Wheaton Precious Metals Reports Non-Cash Impairment Charge Of $166 Million In Q2
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(Kitco News) - Wheaton Precious Metals is on track to see record gold production for the year even as it was hit with a non-cash impairment charge in the second quarter.
The precious metals streaming company reported adjusted net earnings of $45 million $0.10 per share between April and June, which was relatively in line with expectations. The company said that earnings were down 38% compared with adjusted net earnings of $72 million or $0.16 per share for the same period in 2018.
The company reported a non-cash impairment charge of $166 million relative to the Company’s Voisey’s Bay PMPA.
Despite the write-down, Wheaton Precious Metals said that it generated over $100 million in operating cash flow and had attributable gold production of over 100,000 ounces. The company also reaffirmed its guidance this year as it expects to see record gold production in 2019.
“Wheaton’s estimated attributable production in 2019 is on track to meet its forecast of approximately 690,000 gold equivalent ounces,” the company said. “For the five-year period ending in 2023, the Company continues to estimate that average annual gold equivalent production will amount to 750,000 ounces.”
The company also declared a quarterly dividend of $0.09 per common for the quarter.
“Wheaton once again generated strong operating cash flow in the second quarter at well over $100 million,” said Randy Smallwood, president and chief executive officer of Wheaton Precious Metals in a press release. “As always, we remain focused on the sustainable management of our diverse portfolio of low-cost, long-life assets and delivering superior shareholder value.”
The company reported revenue of $189 million between April and June, down 11% compared to revenue of $212 million during the second quarter of 2018. The company said it sold 90,100 ounces of gold, 4.2 million ounces of silver and 5,300 ounces of palladium.