“Our strong performance in 2020 was driven by Wheaton’s high -quality portfolio of assets, which generated over $1 billion in revenue and operating cash flow of over $765 million, both representing records for the company,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals.
“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. Given the resiliency of our production base coupled with our innovative dividend policy, we are pleased to provide greater value back to our shareholders in 2021 by increasing the minimum quarterly dividend by over 30 percent relative to last year.”
Fourth Quarter and Year End 2020 Highlights:
•$208 million in operating cash flow in the quarter resulting in record annual operating cash flow of over $765 million in 2020.
•Record annual revenue of $1,096 million in 2020.
•Net debt reduced by $275 million, resulting in a net debt position of $2 million.
•Declared quarterly dividend1 of $0.13 per common share.
•New precious metal purchase agreements on the Marmato Mine and the Cozamin Mine.
•Total attributable gold Measured and Indicated Mineral Resources increased by 64 percent, primarily due to successful exploration at Salobo, which extended the orebody at depth.
•Commenced trading on the Main Market of the London Stock Exchange.
Revenues
Revenue was $286 million in the fourth quarter of 2020 representing a 28 percent increase from the fourth quarter of 2019 due primarily to a 33 percent increase in the average realized gold equivalent price; partially offset by a 3 percent decrease in the number of gold equivalent ounces sold.
Revenue was $1,096 million in the year ended December 31, 2020 representing a 27 percent increase from 2019 due primarily to a 28 percent increase in the average realized gold equivalent² price.
Costs and Expenses
Average cash costs in the fourth quarter of 2020 were $438 per gold equivalent ounce as compared to $418 in the fourth quarter of 2019. This resulted in a cash operating margin of $1,505 per gold equivalent ounce sold, an increase of 44 percent as compared with the fourth quarter of 2019.
Average cash costs in 2020 were $425 per gold equivalent ounce as compared to $411 in 2019. This resulted in a cash operating margin of $1,323 per gold equivalent ounce sold, an increase of 38 percent as compared with 2019.