THE HIGH MARGIN PRECIOUS METALS COMPANY November 2017
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 starting on page 48 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 outcome of the challenge 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, 2016, both available on SEDAR and in Wheaton Precious Metals' Form 40-F and Wheaton Precious Metals' Form 6-K filed March 31, 2017, 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. 2
WHO IS WHEATON PRECIOUS METALS
WHEATON PRECIOUS METALS A MODEL DESIGNED TO BENEFIT ALL STAKEHOLDERS Pure precious metals streaming focus Wheaton Precious Portfolio of high quality, long-life assets Metals Strong balance sheet Wheaton Shareholder Mining Company Community Significant Upfront Capital: Exposure to Gold & Silver: Exposure to Gold & Silver: Significant Upfront Capital: Wheaton’s CSR Program: Strong margins Non-dilutive Partner CSR program • Non-dilutive High margins supports communities Cost predictability Enhances IRRs • Balance sheet friendly Cost predictability around mines improving High quality, diversified Balance sheet friendly partner’s social license portfolio • Flexible structure High quality portfolio Retains operational control Broad support in Canada Optionality in ounces and Cayman Islands • Retains operational control Optionality in ounces Expedited closing Very competitive dividend Carbon Neutral Tailored structure • While boosting IRRs PLUS a dividend Who is Wheaton Precious Metals? 4
HIGH-QUALITY ASSET BASE DIVERSIFIED PORTFOLIO Operating Mines (20) Development Projects (8) Partners: Vale Glencore Goldcorp Barrick Lundin Eldorado Hudbay Pan American Primero Capstone Alexco Sandspring Panoro Leagold Corporate Offices (2) Well-diversified with low political risk Who is Wheaton Precious Metals? 5
HIGH-QUALITY ASSET BASE LOW-COST, LONG-LIFE PRODUCTION 2017 – 2021 Avg. Forecast Production Mine Life of Operating Portfolio 1,2,3 by Cost Quartile 1,3 60 1% 50 11 Mine Life (years) 29% 40 14 30 20 27 10 70% 0 Proven & Measured & Inferred Probable Indicated Mineral Mineral Mineral Resources 340koz Au and 29Moz Ag Reserves Resources 99% of Wheaton’s production comes from assets in the lowest half of the cost curve And the portfolio has over 25 years of mine life based on reserves Who is Wheaton Precious Metals? 6
FIVE YEAR PRODUCTION FORECAST SUBSTANTIAL OPTIONALITY EXISTS Production Profile 1,4 1,200 Not included 80 in forecast Silver Equivalent Production (SEO) (Moz) Gold Equivalent Production (GEO) (Koz) 1,000 70 340koz Gold 60 29Moz Silver 800 50 600 40 30 400 20 200 10 0 0 2013 2014 2015 2016 2017E 2017-2021E Optionality Other San Dimas Peñasquito Constancia Sudbury Salobo Antamina Other Development Rosemont Pascua Lama Wheaton has over 350 thousand gold equivalent ounces of production optionality Who is Wheaton Precious Metals? 7
GROWTH AND OPTIONALITY SIGNIFICANT UPSIDE FROM EXISTING STREAM AGREEMENTS 1,2,5 Assets Status Description Approx. Production Ag Au Pascua Awaiting Awaiting reinstatement of permits 9 Moz (1 st 5-yr avg) Lama permits Underground option? Awaiting Record of Decision issued Rosemont 3 Moz 15 koz permits Only 404 Water Permit outstanding Other Salobo Expansion – base case +12Mtpa Peñasquito – PLP & CPP construction Keno Hill – Restart of operations and 115 - 150 3 - 5 Moz significant exploration success koz Toroparu & Cotabambas – Prefeasibility Navidad – Awaiting permits 15 - 17 130 - 165 Total Moz koz Who is Wheaton Precious Metals? 8
PREDICTABLE COSTS AND HIGH MARGINS Total Cash Cost and Cash Operating Margins per Ounce 1,6,7,8 $1,800 Gold Price (US$/0z) $1,500 $1,200 79% 81% $900 72% 69% 69% 66% 75% 71% $600 78% $300 $386 $393 $401 $362 $386 $391 $300 $300 $300 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017-2021E $40 Silver Price (US$/0z) 69% $30 $20 88% 87% 83% 81% 78% 74% $10 73% 74% 74% 71% 67% 47% $4.42 $4.71 $3.90 $3.90 $3.91 $3.94 $3.97 $3.97 $3.99 $4.06 $4.06 $4.14 $4.17 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017-2021E Total Cash Cost/oz Cash Operating Margins Predictable cash costs provide for industry leading margins and free cash flow Who is Wheaton Precious Metals? 9
PREDICTABLE COSTS AND HIGH MARGINS LOW G&A COSTS REFLECT SCALABILITY OF BUSINESS General and Administrative (“G&A”) Costs per Gold Equivalent Ounce 1,9 Equivalent Ounce $2,000 US$ per Gold $1,500 $1,000 $500 $55.27 $50.19 $40.13 $47.85 $53.56 $60.12 $46.44 $40.89 $0 2009 2010 2011 2012 2013 2014 2015 2016 Administrative Costs 10 69% 0.60% 0.50% 0.45% 0.45% 0.40% 0.35% 0.34% 0.40% 0.20% 0.00% Wheaton iShares Silver Sprott Physical SPDR Gold Silver Bullion Gold Bullion Precious Trust (SLV) Silver Trust Trust (GLD) Storage Fee Storage Fee Metals (PSLV) In 2016, G&A per gold equivalent ounce was at its lowest level since 2011 Who is Wheaton Precious Metals? 10
STRONG TRACK RECORD OF ORGANIC GROWTH EXPLORATION AND EXPANSION - GROWING R&R Reserves and Resources Growth 2,11 11.4M GEOs 14.5M GEOs 9.1Moz GEOs 8.3M GEOs or 799M SEOs or 1,017M SEOs or 634M SEOs or 581M SEOs ( M&I) (M&I) 24.2M GEOs 21.8M GEOs or 1,691M SEOs 1,526M SEOs or (P&P) (P&P) Total Acquired Total Mined Total Exploration & R&R Inferred Conversion Exploration and inferred conversion has increased resources by ~35% more than ounces mined, And significant exploration upside still exists across the stream portfolio! Who is Wheaton Precious Metals? 11
STRONG TRACK RECORD OF ACCRETIVE GROWTH EXPANSION & GROWTH THROUGH ACQUISITIONS Total attributable gold equivalent R&R per 100 shares since inception 2,11 9.0 8.0 7.0 M&I 6.0 P&P Gold Eq oz / 100 shares 5.0 Mined 4.0 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Significant growth in reserves and resources per share since inception Who is Wheaton Precious Metals? 12
STRONG BALANCE SHEET AMPLE CAPACITY TO CONTINUE GROWING Balance Sheet 1,12 Cash Flow Sensitivity Silver Gold (per ounce) $30 $1,800 $5,000 $25 $1,600 $4,000 $22 $1,475 (million US$) $20 $1,350 $3,000 $18 $1,200 $2,000 $1,000 $0 Est. Op. Revolving Cash Remaining Cash Flow Credit Capacity (2017-2021) Facility Strong cash flow readily services debt and provides capacity for growth Who is Wheaton Precious Metals? 13
Recommend
More recommend
