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Wheaton enjoys record 2020 revenue of $1.1bn, shares up

One of Wheaton’s streams is for the Salobo mine, the largest copper deposit ever discovered in Brazil. (Image by Salviano Machado | Vale)

Wheaton Precious Metals enjoyed record 2020 revenues of $1.1 billion with 627,063 oz. gold-equivalent sold. The figure includes sales of 367,419 oz. gold, 22,9 million oz. silver, and 22,187 oz. palladium.

Operating cash flow for the year was over $765 million, also a record. The company reduced its net debt by $275 million, leaving it at $2 million. Shareholders were granted a fourth quarter dividend of $0.13 per common share.

Average cash costs in 2020 were $425 per oz. gold-equivalent compared to $411 in 2019. This resulted in a cash operating margin of $1,323 per oz. gold-equivalent sold, an increase of 38% compared with 2019.

Midday Friday, Wheaton’s stock was up nearly 3% on the NYSE

Going forward, Wheaton offered 2021 guidance of 370,000 to 400,000 oz. gold, 22.5 million to 24.0 million oz. Silver, and 40,000 to 45,000 oz. gold-equivalent from other metals. Total gold-equivalent ounces will be between 720,000 to 780,000.

The longer production outlook should reach 810,00 oz. gold-equivalent in five years and 830,000 oz. in 10 years.

The company also offered the estimates of metals contained in reserves and resources attributable to the company:

  • Proven and probable reserves – 11.21 million oz. gold (down 1% from 2019), 552.9 million oz. silver (–2%), 640,000 oz. palladium (–3%), 31.7 million lb. cobalt (–3%).
  • Measured and indicated resources – 4.39 million oz. gold (+64%), 743.1 million oz. silver (+1%), 29,000 oz. palladium compared to none in 2019, and 1.5 million lb. cobalt (–4%).
  • Inferred resources – 4.46 million oz. gold (+7%), 475.8 million oz. silver (–3%), 370,000 oz. palladium (+6%), and 7.6 million lb. cobalt (–18%).

Wheaton president and CEO Randy Smallwood summed up 2020, saying, “Despite the challenges posed by the covid-19 pandemic, 2020 was a very productive year, and we were successful in delivering value back to our stakeholders on many fronts. Specifically, we added two new accretive precious metal streams to our portfolio, expanded our shareholder base by listing on the London Stock Exchange and provided additional funding to communities impacted by the pandemic.”

Midday Friday, Wheaton’s stock was up nearly 3% on the NYSE. The company has a $17.5 billion market capitalization.

(This article first appeared in The Northern Miner)