Wheaton Precious Metals Corp · TSX:WPM
Wheaton Precious Metals — Silver Wheaton — IPO Roadshow (March 2015)
25 slides from Wheaton Precious Metals's IPO roadshow presentation, Mar 2, 2015
Slide 1: Salobo: Adding to a Cornerstone
SALOBO ADDING TO A CORNERSTONE MARCH 2, 2015 A Canadian preliminary short form prospectus containing important information relating to the securities of Silver Wheaton Corp. described in this document has not yet been filed with the securities regulatory authorities in each of the provinces of Canad
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 2 CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS The information contained herein 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 applica
Slide 3: Cautionary Note Regarding Forward Looking-Statements (continued)
3 CAUTIONARY NOTE REGARDING FORWARD LOOKING-STATEMENTS (continued) reassessment by the Canada Revenue Agency (“CRA”), the estimate of the carrying value of the Precious Metal Purchase Agreements (as defined in the Canadian Prospectus) and such other assumptions and factors as set out herein. Althoug
Slide 4: Salobo Adding Gold Ounces from a Low-Cost & Long-Life Mine
4 SALOBO ADDING GOLD OUNCES FROM A LOW-COST & LONG-LIFE MINE Provides immediate cash flow An additional 25% of the life-of-mine gold production from the Salobo mine from and after January 1, 2015 Enhances production growth profile Salobo mine ramping up throughput from 12Mtpa to 24Mtpa Potential for
Slide 5: Salobo Transaction Overview
5 SALOBO TRANSACTION OVERVIEW Salobo Stream Amending the 2013 transaction Increasing gold stream from 25% to 50% of life-of-mine gold Production from the 2nd 25% to begin accruing January 1, 2015 Consideration Cash payment of US$900 million paid on closing Production Payments Lesser of (i) US$400/oz
Slide 6: Salobo Asset Overview
SALOBO ASSET OVERVIEW Primary Metals – Cu (82%) / Au (18%) Overview The Salobo mine is the largest copper deposit in Brazil with over a billion tonnes of mineral reserves (>40yrs mine life) Commissioned in Nov 2012 at 12Mtpa Expanded to 24Mtpa in June 2014 Infrastructure - The mine is ideally locate
Slide 7: Vale: A Partner with Global Presence
Vale Corporate Profile: One of the largest mining companies globally 70 years of mining history Diversified by geography: a truly global company with operations in 37 countries Diversified by commodity: iron ore, nickel, copper, coal, etc. Solid Financial Position: ~US$38 billion market cap* 2014 gr
Slide 8: Salobo Immediate Production and Growth
SALOBO IMMEDIATE PRODUCTION AND GROWTH 8 Mine Type Open Pit IOCG Deposit Location Para, Brazil Startup (12Mtpa total) Expansion (24Mtpa total) Nov 2012 June 2014 Estimated Avg. Stream/yr (25%) 10 years* 30 years 70 koz Au (5.0 Moz AgEq) 60 koz Au (4.3 Moz AgEq) Additional P&P Reserves** 3.3 Moz Au A
Slide 9: Salobo Mining, Processing & Infrastructure
SALOBO Mining, Processing & Infrastructure Conventional open pit mining ~1.4:1 life-of-mine strip ratio expected Current mill capacity 24 Mtpa Extensive reserves and exploration potential suggests greater throughput expansion potential Conventional comminution – flotation flow sheet producing gold-r
Slide 10: Salobo First Cost-Quartile Production
SALOBO FIRST COST-QUARTILE PRODUCTION 10 Salobo is in the first cost-quartile Copper Mine Pro Rata Costs Curve Dataset:- 2014 Q4 Grouping:- Mine Year:- 2015 Ranked By:- Cash Cost (C1)
Slide 11: Financing the Acquisition & Amendment to Credit Facility
SALOBO FINANCING THE ACQUISITION & AMENDMENT TO CREDIT FACILITY 11 To pay the initial upfront cash payment of US$900 million, Silver Wheaton intends to use cash on hand together with the proceeds of an equity offering The Company may also use amounts borrowed under its revolving credit facility Silv
Slide 12: Salobo Acquisition Is Expected to Be Accretive
Salobo upfront payment of US$900 million represents 8.7% of Silver Wheaton’s pro-forma Enterprise Value** SALOBO ACQUISITION IS EXPECTED TO BE ACCRETIVE 12 *Attributable Production, Reserves, and Resources estimates based on silver equivalent assuming 72:1 Ag:Au ratio; Cash flow based on silver and
Slide 13: Silver Wheaton: Adding to Our Portfolio
SILVER WHEATON: ADDING TO OUR PORTFOLIO
Slide 14: Salobo Further Diversifies Production
SALOBO FURTHER DIVERSIFIES PRODUCTION 14 *Silver equivalent basis assuming a 72:1 Ag:Au ratio Over the next five years, gold as a percentage of forecasted production is expected to grow to over 40% 2015 Forecast Production 2019 Forecast Production Gold Silver 230koz Au 325koz Au 38% 62% 46% 54%
Slide 15: High-Quality Asset Base Diversified Portfolio
HIGH-QUALITY ASSET BASE DIVERSIFIED PORTFOLIO 15 Operating Mines (21) Development Projects (6) Partners: Vale Glencore Goldcorp Barrick Lundin Eldorado Hudbay Pan American Primero Capstone Alexco Sandspring
Slide 16: Salobo Increased Reserves and Resources
16 *Ag equivalent basis assuming a 72:1 Ag:Au ratio; Please refer to the Reserve and Resource tables in the appendix of this presentation for full disclosure of reserve and resource estimates.. Reserves Ag equivalent oz* Reserves Measured & Indicated 20% Proven & Probable silver equivalent reserve o
Slide 17: Five Year Production Growth Forecast
FIVE YEAR PRODUCTION GROWTH FORECAST ADDING TO OUR INDUSTRY-LEADING GROWTH PROFILE 17 Silver Equivalent Production* (Moz) Production forecast of 51Moz silver equivalent in 2019 with additional Salobo Stream *Assumes a Ag:Au ratio of 72:1; **Comprised of the Veladero, Lagunas Norte and Pierina mines;
Slide 18: The Salobo Deal Summary
18 THE SALOBO DEAL SUMMARY Immediate cash flow Operating partner with global presence 1st cost-quartile mine Accretive Further diversifies production
Slide 19: Appendix
APPENDIX
Slide 20: Attributable Reserves and Resources: Total Proven & Probable
ATTRIBUTABLE RESERVES AND RESOURCES TOTAL PROVEN & PROBABLE 20 Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Mt g/t Moz Mt g/t Moz Mt g/t Moz SILVER Peñasquito (25%) (14) Mill 84.1 33.3 90.0 52.7 25.0 42.4 136.7 30.1 132.4 53-65% Heap Leach 10.9 31.7 11.1 11.5 25.0 9.2 22.4
Slide 21: Attributable Reserves and Resources: Total Measured & Indicated
ATTRIBUTABLE RESERVES AND RESOURCES TOTAL MEASURED & INDICATED 21 Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained Mt g/t Moz Mt g/t Moz Mt g/t Moz SILVER Peñasquito (25%) (14) Mill 34.4 26.1 28.9 91.7 21.5 63.5 126.2 22.8 92.4 Heap Leach 5.1 19.1 3.1 24.1 16.7 13.0 29.2 17.1
Slide 22: Attributable Reserves and Resources: Total Inferred
ATTRIBUTABLE RESERVES AND RESOURCES TOTAL INFERRED 22 Tonnage Grade Contained Mt g/t Moz SILVER Peñasquito (25%) (14) Mill 4.4 19.5 2.7 Heap Leach 6.1 13.7 2.7 San Dimas (10, 14) 7.3 309.5 73.0 Pascua-Lama (25%) (14) 4.9 20.1 3.2 Yauliyacu (11, 12) 5.0 178.7 28.7 777 (13, 14) 0.8 30.6 0.8 Neves-Corv
Slide 23: Attributable Reserves and Resources Footnotes
ATTRIBUTABLE RESERVES AND RESOURCES FOOTNOTES 23 All Mineral Reserves and Mineral Resources have been calculated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum - CIM Standards on Mineral Resources and Mineral Reserves and National Instrument 43-101 – Standards for Disc
Slide 24: Attributable Reserves and Resources Footnotes (continued)
ATTRIBUTABLE RESERVES AND RESOURCES FOOTNOTES (CONTINUED) 24 Cozamin mine - $42.50 per tonne NSR cut-off assuming $20.00 per ounce silver, $2.50 per pound copper, $0.85 per pound lead and $0.80 per pound zinc. Los Filos mine - $1,300 per ounce gold and $22.00 per ounce silver. Salobo mine – 0.253% c
Slide 25: Attributable Reserves and Resources Footnotes (continued)
ATTRIBUTABLE RESERVES AND RESOURCES FOOTNOTES (CONTINUED) 25 The Company’s attributable Mineral Resources and Mineral Reserves for the Lagunas Norte, Veladero, Cozamin and Yauliyacu silver interests, in addition to the Sudbury and 777 gold interests, have been constrained to the production expected