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Designated News Release
FIRST QUARTER 2021 FINANCIAL RESULTS
VANCOUVER, BC, May 6, 2021 /CNW/ - "Wheaton's first quarter results illustrate the strength and growth profile of our diversified, high-quality portfolio with record revenue achieved and over $230 million in operating cash flow generated. As a result of these strong results, we have increased our dividend for the third quarter in a row and now have net cash on the balance sheet, which we will look to deploy to further grow our sector-leading portfolio," said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. "We are excited to report our first production of cobalt from the Voisey's Bay mine in Canada and look forward to having many more years of what we believe is the most environmentally friendly, socially responsible cobalt production in the world. In addition, in the first quarter, we added a new precious metals stream on a top-tier copper development project, Santo Domingo, which should provide additional growth. Our corporate development team remains exceptionally busy evaluating a host of new opportunities, and as always, Wheaton is focused on ensuring our growth is both accretive and sustainable for all of our stakeholders."
First Quarter 2021 Highlights:
- $232 million in operating cash flow during the first quarter.
- Record quarterly revenue of $324 million during the first quarter.
- Revolving facility fully repaid during the quarter, resulting in $191 million of cash on hand.
- Declared quarterly dividend1 of $0.14 per common share representing the third quarterly dividend increase in a row and a 40% increase relative to Q1 2020.
- First cobalt and silver deliveries from the Voisey's Bay and Cozamin mines, respectively.
- New precious metal purchase agreement in respect to the Santo Domingo project.
Operational Overview
| (all figures in US dollars unless otherwise noted) | | Q1 2021 | | Q1 2020 | Change |
| Units produced | | | | | |
| Gold ounces | | 77,733 | | 94,999 | (18.2)% |
| Silver ounces | | 6,754 | | 6,704 | 0.7 % |
| Palladium ounces | | 5,769 | | 5,312 | 8.6 % |
| Cobalt pounds | | 1,160,921 | | - | n.a. |
| Gold equivalent 2 | | 190,359 | | 194,901 | (2.3)% |
| Units sold | | | | | |
| Gold ounces | | 75,104 | | 100,405 | (25.2)% |
| Silver ounces | | 6,657 | | 4,928 | 35.1 % |
| Palladium ounces | | 5,131 | | 4,938 | 3.9 % |
| Cobalt pounds | | 132,277 | | - | n.a. |
| Gold equivalent 2 | | 175,419 | | 175,154 | 0.2 % |
| Revenue | $ | 324,119 | $ | 254,789 | 27.2 % |
| Net earnings | $ | 162,002 | $ | 94,896 | 71 % |
| Per share | $ | 0.360 | $ | 0.212 | 69.8 % |
| Adjusted net earnings 1 | $ | 161,132 | $ | 104,533 | 54.1 % |
| Per share 1 | $ | 0.358 | $ | 0.233 | 53.6 % |
| Operating cash flows | $ | 232,154 | $ | 177,588 | 30.7 % |
| Per share 1 | $ | 0.516 | $ | 0.397 | 30.0 % |
| All amounts in thousands except gold, palladium & gold equivalent ounces and cobalt pounds produced & sold, per ounce/pound amounts & per share amounts. |
Financial Review
Revenues
Revenue was $324 million in the first quarter of 2021 representing a 27% increase from the first quarter of 2020 due primarily to a 27% increase in the average realized gold equivalent² price.
Cash Costs and Margin
Average cash costs¹ in the first quarter of 2021 were $449 per gold equivalent² ounce as compared to $382 in Q1 2020. This resulted in a cash operating margin¹ of $1,399 per gold equivalent² ounce sold, an increase of 30% as compared with the first quarter of 2020.
Balance Sheet (at March 31, 2021)
- Approximately $191 million of cash on hand.
- The Company's $2 billion revolving term loan (the "Revolving Facility") fully repaid.
- During Q1 2021, the company received $112 million in proceeds from the sale of its remaining equity investment in First Majestic Silver Corp. ("First Majestic").
- During Q1 2021, the Company has repaid $195 million under the Revolving Facility.
- The average effective interest rate for Q1 2021 was 1.17%.
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