the high margin precious metals company

THE HIGH MARGIN PRECIOUS METALS COMPANY Virtual Corporate - PowerPoint PPT Presentation

THE HIGH MARGIN PRECIOUS METALS COMPANY Virtual Corporate Presentation - March 2020 CAUTIONARY STATEMENTS CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The information contained in this Presentation contains forward -looking

  1. THE HIGH MARGIN PRECIOUS METALS COMPANY Virtual Corporate Presentation - March 2020

  2. CAUTIONARY STATEMENTS CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The information contained in this Presentation 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 Canadian securities legislation. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Readers are strongly cautioned to carefully review the cautionary notes to this Presentation and in particular: Note 1 at the end of this Presentation contains our cautionary note regarding forward-looking statements and sets out the material assumptions and risk factors that could cause actual results to differ, including, but not limited to, fluctuations in the price of commodities, the impact of the COVID-19 virus pandemic, the outcome of any audits by the CRA of Wheaton Precious Metal’s tax filings, the absence of control over mining operations from which Wheaton Precious Metal purchases silver or gold, and risks related to such mining operations and continued operation of Wheaton Precious Metal’s Counterparties. Readers should also consider the section entitled “Description of the Business – Risk Factors” in Wheaton Precious Metal’s Annual Information Form and the risks identified under “Risks and Uncertainties” in Management's Discussion and Analysis for the period ended December 31, 2018, both available on SEDAR and in Wheaton Precious Metals' Form 40-F and Wheaton Precious Metals' Form 6-K filed March 31, 2018, both on file with the U.S. Securities and Exchange Commission. Where applicable, readers should also consider any updates to such “Risks and Uncertainties” that may be provided by Wheaton Precious Metals in its quarterly Management’s Discussion and Analysis. Note 2 at the end of this Presentation contains our cautionary note regarding the presentation of mineral reserve and mineral resource estimates. The full presentation is available on Wheaton’s website ( All values referenced on the presentation are in US dollars unless otherwise noted. In accordance with Wheaton Precious Metals™ Corp. ’s (“Wheaton Precious Metals”, “Wheaton” or the “Company”) MD&A and financial statements, reference to the Company includes the Company’s wholly owned subsidiaries. 2

  3. WHEATON PRECIOUS METALS A VIRTUAL UPDATE IN A TUMULTUOUS TIME: IMPACT OF COVID-19 ▪ Business Continuity and Employee Health and Safety • Health and safety of Wheaton’s employees and communities remain a top priority • Wheaton has closed its offices and moved to telecommuting for all of its employees • Detailed business continuity plan already in place has allowed for a seamless transition and uninterrupted flow of business ▪ Partner Operations • Limited impact to our partners’ mines on which we have streams as of March 26th; however further closures are possible • With 88% of our production coming from mines in the first half of their respective cost curves, partners are incentivized to keep mines on line or restart any shut down mines as quickly as is safely possible ▪ Ample Liquidity and Funding • As of Dec. 31, 2019, Wheaton has $104 million of cash and over $1.1 million of capacity under the $2 billion revolving credit facility • Given our strong cash flow generation and the available liquidity noted above, Wheaton remains well positioned to fund all outstanding commitments and known contingencies including dividends, as well as providing flexibility to acquire additional accretive precious metal stream interests 1 Wheaton hopes everyone is staying safe and healthy, and encourages everyone, where possible, to do whatever you can to help those most at need. Wheaton Precious Metals 3


  5. WHEATON PRECIOUS METALS A MODEL DESIGNED TO BENEFIT ALL STAKEHOLDERS To be the world’s premier precious metals investment vehicle. Our Vision Our Mandate To deliver value through streaming to all of our stakeholders: . To our Shareholders , To our Neighbours , To our Partners , by delivering low risk, high by crystallizing value for by promoting responsible quality, diversified exposure precious metals yet to mining practices and supporting and growth optionality to be produced the communities in which we precious metals live and operate Wheaton Precious Metals 5

  6. WHEATON’S STREAMING ADVANTAGE COMMODITY PRICE LEVERAGE PREDICTABLE COSTS Contractually defined cost per ounce Investors get leverage to the underlying typically protects streamers from commodities inflationary cost pressures Delivery payments per ounce are pre-determined and made upon delivery EXPLORATION UPSIDE HIGH LOWER SUSTAINABLE DIVIDEND WITH UPSIDE RISKS Receives the benefit from mine Predictable costs and lower risk exploration and expansion activities should lead to more predictable cash typically at no additional cost flows and a more sustainable dividend OPTIONALITY HIGHEST QUALITY ASSET BASE Development projects with the potential of Streaming companies are easily scalable and adding >240,000 GEOs can manage a portfolio of 20 or more mining assets Wheaton provides investors the upside associated with mining companies, but with a risk profile comparable to owning bullion or ETFs directly Wheaton Precious Metals 6

  7. HIGH QUALITY ASSET BASE DIVERSIFIED PORTFOLIO OF HIGH-QUALITY ASSETS Operating Mines (20) Development Projects (9) Partners: Vale Keno Hill Glencore Minto Zinkgruvan Kutcho Newmont Voisey’s Bay 777 Barrick Sudbury Aljustrel Coleman Lundin Stillwater Copper Cliff Stratoni East Boulder Hudbay Creighton Neves-Corvo Garson Sibanye-Stillwater Rosemont Totten Peñasquito Victor (Dev. project) San Dimas Pan American Los Filos First Majestic Equinox Toroparu Eldorado Antamina Almina Salobo Yauliyacu Pembridge Constancia Cotabambas Alexco Gold X Mining Pascua-Lama Corporate Offices (2) Panoro Kutcho Copper Navidad Well-diversified with low political risk Wheaton Precious Metals 7

  8. HIGH QUALITY ASSET BASE LOW COST, LONG LIFE PRODUCTION 2020 Forecast Production Mine Life of Operating Portfolio 1,2,3 by Cost Quartile 1,3 70 60 5% 7% 26 50 Mine Life (years) 40 7 15% 30 20 33 73% 10 First Second 0 Third Proven & Probable Measured & Inferred Mineral Mineral Reserves Indicated Mineral Resources Fourth Resources Over two thirds of Wheaton’ s production comes from assets that fall in the lowest cost quartile, and the portfolio has over 30 years of mine life based on reserves Wheaton Precious Metals 8

  9. HIGH QUALITY ASSET BASE FIVE YEAR PRODUCTION FORECAST 1,200 2018 Actuals 2019 Actuals 2020 Guidance Gold Equivalent Production (GEO) (Koz) 1,4 5-Year Guidance is for annual production to GEOs: GEOs: GEOs: 683Koz 707Koz 685 - 725Koz average 750Koz Gold Equivalent per year 1,000 23 – 24.5 800 22.0 14.7 Koz Pd Voisey’s Bay Cobalt 2% Koz Pd Koz Pd Palladium 5% Stillwater Salobo 600 Sudbury 53% 390 – 410 Gold San Dimas 373.2 406.6 Koz Au Koz Au Koz Au Stillwater 400 Constancia Antamina 200 Peñasquito 40% 22.5 22 – 23.5 24.2 Silver Constancia Moz Ag Moz Ag Moz Ag Other 0 2018A 2019A 2020E 2021E 2022E 2023E 2024E Development Optionality Silver Gold Palladium Cobalt Wheaton outperformed 2019 guidance of 690Koz GEOs for the eighth consecutive year Wheaton Precious Metals 9

  10. CASH OPERATING COSTS PREDICTABLE COSTS AND HIGH MARGINS Total Cash Cost and Cash Operating Margins per Ounce 1,5,6,7 $2,000 $1,600 $1,200 Gold Price (US$/0z) 79% 81% 70% 72% 68% 69% 69% 69% $800 75% 66% 71% $400 $386 $393 $395 $409 $421 $431 $362 $386 $391 $300 $300 $300 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020- 2024E $40 $30 Silver Price (US$/0z) $20 88% 87% 83% 81% 78% 74% 74% 70% 69% $10 73% 74% 5.02 $5.31 $4.17 $4.42 $4.49 4.67 $3.97 $3.97 $3.99 $4.06 $4.12 $4.14 $0 2020- 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020-2024E 2024E Total Cash Cost/oz Cash Operating Margins Wheaton Precious Metals 10 10

  11. STRONG BALANCE SHEET AMPLE CAPACITY TO CONTINUE GROWING Cash Flow % Increase Au Ag $8,000 Sensitivity to from Base Price Price Balance Sheet as of December 31, 2019 1,7 Commodity Price Case $US/oz $US/oz $7,000 20 yr. avg 126% 120% $2,400 $37.54 $6,000 Au/Ag ratio 8 50% $2,400 $21.00 75% 75% Millions ($US) $5,000 35% $2,160 $18.90 52% 53% 30% $4,000 20% $1,920 $16.80 30% 30% 15% 10% $1,760 $15.40 15% 15% $3,000 Base Case Base Case $2,000 Gold @ $1,600 Gold @ $1,600 Silver @ $14.00 Silver @ $14.00 Palladium @ $2,000 Palladium @ $1,600 $1,000 $0 11 Revolving Credit Cash Remaining Capacity Est. Op. Cash Flow Facility (2020 to 2024) Cash flow sensitivities indicate a 50% increase in commodity prices will result in an 75% increase to cash flows Wheaton Precious Metals 11 11


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