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Wheaton reports lower quarterly net earnings as gold equivalent ounces sold down in Q1

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(Kitco News) - Wheaton Precious Metals (TSX: WPM), the world's premier precious metals streaming company, reported yesterday that its revenue was $307 million in Q1 2022 representing a 5% decrease from Q1 2021.

The company explained that this decrease was due primarily to a 4% decrease in the number of gold equivalent ounces (GEO) sold in Q1 2022 (166,065 oz).

Average cash costs in the first quarter of 2022 were $421 per GEO as compared to $457 in the first quarter of 2021. This resulted in a cash operating margin of $1,429 per GEO sold, virtually unchanged as compared with the first quarter of 2021.

The company also reported Q1 2022 net earnings of $157 million (Q1 2021: $162 million) and adjusted net earnings of $158 million (Q1 2021: $161 million), as well as $210 million in operating cash flow (Q1 2021: $232 million), resulting in a net cash balance of $376 million as at March 31, 2022.

In addition, the company declared quarterly dividend of $0.15 per common share, an increase of 7% relative to the comparable period in 2021.

"Wheaton once again had a solid start to the year, generating over $210 million in operating cash flow and continuing to return value to our shareholders through our competitive dividend," said President and CEO Randy Smallwood. "In the first three months of 2022, we added two new streams and increased our interest in a pre-existing stream."

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"The year is off to a good start, and I look forward to advancing on all of our initiatives throughout the year in order to continue building a strong, sustainable business, that delivers value and growth to all of our stakeholders," he added.

Wheaton's estimated attributable production in 2022 is forecast to be 350,000 to 380,000 ounces of gold, 23.0 to 25.0 million ounces of silver, and 44,000 to 48,000 GEOs of other metals, resulting in production of approximately 700,000 to 760,000 GEOs.

For the five-year period ending in 2026, the company estimates that average production will amount to 850,000 GEOs; and for the ten-year period ending in 2031, the company estimates that average annual production will amount to 910,000 GEOs.

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