Wheaton forecasts 40% growth by 2028

Wheaton Precious Metals announced its 2023 production and sales results on Wednesday, projecting a 40% growth in the next five years.

Gold equivalent production for 2023 was within guidance at 620,177oz, with higher output at Vale's Salabo mine in Brazil due to higher throughput and higher grades at Hudbay's Constancia mine in Peru, partially offset by lower production from in Mexico, the Minto mine in Canada, and the Aljustrel project in Portugal. 

The precious metals streamer sold 537,608oz of gold equivalent in 2023. 

"In 2023, the importance of our diversified portfolio of high-quality, low-cost assets was underscored by Wheaton's ability to meet its annual production guidance, well within the projected range for the year, as strong and Constancia offset headwinds faced by other assets," chief executive Randy Smallwood said. 

"Moreover, in 2023, we expanded our portfolio by securing agreements for eight development assets, further enhancing our production profile and contributing to our five-year growth profile of 40%," Smallwood added.

Near-term growth

Wheaton's 2024 production guidance for 2024 is at 550,000-620,000oz of gold equivalent, at similar levels as last year. The streamer expects stronger production from Peñasquito and Vale's Voisey's Bay mine in Canada but lower production from Salobo, suspension of operations at Minto, and temporary halting at Aljustrel. 

However, Wheaton is targeting production of over 800,000oz of gold equivalent by 2028 and over 850,000oz between 2029 and 2033, a rise of around 37% and 45%, respectively.

"While our projected 2024 production is consistent with levels attained in 2023, we anticipate growth in the near term as several assets are slated to commence operations by year-end, with the expanded range in our 2024 guidance accommodating the typical variability associated with development project ramp-ups," Smallwood said.