Wheaton Precious Metals says revenue down 15% in Q4

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Wheaton Precious Metals Corp. (WPM-TSX, WPM-NYSE) has reported its 2022 financial results with full-year revenue coming in at $1.06 billion, operating cash flow at $743 million and $505 million in adjusted net earnings.

“This strong financial performance reflects the resiliency of Wheaton’s streaming business model, which delivers amongst the highest margins in the precious metals space,’’ said Wheaton President and CEO Randy Smallwood.

The company also reiterated its production targets, saying estimated attributable production in 2023 is forecast at between 600,000 to 660,000 gold equivalent ounces, including 320,000 to 350,000 ounces of gold, 20,000 to 22,000 ounces of silver and 22,000 to 25,000 ounces of palladium and cobalt.

Average annual production for the 10-year period ending December 31, 2031, is expected to be approximately 850,000 GEOs (gold equivalent ounces).

Wheaton Precious Metals is a leading precious metals streaming company. Unlike traditional mining companies, Wheaton makes upfront payments and in return it purchases a fixed percentage of the future silver and/or gold production from a mine at a predetermined price. It can then sell the metal in the open market. In many cases, these agreements are for the life of the mine.

The company has streaming agreements covering 20 operating mines and 13 development stage projects. These include Vale’s Salobo mine in Brazil, Glencore AG’s Antamina mine in Peru and Newmont Corp’s [NGT-TSX, NEM-NYSE] Penasquito mine in Mexico.

The company said revenue was $236 million in the fourth quarter of 2022, representing a 15% decrease from the fourth quarter of 2021 due primarily to a 10% decrease in the number of GEOs (gold equivalent ounces) sold, and a 6% decrease in the average realized gold equivalent price.

Wheaton said revenue of $1.06 billion in 2022 was down 11% from 2021 for similar reasons.

Wheaton announced its fourth quarter and full year financial results after the close of trading on March 9, when Wheaton shares closed at $54. They currently trade in a 52-week range of $65.45 and $39.05.

In the fourth quarter development asset highlights second of its financial results, Wheaton noted that Artemis Gold Inc.  [ARTG-TSXV] has announced the approval of its BC Mines Act Permit for the Blackwater project in central British Columbia. The approval of the BC Mines Act Permit is the final step required to allow Artemis to commence major works construction activities at the Blackwater Mine in the first quarter of 2023, with the expectation of an initial gold pour in the second half of 2024.

The Blackwater project is located in central B.C. approximately 160 kilometres southwest of Prince George and 446 kilometres northeast of Vancouver. It is accessible by a major highway and access/service roads.

Artemis bought the Blackwater Project from New Gold Inc. (NGD-TSX, NYSE American) in August, 2020.

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