Wheaton Precious Metals Enters Into Agreement To Terminate Its Existing Silver Stream On The Yauliyacu Mine
August 18, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Wheaton Precious Metals Enters Into Agreement To Terminate Its Existing
Silver Stream On The Yauliyacu Mine
Wheaton Precious Metals™ Corp. (“Wheaton” or the “Company”) is announcing that it has
entered into a definitive agreement with certain subsidiaries of Glencore plc (“Glencore”)
(LSE: GLEN) to terminate its silver stream on the Yauliyacu Mine in Peru for a cash payment
of US$150 million, less the aggregate value of any deliveries to Wheaton of silver produced
in 2022 prior to closing. Wheaton has agreed to terminate the stream in order to help facilitate
the sale by Glencore of the Yauliyacu Mine.
“Yauliyacu has been part of Wheaton’s portfolio since 2006 and has been integral to the
history of our company. Combined with San Dimas and Zinkgruvan, Yauliyacu gave us the
scale to grow the streaming business and become the company we are today,” said Randy
Smallwood, Wheaton’s President and Chief Executive Officer. “Consistent with a core
principle of working with our partners, Wheaton has agreed to terminate the stream, adding
even more financial capacity to explore new opportunities that we believe are in the best
interests of our shareholders. Glencore was one of the first mining companies to recognize
the value that is created for all stakeholders through the streaming model, and we thank them
for their stewardship of this project and look forward to maintaining our strong partnership on
existing and potential future developments.”
Wheaton acquired the silver stream on the Yauliyacu Mine in 2006 for an upfront consideration
of US$285 million and has subsequently generated over US$485 million in cash flow from the
stream. Combined with the termination payment, Wheaton will have generated an absolute
return of over 220% of the original investment.
The closing of the transaction is contingent on Glencore divesting the Yauliyacu mine by
December 31, 20221 and is subject to other customary conditions.
As a result of the transaction, Wheaton now expects average annual production for the five-
year period ending December 31, 2026, to be approximately 800,000 gold equivalent ounces2
(“GEOs”) (from 820,000 previously) and for the ten-year period ending December 31, 2031,
to be approximately 850,000 GEOs (from 870,000 previously). Production in 2022 is expected
to remain between 640,000 and 680,000 GEOs.
For further information, please contact:
Patrick Drouin
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: [email protected]
Website: www.wheatonpm.com
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End Notes
1 Glencore has the option, but not the obligation, to terminate the silver stream even if it does not
divest Yauliyacu by December 31, 2022.
2 Commodity price assumptions for the gold equivalent production and sales in 2022 are $1,800 /
ounce gold, $24 / ounce silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other metal
includes palladium and cobalt.
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, the termination of the Yauliyacu silver stream for $150 million, the
value of silver produced and delivered after January 1, 2022 and the satisfaction of each party's
obligations in accordance with definitive documentation relating to the termination of the
Yauliyacu silver stream. 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 any specific risks relating to th e
termination of the Yauliyacu silver stream and the satisfaction of each party's obligations in
accordance with the terms of the definitive documentation relating to the termination of the Keno
Hill silver stream, 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, 2021 and Form 6 -K filed March
10, 2022 both available on EDGAR at www.sec.gov, as well as the risks set out in Wheaton’s
management’s discussions and analysis for the period ended December 31, 2021 available on
SEDAR and EDGAR (together, the “Disclosure ”). Forward -looking statements are based on
assumptions management currently believes to be reasonable, including (without limitation): the
receipt of $150 million from Glencore, the estimated value of silver to be produced and delivered
after January 1, 2022 and the satisfaction of each party's obligations in accordance with the terms
of the definitive documentation relating to the termination of the Yauliyacu silver stream, 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 di ffer 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.