(Kitco News) - Wheaton Precious Metals (TSX, NYSE: WPM) announced Thursday that its revenue was $219 million in Q3 2022 representing an 19% decrease from Q3 2021 due primarily to a 12% decrease in the average realized gold equivalent price and a 7% decrease in the number of GEOs sold.
The company said that average cash costs in Q3 2022 were $439 per GEO as compared to $417 in Q3 2021, adding that this resulted in a cash operating margin of $1,137 per GEO sold, a decrease of 17% as compared with Q3 2021.
Wheaton also announced $197 million in net earnings (Q3 2021: $135 million) and $94 million in adjusted net earnings (Q3 2021: $137 million) in the quarter, and declared a quarterly dividend of $0.15 per common share.
"At Wheaton, we focus on building a sustainable company that provides investors with profitable, long-term exposure to precious metals. While inflationary pressures have impacted all sectors of the economy, especially mining, Wheaton has maintained cash operating margins of over 75% year to date, highlighting the strength of our streaming business model," commented President and CEO Randy Smallwood.
"Despite some recent challenges, we are pleased with the improvements we have seen over the third quarter in our diverse portfolio of high-quality assets, which is forecast to deliver significant organic growth over the next five years and sustained precious metals production for decades to come. We also are very optimistic that we can continue to add accretive new streams to the portfolio given the number of opportunities that we are currently reviewing coupled with one of the strongest balance sheets in the sector."
Wheaton is the world's premier precious metals streaming company with the portfolio of long-life, low-cost assets. Its business model offers investors commodity price leverage and exploration upside but with a much lower risk profile than a traditional mining company.
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