TIDMWPM
RNS Number : 5419W
Wheaton Precious Metals Corp.
19 August 2022
August 18, 2022 TSX | NYSE | LSE: WPM
Vancouver, British Columbia
Wheaton Precious Metals Enters Into Agreement To Terminate Its
Existing Silver Stream On The Yauliyacu Mine
Wheaton Precious Metals(TM) Corp. ("Wheaton" or the "Company")
is announcing that it has entered into a definitive agreement with
certain subsidiaries of Glencore plc ("Glencore") (LSE: GLEN) to
terminate its silver stream on the Yauliyacu Mine in Peru for a
cash payment of US$150 million, less the aggregate value of any
deliveries to Wheaton of silver produced in 2022 prior to closing.
Wheaton has agreed to terminate the stream in order to help
facilitate the sale by Glencore of the Yauliyacu Mine.
"Yauliyacu has been part of Wheaton's portfolio since 2006 and
has been integral to the history of our company. Combined with San
Dimas and Zinkgruvan, Yauliyacu gave us the scale to grow the
streaming business and become the company we are today," said Randy
Smallwood, Wheaton's President and Chief Executive Officer.
"Consistent with a core principle of working with our partners,
Wheaton has agreed to terminate the stream, adding even more
financial capacity to explore new opportunities that we believe are
in the best interests of our shareholders. Glencore was one of the
first mining companies to recognize the value that is created for
all stakeholders through the streaming model, and we thank them for
their stewardship of this project and look forward to maintaining
our strong partnership on existing and potential future
developments."
Wheaton acquired the silver stream on the Yauliyacu Mine in 2006
for an upfront consideration of US$285 million and has subsequently
generated over US$485 million in cash flow from the stream.
Combined with the termination payment, Wheaton will have generated
an absolute return of over 220% of the original investment.
The closing of the transaction is contingent on Glencore
divesting the Yauliyacu mine by December 31, 2022[1] and is subject
to other customary conditions.
As a result of the transaction, Wheaton now expects average
annual production for the five-year period ending December 31,
2026, to be approximately 800,000 gold equivalent ounces[2]
("GEOs") (from 820,000 previously) and for the ten-year period
ending December 31, 2031, to be approximately 850,000 GEOs (from
870,000 previously). Production in 2022 is expected to remain
between 640,000 and 680,000 GEOs.
For further information, please contact:
Patrick Drouin
Investor Relations
Wheaton Precious Metals Corp.
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Website: www.wheatonpm.com
End Notes
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release 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 applicable Canadian securities legislation concerning
the business, operations and financial performance of Wheaton and,
in some instances, the business, mining operations and performance
of Wheaton's precious metals purchase agreement (" PMPA")
counterparties. Forward-looking statements, which are all
statements other than statements of historical fact, include, but
are not limited to, the termination of the Yauliyacu silver stream
for $150 million, the value of silver produced and delivered after
January 1, 2022 and the satisfaction of each party's obligations in
accordance with definitive documentation relating to the
termination of the Yauliyacu silver stream. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "projects", "intends", "anticipates" or "does not
anticipate", or "believes", "potential", or variations of such
words and phrases or statements that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Wheaton to be materially different from those
expressed or implied by such forward-looking statements, including
but not limited to risks associated with any specific risks
relating to the termination of the Yauliyacu silver stream and the
satisfaction of each party's obligations in accordance with the
terms of the definitive documentation relating to the termination
of the Keno Hill silver stream, and other risks discussed in the
section entitled "Description of the Business - Risk Factors" in
Wheaton's Annual Information Form available on SEDAR at
www.sedar.com , and in Wheaton's Form 40-F for the year ended
December 31, 2021 and Form 6-K filed March 10, 2022 both available
on EDGAR at www.sec.gov , as well as the risks set out in Wheaton's
management's discussions and analysis for the period ended December
31, 2021 available on SEDAR and EDGAR (together, the "Disclosure").
Forward-looking statements are based on assumptions management
currently believes to be reasonable, including (without
limitation): the receipt of $150 million from Glencore, the
estimated value of silver to be produced and delivered after
January 1, 2022 and the satisfaction of each party's obligations in
accordance with the terms of the definitive documentation relating
to the termination of the Yauliyacu silver stream, and such other
assumptions and factors as set out in the Disclosure. There can be
no assurance that forward-looking statements will prove to be
accurate and even if events or results described in the
forward-looking statements are realized or substantially realized,
there can be no assurance that they will have the expected
consequences to, or effects on, Wheaton. Readers should not place
undue reliance on forward-looking statements and are cautioned that
actual outcomes may vary. The forward-looking statements included
herein are for the purpose of providing readers with information to
assist them in understanding Wheaton's expected financial and
operational performance and may not be appropriate for other
purposes. Any forward-looking statement speaks only as of the date
on which it is made, reflects Wheaton's management's current
beliefs based on current information and will not be updated except
in accordance with applicable securities laws. Although Wheaton has
attempted to identify important factors that could cause actual
results, level of activity, performance or achievements to differ
materially from those contained in forward--looking statements,
there may be other factors that cause results, level of activity,
performance or achievements not to be as anticipated, estimated or
intended.
([1]) Glencore has the option, but not the obligation, to
terminate the silver stream even if it does not divest Yauliyacu by
December 31, 2022.
[2] Commodity price assumptions for the gold equivalent
production and sales in 2022 are $1,800 / ounce gold, $24 / ounce
silver, and $2,100 / ounce palladium and $33 / pound cobalt. Other
metal includes palladium and cobalt.
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END
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