TIDMWPM
RNS Number : 3021U
Wheaton Precious Metals Corp.
22 November 2023
November 21, 2023
Vancouver, British Columbia
Wheaton Precious Metals and Vale Base Metals Announce
Achievement of First Phase Completion Test at Salobo
Vancouver, British Columbia/Toronto, Ontario - Wheaton Precious
Metals(TM) Corp. ("Wheaton" or the "Company") ( TSX | NYSE | LSE:
WPM), Wheaton Precious Metals International Ltd. ("Wheaton
International") and Vale Base Metals Limited ("VBM") (NYSE:VALE)
are pleased to announce the successful completion of the throughput
test for the first phase of the Salobo III expansion project, a
significant milestone that demonstrates increased reliability and
continued strong performance at VBM's flagship copper project in
Brazil. The test required VBM's Salobo complex to run at an average
annualized throughput of 32 million tonnes per annum ( " Mtpa") for
a period of 90 days. VBM confirmed completion of the test on
November 17, 2023, with an average throughput of 32.3 Mtpa.
"As a cornerstone asset in Wheaton's portfolio, Salobo is once
again proving itself to be a top-tier operation. The ramp-up of the
expansion at the Salobo Mine has not only met but surpassed our
expectations, and we extend our sincere congratulations to the Vale
Base Metals team in achieving this significant milestone," said
Randy Smallwood, President and Chief Executive Officer of Wheaton.
"An accomplishment of this magnitude is made possible by the
dedication of the on-site team and their commitment to operational
excellence. These efforts have resulted in significant enhancements
to both Salobo 's reliability and operational performance, and w e
continue to forecast meaningful production from Salobo over the
next several years. As the expansion project advances, we look
forward to our continued partnership with Vale Base Metals as they
embark on this exciting next phase of growth. "
"This is a great accomplishment for the Salobo teams and our
entire organization," said VBM Chief Executive Officer Deshnee
Naidoo. "The consistent performance at Salobo shows we are taking
the right actions to unlock value across the portfolio with a focus
on driving efficiency and operational excellence. Salobo III is a
US$1.1 billion investment in our future that leverages our unique
exposure to a Tier 1 copper hub in the Carajás region - a distinct
competitive advantage and growth engine as we look to accelerate
copper production and deliver critical minerals the world
needs."
Salobo - Mill Throughput Expansion
The Salobo mine historically had a mill throughput capacity of
24 Mtpa, and having now exceeded throughput capacity of 32 Mtpa, is
currently ramping up to full capacity of 36 Mtpa, expected in the
fourth quarter of 2024. Under the terms of the Salobo precious
metals purchase agreement ("PMPA"), Wheaton International will make
a payment to Vale Base Metals totalling $370 million for completion
of the first phase of the Salobo III expansion project. The
remaining balance of the expansion payment is dependent on the
timing of completion and will be triggered once Vale Base Metals
expands actual throughput above 35 Mtpa for a period of 90 days. In
addition, Wheaton International will be required to make annual
payments of between $5.1 million to $8.5 million for a 10-year
period following payment of the expansion payments if the Salobo
mine implements a high-grade mine plan.
Financing the Expansion Payment
As at September 30, 2023, the Company had approximately $834
million of cash on hand, which when combined with the liquidity
provided by the available credit under the $2 billion revolving
term loan and the strength of our ongoing operating cash flows,
positions the Company well to fund the Salobo expansion payment in
addition to the recently announced acquisition of the Platreef,
Kudz Ze Kayah and Curraghinalt streams, as well as all outstanding
commitments and known contingencies, and provides flexibility to
acquire additional accretive mineral stream interests.
About Wheaton Precious Metals Corp.
Wheaton is the world's premier precious metals streaming company
with the highest-quality portfolio of long-life, low-cost assets.
Its business model offers investors commodity price leverage and
exploration upside but with a much lower risk profile than a
traditional mining company. Wheaton delivers amongst the highest
cash operating margins in the mining industry, allowing it to pay a
competitive dividend and continue to grow through accretive
acquisitions. As a result, Wheaton has consistently outperformed
gold and silver, as well as other mining investments. Wheaton is
committed to strong ESG practices and giving back to the
communities where Wheaton and its mining partners operate. Wheaton
creates sustainable value through streaming for all of its
stakeholders.
About Vale Base Metals
Vale Base Metals, the holding entity for Vale's energy
transition metals business, is one of the world's largest producers
of high-quality nickel and an important producer of copper and
responsibly sourced cobalt. With a corporate presence in Toronto,
Canada, and operations in Newfoundland & Labrador, Ontario,
Manitoba, Indonesia, Brazil, the UK and Japan, the business
delivers critical building blocks for a cleaner, greener
future.
For further information:
Investor Contact
Emma Murray
Vice President, Investor Relations
Tel: 1-844-288-9878
Email: info@wheatonpm.com
Media Contact
Simona Antolak
Vice President, Communications & Corporate Affairs
Tel: 604-639-9870
Email: simona.antolak@wheatonpm.com
Vale Media
Media.valebasemetals@vale.com
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 PMPA counterparties. Forward-looking statements, which
are all statements other than statements of historical fact,
include, but are not limited to, statements with respect to
payments to Vale Base Metals in connection with the Salobo III
expansion, the satisfaction of each party's obligations in
accordance with the Salobo PMPA and the receipt of additional gold
production in respect of the Salobo III expansion, the future price
of commodities, the estimation of future production from Mining
Operations (including in the estimation of production, mill
throughput, grades, recoveries and exploration potential), the
estimation of mineral reserves and mineral resources (including the
estimation of reserve conversion rates) and the realization of such
estimations, the commencement, timing and achievement of
construction, expansion or improvement projects by Wheaton's PMPA
counterparties at mineral stream interests owned by Wheaton (the
"Mining Operations"), the payment of upfront cash consideration to
counterparties under PMPAs, the satisfaction of each party's
obligations in accordance with PMPAs and royalty arrangements and
the receipt by the Company of precious metals and cobalt production
in respect of the applicable Mining Operations under PMPAs or other
payments under royalty arrangements, the ability of Wheaton's PMPA
counterparties to comply with the terms of a PMPA (including as a
result of the business, mining operations and performance of
Wheaton's PMPA counterparties) and the potential impacts of such on
Wheaton, future payments by the Company in accordance with PMPAs,
the costs of future production, the estimation of produced but not
yet delivered ounces, the impact of epidemics (including the
COVID-19 virus pandemic), including the potential heightening of
other risks, future sales of common shares under the ATM program,
continued listing of the Company's common shares, any statements as
to future dividends, the ability to fund outstanding commitments
and the ability to continue to acquire accretive PMPAs, including
any acceleration of payments, projected increases to Wheaton's
production and cash flow profile, projected changes to Wheaton's
production mix, the ability of Wheaton's PMPA counterparties to
comply with the terms of any other obligations under agreements
with the Company, the ability to sell precious metals and cobalt
production, confidence in the Company's business structure, the
Company's assessment of taxes payable and the impact of the CRA
Settlement, possible domestic audits for taxation years subsequent
to 2016 and international audits, the Company's assessment of the
impact of any tax reassessments, the Company's intention to file
future tax returns in a manner consistent with the CRA Settlement,
the Company's climate change and environmental commitments, and
assessments of the impact and resolution of various legal and tax
matters, including but not limited to audits. 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 related to the satisfaction of each
party's obligations in accordance with the terms of the Salobo
PMPA, the satisfaction of each party's obligations in accordance
with the terms of the Company's PMPAs or royalty arrangements,
risks associated with fluctuations in the price of commodities
(including Wheaton's ability to sell its precious metals or
cobalt production at acceptable prices or at all), risks related to
the Mining Operations (including fluctuations in the price of the
primary or other commodities mined at such operations, regulatory,
political and other risks of the jurisdictions in which the Mining
Operations are located, actual results of mining, risks associated
with the exploration, development, operating, expansion and
improvement of the Mining Operations, environmental and economic
risks of the Mining Operations, and changes in project parameters
as plans continue to be refined), the absence of control over the
Mining Operations and having to rely on the accuracy of the public
disclosure and other information Wheaton receives from the Mining
Operations, uncertainty in the estimation of production from Mining
Operations, uncertainty in the accuracy of mineral reserve and
mineral resource estimation, risks of significant impacts on
Wheaton or the Mining Operations as a result of an epidemic
(including the COVID-19 virus pandemic), the ability of each party
to satisfy their obligations in accordance with the terms of the
PMPAs, the estimation of future production from Mining Operations,
Wheaton's interpretation of, compliance with or application of, tax
laws and regulations or accounting policies and rules being found
to be incorrect, any challenge or reassessment by the CRA of the
Company's tax filings being successful and the potential negative
impact to the Company's previous and future tax filings, assessing
the impact of the CRA Settlement (including whether there will be
any material change in the Company's facts or change in law or
jurisprudence), potential amendments to Canada's transfer pricing
rules under the Income Tax Act (Canada) that may result from the
Department of Finance's consultation paper released June 6, 2023,
potential implementation of a 15% global minimum tax, including the
draft legislation issued for consultation by the Canadian Federal
Government on August 4, 2023 that would apply to the income of the
Company's non-Canadian subsidiaries; counterparty credit and
liquidity, mine operator concentration, indebtedness and
guarantees, hedging, competition, claims and legal proceedings
against Wheaton or the Mining Operations, security over underlying
assets, governmental regulations, international operations of
Wheaton and the Mining Operations, exploration, development,
operations, expansions and improvements at the Mining Operations,
environmental regulations, climate change, Wheaton and the Mining
Operations ability to obtain and maintain necessary licenses,
permits, approvals and rulings, Wheaton and the Mining Operations
ability to comply with applicable laws, regulations and permitting
requirements, lack of suitable supplies, infrastructure and
employees to support the Mining Operations, inability to replace
and expand mineral reserves, including anticipated timing of the
commencement of production by certain Mining Operations (including
increases in production, estimated grades and recoveries),
uncertainties of title and indigenous rights with respect to the
Mining Operations, environmental, social and governance matters,
Wheaton and the Mining Operations ability to obtain adequate
financing, the Mining Operations ability to complete permitting,
construction, development and expansion, global financial
conditions, Wheaton's acquisition strategy 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.sedarplus.ca and Wheaton's Form 40-F for the year
ended December 31, 2022 on file with the U.S. Securities and
Exchange Commission on EDGAR (the "Disclosure"). Forward-looking
statements are based on assumptions management currently believes
to be reasonable, including (without limitation): the payments to
Vale Base Metals and the satisfaction of each party's obligations
in accordance with the terms of the Salobo PMPA, that there will be
no material adverse change in the market price of commodities, that
the Mining Operations will continue to operate and the mining
projects will be completed in accordance with public statements and
achieve their stated production estimates, that the mineral
reserves and mineral resource estimates from Mining Operations
(including reserve conversion rates) are accurate, that each party
will satisfy their obligations in accordance with the PMPAs, that
Wheaton will continue to be able to fund or obtain funding for
outstanding commitments, that Wheaton will be able to source and
obtain accretive PMPAs, that neither Wheaton nor the Mining
Operations will suffer significant impacts as a result of an
epidemic (including the COVID-19 virus pandemic), that any outbreak
or threat of an outbreak of a virus or other contagions or epidemic
disease will be adequately responded to locally, nationally,
regionally and internationally, without such response requiring any
prolonged closure of the Mining Operations or having other material
adverse effects on the Company and counterparties to its PMPAs,
that the trading of the Company's common shares will not be
adversely affected by the differences in liquidity, settlement and
clearing systems as a result of multiple listings of the Common
Shares on the LSE, the TSX and the NYSE, that the trading of the
Company's common shares will not be suspended, and that the net
proceeds of sales of common shares, if any, will be used as
anticipated, that expectations regarding the resolution of legal
and tax matters will be achieved (including ongoing CRA audits
involving the Company), that Wheaton has properly considered the
interpretation and application of Canadian tax law to its structure
and operations, that Wheaton has filed its tax returns and paid
applicable taxes in compliance with Canadian tax law, that
Wheaton's application of the CRA Settlement is accurate (including
the Company's assessment that there will be no material change in
the Company's facts or change in law or jurisprudence), 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.
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END
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