REG - Wheaton Precious Met - 2023 Production and Sales Results

Wheaton Precious MetalsAnnouncement

21/02/2024 07:00

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RNS Number : 8981D  Wheaton Precious Metals Corp.  21 February 2024

 
February 21, 2024
Vancouver, British Columbia
 

Wheaton Precious Metals Announces 2023 Production and Sales Results and
Forecasts 40% Growth in the Next Five Years

 

"In 2023, the importance of our diversified portfolio of high-quality,
low-cost assets was underscored by Wheaton's ability to meet its annual
production guidance, well within the projected range for the year, as strong
outperformances by Salobo and Constancia offset headwinds faced by other
assets. Moreover, in 2023, we expanded our portfolio by securing agreements
for eight development assets, further enhancing our production profile and
contributing to our five-year growth profile of 40%," said Randy Smallwood,
President and Chief Executive Officer of Wheaton Precious Metals. "While our
projected 2024 production is consistent with levels attained in 2023, we
anticipate growth in the near-term as several assets are slated to commence
operations by year-end, with the expanded range in our 2024 guidance
accommodating the typical variability associated with development project
ramp-ups.

 

As the premier streaming company with the highest proportion of revenue
stemming from precious metals, we consider Wheaton to be the best investment
vehicle available to gain long term exposure to precious metals.  In
addition, with the strength of our balance sheet combined with the demand for
streaming capital, we believe Wheaton is strategically positioned to further
enhance its industry-leading growth profile."

 

Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") will provide
full production and financial details with the release of its 2023 fourth
quarter and full year results on Thursday, March 14, 2024, after market close.

 

2023 Attributable Production and Sales

 

 Metal                                                          2023                  2023                2023

                                                                Production Guidance   Actual              Actual

                                                                                      Production 1 (,2)   Sales
 Gold Ounces                                                                          374,585             327,336
 Silver Ounces ('000s)                                                                17,220              14,326
 Other Metals (GEOs) (https://www.rnssubmit.com/ns/#_edn2) (2)                        22,194              24,424
      Palladium Ounces                                                                15,800              13,919
      Cobalt pounds ('000s)                                                           673                 1,074
 Gold Equivalent Ounces(2) ("GEOs")                             600,000 to 660,000    620,177             537,608
 2023 GEOs based on:  $1,850 / oz gold, $24 / oz silver, $1,800 / oz
 palladium, $1,100 / oz platinum and $18.75 / lb cobalt

 

 

In 2023, gold equivalent production came within 2% of the mid-point of the
guidance range, primarily as a result of stronger than expected production at
Salobo due to higher throughput as the Salobo III expansion project ramped up,
and higher grades at Constancia from the mining of the high-grade zones of the
Pampacancha deposit. These outperformances were partially offset by lower
production from Peñasquito due to the temporary suspension of the mine
resulting from a labour dispute lasting from June 7, 2023 to October 13, 2023,
the suspension of operations at Minto beginning May 13, 2023, and the halting
of production at Aljustrel beginning September 24, 2023.

 

 

Commodity Price Assumptions

 

 Metal               Previous        Updated

                     2023 Forecast   2024 Forecast
 Gold ($ / oz)       $   1,850       $   2,000
 Silver ($ / oz)     $   24.00       $   23.00
 Palladium ($ / oz)  $   1,800       $   1,000
 Platinum ($ / oz)   $   1,100       $    950
 Cobalt ($ / lb)     $   18.75       $   13.00

 

It is important to note that as gold outperformed all other metals during
2023, the assumed metal prices for 2024 results in lower gold equivalency
calculations(1,3) in 2024 compared to 2023.

 

2024 and Long-Term Production Outlook Using Updated Commodity Price
Assumptions

 

 Metal                      2023              2024                  2028                       2029-2033

                            Actual            Production Guidance   Target                     Average Annual Production

                            Production(1,3)                         Production Guidance(3,4)   Guidance(3,4)
 Gold Ounces                374,585           325,000 to 370,000
 Silver Ounces ('000s)      17,220            18,500 to 20,500
 Other Metals (GEOs 3 )     12,275            12,000 to 15,000
 Gold Equivalent Ounces(3)  584,892           550,000 to 620,000    Over 800,000               Over 850,000
 2024 and long-term GEOs based on $2,000 / oz gold, $23 / oz silver, $1,000 /
 oz palladium, $950 / oz platinum, and $13 / lb cobalt.

 For purposes of comparison, 2023 Actual Production numbers have been adjusted
 to reflect 2024 commodity price assumptions.

 

2024 Production Outlook

 

In 2024, GEO(3) production is forecast to be consistent with levels achieved
in 2023, as expected stronger attributable production from Peñasquito and
Voisey's Bay is forecast to be offset by lower production from Salobo, the
suspension of operations at Minto, and the temporary halting of production at
Aljustrel. Attributable production is forecast to increase at Peñasquito as a
result of uninterrupted operations, and at Voisey's Bay due to the ongoing
transition from the Ovoid pit to the underground mines. Attributable
production is forecast to decrease slightly at Salobo due to lower grades as
per the mine plan, which are expected to partially offset increasing
throughput as the Salobo III expansion project continues toward completion. In
addition, the Company anticipates production from the Blackwater and Platreef
Projects to commence in the fourth quarter of 2024.

 

On May 13, 2023, it was announced that operations at the Minto Mine had been
suspended, and the Yukon Government had assumed care and control of the site.
On September 12, 2023, it was announced that as a result of low zinc prices,
the production of zinc and lead concentrates at the Aljustrel Mine would be
halted from September 24, 2023, until the second quarter of 2025. Combined,
the removal of production from Minto and Aljustrel accounts for a 25,000
GEO(3) reduction in 2024 production guidance.

 

Long-Term Production Outlook

 

Production is forecast to increase by approximately 40% over the next five
years to over 800,000 GEOs(3,4) by 2028, primarily due to growth from
Operating assets including Salobo, Antamina, Peñasquito, Voisey's Bay and
Marmato; Development projects which are in-construction and/or permitted
including Platreef, Blackwater, Goose, Mineral Park, Fenix and Santo Domingo;
and Pre-development projects including Curipamba, Marathon and Copper World,
for which production is anticipated towards the latter end of the five-year
forecast period.

 

From 2029 to 2033, attributable production is forecast to average over 850,000
GEOs(3,4) in the five-year period and incorporates additional incremental
production from pre-development assets including the Cangrejos, Kudz ze Kayah,
Curraghinalt, Victor, Toroparu and Kutcho projects, in addition to the Brewery
Creek, Black Pine and Mt. Todd royalties.

 

Not included in Wheaton's long-term forecast and instead classified as
'optionality', includes potential future production from Pascua Lama, Navidad,
Cotabambas, Metates and additional expansions at Salobo outside of the Salobo
III mine expansion project.

 

Fourth Quarter and Full Year 2023 Results

Wheaton will release its 2023 fourth quarter and full year results on
Thursday, March 14, 2024, after market close.  A conference call will be held
on Friday, March 15, 2024, starting at 8:00am PT (11:00 am ET) to discuss
these results. To participate in the live call please use one of the following
methods:

 

Dial toll free from Canada or the US:             1-888 664-6383

Dial from outside Canada or the US:             1-416-764-8650
Pass
code:
768302#

Live audio
webcast:
Webcast (https://app.webinar.net/m7plYyeYgrO)
(https://app.webinar.net/m7plYyeYgrO) Link
(https://app.webinar.net/m7plYyeYgrO)

 

Participants should dial in five to ten minutes before the call.

 

The conference call will be recorded and available until March 22, 2024 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
Pass
code:
            768302#

Archived audio
webcast:                                Webcast
(https://app.webinar.net/m7plYyeYgrO) (https://app.webinar.net/m7plYyeYgrO)
Link (https://app.webinar.net/m7plYyeYgrO)

 

Wheaton Precious Metals' quarterly reporting for the remainder of 2024 is
scheduled to be issued, after market close, on the following dates:

 

Q1 2024 - Thursday, May 9, 2024

Q2 2024 - Thursday, August 8, 2024

Q3 2024 - Thursday, November 7, 2024

 

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:

 

Investor Contact

Emma Murray

Vice President, Investor Relations

Tel: 1-844-288-9878

Email: info@wheatonpm.com (mailto:info@wheatonpm.com)

 

Media Contact

Simona Antolak

Vice President, Communications & Corporate Affairs

Tel: 604-639-9870

Email: simona.antolak@wheatonpm.com (mailto:simona.antolak@wheatonpm.com)

 

 

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 metal purchase agreement/royalty
agreement ("PMPAs") 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
estimation of future production from mineral stream interests and mineral
royalty interests currently owned by the Company (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 the "Mining Operations, the payment of upfront cash
consideration to counterparties under PMPAs, the satisfaction of each party's
obligations in accordance with PMPAs and royalty arrangements and the receipt
by the Company of precious metals and cobalt production in respect of the
applicable Mining Operations under PMPAs or other payments under royalty
arrangements, 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, future payments by the Company in accordance with PMPAs, the
costs of future production, the estimation of produced but not yet delivered
ounces, the impact of epidemics, including the potential heightening of other
risks, future sales of common shares under the ATM program, continued listing
of the Company's common shares, any statements as to future dividends, the
ability to fund outstanding commitments and the ability to continue to acquire
accretive 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 CRA Settlement, possible domestic audits for taxation years
subsequent to 2016 and international audits, the Company's assessment of the
impact of any tax reassessments, the Company's intention to file future tax
returns in a manner consistent with the CRA Settlement, assessments of the
impact and resolution of various legal and tax matters, including but not
limited to audits, and the Company's climate change and environmental
commitments. 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 but not limited to risks related to the
satisfaction of each party's obligations in accordance with the terms of the
Company's PMPAs or royalty arrangements, 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), risks related to
the Mining Operations (including fluctuations in the price of the primary or
other commodities mined at such operations, regulatory, political and other
risks of the jurisdictions in which the Mining Operations are located, actual
results of mining, risks associated with the exploration, development,
operating, expansion and improvement of the Mining Operations, environmental
and economic risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the absence of control over the Mining
Operations and having to rely 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, risks of
significant impacts on Wheaton or the Mining Operations as a result of an
epidemic, 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
(including whether there will be any material change in the Company's facts or
change in law or jurisprudence), potential amendments to Canada's transfer
pricing rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6, 2023,  potential
implementation of a 15% global minimum tax, including the draft legislation
issued for consultation by the Canadian Federal Government on August 4, 2023
that would apply to the income of the Company's non-Canadian subsidiaries, 15%
global minimum tax applicable from 1 January, 2025 under legislation enacted
December 22, 2023 in The Grand Duchy of Luxembourg to the income of the
Company's non-Canadian subsidiaries if the Canadian Federal Government does
not implement a 15% global minimum tax applicable to income of the Company's
non-Canadian subsidiaries 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, 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 supplies,
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, environmental, social
and governance matters, Wheaton and the Mining Operations ability to obtain
adequate financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial conditions,
Wheaton's acquisition strategy 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.sedarplus.ca
(http://www.sedarplus.ca) and Wheaton's Form 40-F for the year ended December
31, 2022 on file with the U.S. Securities and Exchange Commission 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 in accordance with public statements and
achieve their stated production estimates, that the mineral reserves 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 neither Wheaton nor the Mining
Operations will suffer significant impacts as a result of an epidemic, that
any outbreak or threat of an outbreak of a virus or other contagions or
epidemic disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any prolonged
closure of the Mining Operations or having other material adverse effects on
the Company and counterparties to its PMPAs, that the trading of the Company's
common shares will not be adversely affected by the differences in liquidity,
settlement and clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the Company's
common shares will not be suspended, and that the net proceeds of sales of
common shares, if any, will be used as anticipated, that expectations
regarding the resolution of legal and tax matters will be achieved (including
ongoing CRA audits involving the Company), that Wheaton has properly
considered the interpretation and application of Canadian tax laws 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 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), 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.

 

 

End Notes

 1  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
2023 production information for Sudbury, 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  Gold equivalent ounces for 2023 actual production and sales are calculated
by converting silver, palladium and cobalt to a gold equivalent by using the
following commodity price assumptions: $1,850 per ounce gold, $24 per ounce
silver, $1,800 per ounce palladium, $1,100 per ounce platinum and $18.75 per
pound cobalt.

 3  Gold equivalent forecast production for 2024 and the longer-term outlook
are based on the following updated commodity price assumptions: $2,000 per
ounce gold, $23 per ounce silver, $1,000 per ounce palladium, $950 per ounce
of platinum and $13.00 per pound cobalt.

(4) Historically, Wheaton has provided 5 and 10-year averages for its
long-term guidance, however the company has elected to introduce a 5-year
target (2028), in addition to an annual average for years 6 through 10 (i.e.
2029-2033), to provide increased granularity and further transparency of our
expected growth profile.

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