Wheaton Precious Metals Corp. (NYSE:WPM) Q3 2019 Earnings Conference Call - Final Transcript

Nov 15, 2019 • 11:00 am ET


Wheaton Precious Metals Corp. (NYSE:WPM) Q3 2019 Earnings Conference Call - Final Transcript


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Randy Smallwood

to produce on average 750,000 gold equivalent ounces annually. I would like to remind everyone that Wheaton currently does not include any production in that five-year forecast from Vale's Salobo III ongoing expansion, the Hudbay's -- or Hudbay's Rosemont project or the recently restarted Minto mine.

With respect to Salobo expansion, Vale has confirmed that it continues to advance ahead of schedule with physical completion of the expansion now at 27%, including the completion of the concrete foundations for the mill and the primary crusher basis in the arrival of the site of the first loads related to the long-distance conveyor belt. Given their progress to date and assuming construction continues at the same pace, we expect the expansion at Salobo could begin contributing to our production profile as early as 2022. Our organic growth profile continues to be very strong.

On the corporate development front, we remain focused on adding additional production from high-quality accretive opportunities. Wheaton's sector-leading cash flow coupled with available credit under our revolving facility provides ample capacity for continued investments. As always, we will remain disciplined and continue to focus on acquiring streams that are accretive to our current shareholders and come from long-life assets producing in the lowest half of their respective cost curves.

In summary, there were some challenges with silver production in the first nine months of 2019, with the interruptions at Penasquito. However with the mine safely back to full operation and new month expectation of achieving higher grades, we look forward to a much stronger fourth quarter. And on the gold side, we are very pleased -- we continue to be very pleased with the outperformances of our gold assets, resulting in increased guidance. And we are on track for record gold production in 2019.

As our revenue is derived from a diversified production profile of 100% precious metals, we provide significant leverage to not only gold but silver and palladium as well, which bodes well in an environment of increasing commodity prices as we've seen in this past quarter.

We believe our production remains founded on the highest quality portfolio of precious metal streams in the industry, underpinned by very low-cost mining operations such as the Salobo, Antamina, and Stillwater.

And so with that, I'd like to open up the call for questions. Operator?