The premier precious
metals investment
Wheaton is the world’s premier precious metals streaming
company with the highest-quality portfolio of long-life, low-cost
assets. Its business model offers investors commodity price
leverage and exploration upside but with a much lower risk profile
than a traditional mining company. Wheaton delivers amongst the
highest cash operating margins in the mining industry, allowing it
to pay a competitive dividend and continue to grow through
accretive acquisitions. As a result, Wheaton has consistently
outperformed gold and silver, as well as other mining investments.
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.
Wheaton Precious Metals | 2024 Annual Report
Letter from the President
& Chief Executive Officer
As 2024 came to a close, I reflected on two decades of
remarkable growth and achievement at Wheaton. Last
year, as we celebrated our 20th anniversary as a precious
metals streaming company, we remained as nimble and
entrepreneurial as we were in our very first year of existence
two decades ago, completing several material streaming
transactions that added future ounces in new territories,
while once again increasing our returns to shareholders.
In 2004, I was part of the team that pioneered the idea of
streaming and led to the creation of Wheaton. Since then,
the impact of the streaming model on the mining industry
has been striking. Billions of dollars have been invested by
the sector in some of the world’s largest mines, ensuring
new and sustainable production of the world’s most critical
metals. Wheaton, alone, has to date accounted for more
than $12 billion of streaming transactions in that time,
supporting projects in 18 countries.
Having started out as a pure silver streaming company, we
have grown and continuously evolved into the Wheaton of
today—a company with a diversified, international portfolio
of gold, silver, palladium, platinum, and cobalt assets. Today,
despite the entry of more than 20 new competitors into
the streaming business, Wheaton continues to maintain
a leading market share, contributing over 40% of the
committed capital to the mining industry since inception.
While our company has evolved, our core mandate remains
the same: to be a partner of choice, and to create value for
all stakeholders. I am pleased to provide some highlights
from 2024 that reflect this approach and share our vision
for the year ahead.
Markets & Financial Performance
We wrapped up the year in an exceptionally solid financial
position, having generated over $1 billion in operating cash
flows—representing a new annual record and underscoring
the effectiveness of our business model in leveraging rising
commodity prices. Our diversified portfolio of long-life, low-
cost assets delivered incredibly strong production levels of
over 633,000 gold equivalent ounces (“GEOs”), exceeding
the top end of our annual production guidance range of
620,000 GEOs. We also hit progressively increasing all-
time share price highs—and have since seen those records
broken again in the first quarter of 2025.
During 2024, the characteristics of gold as a store of value
and a comfort metal of choice in times of global turbulence
were widely recognized by the market, as we reached new
heights with record breaking gold prices on the back of
strong central bank purchases and a turn to positive inflows
for the ETFs. This showed a broad recognition that gold
holds an important place in any portfolio.
While the strong gold price presents challenges in acquiring
new streaming partnerships due to its impact on valuations,
the Wheaton team demonstrated exceptional skill and
creativity in identifying and successfully adding high-quality,
accretive streams. Notably, we completed the Montage-
Kone transaction, the largest precious metals streaming
transaction by a single company in nearly a decade.
Accretive Growth
In 2024, Wheaton pulled both levers of return for
shareholders in the year: dividends and growth. In the first
quarter, we transitioned to a new progressive dividend
policy, reinforcing our confidence in the sustainability and
growth potential of Wheaton. We declared a record level
of dividends in the year and continue to return more value
to shareholders through our dividend as a percentage of
revenues than any other precious metals company.
Strategic investments and prudent fiscal management
continue to enable us to navigate streaming opportunities with
confidence, as we work with partners to unlock and create
value. Despite the challenges related to strong precious metals
prices, in 2024 we announced over US$900 million in new
of total streaming transactions
since inception
>$12B
in operating cash flows generated
in 2024—a new annual record
>$1B
RANDY SMALLWOOD,
President & CEO
Wheaton Precious Metals | 2024 Annual Report
Wheaton Precious Metals | 2024 Annual Report
streaming and royalty transactions, further diversifying our
strategic partnerships and the geography of our portfolio.
Following our investment in the Ivanhoe Mines Platreef
project in South Africa, announced in late 2023, we took
further steps into Africa in 2024 with two transactions
on some of the most exciting gold projects in the global
development pipeline, welcoming Montage and Allied Gold
as new long-term partners.
The Koné Project stands out as one of the premier gold
projects in Africa with essential permits already in place
and an impressive scale. Supported by strong shareholder
backing from the Lundin Group and Zijin Mining, Koné
is expected to significantly boost Wheaton’s near-term
annual gold production—adding an estimated 60,000
ounces of gold ounces to our pipeline in its first five years
of production—and further strengthening our peer-leading
growth trajectory.
Late in 2024, we entered into a streaming agreement with
Allied Gold to advance the construction of its Kurmuk project,
which is set to be the first commercial gold mine in Ethiopia.
We believe this fully permitted, high quality development
project offers significant exploration potential, supported by
a team at Allied with a proven operating track record.
Last year laid a solid foundation for our sector-leading
growth profile, positioning Wheaton to achieve a level
of precious metals production unprecedented in the
streaming industry. Our focus on streaming agreements
rather than royalties provides additional value to Wheaton’s
shareholders by delivering leverage to ever-increasing gold
prices, and with the addition of the streams announced in
2024, including the Kone and Kurmuk projects, we are now
projecting peer-leading production growth of approximately
40% by 2029.
Diversified, High-Quality Portfolio and
Sustainable Partnerships
Wheaton’s estimated growth profile is unmatched in our
sector and is built on a diverse range of assets, rather than
relying on a few. Over the next five years, we expect to
see inaugural production from nine different assets in our
portfolio, all of which have received their key permits and
are either nearing or already well into construction. In the
current financial year alone, several new partner mines are
expected to come into production, including Artemis Gold’s
Blackwater, B2Gold’s Goose, Waterton’s Mineral Park and
Ivanhoe’s Platreef. In fact, Blackwater already announced
its first pour of gold and silver in January and is progressing
steadily toward commercial production, which is expected
in the second quarter of 2025.
In 2024, gold equivalent production exceeded the upper
limits of our guidance range, primarily resulting from
stronger than expected production at Salobo—which
achieved record quarterly production in the fourth quarter—
due to higher gold grades and recoveries, as well as
higher gold grades at Constancia from the mining of the
Pampacancha deposit.
Wheaton has achieved sustained leadership in what, over
time, has become an increasingly competitive streaming
market. Wheaton’s streaming model allows our mining
partners to realize more value from their by-product metals
and provides our investors with some of the highest
sustainable margins in the industry. We have always strived
to be a partner of choice and believe our mantra that the
stronger our partners are, the stronger we are, has been
a cornerstone of our success over the past two decades.
As we’ve built our long-standing, diversified portfolio of
assets, Wheaton has consistently adhered to a disciplined
and methodical approach to valuation, with a strong
emphasis on contract structure and security to ensure our
growth is both accretive and sustainable for all stakeholders.
When it comes to entering new jurisdictions, our focus is on
streaming precious metals, not political risk, and we ensure
that anticipated returns are appropriately aligned with the
risks associated with each project.
Backed by a well-respected in-house technical team,
Wheaton remains an agile and innovative force in the
streaming space that engages with our mining partners and
listens to their needs. We have built enduring relationships
and efficient processes that allow for quick access to capital,
a strong balance sheet, and vibrant Community Investment
Programs with our partners.
Upholding the Highest Standards of
Sustainable Practices
While we don’t own or operate mines in our portfolio, we
have a unique opportunity to influence and encourage our
mining partners to operate in a responsible manner. We
embed ESG considerations in our decision-making processes
and business operations, upholding industry-leading best
practices. Once we have a streaming agreement in place, we
work with our partners to focus on investing in communities
to drive positive outcomes.
With success comes responsibility and I’m incredibly
proud that our business model has given us the capacity to
contribute to the ongoing development and prosperity of
communities surrounding our mining partners’ operations.
projected production growth by 2029
~40%
Wheaton Precious Metals | 2024 Annual Report
In 2024, Wheaton contributed more than US$8.5 million to
over 130 charitable causes and initiatives globally.
Wheaton was the first streaming company to start funding
Community Investment Programs, paving the way for
the rest of the industry to follow. We all benefit from
communities that are generous enough to share their
mineral resources with the world, so for us it is a priority to
work with our mining partners to ensure local communities
also benefit.
I am also extremely proud that our company continues to
be recognized for our commitment to excellence in ESG
practices by a number of external ranking agencies. We
were recognized twice by Corporate Knights’ last year. First,
when we ranked among the top 10 companies on Corporate
Knights’ annual list of the Best 50 Corporate Citizens in
Canada, and then as one of the 2024 Global 100 Most
Sustainable Corporations. The recognition we receive from
external ratings agencies and NGOs provides us with the
confidence that we are not only talking the talk but driving
meaningful change on the ground.
As a long-term investor in the mining industry, we recognize
the role we can play in advancing solutions that support
reducing environmental impacts, decarbonization efforts,
and climate adaptation and mitigation strategies. The
minerals uncovered through mining continue to grow in
importance to society, and it is essential that we refine
and improve our practices to responsibly deliver these
crucial commodities.
Constant innovation is key to achieving this goal, and it’s the
driving force behind our Future of Mining Challenge, which
we launched in September 2024. The initiative seeks to
support mining to become more efficient while minimizing
its environmental impact through the acceleration of the
adoption of efficient and clean technologies.
For the inaugural challenge, we invited companies from
around the world to submit solutions focused on identifying
eligible technologies with the potential to reduce
greenhouse gas emissions across mining operations.
Earlier this month, we announced ReThink Milling as our first
winner for their Conjugate Anvil Hammer Mill and MonoRoll
technologies, which have the potential to revolutionize the
milling process. We hope the Future of Mining Challenge
award funds give the company a boost to propel this
technology further forward.
The Future is Golden
Without a doubt, 2024 was a year of remarkable milestones
and transformative growth for us, setting a solid foundation
for what we anticipate will be another strong financial
year ahead.
With record gold prices, record share prices, production
exceeding guidance, a robust balance sheet and growing
demand for streaming capital, Wheaton is in the strongest
position it has ever been in. As the leading precious metals
streaming company with the largest share of revenue
derived from precious metals, I believe Wheaton offers an
optimal opportunity for long-term exposure in this sector
and I am confident that Wheaton is strategically positioned
to continue driving its industry-leading growth trajectory.
Before closing, I want to take this opportunity to bid
farewell to a close friend and colleague, Gary Brown,
who this year is stepping down from his role as Chief
Financial Officer after nearly 17 years at Wheaton. Gary has
played an integral role in the company’s financial growth,
strategic direction, and risk management, all contributing
to Wheaton’s long-term success. His legacy will be marked
by a strong financial foundation, a culture of excellence,
and a focus on sustainable growth. I am immensely grateful
for his contribution and wish him all the best in this next
chapter of life.
As part of a planned leadership succession, Vincent Lau,
Wheaton’s long-time Vice President of Finance, will be
stepping into the role as our new CFO. I am thrilled to
welcome Vincent to our senior leadership team as we
continue to build on our success.
Finally, and in summary, I would like to express my gratitude
to everyone who has been such an integral part of our
success. From our humble beginnings in 2004, Wheaton has
been at the leading edge of something truly positive and
exciting—and I can’t wait to see what the future brings.
RANDY SMALLWOOD,
President & CEO
March 13, 2025
contributed to over 130 charitable
causes and initiatives globally in 2024
$8.5M+
Wheaton Precious Metals | 2024 Annual Report
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [2]
Management’s Discussion and Analysis of Results of Operations and Financial Condition for the Year Ended
December 31, 2024
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, 2024 and
related notes thereto which have been prepared in accordance with IFRS Accounting Standards as issued by the
International Accounting Standards Board (“IFRS Accounting Standards”). 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 72 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 13, 2025.
Table of Contents
Highlights ....................................................................................................................................................................... 5
Outlook ........................................................................................................................................................................... 7
Mineral Stream Interests ................................................................................................................................................ 8
Amendments to Mineral Stream Interests ............................................................................................................... 9
Acquisition of Mineral Stream Interests ................................................................................................................... 9
Updates on the Operating Mineral Stream Interests ............................................................................................. 10
Updates on the Development Stage Mineral Stream Interests ............................................................................. 10
Mineral Royalty Interests .............................................................................................................................................. 13
Long-Term Equity Investments .................................................................................................................................... 14
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
Impairment of Mineral Stream Interests .................................................................................................................... 29
Gain on Disposal of Mineral Stream Interest ............................................................................................................ 29
General and Administrative ...................................................................................................................................... 30
Share Based Compensation ..................................................................................................................................... 30
Donations and Community Investments ................................................................................................................... 31
Other Income (Expense) .......................................................................................................................................... 31
Finance Costs ........................................................................................................................................................... 31
Income Tax Expense (Recovery) ............................................................................................................................. 32
Liquidity and Capital Resources ................................................................................................................................... 32
Share Capital ............................................................................................................................................................... 41
Financial Instruments ................................................................................................................................................... 41
Risks and Uncertainties ............................................................................................................................................... 42
Critical Accounting Estimates ....................................................................................................................................... 55
Future Changes to Accounting Policies ....................................................................................................................... 57
Non-GAAP Measures ................................................................................................................................................... 58
Subsequent Events ...................................................................................................................................................... 62
Controls and Procedures ............................................................................................................................................. 62
Attributable Reserves and Resources .......................................................................................................................... 64
Cautionary Note Regarding Forward-Looking Statements ........................................................................................... 72
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [3]
Overview
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. The Company is listed on the New York Stock
Exchange (“NYSE”), the Toronto Stock Exchange (“TSX”) and the London Stock Exchange (“LSE”) and trades under
the symbol WPM.
As of December 31, 2024, the Company has entered into 40 long-term agreements¹ (32 of which are precious metal
purchase agreements, or “PMPAs”, three of which are early deposit PMPAs, and five of which are royalty
agreements), with 33 different mining companies, related to precious metals and cobalt relating to 18 mining assets
which are currently operating, 25 which are at various stages of development and 3 which have been placed into care
and maintenance or have been closed, located in 18 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 fixed by contract, generally at or below the prevailing market price. Attributable metal
production as referred to in this MD&A is the metal production to which Wheaton is entitled pursuant to the various
PMPAs. During the year ended December 31, 2024, the per ounce price paid by the Company for the metals
acquired under the agreements averaged $440 for gold, $4.98 for silver, $179 for palladium and $2.71 per pound for
cobalt. The primary drivers of the Company’s financial results are the volume of metal production at the various
mining assets to which the PMPAs relate and the price realized by Wheaton upon the sale of the metals received.
Throughout this MD&A, the production and sales volume of gold, silver and palladium are reported in ounces, while
cobalt is reported in pounds. 1
1 Minto has been removed from the mine count due to Minto Metals Corp., being placed in receivership.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [4]
Operational Overview
Q4 2024
Q4 2023
Change
2024
2023
Change
Units produced
Gold ounces
117,526
112,926
4.1 %
379,530
374,152
1.4 %
Silver ounces
5,740
4,206
36.5 %
20,807
17,191
21.0 %
Palladium ounces
2,797
4,209
(33.5)% 15,632
15,800
(1.1)%
Cobalt pounds
393
215
83.1 % 1,289
673
91.5 %
Gold equivalent ounces 2
187,493
164,796
13.8 %
635,007
584,127
8.7 %
Units sold
Gold ounces
87,662
115,011
(23.8)%
332,701
327,336
1.6 %
Silver ounces
4,307
3,175
35.7 %
16,072
14,326
12.2 %
Palladium ounces
4,434
3,339
32.8 % 17,270
13,919
24.1 %
Cobalt pounds
485
288
68.4 % 970
1,074
(9.7)%
Gold equivalent ounces 2
142,561
155,059
(8.1)%
532,468
506,020
5.2 %
Change in PBND and Inventory 3
Gold ounces
24,868
(7,623)
(32,491)
29,209
20,530 (8,679)
Silver ounces
528
316
(212)
1,458
(211) (1,669)
Palladium ounces
(1,747)
1,059
2,806 (2,227)
1,568 3,795
Cobalt pounds
(118)
(87)
31 233
(446) (679)
Gold equivalent ounces 2
29,293
(4,030)
(33,323)
46,378
15,990 (30,388)
Per unit metrics
Sales price
Gold per ounce
$
2,677
$
2,006
33.5 % $
2,393
$
1,968
21.6 %
Silver per ounce
$
31.28
$
23.77
31.6 % $
28.49
$
23.64
20.5 %
Palladium per ounce
$
1,008
$
1,070
(5.8)% $
984
$
1,329
(25.9)%
Cobalt per pound
$
13.66
$
12.92
5.7 % $
14.18
$
13.81
2.7 %
Gold equivalent per ounce 2
$
2,669
$
2,022
32.0 % $
2,413
$
2,008
20.2 %
Cash costs 4
Gold per ounce 4
$
440
$
437
(0.7)% $
440
$
455
3.3 %
Silver per ounce 4
$
5.16
$
5.02
(2.8)% $
4.98
$
5.05
1.4 %
Palladium per ounce 4
$
184
$
198
7.1 % $
179
$
241
25.7 %
Cobalt per pound 4, 5
$
2.59
$
3.14
17.5 % $
2.71
$
3.30
17.9 %
Gold equivalent per ounce 2, 4
$
441
$
437
(0.9)% $
436
$
451
3.3 %
Cash operating margin 4
Gold per ounce 4
$
2,237
$
1,569
42.6 % $
1,953
$
1,513
29.1 %
Silver per ounce 4
$
26.12
$
18.75
39.3 % $
23.51
$
18.59
26.5 %
Palladium per ounce 4
$
824
$
872
(5.5)% $
805
$
1,088
(26.0)%
Cobalt per pound 4
$
11.07
$
9.78
13.2 % $
11.47
$
10.51
9.1 %
Gold equivalent per ounce 2, 4
$
2,228
$
1,585
40.6 % $
1,977
$
1,557
27.0 %
Total revenue
$
380,516
$
313,471
21.4 % $
1,284,639
$ 1,016,045
26.4 %
Gold revenue
$
234,690
$
230,716
1.7 % $
796,051
$
644,131
23.6 %
Silver revenue
$
134,733
$
75,465
78.5 % $
457,830
$
338,594
35.2 %
Palladium revenue
$ 4,468
$ 3,574
25.0 % $ 16,999
$ 18,496
(8.1)%
Cobalt revenue
$ 6,625
$ 3,716
78.3 % $ 13,759
$ 14,824
(7.2)%
Net earnings
$
88,148
$
168,435
(47.7)% $ 529,140
$
537,644
(1.6)%
Per share
$
0.194 $
0.372
(47.8)% $
1.167 $
1.187
(1.7)%
Adjusted net earnings 4
$
198,969
$
164,569
20.9 % $
640,170
$
533,051
20.1 %
Per share 4
$
0.439 $
0.363
20.9 % $
1.412 $
1.177
20.0 %
Operating cash flows
$
319,471
$
242,226
31.9 % $
1,027,581
$
750,809
36.9 %
Per share 4
$
0.704 $
0.535
31.6 % $
2.266 $
1.658
36.7 %
Dividends paid ⁶
$
70,318
$
67,950
3.5 % $
281,166
$
271,744
3.5 %
Per share
$
0.155 $
0.150
3.3 % $
0.620 $
0.600
3.3 %
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: $2,000 per ounce gold; $23.00 per
ounce silver; $1,000 per ounce palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
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-GAAP measures beginning on page 58 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).
6) As at December 31, 2024, cumulative dividends of $2,347 million have been declared and paid by the Company.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [5]
Highlights
Operations
For the three months ended December 31, 2024, relative to the comparable period of the prior year:
o
Production amounted to 187,500 gold equivalent ounces ("GEOs"), an increase of 14%, primarily the
result of higher production from Salobo and Peñasquito, with Salobo achieving record quarterly
production.
o
Sales volumes amounted to 142,600 GEO's, a decrease of 8%, with the higher production being offset
by a 40% increase to the number of GEOs produced but not delivered (“PBND”), primarily a result of the
increased production at Peñasquito and Salobo during Q4-2024.
o
Revenue increased 21% or $67 million to $381 million (62% gold, 35% silver, 1% palladium and 2%
cobalt), representing a record for the Company, with the increase being primarily due to a 32% increase
in realized commodity prices.
o
Gross margin amounted to $247 million (65% of revenue), representing an increase of $70 million (an
8% increase as a percentage of revenue).
o
The Company recognized an impairment charge of $109 million relative to the Voisey’s Bay PMPA due
to a significant and sustained decline in market cobalt prices.
o
After reflecting the impairment charge, net earnings amounted to $88 million, a decrease of $80 million,
with additional factors including a $35 million global minimum tax (“GMT”) expense, partially offset by
the increased gross margin.
o
Adjusted net earnings increased 21% or $34 million to $199 million, representing a record for the
Company, with the increase being due to the increased gross margin, partially offset by the $35 million
GMT expense.
o
Record operating cashflow amounting to $319 million, with the $77 million increase being the result of
the higher gross margin.
For the year ended December 31, 2024 relative to the prior year:
o
Production amounted to 635,000 GEOs, an increase of 9%, with increased production from Salobo and
Peñasquito being partially offset by lower production at San Dimas, the temporary cessation of
production from Aljustrel and the suspension of operations at Minto.
o
Sales volumes amounted to 532,500 GEOs, an increase of 5% resulting from the higher production,
partially offset by a 40% increase to the number of ounces PBND, primarily a result of the increased
production at Peñasquito and Salobo during Q4-2024.
o
Revenue increased 26% or $269 million to $1,285 million (62% gold, 36% silver, 1% palladium and 1%
cobalt), representing a record for the Company, with the increase being primarily due to a 20% increase
in realized commodity prices coupled with the 5% increase in sales volumes.
o
Gross margin amounted to $803 million (62% of revenue), representing an increase of $229 million (a
6% increase as a percentage of revenue).
o
The Company recognized an impairment charge of $109 million relative to the Voisey’s Bay PMPA due
to a significant and sustained decline in market cobalt prices.
o
After reflecting the impairment charge, net earnings amounted to $529 million, a decrease of $9 million,
with additional factors including a $114 million GMT expense, partially offset by higher gross margin.
o
Adjusted net earnings increased 20% or $107 million to $640 million, representing a record for the
Company, with the increase being the result of the higher gross margin more than offsetting the $114
million GMT expense.
o
Record operating cashflow amounting to $1,028 million, with the $277 million increase being due
primarily to the higher gross margin.
On March 13, 2025, the Board of Directors declared a dividend in the amount of $0.165 per common share,
representing a 6.5% increase.
As at December 31, 2024, the Company has invested $10.5 billion into metal streams since inception and
recovered $11.3 billion.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [6]
Corporate Development
On February 20, 2024, the Company acquired a 1.5% Net Smelter Royalty (“NSR”) from Integra Resources
Corporation (“Integra”) on the DeLamar and Florida Mountain project located in Idaho, United States (the
“DeLamar project”).
On February 27, 2024, the Company closed the previously announced agreement with certain entities
advised by Orion Resource Partners (“Orion”) to acquire existing PMPAs in respect of Ivanhoe Mines’
Platreef project (the “Platreef PMPA”) and BMC Minerals’ Kudz Ze Kayah project (the “Kudz Ze Kayah
PMPA”) (the “Orion Purchase Agreement”).
On October 21, 2024, the Company amended the Fenix PMPA, increasing the amount of attributable gold it
is entitled to under the contract.
On October 23, 2024, the Company entered into a PMPA with Montage Gold Corp. (“Montage”) in respect to
the Koné project located in Côte d’Ivoire.
On December 5, 2024, the Company entered into a PMPA with Allied Gold Corporation (“Allied”) in respect
to the Kurmuk project located in Ethiopia.
On March 7, 2025, the Company amended the Blackwater PMPA, modifying the payable silver profile under
the stream.
Other
During the fourth quarter of 2024:
o
The Company made a quarterly dividend payment of $70 million.
o
The Company made total upfront cash payments of $115 million relative to the Marmato PMPA
($40 million), Cangrejos PMPA ($6 million), Mineral Park PMPA ($25 million) and Kurmuk PMPA
($44 million).
o
The Company received a repayment of the upfront cash payment of $13 million relative to the El
Domo-Curipamba project (the “El Domo project”) PMPA (the “El Domo PMPA”), with this amount to
be re-advanced at a later date.
During 2024:
o
The Company made four quarterly dividend payments totaling $279 million.
o
The Company made total upfront cash payments of $652 million relative to the Platreef and Kudz
Ze Kayah PMPAs ($450 million), Cangrejos PMPA ($16 million), Mineral Park PMPA ($75 million),
Marmato ($40 million), Mt Todd royalty ($17 million), DeLamar royalty ($10 million) and the newly
entered Kurmuk PMPA ($44 million).
o
The Company received a repayment of the upfront cash payment of $13 million relative to the El
Domo PMPA, with this amount to be re-advanced at a later date.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [7]
Outlook1
Wheaton's estimated attributable production in 2025, the estimated attributable gold equivalent production in 2029, as
well as the estimated 5-year average annual gold equivalent production for 2029 to 2033, is as follows:
Metal
2024
Actual
Production 1,2
2025
Production Guidance
2029
Target
Production
Guidance 2
2030-2034
Average Annual
Production
Guidance 2
Gold Ounces
379,530
350,000 to 390,000
Silver Ounces (‘000s)
20,807
20,500 to 22,500
Other Metals (GEOs)
12,406
12,500 to 13,500
Gold Equivalent Ounces 3
632,017
600,000 to 670,000
870,000
Over 950,000
2025 Production Outlook
In 2025, Wheaton provides 2025 production guidance between 600,000 and 670,000 GEOs2. The midpoint of the
2024 guidance range compared to the midpoint of the 2025 guidance range suggests year-over-year production
growth of approximately 10%, in alignment with the Company's previously stated long-term growth forecast. This
forecast growth is driven by stronger attributable production from Antamina, the start-up of several development
projects, and a stable forecast for Salobo production. This increase is expected to be partially offset by lower
production from Peñasquito and Constancia.
Attributable production is forecast to increase at Antamina in 2025 due to expected higher silver grades, as a result of
a higher ratio of copper-zinc ore versus copper-only ore being mined in 2025. Wheaton's 2025 forecast also includes
inaugural production from four projects currently in development; Blackwater, Goose, Mineral Park and Platreef, all of
which are expected to commence production in 2025. In addition, the Aljustrel mine is anticipated to re-start
production in the third quarter of 2025, following the announcement made on September 12, 2023, that as a result of
low zinc prices, the production of zinc and lead concentrates would be temporarily halted from September 24, 2023
onward. Increased production from the forementioned assets is anticipated to be offset by lower production at
Peñasquito, as mining transitions from the Chile Colorado to the main Peñasco pit, which contains lower relative
silver grades. In addition, lower production levels are anticipated at Constancia, predominantly due to additional gold
benches being mined in late 2024 that were brought forward from the 2025 plan, coupled with the expectation that
total mill ore feed from Pampacancha will be approximately 25% in 2025, lower than the typical one-third in prior
years as Pampacancha approaches depletion. After a record-breaking quarter to end 2024, production levels at
Salobo are expected to remain consistent, with higher throughput levels attributable to the Salobo III expansion
project anticipated to be offset by lower gold grades.
Long-Term Production Outlook
Production is forecast to increase by approximately 40% over the next five years to 870,000 GEOs2 by 2029, due to
growth from multiple Operating assets including Antamina, Aljustrel and Marmato; Development assets that are in
construction, including the Blackwater, Mineral Park, Goose, Platreef, Fenix, Kurmuk, and Koné projects; and Pre-
development assets including the El Domo3 and Copper World projects.
From 2030 to 2034, attributable production is forecast to average over 950,000 GEOs2 annually and incorporates
additional incremental production from Pre-development assets including the Santo Domingo, Cangrejos, Kudz ze
Kayah, Marathon and Kutcho projects, in addition to the Mt. Todd, Black Pine and DeLamar royalties.
Not included in Wheaton’s long-term forecast and instead classified as ‘optionality’, is potential future production from
nine other assets including Pascua-Lama and Navidad, in addition to expansions at Salobo outside of the Salobo III
mine expansion project.
Liquidity
From a liquidity perspective, the $818 million of cash and cash equivalents as at December 31, 2024 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, platinum and cobalt contained in concentrate or doré prior to
smelting or refining deductions. Gold equivalent forecast production for 2025 and the longer-term outlook are based on the
following updated commodity price assumptions: $2,600 per ounce gold, $30 per ounce silver, $950 per ounce palladium, $950
per ounce of platinum and $13.50 per pound cobalt. For purposes of comparison, 2024 actual production numbers have been
adjusted to reflect 2025 commodity price assumptions.
3 Previously referred to as the Curipamba project in this MD&A.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [8]
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
Attributable
Production
Production
Payment
Per
Unit 2,3
Paid to
Dec 31, 2024 3 To be Paid 1, 2
Total ³
Cash Flow
Generated to
Date ³
Units
Received &
Sold to Date ³
Q4-2024
PBND 3, 4
Term ¹
Gold
Salobo
Vale
BRA
75%
$429
$ 3,429,360 $ 144,000 $ 3,573,360 $ 2,608,381 2,194,349 96,626
LOM
Sudbury ⁵
Vale
CAN
70%
$400
623,572
-
623,572
321,670 294,822 9,312 20 years ⁵
Constancia
Hudbay
PER
50%
$425
135,000
-
135,000
318,029 227,626 5,819
LOM
San Dimas
FM
MEX variable ⁶
$637
220,000
-
220,000
306,707 266,008 2,583
LOM
Stillwater ⁷
Sibanye
USA
100%
18%
237,880
-
237,880
100,110 68,785 4,968
LOM
Other
Copper World
Hudbay
USA
100%
$450 - 39,296 39,296 - - -
LOM
Marmato ⁸
Aris
CO
10.5% ⁸
18% 85,416 77,584 163,000 15,915 9,746 138
LOM
Santo Domingo
Capstone
CHL
100% ⁹
18% 28,434 260,000 288,434 1,944 759 -
LOM
Fenix
Rio2
CHL
22% ¹⁰
18% 25,000 125,000 150,000 - - -
LOM
Blackwater
Artemis
CAN
8% ¹¹
35% 340,000 - 340,000 - - -
LOM
El Domo ³
Silvercorp
ECU
50% ¹²
18%
(268) 128,904 128,636 1,203 467 -
LOM
Marathon
Gen Mining
CAN
100% ¹³
18% 21,857 97,297 119,154 - - -
LOM
Goose
B2Gold
CAN
2.78% ¹⁴
18% 83,750 - 83,750 - - -
LOM
Cangrejos
Lumina
ECU
6.6% ¹⁵
18% 44,900 255,100 300,000 - - -
LOM
Platreef
Ivanhoe
SA
62.5% ¹⁶
$100 275,300 - 275,300 - - -
LOM ¹⁶
Curraghinalt
Dalradian
UK
3.05% ¹⁷
18% 20,000 55,000 75,000 - - -
LOM
Kudz Ze Kayah
BMC
CAN 6.875% ¹⁸
20% 13,860 1,800 15,660 - - -
LOM
Koné
Montage
CIV
19.5% ¹⁹
20% - 625,000 625,000 - - -
LOM
Kurmuk
Allied
ETH
6.7% ²⁰
15% 43,750 131,250 175,000 - - -
LOM
$ 5,584,061 $ 1,808,981 $ 7,393,042 $ 3,673,959 3,062,562 119,446
Silver
Peñasquito
Newmont
MEX
25%
$4.56 $ 485,000 $ - $ 485,000 $ 1,552,036 86,927 1,750
LOM
Antamina
Glencore
PER 33.75% ²¹
20%
900,000
-
900,000
766,280 47,750 673
LOM
Constancia
Hudbay
PER
100%
$6.26
294,900
-
294,900
276,804 19,520 334
LOM
Other
Los Filos
Equinox
MEX
100%
$4.74 4,463 - 4,463 43,304 2,307 51 25 years ²²
Zinkgruvan
Lundin
SWE
100%
$4.75 77,866 - 77,866 541,367 35,098 236
LOM
Stratoni
Eldorado
GRC
100%
$11.54 57,500 - 57,500 155,868 10,378 -
LOM
Neves-Corvo
Lundin
PRT
100%
$4.50 35,350 - 35,350 181,734 10,386 77 50 years ²³
Aljustrel
Almina
PRT
100% ²⁴
50% 2,451 - 2,451 48,811 4,274 - 50 years ²³
Pascua-Lama
Barrick CHL/ARG
25%
$3.90 625,000 - 625,000 372,767 19,775 -
LOM
Copper World
Hudbay
USA
100%
$3.90 - 191,855 191,855 - - -
LOM
Navidad
PAAS
ARG
12.5%
$4.00 10,788 32,400 43,188 - - -
LOM
Marmato ⁸
Aris
CO
100% ⁸
18% 7,600 4,400 12,000 3,068 150 4
LOM
Cozamin
Capstone
MEX
50% ²⁵
10% 150,000 - 150,000 55,322 2,474 135
LOM
Blackwater
Artemis
CAN
50% ¹¹
18% 140,800 - 140,800 - - -
LOM
El Domo ³
Silvercorp
ECU
75% ¹²
18%
(96) 46,596 46,500 - - -
LOM
Mineral Park
Waterton
US
100%
18% 75,000 40,000 115,000 - 2,149 -
LOM
Kudz Ze Kayah
BMC
CAN 6.875% ¹⁸
20% 24,640 3,200 27,840 - - -
LOM
$ 2,891,262 $ 318,451 $ 3,209,713 $ 3,997,361 241,188 3,260
Palladium
Stillwater ⁷
Sibanye
USA
4.5% ²⁶
18% $ 262,120 $ - $ 262,120 $ 162,751 115,058 4,439
LOM
Platreef
Ivanhoe
SA
5.25% ¹⁶
30% 78,700 - 78,700 - - -
LOM ¹⁶
$ 340,820 $ - $ 340,820 $ 162,751 115,058 4,439
Platinum
Marathon
Gen Mining
CAN
22% ¹³
18% $ 9,367 $ 41,699 $ 51,066 $ - - -
LOM
Platreef
Ivanhoe
SA
5.25% ¹⁶
30% 57,500 - 57,500 - - -
LOM ¹⁶
$ 66,867 $ 41,699 $ 108,566 $ - - -
Cobalt
Voisey's Bay
Vale
CAN
42.4% ²⁷
18% $ 390,000 $ - $ 390,000 $ 60,961 3,968 678
LOM
Total PMPAs Currently Owned
$ 9,136,810 $ 2,169,131 $ 11,305,941 $ 7,895,032
Terminated / Matured PMPAs
1,358,502 - $ 1,358,502 3,376,971
Total
$ 10,495,312 $ 2,169,131 $ 12,664,443 $ 11,272,003
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; CIV = Côte d'Ivoire, CO = Colombia; ECU = Ecuador; ETH = Ethiopia, GRC = Greece; MEX = Mexico; PER = Peru; PRT = Portugal; SA = South
Africa; SWE = Sweden; USA = United States; UK = United Kingdom; and LOM = Life of Mine.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [9]
2)
Please refer to the section entitled “Contractual Obligations and Contingencies – Mineral Stream Interests” on page 36 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 38 of this MD&A for details of when the
remaining upfront consideration is forecasted to be paid. Certain contracts, including Santo Domingo and El Domo (previously referred to as Curipamba in the MD&A),
contain delay ounce provisions whereby should construction of the mine not be completed by an agreed to date, the mine operator must compensate the Company for the
delay until certain conditions are satisfied by delivering additional ounces. The value of these ounces on the date first due, net of amounts owed to the mine operator, is
treated as a reduction to the upfront consideration paid. Sale of the resulting ounces received is treated as revenue, with the associated cost of sales being equal to the fair
value of the ounces on the date received.
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.
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, 2024, the Company has received approximately $322 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)
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.
9)
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%. The units
sold under Santo Domingo relate to ounces received due to the delay ounce provision (see footnote 3, above).
10) On October 21, 2024, the Company amended the Fenix PMPA. Under the original agreement, the Company was to acquire an amount of gold equal to 6% of the gold
production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life
of mine. Under the revised agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total) (subject to adjustment if there are
delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds
under the original Fenix PMPA (as described). Rio2 has a one-time option to terminate the requirement to deliver the incremental gold production from the end of 2027 until
the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the
original Fenix PMPA.
11) 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%.
12) Once the Company has received 145,000 ounces of gold under the El Domo 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%. The units sold under El Domo relate to ounces received due to the delay
ounce provision (see footnote 3, above).
13) 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%.
14) 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%.
15) 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%.
16) 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.
17) 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%.
18) 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%.
19) Once the Company has received 400,000 ounces of gold under the Koné PMPA, subject to adjustment if there are delays in deliveries relative to an agreed schedule, the
attributable gold production will reduce to 10.8% until an additional 130,000 ounces of gold has been delivered, after which the stream drops to 5.4%.
20) Once the Company has received 220,000 ounces of gold under the Kurmuk PMPA, the Company’s attributable gold production will be reduced to 4.8%. During any period
in which debt exceeding $150 million ranks ahead of the gold stream, the stream percentage increases to 7.15% and decreases to 5.25% once the drop-down threshold is
reached.
21) 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%.
22) The term of the Los Filos PMPA ends on October 15, 2029.
23) The term of the Neves-Corvo and Aljustrel PMPAs ends on June 5, 2057.
24) 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 third quarter of 2025.
25) Once Wheaton has received 10 million ounces of silver under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33%.
26) 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%.
27) 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%.
Significant amendment and acquisitions of mineral stream interests during Q4-2024 are outlined below. The
percentage of payable production and other key PMPA terms for all mineral stream interests are described in the
Contractual Obligations and Contingencies section of this MD&A starting on page 36 of the MD&A.
Amendments to Mineral Stream Interests
Amendment to the Fenix PMPA
On October 21, 2024, the Company amended the Fenix PMPA, in exchange for which, the Company is committed to
pay additional upfront cash consideration of $100 million, payable in two equal installments, subject to various
customary conditions being satisfied. To date, no amounts have been advanced under the Fenix PMPA amendment.
Acquisition of Mineral Stream Interests
Acquisition of Koné PMPA
On October 23, 2024, the Company entered into a PMPA (the “Koné Gold PMPA”) with Montage Gold Corp.
(“Montage”) in respect of its 90% owned Koné Gold project located in Côte d’Ivoire. Under the terms of the Koné
Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million, payable in four
equal installment payments during construction, subject to certain conditions, including that all permits have been
obtained. To date, no amounts have been advanced under the Koné Gold PMPA.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [10]
Acquisition of Kurmuk PMPA
On December 5, 2024, the Company entered into a PMPA (the “Kurmuk Gold PMPA”) with Allied Gold Corporation
(“Allied”) in respect of its Kurmuk project located in Ethiopia. Under the terms of the agreement, Wheaton is
committed to pay Allied total upfront cash payments of $175 million, payable in four equal installment payments
during construction, subject to certain conditions. The first payment of $44 million was paid on December 19, 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.
On March 4, 2025, Vale informed the Company that it had achieved a sustained throughput capacity of over 35 Mtpa
over a 90-day period, indicating completion of the second phase of the Salobo III expansion project. Pending
Wheaton's review of the final completion test, the Company anticipates advancing the remaining balance of the
expansion payment to Vale in the amount of $144 million within thirty days of the date of receipt.
Constancia
On March 28, 2024, Hudbay reported that Constancia’s expected mine life has been extended by three years to 2041
as a result of the successful conversion of mineral resources to mineral reserves with the addition of a further mining
phase at the Constancia pit following positive geotechnical drilling and studies in 2023. There remains potential for
future mine life extensions based on the mineral resources that have not yet been converted to mineral reserves.
Los Filos
On February 19, 2025, Equinox Gold Corp., (“Equinox”) reported that Equinox reached consensus on terms for new
agreements with the three local communities. Two communities have ratified and signed new long-term agreements
and one community remains outstanding. If Equinox, is unable to satisfactorily complete these agreements with all
three communities in the very near term, Equinox will suspend operations at Los Filos indefinitely.
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.
Zinkgruvan and Neves-Corvo
On December 9, 2024, Lundin Mining Corporation (“Lundin Mining”) announced that it has signed a definitive
agreement to sell its Neves-Corvo operation in Portugal and Zinkgruvan operation in Sweden to Boliden AB
(“Boliden”). The transaction is anticipated to close in mid-2025, subject to the completion of customary conditions and
regulatory approvals.
Voisey’s Bay – Underground Mine Extension
On December 3, 2024, Vale reported that it has completed construction and commission of the Voisey’s Bay
underground mine extension. The expansion transitioned Voisey’s Bay from open pit to underground mining. The
project involved the development of two underground mines, Reid Brook and Eastern Deeps, which will deliver ore for
processing at Vale’s Long Harbour refinery. The full ramp-up is expected by the second half of 2026.
Stillwater – Suspension of Operations at Stillwater West
On September 12, 2024, Sibanye Stillwater (“Sibanye”) announced that as a result of low palladium prices it was
placing the Stillwater West operations into care and maintenance, while using Stillwater East and East Boulder
operations to improve efficiencies that could get Stillwater West back to production as prices permit.
Based on Sibanye’s Q4 MD&A, the Company’s management estimates that with the Stillwater West operations in
care and maintenance, 2025 production relative to the Stillwater PMPA will be approximately 40% to 45% lower than
historical levels.
Updates on the Development Stage Mineral Stream Interests
Copper World
On August 29, 2024, Hudbay Minerals Inc., (“Hudbay”) announced that it has received an Aquifer Protection Permit
for the Copper World project from the Arizona Department of Environmental Quality. On January 2, 2025, Hudbay
announced that it has received an Air Quality Permit for the Copper World project from the Arizona Department of
Environmental Quality. Hudbay noted that the issuance of this permit is a significant milestone as it is the final major
permit required for the development and operation of the Copper World project. Hudbay also noted that the receipt of
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [11]
the three key state permits is one of the three key prerequisites for Hudbay as they work toward a sanctioning
decision on the Copper World project in 2026. Hudbay commenced a minority joint venture partner process early in
2025, and it is anticipated that any minority joint venture partner would participate in the funding of definitive feasibility
study activities in 2025 as well as in the final project design and construction for Copper World.
Marmato Mine
On July 16, 2024, Aris Mining Corporation (“Aris”) reported that the Lower Mine project is on track for first gold pour
by the end of 2025, followed by an approximate six-month ramp-up period. On October 7, 2024, Aris provided an
update that the Marmato Lower Mine expansion is progressing on schedule, with the site access road and portal face
now complete and the contractor preparing to initiate work on the twin declines. On January 15, 2025, Aris
announced the construction of the Marmato Lower Mine continues to progress. On March 13, 2025, Aris announced
an enhanced Marmato expansion, whereby the design of the carbon-in-pulp processing facility will be upgraded by
25% from 4,000 tpd to 5,000 tpd. Aris reports that construction remains on track, and production is expected to start
ramping up in the second half of 2026.
Santo Domingo
On July 31, 2024, Capstone Copper Corp. (“Capstone”) published the results of an updated feasibility study for the
Santo Domingo project, outlining an optimized mine plan, updated capital and operating cost estimates, and a 19-
year mine life supported by higher mineral reserve estimates. As a result, total gold production is expected to average
35,000 ounces per year for the first seven years of production, an increase from the 30,000 ounces per year estimate
outlined in the 2020 feasibility study, and 22,000 ounces per year for the life of mine, up from 17,000 ounces per
year. With construction completed at the Mantoverde project, a deposit situated 35 kilometers northeast of the Santo
Domingo project, Capstone plans to advance several value enhancement initiatives within the Mantoverde-Santo
Domingo district that are not yet included in the 2024 feasibility study. The first of these initiatives is a newly
announced two-year, $25 million exploration program at Mantoverde, aimed at supporting the two future processing
centers between Mantoverde and Santo Domingo. On January 20, 2025, Capstone announced plans to progress
partnership discussions and its financing strategy throughout 2025. A potential project sanctioning decision is not
anticipated prior to 2026. On February 19, 2025, Capstone reported the Mantoverde exploration drill program
commenced in Q4 2024.
Fenix
On October 2, 2024, Rio2 Limited (“Rio2”) announced that its Chilean subsidiary has received the principal Sectorial
Permits it requires to begin construction at the Fenix project. These Sectorial Permits are: 1) Mining Methods; 2)
Process Plant; 3) Waste Dumps & Stockpiles; and 4) Closure Plan. Rio2 has indicated that these Sectorial Permits
represent the last governmental authorization required to enable the start of the construction phase and subsequent
operation of the Fenix project.
On January 13, 2025, Rio2 reported that construction activities recommenced in October 2024 and construction is
expected to be completed in November 2025. Bulk earthworks at the plant side have been completed and concrete
bases for the footings of the processing plant have been poured. Earthworks have commenced on the leach pad
stability platform, which forms the base of the Phase 1 leach pad. The leach pad has been designed to be built in four
phases. Rio2 notes that first gold production is currently expected in January 2026.
Blackwater
On November 6, 2024, Artemis Gold Inc., (“Artemis”) announced that overall construction was over 95% complete as
of September 30, 2024. Construction of the tailings storage facility is ready to allow for the commencement of
commissioning of the plant. Artemis reported that the initial mining fleet has been commissioned and pre-stripping of
the mine, as well as the construction of haul roads, are well advanced. On January 22, 2025, Artemis announced that
commissioning of the grinding circuit at the Blackwater project has advanced and milling first ore commenced, with
the first pour of gold and silver being announced on January 29, 2025. Commercial production remains targeted for
Q2 2025.
El Domo
On August 6, 2024, Silvercorp Metals Inc. (“Silvercorp”) announced a key milestone that the Ministry of Energy and
Mines of the Government of Ecuador had issued a Resolution of Change of Phase for the El Domo project. The
Resolution of Change of Phase advances the legal status of the El Domo project from the economic evaluation phase
to the exploitation phase and allows for the start of construction and subsequent operation of the El Domo project.
The Change of Phase for a medium-scale project is equivalent to the Exploitation Agreement for large-scale mines in
Ecuador.
During the second quarter of 2024, an Ecuadorian court rejected a constitutional protective action (the “Constitutional
Action”) filed by third parties against Ministry of Environment, Water and Energy Transition of the Government of
Ecuador (“MAATE”) and concluded that the consultative process followed by MAATE in issuing the various permits
relative to the El Domo project complied with applicable legal requirements. An appeal was granted and a hearing
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [12]
took place at the Superior Court of Bolivar (the “Superior Court”) on October 17, 2024. On November 15, 2024
Silvercorp announced that the Superior Court rejected the appeal.
On January 7, 2025, Silvercorp reported it is targeting to bring the project into production in the second half of 2026
and have recently awarded the earthworks contract to a large international mining contractor with over ten years of
experience working in Ecuador.
Marathon
On July 31, 2024, Generation Mining Limited (“Gen Mining”) reported that the federal government has approved
amendments to Schedule 2 of the Metal and Diamond Mining Effluent Regulations (“Schedule 2”) which will allow for
the construction of specific water management structures and operation of key infrastructure for the Marathon project.
On August 7, 2024, Gen Mining announced a key milestone with the receipt of the Fisheries Act Authorization (“FAA”)
for the Marathon project. The FAA, issued by Fisheries and Oceans Canada, approves Gen Mining’s plan to avoid,
mitigate and offset impacts to fish and fish habitat related to the development of the project. This authorization
represents the final federal approval required to commence construction of the tailings storage facility and water
management structures.
Gen Mining has indicated that it continues to work on advancing steps required to enable the receipt of all key
permits.
Goose
On February 19, 2025, B2Gold Corp. (“B2Gold”) announced that all planned construction activities for 2024 were
completed and project construction and development continue to progress on track to achieve first gold pour at the
Goose Project in the second quarter of 2025, followed by a ramp up to commercial production in the third quarter of
2025. Following the successful completion of the 2024 sea lift, the construction of the 163 kilometer Winter Ice Road
was completed in February 2025. As of February 18, 2025, the Winter Ice Road is fully operational with the
transportation of all materials from the Marine Laydown Area to the Goose Project site expected to be completed by
May 15, 2025.
Cangrejos
On January 28, 2025, Lumina Gold Corp., (“Lumina”), announced significant progress regarding power infrastructure
required for the Cangrejos project as it received approval of the definitive feasibility level designs for connection to the
national grid for the future energy demand of the project from Corporación Eléctrica del Ecuador. Lumina noted that
the lead engineering contractor for the feasibility study has completed 92% of the estimated work and the feasibility
study remains on schedule for completion during Q2 2025. Lumina noted also that work for the Environmental Impact
Study is progressing on schedule which will allow for its submission to the Government of Ecuador in mid-2025.
Lumina is targeting receiving its environmental license by early 2026.
Platreef
On October 30, 2024, Ivanhoe Mines (“Ivanhoe”) reported that construction of the Phase 1 concentrator was
completed on schedule early in the third quarter. First ore is scheduled for the second half of 2025, while
underground development prioritizes development to accelerate Phase 2. Ivanhoe also stated that work continues on
the updated feasibility study to accelerate the startup of Phase 2, as well as the preliminary economic assessment of
the previously announced Phase 3 expansion to 10 Mtpa processing capacity. On February 18, 2025, Ivanhoe
reported positive results from the two independent technical studies completed on the Phase 2 and Phase 3
expansions. The study outlines Phase 1 production from Q4-2025, followed by the Phase 2 expansion two years later
in Q4-2027. Ivanhoe noted that the Phase 3 expansion is expected to rank Platreef as one of the largest primary
PGM producers on a platinum equivalent basis.
Curraghinalt
On May 3, 2024, the Planning Appeals Commission & Water Appeals Commission (“the commission”) in Northern
Ireland concluded that the water abstraction and impoundment licenses (“water licenses”) relative to the Curraghinalt
Project have been rescinded and that license applications would need to be resubmitted and subsequent public
inquiry referrals held. Dalradian Gold Ltd., has re-submitted two new applications for the abstraction licenses and
those licenses were received by the commission on September 5, 2024. The commission has set new dates to
resume the public inquiry process beginning on January 13, 2025. On January 15, 2025, the public inquiry hearing
was adjourned until March 26, 2025.
Koné
On December 18, 2024, Montage announced that it has launched the construction of its Koné project, with first gold
production scheduled for Q2-2027. Significant progress is being made to rapidly advance and derisk the project as
early works are well underway and major construction works are set to commence in the coming weeks, once further
construction equipment arrives to site. The Koné project is fully permitted.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [13]
Kurmuk
On January 22, 2025, Allied reported that earthworks at the plant terrace advanced during the quarter to near
completion, while civil works and structural, mechanical, plate, and piping contractor mobilizations are in progress.
Main camp construction, along with engineering and procurement activities, progressed during the quarter, with the
project remaining on track and on budget. On February 20, 2025, Allied reported Kurmuk is expected to start
production by mid-2026.
Mineral Park
During the quarter, Waterton’s Origin Mining continued to advance the Mineral Park project, with the installation of
new crushing and milling circuits nearing completion. Project construction continues to progress on track for first ore
to the mill in Q2 2025, followed by a ramp up to commercial production during the second half of 2025. At project
completion the fully refurbished mill capacity will be 16.5 Mtpa.
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:
Mine
Owner
Attributable
Production to be
Purchased
Early Deposit Mineral
Stream Interests
Location of
Mine
Upfront
Consideration
Paid to Date 1
Upfront
Consideration
to be Paid 1, 2
Total
Upfront
Consideration¹
Gold
Silver
Term of
Agreement
Date of
Original
Contract
Toroparu
Aris Mining
Guyana $
15,500
$
138,000
$
153,500
10%
50% Life of Mine 11-Nov-13
Cotabambas
Panoro
Peru
14,000
126,000
140,000
25% ³ 100% ³ Life of Mine 21-Mar-16
Kutcho
Kutcho
Canada
16,852
58,000
74,852 100% 100% Life of Mine 14-Dec-17
$
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 38 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, 2024:
Royalty Interests
Mine
Owner
Location of
Mine
Royalty 1
Total
Upfront
Consideration 2
Term of
Agreement
Date of
Original
Contract
Metates
Chesapeake
Mexico
0.5% NSR
$
3,000
Life of Mine
07-Aug-2014
Brewery Creek 3
Victoria Gold
Canada
2.0% NSR
3,529
Life of Mine
04-Jan-2021
Black Pine 4
Liberty Gold
USA
0.5% NSR
3,600
Life of Mine
10-Sep-2023
Mt Todd 5
Vista
Australia
1.0% GR
20,000
Life of Mine
13-Dec-2023
DeLamar 6
Integra
USA
1.5% NSR
9,750
Life of Mine
20-Feb-2024
$
39,879
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.
4)
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.
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.
6)
Under the DeLamar royalty, if completion is not achieved by January 1, 2029, the DeLamar Royalty will increase annually by 0.15% of net smelter returns to a maximum of
2.7% of net smelter returns.
To date, no revenue has been recognized and no depletion has been taken with respect to these royalty agreements.
Metates
On November 13, 2024, Chesapeake Gold Corp., (“Chesapeake”) announced that it’s lawsuit against the Dirección
General de Minas of Mexico (“DGM”) in response to the DGM’s cancellation of the Metates San Vicente 3 mineral
concession was dismissed by the North Center III and Auxiliary Regional Chamber of the Federal Court of
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [14]
Administrative Justice. Chesapeake noted that San Vicente 3 is one of 12 mineral concessions comprising the
Metates project. Chesapeake indicated that in the event Chesapeake is unsuccessful in reinstating San Vicente 3,
Chesapeake’s current resource estimate for Metates and the ability to develop the Metates project may be materially
affected. On December 2, 2024, Chesapeake noted that it had filed an appeal with the Collegiate Court in Mexico of
the decision.
Black Pine
On September 25, 2024, Liberty Gold announced the receipt of a Hardrock Prospector Permit covering four areas
located directly adjacent to the Black Pine project.
DeLamar
On January 30, 2025, Integra Resources Corp., (“Integra”) highlighted Idaho’s Strategic Permitting, Efficiency, and
Economic Development Act (the “SPEED” Act). The SPEED Act is an important step toward advancing important
Idaho based mining projects, such as DeLamar.
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, 2024 and
December 31, 2023:
December 31
December 31
(in thousands)
2024
2023
Common shares held
$
98,190
$
246,026
Warrants held
785
652
Total long-term equity investments
$
98,975
$
246,678
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.
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, 2024 and 2023 is presented below:
Common Shares Held
Three Months Ended December 31, 2024
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Sep 30, 2024
Cost of
Additions
Proceeds of
Disposition
Fair Value
Adjustment
Gains
(Losses) 1
Fair Value at
Dec 31, 2024
Realized Loss
on Disposal
Kutcho
18,640
11.11% $ 1,451 $ - $ - $ (220) $ 1,231 $ -
B2Gold
12,025
0.91%
37,235
-
-
(7,819)
29,416
-
Silvercorp
3,759
1.73%
16,401
-
-
(5,116)
11,285
-
Aris
4,715
2.76%
21,865
-
-
(5,350)
16,515
-
Other
24,421
18,755
-
(3,433)
39,743
-
Total
$ 101,373 $ 18,755 $ - $ (21,938) $ 98,190 $ -
1)
Fair Value Gains (Losses) are reflected as a component of Other Comprehensive Income (“OCI”).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [15]
Three Months Ended December 31, 2023
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Sep 30, 2023
Cost of
Additions
Proceeds of
Disposition
Fair Value
Adjustment
Gains
(Losses) 1
Fair Value at
Dec 31, 2023
Realized Loss
on Disposal
Kutcho
18,640
13.27% $ 1,724 $ - $ - $ (173) $ 1,551 $ -
Hecla
34,980
5.66%
136,773
-
-
31,482
168,255
-
B2Gold
12,025
0.92%
34,686
-
-
3,408
38,094
-
Aris
4,715
3.43%
10,776
-
-
4,803
15,579
-
Other
16,619
4,146
-
1,782
22,547
-
Total
$ 200,578 $ 4,146 $ - $ 41,302 $ 246,026 $ -
1)
Fair Value Gains (Losses) are reflected as a component of OCI.
Year Ended December 31, 2024
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Dec 31, 2023
Cost of
Additions
Proceeds of
Disposition 1
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2024
Realized Gain
(Loss) on
Disposal
Kutcho
18,640
11.11% $ 1,551 $ - $ - $ (320) $ 1,231 $ -
Hecla
-
-
168,255
-
(177,088)
8,833
-
35,768
B2Gold
12,025
0.91%
38,094
-
-
(8,678)
29,416
-
Silvercorp
3,759
1.73%
-
12,016
-
(731)
11,285
-
Aris
4,715
2.76%
15,579
-
-
936
16,515
-
Other
22,547
24,605
(12,018)
4,609
39,743
(3,543)
Total
$ 246,026 $ 36,621 $ (189,106) $ 4,649 $ 98,190 $ 32,225
1)
The disposition of the Hecla shares was made in order to capitalize on Hecla’s share price appreciation, while the disposal under “other” was 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.
Year Ended December 31, 2023
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Dec 31, 2022
Cost of
Additions
Proceeds of
Disposition 1
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2023
Realized Gain
(Loss) on
Disposal
Sabina
-
- $ 30,535 $ - $ (48,832) $ 18,297 $ - $ 872
Kutcho
18,640
13.27%
3,097
-
-
(1,546)
1,551
-
Hecla
34,980
5.66%
194,668
-
(202)
(26,211)
168,255
73
B2Gold
12,025
0.92%
-
48,832
-
(10,738)
38,094
-
Aris
4,715
3.43%
11,662
-
-
3,917
15,579
-
Other
15,573
17,352
(27)
(10,351)
22,547
(990)
Total
$ 255,535 $ 66,184 $ (49,061) $ (26,632) $ 246,026 $ (45)
1)
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.
2)
Fair Value Gains (Losses) are reflected as a component of OCI.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [16]
Summarized Financial Results
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Attributable precious metal production
Gold ounces
379,530
374,152
285,601
Silver ounces (000’s)
20,807
17,191
23,800
Palladium ounces
15,632
15,800
15,485
Cobalt pounds (000's)
1,289
673
724
GEOs 1
635,007
584,127
571,742
Precious metal sales
Gold ounces
332,701
327,336
293,234
Silver ounces (000’s)
16,072
14,326
21,570
Palladium ounces
17,270
13,919
15,076
Cobalt pounds (000's)
970
1,074
1,038
GEOs 1
532,468
506,020
555,568
Average realized price
Gold per ounce
$
2,393
$
1,968
$
1,806
Silver per ounce
$
28.49
$
23.64
$
21.84
Palladium per ounce
$
984
$
1,329
$
2,133
Cobalt per pound
$
14.18
$
13.81
$
31.00
GEO 1
$
2,413
$
2,008
$
1,917
Average cash cost 2
Gold per ounce
$
440
$
455
$
472
Silver per ounce
$
4.98
$
5.05
$
5.33
Palladium per ounce
$
179
$
241
$
377
Cobalt per pound 3
$
2.71
$
3.30
$
8.10
GEO 1
$
436
$
451
$
482
Average depletion 4
Gold per ounce
$
419
$
382
$
350
Silver per ounce
$
5.64
$
4.82
$
5.22
Palladium per ounce
$
434
$
441
$
399
Cobalt per pound
$
12.78
$
13.41
$
10.26
GEO 1
$
470
$
424
$
418
Total revenue ($000's)
$
1,284,639
$
1,016,045
$
1,065,053
Net earnings ($000's)
$
529,140
$
537,644
$
669,126
Earnings per share
Basic
$
1.167
$
1.187
$
1.482
Diluted
$
1.165
$
1.186
$
1.479
Adjusted net earnings 5 ($000's)
$
640,170
$
533,051
$
504,912
Adjusted earnings per share 5
Basic
$
1.412
$
1.177
$
1.118
Diluted
$
1.410
$
1.176
$
1.116
Cash flow from operations ($000's)
$
1,027,581
$
750,809
$
743,424
Dividends
Dividends paid ($000's)
$
281,166
$
271,744
$
270,946
Dividends paid per share
$
0.62
$
0.60
$
0.60
Total assets ($000's)
$
7,424,457
$
7,031,185
$
6,759,906
Total non-current financial liabilities ($000’s)
$
135,225
$
19,362
$
11,349
Total other liabilities ($000’s)
$
29,853
$
26,307
$
30,882
Shareholders' equity ($000's)
$
7,259,379
$
6,985,516
$
6,717,675
Shares outstanding
453,677,299
453,069,254
452,318,526
1) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce
palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
2) Refer to discussion on non-GAAP measure (iii) on page 60 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) Includes the non-cash per ounce cost of sale associated with delay ounces. Please see footnote 3 on page 9 of this MD&A for more information.
5) Refer to discussion on non-GAAP measure (i) on page 58 of this MD&A.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [17]
Summary of Units Produced
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Gold ounces produced ²
Salobo
84,291
62,689
63,225 61,622 71,778
69,045
54,804
43,677
Sudbury 3
5,004
3,593
4,477 5,618
5,823
3,857 5,818
6,203
Constancia
18,180
10,446
6,086 13,897
22,292 19,003
7,444
6,905
San Dimas 4
7,263
6,882
7,089 7,542 10,024
9,995 11,166 10,754
Stillwater 5
2,166
2,247
2,099 2,637 2,341
2,454 2,017 1,960
Other
Marmato
622
648 584 623 668 673 639 457
Minto 6
- - - - - - 1,292
3,063
Total Other
622
648 584 623 668 673 1,931
3,520
Total gold ounces produced
117,526
86,505
83,560 91,939 112,926
105,027 83,180 73,019
Silver ounces produced 2
Peñasquito 7
2,465 1,785
2,263 2,643 1,036 - 1,744
2,076
Antamina
947
925 992 806 1,030 894 984 872
Constancia
969
648 451 640 836 697 420 552
Other
Los Filos
29 26 27 48 26 32 41 45
Zinkgruvan
637
537 699 641 510 785 374 632
Neves-Corvo
494
425 432 524 573 486 407 436
Aljustrel 8
- - - - - 327 279 343
Cozamin
192 185 177 173 185 165 184 141
Marmato
7 7 6 7 10 11 7 8
Minto 6
- - - - - - 14 29
Total Other
1,359 1,180 1,341 1,393 1,304 1,806 1,306 1,634
Total silver ounces produced
5,740
4,538
5,047 5,482
4,206
3,397
4,454 5,134
Palladium ounces produced ²
Stillwater 5
2,797
4,034
4,338 4,463
4,209
4,006
3,880
3,705
Cobalt pounds produced ²
Voisey's Bay
393
397 259 240 215 183 152 124
GEOs produced 9
187,493
143,290
145,449 158,775
164,796
147,278
137,323
134,730
Average payable rate 2
Gold
95.3%
95.0%
95.0%
94.7%
95.1%
95.4%
95.1%
95.1%
Silver
84.2%
83.9%
84.3%
84.5%
83.0%
78.4%
83.7%
83.1%
Palladium
97.5%
98.4%
97.3%
97.8%
98.0%
94.1%
94.1%
96.3%
Cobalt
93.3%
93.3%
93.3%
93.3%
93.3%
93.3%
93.3%
93.3%
GEO 9
91.4%
91.0%
90.7%
90.7%
91.6%
90.9%
90.9%
89.8%
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 2024 - 295,000 ounces; Q3 2024 - 262,000 ounces; Q2 2024 - 285,000 ounces; Q1 2024 - 291,000 ounces; Q4 2023 -
378,000 ounces; Q3 2023 - 387,000 ounces; Q2 2023 - 423,000 ounces; Q1 2023 - 401,000 ounces.
5) Comprised of the Stillwater and East Boulder gold and palladium interests.
6) On May 13, 2023, Minto Metals Corp. announced the suspension of operations at the Minto mine.
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 third
quarter of 2025.
9) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce
palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [18]
Summary of Units Sold
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Gold ounces sold
Salobo
55,170 58,101
54,962
56,841
76,656
44,444
46,030
35,966
Sudbury 2
4,048 2,495
5,679 4,129 5,011
4,836
4,775
4,368
Constancia
17,873 5,186
6,640
20,123 19,925
12,399 9,619
6,579
San Dimas
6,990 7,022 6,801
7,933 10,472
9,695 11,354 10,651
Stillwater 3
2,410 1,635
2,628
2,355 2,314
1,985 2,195
2,094
Other
Marmato
650 550 616
638 633
792 467 480
777
- - - - -
275 153 126
Minto
- - - - - - 701 2,341
Santo Domingo 4
312 447 - - - - - -
El Domo 4
209 258 - - - - - -
Total Other
1,171 1,255 616
638 633
1,067 1,321
2,947
Total gold ounces sold
87,662
75,694
77,326
92,019 115,011
74,426
75,294
62,605
Silver ounces sold
Peñasquito
1,852 1,667 1,482 1,839 442
453 1,913 1,483
Antamina
858 989 917
762 1,091
794 963 814
Constancia
797 366 422
726 665
435 674 366
Other
Los Filos
29 26 24 44 24
30 37 34
Zinkgruvan
452 488 597
297 449
714 370 520
Neves-Corvo
154 185 216
243 268
245 132 171
Aljustrel
- - - 1 86
142 182 205
Cozamin
158 148 158 147 141
139 150 119
Marmato
7 6 7 8 9 11 7 7
Minto
- - - - - - 7 29
Keno Hill
- - - - - - - 1
777
- - - - -
2 2 -
Total Other
800 853 1,002
740 977
1,283 887 1,086
Total silver ounces sold
4,307 3,875
3,823
4,067 3,175
2,965
4,437
3,749
Palladium ounces sold
Stillwater 3
4,434 3,761 4,301
4,774
3,339
4,242
3,392
2,946
Cobalt pounds sold
Voisey's Bay
485 88 88
309 288
198 265 323
GEOs sold 5
142,561 122,715
124,009 143,184 155,059 111,935 129,734 109,293
Cumulative payable units PBND 6
Gold ounces
119,446
94,578
87,350
85,259
90,237
97,860 72,061
76,522
Silver ounces
3,260 2,733 2,801
2,368 1,802
1,486 1,790 2,531
Palladium ounces
4,439 6,186 6,018 6,198
6,666
5,607 6,122 5,751
Cobalt pounds
678 796 513
360 356
377 251 285
GEO 5
163,562 134,269
125,906 117,930 116,610
120,203 97,331 110,362
Inventory on hand
Cobalt pounds
- - - - 88
155 310 398
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) The ounces sold under Santo Domingo and El Domo relate to ounces received due to the delay ounce provision as per the respective PMPA (see footnote 3 on page 9 of
this MD&A for more information).
5) GEOs, which are provided to assist the reader, are based on the following commodity price assumptions: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce
palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
6) Payable gold, silver and palladium ounces PBND and cobalt pounds PBND are based on management estimates. These figures may be updated in future periods as
additional information is received.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [19]
Quarterly Financial Review 1
xxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxx
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Q1 2023
Gold ounces sold
x
x
x
x
87,662
x
x
x
x
75,694
x
x
x
x
77,326
x
x
x
x
92,019 xx
x
x
115,011 xx
x
x
74,426 xx
x
x
75,294
xx
x
x
62,605
Realized price 2
$
2,677 $
2,491 $
2,356 $
2,072 $
2,006 $
1,944 $
1,986 $
1,904
Gold sales
$
234,690 $
188,521 $
182,150 $
190,689 $
230,716 $
144,707 $
149,511 $
119,196
Silver ounces sold
4,307
3,875
3,823
4,067
3,175
2,965
4,437
3,749
Realized price 2
$
31.28 $
29.71 $
29.11 $
23.77 $
23.77 $
23.73 $
24.13 $
22.85
Silver sales
$
134,733 $
115,149 $
111,291 $
96,658 $
75,465 $
70,372 $
107,081 $
85,678
Palladium ounces sold
4,434
3,761
4,301
4,774
3,339
4,242
3,392
2,946
Realized price 2
$
1,008 $
969 $
979 $
980 $
1,070 $
1,251 $
1,438 $
1,607
Palladium sales
$
4,468 $
3,644 $
4,210 $
4,677 $
3,574 $
5,307 $
4,879 $
4,735
Cobalt pounds sold
485
88
88
309
288
198
265
323
Realized price 2
$
13.66 $
10.65 $
16.02 $
15.49 $
12.92 $
13.87 $
13.23 $
15.04
Cobalt sales
$
6,625 $
939 $
1,413 $
4,782 $
3,716 $
2,751 $
3,501 $
4,856
Total sales
$
380,516 $
308,253 $
299,064 $
296,806 $
313,471 $
223,137 $
264,972 $
214,465
Cash cost 2, 3
Gold / oz
$
440 $
440 $
441 $
439
$
437
$
444
$
461
$
496
Silver / oz
$
5.16 $
5.03 $
4.95 $
4.77
$
5.02
$
5.10
$
5.01
$
5.07
Palladium / oz
$
184 $
173 $
175 $
182
$
198
$
223
$
261
$
294
Cobalt / lb 5
$
2.59
$
2.15 $
3.11 $
2.96 $
3.14 $
3.66 $
3.20 $
3.30
Depletion 2
Gold / oz 4
$
420 $
418 $
438 $
404
$
405
$
381
$
365
$
360
Silver / oz
$
5.90 $
5.89 $
5.76 $
5.03
$
5.29
$
4.57
$
4.92
$
4.48
Palladium / oz
$
429 $
429 $
429 $
445
$
445
$
459
$
445
$
408
Cobalt / lb
$
12.78 $
12.78 $
12.78 $
12.77 $
12.80 $
12.98 $
13.85 $
13.85
Gain on disposal of PMPA
$
- $
- $
- $
-
$
-
$
-
$
5,027
$
-
Impairment
$
108,861 $
- $
- $
-
$
-
$
-
$
-
$
-
Net earnings
$
88,148 $
154,635 $
122,317 $
164,041
$
168,435
$
116,371
$
141,448
$
111,391
Per share
Basic
$
0.194 $
0.341 $
0.270 $
0.362
$
0.372
$
0.257
$
0.312
$
0.246
Diluted
$
0.194 $
0.340 $
0.269 $
0.362 $
0.371 $
0.257 $
0.312 $
0.246
Adjusted net earnings 3
$
198,969 $
152,803 $
149,565 $
138,834
$
164,569
$
121,467
$
142,584
$
104,431
Per share
Basic
$
0.439 $
0.337 $
0.330 $
0.306
$
0.363
$
0.268
$
0.315
$
0.231
Diluted
$
0.438 $
0.336 $
0.329 $
0.306 $
0.363 $
0.268 $
0.314 $
0.230
Cash flow from operations
$
319,471 $
254,337 $
234,393 $
219,380
$
242,226
$
171,103
$
202,376
$
135,104
Per share 3
Basic
$
0.704 $
0.561 $
0.517 $
0.484
$
0.535
$
0.378
$
0.447
$
0.299
Diluted
$
0.703 $
0.560 $
0.516 $
0.484 $
0.534 $
0.377 $
0.446 $
0.298
Dividends declared
$
70,318 $
70,314 $
70,273 $
70,261
$
67,950
$
67,946
$
67,938
$
67,910
Per share
$
0.155 $
0.155 $
0.155 $
0.155 $
0.150 $
0.150 $
0.150 $
0.150
Total assets
$ 7,424,457 $
7,386,179 $ 7,247,082 $
7,180,455 $
7,031,185 $
6,881,515 $ 6,879,905 $
6,905,479
Total liabilities
$
165,078 $
126,165 $
87,410 $
101,260 $
45,669 $
38,254 $
33,492 $
93,025
Total shareholders' equity
$ 7,259,379 $
7,260,014 $ 7,159,672 $
7,079,195 $
6,985,516 $
6,843,261 $ 6,846,413 $
6,812,454
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-GAAP beginning on page 58 of this MD&A.
4) Includes the non-cash per ounce cost of sale associated with delay ounces. Please see footnote 3 on page 9 of this MD&A for more information.
5) Cash cost per pound of cobalt sold during the fourth quarter of 2022 included an inventory write-down of $1.6 million. 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 $0.08 per pound of cobalt sold, respectively.
Changes in sales, net earnings and cash flow from operations from quarter to quarter are affected primarily by
fluctuations in production at the mines, the timing of shipments, changes in the price of commodities, the
commencement of operations of mines under construction, as well as acquisitions of PMPAs and any related capital
raising activities.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [20]
Results of Operations and Operational Review
The operating results of the Company’s reportable operating segments are summarized in the tables and
commentary below.
Results of Operations For The Three Months Ended December 31, 2024 and 2023
The following two tables present the results of operations based on the Company’s reportable operating segments.
Three Months Ended December 31, 2024
Units
Produced²
Units
Sold
Average
Realized
Price
($'s
Per Unit)
Average
Cash Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit) 4
Sales
Impairment
Charges 5
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo
84,291 55,170 $
2,676 $
425 $
378 $ 147,610 $
- $ 103,323 $ 121,254 $ 2,595,485
Sudbury 6
5,004
4,048
2,709
400
1,326
10,968
-
3,982
9,853
241,551
Constancia
18,180 17,873
2,676
425
323
47,821
-
34,463
40,232
64,326
San Dimas
7,263
6,990
2,676
637
290
18,704
-
12,226
14,251
136,481
Stillwater
2,166
2,410
2,676
481
421
6,448
-
4,275
5,289
207,460
Other 7
622
1,171
2,681
265
1,485
3,139
-
1,089
2,828
981,316
117,526 87,662 $
2,677 $
440 $
420 $ 234,690 $
- $ 159,358 $ 193,707 $ 4,226,619
Silver
Peñasquito
2,465
1,852 $
31.48 $
4.50 $
4.86 $ 58,293 $
- $
40,965 $
49,960 $
244,465
Antamina
947
858
31.48
6.28
8.46
27,009
-
14,360
21,619
490,771
Constancia
969
797
31.48
6.26
6.10
25,084
-
15,232
20,096
165,378
Other 8
1,359
800
30.43
4.37
5.34
24,347
-
16,570
25,204
662,630
5,740
4,307 $
31.28 $
5.16 $
5.90 $ 134,733 $
- $
87,127 $ 116,879 $ 1,563,244
Palladium
Stillwater
2,797
4,434 $
1,008 $
184 $
429 $
4,468 $
- $
1,749 $
3,653 $
213,179
Platreef
-
-
n.a.
n.a.
n.a.
-
-
-
-
78,814
2,797
4,434 $
1,008 $
184 $
429 $
4,468 $
- $
1,749 $
3,653 $
291,993
Platinum
Marathon
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
9,451
Platreef
-
-
n.a.
n.a.
n.a.
-
-
-
-
57,584
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
67,035
Cobalt
Voisey's Bay
393
485 $
13.66 $
2.59 $
12.78 $
6,625 $ (108,861) $ (109,688) $
4,618 $
230,689
Operating results
$ 380,516 $ (108,861) $ 138,546 $ 318,857 $ 6,379,580
Other
General and administrative
$ (10,475) $ (6,996)
Share based compensation
(6,118)
-
Donations and community investments
(4,332)
(3,913)
Finance costs
(1,404)
(1,046)
Other
9,138
6,787
Income tax
(37,207)
5,782
Total other
$ (50,398) $
614 $ 1,044,877
$
88,148 $ 319,471 $ 7,424,457
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-GAAP measure (iii) on page 60 of this MD&A.
4) Includes the non-cash per ounce cost of sale associated with delay ounces. Please see footnote 3 on page 9 of this MD&A for more information.
5) Refer to page 29 of this MD&A for more information.
6) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
7) Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Copper World, Santo Domingo, Fenix, Blackwater, El Domo, Marathon,
Goose, Cangrejos, Platreef, Curraghinalt, Kudz Ze Kayah, Koné and Kurmuk gold interests. Other includes ounces sold that were received under the delay ounce provisions
of each of the Santo Domingo and El Domo PMPAs (see footnote 3 on page 9 of this MD&A for more information).
8) 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,
Pascua-Lama, Copper World, Navidad, Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [21]
Three Months Ended December 31, 2023
Units
Produced²
Units
Sold
Average
Realized
Price
($'s
Per Unit)
Average
Cash Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Sales
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo
71,778
76,656
$
2,005
$
420
$
393
$ 153,717
$
91,390
$
121,491
$ 2,681,419
Sudbury 4
5,823
5,011
2,023
400
1,145
10,137
2,394
8,134
262,485
Constancia
22,292
19,925
2,005
420
316
39,954
25,288
31,578
80,265
San Dimas
10,024
10,472
2,005
631
279
20,999
11,479
14,395
144,722
Stillwater
2,341
2,314
2,005
352
510
4,640
2,645
3,826
211,469
Other 5
668
633
2,005
350
527
1,269
714
1,047
603,689
112,926 115,011
$
2,006
$
437
$
405
$ 230,716
$
133,910
$ 180,471
$ 3,984,049
Silver
Peñasquito
1,036
442
$
23.87
$
4.43
$
4.06
$
10,547
$
6,794
$
8,589
$
276,232
Antamina
1,030
1,091
23.87
4.73
7.06
26,043
13,190
20,887
519,530
Constancia
836
665
23.87
6.20
6.24
15,879
7,601
11,755
179,583
Other 6
1,304
977
23.55
4.82
3.22
22,996
15,138
18,909
582,113
4,206
3,175
$
23.77
$
5.02
$
5.29
$
75,465
$
42,723
$
60,140
$ 1,557,458
Palladium
Stillwater
4,209
3,339
$
1,070
$
198
$
445
$
3,574
$
1,426
$
2,912
$
220,667
Platinum
Marathon
-
-
$
n.a.
$
n.a.
$
n.a.
$
-
$
-
$
-
$
9,451
Cobalt
Voisey's Bay
215
288
$
12.92
$
3.14 ⁷
$
12.80
$
3,716
$
(871)
$
2,016
$
350,816
Operating results
$ 313,471
$
177,188
$ 245,539
$ 6,122,441
Other
General and administrative
$
(9,244)
$
(6,490)
Share based compensation
(6,527)
-
Donations and community investments
(2,208)
(2,143)
Finance costs
(1,371)
(1,083)
Other
7,311
7,351
Income tax
3,286
(948)
Total other
$
(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 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-GAAP measure (iii) on page 60 of this MD&A.
4) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests as well as the non-operating Stobie and Victor gold interests.
5) Other gold interests are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater,
Marathon, El Domo, 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, Aljustrel, Cozamin and Marmato silver interests, the non-operating Minto, 777, Loma
de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater, El Domo 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 third 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [22]
Comparative Results of Operations on a GEO Basis
Q4 2024
Q4 2023
Change
Change
GEO Production 1, 2
187,493
164,796
22,696
13.8 %
GEO Sales 2
142,561
155,059
(12,498)
(8.1)%
Average price per GEO sold 2
$
2,669
$
2,022
$
647
32.0 %
Revenue
$
380,516
$
313,471
$
67,045
21.4 %
Cost of sales, excluding depletion
$
64,236
$
67,757
$
3,521
5.2 %
Depletion
68,873
68,526
(347)
(0.5)%
Cost of Sales
$
133,109
$
136,283
$
3,174
2.3 %
Gross Margin
$
247,407
$
177,188
$
70,219
39.6 %
General and administrative expenses
10,475
9,244
(1,231)
(13.3)%
Share based compensation
6,118
6,527
409
6.3 %
Donations and community investments
4,332
2,208
(2,124)
(96.2)%
Impairment of mineral stream interests
108,861
-
(108,861)
n.a.
Earnings from Operations
$
117,621
$
159,209
$
(41,588)
(26.1)%
Other income (expense)
9,138
7,311
1,827
25.0 %
Earnings before finance costs and income taxes
$
126,759
$
166,520
$
(39,761)
(23.9)%
Finance costs
1,404
1,371
(33)
(2.4)%
Earnings before income taxes
$
125,355
$
165,149
$
(39,794)
(24.1)%
Income tax expense
37,207
(3,286)
(40,493)
(1,232.3)%
Net earnings
$
88,148
$
168,435
$
(80,287)
(47.7)%
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: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce
palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
GEO Production
For the three months ended December 31, 2024, attributable GEO production was 187,500 ounces, with the 22,700
ounce increase from the comparable period in 2023 being primarily attributable to the following factors:
16,400 ounce or 138% increase from Peñasquito (1,429,000 silver ounces), as prior year operations were
impacted by 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;
12,500 ounce or 17% increase from Salobo representing record production, primarily the result of higher
throughput and grades. From a throughput perspective, the three 12 mtpa lines operated at approximately
94% of capacity during Q4-2024, as compared to approximately 83% during Q4-2023; and
1,200 ounce or 83% increase from Voisey's Bay (178,000 cobalt pounds), primarily attributable to the mining
of higher grade material as the transitional period between the depletion of the Ovoid open-pit and ramp-up
to full production of the Voisey’s Bay underground mine nears completion; partially offset by
2,800 ounce or 28% decrease from San Dimas, primarily due to lower grades;
2,600 ounce or 8% decrease from Constancia (comprised of 4,100 gold ounces and 134,000 silver ounces),
primarily due to lower grades resulting from reduced feed from Pampacancha; and
900 ounce or 20% decrease from Stillwater (comprised of 200 gold ounces and 1,400 palladium ounces),
primarily due to lower throughput as Stillwater West operations were into care and maintenance on
September 12, 2024, as more fully explained on page 10 of this MD&A.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [23]
Net Earnings
For the three months ended December 31, 2024, net earnings amounted to $88 million, with the $80 million decrease
relative to the comparable period of the prior year being attributable to the following factors:
Net earnings for the three months ended December 31, 2023
$
168,435
Variance in gross margin
Variance in revenue due to:
Payable gold production
$
9,271
Payable silver production
31,949
Payable palladium production
(1,831)
Payable cobalt production
2,150
Total payable production
$
41,539
Changes in inventory and PBND
(66,812)
Changes in delay ounces received 1
1,400
Prices realized per ounce sold
90,918
Total increase to revenue
$
67,045
Variance in cost of sales due to:
GEO payable production volume
$
(19,172)
GEO payable production mix differences
2,755
Changes in inventory and PBND
26,457
Changes in delay ounces 1
(1,396)
Cash cost per ounce
(2,105)
Depletion per ounce
(3,365)
Total decrease to cost of sales
$
3,174
Total increase to gross margin
$
70,219
Other variances
Impairment of mineral stream interests (see page 29)
(108,861)
General and administrative expenses (see page 30)
(1,231)
Share based compensation (see page 30)
409
Donations and community investment (see page 31)
(2,124)
Other income / expense (see page 31)
1,827
Finance costs (see page 31)
(33)
Income taxes (see page 32)
(40,493)
Total decrease in net earnings
$
(80,287)
Net earnings for the three months ended December 31, 2024
$
88,148
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [24]
Results of Operations For The Year Ended December 31, 2024 and 2023
The following two tables present the results of operations based on the Company’s reportable operating segments.
Year Ended December 31, 2024
Units
Produced²
Units
Sold
Average
Realized
Price
($'s
Per Unit)
Average
Cash Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit) 4
Sales
Impairment
Charges 5
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo
271,827 225,074 $ 2,397 $
425 $
382 $ 539,583 $
- $ 358,081 $ 444,015 $ 2,595,485
Sudbury 6
18,692 16,351
2,391
400
1,280
39,098
-
11,623
32,571
241,551
Constancia
48,609 49,822
2,370
422
320
118,096
-
81,126
97,066
64,326
San Dimas
28,776 28,746
2,388
635
287
68,654
-
42,166
50,407
136,481
Stillwater
9,149
9,028
2,392
425
444
21,592
-
13,743
17,752
207,460
Other 7
2,477
3,680
2,453
284
1,192
9,028
-
3,596
7,982
981,316
379,530 332,701 $ 2,393 $
440 $
419 $ 796,051 $
- $ 510,335 $ 649,793 $ 4,226,619
Silver
Peñasquito
9,156
6,840 $ 28.34 $
4.50 $
4.64 $ 193,871 $
- $ 131,325 $ 163,092 $ 244,465
Antamina
3,670
3,526
28.56
5.74
8.16
100,719
-
51,738
80,497
490,771
Constancia
2,708
2,311
28.25
6.23
6.15
65,264
-
36,676
50,881
165,378
Other 8
5,273
3,395
28.85
4.31
4.71
97,976
-
67,356
85,230
662,630
20,807 16,072 $ 28.49 $
4.98 $
5.64 $ 457,830 $
- $ 287,095 $ 379,700 $ 1,563,244
Palladium
Stillwater
15,632 17,270 $
984 $
179 $
434 $
16,999 $
- $
6,423 $
13,911 $ 213,179
Platreef
-
-
n.a.
n.a.
n.a.
-
-
-
-
78,814
15,632 17,270 $
984 $
179 $
434 $
16,999 $
- $
6,423 $
13,911 $ 291,993
Platinum
Marathon
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
9,451
Platreef
-
-
n.a.
n.a.
n.a.
-
-
-
-
57,584
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
67,035
Cobalt
Voisey's Bay
1,289
970 $ 14.18 $
2.71 $ 12.78 $
13,759 $ (108,861) $ (110,127) $
14,025 $ 230,689
Operating results
$ 1,284,639 $ (108,861) $ 693,726 $ 1,057,429 $ 6,379,580
Other
General and administrative
$ (40,668) $ (38,130)
Share based compensation
(23,268)
(11,129)
Donations and community investments
(8,958)
(8,098)
Finance costs
(5,549)
(4,280)
Other
29,061
23,273
Income tax
(115,204)
8,516
Total other
$ (164,586) $ (29,848) $ 1,044,877
$ 529,140 $ 1,027,581 $ 7,424,457
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-GAAP measure (iii) on page 60 of this MD&A.
4) Includes the non-cash per ounce cost of sale associated with delay ounces. Please see footnote 3 on page 9 of this MD&A for more information.
5) Refer to page 29 of this MD&A for more information.
6) Comprised of the operating Coleman, Copper Cliff, Garson, Creighton and Totten gold interests and the non-operating Stobie and Victor gold interests.
7) Other gold interests comprised of the operating Marmato gold interest as well as the non-operating Copper World, Santo Domingo, Fenix, Blackwater, El Domo, Marathon,
Goose, Cangrejos, Platreef, Curraghinalt, Kudz Ze Kayah, Koné and Kurmuk gold interests. Other includes ounces sold that were received under the delay ounce provisions
of each of the Santo Domingo and El Domo PMPAs (see footnote 3 on page 9 of this MD&A for more information).
8) 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,
Pascua-Lama, Copper World, Navidad, Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [25]
Year Ended December 31, 2023
Units
Produced²
Units
Sold
Average
Realized
Price
($'s
Per Unit)
Average
Cash Cost
($'s Per
Unit) 3
Average
Depletion
($'s Per
Unit)
Sales
Gain on
Disposal 4
Net
Earnings
Cash Flow
From
Operations
Total
Assets
Gold
Salobo
239,304 203,096 $ 1,969 $
420 $
354 $ 399,936 $
- $ 242,676 $ 314,555 $ 2,681,419
Sudbury 5
21,701 18,990
1,971
400
1,102
37,432
-
8,905
29,554
262,485
Constancia
55,644 48,522
1,972
419
316
95,672
-
60,039
75,357
80,265
San Dimas
41,939 42,172
1,960
628
264
82,656
-
45,014
56,157
144,722
Stillwater
8,772
8,588
1,961
348
510
16,842
-
9,470
13,853
211,469
Other 6
6,792
5,968
1,942
1,037
209
11,593
-
4,152
5,137
603,689
374,152 327,336 $ 1,968 $
455 $
382 $ 644,131 $
- $ 370,256 $ 494,613 $ 3,984,049
Silver
Peñasquito
4,856
4,291 $ 23.66 $
4.43 $
4.06 $ 101,514 $
- $
65,062 $
82,504 $
276,232
Antamina
3,780
3,662
23.72
4.70
7.06
86,855
-
43,814
69,652
519,530
Constancia
2,505
2,140
23.79
6.17
6.24
50,913
-
24,352
37,716
179,583
Other 7
6,050
4,233
23.47
5.41
2.92
99,312
5,027
69,106
74,272
582,113
17,191 14,326 $ 23.64 $
5.05 $
4.82 $ 338,594 $
5,027 $ 202,334 $ 264,144 $ 1,557,458
Palladium
Stillwater
15,800 13,919 $ 1,329 $
241 $
441 $
18,496 $
- $
8,991 $
15,135 $
220,667
Platinum
Marathon
-
- $
n.a. $
n.a. $
n.a. $
- $
- $
- $
- $
9,451
Cobalt
Voisey's Bay
673
1,074 $ 13.81 $ 3.30 ⁸ $ 13.41 $
14,824 $
- $ (3,114) $
15,071 $
350,816
Operating results
$ 1,016,045 $
5,027 $ 578,467 $ 788,963 $ 6,122,441
Other
General and administrative
$ (38,165) $ (36,025)
Share based compensation
(22,744)
(16,675)
Donations and community investments
(7,261)
(7,039)
Finance costs
(5,510)
(4,230)
Other
34,271
32,007
Income tax
(1,414)
(6,192)
Total other
$ (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-GAAP measure (iii) on page 60 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 are comprised of the operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater,
Marathon, El Domo, 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, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777,
Loma de La Plata, Stratoni, Pascua-Lama, Copper World, Blackwater, El Domo 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 third 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [26]
Comparative Results of Operations on a GEO Basis
2024
2023
Change
Change
GEO Production 1, 2
635,007
584,127
50,881
8.7 %
GEO Sales 2
532,468
506,020
26,448
5.2 %
Average price per GEO sold 2
$
2,413
$
2,008
$
405
20.2 %
Revenue
$
1,284,639
$
1,016,045
$
268,594
26.4 %
Cost of sales, excluding depletion
$
235,108
$
228,171
$
(6,937)
(3.0)%
Depletion
246,944
214,434
(32,510)
(15.2)%
Cost of Sales
$
482,052
$
442,605
$
(39,447)
(8.9)%
Gross Margin
$
802,587
$
573,440
$
229,147
40.0 %
General and administrative expenses
40,668
38,165
(2,503)
(6.6)%
Share based compensation
23,268
22,744
(524)
(2.3)%
Donations and community investments
8,958
7,261
(1,697)
(23.4)%
Impairment of mineral stream interests
108,861
-
(108,861)
n.a.
Earnings from Operations
$
620,832
$
505,270
$
115,562
22.9 %
Gain on disposal of mineral stream interests
-
5,027
(5,027)
(100.0)%
Other income (expense)
29,061
34,271
(5,210)
(15.2)%
Earnings before finance costs and income taxes
$
649,893
$
544,568
$
105,325
19.3 %
Finance costs
5,549
5,510
(39)
(0.7)%
Earnings before income taxes
$
644,344
$
539,058
$
105,286
19.5 %
Income tax expense
115,204
1,414
(113,790)
(8,047.4)%
Net earnings
$
529,140
$
537,644
$
(8,504)
(1.6)%
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: $2,000 per ounce gold; $23.00 per ounce silver; $1,000 per ounce
palladium; and $13.00 per pound cobalt; consistent with those used in estimating the Company's production guidance for 2024.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [27]
GEO Production
For the year ended December 31, 2024, attributable GEO production was 635,000 ounces, with the 50,900 ounce
increase from the comparable period in 2023 being primarily attributable to the following factors:
49,500 ounce or 89% increase from Peñasquito (4,301,000 silver ounces), primarily due to higher grades
and throughput, with prior year operations being impacted by a labour strike which lasted from June 7 to
October 13, 2023;
32,500 ounce or 14% 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, partially offset by lower
grades. From a throughput perspective, the three 12 mtpa lines operated at approximately 85% of capacity
during 2024 as compared to approximately 69% during 2023; and
4,000 ounce or 92% increase from Voisey's Bay (616,000 cobalt pounds), primarily attributable to the mining
of higher grade material as the transitional period between the depletion of the Ovoid open-pit and ramp-up
to full production of the Voisey’s Bay underground mine nears completion; partially offset by
13,200 ounce or 17% decrease from the Other mines (comprised of 4,300 gold ounces and 775,000 silver
ounces), primarily due to the closure of the Minto mine in May 2023 and the temporary suspension of
attributable production from Aljustrel;
13,200 ounce or 31% decrease from San Dimas, primarily due to lower throughput and grades;
4,700 ounce or 6% decrease from Constancia (comprised of 7,000 gold ounces and 203,000 silver ounces),
primarily due to lower grades largely due to the planned stripping activity in the Pampacancha pit, which
commenced in the second quarter, and was completed in the third quarter; and
3,000 ounce or 14% decrease from Sudbury, primarily due to lower grades and recoveries, partially offset by
higher throughput.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [28]
Net Earnings
For the year ended December 31, 2024, net earnings amounted to $529 million, with the $9 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, 2023
$ 537,644
Variance in gross margin
Variance in revenue due to:
Payable gold production
$
9,024
Payable silver production
79,906
Payable palladium production
(589)
Payable cobalt production
7,938
Total payable production
$
96,279
Changes in inventory and PBND
(43,841)
Changes in delay ounces received 1
3,146
Prices realized per ounce sold
213,010
Total increase to revenue
$ 268,594
Variance in cost of sales due to:
GEO payable production volume
$
(46,855)
GEO payable production mix differences
13,414
Changes in inventory and PBND
21,612
Changes in delay ounces 1
(3,095)
Cash cost per ounce
(5,336)
Depletion per ounce
(19,187)
Total increase to cost of sales
$
(39,447)
Total increase to gross margin
$ 229,147
Other variances
Gain on disposal of mineral stream interest (see page 29)
(5,027)
Impairment of mineral stream interests (see page 29)
(108,861)
General and administrative expenses (see page 30)
(2,503)
Donations and community investment (see page 31)
(1,697)
Share based compensation (see page 30)
(524)
Other income / expense (see page 31)
(5,210)
Finance costs (see page 31)
(39)
Income taxes (see page 32)
(113,790)
Total decrease in net earnings
$
(8,504)
Net earnings for the year ended December 31, 2024
$ 529,140
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [29]
Impairment of Mineral Stream Interests
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 (if any). The recoverable amount of each PMPA is the higher of fair value less cost of disposal (“FVLCD”)
and value in use (“VIU”). In determining the recoverable amounts of each of the Company’s CGU’s, the Company
uses the FVLCD as this will generally be greater than or equal to the VIU.
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.
Based on the Company’s analysis, the following PMPA was determined to be impaired:
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Cobalt Interests
Voisey's Bay
$
108,861 $
-
108,861
-
Total impairment expense
$
108,861 $
- $
108,861 $
-
Voisey’s Bay – Indicator of Impairment at December 31, 2024
On June 11, 2018, the Company entered into an agreement (the “Voisey’s Bay PMPA”) to acquire from Vale an
amount of cobalt equal to 42.4% of the cobalt production from its Voisey’s Bay mine, located in Canada, until the
delivery of 31 million pounds of cobalt and 21.2% of cobalt production thereafter for the life of mine for a total upfront
cash payment of $390 million.
At December 31, 2024, the Company determined there to be an impairment charge relative to the Voisey’s Bay
cobalt interest (“Voisey’s Bay PMPA”) due to a significant and sustained decline in market cobalt prices. The Voisey’s
Bay PMPA had a carrying value at December 31, 2024 of $340 million. Management estimated that the recoverable
amount at December 31, 2024 under the Voisey’s Bay PMPA was $231 million, representing its FVLCD and resulting
in an impairment charge of $109 million. The recoverable amount related to the Voisey’s Bay PMPA was estimated
using an average discount rate of 5.5% and the market price of cobalt of $13.62 per pound. As this valuation
technique requires the use of estimates and assumptions such as long-term commodity prices, discount rates,
recoverable pounds of cobalt and operating performance, it is classified within Level 3 of the fair value hierarchy.
Gain on Disposal of Mineral Stream Interest
Goose
During the year ended December 31, 2023, the Company reflected a gain on the partial buyback of 33% of the
Goose PMPA by B2Gold of $5 million, calculated as follows:
(in thousands)
Proceeds received on 33% buyback of Goose
$ 46,400
Less: 33% carrying value
(41,373)
Gain on partial disposal of the Goose PMPA
$ 5,027
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [30]
General and Administrative
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Corporate
Salaries and benefits
$ 3,683 $ 3,230
$ 15,103
$ 14,127
Depreciation
220
246
904
1,026
Professional fees
1,353
1,526
2,781
3,414
Business travel
392
232
1,684
1,141
Director fees
269
275
1,078
1,095
Business taxes
42
48
737
798
Audit and regulatory
589
540
3,026
3,211
Insurance
485
502
1,822
2,052
Other
1,151
842
4,495
3,896
General and administrative - corporate
$ 8,184 $ 7,441
$ 31,630
$ 30,760
Subsidiaries
Salaries and benefits
$ 1,366 $ 821 $ 5,396 $ 4,287
Depreciation
98
123
455
466
Professional fees
198
228
911
618
Business travel
135
123
433
346
Director fees
52
45
218
199
Business taxes
75
46
270
252
Insurance
13
7
56
46
Other
354
410
1,299
1,191
General and administrative - subsidiaries
$ 2,291 $ 1,803 $ 9,038 $ 7,405
Consolidated general and administrative
$ 10,475 $ 9,244
$ 40,668
$ 38,165
For the three months and year ended December 31, 2024, general and administrative expenses increased by $1
million and $3 million, respectively, relative to the comparable periods in the previous year, primarily the result of
higher estimated employee performance bonuses coupled with higher business travel.
Share Based Compensation
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Equity settled share based compensation 1
Stock options
$ 733 $ 518 $ 2,837 $ 2,607
Restricted share units
992
787
3,866
3,831
Cash settled share based compensation
PSUs
4,393
5,222
16,565
16,306
Total share based compensation
$ 6,118 $ 6,527
$ 23,268
$ 22,744
1) Equity settled share based compensation is a non-cash expense.
For the three months and year ended December 31, 2024, share based compensation was virtually unchanged
relative to the comparable periods in the previous year.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [31]
Donations and Community Investments
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Local donations and community investments 1
$ 983 $ 713 $ 2,934 $ 2,649
Partner donations and community investments 2
3,349
1,495
6,024
4,612
Total donations and community investments
$ 4,332 $ 2,208 $ 8,958 $ 7,261
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.
Other Income (Expense)
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Interest income
$ 7,925 $ 9,913 $ 24,826 $ 34,862
Dividend income
525
700
2,188
2,316
Foreign exchange gain (loss)
1,650
(334)
2,095
51
Gain (loss) on fair value adjustment of share
purchase warrants held
(910)
217
(8)
(31)
Other
(52)
(3,185)
(40)
(2,927)
Total other income (expense)
$ 9,138 $ 7,311 $ 29,061 $ 34,271
Interest Income
For the three months ended December 31 2024, interest income decreased by $2 million, a result of the average
cash balance during the period decreasing from approximately $739 million with an average rate of return of 5.2% to
approximately $605 million with an average rate of return of 4.6%.
For the twelve months ended December 31, 2024, interest income decreased by $10 million, a result of the average
cash balance during the period decreasing from approximately $710 million with an average rate of return of 4.8% to
approximately $466 million with an average rate of return of 5.0%.
Foreign exchange gain (loss)
For the three months and year ended December 31 2024, foreign exchange gain increased by $2 million, a result of
the weakening of the Canadian dollar relative to the United States dollar during Q4-2024 of approximately 9% relative
to both periods, with this weakening dollar resulting in a lower converted value for the Company’s Canadian dollar
denominated monetary liabilities.
Finance Costs
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Costs related to undrawn credit facilities
$ 1,337
$ 1,286
$ 5,347
$ 5,162
Interest expense - lease liabilities
67
76
284
207
Letter of guarantee
-
9
(82)
141
Total finance costs
$ 1,404 $ 1,371
$ 5,549
$ 5,510
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [32]
Income Tax Expense (Recovery)
Income tax recognized in net earnings is comprised of the following:
Three Months Ended
December 31
Years Ended
December 31
(in thousands)
2024
2023
2024
2023
Current income tax expense (recovery)
$ 753 $ 158 $ (1,275) $ (2,372)
Global minimum income tax expense
35,144
-
113,505
-
Total current income tax expense (recovery)
$ 35,897 $ 158 $ 112,230 $ (2,372)
Deferred income tax expense (recovery) related to:
Origination and reversal of temporary differences
$ (4,218) $ (1,058) $ (318) $ 2,427
Write down (reversal of write down) or recognition
of prior period temporary differences
5,528
(2,386)
3,292
1,359
Total deferred income tax expense (recovery)
$ 1,310 $ (3,444) $ 2,974 $ 3,786
Total income tax expense (recovery) recognized in
net earnings
$ 37,207 $ (3,286)
$ 115,204 $ 1,414
On June 20, 2024, Canada’s Global Minimum Tax Act (“GMTA”), received royal assent. The GMTA enacts the OECD
Pillar Two model rules (“Pillar Two”) where in scope companies are subject to a 15% global minimum tax (GMT) for
fiscal years commencing on or after December 31, 2023. With the enactment of the GMTA on June 20, 2024, the
income of the Company’s Cayman Island subsidiaries, who have a statutory tax rate of 0%, are subject to the GMTA.
For the three months ended December 31, 2024 an amount of $35 million current tax expense associated with GMT
was recorded (twelve months - $114 million). GMT accrued to December 31, 2024 is payable on or before June 30,
2026 (18 months following year-end).
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, 2024, the Company had cash and cash equivalents of $818 million (December 31, 2023 - $547
million) and no debt outstanding under its Revolving Facility (December 31, 2023 - $NIL).
In the opinion of management, the $818 million of cash and cash equivalents as at December 31, 2024, combined
with the liquidity provided by the available credit under the $2 billion Revolving Facility and ongoing operating cash
flows positions the Company well to fund all outstanding commitments, as detailed in the Contractual Obligations and
Contingencies section on pages 36 through 38 of this MD&A, 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 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 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [33]
A summary of the Company’s cash flow activity is as follows:
Three Months Ended December 31, 2024
Cash Flows From Operating Activities
During the three months ended December 31, 2024, the Company generated operating cash flows of $319 million,
with the $77 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, 2023
$
242,226
Variance attributable to revenue (see page 23):
$
67,045
Changes in accounts receivable
4,102
Total increase to cash inflows attributable to sales
$
71,147
Variance attributable to cost of sales, excluding depletion:
Sales volume
$
5,424
Sales mix differences
202
Cost per ounce
(2,104)
Cost related to delay ounces 1
1,396
Changes in working capital, excluding accounts receivable
(2,747)
Total decrease to cash outflows attributable to cost of sales
$
2,171
Total increase to net cash inflows attributable to gross margin
$
73,318
Other variances:
General and administrative
(506)
Donation and community investment
(1,770)
Finance costs
37
Income taxes
6,730
Other
(564)
Total increase to net cash inflows
$
77,245
Operating cash inflow for the three months ended December 31, 2024
$
319,471
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
Cash Flows From Financing Activities
During the three months ended December 31, 2024, the Company had net cash outflows from financing activities of
$70 million, as compared to $65 million for the comparable period of the previous year, with the major sources (uses)
of cash flows being as follows:
Three Months Ended
December 31
(in thousands)
2024
2023
Credit facility extension fees
$ (1)
$ -
Share purchase options exercised
181
1,812
Lease payments
(150)
(143)
Dividends paid
(69,942)
(67,025)
Cash used for financing activities
$ (69,912)
$ (65,356)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [34]
Cash Flows From Investing Activities
During the three months ended December 31, 2024, the Company had net cash outflows from investing activities of
$125 million, as compared to $464 million during the comparable period of the previous year, with the major sources
(uses) of cash flow being as follows:
Three Months Ended
December 31
(in thousands)
2024
2023
(Payments) repayments for the acquisition of PMPAs 1:
Mineral Park PMPA
$ (25,000)
$ -
El Domo PMPA 2
13,250
-
Blackwater Gold PMPA
-
(10,000)
Blackwater Silver PMPA
-
(35,200)
Marmato PMPA
(40,016)
-
Cangrejos PMPA
(6,000)
(16,700)
Salobo Expansion PMPA
-
(370,000)
Curraghinalt PMPA
-
(20,000)
Kurmuk PMPA
(43,750)
-
($101,516)
$ (451,900)
Acquisition of long-term equity investments
(18,755)
(4,200)
Payments for the acquisition of new royalty agreements:
Mt Todd Royalty
-
(3,000)
Investment in subscription receipts 3
(3,114)
(4,500)
Other
(1,882)
(734)
Total cash (used for) generated from investing activities
$ (125,267)
$ (464,334)
1) Excludes closing costs.
2) On November 8, 2024, Silvercorp made a temporary repayment of amounts advanced under the El Domo PMPA, which ended Silvercorp’s requirement to make delay ounce
payments under the PMPA (see footnote 3 on page 9 of this MD&A for more information).
3) The subscription rights relating to the prior year were converted to common shares during the first quarter of 2024 and will be reclassified to long-term equity investments.
Year Ended December 31, 2024
Cash Flows From Operating Activities
During the year ended December 31, 2024, the Company generated operating cash flows of $1,028 million, with the
$277 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, 2023
$
750,809
Variance attributable to revenue (see page 28):
$
268,594
Changes in accounts receivable
4,793
Total increase to cash inflows attributable to sales
$
273,387
Variance attributable to cost of sales, excluding depletion:
Sales volume
$
(11,720)
Sales mix differences
10,120
Cost per ounce
(5,338)
Cost related to delay ounces 1
3,095
Changes in working capital, excluding accounts receivable
(1,078)
Total increase to cash outflows attributable to cost of sales
$
(4,921)
Total increase to net cash inflows attributable to gross margin
$
268,466
Other variances:
General and administrative
(2,105)
Donation and community investment
(1,059)
Share based compensation - PSUs
5,546
Finance costs
(50)
Income taxes
14,708
Other
(8,734)
Total increase to net cash inflows
$
276,772
Operating cash inflow for the year ended December 31, 2024
$
1,027,581
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [35]
Cash Flows From Financing Activities
During the year ended December 31, 2024, the Company had net cash outflows from financing activities of $267
million, as compared to $254 million during the comparable period of the previous year, with the major sources (uses)
of cash flow being as follows:
Years Ended
December 31
(in thousands)
2024
2023
Credit facility extension fees
$ (937)
$ (859)
Share purchase options exercised
13,192
12,415
Lease payments
(594)
(691)
Dividends paid
(279,050)
(265,109)
Cash used for financing activities
$ (267,389)
$ (254,244)
Cash Flows From Investing Activities
During the year ended December 31, 2024, the Company had net cash outflows from investing activities of $488
million, as compared to $647 million during the comparable period of the previous year, with the major sources (uses)
of cash flow being as follows:
Years Ended
December 31
(in thousands)
2024
2023
(Payments) repayments for the acquisition of PMPAs 1:
Platreef PMPA
$ (411,500)
$ -
Kudz Ze Kayah PMPA
(38,500)
-
El Domo PMPA 2
13,150
(150)
Mineral Park PMPA
(75,000)
-
Panoro early deposit PMPA
-
(1,000)
Goose PMPA
-
(62,500)
Blackwater Gold PMPA
-
(40,000)
Blackwater Silver PMPA
-
(140,800)
Cangrejos PMPA
(16,200)
(28,700)
Marmato PMPA
(40,016)
-
Salobo Expansion PMPA
-
(370,000)
Curraghinalt PMPA
-
(20,000)
Kurmuk PMPA
(43,750)
-
$ (611,816)
$ (663,150)
Net proceeds on disposition of PMPA
Goose PMPA
-
46,400
Acquisition of long-term equity investments
(20,234)
(17,447)
Proceeds on disposal of long-term equity investments
177,088
-
Payments for the acquisition of new Royalty Agreement:
Black Pine Royalty
-
(3,602)
DeLamar Royalty
(9,750)
-
Mt Todd Royalty
(17,000)
(3,000)
Investment in subscription receipts 3
(3,114)
(4,500)
Other
(3,477)
(1,347)
Total cash used for investing activities
$ (488,303)
$ (646,646)
1) Excludes closing costs.
2) On November 8, 2024, Silvercorp made a temporary repayment of amounts advanced under the El Domo PMPA, which ended Silvercorp’s requirement to make delay ounce
payments (see footnote 3 on page 9 of this MD&A for more information).
3) The subscription rights relating to the prior year were converted to common shares during the first quarter of 2024 and will be reclassified to long-term equity investments.
WHEATON PRECIOUS METALS 2024 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
Attributable
Payable Production
to be Purchased
Per Ounce Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Constancia
50%
$
425 ²
Life of Mine
8-Aug-12
Salobo
75%
$
429
Life of Mine
28-Feb-13
Sudbury
70%
$
400
20 years
28-Feb-13
San Dimas
variable ³
$
637
Life of Mine
10-May-18
Stillwater
100%
18% ⁴
Life of Mine
16-Jul-18
Marathon
100% ⁵
18% ⁴
Life of Mine
26-Jan-22
Other
Copper World
100%
$
450
Life of Mine
10-Feb-10
Marmato
10.5% ⁵
18% ⁴
Life of Mine
5-Nov-20
Santo Domingo
100% ⁵
18% ⁴
Life of Mine
24-Mar-21
Fenix
22% ⁶
20%
Life of Mine
15-Nov-21
Blackwater
8% ⁵
35%
Life of Mine
13-Dec-21
El Domo
50% ⁵
18% ⁴
Life of Mine
17-Jan-22
Goose
2.78% ⁵
18% ⁴
Life of Mine
8-Feb-22
Cangrejos
6.6% ⁵
18% ⁴
Life of Mine
16-May-23
Platreef
62.5% ⁵
$
100 ⁵
Life of Mine ⁵
7-Dec-21 ⁸
Curraghinalt
3.05% ⁵
18% ⁴
Life of Mine
15-Nov-23
Kudz Ze Kayah
6.875% ⁷
20%
Life of Mine
22-Dec-21 ⁸
Koné
19.5% ⁵
20% ⁹
Life of Mine
23-Oct-24
Kurmuk
6.7% ⁵
15%
Life of Mine
5-Dec-24
Early Deposit
Toroparu
10%
$
400
Life of Mine
11-Nov-13
Cotabambas
25% ⁵
$
450
Life of Mine
21-Mar-16
Kutcho
100%
20%
Life of Mine
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. Blackwater – reduced to 4% once the Company has received 464,000 ounces of gold.
e. El Domo – reduced to 33% once the Company has received 145,000 ounces of gold.
f. 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.
g. Cangrejos – reduced to 4.4% once the Company has received 700,000 ounces of gold.
h. 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.
i. Curraghinalt – reduced to 1.5% once the Company has received 125,000 ounces of gold.
j. Koné - reduced to 10.8% once the Company has received 400,000 ounces of gold, subject to adjustment if there are delays in deliveries relative to an agreed
schedule, with a further reduction to 5.4% once the Company has received an additional 130,000 ounces of gold.
k. Kurmuk – reduced to 4.8% once the Company has received 220,000 ounces of gold. During any period in which debt exceeding $150 million ranks ahead of the gold
stream, the stream percentage increases to 7.15% and decreases to 5.25% once the drop down threshold is reached.
l. Cotabambas – reduced to 16.67% once the Company has received 90 million silver equivalent ounces.
6)
On October 21, 2024, the Company amended the Fenix PMPA. Under the original agreement, the Company was to acquire an amount of gold equal to 6% of the gold
production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life
of mine. Under the revised agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total) (subject to adjustment if there are
delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds
under the original Fenix PMPA (as described). Rio2 has a one-time option to terminate the requirement to deliver the incremental gold production from the end of 2027 until
the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the
original Fenix PMPA.
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 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [37]
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 February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
9)
Until October 23, 2029, there is a price adjustment mechanism under the Koné PMPA
a. if the spot price of gold is less than $2,100 per ounce, the Company will pay 20% of $2,100 less 25% of the difference between $2,100 and $1,800, less 30% of the
difference between $1,800 and the spot price of gold; and
b. if the spot price is greater than $2,700 per ounce, the Company will pay 25% of the difference between $3,000 and $2,700, plus 30% of the difference between the
actual spot price of gold and $3,000.
Per Ounce Cash Payment for Silver
Mineral Stream Interests
Attributable
Payable
Production to be
Purchased
Per Ounce Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Peñasquito
25%
$
4.56
Life of Mine
24-Jul-07
Constancia
100%
$
6.26 ²
Life of Mine
8-Aug-12
Antamina
33.75%
20%
Life of Mine
3-Nov-15
Other
Los Filos
100%
$
4.74
25 years
15-Oct-04
Zinkgruvan
100%
$
4.75
Life of Mine
8-Dec-04
Stratoni
100%
$
11.54
Life of Mine
23-Apr-07
Neves-Corvo
100%
$
4.50
50 years
5-Jun-07
Aljustrel
100% ³
50%
50 years
5-Jun-07
Pascua-Lama
25%
$
3.90
Life of Mine
8-Sep-09
Copper World
100%
$
3.90
Life of Mine
10-Feb-10
Loma de La Plata
12.5%
$
4.00
Life of Mine
n/a ⁴
Marmato
100% ⁵
18% ⁶
Life of Mine
5-Nov-20
Cozamin
50% ⁵
10%
Life of Mine
11-Dec-20
Blackwater
50% ⁵
18% ⁶
Life of Mine
13-Dec-21
El Domo
75%
18% ⁶
Life of Mine
17-Jan-22
Mineral Park
100%
18% ⁶
Life of Mine
24-Oct-23
Kudz Ze Kayah
6.875 ⁷
20%
Life of Mine
22-Dec-21 ⁸
Early Deposit
Toroparu
50%
$
3.90
Life of Mine
11-Nov-13
Cotabambas
100% ⁵
$
5.90
Life of Mine
21-Mar-16
Kutcho
100%
20%
Life of Mine
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 third quarter of 2025.
4)
Terms of the agreement not yet finalized.
5)
Under certain PMPAs, the Company’s attributable silver percentage will be reduced once certain thresholds are achieved:
c. Marmato – reduced to 50% once the Company has received 2.15 million ounces of silver.
d. Cozamin – reduced to 33% once the Company has received 10 million ounces of silver.
e. Blackwater – reduced to 33% once the Company has received 17.8 million ounces of silver.
f. Cotabambas – reduced to 66.67% once the Company has received 90 million silver equivalent ounces.
6)
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.
7)
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%.
8)
On February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
WHEATON PRECIOUS METALS 2024 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
4.5% ²
18% ³
Life of Mine
16-Jul-18
Platreef
5.25% ²
30% ²
Life of Mine ²
7-Dec-21 ⁴
Platinum
Marathon
22% ²
18% ³
Life of Mine
26-Jan-22
Platreef
5.25% ²
30% ²
Life of Mine ²
7-Dec-21 ⁴
Cobalt
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 February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
Other Contractual Obligations and Contingencies
Projected Payment Dates 1
(in thousands)
2025
2026 - 2027
2028 - 2029
After 2029
Total
Payments for mineral
stream interests &
royalty
Salobo 2
$
144,000
$
-
$
16,000
$
64,000
$
224,000
Copper World 3
-
131,429
99,721
-
231,150
Marmato
81,984
-
-
-
81,984
Santo Domingo
-
162,500
97,500
-
260,000
Fenix Gold
125,000
-
-
-
125,000
El Domo
43,875
131,625
-
-
175,500
Marathon
-
-
138,995
-
138,995
Cangrejos
3,100
-
252,000
-
255,100
Curraghinalt
-
-
-
55,000
55,000
Loma de La Plata
-
-
-
32,400
32,400
Mineral Park
40,000
-
-
-
40,000
Kudz Ze Kayah
-
5,000
-
-
5,000
Koné
312,500
312,500
-
-
625,000
Kurmuk
131,250
-
-
-
131,250
Payments for early
deposit mineral stream
interest
Cotabambas
-
-
-
126,000
126,000
Toroparu
-
-
-
138,000
138,000
Kutcho
-
-
-
58,000
58,000
Leases liabilities
514
1,208
1,251
3,753
6,726
Total contractual
obligations
$
882,223
$
744,262
$
605,467
$
477,153
$
2,709,105
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 2024 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 first half of 2025. If actual throughput is expanded above 35 Mtpa by January 1, 2031,
Wheaton will be required to make additional payments to Vale ranging from $52 million if throughput is expanded
beyond 35 Mtpa by January 1, 2031, to up to $144 million if throughput is expanded beyond 35 Mtpa by January 1,
2026.
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.
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.
Marmato
Under the terms of the Marmato PMPA, the Company is committed to pay Aris Mining additional upfront cash
payments of $82 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.
Fenix
Under the terms of the Fenix PMPA, the Company is committed to pay Rio2 additional upfront cash payments of
$125 million, payable subject to certain customary conditions. Wheaton has also provided a $20 million secured
standby loan facility.
El Domo
Under the terms of the El Domo PMPA, the Company is committed to pay additional upfront cash payments of $175.5
million, which includes $0.25 million which will be paid to support certain local community development initiatives
around the El Domo Project. The payments will be payable in four staged installments during construction, subject to
various customary conditions being satisfied.
Marathon
Under the terms of the Marathon PMPA, the Company is committed to pay additional upfront cash payments of $139
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, the Company is committed to pay additional upfront consideration of $255
million. Of this amount, $3 million can be drawn upon for committed acquisition of surface rights and the remainder is
to be paid in three staged equal installments during construction of the mine, subject to various customary conditions
being satisfied.
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.
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [40]
Mineral Park
Under the terms of the Mineral Park PMPA, the Company is committed to pay a final installment of $40 million.
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, to help support the mine
construction if necessary, once the full upfront consideration under the stream has been paid.
Kudz Ze Kayah
Under the terms of the Kudz Ze Kayah PMPA (“KZK”), an additional $5 million contingency payment is due to Orion if
the KZK project achieves certain milestones.
Koné
Under the terms of the Koné PMPA, the Company is committed to pay upfront consideration of $625 million in four
equal installment payments during construction, subject to certain customary conditions. The Company has also
provided Montage Gold Corp., with a secured debt facility of up to $75 million to be allocated to project costs,
including cost overruns, prior to completion of construction and once the full upfront consideration under the Koné
PMPA has been paid.
Kurmuk
Under the terms of the Kumuk PMPA, the Company is committed to pay additional upfront consideration of $131
million in three equal installment payments during construction, subject to customary conditions.
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”) was 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”).
The Company filed Notices of Objection and paid 50% of the disputed amounts in order to challenge the Domestic
Reassessments. During the fourth quarter of 2024, this dispute was settled in the Company’s favour, and the
amounts previously paid were refunded with interest.
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [41]
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 three months ended December 31, 2024, a total of 5,560 share purchase options were exercised at a
weighted average exercise price of Cdn$37.43 per option, resulting in total cash proceeds to the Company in the
amount of $0.1 million (twelve months - $13 million from the exercise of 500,017 share purchase options at a
weighted average exercise price of Cdn$36.18). During the three months ended December 31, 2023, a total of
54,112 share purchase options were exercised at a weighted average exercise price of Cdn$42.72 per option,
resulting in total cash proceeds to the Company in the amount of $2 million (twelve months - $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, 2024, the Company released 69,494 RSUs, as compared to 119,827 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,
2024, there were 6,016 common shares issued under the DRIP (twelve months - 38,534 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).
As of March 13, 2025, there were 453,677,489 outstanding common shares, 1,070,784 share purchase options and
336,929 restricted share units.
At the Market Equity Program
The Company established an at-the-market equity program (the “ATM Program”) to allow 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.
Wheaton intended that the net proceeds from the ATM Program, if any, would be available as one potential source of
funding for stream acquisitions and/or other general corporate purposes including the repayment of indebtedness.
Given the strength of Wheaton’s balance sheet and forecasted cash flows, the Company has elected to not renew the
ATM Program, under which no shares have been issued as of December 31, 2024.
Financial Instruments
The Company owns equity interests in several companies as long-term investments (see page 14 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [42]
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, the emergence of cryptocurrencies as a store of value and hedge against inflation
in competition with precious metals, 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, DeLamar project, Koné project and Kurmuk 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, platinum,
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 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [43]
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. Effective 2024, the
income of these subsidiaries is taxable in Canada under the GMTA.
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, 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.
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.
Ongoing Audits
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [44]
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, financial institutions, and bullion banks. 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.
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 45 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. Furthermore, counterparties with which the Company has PMPAs face risks in the
jurisdictions in which they operate that could increase the likelihood that contractual and/or mineral rights as between
such counterparties and governmental or other administrative bodies may be disregarded or unilaterally altered, thus
indirectly affecting the Company’s rights under its PMPAs. 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, 2024, in 2019 the SAT issued
reassessments for the 2010 to 2012 tax years in the amount of $310.8 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
$164.3 million and in 2023, the SAT issued reassessments for the 2014, 2015 and 2016 tax years in the total amount
of $418.8 million inclusive of interest, inflation, and penalties. For the 2017 and 2018 tax years, the SAT has initiated
audits that have not yet been concluded, and therefore, tax assessments for these years have yet to be issued. 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, 2024, 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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [45]
made by the Mexican Federal Tax Court on Administrative Matters ("Federal Court") to nullify the APA granted to
PEM.
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 PEM’s constitutional arguments that were not accepted in the Mexican Circuit Court's decision, and
following the admission of the appeal, the Second Chamber of the Supreme Court of Justice assumed jurisdiction
over the appeal on June 20, 2024. The Supreme Court dismissed PEM’s appeal regarding the constitutional
arguments, but affirmed the validity of certain precedents of the Supreme Court which PEM believes are favourable
to PEM and that were not considered by the Federal Tax Court in its original decision in September 2020. The case
was sent back to the Federal Tax Court, and on December 4, 2024, the Federal Tax Court issued a new decision
which ignored the Supreme Court precedents. Accordingly, on January 23, 2025, PEM filed a new constitutional
lawsuit against the latest decision of the Federal Tax Court, and it expects that a decision on this new lawsuit will be
issued by the Collegiate Court in the second half of 2025.
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. On May 26, 2023, the NAFTA Arbitration Panel (the “Tribunal”) partially granted
certain provisional measures requested by PEM, issuing an order for Mexico to permit the withdrawal of PEM’s VAT
refunds for the period as of January 4, 2023 that had been deposited by the SAT into a frozen bank account, and to
deposit all future VAT refunds into an account which shall remain freely accessible by PEM (the "PM Decision"). On
July 9, 2024, PEM received a transfer of $11.0 million (198.4 million MXN) from the frozen bank account to a new
bank account of PEM that the Company had opened in July 2023. The transfer of such funds was carried out by
Mexico in furtherance of its obligations under the PM Decision.
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 $272.9 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 entered into a settlement agreement with the Xikrin do Cateté community, and in February
2022, entered into a settlement agreement with the Kayapó community, pursuant to which Vale agreed to provide
certain social and economic compensation to these communities. The settlement agreement with the Xikrin
community was approved by the court responsible for the Onça Puma, S11D and Salobo projects lawsuits. In
October 2022, the settlement agreement with the Kayapó community was approved by the court responsible for Onça
Puma lawsuit. In March 2023, the settlement agreement with the Xikrin community was approved by the court
responsible for the Alemão Projects lawsuit. Approval is still pending for the Ferro Carajás project. In August 2022,
the Xikrin Indigenous Community of TI Bacajá filed an appeal against the decision. Vale presented their response
and a decision on the appeal is pending. 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [46]
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, 2024 were 46%
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, 2024 were 15% of the Company’s
total revenue; and
The counterparty obligations under the Constancia PMPA are guaranteed by the parent company Hudbay
Minerals Inc. (“Hudbay”). Total revenues relative to Hudbay during the year ended December 31, 2024 were
14% 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 46% and 45% of the Company’s total revenue for the
years ended December 31, 2024 and December 31, 2023, respectively; operating cash flows from the PMPAs with
Vale represented approximately 48% and 48% of the Company’s operating cash flows for the years ended December
31, 2024 and December 31, 2023, respectively; and as at December 31, 2024, the PMPAs with Vale proven and
probable precious metal and cobalt reserves represented approximately 43% of the Company’s total proven and
probable GEO reserves, measured and indicated precious metals and cobalt resources represented approximately
21% of the Company’s GEO measured and indicated precious metals and cobalt resources and inferred precious
metals and cobalt resources represented approximately 22% 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 2025 and average five year
forecasted gold equivalent production for 2025-2029 would be lowered by 47% 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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [47]
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, 2024, 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
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [48]
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 Canada, 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
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [49]
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
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [50]
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, 2024, the trading price of the Common Shares has fluctuated as follows:
Exchange
Low
High
TSX
C$52.92
C$94.71
NYSE
$39.19
$68.53
LSE
£30.40
£53.40
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, 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.
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 44 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, 2024 and 2023, the weighted average effective interest rate paid by the
Company on its outstanding borrowings was Nil.
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During the years ended December 31, 2024 and December 31, 2023, a fluctuation in interest rates of 100 basis
points (one percent) would not have impacted the amount of interest expensed by the Company. 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.
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [52]
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.
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 opinions 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,
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but not limited to, the ability of its employees to sell precious metal or cobalt production or 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
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 and sustainability
legislation. 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 and sustainability,
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 and sustainability faced by companies. In addition, there are increasing legal and
regulatory requirements with respect to climate change and sustainability disclosure, including anti-greenwashing
related legislation, compliance with which can be complex and require extensive time and resources. Failure to
comply with such requirements has the potential to lead to significant financial and other penalties, including criminal
liability in some cases. 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 and result in litigation claims or proceedings (including, but not limited to, claims or proceedings under
greenwashing-related legislation) 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
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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.
Natural Disasters: The Company’s operations may be adversely affected by natural disasters
Wheaton’s own operations are exposed to potential natural disasters as a result of geographical location. Wheaton
has located its operations in appropriate facilities, however earthquakes, seismic activity or other natural disasters
may disrupt operations. Natural disasters may result in extended loss of power, global supply route disruption and
reduced worker productivity related to safety protocols at our operations, worker transportation to our operations
evacuation from our operations. Wheaton has developed and implemented a business continuity plan in the event of
a natural disaster, however this plan may not fully mitigate the risks associated with such natural disaster, and
Wheaton’s operations may be impacted (including, but not limited to, the ability of its employees to sell precious metal
or cobalt production or 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.
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 significant future 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 machine learning and generative artificial intelligence (“Generative
AI”), are evolving rapidly and risks regarding their use are emerging. 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.
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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
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 the Company
Wheaton’s own operations are exposed to the risk of emerging infectious diseases or the threat of outbreaks of
viruses or other contagions or epidemic diseases and as such Wheaton’s operations may be adversely affected by
such infectious disease risks. 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 or virus pandemic. As such, there are potentially significant economic and social
impacts of infectious disease risks, including the inability of the Company 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, capital markets
volatility, availability of credit, loss of investor confidence or other unknown but potentially significant impacts.
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.
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.
Critical Accounting Estimates
The preparation of financial statements in conformity with IFRS Accounting Standards 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 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 $6.4 billion at December 31,
2024, 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
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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 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.
At December 31, 2024, indicators of impairment were identified relative to the Voisey’s Bay PMPA, primarily as a result
of significant and sustained decreases in the market prices of cobalt over the year ended December 31, 2024 compared
to historical price levels. Management estimated that the recoverable amount at December 31, 2024 of the Voisey’s Bay
PMPA was less than the carrying amount and accordingly recorded an impairment charge of $109 million. Refer to Note
13 of the financial statements for further information. No such indicators of impairment were identified in 2023.
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.
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [57]
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.
New Accounting Standards Effective in 2024
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 adoption of this amendment did not have a material impact on the
Company’s financial statements.
Future Changes to Accounting Policies
The International Accounting Standards Board has issued the following new or amended standards:
IFRS 18 - Presentation and Disclosure in Financial Statements.
In April 2024, IFRS 18 Presentation and Disclosure in Financial Statements was issued. IFRS 18 replaces IAS 1
Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. IFRS 18 introduces
new requirements to: i) present specified categories and defined subtotals in the statement of earnings, ii) provide
disclosures on management-defined performance measures (MPMs) in the notes to the financial statements, iii)
improve aggregation and disaggregation. Some of the requirements in IAS 1 are moved to IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors and IFRS 7 Financial Instruments: Disclosures. There were also minor
amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share in connection with the new standard.
IFRS 18 requires retrospective application with specific transition provisions. The Company is required to apply IFRS
18 for annual reporting periods beginning on or after January 1, 2027 with early adoption permitted. The Company is
currently evaluating the impact of IFRS 18 on its financial statements.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [58]
Non-GAAP Measures
Wheaton has included, throughout this document, certain non-GAAP 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-GAAP measures do not have any standardized meaning prescribed by IFRS Accounting Standards, and
other companies may calculate these measures differently. The presentation of these non-GAAP 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 Accounting Standards.
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 Accounting
Standards, 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)
2024
2023
2024
2023
Net earnings
$
88,148
$ 168,435 $ 529,140
$ 537,644
Add back (deduct):
Impairment charge (reversal)
108,861
-
108,861
-
Gain on disposal of Mineral Stream
Interest
-
-
-
(5,027)
(Gain) loss on fair value adjustment of
share purchase warrants held
910
(217)
8
31
Deferred income tax (expense) recovery
recognized in the Statement of OCI
1,225
(3,487)
2,857
3,719
Income tax recovery related to prior year
disposal of Mineral Stream Interest
-
-
-
(2,672)
Other
(175)
(162)
(696)
(644)
Adjusted net earnings
$ 198,969 $ 164,569 $ 640,170 $ 533,051
Divided by:
Basic weighted average number of
shares outstanding
453,669
453,010
453,460
452,814
Diluted weighted average number of
shares outstanding
454,361
453,611
454,119
453,463
Equals:
Adjusted earnings per share - basic
$
0.439
$
0.363 $
1.412
$
1.177
Adjusted earnings per share - diluted
$
0.438 $
0.363 $
1.410 $
1.176
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [59]
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).
Three Months Ended
December 31
Years Ended
December 31
(in thousands, except for per share amounts)
2024
2023
2024
2023
Cash generated by operating activities
$ 319,471 $ 242,226 $ 1,027,581 $ 750,809
Divided by:
Basic weighted average number of
shares outstanding
453,669
453,010
453,460
452,814
Diluted weighted average number of
shares outstanding
454,361 453,611
454,119 453,463
Equals:
Operating cash flow per share - basic
$
0.704 $
0.535 $
2.266 $
1.658
Operating cash flow per share - diluted
$
0.703 $
0.534 $
2.263 $
1.656
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [60]
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 and cost of sales related to delay ounces, 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 Accounting Standards. In addition to
conventional measures prepared in accordance with IFRS Accounting Standards, 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.
Three Months Ended
December 31
Years Ended
December 31
(in thousands, except for gold and palladium ounces sold
and per unit amounts)
2024
2023
2024
2023
Cost of sales
$ 133,109 $ 136,283 $ 482,052 $ 442,605
Less: depletion
(68,873)
(68,526)
(246,944)
(214,434)
Less: cost of sales related to delay ounces 1
(1,396)
-
(3,095)
-
Cash cost of sales
$
62,840 $
67,757 $ 232,013 $ 228,171
Cash cost of sales is comprised of:
Total cash cost of gold sold
$
38,556 $
50,246 $ 146,271 $ 148,972
Total cash cost of silver sold
22,213
15,945
80,022
72,296
Total cash cost of palladium sold
816
662
3,088
3,360
Total cash cost of cobalt sold 2
1,255
904
2,632
3,543
Total cash cost of sales
$
62,840 $
67,757 $ 232,013 $ 228,171
Divided by:
Total gold ounces sold
87,662
115,011 332,701
327,336
Total silver ounces sold
4,307
3,175
16,072
14,326
Total palladium ounces sold
4,434
3,339
17,270
13,919
Total cobalt pounds sold
485
288
970
1,074
Equals:
Average cash cost of gold (per ounce)
$
440 $
437 $
440 $
455
Average cash cost of silver (per ounce)
$
5.16 $
5.02 $
4.98 $
5.05
Average cash cost of palladium (per ounce)
$
184 $
198 $
179 $
241
Average cash cost of cobalt (per pound) 2
$
2.59 $
3.14 $
2.71 $
3.30
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
2) 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 of cobalt sold).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [61]
iv.
Cash operating margin is calculated by adding back depletion and the cost of sales related to delay ounces
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.
Three Months Ended
December 31
Years Ended
December 31
(in thousands, except for gold and palladium ounces sold and per
unit amounts)
2024
2023
2024
2023
Gross margin
$ 247,407 $ 177,188 $
802,587 $ 573,440
Add back: depletion
68,873
68,526
246,944
214,434
Add back: cost of sales related to delay ounces 1
1,396
-
3,095
-
Cash operating margin
$ 317,676 $ 245,714 $ 1,052,626 $ 787,874
Cash operating margin is comprised of:
Total cash operating margin of gold sold
$ 196,134 $ 180,470 $
649,780 $ 495,159
Total cash operating margin of silver sold
112,520
59,520
377,808 266,298
Total cash operating margin of palladium sold
3,652
2,912
13,911
15,136
Total cash operating margin of cobalt sold
5,370
2,812
11,127
11,281
Total cash operating margin
$ 317,676 $ 245,714 $ 1,052,626 $ 787,874
Divided by:
Total gold ounces sold
87,662
115,011
332,701
327,336
Total silver ounces sold
4,307
3,175
16,072
14,326
Total palladium ounces sold
4,434
3,339
17,270
13,919
Total cobalt pounds sold
485
288
970
1,074
Equals:
Cash operating margin per gold ounce sold
$
2,237 $
1,569 $
1,953 $
1,513
Cash operating margin per silver ounce sold
$
26.12 $
18.75 $
23.51 $
18.59
Cash operating margin per palladium ounce sold $
824 $
872 $
805 $
1,088
Cash operating margin per cobalt pound sold
$
11.07 $
9.78 $
11.47 $
10.51
1) The cost of sales related to delay ounces is a non-cash expense (see footnote 3 on page 9 of this MD&A for more information).
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [62]
Subsequent Events
Declaration of Dividend
The Company has increased its quarterly dividend under its dividend policy, setting it at $0.165 per common share for
2025. This represents a 6.5% increase over the quarterly dividend paid in 2024 and represents the second
consecutive year that the dividend has been increased, highlighting the Company's commitment to a progressive
dividend. The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of
Directors.
On March 13, 2025, the Board of Directors declared a dividend in the amount of $0.165 per common share, with this
dividend being payable to shareholders of record on April 1, 2025 and is expected to be distributed on or about April
11, 2025. 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.
Amendment to Blackwater PMPA
On March 7, 2025, the Company amended its PMPA (the “Blackwater Silver PMPA”) with Artemis Gold Inc.
(“Artemis”) in respect of silver production from the Blackwater Project located in British Columbia in Canada (the
“Blackwater Project”). Under the Blackwater Silver PMPA, Wheaton will acquire an amount of silver equal to 50% of
the payable silver until 17.8 million ounces have been delivered and 33% of payable silver thereafter for the life of the
mine.
Previously, the determination of payable silver production under the Blackwater Silver PMPA required the application
of a complex metallurgical protocol to determine the silver content of the mill feed and applied a fixed recovery rate of
61%. As a result of the amendment, the amount of payable silver will be determined based on a fixed ratio of silver to
gold ounces produced. The ratio will be as follows:
5.17 ounces of silver for every ounce of gold produced while the plant throughput is less than 15Mtpa;
5.10 ounces of silver for every ounce of gold produced while the plant throughput exceeds 15Mtpa, but is
less than 20Mtpa; and
5.07 ounces of silver for every ounce of gold produced while the plant throughput exceeds 20Mtpa.
Once 17.8 million ounces of silver have been delivered, the determination of payable silver will revert to being based
on a fixed silver recovery factor, consistent with the previous terms of the Blackwater Silver PMPA. As a result of the
changed payable silver profile which is expected to deliver silver ounces to the Company sooner relative to the
original profile, coupled with the administrative benefits when it comes to determining payable silver, on March 10,
2025, the Company paid Artemis $30 million in connection with this amendment.
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, 2024.
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, 2024.
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [63]
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, 2024.
There have been no changes in the Company’s internal control over financial reporting during the three months
ended December 31, 2024 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
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [64]
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, 2024, 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 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [65]
Mineral Reserves Attributable to Wheaton Precious Metals (1,2,3,8,41)
December 31, 2024 (6)
December 31, 2023
Proven
Probable
Proven & Probable
Proven & Probable
Tonnage
Grade Contained Tonnage
Grade Contained Tonnage
Grade Contained
Process
Recovery % (7)
Tonnage
Grade Contained
Asset
Interest
Mt g/t / %Moz / Mlbs
Mt g/t / %Moz / Mlbs
Mt g/t / % Moz / Mlbs
Mt g/t / %Moz / Mlbs
Gold
Black Pine Royalty (32)
0.5%
-
-
-
1.5
0.32
0.02
1.5
0.32
0.02
70%
-
-
-
Blackwater (11,27)
8%
23.4
0.74
0.56
0.7
0.80
0.02
24.1
0.74
0.57
91%
24.1
0.74
0.57
Cangrejos (11,31)
6.6%
-
-
-
43.5
0.55
0.76
43.5
0.55
0.76
85%
43.5
0.55
0.76
Constancia
50%
242.8
0.05
0.39
31.1
0.03
0.03
273.9
0.05
0.43
61%
273.9
0.05
0.43
Copper World
Complex (21)
100%
319.4
0.03
0.27
65.7
0.02
0.04
385.1
0.02
0.31
60%
385.1
0.02
0.31
Curraghinalt (11,33)
3.05%
0.002
9.14
0.001
0.4
6.43
0.08
0.4
6.45
0.08
94%
0.4
6.45
0.08
DeLamar Royalty(37)
1.5%
0.2
0.46
0.00
1.2
0.39
0.02
1.4
0.40
0.02
72%
1.4
0.40
0.02
El Domo (11,29)
50%
1.6
2.83
0.14
1.7
2.23
0.12
3.2
2.52
0.26
53%
-
-
-
Fenix (11,26)
22%
8.3
0.50
0.13
6.8
0.45
0.10
15.1
0.48
0.23
75%
15.1
0.48
0.23
Goose (11,30)
2.78%
0.2
5.54
0.04
0.3
6.29
0.06
0.5
5.97
0.10
93%
0.5
5.97
0.10
Koné (11,38)
19.5%
-
-
-
26.7
0.72
0.62
26.7
0.72
0.62
89%
26.7
0.72
0.62
Kudz Ze Kayah (11,34)
7.27%
-
-
-
1.1
1.32
0.05
1.1
1.32
0.05
64%
1.1
1.32
0.05
Kurmuk (11,39)
6.7%
1.5
1.51
0.07
2.6
1.35
0.11
4.1
1.41
0.18
92%
4.1
1.41
0.18
Kutcho (12)
100%
6.8
0.37
0.08
10.6
0.39
0.13
17.4
0.38
0.21
41%
17.4
0.38
0.21
Marathon (11,28)
100%
111.6
0.07
0.25
12.5
0.06
0.02
124.2
0.07
0.28
71%
124.2
0.07
0.28
Marmato (11,15)
10.5%
0.2
4.31
0.03
3.0
3.07
0.30
3.2
3.16
0.33
90%
3.3
3.16
0.33
Mt Todd Royalty (11,36)
1%
0.7
0.84
0.02
1.7
0.75
0.04
2.4
0.77
0.06
92%
2.4
0.77
0.06
Platreef (11,35)
62.5%
-
-
-
72.3
0.29
0.67
72.3
0.29
0.67
79%
69.8
0.30
0.67
Salobo (10)
75%
194.3
0.37
2.31
599.0
0.34
6.54
793.2
0.35
8.85
72%
816.7
0.35
9.24
San Dimas (14)
25%
0.5
3.47
0.06
0.4
2.69
0.04
0.9
3.11
0.09
95%
0.9
3.11
0.09
Santo Domingo (11,25)
100%
125.9
0.07
0.28
293.5
0.04
0.33
419.4
0.05
0.61
56%
392.3
0.04
0.51
Stillwater (13)
100%
9.5
0.34
0.10
35.1
0.37
0.41
44.5
0.36
0.52
69%
60.4
0.37
0.72
Sudbury (11)
70%
7.7
0.34
0.08
20.3
0.23
0.15
28.0
0.26
0.24
75%
28.4
0.27
0.25
Total Gold
4.82
10.66
15.48
15.70
Silver
Aljustrel (19)
100%
6.1
44.5
8.7
18.2
43.0
25.2
24.3
43.4
33.9
26%
35.5
44.5
50.7
Antamina (10,11,18)
33.75%
Copper
66.7
8.1
17.4
64.0
9.4
19.3
130.6
8.7
36.7
75%
53.7
7.9
13.7
Copper-Zinc
16.9
18.1
9.8
38.1
19.2
23.5
55.0
18.8
33.3
75%
22.6
17.0
12.4
Blackwater (11,27)
50%
165.2
5.8
30.7
4.7
5.8
0.9
169.9
5.8
31.6
61%
166.5
5.8
31.0
Constancia
100%
485.6
2.7
42.9
62.1
2.2
4.5
547.7
2.7
47.3
70%
547.7
2.7
47.3
Copper World
Complex (21)
100%
319.4
5.7
58.3
65.7
4.3
9.1
385.1
5.4
67.4
76%
385.1
5.4
67.4
Cozamin (11,20)
50%
Copper
-
-
-
3.9
42.9
5.4
3.9
42.9
5.4
86%
3.9
42.9
5.4
Zinc
-
-
-
0.5
50.9
0.9
0.5
50.9
0.9
60%
0.5
50.9
0.9
DeLamar Royalty (37)
1.5%
0.2
23.3
0.1
1.2
16.5
0.6
1.4
17.3
0.8
37%
1.4
17.3
0.8
El Domo (11,29)
75%
2.4
41.4
3.1
2.5
49.7
4.0
4.9
45.7
7.1
63%
-
-
-
Kudz Ze Kayah (11,34)
7.21%
-
-
-
1.1
137.5
4.8
1.1
137.5
4.8
86%
1.1
137.5
4.8
Kutcho (12)
100%
6.8
24.5
5.4
10.6
30.1
10.2
17.4
27.9
15.6
46%
17.4
27.9
15.6
Los Filos (11,40)
100%
13.0
4.2
1.8
57.8
6.0
11.1
70.7
5.6
12.8
10%
118.2
6.7
25.6
Marmato (11,15)
100%
2.1
16.4
1.1
27.6
5.3
4.7
29.7
6.1
5.8
34%
30.2
6.1
5.9
Mineral Park
100%
93.2
2.4
7.3
95.0
2.4
7.3
188.3
2.4
14.6
61%
183.7
2.5
14.6
Neves-Corvo
100%
Copper
2.7
31.9
2.7
17.4
31.6
17.7
20.1
31.6
20.5
24%
21.2
33.0
22.5
Zinc
4.1
67.4
8.8
14.6
60.7
28.6
18.7
62.2
37.4
30%
21.6
63.2
43.8
Peñasquito (10)
25%
24.6
34.2
27.1
39.5
28.5
36.2
64.2
30.7
63.3
82%
72.8
33.4
78.2
San Dimas (14)
25%
0.5
264.6
4.2
0.4
254.0
3.4
0.9
259.7
7.6
94%
0.9
259.7
7.6
Zinkgruvan
100%
Zinc
3.9
65.0
8.2
7.4
83.0
19.6
11.3
76.7
27.8
83%
11.0
73.6
26.1
Copper
1.4
32.7
1.4
0.2
35.2
0.2
1.6
33.1
1.7
70%
1.4
35.0
1.6
Total Silver
239.0
237.3
476.3
475.7
Palladium
Platreef (11,35)
5.25%
-
-
-
5.7
1.9
0.35
5.7
1.9
0.35
87%
5.5
2.0
0.35
Stillwater (11,13)
4.5%
0.3
10.2
0.10
1.1
10.4
0.38
1.4
10.3
0.48
90%
1.6
10.6
0.55
Total Palladium
0.10
0.73
0.83
0.90
Platinum
Marathon (11,28)
22%
25.3
0.2
0.16
2.8
0.1
0.01
28.1
0.2
0.18
76%
28.1
0.2
0.18
Platreef (11,35)
5.25%
-
0.0
-
5.7
1.9
0.34
5.7
1.9
0.34
87%
5.5
1.9
0.34
Total Platinum
0.16
0.35
0.52
0.52
Cobalt
Voisey's Bay (11,22)
42.4%
5.9
0.10
13.6
6.5
0.12
17.0
12.4
0.11
30.6
84%
13.2
0.11
32.3
Total Cobalt
13.6
17.0
30.6
32.3
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [66]
Mineral Resources Attributable to Wheaton Precious Metals (1,2,3,4,5,9,41)
December 31, 2024 (6)
Measured
Indicated
Measured & Indicated
Inferred
Tonnage
Grade Contained Tonnage
Grade Contained Tonnage
Grade Contained Tonnage
Grade Contained
Interest
Mt
g/t / % Moz / Mlbs
Mt
g/t / % Moz / Mlbs
Mt
g/t / % Moz / Mlbs
Mt
g/t / % Moz / Mlbs
Gold
Black Pine Royalty (32)
0.5%
-
-
-
0.5
0.32
0.01
0.5
0.32
0.01
0.5
0.23
0.004
Blackwater (11,27)
8%
4.1
0.35
0.05
6.4
0.49
0.10
10.5
0.44
0.15
0.7
0.45
0.01
Brewery Creek Royalty (24)
2%
0.3
1.06
0.01
0.5
1.02
0.02
0.8
1.03
0.03
1.0
0.88
0.03
Cangrejos (11,31)
6.6%
-
-
-
20.6
0.38
0.25
20.6
0.38
0.25
13.0
0.39
0.16
Constancia
50%
39.2
0.04
0.05
46.6
0.04
0.06
85.8
0.04
0.11
18.5
0.07
0.04
Copper World Complex (21)
100%
424.0
0.02
0.30
191.0
0.02
0.10
615.0
0.02
0.40
192.0
0.01
0.08
Cotabambas (12,23)
25%
-
-
-
126.8
0.20
0.82
126.8
0.20
0.82
105.9
0.17
0.57
Curraghinalt (11,33)
3.05%
-
-
-
-
-
-
-
-
-
0.2
12.24
0.07
DeLamar Royalty (37)
1.5%
0.1
0.27
0.001
1.0
0.21
0.01
1.0
0.21
0.01
0.4
0.25
0.00
El Domo (11,29)
50%
-
-
-
1.2
1.63
0.06
1.2
1.63
0.06
0.4
1.62
0.02
Fenix (11,26)
22%
2.4
0.34
0.03
8.5
0.34
0.09
10.9
0.34
0.12
3.2
0.33
0.03
Goose (11,30)
2.78%
0.0
4.94
0.004
0.1
5.18
0.01
0.1
5.13
0.02
0.1
6.64
0.03
Koné (11,38)
19.5%
-
-
-
3.5
0.40
0.05
3.5
0.40
0.05
1.4
0.50
0.02
Kudz Ze Kayah (11,34)
7.27%
-
-
-
0.2
1.64
0.01
0.2
1.64
0.01
0.0
1.18
0.00
Kurmuk (11,39)
6.7%
0.2
1.30
0.01
0.5
1.35
0.02
0.6
1.34
0.03
0.4
1.62
0.02
Kutcho (12)
100%
0.41
0.20
0.003
5.0
0.38
0.06
5.4
0.37
0.06
12.9
0.25
0.10
Marathon (11,28)
100%
30.2
0.07
0.06
39.6
0.06
0.08
69.8
0.06
0.14
19.1
0.04
0.03
Marmato (11,15)
10.5%
0.1
5.04
0.01
1.7
2.28
0.13
1.8
2.40
0.14
1.9
2.43
0.15
Metates Royalty (17)
0.5%
0.2
0.86
0.004
4.5
0.56
0.08
4.6
0.57
0.08
0.7
0.47
0.01
Mt Todd Royalty (11,36)
1%
0.0
1.15
0.0001
0.1
1.50
0.01
0.1
1.49
0.01
0.4
0.77
0.01
Platreef (11,35)
62.5%
-
-
-
7.7
0.26
0.07
7.7
0.26
0.07
15.8
0.26
0.13
Salobo (10)
75%
16.8
0.17
0.09
396.8
0.24
3.01
413.6
0.23
3.10
204.0
0.29
1.87
San Dimas (14)
25%
0.2
5.94
0.03
0.1
2.24
0.01
0.3
4.20
0.04
1.0
3.67
0.117
Santo Domingo (11,25)
100%
2.0
0.02
0.001
72.3
0.03
0.07
74.3
0.03
0.07
154.1
0.03
0.13
Stillwater (13)
100%
16.3
0.37
0.20
18.8
0.35
0.21
35.1
0.36
0.40
91.2
0.39
1.14
Sudbury (11)
70%
4.0
0.70
0.09
4.3
0.23
0.03
8.2
0.45
0.12
1.1
0.40
0.014
Toroparu (12,16)
10%
4.2
1.45
0.20
7.3
1.46
0.34
11.5
1.45
0.54
2.1
1.71
0.117
Total Gold
1.13
5.69
6.82
4.92
Silver
Aljustrel (19)
100%
16.6
46.4
24.7
18.5
41.8
24.9
35.1
44.0
49.6
26.8
42.4
36.4
Antamina (10,11,18)
33.75%
Copper
29.0
6.5
6.1
50.6
8.6
14.0
79.7
7.8
20.1
206.8
9.1
60.7
Copper-Zinc
6.1
25.9
5.1
19.9
17.5
11.2
26.0
19.5
16.3
82.8
15.6
41.4
Blackwater (11,27)
50%
33.7
4.7
5.1
52.9
8.7
14.8
86.6
7.1
19.9
5.6
12.8
2.3
Constancia
100%
78.4
2.2
5.5
93.1
2.0
5.9
171.5
2.1
11.5
36.9
3.6
4.3
Copper World Complex (21)
100%
424.0
4.1
55.9
191.0
3.5
21.5
615.0
3.9
77.4
192.0
3.1
19.1
Cotabambas (12,23)
100%
-
-
-
507.3
2.4
39.5
507.3
2.4
39.5
423.6
2.5
34.5
Cozamin (11,20)
50%
Copper
0.2
53.8
0.3
3.3
40.7
4.3
3.5
41.4
4.6
2.2
41.8
3.0
Zinc
-
-
-
1.4
36.5
1.7
1.4
36.5
1.7
1.7
33.8
1.8
DeLamar Royalty (37)
1.5%
0.1
12.9
0.0
1.0
10.0
0.3
1.0
10.2
0.3
0.4
8.4
0.1
El Domo (11,29)
75%
-
-
-
1.8
38.4
2.2
1.8
38.4
2.2
0.7
31.6
0.7
Kudz Ze Kayah (11,34)
7.21%
-
-
-
0.2
186.4
1.4
0.2
186.4
1.4
0.0
143.4
0.2
Kutcho (12)
100%
0.4
28.0
0.4
5.0
25.7
4.1
5.4
25.9
4.5
12.9
20.0
8.3
Loma de La Plata
12.5%
-
-
-
3.6
169.0
19.8
3.6
169.0
19.8
0.2
76.0
0.4
Marmato (11,15)
100%
0.7
25.3
0.6
16.3
6.0
3.1
17.0
6.8
3.7
17.8
3.2
1.8
Metates Royalty (17)
0.5%
0.2
18.2
0.1
4.5
14.2
2.0
4.6
14.3
2.1
0.7
13.2
0.3
Mineral Park
100%
45.0
2.0
2.8
377.3
2.1
25.0
422.3
2.0
27.8
382.7
1.2
14.8
Neves-Corvo
100%
Copper
5.1
48.6
7.9
30.1
48.9
47.3
35.2
48.8
55.3
21.1
25.3
17.2
Zinc
9.6
61.7
19.1
35.0
57.6
64.9
44.7
58.5
84.0
4.0
56.8
7.3
Peñasquito (10)
25%
12.1
27.2
10.5
40.8
24.8
32.6
52.8
25.4
43.1
5.3
25.4
4.3
Pascua-Lama
25%
10.7
57.2
19.7
97.9
52.2
164.4
108.6
52.7
184.1
3.8
17.8
2.2
San Dimas (14)
25%
0.2
446.2
2.4
0.1
193.0
0.9
0.3
327.1
3.3
1.0
306.3
9.7
Stratoni
100%
-
-
-
1.4
151.7
6.8
1.4
151.7
6.8
1.8
166.5
9.7
Toroparu (12,16)
50%
21.2
1.8
1.2
36.3
1.2
1.4
57.5
1.4
2.7
10.6
0.8
0.3
Zinkgruvan
100%
Zinc
3.6
88.1
10.3
3.8
68.9
8.4
7.4
78.3
18.7
14.5
100.0
46.8
Copper
0.9
33.7
1.0
0.3
37.5
0.3
1.2
34.6
1.3
0.2
30.0
0.2
Total Silver
178.7
522.7
701.4
327.8
Palladium
Platreef (11,35)
5.25%
-
-
-
0.3
1.5
0.01
0.3
1.5
0.01
0.5
1.5
0.02
Stillwater (11,13)
4.5%
0.2
11.0
0.06
0.2
9.6
0.06
0.4
10.3
0.12
0.9
10.9
0.32
Total Palladium
0.06
0.07
0.13
0.34
Platinum
Marathon (11,28)
22.0%
7.1
0.17
0.04
9.4
0.1
0.04
16.5
0.1
0.08
4.3
0.1
0.01
Platreef (11,35)
5.25%
-
0.0
-
0.3
1.5
0.01
0.3
1.5
0.01
0.5
1.4
0.02
Total Platinum
0.04
0.05
0.09
0.04
Cobalt
Voisey's Bay (11,22)
42.4%
0.5
0.06
0.6
0.4
0.07
0.6
0.9
0.06
1.2
2.8
0.12
7.4
Total Cobalt
0.6
0.6
1.2
7.4
WHEATON PRECIOUS METALS 2024 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.
Neil Burns, M.Sc., P.Geo. (Vice President, Technical Services); and
b.
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, 2024 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, Moinho and São João mines are reported as of December 31, 2023, and the Estação project as
of September 2022. Mineral Reserves for Feitais, Moinho and Estação are reported as of December 31, 2023.
b.
Mineral Resources and Mineral Reserves for the Black Pine project are reported as of June 1, 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 Copper World Complex project are reported as of July 1, 2023.
g.
Mineral Resources for the Cotabambas project are reported as of November 20, 2023.
h.
Mineral Resources for the Curipamba project are reported as of October 26, 2021 and Mineral Reserves as of October 22, 2021.
i.
Mineral Resources for the Curraghinalt project are reported as of May 10, 2018 and Mineral Reserves as of February 25, 2022.
j.
Mineral Resources for the DeLamar project are reported as of August 25, 2023 and Mineral Reserves as of January 24, 2022.
k.
Mineral Resources and Mineral Reserves for the Fenix project are reported as of October 16, 2023.
l.
Mineral Resources for the Goose project are reported as of December 31, 2020 and Mineral Reserves as of January 15, 2021.
m.
Mineral Resources for the Koné project are reported as of December 19, 2023 and Mineral Reserves as of January 15, 2024.
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 January 31, 2025 and Mineral Reserves as of February 10, 2025.
v.
Mineral Resources and Mineral Reserves for the Platreef project are reported as of February 15, 2025.
w.
Mineral Resources and Mineral Reserves for the Santo Domingo project are reported as of March 31, 2024.
x.
Mineral Resources for the Stratoni mine are reported as of September 30, 2024.
y.
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.
Aljustrel mine – 2.5% zinc cut-off for the Feitais and Moinho mines and the Estação project.
b.
Antamina mine - $6,000 per hour of mill operation cut-off assuming $3.54 per pound copper, $1.15 per pound zinc, $11.10 per pound
molybdenum and $21.46 per ounce silver.
c.
Black Pine – 0.1 grams per tonne gold cut-off assuming $1,650 per ounce gold.
d.
Blackwater project – NSR cut-off of Cdn$13.00 per tonne assuming $1,400 per ounce gold and $15.00 per ounce silver.
e.
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.
f.
Constancia mine – NSR cut-off of $6.40 per tonne for Constancia and $7.30 per tonne for Pampacancha assuming $1,700 per ounce gold,
$23.00 per ounce silver, $4.00 per pound copper and $12.00 per pound molybdenum.
g.
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.
h.
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.
i.
Curraghinalt project - 3.0 grams per tonne gold cut-off assuming $1,200 per ounce gold.
j.
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,
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [68]
$0.92 per pound lead and $1.16 per pound zinc.
k.
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.
l.
Fenix project – 0.235 grams per tonne gold cut-off assuming $1.650 per ounce gold.
m.
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.
n.
Koné project - gold grade cut-offs ranging from 0.19 to 0.49 grams per tonne assuming $1,550 per ounce gold.
o.
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.
p.
Kurmuk project - gold grade cut-offs ranging from 0.30 to 0.45 grams per tonne assuming $1,500 per ounce gold.
q.
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.
r.
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.
s.
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.
t.
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.
u.
Mineral Park project - NSR cut-off of $10.47 per tonne assuming $3.75 per pound copper, $19.00 per pound molybdenum and $21.50 per
ounce silver.
v.
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.
w.
Neves-Corvo mine – NSR cut-offs ranging from EUR 60 to 80 per tonne depending on area and mining method for both the copper and
zinc Mineral Reserves assuming $3.85 per pound copper, $0.90 per pound lead and $1.15 per pound zinc.
x.
Peñasquito mine - $1,700 per ounce gold, $20.00 per ounce silver, $0.90 per pound lead and $1.20 per pound zinc.
y.
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.
z.
Salobo mine – 0.25% copper equivalent cut-off assuming $1,525 per ounce gold and $3.52 per pound copper.
aa.
San Dimas mine – $1,850 per ounce gold and $22.50 per ounce silver.
bb.
Santo Domingo project – NSR cut-off of $9.77 per tonne assuming $3.75 per pound copper, $1,400 per ounce gold and $69 to $115 per
tonne iron.
cc.
Stillwater mines - combined platinum and palladium cut-off of 11.1 grams per tonne for Stillwater and 8.8 grams per tonne for East Boulder
assuming $1,172 per ounce 2E PGM prices.
dd.
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.
ee.
Voisey’s Bay mines – NSR cut-offs of Cdn $28.35 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.
ff.
Zinkgruvan mine – NSR cut-offs ranging from SEK 1,100 to 1,350 per tonne depending on area and mining method for both the zinc and
lead Mineral Reserves and SEK 1,120 per tonne for the copper Mineral Reserves assuming $3.85 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.
Aljustrel mine – 2.5% zinc cut-off for Feitais, Moinho and St João mines and the Estação project.
b.
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, $1.25 per pound zinc, $13.30 per pound molybdenum and $24.63 per ounce silver.
c.
Black Pine – 0.1 grams per tonne gold cut-off assuming $2,000 per ounce gold.
d.
Blackwater project – 0.2 grams per tonne gold equivalent cut-off assuming $1,400 per ounce gold and $15.00 per ounce silver.
e.
Brewery Creek project – 0.37 grams per tonne gold cut-off assuming $1,500 per ounce gold.
f.
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.
g.
Constancia mine – NSR cut-off of $6.40 per tonne for open pit and 0.65% copper cut-off for underground, both assuming $1,700 per ounce
gold, $23.00 per ounce silver, $4.00 per pound copper and $12.00 per pound molybdenum.
h.
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.
i.
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.
j.
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.
k.
Curraghinalt project – 5.0 grams per tonne gold cut-off assuming $1,200 per ounce gold.
l.
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [69]
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
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.
Koné project - 0.2 grams per tonne gold cut-off for the Koné deposit and 0.5 grams per tonne for the Gbongogo deposit, both assuming
a gold price of $1,800 per ounce.
q.
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.
r.
Kurmuk project - gold grade cut-off of 0.5 grams per tonne assuming a gold price of $1,800 per ounce.
s.
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.
t.
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.
u.
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.
v.
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.
w.
Metates royalty – 0.26 grams per tonne gold equivalent cut-off assuming $1,600 per ounce gold and $20.00 per ounce silver.
x.
Mineral Park project – NSR cut-off of $8.82 per tonne assuming $4.25 per pound copper, $21.00 per pound molybdenum and $27.00 per
ounce silver.
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.
aa.
Pascua-Lama project – $1,700 per ounce gold, $21.00 per ounce silver and $3.75 per pound copper.
bb.
Peñasquito mine - $2,000 per ounce gold, $23.00 per ounce silver, $1.00 per pound lead and $1.30 per pound zinc.
cc.
Platreef project - 2.0 grams per tonne 3PE + Au (platinum, palladium, rhodium and gold) cut-off assuming $1,200 per ounce platinum,
$1,130 per ounce palladium, $2,170 per ounce gold, $5,000 per ounce rhodium, $8.50 per pound nickel and $4.25 per pound copper.
dd.
Salobo mine – 0.25% copper equivalent cut-off assuming $1,525 per ounce gold and $4.09 per pound copper.
ee.
San Dimas mine – 215 grams per tonne silver equivalent cut-off assuming $2,000 per ounce gold and $24.50 per ounce silver.
ff.
Santo Domingo project – NSR cut-off of $9.85 per tonne assuming $4.10 per pound copper, $1,600 per ounce gold and $95 to $140 per
tonne iron.
gg.
Stillwater mines – combined platinum and palladium cut-off of 9.7 grams per tonne for Stillwater and 7.2 grams per tonne for East Boulder
assuming $1,350 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.
Sudbury mines - $1,000 to $1,950 per ounce gold, $6.07 to $8.53 per pound nickel, $2.77 to $4.31 per pound copper, $1,124 to $1,350
per ounce platinum, $925 to $1,450 per ounce palladium and $20.41 to $25.54 per pound cobalt.
jj.
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 $28.35 per tonne for Discovery Hill Open Pit and Cdn$230 to $250 per tonne for Reid Brook and
Cdn$210 to $250 per tonne for 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 900 to 1,150 per tonne depending on area and mining method for the zinc Mineral
Resources and NSR cut-off of SEK 900 per tonne for the copper Mineral Resources assuming $4.43 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.
Antamina – Teck Resources Annual Information Form filed on SEDAR on February 19, 2025.
b.
Peñasquito – Newmont’s December 31, 2024 Resources and Reserves press release dated February 20, 2025 and
c.
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, Los Filos 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, Koné gold interest, Kurmuk gold interest 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 2024 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.
Stillwater mine: Pd = (Pt + Pd) / (1/3.51 + 1) and Au = (Pd + Pt) x 0.0238
b.
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.
Under the Company’s Toroparu Early Deposit Agreement, 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 Metates Royalty entitles the Company to a 0.5% net smelter return royalty.
18.
The Antamina PMPA 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 new 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 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.
Under the Cotabambas Early Deposit Agreement, 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.
Under the Brewery Creek Royalty, 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 project, above which the NSR will increase to 2.75%. Victoria Gold 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 22% of the gold production until 130,625 ounces are delivered, then 6% of the gold
production until 185,000 ounces are delivered, then 4% of the gold production until 235,000 ounces are delivered and 3.5% thereafter for the life
of the mine. Attributable reserves and resources have been calculated on this 22% / 6% / 4% / 3.5% basis.
27.
The Blackwater Silver and Blackwater Gold PMPAs 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 Gen Mining 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
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.
30.
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 Goose PMPA with Sabina, a subsidiary of B2Gold, 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 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 Black Pine Royalty provides that 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 Gold 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. The Platreef Palladium and Platinum PMPA provides that Ivanhoe will deliver 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 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [71]
36.
The Mt Todd Royalty provides that 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 DeLamar Royalty provides that the Company will be entitled to a 1.5% net smelter return on Oxide and Mixed material. Attributable
resources and reserves have been calculated on the 1.5% basis.
38.
The Koné PMPA provides that Montage will deliver gold equal to 19.5% of the payable gold production until 400,000 ounces of gold are
delivered, then 10.8% until 530,000 ounces are delivered and 5.4% thereafter for the life of the mine. Attributable reserves and resources have
been calculated on the 19.5% / 10.8% / 5.4% basis.
39.
The Kurmuk PMPA provides that Allied will deliver gold equal to 6.7% of the payable gold production until 220,000 ounces of gold are delivered,
then 4.8% thereafter for the life of the mine. Attributable reserves and resources have been calculated on the 6.7% / 4.8% basis.
40.
The Los Filos PMPA has a 25-year term and is expected to terminate on October 15, 2029. Attributable reserves have been limited to this term
and include only heap leach material as detailed in Equinox’s October, 2022 technical report for the Los Filos mine.
41.
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, DeLamar project, Koné project and Kurmuk
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 2024 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 or other payments 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;
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 taxes payable under the GMT and the impact of
the CRA Settlement, and the Company’s ability to pay its taxes;
possible CRA domestic audits for taxation years subsequent to 2017 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;
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [73]
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, or the ability to pay such taxes as and when due;
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 Wheaton’s interpretation of, compliance with, or application of the GMT, including
Canada’s GMTA, and the legislation enacted in Luxembourg, that applies to the income of the Company’s
subsidiaries for fiscal years beginning on or after December 31, 2023;
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;
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;
equity price risks related to Wheaton’s holding of long-term investments in other companies;
risks relating to activist shareholders;
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [74]
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
and that Wheaton will be able to pay taxes when due;
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
GMT is accurate;
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
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.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT- MANAGEMENT DISCUSSION & ANALYSIS [75]
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, 2023 and other continuous disclosure
documents filed by Wheaton since January 1, 2024, 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 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [2]
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 IFRS Accounting Standards as issued by the International Accounting Standards Board
(“IFRS Accounting Standards”). 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
/s/ Gary Brown
Randy Smallwood
Gary Brown
President & Chief Executive Officer
Senior Vice President & Chief Financial Officer
March 13, 2025
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [3]
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, 2024 and 2023, 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, 2024, 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, 2024 and 2023, and its financial performance and its cash flows for each of the two years in the period ended
December 31, 2024, in accordance with IFRS Accounting 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, 2024, 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 13, 2025, 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 Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial
statements that were communicated or required to be communicated to the audit committee and that (1) relate 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 matters
below, providing a separate opinion on the critical audit matters or on the accounts or disclosures to which they
relate.
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
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [4]
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.
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;
-
Assessing management's expected future recoverable ounces of attributable metals by
considering the 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.
Impairment of Mineral Stream Interests: Voisey’s Bay – Refer to Note 13 to the financial statements
Critical Audit Matter Description
Due to a significant decline in market cobalt prices, an indicator of impairment was identified for the Voisey’s Bay
PMPA CGU. Due to the indicator of impairment, the recoverable amount of the Voisey’s Bay PMPA CGU was
estimated based on its fair value less costs of disposal and an impairment loss was recorded.
While there are several inputs that are required to determine the recoverable amount for the Voisey’s Bay PMPA
CGU, the estimates and assumptions with the highest degree of subjectivity and judgment uncertainty are future
cobalt prices and discount rates. Auditing these estimates and assumptions required a high degree of auditor
judgment and an increased extent of audit effort, including the involvement of fair value specialists.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the future cobalt prices and discount rates used in determining the recoverable
amount of the Voisey’s Bay PMPA CGU included the following, among others:
Evaluated the effectiveness of controls over management’s determination of the future cobalt prices and
discount rates.
With the assistance of fair value specialists;
-
Evaluated the reasonableness of the forecasts of future cobalt prices by comparing
management’s forecasts to third party forecasts.
-
Evaluated the reasonableness of the discount rates by testing the source information underlying
the determination of the discount rates and developed a range of independent estimates for the
discount rates and compared to the discount rates selected by management.
/s/ Deloitte LLP
Chartered Professional Accountants
Vancouver, Canada
March 13, 2025
We have served as the Company's auditor since 2004.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [5]
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 IFRS Accounting
Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”). It includes
those policies and procedures that:
i.
pertain to the maintenance of records that accurately and fairly reflect, in reasonable detail, the transactions
related to Wheaton’s assets;
ii.
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with IFRS Accounting Standards, and Wheaton receipts and expenditures are
made only in accordance with authorizations of management and Wheaton’s directors; and
iii.
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,
2024, 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, 2024, Wheaton’s internal control over financial reporting was effective.
The effectiveness of Wheaton’s internal control over financial reporting, as of December 31, 2024, 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, 2024, 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 13, 2025
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [6]
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, 2024, 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, 2024, 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, 2024, of the
Company and our report dated March 13, 2025, 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 13, 2025
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [7]
Consolidated Statements of Earnings
Years Ended December 31
(US dollars and shares in thousands, except per share amounts)
Note
2024
2023
Sales
6
$
1,284,639 $
1,016,045
Cost of sales
Cost of sales, excluding depletion
$
235,108 $
228,171
Depletion
246,944
214,434
Total cost of sales
$
482,052 $
442,605
Gross margin
$
802,587 $
573,440
General and administrative expenses
7
40,668
38,165
Share based compensation
8
23,268
22,744
Donations and community investments
9
8,958
7,261
Impairment of mineral stream interests
13
108,861
-
Earnings from operations
$
620,832 $
505,270
Gain on disposal of mineral stream interests
12
-
5,027
Other income (expense)
10
29,061
34,271
Earnings before finance costs and income taxes
$
649,893 $
544,568
Finance costs
17.3
5,549
5,510
Earnings before income taxes
$
644,344 $
539,058
Income tax expense
23
115,204
1,414
Net earnings
$
529,140 $
537,644
Basic earnings per share
$
1.167 $
1.187
Diluted earnings per share
$
1.165 $
1.186
Weighted average number of shares outstanding
Basic
21
453,460
452,814
Diluted
21
454,119
453,463
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [8]
Consolidated Statements of Comprehensive Income
Years Ended December 31
(US dollars in thousands)
Note
2024
2023
Net earnings
$
529,140 $
537,644
Other comprehensive income
Items that will not be reclassified to net earnings
Gain (loss) on LTIs¹
16
$
4,649 $
(26,632)
Income tax expense (recovery) related to LTIs
23
852
(3,719)
Total other comprehensive income (loss)
$
3,797 $
(22,913)
Total comprehensive income
$
532,937 $
514,731
1)
LTIs = long-term investments – common shares held.
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [9]
Consolidated Balance Sheets
Note
As at
December 31
As at
December 31
(US dollars in thousands)
2024
2023
Assets
Current assets
Cash and cash equivalents
22
$
818,166 $
546,527
Accounts receivable
11
6,217
10,078
Cobalt inventory
-
1,372
Income taxes receivable
23
-
5,935
Other
24
3,697
3,499
Total current assets
$
828,080 $
567,411
Non-current assets
Mineral stream interests
12
$
6,379,580 $
6,122,441
Early deposit mineral stream interests
14
47,094
47,093
Mineral royalty interests
15
40,421
13,454
Long-term equity investments
16
98,975
246,678
Property, plant and equipment
8,691
7,638
Other
25
21,616
26,470
Total non-current assets
$
6,596,377 $
6,463,774
Total assets
$
7,424,457 $
7,031,185
Liabilities
Current liabilities
Accounts payable and accrued liabilities
$
13,553 $
13,458
Income taxes payable
23
2,127
-
Current portion of performance share units
20.1
13,562
12,013
Current portion of lease liabilities
17.2
262
604
Total current liabilities
$
29,504 $
26,075
Non-current liabilities
Performance share units
20.1
$
11,522 $
9,113
Lease liabilities
17.2
4,909
5,625
Global minimum tax payable
23
113,505
-
Deferred income taxes
23
349
232
Pension liability
5,289
4,624
Total non-current liabilities
$
135,574 $
19,594
Total liabilities
$
165,078 $
45,669
Shareholders' equity
Issued capital
18
$
3,798,108 $
3,777,323
Reserves
19
(63,503)
(40,091)
Retained earnings
3,524,774
3,248,284
Total shareholders' equity
$
7,259,379 $
6,985,516
Total liabilities and shareholders' equity
$
7,424,457 $
7,031,185
/s/ Randy Smallwood
/s/ Marilyn Schonberner
Randy Smallwood
Marilyn Schonberner
Director
Director
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [10]
Consolidated Statements of Cash Flows
Years Ended December 31
(US dollars in thousands)
Note
2024
2023
Operating activities
Net earnings
$
529,140
$
537,644
Adjustments for
Depreciation and depletion
248,303
215,926
Gain on disposal of mineral stream interest
12
-
(5,027)
Impairment of mineral stream interests
13
108,861
-
Interest expense
17.3
284
207
Equity settled share based compensation
8
6,703
6,438
Performance share units - expense
20.1
16,565
16,306
Performance share units - paid
20.1
(11,129)
(16,675)
Pension expense
1,124
1,122
Pension paid
(43)
(116)
Income tax expense
23
115,204
1,414
(Gain) loss on fair value adjustment of share purchase warrants held
10
8
31
Investment income recognized in net earnings
(27,014)
(37,178)
Other
3,142
1,227
Change in non-cash working capital
22
4,426
1,912
Cash generated from operations before income taxes and interest
$
995,574
$
723,231
Income taxes refunded (paid)
8,516
(6,192)
Interest paid
(287)
(187)
Interest received
23,778
33,957
Cash generated from operating activities
$
1,027,581
$
750,809
Financing activities
Credit facility extension fees
17.1
$
(937)
$
(859)
Share purchase options exercised
19.1
13,192
12,415
Lease payments
17.2
(594)
(691)
Dividends paid
18.2
(279,050)
(265,109)
Cash used for financing activities
$
(267,389)
$
(254,244)
Investing activities
Mineral stream interests
12
$
(628,234)
$
(663,528)
Repayment of mineral stream interests deposit
12
13,250
-
Early deposit mineral stream interests
14
-
(1,000)
Mineral royalty interest
15
(26,981)
(6,833)
Net proceeds on disposal of mineral stream interests
-
46,400
Acquisition of long-term investments
16, 22
(20,234)
(17,447)
Proceeds on disposal of long-term investments
16, 22
177,088
202
Investment in subscription rights
25
(3,114)
(4,510)
Dividends received
2,188
2,317
Other
(2,266)
(2,247)
Cash used for investing activities
$
(488,303)
$
(646,646)
Effect of exchange rate changes on cash and cash equivalents
$
(250)
$
519
Increase (decrease) in cash and cash equivalents
$
271,639
$
(149,562)
Cash and cash equivalents, beginning of year
546,527
696,089
Cash and cash equivalents, end of year
22
$
818,166
$
546,527
The accompanying notes form an integral part of these consolidated financial statements.
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [11]
Consolidated Statements of Shareholders’ Equity
Reserves
(US dollars in thousands)
Number of
Shares
(000's)
Issued
Capital
Share
Purchase
Warrants
Reserve
Share
Purchase
Options
Reserve
Restricted
Share Units
Reserve
LTI 1
Revaluation
Reserve
(Net of Tax)
Total
Reserves
Retained
Earnings
Total
At January 1, 2023
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
$
- $
- $
- $
- $
- $
- $
537,644 $
537,644
OCI 1
-
-
-
-
(22,913) (22,913)
-
(22,913)
Total comprehensive income
$
- $
- $
- $
- $ (22,913) $ (22,913) $
537,644 $
514,731
SBC 1 expense
$
- $
- $
2,607 $
3,831 $
- $
6,438 $
- $
6,438
Options 1 exercised
489
14,060
-
(2,278)
-
-
(2,278)
-
11,782
RSUs 1 released
119
3,967
-
-
(3,967)
-
(3,967)
-
-
Warrant expiration 1
-
-
(83,077)
-
-
- (83,077)
83,077
-
Dividends (Note 18.2)
142
6,634
-
-
-
-
-
(271,744) (265,110)
Realized gain on disposal of
LTIs ¹ (Note 19.3)
-
-
-
-
(841)
(841)
841
-
At December 31, 2023
453,069 $ 3,777,323 $
- $
22,907 $
8,006 $ (71,004) $ (40,091) $ 3,248,284 $ 6,985,516
Total comprehensive income
Net earnings
$
- $
- $
- $
- $
- $
- $
529,140 $
529,140
OCI 1
-
-
-
-
3,797
3,797
-
3,797
Total comprehensive income
$
- $
- $
- $
- $
3,797 $
3,797 $
529,140 $
532,937
SBC 1 expense
$
- $
- $
2,837 $
3,866 $
- $
6,703 $
- $
6,703
Options 1 exercised
500
15,656
-
(2,383)
-
-
(2,383)
-
13,273
RSUs 1 released
69
3,013
-
-
(3,013)
-
(3,013)
-
-
Dividends (Note 18.2)
39
2,116
-
-
-
-
-
(281,166) (279,050)
Realized gain on disposal of
LTIs ¹ (Note 19.3)
-
-
-
-
(28,516) (28,516)
28,516
-
At December 31, 2024
453,677 $ 3,798,108 $
- $
23,361 $
8,859 $ (95,723) $ (63,503) $ 3,524,774 $ 7,259,379
1) Definitions as follows: “OCI” = Other Comprehensive Income (Loss); “SBC” = Equity Settled Stock Based Compensation; “Options” = Share Purchase Options; “RSUs” =
Restricted Share Units; “LTI’s” = Long-Term Investments; “Warrants” = Share Purchase Warrants.
The accompanying notes form an integral part of these consolidated financial statements.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [12]
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.
As of December 31, 2024, the Company has entered into 40 long-term agreements¹ (32 of which are precious metal
purchase agreements, or “PMPAs”, three of which are early deposit PMPAs, and five of which are royalty
agreements), with 33 different mining companies, related to precious metals and cobalt relating to 18 mining assets
which are currently operating, 25 which are at various stages of development and 3 which have been placed into care
and maintenance or have been closed, located in 18 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.1
The consolidated financial statements of the Company for the year ended December 31, 2024 were authorized for
issue as of March 13, 2025 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 IFRS Accounting Standards as
issued by the International Accounting Standards Board (“IFRS Accounting Standards”) 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 2024
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 adoption of this amendment did not have a material impact on the
Company’s financial statements.
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.
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.
1 Minto has been removed from the mine count due to Minto Metals Corp., being placed in receivership.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [13]
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.
Effective January 1, 2024, the Company entered into an offtake agreement under which all cobalt is sold to a third
party offtaker. Revenue from the cobalt sale is recognized at the time of the delivery, which is also the date that
control of the cobalt is transferred to the offtaker.
Prior to January 1, 2024, title to but not control of cobalt was transferred to a third-party sales agent who then onsold
the cobalt to Wheaton approved third party customers. Revenue from the sale of cobalt was recognized when the
third party customer and sales terms had been agreed to between Wheaton and the third-party sales agent, which
was also the date that control of the cobalt was 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [14]
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
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [15]
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [16]
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [17]
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 International Accounting Standards Board has issued the following new or amended standards:
IFRS 18 - Presentation and Disclosure in Financial Statements.
In April 2024, IFRS 18 Presentation and Disclosure in Financial Statements was issued. IFRS 18 replaces IAS 1
Presentation of Financial Statements while carrying forward many of the requirements in IAS 1. IFRS 18 introduces
new requirements to: i) present specified categories and defined subtotals in the statement of earnings, ii) provide
disclosures on management-defined performance measures (MPMs) in the notes to the financial statements, iii)
improve aggregation and disaggregation. Some of the requirements in IAS 1 are moved to IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors and IFRS 7 Financial Instruments: Disclosures. There were also minor
amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings per Share in connection with the new standard.
IFRS 18 requires retrospective application with specific transition provisions. The Company is required to apply IFRS
18 for annual reporting periods beginning on or after January 1, 2027 with early adoption permitted. The Company is
currently evaluating the impact of IFRS 18 on its financial statements.
4.
Key Sources of Estimation Uncertainty and Critical Accounting Judgments
The preparation of the Company’s consolidated financial statements in conformity with IFRS Accounting Standards
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 $6.4 billion at December 31,
2024, 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [18]
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.
4.3.
Impairment of Assets
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.
At December 31, 2024, indicators of impairment were identified relative to the Voisey’s Bay PMPA, primarily as a result
of significant and sustained decreases in the market prices of cobalt over the year ended December 31, 2024 compared
to historical price levels. Management estimated that the recoverable amount at December 31, 2024 of the Voisey’s Bay
PMPA was less than the carrying amount and accordingly recorded an impairment charge of $109 million. Refer to Note
13 for further information. No such indicators of impairment were identified in 2023.
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 19.1,
19.2, and 20.1, respectively.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [19]
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
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.
4.6.
Income Taxes
The interpretation and application of existing tax laws, regulations or rules in Canada, the Cayman Islands, 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 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 its sustainability-linked revolving credit facility (Note 17).
The Company is in compliance with the debt covenants at December 31, 2024, as described in Note 17.1.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [20]
5.2.
Categories of Financial Assets and Liabilities
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. 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. 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:
Note
December 31
December 31
(in thousands)
2024
2023
Financial assets
Financial assets mandatorily measured at FVTNE 1
Cash and cash equivalents
22
$
818,166 $
546,527
Trade receivables from provisional concentrate sales, net of fair
value adjustment
6, 11
3,518
5,360
Long-term investments - warrants held
785
652
Investments in equity instruments designated at FVTOCI 1
Long-term investments - common shares held
16
98,190
246,026
Financial assets measured at amortized cost
Trade receivables from sales of cobalt
11
1,199
3,975
Refundable deposit - 777 PMPA
25
9,413
8,717
Other accounts receivable
1,500
743
Total financial assets
$
932,771 $
812,000
Financial liabilities
Financial liabilities at amortized cost
Accounts payable and accrued liabilities
$
13,553 $
13,458
Total financial liabilities
$
13,553 $
13,458
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. 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, 2024 is considered to be negligible.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [21]
The Company’s maximum exposure to credit risk related to its financial assets is as follows:
December 31
December 31
(in thousands)
Note
2024
2023
Cash and cash equivalents
22
$
818,166 $
546,527
Trade receivables from provisional concentrate sales, net of fair value
adjustment
11
3,518
5,360
Trade receivables from sales of cobalt
11
1,199
3,975
Refundable Deposit - 777 PMPA
25
9,413
8,717
Other accounts receivables
11
1,500
743
Maximum exposure to credit risk related to financial assets
$
833,796 $
565,322
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, 2024, the
Company had cash and cash equivalents of $818 million (December 31, 2023 - $547 million) and working capital of
$799 million (December 31, 2023 - $541 million).
The Company holds equity investments of several companies (Note 16) with a combined market value at December 31,
2024 of $99 million (December 31, 2023 - $247 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, 2024
(in thousands)
2024
2025 - 2026
2027 - 2028
After 2028
Total
Accounts payable and accrued
liabilities
$
13,553 $
-
$
-
$
-
$
13,553
Performance share units 1
13,562
11,522
-
-
25,084
Total
$
27,115
$
11,522 $
- $
-
$
38,637
1) See Note 20.1 for estimated value per PSU at maturity and anticipated performance factor at maturity.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [22]
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:
December 31
December 31
(in thousands)
2024
2023
Monetary assets
Cash and cash equivalents
$
7,833
$
1,729
Accounts receivable
160
112
Long-term investments - common shares held
98,190
77,770
Long-term investments - warrants held
785
652
Other long-term assets
3,114
7,898
Total Canadian dollar denominated monetary assets
$
110,082
$
88,161
Monetary liabilities
Accounts payable and accrued liabilities
$
9,291
$
9,080
Performance share units
20,989
17,303
Lease liability
5,170
5,892
Pension liability
5,289
4,624
Total Canadian dollar denominated monetary liabilities
$
40,739
$
36,899
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.
As at December 31, 2024
Change in Canadian Dollar
(in thousands)
10%
Increase
10%
Decrease
Increase (decrease) in net earnings
$
(2,885) $
2,885
Increase (decrease) in other comprehensive income
9,819
(9,819)
Increase (decrease) in total comprehensive income
$
6,934 $
(6,934)
As at December 31, 2023
Change in Canadian Dollar
(in thousands)
10%
Increase
10%
Decrease
Increase (decrease) in net earnings
$
(2,651) $
2,651
Increase (decrease) in other comprehensive income
7,777
(7,777)
Increase (decrease) in total comprehensive income
$
5,126 $
(5,126)
5.6.
Interest Rate Risk
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
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [23]
risk. During the years ended December 31, 2024 the weighted average interest rate earned on its cash deposits in
interest bearing accounts was 5.00%, as compared to 4.80% in the comparable period of the prior year.
During the years ended December 31, 2024 and 2023, 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, 2024 and 2023, a fluctuation in interest rates of 100 basis points (1 percent)
would have impacted the amount of interest earned by approximately $5 million and $7 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, 2024 and 2023 would have increased/decreased by approximately $10 million and $25
million 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.
December 31, 2024
(in thousands)
Note
Total
Level 1
Level 2
Level 3
Cash and cash equivalents
22
$
818,166 $
818,166 $
- $
-
Trade receivables from provisional concentrate
sales, net of fair value adjustment
11
3,518
-
3,518
-
Long-term investments - common shares held
16
98,190
98,190
-
-
Long-term investments - warrants held
16
785
-
785
-
$
920,659 $
916,356 $
4,303 $
-
December 31, 2023
(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
11
5,360
-
5,360
-
Long-term investments - common shares held
16
246,026
246,026
-
-
Long-term investments - warrants held
16
652
-
652
-
$
798,565 $
792,553 $
6,012 $
-
When balances are outstanding, the Company’s bank debt (Note 17.1) is reported at amortized cost using the
effective interest method.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [24]
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 price of 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
Years Ended December 31
(in thousands)
2024
2023
Sales
Gold credit sales
$
796,051
62% $
644,131
63%
Silver
Silver credit sales
$
381,487
30% $
257,041
25%
Concentrate sales
76,343
6%
81,553
9%
Total silver sales
$
457,830
36% $
338,594
34%
Palladium credit sales
$
16,999
1% $
18,496
2%
Cobalt sales
$
13,759
1% $
14,824
1%
Total sales revenue
$ 1,284,639 100% $ 1,016,045 100%
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, 2024, sales to four financial institutions accounted for 34%, 17%, 14% and 14%
of the Company’s revenue as compared to sales to four financial institutions accounted for 34%, 20%, 12% and 11%
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, 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [25]
Cobalt Sales
Effective January 1, 2024, the Company entered into an offtake agreement under which all cobalt is sold to a third
party offtaker. Revenue from the cobalt sale is recognized at the time of the delivery, which is also the date that
control of the cobalt is transferred to the offtaker.
Prior to January 1, 2024, cobalt was sold to a third-party sales agent who generally sold the cobalt to third party
customers approved by Wheaton. Revenue from the sale of cobalt was recognized once the third-party customer and
sales terms had been agreed to between Wheaton and the third-party sales agent, which was also the date that
control of the cobalt was transferred to the third-party sales agent. Should the sales agent retain the cobalt for their
own use, revenue was 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
Years Ended December 31
(in thousands)
2024
2023
Corporate
Salaries and benefits
$
15,103
$
14,127
Depreciation
904
1,026
Professional fees
2,781
3,414
Business travel
1,684
1,141
Director fees
1,078
1,095
Business taxes
737
798
Audit and regulatory
3,026
3,211
Insurance
1,822
2,052
Other
4,495
3,896
General and administrative - corporate
$
31,630
$
30,760
Subsidiaries
Salaries and benefits
$
5,396
$
4,287
Depreciation
455
466
Professional fees
911
618
Business travel
433
346
Director fees
218
199
Business taxes
270
252
Insurance
56
46
Other
1,299
1,191
General and administrative - subsidiaries
$
9,038
$
7,405
Consolidated general and administrative
$
40,668
$
38,165
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [26]
8.
Share Based Compensation
Years Ended December 31
(in thousands)
Note
2024
2023
Equity settled share based compensation 1
Stock options
19.1
$
2,837 $
2,607
RSUs
19.2
3,866
3,831
Cash settled share based compensation
PSUs
20.1
$
16,565 $
16,306
Total share based compensation
$
23,268 $
22,744
1) Equity settled share based compensation is a non-cash expense.
9.
Donations and Community Investments
Years Ended December 31
(in thousands)
2024
2023
Local donations and community investments 1
$
2,934 $
2,649
Partner donations and community investments 2
6,024
4,612
Total donations and community investments
$
8,958 $
7,261
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.
10.
Other Income (Expense)
Years Ended December 31
(in thousands)
Note
2024
2023
Interest income
$
24,826 $
34,862
Dividend income
2,188
2,316
Foreign exchange gain (loss)
2,095
51
Gain (loss) on fair value adjustment of share purchase warrants held
mandatorily measured at FVTNE 1
(8)
(31)
Other
(40)
(2,927)
Total other income (expense)
$
29,061 $
34,271
1) FVTNE refers to Fair Value Through Net Earnings
11.
Accounts Receivable
December 31
December 31
(in thousands)
Note
2024
2023
Trade receivables from provisional concentrate sales, net of fair value
adjustment
6
$
3,518 $
5,360
Trade receivables from sales of cobalt
6
1,199
3,975
Other accounts receivable
1,500
743
Total accounts receivable
$
6,217 $
10,078
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [27]
12.
Mineral Stream Interests
Year Ended December 31, 2024
Cost
Accumulated Depletion & Impairment 1
Carrying
Amount
Dec 31, 2024
(in thousands)
Balance
Jan 1, 2024
Additions
Balance
Dec 31, 2024
Balance
Jan 1, 2024
Depletion
Impairment
Charge
Balance
Dec 31, 2024
Gold interests
Salobo
$
3,429,911 $ -
$ 3,429,911
$ (748,492)
$ (85,934)
$ -
$ (834,426)
$ 2,595,485
Sudbury 2
623,864
-
623,864
(361,379)
(20,934)
-
(382,313)
241,551
Constancia
140,058
-
140,058
(59,793)
(15,939)
-
(75,732)
64,326
San Dimas
220,429
-
220,429
(75,707)
(8,241)
-
(83,948)
136,481
Stillwater 3
239,352
-
239,352
(27,883)
(4,009)
-
(31,892)
207,460
Other 4
656,187
378,920
1,035,107
(52,498)
(1,293)
-
(53,791)
981,316
$
5,309,801 $ 378,920 $ 5,688,721
$ (1,325,752)
$ (136,350)
$ -
$ (1,462,102)
$ 4,226,619
Silver interests
Peñasquito
$
524,626 $ -
524,626
$ (248,394)
$ (31,767)
$ -
$ (280,161)
$ 244,465
Antamina
900,343
-
900,343
(380,813)
(28,759)
-
(409,572)
490,771
Constancia
302,948
-
302,948
(123,365)
(14,205)
-
(137,570)
165,378
Other 5
1,159,563
96,499
1,256,062
(577,450)
(15,982)
-
(593,432)
662,630
$
2,887,480 $ 96,499 $ 2,983,979
$ (1,330,022)
$ (90,713)
$ -
$ (1,420,735)
$ 1,563,244
Palladium interests
Stillwater 3
$
263,721 $ -
$ 263,721
$ (43,054)
$ (7,488)
$ -
$ (50,542)
$ 213,179
Platreef
-
78,814
78,814
-
-
$ -
-
78,814
$
263,721 $ 78,814 $ 342,535
$ (43,054)
$ (7,488)
$ -
$ (50,542)
$ 291,993
Platinum interests
Marathon
$
9,451 $ -
$ 9,451
$ -
$ -
$ -
$
-
$ 9,451
Platreef
-
57,584
57,584
-
-
$ -
-
57,584
$
9,451 $ 57,584 $ 67,035
$ -
$ -
$ -
$
-
$ 67,035
Cobalt interests
Voisey's Bay 6
$
393,422 $ -
$ 393,422
$ (42,606)
$ (11,266)
$ (108,861)
$ (162,733)
$ 230,689
$
8,863,875 $ 611,817 $ 9,475,692
$ (2,741,434)
$ (245,817)
$ (108,861)
$ (3,096,112)
$ 6,379,580
1) Includes cumulative impairment charges to December 31, 2024 as follows: Pascua-Lama silver interest - $338 million; Sudbury gold interest - $120 million; and Voisey’s Bay
cobalt interest - $109 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, El Domo (previously referred to as Curipamba),
Cangrejos, Curraghinalt, Platreef, Kudz Ze Kayah, Koné and Kurmuk gold interests. The additions to other gold interests includes: Platreef - $275 million; Kudz Ze Kayah -
$14 million; Cangrejos - $16 million; Marmato - $40 million; and Kurmuk - $44 million; less a repayment relative to El Domo - $10 million to be re-advanced at a later date.
5) Comprised of the Los Filos, Zinkgruvan, Stratoni, Neves-Corvo, Minto, Aljustrel, Loma de La Plata, Pascua-Lama, Copper World Complex, Marmato, Cozamin, Blackwater,
El Domo (previously referred to as Curipamba). Mineral Park and Kudz Ze Kayah silver interests. The additions to other silver interests includes: Kudz Ze Kayah - $25
million; and Mineral Park - $75 million; less a repayment relative to El Domo - $3 million to be re-advanced at a later date.
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [28]
Year Ended December 31, 2023
Cost
Accumulated Depletion & Impairment 1
Carrying
Amount
Dec 31, 2023
(in thousands)
Balance
Jan 1, 2023
Additions
Disposal
Balance
Dec 31, 2023
Balance
Jan 1, 2023
Depletion
Balance
Dec 31, 2023
Gold interests
Salobo
$ 3,059,876 $ 370,035 $
- $
3,429,911 $
(676,614) $
(71,878) $
(748,492) $ 2,681,419
Sudbury 2
623,864
-
-
623,864
(340,448)
(20,931)
(361,379)
262,485
Constancia
140,058
-
-
140,058
(44,475)
(15,318)
(59,793)
80,265
San Dimas
220,429
-
-
220,429
(64,564)
(11,143)
(75,707)
144,722
Stillwater 3
239,352
-
-
239,352
(23,500)
(4,383)
(27,883)
211,469
Other 4
545,391
152,169
(41,373)
656,187
(51,248)
(1,250)
(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
Silver interests
Peñasquito
$
524,626 $
- $
- $
524,626 $
(230,952) $
(17,442) $
(248,394) $
276,232
Antamina
900,343
-
-
900,343
(354,975)
(25,838)
(380,813)
519,530
Constancia
302,948
-
-
302,948
(110,001)
(13,364)
(123,365)
179,583
Other 5
1,018,199
141,364
-
1,159,563
(565,103)
(12,347)
(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, El Domo, 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,
El Domo 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [29]
The value allocated to reserves is classified as depletable upon a mining operation achieving commercial 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, 2024
December 31, 2023
(in thousands)
Depletable
Non-
Depletable
Total
Depletable
Non-
Depletable
Total
Gold interests
Salobo
$ 2,269,310 $
326,175 $ 2,595,485 $ 2,303,719 $
377,700 $ 2,681,419
Sudbury 1
199,840
41,711
241,551
218,467
44,018
262,485
Constancia
60,721
3,605
64,326
74,758
5,507
80,265
San Dimas
47,187
89,294
136,481
55,428
89,294
144,722
Stillwater 2
187,826
19,634
207,460
186,668
24,801
211,469
Other 3
16,706
964,610
981,316
17,999
585,690
603,689
$ 2,781,590 $ 1,445,029 $ 4,226,619 $ 2,857,039 $ 1,127,010 $ 3,984,049
Silver interests
Peñasquito
$
244,465 $
- $
244,465 $
202,528 $
73,704 $
276,232
Antamina
143,753
347,018
490,771
172,512
347,018
519,530
Constancia
158,896
6,482
165,378
169,527
10,056
179,583
Other 4
122,498
540,132
662,630
130,462
451,651
582,113
$
669,612 $
893,632 $ 1,563,244 $
675,029 $
882,429 $ 1,557,458
Palladium interests
Stillwater 2
$
205,691 $
7,488 $
213,179 $
211,959 $
8,708 $
220,667
Platreef
-
78,814
78,814
-
-
-
$
205,691 $
86,302 $
291,993 $
211,959 $
8,708 $
220,667
Platinum interests
Marathon
$
- $
9,451 $
9,451 $
- $
9,451 $
9,451
Platreef
-
57,584
57,584
-
-
-
$
- $
67,035 $
67,035 $
- $
9,451 $
9,451
Cobalt interests
Voisey's Bay
$
217,300 $
13,389 $
230,689 $
321,454 $
29,362 $
350,816
$ 3,874,193 $ 2,505,387 $ 6,379,580 $ 4,065,481 $ 2,056,960 $ 6,122,441
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, El Domo, Cangrejos, Curraghinalt, Platreef, Kudz Ze
Kayah, Koné and Kurmuk 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,
El Domo, Mineral Park and Kudz Ze Kayah silver interests.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [30]
Significant acquisitions, amendments and disposals of mineral stream interests in the years ended December 31,
2024 and 2023 are outlined below. The percentage of payable production and other key PMPA terms for all mineral
stream interests are described in Note 27.
Partial Disposition of Goose PMPA
On April 12, 2023, Sabina Gold & Silver Corp. (“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
$ 46,400
Less: 33% carrying value
(41,373)
Gain on partial disposal of the Goose PMPA
$ 5,027
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 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 installments, including (i) $12 million which was paid on closing; (ii) $10 million that was paid on November
22, 2023 (six months after closing); (iii) $9 million that was paid on May 31, 2024 (12 months after closing); (iv) $6
million that was paid on December 2, 2024 and (v) $11 million that can be drawn upon for committed acquisition of
surface rights, of which $7 million was paid on November 22, 2023 and $1 million was paid on May 31, 2024.
Amendment to the Blackwater Gold PMPA
On June 14, 2023, the Company amended the Blackwater Gold PMPA. Under the terms of the amended agreement,
the Company paid total upfront cash consideration of $40 million.
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
located in Arizona, USA (“Mineral Park”). 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 which were paid in 2024 and a final installment of $40 million.
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 paid $20 million on December 21, 2023 with an additional $55
million to be paid during construction, subject to various customary conditions being satisfied.
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).
Acquisition of Existing Platreef & Kudz Ze Kayah PMPAs
On February 27, 2024, the Company closed the previously announced 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 (“KZK”) Project (the “Kudz Ze Kayah Streams”). On February
27, 2024, the Company paid $450 million to Orion, with an additional $5 million contingency payment due to Orion if
the KZK project achieves certain milestones.
The Platreef Project is located in Johannesburg, South Africa, while the Kudz Ze Kayah stream is located in Yukon,
Canada.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [31]
Amendment to the Fenix PMPA
On October 21, 2024, the Company amended the Fenix PMPA, in exchange for which, the Company is committed to
pay additional upfront cash consideration of $100 million, payable in two equal installments, subject to various
customary conditions being satisfied. To date, no amounts have been advanced under the Fenix PMPA amendment.
Acquisition of Koné Gold PMPA
On October 23, 2024, the Company entered into a PMPA (the “Koné Gold PMPA”) with Montage Gold Corp.
(“Montage”) in respect of its 90% owned Koné Gold Project located in Côte d’Ivoire. Under the terms of the Koné
Gold PMPA, the Company is committed to pay Montage total upfront cash payments of $625 million, payable in four
equal installment payments during construction, subject to certain conditions, including that all permits have been
obtained. To date, no amounts have been advanced under the Koné Gold PMPA.
Acquisition of Kurmuk PMPA
On December 5, 2024, the Company entered into a PMPA (the “Kurmuk Gold PMPA”) with Allied Gold Corporation
(“Allied”) in respect of its Kurmuk project located in Ethiopia. Under the terms of the agreement, Wheaton is
committed to pay Allied total upfront cash payments of $175 million, payable in four equal installment payments
during construction, subject to certain conditions. The first payment of $44 million was paid on December 19, 2024.
13.
Impairment of Mineral Stream Interests
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 (if any). The recoverable amount of each PMPA is the higher of fair value less cost of disposal (“FVLCD”)
and value in use (“VIU”). In determining the recoverable amounts of each of the Company’s CGU’s, the Company
uses the FVLCD as this will generally be greater than or equal to the VIU.
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.
Based on the Company’s analysis, the following PMPA was determined to be impaired:
Years Ended December 31
(in thousands)
Note
2024
2023
Cobalt Interests
Voisey's Bay
108,861
-
Total impairment expense
$
108,861
$
-
Voisey’s Bay - Indicator of Impairment at December 31, 2024
On June 11, 2018, the Company entered into an agreement (the “Voisey’s Bay PMPA”) to acquire from Vale an
amount of cobalt equal to 42.4% of the cobalt production from its Voisey’s Bay mine, located in Canada, until the
delivery of 31 million pounds of cobalt and 21.2% of cobalt production thereafter for the life of mine for a total upfront
cash payment of $390 million.
At December 31, 2024, the Company determined there to be an impairment charge relative to the Voisey’s Bay
cobalt interest (“Voisey’s Bay PMPA”) due to a significant decline in market cobalt prices. The Voisey’s Bay PMPA
had a carrying value at December 31, 2024 of $340 million. Management estimated that the recoverable amount at
December 31, 2024 under the Voisey’s Bay PMPA was $231 million, representing its FVLCD and resulting in an
impairment charge of $109 million. The recoverable amount related to the Voisey’s Bay PMPA was estimated based
on a discounted cash flow model using an average discount rate of 5.5% and the market price of cobalt of $13.62 per
pound. As this valuation technique requires the use of estimates and assumptions such as long-term commodity
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [32]
prices, discount rates, recoverable pounds of cobalt and operating performance, it is classified within Level 3 of the
fair value hierarchy.
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, 2024:
Mine
Owner
Attributable
Production to be
Purchased
Early Deposit Mineral
Stream Interests
Location of
Mine
Upfront
Consideration
Paid to Date 1
Upfront
Consideration
to be Paid 1, 2
Total
Upfront
Consideration¹
Gold
Silver
Term of
Agreement
Toroparu
Aris Mining
Guyana
$
15,500
$
138,000
$
153,500
10%
50% Life of Mine
Cotabambas
Panoro
Peru
14,000
126,000
140,000
25% ³
100% ³
Life of Mine
Kutcho
Kutcho
Canada
16,852
58,000
74,852
100%
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [33]
15.
Mineral Royalty Interests
The following table summarizes mineral royalty interests owned by the Company as of December 31, 2024. To date,
no revenue has been recognized and no depletion has been taken with respect to these royalty agreements.
Royalty Interests
Mine
Owner
Location of
Mine
Royalty 1
Total
Upfront
Consideration 2
Term of
Agreement
Date of
Original
Contract
Metates
Chesapeake
Mexico
0.5% NSR
$
3,000
Life of Mine
07-Aug-2014
Brewery Creek 3
Victoria Gold
Canada
2.0% NSR
3,529
Life of Mine
04-Jan-2021
Black Pine 4
Liberty Gold
USA
0.5% NSR
3,600
Life of Mine
10-Sep-2023
Mt Todd 5
Vista
Australia
1.0% GR
20,000
Life of Mine
13-Dec-2023
DeLamar 6
Integra
USA
1.5% NSR
9,750
Life of Mine
20-Feb-2024
$
39,879
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.
4)
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.
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.
6)
Under the DeLamar royalty, if completion is not achieved by January 1, 2029, the DeLamar Royalty will increase annually by 0.15% of net smelter returns to a maximum of
2.7% of net smelter returns.
16.
Long-Term Equity Investments
December 31
December 31
(in thousands)
2024
2023
Common shares held
$
98,190 $
246,026
Warrants held
785
652
Total long-term equity investments
$
98,975 $
246,678
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [34]
Common Shares Held
Year Ended December 31, 2024
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Dec 31, 2023
Cost of
Additions
Proceeds of
Disposition 1
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2024
Realized Gain
(Loss) on
Disposal
Kutcho
18,640
11.11% $ 1,551 $ - $ - $ (320) $ 1,231 $ -
Hecla
-
-
168,255
-
(177,088)
8,833
-
35,768
B2Gold
12,025
0.91%
38,094
-
-
(8,678)
29,416
-
Silvercorp
3,759
1.73%
-
12,016
-
(731)
11,285
-
Aris
4,715
2.76%
15,579
-
-
936
16,515
-
Other
22,547
24,605
(12,018)
4,609
39,743
(3,543)
Total
$ 246,026 $ 36,621 $ (189,106) $ 4,649 $ 98,190 $ 32,225
1)
The disposition of the Hecla shares was made in order to capitalize on Hecla’s share price appreciation, while the disposal under “other” was 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.
Year Ended December 31, 2023
(in thousands)
Shares
Owned
(000's)
% of
Outstanding
Shares
Owned
Fair Value at
Dec 31, 2022
Cost of
Additions
Proceeds of
Disposition 1
Fair Value
Adjustment
Gains
(Losses) 2
Fair Value at
Dec 31, 2023
Realized Gain
(Loss) on
Disposal
Sabina
-
- $ 30,535 $ - $ (48,832) $ 18,297 $ - $ 872
Kutcho
18,640
13.27%
3,097
-
-
(1,546)
1,551
-
Hecla
34,980
5.66%
194,668
-
(202)
(26,211)
168,255
73
B2Gold
12,025
0.92%
-
48,832
-
(10,738)
38,094
-
Aris
4,715
3.43%
11,662
-
-
3,917
15,579
-
Other
15,573
17,352
(27)
(10,351)
22,547
(990)
Total
$ 255,535 $ 66,184 $ (49,061) $ (26,632) $ 246,026 $ (45)
1)
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.
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 25, 2024, 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 25, 2029.
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, 2024 and 2023.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [35]
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 year ended December 31, 2024, the stand-by fee rate was 0.1981% as
compared to 0.20% during the previous year.
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:
December 31
December 31
(in thousands)
2024
2023
Current portion
$
262 $
604
Long-term portion
4,909
5,625
Total lease liabilities
$
5,171 $
6,229
The maturity analysis, on an undiscounted basis, of these leases is as follows:
December 31
(in thousands)
2024
Not later than 1 year
$
514
Later than 1 year and not later than 5 years
2,459
Later than 5 years
3,753
Total lease liabilities
$
6,726
17.3. Finance Costs
A summary of the Company’s finance costs associated with the above facilities during the period is as follows:
Years Ended December 31
(in thousands)
Note
2024
2023
Costs related to undrawn credit facilities
17.1
$
5,347 $
5,162
Interest expense - lease liabilities
17.2
284
207
Letters of guarantee
(82)
141
Total finance costs
$
5,549 $
5,510
18. Issued Capital
Note
December 31 December 31
(in thousands)
2024
2023
Issued capital
Share capital issued and outstanding: 453,677,299 common shares
(December 31, 2023: 453,069,254 common shares)
18.1
$ 3,798,108 $ 3,777,323
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [36]
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, 2024 and 2023, the Company had no
preference shares outstanding.
A continuity schedule of the Company’s issued and outstanding common shares from January 1, 2023 to December
31, 2024 is presented below:
Number
of
Shares
Weighted
Average
Price
At January 1, 2023
452,318,526
Share purchase options exercised 1
488,922
Cdn$32.82
Restricted share units released 1
119,827
Cdn$0.00
Dividend reinvestment plan 2
141,979
US$46.73
At December 31, 2023
453,069,254
Share purchase options exercised 1
500,017
Cdn$36.18
Restricted share units released 1
69,494
Cdn$0.00
Dividend reinvestment plan 2
38,534
US$54.92
At December 31, 2024
453,677,299
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.
At the Market Equity Program
The Company established an at-the-market equity program (the “ATM Program”) to allow 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.
Wheaton intended that the net proceeds from the ATM Program, if any, would be available as one potential source of
funding for stream acquisitions and/or other general corporate purposes including the repayment of indebtedness.
However, as at December 31, 2024 the Company has not issued any shares under the ATM program and the
Company has elected not to renew the ATM Program.
18.2. Dividends Declared
Years Ended December 31
(in thousands, except per share amounts)
2024
2023
Dividends declared per share
$
0.620
$
0.600
Average number of shares eligible for dividend
453,493
452,906
Total dividends paid
$
281,166
$
271,744
Paid as follows:
Cash
$
279,050
99%
$
265,109
98%
DRIP 1
2,116
1%
6,635
2%
Total dividends paid
$
281,166 100%
$
271,744 100%
1) The Company has implemented a DRIP whereby shareholders can elect to have dividends reinvested directly into additional Wheaton common shares.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [37]
19.
Reserves
Note
December 31 December 31
(in thousands)
2024
2023
Reserves
Share purchase options
19.1
$
23,361 $
22,907
Restricted share units
19.2
8,859
8,006
Long-term investment revaluation reserve, net of tax
19.3
(95,723)
(71,004)
Total reserves
$
(63,503) $
(40,091)
19.1. 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 36-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:
Years Ended December 31
2024
2023
Black-Scholes weighted average assumptions
Grant date share price and exercise price
Cdn$59.79
Cdn$59.41
Expected dividend yield
1.45%
1.39%
Expected volatility
30%
30%
Risk-free interest rate
4.10%
3.40%
Expected option life, in years
3.0
3.0
Weighted average fair value per option granted
Cdn$13.39
Cdn$12.89
Number of options issued during the period
305,710 316,580
Total fair value of options issued (000's)
$ 3,022 $ 2,972
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [38]
The following table summarizes information about the options outstanding and exercisable at December 31, 2024:
Exercise Price (Cdn$)
Exercisable
Options
Non-
Exercisable
Options
Total Options
Outstanding
Weighted
Average
Remaining
Contractual
Life
$34.65¹
3,840
-
3,840
0.2 years
$49.86
219,496
-
219,496
3.2 years
$57.48¹
19,280
-
19,280
3.2 years
$59.41
78,377
165,136
243,513
5.2 years
$67.57¹
18,613
12,713
31,326
4.2 years
$59.79
-
237,180
237,180
6.2 years
$60.00
134,258
72,473
206,731
4.2 years
$62.26¹
10,528
30,550
41,078
5.2 years
$63.53¹
-
68,530
68,530
6.2 years
484,392
586,582
1,070,974
4.8 years
1) US$ share purchase options converted to Cdn$ using the exchange rate of 1.4389, being the Cdn$/US$ exchange rate at December 31, 2024.
A continuity schedule of the Company’s outstanding share purchase options from January 1, 2023 to December 31,
2024 is presented below:
Number of
Options
Outstanding
Weighted
Average
Exercise Price
At January 1, 2023
1,478,300
Cdn$41.37
Granted (fair value - $3 million or Cdn$12.89 per option)
316,580
59.41
Exercised
(488,922)
32.82
Forfeited
(35,937)
59.44
At December 31, 2023
1,270,021
Cdn$48.47
Granted (fair value - $3 million or Cdn$13.39 per option)
305,710
59.79
Exercised
(500,017)
36.18
Forfeited
(4,740)
59.59
At December 31, 2024
1,070,974
Cdn$58.14
As it relates to share purchase options, during the year ended December 31, 2024, the weighted average share price
at the time of exercise was Cdn$71.68 per share, as compared to Cdn$63.74 per share during the comparable period
in 2023.
19.2. 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, 2023 to December 31,
2024 is presented below:
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [39]
Number of
RSUs
Outstanding
Weighted
Average
Intrinsic Value
at Date
Granted
At January 1, 2023
350,206
$31.25
Granted (fair value - $4 million)
93,990
43.35
Released
(119,827)
33.10
Forfeited
(8,033)
44.39
At December 31, 2023
316,336
$33.81
Granted (fair value - $4 million)
91,130
44.27
Released
(69,494)
43.36
Forfeited
(1,043)
44.40
At December 31, 2024
336,929
$34.64
19.3. Long-Term Investment Revaluation Reserve
The Company’s long-term investments in common shares (Note 16) are held for long-term strategic purposes and not
for trading purposes. The Company has chosen to designate these long-term investments in common shares as
financial assets with fair value adjustments being recorded as a component of OCI as it believes that this provides a
more meaningful presentation for long-term strategic investments, rather than reflecting changes in fair value as a
component of net earnings. As some of these long-term investments are denominated in Canadian dollars, changes in
their fair value is affected by both the change in share price in addition to changes in the Cdn$/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, 2023 to December
31, 2024 is presented below:
(in thousands)
Change in
Fair Value
Deferred
Tax
Recovery
(Expense)
Total
At January 1, 2023
$ (40,626) $ (6,624) $ (47,250)
Unrealized gain (loss) on LTIs 1
(26,632)
3,719
(22,913)
Reallocate reserve to retained earnings upon disposal of LTIs 1
(841)
-
(841)
At December 31, 2023
$ (68,099) $ (2,905) $ (71,004)
Unrealized gain (loss) on LTIs 1
4,649
(852)
3,797
Reallocate reserve to retained earnings upon disposal of LTIs 1
16
(32,225)
3,709
(28,516)
At December 31, 2024
$ (95,675) $ (48) $ (95,723)
1) LTIs refers to long-term investments in common shares held.
20.
Share Based Compensation
The Company’s share based compensation consists of share purchase options (Note 19.1), restricted share units
(Note 19.2) 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [40]
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 (“TSR”) to those achieved by various
peer companies 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.
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, 2023 to December 31, 2024 is presented
below:
(in thousands, except for number of PSUs outstanding)
Number of
PSUs
Outstanding
PSU accrual
liability
At January 1, 2023
444,620
$
21,239
Granted
135,690
-
Accrual related to the fair value of the PSUs outstanding
-
16,669
Foreign exchange adjustment
-
257
Paid
(191,980)
(16,675)
Forfeited
(15,870)
(364)
At December 31, 2023
372,460
$
21,126
Granted
135,220
-
Accrual related to the fair value of the PSUs outstanding
-
16,614
Foreign exchange adjustment
-
(1,478)
Paid
(126,590)
(11,129)
Forfeited
(2,120)
(49)
At December 31, 2024
378,970
$
25,084
A summary of the PSUs outstanding at December 31, 2024 is as follows:
Year
of Grant
Year of
Maturity
Number
outstanding
Estimated
Value Per PSU
at Maturity
Anticipated
Performance
Factor
at Maturity
Percent of
Vesting Period
Complete at
Dec 31, 2024
PSU
Liability at
Dec 31, 2024
2022
2025
118,240
$61.74
200%
93%
$ 13,562
2023
2026
125,510
$60.90
194%
60%
8,860
2024
2027
135,220
$60.53
125%
26%
2,662
378,970
$ 25,084
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [41]
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:
Years Ended December 31
(in thousands)
2024
2023
Basic weighted average number of shares outstanding
453,460
452,814
Effect of dilutive securities
Share purchase options
327
318
Restricted share units
332
331
Diluted weighted average number of shares outstanding
454,119
453,463
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$75.56, compared to Cdn$60.58 for the comparable period in 2023.
Years Ended December 31
(in thousands)
2024
2023
Share purchase options
-
37
22.
Supplemental Cash Flow Information
Change in Non-Cash Working Capital
Years Ended December 31
(in thousands)
2024
2023
Change in non-cash working capital
Accounts receivable
$
4,389
$
(264)
Accounts payable and accrued liabilities
(11)
867
Other
48
1,309
Total change in non-cash working capital
$
4,426
$
1,912
Non-Cash Transactions – Receipt of Shares as Consideration for Disposal of Long-Term Equity Investments
During the year ended December 31, 2024, the Company received common shares valued at $12 million as
consideration for the disposal of long-term equity investments.
During the year ended December 31, 2023, the Company received common shares valued at $48 million as
consideration for the disposal of long-term equity investments.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [42]
Cash and Cash Equivalents
December 31
December 31
(in thousands)
2024
2023
Cash and cash equivalents comprised of:
Cash
$
768,682 $
211,430
Cash equivalents
49,484
335,097
Total cash and cash equivalents
$
818,166 $
546,527
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
Years Ended December 31
(in thousands)
2024
2023
Current income tax expense (recovery)
$
(1,275)
$
(2,372)
Global minimum income tax expense
113,505
-
Total current income tax expense (recovery)
$
112,230 $
(2,372)
Deferred income tax expense (recovery) related to:
Origination and reversal of temporary differences
$
(318)
$
2,427
Write down (reversal of write down) or recognition of prior period
temporary differences
3,292
1,359
Total deferred income tax expense (recovery)
$
2,974 $
3,786
Total income tax expense (recovery) recognized in net earnings
$
115,204 $
1,414
Income Tax Expense (Recovery) in Other Comprehensive Income
Years Ended December 31
(in thousands)
2024
2023
Current income tax expense (recovery) related to LTIs - common
shares held
$
3,709
$
-
Deferred income tax expense (recovery) related to LTIs - common
shares held
(2,857)
(3,719)
Income tax expense (recovery) recognized in OCI
$
852
$
(3,719)
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 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:
Years Ended December 31
(in thousands)
2024
2023
Earnings before income taxes
$
644,344 $
539,058
Canadian federal and provincial income tax rates
27.00%
27.00%
Income tax expense (recovery) based on above rates
$
173,973 $
145,546
Non-deductible stock based compensation and other
389
1,656
Differences in tax rates in foreign jurisdictions 1
(203,606)
(147,991)
Global minimum tax expense
113,505
-
Current period unrecognized temporary differences - impairment of
mineral stream interests
23,085
-
Current period unrecognized temporary differences
4,566
844
Write down (reversal of write down) or recognition of prior period
temporary differences
3,292
1,359
Total income tax expense (recovery) recognized in net earnings
$
115,204 $
1,414
Effective Tax Rate
18%
0%
1) During the year ended December 31, 2024, the Company's subsidiaries domiciled in the Cayman Islands generated net earnings of $757 million, as compared to $551 million
during the comparable period of the prior year.
Pillar II Tax Expense - Global Minimum Tax
On June 20, 2024, Canada’s Global Minimum Tax Act (“GMTA”), received royal assent. The GMTA enacts the OECD
Pillar Two model rules (“Pillar Two”) where in scope companies are subject to a 15% global minimum tax (GMT) for
fiscal years commencing on or after December 31, 2023. With the enactment of the GMTA on June 20, 2024, the
income of the Company’s Cayman Island subsidiaries, who have a statutory tax rate of 0%, is subject to the GMTA.
For the year ended December 31, 2024 an amount of $114 million current tax expense associated with GMT was
recorded. GMT accrued to December 31, 2024 is payable on or before June 30, 2026 (18 months following year-end)
and accordingly is classified as non-current.
To date, the government of the Cayman Islands has indicated that they do not intend to enact Pillar Two legislation.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [44]
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, 2024 and December 31, 2023, respectively, is shown below:
Year Ended December 31, 2024
Opening
Balance
Recovery
(Expense)
Recognized In
Net Earnings
Recovery
(Expense)
Recognized
In OCI
Closing
Balance
Recognized deferred income tax assets and liabilities
Deferred tax assets
Non-capital loss carryforward 1
$
810
$
(810)
$
- $
-
Capital loss carryforward
956
(317)
(639)
-
Other 2
4,135
(3,190)
-
945
Deferred tax liabilities
Debt financing fees 3
(818)
22
-
(796)
Unrealized gains on long-term investments
(4,415)
732
3,496
(187)
Mineral stream interests 4
(668)
706
-
38
Foreign withholding tax
(232)
(117)
-
(349)
Total
$
(232)
$
(2,974)
$
2,857 $
(349)
1) As at December 31, 2024, the Company had no non-capital losses available to recognize against deferred tax liabilities.
2) Other includes capital assets, 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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [45]
Year Ended December 31, 2023
Opening
Balance
Recovery
(Expense)
Recognized In
Net Earnings
Recovery
(Expense)
Recognized
In OCI
Closing
Balance
Recognized deferred income tax assets and liabilities
Deferred tax assets
Non-capital loss carryforward
$
-
$
810
$
- $
810
Capital loss carryforward
792
40
124
956
Other
4,256
(121)
-
4,135
Deferred tax liabilities
Debt and share financing fees
(774)
(44)
-
(818)
Unrealized gains on long-term investments
(8,006)
(4)
3,595
(4,415)
Mineral stream interests
3,732
(4,400)
-
(668)
Foreign withholding tax
(165)
(67)
-
(232)
Total
$
(165)
$
(3,786)
$
3,719 $
(232)
Deferred income tax assets in Canada not recognized are shown below:
December 31
December 31
(in thousands)
2024
2023
Mineral stream interests
$
33,969
$
8,804
Other
8,129
2,376
Unrealized losses on long-term investments
13,161
12,912
Total
$
55,259
$
24,092
1)
As at December 31, 2024, the Company had fully recognized the tax effect of non-capital losses.
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 $2.6 billion as at December 31, 2024, 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.
The Company has applied the mandatory exemption to recognizing and disclosing information about deferred tax
assets and liabilities related to Pillar Two taxes.
24.
Other Current Assets
The composition of other current assets is shown below:
December 31
December 31
(in thousands)
Note
2024
2023
Prepaid expenses
$
3,230 $
2,628
Other
467
871
Total other current assets
$
3,697 $
3,499
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [46]
25.
Other Long-Term Assets
The composition of other long-term assets is shown below:
December 31
December 31
(in thousands)
Note
2024
2023
Intangible assets
$
1,503 $
1,886
Debt issue costs - Revolving Facility
17.1
5,101
5,496
Refundable deposit - 777 PMPA
9,413
8,717
Subscription Rights
3,114
4,510
Other
2,485
5,861
Total other long-term assets
$
21,616 $
26,470
Subscription Rights
The subscription rights from 2023 were converted to common shares during the first quarter of 2024 and were
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. 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%.
26.
Related Party Transactions
Compensation of Key Management Personnel
Key management personnel compensation, including directors, is as follows:
Years Ended December 31
(in thousands)
2024
2023
Short-term benefits 1
$
8,538
$ 7,755
Post-employment benefits
885
909
PSUs 2
9,250
9,341
Equity settled stock based compensation (a non-cash expense) 3
3,929
3,987
Total executive compensation
$
22,602
$ 21,992
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 19.1 and 19.2, equity settled stock based compensation expense is recorded on a straight-line basis over the vesting period.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [47]
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
Attributable
Payable Production
to be Purchased
Per Ounce Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Constancia
50%
$
425 ²
Life of Mine
8-Aug-12
Salobo
75%
$
429
Life of Mine
28-Feb-13
Sudbury
70%
$
400
20 years
28-Feb-13
San Dimas
variable ³
$
637
Life of Mine
10-May-18
Stillwater
100%
18% ⁴
Life of Mine
16-Jul-18
Marathon
100% ⁵
18% ⁴
Life of Mine
26-Jan-22
Other
Copper World
100%
$
450
Life of Mine
10-Feb-10
Marmato
10.5% ⁵
18% ⁴
Life of Mine
5-Nov-20
Santo Domingo
100% ⁵
18% ⁴
Life of Mine
24-Mar-21
Fenix
22% ⁶
20%
Life of Mine
15-Nov-21
Blackwater
8% ⁵
35%
Life of Mine
13-Dec-21
El Domo
50% ⁵
18% ⁴
Life of Mine
17-Jan-22
Goose
2.78% ⁵
18% ⁴
Life of Mine
8-Feb-22
Cangrejos
6.6% ⁵
18% ⁴
Life of Mine
16-May-23
Platreef
62.5% ⁵
$
100 ⁵
Life of Mine ⁵
7-Dec-21 ⁸
Curraghinalt
3.05% ⁵
18% ⁴
Life of Mine
15-Nov-23
Kudz Ze Kayah
6.875% ⁷
20%
Life of Mine
22-Dec-21 ⁸
Koné
19.5% ⁵
20% ⁹
Life of Mine
23-Oct-24
Kurmuk
6.7% ⁵
15%
Life of Mine
5-Dec-24
Early Deposit
Toroparu
10%
$
400
Life of Mine
11-Nov-13
Cotabambas
25% ⁵
$
450
Life of Mine
21-Mar-16
Kutcho
100%
20%
Life of Mine
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. Blackwater – reduced to 4% once the Company has received 464,000 ounces of gold.
e. El Domo (previously referred to as Curipamba) – reduced to 33% once the Company has received 145,000 ounces of gold.
f. 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.
g. Cangrejos – reduced to 4.4% once the Company has received 700,000 ounces of gold.
h. 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.
i. Curraghinalt – reduced to 1.5% once the Company has received 125,000 ounces of gold.
j. Koné - reduced to 10.8% once the Company has received 400,000 ounces of gold, subject to adjustment if there are delays in deliveries relative to an agreed
schedule, with a further reduction to 5.4% once the Company has received an additional 130,000 ounces of gold.
k. Kurmuk – reduced to 4.8% once the Company has received 220,000 ounces of gold. During any period in which debt exceeding $150 million ranks ahead of the gold
stream, the stream percentage increases to 7.15% and decreases to 5.25% once the drop down threshold is reached.
l. Cotabambas – reduced to 16.67% once the Company has received 90 million silver equivalent ounces.
6)
On October 21, 2024, the Company amended the Fenix PMPA. Under the original agreement, the Company was to acquire an amount of gold equal to 6% of the gold
production until 90,000 ounces have been delivered, 4% of the gold production until the delivery of a further 140,000 ounces and 3.5% gold production thereafter for the life
of mine. Under the revised agreement, the Company is entitled to purchase an additional 16% of payable gold production (22% in total) (subject to adjustment if there are
delays in deliveries relative to an agreed schedule). Once Rio2 delivers the incremental 95,000 ounces (as adjusted), the stream reverts to the percentages and thresholds
under the original Fenix PMPA (as described). Rio2 has a one-time option to terminate the requirement to deliver the incremental gold production from the end of 2027 until
the end of 2029 by delivering 95,000 ounces (as adjusted) less previously delivered gold ounces, excluding those gold ounces which would have been delivered under the
original Fenix PMPA.
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
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [48]
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 February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
9)
Until October 23, 2029, there is a price adjustment mechanism under the Koné PMPA
a. if the spot price of gold is less than $2,100 per ounce, the Company will pay 20% of $2,100 less 25% of the difference between $2,100 and $1,800, less 30% of the
difference between $1,800 and the spot price of gold; and
b. if the spot price is greater than $2,700 per ounce, the Company will pay 25% of the difference between $3,000 and $2,700, plus 30% of the difference between the
actual spot price of gold and $3,000.
Per Ounce Cash Payment for Silver
Mineral Stream Interests
Attributable Payable
Production to be
Purchased
Per Ounce Cash
Payment 1
Term of
Agreement
Date of
Original
Contract
Peñasquito
25%
$
4.56
Life of Mine
24-Jul-07
Constancia
100%
$
6.26 ²
Life of Mine
8-Aug-12
Antamina
33.75%
20%
Life of Mine
3-Nov-15
Other
Los Filos
100%
$
4.74
25 years
15-Oct-04
Zinkgruvan
100%
$
4.75
Life of Mine
8-Dec-04
Stratoni
100%
$
11.54
Life of Mine
23-Apr-07
Neves-Corvo
100%
$
4.50
50 years
5-Jun-07
Aljustrel
100% ³
50%
50 years
5-Jun-07
Pascua-Lama
25%
$
3.90
Life of Mine
8-Sep-09
Copper World
100%
$
3.90
Life of Mine
10-Feb-10
Loma de La Plata
12.5%
$
4.00
Life of Mine
n/a ⁴
Marmato
100% ⁵
18% ⁶
Life of Mine
5-Nov-20
Cozamin
50% ⁵
10%
Life of Mine
11-Dec-20
Blackwater
50% ⁵
18% ⁶
Life of Mine
13-Dec-21
El Domo
75%
18% ⁶
Life of Mine
17-Jan-22
Mineral Park
100%
18% ⁶
Life of Mine
24-Oct-23
Kudz Ze Kayah
6.875 ⁷
20%
Life of Mine
22-Dec-21 ⁸
Early Deposit
Toroparu
50%
$
3.90
Life of Mine
11-Nov-13
Cotabambas
100% ⁵
$
5.90
Life of Mine
21-Mar-16
Kutcho
100%
20%
Life of Mine
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 third quarter of 2025.
4)
Terms of the agreement not yet finalized.
5)
Under certain PMPAs, the Company’s attributable silver percentage will be reduced once certain thresholds are achieved:
c. Marmato – reduced to 50% once the Company has received 2.15 million ounces of silver.
d. Cozamin – reduced to 33% once the Company has received 10 million ounces of silver.
e. Blackwater – reduced to 33% once the Company has received 17.8 million ounces of silver.
f. Cotabambas – reduced to 66.67% once the Company has received 90 million silver equivalent ounces.
6)
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.
7)
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%.
8)
On February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [49]
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
4.5% ²
18% ³
Life of Mine
16-Jul-18
Platreef
5.25% ²
30% ²
Life of Mine ²
7-Dec-21 ⁴
Platinum
Marathon
22% ²
18% ³
Life of Mine
26-Jan-22
Platreef
5.25% ²
30% ²
Life of Mine ²
7-Dec-21 ⁴
Cobalt
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 February 27, 2024, the Company closed the Orion Purchase Agreement to acquire the Platreef and Kudz Ze Kayah PMPAs.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [50]
Other Contractual Obligations and Contingencies
Projected Payment Dates 1
(in thousands)
2025
2026 - 2027
2028 - 2029
After 2029
Total
Payments for mineral
stream interests &
royalty
Salobo 2
$
144,000
$
-
$
16,000
$
64,000
$
224,000
Copper World 3
-
131,429
99,721
-
231,150
Marmato
81,984
-
-
-
81,984
Santo Domingo
-
162,500
97,500
-
260,000
Fenix Gold
125,000
-
-
-
125,000
El Domo
43,875
131,625
-
-
175,500
Marathon
-
-
138,995
-
138,995
Cangrejos
3,100
-
252,000
-
255,100
Curraghinalt
-
-
-
55,000
55,000
Loma de La
Plata
-
-
-
32,400
32,400
Mineral Park
40,000
-
-
-
40,000
Kudz Ze Kayah
-
5,000
-
-
5,000
Koné
312,500
312,500
-
-
625,000
Kurmuk
131,250
-
-
-
131,250
Payments for early
deposit mineral
stream interest
Cotabambas
-
-
-
126,000
126,000
Toroparu
-
-
-
138,000
138,000
Kutcho
-
-
-
58,000
58,000
Leases liabilities
514
1,208
1,251
3,753
6,726
Total contractual
obligations
$
882,223
$
744,262
$
605,467
$
477,153
$
2,709,105
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.
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 first half of 2025. If actual throughput is expanded above 35 Mtpa by January 1, 2031,
Wheaton will be required to make additional payments to Vale ranging from $52 million if throughput is expanded
beyond 35 Mtpa by January 1, 2031, to up to $144 million if throughput is expanded beyond 35 Mtpa by January 1,
2026.
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.
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [51]
Marmato
Under the terms of the Marmato PMPA, the Company is committed to pay Aris Mining additional upfront cash
payments of $82 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.
Fenix
Under the terms of the Fenix PMPA, the Company is committed to pay Rio2 Limited (“Rio2”) additional upfront cash
payments of $125 million, payable subject to certain customary conditions. Wheaton has also provided a $20 million
secured standby loan facility.
El Domo (previously referred to as Curipamba)
Under the terms of the El Domo PMPA, the Company is committed to pay additional upfront cash payments of $175.5
million, which includes $0.25 million which will be paid to support certain local community development initiatives
around the El Domo Project. The payments will be payable in four staged installments during construction, subject to
various customary conditions being satisfied.
Marathon
Under the terms of the Marathon PMPA, the Company is committed to pay additional upfront cash payments of $139
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, the Company is committed to pay additional upfront consideration of $255
million. Of this amount, $3 million can be drawn upon for committed acquisition of surface rights and the remainder is
to be paid in three staged equal installments during construction of the mine, subject to various customary conditions
being satisfied.
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.
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.
Mineral Park
Under the terms of the Mineral Park PMPA, the Company is committed to pay a final installment of $40 million.
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, to help support the mine
construction if necessary, once the full upfront consideration under the stream has been paid.
Kudz Ze Kayah
Under the terms of the Kudz Ze Kayah PMPA (“KZK”), an additional $5 million contingency payment is due to Orion if
the KZK project achieves certain milestones.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [52]
Koné
Under the terms of the Koné PMPA, the Company is committed to pay upfront consideration of $625 million in four
equal installment payments during construction, subject to certain customary conditions. The Company has also
provided Montage Gold Corp., with a secured debt facility of up to $75 million to be allocated to project costs,
including cost overruns, prior to completion of construction and once the full upfront consideration under the Koné
PMPA has been paid.
Kurmuk
Under the terms of the Kumuk PMPA, the Company is committed to pay additional upfront consideration of $131
million in three equal installment payments during construction, subject to customary conditions.
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”) was 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”).
The Company filed Notices of Objection and paid 50% of the disputed amounts in order to challenge the Domestic
Reassessments. During the fourth quarter of 2024, this dispute was settled in the Company’s favour, and the
amounts previously paid were refunded with interest.
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [53]
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.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [54]
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:
Year Ended December 31, 2024
Sales
Cost
of Sales
Depletion
Impairment
Charges 1
Net
Earnings
Cash Flow
From
Operations
Total
Assets
(in thousands)
Gold
Salobo 5
$
539,583
$
95,568
$
85,934
$
-
$
358,081
$
444,015
$
2,595,485
Sudbury 2, 5
39,098
6,541
20,934
-
11,623
32,571
241,551
Constancia 5
118,096
21,031
15,939
-
81,126
97,066
64,326
San Dimas
68,654
18,247
8,241
-
42,166
50,407
136,481
Stillwater
21,592
3,840
4,009
-
13,743
17,752
207,460
Other 3
9,028
4,139
1,293
-
3,596
7,982
981,316
Total gold interests
$
796,051
$
149,366
$
136,350
$
-
$
510,335
$
649,793
$
4,226,619
Silver
Peñasquito 5
$
193,871
$
30,779
$
31,767
$
-
$
131,325
$
163,092
$
244,465
Antamina
100,719
20,222
28,759
-
51,738
80,497
490,771
Constancia 5
65,264
14,383
14,205
-
36,676
50,881
165,378
Other 4
97,976
14,638
15,982
-
67,356
85,230
662,630
Total silver interests
$
457,830
$
80,022
$
90,713
$
-
$
287,095
$
379,700
$
1,563,244
Palladium
Stillwater
$
16,999
$
3,088
$
7,488
$
-
$
6,423
$
13,911
$
213,179
Platreef
-
-
-
-
-
-
78,814
Total palladium interests
$
16,999
$
3,088
$
7,488
$
-
$
6,423
$
13,911
$
291,993
Platinum
Marathon
$
-
$
-
$
-
$
-
$
-
$
-
$
9,451
Platreef
-
-
-
-
-
-
57,584
Total platinum interests
$
-
$
-
$
-
$
-
$
-
$
-
$
67,035
Cobalt
Voisey's Bay 5
$
13,759
$
2,632
$
12,393
$ (108,861)
$ (110,127)
$
14,025
$
230,689
Total mineral stream interests
$ 1,284,639
$
235,108
$
246,944
$ (108,861)
$
693,726
$ 1,057,429
$
6,379,580
Other
General and administrative
$
(40,668)
$
(38,130)
Share based compensation
(23,268)
(11,129)
Donations and community investments
(8,958)
(8,098)
Finance costs
(5,549)
(4,280)
Other
29,061
23,273
Income tax
(115,204)
8,516
Total other
$ (164,586)
$
(29,848)
$
1,044,877
Consolidated
$
529,140
$ 1,027,581
$
7,424,457
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 Copper World, Santo Domingo, Fenix, Blackwater, El Domo, Marathon, Goose, Cangrejos, Platreef,
Curraghinalt, Kudz Ze Kayah, Koné and Kurmuk gold interests.
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, Pascua-Lama, Copper World, Navidad,
Blackwater, El Domo, Mineral Park and Kudz Ze Kayah silver interests.
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, 2024 were 46% 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, 2024 were 15% of the Company’s total revenue.
c.
The counterparty obligations under the Constancia PMPA are guaranteed by the parent company Hudbay Minerals Inc (“Hudbay”). Total revenues relative to Hudbay
during the year ended December 31, 2024 were 14% 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
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [55]
Year Ended December 31, 2023
Sales
Cost
of Sales
Depletion
Gain on
Disposal 1
Net
Earnings
(Loss)
Cash Flow
From
Operations
Total
Assets
(in thousands)
Gold
Salobo 5
$
399,936 $
85,382 $
71,878 $
- $
242,676 $
314,555 $
2,681,419
Sudbury 2, 5
37,432
7,596
20,931
-
8,905
29,554
262,485
Constancia 5
95,672
20,315
15,318
-
60,039
75,357
80,265
San Dimas
82,656
26,499
11,143
-
45,014
56,157
144,722
Stillwater
16,842
2,989
4,383
-
9,470
13,853
211,469
Other 3
11,593
6,191
1,250
-
4,152
5,137
603,689
Total gold interests
$
644,131 $
148,972 $
124,903 $
- $
370,256 $
494,613 $
3,984,049
Silver
Peñasquito 5
$
101,514 $
19,010 $
17,442 $
- $
65,062 $
82,504 $
276,232
Antamina
86,855
17,203
25,838
-
43,814
69,652
519,530
Constancia 5
50,913
13,197
13,364
-
24,352
37,716
179,583
Other 4
99,312
22,886
12,347
5,027
69,106
74,272
582,113
Total silver interests
$
338,594 $
72,296 $
68,991 $
5,027 $
202,334 $
264,144 $
1,557,458
Palladium
Stillwater
$
18,496 $
3,360 $
6,145 $
- $
8,991 $
15,135 $
220,667
Platinum
Marathon
$
- $
- $
- $
- $
- $
- $
9,451
Cobalt
Voisey's Bay 5
$
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
$
(38,165)
$
(36,025)
Share based compensation
(22,744)
(16,675)
Donations and community investments
(7,261)
(7,039)
Finance costs
(5,510)
(4,230)
Other
34,271
32,007
Income tax
(1,414)
(6,192)
Total other
$
(40,823)
$
(38,154)
$
908,744
Consolidated
$
537,644 $
750,809 $
7,031,185
1) See Note 12 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 are comprised of the
operating Marmato gold interests as well as the non-operating Minto, 777, Copper World, Santo Domingo, Fenix, Blackwater, Marathon, El Domo, 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, Aljustrel, Cozamin and Marmato silver interests and the non-operating Minto, 777, Loma de La Plata, Stratoni, Pascua-Lama,
Copper World, Blackwater, El Domo 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 third 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 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.
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
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [56]
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:
Carrying Amount at December 31, 2024
(in thousands)
Sales:
Year Ended
Dec 31, 2024
Gold
Interests
Silver
Interests
Palladium
Interests
Platinum
Interests
Cobalt
Interests
Total
North America
Canada
$
52,857
4% $ 701,358 $
165,983 $
- $
9,452 $ 230,689 $ 1,107,482 17%
United States
38,591
3% 207,461
76,426
213,179
-
-
497,066
8%
Mexico
283,348 22% 136,478
351,732
-
-
-
488,210
8%
Europe
Portugal
22,695
2%
-
16,559
-
-
-
16,559
0%
Sweden
53,648
4%
-
25,169
-
-
-
25,169
0%
UK
-
0%
20,365
-
-
-
-
20,365
0%
South America
Argentina/Chile 1
-
0%
-
253,513
-
-
-
253,513
4%
Argentina
-
0%
-
10,889
-
-
-
10,889
0%
Chile
1,944
0%
55,024
-
-
-
-
55,024
1%
Brazil
539,583 42% 2,595,486
-
-
-
-
2,595,486 41%
Peru
284,079 22%
64,327
656,142
-
-
-
720,469 11%
Ecuador
1,203
0%
45,593
82
-
-
-
45,675
1%
Colombia
6,691
1%
80,531
6,749
-
-
-
87,280
1%
Africa
Côte d'Ivoire
-
0%
342
-
-
-
-
342
0%
Ethiopia
-
0%
43,952
-
-
-
-
43,952
1%
South Africa
-
0% 275,702
-
78,814
57,583
-
412,099
7%
Consolidated
$ 1,284,639 100% $ 4,226,619 $ 1,563,244 $ 291,993 $
67,035 $ 230,689 $ 6,379,580 100%
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [57]
Carrying Amount at December 31, 2023
(in thousands)
Sales:
Year Ended
Dec 31, 2023
Gold
Interests
Silver
Interests
Palladium
Interests
Platinum
Interests
Cobalt
Interests
Total
North America
Canada
$
60,163
6% $
708,402 $
141,292 $
- $
9,451 $
350,816 $ 1,209,961 20%
United States
35,337
3%
211,470
971
220,667
-
-
433,108
7%
Mexico
200,146 20%
144,719
396,490
-
-
-
541,209
9%
Europe
Portugal
33,375
3%
-
17,516
-
-
-
17,516
0%
Sweden
48,177
5%
-
27,017
-
-
-
27,017
0%
UK
-
0%
20,198
-
-
-
-
20,198
0%
South America
Argentina/Chile 1
-
0%
-
253,514
-
-
-
253,514
4%
Argentina
-
0%
-
10,889
-
-
-
10,889
0%
Chile
-
0%
56,538
-
-
-
-
56,538
1%
Brazil
399,936 39%
2,681,419
-
-
-
-
2,681,419 44%
Peru
233,442 23%
80,265
699,107
-
-
-
779,372 13%
Ecuador
-
0%
39,455
3,779
-
-
-
43,234
1%
Colombia
5,469
1%
41,583
6,883
-
-
-
48,466
1%
Consolidated
$ 1,016,045 100% $ 3,984,049 $ 1,557,458 $
220,667 $
9,451 $
350,816 $ 6,122,441 100%
1) Includes the Pascua-Lama project, which straddles the border of Argentina and Chile.
29.
Subsequent Events
Declaration of Dividend
The Company has increased its quarterly dividend under its dividend policy, setting it at $0.165 per common share for
2025. The declaration, timing, amount and payment of future dividends remain at the discretion of the Board of
Directors.
On March 13, 2025, the Board of Directors declared a dividend in the amount of $0.165 per common share, with this
dividend being payable to shareholders of record on April 1, 2025 and is expected to be distributed on or about April
11, 2025. 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.
Amendment to Blackwater PMPA
On March 7, 2025, the Company amended its PMPA (the “Blackwater Silver PMPA”) with Artemis Gold Inc.
(“Artemis”) in respect of silver production from the Blackwater Project located in British Columbia in Canada (the
“Blackwater Project”). Under the Blackwater Silver PMPA, Wheaton will acquire an amount of silver equal to 50% of
the payable silver until 17.8 million ounces have been delivered and 33% of payable silver thereafter for the life of the
mine.
Previously, the determination of payable silver production under the Blackwater Silver PMPA required the application
of a complex metallurgical protocol to determine the silver content of the mill feed and applied a fixed recovery rate of
61%. As a result of the amendment, the amount of payable silver will be determined based on a fixed ratio of silver to
gold ounces produced. The ratio will be as follows:
5.17 ounces of silver for every ounce of gold produced while the plant throughput is less than 15Mtpa;
5.10 ounces of silver for every ounce of gold produced while the plant throughput exceeds 15Mtpa, but is
less than 20Mtpa; and
5.07 ounces of silver for every ounce of gold produced while the plant throughput exceeds 20Mtpa
Notes to the Consolidated Financial Statements
Years Ended December 31, 2024 and 2023 (US Dollars)
WHEATON PRECIOUS METALS 2024 ANNUAL REPORT - FINANCIAL STATEMENTS [58]
Once 17.8 million ounces of silver have been delivered, the determination of payable silver will revert to being based
on a fixed silver recovery factor, consistent with the previous terms of the Blackwater Silver PMPA. As a result of the
changed payable silver profile which is expected to deliver silver ounces to the Company sooner relative to the
original profile, coupled with the administrative benefits when it comes to determining payable silver, on March 10,
2025, the Company paid Artemis $30 million in connection with this amendment.
Corporate
Information
DIRECTORS
George Brack, Chair
Jaimie Donovan
Peter Gillin
Chantal Gosselin
Jeane Hull
Glenn Ives
Charles Jeannes
Marilyn Schonberner
Randy Smallwood
Srinivasan Venkatakrishnan
OFFICERS
Randy Smallwood
President & Chief Executive Officer
Curt Bernardi
Senior Vice President,
Legal and Strategic Development
Gary Brown
Senior Vice President & Chief Financial Officer
(until March 31, 2025)
Vincent Lau
Senior Vice President & Chief Financial Officer
(effective March 31, 2025)
Haytham Hodaly
Senior Vice President, Corporate Development
TRANSFER AGENT
TSX Trust Company
1600 – 1066 West Hastings Street
Vancouver, BC V6E 3X1
Toll-free in Canada & USA:
1 800 387 0825
Outside of Canada & USA:
1 416 682 3860
Email: shareholderinquiries@tmx.com
AUDITORS
Deloitte LLP
Vancouver, Canada
INVESTOR CONTACT
Emma Murray
Vice President, Investor Relations
Telephone: 1 604 684 9648
Toll Free: 1 844 288 9878
Email: info@wheatonpm.com
STOCK EXCHANGE LISTING:
Toronto Stock Exchange: WPM
New York Stock Exchange: WPM
London Stock Exchange: WPM
CANADA – HEAD OFFICE
Wheaton Precious Metals Corp.
Suite 3500
1021 West Hastings Street
Vancouver, BC V6E 0C3
Canada
T: 1 604 684 9648
F: 1 604 684 3123
CAYMAN ISLANDS OFFICE
Wheaton Precious Metals
International Ltd.
Suite 300, 94 Solaris Avenue
Camana Bay
P.O. Box 1791 GT, Grand Cayman
Cayman 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