Wheaton Precious Metals Corp. (NYSE:WPM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 15, 2019 • 11:00 am ET
Thank you. Ladies and gentlemen, we will now conduct the question-and-answer session. [Operator Instructions] Your first question comes from the line of Ralph Profiti with Eight Capital. Please go ahead.
Good morning. Thanks for taking my questions. Two of them, if I may. Randy, I know that CSR is a big part of the Wheaton strategy. Can you talk a little bit about sort of the community relations work you've done ahead of Phase 3 expansion at Salobo? And when do you think we can hear more details from Vale on the project scope? And now they're currently working on some details that may impact stream deliveries.
Okay. So I think the first part of that, we've had a long relationship, but Salobo -- with Vale, and we orchestrate that through a partnership with the Vale Foundation. And so there has been a number of different programs in the area of Salobo improvements to health facilities. I know we supported a health clinic in one of the local villages there. We've also initiated some small business enterprise support for some of the local communities that were -- there were some changes in terms of train scheduling and stuff like this, and so we provided some support to promote small business development and help supply in that.
And -- so it's been a very active program. Obviously, Salobo is a very important asset for us and so we've done quite a bit of work on that side. And -- sorry, Ralph, what was the second part of the question, you talked about some changes?
Well, are they currently working on sort of scope details, right, that -- I know, it's just that step up to the 12 million tons per year step-up. But are there changes around the mine plan, the footprint or the actual production plan when you get down to the metal level that may impact how Wheaton is approaching Phase 3 stream deliveries?
Yes. Okay. And one of the reasons that we don't include the Phase 3 deliveries is that they haven't selected a final mine plan at Salobo. They have the option of continuing their current practices, which is to stockpile low-grade material or to switch over to a mining practice that would take all the ore and process it through the mill at the same time and not build up a low-grade stockpile.
They don't have to make that decision until probably 2021 because the only impact is the different sized mobile fleet. If they're going to be stockpile low-grade material, it means they're overall moving more material, which means they're going to need a slightly larger mobile fleet. Last I've checked, all that takes is 1,800 Caterpillar [Phonetic] and you can have that equipment there relatively quick.
And so that's not a decision that they've finalized yet, and it's one of the reasons we haven't been able to give firm guidance in terms of what we see coming forward. Typically the range in additional production for