After the close on February 21, Wheaton Precious Metals (WPM) told investors and traders that 2018 production exceeded previous guidance and that production in 2019 is forecast at 365,000 ounces of gold, 24.5 million ounces of silver, and 22,000 ounce of palladium. That’s the equivalent of 690,000 ounces of gold production. For the five year period ending in 2023 the company estimates that average annual gold equivalent production will amount to 750,000 ounces. Average production is expected to increase due to production growth from the Peñasquito, Constancia and Stillwater (acquired in July 2018) mines as well as the beginning of a production-sharing agreement with Vale (VALE) that begins in 2021. (According to that agreement Wheaton is entitled to receive 42.4% of cobalt production from Vale’s Voisey Bay mine. Which makes Wheaton Precious Metals one of the few plays on this metal critical to the current generation of rechargeable batteries.)
Shares of Wheaton Precious Metals were down 1.18% in the regular February 21 session to $21.75 but climbed 1.10% in after-hours trading.
The stock, a member of my Volatility Portfolio on JubakAM.com and JugglingWithKnives.com and , is up 14.41% in the last month and is closing in on its July 6, 2018 high at $22.68. That level is likely to represent some resistance for the stock.
The shares are down 2.33% since I added them to the Volatility Portfolio on June 15, 2018.
