Randy Smallwood: Gold Never More Important, Wheaton Gearing Up for Deals

TL;DR

Wheaton Precious Metals CEO Randy Smallwood discusses the company's Q3 results, highlights the progress at the Salobo mine, and outlines the positive growth prospects for the company. He also emphasizes the challenges in the mining industry, such as permitting delays and the need for higher metal prices.

Transcript

thank you I'm Charlotte McLeod with the investing News Network and here today with me is Randy Smallwood president and CEO of Wheaton precious metals thank you for joining me once again online it's always great to have you thank you Charlotte always appreciate the opportunity of course and so we're speaking just the day after Wheaton released its t... Read More

Key Insights

• ❓ Wheaton Precious Metals expects significant growth in the next 10 years, with over 30% growth forecasted.
• 👶 The company is actively seeking new streaming opportunities, as streaming capital is attractive in today's market compared to equity.
• ✋ Higher metal prices will benefit the industry and attract more capital, but the strong US dollar is currently a headwind for gold.
• 🙈 Copper is seen as a critical metal for the green transition, and Wheaton Precious Metals is bullish on copper and other commodities.
• 🤲 Permitting delays and challenges in getting projects to production pose a risk for the mining industry.
• 📼 Wheaton Precious Metals is focused on funding single asset development companies and expects more acquisitions in 2023 to further enhance its production profile.

Questions & Answers

Q: What were the highlights of Wheaton Precious Metals' Q3 results?

The Q3 results highlighted the challenges faced at the Salobo mine but also indicated that the worst is behind, with improvements in performance expected. The completion of the third line at the Salobo mine is projected to increase gold production by 20-25%.

Q: Is Wheaton Precious Metals on track to meet its adjusted guidance for 2022?

Yes, the company is in good shape and expects better production from both the Salobo and Constancia mines in the fourth quarter, positioning them for an impressive year-end result.

Q: Can you provide an update on the Stillwater mines and the flooding incident?

The Stillwater mine experienced a shutdown for about seven weeks due to flooding, but operations at the East Boulder mine continued. Sabani Stillwater has revised its guidance on the blitz project, affecting expectations for the next few years. However, the long-term outlook for the mine remains strong.

Q: What are the exciting development assets for Wheaton Precious Metals?

Projects such as Sabina and Artemis in Canada, Adventus in Ecuador, and Merdeka and Pera at Marmato and Toqui Peru, respectively, are moving forward and expected to elevate gold production in Canada to a new level. These projects offer high margins and solid progress.

Summary & Key Takeaways

• Wheaton Precious Metals reported its Q3 results, with a focus on the performance of the Salobo mine, which experienced production challenges but is expected to return to full capacity soon.

• The company expects a significant increase in gold production with the upcoming completion of the third line at the Salobo mine, resulting in a 20-25% increase in total gold production.

• Wheaton Precious Metals has a strong growth forecast, with over 30% growth in the next 10 years and a focus on construction projects and corporate development opportunities.