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Wheaton Precious reports record output

Top metals streamer Wheaton Precious Metals has beaten its full-year 2019 guidance for gold-equivalent output at 690,000oz with a record annual result of 706,900oz, up 2.5% year-on-year.
Wheaton Precious reports record output Wheaton Precious reports record output Wheaton Precious reports record output Wheaton Precious reports record output Wheaton Precious reports record output

Wheaton Precious Metals shares have risen to a new 12-month high on record gold-equivalent output in 2019 and a strong five-year production outlook

The Vancouver-based company said production from portfolio operations comprised 406,604oz gold and 22,5Moz silver, with palladium output just 7oz shy of guidance at 21,993oz.

The company said a strong year from Salobo more than offset reduced production from Peñasquito after a challenging year at the mine.

In 2020, gold production is forecast to remain strong primarily driven by Salobo and San Dimas. Silver production in 2020 should be stable as growth from Peñasquito is expected to be partially offset by slight decreases at Antamina and Constancia due to mine planning. Palladium production is expected to increase in 2020 as the Blitz project at the Stillwater mine continues to ramp up

The company has guided for 2020 production of 685,000-725,000oz gold-equivalent.

Wheaton Precious also reported its five-year outlook calling for production growth from Peñasquito, Constancia and Stillwater as well as the start of the Voisey's Bay cobalt stream in 2021. Wheaton will receive from Vale an amount of cobalt equal to 42.4% of the Voisey's Bay mine cobalt output.

BMI Capital Markets said it appeared earlier-stage investments were bearing fruit.

"The company also reported average annual gold-equivalent production for 2020-2024 of 750,000oz, well-ahead of 2019's 707,000oz and 2020's guidance range of 685,000-725,000oz, demonstrating the company's growing production profile in future years. A timely example of this is at Constancia, given Hudbay's recent agreement on Pampacancha surface rights," said analyst Jackie Przybylowski.

Wheaton Precious remains the bank's top choice for streaming-royalty companies, with the analyst maintaining an ‘outperform' rating with a 12-month target price of $37.00 per share.

Wheaton will report full year and December-quarter earnings on March 11.

Wheaton Precious shares trading in New York (NYSE:WPM) achieved a fresh 12-month high early on Friday at US$33.17, nudging its market value closer to the $15 billion mark.