Wheaton Precious Metals Announces Closing of the Cobalt Streaming Agreement from Vale’S Voisey’S BAY MINE
FOR IMMEDIATE RELEASE TSX: WPM
June 28, 2018 NYSE: WPM
WHEATON PRECIOUS METALS ANNOUNCES CLOSING OF
THE COBALT STREAMING AGREEMENT FROM VALE’S VOISEY’S BAY MINE
Vancouver, British Columbia – Wheaton Precious Metals™ Corp. (“Wheaton” or the
“Company”) is pleased to announce that it has completed the acquisition of a Cobalt Stream
from a subsidiary of Vale S.A. ("Vale") (NYSE:VALE) . Under the Cobalt Stream, Wheaton
will be entitled to receive an amount of finished cobalt equal to a fixed percentage of cobalt
production from the Voisey’s Bay mine. Wheaton has paid Vale an upfront cash consideration
of US$390 million and will make ongoing payments of 18% of the Metal Bulletin market price
(“cobalt spot price”) per cobalt pound delivered1. The upfront cash payment was paid by using
amounts drawn from the Company’s US$2 billion revolving credit facility. The closing of this
transaction is in conjunction with V ale completing a separate streaming agreement with
Cobalt 27 Capital Corp. (“Cobalt 27”). Wheaton and Cobalt 27 have provided Vale with an
aggregate of US$690 million in funding for the combined purchase of cobalt equal to 75% of
Voisey's Bay cobalt production effective January 1, 2021.
As of January 1, 2021, Wheaton will be entitled to receive from Vale an amount of cobalt
equal to 42.4% of the Voisey’s Bay mine cobalt production until the delivery of 31 million
pounds of cobalt and an amount of cobalt equal to 21.2% of cobalt production thereafter for
the life of mine. Voisey’s Bay is one of the lowest-cost, highest-margin nickel mines globally,
ranking in the bottom half o f the nickel cost curve 2 and is located in Newfoundland and
Labrador, Canada.
Full details of the transaction can be found in Wheaton’s news release dated June 11, 2018.
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 Note
1) Production payment is set at 18% of cobalt spot prices, increasing to 22% upon the balance of upfront
consideration being reduced to zero.
2) Based on Wood Mackenzie est. of 2nd quarter of 2018 by-product cost curve for nickel mines.
- 2 -
CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS
The information contained herein 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. Forward -looking statements, which are all statements other than statements of
historical fact, include, but are not limited to, statements with respect to:
• the construction timeline, including completion, of the mine expansion, including the underground mines,
at Voisey’s Bay by Vale;
• the commencement and timing of delivery of cobalt by Vale under the Cobalt Stream; and
• the receipt of cobalt by Wheaton of cobalt production in respect of Voisey’s Bay.
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:
• that each party does not satisfy its obligations in accordance with the terms of the Cobalt Stream;
• Vale does not meet the construction timeline, including anticipated completion, of the mine expansion,
including the underground mines, at Voisey’s Bay;
• Vale is unable to commence, or the timing of delivery of cobalt by Vale is delayed or deferred under the
Cobalt Stream or Wheaton is unable to sell its cobalt production delivered under the Cobalt Stream at
acceptable prices or at all; and
• the decrease in demand for cobalt, the decrease in us es for cobalt or the discovery of new supplies of
cobalt, any or all of which could result in a decrease to the price of cobalt or a decrease in the ability to
sell cobalt.
Forward-looking statements are based on assumptions management currently believes to be reasonable,
including but not limited to:
• Vale is able to meet the construction timeline, including anticipated completion, of the mine expansion,
including the underground mines, at Voisey’s Bay;
• Vale is able to commence and meet its timing for delivery of cobalt under the Cobalt Stream and Wheaton
is able to sell cobalt production delivered under the Cobalt Stream at acceptable prices;
• Vale meets its obligations under the development agreement with the Government of Newfoundland and
Labrador and the impacts and benefits agreements with the Innu Nation and the Nunatsiavut
government; and
• the demand and uses for cobalt will not significantly decrease and the supply of cobalt will not
significantly increase.
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, l evel of activity, performance or achievements not to be as anticipated,
estimated or intended. 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. Accordingly,
readers should not place undue reliance on forward -looking statements and are cautioned that actual outcom es
may vary. The forward -looking statements included herein are for the purpose of providing investors 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. Wheaton does not undertake to update any forward -looking statements that are included or incorporated
by reference herein, except in accordance with applicable securities laws.