Wheaton Precious Metals Corp. (WPM) reported $299.06 million in revenue for the quarter ended June 2024, representing a year-over-year increase of 12.9%. EPS of $0.33 for the same period compares to $0.31 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $292.18 million, representing a surprise of +2.36%. The company delivered an EPS surprise of +13.79%, with the consensus EPS estimate being $0.29. While investors scrutinize revenue and earnings changes year-over-year and how they ...

Wheaton Precious Metals Corp. (WPM) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.79%. A quarter ago, it was expected that this company would post earnings of $0.29 per share when it actually produced earnings of $0.36, delivering a surprise of 24.14%. Over the last four quarter ...

VANCOUVER, BC, Aug. 6, 2024 /PRNewswire/ - Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to announce that its Board of Directors has declared its third quarterly cash dividend payment for 2024 of US$0.155 per common share. The third quarterly cash dividend for 2024 will be paid to holders of record of Wheaton common shares as of the close of business on August 21, 2024, and will be distributed on or about September 4, 2024. The ex-dividend trading date is August 21, 2024. The declar ...

BRAZIL - 2022/08/30: In this photo illustration, the Wheaton Precious Metals Corp. logo is displayed ... [+] on a smartphone screen. (Photo illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images) SOPA Images/LightRocket via Getty Images Wheaton Precious Metals stock (NYSE: WPM) is poised to publish its Q2 2024 results on August 8, reporting on a quarter that saw gold prices move considerably higher. We estimate that the company's revenue will come in at about $312 million, up about 28% yea ...

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 7. On the other hand, if they miss, the stock may move lower. This company is expected to post quarterly earnings of $0.30 per share in its upcoming report, which represents a year-over-year change of -3.2%. Estimate Revisions Trend Earnings Whisper The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Acc ...

Core Viewpoint - The article discusses the momentum investing strategy and highlights Wheaton Precious Metals Corp. (WPM) as a promising momentum pick based on its Momentum Style Score and recent performance metrics [1][2][5]. Earnings Outlook - WPM has seen a positive trend in earnings estimates, with 6 upward revisions compared to 2 downward revisions over the past two months, raising the consensus estimate from $1.28 to $1.36 [8]. - For the next fiscal year, there have also been 6 upward revisions and 2 downward revisions in earnings estimates [8]. Price Performance - WPM shares have increased by 0.76% over the past week, while the Zacks Mining - Miscellaneous industry has decreased by 1.32% during the same period [7]. - Over the last month, WPM's price change is 13.23%, significantly outperforming the industry's 0.26% [7]. - In the last quarter, WPM shares have risen by 15.73%, and over the past year, they have gained 32.27%, compared to the S&P 500's increases of 9.88% and 24.06%, respectively [10]. Trading Volume - WPM's average 20-day trading volume is 1,224,639 shares, which serves as a bullish indicator when combined with rising stock prices [13]. Momentum Style Score - WPM currently holds a Momentum Style Score of B, indicating solid momentum potential [5][15]. - The Zacks Rank for WPM is 2 (Buy), suggesting that stocks with this rating and a Momentum Score of A or B tend to outperform the market in the following month [6][15].

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Wheaton Precious Metals Corp. (WPM) , which belongs to the Zacks Mining - Miscellaneous industry. When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 18.32%, on average, in the last two quarters. For the most recent quarter, Wheaton Precious Metals was expected t ...

Wheaton Precious Metals Corp. (NYSE:WPM) Q4 2023 Earnings Conference Call March 15, 2024 11:00 AM ET Company Participants Emma Murray - VP, Investor Relations Randy Smallwood - President and Chief Executive Officer Gary Brown - Senior Vice President & Chief Financial Officer Haytham Hodaly - Senior Vice President, Corporate Development Curt Bernardi - Senior Vice President, Legal and Corporate Secretary Wes Carson - Vice President, Mining Operations Conference Call Participants Richard Hatch - Berenberg Tan ...

[Management's Discussion and Analysis of Results of Operations and Financial Condition for the Year Ended December 31, 2023](index=2&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Results%20of%20Operations%20and%20Financial%20Condition%20for%20the%20Year%20Ended%20December%2031,%202023) [Overview](index=3&type=section&id=Overview) Wheaton Precious Metals Corp. is a precious metal streaming company generating revenue from the sale of gold, silver, palladium, and cobalt, with 38 long-term purchase agreements across 32 mining companies in 16 countries, experiencing increased gold production and decreased silver production in 2023 - Wheaton Precious Metals Corp. is a precious metal streaming company, generating revenue from gold, silver, palladium, and cobalt sales[4](index=4&type=chunk) - The company has 38 long-term purchase agreements (PMPAs and royalty agreements) with 32 mining companies, covering 45 mining assets in 16 countries[5](index=5&type=chunk) Average Per Ounce/Pound Price Paid for Metals Acquired (2023) | Metal | Average Price Paid | | :------ | :----------------- | | Gold | $455 | | Silver | $5.05 | | Palladium | $241 | | Cobalt | $2.96 per pound | Operational Overview: Units Produced (2023 vs. 2022) | Units Produced | 2023 | 2022 | Change | | :------------- | :-------- | :-------- | :------- | | Gold ounces | 374,585 | 285,601 | 31.2 % | | Silver ounces | 17,176 | 23,800 | (27.8)% | | Palladium ounces | 15,800 | 15,485 | 2.0 % | | Cobalt pounds | 673 | 724 | (7.1)% | | Gold equivalent ounces | 619,608 | 616,755 | 0.5 % | [Highlights](index=5&type=section&id=Highlights) In Q4 2023, Wheaton Precious Metals saw a 22% increase in GEO production and a 33% rise in revenue, primarily driven by higher gold production from Salobo and increased commodity prices, while full-year 2023 GEO production was comparable to the prior year, but revenue decreased by 4.6% due to lower sales volumes, partially offset by higher realized commodity prices, alongside strategic acquisitions and dividend declarations Q4 2023 Operational and Financial Highlights (YoY) | Metric | Q4 2023 (GEOs) | Change (YoY) | Primary Driver | | :----- | :------------- | :----------- | :------------- | | Production | 174,200 | +22% | Salobo mill throughput expansion, gold production +64% | | Sales Volumes | 162,360 | +17% | Higher production, partially offset by PBND changes | | Revenue | $313 million | +33% | 13% increase in realized commodity prices, higher sales volumes | | Gross Margin | $177 million | +$56 million | Higher revenue | | Net Earnings | $168 million | +$2 million | Higher gross margin offset by prior year disposal gain | | Adjusted Net Earnings | $165 million | +59% | Higher gross margin | | Operating Cashflow | $242 million | +$70 million | Higher gross margin and interest income | Full Year 2023 Operational and Financial Highlights (YoY) | Metric | 2023 (GEOs) | Change (YoY) | Primary Driver | | :----- | :---------- | :----------- | :------------- | | Production | 619,600 | Comparable | Increased Salobo/Constancia production offset by mine closures/strikes | | Revenue | $1,016 million | (4.6)% | 10% decrease in sales volumes offset by 6% increase in realized prices | | Gross Margin | $573 million | +$8 million | Higher revenue | | Net Earnings | $538 million | (19.6)% | Prior year included $156M disposal income | | Adjusted Net Earnings | $533 million | +$28 million | Higher gross margin and interest income | | Operating Cashflow | $751 million | +$7 million | Higher interest income | - Declared a quarterly dividend of **$0.155 per common share** on March 14, 2024[15](index=15&type=chunk) - Strategic corporate developments in 2023 included new PMPAs for Cangrejos, Mineral Park, Platreef, Kudz Ze Kayah, and Curraghinalt projects, as well as a new NSR royalty on the Black Pine Oxide Gold Project and Mt Todd gold project[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) [Outlook](index=7&type=section&id=Outlook) Wheaton Precious Metals forecasts 2024 gold equivalent production to be consistent with 2023, with long-term production expected to increase by approximately 40% by 2028 to over 800,000 GEOs, and average over 850,000 GEOs from 2029-2033, driven by operating assets, development projects, and pre-development projects, supported by strong liquidity for future acquisitions Production Outlook (2024, 2028, 2029-2033 Average) | Metal | 2023 Actual Production | 2024 Production Guidance | 2028 Target Production Guidance | 2029-2033 Average Annual Production Guidance | | :-------------------- | :--------------------- | :----------------------- | :------------------------------ | :------------------------------------------- | | Gold Ounces | 374,585 | 325,000 to 370,000 | - | - | | Silver Ounces ('000s) | 17,176 | 18,500 to 20,500 | - | - | | Other Metals (GEOs) | 12,275 | 12,000 to 15,000 | - | - | | Gold Equivalent Ounces | 584,389 | 550,000 to 620,000 | Over 800,000 | Over 850,000 | - 2024 GEO production is forecast to be consistent with 2023, with stronger production from Peñasquito and Voisey's Bay offsetting lower production from Salobo, Minto (suspension), and Aljustrel (temporary halt)[20](index=20&type=chunk)[21](index=21&type=chunk) - Long-term production is forecast to increase by approximately **40% over the next five years to over 800,000 GEOs by 2028**, driven by growth from operating assets and development projects[22](index=22&type=chunk) - From 2029 to 2033, attributable production is forecast to average over **850,000 GEOs**, incorporating additional incremental production from pre-development assets and royalties[23](index=23&type=chunk) - The company's liquidity, with **$547 million cash** and a **$2 billion revolving term loan**, positions it well to fund commitments and acquire additional mineral stream interests[25](index=25&type=chunk) [Mineral Stream Interests](index=8&type=section&id=Mineral%20Stream%20Interests) Wheaton Precious Metals holds a diverse portfolio of mineral stream interests across various precious metals and cobalt, with significant upfront consideration paid to date and substantial cash flow generated, actively managing its portfolio with updates on operating mines and progressing development-stage projects, and acquiring several new PMPAs and royalties in late 2023 and early 2024 Total Upfront Consideration and Cash Flow Generated from PMPAs (as of Dec 31, 2023) | Category | Total Upfront Consideration Paid to Dec 31, 2023 ($ thousands) | Total Upfront Consideration to be Paid ($ thousands) | Total Upfront Consideration ($ thousands) | Cash Flow Generated to Date ($ thousands) | | :------- | :------------------------------------------------- | :--------------------------------------- | :---------------------------------------- | :--------------------------------------- | | Gold | $5,297,919 | $1,281,799 | $6,579,718 | $3,254,989 | | Silver | $2,802,888 | $410,288 | $3,213,176 | $3,646,656 | | Palladium | $262,120 | $78,700 | $340,820 | $148,840 | | Platinum | $9,367 | $102,865 | $112,232 | - | | Cobalt | $390,000 | - | $390,000 | $46,936 | | **Total PMPAs Currently Owned** | **$8,762,294** | **$1,737,452** | **$10,499,746** | **$7,097,421** | [Updates on the Operating Mineral Stream Interests](index=9&type=section&id=Updates%20on%20the%20Operating%20Mineral%20Stream%20Interests) Operating mineral stream interests saw key developments: Salobo III expansion's first phase throughput test was successfully completed, triggering a $370 million payment; Voisey's Bay underground mine extension reached 92% physical completion; Peñasquito operations restarted in October 2023 after a labor dispute; and Antamina received approval to extend its mine life from 2028 to 2036 - Salobo III expansion project's first phase throughput test successfully completed on November 21, 2023, exceeding **32 Mtpa**, with Wheaton paying Vale **$370 million** for this milestone[29](index=29&type=chunk) - Voisey's Bay underground mine extension reached **92% physical completion** by Q4 2023, with main surface assets operating[30](index=30&type=chunk) - Peñasquito mine operations restarted on October 13, 2023, following the resolution of a labor dispute that began on June 7, 2023[31](index=31&type=chunk) - Antamina mine life extended from 2028 to 2036 with the approval of the Modification of the Environmental Impact Study on February 15, 2024[32](index=32&type=chunk) [Updates on the Development Stage Mineral Stream Interests](index=10&type=section&id=Updates%20on%20the%20Development%20Stage%20Mineral%20Stream%20Interests) Development-stage projects are advancing: Copper World's pre-feasibility study is complete, with a definitive feasibility study expected after permits and a joint venture partner; Marmato Lower Mine construction commenced in September 2023, targeting first gold pour in late 2025; Fenix received EIA approval, allowing construction to recommence in 2024; Blackwater construction is 59% complete, on track for Q4 2024 production; Curipamba secured its environmental license and TSF permit; Goose project is ahead of schedule for initial gold pour in Q1 2025; new PMPAs were acquired for Mineral Park, Platreef, Kudz Ze Kayah, and Curraghinalt, with significant upfront payments made or committed; and a royalty interest was also purchased for the Mt Todd gold project - Copper World project's Phase I pre-feasibility study is complete; definitive feasibility study expected after permits (mid-2024) and joint venture partner selection, with sanctioning anticipated in 2025[33](index=33&type=chunk) - Marmato Lower Mine construction began in September 2023, with first gold pour expected in late 2025[34](index=34&type=chunk) - Fenix project received Environmental Impact Assessment (EIA) approval on December 20, 2023, enabling recommencement of construction activities in 2024[36](index=36&type=chunk) - Blackwater project construction is **59% complete** as of January 30, 2024, remaining on track for production commencement in Q4 2024[37](index=37&type=chunk) - Curipamba project received its environmental license and tailings storage facility (TSF) permit in January 2024, a key condition for additional upfront cash payments[39](index=39&type=chunk)[40](index=40&type=chunk) - Goose project construction is ahead of schedule, with initial gold pour anticipated in Q1 2025[42](index=42&type=chunk) - Acquired new PMPAs for Mineral Park (silver), Platreef (gold, palladium, platinum), Kudz Ze Kayah (gold, silver), and Curraghinalt (gold), involving significant upfront cash payments totaling **$450 million for Orion assets** and **$75 million for Curraghinalt**[44](index=44&type=chunk)[46](index=46&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk) - Purchased a **1.0% gross revenue royalty interest** in the Mt Todd gold project for **$20 million**, with **$3 million paid in December 2023**[54](index=54&type=chunk) [Mineral Royalty Interests](index=13&type=section&id=Mineral%20Royalty%20Interests) Wheaton Precious Metals holds several early deposit mineral stream interests and mineral royalty interests, representing future growth opportunities, including projects like Toroparu, Cotabambas, and Kutcho under early deposit agreements, and royalties on Metates, Brewery Creek, Black Pine, and Mt Todd, with no revenue recognized from these royalty agreements to date Early Deposit Mineral Stream Interests (as of Dec 31, 2023) | Project | Location | Upfront Consideration Paid to Date ($ thousands) | Upfront Consideration to be Paid ($ thousands) | Total Upfront Consideration ($ thousands) | Attributable Production to be Purchased (Gold) | Attributable Production to be Purchased (Silver) | | :-------- | :------- | :--------------------------------------------- | :------------------------------------------- | :---------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Toroparu | Guyana | $15,500 | $138,000 | $153,500 | 10% | 50% | | Cotabambas | Peru | $14,000 | $126,000 | $140,000 | 25% | 100% | | Kutcho | Canada | $16,852 | $58,000 | $74,852 | 100% | 100% | | **Total** | | **$46,352** | **$322,000** | **$368,352** | | | Mineral Royalty Interests (as of Dec 31, 2023) | Project | Location | Royalty | Upfront Consideration Paid to Date ($ thousands) | Upfront Consideration to be Paid ($ thousands) | Total Upfront Consideration ($ thousands) | | :-------- | :------- | :------ | :--------------------------------------------- | :------------------------------------------- | :---------------------------------------- | | Metates | Mexico | 0.5% NSR | $3,000 | - | $3,000 | | Brewery Creek | Canada | 2.0% NSR | $3,529 | - | $3,529 | | Black Pine | USA | 0.5% NSR | $3,600 | - | $3,600 | | Mt Todd | Australia | 1.0% GR | $3,000 | $17,000 | $20,000 | | **Total** | | | **$13,129** | **$17,000** | **$30,129** | - No revenue has been recognized and no depletion has been taken with respect to these royalty agreements to date[62](index=62&type=chunk) [Long-Term Equity Investments](index=13&type=section&id=Long-Term%20Equity%20Investments) Wheaton Precious Metals strategically invests in exploration and mining companies, holding common shares and warrants, with total long-term equity investments at $246.7 million as of December 31, 2023, a slight decrease from $256.1 million in 2022, and is exposed to currency, market price, and liquidity risks through these investments Total Long-Term Equity Investments (in thousands) | (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :------------- | :----------- | :----------- | | Common shares held | $246,026 | $255,535 | | Warrants held | $652 | $560 | | **Total long-term equity investments** | **$246,678** | **$256,095** | - Long-term investments in common shares are held for strategic purposes, with fair value adjustments reflected in Other Comprehensive Income (OCI)[63](index=63&type=chunk) - Long-term investments in warrants are classified as derivatives, with fair value adjustments recorded in net earnings under Other Income (Expense)[65](index=65&type=chunk) Fair Value Adjustments of Common Shares Held (Year Ended Dec 31, 2023) | (in thousands) | Fair Value at Dec 31, 2022 | Cost of Additions | Proceeds of Disposition | Fair Value Adjustment Gains (Losses) | Fair Value at Dec 31, 2023 | Realized Gain (Loss) on Disposal | | :------------- | :------------------------- | :---------------- | :---------------------- | :----------------------------------- | :------------------------- | :------------------------------- | | Bear Creek | $7,443 | $526 | - | $(5,831) | $2,138 | - | | Sabina | $30,535 | - | $(48,832) | $18,297 | - | $872 | | Kutcho | $3,097 | - | - | $(1,546) | $1,551 | - | | Hecla | $194,668 | - | $(202) | $(26,211) | $168,255 | $73 | | B2Gold | - | $48,832 | - | $(10,738) | $38,094 | - | | Other | $19,792 | $16,826 | $(27) | $(603) | $35,988 | $(990) | | **Total** | **$255,535** | **$66,184** | **$(49,061)** | **$(26,632)** | **$246,026** | **$(45)** | [Summarized Financial Results](index=16&type=section&id=Summarized%20Financial%20Results) Wheaton Precious Metals reported a slight increase in Gold Equivalent Ounces (GEOs) produced in 2023, but a decrease in GEOs sold, leading to a 4.6% decline in total revenue, with net earnings and basic EPS decreasing by approximately 19-20% primarily due to significant prior-year gains on disposal, while adjusted net earnings and adjusted EPS showed a modest increase, and operating cash flows remained stable Summarized Financial Results (Years Ended Dec 31, 2023, 2022, 2021) | Metric | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | | :-------------------------------- | :----------- | :----------- | :----------- | | Attributable precious metal production (GEOs) | 619,608 | 616,755 | 718,824 | | Precious metal sales (GEOs) | 537,608 | 598,244 | 636,824 | | Average realized price per GEO | $1,890 | $1,780 | $1,887 | | Average cash cost per GEO | $424 | $447 | $452 | | Total revenue ($000's) | $1,016,045 | $1,065,053 | $1,201,665 | | Net earnings ($000's) | $537,644 | $669,126 | $754,885 | | Basic earnings per share | $1.187 | $1.482 | $1.677 | | Adjusted net earnings ($000's) | $533,051 | $504,912 | $592,079 | | Adjusted basic earnings per share | $1.177 | $1.118 | $1.315 | | Cash flow from operations ($000's) | $750,809 | $743,424 | $845,145 | | Dividends paid per share | $0.60 | $0.60 | $0.57 | | Total assets ($000's) | $7,031,185 | $6,759,906 | $6,296,151 | | Shareholders' equity ($000's) | $6,985,516 | $6,717,675 | $6,250,117 | - Total revenue decreased by **4.6% in 2023**, primarily due to a **10.1% decrease in Gold Equivalent Ounces (GEOs) sold**, partially offset by a **6.2% increase in average realized price per GEO**[73](index=73&type=chunk) - Net earnings decreased by **19.6% in 2023**, largely due to the prior year reflecting **$156 million of income from the disposal of Yauliyacu and Keno Hill PMPAs**[15](index=15&type=chunk)[73](index=73&type=chunk) - Adjusted net earnings increased by **5.6% in 2023**, driven by higher gross margin and interest income[15](index=15&type=chunk)[73](index=73&type=chunk) [Summary of Units Produced](index=17&type=section&id=Summary%20of%20Units%20Produced) In Q4 2023, total gold equivalent ounces (GEOs) produced increased by 21.9% year-over-year, primarily due to a significant 64.2% rise in gold production mainly from Salobo, while silver production decreased by 20.6% due to the Peñasquito strike, mine closures, and divestments; for the full year 2023, GEO production was comparable to 2022, with increased gold production from Salobo and Constancia offset by declines from Peñasquito and other mines Units Produced (Q4 2023 vs. Q4 2022) | Metal | Q4 2023 | Q4 2022 | Change (%) | | :------ | :------ | :------ | :--------- | | Gold ounces | 113,359 | 69,027 | 64.2% | | Silver ounces | 4,208 | 5,303 | (20.6)% | | Palladium ounces | 4,209 | 3,869 | 8.8% | | Cobalt pounds | 215 | 128 | 67.5% | | GEOs | 174,222 | 142,887 | 21.9% | Units Produced (Year Ended Dec 31, 2023 vs. 2022) | Metal | 2023 | 2022 | Change (%) | | :------ | :-------- | :-------- | :--------- | | Gold ounces | 374,585 | 285,601 | 31.2% | | Silver ounces | 17,176 | 23,800 | (27.8)% | | Palladium ounces | 15,800 | 15,485 | 2.0% | | Cobalt pounds | 673 | 724 | (7.1)% | | GEOs | 619,608 | 616,755 | 0.5% | - Gold production increase in Q4 2023 was primarily driven by Salobo due to higher throughput from the mill expansion, while silver production decreased due to the labor strike at Peñasquito, divestment of Yauliyacu, and closure of Minto mine[15](index=15&type=chunk)[107](index=107&type=chunk) - Full year 2023 GEO production was comparable to 2022, with increased production from Salobo and Constancia offset by cessation of production from Yauliyacu, 777, Keno Hill, Minto, lower grades at Antamina, and the Peñasquito strike[15](index=15&type=chunk)[126](index=126&type=chunk) [Summary of Units Sold](index=18&type=section&id=Summary%20of%20Units%20Sold) In Q4 2023, total gold equivalent ounces (GEOs) sold increased by 17.5% year-over-year, driven by higher gold sales, particularly from Salobo, while silver ounces sold decreased significantly; for the full year 2023, GEOs sold decreased by 10.1% compared to 2022, primarily due to relative changes in payable ounces produced but not delivered (PBND) and inventory Units Sold (Q4 2023 vs. Q4 2022) | Metal | Q4 2023 | Q4 2022 | Change (%) | | :------ | :------ | :------ | :--------- | | Gold ounces | 115,011 | 68,996 | 66.7% | | Silver ounces | 3,175 | 4,935 | (35.7)% | | Palladium ounces | 3,339 | 3,396 | (1.7)% | | Cobalt pounds | 288 | 187 | 54.0% | | GEOs | 162,360 | 138,218 | 17.5% | Units Sold (Year Ended Dec 31, 2023 vs. 2022) | Metal | 2023 | 2022 | Change (%) | | :------ | :-------- | :-------- | :--------- | | Gold ounces | 327,336 | 293,234 | 11.6% | | Silver ounces | 14,326 | 21,570 | (33.6)% | | Palladium ounces | 13,919 | 15,076 | (7.7)% | | Cobalt pounds | 1,074 | 1,038 | 3.5% | | GEOs | 537,608 | 598,244 | (10.1)% | - The increase in Q4 2023 sales volumes was partially offset by relative changes in payable ounces produced but not delivered (PBND)[15](index=15&type=chunk) - For the full year 2023, the decrease in sales volumes was primarily due to relative changes in PBND[15](index=15&type=chunk) [Quarterly Financial Review](index=19&type=section&id=Quarterly%20Financial%20Review) Wheaton Precious Metals experienced a strong Q4 2023, with total sales increasing by 32.8% to $313.5 million, driven by higher gold sales and increased realized prices across all metals, while cash costs for gold, palladium, and cobalt decreased, and net earnings, adjusted net earnings, and operating cash flows also saw significant increases Quarterly Financial Review (Q4 2023 vs. Q4 2022) | Metric | Q4 2023 ($000's) | Q4 2022 ($000's) | Change (%) | | :-------------------- | :--------------- | :--------------- | :--------- | | Total sales | $313,471 | $236,051 | 32.8% | | Gold sales | $230,716 | $119,051 | 93.8% | | Silver sales | $75,465 | $106,175 | (28.9)% | | Palladium sales | $3,574 | $6,586 | (45.7)% | | Cobalt sales | $3,716 | $4,239 | (12.3)% | | Net earnings | $168,435 | $166,125 | 1.4% | | Adjusted net earnings | $164,569 | $103,744 | 58.6% | | Operating cash flows | $242,226 | $172,028 | 40.8% | Average Realized Prices (Q4 2023 vs. Q4 2022) | Metal | Q4 2023 Price | Q4 2022 Price | Change (%) | | :------ | :------------ | :------------ | :--------- | | Gold | $2,006 | $1,725 | 16.3% | | Silver | $23.77 | $21.52 | 10.5% | | Palladium | $1,070 | $1,939 | (44.8)% | | Cobalt | $12.92 | $22.62 | (42.9)% | Average Cash Costs (Q4 2023 vs. Q4 2022) | Metal | Q4 2023 Cost | Q4 2022 Cost | Change (%) | | :------ | :----------- | :----------- | :--------- | | Gold | $437 | $475 | (8.0)% | | Silver | $5.02 | $5.00 | (0.4)% | | Palladium | $198 | $357 | (44.5)% | | Cobalt | $3.14 | $16.52 | (81.0)% | - Changes in quarterly financial results are primarily influenced by fluctuations in mine production, timing of shipments, commodity price changes, new mine operations, and PMPA acquisitions[89](index=89&type=chunk) [Results of Operations and Operational Review](index=20&type=section&id=Results%20of%20Operations%20and%20Operational%20Review) The operational review details Wheaton's financial performance by metal and segment for Q4 and full-year 2023 compared to 2022, with Q4 2023 seeing a 21.9% increase in GEO production and a 46.2% rise in gross margin, driven by Salobo's expansion and higher commodity prices, despite a prior-year gain on disposal, while for the full year 2023, GEO production was stable, but revenue decreased by 4.6% due to lower sales volumes, and net earnings declined by 19.6% year-over-year primarily due to large disposal gains in 2022, while adjusted net earnings increased by 5.6%, alongside detailed changes in general and administrative expenses, share-based compensation, donations, other income, finance costs, and income tax recovery, including the implications of global minimum tax rules [Results of Operations For The Three Months Ended December 31, 2023 and 2022](index=20&type=section&id=Results%20of%20Operations%20For%20The%20Three%20Months%20Ended%20December%2031,%202023%20and%202022) In Q4 2023, total sales increased to $313.5 million from $236.1 million in Q4 2022, with gold sales significantly increasing to $230.7 million (from $119.1 million) while silver sales decreased to $75.5 million (from $106.2 million), resulting in net earnings of $168.4 million, a slight increase from $166.1 million in Q4 2022, and operating cash flows rising to $242.2 million from $172.0 million Q4 2023 Operating Results by Metal (in thousands) | Metal | Units Produced | Units Sold | Average Realized Price ($/Unit) | Average Cash Cost ($/Unit) | Sales ($) | Net Earnings ($) | Cash Flow From Operations ($) | | :------ | :------------- | :--------- | :------------------------------ | :--------------------------- | :-------- | :--------------- | :---------------------------- | | Gold | 113,359 | 115,011 | $2,006 | $437 | $230,716 | $133,910 | $180,471 | | Silver | 4,208 | 3,175 | $23.77 | $5.02 | $75,465 | $42,723 | $60,140 | | Palladium | 4,209 | 3,339 | $1,070 | $198 | $3,574 | $1,426 | $2,912 | | Cobalt | 215 | 288 | $12.92 | $3.14 | $3,716 | $(871) | $2,016 | | **Total Operating Results** | | | | | **$313,471** | **$177,188** | **$245,539** | Q4 2022 Operating Results by Metal (in thousands) | Metal | Units Produced | Units Sold | Average Realized Price ($/Unit) | Average Cash Cost ($/Unit) | Sales ($) | Net Earnings ($) | Cash Flow From Operations ($) | | :------ | :------------- | :--------- | :------------------------------ | :--------------------------- | :-------- | :--------------- | :---------------------------- | | Gold | 69,027 | 68,996 | $1,725 | $475 | $119,051 | $59,961 | $88,792 | | Silver | 5,303 | 4,935 | $21.52 | $5.00 | $106,175 | $108,352 | $80,196 | | Palladium | 3,869 | 3,396 | $1,939 | $357 | $6,586 | $4,018 | $5,373 | | Cobalt | 128 | 187 | $22.62 | $16.52 | $4,239 | $(1,426) | $3,766 | | **Total Operating Results** | | | | | **$236,051** | **$170,905** | **$178,127** | [Comparative Results of Operations on a GEO Basis (Q4)](index=22&type=section&id=Comparative%20Results%20of%20Operations%20on%20a%20GEO%20Basis) In Q4 2023, Gold Equivalent Ounce (GEO) production increased by 21.9% and sales by 17.5% year-over-year, with revenue growing by 32.8% to $313.5 million, driven by a 13.1% increase in average price per GEO sold, and gross margin significantly improving by 46.2% to $177.2 million, while net earnings saw a modest 1.4% increase to $168.4 million, as higher gross margin was largely offset by the absence of a $51.4 million gain on disposal of mineral stream interests recorded in Q4 2022 Q4 2023 vs. Q4 2022 Comparative Results (GEO Basis) | Metric | Q4 2023 ($000's) | Q4 2022 ($000's) | Change ($000's) | Change (%) | | :-------------------------------- | :--------------- | :--------------- | :-------------- | :--------- | | GEO Production | 174,222 | 142,887 | 31,334 | 21.9% | | GEO Sales | 162,360 | 138,218 | 24,142 | 17.5% | | Average price per GEO sold | $1,931 | $1,708 | $223 | 13.1% | | Revenue | $313,471 | $236,051 | $77,420 | 32.8% | | Cost of Sales | $136,283 | $114,870 | $(21,413) | (18.6)% | | Gross Margin | $177,188 | $121,181 | $56,007 | 46.2% | | Earnings from Operations | $159,209 | $99,689 | $59,520 | 59.7% | | Gain on disposal of mineral stream interests | - | $51,443 | $(51,443) | (100.0)% | | Net earnings | $168,435 | $166,125 | $2,310 | 1.4% | - The increase in GEO production was primarily due to an **89% increase from Salobo** (higher throughput and recoveries) and a **74% increase from Constancia** (higher grades), partially offset by a **41% decrease from Peñasquito** (labor strike) and **34% from other mines** (closures/disposals)[106](index=106&type=chunk)[107](index=107&type=chunk) - Depletion increased due to higher sales volume and higher depletion rates for certain PMPAs, including Salobo after the **$370 million expansion payment**[106](index=106&type=chunk) [Net Earnings (Q4)](index=23&type=section&id=Net%20Earnings) Net earnings for Q4 2023 increased by $2.3 million to $168.4 million compared to Q4 2022, primarily driven by a $56.0 million increase in gross margin, largely offset by the absence of a $51.4 million gain on disposal of mineral stream interests recorded in the prior year, and a $9.1 million decrease in income tax recovery Factors Affecting Net Earnings (Q4 2023 vs. Q4 2022) (in thousands) | Factor | Impact on Net Earnings | | :------------------------------------------ | :--------------------- | | Net earnings for Q4 2022 | $166,125 | | **Total increase to gross margin** | **$56,007** | | Gain on disposal of mineral stream interest | $(51,443) | | Impairment (impairment reversal) | $1,719 | | General and administrative expenses | $(861) | | Share based compensation | $1,947 | | Donations and community investment | $708 | | Other income / expense | $3,311 | | Finance costs | $6 | | Income taxes | $(9,084) | | **Total increase in net earnings** | **$2,310** | | Net earnings for Q4 2023 | $168,435 | [Results of Operations For The Year Ended December 31, 2023 and 2022](index=24&type=section&id=Results%20of%20Operations%20For%20The%20Year%20Ended%20December%2031,%202023%20and%202022) For the full year 2023, total sales decreased to $1,016.0 million from $1,065.1 million in 2022, with gold sales increasing to $644.1 million (from $529.7 million) while silver sales decreased to $338.6 million (from $471.0 million), resulting in net earnings of $537.6 million, a decrease from $669.1 million in 2022, and operating cash flows slightly increasing to $750.8 million from $743.4 million Full Year 2023 Operating Results by Metal (in thousands) | Metal | Units Produced | Units Sold | Average Realized Price ($/Unit) | Average Cash Cost ($/Unit) | Sales ($) | Net Earnings ($) | Cash Flow From Operations ($) | | :------ | :------------- | :--------- | :------------------------------ | :--------------------------- | :-------- | :--------------- | :---------------------------- | | Gold | 374,585 | 327,336 | $1,968 | $455 | $644,131 | $370,256 | $494,613 | | Silver | 17,176 | 14,326 | $23.64 | $5.05 | $338,594 | $202,334 | $264,144 | | Palladium | 15,800 | 13,919 | $1,329 | $241 | $18,496 | $8,991 | $15,135 | | Cobalt | 673 | 1,074 | $13.81 | $3.30 | $14,824 | $(3,114) | $15,071 | | **Total Operating Results** | | | | | **$1,016,045** | **$578,467** | **$788,963** | Full Year 2022 Operating Results by Metal (in thousands) | Metal | Units Produced | Units Sold | Average Realized Price ($/Unit) | Average Cash Cost ($/Unit) | Sales ($) | Net Earnings ($) | Cash Flow From Operations ($) | | :------ | :------------- | :--------- | :------------------------------ | :--------------------------- | :-------- | :--------------- | :---------------------------- | | Gold | 285,601 | 293,234 | $1,806 | $472 | $529,698 | $286,832 | $391,466 | | Silver | 23,800 | 21,570 | $21.84 | $5.33 | $471,003 | $409,538 | $354,411 | | Palladium | 15,485 | 15,076 | $2,133 | $377 | $32,160 | $20,455 | $26,472 | | Cobalt | 724 | 1,038 | $31.00 | $8.10 | $32,192 | $13,134 | $28,178 | | **Total Operating Results** | | | | | **$1,065,053** | **$729,959** | **$800,527** | [Comparative Results of Operations on a GEO Basis (Annual)](index=26&type=section&id=Comparative%20Results%20of%20Operations%20on%20a%20GEO%20Basis) For the full year 2023, Gold Equivalent Ounce (GEO) production remained stable, increasing by 0.5%, while GEO sales decreased by 10.1%, leading to a 4.6% decline in revenue to $1,016.0 million, despite a 6.2% increase in the average price per GEO sold, and gross margin saw a modest 1.4% increase to $573.4 million, while net earnings decreased significantly by 19.6% to $537.6 million, primarily due to a large gain on disposal of mineral stream interests in 2022 that did not recur in 2023 Full Year 2023 vs. 2022 Comparative Results (GEO Basis) | Metric | 2023 ($000's) | 2022 ($000's) | Change ($000's) | Change (%) | | :-------------------------------- | :------------ | :------------ | :-------------- | :--------- | | GEO Production | 619,608 | 616,755 | 2,853 | 0.5% | | GEO Sales | 537,608 | 598,244 | (60,637) | (10.1)% | | Average price per GEO sold | $1,890 | $1,780 | $110 | 6.2% | | Revenue | $1,016,045 | $1,065,053 | $(49,008) | (4.6)% | | Cost of Sales | $442,605 | $499,573 | $56,968 | 11.4% | | Gross Margin | $573,440 | $565,480 | $7,960 | 1.4% | | Earnings from Operations | $505,270 | $511,904 | $(6,634) | (1.3)% | | Gain on disposal of mineral stream interests | $5,027 | $155,868 | $(150,841) | (96.8)% | | Net earnings | $537,644 | $669,126 | $(131,482) | (19.6)% | - The **0.5% increase in GEO production** was primarily due to a **48% increase from Salobo** (mill expansion, higher grades/recoveries) and a **42% increase from Constancia** (higher grades), partially offset by decreases from other mines (closures/disposals), Peñasquito (strike), and Antamina (lower grades)[126](index=126&type=chunk) [Net Earnings (Annual)](index=28&type=section&id=Net%20Earnings) Net earnings for the year ended December 31, 2023, decreased by $131.5 million to $537.6 million compared to $669.1 million in 2022, primarily due to a $150.8 million lower gain on disposal of mineral stream interests in 2023 compared to 2022, partially offset by a $7.9 million increase in gross margin and a $26.8 million increase in other income/expense Factors Affecting Net Earnings (Year Ended Dec 31, 2023 vs. 2022) (in thousands) | Factor | Impact on Net Earnings | | :------------------------------------------ | :--------------------- | | Net earnings for 2022 | $669,126 | | **Total increase to gross margin** | **$7,960** | | Gain on disposal of mineral stream interest | $(150,841) | | Impairment (impairment reversal) | $(8,611) | | General and administrative expenses | $(2,334) | | Donations and community investment | $(965) | | Share based compensation | $(2,684) | | Other income / expense | $26,822 | | Finance costs | $76 | | Income taxes | $(905) | | **Total decrease in net earnings** | **$(131,482)** | | Net earnings for 2023 | $537,644 | [Reversal of Impairment of Mineral Stream Interests](index=29&type=section&id=Reversal%20of%20Impairment%20of%20Mineral%20Stream%20Interests) In 2022, Wheaton recorded an impairment reversal of $10.3 million for the Keno Hill silver interest, which occurred because the value received from terminating the Keno Hill PMPA ($141 million in Hecla common shares) exceeded its carrying amount, fully reversing a $10.5 million impairment charge from 2015 - An impairment reversal of **$10.3 million** was recorded for the Keno Hill PMPA in 2022, fully reversing a **$10.5 million impairment charge from 2015**[129](index=129&type=chunk) - The reversal was due to the termination of the Keno Hill PMPA on September 7, 2022, in exchange for **$141 million in Hecla common shares**, which exceeded the PMPA's carrying value[129](index=129&type=chunk)[131](index=131&type=chunk) [Gain on Disposal of Mineral Stream Interest](index=29&type=section&id=Gain%20on%20Disposal%20of%20Mineral%20Stream%20Interest) In 2023, Wheaton recognized a $5 million gain from the partial disposal of the Goose PMPA, following B2Gold's acquisition of Sabina and subsequent exercise of an option to acquire 33% of the stream, while in 2022, the company recorded significant gains from the disposal of the Keno Hill PMPA ($104.4 million) and the Yauliyacu PMPA ($51.5 million) Gain on Partial Disposal of Goose PMPA (2023) (in thousands) | Metric | Amount | | :-------------------------------- | :----- | | Proceeds received on 33% buyback | $46,400 | | Less: 33% carrying value | $(41,373) | | **Gain on partial disposal** | **$5,027** | Gain on Disposal of Keno Hill PMPA (2022) (in thousands) | Metric | Amount | | :------------------------------------------ | :----- | | Fair value of Hecla Mining Company shares received | $140,596 | | Less: carrying value after impairment reversal, plus closing costs | $(36,201) | | **Gain on disposal** | **$104,395** | Gain on Disposal of Yauliyacu PMPA (2022) (in thousands) | Metric | Amount | | :-------------------------------- | :----- | | Proceeds received on disposal | $131,937 | | Less: carrying value plus closing costs | $(80,464) | | **Gain on disposal** | **$51,473** | [General and Administrative](index=30&type=section&id=General%20and%20Administrative) Consolidated general and administrative (G&A) expenses increased by approximately $2 million to $38.2 million in 2023 compared to $35.8 million in 2022, primarily due to increased professional fees and audit and regulatory costs associated with the renewal of the Company's At the Market Equity (ATM) program Consolidated General and Administrative Expenses (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Corporate G&A | $30,760 | $29,077 | | Subsidiaries G&A | $7,405 | $6,754 | | **Consolidated G&A** | **$38,165** | **$35,831** | - The increase in G&A expenses was primarily driven by higher professional fees and audit and regulatory costs related to the renewal of the ATM program[133](index=133&type=chunk) [Share Based Compensation](index=31&type=section&id=Share%20Based%20Compensation) Total share-based compensation for the year ended December 31, 2023, increased by $2.7 million to $22.7 million compared to $20.1 million in 2022, primarily due to differences in accrued costs associated with the Company's performance share units (PSUs) Total Share Based Compensation (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Stock options | $2,607 | $2,366 | | Restricted share units | $3,831 | $3,480 | | PSUs | $16,306 | $14,214 | | **Total** | **$22,744** | **$20,060** | - The increase in share-based compensation was primarily due to differences in accrued costs associated with Performance Share Units (PSUs)[136](index=136&type=chunk) [Donations and Community Investments](index=31&type=section&id=Donations%20and%20Community%20Investments) Total donations and community investments increased to $7.3 million in 2023 from $6.3 million in 2022, including support for local organizations and communities influenced by mining partners' operations Total Donations and Community Investments (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Local donations and community investments | $2,649 | $2,333 | | Partner donations and community investments | $4,612 | $3,798 | | COVID-19 and community support and response fund | - | $165 | | **Total** | **$7,261** | **$6,296** | [Other Income (Expense)](index=31&type=section&id=Other%20Income%20(Expense)) Total other income increased significantly to $34.3 million in 2023 from $7.4 million in 2022, primarily driven by a substantial increase in interest income, which rose by $29 million due to higher average cash balances and increased market interest rates Total Other Income (Expense) (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Interest income | $34,862 | $6,321 | | Dividend income | $2,316 | $453 | | Foreign exchange gain (loss) | $51 | $890 | | Gain (loss) on fair value adjustment of share purchase warrants held | $(31) | $(1,033) | | Other | $(2,927) | $818 | | **Total** | **$34,271** | **$7,449** | - Interest income increased by **$29 million in 2023**, a result of the average cash balance increasing to approximately **$731 million** and a significant increase in market interest rates[140](index=140&type=chunk) [Finance Costs](index=32&type=section&id=Finance%20Costs) Total finance costs remained stable at $5.5 million in 2023, compared to $5.6 million in 2022, with costs related to undrawn credit facilities being the primary component Total Finance Costs (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Costs related to undrawn credit facilities | $5,162 | $5,262 | | Interest expense - lease liabilities | $207 | $91 | | Letter of guarantee | $141 | $233 | | **Total** | **$5,510** | **$5,586** | [Income Tax Expense (Recovery)](index=32&type=section&id=Income%20Tax%20Expense%20(Recovery)) In 2023, Wheaton recorded a total income tax expense of $1.4 million, a significant change from a $0.5 million expense in 2022, which included a current income tax recovery of $2.4 million reflecting the carryback of a Canadian tax loss to offset 2022 taxable income from the Keno Hill PMPA disposition, and a deferred income tax expense of $3.8 million primarily from the origination and reversal of temporary differences Total Income Tax Expense (Recovery) (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Current income tax expense (recovery) | $(2,372) | $8,746 | | Deferred income tax expense (recovery) | $3,786 | $(8,237) | | **Total** | **$1,414** | **$509** | - The 2023 current income tax recovery of **$2.4 million** reflects the carryback of a Canadian tax loss to the 2022 tax year, offsetting taxable income from the Keno Hill PMPA disposition[144](index=144&type=chunk) Movement in Current Income Taxes (Payable) Recoverable (in thousands) | (in thousands) | Current Taxes (Payable) Recoverable | | :------------- | :---------------------------------- | | Current taxes payable - December 31, 2021 | $(132) | | Current income tax expense - income statement | $(8,746) | | Current income tax recovery - shareholders' equity | $5,932 | | Income taxes paid | $171 | | Foreign exchange adjustments | $12 | | Current taxes payable - December 31, 2022 | $(2,763) | | Current income tax recovery - income statement | $2,372 | | Income taxes paid | $6,192 | | Foreign exchange adjustments | $134 | | **Current taxes recoverable - December 31, 2023** | **$5,935** | [Global Minimum Tax](index=33&type=section&id=Global%20Minimum%20Tax) Wheaton Precious Metals is within the scope of OECD Pillar Two global minimum tax rules, with its Cayman Islands subsidiaries having a 0% effective tax rate and thus subject to potential top-up tax, while Canada and Luxembourg have enacted or released draft Pillar Two legislation effective January 1, 2024, but the Cayman Islands do not intend to enact such legislation, and the company does not expect a material impact from Luxembourg's rules due to Canada's intent to enact its own legislation - Wheaton is within the scope of OECD Pillar Two global minimum tax rules, which impose a **15% minimum tax** on adjusted financial statement income for large multinational companies[147](index=147&type=chunk) - Cayman Islands subsidiaries, with net earnings of **$551 million in 2023**, have a **0% effective tax rate**, making them subject to potential top-up tax[147](index=147&type=chunk) - Canada released draft Pillar Two legislation (GMTA) on August 4, 2023, which, if enacted, would apply to the income of the Company's Cayman Island subsidiaries from January 1, 2024[149](index=149&type=chunk) - Luxembourg enacted Pillar Two legislation effective January 1, 2024, but Wheaton does not expect a material impact due to Canada's stated intent to enact the GMTA[150](index=150&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2023, Wheaton Precious Metals had $547 million in cash and cash equivalents and no outstanding debt on its $2 billion Revolving Facility, providing strong liquidity for commitments and future acquisitions, with operating cash flows increasing by $70 million in Q4 2023 and $7 million for the full year 2023, primarily due to higher gross margins and increased interest income, while investing activities resulted in significant cash outflows due to substantial upfront payments for new PMPAs and royalty agreements, and financing activities were mainly outflows for dividends paid - As of December 31, 2023, the Company had **$547 million in cash and cash equivalents** and no debt outstanding under its **$2 billion Revolving Facility**[152](index=152&type=chunk) - This strong liquidity position enables the Company to fund all outstanding commitments and provides flexibility for additional accretive mineral stream interests[153](index=153&type=chunk) [Cash Flows From Operating Activities (Q4)](index=34&type=section&id=Cash%20Flows%20From%20Operating%20Activities) In Q4 2023, operating cash flows increased by $70 million to $242 million compared to Q4 2022, primarily driven by a $75.6 million increase in cash inflows attributable to sales and a $67.4 million increase in net cash inflows attributable to gross margin, partially offset by changes in working capital and other variances Q4 2023 Cash Flows From Operating Activities (in thousands) | Factor | Impact on Cash Inflow | | :------------------------------------------ | :-------------------- | | Operating cash inflow for Q4 2022 | $172,028 | | Total increase to cash inflows attributable to sales | $75,615 | | Total increase to net cash inflows attributable to gross margin | $67,412 | | Other variances | $3,278 | | **Operating cash inflow for Q4 2023** | **$242,226** | - The increase in cash inflows from 'Other' was due to higher interest earned on the Company's cash balances, invested in short-term, high-credit quality money market instruments[155](index=155&type=chunk) [Cash Flows From Financing Activities (Q4)](index=34&type=section&id=Cash%20Flows%20From%20Financing%20Activities) In Q4 2023, net cash outflows from financing activities increased to $65 million, up from $58 million in Q4 2022, with the primary outflow being $67 million for dividends paid, and minor inflows from share purchase options exercised Q4 2023 Cash Flows From Financing Activities (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :---------- | :---------- | | Share purchase options exercised | $1,812 | $2,819 | | Dividends paid | $(67,025) | $(60,493) | | **Cash used for financing activities** | **$(65,356)** | **$(58,021)** | [Cash Flows From Investing Activities (Q4)](index=35&type=section&id=Cash%20Flows%20From%20Investing%20Activities) In Q4 2023, investing activities resulted in significant net cash outflows of $464 million, a substantial change from net cash inflows of $87 million in Q4 2022, primarily due to large upfront payments for new PMPAs, including $370 million for the Salobo Expansion PMPA and $45 million for Blackwater PMPAs, as well as payments for the Curraghinalt PMPA and Mt Todd Royalty Q4 2023 Cash Flows From Investing Activities (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :------------ | :------------ | | Payments for new PMPAs | $(451,900) | $(44,250) | | Salobo Expansion PMPA | $(370,000) | - | | Blackwater Gold PMPA | $(10,000) | - | | Blackwater Silver PMPA | $(35,200) | - | | Curraghinalt PMPA | $(20,000) | - | | Mt Todd Royalty | $(3,000) | - | | Net proceeds on disposition of PMPA (Yauliyacu) | - | $131,902 | | **Total cash (used for) generated from investing activities** | **$(464,334)** | **$87,458** | [Cash Flows From Operating Activities (Annual)](index=35&type=section&id=Cash%20Flows%20From%20Operating%20Activities) For the full year 2023, operating cash flows increased slightly by $7 million to $751 million compared to $743 million in 2022, primarily driven by a $25.6 million increase in 'Other' cash inflows (mainly interest income) and a $39.0 million decrease in cash outflows attributable to cost of sales, partially offset by a $50.6 million decrease in cash inflows attributable to sales Full Year 2023 Cash Flows From Operating Activities (in thousands) | Factor | Impact on Cash Inflow | | :------------------------------------------ | :-------------------- | | Operating cash inflow for 2022 | $743,424 | | Total decrease to cash inflows attributable to sales | $(50,555) | | Total decrease to cash outflows attributable to cost of sales | $38,991 | | Other variances | $25,614 | | **Operating cash inflow for 2023** | **$750,809** | - The increase in cash inflows from 'Other' was due to higher interest earned on the Company's cash balances, invested in short-term, high-credit quality money market instruments[159](index=159&type=chunk) [Cash Flows From Financing Activities (Annual)](index=36&type=section&id=Cash%20Flows%20From%20Financing%20Activities) For the full year 2023, net cash outflows from financing activities increased to $254 million, up from $229 million in 2022, with the primary outflow being $265 million for dividends paid, partially offset by $12.4 million from share purchase options exercised Full Year 2023 Cash Flows From Financing Activities (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :------------ | :------------ | | Share purchase options exercised | $12,415 | $10,368 | | Dividends paid | $(265,109) | $(237,097) | | **Cash used for financing activities** | **$(254,244)** | **$(228,886)** | [Cash Flows From Investing Activities (Annual)](index=36&type=section&id=Cash%20Flows%20From%20Investing%20Activities) For the full year 2023, investing activities resulted in significant net cash outflows of $647 million, a substantial increase from $44 million in 2022, primarily driven by large upfront payments for new PMPAs, including $370 million for the Salobo Expansion PMPA and $140.8 million for Blackwater Silver PMPA, partially offset by $46.4 million in net proceeds from the partial disposition of the Goose PMPA Full Year 2023 Cash Flows From Investing Activities (in thousands) | (in thousands) | 2023 | 2022 | | :------------- | :------------ | :------------ | | Payments for new PMPAs | $(663,150) | $(152,224) | | Salobo Expansion PMPA | $(370,000) | - | | Blackwater Silver PMPA | $(140,800) | - | | Net proceeds on disposition of PMPA (Goose) | $46,400 | - | | Net proceeds on disposition of PMPA (Yauliyacu) | - | $131,902 | | Acquisition of long-term equity investments | $(17,447) | $(22,768) | | Payments for new Royalty Agreement | $(6,602) | - | | **Total cash used for investing activities** | **$(646,646)** | **$(44,297)** | [Contractual Obligations and Contingencies](index=37&type=section&id=Contractual%20Obligations%20and%20Contingencies) Wheaton Precious Metals has substantial contractual obligations, primarily related to future payments for mineral stream and royalty interests, totaling over $2.47 billion, including significant commitments for various projects, and is also engaged in tax disputes with the Canada Revenue Agency (CRA) regarding the timing of upfront payment deductions for Canadian PMPAs, with management believing its tax position is correct Total Contractual Obligations (in thousands) | (in thousands) | 2024 | 2025 - 2026 | 2027 - 2028 | After 2028 | Total | | :------------- | :---------- | :---------- | :---------- | :---------- | :------------ | | Payments for mineral stream interests & royalty | $890,602 | $1,013,425 | $172,338 | $394,169 | $2,470,534 | [Per Ounce Cash Payment for Gold](index=37&type=section&id=Per%20Ounce%20Cash%20Payment%20for%20Gold) Wheaton's gold stream agreements involve per-ounce cash payments that are either fixed amounts (subject to inflation, except Sudbury) or a percentage of the spot price, with attributable gold percentages potentially reduced once certain production thresholds are met for various projects - Cash payments for gold are either fixed amounts per ounce (e.g., Salobo **$425**, Constancia **$420**, Sudbury **$400**, San Dimas **$631**) or a percentage of the spot price (e.g., Stillwater **18%**, Marathon **18%**)[163](index=163&type=chunk) - Fixed payments are subject to annual inflationary increases, except for Sudbury; if the market price falls below the fixed amount, the payment is reduced to the prevailing market price[163](index=163&type=chunk) - Attributable gold percentages are reduced after specific production thresholds are met for projects such as Marathon (**150k oz**), Marmato (**310k oz**), Santo Domingo (**285k oz**), Blackwater (**464k oz**), Platreef (**218.75k oz, 428.3k oz**), and Curraghinalt (**125k oz**)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk) [Per Ounce Cash Payment for Silver](index=38&type=section&id=Per%20Ounce%20Cash%20Payment%20for%20Silver) Silver stream agreements involve per-ounce cash payments, either fixed amounts (subject to inflation, except Loma de La Plata) or a percentage of the spot price, with attributable silver percentages potentially reduced once certain production thresholds are met for projects like Antamina, Marmato, Cozamin, Blackwater, and Cotabambas - Cash payments for silver are either fixed amounts per ounce (e.g., Peñasquito **$4.50**, Constancia **$6.20**, Los Filos **$4.68**) or a percentage of the spot price (e.g., Antamina **20%**, Marmato **18%**)[175](index=175&type=chunk) - Fixed payments are subject to annual inflationary increases, except for Loma de La Plata; if the market price falls below the fixed amount, the payment is reduced to the prevailing market price[175](index=175&type=chunk) - Attributable silver percentages are reduced after specific production thresholds are met for projects such as Antamina (**140M oz**), Marmato (**2.15M oz**), Cozamin (**10M oz**), Blackwater (**17.8M oz**), and Cotabambas (**90M silver equivalent oz**)[177](index=177&type=chunk)[178](index=178&type=chunk) [Per Ounce Cash Payment for Palladium and Platinum and Per Pound for Cobalt](index=39&type=section&id=Per%20Ounce%20Cash%20Payment%20for%20Palladium%20and%20Platinum%20and%20Per%20Pound%20for%20Cobalt) Palladium, platinum, and cobalt stream agreements involve per-unit cash payments, typically a percentage of the spot price, with attributable percentages for these metals reduced once specific production thresholds are met for projects like Stillwater (palladium), Platreef (palladium and platinum), Marathon (platinum), and Voisey's Bay (cobalt) - Production payments for palladium, platinum, and cobalt are measured as a percentage of the spot price (e.g., Stillwater palladium **18%**, Platreef palladium/platinum **30%**, Marathon platinum **18%**, Voisey's Bay cobalt **18%**)[181](index=181&type=chunk) - Attributable metal percentages are reduced after specific production thresholds are met for Stillwater (palladium: **375k oz, 550k oz**), Platreef (palladium/platinum: **350k oz, 485.115k oz**), Marathon (platinum: **120k oz**), and Voisey's Bay (cobalt: **31M lbs**)[182](index=182&type=chunk) [Other Contractual Obligations and Contingencies](index=39&type=section&id=Other%20Contractual%20Obligations%20and%20Contingencies) Wheaton has significant future payment commitments for mineral stream and royalty interests, totaling $2.47 billion, with the largest portion due in 2024-2026, including key commitments for Salobo expansion payments (up to $163 million), Marathon ($151 million), Cangrejos ($271 million), Marmato ($122 million), Santo Domingo ($260 million), Copper World ($231 million), Curipamba ($162.3 million), Mineral Park ($115 million), Platreef ($411.5 million), Curraghinalt ($55 million), Kudz Ze Kayah ($43.5 million), Fenix ($25 million), Mt Todd Royalty ($17 million), Loma de La Plata ($32 million), Cotabambas ($126 million), Toroparu ($138 million), and Kutcho ($58 million), all contingent on various project milestones and conditions Projected Payments for Mineral Stream Interests & Royalty (in thousands) | Project | 2024 ($) | 2025 - 2026 ($) | 2027 - 2028 ($) | After 2028 ($) | Total ($) | | :-------------------- | :------- | :-------------- | :-------------- | :------------- | :---------- | | Salobo | 163,000 | - | 16,000 | 64,000 | 243,000 | | Marathon | 15,122 | 136,096 | - | - | 151,218 | | Cangrejos | 19,300 | 126,000 | 126,000 | - | 271,300 | | Marmato | 80,032 | 41,968 | - | - | 122,000 | | Santo Domingo | - | 260,000 | - | - | 260,000 | | Copper World | - | 231,150 | - | - | 231,150 | | Curipamba | 250 | 162,000 | - | - | 162,250 | | Mineral Park | 115,000 | - | - | - | 115,000 | | Platreef | 411,500 | - | - | - | 411,500 | | Curraghinalt | - | 55,000 | - | - | 55,000 | | Kudz Ze Kayah | 43,500 | - | - | - | 43,500 | | Fenix Gold | 25,000 | - | - | - | 25,000 | | Mt Todd Royalty | 17,000 | - | - | - | 17,000 | | Loma de La Plata | - | - | - | 32,400 | 32,400 | | Cotabambas | - | - | - | 126,000 | 126,000 | | Toroparu | - | - | - | 138,000 | 138,000 | | Kutcho | - | - | 29,000 | 29,000 | 58,000 | | Leases liabilities | 898 | 1,211 | 1,338 | 4,769 | 8,216 | | **Total contractual obligations** | **890,602** | **1,013,425** | **172,338** | **394,169** | **2,470,534** | - The Salobo expansion payment is dependent on the timing and size of throughput expansion, with potential payments ranging from **$52 million to $163 million** if throughput exceeds **35 Mtpa by January 1, 2031**[188](index=188&type=chunk) - The **$411.5 million upfront cash payment for Platreef PMPA** and **$39 million for Kudz Ze Kayah PMPA** were paid on February 27, 2024, upon closing of the Orion Purchase Agreement[197](index=197&type=chunk)[199](index=199&type=chunk) [Taxes - Canada Revenue Agency – 2013 to 2016 Taxation Years - Domestic Reassessments](index=41&type=section&id=Taxes%20-%20Canada%20Revenue%20Agency%20%E2%80%93%202013%20to%202016%20Taxation%20Years%20-%20Domestic%20Reassessments) Wheaton is disputing Canada Revenue Agency (CRA) reassessments for 2013-2016, which seek to change the timing of upfront payment deductions for Canadian PMPAs, resulting in approximately $2 million in assessed tax, interest, and penalties, though management believes its original tax filing position is correct and has filed objections - CRA issued Domestic Reassessments for 2013-2016, seeking to change the timing of upfront payment deductions for Canadian PMPAs[206](index=206&type=chunk) - The reassessments total approximately **$2 million** in assessed tax, interest, and penalties[207](index=207&type=chunk) - Management believes its tax position is correct and has filed Notices of Objection, paying **50% of the disputed amounts**[208](index=208&type=chunk) [Tax Contingencies](index=42&type=section&id=Tax%20Contingencies) The company faces ongoing tax audits and disputes, with the outcome and financial effect currently indeterminable, as the CRA Settlement for 2005-2010 prevents Canadian tax on foreign subsidiary income under transfer pricing rules, but other reassessments are possible, and future legislative changes could also impact the company's tax position - Ongoing tax audits and disputes make it impracticable to estimate the financial effect of potential reassessments[211](index=211&type=chunk) - The CRA Settlement for 2005-2010 prevents Canadian tax on foreign subsidiary income under transfer pricing rules, but other reassessments are not restricted[210](index=210&type=chunk) - Proposed legislative changes or legal actions could impact current or prior periods, with unknown outcomes[212](index=212&type=chunk) [General](index=42&type=section&id=General) Contingencies involve significant judgment and estimates of future events, and unfavorable resolutions could materially impact financial performance, with the company recognizing changes in estimates in its financial statements as they occur - The assessment of contingencies involves significant judgment and estimates of future events[213](index=213&type=chunk) - Unfavorable resolution of matters could materially adversely impact the Company's financial performance, cash flows, or results of operations[213](index=213&type=chunk) [Share Capital](index=42&type=section&id=Share%20Capital) In 2023, Wheaton Precious Metals received $12 million from the exercise of 488,922 share purchase options and released 119,827 Restricted Share Units (RSUs), also issuing 141,979 common shares under its Dividend Reinvestment Plan (DRIP), with 453,069,254 common shares outstanding as of March 14, 2024, along with 1,270,021 share purchase options and 316,336 RSUs, while 10 million share purchase warrants outstanding in 2022 expired unexercised in February 2023 - In 2023, the Company received **$12 million** from the exercise of **488,922 share purchase options**[214](index=214&type=chunk) - **119,827 Restricted Share Units (RSUs)** were released in 2023[215](index=215&type=chunk) - **141,979 common shares** were issued under the Dividend Reinvestment Plan (DRIP) in 2023[216](index=216&type=chunk) Share Capital as of March 14, 2024 | Instrument | Amount | | :--------- | :----- | | Common shares outstanding | 453,069,254 | | Share purchase options | 1,270,021 | | Restricted share units | 316,336 | [At the Market Equity Program](index=42&type=section&id=At%20the%20Market%20Equity%20Program) Wheaton has an At-the-Market (ATM) Equity Program allowing it to issue up to $300 million in common shares, with net proceeds intended for stream acquisitions and general corporate purposes, including debt repayment, and as of December 31, 2023, no shares have been issued under this program - The Company has an ATM Program to issue up to **$300 million** worth of common shares[218](index=218&type=chunk) - Net proceeds from the ATM Program are intended for stream acquisitions and/or other general corporate purposes, including debt repayment[219](index=219&type=chunk) - As of December 31, 2023, no shares have been issued under the ATM program[219](index=219&type=chunk) [Financial Instruments](index=43&type=section&id=Financial%20Instruments) Wheaton Precious Metals is exposed to currency, market price, and liquidity risks due to its long-term equity investments and unhedged commodity price exposure, and while the company may use forward contracts for short-term commodity deliveries, it does not hedge its long-term exposure to commodity prices or use derivative financial instruments to manage operational risks - The Company is exposed to currency risk, market price risk, and liquidity risk through its long-term equity investments[220](index=220&type=chunk) - The Company may enter into short-term forward contracts for gold, silver, and palladium deliveries to mitigate short-term volatility[221](index=221&type=chunk) - Wheaton does not hedge its long-term exposure to commodity prices and does not use derivative financial instruments to manage operational risks[221](index=221&type=chunk) [Risks and Uncertainties](index=43&type=section&id=Risks%20and%20Uncertainties) Wheaton Precious Metals faces a wide array of risks, including significant exposure to commodity price fluctuations for precious metals and cobalt, reliance on third-party operators with no direct control over mining operations, tax legislation changes, global minimum tax, and ongoing tax disputes, as well as counterparty credit and liquidity, mine operator concentration, indebtedness, hedging effectiveness, competition for PMPAs, enforceability of security interests, acquisition strategy success, future financing, third-party interests, impairment of PMPAs, litigation, market price volatility of common shares, key personnel retention, interest rate fluctuations, dividend policy, confidentiality of mining data, multiple stock exchange listings, ATM program effectiveness, long-term equity investment value, activist shareholders, reputation damage, industry analyst views, climate change (physical and transition risks), information systems/cyber security, generative AI adoption, legal/anti-corruption compliance, evolving regulatory requirements, and the impact of epidemics and pandemics on operations [Commodity Prices and Markets](index=43&type=section&id=Commodity%20Prices%20and%20Markets) Wheaton's profitability is highly sensitive to the volatile market prices of precious metals and cobalt, which are influenced by global economic conditions, central bank activities, and supply/demand dynamics, and a decline in these prices could materially adversely affect the company's revenue and cash flow, especially if prices fall below the contractual purchase price - The Company's business is fully exposed to changes in market prices of precious metals and cobalt, which are highly volatile[223](index=223&type=chunk) - Profitability is directly related to market prices; a decline could significantly decrease revenue and cash flow, especially if prices fall below the contractual purchase price[224](index=224&type=chunk)[225](index=225&type=chunk) - Precious metals and cobalt are often by-products, meaning their economic cut-off is influenced by the prices of other metals at the mines[226](index=226&type=chunk) [Risks Relating to the Mining Operations](index=43&type=section&id=Risks%20Relating%20to%20the%20Mining%20Operations) Wheaton is subject to the risk factors applicable to the operators of the mines from which it derives precious metals and cobalt, as detailed in the company's Annual Information Form - The Company is subject to risk factors applicable to the operators of the Mining Operations, as described in its Annual Information Form[227](index=227&type=chunk) [No Control Over Mining Operations](index=43&type=section&id=No%20Control%20Over%20Mining%20Operations) Wheaton has no direct control over the operation of the mines it streams from, making its cash flows dependent on third-party operators who may have conflicting interests, fail to meet production targets, or experience financial difficulties, which could adversely affect Wheaton, and the company relies on the accuracy of operator-provided data with limited ability to detect payment errors or access non-public in

Wheaton Precious Metals Corp. (NYSE:WPM) Q3 2023 Results Conference Call November 10, 2023 11:00 AM ET Company Participants Emma Murray - VP, IR Randy Smallwood - President and CEO Gary Brown - SVP and CFO Haytham Hodaly - SVP, Corporate Development Wes Carson - VP, Mining Operations Conference Call Participants Richard Hatch - Berenberg Tanya Jakusconek - Scotiabank Cosmos Chiu - CIBC John Tumazos - John Tumazos Very Independent Research Operator Good morning, ladies and gentlemen. Thank you for standing b ...