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Wheaton Precious Metals Corp on Friday reported weaker quarterly earnings as production and sales dwindled.
Wheaton Precious Metals is a Vancouver-based precious metals streaming company that invests in precious metal mining through royalties and streaming deals.
For the second quarter ending June 30, the company's revenue declined 8.3% to $302.9 million from $330.4 million a year prior. This was primarily due to a 5.0% decrease in the average realised gold equivalent price to $1,778 per ounce from $1,872 per ounce a year before.
Additionally, output for the quarter fell 24% to 68,365 ounces of gold from 90,027 ounces a year ago. The most notable causes, Wheaton said, were floods affecting the Stillwater mine in Montana, US and a 39% decrease in production from the Salobo mine in Brazil.
Wheaton reported a 9.7% decline in pretax profit to $149.3 million from $165.2 million a year before.
For the second half as a whole, revenue was down 6.8% to $610.2 million from $654.5 million a year prior, and pretax profit reduced 5.9% to $307.4 from $326.7 million. Wheaton, again, said this is due to a decrease in gold equivalent ounces sold and average realised gold equivalent price.
In the first quarter, revenue and pretax profit had declined by 5.2% and 2.1% respectively, from a year before.
The company declared a quarterly dividend of $0.15, unchanged from a year before.
Looking ahead, Wheaton has lowered its production guidance due to the proposed termination of the Keno Hill precious metals purchase agreement and lower production from the Stillwater and Salobo mines. The company now expects output to be between 640,000 and 680,000 gold equivalent ounces.
Chief Executive Officer Randy Smallwood said: ‘While not without its challenges, our diverse portfolio once again delivered strong operating cash flow and an attractive dividend yield, highlighting the resiliency of the streaming model to the inflationary pressures currently being felt across the global economy.’
Shares in Wheaton Precious Metals were untraded in London on Friday, last quoted at 2,807.90 pence.
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