REG - Wheaton Precious Met - 2022 Production and Sales Results

Wheaton Precious MetalsAnnouncement

22/02/2023 07:00

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RNS Number : 6862Q  Wheaton Precious Metals Corp.  22 February 2023

February 21, 2023
Vancouver, British Columbia
 

Wheaton Precious Metals Announces 2022 Production and Sales Results and
Forecasts Over 30% Long-Term Growth

 

"Wheaton delivered solid production results at the low end of guidance despite
facing a number of headwinds in 2022. In addition, we took steps to optimize
our portfolio as part of our responsibility to manage our existing assets and
to ensure we are well positioned for a period of prolonged growth," said Randy
Smallwood, President and Chief Executive Officer of Wheaton Precious Metals.
"Wheaton further diversified its asset base in 2022 by adding four additional
streams on development assets, which will contribute to our steady organic
growth over the next five years. Given the strong tenure of our reserve and
resource base, we are also pleased to continue to present ten-year production
guidance highlighting the long-term strength in our portfolio."

 

Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") will provide
full production and financial details with the release of its 2022 fourth
quarter and full year results on Thursday, March 9, 2023, after market close.

 

2022 Attributable Production and Sales

 

 Metal                                                                          2022                2022                     2022

                                                                                Forecast            Actual                   Actual

                                                                                Production          Production 1  (#_edn1)   Sales
 Gold Ounces                                                                    300,000 to 320,000  286,985                  293,234
 Silver Ounces ('000s)                                                          22,500 to 24,000    23,979                   21,570
 Other Metals (GEOs 2  (#_edn2) )                                               35,000 to 40,000    31,347                   36,625
      Palladium Ounces                                                                              15,485                   15,076
      Cobalt pounds ('000s)                                                                         724                      1,038
 Gold Equivalent Ounces(2) based on:                                            640,000 to 680,000  638,048                  617,450

 $1,800 / oz gold, $24 / oz silver, $2,100 / oz palladium and $33 / lb cobalt

 

In 2022, gold equivalent production met the low end of the revised guidance
primarily as a result of stronger than expected production at Antamina due to
higher grades being offset by weaker than expected production from Salobo due
to lower throughput and grades as a result of changes in maintenance routines
and Stillwater due to lower throughput as a result of significant regional
flooding that impacted operations primarily in the second half of the year.

 

2023 and Long-Term Production Outlook

 

 Metal                                                                          2023                5-year Annual Average     10-year Annual Average

                                                                                Forecast(1)         (2023-2027) 3  (#_edn3)   (2023-2032)3
 Gold Ounces                                                                    320,000 to 350,000
 Silver Ounces ('000s)                                                          20,000 to 22,000
 Other Metals (Palladium & Cobalt) (GEOs 4  (#_edn4) )                          22,000 to 25,000
 Gold Equivalent Ounces(4) based on: $1,850 / oz gold, $24 / oz silver, $1,800  600,000 to 660,000  810,000                   850,000
 / oz palladium, $1,100 / oz platinum and $18.75 / lb cobalt

 

In 2023, gold equivalent production is forecast to be slightly higher than
2022 as expected stronger attributable production from Salobo and Constancia
is forecast to be offset by weaker production from Antamina and the
termination of the silver stream on Yauliyacu. Attributable production is
forecast to increase at Salobo as a result of uninterrupted operations as well
as the start-up of the Salobo III mine expansion and at Constancia due to
higher grades associated with the mining of the Pampacancha deposit.
Attributable production is forecast to decrease a Antamina due to lower grades
as per the mine plan.

 

On August 18, 2022, the Company announced that it had entered into an
agreement with Glencore plc ("Glencore") to terminate its silver stream on the
Yauliyacu Mine in Peru for a cash payment of $150 million, less the aggregate
value of any deliveries to Wheaton, prior to closing, of silver produced
subsequent to December 31, 2021. Wheaton agreed to terminate the stream in
order to help facilitate the sale of the Yauliyacu Mine by Glencore. In the
fourth quarter of 2022, the stream was terminated, and Wheaton received $132
million from Glencore. In 2022, attributable production from the Yauliyacu
mine was approximately 2.1 million ounces of silver.

 

Average forecast production over the next five years is expected to increase
primarily due to anticipated continued production growth from Salobo,
Stillwater, Constancia, Voisey's Bay and Marmato as well as incremental
production ounces from Blackwater, Toroparu, Marathon, Rosemont and Santo
Domingo towards the latter end of the forecast period. Average forecast
production over the next ten years includes additional incremental production
from the Fenix project, Kutcho project and the Victor mine in Sudbury. Vale
S.A. has indicated the potential for an additional expansion after the Salobo
III expansion, but Wheaton does not currently include this in its forecast.
Lastly, although Barrick Gold Corp. continues to advance a comprehensive
review of the Pascua Lama project, Wheaton does not include any production
from the project in its estimated average ten-year production guidance.

 

Fourth Quarter and Full Year 2022 Results

Wheaton will release its 2022 fourth quarter and full year results on
Thursday, March 9, 2023, after market close.

 

A conference call will be held on Friday, March 10, 2023, starting at 11:00 am
(Eastern Time) to discuss these results. To participate in the live call
please use one of the following methods:

 

To join the conference call without operator assistance, you may register and
enter your phone number at here (https://bit.ly/3kUMAbH) to receive an instant
automated call back

 

 

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Dial from outside Canada or the US:             1-416-764-8650
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Participants should dial in five to ten minutes before the call.

 

The conference call will be recorded and available until March 17, 2023 at
11:59 pm ET. The webcast will be available for one year. You can listen to an
archive of the call by one of the following methods:

 

Dial toll free from Canada or the US:             1-888 390-0541

Dial from outside Canada or the US:             1-416-764-8677
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Wheaton Precious Metals' quarterly reporting for the remainder of 2023 is
scheduled to be issued, after market close, on the following dates:

 

Q1 2023 - Thursday, May 4, 2023

Q2 2023 - Thursday, August 10, 2023

Q3 2023 - Thursday, November 9, 2023

 

Mr. Wes Carson, P.Eng., Vice President, Mining Operations is a "qualified
person" as such

term is defined under National Instrument 43-101, and has reviewed and
approved the technical information disclosed in this news release.

 

About Wheaton Precious Metals Corp.

Wheaton Precious Metals is the world's premier precious metals streaming
company with the highest-quality portfolio of long-life, low-cost assets. Its
business model offers investors leverage to commodity prices and exploration
upside but with a much lower risk profile than a traditional mining company.
Wheaton delivers amongst the highest cash operating margins in the mining
industry, allowing it to pay a competitive dividend and continue to grow
through accretive acquisitions. The Company is committed to strong ESG
practices and giving back to the communities where Wheaton and its mining
partners operate. As a result, Wheaton has consistently outperformed gold and
silver, as well as other mining investments. Wheaton creates sustainable value
through streaming.

 

 

For further information, please contact:

 

Patrick Drouin

Senior Vice President, Investor Relations

Wheaton Precious Metals Corp.

Tel: 1-844-288-9878

Email: info@wheatonpm.com

Website: www.wheatonpm.com (http://www.wheatonpm.com)

 

 

End Notes

 

 

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This press release contains "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable Canadian
securities legislation concerning the business, operations and financial
performance of Wheaton and, in some instances, the business, mining operations
and performance of Wheaton's precious metals purchase agreement ("PMPA")
counterparties. Forward-looking statements, which are all statements other
than statements of historical fact, include, but are not limited to,
statements with respect to the future price of commodities, the impact of
epidemics (including the COVID-19 virus pandemic), including the potential
heightening of other risks, the estimation of future production from mineral
stream interests owned by Wheaton (the "Mining Operations") (including in the
estimation of production, mill throughput, grades, recoveries and exploration
potential), the estimation of mineral reserves and mineral resources
(including the estimation of reserve conversion rates) and the realization of
such estimations, the commencement, timing and achievement of construction,
expansion or improvement projects by Wheaton's PMPA counterparties at Mining
Operations, the ability of Wheaton's PMPA counterparties to comply with the
terms of a PMPA (including as a result of the business, mining operations and
performance of Wheaton's PMPA counterparties) and the potential impacts of
such on Wheaton, the costs of future production, the estimation of produced
but not yet delivered ounces, any statements as to future dividends, the
ability to fund outstanding commitments and the ability to continue to acquire
accretive PMPAs, future payments by the Company in accordance with PMPAs,
including any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's production
mix, the ability of Wheaton's PMPA counterparties to comply with the terms of
any other obligations under agreements with the Company, the ability to sell
precious metals and cobalt production, confidence in the Company's business
structure, the Company's assessment of taxes payable and the impact of the
Canada Revenue Agency ("CRA") Settlement for years subsequent to 2010,
possible audits for taxation years subsequent to 2015, the Company's intention
to file future tax returns in a manner consistent with the CRA Settlement, and
assessments of the impact and resolution of various legal and tax matters,
including but not limited to outstanding class actions. Generally, these
forward-looking statements can be identified by the use of forward-looking
terminology such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "projects", "intends",
"anticipates" or "does not anticipate", or "believes", "potential", or
variations of such words and phrases or statements that certain actions,
events or results "may", "could", "would", "might" or "will be taken", "occur"
or "be achieved". Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Wheaton to be materially
different from those expressed or implied by such forward-looking statements,
including (without limitation) risks associated with fluctuations in the price
of commodities (including Wheaton's ability to sell its precious metals or
cobalt production at acceptable prices or at all), the Mining Operations
(including fluctuations in the price of the primary or other commodities mined
at such operations, actual results of mining and exploration activities,
environmental, economic and political risks of the jurisdictions in which the
Mining Operations are located, and changes in project parameters as plans
continue to be refined), the absence of control over the Mining Operations and
relying on the accuracy of the public disclosure and other information Wheaton
receives from the Mining Operations, uncertainty in the estimation of
production from Mining Operations, uncertainty in the accuracy of mineral
reserve and mineral resource estimation, the ability of each party to satisfy
their obligations in accordance with the terms of the PMPAs, the estimation of
future production from Mining Operations, Wheaton's interpretation of,
compliance with or application of, tax laws and regulations or accounting
policies and rules being found to be incorrect, any challenge or reassessment
by the CRA of the Company's tax filings being successful and the potential
negative impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement for years subsequent to 2010 (including
whether there will be any material change in the Company's facts or change in
law or jurisprudence), potential implementation of a 15% global minimum tax,
counterparty credit and liquidity, mine operator concentration, indebtedness
and guarantees, hedging, competition, claims and legal proceedings against
Wheaton or the Mining Operations, security over underlying assets,
governmental regulations, international operations of Wheaton and the Mining
Operations, exploration, development, operations, expansions and improvements
at the Mining Operations, environmental regulations and climate change,
Wheaton and the Mining Operations ability to obtain and maintain necessary
licenses, permits, approvals and rulings, Wheaton and the Mining Operations
ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable infrastructure and employees to support the
Mining Operations, inability to replace and expand mineral reserves, including
anticipated timing of the commencement of production by certain Mining
Operations (including increases in production, estimated grades and
recoveries), uncertainties of title and indigenous rights with respect to the
Mining Operations, Wheaton and the Mining Operations ability to obtain
adequate financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial conditions, and
other risks discussed in the section entitled "Description of the Business -
Risk Factors" in Wheaton's Annual Information Form available on SEDAR at
www.sedar.com (http://www.sedar.com) , and in Wheaton's Form 40-F for the year
ended December 31, 2020 and Form 6-K filed March 11, 2021 both on file with
the U.S. Securities and Exchange Commission in Washington, D.C. and available
on EDGAR (the "Disclosure"). Forward-looking statements are based on
assumptions management currently believes to be reasonable, including (without
limitation): that there will be no material adverse change in the market price
of commodities, that the Mining Operations will continue to operate and the
mining projects will be completed and achieve their stated production
estimates, that the mineral reserve and mineral resource estimates from Mining
Operations (including reserve conversion rates) are accurate, that each party
will satisfy their obligations in accordance with the PMPAs, that Wheaton will
continue to be able to fund or obtain funding for outstanding commitments,
that Wheaton will be able to source and obtain accretive PMPAs, that
expectations regarding the resolution of legal and tax matters will be
achieved (including ongoing class action litigation and CRA audits involving
the Company), that Wheaton has properly considered the interpretation and
application of Canadian tax law to its structure and operations, that Wheaton
has filed its tax returns and paid applicable taxes in compliance with
Canadian tax law, that Wheaton's application of the CRA Settlement for years
subsequent to 2010 is accurate (including the Company's assessment that there
will be no material change in the Company's facts or change in law or
jurisprudence for years subsequent to 2010), and such other assumptions and
factors as set out in the Disclosure. There can be no assurance that
forward-looking statements will prove to be accurate and even if events or
results described in the forward-looking statements are realized or
substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that actual
outcomes may vary. The forward-looking statements included herein are for the
purpose of providing readers with information to assist them in understanding
Wheaton's expected financial and operational performance and may not be
appropriate for other purposes. Any forward-looking statement speaks only as
of the date on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except in
accordance with applicable securities laws. Although Wheaton has attempted to
identify important factors that could cause actual results, level of activity,
performance or achievements to differ materially from those contained in
forward‑looking statements, there may be other factors that cause results,
level of activity, performance or achievements not to be as anticipated,
estimated or intended.

 

 1  (#_ednref1) Ounces produced represent the quantity of gold, silver,
palladium and cobalt contained in concentrate or doré prior to smelting or
refining deductions.  Production figures and average payable rates are based
on information provided by the operators of the mining operations to which the
silver, gold, palladium or cobalt interests relate or management estimates in
those situations where other information is not available (specifically, final
2022 production information for Zinkgruvan, Neves-Corvo, and Los Filos is
based on management estimates).  Certain production figures may be updated in
future periods as additional information is received.

 2  (#_ednref2) Gold equivalent ounces for 2022 actual production and sales
are calculated by converting silver, palladium and cobalt to a gold equivalent
by using the following commodity price assumptions, $1,800 per ounce gold, $24
per ounce silver, $2,100 per ounce palladium and $33 per pound cobalt.

 3  (#_ednref3) Five- and ten-year guidance do not include optionality
production from Pascua Lama, Navidad, Cotabambas, Metatas, or additional
expansions at Salobo outside of the project currently in construction. In
addition, five-year guidance also does not include any production from Kutcho
or the Victor project at Sudbury.

 4  (#_ednref4) Gold equivalent forecast production for 2023 and the
longer-term outlook are based on the following updated commodity price
assumptions: $1,850 per ounce gold, $24 per ounce silver, $1,800 per ounce
palladium, $1,100 per ounce of platinum and $18.75 per pound cobalt.

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