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

Nov 15, 2019 • 11:00 am ET

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

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Q & A
Executive
Randy Smallwood

us is going to be somewhere between -- and -- if they go with the full feed from the -- and not do any stockpiling, they'll probably see a bump of about 50,000 to 60,000 ounces of gold per year. If they go to a stockpile that they maintain current practices and go with a low-grade stockpiling procedure, we would probably see somewhere in the area of 100,000 to 110,000 ounces of additional gold production per year.

And so -- you know, it's that range, we're probably not going to get a firm decision from them until as I said, 2021, I would think. They're still going through and doing optimization studies to try and determine what works the best for them. We -- we're hopeful that they do take the stockpiling approach. It's what they currently do at the site and that -- it's proven very effective at this site in terms of moving metal production forward. It's proven effective at many sites around the world in terms of that and so. But that's a decision that just hasn't been made yet on the Vale side. And so we're monitoring that and give guidance as we get guidance on that.

Analyst
Ralph Profiti

Got it. Yes. That's very helpful. On Constancia, we've heard from Hudbay on Pampacancha ore in 2020, that hasn't changed, and the 8,000 ounces payment that hasn't changed either. Is there comments you can make on what happens if Pampacancha ore doesn't come in until say late 2020, or not In 2020 at all? Any disclosures around helping us on what those delay payments may look like?

Executive
Gary Brown

Yes, Ralph. It's Gary here. If they're not mining by the end of 2020, then there is a -- we have the option to demand an 85,000 ounce of gold payment, which would be delivered over -- I believe it's a 12-month period. But -- so -- and that's to return the capital that we've deployed, relative to the Pampacancha pit. But at this point, it still looks like they're going to be in the Pampacancha pit sometime next year.

Analyst
Ralph Profiti

Yes.

Executive
Randy Smallwood

Yes, I mean, it's Randy, here. Our partnership with Hudbay is an important one. We've done a lot of work with them on different projects and such and so we're supportive in terms of their efforts to move this thing forward. They are making progress slowly, but they are making progress. They are moving forward on it. And so we will work with Hudbay through this and see where we get. But we get compensated until the end of 2020, and then at that point, we have an option to either cash, get compensation back or work with Hudbay. But it's our choice.

Analyst
Ralph Profiti

Got it. Yes. Very helpful. Thanks, everyone.

Executive
Gary Brown

Thank you, Ralph.

Operator
Operator

[Operator Instructions] Your next question comes from the line of Alex Hunchak with CIBC. Please go ahead.

Analyst
Alex Hunchak

Hey, guys, thanks for taking my question. Just a quick one. Can you provide some guidance on sort of the longer-term