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Editing
Wheaton Precious Metals
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== Ounces produced but not yet delivered == At 10.5% the degree of under-sale of silver during the quarter, relative to production, was in line with the long-run average of 12.0% since Q112; at 1.5% however, the under-sale of gold relative to production was noticeably lower than the long-run average of 7.3%. Significantly, the degree of under-sale of both reduced materially relative to the prior quarter, as shown in the graph below, which may demonstrate something of a delayed ‘flush through’ effect from Q421. This effect is more normally observed in the fourth quarter of any particular year, when WPM’s streaming counterparties tend to try to flush through sales ahead of the year-end. '''Exhibit 3: Over/(under) sale of silver and gold as a percentage of production, Q112–Q122<ref>Source: Edison Investment Research, WPM. Note: As reported.</ref>''' [[File:Image3-e3e82cb4c5b8533db86448fc33d3d7c4.png|600x600px]] Gold and silver ounces produced but not yet delivered as at 31 March amounted to 82,350oz and 3.9Moz, respectively (cf 84,989oz and 4.2Moz at end-Q421). Both of these were less than Edison Investment Research's prior forecasts of 91,337oz and 4.3Moz (respectively), albeit in part this could be attributed to the comparable figure in the prior quarter (anyway always an estimate) being restated downwards by 956koz in the case of gold, in particular. At the period end, Edison Investment Research estimates that ounces produced but not yet delivered will equate to 2.80 months and 1.97 months of gold and silver production for FY22, respectively (cf 3.01 months and 1.92 months as at end-Q421) and compares with WPM’s target of two to three months of gold and palladium production and two months of silver production: '''Exhibit 4: WPM ounces produced but not yet delivered, Q316–Q122 (months of production)<ref>Source: Edison Investment Research, WPM. Note: As reported.</ref>''' [[File:Image4-637175b3be415fbbfb18d0864bdfb42c.png|600x600px]] Note that, for these purposes, the use of the term ‘inventory’ reflects ounces of gold and silver produced by WPM’s operating counterparties at the mines over which it has streaming agreements, but which have not yet been delivered to WPM. It in no way reflects the other use of the term in the mining industry, where it typically refers to metal in circuit and ore on stockpiles etc.
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