Q4 2019 Earnings Call
Welcome to wait precious metals 2019 fourth quarter and full year results conference call.
All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question and answer session.
If he would like to ask a question. During this time simply press Star then the number one on your telephone keypad.
If you would like to withdraw your question. Please press the pound Keith.
I would like to remind everyone that this conference call is being recorded on Thursday March 12, 2020 at 11 am Eastern time.
I'll now turn the conference over to Mr. Mr., Patrick <unk> Senior Vice President of Investor Relations. Please go ahead.
Thank you operator, good morning, ladies and gentlemen, and thank you for participating in today's call I'm joined today by Randy Smallwood, Wheaton precious metals, President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, and Haithum hold My senior Vice President corporate development I'd like to bring to your attention that some of the commentary on today's call may contain forward looking statements there can be no assurances that.
Forward looking statements will prove to be accurate as actual results and future events could differ materially from those anticipate in such statements. In addition to our financial results cautionary note regarding forward looking statements. Please refer to the fact entitled description of the business risk factors and wait and see annual information form and the risks identified under risk and uncertainties in management's discussion and analysis both available.
Unseat oriented we use form 40 F and womens form 6K, both on par with your Securities and Exchange Commission.
These documents together with the Q4 2019, Mdna and the press release from last night, So nothing material assumptions in risk factors that could cause actual results to differ including amongst others fluctuations or the price of commodities. The absence of control over mining operations from which we purchase is precious metals and risks related to such mining operations continued ability we.
It's counterparties satisfy their obligations under precious metal purchase agreements and the impact of any material change in fact larger students on the theory settlement. It should be noted that all figures refer to on todays call or in U.S. dollars unless otherwise noted in addition reference to Wheaton or Wheaton precious metals on this call include weaken precious metals Corp, and or its wholly owned subsidiary subsidy.
Areas as applicable now I'd like turn the call over to Randy Smallwood, our President and Chief Executive Officer.
Thank you Patrick and good morning, ladies and gentlemen, thank you for joining us today to discuss weakness fourth quarter and yearend results of 2019.
And especially in light of the colors of the day today I'm pleased to report the Wheaton precious metals is delivered very strong results in 2019.
For the first time in the company's history, we produced over 400000 ounces of gold.
And that is in addition to over 22, and a half million ounces of silver and 22000 ounces of palladium.
Annual gold production and sales volumes achieved a new record for the company.
And we significantly exceeded our original guidance for the eight consecutive year speaking to our solid track record of delivering on our production forecast.
We continue to generate strong operating margins, resulting in cash flow of over 500 million in 2019 from revenue of 860 million.
And the company has set a minimum quarterly dividend of 10 cents per common share for the duration of twentytwenty, representing an 11% increase.
We entered 2019 with the strongest foundation, we've ever had supported by one of the best portfolios of precious metals assets in the industry and confidence in the sustainability of our business model.
And we now look forward to a steady growth profile in the coming years, which I will provide more details on later in this call.
So now I'd like to turn the call over to Gary Brown, Our senior Vice President and Chief Financial Officer, who will provide more details on our results Gary.
Thank you Randy and good morning, ladies and gentlemen.
The company's precious metal interest produced 187000 gold equivalent ounces in the fourth quarter of 2019 comprised of 107200 ounces of gold 6 million ounces of silver and 6100 ounces, a palladium an increase of over 3% from the comparable period of the prior year.
Gold production was virtually unchanged well silver in palladium production increased by 8% and 3% respectively. The increase in silver production was primarily the result of a significant increase in grades at Penasquito with the legal blockade having seized on October 22nd.
The increase in Palladium production is reflective of the Blitz project ramping up at the Stillwater operation as well as the fill the mill program at East Boulder mine.
[noise] gold sales volumes decreased by 13% due to a build up of ounces produced but not yet delivered relative to slow well silver and palladium sales volumes increased 6% and 5% relative to the fourth quarter of 2018.
I was at December 31st 2019, and approximately 98600 payable gold ounces 4.5 million payable silver ounces and 4900 payable palladium ounces had been produced but not yet delivered to the company with the payable gold ounces, increasing by 13300 ounces during the quarter.
We estimate a normal level for payable ounces produced but not delivered to equate to approximately two to three months for gold two months for silver in three months for Palladium with the 2019 year end balances being at the higher end of these ranges.
Revenue for the fourth quarter of 2019 amounted to $223 million, representing a 14% increase relative to Q4 2018, primarily due to a 21% increasing the average realized gold price an 18% increase in the average realized silver price and a 59% increase in the average real.
As palladium prices with these price increases being partially offset by the lower sales volumes.
Oh this revenue, 59% was attributable to gold sales, 37% silver and 4% attributable to palladium cells.
Driven by a weighted average increase in commodity prices of 21% gross margin for the fourth quarter of 2019 increased 47% to $96 million highlighting the leverage our business model provides to increases in precious metal prices.
Cash base DNA expenses amounted to $10 million in the fourth quarter of 29 team representing a decrease of $9 million from Q4 2018 with the decrease being primarily related to lower crude cost associated with performance share units are P.S. use coupled with the results for the fourth quarter of two.
The other than an 18, reflecting a 5 million dollar onetime success fee for legal services associated with the positive resolution of the company's dispute with the CR rate.
Interest cost for the fourth quarter of 2019 amounted to $8 million, resulting in an effective interest rate on outstanding debt of 3.62% as compared to $13 million of interest costs on an effective interest rate of 3.83% incurred in Q4 2018.
Net earnings amounted to $78 million in the fourth quarter of 2019 compared to $7 million in Q4 2018 with the results in Q4 2018 being affected by several onetime adjustments primarily relating to the CRM settlement.
After negating for items that are nonrecurring in nature adjusted net earnings in the fourth quarter of 2019 more than doubled to $78 million as compared to $37 million in the fourth quarter of 2018.
Basic adjusted earnings per share increased 113% to 17 cents compared to eight cents per share in the prior year.
Operating cash flow for the fourth quarter, 2019 amounted to $132 million or 29 cents per share compared to $108 million or 24 cents per share in the prior year, representing a 21% increase on a per share basis.
In addition, the company repaid $139 million on the revolving facility made $34 million of dividend payments and advanced $10 million to goldex as part of the convertible debenture private placement during the fourth quarter of 29 team, resulting in a net debt position of $771 million that.
Decemberthirty one 2019.
Based on the company's dividend policy. The company's board has declared a dividend of 10 cents a share payable to shareholders of record on March 26, 2020, representing an 11% increase from the prior period under the dividend reinvestment plan. The board has elected to offer shareholders the option of having their dividends reinvested the newly issued.
Common shares of the company at a 1% discount to market.
For the year ended December 30, Onest 29 team production on a gold equivalent basis was 707000 ounces, which exceeded company guidance with the lower silver production at Penasquito due to the impact of illegal blockades being more than offset by an outperformance of the Lobo, which helped lead.
To record gold production.
Revenue for 2019 amounted to $861 million, representing an 8% increase relative to 2018 with sales volumes being virtually unchanged on a gold equivalent basis.
This revenue, 63% was attributable to gold, 33% silver and 4% was attributable to palladium sale with gold sales volume of 389000 ounces, representing a record for the company.
On a gold equivalent basis average realized commodity prices rose by 8% in 2019, while gross margin increased by 17% yet again, highlighting the leverage the company provides to commodity prices.
Cash based Gina expenses in 2019 amounted to $49 million, representing representing an increase of $3 million from 2018 with such increase being primarily related to an 8 million dollar increase in expenses related to p. as use partially offset by the $5 million success fee reflected in 2000.
And then 18 relating to the CRH settlement.
For 2020, the company estimates that non stock base, DNA expenses, which excludes expenses relating to the value stock options and PS use will be in the range of $38 million to $40 million.
Interest cost for 2019 amounted to $45 million, an increase of $9 million relative to 2018, resulting in an effective interest rate on outstanding debt of just over 4%.
After the gating for items that are nonrecurring in nature, which for 2019 included adjusting for the effect of the $166 million impairment on the Boise Big Cobalt stream and for 2018 included adjusting for the effect of the $246 million gain on disposal of the sand amass silver interest as well as adjust.
For the costs relative to the CRM settlement, which totaled $29 million adjusted net earnings for 2019 amounted to $252 million, representing an 18% increase from adjusted net earnings for 2018, due primarily to the higher realized commodity prices in 2019 parts.
We offset by higher finance costs.
Basic adjusted earnings per share amounted to 56 cents in 2019 compared to 48 cents in 2018.
Cash flow from operations amounted to $502 million, an increase of 5% as compared to 2018 with the increase being primarily attributable to the higher realized commodity prices. This translated into operating cash flow per share of $1.12 compared to a dollar AIDS in 2018.
As announced the companies in the process of establishing a 300 million dollar at the market program or ATM under which capital can be raised through the issuance of common shares. The company is establishing this program to ensure that it has efficient and cost effective access to capital markets. This is just another five.
Financing tool that can be used in concert with operating cash flows and the credit capacity provided under its revolving revolving credit facility to consummate additional accretive streaming transactions.
That concludes the financial summary, and with that I'd turn the call back over to Randy.
Thank you Gary.
We're pleased to reiterate our twentytwenty and long term production guidance previously announced in February.
For 2020, Wheaton estimated attributable production is forecast to range between 390000 to 410000 ounces of gold.
22 to 23, and a half million ounces of silver and 23000 to 24 and a half thousand ounces, a play them, what's which amounts to gold equivalent production of approximately 685000 to 725000 ounces.
Gold production is forecast to remain strong primarily driven by salobo and send them us.
And silver production in 2020 should be stable as growth from Penasquito is expected to be partially offset by slight decreases that enter mena and constancio due to mine planning.
Looking forward, we anticipate steady organic growth building over the next five years, we estimate that annual gold equivalent production will averaged 750000 ounces per year, primarily due to continued growth at Penasquito Constancio Stillwater and Salobo.
At Peasquito, we expect a stronger year as newmont applies its full potential continuous improvement program to drive productivity improvements and the mind benefits from higher grades.
Let's get Santiago, Hudbay announced that a secured the surface rights for the public conscious deposit and expects to begin mining the satellite deposit.
In late Twentytwenty.
Wheaton has not included any production for the Papa Concha in its Twentytwenty forecast, but does include this production in its five year average.
And as Stillwater Palladium and gold production is expected to increase with the continued ramp up of the Blitz and fill the mill projects, which are expected to be key growth drivers and should continue to result in more metal being delivered to wheaton in the coming years.
With respect to this level of mine expansion valet reports that physical completion was at 40% at year end given their progress to date and assuming construction continues at the same pace. We expect the expansion could begin contributing to our production profile as early as Twentytwenty too.
I would like to remind everyone that Wheaton does not include any production in our forecasts from Hudbays Rosemont project or the recently restarted Minto mine.
On the corporate development front 2019 was relatively quiet as none of the many opportunities we reviewed met our stringent quality criteria. However, we start the year in a very good position as the prolonged weakness in base metals has created numerous opportunities to acquire byproduct precious metal streams the quantum.
And scale of which we havent seen in quite some time.
We remain focused on adding additional production from long life assets producing in the lowest half of their respective cost curves Wheaton strong cash flow coupled with the available credit underneath our revolving facility provides ample capacity for continued investments.
And equally as important as our results and growth opportunities is our commitment to responsible business practices.
In 2019, we made significant headway on several sustainability initiatives, including committing to the principles of both the UN global compact and the World Gold Council is responsible gold mining principles.
In addition, we increased the percentage of net income allocated to partner CSR initiatives, allowing us to expand on the success of the program in supporting communities around the mines from which we receive precious metals.
During the year, we advanced 14 projects with four different partners. The various programs focused on health education community engagement and entrepreneurial opportunities in the regions, where our partners operate including Brazil, Peru and Mexico.
Throughout Twentytwenty, we will continue to work with our partners to help deliver sustainable benefits to these communities.
In addition, the company is keeping up to date on development surrounding cobot 19, and is taking steps to protect the health and safety of our employees and the communities around us as well as implementing measures to minimize any possible impacts to our business.
In summary, 2019 was another very successful year for Wheaton, we achieved both record gold production in gold sales volumes and we also exceeded production guidance for the eighth consecutive year.
Our value, creating business model commitment to operating responsibly and focus on high quality assets provides investors with what we believed to be the best vehicle for investing into precious metals.
I am truly proud.
The company that we have built together over the last 15 years.
So with that I'd like to open up the call for questions operator.
Thank you.
Ladies and gentlemen, we will now conduct the question and answer session.
If you would like to ask a question. Please press Star then the number one on your telephone keypad.
She would like to withdraw your question. Please press the pound key.
There will be brief pause will be compiled acuity roster.
Our first question comes from John Tumazos from John Tumazos very independent research. Please go ahead. Your line is open.
Thank you for taking my question.
Onto first could you just review.
The contract you have where the mines are not yet.
And delivering metals for you.
In which of those are funded.
In addition to the Rosemont.
And your forecast.
Sure.
Boise is bay of course will start delivering cobalt to us starting in January onest of 2021.
The project is moving forward well, we get to cobalt irrespective of whether it comes from the open pit and underground that the funding was already supplied to valley as they develop a convert that operation from an open pit operation to underground.
It looks very promising.
In terms of production and such we're very comfortable with where we see that coming and so it's on track it on schedule.
Rosemont of course, we haven't contributed.
Any capital towards yet.
Waiting for them to start construction and get all financing in place and of course with the current permit appeal down. There. We are we do have to move forward on ill.
Patiently wait for Hudbay to work its way through the appeal process and hopefully.
Recommence moving that project forward sometime for five years out is what we would estimate in terms of timing.
Past Kalama of course.
We.
Passable Lama.
We did contribute back in 2009 to two barracks construction of Pascua Lama that that projects been suspended we did receive a lot of compensation silver from a number of other assets in the Barrick portfolio.
The date I think we were.
There's about 254 million outstanding on that purchase we do have the right up until the end of September to request that funding back, but we are strong believers in passable Lama, we think it's still one of the best.
Undeveloped gold mines are happier than a gold mines in the world gold deposits in the world and hopefully it will come a become a mine.
Competent and barrick's ability to continue advancing that project a go forward basis. We also of course have navidad down in in Argentina Pan American Silver owns this at the silver project that.
That we would expect based on current plans to see a couple of million ounces of silver delivered to US again, I think there's a payment of about $32.4 million the.
That would be owed as soon as they start construction on that project. There is still waiting working their way through trying to get permits on that moving that forward.
We have the electrical.
He'll operations up in the U., Conn, which they've had incredibly promising exploration results very very high grade.
Materials out of the Bermingham deposit and so continue to wait for them to restart that mill and can deliver.
Product back to us, it's not part of our plans going forward Toroparu down in.
Down in South America.
Run by Goldex again, one of the more promising projects out there quarter bomb us with Panoro.
So thats the Optionality in terms of the projects that aren't part of our current production profile is is very strong uncomfortable that.
At least some of these will be delivering metal to us over the next five to 10 years.
Thank you second question.
I agree we admire your 14 CSR programs in your unique position.
And the streaming reality space leadership.
As you evaluate new projects.
Do you see.
Saar complicated projects.
Owing to your.
Thanks.
For operators to turn them around.
Or do you take a conservative.
Try this side steps.
Maybe.
Require better returns from those kinds of complicated projects.
Because of.
The risks involved.
John I.
On the question because one of the things that we look at is if we can somehow be an agent of change in terms of helping push improvements the industry as a whole needs to step up to this plate, we need to continue to find ways to deliver better and better sustainable results to the communities that are impacted by our API.
Regions and provide that support and so we don't necessarily shy away from from opportunities or projects that have a CSR charges, we actually try and find ways to help. These these opportunities move forward Meg I can go into detail on several different initiatives that we have with existing partners to try and how.
Them improve on terms of overall performance, it's something that we try and integrate into into the contract when were looking at new opportunities to try and and promote improvement on these front and so we have a dedicated during our due diligence team we have a dedicated person that focuses on that.
During the site visit and tries to get a handle on on past performance, but also new opportunities to try and improve the industry as a whole needs. This and everything we can do it as an industry.
Partner and as an industry leader to try and strengthen the industry's track record on that is in the long run going to deliver really strong values back to two all of us and so I don't think there is.
I don't think running in hiding from from stuff like this is the way to approach and I think.
We have to look at it from a prospective of.
How can we improve things how can we add value how can we guide change to the positive and then that's our whole approach to this and so I'd like to concept the being a change of where we can actually sit in come in and will improve overall performance.
Thank you and thank you for your service as a company.
Thank you John appreciate your support.
Our next question comes from Josh Wolfson from RBC. Please go ahead.
Thanks.
Looking at the assay market equity issue that was disclosed overnight.
Is there any way we get some more information on I guess, what the motivation is to have that program in place given the company.
It is well capitalized now and generate free cash flow and then also the decision to incorporate this alongside the current sort of dividend policy plan, which I guess has has increased relative to what the prior plan was.
Yes, Josh it's Gary here.
You know.
Our access to capital is critical in order that.
That we can efficiently.
Consummate new.
Streaming transactions and I think as Randy.
Outlined the opportunity set that we're looking at right now is very strong and with some sizable.
Deals out there and so.
We need to ensure that were positioned to be very nimble to consummate those transactions and.
And.
The ATM product is one that I'm very fond of because of its.
Much lower cost to existing shareholders.
Issuing at.
Much.
Lower fees and at the market rather than at a discount to market without.
Affecting the the market price of the stock so.
Really that's.
Just a.
A program that we.
Put in place because they take months to to put in place and establish in <unk> and we just want to make sure that.
Should we need the capital to grow that we've got it efficiently available to us.
John I would say then just that finish off your question. You also asked about the dividend and such our dividend policy is driven on.
30% of cash flows going forward and so it just be the drove us to that 10%, which is why we have this in places that share the benefits of some of the higher commodity prices, we've seen with our shareholders directly through that dividend policy.
And then just to expand on what Gary said, we do see.
A very attractive looking opportunity set out there on the corporate development front and we just want to make sure that we have as many tools available as we as we can.
So at that makes sense for us to have these tools out there, especially in light of recent market activity. The at the the need for support in the mining industry, especially the base metals industry.
Which is where we find the best precious metals byproduct streams.
Is strong and I can say with days like today getting stronger and so you know we just it's uptime.
It's it's our responsibility to make sure we have all and take advantage of all the tools that we have available and I would I would describe the ATM is just another arrow in the quiver.
That we may use we may not used to help fund that.
That growth.
That makes sense. Thank you very much.
Thanks, Josh.
Our next question comes from Jackie.
CMO capital markets. Please go ahead.
Thanks, very much and I guess this is a good segue from Josh is question I just was wondering.
Your comments about seeing.
No opportunities for growth in the base metal space.
Can you maybe talk a little bit about how quickly things are changing.
Right now.
From a fairly strong market at the beginning of the yard obviously, one that's really on its back right now.
Using.
Recently, a lot of base metals companies coming to you are looking for streams or maybe can you just talk a little bit about how the landscape has changed over the last month or two months. Thanks.
Yes, the haithum as to that one sure Jackie Thanks for the question over the last year. We spent a lot of time looking at a number of new opportunities that typically fell into the sub 300 $350 million category, primarily development stage opportunities that fit into early deposits structures as well as expansion stage streaming opportunities.
But in the last few months, we've seen interest from producing companies that are considering selling their byproduct precious metals that as a way to strengthen the balance sheets, which further highlights the competitive cost of capital streams can provide relative to other financing options. Now these can be quite significant streams with potential investments of more than $1 billion. Although these are still very competitive times.
We're focused on making accretive transactions for our shareholders I can tell you, we probably got a handful of those that that we're working through and we'd hope to be successful on some of those.
And maybe just a quick follow up on that if a company came to you a month or two months ago I. So what's the what would be the typical timeframe. If there is one in terms of like.
That deal might be announced to the market like how long does it take to go through this process.
Sure I mean typically are.
Process would take anywhere between four weeks to 12 weeks, obviously, we're in a bit of a different type of environment right now with all kinds of delays due to travel restrictions and all kinds of stuff, but the average.
Average streaming transaction from start to completion of definitive agreements takes I would say about 12 weeks.
Hey, thanks very much.
Thank you Jackie.
Our next question comes from Trevor Turnbull Scotiabank. Please go ahead.
Yeah, I just had a question about.
Forecasting some of the production.
One of the components that.
Comes up.
Every year is the kind of other.
Component, which is certainly an aggregate of have lots of smaller assets that aren't worse, providing a lot of detail on but I just wondered going forward can you give us any sense of like how that that group of smaller pieces is going to trend going forward should it should it continue to stay relatively.
Flat in terms of its contribution or are we looking for that too to move one way or the other.
I see it does sort of being consistent in what I, what I will highlight is that.
The other category not only does it include our smaller operations, but it also includes the the difference.
When it comes to partner forecasts of metal production, we will align ourselves with our partners, but when it comes to our company's overall production performance. We we do come up with our own forecast that we own and deliver and I am going to say, it's sort of.
It's typically lower than.
Then the partner forecast, if you sum up the partner forecast individually and so that discrepancy is usually buried within the other category.
And so the combination of the smaller assets and that.
I hope so because to be honest some of these smaller assets provide nice little surprises on on a pretty regular basis going forward. So we're not we're not shy of sort of keeping keeping.
Decent portion of the portfolio into that smaller size.
When I sit and look at the assets that are in our optionality as narrow theres a few a few of those assets that would definitely fall into that other category. They wouldn't be significant enough to be reported independent independently and so if I would say, it's probably going to maintain a relatively consistent portion of the overall production reporting.
Okay, great. Thanks, Randy.
Thank you driver.
Our next question comes from Brian Macarthur from Raymond James. Please go ahead.
Hi, Good morning, I know, there's a lot of variability between sales and production, but just.
Three quarters on the gold side, especially and I know a lot of its locally built up as Gary said a lot of inventory, but if you look at the first quarter of last year, you did a lot a catch up in that quarter do you expect that to happen again. This year is like the first quarter going to be a big catch up for those last three quarters.
On San Bruno.
Brian we.
We would expect that.
The the balance.
Overall would probably come down slightly but we're we're.
Guiding people too.
Basically look at our year end.
PBM, the and assume that that.
Remains relatively constant throughout the year.
Okay, great. Thanks.
Thanks, Brian.
Our next question comes from Chris Terry from Deutsche Bank. Please go ahead.
Hi, already Gary and high some couple of questions for me just wanted to dig into a few things you've touched on earlier, but just in terms of the overall commodity mix. You. Previously said I think you don't want to touch on oil and gas so much and just looking at across the whole host.
Spectrum of what the opportunities our precious streams related to base metals.
All precious companies predominantly.
Just wondering if you commented on some of the opportunities you, saying just reiterate the the mix of precious metals that you're going for any of the other commodities you might be looking at that's my first question. Thanks.
Sure Chris It's Randy.
No I would say that when we changed the name from silver Wheaton to Wheaton precious metals that was a real strong indication of our focus we are focused on precious metals.
We do have obviously, some cobalt coming into play next year, if it wasn't valet and if it wasn't boise's bay it wouldn't be part of our portfolio. It's the cleanest greenest.
Socially responsible most environmentally sound cobalt produced in the world out of the out of the voices Bay operation and so it's a very very unique one off situation, which we don't see anything that's comparable to it in the in the cobalt space.
We are focused on precious metals, our job is to deliver profitable high margin high quality precious metals production to our shareholders.
We've long been believers that if our shareholders are interested in owning some oil and gas exposure theres plenty of other opportunities out there for them to to make those investments in companies that are solely focused in the oil and gas base and and I don't think that we should be defining the diversity of our of our shareholders portfolios and so.
We focus solely on precious metals I can tell you that 100% of everything we're looking at on the corporate development front is precious metals focused.
Okay. That's clear thanks, Thanks, Randy just stay on the follow up but still sort related to two M&A overall, just wanted to maybe maybe high some comment on this.
In terms of the opportunities you are saying on the smaller end below 350 mill so.
Yes, Hello, how are they progressing in the current market just just in terms of all the volatility and the taught so things you might be looking at their on that side and then just on the sort of the bigger deals do you think we need to wait a lot longer answer this volatility continues.
On sheets go south from some of the other companies is that the opportunity are you still see thinking that that could be sooner rather than later.
Sure. Thanks for the question, Chris I guess just from from the opportunity said, we looked at probably over 60 opportunities last year alone and I can tell you we didnt transact on a single one very few of these opportunities actually ended up meeting or internal requirements in terms of margins terms the strength of the company the geological Prospectivity as well as this.
Thanks for the management team. So we're very picky as to what we look at we're not motivated to transact unless it is a high quality transaction. So from that perspective, you will continue to look at them I can tell you we've already looked at probably what do we now March and we probably already looked at 20 different opportunities. So far this year, we would hope that we would find one that fits into.
Our high quality portfolio, but but there are no guarantees on that obviously.
Okay. That's it for me thanks, guys.
Thank you, Chris and I. Thank you everyone for dialing in today in closing, we believe Wheaton is well positioned to continue delivering value to our shareholders for a number of different reasons, firstly by having low and predictable cost as a result in some of the highest margins in the entire precious metal space and strong operating cash flow.
Secondly, through a growing dividend that we increased by over 10%.
Thirdly through our steady organic growth profile over the next several years and a proven track record of accretive quality acquisitions.
Fourth lead by offering our shareholders exposure to some of the best mines in the world through our high quality portfolio of long life low cost assets.
And lastly by being a leader amongst precious metal streamers in sustainability and supporting our partners and the communities in which we live and operate.
Our business is strong.
I look forward to speaking with you all again very soon thank you.
This concludes this conference call for today. Thank you again for participating please disconnect your lines at this time.
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