Wheaton Precious Metals Exceeds 2020 Production Guidance Midpoint and Provides 2021 and Long-Term Outlook
February 10, 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 , o ur
portfolio demonstrated its resiliency with production coming in at the high er 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™ Corp. (“Wheaton” or the “Company”) will provide full production
and financial details with the release of its 20 20 fourth quarter and full year results on
Thursday, March 11, 2021.
2020 Attributable Production and Sales
Metal
2020
Forecast
Production
2020
Actual
Production1
2020
Actual
Sales
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 Ounces2 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
Forecast1
5-year Annual
Average
(2021-2025)3
10-year Annual
Average
(2021-2030)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 Ounces4 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
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In 20 21, 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. Palladium 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
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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 m uch 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, Wheato n 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: [email protected]
Website: www.wheatonpm.com
End Notes
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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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 stateme nts 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 Operati ons, 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 producti on 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 Ope rations, 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 p otential 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
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assets, governmental regulations, international operati ons 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 l icenses, 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, 20 20 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 r eturns 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 c autioned 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.