REG - Wheaton Precious Met - 2024 Production and Guidance

Wheaton Precious MetalsAnnouncement

19/02/2025 07:15

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RNS Number : 6693X  Wheaton Precious Metals Corp.  19 February 2025

 

 

February 18, 2025
Vancouver, British Columbia
 

Wheaton Precious Metals Exceeds 2024 Production Guidance and

 Provides 2025 and Long-Term Outlook,

Projecting 40% Growth in the Next Five Years

 

Wheaton Precious Metals™ Corp. ("Wheaton" or the "Company") is pleased to
report 2024 actual production of over 633,000 gold equivalent ounces(2)
("GEOs"), exceeding the upper end of the 2024 production guidance range of
620,000 GEOs(2). The Company also provides 2025 production guidance of 600,000
to 670,000 GEOs(3) and forecasts growth of approximately 40% to 870,000
GEOs(3) by 2029. Wheaton will provide full production and financial details
with the release of its 2024 fourth quarter and full year results on Thursday,
March 13, 2025, after market close.

 

"Wheaton's diversified portfolio of high-quality, low-cost assets had an
exceptional year in 2024, exceeding the top-end of our annual production
guidance range, driven by strong performances, particularly from Salobo, which
achieved record quarterly production in the fourth quarter. Moreover, we
continued our corporate development momentum with investments into four
assets, further enhancing and contributing to our five-year growth profile of
approximately 40%," said Randy Smallwood, President and Chief Executive
Officer of Wheaton Precious Metals. "The past year ultimately set a strong
foundation for our sector leading growth profile, which we believe will propel
Wheaton to a level of precious metals production unprecedented in the
streaming industry. As the leading streaming company with the largest share of
revenue derived from precious metals, we believe Wheaton offers an optimal
opportunity for long-term exposure in this sector. With a robust balance sheet
and growing demand for streaming capital, we are confident that Wheaton is
strategically positioned to continue driving its industry-leading growth
trajectory."

 

2024 Attributable Production and Sales Using 2024 Commodity Price Assumptions

 

 Metal                           2024                  2024            2024

                                 Production Guidance   Actual          Actual

                                                       Production 1    Sales
 Gold Ounces                     325,000 to 370,000    379,742         332,701
 Silver Ounces ('000s)           18,500 to 20,500      20,657          16,072
 Other Metals (GEOs 2 )          12,000 to 15,000      16,196          14,940
      Palladium Ounces                                 15,632          17,270
      Cobalt pounds ('000s)                            1,289           970
 Gold Equivalent Ounces(2)       550,000 to 620,000    633,481         532,468
 2024 GEOs based on:  $2,000 / oz gold, $23 / oz silver, $1,000 / oz
 palladium, $950 / oz platinum and $13.00 / lb cobalt

 

 

In 2024, gold equivalent production exceeded the upper limits of the guidance
range, primarily resulting from stronger than expected production at Salobo
due to higher gold grades and recoveries, and higher grades at Constancia from
the mining of the Pampacancha deposit. These outperformances were partially
offset by lower-than-expected production from San Dimas and Zinkgruvan, in
both instances due to lower grades.

 

As at December 31, 2024, approximately 163,850 GEO(2)'s were in produced but
not yet delivered ("PBND") representing approximately three months of payable
production. This build in PBND is an increase from the preceding four quarters
and at the upper end of our guided range of two to three months, due to a
significant increase in quarter-over-quarter production driven by record
quarterly production at Salobo coupled with relative differences in timing of
sales.

 

Commodity Price Assumptions

 

 Metal               Previous        Updated

                     2024 Forecast   2025 Forecast
 Gold ($ / oz)       $   2,000       $   2,600
 Silver ($ / oz)     $   23.00       $   30.00
 Palladium ($ / oz)  $   1,000       $   950
 Platinum ($ / oz)   $    950        $   950
 Cobalt ($ / lb)     $   13.00       $   13.50

 

 

2025 and Long-Term Production Outlook Using 2025 Commodity Price Assumptions

 

 Metal                      2024            2025                  2029                  2030-2034

                            Actual          Production Guidance   Target                Average Annual Production

                            Production(1)                         Production Guidance   Guidance
 Gold Ounces                379,742         350,000 to 390,000
 Silver Ounces ('000s)      20,657          20,500 to 22,500
 Other Metals (GEOs 3 )     12,406          12,500 to 13,500
 Gold Equivalent Ounces(3)  630,485         600,000 to 670,000    870,000               Over 950,000
 2025 and long-term GEOs based on $2,600 / oz gold, $30 / oz silver, $950 / oz
 palladium, $950 / oz platinum, and $13.50 / lb cobalt.

 For purposes of comparison, 2024 actual production numbers have been adjusted
 to reflect 2025 commodity price assumptions.

 

 

2025 Production Outlook

 

The midpoint of the 2024 guidance range compared to the midpoint of the 2025
guidance range suggests year-over-year production growth of approximately 10%,
in alignment with the Company's previously stated long-term growth forecast.
The Company anticipates that 2025 GEO(3) production will increase from levels
achieved in 2024. This forecast growth is driven by stronger attributable
production from Antamina, the start-up of several development projects, and a
stable forecast for Salobo production. This increase is expected to be largely
offset by lower production from Peñasquito and Constancia.

 

Attributable production is forecast to increase at Antamina in 2025 due to
expected higher silver grades, as a result of a higher ratio of copper-zinc
ore versus copper-only ore being mined in 2025. Wheaton's 2025 forecast also
includes inaugural production from four projects currently in development;
Blackwater, Goose, Mineral Park and Platreef, all of which are expected to
commence in 2025. In addition, the Aljustrel Mine is anticipated to re-start
production in the third quarter of 2025, following the announcement made on
September 12, 2023, that as a result of low zinc prices, the production of
zinc and lead concentrates would be temporarily halted from September 24, 2023
onward. Increased production from the forementioned assets is anticipated to
be offset by lower production at Peñasquito, as mining transitions from the
Chile Colorado to the main Peñasco pit, which contains lower relative silver
grades. In addition, lower production levels are anticipated at Constancia,
predominantly due to additional gold benches being mined in late 2024 that
were brought forward from the 2025 plan, coupled with the expectation that
total mill ore feed from Pampacancha will be approximately 25% in 2025, lower
than the typical one-third in prior years as Pampacancha approaches depletion.
After a record-breaking quarter to end 2024, production levels at Salobo are
expected to remain consistent, with higher throughput levels attributable to
the Salobo III expansion project anticipated to be offset by lower gold
grades.

 

Long-Term Production Outlook

 

Production is forecast to increase by approximately 40% over the next five
years to 870,000 GEOs(3) by 2029, due to growth from multiple Operating assets
including Antamina, Aljustrel and Marmato; Development assets that are in
construction, including the Blackwater, Mineral Park, Goose, Platreef, Fenix,
Kurmuk, and Koné projects; and Pre-development assets including the El
Domo(4) and Copper World projects.

 

From 2030 to 2034, attributable production is forecast to average over 950,000
GEOs(3) annually and incorporates additional incremental production from
Pre-development assets including the Santo Domingo, Cangrejos, Kudz ze Kayah,
Marathon and Kutcho projects, in addition to the Mt. Todd, Black Pine and
DeLamar royalties.

 

Not included in Wheaton's long-term forecast and instead classified as
'optionality', is potential future production from nine other assets including
Pascua-Lama and Navidad, in addition to expansions at Salobo outside of the
Salobo III mine expansion project.

 

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.

 

Fourth Quarter and Full Year 2024 Results

Wheaton will release its 2024 fourth quarter and full year results on
Thursday, March 13, 2025, after market close. A conference call will be held
on Friday, March 14, 2025, 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:             1-888-510-2154

Dial from outside Canada or the US:             1-437-900-0527
Pass
code:
69732#

Live audio
webcast:
Webcast (https://app.webinar.net/VYkl8wybMZn)
(https://app.webinar.net/VYkl8wybMZn) Link
(https://app.webinar.net/VYkl8wybMZn)

 

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

 

The conference call will be recorded and available until March 20, 2025 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:             1-888-660-6345

Dial from outside Canada or the US:             1-646-517-4150
Pass
code:
69732#

Archived audio
webcast:                                Webcast
(https://app.webinar.net/VYkl8wybMZn) (https://app.webinar.net/VYkl8wybMZn)
Link (https://app.webinar.net/VYkl8wybMZn)

 

Wheaton Precious Metals' quarterly reporting for the remainder of 2025 is
scheduled to be issued, after market close, on the following dates:

 

Q1 2025 - Thursday, May 8, 2025

Q2 2025 - Thursday, August 7, 2025

Q3 2025 - Thursday, November 6, 2025

 

 

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. Wheaton's shares are listed on the Toronto Stock Exchange,
New York Stock Exchange and London Stock Exchange under the symbol WPM. Learn
more about Wheaton Precious Metals at www.wheatonpm.com or follow us on social
media.

 

For further information:

 

Investor Contact

Emma Murray

Vice President, Investor Relations

Tel: 1-844-288-9878

Email: info@wheatonpm.com (mailto:info@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 estimation of future production from the 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 Mining
Operations;

·      the payment of upfront cash consideration to counterparties under
PMPAs, the satisfaction of each party's obligations in accordance with PMPAs
and the receipt by the Company of precious metals and cobalt production or
other payments in respect of the applicable Mining Operations under PMPAs;

·      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,
including any acceleration of payments;

·      the costs of future production;

·      the estimation of produced but not yet delivered ounces;

·      the future sales of Common Shares under, the amount of net
proceeds from, and the use of the net proceeds from, the at-the-market equity
program;

·      continued listing of the Common Shares on the LSE, NYSE and TSX;

·      any statements as to future dividends;

·      the ability to fund outstanding commitments and the ability to
continue to acquire accretive PMPAs;

·      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, including taxes
payable under the GMT, and the impact of the CRA Settlement, and the Company's
ability to pay its taxes;

·      possible CRA domestic audits for taxation years subsequent to
2017 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;

·      the Company's climate change and environmental commitments; and

·      assessments of the impact and resolution of various legal and
tax matters, including but not limited to audits

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 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
exploration, development, operating, expansion and improvement at the Mining
Operations, environmental and economic risks of the Mining Operations, and
changes in project parameters as Mining Operations plans continue to be
refined);

·      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 owners and operators of the Mining Operations as the basis
for its analyses, forecasts and assessments relating to its own business;

·      risks related to the uncertainty in the accuracy of mineral
reserve and mineral resource estimation;

·      risks related to the satisfaction of each party's obligations in
accordance with the terms of the Company's PMPAs, including the ability of the
companies with which the Company has PMPAs to perform their obligations under
those PMPAs in the event of a material adverse effect on the results of
operations, financial condition, cash flows or business of such companies, any
acceleration of payments, estimated throughput and exploration potential;

·      risks relating to production estimates from Mining Operations,
including anticipated timing of the commencement of production by certain
Mining Operations;

·      Wheaton's interpretation of, or compliance with, or application
of, tax laws and regulations or accounting policies and rules, being found to
be incorrect or the tax impact to the Company's business operations being
materially different than currently contemplated, or the ability of the
Company to pay such taxes as and when due;

·      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;

·      risks in 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);

·      risks related to any 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;

·      risks relating to Wheaton's interpretation of, compliance with,
or application of the GMT, including Canada's GMTA and the legislation enacted
in Luxembourg, that applies to the income of the Company's subsidiaries for
fiscal years beginning on or after December 31, 2023;

·      counterparty credit and liquidity risks;

·      mine operator and counterparty concentration risks;

·      indebtedness and guarantees risks;

·      hedging risk;

·      competition in the streaming industry risk;

·      risks relating to security over underlying assets;

·      risks relating to third-party PMPAs;

·      risks relating to revenue from royalty interests;

·      risks related to Wheaton's acquisition strategy;

·      risks relating to third-party rights under PMPAs;

·      risks relating to future financings and security issuances;

·      risks relating to unknown defects and impairments;

·      risks related to governmental regulations;

·      risks related to international operations of Wheaton and the
Mining Operations;

·      risks relating to exploration, development, operating, expansions
and improvements at the Mining Operations;

·      risks related to environmental regulations;

·      the ability of Wheaton and the Mining Operations to obtain and
maintain necessary licenses, permits, approvals and rulings;

·      the ability of Wheaton and the Mining Operations to comply with
applicable laws, regulations and permitting requirements;

·      lack of suitable supplies, infrastructure and employees to
support the Mining Operations;

·      risks related to underinsured 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 related to title and indigenous rights with respect
to the mineral properties of the Mining Operations;

·      the ability of Wheaton and the Mining Operations to obtain
adequate financing;

·      the ability of the Mining Operations to complete permitting,
construction, development and expansion;

·      challenges related to global financial conditions;

·      risks associated with environmental, social and governance
matters;

·      risks related to fluctuations in commodity prices of metals
produced from the Mining Operations other than precious metals or cobalt;

·      risks related to claims and legal proceedings against Wheaton or
the Mining Operations;

·      risks related to the market price of the Common Shares of
Wheaton;

·      the ability of Wheaton and the Mining Operations to retain key
management employees or procure the services of skilled and experienced
personnel;

·      risks related to interest rates;

·      risks related to the declaration, timing and payment of
dividends;

·      risks related to access to confidential information regarding
Mining Operations;

·      risks associated with multiple listings of the Common Shares on
the LSE, NYSE and TSX;

·      risks associated with a possible suspension of trading of Common
Shares;

·      risks associated with the sale of Common Shares under the
at-the-market equity program, including the amount of any net proceeds from
such offering of Common Shares and the use of any such proceeds;

·      equity price risks related to Wheaton's holding of long‑term
investments in other companies;

·      risks relating to activist shareholders;

·      risks relating to reputational damage;

·      risks relating to expression of views by industry analysts;

·      risks related to the impacts of climate change and the transition
to a low-carbon economy;

·      risks associated with the ability to achieve climate change and
environmental commitments at Wheaton and at the Mining Operations;

·      risks related to ensuring the security and safety of information
systems, including cyber security risks;

·      risks relating to generative artificial intelligence;

·      risks relating to compliance with anti-corruption and
anti-bribery laws;

·      risks relating to corporate governance and public disclosure
compliance;

·      risks of significant impacts on Wheaton or the Mining Operations
as a result of an epidemic or pandemic;

·      risks related to the adequacy of internal control over financial
reporting; 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, 2023 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 public disclosure and other information Wheaton receives
from the owners and operators of the Mining Operations is accurate and
complete;

·      that the production estimates from Mining Operations 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 the terms and conditions of a PMPA are sufficient to recover
liabilities owed to the Company;

·      that Wheaton has fully considered the value and impact of any
third-party interests in PMPAs;

·      that expectations regarding the resolution of legal and tax
matters will be achieved (including CRA audits involving the Company);

·      that Wheaton has properly considered the application of Canadian
tax laws to its structure and operations and that Wheaton will be able to pay
taxes when due;

·      that Wheaton has filed its tax returns and paid applicable taxes
in compliance with Canadian tax laws;

·      that Wheaton's application of the CRA Settlement is accurate
(including the Company's assessment that there has been no material change in
the Company's facts or change in law or jurisprudence);

·      that Wheaton's assessment of the tax exposure and impact on the
Company and its subsidiaries of the implementation of a 15% global minimum tax
is accurate;

·      that any sale of Common Shares under the at-the-market equity
program will not have a significant impact on the market price of the Common
Shares and that the net proceeds of sales of Common Shares, if any, will be
used as anticipated;

·      that the trading of the 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;

·      the estimate of the recoverable amount for any PMPA with an
indicator of impairment;

·      that neither Wheaton nor the Mining Operations will suffer
significant impacts as a result of an epidemic or pandemic; 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  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
2024 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 2024 actual production, sales and PBND are
calculated by converting silver, palladium and cobalt to a gold equivalent by
using the following 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.

 3  Gold equivalent forecast production for 2025 and the longer-term outlook
are based on the following updated commodity price assumptions: $2,600 per
ounce gold, $30 per ounce silver, $950 per ounce palladium, $950 per ounce of
platinum and $13.50 per pound cobalt. For purposes of comparison, 2024 actual
production numbers have been adjusted to reflect 2025 commodity price
assumptions.

(4) El Domo references the Silvercorp owned El Domo - Curipamba Project,
previously referred to as 'Curipamba'.

 

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