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Wheaton Precious Metals sees revenue drop on undelivered ounces, soft metal prices

Kitco News

Wheaton Precious Metals (NYSE:WPM) said today it recorded $269 million in revenue during the third quarter, down 12% from the same period a year ago.

Wheaton said a large build-up of payable ounces produced but not yet delivered at the Salobo Mine and a 4% decrease in the average realized gold equivalent price were responsible for the drop.

The company noted that it's first nine months was a record, $650 million in revenues compared to $555 million during the same period a year ago.

Gold equivalent ounces production was up 2.1% from a year ago.

The company declared quarterly dividend of $0.15 per common share.

Wheaton narrowed its outlook focus.

"Wheaton's estimated attributable production in 2021 is now forecast to be approximately 735,000 to 765,000 gold equivalent ounces in line with previous guidance of 720,000 to 780,000 GEOs. However, given strong performances at Peñasquito, Antamina and Voisey's Bay, coupled with production being lower than expected at Salobo, Wheaton is adjusting the production mix by metal," wrote the company now expecting a slightly higher mix of silver over gold.

Longer term guidance remains unchanged at an average production of 810,000 GEOs for the five-year period ending 2025 and 830,000 GEOs for the ten-year period ending in 2030, said the company.

As of the end of the September, Wheaton said it had $372 million in cash on hand and $2 billion of additional capacity through the revolving credit facility as of September 30, 2021.

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