Wheaton Precious Metals Corp · TSX:WPM
Wheaton Precious Metals — Investor Presentation (September 2024)
67 slides from Wheaton Precious Metals's investor presentation, September 2024
Slide 1: The Premier Precious Metals Investment
The Premier Precious Metals Investment WHEATONPM.COM September 2024 TSX | NYSE | LSE: WPM
Slide 2: Cautionary Statements
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 meani
Slide 3: Who is Wheaton Precious Metals?
Who is Wheaton Precious Metals?
Slide 4: A Model Designed to Deliver Value to All Stakeholders
A Model Designed to Deliver Value to All Stakeholders Our Vision: To be the world’s premier precious metals investment vehicle Our Mandate: To deliver value through streaming to all our stakeholders Shareholders Partners Neighbours We deliver low risk, long term, By crystallizing value for We promot
Slide 5: Wheaton's Streaming Advantage
Wheaton’s Streaming Advantage Original Architects of the Streaming Model High-Quality Assets Commodity Price Leverage 93% of Wheaton’s current production comes from high Investors get leverage to the underlying commodities margin mines operating in the lowest half of their as delivery payments per o
Slide 6: The Wheaton Advantage
The Wheaton Advantage The Sustainable Option for Precious Metal Investing Of production from assets Development Momentum New investments into $540 Cash & cash equivalents Strong Balance Sheet High-Quality, Long-Life 93% in the lowest half of the 8 assets in 2023 at June 30, 2024 Strong Corporate cos
Slide 7: Wheaton's Global Portfolio
Wheaton’s Global Portfolio 5 Vancouver Office 3 Cornerstone Assets 1 Salobo, Brazil 2 Antamina, Peru 3 Peñasquito, Mexico 2 1 4 Constancia, Peru 4 5 Blackwater, Canada 6 6 Platreef, South Africa 18 Operating Mines 27 Development Projects & Other Well-diversified portfolio with low political risk WHE
Slide 8: Our Partners
Our Partners Capstone Copper Newmont Artemis Gold Hudbay Rio2 Silvercorp Aris Mining B2Gold Eldorado Vale First Majestic Sibanye-Stillwater Barrick Waterton Copper Equinox Gold Ivanhoe Mines BMC Minerals Glencore Almina Generation Mining Pan American Silver Kutcho Copper Panoro Minerals Dalradian Go
Slide 9: Leading with Quality: Low-cost, Long-life Asset Base
Leading with Quality: Low-cost, Long-life Asset Base Assets That Can Withstand Commodity Price Fluctuations 2024 Forecast Production Mine Life of Operating Portfolio1,2,8 by Cost Quartile1,3 70 4% 3% 60 50 24 Mine Life (years) 22% 40 12 30 First Second 20 71% Third 28 10 Fourth 0 Proven & Probable M
Slide 10: The Streaming Industry's Most Robust Growth Profile
The Streaming Industry’s Most Robust Growth Profile Pathway to Long-term, Organic Growth1,25 1,000 2023 2024 Actuals: Guidance: 2029 – 2033 Guidance: 900 850,000 GEOs GEOs: GEOs: 584 Koz 550-620 Koz 800 Gold Equivalent Production (GEO) (Koz)4 Growing to >800,000 700 GEOs by 2028 12.2 Koz 12.0-15.0 K
Slide 11: 5-Year Production Outlook
5-Year Production Outlook Forecasting Approximately 40% Production Growth by 2028 Growth from Other Development Assets 900 Growth from 800koz Marathon Assets that are: 800 Copper World ~40% 700 Operating: Gold Equivalent Ounces (koz) Growth 584koz Salobo Permitted: 600 Antamina Peñasquito In-Constru
Slide 12: Predictable Costs and High Margins
Cash Operating Costs Predictable Costs and High Margins Total Cash Cost and Cash Operating Margins per Ounce 1,5,6,7 Gold Price (US$/oz) $3,000 $2,000 76% 75% 74% 77% $1,000 72% 69% 66% 69% 69% 68% 70% $386 $386 $393 $391 $395 $409 $421 $426 $459 $472 $455 $439 $0 2013 2014 2015 2016 2017 2018 2019
Slide 13: Strong Balance Sheet
Strong Balance Sheet Ample Capacity to Fund Future Growth % Increase Cash Flow Sensitivity Au Price Ag Price from Base $9,000 to Commodity Price $US/oz $US/oz Balance Sheet as of June 30, 2024 Case $8,000 65% 50% $3,450 $37.50 $7,000 30% leverage 46% 35% $3,105 $33.75 $6,000 26% 20% $2,760 $30.00 Mi
Slide 14: Margins and Cash Flow
Margins and Cash Flow Leverage to Higher Commodity Prices 19,21 Over $2 billion of operating cash flow in excess of Wheaton’s original expectation during the last upswing in the commodity prices cycle Excess Cash Flow Initial Cash Flow Estimate Wheaton’s 2023 production volumes are 65 percent higher
Slide 15: Accretive Deployment of Capital
Accretive Deployment of Capital $12 As of June 30, 2024, since inception, the Company has recouped over 100% of its initial upfront investments26 $10 $8 Billions ($US) Upfront Payment Capital Earned $6 $4 $2 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 16: Progressive and Sustainable Dividend
Progressive and Sustainable Dividend Dividend Growth Since 2015 $0.70 $0.6232 $0.60 $0.60 Dividend per share ($US) $0.57 Quarterly Dividend Policy $0.60 $0.50 $0.42 o Adopted a progressive dividend policy, $0.40 $0.33 $0.36 $0.36 marked by an increase to our 2024 annual $0.30 dividend $0.20 $0.21 $0
Slide 17: Mining Partners
Mining Partners je) y 2 (ra oO S o [aa]
Slide 18: Benefits to Mining Partners
Benefits to Mining Partners Partnering with Wheaton provides additional benefits debt and equity do not offer WHEATON Debt Equity PRECIOUS METALS Non-dilutive form of funding Initial value creation for both parties Improves project IRR Crystalize future production of mining partner Partnership foste
Slide 19: Precious Metals Streaming
Precious Metals Streaming Benefits to Mining Partners Initial Value Creation Value Created by Streaming The market values precious Value Created by Streaming metal in a streaming Streamer Market Value company’s portfolio greater than precious metal produced by a traditional miner or Producer Market
Slide 20: Benefits to the Community
‘a . WwW 2 eae Benefits to the STREAMING Community
Slide 21: Sustainability a Core Value
Strong Community Governance Investment Programs & Policies Sustainability a Core Value The stronger our communities are, the stronger our partners are, the stronger we are. Sustainability Strategy aligned with the United Nations’ Sustainable Development Goals which Includes goals and targets related
Slide 22: Community Investment Program
Community Investment Program Making an Impact Health & Climate & Community Education Wellness Nature Development Community Investment Budget (1.5% of average net income of previous four years) 1% 0.5% Partner Local (Mining Communities) (Vancouver & Cayman) Wheaton supports over 100 different charita
Slide 23: Recognition for Sustainability Performance
Recognition for Sustainability Performance Top-rated Among ESG Analysts23,24 o Established a Sustainability-linked element in connection with existing undrawn US$2 billion revolving credit facility Strong Partner ESG Performance o Taking Action on Climate • 97% of production from Mining Operations •
Slide 24: Why Invest in Wheaton Precious Metals?
Why Invest in Wheaton Precious Metals?
Slide 25: Why Every Portfolio Should Have Gold Exposure
Why Every Portfolio Should Have Gold Exposure Gold and Various Currencies Measured in Gold 2002-2023 Long-Term Store of Value: • Gold has been used as a store of value for thousands of years. • During geopolitical turmoil or financial crises, investors often flock to gold as a haven for their wealth
Slide 26: The World's Premier Precious Metals Investment
The World’s Premier Precious Metals Investment Wheaton has a high-quality stream portfolio ~ 99% and is the only streamer with ~99% of revenue from precious metals production WHEATON OTHER BULLION PRECIOUS METAL PRECIOUS METALS STREAMERS /ETFS MINERS ~99% of revenue from precious metals12 No capital
Slide 27: Wheaton Versus Other Streamers
Wheaton Versus Other Streamers Precious Metals Leading Revenue Generation 2023 Revenue($M) Mix by Streamer12 Franco Nevada Royal Gold Wheaton $40 $127 $339 $60 $73 $70 $19 $15 $208 $784 $462 $644 78% precious metals 88% precious metals 99% precious metals Total $606M Total $1,219M Total $1,016M PM’s
Slide 28: Wheaton's track record
Wheaton’s track record As of June 30, 2024 ~$10.4 invested in streams to date19 28 of Proven and Probable Reserve mine BILLION YEARS life remaining1,2,3 ~$10.7 cash flow generated to date20 AA High ratings recognizing Wheaton’s BILLION dedication to sustainability23,24 ~$2.2 declared in dividends to
Slide 29: Consistently Outperforming Gold and Silver
Consistently Outperforming Gold and Silver Total Average Rolling Multi-Year Return Comparison as of Sept 9, 202413 150% Average Total Return 100% 50% 0% 1-Year 3-Year 5-Year 10-Year -50% Gold Silver Philadelphia Gold & Silver Index (XAU) VanEck Vectors Gold Miners ETF (GDX) Wheaton Wheaton’s strong
Slide 30: Wheaton Checks all the Boxes
If You Like Precious Metals… Leverage to increasing Significant organic growth precious metals prices Significant expansion & Dedication to sustainability exploration potential High-quality, long-life asset base Progressive dividend Cost predictability Wheaton Checks all the Boxes WHEATON PRECIOUS M
Slide 31: Contact
Contact INVESTOR RELATIONS CONNECT WITH US Tel: 604-684-9648 @Wheaton_PM Toll Free: 1-844-288-9878 Email: info@wheatonpm.com @WheatonPM TRANSFER AGENT @Wheaton Precious Metals Corp. TSX Trust Company (Canada) Toll Free: 1-800-387-0825 International: 1-416-682-3860 Email: shareholderinquiries@tmx.com
Slide 32: Appendix and Endnotes
Appendix and Endnotes
Slide 33: What is Gold247?
What is Why now? Gold247? The World Gold Council's strategic vision for Gold has a systemic role in the world's economy. The transforming the global gold market and elevating gold Gold 247 initiatives way gold is traded, and supply chain management into the mainstream of financial markets. needs to
Slide 34: Streaming Throughout the Cycle
Streaming Throughout the Cycle Some Days you Reap, Some Days you Sow… Santo Domingo Platreef /KZK Blackwater Curipamba Curraghinalt Cozamin Marathon Cangrejos Constancia Ag Marmato $2,500 $60 Goose Salobo 1/Sudbury Voisey's Bay Constancia Au 777 $50 Stillwater Toroparu $2,000 Kutcho Pascua Lama Rose
Slide 35: Company Acquisition History
Company Acquisition History 20 20 20 18 07 12 20 Salobo II Kutcho 16 20 Antamina 20 San Dimas Silver Los Filos Zinkgruvan Pascua-Lama Silverstone 10 Resources: • Minto 17 • Neves-Corvo Salobo I 20 20 • Aljustrel Sudbury 20 • Navidad Toroparu Constancia Gold 04 09 Constancia Silver 20 15 13 Voisey’s
Slide 36: Company Acquisition History
Company Acquisition History 20 20 20 Marmato (amended in 2022) 21 22 Black Pine (royalty) Cangrejos Blackwater (expansion) 24 DeLamar (royalty) Mineral Park Platreef Kudz Ze Kayah Curraghinalt 20 Mt Todd (royalty) 20 Curipamba Marathon 20 Goose 23 Cozamin Santo Domingo Fenix Blackwater (amended in 2
Slide 37: Company Acquisition History
Company Acquisition History PRECIOUS METAL INTEREST OPERATOR LOCATION UPFRONT ATTRIBUTABLE PRODUCTION PRODUCTION PAYMENT DATE CONSIDERATION (USD AS OF MARCH 31, 20241 THOUSANDS) GOLD SILVER GOLD SILVER 1 San Dimas2 First Majestic Mexico $ 25% 25% paid in gold $631 15-OCT-04 2 Los Filos Equinox Mexic
Slide 38: Company Acquisition History
Company Acquisition History PRECIOUS METAL INTEREST OPERATOR LOCATION UPFRONT CONSIDERATION ATTRIBUTABLE PRODUCTION PRODUCTION PAYMENT DATE (USD THOUSANDS) AS OF MARCH 31, 20241 GOLD SILVER OTHER GOLD SILVER OTHER 16 Antamina10 Glencore Peru $ 900,000 33.75% 20% of Spot 3-NOV-15 17 Cotabambas11 Pano
Slide 39: Company Acquisition History: Notes to Timeline
Company Acquisition History Notes to Timeline 1. Subject to an annual inflationary adjustment with the exception of Sudbury. 2. Under the terms of the San Dimas PMPA, the Company is entitled to an amount equal to 25% of the payable gold production plus an additional amount of gold equal to 25% of th
Slide 40: Company Acquisition History: Notes to Timeline
Company Acquisition History Notes to Timeline 15. Once Wheaton has received 10 million ounces of silver under the Cozamin PMPA, the Company’s attributable silver production will be reduced to 33% 16. Once the Company has received 285,000 ounces of gold under the Santo Domingo PMPA, the Company’s att
Slide 41: Revenue Exposure
Revenue Exposure Highly Diversified Portfolio 2024-2028E Revenue Mix1,4 2% 1% 1% 2% 0.3% 1% 2% 5% Brazil Mexico 11% 34% Peru Gold Europe 36% Silver Canada Palladium 13% USA Cobalt 60% Colombia Platinum Ecuador South Africa 12% 20% Guyana WHEATON PRECIOUS METALS 41
Slide 42: Strong Track Record Of Organic Growth
Strong Track Record Of Organic Growth Exploration and Inferred Conversion Reserves and Resources Growth2,3,8 13.5M GEOs 13.9M GEOs 9.2M GEOs (M&I) 15.2M GEOs (M&I) 28.0 GEOs (P&P) 21.5M GEOs (P&P) Total Acquired Total Exploration & Total Mined R&R Inferred Conversion Exploration and inferred convers
Slide 43: Strong Track Record of Accretive Growth
Strong Track Record of Accretive Growth Expansion & Growth Through Exploration & Acquisitions 10.0 Total attributable gold equivalent ounces per 100 shares since inception2,8 M&I P&P Mined GEOs 8.0 Gold Eq oz / 100 share 6.0 4.0 2.0 0.0 -2.0 -4.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 201
Slide 44: Accretive Growth: Blackwater Project
Accretive Growth Asset Overview1 Blackwater Project Operator Artemis Location Canada Stream Gold and Silver Date of Acquisition December 13, 2021 (Amended June 14, 2023) 50% of Ag until 17.8 Moz, thereafter 33% for life of mine, & 8% of Au until 464 koz thereafter 4% Stream Parameters for life of mi
Slide 45: Accretive Growth: Platreef Project
Accretive Growth Asset Overview1 Platreef Project Owner Ivanhoe Mines Location South Africa Stream Gold, Palladium & Platinum (“PGMs”) Date of Acquisition Nov 15, 2023 Upfront Consideration $412 million Gold: 62.5% of payable gold production until 218,750 oz delivered, dropping to 50%. Stream Parame
Slide 46: Accretive Growth: Mineral Park Project
Accretive Growth Asset Overview1 Mineral Park Project Operator Waterton Copper Corp Location Arizona, USA Stream Silver Date of Acquisition Oct 24, 2023 Stream Parameters 100% of the payable Ag $115 million in four payments during construction (three installments of $25 million and a final Upfront C
Slide 47: Attributable Reserves & Resources - Gold
Attributable Reserves & Resources - Gold Total Proven & Probable DECEMBER 31, 2023 (6) DECEMBER 31, 2022 PROVEN PROBABLE PROVEN & PROBABLE PROVEN & PROBABLE TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED ASSET MT G/T / % MOZ / MLBS MT G/T / % MOZ / ML
Slide 48: Attributable Reserves & Resources - Gold
Attributable Reserves & Resources - Gold Total Measured, Indicated and Inferred MEASURED INDICATED MEASURED & INDICATED INFERRED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED GRADE CONTAINED ASSET MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS G/T / % MOZ
Slide 49: Attributable Reserves & Resources - Silver
Attributable Reserves & Resources - Silver Total Proven & Probable PROVEN PROBABLE PROVEN & PROBABLE PROVEN & PROBABLE TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED ASSET MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS MT G/T / % MO
Slide 50: Attributable Reserves & Resources - Silver
Attributable Reserves & Resources - Silver Total Measured, Indicated and Inferred MEASURED INDICATED MEASURED & INDICATED INFERRED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED GRADE CONTAINED ASSET MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS MT G/T / % MOZ / MLBS G/T / % M
Slide 51: Attributable Reserves & Resources - Other
Attributable Reserves & Resources - Other Total Proven & Probable DECEMBER 31, 2023 (6) DECEMBER 31, 2022 PROVEN PROBABLE PROVEN & PROBABLE PROVEN & PROBABLE TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED TONNAGE GRADE CONTAINED ASSET MT G/T / % MOZ / MLBS MT G/T / % MOZ / M
Slide 52: Attributable Reserves & Resources
Attributable Reserves & Resources 1. All Mineral Reserves and Mineral Resources have been estimated in accordance with the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards for Mineral Resources and Mineral Reserves and National Instrument 43-101 – Standards for Disclosure
Slide 53: Attributable Reserves & Resources
Attributable Reserves & Resources 7. Process recoveries are the Company’s estimated average percentage of gold, silver, palladium, platinum, or cobalt in a saleable product (doré or concentrate) recovered from mined ore at the applicable site process plants. 8. Mineral Reserves are estimated using a
Slide 54: Attributable Reserves & Resources
Attributable Reserves & Resources 9. Mineral Resources are estimated using appropriate recovery rates and the following commodity prices: a. Aljustrel mine – 3.0% zinc cut-off for Feitais, Moinho and St João mines and the Estação project. b. Antamina mine - $6,000 per hour of mill operation cut-off
Slide 55: Attributable Reserves & Resources
Attributable Reserves & Resources 9. Cont. ee. San Dimas mine – 165 grams per tonne silver equivalent cut-off assuming $1,800 per ounce gold and $25.00 per ounce silver. ff. Santo Domingo project - 0.125% copper equivalent cut-off assuming $3.50 per pound copper, $1,300 per ounce gold and $99 per to
Slide 56: Attributable Reserves & Resources
Attributable Reserves & Resources 21. The Copper World Complex Mineral Resources and Mineral Reserves do not include the Leach material. 22. The Voisey’s Bay PMPA provides that Vale will deliver 42.4% of the cobalt production until 31 million pounds are delivered to the Company and 21.2% of cobalt p
Slide 57: Endnotes
Endnotes 1. 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 applicable Canadian securities legislation concerning the business, operations and fina
Slide 58: Endnotes
Endnotes (Cont.)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 “
Slide 59: Endnotes
Endnotes (Cont.) • risks related to environmental regulations; • the ability of Wheaton and the Mining Operations to obtain and maintain necessary licenses, permits, approvals and rulings; • the ability of Wheaton and the Mining Operations to comply with applicable laws, regulations and permitting r
Slide 60: Endnotes
Endnotes Forward-looking statements are based on assumptions management currently believes to be reasonable, including but not limited to: • 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
Slide 61: Endnotes
Endnotes 2. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: The information contained herein has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United S
Slide 62: Endnotes
Endnotes 12. Based on disaggregated revenue, 2023 full year financials as of year end December 31, 2023. 13. Wheaton Precious Metals’ Total Return averaged over various time horizons versus gold, silver, the Philadelphia gold and silver index (XAU) and the Van Eck Vectors Gold Miners ETF (GDX) over
Slide 63: Endnotes
Endnotes 26. Not included in Wheaton’s long-term forecast and instead classified as ‘optionality’, includes potential future production from Pascua Lama, Navidad, Cotabambas, Metates and additional potential expansions at Salobo outside of the Salobo III mine expansion project. 27. Capital earned in
Slide 64: Endnotes: Non-IFRS measures
Endnotes: Non-IFRS measures Wheaton has included, throughout this document, certain non-IFRS performance measures, including (i) adjusted net earnings and adjusted net earnings per share; (ii) operating cash flow per share (basic and diluted); (iii) average cash costs of gold, silver and palladium o
Slide 65: Endnotes: Non-IFRS measures
Endnotes: Non-IFRS measures ii. Operating cash flow per share (basic and diluted) is calculated by dividing cash generated by operating activities by the weighted average number of shares outstanding (basic and diluted). The Company presents operating cash flow per share as management and certain in
Slide 66: Endnotes: Non-IFRS measures
Endnotes: Non-IFRS measures iii. Average cash cost of gold, silver and palladium on a per ounce basis and cobalt on a per pound basis is calculated by dividing the total cost of sales, less depletion, by the ounces or pounds sold. In the precious metal mining industry, this is a common performance m
Slide 67: Endnotes: Non-IFRS measures
Endnotes: Non-IFRS measures iv. Cash operating margin is calculated by adding back depletion to the gross margin. Cash operating margin on a per ounce or per pound basis is calculated by dividing the cash operating margin by the number of ounces or pounds sold during the period. The Company presents
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