WHEATON PRECIOUS METALS CORP. 2023 Fourth Quarter Conference Call
WHEATONPM.COM | March 2024 | TSX | NYSE | LSE: WPM |
Cautionary Statements
Cautionary Note Regarding Forward-Looking Statements
The information contained in this presentation 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 Canadian securities legislation, in particular, but not limited to, the future price of commodities and the estimation of future production. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Readers are strongly cautioned to carefully review the cautionary notes to this Video and in particular:
Note 1 at the end of the Corporate Presentation contains our cautionary note regarding forward-looking statements and sets out the material assumptions and risk factors that could cause actual results to differ, including, but not limited to, fluctuations in the price of commodities, estimation of production, estimation of mineral reserves and resources, the commencement, timing and achievement of construction, expansion or improvement projects by Wheaton Precious Metal's counterparties at Mining Operations, resolution of legal and tax matters (including CRA audits involving Wheaton Precious Metals), accuracy of assessment of application of CRA settlement and impact of 15% global minimum tax, the absence of control over mining operations from which Wheaton Precious Metal purchases precious metals or cobalt, and risks related to such mining operations and continued operation of Wheaton Precious Metals' Counterparties. Readers should also consider the risks identified under "Description of the Business - Risk Factors" in Wheaton's Annual Information Form for the year ended December 31, 2022 and the risks identified under "Risks and Uncertainties" in Wheaton's Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2023, both available on SEDAR+ and in Wheaton's Form 6-Kfiled March 14, 2024, all available on EDGAR. Where applicable, readers should also consider any updates to such "Risks and Uncertainties" that may be provided by Wheaton in any subsequently filed quarterly MD&A.
Note 2 at the end of the Corporate Presentation contains our cautionary note regarding the presentation of mineral reserve and mineral resource estimates.
The full presentation is available on Wheaton's website (wheatonpm.com). All values referenced on the presentation are in US dollars unless otherwise noted. In accordance with Wheaton Precious Metals Corp.'s ("Wheaton Precious Metals", "Wheaton" or the "Company") MD&A and financial statements, reference to the Company includes the Company's wholly owned subsidiaries.
WHEATON PRECIOUS METALS | 2 |
Wheaton Precious Metals
Fourth Quarter and Full Year 2023
Fourth Quarter Financial Results | |||
Revenue | $313 million | ||
Net Earnings | $168 million | ||
HIGHLIGHTS | Adj. Net Earnings* | $165 million | |
Operating Cash Flow | $242 million | ||
Sustainability leadership4: | |||
▪ Top rankings by Sustainalytics5, AA rated | |||
by MSCI, and Prime rated by ISS | |||
▪ Recognized among Corporate Knights' | |||
2024 100 Most Sustainable Corporations | |||
in the world | |||
Randy Smallwood, Wheaton Precious Metals, President and CEO
Board of Directors approves quarterly dividend10:
- Record annual dividend distribution of $272 million to shareholders achieved in 2023
- Increased quarterly dividend to $0.155 per common share payable to shareholders of record on April 3, 2024
Diversified and resilient portfolio:
▪ Met annual production guidance, achieving 620,000 GEOs in 2023
Corporate development momentum:
▪ Achieved growth strategy milestone, announcing a record eight acquisitions, totaling >$1 billion in commitments
*This slide contains non-IFRS measures which do not have any standardized meaning | ||
prescribed by IFRS. See Endnotes: Non-IFRS Measures which includes reconciliations to the | ||
most directly comparable financial measures. | WHEATON PRECIOUS METALS | 3 |
Operations Overview
Salobo: 75% of gold for life of mine
- Salobo reached its highest production level since the fourth quarter of 2019 as the ramp-up of the Salobo III expansion continued to advance.
- In the fourth quarter, Vale achieved the completion test for the first phase of the Salobo expansion project, achieving average throughput capacity of 32Mtpa. Salobo is expected to achieve a sustained throughput capacity of 36Mtpa in Q4 2024.
Constancia: 100% of silver and 50% of gold for life of mine
- Record quarterly gold production and strong silver production in the fourth quarter resulted from significantly higher grades from mining the high-grade zones of the Pampacancha deposit, coupled with higher recoveries.
Peñasquito: 25% of silver for life of mine
- Operations were suspended for approximately four months in 2023, however Newmont reports that operations have safely ramped up after a resolution was reached with the National Union of Mine and Metal Workers of the Mexican Republic, on October 13, 2024.
- Newmont has indicated that Peñasquito is expected to deliver higher co-product production in 2024 due to higher silver, lead and zinc content from the Chile Colorado pit.
Wes Carson, Vice President Mining Operations | WHEATON PRECIOUS METALS | 4 |
Attributable Reserves & Resources
Year over Year Growth Across All Mineral Categories
Changes to Attributable Reserves and
Resources in 2023
20.0% | ~40% | ||||||||
15.0% | Growth | 15% | |||||||
10% | |||||||||
10.0% | |||||||||
5.0% | 3% | ||||||||
0.0% | |||||||||
-5.0% | |||||||||
-10.0% | |||||||||
New Deals | Copper | Other | Total | ||||||
World | |||||||||
Proven & Probable | Measured & Indicated | Inferred | |||||||
Notable Changes to R&R: | Growth from Other |
Development Assets |
- Increase in Proven & Probable MineralMa athon Reserves by 10% on a gold equivalentCopper Worldbasis due to primarily to new acquisitions announced in 2023, and Copper World's inaugural incorporation of gold.
- Increase in Measured & Indicated Resources by 15% on a gold equivalent basis due primarily to an infill drill program at Cotabambas with a large amount of Inferred upgraded to Indicated.
- Increase in Inferred Resources by 3% due primarily to exploration success at Salobo.
Wes Carson, Vice President Mining Operations | WHEATON PRECIOUS METALS | 5 |
High-Quality Asset Base
Path to Long-term Organic Growth1,29
Gold Equivalent Production (GEO) (Koz)4
1,000
900
800
700
600
500
400
300
200
100
0
2023: Actuals
GEOs:
584 Koz
12.3 Koz
Other Metals
375
Koz Au
17.2
Moz Ag
2024:
Guidance
GEOs:
550-620 Koz
12.0-15.0 Koz Other Metals
325-370 Koz Au
18.5-20.5
Moz Ag
2029 - 2033 Average:
850,000 GEOs
Growing to >800,000
GEOs by 2028
Anticipated Organic Growth Drivers Include:
Brownfield: | Greenfield: |
Salobo | Blackwater |
Antamina | Platreef12 |
Voisey's Bay | Goose |
Marmato | Mineral Park |
Stillwater | Fenix |
Curipamba | |
Santo Domingo | |
Copper World |
2023A | 2024E | 25E | 26E | 27E | 28E | 29E | 30E | 31E | 32E | 33E |
Anticipated Sector leading production growth over the next 5 years of ~40%,
with stable production of over 850k GEOs per year expected in the long-term
Wes Carson, Vice President Mining Operations | WHEATON PRECIOUS METALS | 6 |
5-Year Production Outlook
Forecasting Approximately 40% Production Growth by 2028
Gold Equivalent Ounces4
900
800
700
600
500
400
300
200
100
-
800koz
~40%
Growth
550 - 620k
2024E | 2028E |
Growth from | Growth from Other |
Operating Assets | Development Assets |
& | |
Permitted / | Marathon |
In-Construction Assets | Copper World |
Salobo
Antamina
Voisey's Bay
Marmato Blackwater
Stillwater Platreef12
Goose
Mineral Park
Fenix
Curipamba
Santo Domingo
Growth from Operating, Permitted, and/or In-Construction Assets Growth from Other Development Assets
Over 70% of Wheaton's expected five-year growth is significantly de-risked, coming from assets that are either operating, in-construction, and/or permitted
Wes Carson, Vice President Mining Operations | WHEATON PRECIOUS METALS | 7 |
Gold Equivalent Ounces (koz)15
Production & Sales By Metal
Production
200 | 174.2 | |||||||||||||||||||
164.9 | 155.9 | 153.0 | 146.1 | 154.8 | ||||||||||||||||
142.9 | 144.5 | |||||||||||||||||||
150 | ||||||||||||||||||||
100 | ||||||||||||||||||||
50 | ||||||||||||||||||||
0 | ||||||||||||||||||||
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | |||||||||||||
200 | Sales | |||||||||||||||||||
159.1 | 165.8 | 162.4 | ||||||||||||||||||
135.2 | 138.2 | |||||||||||||||||||
150 | 117.4 | 138.8 | 119.0 | |||||||||||||||||
100 | ||||||||||||||||||||
50 | ||||||||||||||||||||
0 | ||||||||||||||||||||
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | |||||||||||||
Gold Silver | Other Metals 7 | |||||||||||||||||||
Gary Brown, Senior Vice President, Finance & CFO | WHEATON PRECIOUS METALS | 8 |
Q4 2023 Profitability Overview
Revenue ($M)
Q4 2022 ($236M)
$7 $4
$106$119
Gold Silver Palladium Cobalt
Gross Margin
$121 Million
Quarter Comparison:
Total Revenue: +32.8%
Average Realized Prices:
Gold +16.3%
Silver +10.5%
Palladium -44.8%
Cobalt -42.9%
Q4 2023 ($313M)
$4 $4
$75
$231
Gold Silver Palladium Cobalt
Gross Margin
$177 Million
Driven by higher sales volumes and prices,
gross margin for Q4 2023 to increase by over 46% to $177 million relative to Q4 2022
Gary Brown, Senior Vice President, Finance & CFO | WHEATON PRECIOUS METALS | 9 |
Produced But Not Delivered
Total Produced But Not Delivered
150.0 | 4.0 | ||||||||
(koz)8 | |||||||||
delivered | 3.0 | Number | |||||||
100.0 | |||||||||
2.0 | |||||||||
Produced but not | of Months | ||||||||
50.0 | |||||||||
1.0 | |||||||||
0.0 | 0.0 | ||||||||
Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 |
Gold PBND | Silver PBND | Other Metals | ||||
Gold (# of months) | Silver (# of months) | GEOs (# of months) | ||||
At the end of Q4 2023, 134,000 GEOs were in PBND and cobalt inventory representing ~2.5 months of payable GEO
production, a level slightly lower than the previous quarter
Gary Brown, Senior Vice President, Finance & CFO | WHEATON PRECIOUS METALS | 10 |
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Disclaimer
Wheaton Precious Metals Corp. published this content on 14 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 March 2024 21:43:05 UTC.
