Wheaton Precious Metals Announces Record Annual GOLD Production and Sales Volumes; Exceeds 2019 Production Guidance and Provides 2020 and 5-YEAR Guidance
February 20, 2020 TSX: WPM
Vancouver, British Columbia NYSE: WPM
WHEATON PRECIOUS METALS ANNOUNCES RECORD ANNUAL GOLD
PRODUCTION AND SALES VOLUMES; EXCEEDS 2019 PRODUCTION
GUIDANCE AND PROVIDES 2020 AND 5-YEAR GUIDANCE
“Our portfolio once again delivered a strong performance in 2019 with production significantly
exceeding our original guidance for the eighth consecutive year. In addition, annual gold
production and sales volumes reached record levels,” said Randy Smallwood, Wheaton’s
President and Chief Executive Officer. “The strength of our diversified portfolio was evident
as exceptional results at Salobo more than offset deferrals in production at Peñasquito in
2019. We look forward to continued steady growth over the next five years from the highest-
quality portfolio of long-life, low-cost assets in the streaming space.”
Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) will provide full production
and financial details with the release of its 201 9 fourth quarter and full year results on
Wednesday, March 11, 2020.
2019 Attributable Production and Sales
Metal
2019
Forecast
Production
2019
Actual
Production1
2019
Actual
Sales
Gold Ounces 390,000 406,604 389,086
Silver Ounces (‘000s) 21,000 22,544 17,703
Palladium Ounces 22,000 21,993 20,681
Gold Equivalent Ounces2 based on:
$1,300 / oz gold, $16 / oz silver, $1,350 / oz palladium 690,000 706,900 628,447
In 201 9, production exceeded guidance primarily as a result of stronger than expected
production from Salobo partially offset by unexpected, weaker production from Peñasquito
due to a temporary shutdown in the year caused by an illegal blockade.
2020 and Long-Term Production Forecast
Metal 2020
Forecast1
Annual average
(2020-2024)
Gold Ounces 390,000 to 410,000
Silver Ounces (‘000s) 22,000 to 23,500
Palladium Ounces 23,000 to 24,500
Gold Equivalent Ounces3 based on:
$1,500 / oz gold, $18 / oz silver, $2,000 / oz palladium,
$16 / lb cobalt
685,000 to 725,000 750,000
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In 2020, gold production is forecast to remain strong primarily driven by Salobo and San
Dimas. Silver production in 2020 should be stable as growth from Peñasquito is expected to
be partially offset by slight decreases at Antamina and Constancia due to mine planning. At
Constancia, Hudbay Minerals Inc. (“Hudbay”) announced that it has secured the surface
rights for the Pampacancha deposit and expects to begin mining the satellite deposit in late
in 20 20; however, Wheaton’s forecast attributable production in 2020 currently does not
include any contribution from the Pampacancha deposit 4. Palladium production is expected
to increase in 2020 as the Blitz project at the Stillwater mine continues to ramp up.
Average production over the next five years is expected to increase primarily due to continued
production growth from Peñasquito, Constancia and Stillwater as well as the commencement
of the Voisey’s Bay stream in 2021. At Peñasquito, grades are expected to increase and the
addition of the pyrite leach plant is anticipated to improve recoveries . At Constancia,
anticipated delay payments and production from the Pampacancha deposit is included in
Wheaton’s five year production average. Palladium and gold production from Stillwa ter is
expected to increase with the continued ramp up of the Blitz project which is expected to
reach full capacity in 2021. In addition, effective January 1, 2021, Wheaton will be entitled to
receive from Vale an amount of cobalt equal to 42.4% of the Vo isey's Bay mine cobalt
production. 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. And lastly, Wheaton
does not include any production from Barrick Gold Corp.’s Pascua-Lama project or Hudbay’s
Rosemont project in its estimated average five-year production guidance.
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 bus iness 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: [email protected]
Website: www.wheatonpm.com
End Notes
1 Ounces produced represent the quantity of silver, gold and palladium contained in conce ntrate 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.
Certain production figures may be updated in future periods as additional information is received.
2 Gold equivalent ounces for 2019 actual production and sales are calculated by converting silver and
palladium to a gold equivalent by using the following commodity price assumptions , which were
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representative of spot prices at the time guidance was originally set in February 2019: $1,300 / ounce
gold, $16 / ounce silver, $1,350 / ounce palladium, and $21 / pound of cobalt.
3 Gold equivalent forecast production for 2020 and the five-year average are based on the following
updated commodity price assumptions: $1, 500 / ounce gold, $1 8 / ounce silver, $ 2,000 / ounce
palladium, and $16 / pound of cobalt.
4 As per Wheaton’s precious metals purchase agreement with Hudbay, Wheaton is entitled to a delay
payment payable in gold ounces fro m Hudbay as a result of the delay in mining the Pampacancha
zone. The gold ounces delivered to Wheaton are included in the Company’s production guidance.
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 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
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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, indebtedness and guarantees, mine operator concentration, 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, 2018 and Form
6-K filed March 20, 2019 both on file with the U.S. Securities and Exchange Commission in
Washington, D.C. (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.