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(Kitco News) - On Thursday, Wheaton Precious Metals (TSX: WPM) reported that in Q1 2023, the company generated $214 million in revenue (Q1 2022: $307 million), $135 million in operating cash flow (Q1 2022: $211 million) and $111 million in net earnings (Q1 2022: $157 million).
Wheaton also reported production of 141,831 gold equivalent ounces (GEOs) in Q1 2023, which is a decrease of 14.3% compared to Q1 2022 (165,555 ounces).
In a press release, the company said the 30.2% decline in revenue was primarily due to the cessation of production from Yauliyacu, 777 and Keno Hill coupled with relative changes in the GEOs produced but not yet delivered and a 5% decrease in the average realized gold equivalent price.
Average cash costs in the first quarter of 2023 were $443 per GEO as compared to $440 in the first quarter of 2022. This resulted in a cash operating margin of $1,384 per GEO sold, a decrease of 7% as compared with the first quarter of 2022.
The company said that operating cashflow amounted to $135 million in Q1 2023, with the $75 million decrease being due primarily to the lower cash operating margin and the payout of the company's performance share units in Q1 2023 while in 2022 they were paid in the second quarter.
Wheaton's estimated attributable production in 2023 is forecast to be 320,000 to 350,000 ounces of gold, 20.0 to 22.0 million ounces of silver, and 22,000 to 25,000 GEOs of other metals, resulting in production of approximately 600,000 to 660,000 GEOs, unchanged from previous guidance.
Importantly, Wheaton noted that average annual production for the five and ten-year periods is expected to be approximately 810,000 and 850,000 GEOs, respectively.
The company also announced that its Board of Directors has declared its second quarterly cash dividend payment for 2023 of US$0.15 per common share.
President and CEO Randy Smallwood commented, "Wheaton's high-quality portfolio of long-life, low-cost assets delivered a solid performance to start the year, resulting in revenue of $214 million and robust cash operating margins.
"First quarter production was ahead of company expectations, and as we continue to see positive developments at a number of our key assets including Salobo and Constancia, we expect to see significant production growth throughout 2023, culminating in a strong second half of the year."
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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