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WHEATON PRECIOUS METALS ANNOUNCES SOLID THIRD QUARTER RESULTS FOR 2023

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WHEATON PRECIOUS METALS ANNOUNCES SOLID THIRD QUARTER RESULTS FOR 2023

 

 

 

 

 

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

 

Solid Financial Results and Strong Balance Sheet

  • Third quarter of 2023: $223 million in revenue, $171 million in operating cash flow, $116 million in net earnings and $121 million in adjusted net earnings1.
  • A cash balance of $834 million and no debt as at September 30, 2023, after making total upfront cash payments of $90 million relative to mineral stream interests in the quarter.
  • Undrawn $2 billion revolving credit facility maturing on June 22, 2028.
  • Declared a quarterly dividend1 of $0.15 per common share.

 

High Quality Asset Base

  • Streaming agreements on 18 operating mines and 14 development projects.
  • 93% of attributable production from assets in the lowest half of their respective cost curves2,3.
  • 30 years of mine life based on Proven and Probable Mineral Reserves and potential additional mine life from mineral resource conversion and exploration2,4.
  • Third quarter production increased quarter over quarter to 154,800 gold equivalent ounces3, driven by strong outperformances at both Salobo and Constancia, and despite the temporary suspension at Peñasquito, highlighting the strength of our diversified portfolio.
  • Average annual production guidance for 2023 of 600,000 to 660,000 GEOs2,3 is maintained, with sector-leading growth over the next five to ten years.
  • Accretive portfolio growth:
    • Subsequent to the quarter, entered into a definitive agreement with Waterton Copper Corp. to acquire a silver stream on the Mineral Park mine for total cash consideration of $115 million.
    • Acquired a 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide Gold Project for total cash consideration of $3.6 million, along with an equity investment totalling $5 million in Liberty Gold at C$0.34 per share.

 

Leadership in Sustainability

  • Top Rankings: #1 out of 117 precious metals companies and ranked in the Global Top 50 companies by Sustainalytics, AA rated by MSCI, and Prime rated by ISS.
  • Wheaton was recognized as Best Company for ESG & Sustainability (Metals & Mining) and runner-up for Best Company for Climate Reporting (Large Cap) by ESG Investing’s Corporate ESG Awards.

 

Operational Overview 

 

(all figures in US dollars unless otherwise
noted)
Q3 2023 Q3 2022 Change YTD 2023 YTD 2022 Change
Units produced
Gold ounces 105,436 72,078 46.3 % 261,635 216,574 20.8 %
Silver ounces 3,363 5,822 (42.2) % 12,876 18,497 (30.4) %
Palladium ounces 4,006 3,229 24.1 % 11,591 11,616 (0.2) %
Cobalt pounds 183 226 (19.1) % 458 596 (23.1) %
Gold equivalent ounces 3 154,800 153,025 1.2 % 444,597 473,868 (6.2) %
Units sold
Gold ounces 74,426 62,000 20.0 % 212,325 224,238 (5.3) %
Silver ounces 2,965 5,234 (43.4) % 11,151 16,635 (33.0) %
Palladium ounces 4,242 4,227 0.4 % 10,580 11,680 (9.4) %
Cobalt pounds 198 115 72.2 % 786 851 (7.6) %
Gold equivalent ounces 3 119,030 135,179 (11.9) % 375,248 460,026 (18.4) %
Change in PBND and Inventory
Gold equivalent ounces 3 22,438 4,460 (17,978) 27,248 (32,368) (59,616)
Revenue $ 223,137 $ 218,836 2.0 % $ 702,573 $ 829,002 (15.3) %
Net earnings $ 116,371 $ 196,460 (40.8) % $ 369,209 $ 503,001 (26.6) %
Per share $ 0.257 $ 0.435 (40.9) % $ 0.815 $ 1.114 (26.8) %
Adjusted net earnings 1 $ 121,467 $ 93,878 29.4 % $ 368,481 $ 401,168 (8.1) %
Per share 1 $ 0.268 $ 0.208 28.8 % $ 0.814 $ 0.889 (8.4) %
Operating cash flows $ 171,103 $ 154,497 10.7 % $ 508,584 $ 571,396 (11.0) %
Per share 1 $ 0.378 $ 0.342 10.5 % $ 1.123 $ 1.266 (11.3) %
All amounts in thousands except gold, palladium & gold equivalent ounces, and per share amounts.

 

 

Financial Review

 

Revenues


Revenue in the third quarter of 2023 was $223 million (65% gold, 32% silver, 2% palladium and 1% cobalt), with the $4 million increase relative to the prior period quarter being primarily due to a 16% increase in realized commodity prices, partially offset by lower sales volumes.

 

Revenue was $703 million in the nine months ended September 30, 2023, representing a $126 million decrease from the comparable period of the previous year due primarily to an 18% decrease in the number of GEOs³ sold, resulting from lower production and relative changes in the GEOs³ produced but not yet delivered; partially offset by a 4% increase in the average realized gold equivalent³ price.

 

Cash Costs and Margin

Average cash costs¹ in the third quarter of 2023 were $418 per GEO³ as compared to $451 in the third quarter of 2022. This resulted in a cash operating margin¹ of $1,457 per GEO³ sold, an increase of 25% as compared with the third quarter of 2022, a result of the higher realized price per ounce.

 

Average cash costs¹ for the nine months ended September 30, 2023 were $427 per GEO³ as compared to $448 in the comparable period of the previous year. This resulted in a cash operating margin¹ of $1,445 per GEO³ sold, a 7% increase from the comparable period of the previous year.

 

Cash Flow from Operations

Operating cash flow in the third quarter of 2023 amounted to $171 million, with the $17 million increase due primarily to the higher realized price per GEO sold coupled with higher amounts of interest received in the third quarter of 2023.

 

Operating cash flows for the nine months ended September 30, 2023 amounted to $509 million, with the $63 million decrease from the comparable period of the previous year being due primarily to lower sales volumes, partially offset by higher amounts of interest received during the current year.

 

Balance Sheet (at September 30, 2023 )

  • Approximately $834 million of cash on hand
  • During the third quarter of 2023, the Company made total upfront cash payments of $90 million relative to the mineral stream interests consisting of
    • $70 million payment relative to the Blackwater Silver precious metals purchase agreement (“PMPA”); and
    • a $20 million payment relative to the expansion of the Blackwater Gold PMPA
  • With the existing cash on hand coupled with the fully undrawn $2 billion revolving credit facility, the Company is well positioned to fund all outstanding commitments and known contingencies as well as providing flexibility to acquire additional accretive mineral stream interests.

 

Third Quarter Operating Asset Highlights

 

Salobo: In the third quarter of 2023, Salobo produced 69,000 ounces of attributable gold, an increase of approximately 56% relative to the third quarter of 2022, driven by higher throughput, with production from the third concentrator line commencing at the end of 2022, and higher recoveries. The prior year was also affected by planned and corrective maintenance being performed. In the third quarter of 2023, Salobo reached its highest production level since the fourth quarter of 2019 as the ramp-up of the Salobo III expansion continues to advance. Salobo is expected to reach a throughput capacity of 32 Mtpa in the fourth quarter of 2023 and full throughput capacity by the end of 2024.

 

AntaminaIn the third quarter of 2023, Antamina produced 0.9 million ounces of attributable silver, a decrease of approximately 35% relative to the third quarter of 2022, primarily due to lower grades as per the mine plan.

 

PeñasquitoIn the third quarter of 2023, Peñasquito had no production resulting from a suspension of operations at the mine which began on June 7, 2023 due to a labour dispute. On October 13, 2023, Newmont Corporation (“Newmont”) reached a definitive agreement to end the strike and has since begun the safe ramp-up of operations. Newmont expects to reach full operating capacity by the end of the fourth quarter.

 

ConstanciaIn the third quarter of 2023, Constancia produced 0.7 million ounces of attributable silver and 19,000 ounces of attributable gold, an increase of approximately 24% and 164%, respectively, relative to the third quarter of 2022. Record quarterly gold production combined with strong silver production are a result of significantly higher grades from mining the high-grade zones of the Pampacancha deposit, higher recoveries and higher throughput. As per Hudbay Minerals Inc. (“Hudbay”), production is expected to continue to benefit from higher grades in the fourth quarter of 2023.

 

SudburyIn the third quarter of 2023, Vale’s Sudbury mines produced 4,300 ounces of attributable gold, an increase of approximately 24% relative to the third quarter of 2022, due to higher grades which as per Vale, were partially offset by the annual planned maintenance activities at the Sudbury and Thompson mines and mills, as well as additional maintenance at the Sudbury refinery in the third quarter.

 

Stillwater: In the third quarter of 2023, the Stillwater mines produced 2,500 ounces of attributable gold and 4,000 ounces of attributable palladium, an increase of approximately 34% for gold and 24% for palladium relative to the third quarter of 2022, due primarily to the impact on production resulting from regional flooding that occurred in the second quarter of 2022.

 

San DimasIn the third quarter of 2023, San Dimas produced 10,000 ounces of attributable gold, a decrease of approximately 15% relative to the third quarter of 2022, primarily due to lower grades, partially offset by higher throughput.

 

Voisey’s Bay:  In the third quarter of 2023, the Voisey’s Bay mine produced 183,000 pounds of attributable cobalt, a decrease of approximately 19% relative to the third quarter of 2022, primarily due to mining lower grade material during the ongoing transitional period between the depletion of the Ovoid open-pit mine and ramp-up to full production of the Voisey’s Bay underground project. Production in the third quarter was also impacted as a result of maintenance at the Long Harbour Refinery. Vale reports that physical completion of the Voisey’s Bay underground mine extension was 88% at the end of the third quarter, with Reid Brook’s bulk material handling system near mechanical completion, and the commissioning of sub-systems currently taking place. Vale achieved the first ore production from the Reid Brook deposit, the first of two underground mines to be developed in the project, in the second quarter of 2021. Eastern Deeps, the second deposit, has started to extract development ore from the deposit and is continuing its scheduled production ramp-up.

 

Other GoldIn the third quarter of 2023, total Other Gold attributable production was 700 ounces, a decrease of approximately 81% relative to the third quarter of 2022, primarily due to the closure of the Minto mine in May 2023.

 

Other Silver:  In the third quarter of 2023, total Other Silver attributable production was 1.8 million ounces, a decrease of approximately 6% relative to the third quarter of 2022, primarily due to the termination of the Yauliyacu PMPA.

 

Aljustrel:  On September 12, 2023, it was announced that as a result of low zinc prices, the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

 

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.

 

Third Quarter Development Asset Highlights

 

Blackwater Project: On July 4, 2023, Artemis announced receipt of the Fisheries Act Authorization for development of the Blackwater Project, which will facilitate the commencement of construction of water diversion structures and dams in the Davidson Creek valley which runs through the basin of the Blackwater tailings storage facility. On October 24, 2023, Artemis announced that overall construction at the Blackwater mine was 45% complete as of September 30, 2023. Project development continues to advance on the schedule, targeting first gold pour in the second half of 2024.

 

Marmato MineOn July 12, 2023, Aris Mining announced that they have received approval from the Corporación Autónoma Regional del Caldas, a regional environmental authority in Colombia, of the Environmental Management Plan, which now permits the development of the Marmato Lower Mine.

 

Marathon ProjectOn August 30, 2023, Generation Mining Limited (“Gen Mining”) received the Endangered Species Act permit issued by the Ministry of the Environment, Conservation and Parks. This permit includes conditions intended to minimize impacts to caribou and SAR bats, as well as to create an overall benefit for these species at risk. Additionally, in September 2023, Gen Mining received the Environmental Compliance Approval issued by the Ministry of Environment, Conservations and Parks for air and noise emissions for the Marathon Project, and on November 7, 2023, announced that the province of Ontario had accepted and filed the Closure Plan, representing another major milestone in the permitting process. Additional permits and approvals are expected to be received during the balance of 2023.

 

Copper World Complex: On September 8, 2023, Hudbay announced the results of the enhanced pre-feasibility study for Phase I of its 100%-owned Copper World project in Arizona. After receipt of two outstanding permits which are expected in mid-2024, Hudbay intends to complete a minority joint venture partner process prior to commencing a definitive feasibility study. The opportunity to sanction Copper World is not expected until 2025 based on current estimated timelines. With the results from this pre-feasibility study, the Company has now incorporated gold in the mineral reserves and mineral resources statement on our website.

 

Curipamba Project:  On September 11, 2023, Adventus provided an update that the Constitutional Court of Ecuador declared that processing of an unconstitutionality claim filed by the indigenous group CONAIE and other complainants against Presidential Decree 754 that regulates environmental consultation for all public and private industries and sectors in Ecuador was a priority and set a public hearing for September 18, 2023. Adventus has indicated that historically the Court can be expected to issue a resolution within two to three months following the public hearing commencement.

 

On October 2, 2023, Adventus announced that the El Domo – Curipamba project has been issued a favourable Certificate of No Affect of Water by the Ministry of Environment and Water of the Government of Ecuador. This certificate and milestone allow the planned and designed projected infrastructure construction in an area with the presence of surface and ground water sources.

 

Goose Project: On September 18, 2023, B2Gold provided a construction update on the Goose Project highlighting that the purchasing of materials and supplies needed to support the 2024 construction campaign has been completed and all materials have been provided to the ports for the 2023 sealift. Additionally, B2Gold reported that it remains on track to pour first gold in the first quarter of 2025, and that concrete and steel work in the mill area are progressing ahead of schedule.

 

Cangrejos Project

 

On October 18, 2023, Lumina Gold Corp., announced that the Cangrejos project is proceeding on schedule. Lumina has been actively executing its 2023 feasibility study drill plan with nine rigs currently at site. Lumina has signed contracts with several engineering companies for the advancement of the feasibility study. The feasibility study is expected to be completed in the first quarter of 2025.

 

Corporate Development

 

Black Pine Project

 

On September 10, 2023, the Company acquired a new 0.5% Net Smelter Royalty from Liberty Gold Corp., on the Black Pine Oxide Gold Project for total cash consideration of $4 million. Liberty Gold has been granted an option to repurchase 50% of the NSR for $4 million at any point in time up to the earlier of commercial production at Black Pine or January 1, 2030. The Company has been granted a Right of First Refusal on all royalties, streams or pre-pays that include precious metals pertaining to Black Pine. In addition, the Company made an equity investment of $5 million in Liberty Gold at C$0.34 per share.

 

Mineral Park Project

 

On October 24, 2023, the Company announced that it had entered into a PMPA with Waterton Copper in respect of silver production from the Mineral Park mine located in Arizona, USA. Under the Mineral Park PMPA, Wheaton will purchase 100% of the payable silver from Mineral Park for the life of the mine. Under the terms of the Mineral Park PMPA, the Company is committed to pay Waterton Copper total upfront cash consideration of $115 million in four payments during construction through three installments of $25 million and a final installment of $40 million. In addition, Wheaton will make ongoing payments for the silver ounces delivered equal to 18% of the spot price of silver until the value of the silver delivered, net of the production payment, is equal to the upfront consideration of $115 million, at which point the production payment will increase to 22% of the spot price of silver. The Company has also entered into a loan agreement to provide a secured debt facility of up to $25 million to the Mineral Park owner, an affiliate of Waterton Copper, once the full upfront consideration has been paid.

 

Sustainability

 

Ratings & Awards:

  • In the third quarter of 2023, Wheaton was recognized as Best Company for ESG & Sustainability and runner-up for Best Company for Climate Reporting by ESG Investing’s Corporate ESG Awards.

 

Community Investment Program:

  • In the third quarter of 2023, the Tour De Cure Presented by Wheaton attracted over 1,500 riders and raised more than $7.1 million for the BC Cancer Foundation.
  • In the third quarter of 2023, a number of new programs were established with First Majestic Silver. These include support for the operation of a community centre, improvements to a solid waste storage facility and the implementation of a recycling program, as well as the implementation and operation of wastewater treatment facilities in the community of Tayoltita. In addition, Wheaton also committed to assisting First Majestic Silver in providing internet access for several remote communities close to the mine.

 

Management Update

 

Wheaton announces management changes effective October 1, 2023, including the creation of a Chief Sustainability Officer position as well as Vice President appointments. Patrick Drouin, Wheaton’s former Senior Vice President of Sustainability and Investor Relations, has been appointed President of Wheaton International, succeeding Nik Tatarkin who although retiring from management, will remain on the Board of Wheaton International. Mr. Drouin will continue to oversee the Company’s ESG practices and performance at the executive level as President of Wheaton International and Chief Sustainability Officer.

 

Emma Murray has been appointed Vice President, Investor Relations, effective October 1, 2023, and will be primarily responsible for liaising with the investment community and ensuring the market is well-informed about Wheaton’s strategic vision, financial performance and growth prospects.

 

Simona Antolak has been appointed Vice President, Communications and Corporate Affairs, with responsibility over external and internal communications as well as sustainability matters.

 

These changes further strengthen Wheaton’s global management team.

 

About Wheaton Precious Metals Corp. and Outlook

 

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.

 

Wheaton’s estimated attributable production in 2023 is forecast to be approximately 600,000 to 660,000 GEOs, unchanged from previous guidance2,3. Due to the temporary suspension of the Peñasquito mine from June 7, 2023 to October 13, 2023, Wheaton now expects its full-year production to have a higher weighting toward gold. The Company has previously estimated that average annual production for the five-year period ending in 2027 would amount to 810,000 GEOs, while for the ten-year period ending in 2032, the Company estimated that average annual production would amount to 850,000 GEOs. The Company will provide updated longer-term guidance in normal course in the first quarter of 2024, which will incorporate the impact of recent developments and acquisitions2,3.

 

In accordance with Wheaton Precious Metals™ Corp.’s MD&A and Financial Statements, reference to the Company and Wheaton includes the Company’s wholly owned subsidiaries.

 

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 Ended
September 30
Nine Months Ended
September 30
(US dollars and shares in thousands, except per share amounts –
unaudited)
2023 2022 2023 2022
Sales $ 223,137 $ 218,836 $ 702,573 $ 829,002
Cost of sales
Cost of sales, excluding depletion $ 49,808 $ 60,955 $ 160,413 $ 205,891
Depletion 46,435 55,728 145,908 178,812
Total cost of sales $ 96,243 $ 116,683 $ 306,321 $ 384,703
Gross margin $ 126,894 $ 102,153 $ 396,252 $ 444,299
General and administrative expenses 8,606 8,360 28,922 27,448
Share based compensation 4,336 77 16,217 11,586
Donations and community investments 1,736 1,406 5,054 3,379
Impairment reversal of mineral stream interests (10,330) (10,330)
Earnings from operations $ 112,216 $ 102,640 $ 346,059 $ 412,216
Gain on disposal of mineral stream interest (104,425) (5,027) (104,425)
Other (income) expense (10,707) (2,799) (26,961) (3,448)
Earnings before finance costs and income taxes $ 122,923 $ 209,864 $ 378,047 $ 520,089
Finance costs 1,407 1,398 4,138 4,209
Earnings before income taxes $ 121,516 $ 208,466 $ 373,909 $ 515,880
Income tax expense (5,145) (12,006) (4,700) (12,879)
Net earnings $ 116,371 $ 196,460 $ 369,209 $ 503,001
Basic earnings per share $ 0.257 $ 0.435 $ 0.815 $ 1.114
Diluted earnings per share $ 0.257 $ 0.434 $ 0.814 $ 1.112
Weighted average number of shares outstanding
Basic 452,975 451,757 452,748 451,402
Diluted 453,538 452,386 453,419 452,221

 

 

Condensed Interim Consolidated Balance Sheets

 

As at
September 30
As at
December 31
(US dollars in thousands – unaudited) 2023 2022
Assets
Current assets
Cash and cash equivalents $ 833,919 $ 696,089
Accounts receivable 10,492 10,187
Cobalt inventory 2,429 10,530
Taxes receivable 5,000
Other 4,353 3,287
Total current assets $ 856,193 $ 720,093
Non-current assets
Mineral stream interests $ 5,737,454 $ 5,707,019
Early deposit mineral stream interests 47,093 46,092
Long-term equity investments 200,893 256,095
Property, plant and equipment 8,092 4,210
Other 31,790 26,397
Total non-current assets $ 6,025,322 $ 6,039,813
Total assets $ 6,881,515 $ 6,759,906
Liabilities
Current liabilities
Accounts payable and accrued liabilities $ 11,999 $ 12,570
Current taxes payable 2,763
Current portion of performance share units 9,404 14,566
Current portion of lease liabilities 590 818
Total current liabilities $ 21,993 $ 30,717
Non-current liabilities
Performance share units $ 6,222 $ 6,673
Lease liabilities 5,654 1,152
Deferred income taxes 189 165
Pension liability 4,196 3,524
Total non-current liabilities $ 16,261 $ 11,514
Total liabilities $ 38,254 $ 42,231
Shareholders’ equity
Issued capital $ 3,774,333 $ 3,752,662
Reserves (78,872) 66,547
Retained earnings 3,147,800 2,898,466
Total shareholders’ equity $ 6,843,261 $ 6,717,675
Total liabilities and shareholders’ equity $ 6,881,515 $ 6,759,906

 

 

Condensed Interim Consolidated Statements of Cash Flows

 

Three Months Ended
September 30
Nine Months Ended
September 30
(US dollars in thousands – unaudited) 2023 2022 2023 2022
Operating activities
Net earnings $ 116,371 $ 196,460 $ 369,209 $ 503,001
Adjustments for
Depreciation and depletion 46,784 56,129 147,031 180,004
Gain on disposal of mineral stream interest (104,425) (5,027) (104,425)
Impairment (reversal of impairment) of mineral stream
interests
(10,330) (10,330)
Interest expense 78 22 131 72
Equity settled stock based compensation 1,732 1,568 5,133 4,407
Performance share units – expense 2,604 (1,491) 11,084 7,179
Performance share units – paid (163) (16,675) (18,411)
Pension expense 329 291 787 720
Pension paid (116)
Income tax expense (recovery) 5,145 12,006 4,700 12,879
Loss (gain) on fair value adjustment of share purchase

warrants held

143 204 248 1,101
Investment income recognized in net earnings (10,537) (1,953) (26,564) (2,696)
Other 163 (349) 662 (440)
Change in non-cash working capital (489) 4,728 (876) (3,825)
Cash generated from operations before income taxes and interest $ 162,323 $ 152,697 $ 489,727 $ 569,236
Income taxes paid (912) (29) (5,244) (141)
Interest paid (79) (22) (112) (73)
Interest received 9,771 1,851 24,213 2,374
Cash generated from operating activities $ 171,103 $ 154,497 $ 508,584 $ 571,396
Financing activities
Credit facility extension fees $ (13) $ (1,205) $ (859) $ (1,207)
Share purchase options exercised 93 10,603 7,549
Lease payments (169) (201) (548) (603)
Dividends paid (66,994) (59,487) (198,085) (176,604)
Cash used for financing activities $ (67,083) $ (60,893) $ (188,889) $ (170,865)
Investing activities
Mineral stream interests $ (90,710) $ (46,675) $ (210,944) $ (107,476)
Early deposit mineral stream interests (250) (750) (1,000) (1,500)
Mineral royalty interest (3,602) (3,602)
Net proceeds on disposal of mineral stream interests (139) 46,400 (139)
Acquisition of long-term investments (5,006) (13,181) (22,768)
Proceeds on disposal of long-term investments 202
Dividends received 700 102 1,617 322
Other (35) (69) (1,804) (194)
Cash used for investing activities $ (98,903) $ (47,531) $ (182,312) $ (131,755)
Effect of exchange rate changes on cash and cash equivalents $ (35) $ (81) $ 447 $ (203)
Increase in cash and cash equivalents $ 5,082 $ 45,992 $ 137,830 $ 268,573
Cash and cash equivalents, beginning of period 828,837 448,626 696,089 226,045
Cash and cash equivalents, end of period $ 833,919 $ 494,618 $ 833,919 $ 494,618

 

Summary of Units Produced

 

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Gold ounces produced ²
Salobo 69,045 54,804 43,677 37,939 44,212 34,129 44,883 48,235
Sudbury 3 4,266 5,818 6,203 5,270 3,437 5,289 5,362 4,379
Constancia 19,003 7,444 6,905 10,496 7,196 8,042 6,311 9,857
San Dimas 4 9,995 11,166 10,754 10,037 11,808 10,044 10,461 13,714
Stillwater 5 2,454 2,017 1,960 2,185 1,833 2,171 2,497 2,664
Other
Marmato 673 639 457 533 542 778 477 479
         777 6 3,509 4,003 4,462
Minto 1,292 3,063 2,567 3,050 2,480 4,060 3,506
Total Other 673 1,931 3,520 3,100 3,592 6,767 8,540 8,447
Total gold ounces produced 105,436 83,180 73,019 69,027 72,078 66,442 78,054 87,296
Silver ounces produced 2
Peñasquito 7 1,744 2,076 1,761 2,017 2,089 2,219 2,145
Antamina 864 960 851 1,067 1,327 1,330 1,210 1,309
Constancia 697 420 552 655 564 584 506 578
Other
Los Filos 28 28 28 14 21 35 42 37
Zinkgruvan 785 374 632 664 642 739 577 482
Neves-Corvo 486 407 436 369 323 345 344 522
Aljustrel 327 279 343 313 246 292 287 325
Cozamin 165 184 141 157 179 169 186 213
Marmato 11 7 8 9 7 7 11 7
Yauliyacu 8 261 463 756 637 382
Stratoni 9 129
Minto 14 29 33 33 26 45 44
Keno Hill 10 48 20 30
         777 6 80 91 96
Total Other 1,802 1,293 1,617 1,820 1,914 2,497 2,240 2,267
Total silver ounces produced 3,363 4,417 5,096 5,303 5,822 6,500 6,175 6,299
Palladium ounces produced ²
Stillwater 5 4,006 3,880 3,705 3,869 3,229 3,899 4,488 4,733
Cobalt pounds produced ²
Voisey’s Bay 183 152 124 128 226 136 234 381
GEOs produced 11 154,800 145,797 144,000 142,887 153,025 155,932 164,911 177,490
Average payable rate 2
Gold 95.5 % 95.1 % 95.1 % 94.9 % 95.1 % 95.1 % 95.2 % 96.0 %
Silver 79.0 % 83.2 % 82.3 % 83.6 % 85.8 % 85.9 % 86.3 % 86.2 %
Palladium 93.6 % 94.1 % 96.0 % 91.7 % 95.0 % 94.6 % 92.7 % 92.2 %
Cobalt 93.3 % 93.3 % 93.3 % 93.3 % 93.3 % 93.3 % 93.3 % 93.3 %
GEO 11 90.8 % 90.4 % 89.3 % 89.3 % 90.4 % 90.4 % 90.7 % 91.5 %
1) All figures in thousands except gold and palladium ounces produced.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures and payable rates are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures and payable rates may be updated in future periods as additional information is received.
3) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
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. For reference, attributable silver production from prior periods is as follows: Q3 2023 – 387,000 ounces; Q2 2023 – 423,000 ounces; Q1 2023 – 401,000 ounces; Q4 2022 – 348,000 ounces; Q3 2022 – 412,000 ounces; Q2 2022 – 382,000 ounces; Q1 2022 – 408,000 ounces; Q4 2021 – 544,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced.
7) There was a temporary suspension of operations at Peñasquito due to a labour strike which ran from June 7, 2023 to October 13, 2023.
8) On December 14, 2022 the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million.
9) The Stratoni mine was placed into care and maintenance during Q4-2021.
10) On September 7, 2022, the Company terminated the Keno Hill PMPA in exchange for $141 million of Hecla common stock.
11) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.

 

Summary of Units Sold 

 

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021
Gold ounces sold
Salobo 44,444 46,030 35,966 41,029 31,818 48,515 42,513 47,171
Sudbury 2 4,836 4,775 4,368 4,988 5,147 7,916 3,712 965
Constancia 12,399 9,619 6,579 6,013 6,336 7,431 10,494 6,196
San Dimas 9,695 11,354 10,651 10,943 10,196 10,633 10,070 15,182
Stillwater 3 1,985 2,195 2,094 1,783 2,127 2,626 2,628 2,933
Other
Marmato 792 467 480 473 719 781 401 423
777 275 153 126 785 3,098 3,629 4,388 4,290
Minto 701 2,341 2,982 2,559 2,806 3,695 2,462
Total Other 1,067 1,321 2,947 4,240 6,376 7,216 8,484 7,175
Total gold ounces sold 74,426 75,294 62,605 68,996 62,000 84,337 77,901 79,622
Silver ounces sold
Peñasquito 453 1,913 1,483 2,066 1,599 2,096 2,188 1,818
Antamina 794 963 814 1,114 1,155 1,177 1,468 1,297
Constancia 435 674 366 403 498 494 644 351
Other
Los Filos 30 37 34 16 24 41 42 17
Zinkgruvan 714 370 520 547 376 650 355 346
Neves-Corvo 245 132 171 80 105 167 204 259
Aljustrel 142 182 205 156 185 123 145 133
Cozamin 139 150 119 150 154 148 177 174
Marmato 11 7 7 7 8 11 8 8
Yauliyacu 337 1,005 817 44 551
Stratoni (2) 133 42
Minto 7 29 23 22 21 31 27
Keno Hill 1 1 30 30 27 24
777 2 2 35 73 75 87 69
Total Other 1,283 887 1,086 1,352 1,982 2,081 1,253 1,650
Total silver ounces sold 2,965 4,437 3,749 4,935 5,234 5,848 5,553 5,116
Palladium ounces sold
Stillwater 3 4,242 3,392 2,946 3,396 4,227 3,378 4,075 4,641
Cobalt pounds sold
Voisey’s Bay 198 265 323 187 115 225 511 228
GEOs sold 4 119,030 138,835 117,383 138,218 135,179 165,766 159,082 152,826
Cumulative payable units PBND 5
Gold ounces 99,923 73,403 69,479 62,602 65,978 59,331 81,365 84,989
Silver ounces 1,071 1,325 2,065 1,606 2,287 2,438 2,693 3,042
Palladium ounces 5,607 6,122 5,751 5,098 5,041 6,267 5,535 5,629
Cobalt pounds 376 250 285 257 402 280 550 596
GEO 4 123,086 99,084 104,749 91,001 104,623 99,895 127,257 135,964
Inventory on hand
Cobalt pounds 155 310 398 633 556 582 410 657
1) All figures in thousands except gold and palladium ounces sold.
2) Comprised of the Coleman, Copper Cliff, Garson, Creighton and Totten gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.
5) 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.

 

Results of Operations

 

The operating results of the Company’s reportable operating segments are summarized in the tables and commentary below.

 

Three Months Ended September 30, 2023
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 69,045 44,444 $ 1,944 $ 420 $ 330 $ 86,395 $ 53,026 $ 67,710 $ 2,341,485
Sudbury 4 4,266 4,836 1,950 400 1,204 9,428 1,669 7,494 268,224
Constancia 19,003 12,399 1,944 419 316 24,102 14,991 18,906 86,555
San Dimas 9,995 9,695 1,944 631 260 18,846 10,216 12,732 147,638
Stillwater 2,454 1,985 1,944 349 510 3,859 2,154 3,167 212,650
Other 5 673 1,067 1,945 368 391 2,077 1,266 1,684 557,035
105,436 74,426 $ 1,944 $ 444 $ 381 $ 144,707 $ 83,322 $ 111,693 $ 3,613,587
Silver
Peñasquito 453 $ 23.82 $ 4.43 $ 4.06 $ 10,804 $ 6,952 $ 8,795 $ 278,028
Antamina 864 794 23.82 4.81 7.06 18,915 9,496 15,097 527,227
Constancia 697 435 23.82 6.18 6.24 10,360 4,958 7,674 183,736
Other 6 1,802 1,283 23.62 5.15 2.64 30,293 20,301 19,439 549,641
3,363 2,965 $ 23.73 $ 5.10 $ 4.57 $ 70,372 $ 41,707 $ 51,005 $ 1,538,632
Palladium
Stillwater 4,006 4,242 $ 1,251 $ 223 $ 459 $ 5,307 $ 2,416 $ 4,361 $ 222,154
Platinum
Marathon $ n.a. $ n.a. $ n.a. $ $ $ $ 9,450
Cobalt
Voisey’s Bay 183 198 $ 13.87 $ 3.66 ⁷ $ 12.98 $ 2,751 $ (551) $ 4,235 $ 353,631
Operating results $ 223,137 $ 126,894 $ 171,294 $ 5,737,454
Other
General and administrative $ (8,606) $ (6,321)
Share based compensation (4,336)
Donations and community investments (1,736) (1,750)
Finance costs (1,407) (1,078)
Other 10,707 9,870
Income tax (5,145) (912)
Total other $ (10,523) $ (191) $ 1,144,061
$ 116,371 $ 171,103 $ 6,881,515
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) 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 Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.
6) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.
7) Cash cost per pound of cobalt sold during the third quarter of 2023 was net of a previously recorded inventory write-down of $0.1 million, resulting in a decrease of $0.51 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

 

On a gold equivalent basis, results for the Company for the three months ended September 30, 2023 were as follows:

 

Three Months Ended September 30, 2023
Ounces
Produced 1
Ounces
Sold
Average
Realized
Price
($’s Per
Ounce)
Average
Cash Cost
($’s Per
Ounce) 2
Cash
Operating
Margin
($’s Per
Ounce) 
3
Average
Depletion
($’s Per
Ounce)
Gross
Margin
($’s Per
Ounce)
Gold equivalent basis 4 154,800 119,030 $    1,875 $    418 $    1,457 $    390 $    1,067
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.

 

 

 

Three Months Ended September 30, 2022
Units
Produced²
Units
Sold
Average
Realized
Price
($’s
Per Unit)
Average
Cash Cost
($’s Per
Unit) 3
Average
Depletion
($’s Per
Unit)
Sales Impairment
Reversals /
Gain on

Disposal 4

Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo 44,212 31,818 $ 1,724 $ 416 $ 334 $ 54,860 $ $ 31,000 $ 41,617 $ 2,396,952
Sudbury 5 3,437 5,147 1,745 400 1,092 8,984 1,303 5,943 288,863
Constancia 7,196 6,336 1,724 415 271 10,925 6,578 8,295 97,213
San Dimas 11,808 10,196 1,724 624 260 17,579 8,567 11,213 158,704
Stillwater 1,833 2,127 1,724 317 429 3,667 2,080 2,992 216,617
Other 6 3,592 6,376 1,743 694 59 11,113 6,311 5,562 461,359
72,078 62,000 $ 1,728 $ 474 $ 353 $ 107,128 $ $ 55,839 $ 75,622 $ 3,619,708
Silver
Peñasquito 2,017 1,599 $ 19.30 $ 4.36 $ 3.57 $ 30,857 $ $ 18,182 $ 23,885 $ 301,040
Antamina 1,327 1,155 19.30 3.75 7.06 22,287 9,798 17,951 553,231
Constancia 564 498 19.30 6.12 6.35 9,613 3,398 6,563 195,507
Other 7 1,914 1,982 18.93 7.51 6.84 37,513 114,755 123,823 21,896 538,739
5,822 5,234 $ 19.16 $ 5.59 $ 5.84 $ 100,270 $ 114,755 $ 155,201 $ 70,295 $ 1,588,517
Palladium
Stillwater 3,229 4,227 $ 2,091 $ 353 $ 399 $ 8,838 $ $ 5,657 $ 7,344 $ 228,168
Platinum
Marathon $ n.a. $ n.a. $ n.a. $ $ $ $ $ 9,425
Cobalt
Voisey’s Bay 226 115 $ 22.68 $ 7.21 $ 13.63 $ 2,600 $ $ 211 $ 7,352 $ 361,238
Operating results $ 218,836 $ 114,755 $ 216,908 $ 160,613 $ 5,807,056
Other
General and administrative $ (8,360) $ (5,342)
Share based compensation (77) (163)
Donations and community investments (1,406) (1,410)
Finance costs (1,398) (1,020)
Other 2,799 1,848
Income tax (12,006) (29)
Total other $ (20,448) $ (6,116) $ 780,539
$ 196,460 $ 154,497 $ 6,587,595
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
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.
6) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

 

On a gold equivalent basis, results for the Company for the three months ended September 30, 2022 were as follows:

 

Three Months Ended September 30, 2022
Ounces
Produced 1
Ounces
Sold
Average
Realized
Price
($’s Per
Ounce)
Average
Cash Cost
($’s Per
Ounce) 2
Cash
Operating
Margin
($’s Per
Ounce) 
3
Average
Depletion
($’s Per
Ounce)
Gross
Margin
($’s Per
Ounce)
Gold equivalent basis 4 153,025 135,179 $    1,619 $    451 $    1,168 $    412 $    756
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.

 

 

 

Nine Months Ended September 30, 2023
Units
Produced²
Units
Sold
Average
Realized
Price
($’s
Per Unit)
Average
Cash Cost
($’s Per
Unit) 3
Average
Depletion
($’s Per
Unit)
Sales Gain on
Disposal 4
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo 167,526 126,440 $ 1,947 $ 420 $ 330 $ 246,219 $ $ 151,287 $ 193,063 $ 2,341,485
Sudbury 5 16,287 13,979 1,953 400 1,087 27,295 6,512 21,420 268,224
Constancia 33,352 28,597 1,948 417 316 55,718 34,751 43,779 86,555
San Dimas 31,915 31,700 1,945 628 260 61,657 33,535 41,762 147,638
Stillwater 6,431 6,274 1,945 347 510 12,201 6,824 10,026 212,650
Other 6 6,124 5,335 1,935 1,119 172 10,324 3,439 4,090 557,035
261,635 212,325 $ 1,947 $ 465 $ 369 $ 413,414 $ $ 236,348 $ 314,140 $ 3,613,587
Silver
Peñasquito 3,820 3,849 $ 23.63 $ 4.43 $ 4.06 $ 90,967 $ $ 58,268 $ 73,915 $ 278,028
Antamina 2,675 2,571 23.65 4.69 7.06 60,812 30,625 48,765 527,227
Constancia 1,669 1,475 23.75 6.15 6.24 35,034 16,750 25,962 183,736
Other 7 4,712 3,256 23.44 5.58 2.82 76,316 5,027 53,966 55,364 549,641
12,876 11,151 $ 23.60 $ 5.05 $ 4.68 $ 263,129 $ 5,027 $ 159,609 $ 204,006 $ 1,538,632
Palladium
Stillwater 11,591 10,580 $ 1,410 $ 255 $ 440 $ 14,922 $ $ 7,565 $ 12,223 $ 222,154
Platinum
Marathon $ n.a. $ n.a. $ n.a. $ $ $ $ $ 9,450
Cobalt
Voisey’s Bay 458 786 $ 14.13 $ 3.36 ⁸ $ 13.63 $ 11,108 $ $ (2,243) $ 13,056 $ 353,631
Operating results $ 702,573 $ 5,027 $ 401,279 $ 543,425 $ 5,737,454
Other
General and administrative $ (28,922) $ (29,702)
Share based compensation (16,217) (16,675)
Donations and community investments (5,054) (4,896)
Finance costs (4,138) (3,147)
Other 26,961 24,823
Income tax (4,700) (5,244)
Total other $ (32,070) $ (34,841) $ 1,144,061
$ 369,209 $ 508,584 $ 6,881,515
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) The gain on disposal of Other silver interests relates to the gain on the buyback of 33% of the Goose PMPA.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon, Curipamba and Cangrejos gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama, Copper World Complex, Blackwater and Curipamba silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.
8) Cash cost per pound of cobalt sold during the nine months ended September 30, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $2.05 per pound of cobalt sold. The Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the inventory at each reporting period.

 

 

On a gold equivalent basis, results for the Company for the nine months ended September 30, 2023 were as follows:

 

Nine Months Ended September 30, 2023
Ounces
Produced 1
Ounces
Sold
Average
Realized
Price
($’s Per
Ounce)
Average
Cash Cost
($’s Per
Ounce) 2
Cash
Operating
Margin
($’s Per
Ounce) 
3
Average
Depletion
($’s Per
Ounce)
Gross
Margin
($’s Per
Ounce)
Gold equivalent basis 4 444,597 375,248 $    1,872 $    427 $    1,445 $    389 $    1,056
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) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
3) Refer to discussion on non-IFRS measure (iv) at the end of this press release.
4) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.

 

 

 

Nine Months Ended September 30, 2022
Units
Produced²
Units
Sold
Average
Realized
Price
($’s
Per Unit)
Average
Cash Cost
($’s Per
Unit) 
3
Average
Depletion
($’s Per
Unit)
Sales Impairment
Reversals /
Gain on
Disposal 
4
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo 123,224 122,846 $ 1,834 $ 416 $ 334 $ 225,267 $ $ 133,146 $ 174,134 $ 2,396,952
Sudbury 5 14,088 16,775 1,828 400 1,091 30,673 5,657 22,980 288,863
Constancia 21,549 24,261 1,833 413 271 44,480 27,886 34,463 97,213
San Dimas 32,313 30,899 1,823 622 260 56,335 29,095 37,114 158,704
Stillwater 6,501 7,381 1,829 330 429 13,503 7,902 11,070 216,617
Other 6 18,899 22,076 1,829 734 45 40,388 23,183 22,912 461,359
216,574 224,238 $ 1,831 $ 471 $ 348 $ 410,646 $ $ 226,869 $ 302,673 $ 3,619,708
Silver
Peñasquito 6,325 5,883 $ 22.21 $ 4.36 $ 3.57 $ 130,686 $ $ 84,058 $ 105,036 $ 301,040
Antamina 3,867 3,800 22.13 4.42 7.06 84,093 40,479 66,952 553,231
Constancia 1,654 1,636 22.15 6.09 6.34 36,227 15,883 26,260 195,507
Other 7 6,651 5,316 21.41 7.14 5.61 113,823 114,755 160,768 75,969 538,739
18,497 16,635 $ 21.93 $ 5.43 $ 5.29 $ 364,829 $ 114,755 $ 301,188 $ 274,217 $ 1,588,517
Palladium
Stillwater 11,616 11,680 $ 2,190 $ 383 $ 399 $ 25,574 $ $ 16,437 $ 21,099 $ 228,168
Platinum
Marathon $ n.a $ n.a $ n.a $ $ $ $ $ 9,425
Cobalt
Voisey’s Bay 596 851 $ 32.85 $ 6.24 $ 9.49 $ 27,953 $ $ 14,560 $ 24,412 $ 361,238
Operating results $ 829,002 $ 114,755 $ 559,054 $ 622,401 $ 5,807,056
Other
General and administrative $ (27,448) $ (28,688)
Share based compensation (11,586) (18,411)
Donations and community investments (3,379) (2,977)
Finance costs (4,209) (3,107)
Other 3,448 2,319
Income tax (12,879) (141)
Total other $ (56,053) $ (51,005) $ 780,539
$ 503,001 $ 571,396 $ 6,587,595
1) Units of gold, silver and palladium produced and sold are reported in ounces, while cobalt is reported in pounds. All figures in thousands except gold and palladium ounces produced and sold and per unit amounts.
2) Quantity produced represent the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) at the end of this press release.
4) Relates to the termination of the Keno Hill PMPA.
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.
6) Comprised of the operating Minto, 777 and Marmato gold interests as well as the non-operating Copper World Complex, Santo Domingo, Blackwater, Fenix, Goose, Marathon and Curipamba gold interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.
7) Comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, 777, Marmato and Cozamin silver interests, the non-operating Stratoni, Loma de La Plata, Copper World Complex, Pascua-Lama, Blackwater and Curipamba silver interests and the previously owned Keno Hill and Yauliyacu silver interests. On June 22, 2022, Hudbay announced that mining activities at 777 have concluded and closure activities have commenced. On September 7, 2022, the Keno Hill PMPA was terminated in exchange for $141 million of Hecla common stock. On December 14, 2022 the Yauliyacu PMPA was terminated in exchange for a cash payment of $132 million. On May 13, 2023, Minto announced the suspension of operations at the Minto mine. On September 12, 2023, it was announced that the production of zinc and lead concentrates at Aljustrel will be halted from September 24, 2023 until the second quarter of 2025.

 

 

On a gold equivalent basis, results for the Company for the nine months ended September 30, 2022 were as follows:

 

Nine Months Ended September 30, 2022
Ounces
Produced 1
Ounces
Sold
Average
Realized
Price
($’s Per
Ounce)
Average
Cash Cost
($’s Per
Ounce) 2
Cash
Operating
Margin
($’s Per
Ounce) 
3
Average
Depletion
($’s Per
Ounce)
Gross
Margin
($’s Per
Ounce)
Gold equivalent basis 4 473,868 460,026 $    1,802 $    448 $    1,354 $    389 $    965
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, which are provided to assist the reader, are based on the following commodity price assumptions: $1,850 per ounce gold; $24.00 per ounce silver; $1,800 per ounce palladium; and $18.75 per pound cobalt; consistent with those used in estimating the Company’s production guidance for 2023.

 

Posted November 10, 2023

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