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(Kitco News) - On Thursday, streaming company Wheaton Precious Metals (TSX: WPM) reported that in Q2 2023, the company generated $265 million in revenue, $202 million in operating cash flow, $141 million in net earnings and $143 million in adjusted net earnings.
Wheaton also reported production of 147,699 gold equivalent ounces (GEOs) in Q2 2023, which is a decrease of 5.3% compared to Q2 2022 (155,932 ounces). However, the company noted “significant” progress at the recently commissioned expansion at Salobo.
The company said its Q2 2023 revenue of $265 million decreased by 12.5% relative to the prior period quarter (Q2 2022: $303 million) primarily due to relative changes in GEOs produced but not yet delivered partially offset by a 4% increase in realized commodity prices.
Importantly, Wheaton noted that its cash operating margin amounted to $1,487 per GEO sold, an increase of 8% as compared with the second quarter of 2022, - a result of the higher realized price per ounce.
The company’s operating cash flow in the second quarter of 2023 amounted to $202 million, with the $4 million decrease over the prior year quarter due primarily to the lower sales volumes.
Wheaton also maintained its average annual production guidance for 2023 of 600,000 to 660,000 GEOs and declared a quarterly dividend of $0.15 per common share.
Commenting on the results, President and CEO Randy Smallwood said, "Wheaton delivered solid operational results during the quarter, generating over $200 million of operating cash flow, primarily driven by significant sequential improvement at the recently commissioned expansion at our largest asset, Salobo.
“Furthermore, we continued to see momentum on the corporate development front with the addition of a new gold stream on Lumina Gold's Cangrejos project and the expansion of our existing gold stream on Artemis Gold's Blackwater project.”
"Despite operations at Peñasquito being suspended in early June, we achieved quarter-over-quarter gold equivalent production growth. As such, we are reiterating our 2023 production guidance, which we now expect to have a slightly higher weighting toward gold, highlighting the resilience of our high-quality, diversified portfolio," he added.
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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