TIDMWPM
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(TM) 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 Sales
[1]
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]
) 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:
$1,800 / oz gold, $24 /
oz silver, $2,100 / oz palladium
and $33 / lb cobalt 640,000 to 680,000 638,048 617,450
------------------- ------------ --------
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 10-year Annual
Forecast (1) Average Average
(2023-2027) (2023-2032)
[3] 3
Gold Ounces 320,000 to 350,000
-------------------
Silver Ounces ('000s) 20,000 to 22,000
-------------------
Other Metals (Palladium
& Cobalt) (GEOs [4]
) 22,000 to 25,000
------------------- -------------- ---------------
Gold Equivalent Ounces
(4) based on: $1,850
/ oz gold, $24 / oz
silver, $1,800 / oz
palladium, $1,100 /
oz platinum and $18.75
/ lb cobalt 600,000 to 660,000 810,000 850,000
------------------- -------------- ---------------
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 to receive an instant
automated call back
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: 94667668
Live audio webcast: Webcast Link
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
Pass code: 667668 #
Archived audio webcast: Webcast Link
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
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 , 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] 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] 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] 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] 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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END
MSCFIFERFIIFFIV
(END) Dow Jones Newswires
February 22, 2023 02:00 ET (07:00 GMT)
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