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Wheaton Precious Metals Announces 2023 Production and Sales Results and Forecasts 40% Growth in the Next Five Years

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Wheaton Precious Metals Announces 2023 Production and Sales Results and Forecasts 40% Growth in the Next Five Years

 

 

 

 

 

“In 2023, the importance of our diversified portfolio of high-quality, low-cost assets was underscored by Wheaton’s ability to meet its annual production guidance, well within the projected range for the year, as strong outperformances by Salobo and Constancia offset headwinds faced by other assets. Moreover, in 2023, we expanded our portfolio by securing agreements for eight development assets, further enhancing our production profile and contributing to our five-year growth profile of 40%,” said Randy Smallwood, President and Chief Executive Officer of Wheaton Precious Metals. “While our projected 2024 production is consistent with levels attained in 2023, we anticipate growth in the near-term as several assets are slated to commence operations by year-end, with the expanded range in our 2024 guidance accommodating the typical variability associated with development project ramp-ups.

 

As the premier streaming company with the highest proportion of revenue stemming from precious metals, we consider Wheaton to be the best investment vehicle available to gain long term exposure to precious metals.  In addition, with the strength of our balance sheet combined with the demand for streaming capital, we believe Wheaton is strategically positioned to further enhance its industry-leading growth profile.”

 

Wheaton Precious Metals™ Corp. will provide full production and financial details with the release of its 2023 fourth quarter and full year results on Thursday, March 14, 2024, after market close.

 

2023 Attributable Production and Sales

 

Metal 2023

Production
Guidance

2023

Actual

Production1,2

2023

Actual

Sales

Gold Ounces 374,585 327,336
Silver Ounces (‘000s) 17,220 14,326
Other Metals (GEOs2) 22,194 24,424
     Palladium Ounces 15,800 13,919
     Cobalt pounds (‘000s) 673 1,074
Gold Equivalent Ounces2 (“GEOs”) 600,000 to 660,000 620,177 537,608
2023 GEOs based on:  $1,850 / oz gold, $24 / oz silver, $1,800 / oz palladium, $1,100 / oz platinum and $18.75 / lb cobalt

 

In 2023, gold equivalent production came within 2% of the mid-point of the guidance range, primarily as a result of stronger than expected production at Salobo due to higher throughput as the Salobo III expansion project ramped up, and higher grades at Constancia from the mining of the high-grade zones of the Pampacancha deposit. These outperformances were partially offset by lower production from Peñasquito due to the temporary suspension of the mine resulting from a labour dispute lasting from June 7, 2023 to October 13, 2023, the suspension of operations at Minto beginning May 13, 2023, and the halting of production at Aljustrel beginning September 24, 2023.

 

Commodity Price Assumptions

 

Metal Previous

2023 Forecast

Updated

2024 Forecast

Gold ($ / oz) $   1,850 $   2,000
Silver ($ / oz) $   24.00 $   23.00
Palladium ($ / oz) $   1,800 $   1,000
Platinum ($ / oz) $   1,100 $    950
Cobalt ($ / lb) $   18.75 $   13.00

 

It is important to note that as gold outperformed all other metals during 2023, the assumed metal prices for 2024 results in lower gold equivalency calculations1,3 in 2024 compared to 2023.

 

2024 and Long-Term Production Outlook Using Updated Commodity Price Assumptions

 

Metal 2023

Actual

Production1,3

2024

Production
Guidance

2028

Target

Production
Guidance3, 4

2029-2033

Average Annual
Production

Guidance3, 4

Gold Ounces 374,585 325,000 to 370,000
Silver Ounces (‘000s) 17,220 18,500 to 20,500
Other Metals (GEOs3) 12,275 12,000 to 15,000
Gold Equivalent Ounces3 584,892 550,000 to 620,000 Over 800,000 Over 850,000
2024 and long-term GEOs based on $2,000 / oz gold, $23 / oz silver, $1,000 / oz palladium, $950 / oz platinum, and $13 / lb cobalt.

For purposes of comparison, 2023 Actual Production numbers have been adjusted to reflect 2024 commodity price assumptions.

 

2024 Production Outlook

 

In 2024, GEO3 production is forecast to be consistent with levels achieved in 2023, as expected stronger attributable production from Peñasquito and Voisey’s Bay is forecast to be offset by lower production from Salobo, the suspension of operations at Minto, and the temporary halting of production at Aljustrel. Attributable production is forecast to increase at Peñasquito as a result of uninterrupted operations, and at Voisey’s Bay due to the ongoing transition from the Ovoid pit to the underground mines. Attributable production is forecast to decrease slightly at Salobo due to lower grades as per the mine plan, which are expected to partially offset increasing throughput as the Salobo III expansion project continues toward completion. In addition, the Company anticipates production from the Blackwater and Platreef Projects to commence in the fourth quarter of 2024.

 

On May 13, 2023, it was announced that operations at the Minto Mine had been suspended, and the Yukon Government had assumed care and control of the site. On September 12, 2023, it was announced that as a result of low zinc prices, the production of zinc and lead concentrates at the Aljustrel Mine would be halted from September 24, 2023, until the second quarter of 2025. Combined, the removal of production from Minto and Aljustrel accounts for a 25,000 GEOreduction in 2024 production guidance.

 

Long-Term Production Outlook

 

Production is forecast to increase by approximately 40% over the next five years to over 800,000 GEOs3,4 by 2028, primarily due to growth from Operating assets including Salobo, Antamina, Peñasquito, Voisey’s Bay and Marmato; Development projects which are in-construction and/or permitted including Platreef, Blackwater, Goose, Mineral Park, Fenix and Santo Domingo; and Pre-development projects including Curipamba, Marathon and Copper World, for which production is anticipated towards the latter end of the five-year forecast period.

 

From 2029 to 2033, attributable production is forecast to average over 850,000 GEOs3,4 in the five-year period and incorporates additional incremental production from pre-development assets including the Cangrejos, Kudz ze Kayah, Curraghinalt, Victor, Toroparu and Kutcho projects, in addition to the Brewery Creek, Black Pine and Mt. Todd royalties.

 

Not included in Wheaton’s long-term forecast and instead classified as ‘optionality’, includes potential future production from Pascua Lama, Navidad, Cotabambas, Metates and additional expansions at Salobo outside of the Salobo III mine expansion project.

 

Wheaton Precious Metals’ quarterly reporting for the remainder of 2024 is scheduled to be issued, after market close, on the following dates:

Q1 2024 – Thursday, May 9, 2024
Q2 2024 – Thursday, August 8, 2024
Q3 2024 – Thursday, November 7, 2024

 

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. The Company is committed to strong ESG practices and giving back to the communities where Wheaton and its mining partners operate. As a result, Wheaton has consistently outperformed gold and silver, as well as other mining investments. Wheaton creates sustainable value through streaming.

 

Posted February 21, 2024

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