021 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Disposals |
- | - | ||||||||||||||
Depreciation |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Balance - December 31, 2021 |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Net book value - December 31, 2021 |
$ | $ | $ | |
$ |
18. |
Credit Facilities |
18.1. |
Sustainability-Linked Revolving Credit Facility |
June 30 | December 31 | |||||||
(in thousands) |
2022 | 2021 | ||||||
Current portion |
$ | |
$ | |
||||
Long-term portion |
||||||||
Gross bank debt outstanding 1 |
$ | |
$ | |
1) | There is $ |
18.2. |
Lease Liabilities |
June 30 | December 31 | |||||||
(in thousands) |
2022 | 2021 | ||||||
Current portion |
$ | |
$ | |
||||
Long-term portion |
||||||||
Total lease liabilities |
$ | $ |
June 30 | ||||
(in thousands) |
2022 | |||
Not later than 1 year |
$ | |||
Later than 1 year and not later than 5 years |
||||
Later than 5 years |
||||
Total lease liabilities |
$ | |
18.3. |
Finance Costs |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||
(in thousands) |
Note | 2022 | 2021 | 2022 | 2021 | |||||||||||||
Interest Expense During Period |
||||||||||||||||||
Average principal outstanding during period |
$ | $ | $ | $ | ||||||||||||||
Average effective interest rate during period |
18.1 | n.a. | n.a. | n.a. | ||||||||||||||
Total interest expense incurred during period |
$ | $ | $ | $ | ||||||||||||||
Costs related to undrawn credit facilities |
18.1 | |||||||||||||||||
Interest expense - lease liabilities |
18.2 | |||||||||||||||||
Letters of guarantee |
5.3 | - | - | |||||||||||||||
Total finance costs |
$ | |
$ | |
$ | |
$ | |
19. |
Issued Capital |
Note | June 30 | December 31 | ||||||||
(in thousands) |
2022 | 2021 | ||||||||
Issued capital |
||||||||||
Share capital issued and outstanding: |
19.1 | $ | |
$ | |
19.1. |
Shares Issued |
Number of Shares |
Weighted Average Price |
|||||||
At January 1, 2021 |
||||||||
Share purchase options exercised 1 |
Cdn$ |
|||||||
Restricted share units released 1 |
Cdn$ |
|||||||
At March 31, 2021 |
||||||||
Share purchase options exercised 1 |
Cdn$ |
|||||||
Restricted share units released 1 |
Cdn$ |
|||||||
Dividend reinvestment plan 2 |
US$ |
|||||||
At June 30, 2021 |
||||||||
Share purchase options exercised 1 |
Cdn$ |
|||||||
Dividend reinvestment plan 2 |
US$ |
|||||||
At December 31, 2021 |
||||||||
Share purchase options exercised 1 |
Cdn$ |
|||||||
Restricted share units released 1 |
Cdn$ |
|||||||
At March 31, 2022 |
||||||||
Share purchase options exercised 1 |
Cdn$ |
|||||||
Dividend reinvestment plan 2 |
US$ |
|||||||
At June 30, 2022 |
1) | The weighted average price of share purchase options exercised and restricted share units released represents the respective exercise price. |
2) | The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to have dividends reinvested directly into additional Wheaton common shares. The weighted average price for common shares issued under the DRIP represents the volume weighted average price of the common shares on the five trading days preceding the dividend payment date, less a discount of |
19.2. |
Dividends Declared |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||||||||||||||||||
(in thousands, except per share amounts) |
2022 |
2021 |
2022 |
2021 |
||||||||||||||||||||||||||||
Dividends declared per share |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Average number of shares eligible for dividend |
|
|
||||||||||||||||||||||||||||||
Total dividends paid |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Paid as follows: |
||||||||||||||||||||||||||||||||
Cash |
$ |
% |
$ | % | $ |
% |
$ | % | ||||||||||||||||||||||||
DRIP 1 |
% |
% | % |
% | ||||||||||||||||||||||||||||
Total dividends paid |
$ |
% |
$ |
% |
$ |
% |
$ |
% | ||||||||||||||||||||||||
Shares issued under the DRIP |
1) | The Company has implemented a DRIP whereby shareholders can elect to have dividends reinvested directly into additional Wheaton common shares. |
2) | As at June 30, 2022, cumulative dividends of $ |
20. |
Reserves |
Note | June 30 | December 31 | ||||||||
(in thousands) |
2022 | 2021 | ||||||||
Reserves |
||||||||||
Share purchase warrants |
20.1 | $ | |
$ | ||||||
Share purchase options |
20.2 | |||||||||
Restricted share units |
20.3 | |||||||||
Long-term investment revaluation reserve, net of tax |
20.4 | ( |
( |
|||||||
Total reserves |
$ | $ |
20.1. |
Share Purchase Warrants |
Number of Warrants |
Weighted Average Exercise Price |
Exchange Ratio |
Share Purchase Warrants Reserve |
|||||||||||||
Warrants outstanding |
$ |
$ | |
20.2. |
Share Purchase Options |
Six Months Ended June 30 |
||||||||
2022 |
2021 |
|||||||
Black-Scholes weighted average assumptions |
||||||||
Grant date share price and exercise price |
Cdn$ |
Cdn$ |
||||||
Expected dividend yield |
||||||||
Expected volatility |
||||||||
Risk-free interest rate |
||||||||
Expected option life, in years |
||||||||
Weighted average fair value per option granted |
Cdn$ |
Cdn$ |
||||||
Number of options issued during the period |
||||||||
Total fair value of options issued (000’s) |
$ | $ |
Number of Options Outstanding |
Weighted Average Exercise Price |
|||||||
At January 1, 2021 |
Cdn$ | |||||||
Granted (fair value - $ |
||||||||
Exercised |
( |
|||||||
At March 31, 2021 |
Cdn$ | |||||||
Exercised |
( |
|||||||
At June 30, 2021 |
Cdn$ | |||||||
Exercised |
( |
|||||||
At December 31, 2021 |
Cdn$ | |||||||
Granted (fair value - $ |
||||||||
Exercised |
( |
|||||||
At March 31, 2022 |
Cdn$ | |||||||
Exercised |
( |
|||||||
Forfeited |
( |
|||||||
At June 30, 2022 |
Cdn$ |
20.3. |
Restricted Share Units (“RSUs”) |
Number of RSUs Outstanding |
Weighted Average Intrinsic Value at Date Granted |
|||||||
At January 1, 2021 |
$ |
|||||||
Granted (fair value - $ |
||||||||
Released |
( |
|||||||
At March 31, 2021 |
$ |
|||||||
Released |
( |
|||||||
At June 30 and December 31, 2021 |
$ |
|||||||
Granted (fair value - $ |
||||||||
Released |
( |
|||||||
At March 31, 2022 |
$ |
|||||||
Granted |
||||||||
Forfeited |
( |
|||||||
At June 30, 2022 |
$ |
20.4. |
Long-Term Investment Revaluation Reserve |
(in thousands) |
Change in Fair Value |
Deferred Tax Recovery (Expense) |
Total | |||||||||
At January 1, 2021 |
$ | $ | ( |
$ | ||||||||
Unrealized gain (loss) on LTIs 1 |
( |
( |
( |
|||||||||
Reallocate reserve to retained earnings upon disposal of LTIs 1 |
( |
( |
||||||||||
At March 31, 2021 |
$ | ( |
$ | ( |
$ | ( |
||||||
Unrealized gain (loss) on LTIs 1 |
( |
( |
( |
|||||||||
At June 30, 2021 |
$ | ( |
$ | ( |
$ | ( |
||||||
Unrealized gain (loss) on LTIs 1 |
( |
( |
||||||||||
Reallocate reserve to retained earnings upon disposal of LTIs 1 |
( |
( |
||||||||||
At December 31, 2021 |
$ | ( |
$ | ( |
$ | ( |
||||||
Unrealized gain (loss) on LTIs 1 |
( |
( |
||||||||||
At March 31, 2022 |
$ | ( |
$ | ( |
$ | ( |
||||||
Unrealized gain (loss) on LTIs 1 |
( |
( |
||||||||||
At June 30, 2022 |
$ | ( |
$ | $ | ( |
1) |
LTIs refers to long-term investments in common shares held. |
21. |
Share Based Compensation |
21.1. |
Performance Share Units (“PSUs”) |
(in thousands, except for number of PSUs outstanding) |
Number of PSUs Outstanding |
PSU accrual liability |
||||||
At January 1, 2021 |
$ | |
||||||
Granted |
- | |||||||
Accrual related to the fair value of the PSUs outstanding |
- | |||||||
Foreign exchange adjustment |
- | |||||||
At March 31, 2021 |
$ | |
||||||
Accrual related to the fair value of the PSUs outstanding |
- | |||||||
Foreign exchange adjustment |
- | |||||||
Paid |
( |
( |
||||||
At June 30, 2021 |
$ | |
||||||
Accrual related to the fair value of the PSUs outstanding |
- | |||||||
Foreign exchange adjustment |
- | ( |
||||||
At December 31, 2021 |
$ | |
||||||
Granted |
- | |||||||
Accrual related to the fair value of the PSUs outstanding |
- | |||||||
Foreign exchange adjustment |
- | |||||||
Forfeited |
( |
( |
||||||
At March 31, 2022 |
$ | |
||||||
Accrual related to the fair value of the PSUs outstanding |
- | |||||||
Foreign exchange adjustment |
- | ( |
||||||
Paid |
( |
( |
||||||
At June 30, 2022 |
$ | |
Year of Grant |
Year of Maturity |
Number outstanding |
Estimated Value Per PSU at Maturity |
Anticipated Performance Factor at Maturity |
Percent of Vesting Period Complete at Jun 30, 2022 |
PSU Liability at Jun 30, 2022 |
||||||||||||||||||||
2019 | $ |
|||||||||||||||||||||||||
2020 | $ |
|||||||||||||||||||||||||
2021 | $ |
|||||||||||||||||||||||||
2022 | $ |
|||||||||||||||||||||||||
$ | |
22. |
Earnings per Share (“EPS”) and Diluted Earnings per Share (“Diluted EPS”) |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Basic weighted average number of shares outstanding |
|
|
|
|
||||||||||||
Effect of dilutive securities |
||||||||||||||||
Share purchase options |
|
|||||||||||||||
Share purchase warrants |
- |
- |
- |
|||||||||||||
Restricted share units |
||||||||||||||||
Diluted weighted average number of shares outstanding |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Share purchase options |
||||||||||||||||
Share purchase warrants |
|
|
||||||||||||||
Total |
23. |
Supplemental Cash Flow Information |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Change in non-cash working capital |
||||||||||||||||
Accounts receivable |
$ | $ | ( |
$ | ( |
$ | ( |
|||||||||
Accounts payable and accrued liabilities |
( |
( |
( |
|||||||||||||
Other |
( |
( |
( |
( |
||||||||||||
Total change in non-cash working capital |
$ | $ | ( |
$ | ( |
$ | ( |
June 30 | December 31 | |||||||
(in thousands) |
2022 | 2021 | ||||||
Cash and cash equivalents comprised of: |
||||||||
Cash |
$ | $ | ||||||
Cash equivalents |
||||||||
Total cash and cash equivalents |
$ | $ |
24. |
Income Taxes |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Current income tax expense (recovery) |
$ | ( |
$ | ( |
$ | $ | ( |
|||||||||
Deferred income tax expense (recovery) related to: |
||||||||||||||||
Origination and reversal of temporary differences |
$ | $ | $ | $ | ||||||||||||
Write down (reversal of write down) or recognition of prior period temporary differences |
( |
( |
( |
( |
||||||||||||
Total deferred income tax expense (recovery) |
$ | $ | ( |
$ | $ | |||||||||||
Income tax expense (recovery) recognized in net earnings |
$ | $ | ( |
$ | $ | ( |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income tax expense (recovery) related to LTIs - common shares held |
$ | ( |
$ | $ | ( |
$ |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Income tax expense (recovery) recognized in equity |
$ | $ | $ | ( |
$ | ( |
Three Months Ended June 30 |
Six Months Ended June 30 |
|||||||||||||||
(in thousands) |
2022 |
2021 |
2022 |
2021 |
||||||||||||
Earnings before income taxes |
$ | $ | $ | $ | ||||||||||||
Canadian federal and provincial income tax rates |
||||||||||||||||
Income tax expense (recovery) based on above rates |
$ | $ | $ | $ | ||||||||||||
Non-deductible portion of capital losses (non-taxable portion of capital gains) |
( |
|||||||||||||||
Non-deductible stock based compensation and other |
||||||||||||||||
Differences in tax rates in foreign jurisdictions |
( |
( |
( |
( |
||||||||||||
Current period unrecognized temporary differences |
( |
( |
||||||||||||||
Write down (reversal of write down) or recognition of prior period temporary differences |
( |
( |
( |
( |
||||||||||||
Income tax expense (recovery) |
$ |
$ | ( |
$ |
$ | ( |
) |
Six Months Ended June 30, 2022 | ||||||||||||||||||||
Recognized deferred income tax assets and liabilities | Opening Balance |
Recovery (Expense) Recognized In Net Earnings |
Recovery (Expense) Recognized In OCI |
Recovery (Expense) Recognized In Shareholders’ Equity |
Closing Balance |
|||||||||||||||
Deferred tax assets |
||||||||||||||||||||
Non-capital loss carryforward 1 |
$ | $ | $ | - | $ | $ | ||||||||||||||
Other 2 |
- | |||||||||||||||||||
Deferred tax liabilities |
||||||||||||||||||||
Interest capitalized for accounting |
( |
- | - | - | ( |
|||||||||||||||
Debt financing fees 3 |
( |
- | - | ( |
||||||||||||||||
Kutcho Convertible Note |
( |
- | - | |||||||||||||||||
Unrealized gains on long-term investments |
( |
- | ( |
|||||||||||||||||
Mineral stream interests 4 |
( |
( |
- | - | ( |
|||||||||||||||
Foreign withholding tax |
( |
( |
- | - | ( |
|||||||||||||||
Total |
$ | ( |
$ | ( |
$ | $ | $ | ( |
1) | As at June 30, 2022, the Company had recognized the tax effect on $ non-capital losses against deferred tax liabilities. |
2) | Other includes capital assets, cobalt inventory, charitable donation carryforward, and PSU and pension liabilities. |
3) | Debt and share financing fees are deducted over a five year period for Canadian income tax purposes. For accounting purposes, debt financing fees are deducted over the term of the credit facility and share financing fees are charged directly to issued capital. |
4) | The Company’s position, as reflected in its filed Canadian income tax returns and consistent with the terms of the PMPAs, is that the cost of the precious metal acquired under the Canadian PMPAs is equal to the market value while a deposit is outstanding (where applicable to an agreement), and the cash cost thereafter. For accounting purposes, the cost of the mineral stream interests is depleted on a unit-of-production |
Year Ended December 31, 2021 | ||||||||||||||||||||
Recognized deferred income tax assets and liabilities | Opening Balance |
Recovery (Expense) Recognized In Net Earnings |
Recovery (Expense) Recognized In OCI |
Recovery (Expense) Recognized In Shareholders’ Equity |
Closing Balance |
|||||||||||||||
Deferred tax assets |
||||||||||||||||||||
Non-capital loss carryforward |
$ | $ | $ | - | $ | $ | ||||||||||||||
Capital loss carryforward |
( |
- | ||||||||||||||||||
Other |
( |
- | - | |||||||||||||||||
Deferred tax liabilities |
||||||||||||||||||||
Interest capitalized for accounting |
( |
- | - | - | ( |
|||||||||||||||
Debt and share financing fees |
( |
( |
- | ( |
||||||||||||||||
Unrealized gains on long-term investments |
( |
- | ( |
|||||||||||||||||
Mineral stream interests |
( |
( |
- | - | ( |
|||||||||||||||
Foreign withholding tax |
( |
- | - | ( |
||||||||||||||||
Total |
$ | ( |
$ | ( |
$ | $ | $ | ( |
June 30 | December 31 | |||||||
(in thousands) |
2022 | 2021 | ||||||
Non-capital loss carryforward 1 |
$ | $ | ||||||
Mineral stream interests |
||||||||
Other |
||||||||
Kutcho Convertible Note |
||||||||
Unrealized losses on long-term investments |
||||||||
Total |
$ | $ |
1) | As at June 30, 2022, the Company had not recognized the tax effect on $ non-capital losses as a deferred tax asset. |
25. |
Other Current Assets |
June 30 |
December 31 |
|||||||||||
(in thousands) |
Note |
2022 |
2021 |
|||||||||
Non-revolving term loan |
15 | $ | $ | |||||||||
Prepaid expenses |
||||||||||||
Cobalt inventory |
||||||||||||
Other |
||||||||||||
Total other current assets |
$ | $ |
26. |
Other Long-Term Assets |
June 30 |
December 31 |
|||||||||||
(in thousands) |
Note |
2022 |
2021 |
|||||||||
Intangible assets |
$ | $ | ||||||||||
Debt issue costs - Revolving Facility |
18.1 | |||||||||||
Other |
||||||||||||
Total other long-term assets |
$ | $ |
27. |
Commitments and Contingencies |
Mineral Stream Interests |
Attributable Payable Production to be Purchased |
Per Unit of Measurement Cash Payment 1 |
Term of Agreement |
Date of Original Contract |
||||||||||||||||||||||||||||||||||||||||||||
Gold |
Silver |
Palladium |
Cobalt |
Platinum |
Gold |
Silver |
Palladium |
Cobalt |
Platinum |
|||||||||||||||||||||||||||||||||||||||
Peñasquito |
$ | -07 |
||||||||||||||||||||||||||||||||||||||||||||||
Constancia |
$ | ² | $ | -12 |
||||||||||||||||||||||||||||||||||||||||||||
Salobo |
$ | -13 |
||||||||||||||||||||||||||||||||||||||||||||||
Sudbury |
$ | -13 |
||||||||||||||||||||||||||||||||||||||||||||||
Antamina |
-15 |
|||||||||||||||||||||||||||||||||||||||||||||||
San Dimas |
³ | ³ | $ | -18 |
||||||||||||||||||||||||||||||||||||||||||||
Stillwater |
4 |
5 |
5 |
-18 |
||||||||||||||||||||||||||||||||||||||||||||
Voisey’s Bay |
6 |
7 |
-18 |
|||||||||||||||||||||||||||||||||||||||||||||
Marathon |
8 |
8 |
5 |
5 |
-22 |
|||||||||||||||||||||||||||||||||||||||||||
Other |
||||||||||||||||||||||||||||||||||||||||||||||||
Los Filos |
$ | -04 |
||||||||||||||||||||||||||||||||||||||||||||||
Zinkgruvan |
$ | -04 |
||||||||||||||||||||||||||||||||||||||||||||||
Yauliyacu |
9 |
$ | 10 |
-06 |
||||||||||||||||||||||||||||||||||||||||||||
Stratoni |
$ | -07 |
||||||||||||||||||||||||||||||||||||||||||||||
Neves-Corvo |
$ | -07 |
||||||||||||||||||||||||||||||||||||||||||||||
Aljustrel |
¹¹ | -07 |
||||||||||||||||||||||||||||||||||||||||||||||
Minto |
% ¹² | ¹³ | $ | -08 |
||||||||||||||||||||||||||||||||||||||||||||
Keno Hill |
14 |
-08 |
||||||||||||||||||||||||||||||||||||||||||||||
Pascua-Lama |
% |
$ | -09 |
|||||||||||||||||||||||||||||||||||||||||||||
Copper World 15 |
$ | $ | -10 |
|||||||||||||||||||||||||||||||||||||||||||||
Loma de La Plata |
$ | n/a 16 |
||||||||||||||||||||||||||||||||||||||||||||||
777 |
$ | $ | -12 |
|||||||||||||||||||||||||||||||||||||||||||||
Marmato |
1 7 |
17 |
18 |
18 |
-20 |
|||||||||||||||||||||||||||||||||||||||||||
Cozamin |
19 |
-20 |
||||||||||||||||||||||||||||||||||||||||||||||
Santo Domingo |
20 |
5 |
-21 |
|||||||||||||||||||||||||||||||||||||||||||||
Fenix |
21 |
5 |
-21 |
|||||||||||||||||||||||||||||||||||||||||||||
Blackwater |
22 |
22 |
5 |
-21 |
||||||||||||||||||||||||||||||||||||||||||||
Curipamba |
23 |
23 |
5 |
5 |
-22 |
|||||||||||||||||||||||||||||||||||||||||||
Goose |
24 |
5 |
-22 |
|||||||||||||||||||||||||||||||||||||||||||||
Early Deposit |
||||||||||||||||||||||||||||||||||||||||||||||||
Toroparu |
$ | $ | -13 |
|||||||||||||||||||||||||||||||||||||||||||||
Cotabambas |
25 |
25 |
$ | $ | -16 |
|||||||||||||||||||||||||||||||||||||||||||
Kutcho |
-17 |
1) | The production payment is measured as either a fixed amount per unit of metal delivered, or as a percentage of the spot price of the underlying metal on the date of delivery. Contracts where the payment is a fixed amount per unit of metal delivered are subject to an annual inflationary increase, with the exception of Loma de La Plata and Sudbury. Additionally, should the prevailing market price for the applicable metal be lower than this fixed amount, the per unit cash payment will be reduced to the prevailing market price, with the exception of Yauliyacu where the per ounce cash payment will not be reduced below $ |
2) | Subject to an increase to $ |
3) | Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to |
4) | The Company is committed to purchase |
5) | To be increased to |
6) | Once the Company has received |
7) | To be increased to |
8) | Once the Company has received ounces of platinum under the Marathon PMPA, the attributable gold and platinum production will be reduced to |
9) | Per annum the Company will purchase an amount equal to |
10) | Should the market price of silver exceed $ |
11) | Wheaton only has the rights to silver contained in concentrate containing less than |
12) | The Company is committed to acquire |
13) | The Company is currently negotiating an amendment to the Minto PMPA such that the cash payment per ounce of gold delivered will be the lower of |
14) | The price paid per ounce of silver delivered under the Keno Hill PMPA is between |
15) | Copper World Complex (formerly referred to as Rosemont in these financial statements). |
16) |
Terms of the agreement not yet finalized. |
1 7 ) |
Once Wheaton has received |
1 8 ) |
To be increased to |
1 9 ) |
Once Wheaton has received |
20) | Once the Company has received Santo Domingo PMPA, the Company’s attributable gold production will be reduced to |
21) | Once the Company has received ounces of gold under the Fenix PMPA, the Company attributable gold production will be reduced to until |
22) |
Once the Company has received |
2 3 ) |
Once the Company has received |
2 4 ) |
The Company is committed to purchase |
2 5 ) |
Once million silver equivalent ounces attributable to Wheaton have been produced under the Cotabambas PMPA, the attributable production will decrease to |
Obligations With Scheduled Payment Dates | ||||||||||||||||||||||||||||
(in thousands) |
2022 | 2023 - 2024 |
2025 - 2026 |
After 2026 | Sub-Total |
Other Commitments |
Total | |||||||||||||||||||||
Payments for mineral stream interests |
||||||||||||||||||||||||||||
Copper World 1 |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||||
Loma de La Plata |
- | - | - | - | - | |||||||||||||||||||||||
Marmato |
- | - | - | - | - | |||||||||||||||||||||||
Santo Domingo |
- | - | - | - | - | |||||||||||||||||||||||
Salobo 2 |
- | - | - | - | ||||||||||||||||||||||||
Fenix Gold |
- | - | - | - | - | |||||||||||||||||||||||
Blackwater |
- | - | - | - | - | |||||||||||||||||||||||
Marathon |
- | - | - | |||||||||||||||||||||||||
Curipamba |
- | - | - | |||||||||||||||||||||||||
Goose |
- | - | - | - | - | |||||||||||||||||||||||
Payments for early deposit mineral stream interest |
||||||||||||||||||||||||||||
Toroparu 3 |
- | - | - | - | ||||||||||||||||||||||||
Cotabambas |
- | - | ||||||||||||||||||||||||||
Kutcho |
- | - | - | - | - | |||||||||||||||||||||||
Leases liabilities |
- | - | ||||||||||||||||||||||||||
Total contractual obligations |
$ | |
$ | |
$ | |
$ | - | $ | |
$ | $ | |
1) | Copper World Complex (formerly referred to as Rosemont in these financial statements). Figure includes contingent transaction costs of $ |
2) | As more fully explained on the following page, assuming the Salobo III expansion project achieves 12 Mtpa of additional processing capacity (bringing total processing capacity at Salobo to 36 Mtpa) by the end of 2023, the Company would expect to pay an estimated expansion payment of between $ |
3) | The Company anticipates construction to begin in this period. |
28. |
Segmented Information |
Three Months Ended June 30, 2022 |
||||||||||||||||||||||||
(in thousands) |
Sales |
Cost of Sales |
Depletion |
Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||
Gold |
||||||||||||||||||||||||
Salobo |
$ | |
$ | |
$ | |
$ | $ | $ | |||||||||||||||
Sudbury 1 |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
San Dimas |
||||||||||||||||||||||||
Stillwater |
||||||||||||||||||||||||
Other 2 |
||||||||||||||||||||||||
Total gold interests |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Silver |
||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Antamina |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
Other 3 |
||||||||||||||||||||||||
Total silver interests |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Palladium |
||||||||||||||||||||||||
Stillwater |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Platinum |
||||||||||||||||||||||||
Marathon |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | |||||||||||||
Cobalt |
||||||||||||||||||||||||
Voisey’s Bay |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total mineral stream interests |
$ | $ | $ | $ | |
$ | |
$ | |
|||||||||||||||
Other |
||||||||||||||||||||||||
General and administrative |
$ | ( |
$ | ( |
||||||||||||||||||||
Share based compensation |
( |
( |
||||||||||||||||||||||
Donations and community investments |
( |
( |
||||||||||||||||||||||
Finance costs |
( |
( |
||||||||||||||||||||||
Other |
( |
|||||||||||||||||||||||
Income tax |
( |
( |
||||||||||||||||||||||
Total other |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Consolidated |
$ | $ | $ |
1) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
2) | Where a gold interest represents less than 777 , Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont in these financial statements), Santo Domingo, Fenix, Blackwater, Marathon, Curipamba and Goose gold interests.On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
3) | Where a silver interest represents less than non-operating Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex (formerly referred to as Rosemont in these financial statements), Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Three Months Ended June 30, 2021 |
||||||||||||||||||||||||
(in thousands) |
Sales |
Cost of Sales |
Depletion |
Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||
Gold |
||||||||||||||||||||||||
Salobo |
$ | |
$ | |
$ | |
$ | $ | $ | |||||||||||||||
Sudbury 1 |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
San Dimas |
||||||||||||||||||||||||
Stillwater |
||||||||||||||||||||||||
Other 2 |
||||||||||||||||||||||||
Total gold interests |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Silver |
||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Antamina |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
Other 3 |
||||||||||||||||||||||||
Total silver interests |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Palladium |
||||||||||||||||||||||||
Stillwater |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Cobalt |
||||||||||||||||||||||||
Voisey’s Bay |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total mineral stream interests |
$ | $ | $ | $ | |
$ | |
$ | |
|||||||||||||||
Other |
||||||||||||||||||||||||
General and administrative |
$ | ( |
$ | ( |
||||||||||||||||||||
Share based compensation |
( |
( |
||||||||||||||||||||||
Donations and community investments |
( |
( |
||||||||||||||||||||||
Finance costs |
( |
( |
||||||||||||||||||||||
Other |
( |
|||||||||||||||||||||||
Income tax |
( |
|||||||||||||||||||||||
Total other |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Consolidated |
$ | $ | $ |
1) | Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
2) | Where a gold interest represents less than non-operating Copper World Complex gold interest (formerly referred to as Rosemont in these financial statements). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
3) | Where a silver interest represents less than the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the Company’s CEO for the purpose of assessing performance, the silver interest has been summarized under Other silver interests. Other silver interests are comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Aljustrel, Neves-Corvo, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont in these financial statements) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Six Months Ended June 30, 2022 |
||||||||||||||||||||||||
(in thousands) |
Sales |
Cost of Sales |
Depletion |
Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||
Gold |
||||||||||||||||||||||||
Salobo |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Sudbury 1 |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
San Dimas |
||||||||||||||||||||||||
Stillwater |
||||||||||||||||||||||||
Other 2 |
||||||||||||||||||||||||
Total gold interests |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Silver |
||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Antamina |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
Other 3 |
||||||||||||||||||||||||
Total silver interests |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Palladium |
||||||||||||||||||||||||
Stillwater |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Platinum |
||||||||||||||||||||||||
Marathon |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | |||||||||||||
Cobalt |
||||||||||||||||||||||||
Voisey’s Bay |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total mineral stream interests |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Other |
||||||||||||||||||||||||
General and administrative |
$ | ( |
$ | ( |
||||||||||||||||||||
Share based compensation |
( |
( |
||||||||||||||||||||||
Donations and community investments |
( |
( |
||||||||||||||||||||||
Finance costs |
( |
( |
||||||||||||||||||||||
Other |
||||||||||||||||||||||||
Income tax |
( |
( |
||||||||||||||||||||||
Total other |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Consolidated |
$ | $ | $ |
1 ) |
Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
2 ) |
Where a gold interest represents less than of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the Company’s CEO for the purpose of assessing performance, the gold interest has been summarized under Other gold interests. Other gold interests are comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex (formerly referred to as Rosemont in these financial statements), Santo Domingo, Fenix, Blackwater, Marathon, Curipamba and Goose gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
3 ) |
Where a silver interest represents less than of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the Company’s CEO for the purpose of assessing performance, the silver interest has been summarized under Other silver interests. Other silver interests are comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama, Stratoni, Copper World Complex (formerly referred to as Rosemont in these financial statements), Blackwater and Curipamba silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Six Months Ended June 30, 2021 |
||||||||||||||||||||||||
(in thousands) |
Sales |
Cost of Sales |
Depletion |
Net Earnings |
Cash Flow From Operations |
Total Assets |
||||||||||||||||||
Gold |
||||||||||||||||||||||||
Salobo |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Sudbury 1 |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
San Dimas |
||||||||||||||||||||||||
Stillwater |
||||||||||||||||||||||||
Other 2 |
||||||||||||||||||||||||
Total gold interests |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Silver |
||||||||||||||||||||||||
Peñasquito |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Antamina |
||||||||||||||||||||||||
Constancia |
||||||||||||||||||||||||
Other 3 |
||||||||||||||||||||||||
Total silver interests |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Palladium |
||||||||||||||||||||||||
Stillwater |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Cobalt |
||||||||||||||||||||||||
Voisey’s Bay |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Total mineral stream interests |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
Other |
||||||||||||||||||||||||
General and administrative |
$ | ( |
$ | ( |
||||||||||||||||||||
Share based compensation |
( |
( |
||||||||||||||||||||||
Donations and community investments |
( |
( |
||||||||||||||||||||||
Finance costs |
( |
( |
||||||||||||||||||||||
Other |
||||||||||||||||||||||||
Income tax |
( |
|||||||||||||||||||||||
Total other |
$ | ( |
$ | ( |
$ | |||||||||||||||||||
Consolidated |
$ | $ | $ |
1 ) |
Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. |
2 ) |
Where a gold interest represents less than of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the Company’s CEO for the purpose of assessing performance, the gold interest has been summarized under Other gold interests. Other gold interests are comprised of the operating 777, Minto and Marmato gold interests as well as the non-operating Copper World Complex gold interest (formerly referred to as Rosemont in these financial statements). On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. |
3 ) |
Where a silver interest represents less than of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the Company’s CEO for the purpose of assessing performance, the silver interest has been summarized under Other silver interests. Other silver interests are comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Aljustrel, Neves-Corvo, Minto, Keno Hill, 777, Marmato and Cozamin silver interests as well as the non-operating Loma de La Plata, Copper World Complex (formerly referred to as Rosemont in these financial statements) and Pascua-Lama silver interests. The Stratoni mine was placed into care and maintenance during Q4-2021. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On June 22, 2022, Alexco elected to temporarily suspend milling operations for five to six months to focus on advancing underground development at Keno Hill. |
Sales |
Carrying Amount at June 30, 2022 |
|||||||||||||||||||||||||||||||||||||||
(in thousands) |
Three Month Ended Jun 30, 2022 |
Six Months Ended Jun 30, 2022 |
Gold Interests |
Silver Interests |
Palladium Interests |
Platinum Interests |
Cobalt Interests |
Total |
||||||||||||||||||||||||||||||||
North America |
||||||||||||||||||||||||||||||||||||||||
Canada |
$ | $ | $ | $ | $ | - | $ | $ | $ | |||||||||||||||||||||||||||||||
United States |
- | - | ||||||||||||||||||||||||||||||||||||||
Mexico |
- | - | - | |||||||||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Greece |
( |
- | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Portugal |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Sweden |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
South America |
||||||||||||||||||||||||||||||||||||||||
Argentina/Chile 1 |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Argentina |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Chile |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Brazil |
|
|
- | - | - | - | ||||||||||||||||||||||||||||||||||
Peru |
- | - | - | |||||||||||||||||||||||||||||||||||||
Ecuador |
- | - | - | |||||||||||||||||||||||||||||||||||||
Colombia |
- | - | - | |||||||||||||||||||||||||||||||||||||
Consolidated |
$ | $ | $ | $ | |
$ | |
$ | |
$ | |
$ |
1) |
Includes the Pascua-Lama project, which straddles the border of Argentina and Chile. |
Sales |
Carrying Amount at June 30, 2021 |
|||||||||||||||||||||||||||||||||||||||
(in thousands) |
Three Month Ended Jun 30, 2021 |
Six Months Ended Jun 30, 2021 |
Gold Interests |
Silver Interests |
Palladium Interests |
Platinum Interests |
Cobalt Interests |
Total |
||||||||||||||||||||||||||||||||
North America |
||||||||||||||||||||||||||||||||||||||||
Canada |
$ | $ | $ | |
$ | |
$ | - | $ | - | $ | $ | |
|||||||||||||||||||||||||||
United States |
- | - | ||||||||||||||||||||||||||||||||||||||
Mexico |
- | - | - | |||||||||||||||||||||||||||||||||||||
Europe |
||||||||||||||||||||||||||||||||||||||||
Greece |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Portugal |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Sweden |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
South America |
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Argentina/Chile 1 |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Argentina |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Chile |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Brazil |
- | - | - | - | ||||||||||||||||||||||||||||||||||||
Peru |
- | - | - | |||||||||||||||||||||||||||||||||||||
Colombia |
- | - | - | |||||||||||||||||||||||||||||||||||||
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Consolidated |
$ | $ | $ | $ | $ | $ | - | $ | $ |
1) |
Includes the Pascua-Lama project, which straddles the border of Argentina and Chile. |
29. |
Subsequent Events |
CANADA – HEAD OFFICE |
TRANSFER AGENT | |
WHEATON PRECIOUS METALS CORP. | TSX Trust Company | |
Suite 3500 | 1600 – 1066 West Hastings Street | |
1021 West Hastings Street | Vancouver, BC V6E 3X1 | |
Vancouver, BC V6E 0C3 | ||
Canada | Toll-free in Canada and the United States: | |
T: 1 604 684 9648 | 1 800 387 0825 | |
F: 1 604 684 3123 | ||
Outside of Canada and the United States: | ||
CAYMAN ISLANDS OFFICE |
1 416 682 3860 | |
Wheaton Precious Metals International Ltd. | ||
Suite 300, 94 Solaris Avenue | E: shareholderinquiries@tmx.com | |
Camana Bay | ||
P.O. Box 1791 GT, Grand Cayman | AUDITORS | |
Cayman Islands KY1-1109 |
Deloitte LLP | |
Vancouver, BC | ||
STOCK EXCHANGE LISTING |
||
Toronto Stock Exchange: WPM | INVESTOR RELATIONS | |
New York Stock Exchange: WPM | ||
London Stock Exchange: LSE | PATRICK DROUIN | |
Senior Vice President, | ||
DIRECTORS |
Sustainability & Investor Relations | |
GEORGE BRACK, Chairman | T: 1 604 684 9648 | |
JOHN BROUGH | TF: 1 844 288 9878 | |
PETER GILLIN | E: info@wheatonpm.com | |
CHANTAL GOSSELIN | ||
JAIMIE DONOVAN |
||
GLENN IVES | ||
CHARLES JEANNES | ||
EDUARDO LUNA | ||
MARILYN SCHONBERNER | ||
RANDY SMALLWOOD | ||
OFFICERS |
||
RANDY SMALLWOOD | ||
President & Chief Executive Officer | ||
CURT BERNARDI | ||
Senior Vice President, | ||
Legal & Corporate Secretary | ||
GARY BROWN | ||
Senior Vice President | ||
& Chief Financial Officer | ||
PATRICK DROUIN | ||
Senior Vice President, | ||
Sustainability & Investor Relations | ||
HAYTHAM HODALY | ||
Senior Vice President, | ||
Corporate Development |