Wheaton Precious Metals
- Wheaton Precious Metals is one of the largest precious metals streaming companies in the world
- The company generates its revenue primarily from the sale of precious metals such as gold, silver, platinum and cobalt.
- Wheaton currently has streaming agreements for 23 operating mines and 13 development stage projects.
Wheaton Precious Metals (NYSE: WPM, TSX: WPM) is one of the largest precious metals streaming companies in the world which generates its revenue primarily from the sale of precious metals such as gold, silver, platinum, and cobalt.
Wheaton Precious Metals Enters Into Agreement To Terminate Its Existing Silver Stream On The Yauliyacu Mine
August 18, 2022; Wheaton Precious Metals™ Corp. is announcing that it has entered into a definitive agreement with certain subsidiaries of Glencore plc ("Glencore") (LSE: GLEN) to terminate its silver stream on the Yauliyacu Mine in Peru for a cash payment of US$150 million, less the aggregate value of any deliveries to Wheaton of silver produced in 2022 prior to closing. Wheaton has agreed to terminate the stream in order to help facilitate the sale by Glencore of the Yauliyacu Mine.
Wheaton acquired the silver stream on the Yauliyacu Mine in 2006 for an upfront consideration of US$285 million and has subsequently generated over US$485 million in cash flow from the stream. Combined with the termination payment, Wheaton will have generated an absolute return of over 220% of the original investment.
Second Quarter 2022 Results
August 11, 2022; Wheaton Precious Metals Announces Second Quarter Results For 2022
- Over $300 million in revenue and $206 million in operating cash flow, resulting in a cash balance of $449 million and no debt as at June 30, 2022.
- $149 million in adjusted net earnings
- Announced the proposed termination of the Keno Hill precious metal purchase agreement ("PMPA") for $135 million.
- Subsequent to the quarter, Wheaton added a sustainability-linked element in connection with the extension to its existing undrawn US$2 billion revolving credit facility.
- Recognized as one of the Best 50 Corporate Citizens in Canada by Corporate Knights.
- Declared quarterly dividend of $0.15 per common share, consistent with the comparable period in 2021.
Revenue was $303 million in the second quarter of 2022 representing an 8% decrease from the second quarter of 2021 due primarily to a 5% decrease in the average realized gold equivalent price; and a 3% decrease in the number of GEO sold.
Revenue was $610 million in the six months ended June 30, 2022, representing a 7% decrease from the comparable period of the previous year due primarily to a 4% decrease in the number of gold equivalent ounces sold; and a 3% decrease in the average realized gold equivalent price.
Cash Costs and Margin
Average cash costs in the second quarter of 2022 were $440 per GEO as compared to $444 in the second quarter of 2021. This resulted in a cash operating margin of $1,338 per GEO sold, a decrease of 6% as compared with the second quarter of 2021.
Average cash costs for the six months ended June 30, 2022 were $431 per GEO as compared to $451 in the comparable period of the previous year. This resulted in a cash operating margin of $1,383 per GEO sold, a decrease of 3% as compared with the comparable period of the previous year.
Wheaton Precious Metals is one of the largest precious metals streaming companies in the world. The Company has entered into agreements to purchase all or a portion of the precious metals or cobalt production from high-quality mines for an upfront payment and an additional payment upon delivery of the metal. Wheaton currently has streaming agreements for 23 operating mines and 13 development stage projects. The Company’s production profile is driven by a portfolio of low-cost, long-life assets, including a gold stream on Vale’s Salobo mine, and a silver stream on Newmont's Peñasquito mine.
Streaming allows Wheaton to purchase generally by-product precious metals or cobalt production from a mine that it does not own or operate in exchange for an upfront payment plus an additional payment upon delivery of each ounce or pound. The operating costs that Wheaton pays for future production are pre-determined in the agreements with a small inflationary adjustment in most contracts. This amount offsets its partners’ typical cost to produce the silver, gold, palladium or cobalt.
Mineral Stream Interests
|MINERAL STREAM INTERESTS||MINER OWNER||LOCATION OF MINE||UPFRONT CONSIDERATION||ATTRIBUTABLE PRODUCTION TO BE PURCHASED||TERM OF AGREEMENT||DATE OF ORIGINAL CONTRACT|
|San Dimas||First Majestic||Mexico||$220,000||Variable||LOM||10-May-18|
|Los Filos||Equinox||Mexico||$4,463||100%||25 years||15-Oct-04|
|Loma de La Plata||Pan American||Argentina||$43,289||12.50%||LOM|
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