Wheaton Precious Metals Announces Third Quarter 2024 Results and Record Quarterly Operating Cash Flow
Designated News Release THIRD QUARTER FINANCIAL RESULTS
VANCOUVER, BC, Nov. 7, 2024 /PRNewswire/ - "Wheaton achieved record cash flow from operations in the third quarter of 2024, underscoring the effectiveness of our business model in leveraging rising commodity prices, with our cash operating margins increasing by over 30% relative to the third quarter of 2023. Our portfolio of operating assets delivered solid production levels, continuing to support our annual production guidance range for 2024 of 550,000 to 620,000 gold equivalent ounces," said Randy Smallwood, President and CEO of Wheaton Precious Metals. "Shortly following the quarter, Wheaton announced two accretive, precious metals streaming agreements, including a new stream on Montage's Koné Project and an amendment to the existing stream on Rio2's Fenix Project. Together, these transactions further diversify our strategic partnerships and the geography of our portfolio. Once ramped-up, the Koné Project is forecast to contribute meaningful near-term production, reinforcing Wheaton's already prominent position as a leader in the sector's growth landscape."
Solid Financial Results and Strong Balance Sheet
Third quarter of 2024: $308 million in revenue, $254 million in operating cash flow, $155 million in net earnings and $153 million in adjusted net earnings1, and declared a quarterly dividend1 of $0.155 per common share.
Balance Sheet: cash balance of $694 million, no debt, and an undrawn $2 billion revolving credit facility as at September 30, 2024 after making total upfront cash payments of $30 million relative to mineral stream and royalty interests in the quarter.
High Quality Asset Base
Streaming and royalty agreements on 18 operating mines and 28 development projects5, including the addition of the Koné project announced subsequent to the quarter.
93% of attributable production from assets in the lowest half of their respective cost curves2,4.
Attributable gold equivalent production3 ("GEOs") of 144,200 ounces in the third quarter of 2024 and 448,400 for the first nine months of 2024, with quarterly production consistent with the comparable period of the prior year, as lower production from Salobo and Constancia was largely offset by higher production from Peñasquito.
Average annual forecast production guidance for 2024 of 550,000 to 620,000 GEOs3 maintained, with forecasted sector-leading growth to over 800,000 GEOs3 by 2028, and average annual forecast attributable production growing to over 850,000 GEOs3 in years 2029 to 2033.
Further de-risked forecast growth profile as construction activities advanced at the Blackwater, Goose, Platreef, and Mineral Park projects, all of which are expected to be producing within the next 12 months.
Subsequent to the quarter, the Company announced two accretive precious metals streaming agreements:
On October 23, 2024, the Company entered into a precious metals purchase agreement ("PMPA") with Montage Gold Corp. in respect to the Koné Gold Project located in Côte d'Ivoire.
On October 21, 2024, the Company amended the Fenix PMPA, increasing the amount of attributable gold it is entitled to under the contract.
Leadership in Sustainability
Top Rankings: One of the top-rated companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
Launch of inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology aimed at minimizing environmental impacts, improving efficiencies, and contributing to climate solutions, while ensuring key resources are responsibly available for future generations.
Operational Overview
(all figures in US dollars unless otherwise noted)
Q3 2024
Q3 2023
Change
YTD 2024
YTD 2023
Change
Units produced
Gold ounces
87,199
105,027
(17.0) %
262,698
261,226
0.6 %
Silver ounces
4,554
3,397
34.1 %
15,083
12,985
16.2 %
Palladium ounces
4,034
4,006
0.7 %
12,835
11,591
10.7 %
Cobalt pounds
397
183
117.6 %
896
458
95.5 %
Gold equivalent ounces 3
144,164
147,278
(2.1) %
448,388
419,330
6.9 %
Units sold
Gold ounces
75,694
74,426
1.7 %
245,039
212,325
15.4 %
Silver ounces
3,875
2,965
30.7 %
11,765
11,151
5.5 %
Palladium ounces
3,761
4,242
(11.3) %
12,836
10,580
21.3 %
Cobalt pounds
88
198
(55.6) %
485
786
(38.3) %
Gold equivalent ounces 3
122,715
111,935
9.6 %
389,907
350,961
11.1 %
Change in PBND and Inventory
Gold equivalent ounces 3
9,267
21,869
12.602
17,989
20,020
2,031
Revenue
$
308,253
$
223,137
38.1 %
$
904,123
$
702,573
28.7 %
Net earnings
$
154,635
$
116,371
32.9 %
$
440,993
$
369,209
19.4 %
Per share
$
0.341
$
0.257
32.7 %
$
0.973
$
0.815
19.4 %
Adjusted net earnings 1
$
152,803
$
121,467
25.8 %
$
441,201
$
368,481
19.7 %
Per share 1
$
0.337
$
0.268
25.7 %
$
0.973
$
0.814
19.5 %
Operating cash flows
$
254,337
$
171,103
48.6 %
$
708,110
$
508,584
39.2 %
Per share 1
$
0.561
$
0.378
48.4 %
$
1.562
$
1.123
39.1 %
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.
Financial Review
RevenuesRevenue in the third quarter of 2024 was $308 million (61% gold, 37% silver, 1% palladium and 1% cobalt), with the $85 million increase relative to the prior period quarter being primarily due to a 26% increase in the average realized gold equivalent³ price; and a 10% increase in the number of GEOs³ sold.
Revenue was $904 million in the nine months ended September 30, 2024, representing a $202 million increase from the comparable period of the previous year due primarily to a 16% increase in the average realized gold equivalent³ price; and an 11% increase in the number of GEOs³ sold.
Cash Costs and MarginAverage cash costs¹ in the third quarter of 2024 were $437 per GEO³ as compared to $445 in the third quarter of 2023. This resulted in a cash operating margin¹ of $2,075 per GEO³ sold, an increase of 34% as compared with the third quarter of 2023, a result of the higher realized price per ounce coupled with the lower average cash costs due to changes in the sales mix.
Average cash costs¹ for the nine months ended September 30, 2024 were $434 per GEO³ as compared to $457 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,885 per GEO³ sold, a 22% increase from comparable period of the previous year.
Cash Flow from OperationsOperating cash flow in the third quarter of 2024 amounted to $254 million, with the $83 million increase due primarily to the higher gross margin.
Operating cash flows for the nine months ended September 30, 2024 amounted to $708 million, with the $200 million increase from the comparable period of the previous year being due primarily to the higher gross margin.
Balance Sheet (at September 30, 2024)
Approximately $694 million of cash on hand
During the third quarter of 2024, the Company made total upfront cash payments of $30 million relative to the mineral stream and royalty interests consisting of:
$25 million relative to the Mineral Park PMPA; and
$5 million relative to the DeLamar Royalty.
With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company believes it is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.
Global Minimum TaxThe Company is within the scope of global minimum tax ("GMT") under the OECD Pillar Two model rules ("Pillar Two"), under which large multinational entities are subject to a 15% GMT. On June 20, 2024, Canada's Global Minimum Tax Act ("GMTA"), received royal assent. The GMTA enacts the OECD Pillar Two model rules where in scope companies are subject to a 15% GMT for fiscal years commencing on or after December 31, 2023. With the enactment of the GMTA on June 20, 2024, the income of the Company's subsidiaries which operate in jurisdictions with a statutory tax rate of 0% are subject to the GMTA. For the three months ended September 30, 2024 an amount of $28 million current tax expense associated with GMT was recorded (nine months - $78 million). GMT accrued to December 31, 2024, is payable on or before June 30, 2026 (18 months following year-end).
Third Quarter Operating Asset Highlights
Salobo: In the third quarter of 2024, Salobo produced 62,700 ounces of attributable gold, a decrease of approximately 9% relative to the third quarter of 2023, primarily due to lower grades, partially offset by higher throughput. On July 25, 2024, Vale S.A. ("Vale") reported that the Salobo III processing plant operations resumed in July, after being halted for 31 days due to a fire on a conveyor belt. Vale confirmed that 2024 copper production guidance of 320-355 kt has been maintained.
Antamina: In the third quarter of 2024, Antamina produced 0.9 million ounces of attributable silver, an increase of approximately 3% relative to the third quarter of 2023 primarily due to higher recoveries, partially offset by lower throughput.
Peñasquito: In the third quarter of 2024, Peñasquito produced 1.8 million ounces of attributable silver, with Peñasquito producing no ounces in the third quarter of 2023 as a result of a labour strike which lasted from June 7 to October 13, 2023.
Constancia: In the third quarter of 2024, Constancia produced 0.6 million ounces of attributable silver and 10,400 ounces of attributable gold, a decrease of approximately 7% and 45%, respectively, relative to the third quarter of 2023. The decrease in silver production was primarily due to lower recoveries. The decrease in gold production was primarily the result of lower gold grades due largely to the planned stripping activity in the Pampacancha pit, which commenced in the second quarter, and continued throughout the third quarter. On August 13, 2024, Hudbay Minerals Inc. ("Hudbay") reported that the stripping program for the next mining phase at Pampacancha was underway and expected to lead to significantly higher copper and gold grades in the fourth quarter of 2024.
Sudbury: In the third quarter of 2024, Vale's Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 11% relative to the third quarter of 2023, due to higher throughput.
Stillwater: In the third quarter of 2024, the Stillwater mines produced 2,200 ounces of attributable gold and 4,000 ounces of attributable palladium, a decrease of approximately 8% for gold relative to the third quarter of 2023, due primarily to lower recoveries, while palladium production was virtually unchanged. On September 12, 2024, Sibanye Stillwater ("Sibanye") announced that as a result of low palladium prices it was placing the Stillwater West operations into care and maintenance, while Stillwater East and East Boulder operations continue to operate. Sibanye reports that Stillwater West could return to production as prices permit. Based on Sibanye's Q3 MD&A, the Company's management estimates that with the Stillwater West operations in care and maintenance, 2025 production relative to the Stillwater PMPA will be approximately 40% to 45% lower than historical levels.
Voisey's Bay: In the third quarter of 2024, the Voisey's Bay mine produced 397,000 pounds of attributable cobalt, an increase of approximately 118% relative to the third quarter of 2023, as the transitional period between the depletion of the Ovoid open-pit and ramp-up to full production of the Voisey's Bay underground mine nears completion. Vale reported that physical completion of the Voisey's Bay underground mine extension was 99% at the end of the third quarter, with all surface construction completed and the commissioning of the Reid Brook power plant remaining. In the Eastern Deeps Mine, the Bulk Material Handling system achieved mechanical completion in early October and Vale indicated that the focus is now on commissioning, with handover to Operations within 2024. Demobilization efforts are ongoing, with Surface contractors already fully demobilized.
Other Silver: In the third quarter of 2024, total Other Silver attributable production was 1.2 million ounces, a decrease of approximately 34% relative to the third quarter of 2023. The decrease from the comparable period of the prior year is primarily due to the temporary suspension of attributable ore mined at Aljustrel commencing September 24, 2023.
Detailed mine-by-mine production and sales figures can be found in the Appendix to this press release and in Wheaton's consolidated MD&A in the 'Results of Operations and Operational Review' section.
Recent Development Asset Updates
Blackwater Project: On November 6, 2024, Artemis Gold Inc., ("Artemis") announced that overall construction was over 95% complete as of September 30, 2024 and first gold pour is targeted for late Q4 2024. Construction of the tailings storage facility is ready to allow for the commencement of commissioning of the plant. Artemis reported that the initial mining fleet has been commissioned and pre-stripping of the mine, as well as the construction of haul roads are well advanced.
Platreef Project: On October 30, 2024, Ivanhoe Mines ("Ivanhoe") reported that construction of the Phase 1 concentrator was completed on schedule early in the third quarter. First ore is scheduled for the second half of 2025, while underground development prioritizes development to accelerate Phase 2. Ivanhoe also states that work continues on the updated feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic assessment of the previously announced Phase 3 expansion to 10 Mtpa processing capacity. Both studies are now expected to be published in Q1 2025.
Goose Project: On November 6 2024, B2Gold Corp. ("B2Gold") announced that all planned construction year to date in 2024 has been completed. Project construction and development continues to progress on track for first gold pour at the Goose Project in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of 2025. The 2024 sealift was completed successfully on September 30, 2024, with ten ships and one barge having unloaded 123,000 cubic meters of dry cargo, more than 84 million liters of arctic grade diesel fuel and 58 additional trucks for the 2025 Winter Ice Road campaign.
Marmato Mine: On July 16, 2024, Aris Mining Corporation ("Aris") reported that the Lower Mine project is on track for first gold pour by the end of 2025, followed by an approximate six-month ramp-up period. On October 7, 2024, Aris provided an update that the Marmato Lower Mine expansion is progressing on schedule, with the site access road and portal face now complete and the contractor preparing to initiate work on the twin declines. Both the SAG and ball mill fabrication are progressing on schedule for completion before the end of 2024.
Curipamba Project: On July 31, 2024, Silvercorp Metals Inc. ("Silvercorp") completed the previously announced acquisition of all of the issued and outstanding common shares of Adventus Mining Corporation. Under the terms of the Curipamba PMPA, within 30 days of a change of control, Silvercorp had a one-time option to repurchase 33% of the gold and silver stream which expired unexercised.
Marathon Project: On July 31, 2024, Generation Mining Limited ("Gen Mining") reported that the federal government has approved amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations ("Schedule 2") which will allow for the construction of specific water management structures and operation of key infrastructure for the Marathon Project. On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization for the Marathon project. Gen Mining also states that receipt of the few remaining provincial and federal approvals and permits required for construction is expected in the coming months. Following which, the Marathon project will have all of the key government permits and approvals required for construction.
Santo Domingo: On July 31, 2024, Capstone Copper Corp. ("Capstone") published the results of an updated feasibility study for the Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-year mine life supported by higher mineral reserve estimates. The report indicates that total gold production is expected to average 35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per year. Capstone has reported that with construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly announced two-year, $25 million exploration program at Mantoverde, aimed at supporting the two future processing centers between Mantoverde and Santo Domingo.
Curraghinalt Project: On May 3, 2024, the Planning Appeals Commission & Water Appeals Commission (the "Commission") in Northern Ireland concluded that the water abstraction and impoundment licenses ("Water Licenses") relative to the Curraghinalt Project have been rescinded and that license applications would need to be resubmitted, and subsequent public inquiry referrals held. Dalradian has re-submitted two new applications for the abstraction licenses and those licenses were received by the Commission on September 5, 2024. The Commission has set new dates to resume the public inquiry process beginning January 13, 2025.
Fenix Project: On October 2, 2024, Rio2 Limited ("Rio2") announced that its Chilean subsidiary has received the principal Sectorial Permits it requires to begin construction at the Fenix project. These Sectorial Permits represent the last governmental authorization required to enable the start of the construction phase and subsequent operation of the Fenix mine.
Copper World Project: On August 29, 2024, Hudbay announced that it has received an Aquifer Protection Permit for the Copper World project from the Arizona Department of Environmental Quality. The issuance of this permit is a key milestone in the advancement of Copper World. The last key state-level permit is the Air Quality Permit which is progressing as planned.
Corporate Development
Koné Gold Project
On October 23, 2024, the Company entered into a PMPA (the "Koné Gold PMPA") with Montage Gold Corp. ("Montage") in respect of its 90% owned Koné Gold Project located in Côte d'Ivoire. Under the terms of the agreement, Wheaton will purchase 19.5% of the payable gold production until 400,000 ounces of gold have been delivered (subject to adjustment if there are delays in deliveries relative to an agreed schedule), 10.8% of the gold production until the delivery of a further 130,000 ounces and 5.4% gold production thereafter for the life of mine. Under the terms of the Koné Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million, payable in four equal installment payments during construction, subject to certain conditions, including that all permits have been obtained.
In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 20% of the spot gold price. For the first five years after the PMPA is signed, there will be a price adjustment mechanism in place if the spot price of gold is less than $2,100 per ounce or greater than $2,700 per ounce.
The Company has also provided Montage with a secured debt facility of up to $75 million (the "Facility").
Amendment to the Fenix PMPA
On November 15, 2021, the Company acquired a gold stream in respect of gold production from the Fenix Project (the "Fenix PMPA"). Under the terms of the Fenix PMPA, the Company was to acquire an amount of gold equal to 6% of the gold production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life of mine.
On October 21, 2024, the Company amended the Fenix PMPA. Under the terms of the amended agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total, subject to adjustment if there are delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds under the original Fenix PMPA (as described above). Rio2 has a one-time option to terminate the requirement to deliver the additional gold production from the end of 2027 until the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the original Fenix PMPA. Finally, the Company has also agreed to adjust the production payment for all gold ounces delivered to 20% of the spot gold price. In exchange for the amendment, the Company is committed to pay additional upfront cash consideration of $100 million, payable in two equal installments, subject to various customary conditions being satisfied.
Wheaton will also provide a $20 million contingent secured debt facility in the form of a standby loan facility. Lastly, Wheaton has committed to participate in a private placement of Rio2 common shares for Cdn$5 million at a price per share equal to, and concurrent with, a public offering by Rio2.
Sustainability
Future of Mining Challenge
On September 16, 2024, Wheaton announced the launch of the inaugural Future of Mining Challenge, which will award US$1 million to a winning venture to advance their technology. The Future of Mining Challenge invites cleantech ventures from around the world to submit and propose industry solutions. This year's challenge focuses on identifying eligible technologies with the potential to reduce greenhouse gas emissions across mining operations. In alignment with Wheaton's business model, the solutions should be applicable to base and/or precious metal mining. They should also be scalable globally, with the aim of future implementation at operating mines. The challenge is being supported by Foresight Canada. Submissions for challenge applications opened in September 2024, and the winner will be announced in March 2025 at the PDAC Convention in Toronto, the world's largest mining conference. More information can be found at www.futureofmining.ca.
Community Investment Program
Wheaton's Partner Community Investment Program continues to support initiatives with the Vale Foundation, Vale Canada, Glencore via Antamina, Hudbay Minerals, First Majestic Silver and Sibanye-Stillwater to support the communities influenced by the mines and provide vital services and programs including educational resources, health and dental programs, poverty reduction initiatives, entrepreneurial opportunities, and various social and environmental programs.
In August 2024, the BC Cancer Foundation's Tour de Cure presented by Wheaton raised C$7.3 million to advance groundbreaking cancer research and care enhancements in British Columbia.
2024 and Long-Term Production Outlook
Wheaton's estimated attributable production in 2024 is forecast to be 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12,000 to 15,000 GEOs3 of other metals, resulting in annual production of approximately 550,000 to 620,000 GEOs3, unchanged from previous guidance2,3.
Annual production is forecast to increase by approximately 40% to over 800,000 GEOs3 by 2028, with average annual production forecast to grow to over 850,000 GEO3 in years 2029 to 2033, also unchanged from previous guidance6. The transactions announced in 2024, including the new stream associated with the Koné Project and the amendment related to the Fenix Project, have not been incorporated into the long-term guidance.
The Company will provide updated longer-term guidance in normal course in the first quarter of 2025, which will incorporate the impact of recent developments and the acquisitions announced in 2024.2,3
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company with the highest-quality portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company. Wheaton delivers amongst the highest cash operating margins in the mining industry, allowing it to pay a competitive dividend and continue to grow through accretive acquisitions. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. Wheaton creates sustainable value through streaming for all of its stakeholders.
In accordance with Wheaton Precious Metals™ Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and Financial Statements, reference to the Company and Wheaton includes the Company's wholly owned subsidiaries.
Webcast and Conference Call Details
A conference call will be held on Friday, November 8, 2024, starting at 11:00 am ET (8:00 am PT) to discuss these results. To participate in the live call, please use one of the following methods:
RapidConnect URL: Click hereLive webcast: Click hereDial toll free: 1-888-510-2154 or 1-437-900-0527Conference Call ID: 48142
The accompanying slideshow will also be available in PDF format on the 'Presentations' page of the Wheaton Precious Metals website before the conference call. The conference call will be recorded and available until November 15, 2024 at 11:59 pm ET. The webcast will be available for one year. You can listen to an archive of the call by one of the following methods:
Dial toll free from Canada or the US: 1-289-819-1450Dial from outside Canada or the US: 1-888-660-6345Pass code: 48142Archived webcast: Click here
This earnings release should be read in conjunction with Wheaton Precious Metals' MD&A and Financial Statements, which are available on the Company's website at www.wheatonpm.com and have been posted on SEDAR+ at www.sedarplus.ca.
Mr. Wes Carson, P.Eng., Vice President, Mining Operations, Neil Burns, P.Geo., Vice President, Technical Services for Wheaton Precious Metals and Ryan Ulansky, P.Eng., Vice President, Engineering, are a "qualified person" as such term is defined under National Instrument 43-101, and have reviewed and approved the technical information disclosed in this news release (specifically Mr. Carson has reviewed production figures, Mr. Burns has reviewed mineral resource estimates and Mr. Ulansky has reviewed the mineral reserve estimates).
Wheaton Precious Metals believes that there are no significant differences between its corporate governance practices and those required to be followed by United States domestic issuers under the NYSE listing standards. This confirmation is located on the Wheaton Precious Metals website at http://www.wheatonpm.com/Company/corporate-governance/default.aspx.
Condensed Interim Consolidated Statements of Earnings
Three Months EndedSeptember 30
Nine Months EndedSeptember 30
(US dollars and shares in thousands, except per share amounts - unaudited)
2024
2023
2024
2023
Sales
$
308,253
$
223,137
$
904,123
$
702,573
Cost of sales
Cost of sales, excluding depletion
$
55,310
$
49,808
$
170,872
$
160,413
Depletion
55,530
46,435
178,071
145,908
Total cost of sales
$
110,840
$
96,243
$
348,943
$
306,321
Gross margin
$
197,413
$
126,894
$
555,180
$
396,252
General and administrative expenses
9,488
8,606
30,193
28,922
Share based compensation
9,628
4,336
17,150
16,217
Donations and community investments
2,352
1,736
4,626
5,054
Earnings from operations
$
175,945
$
112,216
$
503,211
$
346,059
Gain on disposal of mineral stream interests
-
-
-
5,027
Other income (expense)
7,605
10,707
19,922
26,961
Earnings before finance costs and income taxes
$
183,550
$
122,923
$
523,133
$
378,047
Finance costs
1,404
1,407
4,144
4,138
Earnings before income taxes
$
182,146
$
121,516
$
518,989
$
373,909
Income tax expense
27,511
5,145
77,996
4,700
Net earnings
$
154,635
$
116,371
$
440,993
$
369,209
Basic earnings per share
$
0.341
$
0.257
$
0.973
$
0.815
Diluted earnings per share
$
0.340
$
0.257
$
0.971
$
0.814
Weighted average number of shares outstanding
Basic
453,641
452,975
453,389
452,748
Diluted
454,302
453,538
454,037
453,419
Condensed Interim Consolidated Balance Sheets
As at September 30
As atDecember 31
(US dollars in thousands - unaudited)
2024
2023
Assets
Current assets
Cash and cash equivalents
$
694,085
$
546,527
Accounts receivable
10,435
10,078
Cobalt inventory
-
1,372
Income taxes receivable
1,392
5,935
Other
3,938
3,499
Total current assets
$
709,850
$
567,411
Non-current assets
Mineral stream interests
$
6,456,123
$
6,122,441
Early deposit mineral stream interests
47,094
47,093
Mineral royalty interests
40,429
13,454
Long-term equity investments
103,068
246,678
Property, plant and equipment
7,535
7,638
Other
22,080
26,470
Total non-current assets
$
6,676,329
$
6,463,774
Total assets
$
7,386,179
$
7,031,185
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
14,766
$
13,458
Current portion of performance share units
12,522
12,013
Current portion of lease liabilities
324
604
Total current liabilities
$
27,612
$
26,075
Non-current liabilities
Performance share units
$
9,301
$
9,113
Lease liabilities
5,340
5,625
Global minimum tax
78,361
-
Deferred income taxes
264
232
Pension liability
5,287
4,624
Total non-current liabilities
$
98,553
$
19,594
Total liabilities
$
126,165
$
45,669
Shareholders' equity
Issued capital
$
3,797,558
$
3,777,323
Reserves
(44,489)
(40,091)
Retained earnings
3,506,945
3,248,284
Total shareholders' equity
$
7,260,014
$
6,985,516
Total liabilities and shareholders' equity
$
7,386,179
$
7,031,185
Condensed Interim Consolidated Statements of Cash Flows
Three Months EndedSeptember 30
Nine Months EndedSeptember 30
(US dollars in thousands - unaudited)
2024
2023
2024
2023
Operating activities
Net earnings
$
154,635
$
116,371
$
440,993
$
369,209
Adjustments for
Depreciation and depletion
55,887
46,784
179,111
147,031
Gain on disposal of mineral stream interest
-
-
-
(5,027)
Interest expense
71
78
216
131
Equity settled stock based compensation
1,725
1,732
4,978
5,133
Performance share units - expense
7,903
2,604
12,172
11,084
Performance share units - paid
-
-
(11,129)
(16,675)
Pension expense
336
329
794
787
Pension paid
-
-
(43)
(116)
Income tax (recovery) expense
27,511
5,145
77,996
4,700
(Gain) loss on fair value adjustment of share purchase warrants held
(523)
143
(903)
248
Investment income recognized in net earnings
(7,249)
(10,537)
(18,564)
(26,564)
Other
2,246
163
2,646
662
Change in non-cash working capital
2,837
(489)
1,329
(876)
Cash generated from operations before income taxes and interest
$
245,379
$
162,323
$
689,596
$
489,727
Income taxes paid
2,925
(912)
2,734
(5,244)
Interest paid
(71)
(79)
(219)
(112)
Interest received
6,104
9,771
15,999
24,213
Cash generated from operating activities
$
254,337
$
171,103
$
708,110
$
508,584
Financing activities
Credit facility extension fees
$
(11)
$
(13)
$
(936)
$
(859)
Share purchase options exercised
847
93
13,011
10,603
Lease payments
(149)
(169)
(444)
(548)
Dividends paid
(69,984)
(66,994)
(209,108)
(198,085)
Cash used for financing activities
$
(69,297)
$
(67,083)
$
(197,477)
$
(188,889)
Investing activities
Mineral stream interests
$
(25,876)
$
(90,710)
$
(512,383)
$
(210,944)
Early deposit mineral stream interests
-
(250)
-
(1,000)
Mineral royalty interest
(4,956)
(3,602)
(26,981)
(3,602)
Net proceeds on disposal of mineral stream interests
-
-
-
46,400
Acquisition of long-term investments
(728)
(5,006)
(1,479)
(13,181)
Proceeds on disposal of long-term investments
-
-
177,088
202
Dividends received
482
700
1,663
1,617
Other
(155)
(35)
(944)
(1,804)
Cash used for investing activities
$
(31,233)
$
(98,903)
$
(363,036)
$
(182,312)
Effect of exchange rate changes on cash and cash equivalents
$
61
$
(35)
$
(39)
$
447
Increase in cash and cash equivalents
$
153,868
$
5,082
$
147,558
$
137,830
Cash and cash equivalents, beginning of period
540,217
828,837
546,527
696,089
Cash and cash equivalents, end of period
$
694,085
$
833,919
$
694,085
$
833,919
Summary of Units Produced
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Q4 2022
Gold ounces produced ²
Salobo
62,689
63,225
61,622
71,778
69,045
54,804
43,677
37,939
Sudbury 3
4,287
4,477
5,618
5,823
3,857
5,818
6,203
5,270
Constancia
10,446
6,086
13,897
22,292
19,003
7,444
6,905
10,496
San Dimas 4
6,882
7,089
7,542
10,024
9,995
11,166
10,754
10,037
Stillwater 5
2,247
2,099
2,637
2,341
2,454
2,017
1,960
2,185
Other
Marmato
648
584
623
668
673
639
457
533
Minto 6
-
-
-
-
-
1,292
3,063
2,567
Total Other
648
584
623
668
673
1,931
3,520
3,100
Total gold ounces produced
87,199
83,560
91,939
112,926
105,027
83,180
73,019
69,027
Silver ounces produced 2
Peñasquito 7
1,785
2,263
2,643
1,036
-
1,744
2,076
1,761
Antamina
925
992
806
1,030
894
984
872
1,067
Constancia
648
451
640
836
697
420
552
655
Other
Los Filos
42
27
48
26
32
41
45
14
Zinkgruvan
537
699
641
510
785
374
632
664
Neves-Corvo
425
432
524
573
486
407
436
369
Aljustrel 8
-
-
-
-
327
279
343
313
Cozamin
185
177
173
185
165
184
141
157
Marmato
7
6
7
10
11
7
8
9
Yauliyacu 9
-
-
-
-
-
-
-
261
Minto 6
-
-
-
-
-
14
29
33
Total Other
1,196
1,341
1,393
1,304
1,806
1,306
1,634
1,820
Total silver ounces produced
4,554
5,047
5,482
4,206
3,397
4,454
5,134
5,303
Palladium ounces produced ²
Stillwater 5
4,034
4,338
4,463
4,209
4,006
3,880
3,705
3,869
