WHEATON PRECIOUS METALS CORP.
|
||||
November 4, 2021
|
By:
|
/s/ Curt Bernardi
|
||
Name:
|
Curt Bernardi
|
|||
Title:
|
Senior Vice President, Legal
|
|||
and Corporate Secretary
|
99.1 |
99.2 |
99.3 |
99.4 |
• |
Over $200 million in operating cash flow during the third quarter and a record $650 million in the first nine months of 2021.
|
• |
$269 million in revenue during the third quarter and a record $923 million in the first nine months of 2021.
|
• |
$137 million in adjusted net earnings during the third quarter and a record $460 million in the first nine months of 2021.
|
• |
Signed a non-binding term sheet with Rio2 Limited to enter into a precious metals purchase agreement in connection with the Fenix Gold project located in Chile.
|
• |
Strong financial position with approximately $372 million in cash on hand and $2 billion of additional capacity through the revolving credit facility as of September 30, 2021.
|
• |
Declared quarterly dividend1 of $0.15 per common share.
|
(all figures in US dollars unless otherwise noted)
|
|
|
Q3 2021
|
|
|
Q3 2020
|
|
Change
|
Units produced
|
|
|
|
|
||||
Gold ounces
|
|
|
85,941
|
|
90,500
|
(5.0)%
|
||
Silver ounces
|
|
|
6,394
|
|
6,028
|
6.1 %
|
||
Palladium ounces
|
|
|
5,105
|
|
5,444
|
(6.2)%
|
||
Cobalt pounds
|
|
|
370,522
|
|
-
|
n.a.
|
||
Gold equivalent ounces 2
|
|
|
184,918
|
|
181,184
|
2.1 %
|
||
Units sold
|
|
|
|
|
||||
Gold ounces
|
|
|
67,649
|
|
90,101
|
(24.9)%
|
||
Silver ounces
|
|
|
5,487
|
|
4,999
|
9.8 %
|
||
Palladium ounces
|
|
|
5,703
|
|
5,546
|
2.8 %
|
||
Cobalt pounds
|
|
|
131,174
|
|
-
|
n.a.
|
||
Gold equivalent ounces 2
|
|
|
152,432
|
|
|
166,611
|
|
(8.5)%
|
Revenue
|
|
$
|
268,957
|
|
$
|
307,268
|
(12.5)%
|
|
Net earnings
|
|
$
|
134,937
|
|
$
|
149,875
|
(10.0)%
|
|
Per share
|
|
$
|
0.300
|
|
$
|
0.334
|
(10.2)%
|
|
Adjusted net earnings 1
|
|
$
|
137,087
|
|
$
|
152,007
|
(9.8)%
|
|
Per share 1
|
|
$
|
0.304
|
|
$
|
0.338
|
(10.1)%
|
|
Operating cash flows
|
|
$
|
201,287
|
|
$
|
228,099
|
(11.8)%
|
|
Per share 1
|
|
$
|
0.447
|
|
$
|
0.508
|
|
(12.0)%
|
Updated Guidance
|
Original Guidance
|
|
Gold Ounces
|
330,000 to 345,000
|
370,000 to 400,000
|
Silver Ounces (‘000s)
|
25,500 to 26,500
|
22,500 to 24,000
|
Other Metals2 (GEOs)
|
45,000 to 55,000
|
40,000 to 45,000
|
Total GEOs2
|
735,000 to 765,000
|
720,000 to 780,000
|
• |
Approximately $372 million of cash on hand.
|
• |
The Company's $2 billion revolving term loan (the "Revolving Facility") remains fully repaid.
|
• |
81,200 payable gold ounces, an increase of 15,000 ounces during Q3 2021, primarily due to an increase during the period at the Salobo mine.
|
• |
4.1 million payable silver ounces, virtually unchanged during Q3 2021, as decreases during the period at the Peñasquito mine were offset by an increase at the Yauliyacu mine.
|
• |
5,600 payable palladium ounces, a decrease of 1,200 ounces during Q3 2021.
|
• |
638,000 payable cobalt pounds, a decrease of 139,300 pounds during Q3 2021.
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(US dollars and shares in thousands, except per share amounts - unaudited)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Sales
|
|
$
|
268,957
|
$
|
307,268
|
$
|
923,468
|
$
|
810,012
|
Cost of sales
|
|
|
|
|
|||||
Cost of sales, excluding depletion
|
$
|
62,529
|
$
|
70,119
|
$
|
219,757
|
$
|
202,238
|
|
Depletion
|
|
|
54,976
|
|
60,601
|
|
195,458
|
|
184,104
|
Total cost of sales
|
|
$
|
117,505
|
$
|
130,720
|
$
|
415,215
|
$
|
386,342
|
Gross margin
|
|
$
|
151,452
|
$
|
176,548
|
$
|
508,253
|
$
|
423,670
|
General and administrative expenses
|
|
|
13,595
|
|
21,326
|
|
44,030
|
|
56,307
|
Earnings from operations
|
$
|
137,857
|
$
|
155,222
|
$
|
464,223
|
$
|
367,363
|
|
Other (income) expense
|
|
|
1,108
|
|
2,624
|
|
(2,194)
|
|
(1,340)
|
Earnings before finance costs and income taxes
|
$
|
136,749
|
$
|
152,598
|
$
|
466,417
|
$
|
368,703
|
|
Finance costs
|
|
|
1,379
|
|
2,766
|
|
4,309
|
|
14,519
|
Earnings before income taxes
|
$
|
135,370
|
$
|
149,832
|
$
|
462,108
|
$
|
354,184
|
|
Income tax (expense) recovery
|
|
|
(433)
|
|
43
|
|
955
|
|
(3,601)
|
Net earnings
|
|
$
|
134,937
|
$
|
149,875
|
$
|
463,063
|
$
|
350,583
|
Basic earnings per share
|
$
|
0.300
|
$
|
0.334
|
$
|
1.029
|
$
|
0.782
|
|
Diluted earnings per share
|
$
|
0.299
|
$
|
0.332
|
$
|
1.026
|
$
|
0.779
|
|
Weighted average number of shares outstanding
|
|
|
|
|
|||||
Basic
|
|
450,326
|
449,125
|
|
449,977
|
448,484
|
|||
Diluted
|
|
|
451,717
|
|
451,999
|
|
451,369
|
|
449,892
|
As at
September 30 |
As at
December 31 |
|||
(US dollars in thousands - unaudited)
|
2021
|
2020
|
||
Assets
|
|
|
||
Current assets
|
|
|
||
Cash and cash equivalents
|
$
|
372,450
|
$
|
192,683
|
Accounts receivable
|
|
10,392
|
5,883
|
|
Other
|
|
9,874
|
|
3,265
|
Total current assets
|
$
|
392,716
|
$
|
201,831
|
Non-current assets
|
|
|
||
Mineral stream interests
|
$
|
5,505,663
|
$
|
5,488,391
|
Early deposit mineral stream interests
|
|
34,741
|
33,241
|
|
Mineral royalty interest
|
|
6,606
|
3,047
|
|
Long-term equity investments
|
|
71,741
|
199,878
|
|
Convertible notes receivable
|
|
15,489
|
11,353
|
|
Property, plant and equipment
|
|
5,790
|
6,289
|
|
Other
|
|
13,994
|
|
13,242
|
Total non-current assets
|
$
|
5,654,024
|
$
|
5,755,441
|
Total assets
|
$
|
6,046,740
|
$
|
5,957,272
|
Liabilities
|
|
|
||
Current liabilities
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
14,514
|
$
|
13,023
|
Current portion of performance share units
|
|
13,348
|
17,297
|
|
Current portion of lease liabilities
|
|
801
|
773
|
|
Other
|
|
154
|
76
|
|
Total current liabilities
|
$
|
28,817
|
$
|
31,169
|
Non-current liabilities
|
|
|
||
Bank debt
|
$
|
-
|
$
|
195,000
|
Lease liabilities
|
|
2,258
|
2,864
|
|
Deferred income taxes
|
|
276
|
214
|
|
Performance share units
|
|
8,667
|
11,784
|
|
Pension liability
|
|
2,369
|
|
1,670
|
Total non-current liabilities
|
$
|
13,570
|
$
|
211,532
|
Total liabilities
|
$
|
42,387
|
$
|
242,701
|
Shareholders' equity
|
|
|
||
Issued capital
|
$
|
3,685,032
|
$
|
3,646,291
|
Reserves
|
|
50,769
|
126,882
|
|
Retained earnings
|
|
2,268,552
|
|
1,941,398
|
Total shareholders' equity
|
$
|
6,004,353
|
$
|
5,714,571
|
Total liabilities and shareholders' equity
|
$
|
6,046,740
|
$
|
5,957,272
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(US dollars in thousands - unaudited)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Operating activities
|
|
|
|
|
|||||
Net earnings
|
$
|
134,937
|
$
|
149,875
|
$
|
463,063
|
$
|
350,583
|
|
Adjustments for
|
|
|
|
|
|||||
Depreciation and depletion
|
|
55,445
|
61,050
|
|
196,869
|
185,542
|
|||
Interest expense
|
|
30
|
1,795
|
|
324
|
11,289
|
|||
Equity settled stock based compensation
|
|
1,315
|
1,319
|
|
3,946
|
4,127
|
|||
Performance share units
|
|
2,824
|
9,325
|
|
(7,128)
|
11,734
|
|||
Pension expense
|
|
294
|
265
|
|
710
|
533
|
|||
Income tax expense (recovery)
|
|
433
|
(43)
|
|
(955)
|
3,601
|
|||
Loss (gain) on fair value adjustment of share purchase warrants held
|
|
1,246
|
1,107
|
|
2,392
|
845
|
|||
Fair value (gain) loss on convertible note receivable
|
|
490
|
1,095
|
|
(4,136)
|
(1,382)
|
|||
Investment income recognized in net earnings
|
|
(178)
|
(23)
|
|
(275)
|
(178)
|
|||
Other
|
|
(9)
|
567
|
|
685
|
513
|
|||
Change in non-cash working capital
|
|
|
4,434
|
|
3,656
|
|
(5,341)
|
|
2,771
|
Cash generated from operations before income taxes and interest
|
$
|
201,261
|
$
|
229,988
|
$
|
650,154
|
$
|
569,978
|
|
Income taxes recovered (paid)
|
|
-
|
-
|
|
(51)
|
70
|
|||
Interest paid
|
|
(31)
|
(1,912)
|
|
(401)
|
(12,745)
|
|||
Interest received
|
|
|
57
|
|
23
|
|
154
|
|
177
|
Cash generated from operating activities
|
|
$
|
201,287
|
$
|
228,099
|
$
|
649,856
|
$
|
557,480
|
Financing activities
|
|
|
|
|
|||||
Bank debt repaid
|
$
|
-
|
$
|
(153,000)
|
$
|
(195,000)
|
$
|
(387,000)
|
|
Credit facility extension fees
|
|
(54)
|
(6)
|
|
(1,727)
|
(1,373)
|
|||
Share purchase options exercised
|
|
183
|
2,763
|
|
5,719
|
20,779
|
|||
Lease payments
|
|
(196)
|
(132)
|
|
(583)
|
(438)
|
|||
Dividends paid
|
|
|
(57,235)
|
|
(37,309)
|
|
(160,784)
|
|
(120,312)
|
Cash (used for) generated from financing activities
|
|
$
|
(57,302)
|
$
|
(187,684)
|
$
|
(352,375)
|
$
|
(488,344)
|
Investing activities
|
|
|
|
|
|||||
Mineral stream interests
|
$
|
(1,055)
|
$
|
(40)
|
$
|
(216,845)
|
$
|
(40)
|
|
Early deposit mineral stream interests
|
|
(750)
|
(750)
|
|
(1,500)
|
(1,500)
|
|||
Mineral royalty interest
|
|
-
|
-
|
|
(3,571)
|
-
|
|||
Acquisition of long-term investments
|
|
(5,076)
|
(10,671)
|
|
(7,453)
|
(10,671)
|
|||
Proceeds on disposal of long-term investments
|
|
-
|
49,454
|
|
112,188
|
49,577
|
|||
Dividends received
|
|
110
|
-
|
|
110
|
-
|
|||
Other
|
|
|
(171)
|
|
(363)
|
|
(691)
|
|
(691)
|
Cash generated from (used for) investing activities
|
|
$
|
(6,942)
|
$
|
37,630
|
$
|
(117,762)
|
$
|
36,675
|
Effect of exchange rate changes on cash and cash equivalents
|
|
$
|
(39)
|
$
|
25
|
$
|
48
|
$
|
37
|
Increase in cash and cash equivalents
|
$
|
137,004
|
$
|
78,070
|
$
|
179,767
|
$
|
105,848
|
|
Cash and cash equivalents, beginning of period
|
|
|
235,446
|
|
131,764
|
|
192,683
|
|
103,986
|
Cash and cash equivalents, end of period
|
|
$
|
372,450
|
$
|
209,834
|
$
|
372,450
|
$
|
209,834
|
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
Q4 2019
|
Gold ounces produced ²
|
|
|
|
|||||
Salobo
|
55,205
|
55,590
|
46,622
|
62,854
|
63,408
|
59,104
|
62,575
|
74,716
|
Sudbury 3
|
465
|
4,563
|
7,004
|
6,659
|
3,798
|
9,257
|
7,795
|
6,468
|
Constancia 8
|
8,533
|
5,519
|
2,453
|
3,929
|
3,780
|
3,470
|
3,681
|
4,757
|
San Dimas 4, 8
|
11,936
|
11,478
|
10,491
|
11,652
|
9,228
|
6,074
|
11,318
|
11,352
|
Stillwater 5
|
2,949
|
2,962
|
3,041
|
3,290
|
3,176
|
3,222
|
2,955
|
3,585
|
Other
|
|
|
|
|||||
Minto 6
|
1,703
|
3,206
|
2,638
|
789
|
1,832
|
2,928
|
2,124
|
2,189
|
777 9
|
4,717
|
5,035
|
6,280
|
2,866
|
5,278
|
4,728
|
4,551
|
3,987
|
Marmato
|
433
|
1,713
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Other
|
6,853
|
9,954
|
8,918
|
3,655
|
7,110
|
7,656
|
6,675
|
6,176
|
Total gold ounces produced
|
85,941
|
90,066
|
78,529
|
92,039
|
90,500
|
88,783
|
94,999
|
107,054
|
Silver ounces produced 2
|
|
|
|
|||||
Peñasquito 8
|
2,180
|
2,026
|
2,202
|
2,014
|
1,992
|
967
|
2,658
|
1,895
|
Antamina 8
|
1,548
|
1,558
|
1,577
|
1,930
|
1,516
|
612
|
1,311
|
1,342
|
Constancia 8
|
521
|
468
|
406
|
478
|
430
|
254
|
461
|
632
|
Other
|
|
|
|
|||||
Los Filos 8
|
12
|
26
|
31
|
6
|
17
|
14
|
29
|
55
|
Zinkgruvan
|
658
|
457
|
420
|
515
|
498
|
389
|
662
|
670
|
Yauliyacu 8
|
432
|
821
|
737
|
454
|
679
|
273
|
557
|
358
|
Stratoni
|
8
|
164
|
165
|
185
|
156
|
148
|
183
|
147
|
Minto 6
|
25
|
33
|
21
|
16
|
15
|
19
|
18
|
18
|
Neves-Corvo
|
362
|
408
|
345
|
420
|
281
|
479
|
377
|
385
|
Aljustrel
|
314
|
400
|
474
|
440
|
348
|
388
|
352
|
325
|
Cozamin
|
199
|
183
|
230
|
-
|
-
|
-
|
-
|
-
|
Marmato
|
10
|
39
|
-
|
-
|
-
|
-
|
-
|
-
|
Keno Hill
|
44
|
55
|
27
|
-
|
-
|
-
|
-
|
-
|
777 9
|
81
|
83
|
130
|
51
|
96
|
108
|
96
|
81
|
Total Other
|
2,145
|
2,669
|
2,580
|
2,087
|
2,090
|
1,818
|
2,274
|
2,039
|
Total silver ounces produced
|
6,394
|
6,721
|
6,765
|
6,509
|
6,028
|
3,651
|
6,704
|
5,908
|
Palladium ounces produced ²
|
|
|
|
|||||
Stillwater 5
|
5,105
|
5,301
|
5,769
|
5,672
|
5,444
|
5,759
|
5,312
|
6,057
|
Cobalt pounds produced ²
|
|
|
|
|||||
Voisey's Bay
|
370,522
|
379,757
|
1,162,243 ¹⁰
|
-
|
-
|
-
|
-
|
-
|
GEOs produced 7
|
184,918
|
193,927
|
191,308
|
189,682
|
181,184
|
146,857
|
194,901
|
196,850
|
SEOs produced 7
|
13,314
|
13,963
|
13,774
|
13,657
|
13,045
|
10,574
|
14,033
|
14,173
|
Average payable rate 2
|
|
|
|
|
|
|
|
|
Gold
|
96.2%
|
95.8%
|
95.0%
|
95.2%
|
95.3%
|
94.7%
|
95.1%
|
95.6%
|
Silver
|
86.6%
|
87.0%
|
86.6%
|
86.3%
|
86.1%
|
81.9%
|
85.6%
|
85.3%
|
Palladium
|
94.5%
|
95.0%
|
91.6%
|
93.6%
|
94.0%
|
90.8%
|
91.0%
|
92.2%
|
Cobalt
|
93.3%
|
93.3%
|
93.3%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
GEO 7
|
91.2%
|
91.7%
|
90.4%
|
91.1%
|
91.1%
|
89.8%
|
90.4%
|
91.5%
|
1) |
All figures in thousands except cobalt pounds and 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: 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; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000 ounces; Q4-2019 - 415,000 ounces.
|
5) |
Comprised of the Stillwater and East Boulder gold and palladium interests.
|
6) |
The Minto mine was placed into care and maintenance from October 2018 to October 2019.
|
7) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75
per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
8) |
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.
Additionally, 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.
|
9) |
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.
|
10) |
Effective January 1, 2021, the Company was entitled to cobalt production from the Voisey's Bay mine. As per the Voisey’s Bay 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.
|
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
Q4 2019
|
Gold ounces sold
|
|
|
|
|||||
Salobo
|
35,185
|
57,296
|
51,423
|
53,197
|
59,584
|
68,487
|
74,944
|
58,137
|
Sudbury 2
|
1,915
|
6,945
|
3,691
|
7,620
|
7,858
|
7,414
|
4,822
|
7,394
|
Constancia 7
|
8,159
|
2,321
|
1,676
|
3,853
|
4,112
|
3,024
|
3,331
|
5,108
|
San Dimas 7
|
11,346
|
11,214
|
10,273
|
11,529
|
9,687
|
6,030
|
11,358
|
11,499
|
Stillwater 3
|
2,820
|
2,574
|
3,074
|
3,069
|
3,015
|
3,066
|
3,510
|
2,925
|
Other
|
|
|
|
|||||
Minto 4
|
1,907
|
2,359
|
2,390
|
1,540
|
-
|
-
|
-
|
-
|
777
|
5,879
|
5,694
|
2,577
|
5,435
|
5,845
|
4,783
|
2,440
|
4,160
|
Marmato
|
438
|
1,687
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Other
|
8,224
|
9,740
|
4,967
|
6,975
|
5,845
|
4,783
|
2,440
|
4,160
|
Total gold ounces sold
|
67,649
|
90,090
|
75,104
|
86,243
|
90,101
|
92,804
|
100,405
|
89,223
|
Silver ounces sold
|
|
|
|
|||||
Peñasquito 7
|
2,210
|
1,844
|
2,174
|
1,417
|
1,799
|
1,917
|
2,310
|
1,268
|
Antamina 7
|
1,502
|
1,499
|
1,930
|
1,669
|
1,090
|
788
|
1,244
|
1,227
|
Constancia 7
|
484
|
295
|
346
|
442
|
415
|
254
|
350
|
672
|
Other
|
|
|
|
|||||
Los Filos 7
|
12
|
42
|
27
|
-
|
19
|
25
|
37
|
26
|
Zinkgruvan
|
354
|
355
|
293
|
326
|
492
|
376
|
447
|
473
|
Yauliyacu 7
|
182
|
601
|
1,014
|
15
|
580
|
704
|
9
|
561
|
Stratoni
|
41
|
167
|
117
|
169
|
134
|
77
|
163
|
120
|
Minto 4
|
24
|
29
|
26
|
20
|
-
|
-
|
-
|
-
|
Neves-Corvo
|
193
|
215
|
239
|
145
|
201
|
236
|
204
|
154
|
Aljustrel
|
155
|
208
|
257
|
280
|
148
|
252
|
123
|
121
|
Cozamin
|
170
|
168
|
173
|
-
|
-
|
-
|
-
|
-
|
Marmato
|
10
|
35
|
-
|
-
|
-
|
-
|
-
|
-
|
Keno Hill
|
51
|
33
|
12
|
-
|
-
|
-
|
-
|
-
|
777
|
99
|
109
|
49
|
93
|
121
|
100
|
41
|
62
|
Total Other
|
1,291
|
1,962
|
2,207
|
1,048
|
1,695
|
1,770
|
1,024
|
1,517
|
Total silver ounces sold
|
5,487
|
5,600
|
6,657
|
4,576
|
4,999
|
4,729
|
4,928
|
4,684
|
Palladium ounces sold
|
|
|
|
|||||
Stillwater 3
|
5,703
|
3,869
|
5,131
|
4,591
|
5,546
|
4,976
|
4,938
|
5,312
|
Cobalt pounds sold
|
|
|
|
|||||
Voisey's Bay
|
131,174
|
394,623
|
132,277
|
-
|
-
|
-
|
-
|
-
|
GEOs sold 5
|
152,432
|
176,700
|
175,419
|
155,665
|
166,611
|
164,844
|
175,154
|
161,066
|
SEOs sold 5
|
10,975
|
12,722
|
12,630
|
11,208
|
11,996
|
11,869
|
12,611
|
11,597
|
Cumulative payable units PBND 6
|
|
|
|
|
|
|
|
|
Gold ounces
|
81,246
|
66,250
|
70,072
|
70,555
|
75,750
|
79,632
|
88,383
|
98,475
|
Silver ounces
|
4,056
|
3,975
|
3,738
|
4,486
|
3,437
|
3,222
|
4,961
|
4,142
|
Palladium ounces
|
5,619
|
6,822
|
5,373
|
5,597
|
4,616
|
4,883
|
4,875
|
4,872
|
Cobalt pounds
|
637,986
|
777,304
|
819,819
|
-
|
-
|
-
|
-
|
-
|
GEO 5
|
151,056
|
137,835
|
136,933
|
140,008
|
129,391
|
130,623
|
163,521
|
162,225
|
SEO 5
|
10,423
|
9,372
|
9,277
|
10,081
|
9,316
|
9,405
|
11,774
|
11,680
|
Inventory on hand
|
|
|
|
|
|
|
|
|
Cobalt pounds
|
488,324
|
134,482
|
132,277
|
-
|
-
|
-
|
-
|
-
|
1) |
All figures in thousands except cobalt pounds and 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) |
The Minto mine was placed into care and maintenance from October 2018 to October 2019.
|
5) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75
per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
6) |
Payable gold, silver and palladium ounces as well as cobalt pounds produced but not yet delivered (“PBND”) are based on management estimates. These figures may be updated in future periods as
additional information is received.
|
7) |
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.
|
Three Months Ended September 30, 2021
|
||||||||||||||||
|
Units Produced²
|
Units
Sold |
Average
Realized Price ($'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
|
55,205
|
35,185
|
$
|
1,795
|
$
|
412
|
$
|
374
|
$
|
63,154
|
$
|
35,504
|
$
|
50,404
|
$
|
2,455,567
|
Sudbury 4
|
465
|
1,915
|
1,794
|
400
|
1,024
|
3,436
|
708
|
2,242
|
308,158
|
|||||||
Constancia
|
8,533
|
8,159
|
1,795
|
411
|
315
|
14,645
|
8,723
|
11,487
|
101,741
|
|||||||
San Dimas
|
11,936
|
11,346
|
1,795
|
618
|
322
|
20,365
|
9,693
|
13,351
|
171,617
|
|||||||
Stillwater
|
2,949
|
2,820
|
1,795
|
326
|
397
|
5,061
|
3,024
|
4,144
|
220,949
|
|||||||
Other 5
|
6,853
|
8,224
|
|
1,794
|
|
590
|
|
38
|
|
14,755
|
|
9,586
|
|
9,887
|
|
64,985
|
|
85,941
|
67,649
|
$
|
1,795
|
$
|
464
|
$
|
337
|
$
|
121,416
|
$
|
67,238
|
$
|
91,515
|
$
|
3,323,017
|
Silver
|
||||||||||||||||
Peñasquito
|
2,180
|
2,210
|
$
|
24.09
|
$
|
4.29
|
$
|
3.55
|
$
|
53,259
|
$
|
35,932
|
$
|
43,776
|
$
|
328,470
|
Antamina
|
1,548
|
1,502
|
23.99
|
4.80
|
7.53
|
36,000
|
17,503
|
28,993
|
589,816
|
|||||||
Constancia
|
521
|
484
|
24.09
|
6.05
|
7.56
|
11,668
|
5,076
|
9,033
|
208,537
|
|||||||
Other 6
|
2,145
|
1,291
|
|
22.97
|
|
6.33
|
|
4.49
|
|
29,660
|
|
15,686
|
|
24,011
|
|
602,796
|
|
6,394
|
5,487
|
$
|
23.80
|
$
|
5.06
|
$
|
5.21
|
$
|
130,587
|
$
|
74,197
|
$
|
105,813
|
$
|
1,729,619
|
Palladium
|
||||||||||||||||
Stillwater
|
5,105
|
5,703
|
$
|
2,426
|
$
|
468
|
$
|
442
|
$
|
13,834
|
$
|
8,644
|
$
|
11,168
|
$
|
234,883
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
370,522
|
131,174
|
$
|
23.78
|
$
|
5.15
|
$
|
8.17
|
$
|
3,120
|
$
|
1,373
|
$
|
159
|
$
|
218,144
|
Operating results
|
|
|
|
|
|
|
|
$
|
268,957
|
$
|
151,452
|
$
|
208,655
|
$
|
5,505,663
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(13,595)
|
$
|
(6,432)
|
||||||||||||
Finance costs
|
(1,379)
|
(1,039)
|
||||||||||||||
Other
|
(1,108)
|
103
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(433)
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(16,515)
|
$
|
(7,368)
|
$
|
541,077
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
134,937
|
$
|
201,287
|
$
|
6,046,740
|
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 cobalt pounds produced and sold, 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) at the end of this press release.
|
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 Rosemont and Santo Domingo gold interests.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata,
Pascua-Lama and Rosemont silver interests.
|
Three Months Ended September 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
|
184,918
|
152,432
|
$ 1,764
|
$ 410
|
$ 1,354
|
$ 361
|
$ 993
|
Silver equivalent basis 5
|
13,314
|
10,975
|
$ 24.51
|
$ 5.70
|
$ 18.81
|
$ 5.01
|
$ 13.80
|
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) at the end of this press release.
|
4) |
Refer to discussion on non-IFRS measure (iv) at the end of this press release.
|
5) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75
per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
Three Months Ended September 30, 2020
|
||||||||||||||||
|
Units Produced²
|
Units
Sold |
Average
Realized Price ($'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
|
63,408
|
59,584
|
$
|
1,902
|
$
|
408
|
$
|
374
|
$
|
113,319
|
$
|
66,700
|
$
|
91,917
|
$
|
2,529,258
|
Sudbury 4
|
3,798
|
7,858
|
1,929
|
400
|
831
|
15,161
|
5,485
|
12,018
|
327,352
|
|||||||
Constancia
|
3,780
|
4,112
|
1,902
|
407
|
338
|
7,819
|
4,758
|
6,147
|
106,870
|
|||||||
San Dimas
|
9,228
|
9,687
|
1,902
|
612
|
315
|
18,423
|
9,442
|
14,309
|
185,835
|
|||||||
Stillwater
|
3,176
|
3,015
|
1,902
|
345
|
449
|
5,734
|
3,341
|
4,695
|
225,688
|
|||||||
Other 5
|
7,110
|
5,845
|
|
1,929
|
|
423
|
|
305
|
|
11,278
|
|
7,022
|
|
8,804
|
|
9,184
|
|
90,500
|
90,101
|
$
|
1,906
|
$
|
428
|
$
|
404
|
$
|
171,734
|
$
|
96,748
|
$
|
137,890
|
$
|
3,384,187
|
Silver
|
||||||||||||||||
Peñasquito
|
1,992
|
1,799
|
$
|
24.55
|
$
|
4.26
|
$
|
3.24
|
$
|
44,154
|
$
|
30,660
|
$
|
36,492
|
$
|
355,167
|
Antamina
|
1,516
|
1,090
|
24.55
|
4.67
|
8.74
|
26,758
|
12,139
|
21,666
|
641,521
|
|||||||
Constancia
|
430
|
415
|
24.55
|
5.99
|
7.63
|
10,190
|
4,538
|
7,704
|
220,417
|
|||||||
Other 6
|
2,090
|
1,695
|
|
24.98
|
|
8.37
|
|
1.94
|
|
42,332
|
|
24,859
|
|
24,333
|
|
475,613
|
|
6,028
|
4,999
|
$
|
24.69
|
$
|
5.89
|
$
|
4.36
|
$
|
123,434
|
$
|
72,196
|
$
|
90,195
|
$
|
1,692,718
|
Palladium
|
||||||||||||||||
Stillwater
|
5,444
|
5,546
|
$
|
2,182
|
$
|
383
|
$
|
428
|
$
|
12,100
|
$
|
7,604
|
$
|
9,977
|
$
|
243,354
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Operating results
|
|
|
|
|
|
|
|
$
|
307,268
|
$
|
176,548
|
$
|
238,062
|
$
|
5,547,769
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(21,326)
|
$
|
(7,239)
|
||||||||||||
Finance costs
|
(2,766)
|
(2,820)
|
||||||||||||||
Other
|
(2,624)
|
96
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
43
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(26,673)
|
$
|
(9,963)
|
$
|
543,418
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
149,875
|
$
|
228,099
|
$
|
6,091,187
|
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 cobalt pounds produced and sold, 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) at the end of this press release.
|
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 and 777 gold interests as well as the non-operating Rosemont gold interest.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and
Rosemont silver interests.
|
Three Months Ended September 30, 2020
|
|||||||
|
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
|
181,184
|
166,611
|
$ 1,844
|
$ 421
|
$ 1,423
|
$ 364
|
$ 1,059
|
Silver equivalent basis 5
|
13,045
|
11,996
|
$ 25.61
|
$ 5.85
|
$ 19.76
|
$ 5.05
|
$ 14.71
|
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) at the end of this press release.
|
4) |
Refer to discussion on non-IFRS measure (iv) at the end of this press release.
|
5) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75
per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
i. |
Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-cash impairment charges, 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
September 30 |
||||||
(in thousands, except for per share amounts)
|
|
2021
|
|
2020
|
||
Net earnings
|
|
$
|
134,937
|
$
|
149,875
|
|
Add back (deduct):
|
|
|
|
|||
(Gain) loss on fair value adjustment of share purchase warrants held
|
|
|
1,246
|
1,107
|
||
(Gain) loss on fair value adjustment of convertible notes receivable
|
|
|
490
|
1,095
|
||
Income tax expense (recovery) recognized in the Statement of Shareholders' Equity
|
|
|
(269)
|
(92)
|
||
Income tax expense (recovery) recognized in the Statement of OCI
|
|
|
627
|
(9)
|
||
Other
|
|
|
56
|
|
|
31
|
Adjusted net earnings
|
|
$
|
137,087
|
|
$
|
152,007
|
Divided by:
|
|
|
|
|||
Basic weighted average number of shares outstanding
|
|
|
450,326
|
449,125
|
||
Diluted weighted average number of shares outstanding
|
|
|
451,717
|
|
|
451,999
|
Equals:
|
|
|
|
|||
Adjusted earnings per share - basic
|
|
$
|
0.304
|
$
|
0.338
|
|
Adjusted earnings per share - diluted
|
|
$
|
0.303
|
|
$
|
0.336
|
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
September 30 |
||||||
(in thousands, except for per share amounts)
|
|
2021
|
|
2020
|
||
Cash generated by operating activities
|
|
$
|
201,287
|
|
$
|
228,099
|
Divided by:
|
|
|
|
|||
Basic weighted average number of shares outstanding
|
|
|
450,326
|
449,125
|
||
Diluted weighted average number of shares outstanding
|
|
|
451,717
|
|
|
451,999
|
Equals:
|
|
|
|
|||
Operating cash flow per share - basic
|
|
$
|
0.447
|
$
|
0.508
|
|
Operating cash flow per share - diluted
|
|
$
|
0.446
|
|
$
|
0.505
|
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
September 30 |
||||||
(in thousands, except for gold and palladium ounces sold, cobalt pounds sold and per unit amounts)
|
|
2021
|
|
2020
|
||
Cost of sales
|
|
$
|
117,505
|
$
|
130,720
|
|
Less: depletion
|
|
|
(54,976)
|
|
|
(60,601)
|
Cash cost of sales
|
|
$
|
62,529
|
|
$
|
70,119
|
Cash cost of sales is comprised of:
|
|
|
|
|||
Total cash cost of gold sold
|
|
$
|
31,405
|
$
|
38,570
|
|
Total cash cost of silver sold
|
|
|
27,782
|
29,426
|
||
Total cash cost of palladium sold
|
|
|
2,667
|
2,123
|
||
Total cash cost of cobalt sold
|
|
|
675
|
|
|
-
|
Total cash cost of sales
|
|
$
|
62,529
|
|
$
|
70,119
|
Divided by:
|
|
|
|
|||
Total gold ounces sold
|
|
|
67,649
|
90,101
|
||
Total silver ounces sold
|
|
|
5,487
|
4,999
|
||
Total palladium ounces sold
|
|
|
5,703
|
5,546
|
||
Total cobalt pounds sold
|
|
|
131,174
|
|
|
-
|
Equals:
|
|
|
|
|||
Average cash cost of gold (per ounce)
|
|
$
|
464
|
$
|
428
|
|
Average cash cost of silver (per ounce)
|
|
$
|
5.06
|
$
|
5.89
|
|
Average cash cost of palladium (per ounce)
|
|
$
|
468
|
$
|
383
|
|
Average cash cost of cobalt (per pound)
|
|
$
|
5.15
|
|
$
|
n.a.
|
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
September 30 |
||||||
(in thousands, except for cobalt pounds sold, gold and palladium ounces sold and per unit amounts)
|
|
2021
|
|
2020
|
||
Total sales:
|
|
|
|
|||
Gold
|
|
$
|
121,416
|
$
|
171,734
|
|
Silver
|
|
$
|
130,587
|
$
|
123,434
|
|
Palladium
|
|
$
|
13,834
|
$
|
12,100
|
|
Cobalt
|
|
$
|
3,120
|
$
|
-
|
|
Divided by:
|
|
|
|
|||
Total gold ounces sold
|
|
|
67,649
|
90,101
|
||
Total silver ounces sold
|
|
|
5,487
|
4,999
|
||
Total palladium ounces sold
|
|
|
5,703
|
5,546
|
||
Total cobalt pounds sold
|
|
|
131,174
|
|
|
-
|
Equals:
|
|
|
|
|||
Average realized price of gold (per ounce)
|
|
$
|
1,795
|
$
|
1,906
|
|
Average realized price of silver (per ounce)
|
|
$
|
23.80
|
$
|
24.69
|
|
Average realized price of palladium (per ounce)
|
|
$
|
2,426
|
$
|
2,182
|
|
Average realized price of cobalt (per pound)
|
|
$
|
23.78
|
$
|
n.a.
|
|
Less:
|
|
|
|
|||
Average cash cost of gold 1 (per ounce)
|
|
$
|
(464)
|
$
|
(428)
|
|
Average cash cost of silver 1 (per ounce)
|
|
$
|
(5.06)
|
$
|
(5.89)
|
|
Average cash cost of palladium 1 (per ounce)
|
|
$
|
(468)
|
$
|
(383)
|
|
Average cash cost of cobalt 1 (per pound)
|
|
$
|
(5.15)
|
|
$
|
n.a.
|
Equals:
|
|
|
|
|||
Cash operating margin per gold ounce sold
|
|
$
|
1,331
|
$
|
1,478
|
|
As a percentage of realized price of gold
|
|
|
74%
|
78%
|
||
Cash operating margin per silver ounce sold
|
|
$
|
18.74
|
$
|
18.80
|
|
As a percentage of realized price of silver
|
|
|
79%
|
76%
|
||
Cash operating margin per palladium ounce sold
|
|
$
|
1,958
|
$
|
1,799
|
|
As a percentage of realized price of palladium
|
|
|
81%
|
82%
|
||
Cash operating margin per cobalt pound sold
|
|
$
|
18.63
|
$
|
n.a.
|
|
As a percentage of realized price of cobalt
|
|
|
78%
|
|
|
n.a.
|
Overview
|
3
|
Operational Overview
|
4
|
Highlights
|
5
|
Outlook
|
6
|
Mineral Stream Interests
|
7
|
Mineral Royalty Interest
|
9
|
Long-Term Equity Investments
|
9
|
Convertible Notes Receivable
|
12
|
Summary of Units Produced
|
14
|
Summary of Units Sold
|
15
|
Quarterly Financial Review 1
|
16
|
Results of Operations and Operational Review
|
17
|
Liquidity and Capital Resources
|
26
|
Share Capital
|
33
|
Financial Instruments
|
33
|
Future Changes to Accounting Policies
|
33
|
Non-IFRS Measures
|
35
|
Subsequent Events
|
39
|
Controls and Procedures
|
39
|
Attributable Reserves and Resources
|
40
|
Cautionary Note Regarding Forward-Looking Statements
|
46
|
|
|
|
Q3 2021
|
|
|
Q3 2020
|
|
Change
|
|
|
YTD 2021
|
|
|
YTD 2020
|
|
Change
|
Units produced
|
|
|
|
|
|
|
|
|
||||||||
Gold ounces
|
|
|
85,941
|
|
90,500
|
(5.0)%
|
|
|
254,536
|
|
274,282
|
(7.2)%
|
||||
Silver ounces
|
|
|
6,394
|
|
6,028
|
6.1 %
|
|
|
19,880
|
|
16,383
|
21.3 %
|
||||
Palladium ounces
|
|
|
5,105
|
|
5,444
|
(6.2)%
|
|
|
16,175
|
|
16,515
|
(2.1)%
|
||||
Cobalt pounds
|
|
|
370,522
|
|
-
|
n.a.
|
|
|
1,912,522
|
|
-
|
n.a.
|
||||
Gold equivalent ounces 2
|
|
|
184,918
|
|
181,184
|
2.1 %
|
|
|
570,153
|
|
522,942
|
9.0 %
|
||||
Silver equivalent ounces 2
|
|
|
13,314
|
|
13,045
|
2.1 %
|
|
|
41,051
|
|
37,652
|
9.0 %
|
||||
Units sold
|
|
|
|
|
|
|
|
|
||||||||
Gold ounces
|
|
|
67,649
|
|
90,101
|
(24.9)%
|
|
|
232,843
|
|
283,310
|
(17.8)%
|
||||
Silver ounces
|
|
|
5,487
|
|
4,999
|
9.8 %
|
|
|
17,744
|
|
14,656
|
21.1 %
|
||||
Palladium ounces
|
|
|
5,703
|
|
5,546
|
2.8 %
|
|
|
14,703
|
|
15,460
|
(4.9)%
|
||||
Cobalt pounds
|
|
|
131,174
|
|
-
|
n.a.
|
|
|
658,074
|
|
-
|
n.a.
|
||||
Gold equivalent ounces 2
|
|
|
152,432
|
|
166,611
|
(8.5)%
|
|
|
504,550
|
|
506,610
|
(0.4)%
|
||||
Silver equivalent ounces 2
|
|
|
10,975
|
|
11,996
|
(8.5)%
|
|
|
36,328
|
|
36,476
|
(0.4)%
|
||||
Change in PBND and Inventory 3
|
|
|
|
|
|
|
|
|
||||||||
Gold ounces
|
|
|
14,996
|
|
(3,883)
|
(18,879)
|
|
|
10,692
|
|
(22,725)
|
(33,417)
|
||||
Silver ounces
|
|
|
82
|
|
215
|
133
|
|
|
(429)
|
|
(704)
|
(275)
|
||||
Palladium ounces
|
|
|
(1,203)
|
|
(268)
|
935
|
|
|
23
|
|
(256)
|
(279)
|
||||
Cobalt pounds
|
|
|
214,524
|
|
-
|
(214,524)
|
|
|
1,126,310
|
|
-
|
(1,126,310)
|
||||
Gold equivalent ounces 2
|
|
|
16,711
|
|
(1,233)
|
(17,944)
|
|
|
15,864
|
|
(32,835)
|
(48,699)
|
||||
Silver equivalent ounces 2
|
|
|
1,203
|
|
|
(89)
|
|
(1,292)
|
|
|
1,142
|
|
|
(2,364)
|
|
(3,506)
|
Per unit metrics
|
|
|
|
|
|
|
|
|
||||||||
Sales price
|
|
|
|
|
|
|
|
|
||||||||
Gold per ounce
|
|
$
|
1,795
|
|
$
|
1,906
|
(5.8)%
|
|
$
|
1,798
|
|
$
|
1,731
|
3.9 %
|
||
Silver per ounce
|
|
$
|
23.80
|
|
$
|
24.69
|
(3.6)%
|
|
$
|
25.58
|
|
$
|
19.55
|
30.8 %
|
||
Palladium per ounce
|
|
$
|
2,426
|
|
$
|
2,182
|
11.2 %
|
|
$
|
2,512
|
|
$
|
2,134
|
17.7 %
|
||
Cobalt per pound
|
|
$
|
23.78
|
|
$
|
n.a.
|
n.a.
|
|
$
|
21.09
|
|
$
|
n.a.
|
n.a.
|
||
Gold equivalent per ounce 2
|
|
$
|
1,764
|
|
$
|
1,844
|
(4.3)%
|
|
$
|
1,830
|
|
$
|
1,599
|
14.4 %
|
||
Silver equivalent per ounce 2
|
|
$
|
24.51
|
|
$
|
25.61
|
(4.3)%
|
|
$
|
25.42
|
|
$
|
22.21
|
14.5 %
|
||
Cash costs 4
|
|
|
|
|
|
|
|
|
||||||||
Gold per ounce 4
|
|
$
|
464
|
|
$
|
428
|
(8.4)%
|
|
$
|
454
|
|
$
|
424
|
(7.1)%
|
||
Silver per ounce 4
|
|
$
|
5.06
|
|
$
|
5.89
|
14.1 %
|
|
$
|
5.87
|
|
$
|
5.21
|
(12.7)%
|
||
Palladium per ounce 4
|
|
$
|
468
|
|
$
|
383
|
(22.2)%
|
|
$
|
463
|
|
$
|
379
|
(22.2)%
|
||
Cobalt per pound 4
|
|
$
|
5.15
|
|
$
|
n.a.
|
n.a.
|
|
$
|
4.67
|
|
$
|
n.a.
|
n.a.
|
||
Gold equivalent per ounce 2
|
|
$
|
410
|
|
$
|
421
|
2.6 %
|
|
$
|
436
|
|
$
|
399
|
(9.3)%
|
||
Silver equivalent per ounce 2
|
|
$
|
5.70
|
|
$
|
5.85
|
2.6 %
|
|
$
|
6.05
|
|
$
|
5.54
|
(9.2)%
|
||
Cash operating margin 4
|
|
|
|
|
|
|
|
|
||||||||
Gold per ounce 4
|
|
$
|
1,331
|
|
$
|
1,478
|
(9.9)%
|
|
$
|
1,344
|
|
$
|
1,307
|
2.8 %
|
||
Silver per ounce 4
|
|
$
|
18.74
|
|
$
|
18.80
|
(0.3)%
|
|
$
|
19.71
|
|
$
|
14.34
|
37.4 %
|
||
Palladium per ounce 4
|
|
$
|
1,958
|
|
$
|
1,799
|
8.8 %
|
|
$
|
2,049
|
|
$
|
1,755
|
16.7 %
|
||
Cobalt per pound 4
|
|
$
|
18.63
|
|
$
|
n.a.
|
n.a.
|
|
$
|
16.42
|
|
$
|
n.a.
|
n.a.
|
||
Gold equivalent per ounce 2
|
|
$
|
1,354
|
|
$
|
1,423
|
(4.8)%
|
|
$
|
1,394
|
|
$
|
1,200
|
16.2 %
|
||
Silver equivalent per ounce 2
|
|
$
|
18.81
|
|
$
|
19.76
|
|
(4.8)%
|
|
$
|
19.37
|
|
$
|
16.67
|
|
16.2 %
|
Total revenue
|
|
$
|
268,957
|
|
$
|
307,268
|
(12.5)%
|
|
$
|
923,468
|
|
$
|
810,012
|
14.0 %
|
||
Gold revenue
|
|
$
|
121,416
|
|
$
|
171,734
|
(29.3)%
|
|
$
|
418,734
|
|
$
|
490,528
|
(14.6)%
|
||
Silver revenue
|
|
$
|
130,587
|
|
$
|
123,434
|
5.8 %
|
|
$
|
453,924
|
|
$
|
286,494
|
58.4 %
|
||
Palladium revenue
|
|
$
|
13,834
|
|
$
|
12,100
|
14.3 %
|
|
$
|
36,932
|
|
$
|
32,990
|
11.9 %
|
||
Cobalt revenue
|
|
$
|
3,120
|
|
$
|
-
|
n.a.
|
|
$
|
13,878
|
|
$
|
-
|
n.a.
|
||
Net earnings
|
|
$
|
134,937
|
|
$
|
149,875
|
(10.0)%
|
|
$
|
463,063
|
|
$
|
350,583
|
32.1 %
|
||
Per share
|
|
$
|
0.300
|
|
$
|
0.334
|
(10.2)%
|
|
$
|
1.029
|
|
$
|
0.782
|
31.6 %
|
||
Adjusted net earnings 4
|
|
$
|
137,087
|
|
$
|
152,007
|
(9.8)%
|
|
$
|
459,848
|
|
$
|
353,895
|
29.9 %
|
||
Per share 4
|
|
$
|
0.304
|
|
$
|
0.338
|
(10.1)%
|
|
$
|
1.022
|
|
$
|
0.789
|
29.5 %
|
||
Operating cash flows
|
|
$
|
201,287
|
|
$
|
228,099
|
(11.8)%
|
|
$
|
649,856
|
|
$
|
557,480
|
16.6 %
|
||
Per share 4
|
|
$
|
0.447
|
|
$
|
0.508
|
(12.0)%
|
|
$
|
1.444
|
|
$
|
1.243
|
16.2 %
|
||
Dividends paid ⁵
|
|
$
|
67,541
|
|
$
|
44,896
|
50.4 %
|
|
$
|
189,027
|
|
$
|
134,572
|
40.5 %
|
||
Per share
|
|
$
|
0.15
|
|
$
|
0.10
|
|
50.0 %
|
|
$
|
0.42
|
|
$
|
0.30
|
|
40.0 %
|
1) |
All amounts in thousands except cobalt pounds, 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 17, 18, 21 and 22 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 35 of this MD&A.
|
5) |
Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter.
|
• |
During the three and nine months ended September 30, 2021, Wheaton generated revenue of $269 million (45% gold, 49% silver, 5% palladium and 1% cobalt) and $923 million (45% gold, 49% silver, 4% palladium and 2%
cobalt), with the nine month period representing a record for the Company.
|
• |
During the three and nine months ended September 30, 2021, Wheaton's gold equivalent ounces produced amounted to 184,900 ounces and 570,200 ounces, respectively, an increase of 2.1% and 9.0% as compared to the
comparable periods of the prior year, with production for the nine month period representing a record for the Company.
|
• |
During the three and nine months ended September 30, 2021, Wheaton's gold equivalent ounces sold amounted to 152,400 ounces and 504,600 ounces, respectively, a decrease of 8.5% and 0.4% as compared to the
comparable periods of the prior year.
|
• |
During the three and nine months ended September 30, 2021, gold equivalent payable ounces produced but not delivered (“PBND”) increased by 16,700 and 15,900 ounces, respectively, primarily due to increases at
Salobo, as compared to decreases of 1,200 and 32,800 ounces in the comparable periods of the prior year.
|
• |
During the three and nine months ended September 30, 2021, Wheaton generated operating cash flow of $201 million and $650 million, respectively, with the figure for the nine month period representing a record for
the Company. This represented a decrease of 12% and an increase of 17% relative to the comparable periods of the prior year.
|
• |
Relative to the comparable three-month period of the prior year:
|
o |
The decrease in attributable gold production was primarily due to lower throughput at Salobo coupled with lower production at Sudbury due to a labour disruption that lasted from June 1 to August 9.
|
o |
The increase in attributable silver production was primarily due to Peñasquito resulting from operational improvements, coupled with the acquisition of the Cozamin and Marmato PMPAs and the resumption of mining at
Keno Hill.
|
o |
The decrease in adjusted net earnings was primarily due to lower sales volumes, due primarily to the increase in gold equivalent payable ounces in PBND.
|
• |
Relative to the comparable nine-month period of the prior year:
|
o |
The decrease in attributable gold production was primarily due to the mining of lower grade material at Salobo coupled with the impact of the labour disruption at Sudbury during the second and third quarter of
2021.
|
o |
The increase in attributable silver production was primarily due to Antamina, Peñasquito and Constancia, reflecting the temporary suspension of operations in the prior year due to the COVID-19 pandemic, coupled
with the acquisition of the Cozamin and Marmato PMPAs and the resumption of mining at Keno Hill.
|
o |
The increase in adjusted net earnings was primarily due to higher margins resulting from a 14% increase in the realized gold equivalent price.
|
• |
On November 4, 2021, the Board of Directors declared a dividend in the amount of $0.15 per common share.
|
|
Updated Guidance
|
Original Guidance
|
Gold ounces
|
330,000 – 345,000
|
370,000 – 400,000
|
Silver ounces (000’s)
|
25,500 – 26,500
|
22,500 – 24,000
|
Other Metals2 (GEOs)
|
45,000 – 55,000
|
40,000 – 45,000
|
Total GEOs2
|
735,000 – 765,000
|
720,000 – 780,000
|
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
|
Q3-2021
Inventory & PBND 3, 4 |
Term ¹
|
Date of
Original Contract |
Gold
|
||||||||||
Salobo
|
Vale
|
BRA
|
75%
|
$412
|
$ 3,059,360
|
$ 1,558,219
|
1,555,134
|
50,925
|
LOM
|
28-Feb-13
|
Sudbury ⁵
|
Vale
|
CAN
|
70%
|
$400
|
623,572
|
227,410
|
236,752
|
12,062
|
20 years
|
28-Feb-13
|
Constancia
|
Hudbay
|
PER
|
50% ⁶
|
$412
|
135,000
|
94,861
|
92,810
|
3,541
|
LOM
|
8-Aug-12
|
San Dimas
|
FM
|
MEX
|
variable ⁷
|
$618
|
220,000
|
133,033
|
138,066
|
3,998
|
LOM
|
10-May-18
|
Stillwater ⁸
|
Sibanye
|
USA
|
100%
|
18% of spot
|
237,880
|
50,565
|
39,072
|
5,256
|
LOM
|
16-Jul-18
|
Other
|
454,342
|
509,070
|
512,579
|
5,464
|
||||||
Minto
|
PERE
|
CAN
|
100% ⁹
|
65%² of spot
|
LOM
|
20-Nov-08
|
||||
Rosemont
|
Hudbay
|
USA
|
100%
|
$450
|
LOM
|
10-Feb-10
|
||||
777 ¹⁰
|
Hudbay
|
CAN
|
50%
|
$429
|
LOM
|
8-Aug-12
|
||||
Marmato ¹¹
|
Aris
|
CO
|
6.5% ¹¹
|
18% of spot
|
LOM
|
5-Nov-20
|
||||
Santo Domingo
|
Capstone
|
CHL
|
100% ¹²
|
18% of spot
|
|
|
|
|
LOM
|
24-Mar-21
|
|
|
|
|
|
$ 4,730,154
|
$ 2,573,158
|
2,574,413
|
81,246
|
|
|
Silver
|
||||||||||
Peñasquito
|
Newmont
|
MEX
|
25%
|
$4.29
|
$ 485,000
|
$ 1,131,947
|
66,029
|
812
|
LOM
|
24-Jul-07
|
Antamina
|
Glencore
|
PER
|
33.75% ¹³
|
20% of spot
|
900,000
|
505,217
|
34,351
|
1,527
|
LOM
|
3-Nov-15
|
Constancia
|
Hudbay
|
PER
|
100%
|
$6.08
|
294,900
|
150,110
|
12,679
|
159
|
LOM
|
8-Aug-12
|
Other
|
1,034,135
|
1,387,771
|
96,969
|
1,558
|
||||||
Los Filos
|
Equinox
|
MEX
|
100%
|
$4.53
|
25 years
|
15-Oct-04
|
||||
Zinkgruvan
|
Lundin
|
SWE
|
100%
|
$4.46
|
LOM
|
8-Dec-04
|
||||
Yauliyacu
|
Glencore
|
PER
|
100% ¹⁴
|
$8.98
|
LOM
|
23-Mar-06
|
||||
Stratoni
|
Eldorado
|
GRC
|
100%
|
$11.54
|
LOM
|
23-Apr-07
|
||||
Neves-Corvo
|
Lundin
|
PRT
|
100%
|
$4.38
|
50 years
|
5-Jun-07
|
||||
Aljustrel
|
Almina
|
PRT
|
100% ¹⁵
|
50% of spot
|
50 years
|
5-Jun-07
|
||||
Keno Hill
|
Alexco
|
CAN
|
25%
|
variable ²
|
LOM
|
2-Oct-08
|
||||
Minto
|
PERE
|
CAN
|
100%
|
$4.31
|
LOM
|
20-Nov-08
|
||||
Pascua-Lama
|
Barrick
|
CHL/ARG
|
25%
|
$3.90
|
LOM
|
8-Sep-09
|
||||
Rosemont
|
Hudbay
|
USA
|
100%
|
$3.90
|
LOM
|
10-Feb-10
|
||||
777 ¹⁰
|
Hudbay
|
CAN
|
100%
|
$6.32
|
LOM
|
8-Aug-12
|
||||
Navidad
|
PAAS
|
ARG
|
12.5%
|
$4.00
|
LOM
|
n/a ¹⁶
|
||||
Marmato ¹¹
|
Aris
|
CO
|
100% ¹¹
|
18% of spot
|
LOM
|
5-Nov-20
|
||||
Cozamin
|
Capstone
|
MEX
|
50% ¹⁷
|
10% of spot
|
|
|
|
|
LOM
|
10-Dec-20
|
|
|
|
|
|
$ 2,714,035
|
$ 3,175,045
|
210,028
|
4,056
|
|
|
Palladium
|
||||||||||
Stillwater ⁸
|
Sibanye
|
USA
|
4.5% ¹⁸
|
18% of spot
|
$ 262,120
|
$ 99,909
|
64,152
|
5,619
|
LOM
|
16-Jul-18
|
Cobalt
|
||||||||||
Voisey's Bay
|
Vale
|
CAN
|
42.4% ¹⁹
|
18% of spot
|
$ 390,000
|
$ 1,244
|
658,074
|
1,126,310
|
LOM
|
11-Jun-18
|
Total
|
|
|
|
|
$ 8,096,309
|
$ 5,849,356
|
|
|
|
|
1) |
Abbreviations as follows: FM = First Majestic Silver Corp; PERE = Pembridge Resources plc; PAAS = Pan American Silver Corp; BRA = Brazil; CAN = Canada; CHL = Chile, PER = Peru; MEX = Mexico; USA = United States; SWE
= Sweden; GRC = Greece; PRT = Portugal; ARG = Argentina; CO = Colombia; 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 as well as cobalt pounds 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 30 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.
|
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 September 30, 2021, the Company has received
approximately $227 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 and if Hudbay
mines and processes four million tonnes of ore from Pampacancha by December 31, 2021, the Company will make an additional deposit payment of $4 million to Hudbay.
|
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) |
As of September 30, 2021, the Company has received approximately $347 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.
|
11) |
Once Wheaton has received 190,000 ounces of gold and 2.15 million ounces of silver, the attributable gold and silver production will be reduced to 3.25% and 50%.
|
12) |
Once the Company has received 285,000 ounces of gold the Company’s attributable gold production will be reduced to 67%.
|
13) |
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%.
|
14) |
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.
|
15) |
Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
16) |
Wheaton and PAAS have not yet finalized the definitive terms of the agreement.
|
17) |
Once Wheaton has received 10 million ounces of silver under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33%.
|
18) |
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%.
|
19) |
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%.
|
|
Mine
Owner |
|
|
|
|
|
|
|
|
|
|
Attributable
Production to be Purchased |
|
|
|
Early Deposit Mineral Stream Interests
|
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
|
Gran Colombia
|
Guyana
|
|
$
|
15,500
|
|
$
|
138,000
|
|
$
|
153,500
|
10%
|
50%
|
Life of Mine
|
11-Nov-13
|
Cotabambas
|
Panoro
|
Peru
|
11,500
|
128,500
|
140,000
|
25% ³
|
100% ³
|
Life of Mine
|
21-Mar-16
|
||||||
Kutcho
|
Kutcho
|
Canada
|
|
|
7,000
|
|
|
58,000
|
|
|
65,000
|
100% ⁴
|
100% ⁴
|
Life of Mine
|
14-Dec-17
|
|
|
|
|
$
|
34,000
|
|
$
|
324,500
|
|
$
|
358,500
|
|
|
|
|
1) |
Expressed in thousands of United States dollars; excludes closing costs and capitalized interest, where applicable.
|
2) |
Please refer to the section entitled “Other Contractual Obligations and Contingencies” on page 30 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.
|
4) |
Once 51,000 ounces of gold and 5.6 million ounces of silver have been delivered to Wheaton, the stream will decrease to 66.67% of gold and silver production for the life of mine.
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
||
Common shares held
|
$
|
70,495
|
$
|
196,241
|
Warrants held
|
|
1,246
|
|
3,637
|
Total long-term equity investments
|
$
|
71,741
|
$
|
199,878
|
Three Months Ended September 30, 2021
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Jun 30, 2021 |
Cost of Additions
|
Proceeds of Disposition
|
Fair Value Adjustment Gains (Losses) 1
|
Fair Value at
Sep 30, 2021 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
10.67%
|
$ 17,338
|
$ -
|
$ -
|
$ (6,407)
|
$ 10,931
|
$ -
|
Sabina
|
11,700
|
3.29%
|
16,520
|
-
|
-
|
(3,113)
|
13,407
|
-
|
Other
|
|
|
50,029
|
5,076
|
-
|
(8,948)
|
46,157
|
-
|
Total
|
|
|
$ 83,887
|
$ 5,076
|
$ -
|
$ (18,468)
|
$ 70,495
|
$ -
|
1) |
Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”).
|
Three Months Ended September 30, 2020
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Jun 30, 2020 |
Cost of Additions 1
|
Proceeds of Disposition 2
|
Fair Value Adjustment Gains (Losses) 3
|
Fair Value at
Sep 30, 2020 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
11.80%
|
$ 23,555
|
$ -
|
$ -
|
$ 7,769
|
$ 31,324
|
$ -
|
Sabina
|
11,700
|
3.59%
|
16,741
|
-
|
-
|
5,889
|
22,630
|
-
|
First Majestic
|
17,240
|
8.00%
|
201,384
|
-
|
(37,748)
|
(16)
|
163,620
|
16,089
|
Other
|
|
|
20,691
|
22,211
|
(11,706)
|
3,237
|
34,433
|
4,140
|
Total
|
|
|
$ 262,371
|
$ 22,211
|
$ (49,454)
|
$ 16,879
|
$ 252,007
|
$ 20,229
|
1) |
Includes 4,467,317 common shares of Gold X received upon the conversion of the Gold X Convertible Note see page 13 of this MD&A for more information
|
2) |
Disposals of shares classified as Other were initiated as the holdings were no longer considered to have strategic value.
|
3) |
Fair Value Gains (Losses) are reflected as a component of OCI.
|
Nine Months Ended September 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
Sep 30, 2021 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
10.67%
|
$ 32,609
|
$ -
|
$ -
|
$ (21,678)
|
$ 10,931
|
$ -
|
Sabina
|
11,700
|
3.29%
|
30,233
|
-
|
-
|
(16,826)
|
13,407
|
-
|
First Majestic
|
-
|
0.00%
|
95,984
|
-
|
(112,188)
|
16,204
|
-
|
60,530
|
Other
|
|
|
37,415
|
7,453
|
-
|
1,289
|
46,157
|
-
|
Total
|
|
|
$ 196,241
|
$ 7,453
|
$ (112,188)
|
$ (21,011)
|
$ 70,495
|
$ 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.
|
Nine Months Ended September 30, 2020
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Dec 31, 2019 |
Cost of Additions 1
|
Proceeds of Disposition 2
|
Fair Value Adjustment Gains (Losses) 3
|
Fair Value at
Sep 30, 2020 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
11.80%
|
$ 27,983
|
$ -
|
$ -
|
$ 3,341
|
$ 31,324
|
$ -
|
Sabina
|
11,700
|
3.59%
|
17,296
|
-
|
-
|
5,334
|
22,630
|
-
|
First Majestic
|
17,240
|
8.00%
|
248,137
|
-
|
(37,748)
|
(46,769)
|
163,620
|
16,089
|
Other
|
|
|
16,341
|
23,571
|
(11,829)
|
6,350
|
34,433
|
4,170
|
Total
|
|
|
$ 309,757
|
$ 23,571
|
$ (49,577)
|
$ (31,744)
|
$ 252,007
|
$ 20,259
|
1) |
Includes 4,467,317 common shares of Gold X received upon the conversion of the Gold X Convertible Note see page 13 of this MD&A for more information.
|
2) |
Disposals of shares classified as Other were initiated as the holdings were no longer considered to have strategic value.
|
3) |
Fair Value Gains (Losses) are reflected as a component of OCI.
|
• |
20% of the outstanding amount if pre-paid on or after 36 months until 60 months; and
|
• |
15% of the outstanding amount if pre-paid on or after 60 months until maturity.
|
Three Months Ended September 30, 2021
|
|||||
(in thousands)
|
Fair Value at
Jun 30, 2021 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2021 |
Kutcho
|
$ 15,979
|
$ -
|
$ -
|
$ (490)
|
$ 15,489
|
Three Months Ended September 30, 2020
|
|||||
(in thousands)
|
Fair Value at
Jun 30, 2020 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2020 |
Kutcho
|
$ 10,836
|
$ -
|
$ -
|
$ -
|
$ 10,836
|
Gold X
|
13,497
|
-
|
(12,402)
|
(1,095)
|
-
|
Total
|
$ 24,333
|
$ -
|
$ (12,402)
|
$ (1,095)
|
$ 10,836
|
Nine Months Ended September 30, 2021
|
|||||
(in thousands)
|
Fair Value at
Dec 31, 2020 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2021 |
Kutcho
|
$ 11,353
|
$ -
|
$ -
|
$ 4,136
|
$ 15,489
|
Nine Months Ended September 30, 2020
|
|||||
(in thousands)
|
Fair Value at
Dec 31, 2019 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2020 |
Kutcho
|
$ 11,837
|
$ -
|
$ -
|
$ (1,001)
|
$ 10,836
|
Gold X
|
10,019
|
-
|
(12,402)
|
2,383
|
-
|
Total
|
$ 21,856
|
$ -
|
$ (12,402)
|
$ 1,382
|
$ 10,836
|
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
Q4 2019
|
Gold ounces produced ²
|
|
|
|
|||||
Salobo
|
55,205
|
55,590
|
46,622
|
62,854
|
63,408
|
59,104
|
62,575
|
74,716
|
Sudbury 3
|
465
|
4,563
|
7,004
|
6,659
|
3,798
|
9,257
|
7,795
|
6,468
|
Constancia 8
|
8,533
|
5,519
|
2,453
|
3,929
|
3,780
|
3,470
|
3,681
|
4,757
|
San Dimas 4, 8
|
11,936
|
11,478
|
10,491
|
11,652
|
9,228
|
6,074
|
11,318
|
11,352
|
Stillwater 5
|
2,949
|
2,962
|
3,041
|
3,290
|
3,176
|
3,222
|
2,955
|
3,585
|
Other
|
|
|
|
|||||
Minto 6
|
1,703
|
3,206
|
2,638
|
789
|
1,832
|
2,928
|
2,124
|
2,189
|
777 9
|
4,717
|
5,035
|
6,280
|
2,866
|
5,278
|
4,728
|
4,551
|
3,987
|
Marmato
|
433
|
1,713
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Other
|
6,853
|
9,954
|
8,918
|
3,655
|
7,110
|
7,656
|
6,675
|
6,176
|
Total gold ounces produced
|
85,941
|
90,066
|
78,529
|
92,039
|
90,500
|
88,783
|
94,999
|
107,054
|
Silver ounces produced 2
|
|
|
|
|||||
Peñasquito 8
|
2,180
|
2,026
|
2,202
|
2,014
|
1,992
|
967
|
2,658
|
1,895
|
Antamina 8
|
1,548
|
1,558
|
1,577
|
1,930
|
1,516
|
612
|
1,311
|
1,342
|
Constancia 8
|
521
|
468
|
406
|
478
|
430
|
254
|
461
|
632
|
Other
|
|
|
|
|||||
Los Filos 8
|
12
|
26
|
31
|
6
|
17
|
14
|
29
|
55
|
Zinkgruvan
|
658
|
457
|
420
|
515
|
498
|
389
|
662
|
670
|
Yauliyacu 8
|
432
|
821
|
737
|
454
|
679
|
273
|
557
|
358
|
Stratoni
|
8
|
164
|
165
|
185
|
156
|
148
|
183
|
147
|
Minto 6
|
25
|
33
|
21
|
16
|
15
|
19
|
18
|
18
|
Neves-Corvo
|
362
|
408
|
345
|
420
|
281
|
479
|
377
|
385
|
Aljustrel
|
314
|
400
|
474
|
440
|
348
|
388
|
352
|
325
|
Cozamin
|
199
|
183
|
230
|
-
|
-
|
-
|
-
|
-
|
Marmato
|
10
|
39
|
-
|
-
|
-
|
-
|
-
|
-
|
Keno Hill
|
44
|
55
|
27
|
-
|
-
|
-
|
-
|
-
|
777 9
|
81
|
83
|
130
|
51
|
96
|
108
|
96
|
81
|
Total Other
|
2,145
|
2,669
|
2,580
|
2,087
|
2,090
|
1,818
|
2,274
|
2,039
|
Total silver ounces produced
|
6,394
|
6,721
|
6,765
|
6,509
|
6,028
|
3,651
|
6,704
|
5,908
|
Palladium ounces produced ²
|
|
|
|
|||||
Stillwater 5
|
5,105
|
5,301
|
5,769
|
5,672
|
5,444
|
5,759
|
5,312
|
6,057
|
Cobalt pounds produced ²
|
|
|
|
|||||
Voisey's Bay
|
370,522
|
379,757
|
1,162,243 ¹⁰
|
-
|
-
|
-
|
-
|
-
|
GEOs produced 7
|
184,918
|
193,927
|
191,308
|
189,682
|
181,184
|
146,857
|
194,901
|
196,850
|
SEOs produced 7
|
13,314
|
13,963
|
13,774
|
13,657
|
13,045
|
10,574
|
14,033
|
14,173
|
Average payable rate 2
|
|
|
|
|
|
|
|
|
Gold
|
96.2%
|
95.8%
|
95.0%
|
95.2%
|
95.3%
|
94.7%
|
95.1%
|
95.6%
|
Silver
|
86.6%
|
87.0%
|
86.6%
|
86.3%
|
86.1%
|
81.9%
|
85.6%
|
85.3%
|
Palladium
|
94.5%
|
95.0%
|
91.6%
|
93.6%
|
94.0%
|
90.8%
|
91.0%
|
92.2%
|
Cobalt
|
93.3%
|
93.3%
|
93.3%
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
GEO 7
|
91.2%
|
91.7%
|
90.4%
|
91.1%
|
91.1%
|
89.8%
|
90.4%
|
91.5%
|
1) |
All figures in thousands except cobalt pounds and 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: 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; Q2-2020 - 276,000 ounces; Q1-2020 - 419,000 ounces; Q4-2019 - 415,000 ounces.
|
5) |
Comprised of the Stillwater and East Boulder gold and palladium interests.
|
6) |
The Minto mine was placed into care and maintenance from October 2018 to October 2019.
|
7) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
8) |
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted. Additionally,
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.
|
9) |
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.
|
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.
|
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
Q4 2019
|
Gold ounces sold
|
|
|
|
|||||
Salobo
|
35,185
|
57,296
|
51,423
|
53,197
|
59,584
|
68,487
|
74,944
|
58,137
|
Sudbury 2
|
1,915
|
6,945
|
3,691
|
7,620
|
7,858
|
7,414
|
4,822
|
7,394
|
Constancia 7
|
8,159
|
2,321
|
1,676
|
3,853
|
4,112
|
3,024
|
3,331
|
5,108
|
San Dimas 7
|
11,346
|
11,214
|
10,273
|
11,529
|
9,687
|
6,030
|
11,358
|
11,499
|
Stillwater 3
|
2,820
|
2,574
|
3,074
|
3,069
|
3,015
|
3,066
|
3,510
|
2,925
|
Other
|
|
|
|
|||||
Minto 4
|
1,907
|
2,359
|
2,390
|
1,540
|
-
|
-
|
-
|
-
|
777
|
5,879
|
5,694
|
2,577
|
5,435
|
5,845
|
4,783
|
2,440
|
4,160
|
Marmato
|
438
|
1,687
|
-
|
-
|
-
|
-
|
-
|
-
|
Total Other
|
8,224
|
9,740
|
4,967
|
6,975
|
5,845
|
4,783
|
2,440
|
4,160
|
Total gold ounces sold
|
67,649
|
90,090
|
75,104
|
86,243
|
90,101
|
92,804
|
100,405
|
89,223
|
Silver ounces sold
|
|
|
|
|||||
Peñasquito 7
|
2,210
|
1,844
|
2,174
|
1,417
|
1,799
|
1,917
|
2,310
|
1,268
|
Antamina 7
|
1,502
|
1,499
|
1,930
|
1,669
|
1,090
|
788
|
1,244
|
1,227
|
Constancia 7
|
484
|
295
|
346
|
442
|
415
|
254
|
350
|
672
|
Other
|
|
|
|
|||||
Los Filos 7
|
12
|
42
|
27
|
-
|
19
|
25
|
37
|
26
|
Zinkgruvan
|
354
|
355
|
293
|
326
|
492
|
376
|
447
|
473
|
Yauliyacu 7
|
182
|
601
|
1,014
|
15
|
580
|
704
|
9
|
561
|
Stratoni
|
41
|
167
|
117
|
169
|
134
|
77
|
163
|
120
|
Minto 4
|
24
|
29
|
26
|
20
|
-
|
-
|
-
|
-
|
Neves-Corvo
|
193
|
215
|
239
|
145
|
201
|
236
|
204
|
154
|
Aljustrel
|
155
|
208
|
257
|
280
|
148
|
252
|
123
|
121
|
Cozamin
|
170
|
168
|
173
|
-
|
-
|
-
|
-
|
-
|
Marmato
|
10
|
35
|
-
|
-
|
-
|
-
|
-
|
-
|
Keno Hill
|
51
|
33
|
12
|
-
|
-
|
-
|
-
|
-
|
777
|
99
|
109
|
49
|
93
|
121
|
100
|
41
|
62
|
Total Other
|
1,291
|
1,962
|
2,207
|
1,048
|
1,695
|
1,770
|
1,024
|
1,517
|
Total silver ounces sold
|
5,487
|
5,600
|
6,657
|
4,576
|
4,999
|
4,729
|
4,928
|
4,684
|
Palladium ounces sold
|
|
|
|
|||||
Stillwater 3
|
5,703
|
3,869
|
5,131
|
4,591
|
5,546
|
4,976
|
4,938
|
5,312
|
Cobalt pounds sold
|
|
|
|
|||||
Voisey's Bay
|
131,174
|
394,623
|
132,277
|
-
|
-
|
-
|
-
|
-
|
GEOs sold 5
|
152,432
|
176,700
|
175,419
|
155,665
|
166,611
|
164,844
|
175,154
|
161,066
|
SEOs sold 5
|
10,975
|
12,722
|
12,630
|
11,208
|
11,996
|
11,869
|
12,611
|
11,597
|
Cumulative payable units PBND 6
|
|
|
|
|
|
|
|
|
Gold ounces
|
81,246
|
66,250
|
70,072
|
70,555
|
75,750
|
79,632
|
88,383
|
98,475
|
Silver ounces
|
4,056
|
3,975
|
3,738
|
4,486
|
3,437
|
3,222
|
4,961
|
4,142
|
Palladium ounces
|
5,619
|
6,822
|
5,373
|
5,597
|
4,616
|
4,883
|
4,875
|
4,872
|
Cobalt pounds
|
637,986
|
777,304
|
819,819
|
-
|
-
|
-
|
-
|
-
|
GEO 5
|
151,056
|
137,835
|
136,933
|
140,008
|
129,391
|
130,623
|
163,521
|
162,225
|
SEO 5
|
10,423
|
9,372
|
9,277
|
10,081
|
9,316
|
9,405
|
11,774
|
11,680
|
Inventory on hand
|
|
|
|
|
|
|
|
|
Cobalt pounds
|
488,324
|
134,482
|
132,277
|
-
|
-
|
-
|
-
|
-
|
1) |
All figures in thousands except cobalt pounds and 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) |
The Minto mine was placed into care and maintenance from October 2018 to October 2019.
|
5) |
GEOs and SEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,800 per ounce gold; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75
per pound cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
6) |
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.
|
7) |
Operations at these mines had been temporarily suspended during the second quarter of 2020 as a result of the COVID-19 pandemic. During the second half of 2020, all of the operations were restarted.
|
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
|
Q3 2021
|
Q2 2021
|
Q1 2021
|
Q4 2020
|
Q3 2020
|
Q2 2020
|
Q1 2020
|
Q4 2019
|
||||||||
Gold ounces sold
|
|
67,649
|
|
90,090
|
|
75,104
|
86,243
|
90,101
|
92,804
|
100,405
|
89,223
|
|||||
Realized price 2
|
$
|
1,795
|
$
|
1,801
|
$
|
1,798
|
$
|
1,882
|
$
|
1,906
|
$
|
1,716
|
$
|
1,589
|
$
|
1,483
|
Gold sales
|
$
|
121,416
|
$
|
162,293
|
$
|
135,025
|
$
|
162,299
|
$
|
171,734
|
$
|
159,272
|
$
|
159,522
|
$
|
132,342
|
Silver ounces sold
|
|
5,487
|
|
5,600
|
|
6,657
|
4,576
|
4,999
|
4,729
|
4,928
|
4,684
|
|||||
Realized price 2
|
$
|
23.80
|
$
|
26.69
|
$
|
26.12
|
$
|
24.72
|
$
|
24.69
|
$
|
16.73
|
$
|
17.03
|
$
|
17.36
|
Silver sales
|
$
|
130,587
|
$
|
149,455
|
$
|
173,883
|
$
|
113,131
|
$
|
123,434
|
$
|
79,142
|
$
|
83,917
|
$
|
81,296
|
Palladium ounces sold
|
|
5,703
|
|
3,869
|
|
5,131
|
4,591
|
5,546
|
4,976
|
4,938
|
5,312
|
|||||
Realized price 2
|
$
|
2,426
|
$
|
2,797
|
$
|
2,392
|
$
|
2,348
|
$
|
2,182
|
$
|
1,917
|
$
|
2,298
|
$
|
1,804
|
Palladium sales
|
$
|
13,834
|
$
|
10,822
|
$
|
12,275
|
$
|
10,782
|
$
|
12,100
|
$
|
9,540
|
$
|
11,350
|
$
|
9,584
|
Cobalt pounds sold
|
|
131,174
|
|
394,623
|
|
132,277
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
n.a.
|
|||||
Realized price 2
|
$
|
23.78
|
$
|
19.82
|
$
|
22.19
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
Cobalt sales
|
$
|
3,120
|
$
|
7,823
|
$
|
2,936
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
Total sales
|
$
|
268,957
|
$
|
330,393
|
$
|
324,119
|
$
|
286,212
|
$
|
307,268
|
$
|
247,954
|
$
|
254,789
|
$
|
223,222
|
Cash cost 2, 3
|
|
|
|
|
|
|
||||||||||
Gold / oz
|
$
|
464
|
$
|
450
|
$
|
450
|
$
|
433
|
$
|
428
|
$
|
418
|
$
|
426
|
$
|
426
|
Silver / oz
|
$
|
5.06
|
$
|
6.11
|
$
|
6.33
|
$
|
5.51
|
$
|
5.89
|
$
|
5.23
|
$
|
4.50
|
$
|
5.13
|
Palladium / oz
|
$
|
468
|
$
|
503
|
$
|
427
|
$
|
423
|
$
|
383
|
$
|
353
|
$
|
402
|
$
|
321
|
Cobalt / lb
|
$
|
5.15
|
$
|
4.41
|
$
|
4.98
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
Depletion 2
|
|
|
|
|
|
|
||||||||||
Gold / oz
|
$
|
337
|
$
|
390
|
$
|
374
|
$
|
397
|
$
|
404
|
$
|
405
|
$
|
389
|
$
|
417
|
Silver / oz
|
$
|
5.21
|
$
|
5.40
|
$
|
5.82
|
$
|
5.16
|
$
|
4.36
|
$
|
4.01
|
$
|
4.80
|
$
|
5.12
|
Palladium / oz
|
$
|
442
|
$
|
442
|
$
|
442
|
$
|
428
|
$
|
428
|
$
|
428
|
$
|
428
|
$
|
470
|
Cobalt / lb
|
$
|
8.17
|
$
|
8.17
|
$
|
8.17
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
Net earnings
|
$
|
134,937
|
$
|
166,124
|
$
|
162,002
|
$
|
157,221
|
$
|
149,875
|
$
|
105,812
|
$
|
94,896
|
$
|
77,524
|
Per share
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.300
|
$
|
0.369
|
$
|
0.360
|
$
|
0.350
|
$
|
0.334
|
$
|
0.236
|
$
|
0.212
|
$
|
0.173
|
Diluted
|
$
|
0.299
|
$
|
0.368
|
$
|
0.360
|
$
|
0.349
|
$
|
0.332
|
$
|
0.235
|
$
|
0.211
|
$
|
0.173
|
Adjusted net earnings 3
|
$
|
137,087
|
$
|
161,626
|
$
|
161,133
|
$
|
149,441
|
$
|
152,007
|
$
|
97,354
|
$
|
104,534
|
$
|
74,471
|
Per share
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.304
|
$
|
0.359
|
$
|
0.358
|
$
|
0.333
|
$
|
0.338
|
$
|
0.217
|
$
|
0.233
|
$
|
0.166
|
Diluted
|
$
|
0.303
|
$
|
0.358
|
$
|
0.358
|
$
|
0.331
|
$
|
0.336
|
$
|
0.216
|
$
|
0.233
|
$
|
0.166
|
Cash flow from operations
|
$
|
201,287
|
$
|
216,415
|
$
|
232,154
|
$
|
207,962
|
$
|
228,099
|
$
|
151,793
|
$
|
177,588
|
$
|
131,867
|
Per share 3
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
0.447
|
$
|
0.481
|
$
|
0.516
|
$
|
0.463
|
$
|
0.508
|
$
|
0.338
|
$
|
0.397
|
$
|
0.295
|
Diluted
|
$
|
0.446
|
$
|
0.480
|
$
|
0.515
|
$
|
0.461
|
$
|
0.505
|
$
|
0.337
|
$
|
0.396
|
$
|
0.294
|
Dividends declared
|
$
|
67,541
|
$
|
63,009
|
$
|
58,478
|
$
|
53,914
|
$
|
44,896
|
$
|
44,861
|
$
|
44,815
|
$
|
40,252
|
Per share
|
$
|
0.15
|
$
|
0.14
|
$
|
0.13
|
$
|
0.12
|
$
|
0.10
|
$
|
0.10
|
$
|
0.10
|
$
|
0.09
|
Total assets
|
$
|
6,046,740
|
$
|
5,981,466
|
$
|
5,928,412
|
$
|
5,957,272
|
$
|
6,091,187
|
$
|
6,134,044
|
$
|
6,076,941
|
$
|
6,278,007
|
Total liabilities
|
$
|
42,387
|
$
|
38,202
|
$
|
104,985
|
$
|
242,701
|
$
|
539,849
|
$
|
717,101
|
$
|
838,715
|
$
|
952,087
|
Total shareholders' equity
|
$
|
6,004,353
|
$
|
5,943,264
|
$
|
5,823,427
|
$
|
5,714,571
|
$
|
5,551,338
|
$
|
5,416,943
|
$
|
5,238,226
|
$
|
5,325,920
|
1) |
All figures in thousands except cobalt pounds, gold and palladium ounces produced and sold, per unit amounts and per share amounts.
|
2) |
Expressed as US$ per ounce and for cobalt per pound.
|
3) |
Refer to discussion on non-IFRS beginning on page 35 of this MD&A.
|
Three Months Ended September 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
|
55,205
|
35,185
|
$
|
1,795
|
$
|
412
|
$
|
374
|
$
|
63,154
|
$
|
35,504
|
$
|
50,404
|
$
|
2,455,567
|
Sudbury 4
|
465
|
1,915
|
1,794
|
400
|
1,024
|
3,436
|
708
|
2,242
|
308,158
|
|||||||
Constancia
|
8,533
|
8,159
|
1,795
|
411
|
315
|
14,645
|
8,723
|
11,487
|
101,741
|
|||||||
San Dimas
|
11,936
|
11,346
|
1,795
|
618
|
322
|
20,365
|
9,693
|
13,351
|
171,617
|
|||||||
Stillwater
|
2,949
|
2,820
|
1,795
|
326
|
397
|
5,061
|
3,024
|
4,144
|
220,949
|
|||||||
Other 5
|
6,853
|
8,224
|
|
1,794
|
|
590
|
|
38
|
|
14,755
|
|
9,586
|
|
9,887
|
|
64,985
|
|
85,941
|
67,649
|
$
|
1,795
|
$
|
464
|
$
|
337
|
$
|
121,416
|
$
|
67,238
|
$
|
91,515
|
$
|
3,323,017
|
Silver
|
||||||||||||||||
Peñasquito
|
2,180
|
2,210
|
$
|
24.09
|
$
|
4.29
|
$
|
3.55
|
$
|
53,259
|
$
|
35,932
|
$
|
43,776
|
$
|
328,470
|
Antamina
|
1,548
|
1,502
|
23.99
|
4.80
|
7.53
|
36,000
|
17,503
|
28,993
|
589,816
|
|||||||
Constancia
|
521
|
484
|
24.09
|
6.05
|
7.56
|
11,668
|
5,076
|
9,033
|
208,537
|
|||||||
Other 6
|
2,145
|
1,291
|
|
22.97
|
|
6.33
|
|
4.49
|
|
29,660
|
|
15,686
|
|
24,011
|
|
602,796
|
|
6,394
|
5,487
|
$
|
23.80
|
$
|
5.06
|
$
|
5.21
|
$
|
130,587
|
$
|
74,197
|
$
|
105,813
|
$
|
1,729,619
|
Palladium
|
||||||||||||||||
Stillwater
|
5,105
|
5,703
|
$
|
2,426
|
$
|
468
|
$
|
442
|
$
|
13,834
|
$
|
8,644
|
$
|
11,168
|
$
|
234,883
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
370,522
|
131,174
|
$
|
23.78
|
$
|
5.15
|
$
|
8.17
|
$
|
3,120
|
$
|
1,373
|
$
|
159
|
$
|
218,144
|
Operating results
|
|
|
|
|
|
|
|
$
|
268,957
|
$
|
151,452
|
$
|
208,655
|
$
|
5,505,663
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(13,595)
|
$
|
(6,432)
|
||||||||||||
Finance costs
|
(1,379)
|
(1,039)
|
||||||||||||||
Other
|
(1,108)
|
103
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(433)
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(16,515)
|
$
|
(7,368)
|
$
|
541,077
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
134,937
|
$
|
201,287
|
$
|
6,046,740
|
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 cobalt pounds produced and sold, 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 37 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 Rosemont and Santo Domingo gold interests.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama
and Rosemont silver interests.
|
Three Months Ended September 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
|
184,918
|
152,432
|
$ 1,764
|
$ 410
|
$ 1,354
|
$ 361
|
$ 993
|
Silver equivalent basis 5
|
13,314
|
10,975
|
$ 24.51
|
$ 5.70
|
$ 18.81
|
$ 5.01
|
$ 13.80
|
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 37 of this MD&A.
|
4) |
Refer to discussion on non-IFRS measure (iv) on page 38 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; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
Three Months Ended September 30, 2020
|
||||||||||||||||
|
Units Produced²
|
Units
Sold |
Average
Realized Price ($'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
|
63,408
|
59,584
|
$
|
1,902
|
$
|
408
|
$
|
374
|
$
|
113,319
|
$
|
66,700
|
$
|
91,917
|
$
|
2,529,258
|
Sudbury 4
|
3,798
|
7,858
|
1,929
|
400
|
831
|
15,161
|
5,485
|
12,018
|
327,352
|
|||||||
Constancia
|
3,780
|
4,112
|
1,902
|
407
|
338
|
7,819
|
4,758
|
6,147
|
106,870
|
|||||||
San Dimas
|
9,228
|
9,687
|
1,902
|
612
|
315
|
18,423
|
9,442
|
14,309
|
185,835
|
|||||||
Stillwater
|
3,176
|
3,015
|
1,902
|
345
|
449
|
5,734
|
3,341
|
4,695
|
225,688
|
|||||||
Other 5
|
7,110
|
5,845
|
|
1,929
|
|
423
|
|
305
|
|
11,278
|
|
7,022
|
|
8,804
|
|
9,184
|
|
90,500
|
90,101
|
$
|
1,906
|
$
|
428
|
$
|
404
|
$
|
171,734
|
$
|
96,748
|
$
|
137,890
|
$
|
3,384,187
|
Silver
|
||||||||||||||||
Peñasquito
|
1,992
|
1,799
|
$
|
24.55
|
$
|
4.26
|
$
|
3.24
|
$
|
44,154
|
$
|
30,660
|
$
|
36,492
|
$
|
355,167
|
Antamina
|
1,516
|
1,090
|
24.55
|
4.67
|
8.74
|
26,758
|
12,139
|
21,666
|
641,521
|
|||||||
Constancia
|
430
|
415
|
24.55
|
5.99
|
7.63
|
10,190
|
4,538
|
7,704
|
220,417
|
|||||||
Other 6
|
2,090
|
1,695
|
|
24.98
|
|
8.37
|
|
1.94
|
|
42,332
|
|
24,859
|
|
24,333
|
|
475,613
|
|
6,028
|
4,999
|
$
|
24.69
|
$
|
5.89
|
$
|
4.36
|
$
|
123,434
|
$
|
72,196
|
$
|
90,195
|
$
|
1,692,718
|
Palladium
|
||||||||||||||||
Stillwater
|
5,444
|
5,546
|
$
|
2,182
|
$
|
383
|
$
|
428
|
$
|
12,100
|
$
|
7,604
|
$
|
9,977
|
$
|
243,354
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Operating results
|
|
|
|
|
|
|
|
$
|
307,268
|
$
|
176,548
|
$
|
238,062
|
$
|
5,547,769
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(21,326)
|
$
|
(7,239)
|
||||||||||||
Finance costs
|
(2,766)
|
(2,820)
|
||||||||||||||
Other
|
(2,624)
|
96
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
43
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(26,673)
|
$
|
(9,963)
|
$
|
543,418
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
149,875
|
$
|
228,099
|
$
|
6,091,187
|
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 cobalt pounds produced and sold, 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 37 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 and 777 gold interests as well as the non-operating Rosemont gold interest.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont silver
interests.
|
Three Months Ended September 30, 2020
|
|||||||
|
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
|
181,184
|
166,611
|
$ 1,844
|
$ 421
|
$ 1,423
|
$ 364
|
$ 1,059
|
Silver equivalent basis 5
|
13,045
|
11,996
|
$ 25.61
|
$ 5.85
|
$ 19.76
|
$ 5.05
|
$ 14.71
|
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 37 of this MD&A.
|
4) |
Refer to discussion on non-IFRS measure (iv) on page 38 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; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
• |
8,200 ounce (13%) decrease from Salobo, primarily due to lower throughput in the current period. As it relates to throughput, the two 12 mtpa lines operated at an average rate of approximately 81% of capacity
during Q3-2021 as compared to 91% during Q3-2020; and
|
• |
3,300 ounce (88%) decrease from Sudbury, primarily due to the temporary suspension of operations at the mine from June 1, 2021 to August 9, 2021 as a result of a labour dispute (see footnote 5 on page 7 of this
MD&A for more information); with these decreases being partially offset by
|
• |
4,800 ounce (126%) 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%, partially offset by the receipt of 2,005 ounces in the third quarter of 2020 as a delay payment for not meeting a mining threshold at Pampacancha deposit whereas no delay payment was received in 2021 (see
footnote 6 on page 7 of this MD&A for more information); and
|
• |
2,700 ounce (29%) increase from San Dimas, primarily due to the impact of the silver to gold conversion ratio applicable under the PMPA changing from 70:1 to 90:1 from April 1, 2020 to October 15, 2020 at which
time it reverted to 70:1.
|
• |
188,000 ounce (9%) increase from Peñasquito, with throughput, grades and recoveries all being higher;
|
• |
91,000 ounce (21%) increase from Constancia, primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit; and
|
• |
54,000 ounce (3%) increase from Other mines, primarily due to the resumption of mining at Keno Hill and production from the newly acquired Cozamin and Marmato streams, partially offset by lower attributable
production at Yauliyacu after achieving the dropdown threshold of 1.5 million ounces (see footnote 8 on page 29 of this MD&A for more information).
|
Net earnings for the three months ended September 30, 2020
|
$
|
149,875
|
Variance in gross margin
|
||
Variance in revenue due to:
|
||
Payable gold production
|
$
|
(6,820)
|
Payable silver production
|
8,568
|
|
Payable palladium production
|
(1,697)
|
|
Payable cobalt production
|
8,221
|
|
Changes in inventory and PBND
|
(35,552)
|
|
Prices realized per ounce sold
|
|
(11,031)
|
Total decrease to revenue
|
$
|
(38,311)
|
Variance in cost of sales due to:
|
||
Sales volume
|
$
|
11,808
|
Sales mix differences
|
347
|
|
Cash cost per ounce
|
(847)
|
|
Depletion per ounce
|
|
1,907
|
Total decrease to cost of sales
|
$
|
13,215
|
Total decrease to gross margin
|
$
|
(25,096)
|
Other variances
|
||
General and administrative expenses (see page 24)
|
7,731
|
|
Other income / expense (see page 25)
|
1,516
|
|
Finance costs (see page 25)
|
1,387
|
|
Income taxes (see page 25)
|
|
(476)
|
Total decrease in net earnings
|
$
|
(14,938)
|
Net earnings for the three months ended September 30, 2021
|
$
|
134,937
|
Nine Months Ended September 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
|
157,417
|
143,904
|
$
|
1,797
|
$
|
412
|
$
|
374
|
$
|
258,549
|
$
|
145,466
|
$
|
200,993
|
$
|
2,455,567
|
Sudbury 4
|
12,032
|
12,551
|
1,812
|
400
|
1,024
|
22,742
|
4,864
|
17,722
|
308,158
|
|||||||
Constancia
|
16,505
|
12,156
|
1,796
|
410
|
315
|
21,829
|
13,018
|
17,040
|
101,741
|
|||||||
San Dimas
|
33,905
|
32,833
|
1,796
|
616
|
322
|
58,981
|
28,170
|
38,755
|
171,617
|
|||||||
Stillwater
|
8,952
|
8,468
|
1,796
|
327
|
397
|
15,212
|
9,083
|
12,444
|
220,949
|
|||||||
Other 5
|
25,725
|
22,931
|
|
1,806
|
|
585
|
|
67
|
|
41,421
|
|
26,471
|
|
27,981
|
|
64,985
|
|
254,536
|
232,843
|
$
|
1,798
|
$
|
454
|
$
|
369
|
$
|
418,734
|
$
|
227,072
|
$
|
314,935
|
$
|
3,323,017
|
Silver
|
||||||||||||||||
Peñasquito
|
6,408
|
6,228
|
$
|
25.59
|
$
|
4.29
|
$
|
3.55
|
$
|
159,374
|
$
|
110,552
|
$
|
132,655
|
$
|
328,470
|
Antamina
|
4,683
|
4,931
|
25.66
|
5.12
|
7.53
|
126,484
|
64,106
|
100,597
|
589,816
|
|||||||
Constancia
|
1,395
|
1,125
|
25.41
|
6.03
|
7.56
|
28,605
|
13,306
|
22,109
|
208,537
|
|||||||
Other 6
|
7,394
|
5,460
|
|
25.54
|
|
8.31
|
|
5.48
|
|
139,461
|
|
64,166
|
|
97,241
|
|
602,796
|
|
19,880
|
17,744
|
$
|
25.58
|
$
|
5.87
|
$
|
5.50
|
$
|
453,924
|
$
|
252,130
|
$
|
352,602
|
$
|
1,729,619
|
Palladium
|
||||||||||||||||
Stillwater
|
16,175
|
14,703
|
$
|
2,512
|
$
|
463
|
$
|
442
|
$
|
36,932
|
$
|
23,622
|
$
|
30,128
|
$
|
234,883
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
1,912,522
|
658,074
|
$
|
21.09
|
$
|
4.67
|
$
|
8.17
|
$
|
13,878
|
$
|
5,429
|
$
|
1,244
|
$
|
218,144
|
Operating results
|
|
|
|
|
|
|
|
$
|
923,468
|
$
|
508,253
|
$
|
698,909
|
$
|
5,505,663
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(44,030)
|
$
|
(46,162)
|
||||||||||||
Finance costs
|
(4,309)
|
(3,246)
|
||||||||||||||
Other
|
2,194
|
407
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
955
|
|
(52)
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(45,190)
|
$
|
(49,053)
|
$
|
541,077
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
463,063
|
$
|
649,856
|
$
|
6,046,740
|
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 cobalt pounds produced and sold, 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 37 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 777, Minto and Marmato gold interests as well as the non-operating Rosemont and Santo Domingo gold interests.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Neves-Corvo, Aljustrel, Minto, 777, Keno Hill, Cozamin and Marmato silver interests as well as the non-operating Loma de La Plata, Pascua-Lama
and Rosemont silver interests.
|
Nine Months Ended September 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
|
570,153
|
504,550
|
$ 1,830
|
$ 436
|
$ 1,394
|
$ 387
|
$ 1,007
|
Silver equivalent basis 5
|
41,051
|
36,328
|
$ 25.42
|
$ 6.05
|
$ 19.37
|
$ 5.38
|
$ 13.99
|
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 37 of this MD&A.
|
4) |
Refer to discussion on non-IFRS measure (iv) on page 38 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; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
Nine Months Ended September 30, 2020
|
||||||||||||||||
|
Units Produced²
|
Units
Sold |
Average
Realized Price ($'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
|
185,087
|
203,015
|
$
|
1,725
|
$
|
408
|
$
|
374
|
$
|
350,119
|
$
|
191,282
|
$
|
271,113
|
$
|
2,529,258
|
Sudbury 4
|
20,850
|
20,094
|
1,762
|
400
|
831
|
35,407
|
10,679
|
27,273
|
327,352
|
|||||||
Constancia
|
10,931
|
10,467
|
1,749
|
405
|
338
|
18,310
|
10,534
|
14,070
|
106,870
|
|||||||
San Dimas
|
26,620
|
27,075
|
1,730
|
609
|
315
|
46,836
|
21,819
|
32,166
|
185,835
|
|||||||
Stillwater
|
9,353
|
9,591
|
1,729
|
309
|
449
|
16,581
|
9,310
|
13,616
|
225,688
|
|||||||
Other 5
|
21,441
|
13,068
|
|
1,781
|
|
422
|
|
305
|
|
23,275
|
|
13,781
|
|
17,766
|
|
9,184
|
|
274,282
|
283,310
|
$
|
1,731
|
$
|
424
|
$
|
399
|
$
|
490,528
|
$
|
257,405
|
$
|
376,004
|
$
|
3,384,187
|
Silver
|
||||||||||||||||
Peñasquito
|
5,617
|
6,026
|
$
|
19.27
|
$
|
4.26
|
$
|
3.24
|
$
|
116,091
|
$
|
70,889
|
$
|
90,424
|
$
|
355,167
|
Antamina
|
3,439
|
3,122
|
19.69
|
3.82
|
8.74
|
61,459
|
22,233
|
49,521
|
641,521
|
|||||||
Constancia
|
1,145
|
1,019
|
20.10
|
5.97
|
7.63
|
20,480
|
6,627
|
14,398
|
220,417
|
|||||||
Other 6
|
6,182
|
4,489
|
|
19.70
|
|
7.26
|
|
2.19
|
|
88,464
|
|
46,004
|
|
53,355
|
|
475,613
|
|
16,383
|
14,656
|
$
|
19.55
|
$
|
5.21
|
$
|
4.40
|
$
|
286,494
|
$
|
145,753
|
$
|
207,698
|
$
|
1,692,718
|
Palladium
|
||||||||||||||||
Stillwater
|
16,515
|
15,460
|
$
|
2,134
|
$
|
379
|
$
|
428
|
$
|
32,990
|
$
|
20,512
|
$
|
27,127
|
$
|
243,354
|
Cobalt
|
||||||||||||||||
Voisey's Bay
|
-
|
-
|
$
|
n.a.
|
$
|
n.a.
|
$
|
n.a.
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Operating results
|
|
|
|
|
|
|
|
$
|
810,012
|
$
|
423,670
|
$
|
610,829
|
$
|
5,547,769
|
|
Other
|
||||||||||||||||
General and administrative
|
$
|
(56,307)
|
$
|
(38,529)
|
||||||||||||
Finance costs
|
(14,519)
|
(15,572)
|
||||||||||||||
Other
|
1,340
|
682
|
||||||||||||||
Income tax
|
|
|
|
|
|
|
|
|
|
|
|
(3,601)
|
|
70
|
|
|
Total other
|
|
|
|
|
|
|
|
|
$
|
(73,087)
|
$
|
(53,349)
|
$
|
543,418
|
||
|
|
|
|
|
|
|
|
|
|
|
$
|
350,583
|
$
|
557,480
|
$
|
6,091,187
|
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 cobalt pounds produced and sold, 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 37 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 and 777 gold interests as well as the non-operating Rosemont gold interest.
|
6) |
Comprised of the operating Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Aljustrel, Neves-Corvo, Minto and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont silver
interests.
|
Nine Months Ended September 30, 2020
|
|||||||
|
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
|
522,942
|
506,610
|
$ 1,599
|
$ 399
|
$ 1,200
|
$ 363
|
$ 837
|
Silver equivalent basis 5
|
37,652
|
36,476
|
$ 22.21
|
$ 5.54
|
$ 16.67
|
$ 5.05
|
$ 11.62
|
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 37 of this MD&A.
|
4) |
Refer to discussion on non-IFRS measure (iv) on page 38 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; $25.00 per ounce silver; $2,300 per ounce palladium; and $17.75 per pound
cobalt; consistent with those used in estimating the Company's production guidance for 2021.
|
• |
27,700 ounce (15%) decrease from Salobo, primarily due to the mining of lower grade material. As it relates to throughput, the two 12 mtpa lines operated at an average rate of approximately 84% of capacity during
2021 as compared to 87% during 2020; and
|
• |
8,800 ounce (42%) decrease from Sudbury, primarily due to the temporary suspension of operations from June 1, 2021 to August 9, 2021 as a result of a labour dispute (see footnote 5 on page 7 of this MD&A for
more information); partially offset by
|
• |
7,300 ounce (27%) increase from San Dimas, primarily due to operations being temporarily suspended during the second quarter of 2020 due to the COVID-19 pandemic coupled with the impact of revising the silver to
gold conversion ratio from 70:1 to 90:1 from April 1, 2020 to October 15, 2020;
|
• |
5,600 ounce (51%) 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%, partially offset by the receipt of 6,015 ounces during the first nine months of 2020 as a delay payment for not meeting a mining threshold at Pampacancha deposit whereas no delay payment was received during 2021 (see footnote 6 on page 7
of this MD&A for more information); and
|
• |
4,300 ounce (20%) increase from Other mines, primarily due to higher throughput at Minto, higher grades at 777 and the acquisition of the Marmato mineral interest.
|
• |
1,244,000 ounce (36%) increase from Antamina, primarily due to higher throughput and recoveries, with operations having been temporarily suspended during the second quarter of 2020 resulting from the COVID-19
pandemic;
|
• |
1,161,000 ounce (19%) increase from Other mines, primarily due to higher production at Yauliyacu as prior year operations were temporarily suspended during the second quarter due to the COVID-19 pandemic coupled
with the resumption of mining at Keno Hill along with production from the newly acquired Cozamin and Marmato mineral interests;
|
• |
791,000 ounce (14%) increase from Peñasquito, primarily due to higher throughput, partially offset by lower grades, with prior year operations at the mine being temporarily suspended during the second quarter of
2020 resulting from the COVID-19 pandemic; and
|
• |
250,000 ounce (22%) increase from Constancia, primarily due to higher grades resulting from the commencement of ore production from the Pampacancha satellite deposit and throughput, with prior year operations at
the mine being temporarily suspended during the second quarter of 2020 resulting from the COVID-19 pandemic.
|
Net earnings for the nine months ended September 30, 2020
|
$
|
350,583
|
Variance in gross margin
|
||
Variance in revenue due to:
|
||
Payable gold production
|
$
|
(29,526)
|
Payable silver production
|
65,128
|
|
Payable palladium production
|
(1,021)
|
|
Payable cobalt production
|
37,631
|
|
Changes in inventory and PBND
|
(86,967)
|
|
Prices realized per ounce sold
|
|
128,211
|
Total increase to revenue
|
$
|
113,456
|
Variance in cost of sales due to:
|
||
Sales volume
|
$
|
4,037
|
Sales mix differences
|
(14,198)
|
|
Cash cost per ounce
|
(15,387)
|
|
Depletion per ounce
|
|
(3,325)
|
Total increase to cost of sales
|
$
|
(28,873)
|
Total increase to gross margin
|
$
|
84,583
|
Other variances
|
||
General and administrative expenses (see page 24)
|
12,277
|
|
Other income / expense (see page 25)
|
854
|
|
Finance costs (see page 25)
|
10,210
|
|
Income taxes (see page 25)
|
|
4,556
|
Total increase in net earnings
|
$
|
112,480
|
Net earnings for the nine months ended September 30, 2021
|
$
|
463,063
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Salaries and benefits
|
|
|
||
Salaries and benefits, excluding PSUs
|
$ 4,283
|
$ 4,037
|
$ 13,626
|
$ 12,268
|
PSUs
|
2,824
|
10,482
|
9,800
|
23,856
|
Total salaries and benefits
|
$ 7,107
|
$ 14,519
|
$ 23,426
|
$ 36,124
|
Depreciation
|
469
|
449
|
1,412
|
1,438
|
Donations
|
1,428
|
1,745
|
3,425
|
4,379
|
Professional fees
|
837
|
1,264
|
3,390
|
2,603
|
Other
|
2,439
|
2,030
|
8,431
|
7,636
|
General and administrative before equity settled stock based compensation
|
$ 12,280
|
$ 20,007
|
$ 40,084
|
$ 52,180
|
Equity settled stock based compensation (a non-cash expense)
|
1,315
|
1,319
|
3,946
|
4,127
|
Total general and administrative
|
$ 13,595
|
$ 21,326
|
$ 44,030
|
$ 56,307
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Interest income
|
$ (68)
|
$ (23)
|
$ (165)
|
$ (178)
|
Dividend income
|
(110)
|
-
|
(110)
|
-
|
Foreign exchange (gain) loss
|
(516)
|
405
|
121
|
(816)
|
(Gain) loss on fair value adjustment of share purchase warrants held
|
1,246
|
1,107
|
2,392
|
845
|
(Gain) loss on fair value adjustment of convertible notes receivable
|
490
|
1,095
|
(4,136)
|
(1,382)
|
Other
|
66
|
40
|
(296)
|
191
|
Total other (income) expense
|
$ 1,108
|
$ 2,624
|
$ (2,194)
|
$ (1,340)
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Average principal outstanding during period
|
$ -
|
$ 567,056
|
$ 26,007
|
$ 686,659
|
Average effective interest rate during period
|
n.a.
|
1.24%
|
1.17%
|
2.17%
|
Total interest costs incurred during period
|
$ -
|
$ 1,759
|
$ 229
|
$11,191
|
Costs related to undrawn credit facilities
|
1,349
|
971
|
3,985
|
3,230
|
Interest expense - lease liabilities
|
30
|
36
|
95
|
98
|
Total finance costs
|
$ 1,379
|
$ 2,766
|
$ 4,309
|
$ 14,519
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Current income tax expense (recovery)
|
$ 34
|
$ (2,693)
|
$ (6,105)
|
$ (2,606)
|
Deferred income tax expense (recovery) related to:
|
|
|
||
Origination and reversal of temporary differences
|
4,006
|
6,371
|
$ 17,942
|
$ 11,245
|
Write down (reversal of write down) or recognition of prior period temporary differences
|
(3,607)
|
(3,721)
|
(12,792)
|
(5,038)
|
Total deferred income tax expense (recovery)
|
$ 399
|
$ 2,650
|
$ 5,150
|
$ 6,207
|
Income tax expense (recovery) recognized in net earnings
|
$ 433
|
$ (43)
|
$ (955)
|
$ 3,601
|
Operating cash inflow for the three months ended September 30, 2020
|
$
|
228,099
|
Variance attributable to revenue (see page 20):
|
$
|
(38,311)
|
Decrease in accounts receivable
|
|
6,566
|
Total decrease to cash inflows attributable to sales
|
$
|
(31,745)
|
Variance attributable to cost of sales, excluding depletion:
|
||
Sales volume
|
$
|
6,003
|
Sales mix differences
|
2,435
|
|
Cost per ounce
|
(847)
|
|
Decrease in accounts payable
|
|
(5,253)
|
Total decrease to cash outflows attributable to cost of sales
|
$
|
2,338
|
Total decrease to net cash inflows attributable to gross margin
|
$
|
(29,407)
|
Other variances:
|
||
General and administrative
|
807
|
|
Finance costs
|
1,781
|
|
Income taxes
|
-
|
|
Other
|
|
7
|
Total decrease to net cash inflows
|
$
|
(26,812)
|
Operating cash inflow for the three months ended September 30, 2021
|
$
|
201,287
|
Operating cash inflow for the nine months ended September 30, 2020
|
$
|
557,480
|
Variance attributable to revenue (see page 24):
|
$
|
113,456
|
Increase in accounts receivable
|
|
(1,771)
|
Total increase to cash inflows attributable to sales
|
$
|
111,685
|
Variance attributable to cost of sales, excluding depletion:
|
||
Sales volume
|
$
|
2,528
|
Sales mix differences
|
(4,658)
|
|
Cost per ounce
|
(15,387)
|
|
Decrease in accounts payable
|
|
(6,088)
|
Total increase to cash outflows attributable to cost of sales
|
$
|
(23,605)
|
Total increase to net cash inflows attributable to gross margin
|
$
|
88,080
|
Other variances:
|
||
General and administrative
|
(7,633)
|
|
Finance costs
|
12,326
|
|
Income taxes
|
(122)
|
|
Other
|
|
(275)
|
Total increase to net cash inflows
|
$
|
92,376
|
Operating cash inflow for the nine months ended September 30, 2021
|
$
|
649,856
|
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
|
Gold
|
Silver
|
Palladium
|
Cobalt
|
|||||||
Peñasquito
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
$
|
4.29
|
|
n/a
|
|
n/a
|
Life of Mine
|
24-Jul-07
|
Constancia
|
50%
|
100%
|
0%
|
0%
|
$
|
412 ²
|
$
|
6.08 ²
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Aug-12
|
Salobo
|
75%
|
0%
|
0%
|
0%
|
$
|
412
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
28-Feb-13
|
Sudbury
|
70%
|
0%
|
0%
|
0%
|
$
|
400
|
|
n/a
|
|
n/a
|
|
n/a
|
20 years
|
28-Feb-13
|
Antamina
|
0%
|
33.75%
|
0%
|
0%
|
|
n/a
|
|
20%
|
|
n/a
|
|
n/a
|
Life of Mine
|
3-Nov-15
|
San Dimas
|
variable ³
|
0% ³
|
0%
|
0%
|
$
|
618
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-May-18
|
Stillwater
|
100%
|
0%
|
4.5% ⁴
|
0%
|
|
18% ⁵
|
|
n/a
|
|
18% ⁵
|
|
n/a
|
Life of Mine
|
16-Jul-18
|
Voisey's Bay
|
0%
|
0%
|
0%
|
42.4% ⁶
|
|
n/a
|
|
n/a
|
|
n/a
|
|
18% ⁷
|
Life of Mine
|
11-Jun-18
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Filos
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.53
|
|
n/a
|
|
n/a
|
25 years
|
15-Oct-04
|
Zinkgruvan
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.46
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Dec-04
|
Yauliyacu
|
0%
|
100% ⁸
|
0%
|
0%
|
|
n/a
|
$
|
8.98 ⁹
|
|
n/a
|
|
n/a
|
Life of Mine
|
23-Mar-06
|
Stratoni
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
11.54
|
|
n/a
|
|
n/a
|
Life of Mine
|
23-Apr-07
|
Neves-Corvo
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.38
|
|
n/a
|
|
n/a
|
50 years
|
5-Jun-07
|
Aljustrel
|
0%
|
100% ¹⁰
|
0%
|
0%
|
|
n/a
|
|
50%
|
|
n/a
|
|
n/a
|
50 years
|
5-Jun-07
|
Minto
|
100% ¹¹
|
100%
|
0%
|
0%
|
|
65% ¹²
|
$
|
4.31
|
|
n/a
|
|
n/a
|
Life of Mine
|
20-Nov-08
|
Keno Hill
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
|
variable ¹³
|
|
n/a
|
|
n/a
|
Life of Mine
|
2-Oct-08
|
Pascua-Lama
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Sep-09
|
Rosemont
|
100%
|
100%
|
0%
|
0%
|
$
|
450
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-Feb-10
|
Loma de La Plata
|
0%
|
12.5%
|
0%
|
0%
|
|
n/a
|
$
|
4.00
|
|
n/a
|
|
n/a
|
Life of Mine
|
n/a ¹⁴
|
777
|
50%
|
100%
|
0%
|
0%
|
$
|
429 ²
|
$
|
6.32 ²
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Aug-12
|
Marmato
|
6.5% ¹⁵
|
100% ¹⁵
|
0%
|
0%
|
|
18% ¹⁶
|
|
18% ¹⁶
|
|
n/a
|
|
n/a
|
Life of Mine
|
5-Nov-20
|
Cozamin
|
0%
|
50% ¹⁷
|
0%
|
0%
|
|
n/a
|
|
10%
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-Dec-20
|
Santo Domingo
|
100% ¹⁸
|
0%
|
0%
|
0%
|
|
18% ⁵
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
24-Mar-21
|
Early Deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toroparu
|
10%
|
50%
|
0%
|
0%
|
$
|
400
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
11-Nov-13
|
Cotabambas
|
25% ¹⁹
|
100% ¹⁹
|
0%
|
0%
|
$
|
450
|
$
|
5.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
21-Mar-16
|
Kutcho
|
100% ²⁰
|
100% ²⁰
|
0%
|
0%
|
|
20%
|
|
20%
|
|
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) |
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.
|
9) |
Should the market price of silver exceed $20 per ounce, in addition to the $8.98 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 $18.98 per ounce of silver delivered.
|
10) |
Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
11) |
The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
|
12) |
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.
|
13) |
Effective July 2020, the price paid per ounce of silver delivered under the Keno Hill PMPA has been modified to be 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.
|
14) |
Terms of the agreement not yet finalized.
|
15) |
Once Wheaton has received 190,000 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 3.25% and 50%, respectively.
|
16) |
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.
|
17) |
Once Wheaton has received 10 million ounces, the Company’s attributable silver production will be reduced to 33% of silver production for the life of the mine.
|
18) |
Once the Company has received 285,000 ounces of gold the Company’s attributable gold production will be reduced to 67%.
|
19) |
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.
|
20) |
Once 51,000 ounces of gold and 5.6 million ounces of silver have been delivered to Wheaton, attributable production will decrease to 66.67% of gold and silver production for the life of mine.
|
Obligations With Scheduled Payment Dates
|
||||||||||||||||||||
(in thousands)
|
2021
|
2022 - 2024
|
2025 - 2026
|
After 2026
|
Sub-Total
|
Other Commitments
|
|
Total | ||||||||||||
Payments for mineral stream interests
|
|
|
|
|||||||||||||||||
Rosemont 1
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
231,150
|
|
$
|
231,150
|
|||||
Loma de La Plata
|
-
|
-
|
-
|
-
|
-
|
32,400
|
|
|
32,400
|
|||||||||||
Marmato
|
4,000
|
-
|
-
|
-
|
4,000
|
72,000
|
|
|
76,000
|
|||||||||||
Santo Domingo
|
-
|
-
|
-
|
-
|
-
|
260,000
|
|
|
260,000
|
|||||||||||
Salobo 2
|
-
|
646,000
|
-
|
-
|
646,000
|
-
|
|
|
646,000
|
|||||||||||
Constancia 3
|
4,000
|
-
|
-
|
-
|
4,000
|
-
|
|
|
4,000
|
|||||||||||
Payments for early deposit mineral stream interest
|
|
|
|
|||||||||||||||||
Toroparu 4
|
-
|
138,000
|
-
|
-
|
138,000
|
-
|
|
|
138,000
|
|||||||||||
Cotabambas
|
-
|
2,500
|
-
|
-
|
2,500
|
126,000
|
|
|
128,500
|
|||||||||||
Kutcho
|
-
|
-
|
-
|
-
|
-
|
58,000
|
|
|
58,000
|
|||||||||||
Non-revolving credit facility 5
|
208
|
-
|
-
|
-
|
208
|
-
|
|
|
208
|
|||||||||||
Leases liabilities
|
|
224
|
|
|
2,732
|
|
|
312
|
|
|
-
|
|
|
3,268
|
|
|
-
|
|
|
3,268
|
Total contractual obligations
|
$
|
8,432
|
|
$
|
789,232
|
|
$
|
312
|
|
$
|
-
|
|
$
|
797,976
|
|
$
|
779,550
|
|
$
|
1,577,526
|
1) |
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
2022, the Company would expect to pay an estimated expansion payment of between $550 million to $650 million.
|
3) |
As more fully explained on footnote 6 on page 7 of this MD&A, if Hudbay mines and processes four million tonnes of ore from the Pampacancha deposit by December 31, 2021, the Company will make an additional
deposit payment of $4 million to Hudbay.
|
4) |
The Company anticipates construction to begin in this period.
|
5) |
Represents the maximum amount available to Kutcho under the Cdn$1.3 million non-revolving credit facility (see the Kutcho section on the following page).
|
• |
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 utilised and a deferred tax liability for all deductible and
taxable temporary differences associated with right-of-use assets and lease liabilities; and
|
• |
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, 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
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands, except for per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
||||
Net earnings
|
|
$
|
134,937
|
$
|
149,875
|
|
$
|
463,063
|
$
|
350,583
|
||
Add back (deduct):
|
|
|
|
|
|
|
||||||
(Gain) loss on fair value adjustment of share purchase warrants held
|
|
|
1,246
|
1,107
|
|
|
2,392
|
845
|
||||
(Gain) loss on fair value adjustment of convertible notes receivable
|
|
|
490
|
1,095
|
|
|
(4,136)
|
(1,382)
|
||||
Income tax expense (recovery) recognized in the Statement of Shareholders' Equity
|
|
|
(269)
|
(92)
|
|
|
837
|
(1,731)
|
||||
Income tax expense (recovery) recognized in the Statement of OCI
|
|
|
627
|
(9)
|
|
|
(1,989)
|
5,145
|
||||
Other
|
|
|
56
|
|
|
31
|
|
|
(319)
|
|
|
435
|
Adjusted net earnings
|
|
$
|
137,087
|
|
$
|
152,007
|
|
$
|
459,848
|
|
$
|
353,895
|
Divided by:
|
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding
|
|
|
450,326
|
449,125
|
|
|
449,977
|
448,484
|
||||
Diluted weighted average number of shares outstanding
|
|
|
451,717
|
|
|
451,999
|
|
|
451,369
|
|
|
449,892
|
Equals:
|
|
|
|
|
|
|
||||||
Adjusted earnings per share - basic
|
|
$
|
0.304
|
$
|
0.338
|
|
$
|
1.022
|
$
|
0.789
|
||
Adjusted earnings per share - diluted
|
|
$
|
0.303
|
|
$
|
0.336
|
|
$
|
1.019
|
|
$
|
0.787
|
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
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands, except for per share amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
||||
Cash generated by operating activities
|
|
$
|
201,287
|
|
$
|
228,099
|
|
$
|
649,856
|
|
$
|
557,480
|
Divided by:
|
|
|
|
|
|
|
||||||
Basic weighted average number of shares outstanding
|
|
|
450,326
|
449,125
|
|
|
449,977
|
448,484
|
||||
Diluted weighted average number of shares outstanding
|
|
|
451,717
|
|
|
451,999
|
|
|
451,369
|
|
|
449,892
|
Equals:
|
|
|
|
|
|
|
||||||
Operating cash flow per share - basic
|
|
$
|
0.447
|
$
|
0.508
|
|
$
|
1.444
|
$
|
1.243
|
||
Operating cash flow per share - diluted
|
|
$
|
0.446
|
|
$
|
0.505
|
|
$
|
1.440
|
|
$
|
1.239
|
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
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands, except for gold and palladium ounces sold, cobalt pounds sold and per unit amounts)
|
|
2021 |
|
2020
|
|
2021
|
|
2020
|
||||
Cost of sales
|
|
$
|
117,505
|
$
|
130,720
|
|
$
|
415,215
|
$
|
386,342
|
||
Less: depletion
|
|
|
(54,976)
|
|
|
(60,601)
|
|
|
(195,458)
|
|
|
(184,104)
|
Cash cost of sales
|
|
$
|
62,529
|
|
$
|
70,119
|
|
$
|
219,757
|
|
$
|
202,238
|
Cash cost of sales is comprised of:
|
|
|
|
|
|
|
||||||
Total cash cost of gold sold
|
|
$
|
31,405
|
$
|
38,570
|
|
$
|
105,721
|
$
|
120,075
|
||
Total cash cost of silver sold
|
|
|
27,782
|
29,426
|
|
|
104,159
|
76,300
|
||||
Total cash cost of palladium sold
|
|
|
2,667
|
2,123
|
|
|
6,804
|
5,863
|
||||
Total cash cost of cobalt sold
|
|
|
675
|
|
|
-
|
|
|
3,073
|
|
|
-
|
Total cash cost of sales
|
|
$
|
62,529
|
|
$
|
70,119
|
|
$
|
219,757
|
|
$
|
202,238
|
Divided by:
|
|
|
|
|
|
|
||||||
Total gold ounces sold
|
|
|
67,649
|
90,101
|
|
|
232,843
|
283,310
|
||||
Total silver ounces sold
|
|
|
5,487
|
4,999
|
|
|
17,744
|
14,656
|
||||
Total palladium ounces sold
|
|
|
5,703
|
5,546
|
|
|
14,703
|
15,460
|
||||
Total cobalt pounds sold
|
|
|
131,174
|
|
|
-
|
|
|
658,074
|
|
|
-
|
Equals:
|
|
|
|
|
|
|
||||||
Average cash cost of gold (per ounce)
|
|
$
|
464
|
$
|
428
|
|
$
|
454
|
$
|
424
|
||
Average cash cost of silver (per ounce)
|
|
$
|
5.06
|
$
|
5.89
|
|
$
|
5.87
|
$
|
5.21
|
||
Average cash cost of palladium (per ounce)
|
|
$
|
468
|
$
|
383
|
|
$
|
463
|
$
|
379
|
||
Average cash cost of cobalt (per pound)
|
|
$
|
5.15
|
|
$
|
n.a.
|
|
$
|
4.67
|
|
$
|
n.a.
|
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
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands, except for cobalt pounds sold, gold and palladium ounces sold and per unit amounts)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
||||
Total sales:
|
|
|
|
|
|
|
||||||
Gold
|
|
$
|
121,416
|
$
|
171,734
|
|
$
|
418,734
|
$
|
490,528
|
||
Silver
|
|
$
|
130,587
|
$
|
123,434
|
|
$
|
453,924
|
$
|
286,494
|
||
Palladium
|
|
$
|
13,834
|
$
|
12,100
|
|
$
|
36,932
|
$
|
32,990
|
||
Cobalt
|
|
$
|
3,120
|
$
|
-
|
|
$
|
13,878
|
$
|
-
|
||
Divided by:
|
|
|
|
|
|
|
||||||
Total gold ounces sold
|
|
|
67,649
|
90,101
|
|
|
232,843
|
283,310
|
||||
Total silver ounces sold
|
|
|
5,487
|
4,999
|
|
|
17,744
|
14,656
|
||||
Total palladium ounces sold
|
|
|
5,703
|
5,546
|
|
|
14,703
|
15,460
|
||||
Total cobalt pounds sold
|
|
|
131,174
|
|
|
-
|
|
|
658,074
|
|
|
-
|
Equals:
|
|
|
|
|
|
|
||||||
Average realized price of gold (per ounce)
|
|
$
|
1,795
|
$
|
1,906
|
|
$
|
1,798
|
$
|
1,731
|
||
Average realized price of silver (per ounce)
|
|
$
|
23.80
|
$
|
24.69
|
|
$
|
25.58
|
$
|
19.55
|
||
Average realized price of palladium (per ounce)
|
|
$
|
2,426
|
$
|
2,182
|
|
$
|
2,512
|
$
|
2,134
|
||
Average realized price of cobalt (per pound)
|
|
$
|
23.78
|
$
|
n.a.
|
|
$
|
21.09
|
$
|
n.a.
|
||
Less:
|
|
|
|
|
|
|
||||||
Average cash cost of gold 1 (per ounce)
|
|
$
|
(464)
|
$
|
(428)
|
|
$
|
(454)
|
$
|
(424)
|
||
Average cash cost of silver 1 (per ounce)
|
|
$
|
(5.06)
|
$
|
(5.89)
|
|
$
|
(5.87)
|
$
|
(5.21)
|
||
Average cash cost of palladium 1 (per ounce)
|
|
$
|
(468)
|
$
|
(383)
|
|
$
|
(463)
|
$
|
(379)
|
||
Average cash cost of cobalt 1 (per pound)
|
|
$
|
(5.15)
|
|
$
|
n.a.
|
|
$
|
(4.67)
|
|
$
|
n.a.
|
Equals:
|
|
|
|
|
|
|
||||||
Cash operating margin per gold ounce sold
|
|
$
|
1,331
|
$
|
1,478
|
|
$
|
1,344
|
$
|
1,307
|
||
As a percentage of realized price of gold
|
|
|
74%
|
78%
|
|
|
75%
|
76%
|
||||
Cash operating margin per silver ounce sold
|
|
$
|
18.74
|
$
|
18.80
|
|
$
|
19.71
|
$
|
14.34
|
||
As a percentage of realized price of silver
|
|
|
79%
|
76%
|
|
|
77%
|
73%
|
||||
Cash operating margin per palladium ounce sold
|
|
$
|
1,958
|
$
|
1,799
|
|
$
|
2,049
|
$
|
1,755
|
||
As a percentage of realized price of palladium
|
|
|
81%
|
82%
|
|
|
82%
|
82%
|
||||
Cash operating margin per cobalt pound sold
|
|
$
|
18.63
|
$
|
n.a.
|
|
$
|
16.42
|
$
|
n.a.
|
||
As a percentage of realized price of cobalt
|
|
|
78%
|
|
|
n.a.
|
|
|
78%
|
|
|
n.a.
|
1) |
Refer to discussion on non-IFRS measure (iii) on page 37 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.
|
|
Proven
|
Probable
|
Proven & Probable
|
|
||||||
|
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Process Recovery % (7)
|
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Mt
|
g/t / %
|
Moz / Mlbs
|
|
Gold
|
|
|
|
|
|
|
||||
Salobo (75%) (10)
|
106.7
|
0.37
|
1.27
|
761.2
|
0.30
|
7.32
|
867.8
|
0.31
|
8.59
|
76%
|
Stillwater (11)
|
7.9
|
0.39
|
0.10
|
50.3
|
0.39
|
0.64
|
58.2
|
0.39
|
0.73
|
69%
|
Constancia (50%)
|
234.5
|
0.06
|
0.48
|
31.8
|
0.08
|
0.08
|
266.3
|
0.07
|
0.56
|
61%
|
Sudbury (70%) (12)
|
10.3
|
0.43
|
0.14
|
13.5
|
0.46
|
0.20
|
23.8
|
0.45
|
0.34
|
75%
|
San Dimas (25%) (13)
|
0.5
|
4.52
|
0.07
|
0.5
|
3.09
|
0.05
|
1.0
|
3.77
|
0.12
|
95%
|
777 (50%)
|
0.6
|
2.23
|
0.04
|
0.2
|
1.86
|
0.01
|
0.8
|
2.13
|
0.05
|
58%
|
Minto
|
0.4
|
0.25
|
0.003
|
2.0
|
0.67
|
0.04
|
2.4
|
0.60
|
0.05
|
75%
|
Marmato (6.5%) (12,14)
|
0.1
|
5.14
|
0.01
|
1.2
|
3.11
|
0.12
|
1.3
|
3.19
|
0.13
|
90%
|
Santo Domingo (12,27)
|
65.4
|
0.08
|
0.17
|
326.9
|
0.03
|
0.34
|
392.3
|
0.04
|
0.51
|
61%
|
Toroparu (10%) (15,16)
|
3.0
|
1.10
|
0.10
|
9.7
|
0.98
|
0.31
|
12.7
|
1.00
|
0.41
|
89%
|
Kutcho (16,17)
|
-
|
-
|
-
|
10.4
|
0.37
|
0.12
|
10.4
|
0.37
|
0.12
|
41%
|
Metates Royalty (18)
|
1.4
|
0.70
|
0.03
|
4.1
|
0.45
|
0.06
|
5.5
|
0.52
|
0.09
|
91%
|
Total Gold
|
|
|
2.42
|
|
|
9.29
|
|
|
11.71
|
|
Silver
|
|
|
|
|
|
|
||||
Peñasquito (25%) (10)
|
28.0
|
37.8
|
34.0
|
69.0
|
32.7
|
72.4
|
97.0
|
34.1
|
106.4
|
85%
|
Constancia
|
468.9
|
3.0
|
45.1
|
63.6
|
3.4
|
7.0
|
532.5
|
3.0
|
52.0
|
70%
|
Antamina (33.75%) (12,19)
|
|
|
|
|
|
|
||||
Copper
|
46.6
|
6.8
|
10.2
|
32.1
|
7.9
|
8.1
|
78.6
|
7.2
|
18.3
|
71%
|
Copper-Zinc
|
23.0
|
12.8
|
9.4
|
27.3
|
12.9
|
11.3
|
50.3
|
12.9
|
20.8
|
71%
|
Neves-Corvo
|
|
|
|
|
|
|
||||
Copper
|
5.2
|
31.0
|
5.2
|
24.5
|
30.0
|
23.6
|
29.7
|
30.2
|
28.8
|
24%
|
Zinc
|
4.7
|
71.0
|
10.8
|
25.4
|
60.6
|
49.5
|
30.1
|
62.2
|
60.3
|
30%
|
Zinkgruvan
|
|
|
|
|
|
|
||||
Zinc
|
3.4
|
77.9
|
8.5
|
5.4
|
83.6
|
14.5
|
8.8
|
81.4
|
23.0
|
83%
|
Copper
|
2.8
|
30.0
|
2.7
|
0.3
|
33.0
|
0.3
|
3.1
|
30.3
|
3.0
|
70%
|
Yauliyacu (20)
|
1.3
|
78.9
|
3.4
|
6.8
|
101.1
|
22.2
|
8.2
|
97.4
|
25.6
|
83%
|
Aljustrel (21)
|
9.7
|
47.4
|
14.8
|
27.4
|
46.9
|
41.4
|
37.2
|
47.1
|
56.2
|
26%
|
San Dimas (25%) (13)
|
0.5
|
367.8
|
5.6
|
0.5
|
295.5
|
5.0
|
1.0
|
329.7
|
10.6
|
94%
|
Cozamin (50%) (12,22)
|
|
|
|
|
|
|
||||
Copper
|
-
|
-
|
-
|
6.3
|
44.4
|
9.0
|
6.3
|
44.4
|
9.0
|
86%
|
Zinc
|
-
|
-
|
-
|
0.7
|
44.3
|
1.1
|
0.7
|
44.3
|
1.1
|
86%
|
Keno Hill (25%)
|
|
|
|
|
|
|
||||
Underground
|
-
|
-
|
-
|
0.3
|
804.5
|
7.6
|
0.3
|
804.5
|
7.6
|
96%
|
Los Filos
|
26.2
|
3.5
|
3.0
|
78.1
|
10.2
|
25.5
|
104.2
|
8.5
|
28.5
|
10%
|
Stratoni
|
-
|
-
|
-
|
0.6
|
148.0
|
2.7
|
0.6
|
148.0
|
2.7
|
80%
|
777
|
1.1
|
31.4
|
1.1
|
0.4
|
30.0
|
0.4
|
1.5
|
31.0
|
1.5
|
45%
|
Minto
|
0.4
|
3.4
|
0.0
|
2.0
|
6.0
|
0.4
|
2.4
|
5.6
|
0.4
|
78%
|
Marmato (12,14)
|
0.8
|
22.1
|
0.6
|
18.9
|
6.2
|
3.8
|
19.7
|
6.9
|
4.4
|
34%
|
Rosemont (23)
|
408.6
|
5.0
|
66.2
|
108.0
|
3.0
|
10.4
|
516.6
|
4.6
|
76.7
|
76%
|
Kutcho (16,17)
|
-
|
-
|
-
|
9.9
|
34.6
|
11.0
|
9.9
|
34.6
|
11.0
|
46%
|
Metates Royalty (18)
|
1.4
|
17.2
|
0.8
|
4.1
|
13.1
|
1.7
|
5.5
|
14.2
|
2.5
|
66%
|
Total Silver
|
|
|
221.5
|
|
|
328.9
|
|
|
550.3
|
|
Palladium
|
|
|
|
|
|
|
||||
Stillwater (4.5%) (11)
|
0.2
|
11.2
|
0.09
|
1.5
|
11.2
|
0.55
|
1.8
|
11.2
|
0.64
|
90%
|
Total Palladium
|
|
|
0.09
|
|
|
0.55
|
|
|
0.64
|
|
Cobalt
|
|
|
|
|
|
|
||||
Voisey's Bay (42.4%) (12,24)
|
5.7
|
0.12
|
14.6
|
6.5
|
0.12
|
17.1
|
12.1
|
0.12
|
31.7
|
84%
|
Total Cobalt
|
|
|
14.6
|
|
|
17.1
|
|
|
31.7
|
|
|
Measured
|
Indicated
|
Measured & Indicated
|
||||||
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
Tonnage
|
Grade
|
Contained
|
|
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Gold
|
|
|
|
|
|
|
|||
Salobo (75%) (10)
|
3.5
|
0.27
|
0.03
|
294.6
|
0.31
|
2.90
|
298.1
|
0.31
|
2.93
|
Stillwater (11)
|
3.3
|
0.26
|
0.03
|
13.3
|
0.21
|
0.09
|
16.6
|
0.22
|
0.12
|
Constancia (50%)
|
68.3
|
0.06
|
0.12
|
62.2
|
0.05
|
0.10
|
130.5
|
0.05
|
0.22
|
Sudbury (70%) (12)
|
1.3
|
0.22
|
0.01
|
7.1
|
0.76
|
0.17
|
8.3
|
0.68
|
0.18
|
777 (50%)
|
0.1
|
2.31
|
0.00
|
0.0
|
1.61
|
0.00
|
0.1
|
2.01
|
0.01
|
Minto
|
3.3
|
0.40
|
0.04
|
9.0
|
0.57
|
0.17
|
12.4
|
0.53
|
0.21
|
Marmato (6.5%) (12,14)
|
0.1
|
5.30
|
0.01
|
1.1
|
2.62
|
0.09
|
1.1
|
2.81
|
0.10
|
Santo Domingo (12,27)
|
1.4
|
0.05
|
0.00
|
120.1
|
0.03
|
0.11
|
121.5
|
0.03
|
0.12
|
Toroparu (10%) (15,16)
|
1.2
|
0.93
|
0.03
|
9.0
|
0.87
|
0.25
|
10.2
|
0.87
|
0.29
|
Cotabambas (25%) (16,25)
|
-
|
-
|
-
|
29.3
|
0.23
|
0.22
|
29.3
|
0.23
|
0.22
|
Kutcho (16,17)
|
-
|
-
|
-
|
5.7
|
0.55
|
0.10
|
5.7
|
0.55
|
0.10
|
Brewery Creek (26)
|
-
|
-
|
-
|
0.4
|
1.11
|
0.02
|
0.4
|
1.11
|
0.02
|
Total Gold
|
|
|
0.29
|
|
|
4.22
|
|
|
4.50
|
Silver
|
|
|
|
|
|
|
|||
Peñasquito (25%) (10)
|
8.7
|
26.8
|
7.5
|
60.5
|
26.7
|
52.0
|
69.2
|
26.8
|
59.5
|
Constancia
|
136.6
|
2.3
|
10.3
|
124.3
|
2.2
|
8.8
|
260.9
|
2.3
|
19.1
|
Antamina (33.75%) (12,19)
|
|
|
|
|
|
|
|||
Copper
|
31.2
|
7.0
|
7.0
|
108.1
|
9.0
|
31.3
|
139.3
|
8.6
|
38.3
|
Copper-Zinc
|
10.5
|
21.0
|
7.1
|
49.4
|
19.0
|
30.2
|
59.9
|
19.4
|
37.3
|
Neves-Corvo
|
|
|
|
|
|
|
|||
Copper
|
4.8
|
55.8
|
8.7
|
28.7
|
52.4
|
48.3
|
33.5
|
52.9
|
57.0
|
Zinc
|
6.7
|
61.9
|
13.4
|
35.7
|
59.0
|
67.8
|
42.4
|
59.5
|
81.2
|
Zinkgruvan
|
|
|
|
|
|
|
|||
Zinc
|
3.7
|
64.6
|
7.7
|
11.2
|
76.3
|
27.4
|
14.9
|
73.4
|
35.1
|
Copper
|
1.2
|
42.4
|
1.6
|
0.2
|
39.8
|
0.3
|
1.4
|
42.0
|
1.9
|
Yauliyacu (20)
|
5.9
|
101.4
|
19.2
|
8.0
|
121.8
|
31.2
|
13.9
|
113.1
|
50.4
|
Aljustrel (21)
|
4.3
|
67.3
|
9.3
|
3.9
|
58.9
|
7.4
|
8.2
|
63.3
|
16.7
|
Cozamin (50%) (12,22)
|
|
|
|
|
|
|
|||
Copper
|
0.2
|
53.3
|
0.3
|
4.5
|
36.9
|
5.3
|
4.7
|
37.5
|
5.6
|
Zinc
|
-
|
-
|
-
|
2.2
|
31.2
|
2.3
|
2.2
|
31.2
|
2.3
|
Pascua-Lama (25%)
|
10.7
|
57.2
|
19.7
|
97.9
|
52.2
|
164.4
|
108.6
|
52.7
|
184.1
|
Keno Hill (25%)
|
|
|
|
|
|
|
|||
Underground
|
-
|
-
|
-
|
0.7
|
455.8
|
10.5
|
0.7
|
455.8
|
10.5
|
Elsa Tailings
|
-
|
-
|
-
|
0.6
|
119.0
|
2.4
|
0.6
|
119.0
|
2.4
|
Los Filos
|
88.5
|
5.3
|
15.2
|
133.7
|
8.1
|
35.0
|
222.2
|
7.0
|
50.2
|
Stratoni
|
-
|
-
|
-
|
0.4
|
138.5
|
2.0
|
0.4
|
138.5
|
2.0
|
777
|
0.1
|
39.0
|
0.2
|
0.1
|
30.7
|
0.1
|
0.2
|
35.5
|
0.2
|
Minto
|
3.3
|
3.4
|
0.4
|
9.0
|
5.0
|
1.5
|
12.4
|
4.6
|
1.8
|
Marmato (12,14)
|
0.9
|
26.5
|
0.8
|
12.8
|
8.1
|
3.4
|
13.8
|
9.4
|
4.2
|
Rosemont (23)
|
112.2
|
3.9
|
14.1
|
358.0
|
2.7
|
31.5
|
470.2
|
3.0
|
45.6
|
Loma de La Plata (12.5%)
|
-
|
-
|
-
|
3.6
|
169.0
|
19.8
|
3.6
|
169.0
|
19.8
|
Toroparu (50%) (15,16)
|
21.9
|
1.1
|
0.8
|
98.5
|
0.7
|
2.3
|
120.4
|
0.8
|
3.1
|
Cotabambas (16,25)
|
-
|
-
|
-
|
117.1
|
2.7
|
10.3
|
117.1
|
2.7
|
10.3
|
Kutcho (16,17)
|
-
|
-
|
-
|
5.4
|
25.9
|
4.5
|
5.4
|
25.9
|
4.5
|
Total Silver
|
|
|
143.2
|
|
|
599.8
|
|
|
743.0
|
Palladium
|
|
|
|
|
|
|
|||
Stillwater (4.5%) (11)
|
0.03
|
7.1
|
0.01
|
0.1
|
5.1
|
0.02
|
0.2
|
5.5
|
0.03
|
Total Palladium
|
|
|
0.01
|
|
|
0.02
|
|
|
0.03
|
Cobalt
|
|
|
|
|
|
|
|||
Voisey's Bay (42.4%) (12,24)
|
1.7
|
0.04
|
1.5
|
-
|
-
|
-
|
1.7
|
0.04
|
1.5
|
Total Cobalt
|
|
|
1.53
|
|
|
-
|
|
|
1.5
|
|
Inferred
|
||
Tonnage
|
Grade
|
Contained
|
|
|
Mt
|
g/t / %
|
Moz / Mlbs
|
Gold
|
|
|
|
Salobo (75%) (10)
|
198.5
|
0.22
|
1.39
|
Stillwater (11)
|
96.2
|
0.43
|
1.32
|
Constancia (50%)
|
28.4
|
0.09
|
0.08
|
Sudbury (70%) (12)
|
2.9
|
0.49
|
0.05
|
San Dimas (25%) (13)
|
1.4
|
3.63
|
0.16
|
Minto
|
6.1
|
0.51
|
0.10
|
Marmato (6.5%) (12,14)
|
0.9
|
2.56
|
0.07
|
Santo Domingo (12,27)
|
31.8
|
0.02
|
0.03
|
Cotabambas (25%) (16,25)
|
151.3
|
0.17
|
0.84
|
Toroparu (10%) (16,17)
|
12.9
|
0.76
|
0.32
|
Kutcho (16,17)
|
8.8
|
0.25
|
0.07
|
Brewery Creek (26)
|
1.3
|
0.87
|
0.04
|
Metates Royalty (18)
|
0.3
|
0.39
|
0.003
|
Total Gold
|
|
|
4.46
|
Silver
|
|
|
|
Peñasquito (25%) (10)
|
37.7
|
26.4
|
32.0
|
Constancia
|
56.7
|
2.9
|
5.3
|
Antamina (33.75%) (12,19)
|
|
|
|
Copper
|
219.7
|
9.0
|
63.6
|
Copper-Zinc
|
104.2
|
16.0
|
53.6
|
Neves-Corvo
|
|
|
|
Copper
|
12.6
|
33.2
|
13.5
|
Zinc
|
3.7
|
63.0
|
7.4
|
Zinkgruvan
|
|
|
|
Zinc
|
19.0
|
82.0
|
50.0
|
Copper
|
0.2
|
35.0
|
0.3
|
Yauliyacu (20)
|
13.4
|
246.9
|
106.8
|
Aljustrel (21)
|
15.7
|
46.2
|
23.3
|
San Dimas (25%) (13)
|
1.4
|
340.7
|
15.1
|
Cozamin (50%) (12,22)
|
|
|
|
Copper
|
2.0
|
40.9
|
2.6
|
Zinc
|
2.6
|
37.5
|
3.2
|
Rosemont (23)
|
68.7
|
1.7
|
3.7
|
Pascua-Lama (25%)
|
3.8
|
17.8
|
2.2
|
Keno Hill (25%)
|
|
|
|
Underground
|
0.4
|
454.6
|
6.1
|
Los Filos
|
98.2
|
6.1
|
19.4
|
Stratoni
|
1.1
|
188.0
|
6.9
|
Minto
|
6.1
|
4.9
|
1.0
|
Marmato (12,14)
|
13.1
|
4.4
|
1.9
|
Loma de La Plata (12.5%)
|
0.2
|
76.0
|
0.4
|
Cotabambas (16,25)
|
605.3
|
2.3
|
45.4
|
Toroparu (50%) (15,16)
|
58.7
|
0.1
|
0.1
|
Kutcho (16,17)
|
8.8
|
20.6
|
5.8
|
Metates Royalty (18)
|
0.3
|
9.5
|
0.1
|
Total Silver
|
|
|
469.5
|
Palladium
|
|
|
|
Stillwater (4.5%) (11)
|
1.0
|
12.1
|
0.37
|
Total Palladium
|
|
|
0.37
|
Cobalt
|
|
|
|
Voisey's Bay (42.4%) (12,24)
|
2.5
|
0.14
|
7.6
|
Total Cobalt
|
|
|
7.6
|
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 and palladium, percent (“%”) for cobalt,
millions of ounces (“Moz”) for gold, silver and palladium 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, Stratoni mine,
Stillwater mines, Keno Hill mines, Aljustrel mines, Santo Domingo 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, 2020 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 Brewery Creek project are reported as of May 31, 2020.
|
c. |
Mineral Resources for the Cotabambas project are reported as of June 20, 2013.
|
d. |
Mineral Resources and Mineral Reserves for the Cozamin mine are reported as of October 31, 2020.
|
e. |
Mineral Resources for Keno Hill’s Elsa Tailings project are reported as of April 22, 2010, Bellekeno mine Indicated Mineral Resources as of September 30, 2013, Mineral Resources for the
Lucky Queen, Flame & Moth and Onek mines as of March 29, 2017 and Bermingham mine as of March 28, 2019. Mineral Reserves are reported as of March 28, 2019.
|
f. |
Mineral Resources for the Kutcho project are reported as of September 8, 2020 and Mineral Reserves are reported as of June 15, 2017.
|
g. |
Mineral Resources for the Loma de La Plata project are reported as of May 20, 2009.
|
h. |
Mineral Resources and Mineral Reserves for the Los Filos mine are reported as of October 31, 2018.
|
i. |
Mineral Resources and Mineral Reserves for the Neves-Corvo and Zinkgruvan mines are reported as of June 30, 2020.
|
j. |
Mineral Resources and Mineral Reserves for the Marmato mine are reported as of March 17, 2020.
|
k. |
Mineral Resources and Mineral Reserves for the Metates royalty are reported as of April 29, 2016.
|
l. |
Mineral Resources and Mineral Reserves for the Minto mine are reported as of December 31, 2018.
|
m. |
Mineral Resources and Mineral Reserves for the Rosemont project are reported as of March 30, 2017.
|
n. |
Mineral Resources for the Santo Domingo project are reported as of February 13, 2020 and Mineral Reserves as of November 14, 2018.
|
o. |
Mineral Resources and Mineral Reserves for the Stratoni mine are reported as of September 30, 2020.
|
p. |
Mineral Resources for the Toroparu project are reported as of September 20, 2018 and Mineral Reserves are reported as of March 31, 2013.
|
7. |
Process recoveries are the average percentage of gold, silver, palladium 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 - $3.08 per pound copper, $1.08 per pound zinc, $8.70 per pound molybdenum and $17.39 per ounce silver.
|
c. |
Constancia mine - $1,375 per ounce gold, $17.00 per ounce silver, $3.10 per pound copper and $11.00 per pound molybdenum.
|
d. |
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.
|
e. |
Keno Hill mines - $1,300 per ounce gold, $18.50 per ounce silver, $1.00 per pound lead and $1.15 per pound zinc.
|
f. |
Kutcho project – 1.5% copper cut-off for the Main deposit and 1.0% copper cut-off for the Esso deposit, both assuming $2.75 per pound copper, $1.10 per pound zinc, $1,250 per ounce gold
and $17.00 per ounce silver.
|
g. |
Los Filos mine - $1,200 per ounce gold and $4.39 per ounce silver.
|
h. |
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 MDZ, all
assuming $1,400 per ounce gold.
|
i. |
Metates royalty – 0.34 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $19.20 per ounce silver.
|
j. |
Minto mine – 1.2% copper cut-off assuming $300 per ounce gold, $3.90 per ounce silver and $2.50 per pound copper.
|
k. |
Neves-Corvo mine – 1.34% copper equivalent cut-off for the copper Mineral Reserves and 5.34% zinc equivalent 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.
|
l. |
Peñasquito mine - $1,200 per ounce gold, $17.00 per ounce silver, $0.90 per pound lead and $1.15 per pound zinc.
|
m. |
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.
|
n. |
Salobo mine – 0.253% copper equivalent cut-off assuming $1,290 per ounce gold and $3.18 per pound copper.
|
o. |
San Dimas mine – $1,700 per ounce gold and $17.50 per ounce silver.
|
p. |
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.
|
q. |
Stillwater mines - combined platinum and palladium cut-off of 6.8 g/t.
|
|
r. |
Stratoni mine – $273.40 per tonne NSR cut-off assuming $16.00 per ounce silver, $0.91 per pound lead and $1.00 per pound zinc.
|
s. |
Sudbury mines - $1,300 per ounce gold, $8.16 per pound nickel, $3.18 per pound copper, $1,155 per ounce platinum, $1,093 per ounce palladium and $22.68 per pound cobalt.
|
t. |
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.
|
u. |
Voisey’s Bay mines:
|
i. |
Ovoid and SE Extension – Cdn $20.56 per tonne cut-off assuming $6.80 per pound nickel, $3.08 per pound copper and $29.48 per pound cobalt.
|
ii. |
Discovery Hill - $29.52 per tonne cut-off assuming $8.16 per pound nickel, $3.18 per pound copper and $22.68 per pound cobalt.
|
iii. |
Reid Brook Division 1 - $225.00 per tonne cut-off assuming $6.35 per pound nickel, $2.90 per pound copper and $20.41 per pound cobalt.
|
iv. |
Reid Brook Divisions 2-4 - $275.00 per tonne cut-off assuming $9.71 per pound nickel, $3.40 per pound copper and $11.52 per pound cobalt.Eastern Deeps Mineral Reserves - $175.00 per
tonne cut-off assuming $6.35 per pound nickel, $2.90 per pound copper and $20.41 per pound cobalt.
|
v. |
Yauliyacu mine - $17.39 per ounce silver, $3.08 per pound copper, and $1.08 per pound zinc.
|
w. |
Zinkgruvan mine – 6.1% zinc equivalent cut-off for the zinc Mineral Reserve and 1.4% copper 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.
|
x. |
777 mine – $1,766.67 per ounce gold, $20.67 per ounce silver, $2.90 per pound copper and $1.04 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, $10.54 per pound molybdenum and $20.82 per ounce silver.
|
c. |
Brewery Creek project – 0.37 g/t gold cut-off assuming $1,500 per ounce gold.
|
d. |
Constancia mine – $1,375 per ounce gold, $17.00 per ounce silver, $3.10 per pound copper and $11.00 per pound molybdenum.
|
e. |
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.
|
f. |
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.
|
g. |
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.
|
h. |
Kutcho project – 1.0% copper equivalent cut-off for the Main and Sumac deposits and 0.9% copper equivalent cut-off for Esso, all assuming $3.25 per pound copper, $1.25 per pound zinc,
$1,550 per ounce gold and $20.00 per ounce silver.
|
i. |
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.
|
j. |
Los Filos mine - $1,400 per ounce gold and $4.39 per ounce silver.
|
k. |
Marmato mine – 1.9 grams per tonne gold cut-off for the Upper Mine and 1.3 grams per tonne gold cut-off for the MDZ and Transition Zone, all assuming $1,500 per ounce gold.
|
l. |
Metates royalty – 0.34 grams per tonne gold equivalent cut-off assuming $1,200 per ounce gold and $19.20 per ounce silver.
|
m. |
Minto mine – 0.5% copper cut-off for Open Pit and 1.0% copper cut-off for Underground.
|
n. |
Neves-Corvo mine – 1.0% copper cut-off for the copper Mineral Resource and 4.5% zinc cut-off for the zinc Mineral Resource.
|
o. |
Pascua-Lama project – $1,500 per ounce gold, $18.75 per ounce silver and $3.50 per pound copper.
|
p. |
Peñasquito mine - $1,400 per ounce gold, $20.00 per ounce silver, $1.10 per pound lead and $1.40 per pound zinc.
|
q. |
Rosemont project – $5.70 per ton NSR cut-off assuming $18.00 per ounce silver, $3.15 per pound copper and $11.00 per pound molybdenum.
|
r. |
Salobo mine – 0.253% copper equivalent cut-off assuming $1,290 per ounce gold and $3.18 per pound copper.
|
s. |
San Dimas mine – $1,750 per ounce gold and $18.50 per ounce silver.
|
t. |
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.
|
u. |
Stillwater mines – geologic boundaries for Inferred Mineral Resources at both the Stillwater mine and East Boulder mine.
|
v. |
Stratoni mine – Geologically constrained to massive sulfide contacts.
|
w. |
Sudbury mines - $1,300 per ounce gold, $8.16 per pound nickel, $3.18 per pound copper, $1,155 per ounce platinum, $1,093 per ounce palladium and $22.68 per pound cobalt.
|
x. |
Toroparu project – 0.30 grams per tonne gold cut-off assuming $1,350 per ounce gold and $3.00 per pound copper.
|
y. |
Voisey’s Bay mines:
|
i. |
Reid Brook Divisions 2-4 - $275.00 per tonne cut-off assuming $9.71 per pound nickel, $3.40 per pound copper and $11.52 per pound cobalt.
|
ii. |
Discovery Hill - $29.52 per tonne assuming $8.16 per pound nickel, $3.18 per pound copper and $22.68 per pound cobalt.
|
z. |
Yauliyacu mine – $20.82 per ounce silver, $3.30 per pound copper, and $1.18 per pound zinc.
|
aa. |
Zinkgruvan mine – 4.5% zinc cut-off for the zinc Mineral Resource and 1.0% copper cut-off for the copper Mineral Resource.
|
bb. |
777 mine – $1,766.67 per ounce gold, $20.67 per ounce silver, $2.90 per pound copper and $1.04 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. |
Peñasquito – Newmont’s December 31, 2020 Resources and Reserves press release and
|
b. |
Salobo – The Company has filed a technical report for the Salobo Mine, which is available on SEDAR at www.sedar.com
|
11. |
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) / (1/3.5 + 1) and Au = (Pd + Pt) x 0.0238
|
b. |
East Boulder mine: Pd = (Pt + Pd) / (1/3.6 + 1) and Au = (Pd + Pt) x 0.0323
|
12. |
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, Sudbury gold interest and Voisey’s Bay cobalt interest have been constrained to the production expected for the various contracts.
|
13. |
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.
|
14. |
The Marmato purchase agreement provides that Caldas will deliver 6.5% of the gold production until 190 thousand ounces are delivered and 3.25% 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 6.5% / 3.25% basis for gold and 100% / 50% basis for silver.
|
15. |
The Company’s agreement with Gold X 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.
|
16. |
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.
|
17. |
The Company’s agreement with Kutcho Copper is an Early Deposit agreement, whereby the Company will be entitled to purchase 100% of the gold and silver production from the Kutcho project
until 51,000 ounces of gold and 5.6 million ounces of silver have been delivered, after which both streams will decrease to 66.67% for the remaining life of mine. Attributable reserves and resources have been calculated on the 100% / 66.67%
basis.
|
18. |
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.
|
19. |
The Antamina silver purchase agreement in respect to the Antamina mine (November 3, 2015) provides that Glencore will deliver 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.
|
20. |
The Yauliyacu mine silver purchase agreement provides that per annum Wheaton will purchase an amount equal to 100% of the first 1.5 million ounces of silver for which an offtaker payment
is due or occurs, and 50% of any excess.
|
21. |
The Company only has the rights to silver contained in concentrates containing less than 15% copper at the Aljustrel mine.
|
22. |
The Cozamin silver purchase agreement provides that Capstone will deliver 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.
|
23. |
The Rosemont mine Mineral Resources and Mineral Reserves do not include the Oxide material.
|
24. |
The Voisey’s Bay cobalt purchase agreement 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.
|
25. |
The Company’s agreement 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.
|
26. |
The Company’s agreement with Golden Predator 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%. Golden Predator 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.
|
27. |
The Santo Domingo gold purchase agreement provides that Capstone will deliver 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.
|
28. |
Precious metals and cobalt are by-product metals at all of the Mining Operations, other than gold at the Marmato mine, silver at the Keno Hill mines and the Loma de La Plata zone of the
Navidad project, gold at the Toroparu 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 successful negotiation and entering into of definitive documentation by the Company with Rio2, payment by the Company of US$50 million to Rio2 and the satisfaction of
each party's obligations in accordance with the Fenix PMPA, the receipt by the Company of gold production in respect of the Fenix Gold Project;
|
• |
the future price of commodities;
|
• |
the impact of epidemics (including the COVID-19 pandemic), including the potential heightening of other risks;
|
• |
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 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;
|
• |
the costs of future production;
|
• |
the estimation of produced but not yet delivered ounces;
|
• |
statements as to the impact of the listing of the Company’s common shares on the LSE;
|
• |
any statements as to future dividends;
|
• |
the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs, future payments by the Company in accordance with PMPAs, including any
acceleration of payments;
|
• |
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 for years subsequent to 2010;
|
• |
audits for taxation years subsequent to 2015;
|
• |
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 future sales of Common Shares under, the amount of net proceeds from and the use of the net proceeds from, the ATM Program;
|
• |
assessments of the impact and resolution of various legal and tax matters, including but not limited to the outstanding class action and audits.
|
• |
risks associated with the completion of documentation and diligence for the Fenix PMPA with Rio2 and the satisfaction of each party's obligations in accordance with the
terms of the Fenix PMPA with Rio2;
|
• |
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 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 for years subsequent to 2010 (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 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 and 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 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;
|
• |
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;
|
• |
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 Annual Information Form available on SEDAR at www.sedar.com, and
in Wheaton’s Form 40-F for the year ended December 31, 2020 and Form 6-Ks filed March 11, 2021 and August 12, 2021, all on file with the U.S. Securities and Exchange Commission in Washington, D.C. and available on EDGAR (the "Disclosure”).
|
• |
the completion of documentation and diligence in respect of the Fenix PMPA with Rio2, the payment of US$50 million to Rio2 and the satisfaction of each party's
obligations in accordance with the terms of the Fenix PMPA with Rio2;
|
• |
that there will be no material adverse change in the market price of commodities;
|
• |
that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic (including the COVID-19 pandemic);
|
• |
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 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 sale of Common Shares under the ATM Program will not have a significant impact on the market price of the Company’s Common Shares and that the net proceeds of
sales of Common Shares, if any, will be used as anticipated;
|
• |
that the trading of the Company’s 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 ongoing class action litigation and 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 for years subsequent to 2010 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 for years subsequent to 2010);
|
• |
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
September 30 |
Nine Months Ended
September 30 |
||||||||
(US dollars and shares in thousands, except per share amounts - unaudited)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Sales
|
6
|
$
|
268,957
|
$
|
307,268
|
$
|
923,468
|
$
|
810,012
|
Cost of sales
|
|
|
|
|
|||||
Cost of sales, excluding depletion
|
$
|
62,529
|
$
|
70,119
|
$
|
219,757
|
$
|
202,238
|
|
Depletion
|
10
|
|
54,976
|
|
60,601
|
|
195,458
|
|
184,104
|
Total cost of sales
|
|
$
|
117,505
|
$
|
130,720
|
$
|
415,215
|
$
|
386,342
|
Gross margin
|
$
|
151,452
|
$
|
176,548
|
$
|
508,253
|
$
|
423,670
|
|
General and administrative expenses
|
7
|
|
13,595
|
|
21,326
|
|
44,030
|
|
56,307
|
Earnings from operations
|
$
|
137,857
|
$
|
155,222
|
$
|
464,223
|
$
|
367,363
|
|
Other (income) expense
|
8
|
|
1,108
|
|
2,624
|
|
(2,194)
|
|
(1,340)
|
Earnings before finance costs and income taxes
|
$
|
136,749
|
$
|
152,598
|
$
|
466,417
|
$
|
368,703
|
|
Finance costs
|
16.3
|
|
1,379
|
|
2,766
|
|
4,309
|
|
14,519
|
Earnings before income taxes
|
$
|
135,370
|
$
|
149,832
|
$
|
462,108
|
$
|
354,184
|
|
Income tax (expense) recovery
|
22
|
|
(433)
|
|
43
|
|
955
|
|
(3,601)
|
Net earnings
|
|
$
|
134,937
|
$
|
149,875
|
$
|
463,063
|
$
|
350,583
|
Basic earnings per share
|
$
|
0.300
|
$
|
0.334
|
$
|
1.029
|
$
|
0.782
|
|
Diluted earnings per share
|
$
|
0.299
|
$
|
0.332
|
$
|
1.026
|
$
|
0.779
|
|
Weighted average number of shares outstanding
|
|
|
|
|
|||||
Basic
|
20
|
|
450,326
|
449,125
|
|
449,977
|
448,484
|
||
Diluted
|
20
|
|
451,717
|
|
451,999
|
|
451,369
|
|
449,892
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(US dollars in thousands - unaudited)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Net earnings
|
|
$
|
134,937
|
$
|
149,875
|
$
|
463,063
|
$
|
350,583
|
Other comprehensive income
|
|
|
|
|
|||||
Items that will not be reclassified to net earnings
|
|
|
|
|
|||||
(Loss) gain on LTIs¹ - common shares held
|
14
|
$
|
(18,468)
|
$
|
16,879
|
$
|
(21,011)
|
$
|
(31,744)
|
Income tax recovery (expense) related to LTIs¹
|
22
|
|
627
|
|
(9)
|
|
(1,989)
|
|
5,145
|
Total other comprehensive (loss) income
|
|
$
|
(17,841)
|
$
|
16,870
|
$
|
(23,000)
|
$
|
(26,599)
|
Total comprehensive income
|
|
$
|
117,096
|
$
|
166,745
|
$
|
440,063
|
$
|
323,984
|
1) |
LTIs = long-term investments – common shares held.
|
Note
|
As at
September 30 |
As at
December 31 |
|||
(US dollars in thousands - unaudited)
|
2021
|
2020
|
|||
Assets
|
|
|
|||
Current assets
|
|
|
|||
Cash and cash equivalents
|
21
|
$
|
372,450
|
$
|
192,683
|
Accounts receivable
|
9
|
|
10,392
|
5,883
|
|
Other
|
23
|
|
9,874
|
|
3,265
|
Total current assets
|
|
$
|
392,716
|
$
|
201,831
|
Non-current assets
|
|
|
|||
Mineral stream interests
|
10
|
$
|
5,505,663
|
$
|
5,488,391
|
Early deposit mineral stream interests
|
11
|
|
34,741
|
33,241
|
|
Mineral royalty interest
|
12
|
|
6,606
|
3,047
|
|
Long-term equity investments
|
14
|
|
71,741
|
199,878
|
|
Convertible notes receivable
|
13
|
|
15,489
|
11,353
|
|
Property, plant and equipment
|
15
|
|
5,790
|
6,289
|
|
Other
|
24
|
|
13,994
|
|
13,242
|
Total non-current assets
|
|
$
|
5,654,024
|
$
|
5,755,441
|
Total assets
|
|
$
|
6,046,740
|
$
|
5,957,272
|
Liabilities
|
|
|
|||
Current liabilities
|
|
|
|||
Accounts payable and accrued liabilities
|
$
|
14,514
|
$
|
13,023
|
|
Current portion of performance share units
|
19.1
|
|
13,348
|
17,297
|
|
Current portion of lease liabilities
|
16.2
|
|
801
|
773
|
|
Other
|
|
|
154
|
|
76
|
Total current liabilities
|
|
$
|
28,817
|
$
|
31,169
|
Non-current liabilities
|
|
|
|||
Bank debt
|
16.1
|
$
|
-
|
$
|
195,000
|
Lease liabilities
|
16.2
|
|
2,258
|
2,864
|
|
Deferred income taxes
|
22
|
|
276
|
214
|
|
Performance share units
|
19.1
|
|
8,667
|
11,784
|
|
Pension liability
|
|
|
2,369
|
|
1,670
|
Total non-current liabilities
|
|
$
|
13,570
|
$
|
211,532
|
Total liabilities
|
|
$
|
42,387
|
$
|
242,701
|
Shareholders' equity
|
|
|
|||
Issued capital
|
17
|
$
|
3,685,032
|
$
|
3,646,291
|
Reserves
|
18
|
|
50,769
|
126,882
|
|
Retained earnings
|
|
|
2,268,552
|
|
1,941,398
|
Total shareholders' equity
|
|
$
|
6,004,353
|
$
|
5,714,571
|
Total liabilities and shareholders' equity
|
|
$
|
6,046,740
|
$
|
5,957,272
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(US dollars in thousands - unaudited)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Operating activities
|
|
|
|
|
|||||
Net earnings
|
$
|
134,937
|
$
|
149,875
|
$
|
463,063
|
$
|
350,583
|
|
Adjustments for
|
|
|
|
|
|||||
Depreciation and depletion
|
|
55,445
|
61,050
|
|
196,869
|
185,542
|
|||
Interest expense
|
16.3
|
|
30
|
1,795
|
|
324
|
11,289
|
||
Equity settled stock based compensation
|
|
1,315
|
1,319
|
|
3,946
|
4,127
|
|||
Performance share units
|
19.1
|
|
2,824
|
9,325
|
|
(7,128)
|
11,734
|
||
Pension expense
|
|
294
|
265
|
|
710
|
533
|
|||
Income tax expense (recovery)
|
22
|
|
433
|
(43)
|
|
(955)
|
3,601
|
||
Loss (gain) on fair value adjustment of share purchase warrants held
|
8
|
|
1,246
|
1,107
|
|
2,392
|
845
|
||
Fair value (gain) loss on convertible note receivable
|
13
|
|
490
|
1,095
|
|
(4,136)
|
(1,382)
|
||
Investment income recognized in net earnings
|
|
(178)
|
(23)
|
|
(275)
|
(178)
|
|||
Other
|
|
(9)
|
567
|
|
685
|
513
|
|||
Change in non-cash working capital
|
21
|
|
4,434
|
|
3,656
|
|
(5,341)
|
|
2,771
|
Cash generated from operations before income taxes and interest
|
$
|
201,261
|
$
|
229,988
|
$
|
650,154
|
$
|
569,978
|
|
Income taxes recovered (paid)
|
|
-
|
-
|
|
(51)
|
70
|
|||
Interest paid
|
|
(31)
|
(1,912)
|
|
(401)
|
(12,745)
|
|||
Interest received
|
|
|
57
|
|
23
|
|
154
|
|
177
|
Cash generated from operating activities
|
$
|
201,287
|
$
|
228,099
|
$
|
649,856
|
$
|
557,480
|
|
Financing activities
|
|
|
|
|
|||||
Bank debt repaid
|
16.1
|
$
|
-
|
$
|
(153,000)
|
$
|
(195,000)
|
$
|
(387,000)
|
Credit facility extension fees
|
16.1
|
|
(54)
|
(6)
|
|
(1,727)
|
(1,373)
|
||
Share purchase options exercised
|
18.2
|
|
183
|
2,763
|
|
5,719
|
20,779
|
||
Lease payments
|
16.2
|
|
(196)
|
(132)
|
|
(583)
|
(438)
|
||
Dividends paid
|
17.2, 21
|
|
(57,235)
|
|
(37,309)
|
|
(160,784)
|
|
(120,312)
|
Cash (used for) generated from financing activities
|
$
|
(57,302)
|
$
|
(187,684)
|
$
|
(352,375)
|
$
|
(488,344)
|
|
Investing activities
|
|
|
|
|
|||||
Mineral stream interests
|
10
|
$
|
(1,055)
|
$
|
(40)
|
$
|
(216,845)
|
$
|
(40)
|
Early deposit mineral stream interests
|
11
|
|
(750)
|
(750)
|
|
(1,500)
|
(1,500)
|
||
Mineral royalty interest
|
12
|
|
-
|
-
|
|
(3,571)
|
-
|
||
Acquisition of long-term investments
|
14
|
|
(5,076)
|
(10,671)
|
|
(7,453)
|
(10,671)
|
||
Proceeds on disposal of long-term investments
|
14
|
|
-
|
49,454
|
|
112,188
|
49,577
|
||
Dividends received
|
|
110
|
-
|
|
110
|
-
|
|||
Other
|
|
|
(171)
|
|
(363)
|
|
(691)
|
|
(691)
|
Cash generated from (used for) investing activities
|
$
|
(6,942)
|
$
|
37,630
|
$
|
(117,762)
|
$
|
36,675
|
|
Effect of exchange rate changes on cash and cash equivalents
|
$
|
(39)
|
$
|
25
|
$
|
48
|
$
|
37
|
|
Increase in cash and cash equivalents
|
$
|
137,004
|
$
|
78,070
|
$
|
179,767
|
$
|
105,848
|
|
Cash and cash equivalents, beginning of period
|
|
235,446
|
|
131,764
|
|
192,683
|
|
103,986
|
|
Cash and cash equivalents, end of period
|
21
|
$
|
372,450
|
$
|
209,834
|
$
|
372,450
|
$
|
209,834
|
|
|
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, 2020
|
447,771
|
$
|
3,599,203
|
$
|
83,077
|
$
|
24,010
|
$
|
6,405
|
$
|
47,209
|
$
|
160,701
|
$
|
1,566,016
|
$
|
5,325,920
|
Total comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
200,708
|
$
|
200,708
|
OCI 1
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(43,469)
|
|
(43,469)
|
|
-
|
|
(43,469)
|
Total comprehensive income (loss)
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(43,469)
|
$
|
(43,469)
|
$
|
200,708
|
$
|
157,239
|
Income tax recovery (expense)
|
|
$
|
(1,639)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1,639)
|
SBC 1 expense
|
|
|
-
|
-
|
1,153
|
1,655
|
-
|
|
2,808
|
|
-
|
|
2,808
|
||||
Options 1 exercised
|
861
|
|
19,118
|
-
|
(3,501)
|
-
|
-
|
|
(3,501)
|
|
-
|
|
15,617
|
||||
RSUs 1 released
|
128
|
|
2,857
|
-
|
-
|
(2,857)
|
-
|
|
(2,857)
|
|
-
|
|
-
|
||||
Dividends (Note 17.2)
|
185
|
|
6,673
|
-
|
-
|
-
|
-
|
|
-
|
|
(89,676)
|
|
(83,003)
|
||||
Realized gain on disposal of LTIs ¹ (Note 18.4)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(26)
|
|
(26)
|
|
26
|
|
-
|
At June 30, 2020
|
448,945
|
$
|
3,626,212
|
$
|
83,077
|
$
|
21,662
|
$
|
5,203
|
$
|
3,714
|
$
|
113,656
|
$
|
1,677,074
|
$
|
5,416,942
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
149,875
|
$
|
149,875
|
OCI 1
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16,870
|
|
16,870
|
|
-
|
|
16,870
|
Total comprehensive income
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
16,870
|
$
|
16,870
|
$
|
149,875
|
$
|
166,745
|
Income tax recovery (expense)
|
|
$
|
(92)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(92)
|
SBC 1 expense
|
|
|
-
|
-
|
509
|
810
|
-
|
|
1,319
|
|
-
|
|
1,319
|
||||
Options 1 exercised
|
189
|
|
4,526
|
-
|
(794)
|
-
|
-
|
|
(794)
|
|
-
|
|
3,732
|
||||
Dividends (Note 17.2)
|
145
|
|
7,588
|
-
|
-
|
-
|
-
|
|
-
|
|
(44,896)
|
|
(37,308)
|
||||
Realized gain on disposal of LTIs ¹ (Note 18.4)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(17,498)
|
|
(17,498)
|
|
17,498
|
|
-
|
At September 30, 2020
|
449,279
|
$
|
3,638,234
|
$
|
83,077
|
$
|
21,377
|
$
|
6,013
|
$
|
3,086
|
$
|
113,553
|
$
|
1,799,551
|
$
|
5,551,338
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
157,221
|
$
|
157,221
|
OCI 1
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
50,589
|
|
50,589
|
|
-
|
|
50,589
|
Total comprehensive income
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
50,589
|
$
|
50,589
|
$
|
157,221
|
$
|
207,810
|
Income tax recovery (expense)
|
|
$
|
911
|
$
|
-
|
$
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
$
|
911
|
|
SBC 1 expense
|
|
|
-
|
-
|
503
|
802
|
-
|
|
1,305
|
|
-
|
|
1,305
|
||||
Options 1 exercised
|
7
|
|
132
|
-
|
(25)
|
-
|
-
|
|
(25)
|
|
-
|
|
107
|
||||
Dividends
|
172
|
|
7,014
|
-
|
-
|
-
|
-
|
|
-
|
|
(53,914)
|
|
(46,900)
|
||||
Realized gain on disposal of LTIs ¹ (Note 18.4)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(38,540)
|
|
(38,540)
|
|
38,540
|
|
-
|
At December 31, 2020
|
449,458
|
$
|
3,646,291
|
$
|
83,077
|
$
|
21,855
|
$
|
6,815
|
$
|
15,135
|
$
|
126,882
|
$
|
1,941,398
|
$
|
5,714,571
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
328,126
|
$
|
328,126
|
OCI 1
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,159)
|
|
(5,159)
|
|
-
|
|
(5,159)
|
Total comprehensive income
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(5,159)
|
$
|
(5,159)
|
$
|
328,126
|
$
|
322,967
|
Income tax recovery (expense)
|
|
$
|
1,106
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,106
|
SBC 1 expense
|
|
|
-
|
-
|
1,030
|
1,602
|
-
|
|
2,632
|
|
-
|
|
2,632
|
||||
Options 1 exercised
|
290
|
|
6,632
|
-
|
(1,096)
|
-
|
-
|
|
(1,096)
|
|
-
|
|
5,536
|
||||
RSUs 1 released
|
117
|
|
2,815
|
-
|
-
|
(2,815)
|
-
|
|
(2,815)
|
|
-
|
|
-
|
||||
Dividends (Note 17.2)
|
406
|
|
17,938
|
-
|
-
|
-
|
-
|
|
-
|
|
(121,487)
|
|
(103,549)
|
||||
Realized gain on disposal of LTIs ¹ (Note 18.4)
|
|
|
-
|
-
|
-
|
-
|
(53,119)
|
|
(53,119)
|
|
53,119
|
|
-
|
||||
At June 30, 2021
|
450,271
|
$
|
3,674,782
|
$
|
83,077
|
$
|
21,789
|
$
|
5,602
|
$
|
(43,143)
|
$
|
67,325
|
$
|
2,201,156
|
$
|
5,943,263
|
Total comprehensive income
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
134,937
|
$
|
134,937
|
OCI 1
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(17,841)
|
|
(17,841)
|
|
-
|
|
(17,841)
|
Total comprehensive income
|
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(17,841)
|
$
|
(17,841)
|
$
|
134,937
|
$
|
117,096
|
Income tax recovery (expense)
|
|
$
|
(269)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(269)
|
SBC 1 expense
|
|
|
-
|
-
|
518
|
797
|
-
|
|
1,315
|
|
-
|
|
1,315
|
||||
Options 1 exercised
|
7
|
|
213
|
-
|
(30)
|
-
|
-
|
|
(30)
|
|
-
|
|
183
|
||||
Dividends (Note 17.2)
|
229
|
|
10,306
|
-
|
-
|
-
|
-
|
|
-
|
|
(67,541)
|
|
(57,235)
|
||||
At September 30, 2021
|
450,507
|
$
|
3,685,032
|
$
|
83,077
|
$
|
22,277
|
$
|
6,399
|
$
|
(60,984)
|
$
|
50,769
|
$
|
2,268,552
|
$
|
6,004,353
|
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 utilised and a
deferred tax liability for all deductible and taxable temporary differences associated with right-of-use assets and lease liabilities; and
|
• |
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. |
Functional Currency
|
• |
The entities’ revenues are denominated in US dollars;
|
• |
The entities’ cash cost of sales are denominated in US dollars;
|
• |
The majority of the entities’ cash is held in US dollars; and
|
• |
The Company generally seeks to raise capital in US dollars.
|
4.7. |
Income Taxes
|
4.8. |
Leases
|
5. |
Financial Instruments
|
5.1. |
Capital Risk Management
|
5.2. |
Categories of Financial Assets and Liabilities
|
Note
|
September 30
|
December 31
|
||||
(in thousands)
|
2021
|
2020
|
||||
Financial assets
|
|
|
||||
Financial assets mandatorily measured at FVTNE 1
|
|
|
||||
Cash and cash equivalents
|
21
|
$
|
372,450
|
$
|
192,683
|
|
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
6, 9
|
|
2,456
|
5,429
|
||
Long-term investments - warrants held
|
|
1,246
|
3,637
|
|||
Convertible notes receivable
|
13
|
|
15,489
|
11,353
|
||
Investments in equity instruments designated at FVTOCI 1
|
|
|
||||
Long-term investments - common shares held
|
14
|
|
70,495
|
196,241
|
||
Financial assets measured at amortized cost
|
|
|
||||
Non-revolving term loan
|
23
|
|
812
|
813
|
||
Trade receivables from sales of cobalt
|
9
|
|
7,921
|
-
|
||
Other accounts receivable
|
9
|
|
15
|
454
|
||
Total financial assets
|
|
$
|
470,884
|
$
|
410,610
|
|
Financial liabilities
|
|
|
||||
Financial liabilities at amortized cost
|
|
|
||||
Accounts payable and accrued liabilities
|
|
14,514
|
13,023
|
|||
Bank debt
|
16
|
|
-
|
195,000
|
||
Pension liability
|
|
2,369
|
1,670
|
|||
Total financial liabilities
|
|
$
|
16,883
|
$
|
209,693
|
1) |
FVTNE refers to Fair Value Through Net Earnings, FVTOCI refers to Fair Value Through Other Comprehensive Income
|
5.3. |
Credit Risk
|
September 30
|
December 31
|
||||
(in thousands)
|
Note
|
2021
|
2020
|
||
Cash and cash equivalents
|
21
|
$
|
372,450
|
$
|
192,683
|
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
9
|
|
2,456
|
5,429
|
|
Trade receivables from sales of cobalt
|
9
|
|
7,921
|
-
|
|
Other accounts receivables
|
9
|
|
15
|
454
|
|
Non-revolving term loan
|
23
|
|
812
|
813
|
|
Convertible notes receivable
|
13
|
|
15,489
|
11,353
|
|
Maximum exposure to credit risk related to financial assets
|
|
$
|
399,143
|
$
|
210,732
|
5.4. |
Liquidity Risk
|
As at September 30, 2021
|
||||||||||||||
(in thousands)
|
2021
|
2022 - 2024
|
2025 - 2026
|
After 2026
|
|
Total
|
||||||||
Non-derivative financial liabilities
|
|
|
|
|
|
|
|
|
||||||
Accounts payable and accrued liabilities
|
$
|
14,514
|
$
|
-
|
$
|
-
|
$
|
-
|
|
$
|
14,514
|
|||
Performance share units 1
|
-
|
22,015
|
-
|
-
|
|
|
22,015
|
|||||||
Pension liability 2
|
2,369
|
-
|
-
|
-
|
|
|
2,369
|
|||||||
Lease liability
|
224
|
2,732
|
312
|
-
|
|
|
3,268
|
|||||||
Total
|
$
|
17,107
|
|
$
|
24,747
|
|
$
|
312
|
|
$
|
-
|
|
$
|
42,166
|
1) |
Assumes a weighted average performance factor of 186% (see Note 19.1).
|
2) |
Any benefits under the SERP will be paid out to the employee over a 10-year period, or at the employee’s election, a shorter period upon the employee’s retirement from the
Company.
|
5.5. |
Currency Risk
|
|
September 30
|
|
December 31
|
|||
(in thousands)
|
|
2021
|
|
2020
|
||
Monetary assets
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
852
|
|
$
|
5,041
|
Accounts receivable
|
|
|
99
|
|
71
|
|
Long-term investments - common shares held
|
|
|
70,071
|
|
195,816
|
|
Long-term investments - warrants held
|
|
|
1,246
|
|
3,637
|
|
Convertible note receivable
|
|
|
15,489
|
|
11,353
|
|
Non-revolving term loan
|
|
|
812
|
|
813
|
|
Other long-term assets
|
|
|
3,517
|
|
|
3,519
|
Total Canadian dollar denominated monetary assets
|
|
$
|
92,086
|
|
$
|
220,250
|
Monetary liabilities
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
|
$
|
7,751
|
|
$
|
8,011
|
Performance share units
|
|
|
17,642
|
|
23,405
|
|
Lease liability
|
|
|
2,034
|
|
2,403
|
|
Pension liability
|
|
|
2,369
|
|
|
1,670
|
Total Canadian dollar denominated monetary liabilities
|
|
$
|
29,796
|
|
$
|
35,489
|
As at September 30, 2021
|
||||
Change in Canadian Dollar
|
||||
(in thousands)
|
10%
Increase |
10%
Decrease |
||
Increase (decrease) in net earnings
|
$
|
(778)
|
$
|
778
|
Increase (decrease) in other comprehensive income
|
|
7,007
|
|
(7,007)
|
Increase (decrease) in total comprehensive income
|
$
|
6,229
|
$
|
(6,229)
|
As at December 31, 2020
|
||||
Change in Canadian Dollar
|
||||
(in thousands)
|
10%
Increase |
10%
Decrease |
||
Increase (decrease) in net earnings
|
$
|
(1,105)
|
$
|
1,105
|
Increase (decrease) in other comprehensive income
|
|
19,582
|
|
(19,582)
|
Increase (decrease) in total comprehensive income
|
$
|
18,477
|
$
|
(18,477)
|
5.6. |
Interest Rate Risk
|
5.7. |
Other Price Risk
|
5.8. |
Fair Value Estimation
|
September 30, 2021
|
|||||||||
(in thousands)
|
Note
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Cash and cash equivalents
|
21
|
$
|
372,450
|
$
|
372,450
|
$
|
-
|
$
|
-
|
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
9
|
|
2,456
|
|
-
|
|
2,456
|
|
-
|
Long-term investments - common shares held
|
14
|
|
70,495
|
|
70,495
|
|
-
|
|
-
|
Long-term investments - warrants held
|
|
1,246
|
|
-
|
|
1,246
|
|
-
|
|
Kutcho Convertible Note
|
13
|
|
15,489
|
|
-
|
|
-
|
|
15,489
|
|
|
$
|
462,136
|
$
|
442,945
|
$
|
3,702
|
$
|
15,489
|
December 31, 2020
|
|||||||||
(in thousands)
|
Note
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||
Cash and cash equivalents
|
21
|
$
|
192,683
|
$
|
192,683
|
$
|
-
|
$
|
-
|
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
9
|
5,429
|
-
|
5,429
|
-
|
||||
Long-term investments - common shares held
|
14
|
196,241
|
196,241
|
-
|
-
|
||||
Long-term investments - warrants held
|
14
|
3,637
|
-
|
3,637
|
-
|
||||
Kutcho Convertible Note
|
13
|
11,353
|
-
|
-
|
11,353
|
||||
|
|
$
|
409,343
|
$
|
388,924
|
$
|
9,066
|
$
|
11,353
|
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
|
As at September 30, 2021
|
||||||||
Change in interest rate
|
Change in volatility
|
|||||||
(in thousands)
|
Increase 1%
|
Decrease 1%
|
Increase 5%
|
Decrease 5%
|
||||
Kutcho Convertible Note
|
$
|
(357)
|
$
|
369
|
$
|
499
|
$
|
(502)
|
6. |
Revenue
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
||||||||
Sales
|
|
|
|
|
|
|
||||||
Gold credit sales
|
$
|
121,416
|
45%
|
$
|
171,734
|
56%
|
$
|
418,734
|
45%
|
$
|
490,528
|
61%
|
Silver
|
|
|
|
|
|
|
||||||
Silver credit sales
|
$
|
110,116
|
41%
|
$
|
98,839
|
32%
|
$
|
375,840
|
41%
|
$
|
230,872
|
28%
|
Concentrate sales
|
|
20,471
|
8%
|
|
24,595
|
8%
|
|
78,084
|
8%
|
|
55,622
|
7%
|
Total silver sales
|
$
|
130,587
|
49%
|
$
|
123,434
|
40%
|
$
|
453,924
|
49%
|
$
|
286,494
|
35%
|
Palladium credit sales
|
$
|
13,834
|
5%
|
$
|
12,100
|
4%
|
$
|
36,932
|
4%
|
$
|
32,990
|
4%
|
Cobalt sales
|
$
|
3,120
|
1%
|
$
|
-
|
0%
|
$
|
13,878
|
2%
|
$
|
-
|
0%
|
Total sales revenue
|
$
|
268,957
|
100%
|
$
|
307,268
|
100%
|
$
|
923,468
|
100%
|
$
|
810,012
|
100%
|
7. |
General and Administrative
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Salaries and benefits
|
|
|
|
|
|||||
Salaries and benefits, excluding PSUs
|
$
|
4,283
|
$
|
4,037
|
$
|
13,626
|
$
|
12,268
|
|
PSUs 1
|
19.1
|
|
2,824
|
|
10,482
|
|
9,800
|
|
23,856
|
Total salaries and benefits
|
$
|
7,107
|
$
|
14,519
|
$
|
23,426
|
$
|
36,124
|
|
Depreciation
|
|
469
|
449
|
|
1,412
|
1,438
|
|||
Donations
|
|
1,428
|
1,745
|
|
3,425
|
4,379
|
|||
Professional fees
|
|
837
|
1,264
|
|
3,390
|
2,603
|
|||
Other
|
|
|
2,439
|
|
2,030
|
|
8,431
|
|
7,636
|
General and administrative before equity settled stock based compensation
|
|
$
|
12,280
|
$
|
20,007
|
$
|
40,084
|
$
|
52,180
|
Equity settled stock based compensation 2
|
|
|
|
|
|||||
Stock options
|
18.2
|
$
|
518
|
$
|
509
|
$
|
1,547
|
$
|
1,662
|
RSUs
|
18.3
|
|
797
|
|
810
|
|
2,399
|
|
2,465
|
Total equity settled stock based compensation
|
|
$
|
1,315
|
$
|
1,319
|
$
|
3,946
|
$
|
4,127
|
Total general and administrative
|
|
$
|
13,595
|
$
|
21,326
|
$
|
44,030
|
$
|
56,307
|
1) |
The PSU accrual related to the anticipated fair value of the PSUs issued uses a weighted average performance factor of 186% during the three and nine months ended
September 30, 2021 as compared to 187% during the comparable periods of 2020.
|
2) |
Equity settled stock based compensation is a non-cash expense.
|
8. |
Other (Income) Expense
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Interest income
|
$
|
(68)
|
$
|
(23)
|
$
|
(165)
|
$
|
(178)
|
|
Dividends received
|
|
(110)
|
-
|
|
(110)
|
-
|
|||
Foreign exchange (gain) loss
|
|
(516)
|
405
|
|
121
|
(816)
|
|||
Net (gain) loss arising on financial assets mandatorily measured at FVTPL ¹
|
|
|
|
|
|||||
(Gain) loss on fair value adjustment of share purchase warrants held
|
|
1,246
|
1,107
|
|
2,392
|
845
|
|||
(Gain) loss on fair value adjustment of convertible notes receivable
|
13
|
|
490
|
1,095
|
|
(4,136)
|
(1,382)
|
||
Other
|
|
|
66
|
|
40
|
|
(296)
|
|
191
|
Total other (income) expense
|
|
$
|
1,108
|
$
|
2,624
|
$
|
(2,194)
|
$
|
(1,340)
|
1) |
FVTPL refers to Fair Value Through Profit or Loss
|
9. |
Accounts Receivable
|
September 30
|
December 31
|
||||
(in thousands)
|
Note
|
2021
|
2020
|
||
Trade receivables from provisional concentrate sales, net of fair value adjustment
|
6
|
$
|
2,456
|
$
|
5,429
|
Trade receivables from sales of cobalt
|
6
|
|
7,921
|
-
|
|
Other accounts receivable
|
|
|
15
|
|
454
|
Total accounts receivable
|
|
$
|
10,392
|
$
|
5,883
|
10. |
Mineral Stream Interests
|
Nine Months Ended September 30, 2021
|
||||||||||||||
Cost
|
Accumulated Depletion & Impairment 1
|
Carrying
Amount Sep 30, 2021 |
||||||||||||
(in thousands)
|
Balance
Jan 1, 2021 |
Additions (Reductions)
|
Balance
Sep 30, 2021 |
Balance
Jan 1, 2021 |
Depletion
|
Balance
Sep 30, 2021 |
||||||||
Gold interests
|
|
|
|
|
|
|
|
|||||||
Salobo
|
$
|
3,059,876
|
$
|
-
|
$
|
3,059,876
|
$
|
(550,532)
|
$
|
(53,777)
|
$
|
(604,309)
|
$
|
2,455,567
|
Sudbury 2
|
623,864
|
-
|
|
623,864
|
|
(302,848)
|
(12,858)
|
|
(315,706)
|
|
308,158
|
|||
Constancia
|
136,058
|
-
|
|
136,058
|
|
(30,489)
|
(3,828)
|
|
(34,317)
|
|
101,741
|
|||
San Dimas
|
220,429
|
-
|
|
220,429
|
|
(38,227)
|
(10,585)
|
|
(48,812)
|
|
171,617
|
|||
Stillwater 3
|
239,352
|
-
|
|
239,352
|
|
(15,042)
|
(3,361)
|
|
(18,403)
|
|
220,949
|
|||
Other 4
|
402,232
|
58,991
|
|
461,223
|
|
(394,706)
|
(1,532)
|
|
(396,238)
|
|
64,985
|
|||
|
$
|
4,681,811
|
$
|
58,991
|
$
|
4,740,802
|
$
|
(1,331,844)
|
$
|
(85,941)
|
$
|
(1,417,785)
|
$
|
3,323,017
|
Silver interests
|
|
|
|
|
|
|
|
|||||||
Peñasquito
|
$
|
524,626
|
$
|
-
|
|
524,626
|
$
|
(174,054)
|
$
|
(22,102)
|
$
|
(196,156)
|
$
|
328,470
|
Antamina
|
900,343
|
-
|
|
900,343
|
|
(273,409)
|
(37,118)
|
|
(310,527)
|
|
589,816
|
|||
Constancia
|
302,948
|
-
|
|
302,948
|
|
(85,904)
|
(8,507)
|
|
(94,411)
|
|
208,537
|
|||
Other 5
|
1,281,228
|
157,729
|
|
1,438,957
|
|
(806,253)
|
(29,908)
|
|
(836,161)
|
|
602,796
|
|||
|
$
|
3,009,145
|
$
|
157,729
|
$
|
3,166,874
|
$
|
(1,339,620)
|
$
|
(97,635)
|
$
|
(1,437,255)
|
$
|
1,729,619
|
Palladium interests
|
|
|
|
|
|
|
|
|||||||
Stillwater 3
|
$
|
263,721
|
$
|
-
|
$
|
263,721
|
$
|
(22,332)
|
$
|
(6,506)
|
$
|
(28,838)
|
$
|
234,883
|
Cobalt interests
|
|
|
|
|
|
|
|
|||||||
Voisey's Bay
|
$
|
393,422
|
$
|
-
|
$
|
393,422
|
$
|
(165,912)
|
$
|
(9,366)
|
$
|
(175,278)
|
$
|
218,144
|
|
$
|
8,348,099
|
$
|
216,720
|
$
|
8,564,819
|
$
|
(2,859,708)
|
$
|
(199,448)
|
$
|
(3,059,156)
|
$
|
5,505,663
|
1) |
Includes cumulative impairment charges to September 30, 2021 as follows: Keno Hill silver interest - $11 million; Pascua-Lama silver interest - $338 million; 777 silver
interest - $64 million; 777 gold interest - $151 million; Sudbury gold interest - $120 million; and Voisey’s Bay cobalt interest - $166 million.
|
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, Rosemont, 777, Marmato and Santo Domingo gold interests.
|
5) |
Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Rosemont, 777, Marmato and Cozamin
silver interests.
|
Year Ended December 31, 2020
|
||||||||||||||
Cost
|
Accumulated Depletion & Impairment 1
|
Carrying
Amount Dec 31, 2020 |
||||||||||||
(in thousands)
|
Balance
Jan 1, 2020 |
Additions (Reductions)
|
Balance
Dec 31, 2020 |
Balance
Jan 1, 2020 |
Depletion
|
Balance
Dec 31, 2020 |
||||||||
Gold interests
|
|
|
|
|
|
|
|
|||||||
Salobo
|
$
|
3,059,876
|
$
|
-
|
$
|
3,059,876
|
$
|
(454,619)
|
$
|
(95,913)
|
$
|
(550,532)
|
$
|
2,509,344
|
Sudbury 2
|
623,864
|
-
|
|
623,864
|
|
(279,821)
|
(23,027)
|
|
(302,848)
|
|
321,016
|
|||
Constancia
|
136,058
|
-
|
|
136,058
|
|
(25,652)
|
(4,837)
|
|
(30,489)
|
|
105,569
|
|||
San Dimas
|
220,429
|
-
|
|
220,429
|
|
(26,062)
|
(12,165)
|
|
(38,227)
|
|
182,202
|
|||
Stillwater 3
|
239,352
|
-
|
|
239,352
|
|
(9,358)
|
(5,684)
|
|
(15,042)
|
|
224,310
|
|||
Other 4
|
402,232
|
-
|
|
402,232
|
|
(389,064)
|
(5,642)
|
|
(394,706)
|
|
7,526
|
|||
|
$
|
4,681,811
|
$
|
-
|
$
|
4,681,811
|
$
|
(1,184,576)
|
$
|
(147,268)
|
$
|
(1,331,844)
|
$
|
3,349,967
|
Silver interests
|
|
|
|
|
|
|
|
|||||||
Peñasquito
|
$
|
524,626
|
$
|
-
|
$
|
524,626
|
$
|
(149,924)
|
$
|
(24,130)
|
$
|
(174,054)
|
$
|
350,572
|
Antamina
|
900,343
|
-
|
|
900,343
|
|
(231,533)
|
(41,876)
|
|
(273,409)
|
|
626,934
|
|||
Constancia
|
302,948
|
-
|
|
302,948
|
|
(74,761)
|
(11,143)
|
|
(85,904)
|
|
217,044
|
|||
Other 5
|
1,283,054
|
(1,826)
|
|
1,281,228
|
|
(795,361)
|
(10,892)
|
|
(806,253)
|
|
474,975
|
|||
|
$
|
3,010,971
|
$
|
(1,826)
|
$
|
3,009,145
|
$
|
(1,251,579)
|
$
|
(88,041)
|
$
|
(1,339,620)
|
$
|
1,669,525
|
Palladium interests
|
|
|
|
|
|
|
|
|||||||
Stillwater 3
|
$
|
263,721
|
$
|
-
|
$
|
263,721
|
$
|
(13,752)
|
$
|
(8,580)
|
$
|
(22,332)
|
$
|
241,389
|
Cobalt interests
|
|
|
|
|
|
|
|
|||||||
Voisey's Bay
|
$
|
393,422
|
$
|
-
|
$
|
393,422
|
$
|
(165,912)
|
$
|
-
|
$
|
(165,912)
|
$
|
227,510
|
|
$
|
8,349,925
|
$
|
(1,826)
|
$
|
8,348,099
|
$
|
(2,615,819)
|
$
|
(243,889)
|
$
|
(2,859,708)
|
$
|
5,488,391
|
1) |
Includes cumulative impairment charges to December 31, 2020 as follows: Keno Hill silver interest - $11 million; Pascua-Lama silver interest - $338 million; 777 silver
interest - $64 million; 777 gold interest - $151 million; Sudbury gold interest - $120 million; and Voisey’s Bay cobalt interest - $166 million.
|
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, Rosemont, 777, and Marmato gold interests.
|
5) |
Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Rosemont, Cozamin,
Marmato and 777 silver interests. During the third quarter of 2020, Wheaton agreed to modify the Keno Hill PMPA as it relates to the delivery payment per ounce
of silver in exchange for 2 million common share purchase warrants from Alexco. The fair value of these warrants have been reflected as a reduction to the cost base of the Keno Hill silver interest.
|
September 30, 2021
|
December 31, 2020
|
|||||||||||
(in thousands)
|
Depletable
|
Non-Depletable
|
Total
|
Depletable
|
Non-Depletable
|
Total
|
||||||
Gold interests
|
|
|
|
|
|
|
||||||
Salobo
|
$
|
2,063,094
|
$
|
392,473
|
$
|
2,455,567
|
$
|
2,085,359
|
$
|
423,985
|
$
|
2,509,344
|
Sudbury 1
|
|
245,097
|
|
63,061
|
|
308,158
|
269,834
|
51,182
|
321,016
|
|||
Constancia
|
|
94,759
|
|
6,982
|
|
101,741
|
97,539
|
8,030
|
105,569
|
|||
San Dimas
|
|
65,468
|
|
106,149
|
|
171,617
|
73,514
|
108,688
|
182,202
|
|||
Stillwater 2
|
|
198,017
|
|
22,932
|
|
220,949
|
199,616
|
24,694
|
224,310
|
|||
Other 3
|
|
28,329
|
|
36,656
|
|
64,985
|
|
7,526
|
|
-
|
|
7,526
|
|
$
|
2,694,764
|
$
|
628,253
|
$
|
3,323,017
|
$
|
2,733,388
|
$
|
616,579
|
$
|
3,349,967
|
Silver interests
|
|
|
|
|
|
|
||||||
Peñasquito
|
$
|
244,172
|
$
|
84,298
|
$
|
328,470
|
$
|
258,267
|
$
|
92,305
|
$
|
350,572
|
Antamina
|
|
242,741
|
|
347,075
|
|
589,816
|
279,859
|
347,075
|
626,934
|
|||
Constancia
|
|
197,017
|
|
11,520
|
|
208,537
|
202,475
|
14,569
|
217,044
|
|||
Other 4
|
|
282,218
|
|
320,578
|
|
602,796
|
|
98,383
|
|
376,592
|
|
474,975
|
|
$
|
966,148
|
$
|
763,471
|
$
|
1,729,619
|
$
|
838,984
|
$
|
830,541
|
$
|
1,669,525
|
Palladium interests
|
|
|
|
|
|
|
||||||
Stillwater 2
|
$
|
224,913
|
$
|
9,970
|
$
|
234,883
|
$
|
231,747
|
$
|
9,642
|
$
|
241,389
|
Cobalt interests
|
|
|
|
|
|
|
||||||
Voisey's Bay
|
$
|
194,536
|
$
|
23,608
|
$
|
218,144
|
$
|
203,436
|
$
|
24,074
|
$
|
227,510
|
|
$
|
4,080,361
|
$
|
1,425,302
|
$
|
5,505,663
|
$
|
4,007,555
|
$
|
1,480,836
|
$
|
5,488,391
|
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, Rosemont, 777, Marmato and Santo Domingo gold interests.
|
4) |
Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Rosemont, Cozamin, Marmato and 777
silver interests.
|
11. |
Early Deposit Mineral Stream Interests
|
|
Mine
Owner |
|
|
|
|
|
|
|
Attributable
Production to be Purchased |
|
|
Early Deposit Mineral Stream Interests
|
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
|
Gran Colombia
|
Guyana
|
$
|
15,500
|
$
|
138,000
|
$
|
153,500
|
10%
|
50%
|
Life of Mine
|
Cotabambas
|
Panoro
|
Peru
|
11,500
|
128,500
|
140,000
|
25% ³
|
100% ³
|
Life of Mine
|
|||
Kutcho
|
Kutcho
|
Canada
|
|
7,000
|
|
58,000
|
|
65,000
|
100% ⁴
|
100% ⁴
|
Life of Mine
|
|
|
|
$
|
34,000
|
$
|
324,500
|
$
|
358,500
|
|
|
|
1) |
Expressed in thousands of United States dollars; excludes closing costs and capitalized interest, where applicable.
|
2) |
Please refer to Note 25 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.
|
4) |
Once 51,000 ounces of gold and 5.6 million ounces of silver have been delivered to Wheaton, the stream will decrease to 66.67% of gold and silver production for the life
of mine.
|
12. |
Mineral Royalty Interest
|
13. |
Convertible Notes Receivable
|
• |
20% of the outstanding amount if pre-paid on or after 36 months until 60 months; and
|
• |
15% of the outstanding amount if pre-paid on or after 60 months until maturity.
|
Three Months Ended September 30, 2021
|
|||||
(in thousands)
|
Fair Value at
Jun 30, 2021 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2021 |
Kutcho
|
$ 15,979
|
$ -
|
$ -
|
$ (490)
|
$ 15,489
|
Three Months Ended September 30, 2020
|
|||||
(in thousands)
|
Fair Value at
Jun 30, 2020 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2020 |
Kutcho
|
$ 10,836
|
$ -
|
$ -
|
$ -
|
$ 10,836
|
Gold X
|
13,497
|
-
|
(12,402)
|
(1,095)
|
-
|
Total
|
$ 24,333
|
$ -
|
$ (12,402)
|
$ (1,095)
|
$ 10,836
|
Nine Months Ended September 30, 2021
|
|||||
(in thousands)
|
Fair Value at
Dec 31, 2020 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2021 |
Kutcho
|
$ 11,353
|
$ -
|
$ -
|
$ 4,136
|
$ 15,489
|
Nine Months Ended September 30, 2020
|
|||||
(in thousands)
|
Fair Value at
Dec 31, 2019 |
Amount Advanced
|
Value Converted into Shares
|
Fair Value Adjustment Gains (Losses)
|
Fair Value at
Sep 30, 2020 |
Kutcho
|
$ 11,837
|
$ -
|
$ -
|
$ (1,001)
|
$ 10,836
|
Gold X
|
10,019
|
-
|
(12,402)
|
2,383
|
-
|
Total
|
$ 21,856
|
$ -
|
$ (12,402)
|
$ 1,382
|
$ 10,836
|
14. |
Long-Term Equity Investments
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
||
Common shares held
|
$
|
70,495
|
$
|
196,241
|
Warrants held
|
|
1,246
|
|
3,637
|
Total long-term equity investments
|
$
|
71,741
|
$
|
199,878
|
Three Months Ended September 30, 2021
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Jun 30, 2021 |
Cost of Additions
|
Proceeds of Disposition
|
Fair Value Adjustment Gains (Losses) 1
|
Fair Value at
Sep 30, 2021 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
10.67%
|
$ 17,338
|
$ -
|
$ -
|
$ (6,407)
|
$ 10,931
|
$ -
|
Sabina
|
11,700
|
3.29%
|
16,520
|
-
|
-
|
(3,113)
|
13,407
|
-
|
Other
|
|
|
50,029
|
5,076
|
-
|
(8,948)
|
46,157
|
-
|
Total
|
|
|
$ 83,887
|
$ 5,076
|
$ -
|
$ (18,468)
|
$ 70,495
|
$ -
|
1) |
Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”).
|
Three Months Ended September 30, 2020
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Jun 30, 2020 |
Cost of Additions 1
|
Proceeds of Disposition 2
|
Fair Value Adjustment Gains (Losses) 3
|
Fair Value at
Sep 30, 2020 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
11.80%
|
$ 23,555
|
$ -
|
$ -
|
$ 7,769
|
$ 31,324
|
$ -
|
Sabina
|
11,700
|
3.59%
|
16,741
|
-
|
-
|
5,889
|
22,630
|
-
|
First Majestic
|
17,240
|
8.00%
|
201,384
|
-
|
(37,748)
|
(16)
|
163,620
|
16,089
|
Other
|
|
|
20,691
|
22,211
|
(11,706)
|
3,237
|
34,433
|
4,140
|
Total
|
|
|
$ 262,371
|
$ 22,211
|
$ (49,454)
|
$ 16,879
|
$ 252,007
|
$ 20,229
|
1) |
Includes 4,467,317 common shares of Gold X received upon the conversion of the Gold X Convertible Note see Note 13 for more information.
|
2) |
Disposals of shares classified as Other were initiated as the holdings were no longer considered to have strategic value.
|
3) |
Fair Value Gains (Losses) are reflected as a component of OCI.
|
Nine Months Ended September 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
Sep 30, 2021 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
10.67%
|
$ 32,609
|
$ -
|
$ -
|
$ (21,678)
|
$ 10,931
|
$ -
|
Sabina
|
11,700
|
3.29%
|
30,233
|
-
|
-
|
(16,826)
|
13,407
|
-
|
First Majestic
|
-
|
0.00%
|
95,984
|
-
|
(112,188)
|
16,204
|
-
|
60,530
|
Other
|
|
|
37,415
|
7,453
|
-
|
1,289
|
46,157
|
-
|
Total
|
|
|
$ 196,241
|
$ 7,453
|
$ (112,188)
|
$ (21,011)
|
$ 70,495
|
$ 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.
|
Nine Months Ended September 30, 2020
|
||||||||
(in thousands)
|
Shares
Owned (000's) |
% of
Outstanding Shares Owned |
Fair Value at
Dec 31, 2019 |
Cost of Additions 1
|
Proceeds of Disposition 2
|
Fair Value Adjustment Gains (Losses) 3
|
Fair Value at
Sep 30, 2020 |
Realized Gain on Disposal
|
Bear Creek
|
13,264
|
11.80%
|
$ 27,983
|
$ -
|
$ -
|
$ 3,341
|
$ 31,324
|
$ -
|
Sabina
|
11,700
|
3.59%
|
17,296
|
-
|
-
|
5,334
|
22,630
|
-
|
First Majestic
|
17,240
|
8.00%
|
248,137
|
-
|
(37,748)
|
(46,769)
|
163,620
|
16,089
|
Other
|
|
|
16,341
|
23,571
|
(11,829)
|
6,350
|
34,433
|
4,170
|
Total
|
|
|
$ 309,757
|
$ 23,571
|
$ (49,577)
|
$ (31,744)
|
$ 252,007
|
$ 20,259
|
1) |
Includes 4,467,317 common shares of Gold X received upon the conversion of the Gold X Convertible Note see Note 13 for more information.
|
2) |
Disposals of shares classified as Other were initiated as the holdings were no longer considered to have strategic value.
|
3) |
Fair Value Gains (Losses) are reflected as a component of OCI.
|
15. |
Property, Plant and Equipment
|
September 30, 2021
|
||||||||
(in thousands)
|
Leasehold Improvements
|
Right of Use Assets - Property
|
Other
|
Total
|
||||
Cost
|
|
|
|
|
|
|
|
|
Balance - January 1, 2021
|
$
|
4,382
|
$
|
4,793
|
$
|
4,131
|
$
|
13,306
|
Additions
|
|
-
|
|
-
|
|
626
|
|
626
|
Disposals
|
|
-
|
|
-
|
|
(5)
|
|
(5)
|
Balance - September 30, 2021
|
$
|
4,382
|
$
|
4,793
|
$
|
4,752
|
$
|
13,927
|
Accumulated Depreciation
|
|
|
|
|
|
|
|
|
Balance - January 1, 2021
|
$
|
(2,906)
|
$
|
(1,444)
|
$
|
(2,667)
|
$
|
(7,017)
|
Disposals
|
|
-
|
|
-
|
|
5
|
|
5
|
Depreciation
|
|
(240)
|
|
(563)
|
|
(322)
|
|
(1,125)
|
Balance - September 30, 2021
|
$
|
(3,146)
|
$
|
(2,007)
|
$
|
(2,984)
|
$
|
(8,137)
|
Net book value - September 30, 2021
|
$
|
1,236
|
$
|
2,786
|
$
|
1,768
|
$
|
5,790
|
December 31, 2020
|
||||||||
(in thousands)
|
Leasehold Improvements
|
Right of Use Assets - Property
|
Other
|
Total
|
||||
Cost
|
|
|
|
|
|
|
|
|
Balance - January 1, 2020
|
$
|
4,380
|
$
|
4,738
|
$
|
3,836
|
$
|
12,954
|
Additions
|
|
2
|
|
55
|
|
429
|
|
486
|
Disposals
|
|
-
|
|
-
|
|
(134)
|
|
(134)
|
Balance - December 31, 2020
|
$
|
4,382
|
$
|
4,793
|
$
|
4,131
|
$
|
13,306
|
Accumulated Depreciation
|
|
|
|
|
|
|
|
|
Balance - January 1, 2020
|
$
|
(2,518)
|
$
|
(704)
|
$
|
(2,421)
|
$
|
(5,643)
|
Disposals
|
|
-
|
|
-
|
|
134
|
|
134
|
Depreciation
|
|
(388)
|
|
(740)
|
|
(380)
|
|
(1,508)
|
Balance - December 31, 2020
|
$
|
(2,906)
|
$
|
(1,444)
|
$
|
(2,667)
|
$
|
(7,017)
|
Net book value - December 31, 2020
|
$
|
1,476
|
$
|
3,349
|
$
|
1,464
|
$
|
6,289
|
16. |
Credit Facilities
|
16.1. |
Bank Debt
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
||
Current portion
|
$
|
-
|
$
|
-
|
Long-term portion
|
|
-
|
195,000
|
|
Gross bank debt outstanding 1
|
$
|
-
|
$
|
195,000
|
1) |
There is $6 million unamortized debt issue costs associated with the Revolving Facility which have been recorded as a long-term asset under the classification Other (see
Note 24).
|
16.2. |
Lease Liabilities
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
||
Current portion
|
$
|
801
|
$
|
773
|
Long-term portion
|
|
2,258
|
|
2,864
|
Total lease liabilities
|
$
|
3,059
|
$
|
3,637
|
September 30
|
||
(in thousands)
|
2021
|
|
Not later than 1 year
|
$
|
900
|
Later than 1 year and not later than 5 years
|
2,368
|
|
Later than 5 years
|
|
-
|
Total lease liabilities
|
$
|
3,268
|
16.3. |
Finance Costs
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
Note
|
2021
|
2020
|
2021
|
2020
|
||||
Interest Expense During Period
|
|
|
|
|
|||||
Average principal outstanding during period
|
$
|
-
|
$
|
567,056
|
$
|
26,007
|
$
|
686,659
|
|
Average effective interest rate during period
|
16.1
|
|
0.00%
|
|
1.24%
|
|
1.17%
|
|
2.17%
|
Total interest expense incurred during period
|
$
|
-
|
$
|
1,759
|
$
|
229
|
$
|
11,191
|
|
Costs related to undrawn credit facilities
|
16.1
|
|
1,349
|
971
|
|
3,985
|
3,230
|
||
Interest expense - lease liabilities
|
16.2
|
|
30
|
36
|
|
95
|
98
|
||
Total finance costs
|
|
$
|
1,379
|
$
|
2,766
|
$
|
4,309
|
$
|
14,519
|
17. |
Issued Capital
|
Note
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
|||
Issued capital
|
|
|
|||
Share capital issued and outstanding: 450,507,312 common shares (December 31, 2020: 449,458,394 common shares)
|
17.1
|
$
|
3,685,032
|
$
|
3,646,291
|
17.1. |
Shares Issued
|
|
Number
of Shares |
Weighted
Average Price |
At January 1, 2020
|
447,771,433
|
|
Share purchase options exercised 1
|
860,955
|
Cdn$25.63
|
Restricted share units released 1
|
128,405
|
Cdn$0.00
|
Dividend reinvestment plan 2
|
185,453
|
US$23.81
|
At June 30, 2020
|
448,946,246
|
|
Share purchase options exercised 1
|
189,408
|
Cdn$26.08
|
Dividend reinvestment plan 2
|
144,822
|
US$52.39
|
At September 30, 2020
|
449,280,476
|
|
Share purchase options exercised 1
|
6,000
|
Cdn$22.96
|
Dividend reinvestment plan 2
|
171,918
|
US$40.80
|
At December 31, 2020
|
449,458,394
|
|
Share purchase options exercised 1
|
289,745
|
Cdn$23.80
|
Restricted share units released 1
|
116,880
|
Cdn$0.00
|
Dividend reinvestment plan 2
|
406,470
|
US$44.13
|
At June 30, 2021
|
450,271,489
|
|
Share purchase options exercised 1
|
7,095
|
Cdn$32.62
|
Dividend reinvestment plan 2
|
228,728
|
US$45.06
|
At September 30, 2021
|
450,507,312
|
|
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 1%.
|
17.2. |
Dividends Declared
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||||||||||
(in thousands, except per share amounts)
|
2021
|
2020
|
2021
|
2020
|
||||||||
Dividends declared per share
|
$
|
0.15
|
|
$
|
0.10
|
$
|
0.42
|
|
$
|
0.30
|
||
Average number of shares eligible for dividend
|
|
450,274
|
|
|
448,963
|
|
|
450,065
|
|
|
448,575
|
|
Total dividends paid
|
$
|
67,541
|
|
$
|
44,896
|
|
$
|
189,027
|
|
$
|
134,572
|
|
Paid as follows:
|
|
|
|
|
|
|
||||||
Cash
|
$
|
57,235
|
85%
|
$
|
37,308
|
83%
|
$
|
160,783
|
85%
|
$
|
120,311
|
89%
|
DRIP 1
|
|
10,306
|
15%
|
|
7,588
|
17%
|
|
28,244
|
15%
|
|
14,261
|
11%
|
Total dividends paid
|
$
|
67,541
|
100%
|
$
|
44,896
|
100%
|
$
|
189,027
|
100%
|
$
|
134,572
|
100%
|
Shares issued under the DRIP
|
229
|
|
145
|
635
|
|
330
|
1) |
The Company has implemented a DRIP whereby shareholders can elect to have dividends reinvested directly into additional Wheaton common shares.
|
2) |
As at September 30, 2021, cumulative dividends of $1,456 million have been declared and paid by the Company.
|
18. |
Reserves
|
Note
|
September 30
|
December 31
|
|||
(in thousands)
|
2021
|
2020
|
|||
Reserves
|
|
|
|||
Share purchase warrants
|
18.1
|
$
|
83,077
|
$
|
83,077
|
Share purchase options
|
18.2
|
|
22,277
|
21,855
|
|
Restricted share units
|
18.3
|
|
6,399
|
6,815
|
|
Long-term investment revaluation reserve, net of tax
|
18.4
|
|
(60,984)
|
|
15,135
|
Total reserves
|
|
$
|
50,769
|
$
|
126,882
|
18.1. |
Share Purchase Warrants
|
|
Number of Warrants
|
Weighted Average Exercise Price
|
Exchange Ratio
|
Share Purchase Warrants Reserve
|
|
Warrants outstanding
|
10,000,000
|
$43.75
|
1.00
|
$
|
83,077
|
18.2. |
Share Purchase Options
|
Nine Months Ended
September 30 |
||
|
2021
|
2020
|
Black-Scholes weighted average assumptions
|
|
|
Grant date share price and exercise price
|
Cdn$49.86
|
Cdn$33.47
|
Expected dividend yield
|
1.53%
|
1.78%
|
Expected volatility
|
35%
|
30%
|
Risk-free interest rate
|
0.51%
|
0.52%
|
Expected option life, in years
|
3.0
|
2.5
|
Weighted average fair value per option granted
|
Cdn$10.69
|
Cdn$5.57
|
Number of options issued during the period
|
317,560
|
451,110
|
Total fair value of options issued (000's)
|
$ 2,720
|
$ 1,807
|
|
Number of
Options Outstanding |
Weighted
Average Exercise Price |
At January 1, 2020
|
2,394,490
|
Cdn$27.08
|
Granted (fair value - $2 million or Cdn$5.57 per option)
|
451,110
|
33.47
|
Exercised
|
(860,955)
|
25.63
|
At June 30, 2020
|
1,984,645
|
Cdn$29.40
|
Exercised
|
(189,408)
|
26.08
|
At September 30, 2020
|
1,795,237
|
Cdn$29.68
|
Exercised
|
(6,000)
|
22.96
|
Forfeited
|
(2,420)
|
32.01
|
At December 31, 2020
|
1,786,817
|
Cdn$29.54
|
Granted (fair value - $3 million or Cdn$10.69 per option)
|
317,560
|
49.86
|
Exercised
|
(289,745)
|
23.80
|
At June 30, 2021
|
1,814,632
|
Cdn$33.92
|
Exercised
|
(7,095)
|
32.62
|
At September 30, 2021
|
1,807,537
|
Cdn$34.05
|
18.3. |
Restricted Share Units (“RSUs”)
|
|
Number of
RSUs Outstanding |
Weighted
Average Intrinsic Value at Date Granted |
At January 1, 2020
|
366,323
|
$21.67
|
Granted (fair value - $3 million)
|
132,960
|
24.26
|
Released
|
(128,405)
|
22.25
|
At September 30, 2020
|
370,878
|
$22.40
|
Forfeited
|
(620)
|
24.11
|
At December 31, 2020
|
370,258
|
$22.40
|
Granted (fair value - $4 million)
|
96,680
|
39.95
|
Released
|
(116,880)
|
24.09
|
At September 30, 2021
|
350,058
|
$26.69
|
18.4. |
Long-Term Investment Revaluation Reserve
|
(in thousands)
|
|
Change in Fair Value
|
Deferred Tax Recovery (Expense)
|
Total
|
At January 1, 2020
|
$ 57,062
|
$ (9,853)
|
$ 47,209
|
|
Unrealized gain (loss) on LTIs 1
|
(48,623)
|
5,154
|
(43,469)
|
|
Reallocate reserve to retained earnings upon disposal of LTIs 1
|
(30)
|
4
|
(26)
|
|
At June 30, 2020
|
|
$ 8,409
|
$ (4,695)
|
$ 3,714
|
Unrealized gain (loss) on LTIs 1
|
16,879
|
(9)
|
16,870
|
|
Reallocate reserve to retained earnings upon disposal of LTIs 1
|
(20,229)
|
2,731
|
(17,498)
|
|
At September 30, 2020
|
|
$ 5,059
|
$ (1,973)
|
$ 3,086
|
Unrealized gain (loss) on LTIs 1
|
57,600
|
(7,011)
|
50,589
|
|
Reallocate reserve to retained earnings upon disposal of LTIs 1
|
(40,556)
|
2,016
|
(38,540)
|
|
At December 31, 2020
|
|
$ 22,103
|
$ (6,968)
|
$ 15,135
|
Unrealized gain (loss) on LTIs 1
|
(2,543)
|
(2,616)
|
(5,159)
|
|
Reallocate reserve to retained earnings upon disposal of LTIs 1
|
(60,530)
|
7,411
|
(53,119)
|
|
At June 30, 2021
|
|
$ (40,970)
|
$ (2,173)
|
$ (43,143)
|
Unrealized gain (loss) on LTIs 1
|
(18,468)
|
627
|
(17,841)
|
|
At September 30, 2021
|
|
$ (59,438)
|
$ (1,546)
|
$ (60,984)
|
1) |
LTIs refers to long-term investments in common shares held.
|
19. |
Stock Based Compensation
|
19.1. |
Performance Share Units (“PSUs”)
|
(in thousands, except for number of PSUs outstanding)
|
Number of PSUs
Outstanding |
PSU accrual liability
|
|
At January 1, 2020
|
604,692
|
$
|
19,069
|
Granted
|
193,830
|
-
|
|
Accrual related to the fair value of the PSUs outstanding
|
-
|
13,374
|
|
Foreign exchange adjustment
|
-
|
(908)
|
|
Paid
|
(193,716)
|
|
(10,965)
|
At June 30, 2020
|
604,806
|
$
|
20,570
|
Accrual related to the fair value of the PSUs outstanding
|
-
|
10,487
|
|
Foreign exchange adjustment
|
-
|
360
|
|
Paid
|
(10,426)
|
(1,157)
|
|
Forfeited
|
(1,230)
|
|
(5)
|
At September 30, 2020
|
593,150
|
$
|
30,255
|
Accrual related to the fair value of the PSUs outstanding
|
-
|
(2,336)
|
|
Foreign exchange adjustment
|
-
|
|
1,161
|
At December 31, 2020
|
593,150
|
$
|
29,080
|
Granted
|
134,180
|
-
|
|
Accrual related to the fair value of the PSUs outstanding
|
-
|
6,977
|
|
Foreign exchange adjustment
|
-
|
492
|
|
Paid
|
(213,820)
|
|
(16,929)
|
At June 30, 2021
|
513,510
|
$
|
19,620
|
Accrual related to the fair value of the PSUs outstanding
|
-
|
2,824
|
|
Foreign exchange adjustment
|
-
|
(429)
|
|
At September 30, 2021
|
513,510
|
$
|
22,015
|
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
Sep 30, 2021 |
PSU
Liability at Sep 30, 2021 |
2019
|
2022
|
186,730
|
$42.61
|
200%
|
84%
|
13,348
|
2020
|
2023
|
192,600
|
$42.04
|
177%
|
51%
|
7,387
|
2021
|
2024
|
134,180
|
$41.56
|
127%
|
18%
|
1,280
|
|
|
513,510
|
|
|
|
$ 22,015
|
20. |
Earnings per Share (“EPS”) and Diluted Earnings per Share (“Diluted EPS”)
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Basic weighted average number of shares outstanding
|
450,326
|
449,125
|
449,977
|
448,484
|
Effect of dilutive securities
|
|
|
||
Share purchase options
|
1,041
|
1,106
|
1,034
|
1,034
|
Share purchase warrants
|
-
|
1,397
|
-
|
-
|
Restricted share units
|
350
|
371
|
358
|
374
|
Diluted weighted average number of shares outstanding
|
451,717
|
451,999
|
451,369
|
449,892
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
|||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
Share purchase warrants
|
10,000
|
-
|
10,000
|
10,000
|
Total
|
10,000
|
-
|
10,000
|
10,000
|
21. |
Supplemental Cash Flow Information
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
2021
|
2020
|
2021
|
2020
|
|||||
Change in non-cash working capital
|
|
|
|
|
|||||
Accounts receivable
|
$
|
2,572
|
$
|
(4,104)
|
$
|
(4,498)
|
$
|
(2,610)
|
|
Accounts payable and accrued liabilities
|
|
2,796
|
7,408
|
|
1,776
|
6,666
|
|||
Other
|
|
(934)
|
|
352
|
|
(2,619)
|
|
(1,285)
|
|
Total change in non-cash working capital
|
$
|
4,434
|
$
|
3,656
|
$
|
(5,341)
|
$
|
2,771
|
September 30
|
December 31
|
||||
(in thousands)
|
Note
|
2021
|
2020
|
||
Cash and cash equivalents comprised of:
|
|
|
|||
Cash
|
$
|
167,473
|
$
|
192,683
|
|
Cash equivalents
|
|
|
204,977
|
|
-
|
Total cash and cash equivalents
|
|
$
|
372,450
|
$
|
192,683
|
22. |
Income Taxes
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Current income tax expense (recovery)
|
|
$
|
34
|
$
|
(2,693)
|
$
|
(6,105)
|
$
|
(2,606)
|
Deferred income tax expense (recovery) related to:
|
|
|
|
|
|||||
Origination and reversal of temporary differences
|
$
|
4,006
|
$
|
6,371
|
$
|
17,942
|
$
|
11,245
|
|
Write down (reversal of write down) or recognition of prior period temporary differences
|
|
|
(3,607)
|
|
(3,721)
|
|
(12,792)
|
|
(5,038)
|
Total deferred income tax expense (recovery)
|
|
$
|
399
|
$
|
2,650
|
$
|
5,150
|
$
|
6,207
|
Income tax expense (recovery) recognized in net earnings
|
|
$
|
433
|
$
|
(43)
|
$
|
(955)
|
$
|
3,601
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Income tax expense (recovery) related to LTIs - common shares held
|
|
$
|
(627)
|
$
|
9
|
$
|
1,989
|
$
|
(5,145)
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Income tax expense (recovery) recognized in equity
|
|
$
|
269
|
$
|
92
|
$
|
(837)
|
$
|
1,731
|
Three Months Ended
September 30 |
Nine Months Ended
September 30 |
||||||||
(in thousands)
|
|
2021
|
2020
|
2021
|
2020
|
||||
Earnings before income taxes
|
$
|
135,370
|
$
|
149,832
|
$
|
462,108
|
$
|
354,184
|
|
Canadian federal and provincial income tax rates
|
|
|
27.00%
|
|
27.00%
|
|
27.00%
|
|
27.00%
|
Income tax expense (recovery) based on above rates
|
$
|
36,550
|
$
|
40,455
|
$
|
124,769
|
$
|
95,630
|
|
Non-deductible stock based compensation and other
|
|
693
|
1,121
|
|
1,586
|
2,589
|
|||
Differences in tax rates in foreign jurisdictions
|
|
(34,457)
|
(39,465)
|
|
(116,818)
|
(96,717)
|
|||
Current period unrecognized temporary differences
|
|
1,254
|
1,567
|
|
2,300
|
7,137
|
|||
Write down (reversal of write down) or recognition of prior period temporary differences
|
|
|
(3,607)
|
|
(3,721)
|
|
(12,792)
|
|
(5,038)
|
Income tax expense (recovery)
|
|
$
|
433
|
$
|
(43)
|
$
|
(955)
|
$
|
3,601
|
Nine Months Ended September 30, 2021
|
||||||||||
Opening Balance
|
Recovery (Expense) Recognized In Net Earnings
|
Recovery (Expense) Recognized In OCI
|
Recovery (Expense) Recognized In Shareholders' Equity
|
Closing
Balance |
||||||
Recognized deferred income tax assets and liabilities
|
||||||||||
Deferred tax assets
|
|
|
|
|
|
|
|
|
|
|
Non-capital loss carryforward 1
|
$
|
5,894
|
$
|
(836)
|
$
|
-
|
$
|
(334)
|
$
|
4,724
|
Capital loss carryforward
|
|
761
|
|
-
|
|
(761)
|
|
-
|
|
-
|
Other 2
|
|
5,500
|
|
(3,411)
|
|
-
|
|
-
|
|
2,089
|
Deferred tax liabilities
|
|
|
|
|
|
|
|
|
|
|
Interest capitalized for accounting
|
|
(87)
|
|
-
|
|
-
|
|
-
|
|
(87)
|
Debt financing fees 3
|
|
(728)
|
|
(8)
|
|
-
|
|
-
|
|
(736)
|
Unrealized gains on long-term investments
|
|
(7,808)
|
|
35
|
|
6,183
|
|
-
|
|
(1,590)
|
Mineral stream interests 4
|
|
(3,532)
|
|
(868)
|
|
-
|
|
-
|
|
(4,400)
|
Foreign withholding tax
|
|
(214)
|
|
(62)
|
|
-
|
|
-
|
|
(276)
|
Total
|
$
|
(214)
|
$
|
(5,150)
|
$
|
5,422
|
$
|
(334)
|
$
|
(276)
|
1) |
As at September 30, 2021, the Company had recognized the tax effect on $17 million of non-capital losses against deferred tax liabilities.
|
2) |
Other includes capital assets, 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 basis as described in Note 4.2.
|
Year Ended December 31, 2020
|
||||||||||
Opening Balance
|
Recovery (Expense) Recognized In Net Earnings
|
Recovery (Expense) Recognized In OCI
|
Recovery (Expense) Recognized In Shareholders' Equity
|
Closing
Balance |
||||||
Recognized deferred income tax assets and liabilities
|
||||||||||
Deferred tax assets
|
||||||||||
Non-capital loss carryforward
|
$
|
8,756
|
$
|
(2,077)
|
$
|
-
|
$
|
(785)
|
$
|
5,894
|
Capital loss carryforward
|
8,953
|
(4,733)
|
(3,459)
|
-
|
761
|
|||||
Other
|
694
|
4,806
|
-
|
-
|
5,500
|
|||||
Deferred tax liabilities
|
||||||||||
Interest capitalized for accounting
|
(87)
|
-
|
-
|
-
|
(87)
|
|||||
Debt and share financing fees
|
(711)
|
18
|
-
|
(35)
|
(728)
|
|||||
Unrealized gains on long-term investments
|
(14,073)
|
(79)
|
6,344
|
-
|
(7,808)
|
|||||
Mineral stream interests
|
(3,532)
|
-
|
-
|
-
|
(3,532)
|
|||||
Foreign withholding tax
|
|
(148)
|
|
(66)
|
-
|
|
-
|
|
(214)
|
|
Total
|
$
|
(148)
|
$
|
(2,131)
|
$
|
2,885
|
$
|
(820)
|
$
|
(214)
|
September 30
|
December 31
|
||||
(in thousands)
|
|
2021
|
2020
|
||
Non-capital loss carryforward 1
|
$
|
23,408
|
$
|
26,313
|
|
Mineral stream interests
|
|
85,116
|
96,646
|
||
Other
|
|
5,422
|
2,296
|
||
Kutcho Convertible Note
|
|
1,023
|
1,330
|
||
Unrealized losses on long-term investments
|
|
10,238
|
5,125
|
||
Total
|
|
$
|
125,207
|
$
|
131,710
|
1) |
As at September 30, 2021, the Company had not recognized the tax effect on $87 million of non-capital losses as a deferred tax asset.
|
23. |
Other Current Assets
|
September 30
|
December 31
|
||||
(in thousands)
|
Note
|
2021
|
2020
|
||
Non-revolving term loan
|
$
|
812
|
$
|
813
|
|
Prepaid expenses
|
|
2,891
|
2,388
|
||
Cobalt inventory
|
|
6,108
|
-
|
||
Other
|
|
|
63
|
|
64
|
Total other current assets
|
|
$
|
9,874
|
$
|
3,265
|
24. |
Other Long-Term Assets
|
September 30
|
December 31
|
||||
(in thousands)
|
Note
|
2021
|
2020
|
||
Intangible assets
|
$
|
2,748
|
$
|
3,036
|
|
Debt issue costs - Revolving Facility
|
16.1
|
|
5,950
|
5,202
|
|
Other
|
|
|
5,296
|
|
5,004
|
Total other long-term assets
|
|
$
|
13,994
|
$
|
13,242
|
25. |
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
|
Gold
|
Silver
|
Palladium
|
Cobalt
|
|||||||
Peñasquito
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
$
|
4.29
|
|
n/a
|
|
n/a
|
Life of Mine
|
24-Jul-07
|
Constancia
|
50%
|
100%
|
0%
|
0%
|
$
|
412 ²
|
$
|
6.08 ²
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Aug-12
|
Salobo
|
75%
|
0%
|
0%
|
0%
|
$
|
412
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
28-Feb-13
|
Sudbury
|
70%
|
0%
|
0%
|
0%
|
$
|
400
|
|
n/a
|
|
n/a
|
|
n/a
|
20 years
|
28-Feb-13
|
Antamina
|
0%
|
33.75%
|
0%
|
0%
|
|
n/a
|
|
20%
|
|
n/a
|
|
n/a
|
Life of Mine
|
3-Nov-15
|
San Dimas
|
variable ³
|
0% ³
|
0%
|
0%
|
$
|
618
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-May-18
|
Stillwater
|
100%
|
0%
|
4.5% ⁴
|
0%
|
|
18% ⁵
|
|
n/a
|
|
18% ⁵
|
|
n/a
|
Life of Mine
|
16-Jul-18
|
Voisey's Bay
|
0%
|
0%
|
0%
|
42.4% ⁶
|
|
n/a
|
|
n/a
|
|
n/a
|
|
18% ⁷
|
Life of Mine
|
11-Jun-18
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Los Filos
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.53
|
|
n/a
|
|
n/a
|
25 years
|
15-Oct-04
|
Zinkgruvan
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.46
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Dec-04
|
Yauliyacu
|
0%
|
100% ⁸
|
0%
|
0%
|
|
n/a
|
$
|
8.98 ⁹
|
|
n/a
|
|
n/a
|
Life of Mine
|
23-Mar-06
|
Stratoni
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
11.54
|
|
n/a
|
|
n/a
|
Life of Mine
|
23-Apr-07
|
Neves-Corvo
|
0%
|
100%
|
0%
|
0%
|
|
n/a
|
$
|
4.38
|
|
n/a
|
|
n/a
|
50 years
|
5-Jun-07
|
Aljustrel
|
0%
|
100% ¹⁰
|
0%
|
0%
|
|
n/a
|
|
50%
|
|
n/a
|
|
n/a
|
50 years
|
5-Jun-07
|
Minto
|
100% ¹¹
|
100%
|
0%
|
0%
|
|
65% ¹²
|
$
|
4.31
|
|
n/a
|
|
n/a
|
Life of Mine
|
20-Nov-08
|
Keno Hill
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
|
variable ¹³
|
|
n/a
|
|
n/a
|
Life of Mine
|
2-Oct-08
|
Pascua-Lama
|
0%
|
25%
|
0%
|
0%
|
|
n/a
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Sep-09
|
Rosemont
|
100%
|
100%
|
0%
|
0%
|
$
|
450
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-Feb-10
|
Loma de La Plata
|
0%
|
12.5%
|
0%
|
0%
|
|
n/a
|
$
|
4.00
|
|
n/a
|
|
n/a
|
Life of Mine
|
n/a ¹⁴
|
777
|
50%
|
100%
|
0%
|
0%
|
$
|
429 ²
|
$
|
6.32 ²
|
|
n/a
|
|
n/a
|
Life of Mine
|
8-Aug-12
|
Marmato
|
6.5% ¹⁵
|
100% ¹⁵
|
0%
|
0%
|
|
18% ¹⁶
|
|
18% ¹⁶
|
|
n/a
|
|
n/a
|
Life of Mine
|
5-Nov-20
|
Cozamin
|
0%
|
50% ¹⁷
|
0%
|
0%
|
|
n/a
|
|
10%
|
|
n/a
|
|
n/a
|
Life of Mine
|
10-Dec-20
|
Santo Domingo
|
100% ¹⁸
|
0%
|
0%
|
0%
|
|
18% ⁵
|
|
n/a
|
|
n/a
|
|
n/a
|
Life of Mine
|
24-Mar-21
|
Early Deposit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Toroparu
|
10%
|
50%
|
0%
|
0%
|
$
|
400
|
$
|
3.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
11-Nov-13
|
Cotabambas
|
25% ¹⁹
|
100% ¹⁹
|
0%
|
0%
|
$
|
450
|
$
|
5.90
|
|
n/a
|
|
n/a
|
Life of Mine
|
21-Mar-16
|
Kutcho
|
100% ²⁰
|
100% ²⁰
|
0%
|
0%
|
|
20%
|
|
20%
|
|
n/a
|
|
n/a
|
Life of Mine
|
14-Dec-17
|
1) |
The production payment is measured as either a fixed amount per ounce 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 ounce 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 ounce 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) |
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.
|
9) |
Should the market price of silver exceed $20 per ounce, in addition to the $8.98 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 $18.98 per ounce of silver delivered.
|
10) |
Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine.
|
11) |
The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter.
|
12) |
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.
|
13) |
Effective July 2020, the price paid per ounce of silver delivered under the Keno Hill PMPA has been modified to be 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.
|
14) |
Terms of the agreement not yet finalized.
|
15) |
Once Wheaton has received 190,000 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 3.25% and 50%, respectively.
|
16) |
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.
|
17) |
Once Wheaton has received 10 million ounces, the Company’s attributable silver production will be reduced to 33% of silver production for the life of the mine.
|
18) |
Once the Company has received 285,000 ounces of gold the Company’s attributable gold production will be reduced to 67%.
|
19) |
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.
|
20) |
Once 51,000 ounces of gold and 5.6 million ounces of silver have been delivered to Wheaton, attributable production will decrease to 66.67% of gold and silver production
for the life of mine.
|
Obligations With Scheduled Payment Dates
|
||||||||||||||||||||
(in thousands)
|
2021
|
2022 - 2024
|
2025 - 2026
|
After 2026
|
Sub-Total
|
Other Commitments
|
Total
|
|||||||||||||
Payments for mineral stream interests
|
|
|
|
|||||||||||||||||
Rosemont 1
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
231,150
|
|
$
|
231,150
|
|||||
Loma de La Plata
|
-
|
-
|
-
|
-
|
-
|
32,400
|
|
|
32,400
|
|||||||||||
Marmato
|
4,000
|
-
|
-
|
-
|
4,000
|
72,000
|
|
|
76,000
|
|||||||||||
Santo Domingo
|
-
|
-
|
-
|
-
|
-
|
260,000
|
|
|
260,000
|
|||||||||||
Salobo 2
|
-
|
646,000
|
-
|
-
|
646,000
|
-
|
|
|
646,000
|
|||||||||||
Constancia 3
|
4,000
|
-
|
-
|
-
|
4,000
|
-
|
|
|
4,000
|
|||||||||||
Payments for early deposit mineral stream interest
|
|
|
|
|||||||||||||||||
Toroparu 4
|
-
|
138,000
|
-
|
-
|
138,000
|
-
|
|
|
138,000
|
|||||||||||
Cotabambas
|
-
|
2,500
|
-
|
-
|
2,500
|
126,000
|
|
|
128,500
|
|||||||||||
Kutcho
|
-
|
-
|
-
|
-
|
-
|
58,000
|
|
|
58,000
|
|||||||||||
Non-revolving credit facility 5
|
208
|
-
|
-
|
-
|
208
|
-
|
|
|
208
|
|||||||||||
Leases liabilities
|
|
224
|
|
|
2,732
|
|
|
312
|
|
|
-
|
|
|
3,268
|
|
|
-
|
|
|
3,268
|
Total contractual obligations
|
$
|
8,432
|
|
$
|
789,232
|
|
$
|
312
|
|
$
|
-
|
|
$
|
797,976
|
|
$
|
779,550
|
|
$
|
1,577,526
|
1) |
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 2022, the Company would expect to pay an estimated expansion payment of between $550 million to $650 million.
|
3) |
As more fully explained on the following page, if Hudbay mines and processes four million tonnes of ore from the Pampacancha deposit by December 31, 2021, the Company will
make an additional deposit payment of $4 million to Hudbay.
|
4) |
The Company anticipates construction to begin in this period.
|
5) |
Represents the maximum amount available to Kutcho under the non-revolving credit facility (Note 23).
|
26. |
Segmented Information
|
Three Months Ended September 30, 2021
|
||||||||||||
|
Sales
|
Cost
of Sales |
Depletion
|
Net
Earnings |
Cash Flow
From Operations |
Total
Assets |
||||||
(in thousands)
|
||||||||||||
Gold
|
||||||||||||
Salobo
|
$
|
63,154
|
$
|
14,501
|
$
|
13,149
|
$
|
35,504
|
$
|
50,404
|
$
|
2,455,567
|
Sudbury 1
|
3,436
|
766
|
1,962
|
708
|
2,242
|
308,158
|
||||||
Constancia
|
14,645
|
3,352
|
2,570
|
8,723
|
11,487
|
101,741
|
||||||
San Dimas
|
20,365
|
7,014
|
3,658
|
9,693
|
13,351
|
171,617
|
||||||
Stillwater
|
5,061
|
918
|
1,119
|
3,024
|
4,144
|
220,949
|
||||||
Other 2
|
|
14,755
|
|
4,854
|
|
315
|
|
9,586
|
|
9,887
|
|
64,985
|
Total gold interests
|
$
|
121,416
|
$
|
31,405
|
$
|
22,773
|
$
|
67,238
|
$
|
91,515
|
$
|
3,323,017
|
Silver
|
||||||||||||
Peñasquito
|
$
|
53,259
|
$
|
9,483
|
$
|
7,844
|
$
|
35,932
|
$
|
43,776
|
$
|
328,470
|
Antamina
|
36,000
|
7,196
|
11,301
|
17,503
|
28,993
|
589,816
|
||||||
Constancia
|
11,668
|
2,932
|
3,660
|
5,076
|
9,033
|
208,537
|
||||||
Other 3
|
|
29,660
|
|
8,171
|
|
5,803
|
|
15,686
|
|
24,011
|
|
602,796
|
Total silver interests
|
$
|
130,587
|
$
|
27,782
|
$
|
28,608
|
$
|
74,197
|
$
|
105,813
|
$
|
1,729,619
|
Palladium
|
||||||||||||
Stillwater
|
$
|
13,834
|
$
|
2,667
|
$
|
2,523
|
$
|
8,644
|
$
|
11,168
|
$
|
234,883
|
Cobalt
|
||||||||||||
Voisey's Bay
|
$
|
3,120
|
$
|
675
|
$
|
1,072
|
$
|
1,373
|
$
|
159
|
$
|
218,144
|
Total mineral stream interests
|
$
|
268,957
|
$
|
62,529
|
$
|
54,976
|
$
|
151,452
|
$
|
208,655
|
$
|
5,505,663
|
Other
|
||||||||||||
General and administrative
|
$
|
(13,595)
|
$
|
(6,432)
|
||||||||
Finance costs
|
(1,379)
|
(1,039)
|
||||||||||
Other
|
(1,108)
|
103
|
||||||||||
Income tax
|
|
|
|
|
|
|
|
(433)
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
$
|
(16,515)
|
$
|
(7,368)
|
$
|
541,077
|
Consolidated
|
|
|
|
|
|
|
$
|
134,937
|
$
|
201,287
|
$
|
6,046,740
|
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 10% 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 Rosemont
and Santo Domingo gold interests.
|
3) |
Where a silver interest represents less than 10% 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, Neves-Corvo,
Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama and Rosemont silver interests.
|
Three Months Ended September 30, 2020
|
||||||||||||
Sales
|
Cost
of Sales |
Depletion
|
Net
Earnings |
Cash Flow
From Operations |
Total
Assets |
|||||||
(in thousands)
|
||||||||||||
Gold
|
||||||||||||
Salobo
|
$
|
113,319
|
$
|
24,313
|
$
|
22,306
|
$
|
66,700
|
$
|
91,917
|
$
|
2,529,258
|
Sudbury 1
|
15,161
|
3,143
|
6,533
|
5,485
|
12,018
|
327,352
|
||||||
Constancia
|
7,819
|
1,673
|
1,388
|
4,758
|
6,147
|
106,870
|
||||||
San Dimas
|
18,423
|
5,929
|
3,052
|
9,442
|
14,309
|
185,835
|
||||||
Stillwater
|
5,734
|
1,039
|
1,354
|
3,341
|
4,695
|
225,688
|
||||||
Other 2
|
|
11,278
|
|
2,473
|
|
1,783
|
|
7,022
|
|
8,804
|
|
9,184
|
Total gold interests
|
$
|
171,734
|
$
|
38,570
|
$
|
36,416
|
$
|
96,748
|
$
|
137,890
|
$
|
3,384,187
|
Silver
|
||||||||||||
Peñasquito
|
$
|
44,154
|
$
|
7,662
|
$
|
5,832
|
$
|
30,660
|
$
|
36,492
|
$
|
355,167
|
Antamina
|
26,758
|
5,092
|
9,527
|
12,139
|
21,666
|
641,521
|
||||||
Constancia
|
10,190
|
2,485
|
3,167
|
4,538
|
7,704
|
220,417
|
||||||
Other 3
|
|
42,332
|
|
14,187
|
|
3,286
|
|
24,859
|
|
24,333
|
|
475,613
|
Total silver interests
|
$
|
123,434
|
$
|
29,426
|
$
|
21,812
|
$
|
72,196
|
$
|
90,195
|
$
|
1,692,718
|
Palladium
|
||||||||||||
Stillwater
|
$
|
12,100
|
$
|
2,123
|
$
|
2,373
|
$
|
7,604
|
$
|
9,977
|
$
|
243,354
|
Cobalt
|
||||||||||||
Voisey's Bay
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Total mineral stream interests
|
$
|
307,268
|
$
|
70,119
|
$
|
60,601
|
$
|
176,548
|
$
|
238,062
|
$
|
5,547,769
|
Other
|
||||||||||||
General and administrative
|
$
|
(21,326)
|
$
|
(7,239)
|
||||||||
Finance costs
|
(2,766)
|
(2,820)
|
||||||||||
Other
|
(2,624)
|
96
|
||||||||||
Income tax
|
|
|
|
|
|
|
|
43
|
|
-
|
|
|
Total other
|
|
|
|
|
|
|
$
|
(26,673)
|
$
|
(9,963)
|
$
|
543,418
|
Consolidated
|
|
|
|
|
|
|
$
|
149,875
|
$
|
228,099
|
$
|
6,091,187
|
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 10% 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 and Minto gold interests as well as the non-operating Rosemont gold
interests.
|
3) |
Where a silver interest represents less than 10% 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 and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont silver interests.
|
Nine Months Ended September 30, 2021
|
||||||||||||
Sales
|
Cost
of Sales |
Depletion
|
Net
Earnings |
Cash Flow
From Operations |
Total
Assets |
|||||||
(in thousands)
|
||||||||||||
Gold
|
||||||||||||
Salobo
|
$
|
258,549
|
$
|
59,306
|
$
|
53,777
|
$
|
145,466
|
$
|
200,993
|
$
|
2,455,567
|
Sudbury 1
|
22,742
|
5,020
|
12,858
|
4,864
|
17,722
|
308,158
|
||||||
Constancia
|
21,829
|
4,983
|
3,828
|
13,018
|
17,040
|
101,741
|
||||||
San Dimas
|
58,981
|
20,226
|
10,585
|
28,170
|
38,755
|
171,617
|
||||||
Stillwater
|
15,212
|
2,768
|
3,361
|
9,083
|
12,444
|
220,949
|
||||||
Other 2
|
|
41,421
|
|
13,418
|
|
1,532
|
|
26,471
|
|
27,981
|
|
64,985
|
Total gold interests
|
$
|
418,734
|
$
|
105,721
|
$
|
85,941
|
$
|
227,072
|
$
|
314,935
|
$
|
3,323,017
|
Silver
|
||||||||||||
Peñasquito
|
$
|
159,374
|
$
|
26,720
|
$
|
22,102
|
$
|
110,552
|
$
|
132,655
|
$
|
328,470
|
Antamina
|
126,484
|
25,260
|
37,118
|
64,106
|
100,597
|
589,816
|
||||||
Constancia
|
28,605
|
6,792
|
8,507
|
13,306
|
22,109
|
208,537
|
||||||
Other 3
|
|
139,461
|
|
45,387
|
|
29,908
|
|
64,166
|
|
97,241
|
|
602,796
|
Total silver interests
|
$
|
453,924
|
$
|
104,159
|
$
|
97,635
|
$
|
252,130
|
$
|
352,602
|
$
|
1,729,619
|
Palladium
|
||||||||||||
Stillwater
|
$
|
36,932
|
$
|
6,804
|
$
|
6,506
|
$
|
23,622
|
$
|
30,128
|
$
|
234,883
|
Cobalt
|
||||||||||||
Voisey's Bay
|
$
|
13,878
|
$
|
3,073
|
$
|
5,376
|
$
|
5,429
|
$
|
1,244
|
$
|
218,144
|
Total mineral stream interests
|
$
|
923,468
|
$
|
219,757
|
$
|
195,458
|
$
|
508,253
|
$
|
698,909
|
$
|
5,505,663
|
Other
|
||||||||||||
General and administrative
|
$
|
(44,030)
|
$
|
(46,162)
|
||||||||
Finance costs
|
(4,309)
|
(3,246)
|
||||||||||
Other
|
2,194
|
407
|
||||||||||
Income tax
|
|
|
|
|
|
|
|
955
|
|
(52)
|
|
|
Total other
|
|
|
|
|
|
|
$
|
(45,190)
|
$
|
(49,053)
|
$
|
541,077
|
Consolidated
|
|
|
|
|
|
|
$
|
463,063
|
$
|
649,856
|
$
|
6,046,740
|
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 10% 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 Rosemont
and Santo Domingo gold interests.
|
3) |
Where a silver interest represents less than 10% 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, Neves-Corvo,
Aljustrel, Minto, Keno Hill, Cozamin, Marmato and 777 silver interests as well as the non-operating Loma de La Plata, Pascua-Lama and Rosemont silver interests.
|
Nine Months Ended September 30, 2020
|
||||||||||||
Sales
|
Cost
of Sales |
Depletion
|
Net
Earnings |
Cash Flow
From Operations |
Total
Assets |
|||||||
(in thousands)
|
||||||||||||
Gold
|
||||||||||||
Salobo
|
$
|
350,119
|
$
|
82,838
|
$
|
75,999
|
$
|
191,282
|
$
|
271,113
|
$
|
2,529,258
|
Sudbury 1
|
35,407
|
8,037
|
16,691
|
10,679
|
27,273
|
327,352
|
||||||
Constancia
|
18,310
|
4,240
|
3,536
|
10,534
|
14,070
|
106,870
|
||||||
San Dimas
|
46,836
|
16,485
|
8,532
|
21,819
|
32,166
|
185,835
|
||||||
Stillwater
|
16,581
|
2,965
|
4,306
|
9,310
|
13,616
|
225,688
|
||||||
Other 2
|
|
23,275
|
|
5,510
|
|
3,984
|
|
13,781
|
|
17,766
|
|
9,184
|
Total gold interests
|
$
|
490,528
|
$
|
120,075
|
$
|
113,048
|
$
|
257,405
|
$
|
376,004
|
$
|
3,384,187
|
Silver
|
||||||||||||
Peñasquito
|
$
|
116,091
|
$
|
25,667
|
$
|
19,535
|
$
|
70,889
|
$
|
90,424
|
$
|
355,167
|
Antamina
|
61,459
|
11,937
|
27,289
|
22,233
|
49,521
|
641,521
|
||||||
Constancia
|
20,480
|
6,083
|
7,770
|
6,627
|
14,398
|
220,417
|
||||||
Other 3
|
|
88,464
|
|
32,613
|
|
9,847
|
|
46,004
|
|
53,355
|
|
475,613
|
Total silver interests
|
$
|
286,494
|
$
|
76,300
|
$
|
64,441
|
$
|
145,753
|
$
|
207,698
|
$
|
1,692,718
|
Palladium
|
||||||||||||
Stillwater
|
$
|
32,990
|
$
|
5,863
|
$
|
6,615
|
$
|
20,512
|
$
|
27,127
|
$
|
243,354
|
Cobalt
|
||||||||||||
Voisey's Bay
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
227,510
|
Total mineral stream interests
|
$
|
810,012
|
$
|
202,238
|
$
|
184,104
|
$
|
423,670
|
$
|
610,829
|
$
|
5,547,769
|
Other
|
||||||||||||
General and administrative
|
$
|
(56,307)
|
$
|
(38,529)
|
||||||||
Finance costs
|
(14,519)
|
(15,572)
|
||||||||||
Other
|
1,340
|
682
|
||||||||||
Income tax
|
|
|
|
|
|
|
|
(3,601)
|
|
70
|
|
|
Total other
|
|
|
|
|
|
|
$
|
(73,087)
|
$
|
(53,349)
|
$
|
543,418
|
Consolidated
|
|
|
|
|
|
|
$
|
350,583
|
$
|
557,480
|
$
|
6,091,187
|
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 10% 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 and Minto gold interests as well as the non-operating Rosemont gold
interest.
|
3) |
Where a silver interest represents less than 10% 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, and 777 silver interests as well as the non-operating Keno Hill, Loma de La Plata, Pascua-Lama and Rosemont silver interests.
|
Sales
|
|
|
Carrying Amount at
September 30, 2021 |
||||||||||||||
(in thousands)
|
Three Month Ended
Sep 30, 2021 |
Nine Months Ended
Sep 30, 2021 |
Gold
Interests |
Silver
Interests |
Palladium
Interests |
Cobalt
Interests |
Total
|
||||||||||
North America
|
|
||||||||||||||||
Canada
|
$
|
24,809
|
9%
|
$
|
85,341
|
9%
|
$
|
315,685
|
$
|
28,180
|
$
|
-
|
$
|
218,144
|
$
|
562,009
|
10%
|
United States
|
18,896
|
7%
|
52,143
|
6%
|
|
220,949
|
566
|
234,883
|
-
|
456,398
|
8%
|
||||||
Mexico
|
78,025
|
29%
|
233,568
|
25%
|
|
171,616
|
472,160
|
-
|
-
|
643,776
|
12%
|
||||||
Europe
|
|
||||||||||||||||
Greece
|
989
|
0%
|
8,332
|
1%
|
|
-
|
-
|
-
|
-
|
-
|
0%
|
||||||
Portugal
|
7,788
|
3%
|
32,082
|
3%
|
|
-
|
19,361
|
-
|
-
|
19,361
|
0%
|
||||||
Sweden
|
7,588
|
3%
|
24,570
|
3%
|
|
-
|
31,615
|
-
|
-
|
31,615
|
1%
|
||||||
South America
|
|
||||||||||||||||
Argentina/Chile 1
|
-
|
0%
|
-
|
0%
|
|
-
|
253,514
|
-
|
-
|
253,514
|
5%
|
||||||
Argentina
|
-
|
0%
|
-
|
0%
|
|
-
|
10,889
|
-
|
-
|
10,889
|
0%
|
||||||
Chile
|
-
|
0%
|
-
|
0%
|
|
31,274
|
-
|
-
|
-
|
31,274
|
1%
|
||||||
Brazil
|
63,154
|
23%
|
258,549
|
28%
|
|
2,455,567
|
-
|
-
|
-
|
2,455,567
|
45%
|
||||||
Peru
|
66,697
|
26%
|
223,894
|
24%
|
|
101,741
|
906,741
|
-
|
-
|
1,008,482
|
17%
|
||||||
Colombia
|
|
1,011
|
0%
|
|
4,989
|
1%
|
|
26,185
|
|
6,593
|
|
-
|
|
-
|
|
32,778
|
1%
|
Consolidated
|
$
|
268,957
|
100%
|
$
|
923,468
|
100%
|
$
|
3,323,017
|
$
|
1,729,619
|
$
|
234,883
|
$
|
218,144
|
$
|
5,505,663
|
100%
|
1) |
Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
|
|
Sales
|
|
|
Carrying Amount at
September 30, 2020 |
|||||||||||||
(in thousands)
|
Three Month Ended
Sep 30, 2020 |
Nine Months Ended
Sep 30, 2020 |
Gold
Interests |
Silver
Interests |
Palladium
Interests |
Cobalt
Interests |
Total
|
|
|||||||||
North America
|
|
||||||||||||||||
Canada
|
$
|
29,473
|
10%
|
$
|
63,951
|
8%
|
$
|
336,537
|
$
|
28,788
|
$
|
-
|
$
|
227,510
|
$
|
592,835
|
11%
|
United States
|
17,834
|
6%
|
49,571
|
6%
|
|
225,688
|
566
|
243,354
|
-
|
469,608
|
8%
|
||||||
Mexico
|
63,041
|
21%
|
164,456
|
20%
|
|
185,834
|
356,460
|
-
|
-
|
542,294
|
10%
|
||||||
Europe
|
|
||||||||||||||||
Greece
|
3,360
|
1%
|
7,053
|
1%
|
|
-
|
-
|
-
|
-
|
-
|
0%
|
||||||
Portugal
|
8,965
|
3%
|
22,553
|
3%
|
|
-
|
20,464
|
-
|
-
|
20,464
|
0%
|
||||||
Sweden
|
12,271
|
4%
|
26,016
|
3%
|
|
-
|
33,374
|
-
|
-
|
33,374
|
1%
|
||||||
South America
|
|
||||||||||||||||
Argentina/Chile 1
|
-
|
0%
|
-
|
0%
|
|
-
|
264,403
|
-
|
-
|
264,403
|
5%
|
||||||
Brazil
|
113,318
|
36%
|
350,119
|
43%
|
|
2,529,258
|
-
|
-
|
-
|
2,529,258
|
46%
|
||||||
Peru
|
|
59,006
|
19%
|
|
126,293
|
16%
|
|
106,870
|
|
988,663
|
|
-
|
|
-
|
|
1,095,533
|
19%
|
Consolidated
|
$
|
307,268
|
100%
|
$
|
810,012
|
100%
|
$
|
3,384,187
|
$
|
1,692,718
|
$
|
243,354
|
$
|
227,510
|
$
|
5,547,769
|
100%
|
1) |
Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
|
27. |
Subsequent Events
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Wheaton Precious Metals Corp. (the “issuer”)
for the interim period ended September 30, 2021.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information
included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the
issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the
period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within
the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
N/A
|
5.3 |
N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on
July 1, 2021 and ended on September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
/s/ Randy Smallwood |
Name: |
Randy Smallwood
|
Title: |
President and Chief Executive Officer
|
1. |
Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Wheaton Precious Metals Corp. (the “issuer”)
for the interim period ended September 30, 2021.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material
fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information
included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures
(DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the
issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the
period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within
the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
N/A
|
5.3 |
N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on
July 1, 2021 and ended on September 30, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
Date: | November 4, 2021 |
/s/ Gary Brown |
Name: |
Gary Brown
|
Title: |
Senior Vice President and Chief Financial Officer
|
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