Wheaton Precious Metals Corp.
Wheaton Precious Metals Corp.
Suite 3500 - 1021 West Hastings St.
Suite 3500 - 1021 West Hastings St.
Vancouver, BC Canada V6E 0C3
Vancouver, BC Canada V6E 0C3
T: 1 604 684 9648
T: 1 604 684 9648
F: 1 604 684 3123
F: 1 604 684 3123
ANNUAL
ANNUAL
REPORT
REPORT
2023
2023
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Corporate InformationDIRECTORSGeorge Brack, ChairJaimie DonovanPeter GillinChantal GosselinJeane HullGlenn IvesCharles JeannesMarilyn SchonbernerRandy SmallwoodOFFICERSRandy SmallwoodPresident & Chief Executive OfficerCurt BernardiSenior Vice President, Legal & Corporate SecretaryGary BrownSenior Vice President & Chief Financial OfficerHaytham HodalySenior Vice President, Corporate DevelopmentTRANSFER AGENTTSX Trust Company1600 – 1066 West Hastings StreetVancouver, BC V6E 3X1Toll-free in Canada & USA:1 800 387 0825Outside of Canada & USA:1 416 682 3860Email: shareholderinquiries@tmx.comAUDITORSDeloitte LLPVancouver, CanadaINVESTOR CONTACTEmma MurrayVice President, Investor RelationsTelephone: 1 604 684 9648Toll Free: 1 844 288 9878Email: info@wheatonpm.comWheaton Precious Metals is a trademark of Wheaton Precious Metals Corp. in Canada, the United States and certain other jurisdictions.The Premier Precious Metals InvestmentWheaton 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. The company 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.CANADA – HEAD OFFICEWheaton Precious Metals Corp.Suite 35001021 West Hastings StreetVancouver, BC V6E 0C3CanadaT: 1 604 684 9648F: 1 604 684 3123Toronto Stock Exchange: WPMNew York Stock Exchange: WPMLondon Stock Exchange: WPMStock ExchangeListing:CAYMAN ISLANDS OFFICEWheaton Precious MetalsInternational Ltd.Suite 300, 94 Solaris AvenueCamana BayP.O. Box 1791 GT, Grand CaymanCayman Islands KY1-1109 Letter from the President
& Chief Executive Officer
As Wheaton celebrates its twentieth anniversary in 2024,
I am proud to reflect on the positive impact of precious
metals streaming on the mining industry over the past two
decades. Streaming capital has supported the building and
expansion of top tier mines around the world with Wheaton
accounting for over $11 billion1 of total streaming transactions
since our start 20 years ago.
>$11B
of total streaming
transactions since inception
Our goal of maintaining a strong, sustainable business
model that provides benefits to all of our stakeholders
has been integral to our success. At Wheaton, we believe
that attaining a social license to operate should be the
responsibility of all stakeholders with a vested interest. The
mining industry needs the full support of local communities,
business and governments more than ever to supply the
metals we need for the future.
With this growing recognition of the necessity for the
commodities our industry produces, there has never been
a more exciting time in the sector, and in our corporate
history. We intend to achieve strong organic growth over the
next five years grounded in sustainably run operations. I am
delighted to reflect on some of the highlights from 2023
and share our vision for the year ahead.
Markets & Financial Performance
Our diversified portfolio of long-life, low-cost assets delivered
solid operating results in 2023, despite the temporary
suspension of our second largest asset, Peñasquito, due to
a labour dispute, which has since been resolved. We are
pleased to have met our annual production guidance with
619,600 gold equivalent ounces (“GEOs”) produced.
619,600
GEOs produced
Last year, I anticipated that 2023 would be the year gold
would reach even greater heights and it did not disappoint.
Even with high interest rates and a strong US dollar, we
ended the year with record gold prices driven primarily by
central bank purchasing, suggesting a foundation of true,
underlying strength. While gold was up 15% year over year,
Wheaton’s share price appreciated 25%2, further supporting
our belief that we provide investors with one of the best
vehicles for investing in the precious metals space.
Wheaton’s leverage to commodity prices coupled
with our solid production base resulted in revenue of
over $1 billion, $751 million in cash flow from operations
and $272 million distributed in dividends back to our
shareholders in 2023. We ended the year with a
cash balance of $547 million putting us in a strong
position to continue to take advantage of additional
streaming opportunities.
In addition, we are pleased to announce a transition to a new
progressive dividend policy, marked by growth in our 2024
annual dividend. Under our new policy, Wheaton’s payout
ratio is expected to remain one of the highest within the
entire precious metals space.
Accretive Growth
While a progressive dividend serves as a testament to
our confidence in the company’s growth trajectory and
our commitment to returning value to shareholders, our
preferred avenue for capital allocation continues to be
growth through accretive acquisitions. Our corporate
development team has been exceptionally busy on this front
for some time now, reflected by the transactions we closed
last year. While staying innovative and nimble to market
trends, we have operated with a steadfast commitment
to integrity, which has been a key factor in attracting
exceptional mining partners.
In 2023, we announced more acquisitions than ever before in a
single year concluding eight transactions and just over $1 billion
in commitments, further enhancing our production pipeline and
contributing to our long-term growth forecast of approximately
40% over the next five years. With the majority of capital
commitments to be made upon completion of various stages of
construction, Wheaton is well protected in the event of project
delays, and continues to maintain one of the strongest balance
sheets in the industry.
Our recent acquisitions include a gold stream on Lumina
Gold’s Cangrejos Project; a silver stream on Waterton
Copper’s Mineral Park Project; gold, palladium and platinum
streams on Ivanhoe Mines’ Platreef Project—our first foray
into Africa; gold and silver streams on BMC Minerals’ Kudz
Ze Kayah Project; and, a gold stream on Dalradian Gold’s
Curraghinalt Project. We are excited to welcome our new
mining partners and look forward to supporting them as
they advance these projects.
1 US$11.65B of streaming agreements excludes streams sold back
2 On the New York Stock Exchange (NYSE:WPM)
Wheaton Precious Metals | 2023 Annual Report
Mines of the Future
Over the years, our portfolio of development assets has
been steadily growing with a number of projects currently
in construction. Slated for near-term production are the
Blackwater, Platreef and Goose projects. These are just a
few examples from our portfolio of significantly de-risked
development stage assets that are being advanced and built
with the support of streaming.
With interest rates remaining high and lack of support in
the equity market, there continues to be a strong appetite
for streaming capital, particularly from single asset,
development companies, who require funding to get
these projects into construction. We remain focused on
acquiring accretive precious metals streaming and royalty
opportunities, principally from base metal operations.
While we look forward to a time when the debt and equity
markets are more open for junior mining companies, until
then, we expect there to be more opportunities to finance
development stage projects and we are prepared to step
up to support the industry in advancing these critical
resources into production.
As evidenced by repeat streaming transactions and the
ongoing support of our partners, I firmly believe that
Wheaton is the partner of choice for streaming agreements
for a number of reasons. Primarily, our emphasis on cultivating
strong relationships and our mantra that we are only as
successful as our partners. In addition, our efficient processes
and well-respected technical team enable us to review any
opportunity in a timely manner and provide access to capital
expeditiously once an asset and partner satisfy our strict
due diligence stress tests on technical, financial, legal, and
environmental, social and governance (“ESG”) performance.
Finally, we seek flexible stream structures that create a win-
win situation for all parties.
While we remain receptive to adapting stream structures
to benefit our partners, certain elements of our business
model are essential when establishing new streams, with
a goal of safeguarding our investments and upholding the
interests of our shareholders. This includes the emphasis we
have on attaining security arrangements, including corporate
guarantees over the underlying asset in the event of
challenging economic circumstances, as well as the financial
support we offer all of our mining partners for their social
and environmental initiatives in the communities impacted
by the mining operation. A corporate guarantee as well as
our community investment programs are important levers
for protecting ourselves against geopolitical risks and other
issues that can impact a mining operation.
In 2023, we achieved another exciting milestone whereby
we have now recouped over 100% of the value of our initial
upfront investments since inception. We view ourselves as
stewards of capital who are entrusted to invest in assets that
will deliver value back to our shareholders. I am very confident
that these recent acquisitions will do just that—deliver value to
not only our shareholders but also to our mining partners and
neighbours in the surrounding communities.
>100%
of initial upfront investments
since inception recouped
Diversified, High-Quality Portfolio
As stakeholders in the mining industry, maintaining a
diversified portfolio of assets is important for several reasons.
Primarily, it serves to mitigate risks and offset any potential
operational challenges at any given asset while also presenting
opportunities for growth throughout all phases of the mining
cycle. Our portfolio is diversified by commodity, operator,
region and stage. With the latest acquisitions, we are now
partnered with over 30 mining companies on both operating
mines and development projects on nearly every continent
with exposure to gold, silver, palladium, platinum and cobalt.
We experienced the benefit of this diversified portfolio
in 2023, when strong outperformances from Salobo and
Constancia offset headwinds faced by other assets, enabling
us to achieve production levels well within our initially
projected range for the year.
A significant contributor to Wheaton’s projected growth is
our flagship asset, Salobo in Brazil. During the fourth quarter of
2023, the mine’s ongoing reliability, efficiency, and operational
excellence was evidenced by the successful completion of the
throughput test for the first phase of the Salobo III expansion
project. The Salobo mine historically had a mill throughput
capacity of 24 million tonnes per annum (“Mtpa”), and having
now exceeded throughput capacity of 32 Mtpa, is ramping up
to full capacity of 36 Mtpa.
In the third quarter of 2023, we were fortunate to host an analyst
tour of the Constancia mine in Peru alongside our partner,
Hudbay Minerals, highlighting the company’s impressive
successes both at the operational level, with the incorporation
of the Pampacancha pit and Constancia Norte pit extension into
the mine plan, and at the community level. Wheaton has long
invested in various community programs around Constancia,
and Hudbay’s consistent approach to community engagement
has proved successful. Their strong relationships with the
neighboring communities near Constancia positions Hudbay
well for future value creation.
Wheaton Precious Metals | 2023 Annual Report
Creating Long-term Value
Celebrating Two Decades of Streaming
Sustainability has been a core value at Wheaton since our
inception 20 years ago and fundamental to our ability to
create long-term value for our stakeholders. We continue to
be leaders in this space with the publication of our inaugural
Climate Change Report last year. I am also incredibly proud
to be recognized by third-party rating agencies on our
performance in this area, including being ranked among
Corporate Knights’ 2024 100 Most Sustainable Corporations
in the world, recognized as Best Company for ESG &
Sustainability (Metals & Mining) by ESG Investing’s Corporate
ESG Awards and being top-rated by MSCI, Sustainalytics and
ISS ESG. These are significant accolades; however, we will not
rest on our laurels and are continuously looking to improve
our practices and policies.
Given the majority of Wheaton’s precious metals production
is a by-product of base metal operations, we are uniquely
positioned to meaningfully contribute to the energy
transition. As one of the most attractive ways to finance
project development, streaming often greatly improves
the internal rate of return on future mines. This allows mine
operators to go into production and help meet the growing
demand for much-needed critical minerals.
>$6.8 M
contributed in community
investment funds in 2023
Our Community Investment Program is another example of
how streaming truly unlocks value for all stakeholders. Since
inception, we have contributed over $45 million in community
investment funding and in 2023 alone, we contributed over
$6.8 million to over 100 different charitable initiatives around
the world in collaboration with our mining partners and
through community partners.
One of the cornerstones of Wheaton’s Community
Investment Program is our relationship with Vale and the
Vale Foundation. Since 2015, in partnership with the Vale
Foundation, we have supported over 20 different projects
that contribute to the social development of communities
near the Salobo mine including programs focused on public
education, basic health, income-generating opportunities
and poverty reduction initiatives. Together with our mining
partners, we are demonstrating how mining can enhance the
lives of individuals, communities and broader society, leaving
a positive legacy for future generations.
As we celebrate two decades of remarkable growth and
achievement at Wheaton, I am profoundly grateful for the
partnerships we have forged over the years, the incredible
talent within our organization and the strong support of our
shareholders. Together, we have provided the industry with
an innovative solution to project finance that unlocks value
for all stakeholders.
I believe gold and precious metals will maintain their
historical role in providing investors with a sense of security,
especially during times of geopolitical instability. Whether
it be as a strategic allocation for wealth preservation or
as a tactical investment for portfolio diversification, gold’s
inherent qualities make it an indispensable component of
any portfolio.
I recently completed a three-year term as Chair of the
World Gold Council and one of the initiatives that I am
particularly enthused by is the digitalization of gold trading.
This technological advancement in gold trading is the boost
the commodity needs to significantly drive interest and
improve its liquidity. It is only a matter of time before the
rest of the world catches on to gold’s role as a constant
store of value critical to our financial stability.
In closing, Wheaton’s high-quality portfolio of assets, sector-
leading growth profile and commitment to sustainability
provide our shareholders with a solid outlook for the future
and one of the best vehicles for investing in the gold and
precious metals space. I am sincerely thankful to all of our
stakeholders for being part of Wheaton’s success over the
past 20 years and look forward to a bright future ahead.
RANDY SMALLWOOD,
President & CEO
March 14, 2024
Wheaton Precious Metals | 2023 Annual Report
Part 1: Management’s
Discussion & Analysis
Management’s Discussion and Analysis of Results of Operations and Financial Condition for the Year Ended
December 31, 2023
This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with Wheaton Precious Metals
Corp.’s (“Wheaton” or the “Company”) consolidated financial statements for the year ended December 31, 2023 and
related notes thereto which have been prepared in accordance with International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Reference to Wheaton or the Company
includes the Company’s wholly-owned subsidiaries. This MD&A contains “forward-looking” statements that are
subject to risk factors set out in the cautionary note contained on page 73 of this MD&A as well as throughout this
document. All figures are presented in United States dollars unless otherwise noted. This MD&A has been prepared
as of March 14, 2024.
Table of Contents
Overview ........................................................................................................................................................................ 3
Highlights ....................................................................................................................................................................... 5
Outlook ........................................................................................................................................................................... 7
Mineral Stream Interests ................................................................................................................................................ 8
Mineral Royalty Interests .............................................................................................................................................. 13
Long-Term Equity Investments .................................................................................................................................... 13
Summarized Financial Results ..................................................................................................................................... 16
Summary of Units Produced ........................................................................................................................................ 17
Summary of Units Sold ................................................................................................................................................ 18
Quarterly Financial Review ......................................................................................................................................... 19
Results of Operations and Operational Review............................................................................................................ 20
Liquidity and Capital Resources ................................................................................................................................... 33
Share Capital ............................................................................................................................................................... 42
Financial Instruments ................................................................................................................................................... 43
Risks and Uncertainties ............................................................................................................................................... 43
Critical Accounting Estimates ....................................................................................................................................... 57
Future Changes to Accounting Policies ....................................................................................................................... 59
Non-IFRS Measures .................................................................................................................................................... 60
Subsequent Events ...................................................................................................................................................... 64
Controls and Procedures ............................................................................................................................................. 64
Attributable Reserves and Resources .......................................................................................................................... 65
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [2]
Operational Overview
Units produced
Gold ounces
Silver ounces
Palladium ounces
Cobalt pounds
Gold equivalent ounces 2
Units sold
Gold ounces
Silver ounces
Palladium ounces
Cobalt pounds
Gold equivalent ounces 2
Change in PBND and Inventory 3
Gold ounces
Silver ounces
Palladium ounces
Cobalt pounds
Gold equivalent ounces 2
Per unit metrics
Sales price
Q4 2023
Q4 2022
Change
2023
2022
Change
113,359
4,208
4,209
215
174,222
115,011
3,175
3,339
288
162,360
69,027
5,303
3,869
128
142,887
68,996
4,935
3,396
187
138,218
64.2 %
(20.6)%
374,585
17,176
8.8 % 15,800
67.5 % 673
619,608
21.9 %
66.7 %
(35.7)%
327,336
14,326
(1.7)% 13,919
54.0 % 1,074
537,608
17.5 %
285,601
23,800
15,485
724
616,755
293,234
21,570
15,076
1,038
598,244
31.2 %
(27.8)%
2.0 %
(7.1)%
0.5 %
11.6 %
(33.6)%
(7.7)%
3.5 %
(10.1)%
(7,179)
313
1,059
(87)
(2,973)
(3,491)
(468)
58
(68)
(10,191)
29,205
3,688
(781)
(196)
(1,001) 1,568
19 (446)
23,674
(7,218)
(21,706) (50,911)
(1,090) (894)
(531) (2,099)
(363) 83
(40,033) (63,707)
Gold per ounce
Silver per ounce
Palladium per ounce
Cobalt per pound
Gold equivalent per ounce 2
$
$
$
$
$
Cash costs 4
Gold per ounce 4
$
Silver per ounce 4
$
Palladium per ounce 4
$
Cobalt per pound 4, 5
$
Gold equivalent per ounce 2, 4 $
Cash operating margin 4
2,006 $
23.77 $
1,070 $
12.92 $
1,931 $
437 $
5.02 $
198 $
3.14 $
417 $
1,725
21.52
1,939
22.62
1,708
475
5.00
357
16.52
447
16.3 % $
10.5 % $
(44.8)% $
(42.9)% $
13.1 % $
8.0 % $
(0.4)% $
44.5 % $
81.0 % $
6.7 % $
1,968 $
23.64 $
1,329 $
13.81 $
1,890 $
455 $
5.05 $
241 $
3.30 $
424 $
1,806
21.84
2,133
31.00
1,780
472
5.33
377
8.10
447
Total revenue
Gold revenue
Silver revenue
Palladium revenue
Cobalt revenue
Gold per ounce 4
1,250
1,569 $
$
Silver per ounce 4
16.52
18.75 $
$
Palladium per ounce 4
1,582
872 $
$
Cobalt per pound 4
6.10
9.78 $
$
Gold equivalent per ounce 2, 4 $
1,261
1,514 $
236,051
313,471 $
$
119,051
230,716 $
$
$
106,175
75,465 $
$ 3,574 $ 6,586
$ 3,716 $ 4,239
166,125
168,435 $
$
0.367
0.372 $
$
103,744
164,569 $
$
0.229
0.363 $
$
172,028
242,226 $
$
0.381
0.535 $
$
67,950 $
$
67,797
0.15 $
$
Per share 4
Per share 4
Dividends paid ⁶
Per share
Net earnings
Per share
Adjusted net earnings 4
Operating cash flows
0.15
1,513 $
18.59 $
1,088 $
10.51 $
1,466 $
1,334
25.5 % $
16.51
13.5 % $
1,756
(44.9)% $
22.90
60.3 % $
1,333
20.1 % $
1,016,045 $ 1,065,053
32.8 % $
644,131 $ 529,698
93.8 % $
(28.9)% $
338,594 $ 471,003
(45.7)% $ 18,496 $ 32,160
(12.3)% $ 14,824 $ 32,192
1.4 % $ 537,644 $ 669,126
1.4 % $
1.482
533,051 $ 504,912
58.6 % $
1.118
58.5 % $
750,809 $ 743,424
40.8 % $
40.4 % $
1.646
271,744 $ 270,946
0.2 % $
0.60
0.0 % $
1.177 $
1.187 $
1.658 $
0.60 $
9.0 %
8.2 %
(37.7)%
(55.5)%
6.2 %
3.6 %
5.3 %
36.1 %
59.3 %
5.1 %
13.4 %
12.6 %
(38.1)%
(54.1)%
10.0 %
(4.6)%
21.6 %
(28.1)%
(42.5)%
(54.0)%
(19.6)%
(19.9)%
5.6 %
5.3 %
1.0 %
0.7 %
0.3 %
0.0 %
1) All amounts in thousands except gold and palladium ounces produced and sold, per ounce amounts and per share amounts.
2) Gold-equivalent ounces ("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.
3) Represents the increase (decrease) in payable ounces produced but not delivered (“PBND”) relative to the various mines that the Company derives precious metal from and,
for cobalt, the increase (decrease) of payable pounds PBND and inventory on hand. Payable units PBND will be recognized in future sales as they are delivered to the
Company under the terms of their contracts. Payable ounces PBND to Wheaton is expected to average approximately two to three months of annualized production for both
gold and palladium and two months for silver but may vary from quarter to quarter due to a number of factors, including mine ramp-up and the timing of shipments. Please
see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated with this information.
4) Refer to discussion on non-IFRS measures beginning on page 60 of this MD&A.
5) Cash cost per pound of cobalt sold during the fourth quarter of 2023 was net of a previously recorded inventory write-down of $0.02 million (twelve months - $1.6 million),
resulting in a decrease of $0.08 per pound of cobalt sold (twelve months - $0.91 per pound sold). Cash cost per pound of cobalt sold during the fourth quarter of 2022
includes an inventory write-down of $1.6 million (twelve months - $1.6 million), resulting in an increase of $8.71 per pound sold (twelve months - $1.60 per pound sold). The
inventory which was written down in 2022 was fully sold during 2023, and no further inventory write down was required during 2023. 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.
6) Dividends declared in the referenced calendar quarter, relative to the financial results of the prior quarter. As at December 31, 2023, cumulative dividends of $2,066 million
have been declared and paid by the Company.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [4]
Highlights
Operations
•
For the three months ended December 31, 2023, relative to the comparable period of the prior year:
o Production amounted to 174,200 gold equivalent ounces ("GEOs"), an increase of 22% relative to the
comparable period of the prior year, with gold production increasing 64% primarily due to the mill
throughput expansion at Salobo which achieved the highest production levels since the fourth quarter of
2019, partially offset by a 20% decrease in silver production attributable primarily to the labour strike at
Peñasquito, the divestment of the Yauliyacu PMPA, the closure of the Minto mine and the temporary
suspension of attributable production from Aljustrel.
o Sales volumes amounted to 162,360 GEO's, an increase of 17% relative to the comparable period of
the prior year, with the higher production levels being partially offset by relative changes in PBND.
o Revenue increased 33% or $77 million to $313 million (74% gold, 24% silver, 1% palladium and 1%
cobalt), with the increase being primarily due to a 13% increase in realized commodity prices and higher
sales volumes resulting from the higher production, partially offset by relative changes in PBND.
o Gross margin amounted to $177 million, representing an increase of $56 million.
o Net earnings amounted to $168 million, an increase of $2 million, with the higher gross margin in Q4-
2023 being offset by the results for Q4 2022 reflecting a $51 million gain relating to the disposal of the
Yauliyacu PMPA.
o Adjusted net earnings increased 59% or $61 million to $165 million, with the increase being due
primarily to the higher gross margin.
o Operating cashflow amounted to $242 million, with the $70 million increase being due primarily to the
higher gross margin and higher interest income on the Company’s cash balances.
•
For the year ended December 31, 2023 relative to the comparable period of the prior year:
o Production amounted to 619,600 GEOs, comparable to the prior year, with increased production from
Salobo due to the mill throughput expansion and Constancia due to the mining of the high-grade zones
of the Pampacancha deposit being offset by the cessation of production from Yauliyacu, 777, Keno Hill
and Minto, the mining of lower grade material at Antamina and the labour strike at Peñasquito.
o Revenue amounted to $1,016 million (63% gold, 34% silver, 2% palladium and 1% cobalt), with the $49
million decrease being primarily due to a 10% decrease in sales volumes resulting from relative
changes in PBND partially offset by a 6% increase in realized commodity prices.
o Gross margin amounted to $573 million, representing an increase of $8 million.
o Net earnings amounted to $538 million, a decrease of $131 million primarily due to the prior year results
reflecting $156 million of income relating to the disposal of the Yauliyacu and Keno Hill PMPAs.
o Adjusted net earnings amounted to $533 million, with the $28 million increase being due primarily to the
higher gross margin and higher interest income on the Company’s cash balances.
o Operating cashflow amounted to $751 million, with the $7 million increase being due primarily to the
higher interest income on the Company’s cash balances.
• On March 14, 2024, the Board of Directors declared a dividend in the amount of $0.155 per common share.
Corporate Development
• On May 16, 2023, the Company entered into a PMPA with Lumina Gold Corp., (“Lumina”) in respect to the
Cangrejos Project (“Cangrejos”) located in Ecuador.
• On June 14, 2023, the Company amended the Blackwater Gold PMPA, increasing the amount of attributable
gold it is entitled to under the contract.
• On September 10, 2023, the Company acquired a new 0.5% Net Smelter Royalty (“NSR”) from Liberty Gold
Corp., (“Liberty Gold”) on the Black Pine Oxide Gold Project (“Black Pine”).
• On October 24, 2023, the Company entered into a PMPA with Waterton Copper Corp. (“Waterton Copper”)
in respect of silver production from the Mineral Park Mine located in Arizona, USA.
• On November 15, 2023, the Company entered into a definitive agreement with certain entities advised by
Orion Resource Partners (“Orion”) to acquire existing PMPAs in respect of Ivanhoe Mines’ Platreef Project
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [5]
(the “Platreef PMPA”) and BMC Minerals’ Kudz Ze Kayah Project (the “Kudz Ze Kayah PMPA”) (the “Orion
Purchase Agreement”). Closing of the Orion Purchase Agreement occurred on February 27, 2024.
• On November 15, 2023, the Company entered into a PMPA with Dalradian Gold in respect of gold
production from the Curraghinalt project located in Northern Ireland, United Kingdom.
• On November 21, 2023, the Company along with Vale announced the successful completion of the
throughput test for the first phase of the Salobo III expansion project in Brazil.
• On December 13, 2023, the Company entered into a 1% Gross Revenue Royalty with Vista Gold Corp.
(“Vista”) on the Mt Todd gold project located in Northern Territory, Australia.
Other
• On April 12, 2023, B2Gold Corp. (“B2Gold”) completed its acquisition of all the issued and outstanding
common shares of Sabina Gold & Silver Corp. (“Sabina”), and in conjunction with this acquisition, B2Gold
exercised the option to acquire 33% of the stream under the Goose PMPA, resulting in a gain on partial
disposal of the Goose PMPA in the amount of $5 million.
• During the fourth quarter of 2023:
o The Company made its quarterly dividend payment of $67 million.
o The Company made total upfront cash payments of $452 million relative to the Blackwater PMPA
($45 million), Cangrejos PMPA ($17 million), the newly acquired Curraghinalt PMPA ($20 million)
and the Salobo III expansion payment ($370 million).
• During 2023:
o The Company made four quarterly dividend payments totaling $265 million.
o The Company made total upfront cash payments of $664 million relative to the Blackwater PMPA
($181 million), the Cangrejos PMPA ($29 million), the Goose PMPA ($63 million), the newly
acquired Curraghinalt PMPA ($20 million) and the Salobo III expansion payment ($370 million).
o The Company received $46 million from the partial disposition of the Goose PMPA.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [6]
Outlook1
Wheaton's estimated attributable production in 2024, the estimated attributable gold equivalent production in 2028, as
well as the estimated 5-year average annual gold equivalent production for 2029 to 2033, is as follows:
Metal
2023
Actual
Production1,2
2024
Production
Guidance
2028
Target
Production
Guidance2,3
2029-2033
Average Annual
Production
Guidance2,3
Gold Ounces
Silver Ounces (‘000s)
Other Metals (GEOs)
Gold Equivalent Ounces3
374,585
17,176
12,275
584,389
325,000 to 370,000
18,500 to 20,500
12,000 to 15,000
550,000 to 620,000
Over 800,000
Over 850,000
It is important to note that as gold outperformed all other metals during 2023, the assumed metal prices for 2024 results
in lower gold equivalency calculations in 2024 compared to 2023.
2024 Production Outlook
For 2024, gold equivalent production is forecast to be consistent with 2023, as expected stronger attributable
production from Peñasquito and Voisey’s Bay is forecast to be offset by lower production from Salobo, the
suspension of operations at Minto, and the temporary halting of production at Aljustrel. Attributable production is
forecast to increase at Peñasquito as a result of uninterrupted operations, and at Voisey’s Bay due to the ongoing
transition from the Ovoid pit to the underground mines. Attributable production is forecast to decrease slightly at
Salobo due to lower grades as per the mine plan, which are expected to partially offset increasing throughput as the
Salobo III mine expansion project continues toward completion. In addition, the Company anticipates production from
the Blackwater project to commence in the fourth quarter of 2024.
On May 13, 2023, it was announced that operations at the Minto Mine had been suspended, and the Yukon
Government had assumed care and control of the site. On September 12, 2023, it was announced that as a result of
low zinc prices, the production of zinc and lead concentrates at the Aljustrel Mine would be halted from September
24, 2023, until the second quarter of 2025. Combined, the removal of production from Minto and Aljustrel accounts for
a 25,000 GEO3 reduction in 2024 production guidance.
Long-Term Production Outlook
Production is forecast to increase by approximately 40% over the next five years to over 800,000 GEOs2 by 2028,
primarily due to growth from operating assets including Salobo, Antamina, Peñasquito, Voisey’s Bay and Marmato;
development projects which are in-construction and/or permitted including Platreef, Blackwater, Goose, Mineral Park,
Fenix, Curipamba and Santo Domingo; and pre-development projects including Marathon and Copper World, for
which production is anticipated towards the latter end of the five-year forecast period.
From 2029 to 2033, attributable production is forecast to average over 850,000 GEOs2,3 in the five-year period and
incorporates additional incremental production from pre-development assets including the Cangrejos, Kudz ze Kayah,
Curraghinalt, Victor and Kutcho projects, in addition to the Brewery Creek, Black Pine and Mt. Todd royalties.
Not included in Wheaton’s long-term forecast and instead classified as ‘optionality’, includes potential future
production from Pascua Lama, Navidad, Toroparu, Cotabambas, Metates, DeLamar and additional expansions at
Salobo outside of the Salobo III mine expansion project.
Liquidity
From a liquidity perspective, the $547 million of cash and cash equivalents as at December 31, 2023 combined with
the liquidity provided by the available credit under the $2 billion revolving term loan (“Revolving Facility”) and ongoing
operating cash flows positions the Company well to fund all outstanding commitments and known contingencies as
well as providing flexibility to acquire additional accretive mineral stream interests.
1 Statements made in this section contain forward-looking information with respect to forecast production, funding outstanding
commitments and continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may
vary. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important
disclosure associated with this information.
2 Ounces produced represent the quantity of silver, gold, palladium and cobalt contained in concentrate or doré prior to smelting or
refining deductions. Gold equivalent forecast production for 2024 and the longer-term outlook are based on the following updated
commodity price assumptions: $2,000 per ounce gold, $23 per ounce silver, $1,000 per ounce palladium, $950 per ounce of
platinum and $13.00 per pound cobalt. For purposes of comparison, 2023 actual production numbers have been adjusted to reflect
2024 commodity price assumptions.
3 Historically, Wheaton has provided 5 and 10-year averages for its long-term guidance, however the company has elected to
introduce a 5-year target (2028), in addition to an annual average for years 6 through 10 (i.e. 2029-2033), with a goal of providing
increased granularity and further transparency of our expected growth profile
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [7]
Mineral Stream Interests
The following table summarizes the mineral stream interests currently owned by the Company:
Total Upfront Consideration
Mineral Stream
Interests
Mine
Owner ¹ Location¹
Production
Payment
Per
Unit 2,3
Attributable
Production
Paid to
Dec 31 2023 3 To be Paid 1, 2
Total ³
Cash Flow
Generated to
Date ³
Units
Received &
Sold to Date ³
Q4-2023
Inventory &
PBND 3, 4
Term ¹
Gold
Salobo
Sudbury ⁵
Constancia
San Dimas
Stillwater ⁷
Other
Minto
Vale
Vale
Hudbay
BRA
CAN
PER
75%
70%
50%
FM
MEX
variable ⁶
Sibanye
USA
100%
$425
$ 3,429,360 $ - $ 3,429,360 $ 2,164,365 1,969,276 63,042
LOM
$400
$420
$631
18%
623,572
135,000
220,000
237,880
-
-
-
-
623,572
135,000
220,000
237,880
289,099 278,470 10,625 20 years ⁵
220,964 177,803 9,947
LOM
256,299 237,261 2,610
LOM
82,358 59,757 5,193
LOM
MNTO
CAN
100% ⁸
50%
47,283 - 47,283
230,824 231,091 8,231
LOM
Copper World
Hudbay
USA
100%
$450 - 39,100 39,100 - - -
LOM
Marmato ⁹
Aris
CO
10.5% ⁹
18%
45,400 117,600 163,000 11,080 7,292 119
LOM
Santo Domingo Capstone
CHL
100% ¹⁰
18%
30,000 260,000 290,000 - - -
LOM
Fenix
Rio2
Blackwater
Artemis
Curipamba
Adventus
CHL
CAN
ECU
6% ¹¹
8% ¹²
18%
25,000 25,000 50,000 - - -
LOM
35%
340,000 - 340,000 - - -
LOM
50% ¹³
18% 10,117 118,787 128,904 - - -
LOM
Marathon
Gen Mining
CAN
100% ¹⁴
18% 21,857 105,852 127,709 - - -
LOM
Goose
B2Gold
CAN
2.78% ¹⁵
18%
83,750 - 83,750 - - -
LOM
Cangrejos
Lumina
ECU
6.6% ¹⁶
18%
28,700 271,300 300,000 - - -
LOM
Platreef
Ivanhoe
SA
62.5% ¹⁷
$100 - 275,300 275,300 - - - LOM ¹⁷
Curraghinalt
Dalradian
UK
3.05% ¹⁸
18%
20,000 55,000 75,000 - - -
LOM
Kudz Ze Kayah
BMC
CAN 6.875% ¹⁹
20% - 13,860 13,860 - - -
LOM
$ 5,297,919 $ 1,281,799 $ 6,579,718 $ 3,254,989 2,960,950 99,767
Silver
Peñasquito
Newmont
MEX
25% $4.50
$ 485,000 $ - $ 485,000 $ 1,388,944 80,087 479
LOM
Antamina
Constancia
Other
Los Filos
Zinkgruvan
Stratoni
Neves-Corvo
Aljustrel
Minto
Glencore
PER 33.75% ²⁰
20%
Hudbay
PER
100%
$6.20
900,000
294,900
-
-
900,000
294,900
685,783 44,224 526
LOM
225,924 17,209 334
LOM
Equinox
Lundin
Eldorado
Lundin
Almina
MEX
SWE
GRC
PRT
100%
$4.68
4,463 - 4,463
40,466 2,184 31 25 years ²¹
100%
$4.68
77,866 - 77,866
495,029 33,264 163
LOM
100%
$11.54 57,500 - 57,500 155,868 10,378 -
LOM
100%
$4.46
35,350 - 35,350 162,128 9,589 150 50 years ²²
PRT
100% ²³
$0.50 2,451 - 2,451 48,804 4,273 1 50 years ²²
MNTO
CAN
100%
$4.39 7,522 - 7,522 28,995 1,646 35
LOM
Pascua-Lama
Barrick CHL/ARG
25%
$3.90
625,000 - 625,000
372,767 19,775 -
LOM
Copper World
Hudbay
PAAS
USA
ARG
100%
$3.90 - 190,900 190,900 - - -
LOM
12.5%
$4.00 10,788 32,400 43,188 - - -
LOM
Aris
CO
100% ⁹
18%
7,600 4,400 12,000 2,400 122 5
LOM
Navidad
Marmato ⁹
Cozamin
Capstone
Blackwater
Artemis
Curipamba
Adventus
MEX
CAN
ECU
50% ²⁴
10%
150,000 - 150,000 39,548 1,862 93
LOM
50% ¹²
18%
140,800 - 140,800 - - -
LOM
75% ¹³
18%
3,648 42,948 46,596 - - -
LOM
Mineral Park
Waterton
US
100%
18% - 115,000 115,000 - 2,149 -
LOM
Kudz Ze Kayah
BMC
CAN 6.875% ¹⁹
20% - 24,640 24,640 - - -
LOM
$ 2,802,888 $ 410,288 $ 3,213,176 $ 3,646,656 226,762 1,817
Palladium
Stillwater ⁷
Platreef
Platinum
Marathon
Platreef
Cobalt
Sibanye
USA
4.5% ²⁵
18%
$ 262,120 $ - $ 262,120 $ 148,840 97,788 6,666
LOM
Ivanhoe
SA
5.25% ¹⁷
30% - 78,700 78,700 - - - LOM ¹⁷
$ 262,120 $ 78,700 $ 340,820 $ 148,840 97,788 6,666
Gen Mining
CAN
22% ¹⁴
18%
$ 9,367 $ 45,365 $ 54,732 $ - - -
LOM
Ivanhoe
SA
5.25% ¹⁷
30% - 57,500 57,500 - - - LOM ¹⁷
$ 9,367 $ 102,865 $ 112,232 $ - - -
Voisey's Bay
Vale
CAN
42.4% ²⁶
18%
$ 390,000 $ - $ 390,000 $ 46,936 2,998 445
LOM
Total PMPAs Currently Owned
Terminated / Matured PMPAs
$ 8,762,294 $ 1,737,452 $ 10,499,746 $ 7,097,421
1,303,697 - $ 1,303,697 3,117,152
Total
$ 10,065,991 $ 1,737,452 $ 11,803,443 $ 10,214,573
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [8]
1) Abbreviations as follows: FM = First Majestic Silver Corp; MNTO = Minto Metals Corp.; PAAS = Pan American Silver Corp; ARG = Argentina; BRA = Brazil; CAN =
Canada; CHL = Chile; CO = Colombia; ECU = Ecuador; GRC = Greece; MEX = Mexico; PER = Peru; PRT = Portugal; SA = South Africa; SWE = Sweden; USA = United
States; UK = United Kingdom; and LOM = Life of Mine.
2) Please refer to the section entitled “Contractual Obligations and Contingencies – Mineral Stream Interests” on page 37 of this MD&A for more information.
3) All figures in thousands except gold and palladium ounces and per ounce amounts. The total upfront consideration paid to date excludes closing costs and capitalized
interest, where applicable. Please refer to the section entitled “Other Contractual Obligations and Contingencies” on page 39 of this MD&A for details of when the
remaining upfront consideration is forecasted to be paid.
4) Payable gold, silver, palladium and cobalt PBND are based on management estimates. These figures may be updated in the future as additional information is received.
The figure for cobalt comprises a combination of PBND and Inventory. Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks,
assumptions and important disclosure associated with this information.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests. As of
December 31, 2023, the Company has received approximately $289 million of operating cash flows from the Sudbury stream. Should the market value of gold delivered to
Wheaton through the 20-year term of the contract, net of the per ounce cash payment, be lower than the initial $670 million refundable deposit, the Company will be
entitled to a refund of the difference at the conclusion of the term. The term of the Sudbury PMPA ends on May 11, 2033.
6) The original San Dimas SPA, entered into on October 15, 2004, was terminated on May 10, 2018 and concurrently the Company entered into the new San Dimas PMPA.
Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to
25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio
decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such
time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. The current ratio is 70:1.
7) Comprised of the Stillwater and East Boulder gold and palladium interests.
8) The Company is entitled to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter. On May 13, 2023, Minto Metals Corp. announced the
suspension of operations at the Minto mine.
9) Once the Company has received 310,000 ounces of gold and 2.15 million ounces of silver under the Marmato PMPA, the attributable gold and silver production will be
reduced to 5.25% and 50%, respectively.
10) Once the Company has received 285,000 ounces of gold under the Santo Domingo PMPA, the Company’s attributable gold production will be reduced to 67%.
11) Once the Company has received 90,000 ounces of gold under the Fenix PMPA, the attributable gold production will reduce to 4% until 140,000 ounces have been
delivered, after which the stream drops to 3.5%.
12) Once the Company has received 464,000 ounces of gold under the amended Blackwater Gold PMPA, the attributable gold production will be reduced to 4%. Once the
Company has received 17.8 million ounces of silver under the Blackwater Silver PMPA, the attributable silver production will be reduced to 33%.
13) Once the Company has received 145,000 ounces of gold under the Curipamba PMPA, the attributable gold production will be reduced to 33%, and once the Company has
received 4.6 million ounces of silver, the attributable silver production will be reduced to 50%.
14) Once the Company has received 150,000 ounces of gold and 120,000 ounces of platinum under the Marathon PMPA, the attributable gold and platinum production will be
reduced to 67% and 15%.
15) During Q2-2023, B2Gold completed its acquisition of all the issued and outstanding common shares of Sabina, and in conjunction with this acquisition B2Gold exercised
the option to acquire 33% of the stream under the Goose PMPA in exchange for a cash payment in the amount of $46 million, resulting in a gain on partial disposal of the
Goose PMPA in the amount of $5 million. In connection with the exercise of the option, once the Company has received 87,100 ounces of gold under the Goose PMPA,
the Company’s attributable gold production will be 1.44%, and once the Company has received 134,000 ounces of gold under the agreement, the Company’s attributable
gold production will be reduced to 1.0%.
16) Once Wheaton has received 700,000 ounces of gold under the Cangrejos PMPA, the Company’s attributable gold production will be reduced to 4.4%.
17) Once the Company has received 218,750 ounces of gold under the Platreef Gold PMPA, the attributable gold production will reduce to 50% until 428,300 ounces have
been delivered, after which the stream drops to 3.125%. Under the Platreef Palladium and Platinum PMPA, once the Company has received 350,000 ounces of combined
palladium and platinum, the attributable palladium and platinum production will reduce to 3% until 485,115 ounces have been delivered, after which the stream drops to
0.1% of the payable palladium and platinum production. If certain thresholds are met, including if production through the Platreef project concentrator achieves 5.5 million
tonnes per annum (“Mtpa”), the 3.125% residual gold stream and the 0.1% residual palladium and platinum stream will terminate. Under the Platreef Gold PMPA,
Sandstorm Gold Ltd. (which acquired Nomad Royalty Ltd. on August 15, 2022) (“Sandstorm”) is entitled to purchase 37.5% of payable gold. The decrease in the
percentage of payable metal that Wheaton will be entitled to purchase is conditional on delivery of the total amount of payable gold to all purchasers (Wheaton and
Sandstorm combined). The values set out herein pertain only to Wheaton’s share of the payable gold.
18) Once the Company has received 125,000 ounces of gold under the Curraghinalt PMPA, the Company’s attributable gold production will be reduced to 1.5%.
19) Under the Kudz Ze Kayah PMPA, the Company will be entitled to purchase staged percentages of produced gold and produced silver ranging from 6.875% to 7.375% until
330,000 ounces of gold and 43.30 million ounces of silver are produced and delivered, thereafter reducing to a range of 5.625% to 6.125% until a further 59,800 ounces of
gold and 7.96 million ounces of silver are produced and delivered, further reducing to a range of 5% to 5.5% until a further 270,200 ounces of gold and 35.34 million
ounces of silver are produced and delivered for a total of 660,000 ounces of gold and 86.6 million ounces of silver and thereafter ranging between 6.25% and 6.75%.
20) Once Wheaton has received 140 million ounces of silver under the Antamina PMPA, the Company’s attributable silver production will be reduced to 22.5%.
21) The term of the Los Filos PMPA ends on October 15, 2029.
22) The term of the Neves-Corvo and Aljustrel PMPAs ends on June 5, 2057.
23) Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine. On September 12, 2023, it was announced that the
production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the second quarter of 2025.
24) Once Wheaton has received 10 million ounces of silver under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33%.
25) Once the Company has received 375,000 ounces of palladium under the Stillwater PMPA, the Company’s attributable palladium production will be reduced to 2.25%, and
once the Company has received 550,000 ounces of palladium under the agreement, the Company’s attributable palladium production will be reduced to 1%.
26) Once the Company has received 31 million pounds of cobalt under the Voisey’s Bay PMPA, the Company’s attributable cobalt production will be reduced to 21.2%.
27) On November 15, 2023, the Company entered into a purchase agreement with certain entities advised by Orion to acquire the existing Platreef and KZK PMPAs (the
“Orion Purchase Agreement”). Closing of the Orion Purchase Agreement occurred on February 27, 2024.
Updates on the Operating Mineral Stream Interests
Salobo – Mill Throughput Expansion
On November 21, 2023, Vale S.A. (“Vale”) reported the successful completion of the throughput test for the first
phase of the Salobo III project, with the Salobo complex exceeding an average of 32 million tonnes per annum
(“Mtpa”) over a 90-day period. Under the terms of the agreement, the Company paid Vale $370 million for the
completion of the first phase of the Salobo III expansion project on December 1, 2023. Salobo III is expected to
achieve a sustained throughput capacity of 36 Mtpa in the fourth quarter of 2024.
Voisey’s Bay – Underground Mine Extension
Vale reports that physical completion of the Voisey’s Bay underground mine extension was 92% at the end of the
fourth quarter, and that the main surface assets are completed and already operating. The electromechanical
assembly on the remaining surface assets are well advanced (above 60% physical progress). In the underground
portion, the scope in Reid Brook is completed and the project is fully focused on Eastern Deeps. The mine
development is concluded, and construction is ongoing.
Peñasquito – Restart of Operations
On June 8, 2023, Newmont Corporation (“Newmont”) reported that it had suspended operations at the Peñasquito
mine due to a labour dispute effective June 7, 2023. On October 13, 2023, Newmont reached a definitive agreement
with the union to end the strike and has since safely ramped up operations at the mine.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [9]
Antamina – Approval of the Modification of the Environmental Impact Study
On February 15, 2024, Peru’s National Environmental Certification Service for Sustainable Investments approved,
after a detailed evaluation process, the Modification of the Environmental Impact Study, which will allow for the
extension of Antamina’s mine life from 2028 to 2036.
Updates on the Development Stage Mineral Stream Interests
Copper World Complex
On September 8, 2023, Hudbay Minerals Inc., (“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, Wheaton has now incorporated gold in the 2023
mineral reserves and mineral resources statement in this MD&A.
Marmato Mine
On July 12, 2023, Aris Mining Corporation (“Aris Mining”) announced that they have received approval from the
Corporación Autónoma Regional del Caldas (“Corpocaldas”), a regional environmental authority in Colombia, of the
Environmental Management Plan (“PMA”) which now permits the development of the Marmato Lower Mine. On
January 16, 2024, Aris Mining provided an update that the Marmato Lower Mine construction commenced in
September 2023. On March 6, 2024, Aris Mining provided an update that construction at the Marmato Lower Mine
has ramped up with initial access roads completed, the lead contractor for portal and decline development selected,
and tenders for key items for the new processing plant underway. First gold pour is expected in late 2025.
Fenix
On July 5, 2022, Rio2 Limited (“Rio2”) announced that the Regional Evaluation Commission has voted for not
approving the Environmental Impact Assessment (“EIA”) for the Fenix project. On September 7, 2022, Rio2 further
announced that it had identified numerous discrepancies with the factual and procedural matters in the Environmental
Qualification Resolution (“RCA”), resulting in the filing of an administrative appeal on August 31, 2022. In parallel with
the administrative appeal process, Rio2 indicated that they will work closely with regional authorities to address any
remaining concerns.
On December 20, 2023, Rio2 reported that it had been successful in being granted approval of its EIA, allowing Rio2
to advance the Fenix project through statutory permitting, financing, and the currently planned recommencement of
construction activities during 2024.
Blackwater
On December 15, 2023, Artemis Gold Inc., (“Artemis”) announced that it has completed its first draw of $150 million
under its $360 million project loan facility announced on March 1, 2023. Artemis also states that construction of
Blackwater remains on track and these funds will be allocated to continue to fund construction towards completion.
On January 30, 2024, Artemis announced that overall construction was 59% complete. On February 21, 2024,
Artemis announced the results of an expansion study to optimize the timing of mine expansion through the advancing
of Phase 2. A decision on the acceleration of the Phase 2 expansion is expected to be considered in the second half
of 2024.
Curipamba
On September 11, 2023, Adventus Mining Corporation (“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 November 17, 2023, Adventus announced that the Court has issued a ruling that
declared Decree 754 to be unconstitutional in form. The ruling expressly revokes the temporary suspension of the
Decree and indicates that the Decree will remain in-effect until the assembly passes a new law regulating the
consultation process.
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. On December 27, 2023, Adventus announced that the Ministry of
Environment, Water and Ecological Transition of Ecuador has completed the final consultation phase of the
environmental consultation process for the El Domo – Curipamba project on December 15, 2023. Following the
presentation of the updated environmental management plan, the community participants deliberated and then voted
in favour of issuing the environmental license, with 98% of people from the direct areas of influence of the Curipamba
project participating in the voting process. On January 22, 2024, Adventus announced that the Ministry of
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [10]
Environment, Water and Energy Transition of the Government of Ecuador has granted the environmental license for
the construction and operation of the El Domo – Curipamba project. On January 30, 2024, Adventus announced that
the Ministry of Energy and Mines of Ecuador has issued a permit which grants approval for the design, construction,
operation, and maintenance of the tailings storage facility (”TSF”) for the Curipamba project. The start of TSF
construction is a key condition precedent for the Company to make additional upfront cash payments under the
Curipamba PMPA.
Marathon
The permitting process for the Marathon project continues to advance, with Generation Mining Limited (“Gen Mining”)
announcing on November 7, 2023, that the province of Ontario had accepted and filed the closure plan, and on
November 21, 2023 Gen Mining announced that the Ministry of Natural Resources and Forestry of the province of
Ontario had issued the permit to remove trees. In addition, on November 21, 2023, Gen Mining announced the
closure of the Cdn$15 million bought deal financing with a lead order of Cdn$5 million from Wheaton.
Goose
On January 23, 2024, B2Gold Corp., (“B2Gold”) provided a construction update highlighting that it is progressing
ahead of schedule within the mill and processing buildings, along with preparatory work for peak construction
activities in the second and third quarter of 2024, with the project remaining on schedule to achieve its initial gold
pour in the first quarter of 2025.
Cangrejos
On October 18, 2023, Lumina Gold Corp., (“Lumina”) 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. On January 18, 2024, Lumina announced
results from the phase 1 mining resource conversion drilling campaign in support of the ongoing feasibility study at
Cangrejos. Lumina noted that the assays from the resource infill program continue to demonstrate the exceptional
continuity of grade at Cangrejos. Lumina also noted that it is operating normally at the Cangrejos project and to date
their activities have not been affected by the recent civil disturbances that have impacted other areas in Ecuador.
Mineral Park
On October 24, 2023, the Company entered into a PMPA (the “Mineral Park PMPA”) with Waterton Copper Corp., a
subsidiary of Waterton Copper LP (“Waterton Copper”), in respect of silver production from the Mineral Park mine
located in Arizona, USA (“Mineral Park”). Under the Mineral Park PMPA, Wheaton will purchase an amount of silver
equal to 100% of the payable silver production 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, with the initial
payment expected to be made in Q2-2024. 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 Origin Mining Company, LLC, the Mineral Park owner and affiliate of Waterton Copper, once the full
upfront consideration has been paid.
Cotabambas
On January 15, 2024, Panoro Minerals Ltd., (“Panoro”) announced that it has received the mineral resource estimate
for the Cotabambas project, and now plan to complete the prefeasibility study.
Acquisition of Existing Platreef & Kudz Ze Kayah PMPAs
On November 15, 2023, the Company announced that it had entered into a purchase agreement with certain entities
advised by Orion Resource Partners (“Orion”) to acquire three existing streams (the “Orion Purchase Agreement”),
including the existing gold purchase agreement (the “Platreef Gold PMPA”) between Orion and Ivanhoe Mines SA, a
subsidiary of Ivanplats (Pty), (“Ivanhoe”) in respect of gold production from the Platreef project located in the Limpopo
province of South Africa (the “Platreef project”), an existing palladium and platinum purchase agreement (the
“Platreef PGM PMPA”) in respect of palladium and platinum production from the Platreef project and an existing gold
and silver purchase agreement between Orion and BMC Minerals (the “KZK PMPA”) in respect of gold and silver
production from the Kudz Ze Kayah project located in central Yukon, Canada (the “KZK project”).
Under the Platreef Gold PMPA, the Company is entitled to purchase 62.5% of the payable gold production until a
total of 218,750 ounces of gold has been delivered to the Company, at which point the Company will be entitled to
purchase 50% of the payable gold production until a total of 428,300 ounces of gold has been delivered, after which
the Company will be entitled to purchase 3.125% of the payable gold production. If certain thresholds are met,
including if production through the Platreef project concentrator achieves 5.5 Mtpa, the 3.125% residual gold stream
will terminate. Under the Platreef Gold PMPA, the Company will make ongoing payments for the gold ounces
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [11]
delivered equal to $100 per ounce until a total of 428,300 ounces of gold have been delivered, increasing to 80% of
the spot price of gold thereafter.
Under the Platreef PGM PMPA, the Company is entitled to purchase 5.25% of the payable palladium and platinum
production until a total of 350,000 ounces of combined palladium and platinum have been received, after which the
stream will be reduced to 3.0% of the payable palladium and platinum production until 485,115 ounces have been
delivered, at which point the stream will be reduced to 0.1% of the payable palladium and platinum production. If
certain thresholds are met, including if production through the Platreef project concentrator achieves 5.5 Mtpa, the
0.1% residual palladium and platinum stream will terminate. Under the Platreef PGM PMPA, the Company will make
ongoing payments for the palladium and platinum ounces delivered equal to 30% of the respective spot prices until
485,115 combined ounces have been received, increasing to 80% of the spot price of palladium and platinum
thereafter.
Under the KZK PMPA, the Company is entitled to purchase staged percentages of gold and silver production ranging
from 6.875% to 7.375% depending on the timing of such deliveries, until 330,000 ounces of gold and 43.30 million
ounces of silver are produced and delivered, reducing to a range of 5.625% to 6.125% until a further 59,800 ounces
of gold and 7.96 million ounces of silver are produced and delivered, further reducing to a range of 5.000% to 5.500%
until a further 270,200 ounces of gold and 35.34 million ounces of silver are produced and delivered (for a total of
660,000 ounces of gold and 86.60 million ounces of silver), and thereafter ranging between 6.25% and 6.75%. Under
the KZK PMPA, the Company will make ongoing payments for the gold and silver ounces delivered equal to 20% of
the spot gold and silver price. Under the KZK PMPA, BMC Minerals has a buyback option to repurchase 50% of the
stream for a period of 30 days after June 22, 2026, for $36 million.
The Company paid $450 million to Orion on February 27, 2024, being the closing date of the acquisition of the
Platreef Gold PMPA, Platreef PGM PMPA and the KZK PMPA. An additional $5 million contingency payment is due
to Orion if the KZK project achieves certain milestones.
On February 26, 2024, Ivanhoe reported that while construction activities for the Platreef Phase 1 concentrator are on
track for completion in the third quarter of 2024, hot commissioning and ramp-up of production are now anticipated for
early 2025 in order to prioritize shaft development. An updated independent feasibility study (“FS”) is planned for the
second half of 2024 on an optimized development plan for Phase 2. The optimized development plan accelerates the
development of Phase 2 at a total processing capacity of 4 Mtpa by equipping Shaft #3 for hoisting. An independent
preliminary economic assessment (PEA) is planned concurrently with the FS on a significantly larger Phase 3
expansion, once the major 8 Mtpa Shaft #2 is available for hoisting. A Phase 3 expansion to 10 Mtpa processing
capacity is expected to rank Platreef as one of the world’s largest platinum-group metal, nickel, copper and gold
producers.
Acquisition of the Curraghinalt PMPA
On November 15, 2023, the Company entered into a PMPA for a gold stream in respect of Dalradian Gold’s
Curraghinalt project (the “Curraghinalt PMPA”). The Curraghinalt project is located in Northern Ireland, United
Kingdom. Under the Curraghinalt PMPA, the Company will purchase an amount of gold equal to 3.05% of the
payable gold production until 125,000 ounces of gold has been delivered, at which point the stream will be reduced to
1.5% of the payable gold production for life of mine. Under the terms of the Curraghinalt PMPA, the Company paid
$20 million on December 21, 2023 with an additional $55 million being paid during construction, subject to various
customary conditions being satisfied. In addition, Wheaton will make ongoing payments for the gold ounces delivered
equal to 18% of the spot price of gold until the value of the gold delivered, net of the production payment, is equal to
the upfront consideration of $75 million, at which point the production payment will increase to 22% of the spot price
of gold.
Mt Todd
On December 13, 2023, the Company purchased a 1.0% gross revenue royalty interest (the “Mt Todd Royalty”) in the
Mt Todd gold project located in Northern Territory, Australia from a subsidiary of Vista Gold Corp. for $20 million to be
paid in three installments. Under the Mt Todd Royalty, if completion is not achieved by April 1, 2028, the Mt Todd
Royalty will increase annually by 0.13% of gross revenue to a maximum of 2.0% of gross revenue. The Mt Todd
Royalty rate, annual increase percentage, and maximum rate can each be reduced by one-third upon the occurrence
of one of the following events: (i) a change of control of the subsidiary of Vista occurs prior to April 1, 2028 and the
payment of certain amounts to the Company; or (ii) payment to the Company of the applicable Mt Todd Royalty
associated with the subsidiary of Vista delivering 3.47 million gold ounces to a third-party. The Company also
acquired a right of first refusal on any precious metals streaming, royalty, pre-pay or other similar transaction on the
Mt Todd properties. On December 18, 2023, the Company paid the first installment payment of $3 million under the
royalty agreement.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [12]
Early Deposit Mineral Stream Interests
Early deposit mineral stream interests represent agreements relative to early stage development projects whereby
Wheaton can choose not to proceed with the agreement once certain documentation has been received including,
but not limited to, feasibility studies, environmental studies and impact assessment studies. Once Wheaton has
elected to proceed with the agreement, the carrying value of the stream will be transferred to Mineral Stream
Interests.
The following table summarizes the early deposit mineral stream interests currently owned by the Company:
Attributable
Production to be
Purchased
Early Deposit Mineral
Stream Interests
Mine
Owner
Location of
Mine
Upfront
Consideration
Paid to Date 1
Upfront
Consideration
to be Paid 1, 2
Total
Upfront
Consideration¹
Gold Silver
Term of
Agreement
Date of
Original
Contract
Toroparu
Cotabambas
Kutcho
Aris Mining
Panoro
Kutcho
Guyana $
Peru
Canada
15,500 $
14,000
16,852
138,000 $
126,000
58,000
153,500
140,000
74,852
10%
50% Life of Mine 11-Nov-13
25% ³ 100% ³ Life of Mine 21-Mar-16
100% Life of Mine 14-Dec-17
100%
$
46,352 $
322,000 $
368,352
1) Expressed in thousands; excludes closing costs and capitalized interest, where applicable.
2) Please refer to the section entitled “Other Contractual Obligations and Contingencies” on page 39 of this MD&A for details of when the remaining upfront consideration is
forecast to be paid.
3) Once 90 million silver equivalent ounces attributable to Wheaton have been produced, the attributable production will decrease to 16.67% of gold production and 66.67%
of silver production for the life of mine.
Mineral Royalty Interests
The following table summarizes the mineral royalty interests owned by the Company as at December 31, 2023:
Royalty Interests
Metates
Brewery Creek 3
Black Pine 4
Mt Todd 5
Mine
Owner
Chesapeake
Victoria Gold
Liberty Gold
Vista
Location
of
Mine
Mexico
Canada
USA
Australia
Upfront
Consideration
Paid to Date 2
Royalty 1
0.5% NSR $
2.0% NSR
0.5% NSR
1.0% GR
3,000 $
3,529
3,600
3,000
Total
Upfront
Consideration 2
Upfront
Consideration
to be Paid 2
- $ 3,000 Life of Mine 07-Aug-2014
3,529 Life of Mine 04-Jan-2021
3,600 Life of Mine 10-Sep-2023
20,000 Life of Mine 13-Dec-2023
-
-
17,000
Date of
Original
Contract
Term of
Agreement
$
13,129 $
17,000 $ 30,129
1) Abbreviation as follows: NSR = Net Smelter Return Royalty; and GR = Gross Royalty.
2) Expressed in thousands; excludes closing costs.
3) The Company paid $3 million for an existing 2.0% net smelter return royalty interests on the first 600,000 ounces of gold mined and a 2.75% net smelter returns royalty
interest thereafter. The Brewery Creek Royalty agreement provides, among other things, that Golden Predator Mining Corp., (subsidiary of Victoria Gold) may reduce the
2.75% net smelter royalty interest to 2.125% on payment of the sum of Cdn$2 million to the Company.
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.
4)
5) The Mt Todd royalty is at a rate of 1% of gross revenue with such rate being subject to increase to a maximum rate of 2%, depending on the timing associated with the
achievement of certain operational milestones.
To date, no revenue has been recognized and no depletion has been taken with respect to these royalty agreements.
Long-Term Equity Investments
The Company will, from time to time, invest in securities of companies for strategic purposes including, but not limited
to, exploration and mining companies. The Company held the following investments as at December 31, 2023 and
December 31, 2022:
(in thousands)
Common shares held
Warrants held
Total long-term equity investments
December 31 December 31
2023
2022
$
246,026 $
255,535
652
560
$
246,678 $
256,095
The Company’s long-term investments in common shares (“LTI’s”) are held for long-term strategic purposes and not
for trading purposes. As such, the Company has elected to reflect any fair value adjustments, net of tax, as a
component of other comprehensive income (“OCI”). The cumulative gain or loss will not be reclassified to net
earnings on disposal of these long-term investments but is reclassified to retained earnings.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [13]
While long-term investments in warrants are also held for long-term strategic purposes, they meet the definition of a
derivative and therefore are classified as financial assets with fair value adjustments being recorded as a component of
net earnings under the classification Other Income (Expense). Warrants that do not have a quoted market price are
valued using a Black-Scholes option pricing model.
By holding these long-term investments, the Company is inherently exposed to various risk factors including currency
risk, market price risk and liquidity risk.
A summary of the fair value of these equity investments and the fair value changes recognized as a component of the
Company’s OCI during the three and twelve months ended December 31, 2023 and 2022 is presented below:
Common Shares Held
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Sep 30, 2023
Cost of
Additions
Proceeds of
Disposition
Three Months Ended December 31, 2023
Fair Value
Adjustment
Gains
(Losses) 1
Fair Value at
Dec 31, 2023
Realized Gain
on Disposal
Bear Creek
15,707
7.90% $ 2,060 $ 526 $ - $ (448) $ 2,138 $ -
Kutcho
Hecla
B2Gold
Other
18,640
13.27%
34,980
12,025
5.66%
0.92%
1,724
136,773
34,686
25,335
-
-
-
3,620
-
-
-
-
(173)
1,551
31,482
168,255
3,408
7,033
38,094
35,988
-
-
-
-
Total
1) Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”).
$ 200,578 $ 4,146 $ - $ 41,302 $ 246,026 $ -
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Sep 30, 2022
Cost of
Additions
Proceeds of
Disposition
Three Months Ended December 31, 2022
Fair Value
Adjustment
Gains
(Losses) 1
Fair Value at
Dec 31, 2022
Realized Loss
on Disposal
Bear Creek
13,264
8.65% $ 5,613 $ - $ - $ 1,830 $ 7,443 $ -
Sabina
Kutcho
Hecla
Other
Total
31,095
5.58%
18,640
14.83%
24,727
3,332
35,012
5.78%
137,948
18,360
-
-
-
-
-
-
-
-
5,808
(235)
30,535
3,097
56,720
194,668
1,432
19,792
-
-
-
-
$ 189,980 $ - $ - $ 65,555 $ 255,535 $ -
1) Fair Value Gains (Losses) are reflected as a component of OCI.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [14]
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Dec 31, 2022
Cost of
Additions
Proceeds of
Disposition 1
Year Ended December 31, 2023
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2023
Realized Gain
(Loss) on
Disposal
Bear Creek
15,707
7.90% $ 7,443 $ 526 $ - $ (5,831) $ 2,138 $ -
Sabina
Kutcho
Hecla
B2Gold
Other
Total
-
0.00%
18,640
13.27%
34,980
12,025
5.66%
0.92%
30,535
3,097
194,668
-
19,792
-
-
-
48,832
16,826
(48,832)
-
(202)
-
(27)
18,297
(1,546)
(26,211)
(10,738)
(603)
-
1,551
168,255
38,094
35,988
872
-
73
-
(990)
$ 255,535 $ 66,184 $ (49,061) $ (26,632) $ 246,026 $ (45)
1)
2)
The disposal of the Sabina shares was as a result of the acquisition of Sabina by B2Gold, while the partial disposition of the Hecla shares was made in order to capitalize
on Hecla’s share price appreciation.
Fair Value Gains (Losses) are reflected as a component of OCI.
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Dec 31, 2021
Cost of
Additions
Proceeds of
Disposition 1
Year Ended December 31, 2022
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2022
Realized Loss
on Disposal
Bear Creek
13,264
8.65% $ 12,764 $ - $ - $ (5,321) $ 7,443 $ -
Sabina
Kutcho
Hecla
Other
Total
31,095
5.58%
13,381
18,640
14.83%
35,012
5.78%
-
-
19,833
11,721
141,450
-
-
-
(2,679)
(8,624)
30,535
3,097
53,218
194,668
-
-
-
33,796
6,139
(4,601)
(15,542)
19,792
(3,797)
$ 59,941 $ 179,143 $ (4,601) $ 21,052 $ 255,535 $ (3,797)
1) Disposals during 2022 were made as a result of the acquisition of the companies to which the shares relate by unrelated third party entities.
2)
Fair Value Gains (Losses) are reflected as a component of OCI.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [15]
Summarized Financial Results
Attributable precious metal production
Gold ounces
Silver ounces (000’s)
Palladium ounces
Cobalt pounds (000's)
GEOs 1
Precious metal sales
Gold ounces
Silver ounces (000’s)
Palladium ounces
Cobalt pounds (000's)
GEOs 1
Average realized price
Gold per ounce
Silver per ounce
Palladium per ounce
Cobalt per pound
GEO 1
Average cash cost 2
Gold per ounce
Silver per ounce
Palladium per ounce
Cobalt per pound 3
GEO 1
Average depletion
Gold per ounce
Silver per ounce
Palladium per ounce
Cobalt per pound
GEO 1
Total revenue ($000's)
Net earnings ($000's)
Earnings per share
Basic
Diluted
Adjusted net earnings 4 ($000's)
Adjusted earnings per share 4
Basic
Diluted
Cash flow from operations ($000's)
Dividends
Dividends paid ($000's)
Dividends paid per share
Total assets ($000's)
Total non-current financial liabilities ($000’s)
Total other liabilities ($000’s)
Shareholders' equity ($000's)
Shares outstanding
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
374,585
17,176
15,800
673
619,608
327,336
14,326
13,919
1,074
537,608
1,968
23.64
1,329
13.81
1,890
455
5.05
241
3.30
424
382
4.82
441
13.41
399
1,016,045
537,644
1.187
1.186
533,051
1.177
1.176
750,809
271,744
0.60
7,031,185
19,362
26,307
6,985,516
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
285,601
23,800
341,520
25,725
15,485
724
20,908
2,293
616,755
718,824
293,234
21,570
15,076
312,465
22,860
19,344
1,038
886
598,244
636,824
1,806
21.84
2,133
31.00
1,780
472
5.33
377
8.10
447
350
5.22
399
10.26
388
1,065,053
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1,798
25.08
2,369
23.11
1,887
459
5.78
433
4.67
452
361
5.52
442
8.17
400
1,201,665
669,126 $
754,885
1.482
1.479
504,912
1.118
1.116
743,424
270,946
0.60
6,759,906
11,349
30,882
6,717,675
$
$
$
$
$
$
$
$
$
$
$
$
1.677
1.673
592,079
1.315
1.312
845,145
256,607
0.57
6,296,151
16,243
29,791
6,250,117
453,069,254
452,318,526
450,863,952
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
1) 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.
2) Refer to discussion on non-IFRS measure (iii) on page 62 of this MD&A.
3) Cash cost per pound of cobalt sold during 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease of $0.91 per pound sold. Cash
cost per pound of cobalt sold during 2022 includes an inventory write-down of $1.6 million, resulting in an increase of $1.60 per pound sold.
4) Refer to discussion on non-IFRS measure (i) on page 60 of this MD&A.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [16]
Summary of Units Produced
Gold ounces produced ²
Salobo
Sudbury 3
Constancia
San Dimas 4
Stillwater 5
Other
Marmato
777 6
Minto
Q4 2023
Q3 2023
Q2 2023
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022
71,778 69,045 54,804 43,677 37,939 44,212 34,129 44,883
6,256 3,857 5,818 6,203 5,270 3,437 5,289 5,362
22,292 19,003 7,444 6,905 10,496 7,196 8,042 6,311
10,024 9,995 11,166 10,754 10,037 11,808 10,044 10,461
2,341 2,454 2,017 1,960 2,185 1,833 2,171 2,497
668 673 639 457 533 542 778 477
- - - - - - 3,509 4,003
- - 1,292 3,063 2,567 3,050 2,480 4,060
Total Other
668 673 1,931 3,520 3,100 3,592 6,767 8,540
Total gold ounces produced
113,359 105,027 83,180 73,019 69,027 72,078 66,442 78,054
Silver ounces produced 2
Peñasquito 7
Antamina
Constancia
Other
Los Filos
Zinkgruvan
Neves-Corvo
Aljustrel 8
Cozamin
Marmato
Yauliyacu 9
Minto
Keno Hill 10
777 6
1,036 - 1,744 2,076 1,761 2,017 2,089 2,219
1,030 894 984 872 1,067 1,327 1,330 1,210
836 697 420 552 655 564 584 506
28 28 28 45 14 21 35 42
510 785 374 632 664 642 739 577
573 486 407 436 369 323 345 344
- 327 279 343 313 246 292 287
185 165 184 141 157 179 169 186
10 11 7 8 9 7 7 11
- - - - 261 463 756 637
- - 14 29 33 33 26 45
- - - - - - 48 20
- - - - - - 80 91
Total Other
1,306 1,802 1,293 1,634 1,820 1,914 2,497 2,240
Total silver ounces produced
4,208 3,393 4,441 5,134 5,303 5,822 6,500 6,175
Palladium ounces produced ²
Stillwater 5
Cobalt pounds produced ²
4,209 4,006 3,880 3,705 3,869 3,229 3,899 4,488
Voisey's Bay
215 183 152 124 128 226 136 234
GEOs produced 11
Average payable rate 2
Gold
Silver
Palladium
Cobalt
GEO 11
174,222 154,786 146,104 144,497 142,887 153,025 155,932 164,911
95.1%
82.9%
95.9%
93.3%
91.5%
95.4%
78.3%
93.6%
93.3%
90.5%
95.1%
83.7%
94.1%
93.3%
90.6%
95.1%
83.1%
96.0%
93.3%
89.6%
94.9%
84.2%
91.7%
93.3%
89.6%
95.1%
86.3%
95.0%
93.3%
90.6%
95.1%
86.5%
94.6%
93.3%
90.7%
95.2%
87.0%
92.7%
93.3%
91.0%
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: Q4 2023 - 378,000 ounces; 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.
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 September 12, 2023, it was announced that the production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the
second quarter of 2025.
9) On December 14, 2022, the Company terminated the Yauliyacu PMPA in exchange for a cash payment of $132 million.
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.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [17]
Summary of Units Sold
Gold ounces sold
Salobo
Sudbury 2
Constancia
San Dimas
Stillwater 3
Other
Marmato
777
Minto
Q4 2023
Q3 2023
Q2 2023
Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022
76,656
44,444 46,030
35,966 41,029 31,818 48,515 42,513
5,011 4,836 4,775 4,368 4,988 5,147 7,916 3,712
19,925 12,399 9,619 6,579 6,013 6,336 7,431 10,494
10,472 9,695 11,354 10,651 10,943 10,196 10,633 10,070
2,314 1,985 2,195 2,094 1,783 2,127 2,626 2,628
633 792 467 480 473 719 781 401
- 275 153 126 785 3,098 3,629 4,388
- - 701 2,341 2,982 2,559 2,806 3,695
Total Other
633 1,067 1,321 2,947 4,240 6,376 7,216 8,484
Total gold ounces sold
115,011
74,426 75,294
62,605 68,996 62,000 84,337 77,901
Silver ounces sold
Peñasquito
Antamina
Constancia
Other
Los Filos
Zinkgruvan
Neves-Corvo
Aljustrel
Cozamin
Marmato
Yauliyacu
Stratoni
Minto
Keno Hill
777
442 453 1,913 1,483 2,066 1,599 2,096 2,188
1,091 794 963 814 1,114 1,155 1,177 1,468
665 435 674 366 403 498 494 644
24 30 37 34 16 24 41 42
449 714 370 520 547 376 650 355
268 245 132 171 80 105 167 204
86 142 182 205 156 185 123 145
141 139 150 119 150 154 148 177
9 11 7 7 7 8 11 8
- - - - 337 1,005 817 44
- - - - - - (2) 133
- - 7 29 23 22 21 31
- - - 1 1 30 30 27
- 2 2 - 35 73 75 87
Total Other
977 1,283 887 1,086 1,352 1,982 2,081 1,253
Total silver ounces sold
3,175 2,965 4,437 3,749 4,935 5,234 5,848 5,553
Palladium ounces sold
Stillwater 3
Cobalt pounds sold
Voisey's Bay
GEOs sold 4
Cumulative payable units PBND 5
3,339 4,242 3,392 2,946 3,396 4,227 3,378 4,075
288 198 265 323 187 115 225 511
162,360 119,030 138,835 117,383 138,218 135,179 165,766 159,082
Gold ounces
Silver ounces
99,767 106,947 81,148
77,377 70,562 74,053 67,529 88,679
1,817 1,504 1,812 2,531 2,013 2,481 2,694 2,922
Palladium ounces
6,666 5,607 6,122 5,751 5,098 5,041 6,267 5,535
Cobalt pounds
GEO 4
Inventory on hand
Cobalt pounds
356 377 251 285 258 403 280 550
133,439 135,731 113,144 118,702 104,247 115,220 111,417 137,548
88 155 310 398 633 556 582 410
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 PBND and cobalt pounds PBND are based on management estimates. These figures may be updated in future periods as
additional information is received.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [18]
Quarterly Financial Review 1
xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxx
Gold ounces sold
Realized price 2
Gold sales
Silver ounces sold
Realized price 2
Silver sales
Palladium ounces sold
Realized price 2
Palladium sales
Cobalt pounds sold
Realized price 2
Cobalt sales
Total sales
Cash cost 2, 3
Gold / oz
Silver / oz
Palladium / oz
Cobalt / lb 4
Depletion 2
Gold / oz
Silver / oz
Palladium / oz
Cobalt / lb
Net earnings
Per share
Basic
Diluted
Adjusted net earnings 3
Per share
Basic
Diluted
Cash flow from operations
Per share 3
Basic
Diluted
Dividends declared
Per share
Total assets
Q4 2023
x
x
115,011
Q3 2023
x
x
74,426
Q2 2023
x
x
75,294
Q1 2023
Q4 2022
Q3 2022
Q2 2022
Q1 2022
62,605
xx
68,996
xx
62,000
xx
84,337
xx
77,901
2,006 $
1,944 $
1,986 $
1,904 $
1,725 $
1,728 $
1,872 $
1,870
230,716 $
144,707 $
149,511 $
119,196 $
119,051 $
107,128 $
157,842 $
145,675
3,175
2,965
4,437
3,749
4,935
5,234
5,848
23.77 $
23.73 $
24.13 $
22.85 $
21.52 $
19.16 $
22.27 $
5,553
24.19
75,465 $
70,372 $
107,081 $
85,678 $
106,175 $
100,270 $
130,228 $
134,332
3,339
4,242
3,392
2,946
3,396
4,227
3,378
1,070 $
1,251 $
1,438 $
1,607 $
1,939 $
2,091 $
2,132 $
4,075
2,339
3,574 $
5,307 $
4,879 $
4,735 $
6,586 $
8,838 $
7,203 $
9,533
288
198
265
323
187
115
225
511
12.92 $
13.87 $
13.23 $
15.04 $
22.62 $
22.68 $
34.01 $
34.61
3,716 $
2,751 $
3,501 $
4,856 $
4,239 $
2,600 $
7,649 $
17,704
313,471 $
223,137 $
264,972 $
214,465 $
236,051 $
218,836 $
302,922 $
307,244
437 $
5.02 $
198 $
3.14
$
405 $
5.29 $
445 $
444 $
5.10 $
223 $
461 $
5.01 $
261 $
496
5.07
294
$
$
$
475
5.00
357
$
$
$
474
5.59
353
$
$
$
465
5.61
408
$
$
$
3.66 $
3.20 $
3.30 $
16.52 $
7.21 $
6.86 $
381 $
4.57 $
459 $
365 $
4.92 $
445 $
360
4.48
408
$
$
$
357
4.98
399
$
$
$
353
5.84
399
$
$
$
369
5.28
399
$
$
$
12.80 $
12.98 $
13.85 $
13.85 $
13.72 $
13.63 $
10.40 $
477
5.10
394
5.76
321
4.78
399
8.17
x
x
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
168,435 $
116,371 $
141,448 $
111,391
$
166,125
$
196,460
$
149,074
$
157,467
$
$
$
$
$
$
$
$
$
$
0.372 $
0.257 $
0.312 $
0.246
$
0.367
$
0.435
$
0.330
$
0.371 $
0.257 $
0.312 $
0.246 $
0.367 $
0.434 $
0.330 $
0.349
0.348
164,569 $
121,467 $
142,584 $
104,431
$
103,744
$
93,878
$
149,283
$
158,007
0.363 $
0.268 $
0.315 $
0.231
$
0.229
$
0.208
$
0.331
$
0.363 $
0.268 $
0.314 $
0.230 $
0.229 $
0.208 $
0.330 $
0.350
0.350
242,226 $
171,103 $
202,376 $
135,104
$
172,028
$
154,497
$
206,359
$
210,540
0.535 $
0.378 $
0.447 $
0.299
$
0.381
$
0.342
$
0.457
$
0.534 $
0.377 $
0.446 $
0.298 $
0.380 $
0.342 $
0.456 $
67,950 $
67,946 $
67,938 $
0.15 $
0.15 $
0.15 $
67,910
$
0.15 $
67,797
$
0.15 $
67,754
$
0.15 $
67,708
$
0.15 $
0.467
0.466
67,687
0.15
$ 7,031,185 $ 6,881,515 $ 6,879,905 $ 6,905,479 $ 6,759,906 $ 6,587,595 $ 6,448,695 $ 6,470,033
Total liabilities
$
45,669 $
38,254 $
33,492 $
93,025 $
42,231 $
38,783 $
31,894 $
120,572
Total shareholders' equity
$ 6,985,516 $ 6,843,261 $ 6,846,413 $ 6,812,454 $ 6,717,675 $ 6,548,812 $ 6,416,801 $ 6,349,461
1) All figures in thousands except gold and palladium ounces produced and sold, per unit amounts and per share amounts.
2) Expressed as dollars per ounce and for cobalt per pound.
3) Refer to discussion on non-IFRS beginning on page 60 of this MD&A.
4) Cash cost per pound of cobalt sold during the fourth quarter of 2022 includes an inventory write-down of $1.6 million, resulting in an increase of $8.71 per pound. During the
three months ended March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, the cobalt inventory sold was net of the inventory write-down taken in
2022 in the amount of $1.0 million, $0.5 million, $0.1 million and $0.02 million, respectively, resulting in a decrease to the reported cost of cobalt sold of $3.18 per pound of
cobalt sold, $1.81 per pound of cobalt sold, $0.51 per pound of cobalt sold and $0.08 per pound of cobalt sold, respectively.
Changes in sales, net earnings and cash flow from operations from quarter to quarter are affected primarily by
fluctuations in production at the mines, the timing of shipments, changes in the price of commodities, the
commencement of operations of mines under construction, as well as acquisitions of PMPAs and any related capital
raising activities.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [19]
Results of Operations and Operational Review
The operating results of the Company’s reportable operating segments are summarized in the tables and
commentary below.
Results of Operations For The Three Months Ended December 31, 2023 and 2022
The following two tables present the results of operations based on the Company’s reportable operating segments.
Units
Produced²
Units
Sold
Average
Realized
Price
($'s
Per Unit)
Average
Cash Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Sales
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Three Months Ended December 31, 2023
71,778 76,656 $
2,005 $
420 $
393 $ 153,717 $
91,390 $ 121,491 $ 2,681,419
6,256
5,011
22,292 19,925
10,024 10,472
2,341
2,314
668
633
2,023
2,005
2,005
2,005
2,005
400
420
631
352
350
1,145
316
279
510
527
10,137
39,954
20,999
4,640
1,269
2,394
25,288
11,479
2,645
714
8,134
31,578
14,395
3,826
1,047
262,485
80,265
144,722
211,469
603,689
113,359 115,011 $
2,006 $
437 $
405 $ 230,716 $ 133,910 $ 180,471 $ 3,984,049
1,036
442 $
23.87 $
4.43 $
4.06 $
10,547 $
6,794 $
8,589 $
276,232
1,030
1,091
836
1,306
665
977
23.87
23.87
23.55
4.73
6.20
4.82
7.06
6.24
3.22
26,043
15,879
22,996
13,190
7,601
15,138
20,887
11,755
18,909
519,530
179,583
582,113
4,208
3,175 $
23.77 $
5.02 $
5.29 $
75,465 $
42,723 $
60,140 $ 1,557,458
4,209
3,339 $
1,070 $
198 $
445 $
3,574 $
1,426 $
2,912 $
220,667
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
9,451
Gold
Salobo
Sudbury 4
Constancia
San Dimas
Stillwater
Other 5
Silver
Peñasquito
Antamina
Constancia
Other 6
Palladium
Stillwater
Platinum
Marathon
Cobalt
Voisey's Bay
215
288 $
12.92 $
3.14 ⁷ $
12.80 $
3,716 $
(871) $
2,016 $
350,816
Operating results
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
$ 313,471 $ 177,188 $ 245,539 $ 6,122,441
$
(9,244) $
(6,490)
(6,527)
(2,208)
(1,371)
7,311
3,286
-
(2,143)
(1,083)
7,351
(948)
$
(8,753) $
(3,313) $
908,744
$ 168,435 $ 242,226 $ 7,031,185
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 represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures
are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where
other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) on page 62 of this MD&A.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
5) Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, 777, Santo Domingo, Fenix, Blackwater,
Curipamba, Marathon, Goose, Cangrejos and Curraghinalt 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) Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel,
Minto, Pascua-Lama, Copper World, 777, Navidad, Blackwater, Curipamba and Mineral Park 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 fourth quarter of 2023 was net of a previously recorded inventory write-down of $0.02 million, resulting in a decrease of $0.08
per pound of cobalt sold. The inventory which was written down in 2022 was fully sold during 2023, and no further inventory write down was required during 2023. The
Company reflects the cobalt inventory at the lower of cost and net realizable value, and will continue to monitor the market price of cobalt relative to the carrying value of the
inventory at each reporting period.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [20]
Average
Realized
Price
($'s
Per Unit)
Average
Cash
Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Impairment
(Charges)
Reversals /
Gain on
Disposal 4
Sales
Units
Produced²
Units
Sold
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Three Months Ended December 31, 2022
37,939 41,029 $ 1,727 $
5,270 4,988
10,496 6,013
10,037 10,943
2,185 1,783
3,100 4,240
1,712
1,727
1,727
1,727
1,713
334 $ 70,878 $
416 $
400
416
624
309
894
1,092
271
260
429
59
8,538
10,388
18,903
3,080
7,264
69,027 68,996 $ 1,725 $
475 $
357 $ 119,051 $
- $ 40,110 $ 53,800 $ 2,383,262
283,416
-
95,583
-
155,865
-
215,852
-
494,143
(1,719)
(1,719) $ 59,961 $ 88,792 $ 3,628,121
7,809
7,885
12,071
2,530
4,697
1,095
6,255
9,231
1,765
1,505
1,761 2,066 $ 21.28 $
1,067 1,114
403
1,820 1,352
21.28
21.28
22.15
655
4.36 $
4.33
6.14
6.19
5,303 4,935 $ 21.52 $
5.00 $
3.57 $ 43,949 $
7.06
6.35
5.03
- $ 27,577 $ 34,943 $ 293,674
-
545,368
192,947
-
453,096
51,443
4.98 $ 106,175 $ 51,443 $ 108,352 $ 80,196 $ 1,485,085
11,009
3,538
66,228
18,872
6,098
20,283
23,701
8,572
29,953
3,869 3,396 $ 1,939 $
357 $
399 $
6,586 $
- $
4,018 $
5,373 $ 226,812
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
9,428
Gold
Salobo
Sudbury 5
Constancia
San Dimas
Stillwater
Other 6
Silver
Peñasquito
Antamina
Constancia
Other 7
Palladium
Stillwater
Platinum
Marathon
Cobalt
Voisey's Bay
128
187 $ 22.62 $ 16.52 ⁸ $ 13.72 $
4,239 $
- $
(1,426) $
3,766 $ 357,573
Operating results
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
$ 236,051 $ 49,724 $ 170,905 $ 178,127 $ 5,707,019
$
(8,383) $
(8,474)
(2,916)
(1,377)
4,000
12,370
(6,385)
-
(2,729)
(1,028)
4,073
(30)
$
(4,780) $
(6,099) $ 1,052,887
$ 166,125 $ 172,028 $ 6,759,906
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) on page 62 of this MD&A.
4) Refer to page 29 of this MD&A for more information.
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) Other gold interests comprised of the operating Minto and Marmato gold interests as well as the non-operating 777, Copper World, 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) Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777, Loma
de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests and the previously owned Yauliyacu silver interest. The Stratoni mine was
placed into care and maintenance during Q4-2021. 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. On December 14, 2022 the Yauliyacu PMPA was terminated in
exchange for a cash payment of $132 million.
8) Cash cost per pound of cobalt sold during the fourth quarter of 2022 includes an inventory write-down of $1.6 million, resulting in an increase of $8.71 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.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [21]
Comparative Results of Operations on a GEO Basis
Q4 2023
Q4 2022
Change
GEO Production 1, 2
GEO Sales 2
Average price per GEO sold 2
Revenue
Cost of sales, excluding depletion
Depletion
Cost of Sales
Gross Margin
General and administrative expenses
Share based compensation
Donations and community investments
Impairment of mineral stream interests
Earnings from Operations
Gain on disposal of mineral stream interests
Other income (expense)
Earnings before finance costs and income taxes
Finance costs
Earnings before income taxes
Income tax recovery
Net earnings
174,222
162,360
1,931 $
313,471 $
67,757 $
68,526
136,283 $
177,188 $
9,244
6,527
2,208
-
159,209 $
-
7,311
166,520 $
1,371
165,149 $
(3,286)
$
$
$
$
$
$
$
$
142,887
138,218
1,708 $
236,051 $
61,731
53,139
$
$
114,870 $
121,181
8,383
8,474
2,916
1,719
99,689
51,443
4,000
155,132
1,377
153,755
(12,370)
$
$
$
31,334
24,142
223
77,420
(6,026)
(15,387)
(21,413)
56,007
(861)
1,947
708
1,719
59,520
(51,443)
3,311
11,388
6
11,394
(9,084)
$
168,435 $
166,125 $
2,310
Change
21.9 %
17.5 %
13.1 %
32.8 %
(9.8)%
(29.0)%
(18.6)%
46.2 %
(10.3)%
23.0 %
24.3 %
100.0 %
59.7 %
(100.0)%
82.8 %
7.3 %
0.4 %
7.4 %
(73.4)%
1.4 %
1) Quantity produced represents 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) 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.
GEO Production
For the three months ended December 31, 2023, attributable GEO production was 174,200 ounces, with the 31,300
ounce increase from the comparable period in 2022 being primarily attributable to the following factors:
•
•
•
•
33,800 ounce or 89% increase from Salobo resulting from higher throughput, with production from the third
concentrator line commencing at the end of 2022 and achieving the initial completion test of 32 Mtpa in Q4
2023, combined with higher recoveries. The prior year was also affected by changes in maintenance
routines. From a throughput perspective, the three 12 mtpa lines operated at approximately 83% of capacity
during Q4-2023 as compared to the two lines which operated at approximately 67% during Q4-2022; and
14,100 ounce or 74% increase from Constancia (comprised of 11,800 gold ounces and 181,000 silver
ounces), primarily due to a significant increase in grades attributable to the mining of the high-grade zones
of the Pampacancha deposit; partially offset by
9,400 ounce or 41% decrease from Peñasquito (725,000 silver ounces) as operations at the mine were
suspended due to a labour strike which began on June 7, 2023 and ended on October 13, 2023 with the
safe ramp-up of operations beginning after the end of the strike; and
9,100 ounce or 34% decrease from the Other mines (comprised of 2,400 gold ounces and 515,000 silver
ounces), primarily due to the closure of the Minto mine, the temporary suspension of attributable production
from Aljustrel and the disposal of the Yauliyacu PMPA in 2022.
Depletion
The increase to depletion during the period was due to a combination of the increased sales volume coupled with
higher depletion rates for certain PMPAs including Salobo where the Company made the initial $370 million
expansion payment (see page 9 of this MD&A for more information).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [22]
Net Earnings
For the three months ended December 31, 2023, net earnings amounted to $168 million, with the $2 million increase
relative to the comparable period of the prior year being attributable to the following factors:
Net earnings for the three months ended December 31, 2022
$
166,125
Variance in gross margin
Variance in revenue due to:
Payable gold production
Payable silver production
Payable palladium production
Payable cobalt production
Total payable production
Changes in inventory and PBND
Prices realized per ounce sold
Total increase to revenue
Variance in cost of sales due to:
GEO payable production volume
GEO payable production mix differences
Changes in inventory and PBND
Cobalt inventory write-down
Cash cost per ounce
Depletion per ounce
Total increase to cost of sales
Total increase to gross margin
Other variances
Gain on disposal of mineral stream interest (see page 29)
Impairment (impairment reversal) of mineral stream interests
General and administrative expenses (see page 30)
Share based compensation (see page 31)
Donations and community investment (see page 31)
Other income / expense (see page 31)
Finance costs (see page 32)
Income taxes (see page 32)
Total increase in net earnings
Net earnings for the three months ended December 31, 2023
$
73,033
(21,067)
1,831
1,826
$
$
$
$
$
$
$
55,623
(11,936)
33,733
77,420
(27,589)
4,310
5,481
1,632
660
(5,907)
(21,413)
56,007
(51,443)
1,719
(861)
1,947
708
3,311
6
(9,084)
2,310
168,435
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [23]
Results of Operations For The Year Ended December 31, 2023 and 2022
The following two tables present the results of operations based on the Company’s reportable operating segments.
Average
Realized
Price
($'s
Per Unit)
Average
Cash
Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Units
Produced²
Units
Sold
Gain on
Disposal 4
Net
Earnings
Sales
Cash Flow
From
Operations
Total
Assets
Year Ended December 31, 2023
Gold
Salobo
Sudbury 5
Constancia
San Dimas
Stillwater
Other 6
Silver
Peñasquito
Antamina
Constancia
Other 7
Palladium
Stillwater
Platinum
Marathon
Cobalt
239,304 203,096 $ 1,969 $
354 $ 399,936 $
22,134 18,990
55,644 48,522
41,939 42,172
8,772 8,588
6,792 5,968
1,971
1,972
1,960
1,961
1,942
420 $
400
419
628
348
1,037
1,102
316
264
510
209
37,432
95,672
82,656
16,842
11,593
- $ 242,676 $ 314,555 $ 2,681,419
262,485
29,554
-
80,265
75,357
-
144,722
56,157
-
211,469
13,853
-
603,689
5,137
-
8,905
60,039
45,014
9,470
4,152
374,585 327,336 $ 1,968 $
455 $
382 $ 644,131 $
- $ 370,256 $ 494,613 $ 3,984,049
4,856 4,291 $ 23.66 $
3,780 3,662
2,505 2,140
6,035 4,233
23.72
23.79
23.47
4.43 $
4.70
6.17
5.41
4.06 $ 101,514 $
7.06
6.24
2.92
86,855
50,913
99,312
17,176 14,326 $ 23.64 $
5.05 $
4.82 $ 338,594 $
- $ 65,062 $ 82,504 $ 276,232
519,530
69,652
-
179,583
37,716
-
582,113
74,272
5,027
5,027 $ 202,334 $ 264,144 $ 1,557,458
43,814
24,352
69,106
15,800 13,919 $ 1,329 $
241 $
441 $
18,496 $
- $
8,991 $ 15,135 $ 220,667
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
9,451
Voisey's Bay
673 1,074 $ 13.81 $ 3.30 ⁸ $ 13.41 $
14,824 $
- $
(3,114) $ 15,071 $ 350,816
Operating results
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
$ 1,016,045 $
5,027 $ 578,467 $ 788,963 $ 6,122,441
$ (38,165) $ (36,025)
(16,675)
(7,039)
(4,230)
32,007
(6,192)
(22,744)
(7,261)
(5,510)
34,271
(1,414)
$ (40,823) $ (38,154) $ 908,744
$ 537,644 $ 750,809 $ 7,031,185
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 represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures
are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where
other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) on page 62 of this MD&A.
4) Refer to page 29 of this MD&A for more information.
5) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
6) Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Minto, Copper World, 777, Santo Domingo, Fenix, Blackwater,
Curipamba, Marathon, Goose, Cangrejos and Curraghinalt 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) Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel,
Minto, Pascua-Lama, Copper World, 777, Navidad, Blackwater, Curipamba and Mineral Park 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 year ended December 31, 2023 was net of a previously recorded inventory write-down of $1.6 million, resulting in a decrease
of $0.91 per pound of cobalt sold. The inventory which was written down in 2022 was fully sold during 2023, and no further inventory write down was required during 2023.
The Company reflects the cobalt inventory at the lower of cost and net realizable value and will continue to monitor the market price of cobalt relative to the carrying value of
the inventory at each reporting period.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [24]
Average
Realized
Price
($'s
Per Unit)
Average
Cash
Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Impairment
(Charges)
Reversals /
Gain on
Disposal 4
Sales
Units
Produced²
Units
Sold
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Year Ended December 31, 2022
334 $ 296,145 $
161,163 163,875 $ 1,807 $
19,358 21,763
32,045 30,274
42,350 41,842
8,686 9,164
21,999 26,316
1,802
1,812
1,798
1,810
1,811
416 $
400
414
623
325
760
1,091
271
260
429
48
39,211
54,868
75,238
16,583
47,653
285,601 293,234 $ 1,806 $
472 $
350 $ 529,698 $
- $ 173,257 $ 227,933 $ 2,383,262
283,416
-
95,583
-
155,865
-
215,852
-
494,143
(1,719)
(1,719) $ 286,832 $ 391,466 $ 3,628,121
30,789
42,348
49,186
13,600
27,610
6,752
34,142
38,327
9,667
24,687
8,086 7,949 $ 21.97 $
4,934 4,914
2,309 2,039
8,471 6,668
21.94
21.97
21.56
4.36 $
4.40
6.10
6.95
23,800 21,570 $ 21.84 $
5.33 $
3.57 $ 174,635 $
7.06
6.35
5.50
- $ 111,634 $ 139,978 $ 293,674
-
545,368
192,947
-
453,096
166,198
5.22 $ 471,003 $ 166,198 $ 409,538 $ 354,411 $ 1,485,085
107,794
44,798
143,776
51,488
19,421
226,995
85,824
32,358
96,251
15,485 15,076 $ 2,133 $
377 $
399 $
32,160 $
- $ 20,455 $ 26,472 $ 226,812
-
- $
n.a $
n.a $
n.a $
- $
- $
- $
- $
9,428
Gold
Salobo
Sudbury 5
Constancia
San Dimas
Stillwater
Other 6
Silver
Peñasquito
Antamina
Constancia
Other 7
Palladium
Stillwater
Platinum
Marathon
Cobalt
Voisey's Bay
724 1,038 $ 31.00 $ 8.10 ⁸ $ 10.26 $
32,192 $
- $ 13,134 $ 28,178 $ 357,573
Operating results
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
$ 1,065,053 $ 164,479 $ 729,959 $ 800,527 $ 5,707,019
$ (35,831) $ (35,073)
(18,411)
(5,706)
(4,135)
6,393
(171)
(20,060)
(6,296)
(5,586)
7,449
(509)
$ (60,833) $ (57,103) $ 1,052,887
$ 669,126 $ 743,424 $ 6,759,906
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 represents the amount of gold, silver, palladium and cobalt contained in concentrate or doré prior to smelting or refining deductions. Production figures
are based on information provided by the operators of the mining operations to which the mineral stream interests relate or management estimates in those situations where
other information is not available. Certain production figures may be updated in future periods as additional information is received.
3) Refer to discussion on non-IFRS measure (iii) on page 62 of this MD&A.
4) Refer to page 29 of this MD&A for more information.
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) Other gold interests comprised of the operating Minto and Marmato gold interests as well as the non-operating 777, Copper World, 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) Other silver interests comprised of the operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777, Loma
de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater and Curipamba silver interests and the previously owned Yauliyacu and Keno Hill silver interests. The
Stratoni mine was placed into care and maintenance during Q4-2021. 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. 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.
8) Cash cost per pound of cobalt sold during the fourth quarter of 2022 includes an inventory write-down of $1.6 million, resulting in an increase of $1.60 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.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [25]
Comparative Results of Operations on a GEO Basis
2023
2022
Change
GEO Production 1, 2
GEO Sales 2
Average price per GEO sold 2
Revenue
Cost of sales, excluding depletion
Depletion
Cost of Sales
Gross Margin
General and administrative expenses
Share based compensation
Donations and community investments
Impairment reversal of mineral stream interests
Earnings from Operations
Gain on disposal of mineral stream interests
Other income (expense)
Earnings before finance costs and income taxes
Finance costs
Earnings before income taxes
Income tax expense
Net earnings
619,608
2,853
537,608
(60,637)
1,890 $ 1,780 $ 110
616,755
598,244
1,016,045 $ 1,065,053 $ (49,008)
228,171 $ 267,621 $ 39,450
17,518
214,434
231,952
442,605 $ 499,573 $ 56,968
573,440 $ 565,480 $ 7,960
(2,334)
38,165
(2,684)
22,744
(965)
7,261
35,831
20,060
6,296
(8,611)
155,868
7,449
-
(8,611)
505,270 $ 511,904 $ (6,634)
(150,841)
5,027
34,271
26,822
544,568 $ 675,221 $ (130,653)
5,510
76
539,058 $ 669,635 $ (130,577)
(905)
1,414
5,586
509
$
$
$
$
$
$
$
$
$
537,644 $ 669,126 $ (131,482)
Change
0.5 %
(10.1)%
6.2 %
(4.6)%
14.7 %
7.6 %
11.4 %
1.4 %
(6.5)%
(13.4)%
(15.3)%
(100.0)%
(1.3)%
(96.8)%
360.1 %
(19.3)%
1.4 %
(19.5)%
(177.8)%
(19.6)%
1) Quantity produced represents 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) 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.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [26]
GEO Production
For the year ended December 31, 2023, attributable GEO production was 619,600 ounces, with the 2,800 ounce
increase from the comparable period in 2022 being primarily attributable to the following factors:
•
•
•
•
•
•
78,100 ounce or 48% increase from Salobo, with production from the third concentrator line commencing at
the end of 2022 and achieving the initial completion test of 32 Mtpa in Q4 2023, combined with higher
grades and recoveries. The prior year was also impacted by both planned and corrective maintenance in the
mill liners, coupled with above average seasonal rain level in the region during the fourth quarter of 2021
impacting mine plans in the first quarter of 2022. From a throughput perspective, the three 12 mtpa lines
operated at approximately 69% of capacity during 2023 as compared to the two lines which operated at
approximately 74% during 2022;
26,100 ounce or 42% increase from Constancia (comprised of 23,600 gold ounces and 196,000 silver
ounces), primarily due to higher grades, resulting from full mining activities having resumed in the
Pampacancha pit; and
2,800 ounce or 14% increase from Sudbury, primarily due to higher throughput with first quarter 2022
production being impacted by the temporary closure of the Totten Mine after the shaft was damaged on
September 26, 2021; partially offset by
46,800 ounce or 35% decrease from the Other mines (comprised of 15,200 gold ounces and 2,435,000
silver ounces), primarily due to the closure of 777 in June 2022 and Minto in May 2023 combined with the
disposal of the Yauliyacu PMPA in 2022;
41,900 ounce or 40% decrease from Peñasquito (3,230,000 silver ounces), primarily due to lower
throughput resulting from a labour strike which began on June 7, 2023 and ended on October 13, 2023, with
the safe ramp-up of operations beginning after the end of the strike; and
15,000 ounce or 23% decrease from Antamina (1,152,000 silver ounces), primarily due to lower grades,
consistent with the mine plan.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [27]
Net Earnings
For the year ended December 31, 2023, net earnings amounted to $538 million, with the $131 million decrease
relative to the comparable period of the prior year being attributable to the following factors:
Net earnings for the year ended December 31, 2022
$
669,126
Variance in gross margin
Variance in revenue due to:
Payable gold production
Payable silver production
Payable palladium production
Payable cobalt production
Total payable production
Changes in inventory and PBND
Prices realized per ounce sold
Total decrease to revenue
Variance in cost of sales due to:
GEO payable production volume
GEO payable production mix differences
Changes in inventory and PBND
Cobalt inventory write-down
Cash cost per ounce
Depletion per ounce
Total decrease to cost of sales
Total increase to gross margin
Other variances
Gain on disposal of mineral stream interest (see page 29)
Impairment (impairment reversal) of mineral stream interests (see page 29)
General and administrative expenses (see page 30)
Donations and community investment (see page 31)
Share based compensation (see page 31)
Other income / expense (see page 31)
Finance costs (see page 32)
Income taxes (see page 32)
Total decrease in net earnings
Net earnings for the year ended December 31, 2023
$
153,566
(138,658)
2,010
(1,483)
$
$
$
$
$
$
$
15,435
(113,384)
48,941
(49,008)
(3,134)
16,792
54,829
3,265
(2,263)
(12,521)
56,968
7,960
(150,841)
(8,611)
(2,334)
(965)
(2,684)
26,822
76
(905)
(131,482)
537,644
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [28]
Reversal of Impairment of Mineral Stream Interests
Keno Hill – Impairment Reversal
At December 31, 2015, the Company determined there to be an impairment charge of $10.5 million relative to the
Keno Hill silver interest (“Keno Hill PMPA”) due to the suspension of operations at the Bellekeno mine.
On September 7, 2022, the Company terminated the Keno Hill PMPA in exchange for 34,800,989 common shares of
Hecla valued at $141 million. This value exceeded the carrying amount of the Keno Hill PMPA that would have been
determined, net of depletion, had no impairment charge been recognized for the PMPA. As a result, an impairment
reversal of $10.3 million was recorded for the year ended December 31, 2022, which represents a full reversal of the
impairment charge recorded in the year ended December 31, 2015, net of depletion that otherwise would have been
recorded. The recoverable amount of the Keno Hill PMPA was determined based on the value of the consideration
received in exchange for its termination, and as such is classified within Level 1 of the fair value hierarchy.
Gain on Disposal of Mineral Stream Interest
Goose
On April 12, 2023, Sabina announced that shareholders approved the proposed acquisition by B2Gold Corp.
(“B2Gold”) of all the issued and outstanding common shares of Sabina. The transaction closed April 19, 2023.
Subsequent to closing, B2Gold exercised the option to acquire 33% of the stream under the Goose PMPA in
exchange for a cash payment in the amount of $46 million, resulting in a gain on partial disposal of the Goose PMPA
in the amount of $5 million, calculated as follows:
(in thousands)
Proceeds received on 33% buyback of Goose
Less: 33% carrying value
Gain on partial disposal of the Goose PMPA
$ 46,400
(41,373)
$ 5,027
Keno Hill
With the receipt of $141 million of Hecla common shares on September 7, 2022, the Company reflected a gain on
disposal of the Keno Hill PMPA for the year ended December 31, 2022 in the amount of $104 million, calculated as
follows:
(in thousands)
Fair value of Hecla Mining Company shares received
Less: carrying value after impairment reversal, plus closing costs
Gain on disposal of the Keno Hill PMPA
$ 140,596
(36,201)
$ 104,395
Yauliyacu
With the receipt of $132 million in proceeds on December 14, 2022, the Company has reflected a gain on disposal of
the Yauliyacu PMPA for the year ended December 31, 2022 in the amount of $51 million, calculated as follows:
(in thousands)
Proceeds received on disposal of Yauliyacu
Less: carrying value plus closing costs
Gain on disposal of the Yauliyacu PMPA
$ 131,937
(80,464)
$ 51,473
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [29]
General and Administrative
(in thousands)
Corporate
Three Months Ended
December 31
Years Ended
December 31
2023
2022
2023
2022
Salaries and benefits
Depreciation
Professional fees
Business travel
Director fees
Business taxes
Audit and regulatory
Insurance
Other
General and administrative - corporate
$ 3,230
246
1,493
232
275
48
540
502
875
$ 7,441
$ 3,195
289
582
264
258
92
505
550
821
$ 6,556
$ 14,127
1,026
3,346
1,141
1,095
798
3,211
2,052
3,964
$ 30,760
$ 14,895
1,154
1,680
950
1,109
840
2,845
2,135
3,469
$ 29,077
Subsidiaries
Salaries and benefits
Depreciation
Professional fees
Business travel
Director fees
Business taxes
Insurance
Other
General and administrative - subsidiaries
$ 821
123
216
123
45
45
7
423
$ 1,803
$ 992
107
131
118
50
80
10
339
$ 1,827
$ 4,287
466
607
346
199
238
46
1,216
$ 7,405
$ 4,327
434
539
242
200
276
44
692
$ 6,754
Consolidated general and administrative
$ 9,244
$ 8,383
$ 38,165
$ 35,831
General and administrative expenses for the year ended December 31, 2023 increased approximately $2 million
relative to the comparable period of 2022, with the costs of professional fees and audit and regulatory increasing due
to costs associated with the renewal of the Company’s At the Market Equity (ATM) program (see page 42 of this
MD&A).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [30]
Share Based Compensation
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2023
2022
2023
2022
Equity settled share based compensation 1
Stock options
Restricted share units
$ 518
787
$ 578
861
$ 2,607
3,831
$ 2,366
3,480
Cash settled share based compensation
PSUs
5,222
7,035
16,306
14,214
Total share based compensation
$ 6,527
$ 8,474
$ 22,744
$ 20,060
1) Equity settled stock based compensation is a non-cash expense.
For the three months ended December 31, 2023, share based compensation decreased by $2 million relative to the
comparable period in the previous year with the decrease being primarily due to differences in accrued costs
associated with the Company’s performance share units (“PSUs”).
Donations and Community Investments
(in thousands)
Local donations and community investments 1
Partner donations and community investments 2
COVID-19 and community support and response fund 3
Total donations and community investments
Three Months Ended
December 31
Years Ended
December 31
2023
2022
2023
2022
$ 713 $ 987 $ 2,649 $ 2,333
3,798
4,612
1,929
1,495
165
-
$ 2,208 $ 2,916 $ 7,261 $ 6,296
-
-
1) The Local Community Investment Program supports organizations in Vancouver and the Cayman Islands, where Wheaton’s offices are located.
2) The Partner Community Investment Program supports the communities influenced by Mining Partners' operations.
3) Committed funding under this program has been fully disbursed.
Other Income (Expense)
(in thousands)
Interest income
Dividend income
Foreign exchange gain (loss)
Three Months Ended
December 31
Years Ended
December 31
2023
2022
2022
$ 9,913 $ 3,948 $ 34,862 $ 6,321
453
890
2,316
51
700
(334)
131
(179)
2023
Gain (loss) on fair value adjustment of share purchase
warrants held
Other
217
(3,185)
67
33
(31)
(2,927)
(1,033)
818
Total other income (expense)
$ 7,311 $ 4,000 $ 34,271 $ 7,449
Interest Income
For the three and twelve months ended December 31, 2023, interest income increased by $6 million and $29 million,
respectively, a result of the average cash balance during the period increasing from approximately $443 million to
approximately $731 million, coupled with a significant increase in the market rates of interest.
Other
Included in other for the prior year is the fair value loss on the Kutcho Convertible Note in the amount of $1.4 million.
On February 18, 2022, the Company agreed to settle and terminate the Kutcho Convertible Note and the non-
revolving term loan in exchange for shares of Kutcho valued at $6.7 million in addition to certain other modifications
to the Kutcho Early Deposit Agreement.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [31]
Finance Costs
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
Costs related to undrawn credit facilities
Interest expense - lease liabilities
Letter of guarantee
2023
$ 1,286
76
9
2022
$ 1,311
20
46
2023
$ 5,162
207
141
2022
$ 5,262
91
233
Total finance costs
$ 1,371
$ 1,377
$ 5,510
$ 5,586
Income Tax Expense (Recovery)
Income tax recognized in net earnings is comprised of the following:
(in thousands)
2023
2022
2023
2022
Current income tax expense (recovery)
$ 158
$ (3,367)
$ (2,372)
$ 8,746
Three Months Ended
December 31
Years Ended
December 31
Deferred income tax expense (recovery)
related to:
Origination and reversal of temporary
differences
$ (1,058)
$ 2,388
$ 2,427
$ 32,430
Write down (reversal of write down) or
recognition of prior period temporary
differences
Total deferred income tax expense (recovery)
Total income tax expense (recovery)
recognized in net earnings
(2,386)
$ (3,444)
(11,391)
$ (9,003)
1,359
$ 3,786
(40,667)
$ (8,237)
$ (3,286)
$ (12,370)
$ 1,414
$ 509
For the three months ended December 31, 2023 and 2022, the Company reflected a deferred tax recovery of $3
million and $9 million, respectively, in net earnings, which offsets a deferred tax expense in the statement of OCI of
$3 million and $7 million, respectively, resulting from an increase in unrealized gains on long-term investments in
equity instruments. Additionally, for the three months ended December 31, 2022, the Company reflected a current tax
recovery of $3 million, reflecting the loss for Canadian tax purposes in Q4-2022, with this loss partially reducing the
previously estimated Canadian income tax expense associated with the disposition of the Keno Hill PMPA in Q3-
2022 (see below).
For the year ended December 31, 2022, there is a current income tax expense in net earnings of $9 million which
was partially offset by a current income tax recovery of $6 million in the Statement of Shareholders’ Equity. The
current income tax was primarily the result of income tax expense associated with the disposition of the Keno Hill
PMPA, partially offset by the full utilization of $97 million of previously unrecognized non-capital loss carryforwards
available to the Company. For the year ended December 31, 2023, there is a current income tax recovery in net
earnings of $2 million which reflects the carryback of a loss for Canadian tax purposes to the 2022 tax year to offset
the taxable Canadian income resulting from the disposition of the Keno Hill PMPA.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [32]
The movement in current income taxes payable for the years ended December 31, 2023 and 2022 is as follows:
(in thousands)
Current taxes payable - December 31, 2021
Current income tax expense - income statement
Current income tax recovery - shareholders' equity
Income taxes paid
Foreign exchange adjustments
Current taxes payable - December 31, 2022
Current income tax recovery - income statement
Income taxes paid
Foreign exchange adjustments
Current taxes recoverable - December 31, 2023
Current Taxes
(Payable)
Recoverable
$ (132)
(8,746)
5,932
171
12
$ (2,763)
2,372
6,192
134
$ 5,935
Global Minimum Tax
The Company is within the scope of global minimum tax under the OECD Pillar Two model rules (“Pillar Two”).
Subject to tax legislation enacting Pillar Two being passed in the jurisdictions where the Company and its subsidiaries
operate, the group is liable to pay a top-up tax for any deficiency between the minimum tax rate of 15% and the
effective tax rate per jurisdiction. The Canadian parent company, as well as its Luxembourg subsidiary (Silver
Wheaton Luxembourg S.a.r.l., or “Silver Wheaton Luxembourg”) have an effective tax rate that exceeds 15% or are in
a loss position. The group’s subsidiaries that operate in the Cayman Islands have an effective tax rate of 0%. For the
years ended December 31, 2023 and 2022, the Cayman Islands subsidiaries had net earnings of $551 million and
$532 million, respectively.
The Company does not operate in any jurisdiction where Pillar Two legislation was effective as for the year ended
December 31, 2023 and 2022 and therefore the Company has no related current tax expense associated with global
minimum tax.
Jurisdictional updates are as follows:
Canada
On August 4, 2023, the Canadian Federal Government released draft Pillar Two implementing legislation as a new
act, the Global Minimum Tax Act (“GMTA”), for public comment. The public consultation period on the draft legislation
ended September 29, 2023. If enacted, the GMTA would implement a 15% global minimum tax for fiscal years that
begin on or after December 31, 2023. If enacted as drafted, the proposed Canadian rules in the GMTA would apply to
the income of the Company’s Cayman Island subsidiaries from January 1, 2024.
Luxembourg
Pillar Two legislation was enacted in Luxembourg on December 22, 2023. The rules are applicable from January 1,
2024. As discussed above, Silver Wheaton Luxembourg has an effective tax rate in excess of 15%. The Luxembourg
Pillar Two legislation also contains an undertaxed profits rule which is effective January 1, 2025, that would allow
Luxembourg to collect Pillar Two top-up taxes related to the Company’s subsidiaries operating in the Cayman Islands
if the GMTA were not enacted in Canada. Given the Canadian government’s stated intent to enact the GMTA, the
Company does not expect the Luxembourg Pillar Two legislation to have a material impact on the Company.
Cayman Islands
To date, the government of the Cayman Islands has indicated that they do not intend to enact Pillar Two Legislation.
Liquidity and Capital Resources1
As at December 31, 2023, the Company had cash and cash equivalents of $547 million (December 31, 2022 - $696
million) and no debt outstanding under its Revolving Facility (December 31, 2022 - $NIL).
In the opinion of management, the $547 million of cash and cash equivalents as at December 31, 2023, combined
with the liquidity provided by the available credit under the $2 billion Revolving Facility and ongoing operating cash
1 Statements made in this section contain forward-looking information with respect to funding outstanding commitments and
continuing to acquire accretive mineral stream interests and readers are cautioned that actual outcomes may vary. Please see
“Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure associated
with this information.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [33]
flows positions the Company well to fund all outstanding commitments, as detailed on pages 37 and 39 of this MD&A,
as well as providing flexibility to acquire additional accretive mineral stream interests.
A summary of the Company’s cash flow activity is as follows:
Three Months Ended December 31, 2023
Cash Flows From Operating Activities
During the three months ended December 31, 2023, the Company generated operating cash flows of $242 million,
with the $70 million increase relative to the comparable period of the prior year being attributable to the following
factors:
Operating cash inflow for the three months ended December 31, 2022
Variance attributable to revenue (see page 23):
Changes in accounts receivable
Total increase to cash inflows attributable to sales
Variance attributable to cost of sales, excluding depletion:
Sales volume
Sales mix differences
Cost per ounce
Changes in working capital, excluding accounts receivable
Total increase to cash outflows attributable to cost of sales
Total increase to net cash inflows attributable to gross margin
Other variances:
General and administrative
Donation and community investment
Finance costs
Income taxes
Other
Total increase to net cash inflows
Operating cash inflow for the three months ended December 31, 2023
$
$
$
$
$
$
$
$
172,028
77,420
(1,805)
75,615
(13,803)
5,484
660
(544)
(8,203)
67,412
(105)
586
(55)
(918)
3,278
70,198
242,226
Other Variance
The increase to cash inflows relative to Other during the period was due to amounts of interest earned on the
Company’s cash balances, with the Company investing surplus cash in short-term, high credit quality, money market
instruments.
Cash Flows From Financing Activities
During the three months ended December 31, 2023, the Company had net cash outflows from financing activities of
$65 million, as compared to $58 million for the comparable period of the previous year, with the major sources of
cash flows being as follows:
(in thousands)
Credit facility extension fees
Share purchase options exercised
Lease payments
Dividends paid
Cash used for financing activities
Three Months Ended
December 31
2023
2022
$ -
$ (150)
1,812
2,819
(143)
(197)
(67,025)
(60,493)
$ (65,356)
$ (58,021)
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [34]
Cash Flows From Investing Activities
During the three months ended December 31, 2023, the Company had net cash outflows from investing activities of
$464 million, as compared to net cash inflows of $87 million during the comparable period of the previous year, with
the major sources of cash flow being as follows:
(in thousands)
Payments for the acquisition of new PMPAs 1:
Goose PMPA
Curipamba PMPA
Blackwater Gold PMPA
Blackwater Silver PMPA
Cangrejos PMPA
Salobo Expansion PMPA
Curraghinalt PMPA
Acquisition of long-term equity investments
Payments for the acquisition of new Royalty Agreement:
Mt Todd Royalty
Investment in subscription receipts 2
Net proceeds on disposition of PMPA
Yauliyacu PMPA
Other
Three Months Ended
December 31
2023
2022
$ -
-
(10,000)
(35,200)
(16,700)
(370,000)
(20,000)
$ (451,900)
(4,200)
$ (31,250)
(13,000)
-
-
-
-
-
$ (44,250)
-
(3,000)
(4,500)
-
-
-
(734)
131,902
(194)
Total cash (used for) generated from investing activities
$ (464,334)
$ 87,458
1) Excludes closing costs.
2) The subscription rights were converted to common shares during the first quarter of 2024 and will be reclassified to Long-Term Equity Investments.
Year Ended December 31, 2023
Cash Flows From Operating Activities
During the year ended December 31, 2023, the Company generated operating cash flows of $751 million, with the $7
million increase relative to the comparable period of the prior year being attributable to the following factors:
Operating cash inflow for the year ended December 31, 2022
Variance attributable to revenue (see page 28):
Changes in accounts receivable
Total decrease to cash inflows attributable to sales
Variance attributable to cost of sales, excluding depletion:
Sales volume
Sales mix differences
Cost per ounce
Changes in working capital, excluding accounts receivable
Total decrease to cash outflows attributable to cost of sales
Total decrease to net cash inflows attributable to gross margin
Other variances:
General and administrative
Donation and community investment
Share based compensation - PSUs
Finance costs
Income taxes
Other
Total increase to net cash inflows
Operating cash inflow for the year ended December 31, 2023
$
$
$
$
$
$
$
$
743,424
(49,008)
(1,547)
(50,555)
22,743
15,706
(2,262)
2,804
38,991
(11,564)
(952)
(1,333)
1,736
(95)
(6,021)
25,614
7,385
750,809
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [35]
Other Variance
The increase to cash inflows relative to Other during the period was due to amounts of interest earned on the
Company’s cash balances, with the Company investing surplus cash in short-term, high credit quality, money market
instruments.
Cash Flows From Financing Activities
During the year ended December 31, 2023, the Company had net cash outflows from financing activities of $254
million, as compared to $229 million during the comparable period of the previous year, with the major sources of
cash flow being as follows:
(in thousands)
Credit facility extension fees
Share purchase options exercised
Lease payments
Dividends paid
Cash used for financing activities
Years Ended
December 31
2023
2022
$ (859)
12,415
(691)
(265,109)
$ (1,357)
10,368
(800)
(237,097)
$ (254,244)
$ (228,886)
Cash Flows From Investing Activities
During the year ended December 31, 2023, the Company had net cash outflows from investing activities of $647
million, as compared to $44 million during the comparable period of the previous year, with the major sources of cash
flow being as follows:
(in thousands)
Payments for the acquisition of new PMPAs 1:
Panoro early deposit PMPA
Marathon PMPA
Goose PMPA
Curipamba PMPA
Blackwater Gold PMPA
Blackwater Silver PMPA
Cangrejos PMPA
Marmato PMPA
Fenix PMPA
Salobo Expansion PMPA
Curraghinalt PMPA
Net proceeds on disposition of PMPA
Goose PMPA
Yauliyacu PMPA
Acquisition of long-term equity investments
Payments for the acquisition of new Royalty Agreement:
Black Pine Royalty
Mt Todd Royalty
Investment in subscription receipts 2
Other
Total cash used for investing activities
Years Ended
December 31
2023
2022
$ (1,000)
-
(62,500)
(150)
(40,000)
(140,800)
(28,700)
-
-
(370,000)
(20,000)
$ (663,150)
$ (1,500)
(31,224)
(62,500)
(13,000)
-
-
-
(19,000)
(25,000)
-
-
$ (152,224)
46,400
-
(17,447)
-
131,902
(22,768)
(3,602)
(3,000)
(4,500)
(1,347)
-
-
-
(1,207)
$ (646,646)
$ (44,297)
1) Excludes closing costs.
2) The subscription rights were converted to common shares during the first quarter of 2024 and will be reclassified to Long-Term Equity Investments.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [36]
Contractual Obligations and Contingencies1
Mineral Stream Interests
The following tables summarize the Company’s commitments to make per-ounce or per pound cash payments for
gold, silver, palladium, platinum and cobalt to which it has the contractual right pursuant to the PMPAs:
Per Ounce Cash Payment for Gold
Mineral Stream Interests
Constancia
Salobo
Sudbury
San Dimas
Stillwater
Marathon
Other
Minto
Copper World
Marmato
Santo Domingo
Fenix
Blackwater
Curipamba
Goose
Cangrejos
Platreef ⁸
Curraghinalt
Kudz Ze Kayah ⁸
Early Deposit
Toroparu
Cotabambas
Kutcho
Attributable
Payable Production
to be Purchased
50%
75%
70%
variable ³
100%
100% ⁵
$
$
$
$
Per Ounce Cash
Payment 1
420 ²
425
400
631
18% ⁴
18% ⁴
100% ⁶
100%
10.5% ⁵
100% ⁵
6% ⁵
8% ⁵
50% ⁵
2.78% ⁵
6.6% ⁵
62.5% ⁵
3.05% ⁵
6.875% ⁷
10%
25% ⁵
100%
$
$
$
$
50% ⁶
450
18% ⁴
18% ⁴
18% ⁴
35%
18% ⁴
18% ⁴
18% ⁴
100 ⁵
18% ⁴
20%
400
450
20%
Term of
Agreement
Life of Mine
Life of Mine
20 years
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine ⁵
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Date of
Original
Contract
8-Aug-12
28-Feb-13
28-Feb-13
10-May-18
16-Jul-18
26-Jan-22
20-Nov-08
10-Feb-10
5-Nov-20
24-Mar-21
15-Nov-21
13-Dec-21
17-Jan-22
8-Feb-22
16-May-23
7-Dec-21
15-Nov-23
22-Dec-21
11-Nov-13
21-Mar-16
14-Dec-17
1) The production payment is measured as either a fixed amount per ounce of gold delivered, or as a percentage of the spot price of gold on the date of delivery. Contracts
where the payment is a fixed amount per ounce of gold delivered are subject to an annual inflationary increase, with the exception of Sudbury. Additionally, should the
prevailing market price for gold be lower than this fixed amount, the per ounce cash payment will be reduced to the prevailing market price, subject to an annual inflationary
factor.
2) Subject to an increase to $550 per ounce of gold after the initial 40-year term.
3) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to
25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio
decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such
time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Currently, the fixed gold to
silver exchange ratio is 70:1.
4) To be increased to 22% once the market value of all metals delivered to Wheaton, net of the per ounce cash payment, exceeds the initial upfront cash deposit.
5) Under certain PMPAs, the Company’s attributable gold percentage will be reduced once certain thresholds are achieved:
a. Marathon – reduced to 67% once the Company has received 150,000 ounces of gold.
b. Marmato – reduced to 5.25% once Wheaton has received 310,000 ounces of gold.
c. Santo Domingo – reduced to 67% once the Company has received 285,000 ounces of gold.
d. Fenix – reduced to 4% once the Company has received 90,000 ounces of gold, with a further reduction to 3.5% once the Company has received 140,000 ounces.
e. Blackwater – reduced to 4% once the Company has received 464,000 ounces of gold.
f. Curipamba – reduced to 33% once the Company has received 145,000 ounces of gold.
g. Goose – reduced to 1.44% once the Company has received 87,100 ounces of gold, with a further reduction to 1% once the Company has received 134,000 ounces.
h. Cangrejos – reduced to 4.4% once the Company has received 700,000 ounces of gold.
i. Platreef - reduced to 50% once the Company has received 218,750 ounces of gold, with a further reduction to 3.125% once the Company has received 428,300
ounces, at which point the per ounce cash payment increases to 80% of the spot price of gold. If certain thresholds are met, including if production through the
Platreef project concentrator achieves 5.5 Mtpa, the 3.125% residual gold stream will terminate.
j. Curraghinalt – reduced to 1.5% once the Company has received 125,000 ounces of gold.
k. Cotabambas – reduced to 16.67% once the Company has received 90 million silver equivalent ounces.
6) The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter. On May 13, 2023, Minto Metals Corp., announced
the suspension of operations at the Minto mine. Prior to this, the parties were in discussions in connection with a possible restructuring of the Minto PMPA. During that
negotiation period, the cash payment per ounce of gold delivered was set at 90% of spot price. Following the May 13 announcement, and as negotiations were not
successful, the price of deliveries of gold reverts to 50% of spot price as set out in the existing Minto PMPA.
7) Under the Kudz Ze Kayah PMPA, the Company will be entitled to purchase staged percentages of produced gold ranging from 6.875% to 7.375% until 330,000 ounces of
gold are produced and delivered, thereafter reducing to a range of 5.625% to 6.125% until a further 59,800 ounces of gold are produced and delivered, further reducing to
a range of 5% to 5.5% until a further 270,200 ounces of gold are produced and delivered for a total of 660,000 ounces of gold thereafter ranging between 6.25% and
6.75%.
8) On November 15, 2023, the Company entered into the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs. Closing of the Orion Purchase
Agreement occurred on February 27, 2024.
1 Statements made in this section contain forward-looking information and readers are cautioned that actual outcomes may vary.
Please see “Cautionary Note Regarding Forward-Looking Statements” for material risks, assumptions and important disclosure
associated with this information.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [37]
Per Ounce Cash Payment for Silver
Mineral Stream Interests
Peñasquito
Constancia
Antamina
Other
Los Filos
Zinkgruvan
Stratoni
Neves-Corvo
Aljustrel
Minto
Pascua-Lama
Copper World
Loma de La Plata
Marmato
Cozamin
Blackwater
Curipamba
Mineral Park
Kudz Ze Kayah
⁹
Early Deposit
Toroparu
Cotabambas
Kutcho
Attributable
Payable
Production to be
Purchased
Per Ounce Cash
Payment 1
$
$
$
$
$
$
$
$
$
$
25%
100%
33.75%
100%
100%
100%
100%
100% ³
100% ⁴
25%
100%
12.5%
100% ⁶
50% ⁶
50% ⁶
75%
100%
6.875 ⁸
50%
100% ⁶
100%
$
$
4.50
6.20 ²
20%
4.68
4.68
11.54
4.46
50%
4.39
3.90
3.90
4.00
18% ⁷
10%
18% ⁷
18% ⁷
18% ⁷
20%
3.90
5.90
20%
Term of
Agreement
Life of Mine
Life of Mine
Life of Mine
25 years
Life of Mine
Life of Mine
50 years
50 years
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Date of
Original
Contract
24-Jul-07
8-Aug-12
3-Nov-15
15-Oct-04
8-Dec-04
23-Apr-07
5-Jun-07
5-Jun-07
20-Nov-08
8-Sep-09
10-Feb-10
n/a ⁵
5-Nov-20
11-Dec-20
13-Dec-21
17-Jan-22
24-Oct-23
22-Dec-21
11-Nov-13
21-Mar-16
14-Dec-17
1) The production payment is measured as either a fixed amount per unit of silver delivered, or as a percentage of the spot price of silver on the date of delivery. Contracts
where the payment is a fixed amount per ounce of silver delivered are subject to an annual inflationary increase, with the exception of Loma de La Plata. Additionally,
should the prevailing market price for silver be lower than this fixed amount, the per ounce cash payment will be reduced to the prevailing market price, subject to an
annual inflationary factor.
2) Subject to an increase to $9.90 per ounce of silver after the initial 40-year term.
3) Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine. On September 12, 2023, it was announced that the
production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the second quarter of 2025.
4) On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine.
5) Terms of the agreement not yet finalized.
6) Under certain PMPAs, the Company’s attributable silver percentage will be reduced once certain thresholds are achieved:
a. Marmato – reduced to 50% once the Company has received 2.15 million ounces of silver.
b. Cozamin – reduced to 33% once the Company has received 10 million ounces of silver.
c. Blackwater – reduced to 33% once the Company has received 17.8 million ounces of silver.
d. Cotabambas – reduced to 66.67% once the Company has received 90 million silver equivalent ounces.
7) To be increased to 22% once the total market value of all metals delivered to the Company, net of the per ounce cash payment, exceeds the initial upfront cash deposit.
8) Under the Kudz Ze Kayah PMPA, the Company will be entitled to purchase: staged percentages of produced silver ranging from 6.875% to 7.375% until 43.30 million
ounces of silver are produced and delivered, thereafter reducing to a range of 5.625% to 6.125% until a further 7.96 million ounces of silver are produced and delivered,
further reducing to a range of 5% to 5.5% until a further 35.34 million ounces of silver are produced and delivered for a total of 86.6 million ounces of silver and thereafter
ranging between 6.25% and 6.75%.
9) On November 15, 2023, the Company entered into the Orion Purchase Agreement to acquire the Kudz Ze Kayah PMPA. Closing of the Orion Purchase Agreement
occurred on February 27, 2024.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [38]
Per Ounce Cash Payment for Palladium and Platinum and Per Pound for Cobalt
Mineral Stream Interests
Attributable
Payable
Production to be
Purchased
Per Unit of
Measurement Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Palladium
Stillwater
Platreef ⁴
Platinum
Marathon
Platreef ⁴
Cobalt
4.5% ²
5.25% ²
22% ²
5.25% ²
18% ³
30% ²
18% ³
30% ²
Life of Mine
Life of Mine ²
16-Jul-18
7-Dec-21
Life of Mine
Life of Mine ²
26-Jan-22
7-Dec-21
Voisey's Bay
42.4% ²
18% ³
Life of Mine
11-Jun-18
1) The production payment is measured as either a fixed amount per unit of metal delivered, or as a percentage of the spot price of the underlying metal on the date of
delivery.
2) Under certain PMPAs, the Company’s attributable metal percentage will be reduced once certain thresholds are achieved:
a. Stillwater – reduced to 2.25% once the Company has received 375,000 ounces of palladium, with a further reduction to 1% once the Company has received 550,000
ounces.
b. Platreef – reduced to 3% once the Company has received 350,000 ounces of combined palladium and platinum, with a further reduction to 0.1% once the Company
has received a combined 485,115 ounces, at which point the per ounce cash payment increases to 80% of the spot price of palladium and platinum. If certain
thresholds are met, including if production through the Platreef project concentrator achieves 5.5 Mtpa, the 0.1% residual palladium and platinum stream will
terminate.
c. Marathon – reduced to 15% once the Company has received 120,000 ounces of platinum.
d. Voisey’s Bay – reduced to 21.2% once the Company has received 31 million pounds of cobalt.
3) To be increased to 22% once the market value of all metals delivered to Wheaton, net of the per unit cash payment, exceeds the initial upfront cash deposit.
4) On November 15, 2023, the Company entered into the Orion Purchase Agreement to acquire the Platreef PMPA. Closing of the Orion Purchase Agreement occurred on
February 27, 2024.
Other Contractual Obligations and Contingencies
Projected Payment Dates 1
2024
2025 - 2026
2027 - 2028
After 2028
Total
163,000
15,122
19,300
80,032
-
-
250
115,000
411,500
-
43,500
25,000
17,000
-
-
-
-
898
$
-
136,096
126,000
41,968
260,000
231,150
162,000
-
-
55,000
-
-
-
-
-
-
-
1,211
$
16,000
-
126,000
-
-
-
-
-
-
-
-
-
-
-
-
-
29,000
1,338
$
64,000
-
-
-
-
-
-
-
-
-
-
-
-
32,400
126,000
138,000
29,000
4,769
$
243,000
151,218
271,300
122,000
260,000
231,150
162,250
115,000
411,500
55,000
43,500
25,000
17,000
32,400
126,000
138,000
58,000
8,216
(in thousands)
Payments for mineral
stream interests &
royalty
$
Salobo 2
Marathon
Cangrejos
Marmato
Santo Domingo
Copper World 3
Curipamba
Mineral Park
Platreef
Curraghinalt
Kudz Ze Kayah
Fenix Gold
Mt Todd Royalty
Loma de La Plata
Payments for early
deposit mineral
stream interest
Cotabambas
Toroparu
Kutcho
Leases liabilities
Total contractual
obligations
$
890,602
$ 1,013,425
$
172,338
$
394,169
$ 2,470,534
1) Projected payment date based on management estimate. Dates may be updated in the future as additional information is received.
2) As more fully explained below, the expansion payment relative to the Salobo III expansion project is dependent on the timing and size of the throughput expansion.
3) Figure includes contingent transaction costs of $1 million.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [39]
Salobo
The Salobo mine historically had a mill throughput capacity of 24 Mtpa and is currently ramping up to full capacity of
36 Mtpa, expected in the fourth quarter of 2024. On November 21, 2023, the Company and Vale jointly announced
the successful completion of the throughput test for the first phase of the Salobo III expansion project, with the Salobo
complex exceeding an average throughput of 32 Mtpa over a 90-day period. As a result, Wheaton paid Vale $370
million on December 1, 2023, representing the amount due for completion of the first phase of the Salobo III
expansion project.
The remaining balance of the expansion payment is dependent on the timing of completion and will be triggered once
Vale expands actual throughput above 35 Mtpa for a period of 90 days. If actual throughput is expanded above 35
Mtpa by January 1, 2031, Wheaton will be required to make additional payments to Vale based on the size of the
expansion and the timing of completion. The set payments range from a total of $52 million if throughput is expanded
beyond 35 Mtpa by January 1, 2031, to up to $163 million if throughput is expanded beyond 35 Mtpa by January 1,
2025.
In addition, Wheaton will be required to make annual payments of between $5.1 million to $8.5 million for a 10-year
period following payment of the expansion payments if the Salobo mine implements a high-grade mine plan, with
payments to be made for each year the high-grade plan is achieved.
Marathon
Under the terms of the Marathon PMPA, the Company is committed to pay additional upfront cash payments of $151
million (Cdn$200 million), which is to be paid in four staged installments during construction of the Marathon project,
subject to various customary conditions being satisfied.
Cangrejos
Under the terms of the Cangrejos PMPA, which had a closing date of May 16, 2023, the Company is committed to
pay additional upfront consideration of $271 million. Of this amount, $15 million is to be paid 12 months after the
closing date, $4 million can be drawn upon for committed acquisition of surface rights and the remainder is to be paid
in four staged equal installments during construction of the mine, subject to various customary conditions being
satisfied.
Marmato
Under the terms of the Marmato PMPA, the Company is committed to pay Aris Mining additional upfront cash
payments of $122 million, payable during the construction of the Marmato Lower Mine development portion of the
Marmato mine, subject to customary conditions.
Santo Domingo
Under the terms of the Santo Domingo PMPA, the Company is committed to pay Capstone Copper Corp.,
(“Capstone”) additional upfront cash payments of $260 million, which is payable during the construction of the Santo
Domingo project, subject to customary conditions being satisfied, including Capstone attaining sufficient financing to
cover total expected capital expenditures.
Copper World Complex
The Company is committed to pay Hudbay total upfront cash payments of $230 million in two installments, with the
first $50 million being advanced upon Hudbay’s receipt of permitting for the Copper World Complex and other
customary conditions and the balance of $180 million being advanced once project costs incurred on the Copper
World Complex exceed $98 million and certain other customary conditions. Under the Copper World Complex PMPA,
the Company is permitted to elect to pay the deposit in cash or the delivery of common shares. Additionally, the
Company will be entitled to certain delay payments, including where construction ceases in any material respect, or if
completion is not achieved within agreed upon timelines.
Curipamba
Under the terms of the Curipamba PMPA, the Company is committed to pay additional upfront cash payments of
$162.3 million, which includes $250,000 which will be paid to support certain local community development initiatives
around the Curipamba Project. The payments will be payable in four staged installments during construction, subject
to various customary conditions being satisfied.
Mineral Park
Under the terms of the Mineral Park PMPA, the Company is committed to pay total upfront cash payments of $115
million in four payments during construction through three installments of $25 million and a final installment of $40
million.
Platreef
Under the terms of the Platreef PMPA, upon closing of the Orion Purchase Agreement, which occurred on February
27, 2024, the Company paid a total upfront cash payment of $412 million to Orion Resource Partners (“Orion”).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [40]
Curraghinalt
Under the terms of the Curraghinalt PMPA, the Company is committed to pay additional upfront cash payments of
$55 million to be paid to an affiliate of Dalradian Gold during construction of the Curraghinalt project.
Kudz Ze Kayah
Under the terms of the Kudz Ze Kayah PMPA, upon closing of the Orion Purchase Agreement, which occurred on
February 27, 2024, the Company paid a total upfront cash payment of $39 million to Orion, with an additional $5
million contingency payment due to Orion if the KZK project achieves certain milestones.
Fenix
Under the terms of the Fenix PMPA, the Company is committed to pay Rio2 Limited (“Rio2”) additional upfront cash
payments of $25 million, payable subject to Rio2’s receipt of its Environmental Impact Assessment (“EIA”) for the
Fenix Project, and certain other conditions. On December 20, 2023, Rio2 announced that it had received approval for
the EIA, however other conditions remain outstanding.
Mt Todd Royalty
Under the terms of the royalty agreement with Vista, the Company is committed to pay additional upfront cash
payment of $17 million to advance Mt. Todd and for general corporate purposes.
Loma de La Plata
Under the terms of the Loma de La Plata PMPA, the Company is committed to pay Pan American Silver Corp.,
(“PAAS”) total upfront cash payments of $32 million following the satisfaction of certain conditions, including PAAS
receiving all necessary permits to proceed with the mine construction and the Company finalizing the definitive terms
of the PMPA.
Cotabambas
Under the terms of the Cotabambas Early Deposit Agreement, the Company is committed to pay Panoro additional
upfront cash payments of $126 million. Following the delivery of a bankable definitive feasibility study, environmental
study and impact assessment, and other related documents (collectively, the "Cotabambas Feasibility
Documentation"), and receipt of permits and construction commencing, the Company may then advance the
remaining deposit or elect to terminate the Cotabambas Early Deposit Agreement. If the Company elects to
terminate, the Company will be entitled to a return of the portion of the amounts advanced less $2 million payable
upon certain triggering events occurring.
Toroparu
Under the terms of the Toroparu Early Deposit Agreement, the Company is committed to pay a subsidiary of Aris
Mining an additional $138 million, payable on an installment basis to partially fund construction of the mine. Aris
Mining is to deliver certain feasibility documentation. Prior to the delivery of this feasibility documentation, Wheaton
may elect to (i) not proceed with the agreement or (ii) not pay the balance of the upfront consideration and reduce the
gold stream percentage from 10% to 0.909% and the silver stream percentage from 50% to nil. If option (i) is chosen,
Wheaton will be entitled to a return of the amounts advanced less $2 million. If Wheaton elects option (ii), Aris Mining
may elect to terminate the agreement and Wheaton will be entitled to a return of the amount of the deposit already
advanced less $2 million.
Kutcho
Under the terms of the Kutcho Early Deposit Agreement, the Company is committed to pay Kutcho additional upfront
cash payments of $58 million, which will be advanced on an installment basis to partially fund construction of the
mine once certain conditions have been satisfied.
Taxes - Canada Revenue Agency – 2013 to 2016 Taxation Years - Domestic Reassessments 1
The Company received Notices of Reassessment in 2018, 2019, and 2022 for the 2013 to 2016 taxation years in
which the Canada Revenue Agency (“CRA”) is seeking to change the timing of the deduction of upfront payments
with respect to the Company’s PMPAs relating to Canadian mining assets, so that the cost of precious metal acquired
under these Canadian PMPAs is equal to the cash cost paid on delivery plus an amortized amount of the upfront
payment determined on a units-of-production basis over the estimated recoverable reserves, and where applicable,
resources and exploration potential at the respective mine (the “Domestic Reassessments”).
In total, the Company expects the Domestic Reassessments to have assessed tax, interest and other penalties of
approximately $2 million.
1 The assessment by management of the expected impact of the Domestic Reassessments on the Company is “forward-looking
information”. Please see “Cautionary Note Regarding Forward-Looking Statements” in the MD&A for material risks, assumptions
and important disclosure associated with this information.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [41]
Management believes the Company’s position, as reflected in its filed Canadian income tax returns and consistent
with the terms of the PMPAs, that the cost of the precious metal acquired under the Canadian PMPAs is equal to the
market value while a deposit is outstanding, and the cash cost thereafter, is correct. The Company has filed Notices
of Objection and paid 50% of the disputed amounts in order to challenge the Domestic Reassessments.
Tax Contingencies
Due to the size, complexity and nature of the Company’s operations, various legal and tax matters are outstanding
from time to time, including audits and disputes.
Under the terms of the settlement with the CRA of the transfer pricing dispute relating to the 2005 to 2010 taxation
years (the “CRA Settlement”), income earned outside of Canada by the Company’s foreign subsidiaries will not be
subject to tax in Canada under transfer pricing rules. The CRA Settlement principles apply to all taxation years after
2010 subject to there being no material change in facts or change in law or jurisprudence. The CRA is not restricted
under the terms of the CRA Settlement from issuing reassessments on some basis other than transfer pricing which
could result in some or all of the income of the Company’s foreign subsidiaries being subject to tax in Canada.
It is not known or determinable by the Company when any ongoing audits by CRA of international and domestic
transactions will be completed, or whether reassessments will be issued, or the basis, quantum or timing of any such
potential reassessments, and it is therefore not practicable for the Company to estimate the financial effect, if any, of
any ongoing audits.
From time to time there may also be proposed legislative changes to law or outstanding legal actions that may have
an impact on the current or prior periods, the outcome, applicability and impact of which is also not known or
determinable by the Company.
General
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The
assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of
future events. If the Company is unable to resolve any of these matters favorably, there may be a material adverse
impact on the Company’s financial performance, cash flows or results of operations. In the event that the Company’s
estimate of the future resolution of any of the foregoing matters changes, the Company will recognize the effects of
the change in its consolidated financial statements in the appropriate period relative to when such change occurs.
Share Capital
During the year ended December 31, 2023, the Company received proceeds of $12 million from the exercise of
488,922 share purchase options at a weighted average exercise price of Cdn$32.82 per option. During the year
ended December 31, 2022, the Company received cash proceeds of $11 million from the exercise of 493,129 share
purchase options at a weighted average exercise price of Cdn$28.76 per option.
During the year ended December 31, 2023, the Company released 119,827 RSUs, as compared to 87,838 RSUs
during the comparable period of the previous year.
The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to have
dividends reinvested directly into additional Wheaton common shares. During the three months ended December 31,
2023, there were 19,001 common shares issued under the DRIP (twelve months - 141,979 common shares). During
the three months ended December 31, 2022, there were 192,351 common shares issued under the DRIP (twelve
months - 873,607 common shares).
As of March 14, 2024, there were 453,069,254 outstanding common shares, 1,270,021 share purchase options and
316,336 restricted share units. The 10,000,000 share purchase warrants outstanding on December 31, 2022 expired
on February 28, 2023 unexercised.
At the Market Equity Program
The Company has established an at-the-market equity program (the “ATM Program”) that allows the Company to
issue up to $300 million worth of common shares from treasury (“Common Shares”) to the public from time to time at
the Company’s discretion and subject to regulatory requirements. The ATM Program will be effective until the date
that all Common Shares available for issue under the ATM Program have been issued or the ATM Program is
terminated prior to such date by the Company or the agents.
Wheaton intends that the net proceeds from the ATM Program, if any, will be available as one potential source of
funding for stream acquisitions and/or other general corporate purposes including the repayment of indebtedness. As
at December 31, 2023, the Company has not issued any shares under the ATM program.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [42]
Financial Instruments
The Company owns equity interests in several companies as long-term investments (see page 13 of this MD&A) and
therefore is inherently exposed to various risk factors including currency risk, market price risk and liquidity risk.
In order to mitigate the effect of short-term volatility in gold, silver and palladium prices, the Company will occasionally
enter into forward contracts in relation to gold, silver and palladium deliveries that it is highly confident will occur
within a given quarter. The Company does not hedge its long-term exposure to commodity prices. The Company has
not used derivative financial instruments to manage the risks associated with its operations and therefore, in the
normal course of business, it is inherently exposed to currency, interest rate and commodity price fluctuations.
Risks and Uncertainties
The primary risk factors affecting the Company are set forth below. For discussion of additional risk factors, please
refer to the Company’s Annual Information Form, which is available on the Company’s website,
www.wheatonpm.com, and on SEDAR+ at www.sedarplus.ca, or is available upon request from the Company. The
“Mining Operations” consist of all of the mineral stream interests currently owned by the Company.
Commodity Prices and Markets: Changes in the market price of commodities that we purchase under our
PMPAs and in the commodities markets will affect our profitability
The Company’s business operations are fully exposed to changes in the market prices of precious metals and cobalt.
The price of the common shares and the Company’s financial results may be significantly and adversely affected by a
decline in the price of precious metals and cobalt. The price of precious metals and cobalt fluctuates widely,
especially in recent years, and is affected by numerous factors beyond the Company’s control, including, but not
limited to, the sale or purchase of precious metals by various central banks and financial institutions, interest rates,
exchange rates, inflation or deflation, fluctuation in the value of the United States dollar and foreign currencies, global
and regional supply and demand, and the political and economic conditions of major precious metals and cobalt
producing countries throughout the world. The precious metals and cobalt markets tend to be cyclical, and a general
downturn could result in a significant decrease in the Company’s revenue. Any such price decline may have a
material adverse effect on the Company.
The profitability of Wheaton’s interests under the PMPAs is directly related to the market price of precious metals and
cobalt. The Company’s revenue is sensitive to changes in the price of precious metals and cobalt and the overall
condition of the precious metal and cobalt mining industry and markets, as it derives all of its revenue from precious
metals and cobalt streams. If Wheaton is unable to sell precious metals or cobalt production as a result of a reduction
in, or an absence of, demand for precious metals or cobalt, there could be a significant decrease in the Company’s
revenue which may have a material adverse effect on the Company or result in the Company not generating positive
cash flow or earnings.
In the event that the prevailing market price of precious metals and cobalt is at or below the price at which the
Company can purchase such commodities pursuant to the terms of the PMPAs associated with its precious metals
and cobalt interests, the Company will not generate positive cash flow or earnings, which could have a material
adverse effect on the Company.
Precious metals and cobalt are by-product metals at all of the Mining Operations, other than gold at the Marmato
mine, Toroparu project, Fenix project, Goose project, Blackwater project, Black Pine project, Curraghinalt project, Mt
Todd project and DeLamar project, silver at the Loma de La Plata zone of the Navidad project and palladium at the
Stillwater mines and Platreef project, and therefore, the economic cut off applied to the reporting of precious metals
and cobalt reserves and resources will be influenced by changes in the commodity prices of other metals at the
mines.
Risks Relating to the Mining Operations
To the extent that they relate to the production of precious metals or cobalt from, or the continued operation of, the
Mining Operations, the Company will be subject to the risk factors applicable to the operators of such mines or
projects, as more fully described in the Company’s Annual Information Form.
No Control Over Mining Operations: The Company has no direct involvement in the operation of the Mining
Operations and as a result the activities of third-party operators at these Mining Operations could negatively
affect the cash flows generated by the Company
The Company’s business operations are fully exposed to the risk that Mining Operations will not meet production
forecasts or targets. The Company has agreed to purchase a certain percentage of the gold, silver, palladium and/or
cobalt produced by the Mining Operations. The Company is not directly involved in the ownership or operation of
mines and generally has no contractual rights relating to the operation of the Mining Operations. The owners and
operators will generally have the power to determine the manner in which the relevant properties subject to the asset
portfolio are exploited, including decisions to expand, advance, continue, reduce, suspend or discontinue production
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [43]
from a property and decisions about the marketing of products extracted from the property. The interests of the
Company and the operators of the relevant properties may not always be aligned. As a result, the cash flows of the
Company are dependent upon the activities of third parties, which creates the risk that at any time those third parties
may: (i) have business interests or targets that are inconsistent with those of the Company, (ii) take action contrary to
the Company’s policies or objectives, (iii) be unable or unwilling to fulfill their obligations under their agreements with
the Company, or (iv) experience financial, operational or other difficulties, including insolvency, which could limit or
suspend a third-party’s ability to perform its obligations under the PMPAs. At any time, any of the operators of the
Mining Operations may decide to suspend or discontinue operations, including if the costs to operate the mine, or
observe the obligations of the PMPA, exceed the revenues from operations.
The ability for the operators of the Mining Operations to act in their sole discretion could therefore have a material
adverse effect on the Company’s business, financial condition, results of operations and cash flows.
Except in limited circumstances, the Company will not be entitled to any material compensation if such operations do
not meet their forecasted precious metals or cobalt production targets in any specified period or if the operations shut
down, suspend or discontinue on a temporary or permanent basis. There can be no assurance that the precious
metals or cobalt production from such properties will ultimately meet forecasts or targets. In addition, payments from
production generally flow through the operator and there is a risk of delay and additional expense in receiving such
revenues. The PMPA and royalty payments are calculated by the operators based on reported production, and the
calculations of the Company’s payments are subject to, and dependent upon, the adequacy and accuracy of the
operators’ production and accounting functions, and errors may occur from time to time in the calculations made by
an operator. Certain PMPAs require the operators to provide the Company with production and operating information
that may, depending on the completeness and accuracy of such information, enable the Company to detect errors in
the calculation of the payments that it receives. The Company does not, however, have the contractual right to
receive production information under all of its PMPAs. As a result, the Company’s ability to detect payment errors
through its monitoring program and its associated internal controls and procedures is limited, and the possibility exists
that the Company may not receive all metal owed under the respective contract. Some of Wheaton’s PMPAs may
provide the right to audit the operational calculations and production data for the associated payments; however,
such audits may occur many months following when the original delivery of metal was due, which may result in the
delay of metal deliveries to later periods, which may impact the Company's business, financial condition, results of
operations and cash flows.
Failure to receive payments under the PMPAs to which the Company is entitled may have a material adverse effect
on the Company. In addition, the Company has limited access to data on the Mining Operations themselves and must
rely on the accuracy and timeliness of the public disclosure and other information it receives from the owners and
operators of the Mining Operations, and uses such information, including production estimates, in its analyses,
forecasts, valuations and assessments relating to its own business. This could affect the Company’s ability to assess
the performance of the PMPAs. If the information provided by such third parties to the Company contains material
inaccuracies or omissions, the Company’s ability to accurately forecast or achieve its stated objectives may be
materially impaired. In addition, some PMPAs may be subject to confidentiality arrangements which govern the
disclosure of information with regards to the applicable interest and, as such, the Company may not be in a position
to publicly disclose non-public information with respect to certain PMPAs. The limited access to data and disclosure
regarding the Mining Operations may restrict the Company’s ability to enhance its performance which may result in a
material and adverse effect on the Company’s business, financial condition, results of operations and cash flows.
Although the Company attempts to obtain these rights when entering into new PMPAs or amending existing PMPAs,
there is no assurance that its efforts will be successful.
Taxes: New or changed tax legislation, or changes to the interpretation of existing tax legislation or
jurisprudence, could impact the profitability of the Company
The majority of the Company’s income generating activities is conducted by its 100% owned subsidiary, Wheaton
Precious Metals International Ltd., which operates in the Cayman Islands and is not subject to tax.
The introduction of new tax laws, regulations or rules, or changes to, or differing interpretation of, or application of, or
court decisions in respect of, existing tax laws, regulations or rules in Canada, the Cayman Islands, Barbados or
Luxembourg, or any of the countries in which the Company’s subsidiaries or the Mining Operations are located, or to
which deliveries of precious metals, precious metals credits or cobalt are made, could result in an increase in the
Company’s taxes, or other governmental charges, duties or impositions.
No assurance can be given that new tax laws, regulations or rules will not be enacted or that existing tax laws,
regulations or rules will not be changed, interpreted, applied or decided upon in a manner which could result in the
Company’s profits being subject to additional taxation or which could otherwise have a material adverse effect on the
Company or the price of the Common Shares.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [44]
Global Minimum Tax
On December 20, 2021, the OECD issued Pillar Two which provided a framework for the imposition, by individual
countries, of a 15% global minimum tax on the adjusted financial statement income of large multinational companies,
such as the Company.
Wheaton is within the scope of global minimum tax under Pillar Two. Subject to tax legislation enacting Pillar Two
being passed in the jurisdictions where the Company and its subsidiaries operate, the group is liable to pay a top-up
tax for any deficiency between the minimum tax rate of 15% and the effective tax rate per jurisdiction. Wheaton, as
well as Silver Wheaton Luxembourg have an effective tax rate that exceeds 15% or are in a loss position. The
Wheaton group’s subsidiaries that operate in the Cayman Islands have an effective tax rate of 0%. For the years
ended December 31, 2023 and 2022, the Cayman Islands subsidiaries had net earnings of $551 million and $532
million, respectively.
The application of Pillar Two legislation is expected to increase the amount of taxes the Wheaton group owes.
The Company does not operate in any jurisdiction where Pillar Two legislation was effective as for the year ended
December 31, 2023 and 2022 and therefore the Company has no related current tax expense associated with global
minimum tax. Jurisdictional updates are as follows:
Canada: On August 4, 2023, the Canadian Federal Government released draft Pillar Two implementing legislation as
a new act, the Global Minimum Tax Act (“GMTA”), for public comment. The public consultation period on the draft
legislation ended September 29, 2023. If enacted, the GMTA would implement a 15% global minimum tax for fiscal
years that begin on or after December 31, 2023. If enacted as drafted, the proposed Canadian rules in the GMTA
would apply to the income of the Company’s Cayman Island subsidiaries from January 1, 2024.
Luxembourg: Pillar Two legislation was enacted in Luxembourg on December 22, 2023. The rules are applicable from
January 1, 2024. As discussed above, Silver Wheaton Luxembourg has an effective tax rate in excess of 15%. The
Luxembourg Pillar Two legislation also contains an undertaxed profits rule which is effective January 1, 2025, that
would allow Luxembourg to collect Pillar Two top-up taxes related to the Company’s subsidiaries operating in the
Cayman Islands if the GMTA were not enacted in Canada. Given the Canadian government’s stated intent to enact the
GMTA, the Company does not expect the Luxembourg Pillar Two legislation to have a material impact on the Company.
Cayman Islands: To date, the government of the Cayman Islands has indicated that they do not intend to enact Pillar
Two Legislation.
CRA Settlement
Under the terms of the CRA Settlement, income earned outside of Canada by the Company’s foreign subsidiaries will
not be subject to income tax in Canada under transfer pricing rules. The CRA Settlement principles apply to all
taxation years after 2010 subject to there being no material change in facts or change in law or jurisprudence. While
to date there has been no change in applicable law, the Department of Finance’s consultation paper released on
June 6, 2023 may result in potential amendments to existing transfer pricing laws under the Tax Act, which could
have a material adverse effect on the Company or the price of the Common Shares.
It is not known or determinable by the Company when any ongoing audits by CRA of international and domestic
transactions will be completed, or whether reassessments will be issued, or the basis, quantum or timing of any such
potential reassessments, and it is therefore not practicable for the Company to estimate the financial effect, if any, of
any ongoing audits.
Counterparty Credit and Liquidity: The inability of the Company’s counterparties to perform their obligations
under agreements with the Company or the inability of the Company to meet operating expenditure
requirements could adversely impact the Company’s cash flows
The Company is exposed to counterparty risks and liquidity risks including, but not limited to: (i) through the
companies with which the Company has PMPAs which may experience financial, operational or other difficulties,
including insolvency, which could limit or suspend those companies’ ability to perform their obligations under those
PMPAs; (ii) through the companies with which the Company has advanced funds in exchange for convertible notes
receivable; (iii) through financial institutions that hold the Company’s cash and cash equivalents; (iv) through
companies that have payables to the Company, including concentrate customers; (v) through the Company’s
insurance providers; (vi) through companies that owe a refund of the Refundable Deposit under the terms of the
respective PMPA; and (vii) through the Company’s lenders. The Company is also exposed to liquidity risks in meeting
its operating expenditure requirements in instances where cash positions are unable to be maintained or appropriate
financing is unavailable. These factors may impact the ability of the Company to obtain loans and other credit
facilities in the future and, if obtained, on terms favourable to the Company. If these risks materialize, the Company’s
operations could be adversely impacted and the trading price of the Company’s securities could be adversely
affected.
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In the event that a counterparty with which the Company has a PMPA were to experience financial, operational or
other difficulties (such as Vale in connection with the Brumadinho Incident as discussed on page 47 of this MD&A or
a counterparty that is unable to favourably resolve the application of new or existing tax laws, regulations or rules or
any tax audits or disputes), then that counterparty may (i) be unable to deliver some or all of the precious metals or
cobalt due under the applicable PMPA with that counterparty; (ii) otherwise default in its obligations under that PMPA;
(iii) cease operations at one or more mines that are the subject of that PMPA; or (iv) become insolvent. As a result,
any of these or other adverse financial or operational consequences on a counterparty may also have a material
adverse effect on Wheaton’s business, financial condition, results of operations and cash flows. While Wheaton may
have in place security or guarantees to mitigate the risks related to counterparty credit and liquidity, there is no
assurance that Wheaton will be successful in enforcing its rights under any security or guarantees.
In addition, parties to contracts do not always honour contractual terms and contracts themselves may be subject to
interpretation or technical defects. To the extent counterparties with which the Company has PMPAs do not abide by
their contractual obligations, the Company would be forced to take legal action to enforce its contractual rights. Such
litigation may be time consuming and costly and there is no guarantee of success. Any pending proceedings or
actions or any decisions determined adversely may have a material and adverse effect on Wheaton’s business,
financial condition, results of operations and cash flows.
San Dimas - Mexican Tax Dispute
In February 2016, Primero Mining Corp. ("Primero") announced that its Mexican subsidiary, Primero Empresa Minera
S.A. de C.V. ("PEM"), received a legal claim from the Mexican tax authorities, Servicio de Administración Tributaria
(“SAT”), seeking to nullify the Advance Pricing Agreement issued by SAT in 2012 (“2012 APA”). The 2012 APA
confirmed PEM’s ability to pay taxes in Mexico on the sale of silver on actual prices realized by its Mexican subsidiary
in connection with silver sales under the San Dimas SPA for the tax years 2010 through 2014.
As disclosed by First Majestic in their MD&A for the period ended December 31, 2023, in 2019 the SAT issued
reassessments for the 2010 to 2012 tax years in the amount of $359.3 million inclusive of interest, inflation, and
penalties. In 2021, the SAT also issued a reassessment against PEM for the 2013 tax year in the total amount of
$189.9 million and in 2023, the SAT issued reassessments for the 2014, 2015 and 2016 tax years in the total amount
of $484.2 million inclusive of interest, inflation, and penalties. The major items in the reassessments include
determination of revenue based on silver spot market prices, denial of the deductibility of interest expense and
service fees, SAT technical error related to double counting of taxes, and interest and penalties.
First Majestic indicates in its MD&A for the period ended December 31, 2023, that it continues to defend the APA in
the Mexican legal proceedings, and also requested resolution of the transfer price dispute pursuant to the Mutual
Agreement Procedure (“MAP”), under the relevant avoidance of double taxation treaties, between the competent tax
authorities of Mexico, Canada, Luxembourg and Barbados.
First Majestic has indicated that it continues to pursue all available domestic and international remedies under the
laws of Mexico and under the relevant tax treaties. In September 2020, First Majestic was served with a decision
made by the Mexican Federal Tax Court on Administrative Matters ("Federal Court") to nullify the APA granted to
PEM. The Federal Court’s decision directs SAT to re-examine the evidence and basis for the issuance of the APA
with retroactive effect, for the following key reasons:
(i) SAT’s errors in analyzing PEM’s request for the APA and the evidence provided in support of the request;
and
(ii) SAT’s failure to request from PEM certain additional information before issuing the APA.
First Majestic states that they filed an appeal of the decision to the Mexican Circuit Courts on November 30, 2020.
Since two writs of certiorari were filed before the Mexican Supreme Court of Justice, on April 15, 2021, the Plenary of
the Supreme Court i) admitted one of those writs, ii) requested the Circuit Court to send the appeal file and iii)
assigned such writ to the Second Chamber of the Supreme Court for issuing the corresponding decision. Both writs
of certiorari were withdrawn in December 2022. The challenge filed by First Majestic was returned to the Mexican
Circuit Courts and on December 5, 2023, the Second Collegiate Court issued a decision, which was formally notified
to First Majestic on January 4, 2024. In the decision, the Second Collegiate Court partially granted constitutional
protection to First Majestic with respect to certain matters, but not others. Accordingly, on January 18, 2024, PEM
filed an extraordinary appeal to the Mexican Supreme Court of Justice with respect to the Second Collegiate Court's
decision, and PEM is currently waiting for the Supreme Court to admit such appeal.
On March 2, 2021, First Majestic announced that it has submitted a Request for Arbitration to the International Centre
for Settlement of Investment Disputes, on its own behalf and on behalf of PEM, based on Chapter 11 of the North
American Free Trade Agreement.
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First Majestic also indicates that SAT has frozen a PEM bank account with cumulative funds of $107.2 million, as a
guarantee against certain disputed tax assessments, with these balances consisting of VAT refunds that PEM
received which were previously withheld by the tax authority.
First Majestic indicates that if the SAT is successful in retroactively nullifying the APA and enforcing reassessments, it
would likely have a material adverse effect on First Majestic’s results of operations, financial condition and cash
flows. PEM would have rights of appeal in connection with any reassessments. First Majestic states that they
continue to believe PEM’s filings were appropriate and continue to believe its tax filing position based upon the APA
is correct. However, they note that should PEM ultimately be required to pay tax on its silver revenues based on
market prices without any mitigating adjustments, the incremental income tax for the years 2010-2019 would be
approximately $314.2 million, before interest or penalties.
To the extent that First Majestic is not able to defend the validity of the 2012 APA or the SAT determines that the
appropriate price to tax sales under the former San Dimas SPA or the new San Dimas PMPA is significantly different
from the actual realized prices thereunder, it may have an adverse impact on First Majestic’s business, financial
condition or results of operations. If the Company was unable to purchase any further gold under the San Dimas
PMPA, it may have a material adverse effect on Wheaton’s business, financial condition, results of operation and
cash flows. In addition, should this occur, there is no assurance that Wheaton would be successful in enforcing its
rights under the security interest granted by First Majestic or its other remedies under the San Dimas PMPA.
Vale - Brumadinho Incident
On January 25, 2019, Vale’s mining operations in Brumadinho, Minas Gerais, Brazil experienced a significant breach
and failure of a retaining dam around the tailings disposal area (the “Brumadinho Incident”). Vale reported that in
December 2021, Vale and Xikrin do Cateté Indigenous community signed an extrajudicial agreement for social and
economic compensation to these communities. The agreement with Xikrin do Cateté was ratified by the Court of
Marabá and it is in a regular execution with the transfer of funds by Vale (BLR 1.3M/M) and application by the
indigenous community. The Xikrin Trincheira Bacajá Indigenous Community presented a request for clarification
against the decision that extinguished the action in relation to this community, alleging that the closing of the case
disagreed with the legal and procedural provisions applied to the case. The Public Prosecutor's Office presented a
request for clarification to the Court of Marabá regarding the non-analysis of the request for the conviction of Vale and
Salobo Metais to execute a “Degraded Area Recovery Program”, since it was a request that was not the subject of
the agreement signed between Vale and the Xikrin do Cateté Indigenous Community. Vale awaits to be subpoenaed
from the Court of Marabá to present the counterarguments to the requests for clarifications made by the Xikrin
Trincheira Bacajá Indigenous Community and the Public Prosecutor, reaffirming the regularity of the agreement
entered; the inexistence of impacts from the Salobo mine undertaking on the Xikrin Trincheira Bacajá Indigenous
Community and the inexistence of mandatory implementation of the reparation program indicated by the Public
Prosecutor due to the non-existence of the alleged damage. In August 2022, the Xikrin Indigenous Community of TI
Bacajá filed an appeal against the decision, not agreeing with the terms presented by the judge. Vale is summoned to
present its counterarguments, reiterating the terms and theses already presented in the defense. While the
Brumadinho Incident did not occur at any mine that is the subject of the Company’s PMPAs, the consequences of the
Brumadinho Incident for Vale may have an impact on the Company’s business, financial condition and results of
operations.
Mine Operator and Counterparty Concentration: If mine operators or counterparties are unwilling or unable
to fulfill their obligations to the Company, the Company’s cash flows could be adversely impacted
Precious metals and cobalt purchases under certain of Wheaton’s PMPAs are subject to both mine operator
concentration risk and counterparty concentration risk, including as follows:
•
•
•
The counterparty obligations under the Salobo, Sudbury and Voisey’s Bay PMPAs are guaranteed by the
parent company Vale. Total revenues relative to Vale during the year ended December 31, 2023 were 45%
of the Company’s total revenue; and
The counterparty obligations under the Constancia and 777 PMPAs are guaranteed by the parent company
Hudbay Minerals Inc. (“Hudbay”). Total revenues relative to Hudbay during the year ended December 31,
2023 were 15% of the Company’s total revenue.
The counterparty obligations under the Peñasquito PMPA are guaranteed by the parent company Newmont.
Total revenues relative to Newmont during the year ended December 31, 2023 were 10% of the Company’s
total revenue.
Should any of these mine operators or counterparties become unable or unwilling to fulfill their obligations under their
agreements with Wheaton, or should any of the risk factors identified by Wheaton materialize in respect of the mine
operators, counterparties or the Mining Operations, there could be a material adverse effect on Wheaton, including,
but not limited to, Wheaton’s revenue, net income and cash flows from operations.
In particular, total revenues relative to PMPAs with Vale were 45% and 35% of the Company’s total revenue for the
years ended December 31, 2023 and December 31, 2022, respectively; operating cash flows from the PMPAs with
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Vale represented approximately 48% and 39% of the Company’s operating cash flows for the years ended December
31, 2023 and December 31, 2022, respectively; and as at December 31, 2023, the PMPAs with Vale proven and
probable precious metal and cobalt reserves represented approximately 42% of the Company’s total proven and
probable GEO reserves, measured and indicated precious metals and cobalt resources represented approximately
20% of the Company’s GEO measured and indicated precious metals and cobalt resources and inferred precious
metals and cobalt resources represented approximately 21% of the Company’s total inferred GEO resources (as
described in the Attributable Reserves and Resources section of the Company’s MD&A). If Wheaton was unable to
purchase any further precious metals or cobalt under the PMPAs with Vale, Wheaton’s reserves and resources would
be significantly reduced and Wheaton’s forecasted gold equivalent production for 2024 and average five year
forecasted gold equivalent production for 2024-2028 would be lowered by 46% and 41%, respectively, leading to a
corresponding reduction to its revenue, net earnings and cash flows.
Vale – Xikrin Community
Vale has reported that associations representing the indigenous communities of Xikrin do Cateté and Xikrin do Bacajá
in Brazil (“Indigenous Associations”) brought a public civil action against Vale, the Federal Environmental Agency
(IBAMA) and the Federal Indigenous Agency (FUNAI) seeking the suspension of the environmental permitting process
and operation of the Salobo Mine. Vale has reported that the Indigenous Associations contend that FUNAI and IBAMA
have failed to conduct the appropriate studies regarding the affected indigenous communities during the environmental
permitting process and contends that Vale's operations would be contaminating the water of the Itacaiúnas River and
consequently that the indigenous groups affected by this mine have not provided the required consent. Vale notes that
the plaintiffs also requested a monthly payment for each association until the defendants conclude the studies. Vale
notes that in July 2019, the Judge of the Federal Court of Maraba partially granted an injunction requested by the
Indigenous Associations, ordering Vale and Salobo to prepare the indigenous component study of the Salobo Mine
project, and rejected all other requests filed by the plaintiff, including project shutdown. Vale also notes that a
subsequent decision of the court determined the inclusion of the Indigenous community of Xikrin do Bacajá in the scope
of the studies. Vale has reported that in December 2021 it entered into an extrajudicial agreement with the Indigenous
Associations, pursuant to which Vale agreed to provide certain social and economic compensation to these
communities. Vale notes that the December 2021 settlement agreement remains subject to approval by the court of
Marabá. Once approved by the court, Vale has indicated that this settlement agreement is expected to terminate the
Salobo litigation. However, if as a result of these proceedings it is determined that the activities at the Salobo mine
should be suspended then, the ability of the Company to receive gold under the terms of the Salobo PMPA would be
materially impacted which in turn could have a material impact on the Company’s financial conditions, results of
operations and cash flows.
See also Risks Relating to the Company – Counterparty Credit and Liquidity Risk”, “Risks Relating to the Company –
Security Over Underlying Assets”, “Risks Relating to the Company – Indebtedness and Guarantees Risk”, “Risks
Relating to the Mining Operations – International Operations”, “Risks Relating to the Mining Operations – Exploration,
Development, Operating, Expansion and Improvements Risks” and “Risks Relating to the Mining Operations – Land
Title and Indigenous Peoples” in the Company’s Annual Information Form.
Indebtedness and Guarantees: If the Company and its subsidiaries are unable to meet debt repayment
obligations or covenants, the Company’s business and operations could be adversely impacted
As of December 31, 2023, the Company had no debt outstanding under the Revolving Facility. Any future draws on
the Revolving Facility will require the Company to use a portion of its cash flow to service principal and interest on the
debt, which will limit the cash flow available for other business opportunities. The Company’s ability to make
scheduled payments of the principal of, to pay interest on, or to refinance indebtedness depends on its future
performance, which is subject to economic, financial, competitive and other factors beyond its control (including, in
particular, the continued receipt of precious metals and/or cobalt under the terms of the relevant PMPA agreements).
If any of these factors beyond its control arose, the Company may not continue to generate cash flow in the future
sufficient to service debt and make necessary capital expenditures. If the Company is unable to generate such cash
flow, it may be required to adopt one or more alternatives, such as reducing or eliminating dividends, restructuring
debt or obtaining additional equity capital on terms that may be onerous or highly dilutive. The Company’s ability to
refinance indebtedness will depend on the capital markets and its financial condition at such time. The Company may
not be able to engage in any of these activities or engage in these activities on desirable terms, which could result in
a default on its debt obligations.
The terms of the Revolving Facility require the Company to satisfy various affirmative and negative covenants and to
meet certain financial ratios and tests. These covenants limit, among other things, the Company’s ability to incur
further indebtedness if doing so would cause it to fail to meet certain financial covenants, create certain liens on
assets or engage in certain types of transactions. The Company can provide no assurances that in the future, it will
not be limited in its ability to respond to changes in its business or competitive activities or be restricted in its ability to
engage in mergers, acquisitions or dispositions of assets. Furthermore, due to factors beyond its control (for example,
due to an event of force majeure or other disruption at operations, the Company does not receive sufficient precious
metals or cobalt from its counterparties in accordance with the terms of the PMPAs), the Company may fail to comply
with these covenants, including a failure to meet the financial tests or ratios, and any subsequent failure by the
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Company’s subsidiaries to comply with guarantee obligations, would likely result in an event of default under the
Revolving Facility and would allow the lenders to accelerate the debt, which could materially and adversely affect the
Company’s business, financial condition and results of operations and its ability to meet its payment obligations under
debt, and the price of the common shares.
In addition, each subsidiary of the Company has guaranteed the obligations of the Company under the Revolving
Facility. See “Description of the Business – Operations – Amended Revolving Credit Facility” in the Company’s
Annual Information Form for further details. While the Revolving Facility is unsecured, as guarantors, any or all of
Wheaton’s subsidiaries can be called upon by lenders for the repayment of the obligations under the Revolving
Facility if Wheaton were to default.
Hedging: The Company’s hedging policy may not reduce the risks associated with foreign exchange, interest
rate or commodity fluctuations, which could adversely impact the Company’s cash flows
The Company has a policy that permits hedging its foreign exchange and interest rate exposures to reduce the risks
associated with currency and interest rate fluctuations. The Company also has adopted a policy to allow the forward
sale of forecast precious metals deliveries provided that such sales shall not extend beyond the end of a financial
quarter of the Company.
Hedging involves certain inherent risks including: (a) credit risk - the risk that the creditworthiness of a counterparty
may adversely affect its ability to perform its payment and other obligations under its agreement with the Company or
adversely affect the financial and other terms the counterparty is able to offer the Company; (b) market liquidity risk –
the risk that the Company has entered into a hedging position that cannot be closed out quickly, by either liquidating
such hedging instrument or by establishing an offsetting position; and (c) unrealized fair value adjustment risk – the
risk that, in respect of certain hedging products, an adverse change in market prices for commodities, currencies or
interest rates will result in the Company incurring losses in respect of such hedging products as a result of the
hedging products being out-of-the money on their settlement dates.
There is no assurance that a hedging program designed to reduce the risks associated with foreign
exchange/currency, interest rate or commodity fluctuations will be successful. Although hedging may protect the
Company from adverse changes in foreign exchange/currency, interest rate or commodity fluctuations, it may also
prevent the Company from fully benefitting from positive changes.
Competition: The competition for PMPAs and similar transactions could adversely impact the Company’s
ability to acquire desirable PMPAs
The Company competes with other companies for PMPAs and similar transactions. Some of these companies may
possess greater financial and technical resources or may be willing to agree to contractual terms that are
unacceptable to the Company. Such competition may result in the Company being unable to enter into desirable
PMPAs or similar transactions, to recruit or retain qualified employees or to acquire the capital necessary to fund its
PMPAs. As a result, existing or future competition for PMPAs and similar transactions could materially adversely
affect the Company’s prospects for entering into additional PMPAs in the future. In addition, competition from
companies with substantial resources could impact the Company’s ability to acquire PMPAs and similar transactions
at acceptable valuations or at acceptable returns, which could adversely impact the Company’s cash flows, results of
operations and financial condition.
Security Over Underlying Assets: The Company’s security and other interests in its PMPAs may not be
enforceable which may have a material adverse effect on the Company
There is no guarantee that the Company will be able to effectively enforce any guarantees, indemnities or other
security interests it may have. Should a bankruptcy or other similar event related to a mining operator occur that
precludes a party from performing its obligations under the PMPA, the Company would have to consider enforcing its
security or other interests. In the event that the mining operator has insufficient assets to pay its liabilities, it is
possible that other liabilities will be satisfied prior to the liabilities owed to the Company. In addition, bankruptcy or
other similar proceedings are often a complex and lengthy process, the outcome of which may be uncertain and
could result in a material adverse effect on the Company.
In addition, because many of the Mining Operations are owned and operated by foreign affiliates, the Company’s
security and other interests may be subject to enforcement and insolvency laws of foreign jurisdictions that differ
significantly from those in North America, and the Company’s security and other interests may not be enforceable as
anticipated. Further, there can be no assurance that any judgments obtained in Canadian courts will be enforceable
in any of those jurisdictions outside of Canada. If the Company is unable to enforce its security or other interests,
there may be a material adverse effect on the Company.
Third-Party PMPAs: PMPAs acquired from third-parties may not reflect typical terms and conditions
The terms and conditions of PMPAs that the Company acquires from a third-party have been, by their nature,
negotiated by the third-party with the applicable mining operator and not by the Company. Therefore, such PMPAs
may not reflect terms and conditions that the Company would normally seek to obtain in PMPAs, including, without
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limitation, terms and conditions relating to indemnities, covenants, representations and warranties, security,
guarantees, events of default, remedies and other matters. As a result, the contractual remedies and protections that
the Company may have in connection with such PMPAs may be more limited relative to its typical PMPAs, whether in
an insolvency proceeding, default situation or otherwise, and the Company may not be able to recover all, or any
portion of, the liabilities owed to the Company. This could result in a material adverse effect on the Company.
Revenue from Royalties: The Company holds mineral royalty interests where revenue is subject to cost
deductions, which are beyond the control of the Company and may have an adverse effect on the Company
The Company holds mineral royalty interests that allow the mining operator to deduct certain costs, including, but not
limited to, marketing and sales charges, sampling, transportation of minerals, refinery or smelter costs, taxes or other
incidental and handling costs. Such costs will fluctuate in ways that are unpredictable and are beyond the control of
the Company and can significantly impact the revenue the Company may receive on these mineral royalty interests.
Increases in costs incurred by the mining operator on permitted cost deductions will likely result in a decline in the
revenue received by the Company on these mineral royalty interests and will impact overall revenue of the Company
and could result in an adverse effect on the Company.
Acquisition Strategy: The Company’s acquisition strategy for PMPAs may not be successful, which may
have a material adverse effect on the Company
As part of the Company’s business strategy, it has sought and will continue to seek new exploration, development
and mining opportunities in the resource industry. In pursuit of such opportunities, the Company may fail to select
appropriate acquisition candidates or negotiate acceptable arrangements, including arrangements to finance
acquisitions or integrate the acquired businesses and their personnel into the Company. The Company cannot assure
that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or
that any acquisitions or business arrangements completed will ultimately benefit the Company.
In addition, the introduction of new tax laws or regulations or accounting rules or policies or rating agency policies, or
changes to, or differing interpretations of, or application of, existing tax laws or regulations or accounting rules or
policies or rating agency policies, could make PMPAs less attractive to counterparties. Such changes could adversely
affect the Company's ability to enter into new PMPAs and could have a negative impact on the Company’s financial
position.
As part of the Company’s portfolio optimization, the Company may consider opportunities to restructure or dispose of
PMPAs where it believes such a restructuring or disposition may provide a long-term benefit to the Company, even if
such restructuring or disposition may reduce near-term operating revenues, reduced mineral reserves and/or mineral
resources or result in the Company incurring transaction related costs. In connection with a restructuring or
disposition, the Company may receive different forms of consideration, including long-term equity investments in
other companies.
The Company may enter into one or more acquisitions, restructurings, dispositions or other streaming transactions at
any time.
Future Financing and Future Securities Issuances: The Company can provide no assurance that it will be
able to obtain adequate financing in the future. The Company may have to raise additional capital or finance
transactions through the issuance of additional equity securities, which could result in dilution to its
shareholders
There can be no assurance that the Company will be able to obtain adequate financing in the future or that the terms
of such financing will be favourable. Failure to obtain such additional financing could impede the Company’s funding
obligations, or result in delay or postponement of further business activities which may result in a material and
adverse effect on the Company’s profitability, results of operations and financial condition. The Company may require
new capital to continue to grow its business and there are no assurances that capital will be available when needed, if
at all. In the event that the Company chooses to raise debt capital to finance any acquisition, the Company’s leverage
will be increased.
To the extent that additional capital is raised through the issuance of additional equity securities or the Company
issues additional equity securities in the future in connection with acquisitions, strategic transactions or other
purposes, this could result in dilution to existing shareholders and some or all of the Company’s financial measures
could be reduced on a per share basis.
Third Party Interests: Certain of the Company’s mineral stream interests and mineral royalty interests may be
subject to rights in favour of others or third parties that could adversely affect the revenues generated from
the PMPAs
Some of the Company’s mineral stream interests and mineral royalty interests are subject to: (i) buy-back right
provisions pursuant to which an operator may buy-back all or a portion of the mineral stream or mineral royalty
interest, as applicable, and (ii) pre-emptive rights pursuant to which parties to PMPAs have the right of first refusal or
first offer with respect to a proposed sale or assignment of such interest by or to the Company. Holders may exercise
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these rights such that certain mineral stream interests and mineral royalty interests would no longer be held by the
Company or would be difficult for the Company to acquire. Any compensation received as a result may be
significantly less than the Company’s assumptions regarding the asset.
Defects, Impairments and Limitations: A defect or impairment in a PMPA may defeat or impair the claim of
the Company, and a limitation in the PMPA may limit or restrict the Company’s rights, which may have a
material adverse effect on the Company
A defect in a streaming transaction and/or a PMPA may arise to defeat or impair the claim of the Company to such
transaction, which may have a material adverse effect on the Company. It is possible that material changes could
occur that may adversely affect management’s estimate of the recoverable amount for any PMPA. Any impairment
estimates, which are based on applicable key assumptions and sensitivity analysis, are based on management’s best
knowledge of the amounts, events or actions at such time, and the actual future outcomes may differ from any
estimates that are provided by the Company. Any impairment charges on the Company’s carrying value of the
PMPAs could have a material adverse effect on the Company.
Further, the terms and conditions of PMPAs that the Company acquires from a third party have been, by their nature,
negotiated by the third party with the applicable mining operator and not by the Company. Therefore, such PMPAs
may not reflect terms and conditions that the Company would normally seek to obtain in PMPAs, and the contractual
provisions that the Company may have in connection with such PMPAs may be more limited or restricted relative to
its typical PMPAs. Such limits or restrictions could result in a material adverse effect on the Company.
Litigation Claims and Proceedings: Litigation against the Company may result in the diversion of
management and resources and substantial costs to the Company, impacting the Company’s financial
position
The Company is from time to time involved in various claims, legal proceedings and disputes arising in the ordinary
course of business. If the Company is unable to resolve these disputes favorably, it may have a material adverse
effect on the Company. In addition, disputes in respect of agreements entered into by the Company with third parties
may impact the validity and enforceability of those agreements.
Further, any litigation could result in substantial costs and damages and divert the Company’s management’s
attention and resources. Any decision resulting from any such litigation that is adverse to the Company could have a
negative impact on the Company’s financial position.
The Company was previously the subject of litigation in securities class action complaints in the United States and in
Canada.
Market Price of the Common Shares: The trading price of the Common Shares fluctuates and is often
unrelated to the operating performance of the Company
The Common Shares are listed and posted for trading on the TSX, NYSE and on the LSE. An investment in the
Company’s securities is highly speculative and the price of the Common Shares has fluctuated significantly in the past.
During the year ended December 31, 2023, the trading price of the Common Shares has fluctuated as follows:
Exchange
TSX
NYSE
LSE
Low
C$53.24
$38.72
£31.20
High
C$69.72
$52.23
£41.70
The market price of the Company’s common shares may increase or decrease in response to a number of events
and factors, including any future offerings of the Common Shares pursuant to the ATM Program, any offering or
otherwise, and other factors set out in the Company’s Annual Information Form and the factors listed under the
heading “Cautionary Note Regarding Forward-Looking Statements.”
In addition, the global stock markets and prices for streaming and mining company shares have experienced volatility
that often has been unrelated to the operating performance or prospects of such companies. These market and
industry fluctuations may adversely affect the market price of the Company’s common shares, regardless of the
Company’s operating performance. The variables which are not directly related to the Company’s success and are,
therefore, not within the Company’s control, include other developments that affect the market for streaming and
mining company shares, macroeconomic developments globally, the breadth of the public market for the Company’s
common shares and the attractiveness of alternative investments and particular industries. The effect of these and
other factors on the market price of the Company’s common shares on the exchanges on which they trade has
historically made the Company’s common share price volatile and suggests that the Company’s common share price
will continue to be volatile in the future.
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It is not uncommon for securities class actions to be brought against publicly listed companies following periods of
volatility or significant decline in the market price of their securities. The Company was previously the subject of
litigation in securities class action complaints in the United States and in Canada. See “Description of the Business –
Litigation” in the Company’s Annual Information Form.
Key Personnel: The Company may experience difficulty in recruiting and retaining qualified personnel and
we are dependent upon our personnel being able to perform their jobs in a safe and healthy work
environment, free from discrimination
The Company and its subsidiaries have an aggregate of 42 employees and are therefore dependent upon the
services of a small number of employees. The Company is also dependent on the services of a small number of key
executives and other key employees who are highly skilled and experienced. If Wheaton loses key executives or
other key employees or Wheaton fails to develop adequate succession plans, or if Wheaton fails to attract, hire, retain
and develop qualified employees, including executives, it could impact its business, financial condition, results of
operations and cash flows.
Wheaton is committed to creating and maintaining a work environment in which each employee, officer and director is
treated with professional courtesy, dignity and respect in a fair and non-discriminatory manner. Wheaton is also
committed to supporting and respecting human rights in its operations. However, Wheaton’s policies and procedures
may not prevent or detect all potential harmful workplace situations. If Wheaton is unable to maintain a respectful and
non-discriminatory workplace, it could impact the Company’s ability to attract and retain skilled employees, including
executives.
Wheaton’s operations are dependent upon its workforce being able to safely perform their jobs. If Wheaton’s
employees are unable to perform their jobs for any reason (including due to physical or psychological illness or
injuries related to an unsafe or unhealthy workplace), it may adversely impact employee engagement, performance
and productivity, result in legal or human rights claims, or damage Wheaton’s reputation. This could impact
Wheaton’s business, financial condition, results of operations, cash flows, or the trading price of the Company’s
securities.
Interest Rates: Fluctuations in interest rates applicable to the Company could have a material adverse effect
on the Company’s results of operations and cash flows
The Company is exposed to interest rate risk on its outstanding borrowings and short-term investments. Presently,
the Company has no outstanding borrowings, and historically all borrowings have been at floating interest rates. The
Company monitors its exposure to interest rates and has not entered into any derivative contracts to manage this
risk. During the years ended December 31, 2023 and 2022, the weighted average effective interest rate paid by the
Company on its outstanding borrowings was Nil.
During the years ended December 31, 2023 and December 31, 2022, a fluctuation in interest rates of 100 basis
points (1 percent) would not have impacted the amount of interest expensed by the Company. In addition, during the
year ended December 31, 2022, central banks in Canada and the United States increased borrowing rates by over
400 basis points, where they remain at December 31, 2023, and such rates may continue to be held at these levels
for an extended period of time or increase further. Depending upon the amount of the Company’s outstanding
borrowings, fluctuations in the interest rates applicable to the Company could have a material adverse effect on the
Company’s business, financial condition, results of operations and cash flows.
Dividend Policy: The Company’s ability to pay dividends is dependent on the Company’s financial condition
The declaration, timing, amount and payment of dividends are at the discretion of the Board of Directors and will
depend upon the Company’s future earnings, cash flows, acquisition capital requirements and financial condition, and
other relevant factors. There can be no assurance that the Company will continue to declare a dividend on a
quarterly, annual or other basis.
Confidentiality: The Company may have limited access to data and information regarding the Mining
Operations which may result in a material adverse effect on the Company’s results of operations and cash
flows
The Company may not be able to access all data and information regarding the Mining Operations, which may impact
its ability to assess the status and performance of those Mining Operations and the PMPAs. The lack of sufficient
data and information could impact the accuracy of the Company’s forecasts or the ability of the Company to respond
to any challenges with Mining Operations on a timely or efficient basis, which may result in a material adverse effect
on the Company’s business, financial condition, results of operations and cash flows. Further, the PMPAs may
contain confidentiality provisions which limit the Company’s ability to disclose non-public data or information
concerning a Mining Operation or its mining operator. While the Company attempts to obtain contractual rights to the
data and information necessary when negotiating with mining operators, there is no assurance that they will be able
to do so.
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Multiple Listings: Multiple Listings of the Common Shares on the LSE, the TSX and the NYSE may lead to an
inefficient market for the Common Shares
Multiple listings of the Common Shares will result in differences in liquidity, settlement and clearing systems, trading
currencies, prices and transaction costs between the exchanges where the Common Shares will be quoted. These
and other factors may hinder the transferability of the Common Shares between the three exchanges. The Common
Shares are quoted on the TSX, the NYSE and the LSE. Consequently, the trading in and liquidity of the Common
Shares will be split between these three exchanges. The price of the Common Shares may fluctuate and may at any
time be different on the TSX, the NYSE and the LSE. This could adversely affect the trading of the Common Shares
on these exchanges and increase their price volatility and/or adversely affect the price and liquidity of the Common
Shares on these exchanges. The Common Shares are quoted and traded in Canadian Dollars on the TSX, and in US
Dollars on the NYSE. The Common Shares are quoted and traded in pence sterling on the LSE. The market price of
the Common Shares on those exchanges may also differ due to exchange rate fluctuations.
Trading: The Common Shares may be suspended from trading which will limit shareholders ability to
dispose of Common Shares
Each of the TSX, NYSE and LSE has the right to suspend trading in certain circumstances. If the Common Shares
are suspended from trading, the holders of Common Shares may not be able to dispose of their Common Shares on
the LSE, the TSX or the NYSE (as the case may be).
TSX: The objective of the TSX's policies regarding continued listing privileges is to facilitate the maintenance of an
orderly and effective auction market for securities of a wide variety of listed issuers, in which there is a substantial
public interest, and that comply with the requirements of the TSX. The policies are designed and administered in a
manner consistent with that objective. The TSX has adopted certain quantitative and qualitative criteria under which it
will normally consider the suspension from trading and delisting of securities. However, no set of criteria can
effectively anticipate the unique circumstances which may arise in any given situation. Accordingly, each situation is
considered individually on the basis of relevant facts and circumstances. As such, whether or not any of the delisting
criteria has become applicable to a listed issuer or security, the TSX may, at any time, suspend from trading and
delist securities if in the opinion of the TSX, such action is consistent with the objective noted above or further
dealings in the securities on the TSX may be prejudicial to the public interest. In addition, the TSX may at any time
suspend from trading the Common Shares if it is satisfied that the Company has failed to comply with any of the
provisions of its listing agreement with the TSX or other agreements with the TSX, or with any TSX requirement or
policy.
NYSE: The NYSE may suspend trading in, and commence proceedings to delist, the Common Shares from time to
time if it determines that Wheaton or the Common Shares fail to satisfy the applicable quantitative or qualitative
continued listing criteria under the NYSE listing standards. Such continued quantitative listing criteria include, but are
not limited to, a minimum number of stockholders, a minimum average closing price over a consecutive 30 trading-
day period, and a minimum average global market capitalization over a consecutive 30 trading-day period. Such
continued qualitative listing criteria include, but are not limited to, the satisfaction of certain requirements of the NYSE
Governance Rules such as the maintenance of an audit committee satisfying certain criteria including with respect to
independence and the continued timely filing of periodic reports with the United States Securities and Exchange
Commission (“SEC”). The NYSE may also suspend trading in, and commence proceedings to delist, the securities of
an issuer if the issuer or its management engage in operations that are in the opinion of the NYSE contrary to the
public interest. Typically, if an issuer or its NYSE-listed securities fall below the NYSE's quantitative or qualitative
listing criteria, the NYSE reviews the appropriateness of continued listing and may give consideration to any definitive
action proposed by the issuer, pursuant to procedures and timelines set forth in the NYSE listing standards, that
would bring the issuer or such securities above the applicable continued listing standards. However, in certain cases,
the failure of the issuer or its listed securities to meet certain continued listing criteria may result in immediate
suspension and delisting by the NYSE without such evaluation or follow-up procedures.
LSE: The FCA may suspend the Common Shares from trading on the LSE from time to time if it determines that the
smooth operation of the market is or may be temporarily jeopardized or it is necessary to protect investors.
ATM Program: The Company may not raise the anticipated proceeds from the ATM Program and may not use
any proceeds effectively
There is no certainty that gross proceeds of $300 million (or the equivalent in Canadian dollars determined using the
daily exchange rate posted by the Bank of Canada on the date the ATM Common Shares are sold) will be raised
pursuant to the ATM Program. The ATM Program agents have agreed to use their commercially reasonable efforts to
sell, on the Company’s behalf, the ATM Common Shares designated by the Company, but the Company is not
required to request the sale of the maximum amount offered or any amount and, if the Company requests a sale, the
ATM Program agents are not obligated to purchase any ATM Common Shares that are not sold. As a result of the
ATM Program being made on a commercially reasonable efforts basis with no minimum, and only as requested by
the Company, the Company may raise substantially less than the maximum total offering amount or nothing at all.
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Management of the Company will have broad discretion in the application of the net proceeds from the ATM Program
if any and could spend the proceeds in ways that do not improve the Company’s results of operations or enhance the
value of the Common Shares. The failure by management to apply these funds effectively could result in financial
losses that could have a material adverse effect on the Company’s business and cause the price of the Common
Shares to decline. Pending their use, the Company may invest the net proceeds from the ATM Program in a manner
that does not produce income or that loses value.
Long-Term Equity Investments: The Company’s long-term equity investments are exposed to equity price
risk as well as the risks in each investee Company, and the Company may lose the value of such
investments
The Company is exposed to equity price risk as a result of holding long-term equity investments in other companies
including, but not limited to, exploration and mining companies. Just as investing in the Company is inherent with
risks such as those set out in this MD&A, by investing in these other companies, the Company is exposed to the risks
associated with owning equity securities and those risks inherent in the investee companies, including the loss of the
full value of these investments. The Company generally does not actively trade these investments. See “Description
of the Business – Long Term Investments” in the Company’s Annual Information Form.
Activist Shareholders: Campaigns by activist shareholders could adversely impact the Company’s business
and operations
Publicly-traded companies are often subject to demands or publicity campaigns from activist shareholders advocating
for changes to corporate governance practices, such as executive compensation practices, environmental, social and
governance issues, or for certain corporate actions or reorganizations. There can be no assurance that the Company
will not be subject to any such campaign, including proxy contests, media campaigns or other activities. Responding
to challenges from activist shareholders can be costly and time consuming and may have an adverse effect on the
Company’s reputation. In addition, responding to such campaigns would likely divert the attention and resources of
the Company’s management and Board of Directors, which could have an adverse effect on the Company’s business
and results of operations. Even if the Company were to undertake changes or actions in response to activism, activist
shareholders may continue to promote or attempt to effect further changes, and may attempt to acquire control of the
Company. If shareholder activists are ultimately elected to the Board of Directors, this could adversely affect the
Company’s business and future operations. This type of activism can also create uncertainty about the Company’s
future strategic direction, resulting in loss of future business opportunities, which could adversely affect the
Company’s business, future operations, profitability and the Company’s ability to attract and retain qualified
personnel.
Reputation Damage: Reputational loss could have a material adverse effect on the Company’s business and
operations
Reputational damage can be the result of the actual or perceived occurrence of any number of events, and could
include any negative publicity, whether true or not. While the Company does not ultimately have direct control over
how it is perceived by others, reputational loss could have a material adverse effect on the Company’s financial
performance, financial condition, cash flows, growth prospects and the trading price of the Company’s securities.
Industry Analysts: The Company’s trading price and volume may be negatively impacted by the views
expressed by industry analysts
Both the market price and trading price of the Common Shares may depend on the opinions of the securities analysts
who monitor the operations of the Company and publish research reports on the Company’s future performance. The
Company does not have control over such analysts, who may downgrade their recommended prices for the Common
Shares at any time, issue opinion which are not in line with the Board of Director’s view or not even cover the
Company in their publications and reports. Such actions by analysts could have an adverse impact on the trading
price and volume of the Common Shares.
Climate Change: The Company’s operations may be adversely affected by physical risks related to climate
change, including acute weather events
Wheaton’s own operations are exposed to acute and chronic physical climate-related risks as a result of geographical
location. Wheaton has sought to reduce its environmental footprint and located its operations in appropriate facilities,
however acute weather events such as higher intensity storms, flooding and fire as well as chronic weather and
physical conditions such as rising temperatures and changes in precipitation patterns may disrupt operations. Acute
weather events may result in extended loss of power, global supply route disruption and reduced worker productivity
related to safety protocols at our operations and worker transportation to our operations. Wheaton has developed and
implemented a business continuity plan in the event of an acute weather event, however this plan may not fully
mitigate the risks associated with such acute weather event, and Wheaton’s operations may be impacted (including
the ability of its employees to travel to the Mining Operations) or have to be relocated, which could have an adverse
effect on the Company’s business and results of operations.
To the extent that climate change adversely affects Wheaton's business and financial position, it may also have the
effect of heightening many of the other risk factors for the Company, including, but not limited to, risks related to
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commodity prices and markets, counterparty credit and liquidity risk, mine operator and counterparty concentration,
Wheaton's indebtedness and guarantees, competition, litigation claims and proceedings, Wheaton's ability to enforce
security interests, acquisition strategy, market price of Common Shares, equity price risk associated with the
Company's equity investments, interest rate risk, dividends, industry analysts, reputational damage and risks relating
to the Mining Operations such as risks related to mineral reserve and mineral resource estimates, production
forecasts, impacts of governmental regulations, international operations and availability of infrastructure and
employees.
In addition, the Company’s Mining Operations are subject to climate change risk factors, as more fully described in
the Company’s Annual Information Form.
Climate Change: The Company’s operations are subject to risks related to transitioning to a low-carbon
economy
Both climate change and the anticipated transition to a low-carbon economy are expected to impact Wheaton.
Governments are moving to introduce and implement new and more stringent climate change legislation with respect
to disclosure. While some of the costs associated with reducing emissions can be offset by increased energy
efficiency and technological innovation, Wheaton expects that continued efforts to address climate change, including
complying with enhanced regulatory requirements, may result in increased costs for Wheaton.
Investors are increasingly seeking enhanced disclosure on the risks, challenges, governance implications and
financial impacts of climate change faced by companies. If Wheaton is unable to respond to such disclosure
requirements, or meet the expectations of investors and other stakeholders, it could have a material adverse effect on
Wheaton’s ability to access, and the costs of accessing, debt and equity markets for capital required for its
operations.
Shifts in demand and supply of commodities, products and services as a result of evolving consumer and investor
sentiments will create challenging market conditions. Changes in consumer demand for metals and minerals that are
required in a low-carbon economy or increases or decreases in commodity prices and markets may also impact the
Company’s ability to acquire accretive PMPAs or to sell precious metals or cobalt that it acquires. There may be
increased competition for PMPAs on Mining Operations that are considered to be low carbon emitting or less subject
to climate-related physical risks, which may impact the Company’s ability to enter into desirable PMPAs or similar
transactions or to acquire the capital necessary to fund its PMPAs. These impacts could have a material adverse
effect on the Company’s business and financial position, the Company’s reputation and the trading price of the
Company’s securities. In addition, market perceptions of the mining sector and the role of particular metals or
minerals in a transition to a low-carbon economy remain uncertain. There could be a material adverse effect on the
Company’s business and financial position, the Company’s reputation and the trading price of the Company’s
securities where there is significant negative market perception of the mining sector.
In connection with Wheaton’s ESG strategy, Wheaton has adopted the Climate Change and Environmental
Commitments. These Climate Change and Environmental Commitments may not be achievable or may not be
achieved partially or at all, by Wheaton. Should the Commitments not be achieved, it could have an adverse effect
on the Company’s business and financial position, the Company’s reputation and the trading price of the Company’s
securities. In addition, the Revolving Facility interest rate paid on drawn amounts and standby fees will be adjusted
based upon the Company’s performance in three sustainability-related areas, including in respect of the Company’s
attributable emissions from Mining Operations covered by science-based emissions targets. As such, a failure to
meet our Climate Change and Environmental Commitments can result in increased costs for Wheaton and impact our
results of operations.
Further, as there is currently no defined methodology for calculating financed emissions for metals streaming and
royalty companies, Wheaton has developed its own methodology, using an attribution factor based on Wheaton’s
attributable production relative to the overall production of the Mining Operations in a given year. This methodology
relies upon the calculations and estimates of emissions by the Mining Operations, which is necessarily imprecise
because it depends upon the judgment of the individuals who operate the Mining Operations as well as those who
review and assess the emissions information. As a result, no assurance can be given that the calculated financed
emissions are fully accurate.
If Wheaton does not respond quickly enough to meet accepted climate change reduction targets, Wheaton may be
subject to increased risks of climate litigation. Climate-related impact litigation has been advanced in Canada, the
United States and Europe, and may be broadened if there are failures to meet long-term reduction targets. Adverse
publicity or climate-related litigation could result in significant costs, which could have a material adverse effect on the
Company’s business and financial position, the Company’s reputation and the trading price of the Company’s
securities.
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Information Systems, Cyber Security: Compromises or breaches of the Company’s data or information
systems could result in material losses to the Company
Wheaton’s information systems, and those of its counterparties under the PMPAs, third-party service providers and
vendors, are vulnerable to an increasing threat of continually evolving information systems and cyber security risks.
Unauthorized parties may attempt to gain access to these systems or the Company’s information through fraud or
other means of deceiving the Company’s counterparties under its PMPAs, third-party service providers or vendors.
Wheaton’s operations depend, in part, on how well Wheaton and its suppliers, as well as counterparties under the
PMPAs, protect networks, equipment, information technology (“IT”) systems and software against damage from a
number of threats. Wheaton has entered into agreements with third parties for hardware, software,
telecommunications and other services in connection with its operations. The Company’s operations and Mining
Operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, IT systems,
applications and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other
events could result in information system failures, delays and/or increases in capital and remediation expenditures.
The failure of information systems or a component of information systems could, depending on the nature of any such
failure, adversely impact the Company’s reputation and results of operations.
Although to date the Company has not experienced any known material losses relating to cyber-attacks or other data
/ information security breaches, there can be no assurance that Wheaton will not incur such losses in the future. The
Company’s risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving
nature of these threats. As a result, cyber security and the continued development and enhancement of controls,
processes and practices designed to protect systems, computers, software, data and networks from attack, damage
or unauthorized access remain a priority.
Any future significant compromise or breach of the Company’s data / information security, whether external or
internal, or misuse of data or information, could result in additional significant costs, lost sales, fines and lawsuits,
unauthorized transactions, inappropriate disclosures, and damage to the Company’s reputation. In addition, as the
regulatory environment related to data / information security, data collection and use, and privacy becomes
increasingly rigorous, with new and constantly changing requirements applicable to Wheaton’s business and
counterparties to the PMPAs, compliance with those requirements could also result in additional costs. As cyber
threats continue to evolve, the Company or its counterparties may be required to expend additional resources to
continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.
Generative Artificial Intelligence: The Company may not successfully adopt or respond to generative artificial
intelligence
New technological advances, including the use of generative artificial intelligence (“Generative AI”), are evolving
rapidly. The successful development, adoption and monitoring of Generative AI at the Company may require
significant additional resources and costs. The Company’s consideration of the value of Generative AI in its business
will require assessments of opportunities for its use, as well as the quality, limitations, vulnerabilities and potential
legal and regulatory concerns, as well as enhanced controls, processes and practices designed to address
challenges. In addition, if the Company uses or adopts Generative AI in the future, the availability of intellectual
property protection is uncertain.
Finally, Generative AI could be used by the Company’s competitors to obtain a competitive advantage over the
Company and could adversely impact the Company’s results of operations.
Legal Risks: The Company is subject to anti-corruption and anti-bribery laws and regulations which could
result in liability and require the Company to incur costs
The Company is subject to the Canadian Corruption of Foreign Public Officials Act, the U.S. Foreign Corrupt
Practices Act, the UK Bribery Act and other laws that prohibit improper payments or offers of payments to third
parties, including foreign governments and their officials, for the purpose of obtaining or retaining business. In some
cases, the Company invests in Mining Operations in certain jurisdictions where corruption may be more common,
which can increase the risk of unauthorized payments or offers of payments in violation of anti-corruption and anti-
bribery laws and regulations and in violation of our policies. In addition, the operators of the Mining Operations may
fail to comply with anti-corruption and anti-bribery laws and regulations. Although the Company does not operate the
Mining Operations, enforcement authorities could deem us to have some culpability for the operators’ actions. Any
violations of the applicable anti-corruption and anti-bribery laws could result in significant civil or criminal penalties to
us and could have an adverse effect on our reputation.
Regulatory: The Company’s business is subject to evolving corporate governance and public disclosure
regulation that have increased compliance costs and the risk of non-compliance
The Company is subject to changing rules and regulations promulgated by a number of Canadian, United States and
United Kingdom governmental and self-regulated organizations, including the Canadian Securities Administrators, the
SEC, the FCA, the NYSE, the TSX, the LSE, the International Accounting Standards Board and the Financial
Accounting Standards Board. These rules and regulations continue to evolve in scope and complexity making
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compliance more difficult and uncertain. The Company’s efforts to comply with these and other new and existing rules
and regulations have resulted in, and are likely to continue to result in, increased general and administrative
expenses and a diversion of management time and attention from revenue-generating activities to compliance
activities.
Impact of Epidemics and Pandemics: Epidemics, pandemics and similar public health emergencies may
significantly adversely impact Mining Operations and the Company
All of Wheaton’s PMPAs are subject to the risk of emerging infectious diseases or the threat of outbreaks of viruses
or other contagions or epidemic diseases through the Mining Operations. These infectious disease risks may not be
adequately responded to locally, nationally, regionally or internationally due to lack of preparedness to detect and
respond to outbreaks or respond to significant pandemic threats. In addition, a government may impose strict
emergency measures in response to the threat or existence of an infectious disease, such as the emergency
measures imposed by governments of many countries in response to the COVID-19 virus pandemic. As such, there
are potentially significant economic and social impacts of infectious disease risks, including the inability of Mining
Operations to operate as intended, shortage of skilled employees or labour unrest, delays or shortages in supply
chains, inability of employees to access sufficient healthcare, significant social upheavals or unrest, government or
regulatory actions or inactions (including but not limited to, changes in taxation or policies, or delays in permitting or
approvals), decreased demand or the inability to sell precious metals or cobalt or declines in the price of precious
metals and cobalt, capital markets volatility, availability of credit, loss of investor confidence or other unknown but
potentially significant impacts. Given the global nature of Mining Operations, there are potentially significant economic
losses from infectious disease outbreaks that can extend far beyond the initial location of an infection disease
outbreak. As such, both global outbreaks, as well as regional and local outbreaks can have a significant impact on
Wheaton’s PMPAs and the related Mining Operations. Wheaton may not be able to accurately predict which Mining
Operations will be subject to infectious disease risks or the quantum of such risks. In addition, Wheaton’s own
operations are exposed to infectious disease risks noted above and as such Wheaton’s operations may be adversely
affected by such infectious disease risks. Accordingly, any outbreak or threat of an outbreak of a virus or other
contagions or epidemic disease could have a material adverse effect on Wheaton, its business, results from
operations and financial conditions directly or due to a counterparty (i) being unable to deliver some or all of the
precious metals or cobalt due under the applicable PMPA with that counterparty; (ii) otherwise defaulting in its
obligations under that PMPA; (iii) ceasing operations at one or more mines that are the subject of that PMPA; or (iv)
becoming insolvent. As a result, any of these or other adverse financial or operational consequences on a
counterparty may also have a material adverse effect on Wheaton’s business, financial condition, results of
operations and cash flows.
Epidemics and pandemics may evolve rapidly and the effects on the Mining Operations and our own operations are
uncertain. As at the date of this MD&A, all of the Company’s partners’ operations are currently running, though we
are monitoring and assessing to determine if there remain impacts from the COVID-19 virus pandemic on the Mining
Operations and our own operations. It is possible that in the future operations at the Mining Operations may be
temporarily shut down or suspended for indeterminate amounts of time, any of which may, individually or in the
aggregate, have a material and adverse impact on the Company's business, financial condition, results of operations
and cash flows. In addition, the impact of epidemics and pandemics on economies and the prospects of economic
growth globally may lead to decreased demands for commodities, including precious metals or cobalt, which may
have a material and adverse impact on the Company's business, financial condition, results of operations and cash
flows.
There can be no assurance that our partners’ operations that are operational as of the date of this MD&A will
continue to remain operational should there be an epidemic or pandemic. In addition, even if operational, these
operations may be subject to adverse impacts on production and other impacts due to epidemic or pandemic
response measures, absenteeism and otherwise as a result of the epidemic or pandemic and any of these impacts
may be material with respect to those operations, as well as our business and financial results.
To the extent that an epidemic or pandemic adversely affects the Company’s business and financial results, it may
also have the effect of heightening many of the other risks, including, but not limited to, risks relating to the Company
such as risks related to commodity prices and markets, commodity price fluctuations, equity price risk associated with
the Company's equity investments, credit and liquidity of counterparties to the PMPAs, mine operator concentration,
our indebtedness and guarantees, our ability to raise additional capital, our ability to enforce security interests,
information systems and cyber security and risks relating to the Mining Operations such as risks related to mineral
reserve and mineral resource estimates, production forecasts, impacts of governmental regulations, international
operations, availability of infrastructure and employees and challenging global financial conditions.
Critical Accounting Estimates
The preparation of financial statements in conformity with IFRS requires management to make estimates and
assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the
balance sheet date, and the reported amounts of revenues and expenditures during the reporting period. The
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following discussion provides details of the critical accounting estimates made in preparing the financial statements.
For additional information, Note 3 of the Company’s consolidated financial statements describes all of the material
accounting policies while Note 4 describes the significant areas of estimation uncertainty and judgments made by
management in preparing the consolidated financial statements.
Mineral Stream Interests
Attributable Reserve, Resource and Exploration Potential Estimates
Mineral stream interests are significant assets of the Company, with a carrying value of $6.2 billion at December 31,
2023, inclusive of early deposit agreements. This amount represents the capitalized expenditures related to the
acquisition of the mineral stream interests, net of accumulated depletion and accumulated impairment charges, if any.
The Company estimates the reserves, resources and exploration potential relating to each agreement. Reserves are
estimates of the amount of metals contained in ore that can be economically and legally extracted from the mining
properties in respect of which the Company has PMPAs. Resources are estimates of the amount of metals contained in
mineralized material for which there is a reasonable prospect for economic extraction from the mining properties in
respect of which the Company has PMPAs. Exploration potential represents an estimate of additional reserves and
resources which may be discovered through the mine operator’s exploration program. The Company adjusts its
estimates of reserves, resources (where applicable) and exploration potential (where applicable) to reflect the
Company’s percentage entitlement to metals produced from such mines. The Company compiles its estimates of its
reserves and resources based on information supplied by appropriately qualified persons relating to the geological data
on the size, density and grade of the ore body, and require complex geological and geostatistical judgments to interpret
the data. The estimation of recoverable reserves and resources is based upon factors such as estimates of foreign
exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions
and judgments made in estimating the size and grade of the ore body. The Company estimates exploration potential
based on assumptions surrounding the ore body continuity which requires judgment as to future success of any
exploration programs undertaken by the mine operator. Changes in the reserve estimates, resource estimates or
exploration potential estimates may impact upon the carrying value of the Company’s mineral stream interests and
depletion charges.
Depletion
As described above, the cost of these mineral stream interests are separately allocated to reserves, resources and
exploration potential. The value allocated to reserves is classified as depletable and is depleted on a unit-of-production
basis over the estimated recoverable proven and probable reserves at the mine corresponding to the specific
agreement. The value associated with resources and exploration potential is the value beyond proven and probable
reserves at acquisition and is classified as non-depletable until such time as it is transferred to the depletable category
as a result of the conversion of resources and/or exploration potential into reserves. To make this allocation, the
Company estimates the recoverable reserves, resources and exploration potential at each mining operation. These
calculations require the use of estimates and assumptions, including the amount of contained metals, recovery rates and
payable rates. Changes to these assumptions may impact the estimated recoverable reserves, resources or exploration
potential which could directly impact the depletion rates used. Changes to depletion rates are accounted for
prospectively.
Impairment of Assets
The Company assesses each PMPA at the end of every reporting period to determine whether any indication of
impairment or impairment reversal exists. If such an indication exists, the recoverable amount of the PMPA is estimated
in order to determine the extent of the impairment or impairment reversal (if any). The calculation of the recoverable
amount requires the use of estimates and assumptions such as long-term commodity prices, discount rates, recoverable
ounces of attributable metals, and operating performance.
The price of precious metals and cobalt has been volatile over the past several years. The Company monitors spot and
forward metal prices and if necessary re-evaluates the long-term metal price assumptions used for impairment testing.
Should price levels decline or increase in the future, either for an extended period of time or due to known macro
economic changes, the Company may need to re-evaluate the long-term metal price assumptions used for impairment
testing. A significant decrease in long-term metal price assumptions may be an indication of potential impairment, while
a significant increase in long-term metal price assumptions may be an indication of potential impairment reversal. In
addition, the Company also monitors the resource and reserve levels and operational developments at the
counterparties for indications of impairment and impairment reversal. Should the Company conclude that it has an
indication of impairment or impairment reversal at any balance sheet date, the Company is required to perform an
impairment assessment.
Valuation of Stock Based Compensation
The Company has various forms of stock based compensation, including share purchase options, restricted share units
(“RSUs”) and performance share units (“PSUs”). The calculation of the fair value of share purchase options, RSUs and
PSUs issued requires the use of estimates as more fully described below.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [58]
The Company recognizes a stock based compensation expense for all share purchase options and RSUs awarded to
employees, officers and directors based on the fair values of the share purchase options and RSUs at the date of grant.
The fair values of share purchase options and RSUs at the date of grant are expensed over the vesting periods of the
share purchase options and RSUs, respectively, with a corresponding increase to equity. The fair value of share
purchase options is determined using the Black-Scholes option pricing model with market related inputs as of the date of
grant. Share purchase options with graded vesting schedules are accounted for as separate grants with different vesting
periods and fair values. The fair value of RSUs is the market value of the underlying shares at the date of grant. At the
end of each reporting period, the Company re-assesses its estimates of the number of awards that are expected to vest
and recognizes the impact of any revisions to this estimate in the consolidated statement of earnings.
The Company recognizes a stock based compensation expense for PSUs which are awarded to eligible employees and
are settled in cash. The related expense is based on the value of the anticipated settlement and multiplier for current
performance at the end of the associated performance periods. This estimated expense is reflected as a component of
net earnings over the vesting period of the PSUs with the related obligation recorded as a liability on the balance sheet.
The amount of compensation expense is adjusted at the end of each reporting period to reflect the fair market value of
common shares and the number of PSUs anticipated to vest based on the anticipated performance factor.
Future Changes to Accounting Policies
The International Accounting Standards Board ("IASB") has issued the following new or amended standards:
Amendment to IAS 1- Presentation of Financial statements
The amendments to IAS 1, clarify the presentation of liabilities. The classification of liabilities as current or non-
current is based on contractual rights that are in existence at the end of the reporting period and is affected by
expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve
months is classified as non-current even if management intends or expects to settle the liability within twelve months.
The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of
cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also
clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the
classification of a liability. Covenants to be complied with after the reporting date do not affect the classification of
debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods
beginning on or after January 1, 2024. The implementation of this amendment is not expected to have a material
impact on the Company.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [59]
Non-IFRS Measures
Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net
earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash
costs of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis; and (iv) cash operating
margin.
These non-IFRS measures do not have any standardized meaning prescribed by IFRS, and other companies may
calculate these measures differently. The presentation of these non-IFRS measures is intended to provide additional
information and should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with IFRS.
i.
Adjusted net earnings and adjusted net earnings per share are calculated by removing the effects of non-
cash impairment charges (reversals) (if any), non-cash fair value (gains) losses and other one-time (income)
expenses as well as the reversal of non-cash income tax expense (recovery) which is offset by income tax
expense (recovery) recognized in the Statements of Shareholders’ Equity and OCI, respectively. The
Company believes that, in addition to conventional measures prepared in accordance with IFRS,
management and certain investors use this information to evaluate the Company’s performance.
The following table provides a reconciliation of adjusted net earnings and adjusted net earnings per share
(basic and diluted).
Three Months Ended
December 31
Years Ended
December 31
(in thousands, except for per share amounts)
2023
2022
2023
2022
Net earnings
Add back (deduct):
Impairment charge (reversal)
Gain on disposal of Mineral Stream
Interest
Gain (loss) on fair value adjustment
of share purchase warrants held
Income tax (expense) recovery
recognized in the Statement of
Shareholders' Equity
Income tax (expense) recovery
recognized in the Statement of
OCI
Income tax recovery related to prior
year disposal of Mineral Stream
Interest
Other
$ 168,435
$ 166,125 $ 537,644
$ 669,126
-
-
1,719
-
(8,611)
(51,443)
(5,027)
(155,868)
(217)
(67)
31
1,033
-
-
-
4,143
(3,487)
(7,214)
3,719
(6,513)
-
(162)
(5,376)
-
(2,672)
(644)
2,404
(802)
Adjusted net earnings
$ 164,569 $ 103,744 $ 533,051 $ 504,912
Divided by:
Basic weighted average number of
shares outstanding
Diluted weighted average number of
453,010
452,070
452,814
451,570
shares outstanding
453,611
452,778
453,463
452,344
Equals:
Adjusted earnings per share - basic
Adjusted earnings per share - diluted
$
$
$
0.363
0.363 $
0.229 $
0.229 $
$
1.177
1.176 $
1.118
1.116
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [60]
ii.
Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating
activities by the weighted average number of shares outstanding (basic and diluted). The Company presents
operating cash flow per share as management and certain investors use this information to evaluate the
Company’s performance in comparison to other companies in the precious metal mining industry who
present results on a similar basis.
The following table provides a reconciliation of operating cash flow per share (basic and diluted).
(in thousands, except for per share amounts)
2023
2022
2023
2022
Cash generated by operating activities
$ 242,226 $ 172,028 $ 750,809 $ 743,424
Three Months Ended
December 31
Years Ended
December 31
Divided by:
Basic weighted average number of
shares outstanding
Diluted weighted average number of
shares outstanding
Equals:
453,010
452,070
452,814
451,570
453,611
452,778
453,463
452,344
Operating cash flow per share - basic
Operating cash flow per share - diluted
$
$
$
0.535
0.534 $
0.381 $
0.380 $
$
1.658
1.656 $
1.646
1.643
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [61]
iii.
Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is
calculated by dividing the total cost of sales, less depletion, by the ounces or pounds sold. In the precious
metal mining industry, this is a common performance measure but does not have any standardized meaning
prescribed by IFRS. In addition to conventional measures prepared in accordance with IFRS, management
and certain investors use this information to evaluate the Company’s performance and ability to generate
cash flow.
The following table provides a calculation of average cash cost of gold, silver and palladium on a per ounce
basis and cobalt on a per pound basis.
(in thousands, except for gold and palladium ounces sold
and per unit amounts)
2023
2022
2023
2022
Three Months Ended
December 31
Years Ended
December 31
Cost of sales
Less: depletion
Cash cost of sales
$ 136,283 $ 114,870 $ 442,605 $ 499,573
(231,952)
(214,434)
(53,139)
(68,526)
$
67,757 $ 61,731 $ 228,171 $ 267,621
Cash cost of sales is comprised of:
Total cash cost of gold sold
Total cash cost of silver sold
Total cash cost of palladium sold
Total cash cost of cobalt sold 1
$
50,246 $ 32,749 $ 148,972 $ 138,468
115,058
15,945
5,687
662
8,408
904
24,674
1,213
3,095
72,296
3,360
3,543
Total cash cost of sales
$
67,757 $ 61,731 $ 228,171 $ 267,621
Divided by:
Total gold ounces sold
Total silver ounces sold
Total palladium ounces sold
Total cobalt pounds sold
Equals:
115,011
3,175
3,339
288
68,996
4,935
3,396
187
327,336
14,326
13,919
1,074
293,234
21,570
15,076
1,038
$
Average cash cost of gold (per ounce)
$
Average cash cost of silver (per ounce)
Average cash cost of palladium (per ounce) $
$
Average cash cost of cobalt (per pound)
437 $
5.02 $
198 $
3.14 $
475 $
5.00 $
357 $
16.52 $
455 $
5.05 $
241 $
3.30 $
472
5.33
377
8.10
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [62]
iv.
Cash operating margin is calculated by adding back depletion to the gross margin. Cash operating margin
on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of
ounces or pounds sold during the period. The Company presents cash operating margin as management
and certain investors use this information to evaluate the Company’s performance in comparison to other
companies in the precious metal mining industry who present results on a similar basis as well as to
evaluate the Company’s ability to generate cash flow.
The following table provides a reconciliation of cash operating margin.
(in thousands, except for gold and palladium ounces sold and per
unit amounts)
2023
2022
2023
2022
Three Months Ended
December 31
Years Ended
December 31
Gross margin
Add back: depletion
$ 177,188 $ 121,181 $ 573,440 $ 565,480
231,952
214,434
53,139
68,526
Cash operating margin
$ 245,714 $ 174,320 $ 787,874 $ 797,432
Cash operating margin is comprised of:
Total cash operating margin of gold sold
Total cash operating margin of silver sold
Total cash operating margin of palladium sold
Total cash operating margin of cobalt sold
$ 180,470 $ 86,302 $ 495,159 $ 391,230
355,945
81,501 266,298
5,373 15,136
26,473
1,144 11,281 23,784
59,520
2,912
2,812
Total cash operating margin
$ 245,714 $ 174,320 $ 787,874 $ 797,432
Divided by:
Total gold ounces sold
Total silver ounces sold
Total palladium ounces sold
Total cobalt pounds sold
Equals:
115,011
3,175
3,339
68,996 327,336
4,935 14,326
3,396 13,919
288
187
1,074
293,234
21,570
15,076
1,038
$
Cash operating margin per gold ounce sold
Cash operating margin per silver ounce sold
$
Cash operating margin per palladium ounce sold $
$
Cash operating margin per cobalt pound sold
1,569 $
18.75 $
872 $
9.78 $
1,250 $
16.52 $
1,582 $
6.10 $
1,513 $
18.59 $
1,088 $
10.51 $
1,334
16.51
1,756
22.90
1) Cash cost per pound of cobalt sold during the fourth quarter of 2023 was net of a previously recorded inventory write-down of $0.02 million (twelve months -
$1.6 million), resulting in a decrease of $0.08 per pound of cobalt sold (twelve months - $0.91 per pound sold). Cash cost per pound of cobalt sold during the
fourth quarter of 2022 includes an inventory write-down of $1.6 million (twelve months - $1.6 million), resulting in an increase of $8.71 per pound sold (twelve
months - $1.60 per pound sold).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [63]
Subsequent Events
Declaration of Dividend
The Company has revised its dividend policy, fixing the quarterly dividend to be $0.155 per common share. The
declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.
On March 14, 2024, the Board of Directors declared a dividend in the amount of $0.155 per common share, with this
dividend being payable to shareholders of record on April 3, 2024 and is expected to be distributed on or about April
15, 2024. The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to
have dividends reinvested directly into additional Wheaton common shares based on the Average Market Price, as
defined in the DRIP.
Acquisition of DeLamar Royalty
On February 20, 2024, the Company purchased a 1.5% net smelter return royalty interest (the “DeLamar Royalty”) in
the DeLamar and Florida mountain project located in Idaho, United States (the “DeLamar project”) from a subsidiary
of Integra Resources Corporation (“Integra”) for $9.75 million to be paid in two equal installments. The first installment
of $4.875 million was paid on closing on March 7, 2024. The second installment is expected to be paid four months
after the first installment.
Controls and Procedures
Disclosure Controls and Procedures
Wheaton’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, has
evaluated the design and effectiveness of Wheaton’s disclosure controls and procedures, as defined in the rules of
the U.S. Securities and Exchange Commission and Canadian Securities Administrators, as of December 31, 2023.
Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that
Wheaton’s disclosure controls and procedures were effective as of December 31, 2023.
Internal Control Over Financial Reporting
The Company’s management, with the participation of its Chief Executive Officer and Chief Financial Officer, are
responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision
of the Chief Financial Officer, the Company’s internal control over financial reporting is a process designed to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with IFRS. The Company’s controls include policies and procedures that:
•
•
•
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions
and dispositions of the assets of the Company;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with IFRS, and that receipts and expenditures of the Company are being made
only in accordance with authorizations of the Company’s management and directors; and,
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or
disposition of the Company’s assets that could have a material effect on the annual financial statements or
interim financial statements.
The Company’s management, including its Chief Executive Officer and Chief Financial Officer, has evaluated the
effectiveness of the Company’s internal control over financial reporting using the framework and criteria established
in Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on this evaluation, management has concluded that the internal control over financial
reporting was effective at as of December 31, 2023.
There have been no changes in the Company’s internal control over financial reporting during the three months
ended December 31, 2023 that would materially affect, or is reasonably likely to materially affect, the Company’s
internal control over financial reporting.
Limitation of Controls and Procedures
The Company’s management, including its Chief Executive Officer and Chief Financial Officer, believe that any
disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and
operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they
cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have
been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be
faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [64]
by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the
controls. The design of any system of controls also is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in achieving its stated goals under all
potential future conditions. Accordingly, because of the inherent limitations in a cost effective control system,
misstatements due to error or fraud may occur and not be detected.
Attributable Reserves and Resources
The following tables set forth the estimated Mineral Reserves and Mineral Resources (metals attributable to Wheaton
only) for the mines relating to which the Company has PMPAs, adjusted where applicable to reflect the Company’s
percentage entitlement to such metals, as of December 31, 2023, unless otherwise noted. The tables are based on
information available to the Company as of the date of this document, and therefore will not reflect updates, if any,
after such date. The most current Mineral Reserves and Mineral Resources will be available on the Company’s
website.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [65]
Mineral Reserves Attributable to Wheaton Precious Metals (1,2,3,8,39)
December 31, 2023 (6)
Proven
Probable
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained
Proven & Probable
Interest
Mt g/t / % Moz / Mlbs
Mt g/t / % Moz / Mlbs
Mt g/t / % Moz / Mlbs
December 31, 2022
Proven & Probable
Tonnage Grade Contained
Mt g/t / % Moz / Mlbs
Process
Recovery %
(7)
Zinkgruvan
100%
75%
100%
50%
70%
25%
10.5%
6.6%
62.5%
8%
100%
100%
100%
50%
2.78%
100%
6%
3.05%
1%
7.27%
1.5%
25%
100%
33.75%
100%
100%
100%
25%
50%
100%
100%
100%
50%
100%
75%
7.21%
1.5%
Asset
Gold
Salobo (10)
Stillwater (13)
Constancia
Sudbury (11)
San Dimas (14)
Marmato (11,15)
Cangrejos (11,31)
Platreef (11,35)
Blackwater (11,27)
Santo Domingo (11,25)
Marathon (11,28)
Copper World
Complex (21)
Curipamba (11,29)
Goose (11,30)
Kutcho (12)
Fenix (11,26)
Curraghinalt (11,33)
Mt Todd (11,36)
Kudz Ze Kayah (11,34)
DeLamar (37)
Total Gold
Silver
Peñasquito (10)
Constancia
Antamina (10,11,18)
Copper
Copper-Zinc
Zinc
Copper
Neves-Corvo
Copper
Zinc
Aljustrel (19)
Mineral Park
San Dimas (14)
Cozamin (11,20)
Copper
Zinc
Los Filos
Marmato (11,15)
Copper World
Complex (21)
Blackwater (11,27)
Kutcho (12)
Curipamba (11,29)
Kudz Ze Kayah (11,34)
DeLamar (37)
Total Silver
Palladium
Platreef (11,35)
Stillwater (11,13)
Total Palladium
Platinum
Platreef (11,35)
Marathon (11,28)
Total Platinum
Cobalt
Voisey's Bay (11,22)
Total Cobalt
216.9
10.9
222.7
8.2
0.7
0.2
-
-
23.4
65.4
111.6
319.4
1.6
0.2
6.8
3.8
0.0
0.7
-
0.2
0.38
0.36
0.06
0.40
3.51
4.31
-
-
0.74
0.08
0.07
0.03
2.83
5.54
0.37
0.50
9.14
0.84
-
0.46
599.8
49.5
23.4
20.2
0.4
3.0
43.5
69.8
0.7
326.9
12.5
65.7
1.7
0.3
10.6
3.1
0.4
1.7
1.1
1.2
0.34
0.37
0.04
0.22
3.03
3.07
0.55
0.30
0.80
0.03
0.06
0.02
2.23
6.29
0.39
0.45
6.43
0.75
1.32
0.39
2.64
0.13
0.44
0.11
0.07
0.03
-
-
0.56
0.17
0.25
0.27
0.14
0.04
0.08
0.06
0.001
0.02
-
0.002
5.01
6.60
0.59
0.03
0.14
0.04
0.30
0.76
0.67
0.02
0.34
0.02
0.04
0.12
0.06
0.13
0.05
0.08
0.04
0.05
0.02
816.7
60.4
246.1
28.4
1.1
3.3
43.5
69.8
24.1
392.3
124.2
385.1
3.2
0.5
17.4
6.9
0.4
2.4
1.1
1.4
0.35
0.37
0.06
0.27
3.32
3.16
0.55
0.30
0.74
0.04
0.07
0.02
2.52
5.97
0.38
0.48
6.45
0.77
1.32
0.40
9.24
0.72
0.47
0.25
0.12
0.33
0.76
0.67
0.57
0.51
0.28
0.31
0.26
0.10
0.21
0.11
0.08
0.06
0.05
0.02
72%
69%
61%
75%
95%
90%
85%
79%
91%
61%
71%
60%
53%
93%
41%
75%
94%
92%
64%
72%
834.3
60.2
246.1
30.4
1.1
3.3
-
-
19.8
392.3
124.2
-
3.2
0.8
17.4
6.9
-
-
-
-
0.35
0.37
0.06
0.33
3.32
3.16
-
-
0.74
0.04
0.07
-
2.52
5.97
0.38
0.49
-
-
-
-
9.48
0.72
0.47
0.32
0.12
0.33
-
-
0.47
0.51
0.28
-
0.26
0.14
0.21
0.11
-
-
-
-
10.09
15.11
13.43
30.9
445.3
37.9
3.0
37.7
43.1
41.8
46.8
30.1
2.8
40.5
4.3
72.8
492.1
33.4
3.0
37.1
9.8
7.0
17.0
4.3
1.3
62.1
34.5
2.6
4.0
10.2
42.4
31.8
67.9
45.2
2.6
0.7 277.8
-
-
21.7
2.1
319.4
161.9
6.8
2.4
-
0.2
-
-
5.0
16.4
5.7
5.8
24.5
41.4
-
23.3
8.4
5.3
8.6
1.4
2.7
8.7
14.8
3.5
5.8
-
-
3.5
1.1
58.3
30.1
5.4
3.1
-
0.1
16.5
12.8
10.0
17.0
5.3
7.0
53.7
22.6
7.9
17.0
6.7
0.2
80.9
38.8
18.6
17.6
25.3
141.3
33.2
62.1
44.2
2.4
0.4 265.1
3.9
0.5
96.5
28.1
42.9
50.9
7.1
5.3
4.3
65.7
5.8
4.6
30.1
10.6
49.7
2.5
1.1 137.5
16.5
1.2
17.5
0.2
19.8
35.1
35.9
11.1
3.6
5.4
0.9
22.1
4.8
9.1
0.9
10.2
4.0
4.8
0.6
11.0
1.4
73.6
35.0
21.2
21.6
35.5
183.7
33.0
63.2
44.5
2.5
1.1 272.8
3.9
0.5
118.2
30.2
42.9
50.9
6.7
6.1
5.4
385.1
5.8
166.5
27.9
17.4
45.7
4.9
1.1 137.5
17.3
1.4
78.2
47.4
13.7
12.4
26.1
1.6
22.5
43.8
50.7
14.6
9.5
5.4
0.9
25.6
5.9
67.4
31.0
15.6
7.1
4.8
0.8
241.6
243.1
484.7
5.25%
4.5%
-
0.3
-
10.5
5.25%
22%
-
25.3
-
0.2
42.4%
6.6
0.10
-
0.10
0.10
-
0.16
0.16
15.1
15.1
5.5
1.3
2.0
10.6
5.5
2.8
1.9
0.1
6.6
0.12
5.5
1.6
2.0
10.6
5.5
28.1
1.9
0.2
13.2
0.11
0.35
0.45
0.80
0.34
0.01
0.35
17.3
17.3
0.35
0.55
0.90
0.34
0.18
0.52
32.3
32.3
80%
70%
79.1
492.1
34.0
3.0
75%
75%
83%
70%
24%
30%
26%
61%
94%
86%
60%
10%
34%
75.5%
61%
46%
63%
86%
37%
63.6
31.7
7.4
14.1
9.3
1.7
68.9
33.6
21.2
22.3
35.5
-
33.2
62.9
44.5
-
1.1 272.8
5.4
0.7
118.2
30.2
516.6
166.5
17.4
4.9
-
-
45.6
44.5
6.7
6.1
4.6
5.8
27.9
45.7
-
-
87%
90%
-
1.8
-
10.6
87%
76%
-
28.1
-
0.2
84%
13.0
0.12
86.5
47.4
15.1
14.4
20.6
1.8
22.6
45.1
50.7
-
9.5
8.0
1.0
25.6
5.9
76.7
31.0
15.6
7.1
-
-
484.6
-
0.60
0.60
-
0.18
0.18
33.2
33.2
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [66]
Mineral Resources Attributable to Wheaton Precious Metals (1,2,3,4,5,9,39)
Measured
Indicated
Measured & Indicated
Inferred
December 31, 2023 (6)
Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained
Mt g/t / % Moz / Mlbs
Mt g/t / % Moz / Mlbs
Mt g/t / % Moz / Mlbs
Mt g/t / % Moz / Mlbs
Interest
75%
100%
50%
70%
25%
10.5%
100%
6.6%
62.5%
8%
10%
100%
100%
100%
50%
2.78%
100%
6%
25%
3.05%
1%
7.27%
2%
1%
0.5%
1.5%
25%
100%
33.75%
100%
100%
25%
100%
100%
50%
100%
100%
100%
100%
50%
100%
75%
25%
12.5%
50%
100.0%
7.21%
0.5%
1.5%
Gold
Salobo (10)
Stillwater (13)
Constancia
Sudbury (11)
San Dimas (14)
Marmato (11,15)
Minto (38)
Cangrejos (11,31)
Platreef (11,35)
Blackwater (11,27)
Toroparu (12,16)
Santo Domingo (11,25)
Marathon (11,28)
Copper World Complex (21)
Curipamba (11,29)
Goose (11,30)
Kutcho (12)
Fenix (11,26)
Cotabambas (12,23)
Curraghinalt (11,33)
Mt Todd (11,36)
Kudz Ze Kayah (11,34)
Brewery Creek Royalty (24)
Metates Royalty (17)
Black Pine Royalty (32)
DeLamar (37)
Total Gold
Silver
Peñasquito (10)
Constancia
Antamina (10,11,18)
Copper
Copper-Zinc
Zinkgruvan
Zinc
Copper
Neves-Corvo
Copper
Zinc
San Dimas (14)
Aljustrel (19)
Mineral Park
Cozamin (11,20)
Copper
Zinc
Marmato (11,15)
Minto (38)
Stratoni
Copper World Complex (21)
Blackwater (11,27)
Kutcho (12)
Curipamba (11,29)
Pascua-Lama
Loma de La Plata
Toroparu (12,16)
Cotabambas (12,23)
Kudz Ze Kayah (11,34)
Metates Royalty (17)
DeLamar (37)
Total Silver
Palladium
Platreef (11,35)
Stillwater (11,13)
Total Palladium
Platinum
Platreef (11,35)
Marathon (11,28)
Total Platinum
Cobalt
Voisey's Bay (11,22)
Total Cobalt
16.8
21.1
63.8
2.9
-
0.1
-
-
-
4.1
4.2
1.4
30.2
424.0
-
0.0
0.4
2.4
-
-
0.0
-
0.3
0.2
-
0.1
0.17
0.30
0.05
1.20
-
5.04
-
-
-
0.35
1.45
0.05
0.07
0.02
-
4.94
0.20
0.34
-
-
1.15
-
1.06
0.86
-
0.27
0.09
0.21
0.10
0.11
-
0.01
-
-
-
0.05
0.198
0.002
0.06
0.30
-
0.004
0.003
0.03
-
-
0.0001
-
0.01
0.004
-
0.001
1.18
396.8
19.3
70.5
2.6
0.1
1.7
11.1
20.6
7.9
6.4
7.3
120.1
39.6
191.0
1.2
0.1
5.0
8.5
126.8
-
0.2
0.2
0.5
4.5
1.0
1.0
0.24
0.26
0.04
0.47
1.97
2.28
0.53
0.38
0.26
0.49
1.46
0.03
0.06
0.02
1.63
5.18
0.38
0.34
0.20
-
0.89
1.64
1.02
0.56
0.49
0.21
3.01
0.16
0.09
0.04
0.01
0.13
0.19
0.25
0.07
0.10
0.34
0.11
0.08
0.10
0.06
0.01
0.06
0.09
0.82
-
0.01
0.01
0.02
0.08
0.02
0.01
5.86
413.6
40.4
134.3
5.4
0.1
1.8
11.1
20.6
7.9
10.5
11.5
121.5
69.8
615.0
1.2
0.1
5.4
10.9
126.8
-
0.2
0.2
0.8
4.6
1.0
1.0
0.23
0.28
0.04
0.85
1.97
2.40
0.53
0.38
0.26
0.44
1.45
0.03
0.06
0.02
1.63
5.13
0.37
0.34
0.20
-
0.90
1.64
1.03
0.57
0.49
0.21
9.4
127.5
24.5
2.2
7.4
8.8
39.3
141.0
25.1
2.2
31.8
10.0
48.7
268.5
25.0
2.2
3.10
0.36
0.19
0.15
0.01
0.14
0.19
0.25
0.07
0.15
0.54
0.12
0.14
0.40
0.06
0.02
0.06
0.12
0.82
-
0.01
0.01
0.03
0.08
0.02
0.01
7.03
39.1
18.8
204.0
113.8
32.1
2.0
1.1
1.9
13.0
13.0
15.8
0.7
2.1
31.8
19.1
192.0
0.4
0.1
12.9
3.2
105.9
0.29
0.33
0.05
0.44
3.57
2.43
0.49
0.39
0.26
0.45
1.71
0.02
0.04
0.01
1.62
6.64
0.25
0.33
0.17
0.2 12.24
0.77
0.4
1.18
0.0
0.88
1.0
0.47
0.7
0.42
0.1
0.25
0.4
5.7
64.1
25.4
2.6
61.8
14.9
8.0
20.0
15.9
9.5
99.0
51.4
9.0
18.0
28.6
29.7
160.8
66.3
8.6
18.4
44.5
39.3
192.2
91.3
9.0
15.6
3.5
1.9
61.4
33.4
5.1
8.3
-
7.4
22.6
0.2
-
0.7
-
-
424.0
33.7
0.4
-
10.7
-
21.2
-
-
0.2
0.1
48.5
62.1
-
56.6
2.1
53.8
-
25.3
-
-
4.1
4.7
28.0
-
57.2
-
1.8
-
-
18.2
12.9
5.25%
4.5%
-
0.21
-
9.0
5.25%
22%
-
7.14
-
0.2
42.4%
0.5
0.06
6.9
2.0
8.0
16.5
-
13.4
1.5
0.3
-
0.6
-
-
55.9
5.1
0.4
-
19.7
-
1.2
-
-
0.1
0.03
173.3
-
0.06
0.06
-
0.04
0.04
0.6
0.6
4.2
0.3
63.5
12.2
28.9
34.7
50.4
57.5
0.1 183.3
45.5
2.0
10.3
261.5
191.0
52.9
5.0
1.8
97.9
3.3
1.4
16.3
11.1
40.7
36.5
6.0
4.7
1.4 151.7
3.5
8.7
25.7
38.4
52.2
3.6 169.0
1.2
2.4
0.2 186.4
14.2
4.5
10.0
1.0
36.3
507.3
0.3
0.2
1.5
7.2
0.3
9.4
1.5
0.1
0.4
0.07
8.6
0.1
46.9
64.1
0.6
15.1
16.9
4.3
1.7
3.1
1.7
6.8
21.5
14.8
4.1
2.2
164.4
19.8
1.4
39.5
1.4
2.0
0.3
541.3
0.01
0.04
0.06
0.01
0.04
0.05
0.6
0.6
7.7
2.2
62.5
30.6
34.0
43.0
50.2
58.4
0.1 183.3
50.2
2.0
17.7
284.1
615.0
86.6
5.4
1.8
108.6
3.5
1.4
17.0
11.1
41.4
36.5
6.8
4.7
1.4 151.7
3.9
7.1
25.9
38.4
52.7
3.6 169.0
1.4
2.4
0.2 186.4
14.3
4.6
10.2
1.0
57.5
507.3
0.3
0.4
1.5
8.1
0.3
16.5
1.5
0.1
0.9
0.06
15.5
2.1
54.8
80.6
0.6
28.5
18.4
4.6
1.7
3.7
1.7
6.8
77.4
19.9
4.5
2.2
184.1
19.8
2.7
39.5
1.4
2.1
0.3
714.6
0.01
0.11
0.12
0.01
0.08
0.09
1.2
1.2
15.7
0.2
91.3
28.9
28.3
14.0
4.1
63.2
1.1 306.4
40.8
1.5
12.2
341.2
2.2
1.7
17.8
13.0
41.8
33.8
3.2
4.5
1.8 166.5
3.1
12.8
20.0
31.6
17.8
76.0
0.8
2.5
0.0 143.4
13.2
0.7
8.4
0.4
192.0
5.6
12.9
0.7
3.8
0.2
10.6
423.6
0.5
1.1
1.5
9.3
0.5
4.3
1.4
0.1
2.7
0.12
1.87
1.22
0.06
0.03
0.12
0.15
0.21
0.16
0.13
0.01
0.12
0.03
0.03
0.08
0.02
0.03
0.10
0.03
0.57
0.07
0.01
0.002
0.03
0.01
0.002
0.003
5.09
4.7
5.3
55.6
45.7
46.1
0.2
12.8
8.3
10.5
16.0
16.2
3.0
1.8
1.8
1.9
9.7
19.1
2.3
8.3
0.7
2.2
0.4
0.3
34.5
0.2
0.3
0.1
307.8
0.02
0.34
0.36
0.02
0.01
0.04
7.2
7.2
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [67]
Notes on Mineral Reserves & Mineral Resources:
1.
All Mineral Reserves and Mineral Resources have been estimated in accordance with the 2014 Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards for Mineral Resources and Mineral Reserves and National Instrument 43-101 – Standards for Disclosure for Mineral
Projects (“NI 43-101”), or the 2012 Australasian Joint Ore Reserves Committee (JORC) Code for Reporting of Exploration Results, Mineral
Resources and Ore Reserves.
2. Mineral Reserves and Mineral Resources are reported above in millions of metric tonnes (“Mt”), grams per metric tonne (“g/t”) for gold, silver,
palladium and platinum, percent (“%”) for cobalt, millions of ounces (“Moz”) for gold, silver, palladium and platinum and millions of pounds (“Mlbs”)
for cobalt.
3. Qualified persons (“QPs”), as defined by the NI 43-101, for the technical information contained in this document (including the Mineral Reserve and
Mineral Resource estimates) are:
a.
b.
Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); and
Ryan Ulansky, M.A.Sc., P.Eng. (Vice President, Engineering),
both employees of the Company (the “Company’s QPs”).
4.
The Mineral Resources reported in the above tables are exclusive of Mineral Reserves. The Aljustrel mines, Blackwater project, Cangrejos project,
Cozamin mine, Curipamba project, Curraghinalt project, Fenix project, Goose project, Kudz Ze Kayah project, Kutcho project, Marathon project,
Neves-Corvo mine, Platreef project, San Dimas mine, Santo Domingo project and Zinkgruvan mine report Mineral Resources inclusive of Mineral
Reserves. The Company’s QPs have made the exclusive Mineral Resource estimates for these mines based on average mine recoveries and
dilution.
5. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
6. Other than as detailed below, Mineral Reserves and Mineral Resources are reported as of December 31, 2023 based on information available to
the Company as of the date of this document, and therefore will not reflect updates, if any, after such date.
a. Mineral Resources for Aljustrel’s Feitais mine are reported as of July 2022, Moinho & St João mines as of June 2022 and the Estação
project as of July 2018. Mineral Reserves for the Feitais, Moinho and St João mines are reported as of December 2021 and the Estação
project as of April 2022.
b. Mineral Resources for the Black Pine project are reported as of February 15, 2024.
c. Mineral Resources for the Blackwater project are reported as of May 5, 2020 and Mineral Reserves as of September 10, 2021.
d. Mineral Resources for the Brewery Creek project are reported as of May 31, 2020.
e. Mineral Resources for the Cangrejos project are reported as of January 30, 2023 and Mineral Reserves as of March 30, 2023.
f.
Mineral Resources and Mineral Reserves for the Constancia mine are reported as of December 31, 2022.
g. Mineral Resources and Mineral Reserves for the Copper World Complex project are reported as of July 1, 2023.
h. Mineral Resources for the Cotabambas project are reported as of November 20, 2023.
i.
j.
Mineral Resources for the Curipamba project are reported as of October 26, 2021 and Mineral Reserves as of October 22, 2021.
Mineral Resources for the Curraghinalt project are reported as of May 10, 2018 and Mineral Reserves as of February 25, 2022.
k. Mineral Resources for the DeLamar project are reported as of August 25, 2023 and Mineral Reserves as of January 24, 2022.
l.
Mineral Resources and Mineral Reserves for the Fenix project are reported as of October 16, 2023.
m. Mineral Resources for the Goose project are reported as of December 31, 2020 and Mineral Reserves as of January 15, 2021.
n. Mineral Resources for the Kudz Ze Kayah project are reported as of May 31, 2017 and Mineral Reserves as of June 30, 2019.
o. Mineral Resources for the Kutcho project are reported as of July 30, 2021 and Mineral Reserves are reported as of November 8, 2021.
p. Mineral Resources for the Loma de La Plata project are reported as of May 20, 2009.
q. Mineral Resources and Mineral Reserves for the Los Filos mine are reported as of June 30, 2022.
r.
Mineral Resources and Mineral Reserves for the Marathon project are reported as of December 31, 2022.
s. Mineral Resources and Mineral Reserves for the Marmato mine are reported as of June 30, 2022.
t.
Mineral Resources for the Metates royalty are reported as of January 28, 2023.
u. Mineral Resources for the Mineral Park project are reported as of October 30, 2021 and Mineral Reserves as of September 29, 2023.
v. Mineral Resources for the Minto mine are reported as of March 31, 2021.
w. Mineral Reserves and Mineral Resources for the Mt Todd project are reported as of December 31, 2022.
x. Mineral Resources for the Platreef project are reported as of January 28, 2022 and Mineral Reserves as of January 26, 2022.
y. Mineral Resources and Mineral Reserves for the San Dimas mine are reported as of December 31, 2022.
z. Mineral Resources for the Santo Domingo project are reported as of February 13, 2020 and Mineral Reserves as of November 14, 2018.
aa. Mineral Resources and Mineral Reserves for the Stratoni mine are reported as of September 30, 2023.
bb. Mineral Resources for the Toroparu project are reported as of February 10, 2023.
7.
Process recoveries are the Company’s estimated average percentage of gold, silver, palladium, platinum, or cobalt in a saleable product (doré or
concentrate) recovered from mined ore at the applicable site process plants.
8. Mineral Reserves are estimated using appropriate process and mine recovery rates, dilution, operating costs and the following commodity prices:
a.
b.
c.
d.
e.
f.
g.
Aljustrel mine – 3.0% zinc cut-off for the Feitais, Moinho and St João mines and the Estação project.
Antamina mine - $6,000 per hour of mill operation cut-off assuming $3.50 per pound copper, $1.10 per pound zinc, $11.10 per pound
molybdenum and $21.50 per ounce silver.
Blackwater project – NSR cut-off of Cdn$13.00 per tonne assuming $1,400 per ounce gold and $15.00 per ounce silver.
Cangrejos project - declining NSR cut-offs of between $23.00 and $7.76 per tonne assuming $1,500 per ounce gold, $3.00 per pound
copper and $18.00 per ounce silver.
Constancia mine – NSR cut-off of $6.40 per tonne assuming $1,650 per ounce gold, $22.00 per ounce silver, $3.60 per pound copper and
$12.00 per pound molybdenum.
Copper World Complex project – $3.75 per pound copper, $12.00 per pound molybdenum, $22.00 per ounce silver and $1,650 per ounce
gold.
Cozamin mine - NSR cut-off of $60.54 per tonne for long-hole and $65.55 per tonne for cut and fill assuming $3.55 per pound copper,
$20.00 per ounce silver, $0.90 per pound lead and $1.15 per pound zinc.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [68]
h.
i.
j.
k.
l.
Curraghinalt project - 3.0 grams per tonne gold cut-off assuming $1,200 per ounce gold.
Curipamba project - NSR cut-off of $32.99 per tonne assuming $1,630 per ounce gold, $21.00 per ounce silver, $3.31 per pound copper,
$0.92 per pound lead and $1.16 per pound zinc.
DeLamar project – NSR cut-offs of $3.55 and $3.65 per tonne for Florida Mountain and DeLamar oxide leach and $4.20 and $4.65 per
tonne for Florida Mountain and DeLamar mixed leach, all assuming $1,650 per ounce gold and $21.00 per ounce silver.
Fenix project – 0.235 grams per tonne gold cut-off assuming $1.650 per ounce gold.
Goose project:
i. Umwelt – 1.72 grams per tonne gold cut-off for open pit and 3.9 grams per tonne for underground.
ii. Llama – 1.74 grams per tonne gold cut-off for open pit and 4.1 grams per tonne for underground.
iii. Goose Main – 1.70 grams per tonne gold cut-off for open pit and 4.1 grams per tonne for underground.
iv. Echo – 1.60 grams per tonne gold cut-off for open pit and 3.5 grams per tonne for underground.
m. Kudz Ze Kayah project - NSR cut-off of Cdn$29.30 per tonne for open pit and Cdn$173.23 per tonne for underground assuming $1,310
per ounce gold, $18.42 per ounce silver, $3.08 per pound copper, $0.94 per pound lead and $1.10 per pound zinc.
n.
o.
Kutcho project – NSR cut-offs of Cdn$38.40 per tonne for oxide ore and Cdn$55.00 per tonne for sulfide for the open pit and Cdn$129.45
per tonne for the underground assuming $3.50 per pound copper, $1.15 per pound zinc, $20.00 per ounce silver and $1,600 per ounce
gold.
Los Filos mine – Variable breakeven cut-offs for the open pits depending on process destination and metallurgical recoveries and NSR
cut-offs of $65.80 - $96.60 per tonne for the underground mines, assuming $1,450 per ounce gold and $18.00 per ounce silver.
p. Marathon project - NSR cut-off of Cdn$16.00 per tonne assuming $1,500 per ounce palladium, $1,000 per ounce platinum, $3.50 per
pound copper, $1,600 per ounce gold and $20.00 per ounce silver.
q. Marmato mine – 2.05 grams per tonne gold cut-off for the Upper Mine and 1.62 grams per tonne gold cut-off for the Lower Mine, all
assuming $1,500 per ounce gold.
r.
Mineral Park project - NSR cut-off of $10.50 per tonne assuming $2.81 per pound copper, $14.25 per pound molybdenum and $16.13 per
ounce silver.
s. Mt Todd project – 0.35 grams per tonne gold cut-off for the Batman deposit and zero cut-off for the Heap Leach, assuming $1,600 per
ounce gold.
t.
u.
v.
Neves-Corvo mine – NSR cut-offs ranging from EUR 49 to 82 per tonne depending on area and mining method for both the copper and
zinc Mineral Reserves assuming $3.65 per pound copper, $0.90 per pound lead and $1.15 per pound zinc.
Peñasquito mine - $1,400 per ounce gold, $20.00 per ounce silver, $1.00 per pound lead and $1.20 per pound zinc.
Platreef project - declining NSR cut-offs of between $155 and $80 per tonne assuming $1,600 per ounce platinum, $815 per ounce
palladium, $1,300 per ounce gold, $1,500 per ounce rhodium, $8.90 per pound nickel and $3,00 per pound copper.
w. Salobo mine – 0.25% copper equivalent cut-off assuming $1,525 per ounce gold and $3.52 per pound copper.
x.
y.
z.
San Dimas mine – $1,750 per ounce gold and $22.50 per ounce silver.
Santo Domingo project - variable throughput rates and cut-offs assuming $3.00 per pound copper, $1,290 per ounce gold and $100 per
tonne iron.
Stillwater mines - combined platinum and palladium cut-off of 6.86 grams per tonne for Stillwater and East Boulder sub-level extraction
and 1.71 grams per tonne for Ramp & Fill at East Boulder assuming $1,500 per ounce 2E PGM prices.
aa. Sudbury mines - $1,450 per ounce gold, $8.16 per pound nickel, $3.40 per pound copper, $1,200 per ounce platinum, $1,400 per ounce
palladium and $22.68 per pound cobalt.
bb. Voisey’s Bay mines – NSR cut-offs of Cdn$28.00 per tonne for Discovery Hill Open Pit, Cdn$230 to $250 per tonne for Reid Brook and
Cdn$210 to $250 per tonne for Eastern Deeps all assuming $3.40 per pound copper, $8.16 per pound nickel and $22.68 per pound cobalt.
cc. Zinkgruvan mine – NSR cut-offs ranging from SEK 950 to 1,100 per tonne depending on area and mining method for both the copper and
zinc Mineral Reserves assuming $3.65 per pound copper and $0.90 per pound lead and $1.15 per pound zinc.
9. Mineral Resources are estimated using appropriate recovery rates and the following commodity prices:
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
Aljustrel mine – 3.0% zinc cut-off for Feitais, Moinho and St João mines and the Estação project.
Antamina mine - $6,000 per hour of mill operation cut-off for the open pit and $53.80 per tonne NSR cut-off for the undergound, both
assuming $3.50 per pound copper, $1.30 per pound zinc, $13.30 per pound molybdenum and $24.60 per ounce silver.
Black Pine – 0.2 grams per tonne gold cut-off assuming $1,800 per ounce gold.
Blackwater project – 0.2 grams per tonne gold equivalent cut-off assuming $1,400 per ounce gold and $15.00 per ounce silver.
Brewery Creek project – 0.37 grams per tonne gold cut-off assuming $1,500 per ounce gold.
Cangrejos project - 0.25 grams per tonne gold equivalent cut-off assuming $1,600 per ounce gold, $3.50 per pound copper, $11.00 per
pound molybdenum and $21.00 per ounce silver.
Constancia mine – NSR cut-off of $6.40 per tonne for open pit and 0.65% copper cut-off for underground, both assuming $1,650 per ounce
gold, $22.00 per ounce silver, $3.60 per pound copper and $12.00 per pound molybdenum.
Copper World Complex project – 0.1% copper cut-off and an oxidation ratio of lower than 50%, assuming $3.75 per pound copper, $12.00
per pound molybdenum, $22.00 per ounce silver, and $1,650 per ounce gold.
Cotabambas project – 0.15% copper equivalent cut-off assuming $1,850 per ounce gold, $23.00 per ounce silver, $4.25 per pound copper
and $20.00 per pound molybdenum.
Cozamin mine – NSR cut-off of $59.00 per tonne assuming $3.75 per pound copper, $22.00 per ounce silver, $1.00 per pound lead and
$1.35 per pound zinc.
Curraghinalt project – 5.0 grams per tonne gold cut-off assuming $1,200 per ounce gold.
Curipamba project - NSR cut-off of $29.00 per tonne for the open pit and $105 per tonne for the underground assuming $1,800 per ounce
gold, $24.00 per ounce silver, $4.00 per pound copper, $1.05 per pound lead and $1.30 per pound zinc.
m. DeLamar project – 0.17 grams per tonne gold equivalent cut-off for oxide leach and mixed leach and 0.1 grams per tonne gold equivalent
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [69]
cut-off for stockpile, all assuming $1,800 per ounce gold and $21.00 per ounce silver
n.
Fenix project – 0.15 grams per tonne gold cut-off assuming $1,800 per ounce gold.
o. Goose project - 1.4 grams per tonne gold cut-off for open pit and 3.0 grams per tonne for underground for all deposits, assuming a gold
price of $1,550 per ounce.
p.
q.
r.
s.
t.
Kudz Ze Kayah project – NSR cut-off of Cdn$25 per tonne for open pit and Cdn$95 per tonne for underground assuming $1,300 per
ounce gold, $20.00 per ounce silver, $3.50 per pound copper, $1.05 per pound lead and $1.50 per pound zinc.
Kutcho project – 0.45% copper equivalent cut-off for the Main open pit and underground copper equivalent cut-offs of 1.05%, 0.95% and
1.05% for Main, Esso and Sumac respectively, all assuming $3.50 per pound copper, $1.15 per pound zinc, $20.00 per ounce silver and
$1,600 per ounce gold.
Loma de La Plata project – 50 grams per tonne silver equivalent cut-off assuming $12.50 per ounce silver and $0.50 per pound lead.
Los Filos mine – 0.2 grams per tonne gold cut-off for the open pits, 1.71 grams per tonne gold cut-off for Los Filos South underground,
2.05 grams per tonne gold cut-off for Los Filos North underground and 2.71 grams per tonne gold cut-off for Bermejal underground, all
assuming $1,550 per ounce gold and $18.00 per ounce silver.
Marathon project – NSR cut-off of Cdn$15.00 per tonne for the Marathon project assuming $1,800 per ounce palladium, $1,000 per
ounce platinum, $3.50 per pound copper, $1,600 per ounce gold and $20.00 per ounce silver. NSR cut-off of Cdn$13.00 per tonne for
the Sally and Geordie projects assuming $1,600 per ounce palladium, $900 per ounce platinum, $3.00 per pound copper, $1,500 per
ounce gold and $18.00 per ounce silver.
u. Marmato mine – 1.8 grams per tonne gold cut-off for the Upper Mine and 1.3 grams per tonne gold cut-off for the Lower Mine, all assuming
$1,700 per ounce gold.
v. Metates royalty – 0.26 grams per tonne gold equivalent cut-off assuming $1,600 per ounce gold and $20.00 per ounce silver.
w. Mineral Park project - 0.15 percent copper equivalent cut-off assuming $3.45 per pound copper, $10.00 per pound molybdenum and
$23.00 per ounce silver.
x. Minto mine – NSR cut-off of Cdn$35.00 per tonne for open pit and Cdn$70 per tonne for underground, assuming $1,500 per ounce gold,
$18.00 per ounce silver and $3.10 per pound copper.
y. Mt Todd project – 0.4 grams per tonne gold cut-off for the Batman and Quigleys deposits and zero cut-off for Heap Leach, assuming
$1,300 per ounce gold.
z.
Neves-Corvo mine – 1.0% copper cut-off for the copper Mineral Resource and 4.5% zinc cut-off for the zinc Mineral Resource, both
assuming $4.20 per pound copper, $0.90 per pound lead and $1.15 per pound zinc.
aa. Pascua-Lama project – $1,700 per ounce gold, $21.00 per ounce silver and $3.75 per pound copper.
bb. Peñasquito mine - $1,600 per ounce gold, $23.00 per ounce silver, $1.20 per pound lead and $1.45 per pound zinc.
cc. Platreef project - 2.0 grams per tonne 3PE + Au (platinum, palladium, rhodium and gold) cut-off.
dd. Salobo mine – 0.25% copper equivalent cut-off assuming $1,525 per ounce gold and $3.52 per pound copper.
ee. San Dimas mine – 165 grams per tonne silver equivalent cut-off assuming $1,800 per ounce gold and $25.00 per ounce silver.
ff.
Santo Domingo project - 0.125% copper equivalent cut-off assuming $3.50 per pound copper, $1,300 per ounce gold and $99 per tonne
iron.
gg. Stillwater mines – combined platinum and palladium cut-off of 3.77 grams per tonne for Stillwater, 6.86 grams per tonne for East Boulder
sub-level extraction and 1.71 grams per tonne for East Boulder Ramp & Fill assuming $1,500 per ounce 2E PGM prices.
hh. Stratoni mine – NSR cut-off of $200 per tonne assuming $2.75 per pound copper, $0.91 per pound lead, $1.04 per pound zinc and $17.00
per ounce silver.
ii.
jj.
Sudbury mines - $1,200 to $1,373 per ounce gold, $6.07 to $8.16 per pound nickel, $2.38 to $3.18 per pound copper, $1,150 to $1,225
per ounce platinum, $750 to $1,093 per ounce palladium and $12.47 to $20.41 per pound cobalt.
Toroparu project – 0.50 grams per tonne gold cut-off for open pit and 1.5 grams per tonne for underground assuming $1,650 per ounce
gold.
kk. Voisey’s Bay mines – NSR cut-off of Cdn$28 per tonne for Discovery Hill Open Pit and Cdn$250 per tonne for Reid Brook and Discovery
Hill Underground, all assuming $3.40 per pound copper, $8.16 per pound nickel and $22.68 per pound cobalt.
ll.
Zinkgruvan mine – NSR cut-offs ranging from SEK 740 to 920 per tonne depending on area and mining method for the zinc Mineral
Resources and NSR cut-offs ranging from SEK 800 to 830 per tonne for the copper Mineral Resources assuming $4.20 per pound copper
and $0.90 per pound lead and $1.15 per pound zinc.
10. The scientific and technical information in these tables regarding the Antamina, Peñasquito and Salobo mines was sourced by the Company from
the following filed documents:
a.
b.
c.
Antamina – Teck Resources Annual Information Form filed on SEDAR on February 23, 2024.
Peñasquito – Newmont’s December 31, 2023 Resources and Reserves press release dated February 22, 2024 and
Salobo – Vale has filed a technical report summary for the Salobo Mine, which is available on Edgar at
https://www.sec.gov/Archives/edgar/data/0000917851/000110465922040322/tm2210823d1_6k.htm.
The Company QP’s have approved this partner disclosed scientific and technical information in respect of the Company’s Mineral Resource and
Mineral Reserve estimates for the Antamina mine, Peñasquito mine and Salobo mine.
11. The Company’s attributable Mineral Resources and Mineral Reserves for the Antamina silver interest, Cozamin silver interest, Marmato gold and
silver interests, Santo Domingo gold interest, Blackwater gold and silver interests, Marathon gold and platinum interests, Sudbury gold interest,
Fenix gold interest, Goose gold interest, Curipamba gold and silver interests, Stillwater palladium interest, Cangrejos gold interest, Curraghinalt
gold interest, Kudz Ze Kayah gold and silver interests, Platreef gold, palladium and platinum interests, Mt Todd royalty and Voisey’s Bay cobalt
interest have been constrained to the production expected for the various contracts.
12. The Company has the option in the Early Deposit agreements, to terminate the agreement following the delivery of a feasibility study or if
feasibility study has not been delivered within a required time frame.
13. The Stillwater PMPA provides that effective July 1, 2018, Sibanye-Stillwater will deliver 100% of the gold production for the life of the mines and
4.5% of palladium production until 375,000 ounces are delivered, 2.25% of palladium production until a further 175,000 ounces are delivered and
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [70]
1.0% of the palladium production thereafter for the life of the mines. Attributable palladium Mineral Reserves and Mineral Resources have been
calculated based upon the 4.5% / 2.25% / 1.0% production entitlements.
The Stillwater mine has been in operation since 1986 and the East Boulder mine since 2002. Individual grades for platinum, palladium, gold and
rhodium are estimated using ratios applied to the combined platinum plus palladium grades based upon average historic production results
provided to the Company as of the date of this document. As such, the Attributable Mineral Resource and Mineral Reserve palladium and gold
grades for the Stillwater mines have been estimated using the following ratios:
a.
b.
Stillwater mine: Pd = (Pt + Pd) / (1/3.51 + 1) and Au = (Pd + Pt) x 0.0238
East Boulder mine: Pd = (Pt + Pd) / (1/3.60 + 1) and Au = (Pd + Pt) x 0.0323
14. 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.
15. The Marmato PMPA provides that Aris Gold Corp will deliver 10.5% of the gold production until 310,000 ounces are delivered and 5.25% of gold
production thereafter, as well as 100% of the silver production until 2.15 million ounces are delivered and 50% of silver production thereafter.
Attributable reserves and resources have been calculated on the 10.5% / 5.25% basis for gold and 100% / 50% basis for silver.
16. The Company’s PMPA with Aris Mining, is an Early Deposit agreement, whereby the Company will be entitled to purchase 10% of the gold
production and 50% of the silver production from the Toroparu project for the life of mine.
17. The Company’s agreement with Chesapeake Gold Corp (Chesapeake) is a royalty whereby the Company will be entitled to a 0.5% net smelter
return royalty.
18. The Antamina PMPA in respect to the Antamina mine (November 3, 2015) provides that Glencore will deliver silver equal to 33.75% of the silver
production until 140 million ounces are delivered and 22.5% of silver production thereafter. Attributable reserves and resources have been
calculated on the 33.75% / 22.5% basis.
19. The Company only has the rights to silver contained in concentrates containing less than 15% copper at the Aljustrel mine.
20. The Cozamin PMPA provides that Capstone will deliver silver equal to 50% of the silver production until 10 million ounces are delivered and 33%
thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 50% / 33% basis.
21. The Copper World Complex Mineral Resources and Mineral Reserves do not include the Leach material.
22. The Voisey’s Bay cobalt PMPA provides that Vale will deliver 42.4% of the cobalt production until 31 million pounds are delivered to the
Company and 21.2% of cobalt production thereafter, for the life of the mine. Attributable reserves and resources have been calculated on the
42.4% / 21.2% basis.
23. The Company’s PMPA with Panoro is an Early Deposit agreement, whereby the Company will be entitled to purchase 100% of the silver production
and 25% of the gold production from the Cotabambas project until 90 million silver equivalent ounces have been delivered, at which point the
stream will drop to 66.67% of silver production and 16.67% of gold production for the life of mine.
24. The Company’s PMPA with Golden Predator Exploration Ltd., a subsidiary of Sabre Gold Mines Corp., is a royalty, whereby the Company will be
entitled to a 2.0% net smelter return royalty for the first 600,000 ounces of gold produced from the Brewery Creek mine, above which the NSR
will increase to 2.75%. Sabre has the right to repurchase 0.625% of the increased NSR by paying the Company Cdn$2.0 million. Attributable
resources have been calculated on the 2.0% / 2.75% basis.
25. The Santo Domingo PMPA provides that Capstone will deliver gold equal to 100% of the gold production until 285,000 ounces are delivered and
67% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 100% / 67% basis.
26. The Fenix PMPA provides that Rio2 will deliver gold equal to 6% of the gold production until 90,000 ounces are delivered, then 4% of the gold
production until 140,000 ounces are delivered and 3.5% thereafter for the life of the mine. Attributable reserves and resources have been
calculated on this 6% / 4% / 3.5% basis.
27. The Blackwater silver and gold stream agreements provide that Artemis will deliver respectively silver and gold equal to (i) 50% of the payable
silver production until 17.8 million ounces are delivered and 33% thereafter for the life of the mine, and (ii) 8% of the payable gold production until
464,000 ounces are delivered and 4% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 50% /
33% basis for silver and 8% / 4% basis for gold.
28. The Marathon PMPA provides that Generation will deliver 100% of the gold production until 150,000 ounces are delivered and 67% thereafter for
the life of the mine and 22% of the platinum production until 120,000 ounces are delivered and 15% thereafter for the life of the mine.
Attributable reserves and resources have been calculated on the 100% / 67% basis for gold and 22% / 15% basis for platinum.
29. The Curipamba PMPA provides that Adventus will deliver silver and gold equal to 75% of the silver production until 4.6 million ounces are
30.
delivered and 50% thereafter for the life of the mine and 50% of the gold production until 150,000 ounces are delivered and 33% thereafter for
the life of the mine. Attributable reserves and resources have been calculated on the 75% / 50% basis for silver and 50% / 33% basis for gold.
In connection with Sabina’s exercise of its option to repurchase 33% of the Goose gold stream on a change in control, the gold delivery
obligations under the Company’s PMPA with Sabina, a subsidiary of B2 Gold, were reduced so that Sabina will deliver gold equal to 2.78% of the
gold production until 87,100 ounces are delivered, then 1.44% until 134,000 ounces are delivered and 1.0% thereafter for the life of the
mine. Attributable reserves and resources have been calculated on the 2.78% / 1.44% / 1.0% basis.
31. The Cangrejos PMPA provides that Lumina Gold will deliver gold equal to 6.6% of the gold production until 0.7 million ounces are delivered and
4.4% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 6.6% / 4.4% basis.
32. The Company’s PMPA with Liberty Gold is a royalty, whereby the Company will be entitled to a 0.5% net smelter return. Attributable resources
have been calculated on the 0.5% basis.
33. The Curraghinalt PMPA provides that Dalradian will deliver gold equal to 3.05% of the payable gold production until 125,000 ounces of gold are
delivered and 1.5% thereafter for the life of the mine. Attributable gold reserves and resources have been calculated on the 3.05% / 1.5% basis.
34. The Kudz Ze Kayah PMPA provides that BMC will deliver gold and silver equal to 7.375% of the metal contained in concentrates until 24,338
ounces of gold and 3,193,375 ounces of silver are delivered, then 6.125% until 28,000 ounces of gold and 3,680,803 ounces of silver are
delivered, then 5.5% until 42,861 ounces of gold and 5,624,613 ounces of silver are delivered and 6.75% thereafter for the life of the mine.
Attributable gold and silver reserves and resources have been calculated on the 7.375% / 6.125% / 5.5% / 6.75% basis.
35. The Platreef PMPA provides that Ivanhoe will deliver gold equal to 62.5% of the payable gold production until 218,750 ounces of gold are
delivered and 50% until 428,300 ounces of gold are delivered, then 3.125% thereafter for a tail period which will terminate on certain conditions
being met and 5.25% of the platinum and palladium until 350,000 ounces are delivered and 3.0% until 485,115 ounces are delivered, then 0.1%
for a tail period which will terminate on certain conditions being met. Attributable gold reserves and resources have been calculated on the
62.5% / 50% / 3.125% basis and attributable platinum and palladium on the 5.25% / 3.0% / 0.1% basis.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [71]
36. The Company’s PMPA with Vista Gold, is a royalty, whereby the Company will be entitled to 1.0% of gross revenue until 3.47 million ounces of
gold are delivered to an offtaker, then 0.667% of gross revenue for the life of the mine. Attributable gold reserves and resources have been
calculated on the 1.0% / 0.667% basis.
37. The Company’s PMPA with Integra Resources is a royalty, whereby the Company will be entitled to a 1.5% net smelter return. Attributable
resources and reserves have been calculated on the 1.5% basis.
38. On May 13, 2023, Minto announced the suspension of operations at the Minto mine.
39. Precious metals and cobalt are by-product metals at all of the Mining Operations, other than gold at the Marmato mine, Toroparu project, Fenix
project, Goose project, Blackwater project, Black Pine project, Curraghinalt project, Mt Todd project and DeLamar project, silver at the Loma de
La Plata zone of the Navidad project and palladium at the Stillwater mines and Platreef project, and therefore, the economic cut off applied to the
reporting of precious metals and cobalt reserves and resources will be influenced by changes in the commodity prices of other metals at the
mines.
Statements made in this section contain forward-looking information. Please see “Cautionary Note Regarding Forward-Looking Statements” for
material risks, assumptions and important disclosure associated with this information.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [72]
Cautionary Note Regarding Forward-Looking Statements
The information contained herein contains “forward-looking statements” within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable
Canadian securities legislation. Forward-looking statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with respect to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
the future price of commodities;
the estimation of future production from Mining Operations (including in the estimation of production, mill
throughput, grades, recoveries and exploration potential);
the estimation of mineral reserves and mineral resources (including the estimation of reserve conversion
rates and the realization of such estimations);
the commencement, timing and achievement of construction, expansion or improvement projects by
Wheaton’s PMPA counterparties at Mining Operations;
the payment of upfront cash consideration to counterparties under PMPAs, the satisfaction of each party's
obligations in accordance with PMPAs and the receipt by the Company of precious metals and cobalt
production in respect of the applicable Mining Operations under PMPAs or other payments under royalty
arrangements;
the ability of Wheaton’s PMPA counterparties to comply with the terms of a PMPA (including as a result
of the business, mining operations and performance of Wheaton’s PMPA counterparties) and the potential
impacts of such on Wheaton;
future payments by the Company in accordance with PMPAs, including any acceleration of payments;
the costs of future production;
the estimation of produced but not yet delivered ounces;
the future sales of Common Shares under, the amount of net proceeds from, and the use of the net
proceeds from, the ATM Program;
continued listing of the Common Shares on the LSE, NYSE and TSX;
any statements as to future dividends;
the ability to fund outstanding commitments and the ability to continue to acquire accretive PMPAs;
projected increases to Wheaton's production and cash flow profile;
projected changes to Wheaton’s production mix;
the ability of Wheaton’s PMPA counterparties to comply with the terms of any other obligations under
agreements with the Company;
the ability to sell precious metals and cobalt production;
confidence in the Company’s business structure;
the Company's assessment of taxes payable, including the implementation of a 15% global minimum tax,
and the impact of the CRA Settlement;
possible CRA domestic audits for taxation years subsequent to 2016 and international audits;
the Company’s assessment of the impact of any tax reassessments;
the Company’s intention to file future tax returns in a manner consistent with the CRA Settlement;
the Company’s climate change and environmental commitments; and
assessments of the impact and resolution of various legal and tax matters, including but not limited to
audits.
Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as
“plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “projects”,
“intends”, “anticipates” or “does not anticipate”, or “believes”, “potential”, or variations of such words and phrases or
statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be
achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or achievements of Wheaton to be materially different
from those expressed or implied by such forward-looking statements, including but not limited to:
•
•
•
•
risks associated with fluctuations in the price of commodities (including Wheaton’s ability to sell its
precious metals or cobalt production at acceptable prices or at all);
risks related to the Mining Operations (including fluctuations in the price of the primary or other
commodities mined at such operations, regulatory, political and other risks of the jurisdictions in which
the Mining Operations are located, actual results of mining, risks associated with exploration,
development, operating, expansion and improvement at the Mining Operations, environmental and
economic risks of the Mining Operations, and changes in project parameters as Mining Operations plans
continue to be refined);
absence of control over the Mining Operations and having to rely on the accuracy of the public disclosure
and other information Wheaton receives from the owners and operators of the Mining Operations as the
basis for its analyses, forecasts and assessments relating to its own business;
risks related to the uncertainty in the accuracy of mineral reserve and mineral resource estimation;
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [73]
•
•
risks related to the satisfaction of each party’s obligations in accordance with the terms of the Company’s
PMPAs, including the ability of the companies with which the Company has PMPAs to perform their
obligations under those PMPAs in the event of a material adverse effect on the results of operations,
financial condition, cash flows or business of such companies, any acceleration of payments, estimated
throughput and exploration potential;
risks relating to production estimates from Mining Operations, including anticipated timing of the
commencement of production by certain Mining Operations;
•
•
•
•
• Wheaton’s interpretation of, or compliance with, or application of, tax laws and regulations or accounting
policies and rules, being found to be incorrect or the tax impact to the Company’s business operations
being materially different than currently contemplated;
any challenge or reassessment by the CRA of the Company’s tax filings being successful and the potential
negative impact to the Company’s previous and future tax filings;
risks in assessing the impact of the CRA Settlement (including whether there will be any material change
in the Company's facts or change in law or jurisprudence);
risks related to any potential amendments to Canada’s transfer pricing rules under the Income Tax Act
(Canada) that may result from the Department of Finance’s consultation paper released June 6, 2023;
risks relating to the implementation of a 15% global minimum tax, including the draft legislation issued for
consultation by the Canadian Federal Government on August 4, 2023 that would apply to the income of
the Company’s non-Canadian subsidiaries and the legislation enacted in Luxembourg that applies to the
income of the Company’s Luxembourg subsidiary as of January 1, 2024 and the Company and its other
subsidiaries from January 1, 2025;
counterparty credit and liquidity risks;
•
• mine operator and counterparty concentration risks;
•
•
•
•
•
•
•
•
•
•
•
•
•
indebtedness and guarantees risks;
hedging risk;
competition in the streaming industry risk;
risks relating to security over underlying assets;
risks relating to third-party PMPAs;
risks relating to revenue from royalty interests;
risks related to Wheaton’s acquisition strategy;
risks relating to third-party rights under PMPAs;
risks relating to future financings and security issuances;
risks relating to unknown defects and impairments;
risks related to governmental regulations;
risks related to international operations of Wheaton and the Mining Operations;
risks relating to exploration, development, operating, expansions and improvements at the Mining
Operations;
risks related to environmental regulations;
the ability of Wheaton and the Mining Operations to obtain and maintain necessary licenses, permits,
approvals and rulings;
the ability of Wheaton and the Mining Operations to comply with applicable laws, regulations and
permitting requirements;
lack of suitable supplies, infrastructure and employees to support the Mining Operations;
risks related to underinsured Mining Operations;
inability to replace and expand mineral reserves, including anticipated timing of the commencement of
production by certain Mining Operations (including increases in production, estimated grades and
recoveries);
uncertainties related to title and indigenous rights with respect to the mineral properties of the Mining
Operations;
the ability of Wheaton and the Mining Operations to obtain adequate financing;
the ability of the Mining Operations to complete permitting, construction, development and expansion;
challenges related to global financial conditions;
risks associated with environmental, social and governance matters;
risks related to fluctuations in commodity prices of metals produced from the Mining Operations other
than precious metals or cobalt;
risks related to claims and legal proceedings against Wheaton or the Mining Operations;
risks related to the market price of the Common Shares of Wheaton;
the ability of Wheaton and the Mining Operations to retain key management employees or procure the
services of skilled and experienced personnel;
risks related to interest rates;
risks related to the declaration, timing and payment of dividends;
risks related to access to confidential information regarding Mining Operations;
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [74]
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
risks associated with multiple listings of the Common Shares on the LSE, NYSE and TSX;
risks associated with a possible suspension of trading of Common Shares;
risks associated with the sale of Common Shares under the ATM Program, including the amount of any
net proceeds from such offering of Common Shares and the use of any such proceeds;
equity price risks related to Wheaton’s holding of long-term investments in other companies;
risks relating to activist shareholders;
risks relating to reputational damage;
risks relating to expression of views by industry analysts;
risks related to the impacts of climate change and the transition to a low-carbon economy;
risks associated with the ability to achieve climate change and environmental commitments at Wheaton
and at the Mining Operations;
risks related to ensuring the security and safety of information systems, including cyber security risks;
risks relating to generative artificial intelligence;
risks relating to compliance with anti-corruption and anti-bribery laws;
risks relating to corporate governance and public disclosure compliance;
risks of significant impacts on Wheaton or the Mining Operations as a result of an epidemic or pandemic;
risks related to the adequacy of internal control over financial reporting;
other risks discussed in the section entitled “Description of the Business – Risk Factors” in Wheaton’s
most recent Annual Information Form available on SEDAR+ at www.sedarplus.ca, and in Wheaton’s Form
40-F and Form 6-Ks, all on file with the U.S. Securities and Exchange Commission in Washington, D.C.
and available on EDGAR (the "Disclosure”).
Forward-looking statements are based on assumptions management currently believes to be reasonable, including but
not limited to:
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
that there will be no material adverse change in the market price of commodities;
that the Mining Operations will continue to operate and the mining projects will be completed in
accordance with public statements and achieve their stated production estimates;
that the mineral reserves and mineral resource estimates from Mining Operations (including reserve
conversion rates) are accurate;
that public disclosure and other information Wheaton receives from the owners and operators of the
Mining Operations is accurate and complete;
that the production estimates from Mining Operations are accurate;
that each party will satisfy their obligations in accordance with the PMPAs;
that Wheaton will continue to be able to fund or obtain funding for outstanding commitments;
that Wheaton will be able to source and obtain accretive PMPAs;
that the terms and conditions of a PMPA are sufficient to recover liabilities owed to the Company;
that Wheaton has fully considered the value and impact of any third-party interests in PMPAs;
that expectations regarding the resolution of legal and tax matters will be achieved (including CRA audits
involving the Company);
that Wheaton has properly considered the application of Canadian tax laws to its structure and operations;
that Wheaton has filed its tax returns and paid applicable taxes in compliance with Canadian tax laws;
that Wheaton's application of the CRA Settlement is accurate (including the Company's assessment that
there has been no material change in the Company's facts or change in law or jurisprudence);
that Wheaton’s assessment of the tax exposure and impact on the Company and its subsidiaries of the
implementation of a 15% global minimum tax is accurate;
that any sale of Common Shares under the ATM Program will not have a significant impact on the market
price of the Common Shares and that the net proceeds of sales of Common Shares, if any, will be used
as anticipated;
that the trading of the Common Shares will not be adversely affected by the differences in liquidity,
settlement and clearing systems as a result of multiple listings of the Common Shares on the LSE, the
TSX and the NYSE;
that the trading of the Company’s Common Shares will not be suspended;
the estimate of the recoverable amount for any PMPA with an indicator of impairment;
that neither Wheaton nor the Mining Operations will suffer significant impacts as a result of an epidemic
or pandemic; and
such other assumptions and factors as set out in the Disclosure.
Although Wheaton has attempted to identify important factors that could cause actual results, level of activity,
performance or achievements to differ materially from those contained in forward-looking statements, there may be
other factors that cause results, level of activity, performance or achievements not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements will prove to be accurate and even if events or
results described in the forward-looking statements are realized or substantially realized, there can be no assurance
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [75]
that they will have the expected consequences to, or effects on, Wheaton. Accordingly, readers should not place
undue reliance on forward-looking statements and are cautioned that actual outcomes may vary. The forward-looking
statements included herein are for the purpose of providing investors with information to assist them in understanding
Wheaton’s expected financial and operational performance and may not be appropriate for other purposes. Any
forward looking statement speaks only as of the date on which it is made. Wheaton does not undertake to update any
forward-looking statements that are included or incorporated by reference herein, except in accordance with
applicable securities laws.
Cautionary Language Regarding Reserves And Resources
For further information on Mineral Reserves and Mineral Resources and on Wheaton more generally, readers should
refer to Wheaton’s Annual Information Form for the year ended December 31, 2022 and other continuous disclosure
documents filed by Wheaton since January 1, 2023, available on SEDAR+ at www.sedarplus.ca. Wheaton’s Mineral
Reserves and Mineral Resources are subject to the qualifications and notes set forth therein. Mineral Resources
which are not Mineral Reserves do not have demonstrated economic viability.
Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred
Resources:
The information contained herein has been prepared in accordance with the requirements of the securities laws in
effect in Canada, which differ from the requirements of United States securities laws. The terms "mineral reserve",
"proven mineral reserve" and "probable mineral reserve" are Canadian mining terms defined in accordance with
Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects ("NI 43-101") and the Canadian
Institute of Mining, Metallurgy and Petroleum (the "CIM") – CIM Definition Standards on Mineral Resources and
Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Definition Standards"). NI 43-101 differs
significantly from the disclosure requirements of the SEC generally applicable to U.S. companies. For example, there
is no assurance any mineral reserves or mineral resources that the Company may report as “proven mineral
reserves”, “probable mineral reserves”, “measured mineral resources”, “indicated mineral resources” and “inferred
mineral resources” under NI 43-101 would be the same had the Company prepared the reserve or resource
estimates under the standards of the SEC generally applicable to U.S. companies. Accordingly, information contained
herein that describes Wheaton’s mineral deposits may not be comparable to similar information made public by U.S.
companies subject to reporting and disclosure requirements under the United States federal securities laws and the
rules and regulations thereunder. United States investors are urged to consider closely the disclosure in Wheaton’s
Form 40-F, a copy of which may be obtained from Wheaton or from http://www.sec.gov/edgar.html.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - MANAGEMENT DISCUSSION & ANALYSIS [76]
Part 2: Financial
Statements
Management’s Responsibility for Financial Reporting
The accompanying consolidated financial statements of Wheaton Precious Metals Corp. (“Wheaton”) were prepared
by management, which is responsible for the integrity and fairness of the information presented, including the many
amounts that must of necessity be based on estimates and judgments. These consolidated financial statements were
prepared in accordance with International Financial Reporting Standards as issued by the International Accounting
Standards Board (“IFRS”). Financial information appearing throughout our Management’s Discussion and Analysis
(“MD&A”) is consistent with these consolidated financial statements.
In discharging our responsibility for the integrity and fairness of the consolidated financial statements and for the
accounting systems from which they are derived, we maintain and rely on a comprehensive system of internal
controls designed to ensure that transactions are authorized, assets are safeguarded and proper records are
maintained. These controls include business planning; delegation of authority; careful selection and hiring of staff;
accountability for performance within appropriate and well-defined areas of responsibility; and the communication of
policies and guidelines of business conduct throughout the company.
The Board of Directors oversees management’s responsibilities for financial reporting through the Audit Committee,
which is composed entirely of directors who are neither officers nor employees of Wheaton. The Audit Committee
reviews Wheaton’s interim and annual consolidated financial statements and MD&A and recommends them for
approval by the Board of Directors. Other key responsibilities of the Audit Committee include monitoring Wheaton’s
system of internal controls, monitoring its compliance with legal and regulatory requirements, selecting the external
auditors and reviewing the qualifications, independence and performance of the external auditors.
Deloitte LLP, Independent Registered Public Accounting Firm, appointed by the shareholders of Wheaton upon the
recommendation of the Audit Committee and the Board of Directors, have performed an independent audit of the
consolidated financial statements and their report follows. The auditors have full and unrestricted access to the Audit
Committee to discuss their audit and related findings.
/s/ Randy Smallwood
Randy Smallwood
/s/ Gary Brown
Gary Brown
President & Chief Executive Officer
Senior Vice President & Chief Financial Officer
March 14, 2024
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [2]
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Wheaton Precious Metals Corp.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Wheaton Precious Metals Corp. and
subsidiaries (the "Company") as of December 31, 2023 and 2022, the related consolidated statements of earnings,
comprehensive income, shareholders' equity, and cash flows, for each of the two years in the period ended
December 31, 2023, and the related notes (collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all material respects, the financial position of the Company as of December
31, 2023 and 2022, and its financial performance and its cash flows for each of the two years in the period ended
December 31, 2023, in accordance with International Financial Reporting Standards as issued by the International
Accounting Standards Board.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board
(United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based
on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission and our report dated March 14, 2024, expressed an unqualified
opinion on the Company's internal control over financial reporting.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express
an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered
with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and
the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of
material misstatement of the financial statements, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial
statements that was communicated or required to be communicated to the audit committee and that (1) relates to
accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. The communication of critical audit matters does not alter in any way our
opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter
below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Impairment - Assessment of Whether Indicators of Impairment or Impairment Reversal Exist within the
Mineral Stream Interests - Refer to Note 4.3 to the financial statements
Critical Audit Matter Description
The Company considers each precious metals purchase agreement (“PMPA”) to be a separate cash generating
unit (“CGU”). The Company’s determination of whether or not an indicator of impairment or impairment reversal
exists at the CGU level requires significant management judgment. Changes in metal price forecasts, discount
rates, reductions or increases in the amount of future recoverable ounces of metals attributable to the Company
and/or adverse or favorable operational, political or regulatory developments impacting the mining properties in
respect of which the Company has PMPAs can result in a write-down or write-up of the carrying amounts of the
Company’s mineral stream interests.
While there are several factors that are required to determine whether or not an indicator of impairment or
impairment reversal exists, the judgments with the highest degree of subjectivity are evaluating the impact of (1)
changes to future metal prices for gold, silver, palladium and cobalt, and (2) changes in the amount of future
recoverable ounces of metals attributable to the Company. Auditing these estimates and factors required a high
degree of subjectivity in applying audit procedures and in evaluating the results of those procedures. This resulted
in an increased extent of audit effort, including the involvement of fair value specialists.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [3]
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures to evaluate the impact of changes to (1) future metal prices for gold, silver, palladium and
cobalt and (2) changes in the amount of future recoverable ounces of metals attributable to the Company in the
assessment of indicators of impairment or impairment reversal included the following, among others:
• Evaluated the effectiveness of the Company's controls over management's assessment of indicators of
impairment or impairment reversal.
• Evaluated management's ability to accurately forecast future recoverable ounces of metals attributable to the
Company by:
- Assessing the methodology used in management's determination of the future recoverable ounces of
attributable metals;
- Completing retrospective analysis comparing the Company’s historical forecasts to actual results;
- Comparing management's expected future recoverable ounces of attributable metals to reserve and
resource estimates prepared by the third-party mining property operators; and
- Considering the professional qualifications and objectivity of management’s specialists.
• With the assistance of fair value specialists, evaluated the significance of movements in future metal prices for
gold, silver, palladium and cobalt by comparing historical forecasts to current third-party forecasts.
/s/ Deloitte LLP
Chartered Professional Accountants
Vancouver, Canada
March 14, 2024
We have served as the Company's auditor since 2004.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [4]
Management’s Report on Internal Control Over Financial Reporting
Management of Wheaton Precious Metals Corp. (“Wheaton”) is responsible for establishing and maintaining
adequate internal control over financial reporting. Internal control over financial reporting is a process designed by, or
under the supervision of the Chief Executive Officer and the Chief Financial Officer and effected by the Board of
Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. It includes those policies
and procedures that:
i.
ii.
iii.
pertain to the maintenance of records that accurately and fairly reflect, in reasonable detail, the transactions
related to Wheaton’s assets;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with IFRS, and Wheaton receipts and expenditures are made only in accordance
with authorizations of management and Wheaton’s directors; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of Wheaton’s assets that could have a material effect on Wheaton’s financial statements.
Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements on a
timely basis. Also, projections of any evaluation of the effectiveness of internal control over financial reporting to
future periods are subject to the risk that the controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of Wheaton’s internal control over financial reporting as of December 31,
2023, based on the criteria set forth in Internal Control — Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). Based on this assessment, management has
concluded that, as of December 31, 2023, Wheaton’s internal control over financial reporting was effective.
The effectiveness of Wheaton’s internal control over financial reporting, as of December 31, 2023, has been audited
by Deloitte LLP, Independent Registered Public Accounting Firm, who also audited the Company’s consolidated
financial statements as of and for the year ended December 31, 2023, as stated in their report.
/s/ Randy Smallwood
/s/ Gary Brown
Randy Smallwood
Gary Brown
President & Chief Executive Officer
Senior Vice President & Chief Financial Officer
March 14, 2024
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [5]
Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Wheaton Precious Metals Corp.
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Wheaton Precious Metals Corp. and subsidiaries (the
“Company") as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion,
the Company maintained, in all material respects, effective internal control over financial reporting as of December
31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United
States) (PCAOB), the consolidated financial statements as of and for the year ended December 31, 2023, of the
Company and our report dated March 14, 2024, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for
its assessment of the effectiveness of internal control over financial reporting, included in the accompanying
Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the
Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered
with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was
maintained in all material respects. Our audit included obtaining an understanding of internal control over financial
reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
/s/ Deloitte LLP
Chartered Professional Accountants
Vancouver, Canada
March 14, 2024
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [6]
Consolidated Statements of Earnings
(US dollars and shares in thousands, except per share amounts)
Sales
Cost of sales
Cost of sales, excluding depletion
Depletion
Total cost of sales
Gross margin
General and administrative expenses
Share based compensation
Donations and community investments
Impairment reversal of mineral stream interests
Earnings from operations
Gain on disposal of mineral stream interests
Other income (expense)
Earnings before finance costs and income taxes
Finance costs
Earnings before income taxes
Income tax expense
Net earnings
Basic earnings per share
Diluted earnings per share
Weighted average number of shares outstanding
Basic
Diluted
Years Ended December 31
Note
2023
2022
6 $ 1,016,045 $ 1,065,053
$
228,171 $
214,434
267,621
231,952
$
442,605 $
499,573
$
7
8
9
13, 25
$
$
$
13
10
17.3
23
573,440 $
38,165
22,744
7,261
-
505,270 $
5,027
34,271
544,568 $
5,510
539,058 $
1,414
565,480
35,831
20,060
6,296
(8,611)
511,904
155,868
7,449
675,221
5,586
669,635
509
$
537,644 $
669,126
$
$
1.187 $
1.186 $
1.482
1.479
21
21
452,814
453,463
451,570
452,344
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [7]
Consolidated Statements of Comprehensive Income
(US dollars in thousands)
Net earnings
Other comprehensive income
Items that will not be reclassified to net earnings
(Loss) gain on LTIs¹
Income tax (recovery) expense related to LTIs
Total other comprehensive (loss) income
Total comprehensive income
1)
LTIs = long-term investments – common shares held.
Years Ended December 31
Note
2023
2022
$
537,644 $
669,126
16 $
23
(26,632) $
(3,719)
21,052
6,513
$
(22,913) $
14,539
$
514,731 $
683,665
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [8]
Consolidated Balance Sheets
(US dollars in thousands)
Assets
Current assets
Cash and cash equivalents
Accounts receivable
Cobalt inventory
Income taxes receivable
Other
Total current assets
Non-current assets
Mineral stream interests
Early deposit mineral stream interests
Mineral royalty interests
Long-term equity investments
Property, plant and equipment
Other
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable and accrued liabilities
Income taxes payable
Current portion of performance share units
Current portion of lease liabilities
Total current liabilities
Non-current liabilities
Performance share units
Lease liabilities
Deferred income taxes
Pension liability
Total non-current liabilities
Total liabilities
Shareholders' equity
Issued capital
Reserves
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
/s/ Randy Smallwood
Randy Smallwood
Director
As at
December 31
As at
December 31
Note
2023
2022
22 $
11
12
23
24
546,527 $
10,078
1,372
5,935
3,499
696,089
10,187
10,530
-
3,287
$
567,411 $
720,093
13 $ 6,122,441 $ 5,707,019
46,092
14
6,606
15
256,095
16
4,210
19,791
47,093
13,454
246,678
7,638
26,470
25
$ 6,463,774 $ 6,039,813
$ 7,031,185 $ 6,759,906
$
13,458 $
23
20.1
17.2
-
12,013
604
12,570
2,763
14,566
818
$
26,075 $
30,717
20.1 $
17.2
23
9,113 $
5,625
232
4,624
6,673
1,152
165
3,524
$
$
19,594 $
11,514
45,669 $
42,231
18 $ 3,777,323 $ 3,752,662
66,547
19
2,898,466
(40,091)
3,248,284
$ 6,985,516 $ 6,717,675
$ 7,031,185 $ 6,759,906
/s/ Marilyn Schonberner
Marilyn Schonberner
Director
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [9]
Consolidated Statements of Cash Flows
(US dollars in thousands)
Operating activities
Net earnings
Adjustments for
Depreciation and depletion
Gain on disposal of mineral stream interest
Impairment reversal of mineral stream interests
Interest expense
Equity settled stock based compensation
Performance share units - expense
Performance share units - paid
Pension expense
Pension paid
Income tax expense (recovery)
Loss (gain) on fair value adjustment of share purchase warrants held
Investment income recognized in net earnings
Other
Change in non-cash working capital
Cash generated from operations before income taxes and interest
Income taxes paid
Interest paid
Interest received
Years Ended December 31
Note
2023
2022
$
537,644 $
669,126
13
17.3
20
20.1
20.1
23
10
22
$
215,926
(5,027)
-
207
6,438
16,306
(16,675)
1,122
(116)
1,414
31
(37,178)
1,227
1,912
723,231 $
(6,192)
(187)
33,957
233,539
(155,868)
(8,611)
91
5,846
14,214
(18,410)
1,033
-
509
1,033
(6,774)
67
1,573
737,368
(171)
(93)
6,320
Cash generated from operating activities
$
750,809 $
743,424
Financing activities
Credit facility extension fees
Share purchase options exercised
Lease payments
Dividends paid
Cash used for financing activities
Investing activities
Mineral stream interests
Early deposit mineral stream interests
Mineral royalty interest
Net proceeds on disposal of mineral stream interests
Acquisition of long-term investments
Proceeds on disposal of long-term investments
Investment in subscription rights
Dividends received
Other
Cash (used for) generated from investing activities
Effect of exchange rate changes on cash and cash equivalents
(Decrease) increase in cash and cash equivalents
Cash and cash equivalents, beginning of year
17.1 $
19.2
17.2
18.2
(859) $
12,415
(691)
(265,109)
(1,357)
10,368
(800)
(237,097)
$
(254,244) $
(228,886)
13 $
14
15
13
16, 22
16, 22
25
(663,528) $
(1,000)
(6,833)
46,400
(17,447)
202
(4,510)
2,317
(2,247)
(151,929)
(1,500)
-
131,763
(22,768)
-
-
453
(316)
$
$
$
(646,646) $
(44,297)
519 $
(197)
(149,562) $
696,089
470,044
226,045
Cash and cash equivalents, end of year
22 $
546,527 $
696,089
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [10]
Consolidated Statements of Shareholders’ Equity
Reserves
(US dollars in thousands)
Number of
Shares
(000's)
Share
Purchase
Warrants
Reserve 2
Share
Purchase
Options
Reserve
Restricted
Share Units
Reserve
LTI 1
Revaluation
Reserve
(Net of Tax)
Issued
Capital
Total
Reserves
Retained
Earnings
Total
At January 1, 2022
450,864 $ 3,698,998 $ 83,077 $ 22,349 $
7,196 $ (65,586) $ 47,036 $ 2,504,083 $ 6,250,117
Total comprehensive income
Net earnings
OCI 1
Total comprehensive income
Income tax recovery (expense)
SBC 1 expense
Options 1 exercised
RSUs 1 released
Dividends (Note 18.2)
Realized loss on disposal of
LTIs ¹ (Note 19.4)
$
$
$
493
88
874
- $
-
- $
4,143 $
-
13,138
2,534
33,849
- $
-
- $
- $
-
-
-
-
- $
-
- $
- $
-
-
-
-
-
- $
- $
- $ 669,126 $ 669,126
-
14,539 14,539
-
14,539
- $ 14,539 $ 14,539 $ 669,126 $ 683,665
- $
2,366
3,480
(2,137)
-
(2,534)
-
-
- $
-
- $
5,846
-
(2,137)
-
(2,534)
- $
-
-
-
4,143
5,846
11,001
-
-
- (270,946)
(237,097)
3,797
3,797
(3,797)
-
At December 31, 2022
452,319 $ 3,752,662 $ 83,077 $ 22,578 $
8,142 $ (47,250) $ 66,547 $ 2,898,466 $ 6,717,675
Total comprehensive income
Net earnings
OCI 1
Total comprehensive income
SBC 1 expense
$
$
$
Options 1 exercised
489
RSUs 1 released
Dividends (Note 18.2)
Warrant expiration
Realized gain on disposal of
LTIs ¹ (Note 19.4)
119
142
- $
-
- $
- $
14,060
3,967
6,634
- $
-
- $
- $
-
-
-
- (83,077)
- $
-
- $
- $
- $
- $ 537,644 $ 537,644
-
(22,913)
(22,913)
-
(22,913)
- $ (22,913) $ (22,913) $ 537,644 $ 514,731
2,607 $
3,831 $
- $
6,438 $
(2,278)
-
-
-
-
(3,967)
-
-
-
-
(2,278)
-
(3,967)
- $
-
-
6,438
11,782
-
-
- (271,744)
(265,110)
- (83,077)
83,077
(841)
(841)
841
-
-
-
-
-
At December 31, 2023
1) Definitions as follows: “OCI” = Other Comprehensive Income (Loss); “SBC” = Equity Settled Stock Based Compensation; “Options” = Share Purchase Options; “RSUs” =
8,006 $ (71,004) $ (40,091) $ 3,248,284 $ 6,985,516
453,069 $ 3,777,323 $
- $ 22,907 $
Restricted Share Units; “LTI’s” = Long-Term Investments; “Warrants” = Share Purchase Warrants.
2) Refer to Note 19.1.
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [11]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
1.
Description of Business and Nature of Operations
Wheaton Precious Metals Corp. is a precious metal streaming company which generates its revenue primarily from
the sale of precious metals (gold, silver and palladium) and cobalt. Wheaton Precious Metals Corp. (“Wheaton” or the
“Company”), which is the ultimate parent company of its consolidated group, is incorporated and domiciled in
Canada, and its principal place of business is at Suite 3500 - 1021 West Hastings Street, Vancouver, British
Columbia, V6E 0C3. The Company trades on the Toronto Stock Exchange (“TSX”), the New York Stock Exchange
(“NYSE”) and the London Stock Exchange (“LSE”) under the symbol WPM.
Including the agreements closed after December 31, 2023 (Notes 27 and 29), the Company has entered into 38 long-
term purchase agreements (30 of which are precious metal purchase agreements, or “PMPAs”, three of which are
early deposit PMPAs, and five of which are royalty agreements), with 32 different mining companies, for the purchase
of precious metals and cobalt relating to 18 mining assets which are currently operating, 23 which are at various
stages of development and 4 which have been placed in care and maintenance or have been closed, located in 16
countries. Pursuant to the PMPAs, Wheaton acquires metal production from the counterparties for an initial upfront
payment plus an additional cash payment for each ounce or pound delivered which is either a fixed price or fixed
percentage of the market price by contract, generally at or below the prevailing market price.
The consolidated financial statements of the Company for the year ended December 31, 2023 were authorized for
issue as of March 14, 2024 in accordance with a resolution of the Board of Directors.
2.
Basis of Presentation and Statement of Compliance
These consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) on a historical cost basis,
except for financial assets which are not held for the purpose of collecting contractual cash flows on specified dates
and derivative assets and derivative liabilities which have been measured at fair value as at the relevant balance
sheet date. The consolidated financial statements are presented in United States (“US”) dollars, which is the
Company’s functional currency, and all values are expressed in thousands unless otherwise noted. References to
“Cdn$” refer to Canadian dollars.
3.
Material Accounting Policy Information
3.1. New Accounting Standards Effective in 2023
Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting policies
The Company adopted Amendments to IAS 1 Presentation of Financial Statements related to the disclosure of
accounting policies. These amendments require entities to disclose their material accounting policy information rather
than significant accounting policy information. The amendments provide guidance on how an entity can identify
material accounting policy information and clarify that information may be material because of its nature, even if the
related amounts are immaterial. The adoption of these amendments did not have a material impact on the disclosure
of material accounting policies in these consolidated financial statements.
Amendments to IAS 12 - International Tax Reform — Pillar Two Model Rules
The Company adopted amendments to IAS 12 Income Taxes in response to the Organisation for Economic Co-
operation and Development's (OECD) Pillar Two model tax rules (also known as the Global Minimum Tax). The
amendments provide that an entity has to disclose separately its current tax expense related to Global Minimum Tax
as well as a mandatory temporary exception to the requirements regarding deferred tax assets and liabilities. The
amendments also provide that in a period where the Global Minimum Tax legislation is enacted or substantively
enacted, but not yet in effect, an entity discloses known or reasonably estimable information that helps users of
financial statements understand the entity’s exposure to Global Minimum Tax arising from that legislation. The
Company has applied the mandatory temporary exemption regarding deferred taxes in the current period. Refer to
Note 23 for further information on Global Minimum Tax.
3.2. Principles of Consolidation
The consolidated financial statements include the accounts of the Company and its 100% owned subsidiaries Wheaton
Precious Metals International Ltd., Silver Wheaton Luxembourg S.a.r.l. and Wheaton Precious Metals (Cayman) Co.
Subsidiaries are fully consolidated from the date on which the Company obtains a controlling interest. Control is defined
as an investor’s power over an investee with exposure, or rights, to variable returns from the investee and the ability to
affect the investor’s returns through its power over the investee. Subsidiaries are included in the consolidated financial
results of the Company from the effective date of acquisition up to the effective date of disposition or loss of control.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [12]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. Balances, transactions, income and expenses between the Company and its subsidiaries
are eliminated on consolidation.
3.3. Revenue Recognition
Revenue relating to the sale of precious metals is recognized when control of the precious metal is transferred to the
customer in an amount that reflects the consideration the Company expects to receive in exchange for those
products. In determining whether the Company has satisfied a performance obligation, it considers the indicators of
the transfer of control, which include, but are not limited to, whether: the Company has a present right to payment; the
customer has legal title to the asset; the Company has transferred physical possession of the asset to the customer;
and the customer has the significant risks and rewards of ownership of the asset.
Under certain PMPAs, precious metal is acquired from the mine operator in the form of precious metal credits, which
is then sold through bullion banks. Revenue from precious metal credit sales is recognized at the time of the sale of
such credits, which is also the date that control of the precious metal is transferred to the customer. The Company
will occasionally enter into forward contracts in relation to precious metal deliveries that it is highly confident will occur
within a given quarter. The sales price is fixed at the delivery date based on either the terms of these short-term
forward sales contracts or the spot price of the precious metal.
Under certain PMPAs, precious metal is acquired from the mine operator in concentrate form, which is then sold
under the terms of the concentrate sales contracts to third-party smelters or traders. Where the Company acquires
precious metals in concentrate form, final precious metal prices are set on a specified future quotational period (the
“Quotational Period”) pursuant to the concentrate sales contracts with third-party smelters, typically one to three
months after the shipment date, based on market prices for precious metals. The contracts, in general, provide for a
provisional payment based upon provisional assays and quoted precious metal prices. Final settlement is based upon
the average applicable price for the Quotational Period applied to the actual number of precious metal ounces
recovered calculated using confirmed smelter weights and settlement assays. Revenues and the associated cost of
sales are recorded on a gross basis under these contracts at the time title passes to the buyer, which is also the date
that control of the precious metal is transferred to the customer. The Company has concluded that the adjustments
relating to the final assay results for the quantity of concentrate sold are not significant and do not constrain the
recognition of revenue.
Title to but not control of cobalt is transferred to a third-party sales agent who then onsells the cobalt to Wheaton
approved third party customers. Revenue from the sale of cobalt is recognized when the third party customer and
sales terms have been agreed to between Wheaton and the third-party sales agent, which is also the date that
control of the cobalt is transferred to the third-party sales agent.
3.4. Financial Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions
of the instrument.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable
to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at
fair value through net earnings) are added to or deducted from the fair value of the financial assets or financial liabilities,
as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or
financial liabilities at fair value through net earnings are recognized immediately in net earnings.
3.5. Financial Assets
Financial assets are subsequently measured at either amortized cost or fair value, depending on the classification of the
financial assets.
Financial Assets at Fair Value Through Other Comprehensive Income (“FVTOCI”)
The Company’s long-term investments in common shares held are for long-term strategic purposes and not for trading.
Upon the adoption of IFRS 9, Financial Instruments (“IFRS 9”), the Company made an irrevocable election to designate
these long-term investments in common shares held as FVTOCI as it believes that this provides a more meaningful
presentation for long-term strategic investments, rather than reflecting changes in fair value in net earnings.
Long-term investments in common shares held are initially measured at fair value. Subsequently, they are measured at
fair value with gains and losses arising from changes in fair value recognized as a component of other comprehensive
income (“OCI”) and accumulated in the long-term investment revaluation reserve. The cumulative gain or loss will not be
reclassified to net earnings on disposal of these long-term investments but is reclassified to retained earnings.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [13]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Dividends on these long-term investments in common shares held are recognized as a component of net earnings in the
period they are received under the classification Other Income (Expense).
Financial Assets at Fair Value Through Net Earnings (“FVTNE”)
Cash and cash equivalents are stated at FVTNE.
Warrants held by the Company for long-term investment purposes are classified as FVTNE. These warrants are
measured at fair value at the end of each reporting period, with any gains or losses arising on remeasurement
recognized as a component of net earnings under the classification Other Income (Expense).
As discussed in Note 3.3, the Company’s provisionally priced sales contain an embedded derivative that is reflected at
fair value at the end of each reporting period. Fair value gains and losses related to the embedded derivative are
included in revenue in the period they occur.
Financial Assets at Amortized Cost
The previously outstanding non-revolving term loan, which requires regularly scheduled payments of interest and
principal, is carried at amortized cost. Other receivables are non-interest bearing and are stated at amortized cost, which
approximate fair values due to the short terms to maturity. Where necessary, the previously outstanding non-revolving
term loan and other receivables are reported net of allowances for uncollectable amounts.
Foreign Exchange Gains and Losses
The fair value of financial assets denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at the end of each reporting period. The foreign exchange component forms part of its fair value gain or
loss. Therefore,
•
•
•
For financial assets that are classified as FVTNE, the foreign exchange component is recognized as a
component of net earnings;
For financial assets that are classified as FVTOCI, the foreign exchange component is recognized as a
component of OCI; and
For financial assets that are denominated in a foreign currency and are measured at amortized cost at the end
of each reporting period, the foreign exchange gains and losses are determined based on the amortized cost of
the instruments and are recognized as a component of net earnings.
Derecognition of Financial Assets
The Company derecognizes a financial asset only when the contractual rights to cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another
entity. If the Company neither transfers nor retains substantially all the risks and rewards of ownership and continues to
control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for
amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Company continues to recognize the financial asset and also recognizes a collateralized borrowing
for the proceeds received.
On derecognition of a financial asset that is classified as FVTOCI, the cumulative gain or loss (net of tax) previously
accumulated in the long-term investment revaluation reserve is not reclassified to net earnings, but is reclassified to
retained earnings.
3.6. Financial Liabilities and Equity Instruments
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance
with the substance of the contractual arrangements and the definition of a financial liability and equity instrument. All
financial liabilities are subsequently measured at amortized cost using the effective interest method or at FVTNE,
depending on the classification of the instrument.
Equity Instruments
An equity instrument is a contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are recognized at the proceeds received less direct issue costs
(net of any current or deferred income tax recovery attributable to such costs).
Share Purchase Warrants Issued
Share purchase warrants issued with an exercise price denominated in the Company’s functional currency (US dollars)
are considered equity instruments with the consideration received reflected within shareholders’ equity under the
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [14]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
classification of share purchase warrants reserve. Upon exercise, the original consideration is reallocated from share
purchase warrants reserve to issued share capital along with the associated exercise price.
Bank Debt
Bank debt is initially measured at fair value, net of transaction costs, and is subsequently measured at amortized cost
using the effective interest method. The effective interest method is a method of calculating the amortized cost of a
financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments through the expected life of the financial liability, or (where
appropriate) a shorter period, to the net carrying amount on initial recognition.
Foreign Exchange Gains and Losses
The fair value of financial liabilities denominated in a foreign currency is determined in that foreign currency and
translated at the spot rate at the end of each reporting period. Therefore,
•
•
For financial liabilities that are denominated in a foreign currency and are measured at amortized cost at the
end of each reporting period, the foreign exchange gains and losses are determined based on the amortized
cost of the instruments and are recognized as a component of net earnings; and
For financial liabilities that are classified as FVTNE, the foreign exchange component forms part of the fair
value gains or losses and is recognized as a component of net earnings.
Derecognition of Financial Liabilities
The Company derecognizes financial liabilities when the Company’s obligations are discharged, cancelled or they
expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and
payable, including any non-cash assets transferred or liabilities assumed, is recognized as a component of net earnings.
3.7. Mineral Stream Interests
Agreements for which settlement is called for in gold, silver, palladium or cobalt, the amount of which is based on
production at the mines, are stated at cost less accumulated depletion and accumulated impairment charges, if any.
The cost of the asset is comprised of its purchase price, any closing costs directly attributable to acquiring the asset,
and, for qualifying assets, borrowing costs. The purchase price is the aggregate cash amount paid and the fair value of
any other non-cash consideration given to acquire the asset.
Depletion
The cost of these mineral stream interests is separately allocated to reserves, resources and exploration potential.
The value allocated to reserves is classified as depletable and is depleted on a unit-of-production basis over the
estimated recoverable proven and probable reserves at the mine corresponding to the specific agreement. The value
associated with resources and exploration potential is the value beyond proven and probable reserves at acquisition
and is classified as non-depletable until such time as it is transferred to the depletable category as a result of the
conversion of resources and/or exploration potential into reserves.
Asset Impairment
Management considers each PMPA to be a separate cash generating unit (“CGU”), which is the lowest level for which
cash inflows are largely independent of those of other assets. At the end of each reporting period, the Company
assesses each PMPA to determine whether any indication of impairment or impairment reversal exists. If such an
indication exists, the recoverable amount of the PMPA is estimated in order to determine the extent of the impairment or
impairment reversal (if any). The recoverable amount of each PMPA is the higher of fair value less cost of disposal
(“FVLCD”) and value in use (“VIU”). The FVLCD represents the amount that could be received from each PMPA in an
arm’s length transaction at the measurement date.
If the carrying amount of the PMPA exceeds its recoverable amount, the PMPA is considered impaired and an
impairment charge is reflected as a component of net earnings so as to reduce the carrying amount to its recoverable
value. A previously recognized impairment charge is reversed only if there has been an indicator of a potential
impairment reversal and the resulting assessment of the PMPA’s recoverable amount exceeds its carrying value. If this
is the case, the carrying amount of the PMPA is increased to its recoverable amount. The increased amount cannot
exceed the carrying amount that would have been determined, net of depletion, had no impairment charge been
recognized for the PMPA in prior years. Such reversal is reflected as a component of net earnings.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [15]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
3.8. Debt Issue Costs
Debt issue costs on non-revolving facilities are treated as an adjustment to the carrying amount of the original liability
and are amortized over the life of the new or modified liability. Debt issue costs on revolving facilities are recorded as an
asset under the classification Other long-term assets and are amortized over the life of the new or modified credit facility.
3.9. Stock Based Payment Transactions
The Company recognizes a stock based compensation expense for all share purchase options and restricted share
units (“RSUs”) awarded to employees, officers and directors based on the fair values of the share purchase options and
RSUs at the date of grant. The fair values of share purchase options and RSUs at the date of grant are expensed over
the vesting periods of the share purchase options and RSUs, respectively, with a corresponding increase to equity. The
fair value of share purchase options is determined using the Black-Scholes option pricing model with market related
inputs as of the date of grant. Share purchase options with graded vesting schedules are accounted for as separate
grants with different vesting periods and fair values. The fair value of RSUs is the market value of the underlying shares
at the date of grant. At the end of each reporting period, the Company re-assesses its estimates of the number of
awards that are expected to vest and recognizes the impact of any revisions to this estimate in the consolidated
statement of earnings.
The Company recognizes a stock based compensation expense for performance share units (“PSUs”) which are
awarded to eligible employees and are settled in cash. Compensation expense for the PSUs is recorded on a straight-
line basis over the three year vesting period. This estimated expense is reflected as a component of net earnings over
the vesting period of the PSUs with the related obligation recorded as a liability on the balance sheet. The amount of
compensation expense is adjusted at the end of each reporting period to reflect (i) the fair market value of common
shares; (ii) the number of PSUs anticipated to vest; and (iii) the anticipated performance factor.
3.10. Income Taxes
Income tax expense comprises current and deferred income tax. Current and deferred income taxes are recognized
as a component of net earnings except to the extent that it relates to items recognized directly in equity or as a
component of OCI.
Current income tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous
years.
Deferred income tax is recognized using the liability method on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred income tax
assets and liabilities are measured using tax rates and laws that have been enacted or substantively enacted at the
end of the reporting period and which are expected to apply when the related deferred income tax assets are realized
or the deferred income tax liabilities are settled.
Deferred income tax liabilities are generally recognized for all taxable temporary differences. Deferred income tax
assets are generally recognized for all deductible temporary differences and the carry forward of unused tax losses
and tax credits to the extent that it is probable that sufficient future taxable income, including income arising from
reversing taxable temporary differences and tax planning opportunities, will be available against which those
deductible temporary differences and the carry forward of unused tax losses and tax credits can be utilized.
Deferred income tax liabilities are recognized for taxable temporary differences arising on investments in subsidiaries
except where the reversal of the temporary difference can be controlled and it is probable that the difference will not
reverse in the foreseeable future. Deferred income tax assets arising from deductible temporary differences
associated with such investments are only recognized to the extent that it is probable that there will be sufficient
taxable income against which to utilize the benefits of the temporary differences and they are expected to reverse in
the foreseeable future.
The carrying amount of deferred income tax assets are reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable income, including income arising from reversing taxable
temporary differences and tax planning opportunities, will be available to allow all or part of the deferred income tax
assets to be recovered.
Deferred income tax assets and liabilities are not recognized for temporary differences arising from the initial
recognition (other than in a business combination) of assets and liabilities in a transaction which does not affect either
the accounting income or the taxable income. In addition, deferred income tax liabilities are not recognized if the
temporary difference arises from the initial recognition of goodwill.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [16]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
3.11. Earnings Per Share
Earnings per share calculations are based on the weighted average number of common shares and common share
equivalents issued and outstanding during the year. Diluted earnings per share is calculated using the treasury
method which requires the calculation of diluted earnings per share by assuming that outstanding share purchase
options and warrants with an exercise price that exceeds the average market price of the common shares for the
period are exercised, and the proceeds are used to repurchase shares of the Company at the average market price
of the common shares for the period.
3.12. Provisions
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event,
it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the
amount required to settle the obligation.
The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation
at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present
value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the
receivable can be measured reliably.
3.13. Post-Employment Benefit Costs
The Company provides a Supplemental Employee Retirement Plan (“SERP) to all qualified employees. The SERP is an
unregistered and unfunded defined contribution plan under which the Company makes a fixed notional contribution to an
account maintained by the Company. Any benefits under the SERP have a vesting period of five years from the first date
of employment. The notional contributions are recognized as employee benefit expense in earnings in the periods during
which services are rendered by employees.
3.14. Future Changes to Accounting Policies
The IASB has issued the following new or amended standards:
Amendment to IAS 1- Presentation of Financial statements
The amendments to IAS 1, clarify the presentation of liabilities. The classification of liabilities as current or non-
current is based on contractual rights that are in existence at the end of the reporting period and is affected by
expectations about whether an entity will exercise its right to defer settlement. A liability not due over the next twelve
months is classified as non-current even if management intends or expects to settle the liability within twelve months.
The amendment also introduces a definition of ‘settlement’ to make clear that settlement refers to the transfer of
cash, equity instruments, other assets, or services to the counterparty. The amendment issued in October 2022 also
clarifies how conditions with which an entity must comply within twelve months after the reporting period affect the
classification of a liability. Covenants to be complied with after the reporting date do not affect the classification of
debt as current or non-current at the reporting date. The amendments are effective for annual reporting periods
beginning on or after January 1, 2024. The implementation of this amendment is not expected to have a material
impact on the Company.
4.
Key Sources of Estimation Uncertainty and Critical Accounting Judgments
The preparation of the Company’s consolidated financial statements in conformity with IFRS requires management to
make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities and contingent
liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses during
the reporting period. Estimates and assumptions are continuously evaluated and are based on management’s
experience and other factors, including expectations of future events that are believed to be reasonable under the
circumstances. However, actual outcomes can differ from these estimates.
Information about significant areas of estimation uncertainty and judgments made by management in preparing the
consolidated financial statements are described below.
Key Sources of Estimation Uncertainty
4.1. Attributable Reserve, Resource and Exploration Potential Estimates
Mineral stream interests are significant assets of the Company, with a carrying value of $6.2 billion at December 31,
2023, inclusive of early deposit agreements. This amount represents the capitalized expenditures related to the
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [17]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
acquisition of the mineral stream interests, net of accumulated depletion and accumulated impairment charges, if any.
The Company estimates the reserves, resources and exploration potential relating to each agreement. Reserves are
estimates of the amount of metals contained in ore that can be economically and legally extracted from the mining
properties in respect of which the Company has PMPAs. Resources are estimates of the amount of metals contained in
mineralized material for which there is a reasonable prospect for economic extraction from the mining properties in
respect of which the Company has PMPAs. Exploration potential represents an estimate of additional reserves and
resources which may be discovered through the mine operator’s exploration program. The Company adjusts its
estimates of reserves, resources (where applicable) and exploration potential (where applicable) to reflect the
Company’s percentage entitlement to metals produced from such mines. The Company compiles its estimates of its
reserves and resources based on information supplied by appropriately qualified persons relating to the geological data
on the size, density and grade of the ore body, and require complex geological and geostatistical judgments to interpret
the data. The estimation of recoverable reserves and resources is based upon factors such as estimates of foreign
exchange rates, commodity prices, future capital requirements, and production costs along with geological assumptions
and judgments made in estimating the size and grade of the ore body. The Company estimates exploration potential
based on assumptions surrounding the ore body continuity which requires judgment as to future success of any
exploration programs undertaken by the mine operator. Changes in the reserve estimates, resource estimates or
exploration potential estimates may impact upon the carrying value of the Company’s mineral stream interests and
depletion charges.
4.2. Depletion
As described in Note 3.7, the Company’s mineral stream interests are separately allocated to reserves, resources and
exploration potential. The value allocated to reserves is classified as depletable and is depleted on a unit-of-production
basis over the estimated recoverable proven and probable reserves at the mine corresponding to the specific
agreement. The value associated with resources and exploration potential is the value beyond proven and probable
reserves at acquisition and is classified as non-depletable until such time as it is transferred to the depletable category
as a result of the conversion of resources and/or exploration potential into reserves. To make this allocation, the
Company estimates the recoverable reserves, resources and exploration potential at each mining operation. These
calculations require the use of estimates and assumptions, including the amount of contained metals, recovery rates and
payable rates. Changes to these assumptions may impact the estimated recoverable reserves, resources or exploration
potential which could directly impact the depletion rates used. Changes to depletion rates are accounted for
prospectively.
Impairment of Assets
4.3.
As more fully described in Note 3.7, the Company assesses each PMPA at the end of every reporting period to
determine whether any indication of impairment or impairment reversal exists. If such an indication exists, the
recoverable amount of the PMPA is estimated in order to determine the extent of the impairment or impairment reversal
(if any). The calculation of the recoverable amount requires the use of estimates and assumptions such as long-term
commodity prices, discount rates, recoverable ounces of attributable metals, and operating performance.
The price of precious metals and cobalt has been volatile over the past several years. The Company monitors spot and
forward metal prices and if necessary re-evaluates the long-term metal price assumptions used for impairment testing.
Should price levels decline or increase in the future, either for an extended period of time or due to known macro
economic changes, the Company may need to re-evaluate the long-term metal price assumptions used for impairment
testing. A significant decrease in long-term metal price assumptions may be an indication of potential impairment, while
a significant increase in long-term metal price assumptions may be an indication of potential impairment reversal. In
addition, the Company also monitors the estimated recoverable reserves and resources as well as operational
developments and other matters at the mining properties in respect of which the Company has PMPAs for indications of
impairment or impairment reversal. Should the Company conclude that it has an indication of impairment or impairment
reversal at any balance sheet date, the Company is required to perform an impairment assessment.
4.4. Valuation of Stock Based Compensation
As more fully described in Note 3.9, the Company has various forms of stock based compensation, including share
purchase options, restricted share units (“RSUs”) and performance share units (“PSUs”). The calculation of the fair value
of share purchase options, RSUs and PSUs issued requires the use of estimates as more fully described in Notes 19.2,
19.3, and 20.1, respectively.
Critical Accounting Judgments
4.5. Contingencies
Due to the size, complexity and nature of the Company’s operations, various legal and tax matters are outstanding
from time to time, including those matters described in Note 27. By their nature, contingencies will only be resolved
when one or more future events occur or fail to occur. The assessment of contingencies inherently involves the
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [18]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
exercise of significant judgment of the outcome of future events. If the Company is unable to resolve any of these
matters favorably, there may be a material adverse impact on the Company’s financial performance, cash flows or
results of operations. In the event that management’s judgement of the future resolution of these matters changes,
the Company will recognize the effects of the changes in its consolidated financial statements in the appropriate
period relative to when such changes occur.
Income Taxes
4.6.
The interpretation and application of existing tax laws, regulations or rules in Canada, the Cayman Islands, Barbados,
Luxembourg, the Netherlands or any of the countries in which the Company’s subsidiaries or the mining operations are
located or to which deliveries of precious metals, precious metal credits or cobalt are made requires the use of
judgment. The likelihood that tax positions taken will be sustained is assessed based on facts and circumstances of the
relevant tax position considering all available evidence. Differing interpretation of these laws, regulations or rules could
result in an increase in the Company’s taxes, or other governmental charges, duties or impositions. Refer to Note 27 for
more information.
In assessing the probability of realizing deferred income tax assets, the Company makes estimates related to
expectations of future taxable income, including the expected timing of reversals of existing temporary differences. Such
estimates are based on forecasted cash flows from operations which require the use of estimates and assumptions such
as long-term commodity prices and recoverable metal ounces. The amount of deferred income tax assets recognized on
the balance sheet could be reduced if the actual taxable income differs significantly from expected taxable income. The
Company reassesses its deferred income tax assets at the end of each reporting period.
5. Financial Instruments
5.1. Capital Risk Management
The Company manages its capital to ensure that it will be able to continue as a going concern and satisfy its
outstanding funding commitments while maintaining a high degree of financial flexibility to consummate new
streaming investments.
The capital structure of the Company consists of debt (Note 17) and equity attributable to common shareholders,
comprising of issued capital (Note 18), accumulated reserves (Note 19) and retained earnings.
The Company is not subject to any externally imposed capital requirements with the exception of complying with the
minimum tangible net worth covenant under the credit agreement governing bank debt (Note 17).
The Company is in compliance with the debt covenants at December 31, 2023, as described in Note 17.1.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [19]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
5.2. Categories of Financial Assets and Liabilities
The refundable deposit on the 777 PMPA, which requires a single principal payment at maturity, is carried at amortized
cost, which approximates its fair value. Trade receivables from sales of cobalt and other receivables are non-interest
bearing and are stated at amortized cost, which approximate fair values due to the short terms to maturity. Where
necessary, the other receivables are reported net of allowances for uncollectable amounts. All other financial assets are
reported at fair value. Fair value adjustments on financial assets are reflected as a component of net earnings with the
exception of fair value adjustments associated with the Company’s long-term investments in common shares held. As
these long-term investments are held for strategic purposes and not for trading, the Company has made a one time,
irrevocable election to reflect the fair value adjustments associated with these investments as a component of OCI.
Financial liabilities are reported at amortized cost using the effective interest method, which approximate fair values
due to the short terms to maturity. The following table summarizes the classification of the Company’s financial assets
and liabilities:
(in thousands)
Financial assets
Financial assets mandatorily measured at FVTNE 1
Note
December 31 December 31
2022
2023
Cash and cash equivalents
22
$
546,527 $
696,089
Trade receivables from provisional concentrate sales, net of fair
value adjustment
Long-term investments - warrants held
Investments in equity instruments designated at FVTOCI 1
Long-term investments - common shares held
Financial assets measured at amortized cost
Trade receivables from sales of cobalt
Refundable deposit - 777 PMPA
Other accounts receivable
6, 11
16
11
25
5,360
652
2,516
560
246,026
255,535
3,975
8,717
743
6,642
8,073
1,029
Total financial assets
$
812,000 $
970,444
Financial liabilities
Financial liabilities at amortized cost
Accounts payable and accrued liabilities
Lease liabilities
Total financial liabilities
17.2
$
$
13,458 $
6,229
12,570
1,970
19,687 $
14,540
1)
FVTNE refers to Fair Value Through Net Earnings, FVTOCI refers to Fair Value Through Other Comprehensive Income
5.3. Credit Risk
Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by
failing to discharge its obligations. To mitigate exposure to credit risk on financial assets, the Company has
established policies to limit the concentration of credit risk, to ensure counterparties demonstrate minimum
acceptable credit worthiness and to ensure liquidity of available funds.
The Company closely monitors its financial assets and does not have any significant concentration of credit risk. The
Company invests surplus cash in short-term, high credit quality, money market instruments. Additionally, the
outstanding accounts receivable from the sales of cobalt are supported by a $3 million letter of credit. Finally,
counterparties used to sell precious metals are all large, international organizations with strong credit ratings and the
balance of trade receivables on these sales in the ordinary course of business is not significant. Therefore, credit risk
associated with trade receivables at December 31, 2023 is considered to be negligible.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [20]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
The Company’s maximum exposure to credit risk related to its financial assets is as follows:
(in thousands)
Cash and cash equivalents
Trade receivables from provisional concentrate sales, net of fair value
adjustment
Trade receivables from sales of cobalt
Refundable Deposit - 777 PMPA
Other accounts receivables
December 31 December 31
Note
22
$
2023
546,527 $
2022
696,089
11
11
25
11
5,360
3,975
8,717
743
2,516
6,642
8,073
1,029
Maximum exposure to credit risk related to financial assets
$
565,322 $
714,349
5.4. Liquidity Risk
The Company has in place a rigorous planning and budgeting process to help determine the funds required to support
the Company’s normal operating requirements on an ongoing basis and its expansionary plans. The Company ensures
that there are sufficient committed loan facilities to meet its short-term business requirements, taking into account its
anticipated cash flows from operations and its holdings of cash and cash equivalents. As at December 31, 2023, the
Company had cash and cash equivalents of $547 million (December 31, 2022 - $696 million) and working capital of
$541 million (December 31, 2022 - $689 million).
The Company holds equity investments of several companies (Note 16) with a combined market value at December 31,
2023 of $247 million (December 31, 2022 - $256 million). The daily exchange traded volume of these shares, including
the shares underlying the warrants, may not be sufficient for the Company to liquidate its position in a short period of
time without potentially affecting the market value of the shares. These shares and warrants are held for strategic
purposes and are considered long-term investments and therefore, as part of the Company’s planning, budgeting and
liquidity analysis process, these investments are not relied upon to provide operational liquidity.
The following table summarizes the timing associated with the Company’s remaining contractual payments relating to its
financial liabilities and performance share units liability. The table reflects the undiscounted cash flows of financial
liabilities based on the earliest date on which the Company can be required to pay (assuming that the Company is in
compliance with all of its obligations). The table includes both interest and principal cash flows, where applicable.
As at December 31, 2023
(in thousands)
Accounts payable and accrued
liabilities
Performance share units 1
Total
2024
2025 - 2026
2027 - 2028
After 2028
Total
$
$
13,458 $
12,013
-
9,113
$
25,471
$
9,113 $
$
-
-
- $
- $
-
13,458
21,126
- $
34,584
1) See Note 20.1 for estimated value per PSU at maturity and anticipated performance factor at maturity.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [21]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
5.5. Currency Risk
The Company undertakes certain transactions denominated in Canadian dollars, including certain operating expenses
and the acquisition of strategic long-term investments. As a result, the Company is exposed to fluctuations in the value
of the Canadian dollar relative to the United States dollar. The carrying amounts of the Company’s Canadian dollar
denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:
(in thousands)
Monetary assets
Cash and cash equivalents
Accounts receivable
Long-term investments - common shares held
Long-term investments - warrants held
Other long-term assets
December 31
2023
December 31
2022
$
$
1,729
112
77,770
652
7,898
311
739
60,443
560
3,308
Total Canadian dollar denominated monetary assets
$
88,161
$
65,361
Monetary liabilities
Accounts payable and accrued liabilities
Performance share units
Lease liability
Pension liability
$
$
9,080
17,303
5,892
4,624
8,180
16,971
1,315
3,524
Total Canadian dollar denominated monetary liabilities
$
36,899
$
29,990
The following tables detail the Company’s sensitivity to a 10% increase or decrease in the Canadian dollar relative to the
United States dollar, representing the sensitivity used when reporting foreign currency risk internally to key management
personnel and represents management’s assessment of the reasonably possible change in exchange rates.
(in thousands)
Increase (decrease) in net earnings
Increase (decrease) in other comprehensive income
Increase (decrease) in total comprehensive income
(in thousands)
Increase (decrease) in net earnings
Increase (decrease) in other comprehensive income
Increase (decrease) in total comprehensive income
As at December 31, 2023
Change in Canadian Dollar
10%
Increase
10%
Decrease
$
(2,651) $
7,777
2,651
(7,777)
$
5,126 $
(5,126)
As at December 31, 2022
Change in Canadian Dollar
10%
Increase
10%
Decrease
$
(2,507) $
6,044
2,507
(6,044)
$
3,537 $
(3,537)
Interest Rate Risk
5.6.
The Company is exposed to interest rate risk on its outstanding borrowings and short-term investments. Presently,
the Company has no outstanding borrowings, and historically all borrowings have been at floating interest rates. The
Company monitors its exposure to interest rates and has not entered into any derivative contracts to manage this
risk. During the years ended December 31, 2023 and 2022, the weighted average effective interest rate paid by the
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [22]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Company on its outstanding borrowings was Nil, while the weighted average interest rate earned on its cash deposits
in interest bearing accounts was 4.8% and 1.9%, respectively.
During the years ended December 31, 2023 and 2022, a fluctuation in interest rates of 100 basis points (1 percent)
would not have impacted the amount of interest expensed by the Company.
During the years ended December 31, 2023 and 2022, a fluctuation in interest rates of 100 basis points (1 percent)
would have impacted the amount of interest earned by approximately $7 million and $3 million, respectively.
5.7. Other Price Risk
The Company is exposed to equity price risk as a result of holding long-term investments in common shares of various
companies. The Company does not actively trade these investments.
If equity prices had been 10% higher or lower at the respective balance sheet date, other comprehensive income for the
years ended December 31, 2023 and 2022 would have increased/decreased by approximately $25 million for both years
respectively, as a result of changes in the fair value of common shares held.
5.8. Fair Value Estimation
The Company classifies its fair value measurements within a fair value hierarchy, which reflects the significance of the
inputs used in making the measurements as defined in IFRS 13 – Fair Value Measurements (“IFRS 13”).
Level 1 - Unadjusted quoted prices at the measurement date for identical assets or liabilities in active markets.
Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and
liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or
other inputs that are observable or can be corroborated by observable market data.
Level 3 - Unobservable inputs which are supported by little or no market activity.
The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair
value hierarchy. As required by IFRS 13, assets and liabilities are classified in their entirety based on the lowest level of
input that is significant to the fair value measurement.
(in thousands)
Note
Total
Level 1
Level 2
Level 3
Cash and cash equivalents
22 $ 546,527 $
546,527 $
- $
Trade receivables from provisional concentrate
sales, net of fair value adjustment
Long-term investments - common shares held
Long-term investments - warrants held
11
16
16
5,360
246,026
652
-
246,026
-
5,360
-
652
$ 798,565 $
792,553 $
6,012 $
-
-
-
-
-
December 31, 2023
December 31, 2022
(in thousands)
Note
Total
Level 1
Level 2
Level 3
Cash and cash equivalents
22 $ 696,089 $
696,089 $
- $
Trade receivables from provisional concentrate
sales, net of fair value adjustment
Long-term investments - common shares held
Long-term investments - warrants held
11
16
16
2,516
255,535
560
-
255,535
-
2,516
-
560
$ 954,700 $
951,624 $
3,076 $
-
-
-
-
-
When balances are outstanding, the Company’s bank debt (Note 17.1) is reported at amortized cost using the
effective interest method. The carrying value of the bank debt approximates its fair value.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [23]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
5.8.1. Valuation Techniques for Level 2 Assets
Accounts Receivable Arising from Sales of Metal Concentrates
The Company’s trade receivables from provisional concentrate sales are valued based on forward prices of gold and
silver to the expected date of final settlement (Note 6). As such, these receivables and/or liabilities are classified
within Level 2 of the fair value hierarchy.
Long-Term Investments in Warrants Held
The fair value of the Company’s long-term investments in warrants held that are not traded in an active market are
determined using a Black-Scholes model based on assumptions including risk free interest rate, expected dividend
yield, expected volatility and expected warrant life which are supported by observable current market conditions and
as such are classified within Level 2 of the fair value hierarchy. The use of reasonably possible alternative
assumptions would not significantly affect the Company’s results.
6.
Revenue
(in thousands)
Sales
Gold credit sales
Silver
Silver credit sales
Concentrate sales
Total silver sales
Palladium credit sales
Cobalt sales
Years Ended December 31
2023
2022
$
$
$
$
$
644,131
63% $
529,698
50%
257,041
81,553
338,594
18,496
14,824
25% $
9%
34% $
2% $
1% $
400,372
70,631
471,003
32,160
32,192
38%
6%
44%
3%
3%
Total sales revenue
$ 1,016,045 100% $ 1,065,053 100%
Gold, Silver and Palladium Credit Sales
Under certain PMPAs, precious metal is acquired from the mine operator in the form of precious metal credits, which
is then sold through bullion banks. Revenue from precious metal credit sales is recognized at the time of the sale of
such credits, which is also the date that control of the precious metal is transferred to the customer.
During the year ended December 31, 2023, sales to four financial institutions accounted for 34%, 20%, 12% and 11%
of the Company’s revenue as compared to sales to three financial institutions accounted for 29%, 24% and 20% of
the Company’s revenue during the comparable period of the previous year. The Company would not be materially
affected should any of these financial institutions cease to buy precious metal credits from the Company as these
sales would be redirected to alternate financial institutions.
Concentrate Sales
Under certain PMPAs, gold and/or silver is acquired from the mine operator in concentrate form, which is then sold
under the terms of the concentrate sales contracts to third-party smelters or traders. Where the Company acquires
precious metal in concentrate form, final precious metal prices are set on a specified future quotational period (the
“Quotational Period”) pursuant to the concentrate sales contracts with third-party smelters, typically one to three
months after the shipment date, based on market prices for precious metal. The contracts, in general, provide for a
provisional payment based upon provisional assays and quoted gold and silver prices. Final settlement is based upon
the average applicable price for the Quotational Period applied to the actual number of precious metal ounces
recovered calculated using confirmed smelter weights and settlement assays. Revenues and the associated cost of
sales are recorded on a gross basis under these contracts at the time title passes to the customer, which is also the
date that control of the precious metal is transferred to the customer. The Company has concluded that the
adjustments relating to the final assay results for the quantity of concentrate sold are not significant and do not
constrain the recognition of revenue.
Cobalt Sales
Cobalt is sold to a third-party sales agent who generally on-sells the cobalt to third party customers approved by
Wheaton. Revenue from the sale of cobalt is recognized once the third-party customer and sales terms have been
agreed to between Wheaton and the third-party sales agent, which is also the date that control of the cobalt is
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [24]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
transferred to the third-party sales agent. Should the sales agent retain the cobalt for their own use, revenue is
recognized once the sales terms have been agreed to between Wheaton and the third-party sales agent and the
product has been delivered, which is also the date that control of the cobalt is transferred to the third-party sales
agent.
7.
General and Administrative
(in thousands)
Corporate
Salaries and benefits
Depreciation
Professional fees
Business travel
Director fees
Business taxes
Audit and regulatory
Insurance
Other
General and administrative - corporate
Subsidiaries
Salaries and benefits
Depreciation
Professional fees
Business travel
Director fees
Business taxes
Insurance
Other
General and administrative - subsidiaries
Consolidated general and administrative
8.
Share Based Compensation
(in thousands)
Equity settled share based compensation 1
Stock options
RSUs
Cash settled share based compensation
PSUs
Total share based compensation
1) Equity settled stock based compensation is a non-cash expense.
Years Ended December 31
2023
2022
$
$
$
$
$
14,127 $
1,026
3,346
1,141
1,095
798
3,211
2,052
3,964
30,760 $
4,287 $
466
607
346
199
238
46
1,216
7,405 $
14,895
1,154
1,680
950
1,109
840
2,845
2,135
3,469
29,077
4,327
434
539
242
200
276
44
692
6,754
38,165 $
35,831
Years Ended December 31
Note
2023
2022
19.2 $
19.3
2,607 $
3,831
2,366
3,480
20.1 $
16,306 $
14,214
$
22,744 $
20,060
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [25]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
9.
Donations and Community Investments
(in thousands)
Local donations and community investments 1
Partner donations and community investments 2
COVID-19 and community support and response fund 3
Years Ended December 31
$
2023
2,649 $
4,612
-
2022
2,333
3,798
165
Total donations and community investments
$
7,261 $
6,296
1) The Local Community Investment Program supports organizations in Vancouver and the Cayman Islands, where Wheaton’s offices are located.
2) The Partner Community Investment Program supports the communities influenced by Mining Partners' operations.
3) Committed funding under this program has been fully disbursed.
10. Other Income (Expense)
(in thousands)
Interest income
Dividends received from equity investments designated as FVTOCI ¹
relating to investments held at the end of the period
Foreign exchange gain (loss)
Net gain (loss) arising on financial assets mandatorily measured at
FVTNE ²
Gain (loss) on fair value adjustment of share purchase warrants held
Other
Total other income (expense)
1) FVTOCI refers to Fair Value through Other Comprehensive Income
2) FVTNE refers to Fair Value Through Net Earnings
11. Accounts Receivable
Years Ended December 31
Note
$
2023
34,862 $
2022
6,321
2,316
51
453
890
(31)
(2,927)
(1,033)
818
$
34,271 $
7,449
(in thousands)
Trade receivables from provisional concentrate sales, net of fair value
adjustment
Trade receivables from sales of cobalt
Other accounts receivable
Total accounts receivable
December 31 December 31
Note
2023
2022
$
6
6
5,360 $
3,975
743
2,516
6,642
1,029
$
10,078 $
10,187
The trade receivables from sales of cobalt generally have extended payment terms with outstanding amounts being
supported by a $3 million letter of credit.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [26]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
12. Cobalt Inventory
The Company carries its cobalt inventory, which is recorded using weighted average costing, at the lower of cost or
net realizable value. A summary of the inventory on hand at December 31, 2023 and December 31, 2022 is as
follows:
(in thousands)
Cobalt Inventory, carried at:
Cost
Net realizable value
Total cobalt inventory
December 31 December 31
2023
2022
$
$
1,372 $
-
-
10,530
1,372 $
10,530
At December 31, 2022, the Company recorded an inventory write down of $2 million. This inventory was fully sold
during 2023, and no further inventory write down was required during 2023.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [27]
13. Mineral Stream Interests
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Year Ended December 31, 2023
Cost
Accumulated Depletion & Impairment 1
Balance
Jan 1, 2023
Additions Disposal
Balance
Dec 31, 2023
Balance
Jan 1, 2023
Depletion
Balance
Dec 31, 2023
Carrying
Amount
Dec 31, 2023
$ 3,059,876 $ 370,035 $ - $ 3,429,911 $ (676,614) $ (71,878) $ (748,492) $ 2,681,419
623,864
140,058
220,429
239,352
545,391
- - 623,864 (340,448)
- - 140,058 (44,475)
- - 220,429 (64,564)
- - 239,352 (23,500)
656,187 (51,248)
(41,373)
152,169
(20,931)
(15,318)
(11,143)
(4,383)
(1,250)
(361,379)
262,485
(59,793)
80,265
(75,707)
144,722
(27,883)
211,469
(52,498)
603,689
$ 4,828,970 $ 522,204 $ (41,373) $ 5,309,801 $ (1,200,849) $ (124,903) $ (1,325,752) $ 3,984,049
(in thousands)
Gold interests
Salobo
Sudbury 2
Constancia
San Dimas
Stillwater 3
Other 4
Silver interests
Peñasquito
$ 524,626 $
- $ - 524,626 $ (230,952) $ (17,442) $ (248,394) $ 276,232
Antamina
Constancia
Other 5
900,343
302,948
1,018,199
- - 900,343 (354,975)
- - 302,948 (110,001)
- 1,159,563 (565,103)
141,364
(25,838)
(13,364)
(12,347)
(380,813)
519,530
(123,365)
179,583
(577,450)
582,113
$ 2,746,116 $ 141,364 $ - $ 2,887,480 $ (1,261,031) $ (68,991) $ (1,330,022) $ 1,557,458
Palladium interests
Stillwater 3
$ 263,721 $
- $ - $ 263,721 $ (36,909) $ (6,145) $ (43,054) $ 220,667
Platinum interests
Marathon
$ 9,428 $ 23 $ - $ 9,451 $ - $ - $ - $ 9,451
Cobalt interests
Voisey's Bay 6 $ 393,422 $
- $ - $ 393,422 $ (35,849) $ (6,757) $ (42,606) $ 350,816
$ 8,241,657 $ 663,591 $ (41,373) $ 8,863,875 $ (2,534,638) $ (206,796) $ (2,741,434) $ 6,122,441
1) Includes cumulative impairment charges to December 31, 2023 as follows: Pascua-Lama silver interest - $338 million; and Sudbury gold interest - $120 million.
2) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) Comprised of the Minto, Copper World Complex, Marmato, Santo Domingo, Fenix, Blackwater, Marathon, Goose, Curipamba, Cangrejos and Curraghinalt gold interests.
The additions to other gold interests includes: Blackwater - $40 million; Goose - $63 million; Cangrejos - $29 million; and Curraghinalt - $20 million.
5) Comprised of the Los Filos, Zinkgruvan, Stratoni, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex, Marmato, Cozamin, Blackwater,
Curipamba and Mineral Park silver interests. The additions to other silver interests includes: Blackwater - $141 million.
6) When cobalt is delivered to the Company it is recorded as inventory until such time as it is sold and the cost of the cobalt is recorded as a cost of sale. Depletion in this table
for the Voisey’s Bay cobalt interest is inclusive of depletion relating to inventory.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [28]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Cost
Additions
Balance
Jan 1, 2022
Balance
Dec 31,
2022
Balance
(Reductions) Disposal
Jan 1, 2022 Depletion Disposal
Impairment
(Charge)
Reversal
Balance
Dec 31,
2022
Carrying
Amount
Dec 31,
2022
Year Ended December 31, 2022
Accumulated Depletion & Impairment 1
(in thousands)
Gold interests
Salobo
$ 3,059,876 $
Sudbury 2
Constancia
San Dimas
Stillwater 3
Other 4
623,864
140,058
220,429
239,352
761,334
- $
-
-
-
-
- $ 3,059,876 $ (621,937) $ (54,677) $
- $
- $ (676,614) $ 2,383,262
- 623,864 (316,695)
- 140,058
(36,269)
- 220,429
(53,706)
- 239,352
(19,567)
(23,753)
(8,206)
(10,858)
(3,933)
-
-
-
-
- (340,448) 283,416
-
-
-
(44,475)
95,583
(64,564) 155,865
(23,500) 215,852
138,515 (354,458) 545,391 (396,542)
(1,252)
348,265
(1,719)
(51,248) 494,143
$ 5,044,913 $ 138,515 $ (354,458) $ 4,828,970 $ (1,444,716) $ (102,679) $ 348,265 $ (1,719) $ (1,200,849) $ 3,628,121
Silver interests
Peñasquito
$ 524,626 $
Antamina
Constancia
Other 5
900,343
302,948
1,438,974
- $
-
-
- $ 524,626 $ (202,608) $ (28,344) $
- $
- $ (230,952) $ 293,674
- 900,343 (320,291)
- 302,948
(97,064)
(34,684)
(12,937)
(36,640)
-
-
- (354,975) 545,368
- (110,001) 192,947
306,986
10,330 (565,103) 453,096
4,519 (425,294) 1,018,199 (845,779)
$ 3,166,891 $
4,519 $ (425,294) $ 2,746,116 $ (1,465,742) $ (112,605) $ 306,986 $ 10,330 $ (1,261,031) $ 1,485,085
Palladium interests
Stillwater 3
$ 263,721 $
- $
- $ 263,721 $
(30,891) $
(6,018) $
- $
- $
(36,909) $ 226,812
Platinum interests
Marathon
$
- $
9,428 $
- $
9,428 $
- $
- $
- $
- $
- $
9,428
Cobalt interests
Voisey's Bay 6 $ 393,422 $
- $
- $ 393,422 $
(21,801) $ (14,048) $
- $
- $
(35,849) $ 357,573
$ 8,868,947 $ 152,462 $ (779,752) $ 8,241,657 $ (2,963,150) $ (235,350) $ 655,251 $ 8,611 $ (2,534,638) $ 5,707,019
1) Includes cumulative impairment charges to December 31, 2022 as follows: Pascua-Lama silver interest - $338 million; and Sudbury gold interest - $120 million.
2) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
3) Comprised of the Stillwater and East Boulder gold and palladium interests.
4) Comprised of the Minto, Copper World Complex, 777, Marmato, Santo Domingo, Fenix, Blackwater, Marathon, Goose and Curipamba gold interests. As the 777 mine has
been permanently closed, the 777 PMPA has been reflected as a disposition, with the carrying value transferred to a long-term receivable. The additions to other gold
interests includes: Marmato - $18 million; Fenix - $25 million; Marathon - $22 million; Curipamba - $10 million; Goose - $63 million.
5) Comprised of the Los Filos, Zinkgruvan, Yauliyacu, Stratoni, Keno Hill, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex, 777,
Marmato, Cozamin, Blackwater and Curipamba silver interests. The Keno Hill PMPA and the Yauliyacu PMPA were terminated on September 7, 2022 and December 14,
2022, respectively. As the 777 mine has been permanently closed, the 777 PMPA has been reflected as a disposition, with the carrying value transferred to a long-term
receivable. The additions to other silver interests includes: Marmato - $1 million; and Curipamba - $3 million.
6) When cobalt is delivered to the Company it is recorded as inventory until such time as it is sold and the cost of the cobalt is recorded as a cost of sale. Depletion in this table
for the Voisey’s Bay cobalt interest is inclusive of depletion relating to inventory.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [29]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
The value allocated to reserves is classified as depletable upon a mining operation achieving first production and is
depleted on a unit-of-production basis over the estimated recoverable proven and probable reserves at the mine. The
value associated with resources and exploration potential is allocated at acquisition and is classified as non-
depletable until such time as it is transferred to the depletable category, generally as a result of the conversion of
resources or exploration potential into reserves.
December 31, 2023
December 31, 2022
Depletable
Non-
Depletable
Total
Depletable
Non-
Depletable
Total
$ 2,303,719 $
377,700 $ 2,681,419 $ 1,990,789 $
392,473 $ 2,383,262
218,467
74,758
55,428
186,668
44,018
5,507
89,294
24,801
17,999
585,690
262,485
239,002
80,265
144,722
211,469
603,689
89,097
51,459
191,051
19,248
44,414
6,486
104,406
24,801
474,895
283,416
95,583
155,865
215,852
494,143
$ 2,857,039 $ 1,127,010 $ 3,984,049 $ 2,580,646 $ 1,047,475 $ 3,628,121
$
202,528 $
172,512
73,704 $
347,018
276,232 $
519,530
219,969 $
198,294
73,705 $
347,074
169,527
130,462
10,056
451,651
179,583
582,113
182,171
139,424
10,776
313,672
293,674
545,368
192,947
453,096
$
675,029 $
882,429 $ 1,557,458 $
739,858 $
745,227 $ 1,485,085
$
211,959 $
8,708 $
220,667 $
218,104 $
8,708 $
226,812
$
- $
9,451 $
9,451 $
- $
9,428 $
9,428
(in thousands)
Gold interests
Salobo
Sudbury 1
Constancia
San Dimas
Stillwater 2
Other 3
Silver interests
Peñasquito
Antamina
Constancia
Other 4
Palladium interests
Stillwater 2
Platinum interests
Marathon
Cobalt interests
Voisey's Bay
$
321,454 $
29,362 $
350,816 $
316,749 $
40,824 $
357,573
$ 4,065,481 $ 2,056,960 $ 6,122,441 $ 3,855,357 $ 1,851,662 $ 5,707,019
1) Comprised of the Coleman, Copper Cliff, Garson, Stobie, Creighton, Totten and Victor gold interests.
2) Comprised of the Stillwater and East Boulder gold and palladium interests.
3) Comprised of the Minto, Copper World Complex, Marmato, Santo Domingo, Fenix, Blackwater, Marathon, Goose, Curipamba, Cangrejos and Curraghinalt gold interests.
4) Comprised of the Los Filos, Zinkgruvan, Stratoni, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex, Marmato, Cozamin, Blackwater,
Curipamba and Mineral Park silver interests.
Acquisition of Curipamba PMPA
On January 17, 2022, the Company entered into a PMPA (the “Curipamba PMPA”) with Adventus Mining Corporation
(“Adventus”) in respect of gold and silver production from the Curipamba Project located in Ecuador (the “Curipamba
Project”). Under the Curipamba PMPA, Wheaton will purchase an amount of gold equal to 50% of the payable gold
production until 145,000 ounces have been delivered, thereafter dropping to 33% of payable gold production for the
life of the mine and an amount of silver equal to 75% of the payable silver production until 4.6 million ounces have
been delivered, thereafter dropping to 50% for the life of mine. Under the terms of the Curipamba PMPA, the
Company is committed to pay Adventus total upfront cash consideration of $175.5 million, $13 million of which is
available pre-construction and $500,000 of which will be paid to support certain local community development
initiatives around the Curipamba Project. The initial payment of $13 million was paid on December 6, 2022. The
remainder will be payable in four staged installments during construction, subject to various customary conditions
being satisfied. In addition, Wheaton will make ongoing production payments for the gold and silver ounces delivered
equal to 18% of the spot prices until the value of gold and silver delivered, net of the production payment, is equal to
the upfront consideration of $175.5 million, at which point the production payment will increase to 22% of the spot
prices.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [30]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Acquisition of Marathon PMPA
On January 26, 2022, the Company entered into a PMPA (the “Marathon PMPA”) with Generation Mining Limited
(“Gen Mining”) in respect of gold and platinum production from the Marathon Project located in Ontario, Canada (the
“Marathon Project”). Under the Marathon PMPA, Wheaton will purchase an amount of gold equal to 100% of the
payable gold production until 150,000 ounces have been delivered, thereafter dropping to 67% of payable gold
production for the life of the mine and an amount of platinum production equal to 22% of the payable platinum
production until 120,000 ounces have been delivered, thereafter dropping to 15% for the life of mine. Under the terms
of the Marathon PMPA, the Company is committed to pay Gen Mining total upfront cash consideration of $178 million
(Cdn$240 million), $16 million (Cdn$20 million) of which was paid on March 31, 2022 and $15 million (Cdn$20
million) was paid on September 7, 2022. The remainder is to be paid in four staged installments during construction,
subject to various customary conditions being satisfied and pre-determined completion tests. In addition, Wheaton
will make ongoing production payments for the gold and platinum ounces delivered equal to 18% of the spot prices
until the value of gold and platinum delivered, net of the production payment, is equal to the upfront consideration of
Cdn$240 million, at which point the production payment will increase to 22% of the spot prices.
Acquisition and Partial Disposition of Goose PMPA
On February 8, 2022, the Company entered into a PMPA (the “Goose PMPA”) with Sabina Gold & Silver Corp.
(“Sabina”) in respect of gold production from the Goose Project, part of Sabina’s Back River Gold District located in
Nunavut, Canada (the “Goose Project”). Under the Goose PMPA, Wheaton was to purchase an amount of gold equal
to 4.15% of the payable gold production until 130,000 ounces have been delivered, dropping to 2.15% until 200,000
ounces have been delivered, and thereafter dropping to 1.5% of the payable gold production for the life of mine.
Under the terms of the Goose PMPA, the Company was committed to pay Sabina an upfront payment of $125 million
in four equal installments during construction of the Goose Project, subject to customary conditions. The initial
payment of $31.25 million was paid on September 28, 2022, the second installment of $31.25 million was paid on
December 6, 2022, the third installment of $31.25 million was paid on February 3, 2023 and the final installment of
$31.25 million was paid on April 4, 2023.
On April 12, 2023, Sabina announced that shareholders approved the proposed acquisition by B2Gold Corp.
(“B2Gold”) of all the issued and outstanding common shares of Sabina. The transaction closed April 19, 2023.
Subsequent to closing, B2Gold exercised the option to acquire 33% of the stream under the Goose PMPA in
exchange for a cash payment in the amount of $46 million, resulting in a gain on partial disposal of the Goose PMPA
in the amount of $5 million, calculated as follows:
(in thousands)
Proceeds received on 33% buyback of Goose
Less: 33% carrying value
Gain on partial disposal of the Goose PMPA
$
46,400
(41,373)
$
5,027
In connection with the exercise of the option, the Company’s attributable gold production has been modified such that
the Company will purchase an amount of gold equal to 2.78% of the payable gold production until the Company has
received 87,100 ounces of gold under the Goose PMPA, dropping to 1.44%, until 134,000 ounces have been
delivered, and thereafter dropping to 1.0%.
In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot
gold price until the value of gold delivered, net of the production payment, is equal to the revised upfront
consideration of $83.75 million, at which point the production payment will increase to 22% of the spot gold price.
Amendment to the Marmato PMPA
On March 21, 2022, the Company amended its PMPA with Aris Mining Corporation (“Aris Mining”) in respect of the
Marmato PMPA. Under the terms of the amended agreement, Wheaton will purchase 10.5% of the gold production
and 100% of the silver production from the Marmato Upper and Lower mines until 310,000 ounces of gold and 2.15
million ounces of silver have been delivered, after which the stream drops to 5.25% of the gold production and 50% of
the silver production for the life of mine. Under the terms of the amended Marmato PMPA, the Company is committed
to pay Aris Mining total upfront cash payments of $175 million. Of this amount, $53 million has been paid and the
remaining amount is payable during the construction of the Marmato Lower Mine, subject to customary conditions.
Termination of the Keno Hill PMPA
On October 2, 2008, the Company entered into a PMPA (the “Keno Hill PMPA”) with Alexco Resource Corp.
(“Alexco”) to acquire an amount equal to 25% of the silver produced by Alexco’s Keno Hill mine in Canada. On
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [31]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
September 7, 2022, Hecla Mining Company (“Hecla”) completed the previously announced acquisition of all of the
outstanding common shares of Alexco. In connection with this acquisition, the Company entered an agreement with
Hecla to terminate the Keno Hill PMPA effective September 7, 2022 in exchange for 34,800,989 common shares of
Hecla valued at $141 million (the “Hecla shares”), resulting in a gain on disposal of the Keno Hill PMPA in the amount
of $104 million, calculated as follows:
(in thousands)
Fair value of Hecla Mining Company shares received
Less: carrying value after impairment reversal, plus closing costs
Gain on disposal of the Keno Hill PMPA
$
140,596
(36,201)
$
104,395
The Company also recorded a $10.3 million gain on impairment reversal during the year ended December 31, 2022
associated with the termination of the Keno Hill PMPA.
Termination of the Yauliyacu PMPA
On March 23, 2006, the Company entered into a PMPA (the “Yauliyacu PMPA”) with Glencore plc (“Glencore”) in
respect of the mine in Peru. Under the terms of the amended agreement, per annum the Company purchased an
amount equal to 100% of the first 1.5 million ounces of silver for which an offtaker payment is due, and 50% of any
excess. On August 18, 2022, the Company announced that it had entered into an agreement with Glencore to
terminate the Yauliyacu PMPA for a cash payment of $150 million, less the aggregate value of any deliveries to
Wheaton, prior to closing, of silver produced subsequent to December 31, 2021. On December 14, 2022 the
Company received a cash payment of $132 million resulting in a gain on disposal of the Yauliyacu PMPA in the
amount of $51 million, calculated as follows:
(in thousands)
Proceeds received on disposal of Yauliyacu
Less: carrying value plus closing costs
Gain on disposal of the Yauliyacu PMPA
$
131,937
(80,464)
$
51,473
Acquisition of Cangrejos PMPA
On May 16, 2023, the Company entered into a PMPA (the “Cangrejos PMPA”) with Lumina Gold Corp. ("Lumina") in
respect of its 100% owned Cangrejos gold-copper project located in El Oro Province, Ecuador. Under the terms of
the agreement, Wheaton will purchase 6.6% of the payable gold production until 700,000 ounces of gold have been
delivered, at which point the stream will be reduced to 4.4% of the payable gold production for the life of the mine.
Under the terms of the Cangrejos PMPA, the Company is committed to pay Lumina total upfront cash payments of
$300 million, $48 million of which is available pre-construction, with the remainder to be paid in staged equal
installments during construction of the mine, subject to various customary conditions being satisfied. As it relates to
the $48 million, payments will be made in four installments, including (i) $12 million which was paid on closing; (ii) $17
million which was paid six months after closing on November 22, 2023; (iii) $15 million to be paid 12 months after
closing; and (iv) $11 million that can be drawn upon for committed acquisition of surface rights.
In addition, Wheaton will make ongoing production payments for the gold ounces delivered equal to 18% of the spot
gold price until the value of gold delivered, net of the production payment, is equal to the upfront consideration of
$300 million, at which point the production payment will increase to 22% of the spot gold price.
Amendment to the Blackwater Gold PMPA
On December 13, 2021, the Company acquired the existing gold stream in respect of gold production from the
Blackwater Project (the “Blackwater Gold PMPA”). On June 14, 2023, the Company amended the Blackwater Gold
PMPA. Under the terms of the amended agreement, the Company is entitled to purchase an amount of gold equal to
8% of the payable gold production until 464,000 ounces have been delivered (previously 279,908 ounces), with this
threshold to increase should there be a delay in the anticipated timing of deliveries. Once the threshold has been
achieved, the Company’s attributable gold production will drop to 4% of payable gold production for the life of the
mine. In exchange for the amendment, the Company is committed to pay upfront cash consideration of $40 million,
payable in four installments which has entirely been paid as at December 31, 2023.
Acquisition of Mineral Park PMPA
On October 24, 2023, the Company entered into a PMPA (the “Mineral Park PMPA”) with Waterton Copper Corp., a
subsidiary of Waterton Copper LP (“Waterton Copper”), in respect of silver production from the Mineral Park mine
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [32]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
located in Arizona, USA (“Mineral Park”). Under the Mineral Park PMPA, Wheaton will purchase an amount of silver
equal to 100% of the payable silver production 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 Origin Mining Company, LLC, the
Mineral Park owner and affiliate of Waterton Copper, once the full upfront consideration has been paid (see Note 27).
Acquisition of Curraghinalt PMPA
On November 15, 2023, the Company entered into a PMPA for a gold stream in respect of Dalradian Gold’s
Curraghinalt Project (the “Curraghinalt PMPA”). The Curraghinalt project is located in Northern Ireland, United
Kingdom. Under the Curraghinalt PMPA, the Company will purchase an amount of gold equal to 3.05% of the
payable gold production until 125,000 ounces of gold has been delivered, at which point the stream will be reduced to
1.5% of the payable gold production for life of mine. Under the terms of the Curraghinalt PMPA, the Company paid
$20 million on December 21, 2023 with an additional $55 million being paid during construction, subject to various
customary conditions being satisfied. In addition, Wheaton will make ongoing payments for the gold ounces delivered
equal to 18% of the spot price of gold until the value of the gold delivered, net of the production payment, is equal to
the upfront consideration of $75 million, at which point the production payment will increase to 22% of the spot price
of gold.
Salobo – Mill Throughput Expansion Payment
On November 21, 2023, Vale reported the successful completion of the throughput test for the first phase of the
Salobo III project, with the Salobo complex exceeding an average of 32 million tonnes per annum (“Mtpa”) over a 90-
day period. Under the terms of the agreement, the Company paid Vale $370 million for the completion of the first
phase of the Salobo III expansion project on December 1, 2023 (see Note 27 for more information).
14.
Early Deposit Mineral Stream Interests
Early deposit mineral stream interests represent agreements relative to early stage development projects whereby
Wheaton can choose not to proceed with the agreement once certain documentation has been received including,
but not limited to, feasibility studies, environmental studies and impact assessment studies (please see Note 27 for
more information). Once Wheaton has elected to proceed with the agreement, the carrying value of the stream will be
transferred to Mineral Stream Interests.
The following table summarizes the early deposit mineral stream interests owned by the Company as of December
31, 2023:
Attributable
Production to be
Purchased
Early Deposit Mineral
Stream Interests
Mine
Owner
Location of
Mine
Upfront
Consideration
Paid to Date 1
Upfront
Consideration
to be Paid 1, 2
Total
Upfront
Consideration¹
Gold
Silver
Term of
Agreement
Toroparu
Cotabambas
Kutcho
Aris Mining
Panoro
Kutcho
Guyana $
Peru
Canada
15,500 $
14,000
16,852
138,000 $
126,000
58,000
153,500
140,000
74,852
10%
25% ³
100%
50% Life of Mine
100% ³ Life of Mine
100% Life of Mine
$
46,352 $
322,000 $
368,352
1) Expressed in thousands of United States dollars; excludes closing costs and capitalized interest, where applicable.
2) Please refer to Note 27 for details of when the remaining upfront consideration to be paid becomes due.
3) Once 90 million silver equivalent ounces attributable to Wheaton have been produced, the attributable production will decrease to 16.67% of gold production and 66.67%
of silver production for the life of mine.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [33]
15. Mineral Royalty Interests
The following table summarizes mineral royalty interests owned by the Company as of December 31, 2023. To date,
no revenue has been recognized and no depletion has been taken with respect to these royalty agreements.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Royalty Interests
Mine
Owner
Location
of
Mine
Upfront
Consideration
Paid to Date 2
Upfront
Consideration
to be Paid 2
Total
Upfront
Consideration 2
Royalty 1
Metates
Chesapeake
Mexico
0.5% NSR $
3,000 $
- $
3,000
Brewery Creek 3
Victoria Gold
Canada
2.0% NSR
3,529
-
3,529
Black Pine 4
Mt Todd 5
Liberty Gold
USA
0.5% NSR
3,600
-
3,600
Vista
Australia
1.0% GR
3,000
17,000
20,000
$
13,129 $
17,000 $
30,129
1) Abbreviation as follows: NSR = Net Smelter Return Royalty; and GR = Gross Royalty.
2) Expressed in thousands; excludes closing costs.
3) The Company paid $3 million for an existing 2.0% net smelter return royalty interests on the first 600,000 ounces of gold mined and a 2.75% net smelter returns royalty
interest thereafter. The Brewery Creek Royalty agreement provides, among other things, that Golden Predator Mining Corp., (subsidiary of Victoria Gold) may reduce the
2.75% net smelter royalty interest to 2.125% on payment of the sum of Cdn $2 million to the Company.
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.
4)
5) The Mt Todd royalty is at a rate of 1% of gross revenue with such rate being subject to increase to a maximum rate of 2%, depending on the timing associated with the
achievement of certain operational milestones.
16.
Long-Term Equity Investments
(in thousands)
Common shares held
Warrants held
Total long-term equity investments
Common Shares Held
December 31 December 31
2023
2022
$
246,026 $
255,535
652
560
$
246,678 $
256,095
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Dec 31, 2022
Cost of
Additions
Proceeds of
Disposition 1
Year Ended December 31, 2023
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2023
Realized Gain
(Loss) on
Disposal
Bear Creek
15,707
7.90% $ 7,443 $ 526 $ - $ (5,831) $ 2,138 $ -
Sabina
Kutcho
Hecla
B2Gold
Other
Total
-
0.00%
18,640
13.27%
34,980
12,025
5.66%
0.92%
30,535
3,097
194,668
-
19,792
-
-
-
48,832
16,826
(48,832)
-
(202)
-
(27)
18,297
(1,546)
(26,211)
(10,738)
(603)
-
1,551
168,255
38,094
35,988
872
-
73
-
(990)
$ 255,535 $ 66,184 $ (49,061) $ (26,632) $ 246,026 $ (45)
1)
2)
The disposal of the Sabina shares was as a result of the acquisition of Sabina by B2Gold, while the partial disposition of the Hecla shares was made in order to capitalize
on Hecla’s share price appreciation.
Fair Value Gains (Losses) are reflected as a component of OCI.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [34]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
(in thousands)
Fair Value at
Dec 31, 2021
Cost of
Additions
Proceeds of
Disposition 1
Year Ended December 31, 2022
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2022
Realized Loss
on Disposal
Bear Creek
13,264
8.65% $ 12,764 $ - $ - $ (5,321) $ 7,443 $ -
Sabina
Kutcho
Hecla
Other
Total
31,095
5.58%
13,381
18,640
14.83%
35,012
5.78%
-
-
19,833
11,721
141,450
-
-
-
(2,679)
(8,624)
30,535
3,097
53,218
194,668
-
-
-
33,796
6,139
(4,601)
(15,542)
19,792
(3,797)
$ 59,941 $ 179,143 $ (4,601) $ 21,052 $ 255,535 $ (3,797)
1) Disposals during 2022 were made as a result of the acquisition of the companies to which the shares relate by unrelated third party entities.
2)
Fair Value Gains (Losses) are reflected as a component of OCI.
The Company’s long-term investments in common shares (“LTI’s”) are held for long-term strategic purposes and not
for trading purposes. As such, the Company has elected to reflect any fair value adjustments, net of tax, as a
component of other comprehensive income (“OCI”). The cumulative gain or loss will not be reclassified to net
earnings on disposal of these long-term investments but is reclassified to retained earnings.
By holding these long-term investments, the Company is inherently exposed to various risk factors including currency
risk, market price risk and liquidity risk.
17. Credit Facilities
17.1. Sustainability-Linked Revolving Credit Facility
On June 22, 2023, the term of the Company’s undrawn $2 billion revolving term loan (“Revolving Facility”) was
extended by an additional year, with the facility now maturing on June 22, 2028.
The Company’s Revolving Facility has financial covenants which require the Company to maintain: (i) a net debt to
tangible net worth ratio of less than or equal to 0.75:1; and (ii) an interest coverage ratio of greater than or equal to
3.00:1. Only cash interest expenses are included for the purposes of calculating the interest coverage ratio. The
Company is in compliance with these debt covenants as at December 31, 2023 and 2022.
At the Company’s option, amounts drawn under the Revolving Facility incur interest based on the Company’s
leverage ratio at either (i) the Secured Overnight Financing Rate (“SOFR”) plus 1.10% to 2.15%; or (ii) the Bank of
Nova Scotia’s Base Rate plus 0.00% to 1.05%. Under both options, the interest rate shall not be less than 0%. In
connection with the extension, the interest rate paid on drawn amounts will be adjusted by up to +/- 0.05% based
upon the Company’s performance in three sustainability-related areas including climate change, diversity and overall
performance in sustainability. During the years ended December 31, 2023 and December 31, 2022, the stand-by fee
rate was 0.20%.
The Revolving Facility, which is classified as a financial liability and reported at amortized cost using the effective
interest method, can be drawn down at any time to finance acquisitions, investments or for general corporate
purposes. In connection with the Revolving Facility, there is $5 million unamortized debt issue costs which have been
recorded as a long-term asset under the classification Other (see Note 25).
17.2. Lease Liabilities
The lease liability on the Company’s offices located in Vancouver, Canada and the Cayman Islands is as follows:
(in thousands)
Current portion
Long-term portion
Total lease liabilities
December 31 December 31
2023
604 $
5,625
2022
818
1,152
6,229 $
1,970
$
$
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [35]
The maturity analysis, on an undiscounted basis, of these leases is as follows:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
(in thousands)
Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years
Total lease liabilities
December 31
$
2023
898
2,548
4,769
$
8,215
17.3. Finance Costs
A summary of the Company’s finance costs associated with the above facilities during the period is as follows:
(in thousands)
Costs related to undrawn credit facilities
Interest expense - lease liabilities
Letters of guarantee
Total finance costs
18. Issued Capital
(in thousands)
Issued capital
Years Ended December 31
Note
17.1 $
17.2
5.3
2023
5,162 $
207
141
2022
5,262
91
233
$
5,510 $
5,586
December 31 December 31
2022
2023
Note
Share capital issued and outstanding: 453,069,254 common shares
(December 31, 2022: 452,318,526 common shares)
18.1
$ 3,777,323 $ 3,752,662
18.1. Shares Issued
The Company is authorized to issue an unlimited number of common shares having no par value and an unlimited
number of preference shares issuable in series. As at December 31, 2023 and 2022, the Company had no
preference shares outstanding.
A continuity schedule of the Company’s issued and outstanding common shares from January 1, 2022 to December
31, 2023 is presented below:
At January 1, 2022
Share purchase options exercised 1
Restricted share units released 1
Dividend reinvestment plan 2
At December 31, 2022
Share purchase options exercised 1
Restricted share units released 1
Dividend reinvestment plan 2
At December 31, 2023
Number
of
Shares
Weighted
Average
Price
450,863,952
493,129
Cdn$28.76
87,838
Cdn$0.00
873,607
452,318,526
US$38.75
488,922
Cdn$32.82
119,827
Cdn$0.00
141,979
US$46.73
453,069,254
1) The weighted average price of share purchase options exercised and restricted share units released represents the respective exercise price.
2) The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to have dividends reinvested directly into additional Wheaton
common shares. The weighted average price for common shares issued under the DRIP represents the volume weighted average price of the common shares on the five
trading days preceding the dividend payment date, less a discount of 1% where applicable.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [36]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
At the Market Equity Program
The Company has established an at-the-market equity program (the “ATM Program”) that allows the Company to
issue up to $300 million worth of common shares from treasury (“Common Shares”) to the public from time to time at
the Company’s discretion and subject to regulatory requirements. The ATM Program will be effective until the date
that all Common Shares available for issue under the ATM Program have been issued or the ATM Program is
terminated prior to such date by the Company or the agents.
Wheaton intends that the net proceeds from the ATM Program, if any, will be available as one potential source of
funding for stream acquisitions and/or other general corporate purposes including the repayment of indebtedness. As
at December 31, 2023 and 2022, the Company has not issued any shares under the ATM program.
18.2. Dividends Declared
(in thousands, except per share amounts)
Dividends declared per share
Average number of shares eligible for dividend
Total dividends paid
Paid as follows:
Cash
DRIP 1
Total dividends paid
Years Ended December 31
2023
$
0.60
452,906
2022
$
0.60
451,577
$ 271,744
$ 270,946
$ 265,109
6,635
98%
2%
$ 237,097
33,849
88%
12%
$ 271,744 100%
$ 270,946 100%
Shares issued under the DRIP
142
874
1) The Company has implemented a DRIP whereby shareholders can elect to have dividends reinvested directly into additional Wheaton common shares.
19. Reserves
(in thousands)
Reserves
Share purchase warrants
Share purchase options
Restricted share units
Long-term investment revaluation reserve, net of tax
Total reserves
December 31 December 31
2022
2023
Note
19.1
19.2
19.3
19.4
$
- $
22,907
8,006
(71,004)
83,077
22,578
8,142
(47,250)
$
(40,091) $
66,547
19.1. Share Purchase Warrants
The Company’s share purchase warrants (“warrants”) are presented below:
Weighted
Average
Exercise
Price
Exchange
Ratio
Number of
Warrants
Share Purchase
Warrants Reserve
Warrants outstanding at December 31, 2022
Expired
10,000,000 $ 43.75
43.75
(10,000,000)
Warrants outstanding at December 31, 2023
- $ 43.75
1.00
1.00
1.00
$
83,077
(83,077)
$ -
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [37]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Each warrant entitled the holder the right to purchase one of the Company’s common shares. The warrants expired
unexercised on February 28, 2023.
19.2. Share Purchase Options
The Company has established an equity settled share purchase option plan whereby the Company’s Board of
Directors may, from time to time, grant options to employees or consultants. The maximum term of any share
purchase option may be ten years, but generally options are granted with a term to expiry of five to seven years. The
exercise price of an option is not less than the closing price on the TSX on the last trading day preceding the grant
date. The vesting period of the options is determined at the discretion of the Company’s Board of Directors at the time
the options are granted, but generally vest over a period of two or three years.
Each share purchase option converts into one common share of Wheaton on exercise. No amounts are paid or
payable by the recipient on receipt of the option. The options do not carry rights to dividends or voting rights. Options
may be exercised at any time from the date of vesting to the date of their expiry, subject to certain black-out periods.
The Company expenses the fair value of share purchase options that are expected to vest on a straight-line basis over
the vesting period using the Black-Scholes option pricing model to estimate the fair value for each option at the date of
grant. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no
vesting restrictions. The model requires the use of subjective assumptions, including expected share price volatility.
Historical data has been considered in setting the assumptions. Expected volatility is determined by considering the
trailing 30-month historic average share price volatility. The weighted average fair value of share purchase options
granted and principal assumptions used in applying the Black-Scholes option pricing model are as follows:
Black-Scholes weighted average assumptions
Grant date share price and exercise price
Expected dividend yield
Expected volatility
Risk-free interest rate
Expected option life, in years
Weighted average fair value per option granted
Number of options issued during the period
Total fair value of options issued (000's)
Years Ended December 31
2023
2022
Cdn$59.41
1.39%
30%
3.40%
3.0
Cdn$12.89
316,580
$ 2,972
Cdn$60.00
1.32%
35%
1.72%
3.0
Cdn$13.84
283,440
$ 3,069
The following table summarizes information about the options outstanding and exercisable at December 31, 2023:
Exercise Price (Cdn$)
$30.82
$31.85¹
$32.47¹
$32.93
$33.47
$49.86
$52.84¹
$57.23¹
$59.41
$60.00
$62.11¹
Exercisable
Options
4,477
18,310
5,210
121,210
291,255
156,693
21,052
-
-
73,578
11,840
Non-Exercisable
Options
-
-
-
-
-
79,873
14,091
45,820
252,630
148,556
25,426
Total Options
Outstanding
4,477
18,310
5,210
121,210
291,255
236,566
35,143
45,820
252,630
222,134
37,266
Weighted
Average
Remaining
Contractual Life
0.5 years
1.2 years
0.2 years
0.2 years
1.2 years
4.2 years
4.2 years
6.2 years
6.2 years
5.2 years
5.2 years
1) US$ share purchase options converted to Cdn$ using the exchange rate of 1.3226, being the Cdn$/US$ exchange rate at December 31, 2023.
703,625
566,396
1,270,021
3.7 years
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [38]
A continuity schedule of the Company’s outstanding share purchase options from January 1, 2022 to December 31,
2023 is presented below:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
At January 1, 2022
Granted (fair value - $3 million or Cdn$13.84 per option)
Exercised
Forfeited
At December 31, 2022
Granted (fair value - $3 million or Cdn$12.89 per option)
Exercised
Forfeited
Number of
Options
Outstanding
Weighted
Average
Exercise Price
1,705,497
283,440
(493,129)
(17,508)
1,478,300
316,580
(488,922)
(35,937)
Cdn$34.40
60.00
28.76
53.73
Cdn$41.37
59.41
32.82
59.44
At December 31, 2023
1,270,021
Cdn$48.47
As it relates to share purchase options, during the year ended December 31, 2023, the weighted average share price
at the time of exercise was Cdn$63.74 per share, as compared to Cdn$57.96 per share during the comparable period
in 2022.
19.3. Restricted Share Units (“RSUs”)
The Company has established an RSU plan whereby RSUs will be issued to eligible employees or directors as
determined by the Company’s Board of Directors or the Company’s Compensation Committee. RSUs give the holder
the right to receive a specified number of common shares at the specified vesting date. RSUs generally vest over a
period of two to three years. Compensation expense related to RSUs is recognized over the vesting period based
upon the fair value of the Company’s common shares on the grant date and the awards that are expected to vest.
The fair value is calculated with reference to the closing price of the Company’s common shares on the TSX on the
business day prior to the date of grant.
RSU holders receive a cash payment based on the dividends paid on the Company’s common shares in the event
that the holder of a vested RSU has elected to defer the release of the RSU to a future date. This cash payment is
reflected as a component of net earnings under the classification Share Based Compensation.
A continuity schedule of the Company’s restricted share units outstanding from January 1, 2022 to December 31,
2023 is presented below:
At January 1, 2022
Granted (fair value - $4 million)
Released
Forfeited
At December 31, 2022
Granted (fair value - $4 million)
Released
Forfeited
At December 31, 2023
Number of
RSUs
Outstanding
Weighted
Average
Intrinsic Value at
Date Granted
350,058
91,780
(87,838)
(3,794)
350,206
93,990
(119,827)
(8,033)
316,336
$26.69
46.72
28.85
39.95
$31.25
43.35
33.10
44.39
$33.81
19.4. Long-Term Investment Revaluation Reserve
The Company’s long-term investments in common shares (Note 16) are held for long-term strategic purposes and not
for trading purposes. The Company has chosen to designate these long-term investments in common shares as
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [39]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
financial assets with fair value adjustments being recorded as a component of OCI as it believes that this provides a
more meaningful presentation for long-term strategic investments, rather than reflecting changes in fair value as a
component of net earnings. As some of these long-term investments are denominated in Canadian dollars, changes in
their fair value is affected by both the change in share price in addition to changes in the Cdn$/US$ exchange rate.
Where the fair value of a long-term investment in common shares held exceeds its tax cost, the Company recognizes
a deferred income tax liability. To the extent that the value of the long-term investment subsequently declines, the
deferred income tax liability is reduced. However, where the fair value of the long-term investment decreases below
the tax cost, the Company does not recognize a deferred income tax asset on the unrealized capital loss unless it is
probable that the Company will generate future capital gains that will offset the loss.
A continuity schedule of the Company’s long-term investment revaluation reserve from January 1, 2022 to December
31, 2023 is presented below:
(in thousands)
At January 1, 2022
Unrealized gain (loss) on LTIs 1
Reallocate reserve to retained earnings upon disposal of LTIs 1
16
At December 31, 2022
Unrealized gain (loss) on LTIs 1
Reallocate reserve to retained earnings upon disposal of LTIs 1
At December 31, 2023
1) LTIs refers to long-term investments in common shares held.
20.
Share Based Compensation
Change in
Fair Value
Deferred
Tax
Recovery
Total
(Expense)
$ (65,475) $ (111) $ (65,586)
14,539
21,052
(6,513)
3,797
3,797
$ (40,626) $ (6,624) $ (47,250)
-
(26,632)
(841)
3,719
-
(22,913)
(841)
$ (68,099) $ (2,905) $ (71,004)
The Company’s share based compensation consists of share purchase options (Note 19.2), restricted share units
(Note 19.3) and performance share units (Note 20.1). The accrued value of share purchase options and restricted
share units are reflected as reserves in the shareholder’s equity section of the Company’s balance sheet while the
accrued value associated with performance share units is reflected as an accrued liability.
20.1. Performance Share Units (“PSUs”)
The Company has established a Performance Share Unit Plan (“the PSU plan”) whereby PSUs will be issued to
eligible employees as determined by the Company’s Board of Directors or the Company’s Compensation Committee.
PSUs issued under the PSU plan entitle the holder to a cash payment at the end of a three year performance period
equal to the number of PSUs granted, multiplied by a performance factor and multiplied by the fair market value of a
Wheaton common share on the expiry of the performance period. The performance factor can range from 0% to
200% and is determined by comparing the Company’s total shareholder return to those achieved by various peer
companies, the Philadelphia Gold and Silver Index and the price of gold and silver.
Compensation expense for the PSUs is recorded on a straight-line basis over the three year vesting period. The
amount of compensation expense is adjusted at the end of each reporting period to reflect (i) the fair value of
common shares; (ii) the number of PSUs anticipated to vest; and (iii) the anticipated performance factor.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [40]
A continuity schedule of the Company’s outstanding PSUs (assuming a performance factor of 100% is achieved over
the performance period) and the Company’s PSU accrual from January 1, 2022 to December 31, 2023 is presented
below:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
(in thousands, except for number of PSUs outstanding)
At January 1, 2022
Granted
Accrual related to the fair value of the PSUs outstanding
Foreign exchange adjustment
Paid
Forfeited
At December 31, 2022
Granted
Accrual related to the fair value of the PSUs outstanding
Foreign exchange adjustment
Paid
Forfeited
Number of
PSUs
Outstanding
PSU accrual
liability
513,510 $
129,140
-
-
(186,730)
(11,300)
444,620 $
135,690
-
-
(191,980)
(15,870)
26,305
-
14,414
(870)
(18,411)
(199)
21,239
-
16,669
257
(16,675)
(364)
At December 31, 2023
372,460 $
21,126
A summary of the PSUs outstanding at December 31, 2023 is as follows:
Year
of Grant
2021
2022
2023
Year of
Maturity
2024
2025
2026
Estimated Value
Per PSU at
Maturity
$50.94
$50.27
$49.51
Number
outstanding
126,590
118,240
127,630
372,460
Anticipated
Performance
Factor
at Maturity
200%
193%
133%
Percent of
PSU
Vesting Period
Liability at
Complete at
Dec 31, 2023
Dec 31, 2023
93%
$ 12,013
60% 6,866
27% 2,247
$ 21,126
21.
Earnings per Share (“EPS”) and Diluted Earnings per Share (“Diluted EPS”)
Diluted earnings per share is calculated using the treasury method which assumes that outstanding share purchase
options and warrants, with exercise prices that are lower than the average market price of the Company’s common
shares for the relevant period, are exercised and the proceeds are used to purchase shares of the Company at the
average market price of the common shares for the relevant period.
Diluted EPS is calculated based on the following weighted average number of shares outstanding:
(in thousands)
Basic weighted average number of shares outstanding
Effect of dilutive securities
Share purchase options
Restricted share units
Years Ended December 31
2023
452,814
318
331
2022
451,570
425
349
Diluted weighted average number of shares outstanding
453,463
452,344
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [41]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
The following table lists the number of share purchase options and share purchase warrants excluded from the
computation of diluted earnings per share because the exercise prices exceeded the average market value of the
common shares of Cdn$60.58, compared to Cdn$50.55 for the comparable period in 2022.
(in thousands)
Share purchase options
Share purchase warrants
Total
22.
Supplemental Cash Flow Information
Change in Non-Cash Working Capital
(in thousands)
Change in non-cash working capital
Accounts receivable
Accounts payable and accrued liabilities
Other
Years Ended December 31
2023
37
-
37
2022
337
10,000
10,337
Years Ended December 31
2023
2022
$
$
(264)
867
1,309
2,023
(1,318)
868
Total change in non-cash working capital
$
1,912
$
1,573
Non-Cash Transactions – Receipt of Shares as Consideration for Disposal of Long-Term Equity Investments
During the year ended December 31, 2023, the Company received common shares valued at $48 million (2022 - $4.6
million) as consideration for the disposal of long-term equity investments (Note 16).
Non-Cash Transactions – Receipt of Shares as Consideration for Termination of Keno Hill PMPA
As more fully described in notes 13 and 16, on September 7, 2022, the Company terminated the Keno Hill PMPA in
exchange for 34,800,989 common shares of Hecla valued at $141 million.
Non-Cash Transactions – Termination of Convertible Note Receivable and Non-Revolving Term Loan
On February 18, 2022, the Company terminated the previously outstanding Kutcho Convertible Note and non-
revolving term loan in exchange for shares of Kutcho valued at $6.7 million in addition to certain other modifications
to the Kutcho Early Deposit Agreement (Note 14).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [42]
Cash and Cash Equivalents
(in thousands)
Cash and cash equivalents comprised of:
Cash
Cash equivalents
Total cash and cash equivalents
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
December 31 December 31
2023
2022
$
211,430 $
335,097
170,155
525,934
$
546,527 $
696,089
Cash equivalents include short-term deposits, treasury bills, commercial paper, bankers’ depository notes and
bankers’ acceptances with terms to maturity at inception of less than three months.
23.
Income Taxes
A summary of the Company’s income tax expense (recovery) is as follows:
Income Tax Expense (Recovery) in Net Earnings
(in thousands)
Current income tax expense (recovery)
Deferred income tax expense (recovery) related to:
Origination and reversal of temporary differences
Write down (reversal of write down) or recognition of prior period
temporary differences
Total deferred income tax expense (recovery)
Years Ended December 31
2023
(2,372)
$
$
2022
8,746
$
2,427 $
32,430
1,359
3,786 $
(40,667)
(8,237)
$
Total income tax expense (recovery) recognized in net earnings
$
1,414
$
509
Income Tax Expense (Recovery) in Other Comprehensive Income
(in thousands)
2023
Income tax expense (recovery) related to LTIs - common shares held
$
(3,719) $
2022
6,513
Years Ended December 31
Income Tax Expense (Recovery) in Shareholders’ Equity1
(in thousands)
Current income tax expense (recovery)
Deferred income tax expense (recovery) related to:
Origination and reversal of temporary differences
Write down (reversal of write down) or recognition of prior period
temporary differences
Total deferred income tax expense (recovery)
Years Ended December 31
2023
$
- $
2022
(5,932)
$
$
$
- $
5,932
- $
- $
(4,143)
1,789
Total income tax expense (recovery) recognized in equity
$
- $
(4,143)
1) Income tax expense (recovery) in shareholders’ equity relates to share financing fees. Share financing fees are deducted over a five-year period for Canadian income tax
purposes. For accounting purposes, share financing fees are charged directly to issued capital.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [43]
Income Tax Rate Reconciliation
The provision for income taxes differs from the amount that would be obtained by applying the statutory income tax
rate to consolidated earnings before income taxes due to the following:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
(in thousands)
Earnings before income taxes
Canadian federal and provincial income tax rates
Income tax expense (recovery) based on above rates
Non-deductible portion of capital losses (non-taxable portion of capital
gains)
Non-deductible stock based compensation and other
Differences in tax rates in foreign jurisdictions 1
Current period unrecognized temporary differences
Write down (reversal of write down) or recognition of prior period
temporary differences
Years Ended December 31
2023
2022
$
$
539,058 $
27.00%
145,546 $
669,635
27.00%
180,781
-
1,656
(147,991)
844
(1,052)
1,529
(142,869)
2,787
1,359
(40,667)
Total income tax expense (recovery) recognized in net earnings
$
1,414 $
509
1) During the year ended December 31, 2023, the Company's subsidiaries generated net earnings of $551 million, as compared to $532 million during the comparable period of
the prior year.
The majority of the Company’s income generating activities is conducted by its 100% owned subsidiary, Wheaton
Precious Metals International Ltd., which operates in the Cayman Islands and is not subject to income tax.
Global Minimum Tax
The Company is within the scope of global minimum tax under the OECD Pillar Two model rules (“Pillar Two”).
Subject to tax legislation enacting Pillar Two being passed in the jurisdictions where the Company and its subsidiaries
operate, the group is liable to pay a top-up tax for any deficiency between the minimum tax rate of 15% and the
effective tax rate per jurisdiction. The Canadian parent company, as well as its Luxembourg subsidiary (Silver
Wheaton Luxembourg S.a.r.l., or “Silver Wheaton Luxembourg”) have an effective tax rate that exceeds 15% or are in
a loss position. The group’s subsidiaries that operate in the Cayman Islands have an effective tax rate of 0%. For the
years ended December 31, 2023 and 2022, the Cayman Islands subsidiaries had net earnings of $551 million and
$532 million, respectively.
The Company does not operate in any jurisdiction where Pillar Two legislation was effective as for the year ended
December 31, 2023 and 2022 and therefore the Company has no related current tax expense associated with global
minimum tax.
Jurisdictional updates are as follows:
Canada
On August 4, 2023, the Canadian Federal Government released draft Pillar Two implementing legislation as a new
act, the Global Minimum Tax Act (“GMTA”), for public comment. The public consultation period on the draft legislation
ended September 29, 2023. If enacted, the GMTA would implement a 15% global minimum tax for fiscal years that
begin on or after December 31, 2023. If enacted as drafted, the proposed Canadian rules in the GMTA would apply to
the income of the Company’s Cayman Island subsidiaries from January 1, 2024.
Luxembourg
Pillar Two legislation was enacted in Luxembourg on December 22, 2023. The rules are applicable from January 1,
2024. As discussed above, Silver Wheaton Luxembourg has an effective tax rate in excess of 15%. The Luxembourg
Pillar Two legislation also contains an undertaxed profits rule which is effective January 1, 2025, that would allow
Luxembourg to collect Pillar Two top-up taxes related to the Company’s subsidiaries operating in the Cayman Islands
if the GMTA were not enacted in Canada. Given the Canadian government’s stated intent to enact the GMTA, the
Company does not expect the Luxembourg Pillar Two legislation to have a material impact on the Company.
Cayman Islands
To date, the government of the Cayman Islands has indicated that they do not intend to enact Pillar Two Legislation.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [44]
Current Income Taxes (Payable) Receivable
The movement in current income taxes (payable) receivable for the years ended December 31, 2023 and 2022 is as
follows:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
(in thousands)
Current taxes payable - December 31, 2021
Current income tax expense - income statement
Current income tax recovery - shareholders' equity
Income taxes paid
Foreign exchange adjustments
Current taxes payable - December 31, 2022
Current income tax recovery - income statement
Income taxes paid
Foreign exchange adjustments
Current taxes recoverable - December 31, 2023
Current Taxes
(Payable)
Recoverable
$ (132)
(8,746)
5,932
171
12
$ (2,763)
2,372
6,192
134
$ 5,935
Deferred Income Taxes
The recognized deferred income tax assets and liabilities are offset on the balance sheet and relate to Canada,
except for the foreign withholding tax. The movement in deferred income tax assets and liabilities for the years ended
December 31, 2023 and December 31, 2022, respectively, is shown below:
Recognized deferred income tax assets and
liabilities
Deferred tax assets
Opening
Balance
Year Ended December 31, 2023
Recovery
(Expense)
Recognized
In Net
Earnings
Recovery
(Expense)
Recognized
In OCI
Recovery
(Expense)
Recognized
In
Shareholders'
Equity
Closing
Balance
Non-capital loss carryforward 1
Capital loss carryforward
Other 2
Deferred tax liabilities
Debt financing fees 3
Unrealized gains on long-term investments
Mineral stream interests 4
Foreign withholding tax
$
- $
810 $
- $
792
4,256
(774)
(8,006)
3,732
(165)
40
(121)
(44)
(4)
(4,400)
(67)
124
-
-
3,595
-
-
- $
-
-
810
956
4,135
-
-
-
-
(818)
(4,415)
(668)
(232)
Total
$
(165) $
(3,786) $
3,719 $
- $
(232)
1) As at December 31, 2023, the Company had recognized the tax effect on $3 million of non-capital losses against deferred tax liabilities.
2) Other includes capital assets, cobalt inventory, charitable donation carryforward, and PSU and pension liabilities.
3) Debt and share financing fees are deducted over a five-year period for Canadian income tax purposes. For accounting purposes, debt financing fees are deducted over the
term of the credit facility and share financing fees are charged directly to issued capital.
4) The Company’s position, as reflected in its filed Canadian income tax returns and consistent with the terms of the PMPAs, is that the cost of the precious metal acquired
under the Canadian PMPAs is equal to the market value while a deposit is outstanding (where applicable to an agreement), and the cash cost thereafter. For accounting
purposes, the cost of the mineral stream interests is depleted on a unit-of-production basis as described in Note 4.2.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [45]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Year Ended December 31, 2022
Recovery
(Expense)
Recognized
In Net
Earnings
Recovery
(Expense)
Recognized
In OCI
Recovery
(Expense)
Recognized
In
Shareholders'
Equity
Opening
Balance
$
6,967 $
-
1,325
(5,178) $
277
2,739
(87)
(737)
-
(170)
(7,298)
(100)
87
(37)
112
(728)
11,030
(65)
- $
(1,789) $
515
192
-
-
(112)
(7,108)
-
-
-
-
-
-
-
-
-
-
Closing
Balance
-
792
4,256
-
(774)
-
(8,006)
3,732
(165)
Recognized deferred income tax assets and liabilities
Deferred tax assets
Non-capital loss carryforward
Capital loss carryforward
Other
Deferred tax liabilities
Interest capitalized for accounting
Debt and share financing fees
Kutcho Convertible Note
Unrealized gains on long-term investments
Mineral stream interests
Foreign withholding tax
Total
$
(100) $
8,237 $
(6,513) $
(1,789) $
(165)
Deferred income tax assets in Canada not recognized are shown below:
(in thousands)
Mineral stream interests
Other
Unrealized losses on long-term investments
Total
1) As at December 31, 2023, the Company had fully recognized the tax effect of non-capital losses.
December 31 December 31
$
2023
8,804 $
2,376
12,912
2022
7,369
1,575
13,069
$
24,092 $
22,013
Deferred income taxes have not been provided on the temporary difference relating to investments in foreign
subsidiaries for which the Company can control the timing of and manner in which funds are repatriated and does not
plan to repatriate funds to Canada in the foreseeable future that would be subject to tax. The temporary difference
relating to investments in foreign subsidiaries is $2.1 billion as at December 31, 2023, all of which is anticipated to
reverse in the future and be exempt from tax on repatriation, leaving $Nil that would be taxable on repatriation.
At December 31, 2023, the Company has available non-capital losses for Canadian income tax purposes which may
be carried forward to reduce taxable income in future years. If not utilized, the non-capital losses in the amount of $3
million will expire in 2043.
24. Other Current Assets
The composition of other current assets is shown below:
(in thousands)
Prepaid expenses
Other
Total other current assets
Note
December 31 December 31
2023
2,628 $
871
2022
2,856
431
3,499 $
3,287
$
$
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [46]
25. Other Long-Term Assets
The composition of other long-term assets is shown below:
(in thousands)
Intangible assets
Debt issue costs - Revolving Facility
Refundable deposit - 777 PMPA
Subscription Rights
Other
Total other long-term assets
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
December 31 December 31
Note
17.1
$
2023
1,886 $
5,496
8,717
4,510
5,861
2022
2,270
5,757
8,073
-
3,691
$
26,470 $
19,791
Subscription Rights
The subscription rights were converted to common shares during the first quarter of 2024 and will be reclassified to
Long-Term Equity Investments.
Refundable Deposit – 777 PMPA
On August 8, 2012, the Company entered into a PMPA with Hudbay in respect to the 777 mine (Note 13). Under the
terms of the 777 PMPA, should the market value of gold and silver delivered to Wheaton through the initial 40 year
term of the contract, net of the per ounce cash payment, be lower than the initial $455 million upfront consideration,
the Company is entitled to a refund of the difference (the “Refundable Deposit”) at the conclusion of the 40 year term.
On June 22, 2022, Hudbay announced that mining activities at the 777 mine have concluded after the reserves were
depleted and closure activities have commenced. The balance of the Refundable Deposit is $78 million.
At December 31, 2022, the Company derecognized the 777 PMPA and recognized a long-term receivable, with
interest to be accreted on a quarterly basis until maturity which is August 8, 2052. The Company estimated that a
credit facility with similar terms and conditions would have an interest rate of 8%, resulting in the Refundable Deposit
having a fair value of $8 million at December 31, 2022, resulting in a $2 million impairment on the 777 PMPA.
26. Related Party Transactions
Compensation of Key Management Personnel
Key management personnel compensation, including directors, is as follows:
(in thousands)
Short-term benefits 1
Post-employment benefits
PSUs 2
Equity settled stock based compensation (a non-cash expense) 3
Years Ended December 31
2023
2022
$
909
9,341
7,755 $ 8,666
829
8,557
3,537
3,987
Total executive compensation
$
21,992 $ 21,589
1) Short-term employee benefits include salaries, bonuses payable within twelve months of the balance sheet date and other annual employee benefits.
2) As more fully disclosed in Note 20.1, PSU compensation expense is recorded on a straight-line basis over the three year vesting period, with the expense being adjusted at
the end of each reporting period to reflect (i) the fair value of common shares; (ii) the number of PSUs anticipated to vest; and (iii) the anticipated performance factor.
3) As more fully disclosed in Notes 19.2 and 19.3, equity settled stock based compensation expense is recorded on a straight-line basis over the vesting period.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [47]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
27. Commitments and Contingencies
Mineral Stream Interests
The following tables summarize the Company’s commitments to make per-ounce or per pound cash payments for
gold, silver, palladium, platinum and cobalt to which it has the contractual right pursuant to the PMPAs:
Per Ounce Cash Payment for Gold
Mineral Stream Interests
Constancia
Salobo
Sudbury
San Dimas
Stillwater
Marathon
Other
Minto
Copper World
Marmato
Santo Domingo
Fenix
Blackwater
Curipamba
Goose
Cangrejos
Platreef ⁸
Curraghinalt
Kudz Ze Kayah ⁸
Early Deposit
Toroparu
Cotabambas
Kutcho
Attributable
Payable Production
to be Purchased
50%
75%
70%
variable ³
100%
100% ⁵
$
$
$
$
Per Ounce Cash
Payment 1
420 ²
425
400
631
18% ⁴
18% ⁴
100% ⁶
100%
10.5% ⁵
100% ⁵
6% ⁵
8% ⁵
50% ⁵
2.78% ⁵
6.6% ⁵
62.5% ⁵
3.05% ⁵
6.875% ⁷
10%
25% ⁵
100%
$
$
$
$
50% ⁶
450
18% ⁴
18% ⁴
18% ⁴
35%
18% ⁴
18% ⁴
18% ⁴
100 ⁵
18% ⁴
20%
400
450
20%
Term of
Agreement
Life of Mine
Life of Mine
20 years
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine ⁵
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Date of
Original
Contract
8-Aug-12
28-Feb-13
28-Feb-13
10-May-18
16-Jul-18
26-Jan-22
20-Nov-08
10-Feb-10
5-Nov-20
24-Mar-21
15-Nov-21
13-Dec-21
17-Jan-22
8-Feb-22
16-May-23
7-Dec-21
15-Nov-23
22-Dec-21
11-Nov-13
21-Mar-16
14-Dec-17
1) The production payment is measured as either a fixed amount per ounce of gold delivered, or as a percentage of the spot price of gold on the date of delivery. Contracts
where the payment is a fixed amount per ounce of gold delivered are subject to an annual inflationary increase, with the exception of Sudbury. Additionally, should the
prevailing market price for gold be lower than this fixed amount, the per ounce cash payment will be reduced to the prevailing market price, subject to an annual inflationary
factor.
2) Subject to an increase to $550 per ounce of gold after the initial 40-year term.
3) Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to
25% of the payable silver production converted to gold at a fixed gold to silver exchange ratio of 70:1 from the San Dimas mine. If the average gold to silver price ratio
decreases to less than 50:1 or increases to more than 90:1 for a period of 6 months or more, then the "70" shall be revised to "50" or "90", as the case may be, until such
time as the average gold to silver price ratio is between 50:1 to 90:1 for a period of 6 months or more in which event the "70" shall be reinstated. Currently, the fixed gold to
silver exchange ratio is 70:1.
4) To be increased to 22% once the market value of all metals delivered to Wheaton, net of the per ounce cash payment, exceeds the initial upfront cash deposit.
5) Under certain PMPAs, the Company’s attributable gold percentage will be reduced once certain thresholds are achieved:
a. Marathon – reduced to 67% once the Company has received 150,000 ounces of gold.
b. Marmato – reduced to 5.25% once Wheaton has received 310,000 ounces of gold.
c. Santo Domingo – reduced to 67% once the Company has received 285,000 ounces of gold.
d. Fenix – reduced to 4% once the Company has received 90,000 ounces of gold, with a further reduction to 3.5% once the Company has received 140,000 ounces.
e. Blackwater – reduced to 4% once the Company has received 464,000 ounces of gold.
f. Curipamba – reduced to 33% once the Company has received 145,000 ounces of gold.
g. Goose – reduced to 1.44% once the Company has received 87,100 ounces of gold, with a further reduction to 1% once the Company has received 134,000 ounces.
h. Cangrejos – reduced to 4.4% once the Company has received 700,000 ounces of gold.
i. Platreef - reduced to 50% once the Company has received 218,750 ounces of gold, with a further reduction to 3.125% once the Company has received 428,300
ounces, at which point the per ounce cash payment increases to 80% of the spot price of gold. If certain thresholds are met, including if production through the
Platreef project concentrator achieves 5.5 Mtpa, the 3.125% residual gold stream will terminate.
j. Curraghinalt – reduced to 1.5% once the Company has received 125,000 ounces of gold.
k. Cotabambas – reduced to 16.67% once the Company has received 90 million silver equivalent ounces.
6) The Company is committed to acquire 100% of the first 30,000 ounces of gold produced per annum and 50% thereafter. On May 13, 2023, Minto Metals Corp., announced
the suspension of operations at the Minto mine. Prior to this, the parties were in discussions in connection with a possible restructuring of the Minto PMPA. During that
negotiation period, the cash payment per ounce of gold delivered was set at 90% of spot price. Following the May 13 announcement, and as negotiations were not
successful, the price of deliveries of gold reverts to 50% of spot price as set out in the existing Minto PMPA.
7) Under the Kudz Ze Kayah PMPA, the Company will be entitled to purchase staged percentages of produced gold ranging from 6.875% to 7.375% until 330,000 ounces of
gold are produced and delivered, thereafter reducing to a range of 5.625% to 6.125% until a further 59,800 ounces of gold are produced and delivered, further reducing to
a range of 5% to 5.5% until a further 270,200 ounces of gold are produced and delivered for a total of 660,000 ounces of gold thereafter ranging between 6.25% and
6.75%.
8) On November 15, 2023, the Company entered into the Orion Purchase Agreement (Note 29) to acquire the Platreef and Kudz Ze Kayah PMPAs. Closing of the Orion
Purchase Agreement occurred on February 27, 2024.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [48]
Per Ounce Cash Payment for Silver
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Mineral Stream Interests
Peñasquito
Constancia
Antamina
Other
Los Filos
Zinkgruvan
Stratoni
Neves-Corvo
Aljustrel
Minto
Pascua-Lama
Copper World
Loma de La Plata
Marmato
Cozamin
Blackwater
Curipamba
Mineral Park
Kudz Ze Kayah ⁹
Early Deposit
Toroparu
Cotabambas
Kutcho
Attributable Payable
Production to be
Purchased
Per Ounce Cash
Payment 1
$
$
$
$
$
$
$
$
$
$
25%
100%
33.75%
100%
100%
100%
100%
100% ³
100% ⁴
25%
100%
12.5%
100% ⁶
50% ⁶
50% ⁶
75%
100%
6.875 ⁸
50%
100% ⁶
100%
$
$
4.50
6.20 ²
20%
4.68
4.68
11.54
4.46
50%
4.39
3.90
3.90
4.00
18% ⁷
10%
18% ⁷
18% ⁷
18% ⁷
20%
3.90
5.90
20%
Term of
Agreement
Life of Mine
Life of Mine
Life of Mine
25 years
Life of Mine
Life of Mine
50 years
50 years
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Life of Mine
Date of
Original
Contract
24-Jul-07
8-Aug-12
3-Nov-15
15-Oct-04
8-Dec-04
23-Apr-07
5-Jun-07
5-Jun-07
20-Nov-08
8-Sep-09
10-Feb-10
n/a ⁵
5-Nov-20
11-Dec-20
13-Dec-21
17-Jan-22
24-Oct-23
22-Dec-21
11-Nov-13
21-Mar-16
14-Dec-17
1) The production payment is measured as either a fixed amount per unit of silver delivered, or as a percentage of the spot price of silver on the date of delivery. Contracts
where the payment is a fixed amount per ounce of silver delivered are subject to an annual inflationary increase, with the exception of Loma de La Plata. Additionally,
should the prevailing market price for silver be lower than this fixed amount, the per ounce cash payment will be reduced to the prevailing market price, subject to an
annual inflationary factor.
2) Subject to an increase to $9.90 per ounce of silver after the initial 40-year term.
3) Wheaton only has the rights to silver contained in concentrate containing less than 15% copper at the Aljustrel mine. On September 12, 2023, it was announced that the
production of the zinc and lead concentrates at the Aljustrel mine will be halted from September 24, 2023 until the second quarter of 2025.
4) On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine.
5) Terms of the agreement not yet finalized.
6) Under certain PMPAs, the Company’s attributable silver percentage will be reduced once certain thresholds are achieved:
a. Marmato – reduced to 50% once the Company has received 2.15 million ounces of silver.
b. Cozamin – reduced to 33% once the Company has received 10 million ounces of silver.
c. Blackwater – reduced to 33% once the Company has received 17.8 million ounces of silver.
d. Cotabambas – reduced to 66.67% once the Company has received 90 million silver equivalent ounces.
7) To be increased to 22% once the total market value of all metals delivered to the Company, net of the per ounce cash payment, exceeds the initial upfront cash deposit.
8) Under the Kudz Ze Kayah PMPA, the Company will be entitled to purchase: staged percentages of produced silver ranging from 6.875% to 7.375% until 43.30 million
ounces of silver are produced and delivered, thereafter reducing to a range of 5.625% to 6.125% until a further 7.96 million ounces of silver are produced and delivered,
further reducing to a range of 5% to 5.5% until a further 35.34 million ounces of silver are produced and delivered for a total of 86.6 million ounces of silver and thereafter
ranging between 6.25% and 6.75%.
9) On November 15, 2023, the Company entered into the Orion Purchase Agreement (Note 29) to acquire the Kudz Ze Kayah PMPA. Closing of the Orion Purchase
Agreement occurred on February 27, 2024.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [49]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Per Ounce Cash Payment for Palladium and Platinum and Per Pound for Cobalt
Mineral Stream Interests
Attributable
Payable
Production to be
Purchased
Per Unit of
Measurement Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Palladium
Stillwater
Platreef ⁴
Platinum
Marathon
Platreef ⁴
Cobalt
4.5% ²
5.25% ²
22% ²
5.25% ²
18% ³
30% ²
18% ³
30% ²
Life of Mine
Life of Mine ²
16-Jul-18
7-Dec-21
Life of Mine
Life of Mine ²
26-Jan-22
7-Dec-21
Voisey's Bay
42.4% ²
18% ³
Life of Mine
11-Jun-18
1) The production payment is measured as either a fixed amount per unit of metal delivered, or as a percentage of the spot price of the underlying metal on the date of
delivery.
2) Under certain PMPAs, the Company’s attributable metal percentage will be reduced once certain thresholds are achieved:
a. Stillwater – reduced to 2.25% once the Company has received 375,000 ounces of palladium, with a further reduction to 1% once the Company has received 550,000
ounces.
b. Platreef – reduced to 3% once the Company has received 350,000 ounces of combined palladium and platinum, with a further reduction to 0.1% once the Company
has received a combined 485,115 ounces, at which point the per ounce cash payment increases to 80% of the spot price of palladium and platinum. If certain
thresholds are met, including if production through the Platreef project concentrator achieves 5.5 Mtpa, the 0.1% residual palladium and platinum stream will
terminate.
c. Marathon – reduced to 15% once the Company has received 120,000 ounces of platinum.
d. Voisey’s Bay – reduced to 21.2% once the Company has received 31 million pounds of cobalt.
3) To be increased to 22% once the market value of all metals delivered to Wheaton, net of the per unit cash payment, exceeds the initial upfront cash deposit.
4) On November 15, 2023, the Company entered into the Orion Purchase Agreement (Note 29) to acquire the Platreef PMPA. Closing of the Orion Purchase Agreement
occurred on February 27, 2024.
Other Contractual Obligations and Contingencies
Projected Payment Dates 1
(in thousands)
Payments for mineral
stream interests &
royalty
$
Salobo 2
Marathon
Cangrejos
Marmato
Santo Domingo
Copper World 3
Curipamba
Mineral Park
Platreef
Curraghinalt
Kudz Ze Kayah
Fenix Gold
Mt Todd Royalty
Loma de La Plata
Payments for early
deposit mineral
stream interest
Cotabambas
Toroparu
Kutcho
Leases liabilities
Total contractual
obligations
2024
2025 - 2026
2027 - 2028
After 2028
Total
163,000
15,122
19,300
80,032
-
-
250
115,000
411,500
-
43,500
25,000
17,000
-
-
-
-
898
$
-
136,096
126,000
41,968
260,000
231,150
162,000
-
-
55,000
-
-
-
-
-
-
-
1,211
$
16,000
-
126,000
-
-
-
-
-
-
-
-
-
-
-
-
-
29,000
1,338
$
64,000
-
-
-
-
-
-
-
-
-
-
-
-
32,400
126,000
138,000
29,000
4,769
$
243,000
151,218
271,300
122,000
260,000
231,150
162,250
115,000
411,500
55,000
43,500
25,000
17,000
32,400
126,000
138,000
58,000
8,216
$
890,602
$ 1,013,425
$
172,338
$
394,169
$ 2,470,534
1) Projected payment date based on management estimate. Dates may be updated in the future as additional information is received.
2) As more fully explained below, the expansion payment relative to the Salobo III expansion project is dependent on the timing and size of the throughput expansion.
3) Figure includes contingent transaction costs of $1 million.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [50]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Salobo
The Salobo mine historically had a mill throughput capacity of 24 Mtpa and is currently ramping up to full capacity of
36 Mtpa, expected in the fourth quarter of 2024. On November 21, 2023, the Company and Vale jointly announced
the successful completion of the throughput test for the first phase of the Salobo III expansion project, with the Salobo
complex exceeding an average throughput of 32 Mtpa over a 90-day period. As a result, Wheaton paid Vale $370
million on December 1, 2023, representing the amount due for completion of the first phase of the Salobo III
expansion project.
The remaining balance of the expansion payment is dependent on the timing of completion and will be triggered once
Vale expands actual throughput above 35 Mtpa for a period of 90 days. If actual throughput is expanded above 35
Mtpa by January 1, 2031, Wheaton will be required to make additional payments to Vale based on the size of the
expansion and the timing of completion. The set payments range from a total of $52 million if throughput is expanded
beyond 35 Mtpa by January 1, 2031, to up to $163 million if throughput is expanded beyond 35 Mtpa by January 1,
2025.
In addition, Wheaton will be required to make annual payments of between $5.1 million to $8.5 million for a 10-year
period following payment of the expansion payments if the Salobo mine implements a high-grade mine plan, with
payments to be made for each year the high-grade plan is achieved.
Marathon
Under the terms of the Marathon PMPA, the Company is committed to pay additional upfront cash payments of $151
million (Cdn$200 million), which is to be paid in four staged installments during construction of the Marathon project,
subject to various customary conditions being satisfied.
Cangrejos
Under the terms of the Cangrejos PMPA, which had a closing date of May 16, 2023, the Company is committed to
pay additional upfront consideration of $271 million. Of this amount, $15 million is to be paid 12 months after the
closing date, $4 million can be drawn upon for committed acquisition of surface rights and the remainder is to be paid
in four staged equal installments during construction of the mine, subject to various customary conditions being
satisfied.
Marmato
Under the terms of the Marmato PMPA, the Company is committed to pay Aris Mining additional upfront cash
payments of $122 million, payable during the construction of the Marmato Lower Mine development portion of the
Marmato mine, subject to customary conditions.
Santo Domingo
Under the terms of the Santo Domingo PMPA, the Company is committed to pay Capstone Copper Corp.,
(“Capstone”) additional upfront cash payments of $260 million, which is payable during the construction of the Santo
Domingo project, subject to customary conditions being satisfied, including Capstone attaining sufficient financing to
cover total expected capital expenditures.
Copper World Complex
The Company is committed to pay Hudbay total upfront cash payments of $230 million in two installments, with the
first $50 million being advanced upon Hudbay’s receipt of permitting for the Copper World Complex and other
customary conditions and the balance of $180 million being advanced once project costs incurred on the Copper
World Complex exceed $98 million and certain other customary conditions. Under the Copper World Complex PMPA,
the Company is permitted to elect to pay the deposit in cash or the delivery of common shares. Additionally, the
Company will be entitled to certain delay payments, including where construction ceases in any material respect, or if
completion is not achieved within agreed upon timelines.
Curipamba
Under the terms of the Curipamba PMPA, the Company is committed to pay additional upfront cash payments of
$162.3 million, which includes $250,000 which will be paid to support certain local community development initiatives
around the Curipamba Project. The payments will be payable in four staged installments during construction, subject
to various customary conditions being satisfied.
Mineral Park
Under the terms of the Mineral Park PMPA, the Company is committed to pay total upfront cash payments of $115
million in four payments during construction through three installments of $25 million and a final installment of $40
million.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [51]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Platreef
Under the terms of the Platreef PMPA (Note 29), upon closing of the Orion Purchase Agreement, which occurred on
February 27, 2024, the Company paid a total upfront cash payment of $412 million to Orion Resource Partners
(“Orion”).
Curraghinalt
Under the terms of the Curraghinalt PMPA, the Company is committed to pay additional upfront cash payments of
$55 million to be paid to an affiliate of Dalradian Gold during construction of the Curraghinalt project.
Kudz Ze Kayah
Under the terms of the Kudz Ze Kayah PMPA (Note 29), upon closing of the Orion Purchase Agreement, which
occurred on February 27, 2024, the Company paid a total upfront cash payment of $39 million to Orion with an
additional $5 million contingency payment due to Orion if the KZK project achieves certain milestones.
Fenix
Under the terms of the Fenix PMPA, the Company is committed to pay Rio2 Limited (“Rio2”) additional upfront cash
payments of $25 million, payable subject to Rio2’s receipt of its Environmental Impact Assessment (“EIA”) for the
Fenix Project, and certain other conditions. On December 20, 2023, Rio2 announced that it had received approval for
the EIA, however other conditions remain outstanding.
Mt Todd Royalty
Under the terms of the royalty agreement with Vista, the Company is committed to pay additional upfront cash
payment of $17 million to advance Mt. Todd and for general corporate purposes.
Loma de La Plata
Under the terms of the Loma de La Plata PMPA, the Company is committed to pay Pan American Silver Corp.,
(“PAAS”) total upfront cash payments of $32 million following the satisfaction of certain conditions, including PAAS
receiving all necessary permits to proceed with the mine construction and the Company finalizing the definitive terms
of the PMPA.
Cotabambas
Under the terms of the Cotabambas Early Deposit Agreement, the Company is committed to pay Panoro additional
upfront cash payments of $126 million. Following the delivery of a bankable definitive feasibility study, environmental
study and impact assessment, and other related documents (collectively, the "Cotabambas Feasibility
Documentation"), and receipt of permits and construction commencing, the Company may then advance the
remaining deposit or elect to terminate the Cotabambas Early Deposit Agreement. If the Company elects to
terminate, the Company will be entitled to a return of the portion of the amounts advanced less $2 million payable
upon certain triggering events occurring.
Toroparu
Under the terms of the Toroparu Early Deposit Agreement, the Company is committed to pay a subsidiary of Aris
Mining an additional $138 million, payable on an installment basis to partially fund construction of the mine. Aris
Mining is to deliver certain feasibility documentation. Prior to the delivery of this feasibility documentation, Wheaton
may elect to (i) not proceed with the agreement or (ii) not pay the balance of the upfront consideration and reduce the
gold stream percentage from 10% to 0.909% and the silver stream percentage from 50% to nil. If option (i) is chosen,
Wheaton will be entitled to a return of the amounts advanced less $2 million. If Wheaton elects option (ii), Aris Mining
may elect to terminate the agreement and Wheaton will be entitled to a return of the amount of the deposit already
advanced less $2 million.
Kutcho
Under the terms of the Kutcho Early Deposit Agreement, the Company is committed to pay Kutcho additional upfront
cash payments of $58 million, which will be advanced on an installment basis to partially fund construction of the
mine once certain conditions have been satisfied.
Taxes – Canada Revenue Agency – 2013 to 2016 Taxation Years - Domestic Reassessments
The Company received Notices of Reassessment in 2018, 2019, and 2022 for the 2013 to 2016 taxation years in
which the Canada Revenue Agency (“CRA”) is seeking to change the timing of the deduction of upfront payments
with respect to the Company’s PMPAs relating to Canadian mining assets, so that the cost of precious metal acquired
under these Canadian PMPAs is equal to the cash cost paid on delivery plus an amortized amount of the upfront
payment determined on a units-of-production basis over the estimated recoverable reserves, and where applicable,
resources and exploration potential at the respective mine (the “Domestic Reassessments”).
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [52]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
In total, the Company expects the Domestic Reassessments to have assessed tax, interest and other penalties of
approximately $2 million.
Management believes the Company’s position, as reflected in its filed Canadian income tax returns and consistent
with the terms of the PMPAs, that the cost of the precious metal acquired under the Canadian PMPAs is equal to the
market value while a deposit is outstanding, and the cash cost thereafter, is correct. The Company has filed Notices
of Objection and paid 50% of the disputed amounts in order to challenge the Domestic Reassessments.
Tax Contingencies
Due to the size, complexity and nature of the Company’s operations, various legal and tax matters are outstanding
from time to time, including audits and disputes.
Under the terms of the settlement with the CRA of the transfer pricing dispute relating to the 2005 to 2010 taxation
years (the “CRA Settlement”), income earned outside of Canada by the Company’s foreign subsidiaries will not be
subject to tax in Canada under transfer pricing rules. The CRA Settlement principles apply to all taxation years after
2010 subject to there being no material change in facts or change in law or jurisprudence. The CRA is not restricted
under the terms of the CRA Settlement from issuing reassessments on some basis other than transfer pricing which
could result in some or all of the income of the Company’s foreign subsidiaries being subject to tax in Canada.
It is not known or determinable by the Company when any ongoing audits by CRA of international and domestic
transactions will be completed, or whether reassessments will be issued, or the basis, quantum or timing of any such
potential reassessments, and it is therefore not practicable for the Company to estimate the financial effect, if any, of
any ongoing audits.
From time to time there may also be proposed legislative changes to law or outstanding legal actions that may have
an impact on the current or prior periods, the outcome, applicability and impact of which is also not known or
determinable by the Company.
General
By their nature, contingencies will only be resolved when one or more future events occur or fail to occur. The
assessment of contingencies inherently involves the exercise of significant judgment and estimates of the outcome of
future events. If the Company is unable to resolve any of these matters favorably, there may be a material adverse
impact on the Company’s financial performance, cash flows or results of operations. In the event that the Company’s
estimate of the future resolution of any of the foregoing matters changes, the Company will recognize the effects of
the change in its consolidated financial statements in the appropriate period relative to when such change occurs.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [53]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
28.
Segmented Information
Operating Segments
The Company’s reportable operating segments, which are the components of the Company’s business where
discrete financial information is available and which are evaluated on a regular basis by the Company’s Chief
Executive Officer (“CEO”), who is the Company’s chief operating decision maker, for the purpose of assessing
performance, are summarized in the tables below:
(in thousands)
Gold
Salobo 5
Sudbury 2, 5
Constancia
San Dimas
Stillwater
Other 3
Sales
Cost
of Sales
Depletion
Gain on
Disposal 1
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Year Ended December 31, 2023
$
399,936 $
37,432
95,672
82,656
16,842
11,593
85,382 $
7,596
20,315
26,499
2,989
6,191
71,878 $
20,931
15,318
11,143
4,383
1,250
- $
-
-
-
-
-
242,676 $ 314,555 $ 2,681,419
262,485
29,554
80,265
75,357
144,722
56,157
211,469
13,853
603,689
5,137
8,905
60,039
45,014
9,470
4,152
Total gold interests
$
644,131 $ 148,972 $ 124,903 $
- $
370,256 $ 494,613 $ 3,984,049
Silver
Peñasquito 5
Antamina
Constancia
Other 4
$
101,514 $
86,855
50,913
99,312
19,010 $
17,203
13,197
22,886
17,442 $
25,838
13,364
12,347
- $
-
-
5,027
65,062 $
43,814
24,352
69,106
82,504 $
69,652
37,716
74,272
276,232
519,530
179,583
582,113
Total silver interests
$
338,594 $
72,296 $
68,991 $
5,027 $
202,334 $ 264,144 $ 1,557,458
Palladium
Stillwater
Platinum
Marathon
Cobalt
Voisey's Bay 5
$
$
$
18,496 $
3,360 $
6,145 $
- $
8,991 $
15,135 $
220,667
- $
- $
- $
- $
- $
- $
9,451
14,824 $
3,543 $
14,395 $
- $
(3,114) $
15,071 $
350,816
Total mineral stream interests $ 1,016,045 $ 228,171 $ 214,434 $
5,027 $
578,467 $ 788,963 $ 6,122,441
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
Consolidated
$
(38,165) $
(22,744)
(7,261)
(5,510)
34,271
(1,414)
(36,025)
(16,675)
(7,039)
(4,230)
32,007
(6,192)
$
(40,823) $
(38,154) $
908,744
$
537,644 $ 750,809 $ 7,031,185
1) See Note 13 for more information.
2) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.
3) Where a gold interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the
Company’s CEO for the purpose of assessing performance, the gold interest has been summarized under Other gold interests. Other gold interests comprised of the
operating Marmato gold interest as well as the non-operating Minto, Copper World, 777, Santo Domingo, Fenix, Blackwater, Curipamba, Marathon, Goose, Cangrejos and
Curraghinalt 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.
4) Where a silver interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the
Company’s CEO for the purpose of assessing performance, the silver interest has been summarized under Other silver interests. Other silver interests comprised of the
operating Los Filos, Zinkgruvan, Neves-Corvo, Marmato and Cozamin silver interests as well as the non-operating Stratoni, Aljustrel, Minto, Pascua-Lama, Copper World,
777, Navidad, Blackwater, Curipamba and Mineral Park 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.
5) As it relates to mine operator concentration risk:
a. The counterparty obligations under the Salobo, Sudbury and Voisey’s Bay PMPAs are guaranteed by the parent company Vale. Total revenues relative to Vale
PMPAs during the year ended December 31, 2023 were 45% of the Company’s total revenue.
b. The counterparty obligations under the Peñasquito PMPA are guaranteed by the parent company Newmont Corporation (“Newmont”). Total revenues relative to
Newmont during the year ended December 31, 2023 were 10% of the Company’s total revenue.
c. The counterparty obligations under the Constancia and 777 PMPA are guaranteed by the parent company Hudbay Minerals Inc (“Hudbay”). Total revenues relative to
Hudbay during the year ended December 31, 2023 were 15% of the Company’s total revenue.
Should any of these mine operators become unable or unwilling to fulfill their obligations under their agreements with the Company, there could be a material adverse impact
on the Company including, but not limited to, the Company’s revenue, net income and cash flows from operations
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [54]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Year Ended December 31, 2022
Sales
Cost
of Sales
Depletion
Impairment
Reversal /
Gain on
Disposal 1
Net
Earnings
(Loss)
Cash Flow
From
Operations
$
296,145 $
39,211
54,868
75,238
16,583
47,653
68,211 $
8,706
12,520
26,053
2,983
19,995
54,677 $
23,753
8,206
10,858
3,933
1,252
- $
-
-
-
-
(1,719)
173,257 $ 227,933 $
6,752
34,142
38,327
9,667
24,687
30,789
42,348
49,186
13,600
27,610
Total
Assets
2,383,262
283,416
95,583
155,865
215,852
494,143
(in thousands)
Gold
Salobo 5
Sudbury 2, 5
Constancia
San Dimas
Stillwater
Other 3
Total gold interests
$
529,698 $ 138,468 $
102,679 $
(1,719) $
286,832 $ 391,466 $
3,628,121
Silver
Peñasquito 5
Antamina 5
Constancia
Other 4, 5
$
174,635 $
107,794
44,798
143,776
34,657 $
21,622
12,440
46,339
28,344 $
34,684
12,937
36,640
- $
-
-
166,198
111,634 $ 139,978 $
51,488
19,421
226,995
85,824
32,358
96,251
293,674
545,368
192,947
453,096
Total silver interests
$
471,003 $ 115,058 $
112,605 $
166,198 $
409,538 $ 354,411 $
1,485,085
Palladium
Stillwater
Platinum
Marathon
Cobalt
$
32,160 $
5,687 $
6,018 $
- $
20,455 $
26,472 $
226,812
$
- $
- $
- $
- $
- $
- $
9,428
Voisey's Bay
$
32,192 $
8,408 $
10,650 $
- $
13,134 $
28,178 $
357,573
Total mineral stream interests $ 1,065,053 $ 267,621 $
231,952 $
164,479 $
729,959 $ 800,527 $
5,707,019
Other
General and administrative
Share based compensation
Donations and community investments
Finance costs
Other
Income tax
Total other
Consolidated
$
(35,831) $
(20,060)
(6,296)
(5,586)
7,449
(509)
(35,073)
(18,411)
(5,706)
(4,135)
6,393
(171)
$
(60,833) $
(57,103) $
1,052,887
$
669,126 $
743,424 $
6,759,906
1) See Notes 13 for more information.
2) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.
3) Where a gold interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the
Company’s CEO for the purpose of assessing performance, the gold interest has been summarized under Other gold interests. Other gold interests comprised of the
operating Minto and Marmato gold interests as well as the non-operating 777, Copper World, 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.
4) Where a silver interest represents less than 10% of the Company’s sales, gross margin or aggregate asset book value and is not evaluated on a regular basis by the
Company’s CEO for the purpose of assessing performance, the silver interest has been summarized under Other silver interests. Other silver interests comprised of the
operating Los Filos, Zinkgruvan, Neves-Corvo, Aljustrel, Minto, Cozamin and Marmato silver interests, the non-operating 777, Loma de La Plata, Stratoni, Pascua-Lama,
Copper World, Blackwater and Curipamba silver interests and the previously owned Yauliyacu and Keno Hill silver interests. The Stratoni mine was placed into care and
maintenance during Q4-2021. 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. 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.
5) As it relates to mine operator concentration risk:
a. The counterparty obligations under the Salobo, Sudbury and Voisey’s Bay PMPAs are guaranteed by the parent company Vale. Total revenues relative to Vale
PMPAs during the year ended December 31, 2022 were 35% of the Company’s total revenue.
b. The counterparty obligations under the Antamina PMPA and the Yauliyacu PMPA (which is included as part of Other silver interests) are guaranteed by the parent
company Glencore plc (“Glencore”) and its subsidiary. Total revenues relative to Glencore PMPAs during the year ended December 31, 2022 were 14% of the
Company’s total revenue.
c. The counterparty obligations under the Peñasquito PMPA are guaranteed by the parent company Newmont Corporation (“Newmont”). Total revenues relative to
Newmont during the year ended December 31, 2022 were 16% of the Company’s total revenue.
Should any of these mine operators become unable or unwilling to fulfill their obligations under their agreements with the Company, there could be a material adverse impact
on the Company including, but not limited to, the Company’s revenue, net income and cash flows from operations
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [55]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
Geographical Areas
The Company’s geographical information, which is based on the location of the mining operations to which the
mineral stream interests relate, are summarized in the tables below:
Sales
Year Ended
Dec 31, 2023
(in thousands)
North America
Carrying Amount at
December 31, 2023
Gold
Interests
Silver
Interests
Palladium
Interests
Platinum
Interests
Cobalt
Interests
Total
Canada
$
60,163
6% $
708,402 $
141,292 $
- $
9,451 $
350,816 $ 1,209,961
United States
35,337
3%
211,470
971
220,667
200,146 20%
144,719
396,490
Mexico
Europe
Greece
Portugal
Sweden
UK
South America
Argentina/Chile 1
Argentina
Chile
Brazil
Peru
Ecuador
Colombia
-
33,375
48,177
-
-
-
-
0%
3%
5%
0%
0%
0%
0%
-
-
-
20,198
-
17,516
27,017
-
-
-
253,514
10,889
56,538
-
-
399,936 39%
2,681,419
233,442 23%
-
5,469
0%
1%
80,265
39,455
41,583
699,107
3,779
6,883
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
433,108
541,209
-
17,516
27,017
20,198
253,514
10,889
56,538
2,681,419
779,372
43,234
48,466
Consolidated
$ 1,016,045 100% $ 3,984,049 $ 1,557,458 $
220,667 $
9,451 $
350,816 $ 6,122,441
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
Sales
Year Ended
Dec 31, 2022
(in thousands)
North America
Gold
Interests
Silver
Interests
Palladium
Interests
Platinum
Interests
Cobalt
Interests
Total
Carrying Amount at
December 31, 2022
Canada
$ 124,710 12% $
668,011 $
450 $
- $
9,428 $
United States
Mexico
Europe
Greece
Portugal
Sweden
South America
Argentina/Chile 1
Argentina
Chile
Brazil
Peru
Ecuador
Colombia
48,743
5%
266,367 25%
3,291
25,728
41,613
0%
2%
4%
- 0%
- 0%
- 0%
296,145 28%
253,441 24%
- 0%
5,015
0%
215,852
566
226,812
155,863
423,103
-
-
-
-
-
56,536
2,383,263
-
18,366
29,108
253,514
10,889
-
-
95,584
10,181
42,831
738,310
3,671
7,108
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
357,573 $ 1,035,462
443,230
578,966
-
-
-
-
-
-
-
-
-
-
-
-
-
18,366
29,108
253,514
10,889
56,536
2,383,263
833,894
13,852
49,939
Consolidated
$ 1,065,053 100% $ 3,628,121 $ 1,485,085 $
226,812 $
9,428 $
357,573 $ 5,707,019
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [56]
Notes to the Consolidated Financial Statements
Years Ended December 31, 2023 and 2022 (US Dollars)
29.
Subsequent Events
Declaration of Dividend
The Company has revised its dividend policy, fixing the quarterly dividend to be $0.155 per common share. The
declaration, timing, amount and payment of future dividends remain at the discretion of the Board of Directors.
On March 14, 2024, the Board of Directors declared a dividend in the amount of $0.155 per common share, with this
dividend being payable to shareholders of record on April 3, 2024 and is expected to be distributed on or about April
15, 2024. The Company has implemented a dividend reinvestment plan (“DRIP”) whereby shareholders can elect to
have dividends reinvested directly into additional Wheaton common shares based on the Average Market Price, as
defined in the DRIP.
Closing of the Acquisition of Existing Platreef & Kudz Ze Kayah PMPAs
On November 15, 2023, the Company announced that it had entered into a definitive agreement with certain entities
advised by Orion Resource Partners (“Orion”) to acquire existing streams in respect of Ivanhoe Mines’ Platreef
Project (the “Platreef Streams”) and BMC Minerals’ Kudz Ze Kayah Project (the “Kudz Ze Kayah Streams”). The
Company paid $450 million to Orion on February 27, 2024, being the closing date of the acquisition of the Platreef
Gold PMPA, Platreef Palladium and Platinum PMPA and the KZK PMPA. An additional $5 million contingency
payment is due to Orion if the KZK project achieves certain milestones.
The Platreef Project is located in Johannesburg, South Africa. Under the Platreef Gold PMPA, the Company is
entitled to purchase 62.5% of the payable gold until a total of 218,750 ounces of gold has been delivered to the
Company, at which point the Company will be entitled to purchase 50% of the payable gold production until a total of
428,300 ounces of gold has been delivered. Once the threshold has been achieved, the Company will be entitled to
purchase 3.125% of the payable gold production if certain conditions are met. Under the Platreef Gold PMPA, the
Company will make ongoing payments for the gold ounces delivered equal to $100 per ounce until a total of 428,300
ounces of gold have been delivered, increasing to 80% of the spot price of gold thereafter.
Under the Platreef palladium and platinum PMPA (the “Platreef PGM PMPA”), the Company is entitled to purchase
5.25% of the payable palladium and platinum production until a total of 350,000 ounces of combined palladium and
platinum have been received. Once the threshold has been achieved, the stream will be reduced to 3.0% of the
payable palladium and platinum production until 485,115 ounces have been delivered, at which point the stream will
be reduced to 0.1% of the payable palladium and platinum production if certain conditions are met. Under the Platreef
PGM PMPA, the Company will make ongoing payments for the palladium and platinum ounces delivered equal to
30% of the respective spot prices until 485,115 combined ounces have been received, increasing to 80% of the spot
price of palladium and platinum thereafter.
The Kudz Ze Kayah stream is located in Yukon, Canada. Under the Kudz Ze Kayah PMPA (the “KZK PMPA”), the
Company is entitled to purchase staged percentages of produced gold and produced silver ranging from 6.875% to
7.375% depending on the timing of such deliveries, until 330,000 ounces of gold and 43.30 million ounces of silver
are produced and delivered, reducing to a range of 5.625% to 6.125% until a further 59,800 ounces of gold and 7.96
million ounces of silver are produced and delivered, further reducing to a range of 5.000% to 5.500% until a further
270,200 ounces of gold and 35.34 million ounces of silver are produced and delivered (for a total of 660,000 ounces
of gold and 86.60 million ounces of silver), and thereafter ranging between 6.25% and 6.75%. Under the KZK PMPA,
the Company will make ongoing payments for the gold and silver ounces delivered equal to 20% of the spot gold and
silver price. Under the KZK PMPA, BMC Minerals has a buyback option to repurchase 50% of the stream for a period
of 30 days after June 22, 2026, for $36 million.
Acquisition of DeLamar Royalty
On February 20, 2024, the Company purchased a 1.5% net smelter return royalty interest in the DeLamar and Florida
mountain project located in Idaho, United States from Integra Resources Corporation for $9.75 million to be paid in
two equal installments. The first installment of $4.875 million was paid on closing on March 7, 2024. The second
installment is expected to be paid four months after the first installment.
WHEATON PRECIOUS METALS 2023 ANNUAL REPORT - FINANCIAL STATEMENTS [57]
Corporate InformationDIRECTORSGeorge Brack, ChairJaimie DonovanPeter GillinChantal GosselinJeane HullGlenn IvesCharles JeannesMarilyn SchonbernerRandy SmallwoodOFFICERSRandy SmallwoodPresident & Chief Executive OfficerCurt BernardiSenior Vice President, Legal & Corporate SecretaryGary BrownSenior Vice President & Chief Financial OfficerHaytham HodalySenior Vice President, Corporate DevelopmentTRANSFER AGENTTSX Trust Company1600 – 1066 West Hastings StreetVancouver, BC V6E 3X1Toll-free in Canada & USA:1 800 387 0825Outside of Canada & USA:1 416 682 3860Email: shareholderinquiries@tmx.comAUDITORSDeloitte LLPVancouver, CanadaINVESTOR CONTACTEmma MurrayVice President, Investor RelationsTelephone: 1 604 684 9648Toll Free: 1 844 288 9878Email: info@wheatonpm.comWheaton Precious Metals is a trademark of Wheaton Precious Metals Corp. in Canada, the United States and certain other jurisdictions.The Premier Precious Metals InvestmentWheaton 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. The company 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.CANADA – HEAD OFFICEWheaton Precious Metals Corp.Suite 35001021 West Hastings StreetVancouver, BC V6E 0C3CanadaT: 1 604 684 9648F: 1 604 684 3123Toronto Stock Exchange: WPMNew York Stock Exchange: WPMLondon Stock Exchange: WPMStock ExchangeListing:CAYMAN ISLANDS OFFICEWheaton Precious MetalsInternational Ltd.Suite 300, 94 Solaris AvenueCamana BayP.O. Box 1791 GT, Grand CaymanCayman Islands KY1-1109 Wheaton Precious Metals Corp.
Suite 3500 - 1021 West Hastings St.
Vancouver, BC Canada V6E 0C3
T: 1 604 684 9648
F: 1 604 684 3123
ANNUAL
REPORT
2023
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