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Wheaton posts net earnings of $669 million in 2022 despite 'inflationary environment'

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(Kitco News) - On Thursday, Wheaton Precious Metals (TSX:WPM, NYSE: WPM) reported that in 2022, the company generated $1,065 million in revenue (2021 - $1,202 million), $743 million in operating cash flow (2021 - $845 million), $669 million in net earnings (2021 – $755 million) and $505 million in adjusted net earnings (2021 – $592 million).

President and CEO Randy Smallwood commented, "Wheaton's portfolio of long-life, low-cost assets delivered over $1 billion in revenue and over $740 million in operating cash flow in 2022. This strong financial performance reflects the resiliency of Wheaton's streaming business model, which delivers amongst the highest margins in the precious metals space. Even in the current inflationary environment, Wheaton averaged 75% cash operating margins in 2022.

"In addition, Wheaton took strategic steps forward by optimizing the portfolio, adding four new streams and making sector-leading commitments on the sustainability front. With one of the strongest balance sheets in the industry, we enter 2023 exceptionally well-positioned to deliver long-term shareholder value through the significant organic growth profile already embedded in the portfolio as well as through additional accretive acquisitions."

Previously, Wheaton reported that its 2022 gold equivalent production of 638,100 ounces met the low end of the revised guidance of between 640,000 and 680,000 gold equivalent ounces.

The company said it delivered "solid" production results at the low end of guidance "despite facing a number of headwinds in 2022."

According to a press release, stronger than expected production at Antamina due to higher grades was offset by weaker than expected production from Salobo due to lower throughput and grades as a result of changes in maintenance routines and Stillwater due to lower throughput as a result of significant regional flooding that impacted operations primarily in the second half of the year.

The company also noted that in 2023, gold equivalent production is forecast to be slightly higher than 2022 as expected stronger attributable production from Salobo and Constancia is forecast to be offset by weaker production from Antamina and the termination of the silver stream on Yauliyacu.

Wheaton's annual average forecast production over the next five years of 810,000 gold equivalent ounces is expected to increase primarily due to anticipated continued production growth from Salobo, Stillwater, Constancia, Voisey's Bay and Marmato as well as incremental production ounces from Blackwater, Toroparu, Marathon, Rosemont and Santo Domingo towards the latter end of the forecast period

The company's annual average forecast production over the next ten years of 850,000 gold equivalent ounces includes additional incremental production from the Fenix project, Kutcho project and the Victor mine in Sudbury.

Wheaton Precious Metals is the world's premier precious metals streaming company. The company indicated that its business model offers investors leverage to commodity prices and exploration upside but with a much lower risk profile than a traditional mining company.

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