TIDMWPM
RNS Number : 6847O
Wheaton Precious Metals Corp.
11 February 2021
February 11, 2021 TSX: WPM
Vancouver, British Columbia NYSE: WPM
LSE: WPM
WHEATON PRECIOUS METALS exceeds 2020 production guidance
midpoint and provides 2021 and Long-term outlook
"The benefits and value of a high-quality portfolio of low-cost
assets have never been more apparent than in 2020. Despite the
numerous challenges posed by the pandemic, our portfolio
demonstrated its resiliency with production coming in at the higher
end of our guidance range yet again," said Randy Smallwood,
Wheaton's President and Chief Executive Officer. " We look forward
to continued organic growth from our existing sustainable asset
base over the next ten years and, given the strong tenure of our
reserve and resource base, are introducing ten-year production
guidance for the first time."
Wheaton Precious Metals(TM) Corp. ("Wheaton" or the "Company")
will provide full production and financial details with the release
of its 2020 fourth quarter and full year results on Thursday, March
11, 2021.
2020 Attributable Production and Sales
Metal 2020 2020 2020
Forecast Actual Actual
Production Production Sales
[1]
Gold Ounces 365,000 to 385,000 368,044 369,553
------------------- ------------ --------
Silver Ounces ('000s) 21,500 to 22,500 22,915 19,232
------------------- ------------ --------
Palladium Ounces 23,000 to 24,500 22,187 20,051
------------------- ------------ --------
Gold Equivalent Ounces
[2] based on:
$1,500 / oz gold, $18 /
oz silver, $2,000 / oz palladium 655,000 to 685,000 672,619 627,063
------------------- ------------ --------
In 2020, gold equivalent production exceeded the midpoint of
guidance primarily as a result of stronger than expected production
from Peñasquito and Antamina, partially offset by weaker production
from Salobo, Constancia and Stillwater. All operations were
temporarily impacted by COVID-19 to some extent, with some more
than others.
2021 and Long-Term Production Outlook
Metal 2021 5-year Annual 10-year Annual
Forecast (1) Average Average
(2021-2025) (2021-2030)
[3] 3
Gold Ounces 370,000 to 400,000
-------------------
Silver Ounces ('000s) 22,500 to 24,000
-------------------
Other Metals (Palladium
& Cobalt) (GEOs) 40,000 to 45,000
------------------- -------------- ---------------
Gold Equivalent Ounces
[4] based on: $1,800 /
oz gold, $25 / oz silver,
$2,300 / oz palladium,
$17.75 / lb cobalt 720,000 to 780,000 810,000 830,000
------------------- -------------- ---------------
In 2021, gold production is forecast to increase, mainly driven
by growth at Salobo, San Dimas and Constancia. Silver production is
forecast to increase as additional ounces from Cozamin and Keno
Hill are expected to be partially offset by slight decreases at
Peñasquito due to expected mine sequencing. At Constancia, Hudbay
Minerals Inc. ("Hudbay") announced that it has completed the
Consulta Previa process in accordance with Peruvian law and has
been granted the final permit for the development and operation of
the Pampacancha deposit, which is expected to start production in
2021. P alladium production is expected to remain stable in 2021 as
per Sibanye-Stillwater's prior announcement that the Blitz project
at Stillwater is expected to experience a two-year delay due to
COVID-19. Beginning January 1, 2021, Wheaton is eligible to start
receiving cobalt production from Voisey's Bay as per the precious
metals purchase agreement with Vale.
Average production over the next five years is expected to
increase primarily due to continued production growth from Salobo,
Constancia, Peñasquito and Stillwater as well as incremental ounces
from the Marmato, Cozamin and Voisey's Bay streams. At Peñasquito ,
steady production is expected from 2023-2025 following a stripping
campaign of the Chile Colorado pit. At Constancia, production from
the Pampacancha deposit is included in Wheaton's five-year
production average beginning later in 2021. Palladium and gold
production from Stillwater is expected to increase with the
continued ramp up of the Blitz project which is expected to reach
full capacity in 2024. The expansion at the Salobo mine, which will
increase mill throughput capacity by 50%, is also expected to begin
contributing to gold production in 2023. Hudbay's Rosemont project
is not included in Wheaton's five-year guidance but is included in
the ten-year forecast. And 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 2020 Results
Wheaton will release its 2020 fourth quarter and full year
results on Thursday March 11, 2021, after market close.
A conference call will be held on Friday, March 12, 2021
starting at 11:00 am (Eastern Time) 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: 1-888-231-8191
Dial from outside Canada or the US: 1-647-427-7450
Pass code: 3349778
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
19, 2021 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: 1-855-859-2056
Dial from outside Canada or the US: 1-416-849-0833
Pass code: 3349778
Archived audio webcast: Webcast Link
Wheaton Precious Metals' quarterly reporting for the remainder
of 2021 is scheduled to be issued, after market close, on the
following dates:
Q1 2021 - Thursday, May 6, 2021
Q2 2021 - Thursday, August 12, 2021
Q3 2021 - Thursday, November 4, 2021
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. 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
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),
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, 2019 and Form 6-K filed March 11, 2020 both on file
with the U.S. Securities and Exchange Commission in Washington,
D.C. and Wheaton's Management's Discussion and Analysis for the
three months ended March 31, 2020 and nine months ended September
30, 2020, both available on SEDAR at www.sedar.com and Form 6-Ks
filed May 7, 2020 and November 9, 2020, both 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 silver, gold and
palladium 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 or palladium interests relate
or management estimates in those situations where other information
is not available (specifically, final 2020 production information
for Zinkgruvan, Neves-Corvo, and Stratoni is based on management
estimates). Certain production figures may be updated in future
periods as additional information is received.
[2] Gold equivalent ounces for 2020 actual production and sales
are calculated by converting silver and palladium to a gold
equivalent by using the following commodity price assumptions,
$1,500 / ounce gold, $18 / ounce silver, $2,000 / ounce palladium,
and $16 / pound of 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 project currently in
construction. In addition, five-year guidance also does not include
any production from Rosemont, Toroparu, Kutcho, or the Victor
project at Sudbury.
[4] Gold equivalent forecast production for 2021 and the longer
term outlook are based on the following updated commodity price
assumptions: $1,800 / ounce gold, $25 / ounce silver, $2,300 /
ounce palladium, and $17.75 / pound of cobalt.
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