Wheaton lowers production guidance on weather, Keno Hill termination
Wheaton Precious Metals' production of gold equivalent ounces dropped 14.6% compared to the year prior.
The royalty and streaming company (NYSE:WPM) announced its Q2 today.
The company had $149 million in adjusted net earnings.
Revenue declined 6.8% to $302 million.
Production woes and termination of a royalty agreement were listed as reasons for the drop. Wheaton lowered its guidance for the year.
"Given the proposed termination of the Keno Hill precious metal purchase agreement, lower production from Stillwater due to severe weather and flooding in the state of Montana in June as well as lower than expected production at Salobo, Wheaton is lowering production guidance," wrote the company. Alexco Resources, which ran Keno, was acquired by Hecla Mining earlier this year.
Wheaton's estimated attributable production for 2022 is now forecast to be approximately 640,000 to 680,000 gold equivalent ounces.
For the five-year period ending December 31, 2026, average annual production is expected to increase to 820,000 GEO's, primarily due to anticipated continued production growth from Salobo, Stillwater, Constancia, and Voisey's Bay as well as incremental production ounces from Marmato, Blackwater, Toroparu, Marathon, the Copper World Complex (formerly referred to as Rosemont) and Santo Domingo towards the latter end of the forecast period.