Q1 2020 Earnings Call

May 7, 2020

Question and answer session. If you would like to ask a question during this time, simply, press star from the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. Thank you. Mom would like to remind everyone that this conference call is being recorded on Thursday May 7th 2020 at 11 a.m. Eastern time. I will now turn the conference over to mister Patrick. Karoon 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 on the line today by Randy Smallwood. Wheaton price is metal and Chief Executive Officer Gary Brown senior vice president and Chief Financial Officer and hate them wholly senior vice president corporate development. I'd like to bring to your attention that some of the commentary in today's call may contain forward-looking statements. There can be no assurances it forward-looking statements will prove to be accurate as actual results in future events could differ materially from those anticipated in such statements in addition to our financial results cautionary note birth.

Please refer to the SEC.

Entitled description of the business risk factors and Wheaton's annual information form and the risk identified under rich and uncertainties and Management's discussion and Analysis both available on c r and in Wheaton took him forty F and we danced form 6-k both on file with the Securities and Exchange Commission these documents together with the queue 120 MB n a and the press release from last night said that the material assumptions and not actors that could cause actual results to differ including among others fluctuation in the price of Commodities impacts on Wheaton or or or mining operations from which we purchase is precious metal as a result of an epidemic including the covid-19 pandemic. Where's related to mining operations from which we didn't purchase is precious metals. They continued ability of whedon's counterparty to satisfy their under their obligations under precious metal purchase agreements and the impact of material changes, in fact law or jurisprudence in the CRA settlement. It should be noted at all figures refer to on today's call or any US Dollars unless otherwise noted wage.

Addition reference to Wheaton or Wheaton precious metals on this call includes Wheaton precious metals Corp and orange wholly-owned subsidiaries as applicable now like to 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 Wheaton's first quarter results of 2020.

Operator 3: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2020 Q1 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 you 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, press the pound key. Thank you. I would like to remind everyone that this conference call is being recorded on Thursday, 7 May 2020 at 11:00AM Eastern Time. I will now turn the conference over to Mr. Patrick Drouin, Senior Vice President of Investor Relations. Please go ahead.

Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2020 Q1 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 you 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, press the pound key. Thank you. I would like to remind everyone that this conference call is being recorded on Thursday, 7 May 2020 at 11:00AM Eastern Time. I will now turn the conference over to Mr. Patrick Drouin, Senior Vice President of Investor Relations. Please go ahead.

Before I begin, I would like to start off by saying that I hope everyone has been keeping healthy and safe during these challenging times. It's hard to believe how much the world has changed since our last quarterly conference call them eating our top priority Remains the health and safety of our employees and the communities in which we operate in response to the covid-19 virus pandemic. We have made several changes to our business to ensure wage was transition to working remotely as well as launching initiatives to help support our communities and the communities around the mines from which we receive our precious metals.

Patrick Drouin: Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined on the line today by Randy Smallwood, Wheaton Precious Metals President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, and Haytham Hodaly, Senior Vice President of Corporate Development. I'd like to bring to your attention that some of the commentary in 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 in future events could differ materially from those anticipated in such statements.

I will provide further details and updates on Wheaton's response to covid-19 including the effects on our partner operations and guidance after Gary discusses our first quarter results.

On that note. I am pleased to report the Wheaton had a very strong start to 20 20 with over $177 million generated in operating cash flow in the first quarter an increase of 50% relative to 2019 driven by the strength in Precious Metals prices.

Patrick Drouin: In addition to our financial results cautionary note regarding forward-looking statements, please refer to the section entitled Description of the Business - Risk Factors in Wheaton's Annual Information Form and the risks identified under Risks and Uncertainties and Management's Discussion and Analysis, both available on SEDAR and in Wheaton's Form 40-F and Wheaton's Form 6-K, both on file with the U.S. Securities and Exchange Commission.

And we declared a quarterly dividend of $0.10 per common share in line with the minimum quarterly dividend set by the board of directors for the duration of 2020. So now I'd like to turn the call over to Gary Brown 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 is precious metal interests produce 182200 gold equivalent ounces in the first quarter of 2026 comprised of 94700 ounces of gold 6.7 million ounces of silver and 5300 ounces of Palladium relative to the first quarter of the month or year. This represented an eight per-cent increase in gold equipment production with gold production being virtually unchanged while silver and Palladium production increased by 19% and 5% respectively.

Patrick Drouin: These documents, together with the Q1 2020 MD&A and the press release from last night, set out the material assumptions and risk factors that could cause actual results to differ, including, among others, fluctuation in the price of commodities, impacts on Wheaton or mining operations from which Wheaton purchases precious metals as a result of an epidemic, including the COVID-19 pandemic, risks related to mining operations from which Wheaton purchases precious metals, the continued ability of Wheaton's counterparties to satisfy their obligations under precious metal purchase agreements, and the impact of material changes in fact, law, or jurisprudence on the CRA settlement. It should be noted that all figures referred to on today's call are in US dollars unless otherwise noted.

Well those goals.

Action in q1 20-21 consistent with the prior-year so low low production increased by 3% despite the throughput being negatively affected by the rainy season and unscheduled maintenance saying to mass-produce 10% more gold with Mill operating it over 2,200 tons per day during the quarter and Mentos contributed over two thousand ounces of oil production having been in maintenance during the comparable quarter of the prior year these positive variances were offset by lower gold production from Sudbury and constancia due to the mining of Life grade material and in the case of constancia lower throughput the increase in silver production was primarily the result of a significant increase in grades and recovery at 10 a.m. Resulting in record attributable production.

Patrick Drouin: In addition, reference to Wheaton or Wheaton Precious Metals on this call includes Wheaton Precious Metals Corp. and/or its wholly owned subsidiaries as applicable. Now I'd like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Randy Smallwood: Thank you, Patrick, and good morning, ladies and gentlemen. Thank you for joining us today to discuss Wheaton's Q1 2020 results. Before I begin, I would like to start off by saying that I hope everyone has been keeping healthy and safe during these challenging times. It's hard to believe how much the world has changed since our last quarterly conference call. At Wheaton, our top priority remains the health and safety of our employees and the communities in which we operate. In response to the COVID-19 virus pandemic, we have made several changes to our business to ensure a seamless transition to working remotely, as well as launching initiatives to help support our communities and the communities around the mines from which we receive our precious metals.

The increase in Palladium production is reflective of the blitz project ramping up and the fill the mail campaign at these folder operation.

Golden Corral in sales amounted to 166100 ounces in the quarter representing a 4% decrease from q1 2019 primarily due to the sale of a large amount of gold produced in Prior quarters occurring in the first quarter of 2019 relative to silovo. This was partially offset by 15% black and silver sales volumes driven by the increasing silver production in q1 twenty-twenty. I've got March 31st 2020 approximately 88400 month old ounces is 5.3 million tbsp in ounces and 4,900 table Palladium ounces have been produced but not get delivered company. We asked estimated National level four padlocks is produced but not delivered to equate to approximately two to three months for goal two months for silver and three months for Palladium with the balancing.

Randy Smallwood: I will provide further details and updates on Wheaton's response to COVID-19, including the effects on our partner operations and guidance after Gary discusses our Q1 results. On that note, I am pleased to report that Wheaton had a very strong start to 2020 with over $177 million generated in operating cash flow in the Q1, an increase of 50% relative to 2019, driven by the strength in precious metal prices. We declared a quarterly dividend of $0.10 per common share, in line with the minimum quarterly dividend set by the board of directors for the duration of 2020. Now I'd like to turn the call over to Gary Brown, Senior Vice President and Chief Financial Officer, who will provide more details on our results. Gary.

Gary Brown: Thank you, Randy, and good morning, ladies and gentlemen. The company's precious metal interests produced 182,200 gold equivalent ounces in Q1 2020, comprised of 94,700 ounces of gold, 6.7 million ounces of silver, and 5,300 ounces of palladium. Relative to Q1 of the prior year, this represented an 8% increase in gold equivalent production, with gold production being virtually unchanged, while silver and palladium production increased by 19% and 12% respectively. Although gold production in Q1 2020 was consistent with the prior year, Salobo production increased by 3% despite the throughput being negatively affected by the rainy season and unscheduled maintenance.

At the end of q1 being consistent with these walls revenue for the first quarter of 2020 amounted to $255 million dollars representing a 13% increase relative to q1 2019 primarily due to an 18% increase in the realized selling price on a gold equivalent basis with this price increase being partially offset by 4% decrease in Gold equivalent sales volumes of this Revenue 63% was attributable gold 33% was attributable the silver and 4% wage tributable, Palladium.

driven by this increase in sales prices gross margin for the first quarter of 2020 increased 41% to 123 million dollars highlighting our business model provides to increases in precious metal prices cash-based G&A expenses, and I need to twelve million dollars in the first quarter of 2020 representing a decrease of four million dollars from q1 2019 with the decrease being primarily related to lower accrued costs associated with the performance share units or

Gary Brown: San Dimas produced 10% more gold, with the mill operating at over 2,200 tons per day during the quarter, and Minto contributed over 2,000 ounces of gold production, having been in care and maintenance during the comparable quarter of the prior year. These positive variances were offset by lower gold production from Sudbury and Constancia due to the mining of lower grade material and, in the case of Constancia, lower throughput. The increase in silver production was primarily the result of a significant increase in grades and recovery at Peñasquito, resulting in record attributable production. The increase in palladium production is reflective of the Blitz project ramping up and the Fill the Mill campaign at the East Boulder operation.

interest call

For the first four twenty twenty six million dollars resulting in an effective interest rate and understanding debt of 3.03% as compared to $13 and it's just call an effective interest rate of 4.28% incurred in q1 2019.

Gary Brown: Gold equivalent sales amounted to 166,100 ounces in the quarter, representing a 4% decrease from Q1 2019, primarily due to the sale of a significantly large amount of gold produced in prior quarters occurring in the first quarter of 2019 relative to Salobo. This was partially offset by a 15% increase in silver sales volumes driven by the increased silver production in Q1 2020. As of 31 March 2020, approximately 88,400 payable gold ounces, 5.3 million payable silver ounces, and 4,900 payable palladium ounces had been produced but not yet delivered to the company.

Narrating to manage the $95 million in the first quarter of 2020 compared to $57 in q1 2019 things like earnings per share in sixty-two Thousand to twenty one cents compared to $0.13 per share in the prior-year offered in cash flow for the first quarter of 2020 amounted to $178 billion dollars or forty cents per share compared to $118 or $0.27 per share of the prior-year representing a 48% increase on a per show basis.

Based on the company's dividend policy. The company's board has declared a dividend of ten cents a share payable to shareholders of record on May 22nd, 2020 and under the dipstick reimbursement plan or has elected to offer shareholders. The option of having their dividends reinvested in newly issued common shares of the company at a 1% discount to Market.

Gary Brown: We estimate a normal level for payable ounces produced but not delivered to equate to approximately 2 to 3 months for gold, 2 months for silver, and 3 months for palladium, with the balances at the end of Q1 being consistent with these levels. Revenue for Q1 2020 amounted to $255 million, representing a 13% increase relative to Q1 2019, primarily due to an 18% increase in the realized selling price on a gold equivalent basis, with this price increase being partially offset by a 4% decrease in gold equivalent sales volumes. Of this revenue, 63% was attributable to gold, 33% was attributable to silver, and 4% was attributable to palladium.

For 2020 the comedy currently makes it non-stop based G&A expenses which exclude expenses relating to the value of stock options and will be approximately forty-two forty-three million dollars this represents a two or three million increase from our previous gallons reflecting the recently-announced five million dollar home community support and response from just the only do in the immediate needs of the communities in which we operate as well as the communities around the mines in which the company has a precious-metal in, Georgia.

During the first quarter of 2020 the company retains a hundred and fifty million dollars on the revolving facility and receive proceeds from the exercise of salt options in the amount of 7 million dollars increased by $23 billion in q1 twenty-twenty resulting in cash and cash equivalents at March 31st of a 127 million hours. This combined with the $716 outstanding under the two billion dollar revolving credit facility resulted in a net Desk position as at March 31st off of 189 million dollars. I've been there once the company that sells that three hundred million dollar offer Market or a GM program on April 16th, 2020 under wage Capital can be raised through the most issuance of common shares ensuring that the company has efficient access to this form of Gallup poll. Should it require ourselves to execute on a freedom wage?

Gary Brown: Driven by this increase in sales prices, gross margin for Q1 2020 increased 41% to $123 million, highlighting the leverage our business model provides to increases in precious metal prices. Cash-based G&A expenses amounted to $12 million in Q1 2020, representing a decrease of $4 million from Q1 2019, with the decrease being primarily related to lower accrued costs associated with performance share units, or PSUs. Interest costs for Q1 2020 amounted to $6 million, resulting in an effective interest rate on outstanding debt of 3.03% as compared to $13 million of interest costs at an effective interest rate of 4.28% incurred in Q1 2019.

Gary Brown: Net earnings amounted to $95 million in Q1 2020, compared to $57 million in Q1 2019. Basic earnings per share increased 62% to $0.21, compared to $0.13 per share in the prior year. Operating cash flow through Q1 2020 amounted to $178 million, or $0.40 per share, compared to $118 million or $0.27 per share in the prior year, representing a 48% increase on a per share basis.

Strategy includes Financial summary when I turn the call back over to Randy.

Thank you, Gary. The company is keeping up to date on developments surrounding covid-19 and has taken steps to protect the health and safety of our employees and the community as well as measures to minimize any impact to our business in accordance with local government restrictions and guidelines Wheaton closed its physical offices in mid-march and successfully transitioned to telecommuting for all of its employees.

We have always maintained digital or detailed business continuity plans and as such the transition to telecommuting has been seamless resulting in uninterrupted flow of business.

Gary Brown: Based on the company's dividend policy, the company's board has declared a dividend of $0.10 a share payable to shareholders of record on 22 May 2020, and under the dividend reinvestment plan, the board has elected to offer shareholders the option of having their dividends reinvested in newly issued common shares of the company at a 1% discount to market. For 2020, the company currently estimates that non-stock-based G&A expenses, which exclude expenses relating to the value of stock options and PSUs, will amount to approximately $40 to 43 million. This represents a $2 to 3 million increase from our previous guidance, reflecting the recently announced $5 million Community Support and Response Fund, designed to address the immediate needs of the communities in which Wheaton operates, as well as the communities around the mines in which the company has a precious metal interest.

And that includes continuing to pursue additional accretive Acquisitions. Our corporate development team is very active and has been advancing a number of opportunities some of which we were fortunate enough to completed site due diligence trips prior to this pandemic. We may be locked down, but we aren't locked out of growing our high-quality portfolio of assets.

with regards to our current portfolio in late March, we completed a thorough review of operations with our counterparties to better understand their policies and procedures around covid-19 and have continued to closely monitor operations ever since

as of May 5th 2026 partner operations located in Mexico and Peru where temporary suspended subject to government restrictions focused on reducing the spread of covid-19 off these include the constancia San Dimas Los Feliz penasquito and antonina Minds

Gary Brown: During Q1 2020, the company repaid $159 million on the revolving facility and received proceeds from the exercise of stock options in the amount of $7 million. Overall, net cash increased by $23 million in Q1 2020, resulting in cash and cash equivalents at 31 March of $127 million. This, combined with the $716 million outstanding under the $2 billion revolving credit facility, resulted in a net debt position as of 31 March of $589 million.

The restrictions aren't on non-essential activities in Mexico and Peru are currently scheduled to be lifted by the end of May.

And given the low-cost high-margin nature of our portfolio our assets generally provide the maximum economic benefits to not only our partners, but to all stakeholders including governments and communities especially during these challenging times. The benefits of these mines are needed the most which is why we are confident. There will be a focus on getting these mines back up and running given the temporary suspensions and the uncertainty surrounding timing on April 1st Wheaton withdrew, its production guidance for 20 28. We are regularly assessing the impact of the covid-19 pandemic on our partners mining operations, and we will provide an update on our guidance when we have more confidence on the restart schedule these mines that are under temporary suspensions.

Gary Brown: As announced, the company established a $300 million at-the-market, or ATM program, on 16 April 2020, under which capital can be raised through the modest issuance of common shares, ensuring that the company has efficient access to this form of capital should it require such to execute on its accretive growth strategy. That concludes the financial summary. With that, I turn the call back over to Randy.

Randy Smallwood: Thank you, Gary. The company is keeping up to date on developments surrounding COVID-19 and has taken steps to protect the health and safety of our employees and the community, as well as measures to minimize any impacts to our business. In accordance with local government restrictions and guidelines, Wheaton closed its physical offices in mid-March and successfully transitioned to telecommuting for all of its employees. We have always maintained digital or detailed business continuity plans, and as such, the transition to telecommuting has been seamless, resulting in uninterrupted flow of business. That includes continuing to pursue additional accretive acquisitions. Our corporate development team is very active and has been advancing a number of opportunities, some of which we were fortunate enough to have completed site due diligence trips prior to this pandemic.

And although both Wheaton and our partners have been impacted as a result of this pandemic. It is clear that many of our neighbors in the community face even greater challenges and will continue to do so, I'm coming months in response. We launched a five million dollar community support and response fund the CSR fund for short to support Global efforts to combat the covid-19 virus pandemic and its impacts on our neighbors the majority of the CSR fund around four million dollars will be targeted to the communities that are directly influenced by the mines in which we have precious metal streaming agreements.

and the remainder will be

Allocated to local charities here in Vancouver and in Grand Cayman. We are working closely with our partners to identify the needs of these communities to of the community and to assess whether These funds could help fill an immediate Gap.

Randy Smallwood: We may be locked down, but we aren't locked out of growing our high-quality portfolio of assets. With regard to our current portfolio, in late March, we completed a thorough review of operations with our counterparties to better understand their policies and procedures around COVID-19, and have continued to closely monitor operations ever since. As of 5 May 2020, 6 partner operations located in Mexico and Peru were temporarily suspended, subject to government restrictions focused on reducing the spread of COVID-19. These include the Constancia, Yauliyacu, San Dimas, Los Filos, Peñasquito, and Antamina mines. The restrictions on non-essential activities in Mexico and Peru are currently scheduled to be lifted by the end of May. Given the low cost, high margin nature of our portfolio, our assets generally provide the maximum economic benefits to not only our partners, but to all stakeholders, including governments and communities.

We have already identified initiatives with our partners around the globe. Oh San Dimas. Constancia Sudbury Stillwater triple. Seven voices Bay all distraught and Tony Minds that will Target providing resources such as mobile lab facilities ventilators and personal protective equipment to those local communities as well as providing support to local food banks and Charities. It is during challenging times like this when charity is most important it is just the right thing to do.

In summary, the first quarter of 2020 was a strong start to the year. We have no doubt that covid-19 will have an impact on our second quarter and not 20/20 as a whole but the strength of our business model coupled with the quality of our existing portfolio gives us confidence that we will rebound from this page only that but we remain optimistic that we will be able to continue growing the company and add additional production from long-life assets producing in the lowest half of their respective cost curves month.

Randy Smallwood: Especially during these challenging times, the benefits of these mines are needed the most, which is why we are confident there will be a focus on getting these mines back up and running. Given the temporary suspensions and the uncertainty surrounding timing, on 1 April, Wheaton withdrew its production guidance for 2020. We are regularly assessing the impact of the COVID-19 pandemic on our partners' mining operations, and we will provide an update on our guidance when we have more confidence on the restart schedule for these mines that are under temporary suspensions. Although both Wheaton and our partners have been impacted as a result of this pandemic, it is clear that many of our neighbors in the community face even greater challenges and will continue to do so over the coming months.

Well, we are well-positioned to grow our portfolio. Should there be any accretive opportunities? Our top priority is the health and safety of our employees and the communities in which we and our partners operate?

So with that I would like to open up the call to questions operator.

Thank you. Ladies and gentlemen, we will now conduct the question-and-answer session. If you'd like to ask a question, please press star then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. There will be a brief pause while we compiled the Q&A roster.

And your first question here comes from the line of Cosmos to see if CIBC please go ahead your line is now open. Thanks RAM and Patrick for the conference call here. Maybe my first question is on the acquisition Pipeline and due diligence, you know on the franco-nevada conference call earlier today, they talked about, you know unique or you know, novel sort of alternatives to doing due diligence. I'm just wondering if you're also looking at you know, potential alternatives to doing due diligence and I guess the second part question is Randy as you mentioned at some of the potential targets, you know, you had the opportunity to actually do due diligence of you know, before covid-19 have you done, you know at home that's enough due diligence for you to be comfortable to pull the trigger at this point in time. And then I have a follow-up question as well.

Randy Smallwood: In response, we launched a $5 million Community Support and Response Fund, the CSR fund for short, to support global efforts to combat the COVID-19 virus pandemic and its impacts on our neighbors. The majority of the CSR fund, around $4 million, will be targeted to the communities that are directly influenced by the mines in which we have precious metal streaming agreements. The remainder will be allocated to local charities here in Vancouver and in Grand Cayman. We are working closely with our partners to identify the needs of these communities and to assess where these funds could help fill an immediate gap.

Randy Smallwood: We have already identified initiatives with our partners around the Salobo, San Dimas, Constancia, Sudbury, Stillwater, 777, Voisey's Bay, Aljustrel, and Stratoni mines that will target providing resources such as mobile lab facilities, ventilators, and personal protective equipment to those local communities, as well as providing support to local food banks and charities. It is during challenging times like this when charity is most important. It is just the right thing to do. In summary, Q1 2020 was a strong start to the year. We have no doubt that COVID-19 will have an impact on our Q2 and thus 2020 as a whole.

Sure Cosmos, I'll start off and then let hate them step in but I'm going to start off by saying that you know, I will say that going through this is pandemic and the response that we've had there are things that are learning here that that we will probably take out of this and help us improve our overall operations. And one of them is the the ability to digitally connect amongst businesses and amongst them not having to be face-to-face and and and being able to sort of audit data and and the likes we you know, we really had to sort of Step Up on that front out of necessity but their skills and and benefits that we are gaining out of this whole process that will will help and overall performance in the future. And so I don't know hate them you want to add a bit more to that. Yeah. Yeah, you bet he Cosmos. Good morning how you think bank card was the primary hurdle to consummating new transactions? The near-term is typically an inability to complete on site due diligence do the travel restrictions. Yeah. We did spend. Yep.

Randy Smallwood: The strength of our business model, coupled with the quality of our existing portfolio, gives us confidence that we will rebound from this. Not only that, but we remain optimistic that we will be able to continue growing the company and add additional production from long life assets producing in the lowest half of their respective cost curves. While we are well-positioned to grow our portfolio, should there be any accretive opportunities, our top priority is the health and safety of our employees and the communities in which we and our partners operate. With that, I would like to open up the call to questions, operator.

A significant portion of our time is Randy.

You mentioned earlier the fourth quarter of last year and the first quarter of this year on the road visiting sites, which which does provide us with an advantage over others who didn't get to those sites before the travel restrictions came into place. You know, I would hope that that will allow us to concentrate transactions for opportunities that that meet our stringent rules on I think obviously the most important of which is accretion now, hopefully by the time we need to visit New sites for new opportunities that are coming forward here in the near future wage is virus has been eradicated and everything else is back to normal. If not, we'll continue to find ways to get comfortable with with new high-quality transactions to further grow this company and you know what there's various options with the options that people are considering our virtual tours others are utilizing on-site Consultants other other options are continuing to utilize our early deposit structure which provides us with an option to move forward. Once the feasibility studies been completed and the remaining funding is in place. So it allows us to put up just only a small amount of front especially for the developers big project. So so we're looking at all avenues, but I can tell you everything we're looking at right now. We've been to those sites and wage.

Operator 3: Thank you. Ladies and gentlemen, we will now conduct the question-and-answer session. If you'd like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. There will be a brief pause while we compile the Q&A roster. Your first question here comes from the line of Cosmos Chiu, CIBC. Please go ahead. Your line is now open.

Operator: Thank you. Ladies and gentlemen, we will now conduct the question-and-answer session. If you'd like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. There will be a brief pause while we compile the Q&A roster. Your first question here comes from the line of Cosmos Chiu, CIBC. Please go ahead. Your line is now open.

Cosmos Chiu: Thanks, Randy, Gary, and Patrick, for the conference call here. Maybe my first question's on the acquisition pipeline and due diligence. You know, on the Franco-Nevada conference call earlier today, they talked about, you know, unique or, you know, novel sort of alternatives to doing due diligence. I'm just wondering if you're also looking at, you know, potential alternatives to doing due diligence. I guess the second part of my question is, Randy, as you mentioned, as some of the potential targets, you know, you had the opportunity to actually do due diligence, you know, before COVID-19. Have you done, you know, at those assets enough due diligence for you to be comfortable to pull the trigger at this point in time? I have a follow-up question as well.

Comfortable moving forward from a technical perspective assuming giant we go back. We're very comfortable moving forward assuming it passes our overall technical review. The the technical aspects of the site visit has been completed off. Of course. Do you going to be certain Cosmos to Cosmos? You can be sure, you know, I love I love getting my hands dirty these projects and I'll be getting onto the ground as fast as I can just to just to smell and get the sense of what's really there. So of course and and Randy, you know, I guess my follow-up question is are you seeing more opportunities in gold or you seeing more opportunities and silver I would have to say and again, I'll I'll let hey some time into but I would have to say that what we're seeing these developing here right now is is buy products from the base metal section based metal operations base metal company's not doing as well as the precious metal company name.

Randy Smallwood: Sure. Cosmos, I'll start off and then let Haytham step in, but I'm gonna start off by saying that, you know, I will say that going through this pandemic and the response that we've had, there are things that we are learning here that we will probably take out of this and help us improve our overall operations. One of them is the ability to digitally connect among businesses and among people, not having to be face to face and being able to sort of audit data and the likes.

Up there and so now it comes down to buy product from both, uh, you know, LED zinc mines or copper nickel mines copper-nickel tends to be biased more towards the gold space LED zinc seems to be biased more towards the office space currently. I would I would say we're about fifty-fifty but hate them I'll let you clarify that one. That's exactly right. What we're seeing is is a smell companies looking for ways to strengthen them is Randy said and the majority of the oh, I'm sorry. All the opportunities were looking right now our precious metals and they're both fifty-fifty split Pusher maybe touching gears a little bit here. Just you know, I see that Panther crunch constancia, of course, you know, they couldn't reach some of the minimum requirements and 2019 cents you getting additional $8,000 and twenty twenty. Could you walk me through that contract again and then in terms of you know, is there, you know any other minimums coming up in in 2021 in terms of you know, additional ounces you can receive

Randy Smallwood: We, you know, we've really had to sort of step up on that front out of necessity, but there's skills and benefits that we are gaining out of this whole process that will help in overall performance in the future. I don't know, Haytham, you wanna add a bit more to that?

Haytham Hodaly: Yeah. Yeah, you bet. Hey, Cosmos, good morning.

Cosmos Chiu: Hi, Haytham.

Haytham Hodaly: Thanks for the question. Cosmos, the primary hurdle to consummating new transactions in the near term is typically an inability to complete on-site due diligence due to travel restrictions. You know, we did spend a significant portion of our time, as Randy mentioned earlier, in Q4 of last year and Q1 this year on the road visiting sites, which does provide us with an advantage over others who didn't get to those sites before the travel restrictions came into place. You know, I would hope that that will allow us to consummate transactions for opportunities that meet our stringent hurdles, and I think obviously the most important of which is accretion.

Haytham Hodaly: Now, hopefully by the time we need to visit new sites for new opportunities that are coming forward here in the near future, this virus has been eradicated, and everything else is back to normal. If not, we'll continue to find ways to get comfortable with new high-quality transactions to further grow this company. You know what? There's various options. One of the options that people are considering are virtual tours. Others are utilizing on-site consultants. Other options are continuing to utilize our early deposit structure, which provides us with an option to move forward once the feasibility study has been completed and the remaining funding is in place. It allows us to put up just only a small amount up front, especially for the development stage projects. We're looking at all avenues.

well and

As as it was reported we did defer we gave them an extra six months, uh to satisfy that completion test. So it instead of being at the end of the year and you know, and again, this is a matter of just supporting our partner Hub is you know, we've got multiple agreements with them and and you know, providing them support in terms of that. And so we we did extend the the drug test for the contras own until June 30th of 2021. It was originally scheduled for December 31st. And so yeah, the way that works is that we get two thousand ounces per quart. They haven't satisfied. I mean, it can't remember the specific tonnage but it's a certain certain amount of tonnage that has to be mine from the papa contras owned by that time. I want to say it's four million tons of work my ass. I'm not sure the exact number and then and that's how that specified. That's the that's the only criteria on it. You know pop culture is very important for us and very important for them. We get 50% off.

Haytham Hodaly: I can tell you, everything we're looking at right now, we've been to those sites, and we're very comfortable moving forward from a technical perspective. Sorry, let me go back. We're very comfortable moving forward, assuming it passes our overall technical review. The technical aspects of the site visit has been completed.

Cosmos Chiu: Of course.

Randy Smallwood: You can be sure, Cosmos, you know, I love getting my hands dirty with these projects, and I'll be getting onto the ground as fast as I can just to smell and get the sense of what's really there, so.

Gold from that the other fifty percent of course days with hudbay and it is a very goldrich Zone on that deposit. And so there's a real strong incentive. We know that Peter and his team over at HUB am very very focused on getting that thing moving forward to be honest. There was no physical work planned over this. On Papa konsa. They still have to get through the final government approval process that they've got the community on board. They have to make sure that the government's are you know in agreement and so so it is sort of still a paper work session. It's not physical work that's being missed. And so I'm I'm pretty comfortable. I mean all you know, it's a very fluid situation obviously, but I'm pretty comfortable with their capability of satisfying that completion tests before the end of June.

Cosmos Chiu: Of course. Randy, you know, I guess my follow-on question is, are you seeing more opportunities in gold, or are you seeing more opportunities in silver?

Randy Smallwood: I would have to say, and again, I'll let Haytham chime in too, but I would have to say that what we're seeing opportunities develop in here right now is byproducts from the base metal section. Base metal operations, base metal companies not doing as well as the precious metal companies out there. Now it comes down to byproduct from both, you know, lead zinc mines or copper nickel mines. Copper nickel tends to be biased more towards the gold space. Lead zinc seems to be biased more towards the silver space. Currently, I would say we're about 50-50, but Haytham, I'll let you clarify that one.

Great. Thanks Randy. Those all the questions I have. Thanks a lot. Thank you Cosmo. Thanks for the call.

Haytham Hodaly: No, that's exactly right. What we're seeing is base metal companies looking for ways to strengthen their balance sheet, as Randy said. Oh, I'm sorry, all the opportunities we're looking at right now are precious metals, and they're about 50/50 split.

And once again ladies and gentlemen, if you would like to ask a question, please press star followed by the number one on your telephone keypad. Your next question here comes from the line of Ralph with eight Capital. Go ahead your line is now open.

Cosmos Chiu: Mm-hmm. For sure. Maybe switching gears a little bit here, just you know, I see that at Pampacancha for Constancia, of course, you know, they couldn't reach some of the minimum requirements in 2019, hence you're getting additional 8,000 ounces in 2020. Could you walk me through that contract again in terms of, you know, is there you know, any other minimums coming up in 2021 in terms of, you know, additional ounces you can receive?

Good morning. Thanks for taking my questions Randy. I'd like to get your perspective on labor force take up at the operator level of your Partnerships home. Has there been any regions or or Minds where you think that's a particular risk that the returning labor force would be less than optimal whether that be because you know, the mind is deemed essential or overseeing gradual restart of some of those operations.

Randy Smallwood: Well, as it was reported, we did defer, we gave them an extra six months to satisfy that completion test, so instead of being at the end of the year. You know, again, this is a matter of just supporting our partner, Hudbay, as you know, we've got multiple agreements with them and providing them support in terms of that. We did extend the completion test for the Pampacancha zone until 30 June 2021. It was originally scheduled for 31 December 2020. Yeah, the way that works is that we get 2000 ounces per quarter.

yeah I I would say that that is going to be a challenge at pretty well every operation you know our our our rough Vision in terms of how these mines that are under temporary suspension would be that it'll be a three to four months gradual take up as as as as you know sites are successful in terms of restarting and and obviously you know everyone should be watching closely in terms of the overall performance and if there's any type of negative response from restarting these things if if you know if all of a sudden we have a virus outbreak or something like that that's to really set things back and so it's it's a sensitive and very fluid time in in that situation and in fact you know we feel that there's probably going to be and we've seen this at some of our other operations jobs aren't under temporary suspension there is higher absenteeism rates as people that aren't comfortable with with uh you know with that that environment stay stay away and so yep

Randy Smallwood: If they haven't satisfied it, I mean, I can't remember the specific tonnage, but it's a certain amount of tonnage that has to be mined from the Pampacancha zone by that time. I wanna say it's 4 million tons of ore or something like that, but I'm not sure the exact number. And that's how that's specified. That's the only criteria on it. You know, Pampacancha is very important for us and very important for them. We get 50% of the gold from that. The other 50%, of course, stays with Hudbay, and it is a very gold rich zone on that deposit. There's a real strong incentive. We know that Peter and his team over at Hudbay are very focused on getting that thing moving forward.

Is going to be a challenge that the industry.

Basis, you know I think time is going to be the issue that that that provides that comfort that provides that you know, that that that's belief in the same environment. And so what what you know, what we hope to do is make sure that you know what the industry has to do as a whole is make sure we have the proper policies and procedures in place to maintain strong distancing to minimize exposures through a number of different concepts and get rid of, in lunch areas, you know, like there's all sorts of strategies that can be put in place to minimize risk and and you know, as long as the industry keeps keeps focusing on that. Hopefully, it's not as bad as even we've as as what we expect in terms of that but it's off the track record that actually shows that it can be done that'll provide Comfort to to some of the employees that that have that may be either of a higher risk group or just maybe more uncool.

Randy Smallwood: To be honest, there was no physical work planned over this period on Pampacancha. They still have to get through the final government approval process. Now that they've got the community on board, they have to make sure that the government's, you know, in agreement. It is sort of still a paperwork session. It's not physical work that's being missed.

Cosmos Chiu: Mm-hmm.

Randy Smallwood: I'm pretty comfortable. I mean, you know, it's a very fluid situation, obviously, but I'm pretty comfortable with their capability of satisfying that completion test before the end of June.

Cosmos Chiu: Great. Thanks, Randy. Those are all the questions I have. Thanks a lot.

Randy Smallwood: Thank you, Cosmos. Thanks for the call.

Operator 3: Once again, ladies and gentlemen, if you'd like to ask a question, please press star followed by the number one on your telephone keypad. Your next question here comes from the line of Ralph Profiti with Eight Capital. Please go ahead. Your line is now open.

Operator: Once again, ladies and gentlemen, if you'd like to ask a question, please press star followed by the number one on your telephone keypad. Your next question here comes from the line of Ralph Profiti with Eight Capital. Please go ahead. Your line is now open.

About about this, you know, our expectations are it's probably going to be about 10 to 20% impact on on assets that that aren't suspended. But but you know, I'm I'm time is times going to provide that answer. It's one of the reasons that we haven't, you know, even though we've got sort of announced dates with respect to restarts. We're not going to give up date a guy came in 2020 until we have confidence about that. We start projection about how how these assets look like going forward. So I don't expect to be giving updated guidance for at least a couple of months, you know as we watch a monitor how how these restarts move forward.

Ralph Profiti: Good morning. Thanks for taking my questions. Randy, I'd like to get your perspective on labor force take up at the operator level of your partnerships. Has there been any regions or mines where you think there's a particular risk that the returning labor force will be less than optimal, whether that be because, you know, the mine is deemed essential or we're seeing gradual restart of some of those operations?

Randy Smallwood: Yeah. I would say that is gonna be a challenge at pretty well every operation. You know, our rough vision in terms of how these mines that are under temporary suspension would be that it'll be a 3- to 4-month gradual take up as you know, sites are successful in terms of restarting. Obviously, you know, everyone will be watching closely in terms of the overall performance and if there's any type of a negative response from restarting these things, if you know, if all of a sudden we have a virus outbreak or something like that's gonna really set things back. It's a sensitive and very fluid time in that situation.

And Randy on the on the CSR fund that you just launched you did mention some of the operations where that's ending is concentrated off and it sounded to me like most of the spending around the communities for is for testing and health related matters, but also somebody there is you talked about are pretty remote. I'm wondering if you're seeing in these communities stresses on even basic human needs, you know Food Water Shelter that type of stuff.

Yeah, well, you know and I did list off a bunch of the stuff in terms of health Focus but we've also food banks are very very important part of our contributions. And in fact, I think in the quantum, it's probably about a little bit less than half of the money that's gone out is gone towards food banks in front line Charities that are providing direct support. And so so we've been you know, really sort of focused on on that side. This is not with this fund that we the CSR fund that we put you know that we came up with it's not there to to sort of support research. It's there to support the front lines to try and help both Partners be more successful in managing the risks at these sites and and minimizing the impact and really I think that's what it comes down to is just uh, you know, the the stronger, you know, we have this undying belief in Wheaton at the stronger. Our partners are the stronger we are so everything we can do to help our partners be successful in managing risks and and Ed.

Randy Smallwood: In fact, you know, we feel that there's probably going to be and we've seen this at some of our other operations that aren't under temporary suspension, there is higher absenteeism rates as people that aren't comfortable with, you know, with that environment, stay away. This is going to be a challenge that the industry faces. You know, I think time is gonna be the issue that provides that comfort, you know, that belief in a safe environment.

Randy Smallwood: What we hope to do is make sure that what the industry has to do as a whole is make sure we have the proper policies and procedures in place to maintain strong physical distancing, to minimize exposures through a number of different concepts, and get rid of common lunch areas. You know, like, there's all sorts of strategies that can be put in place to minimize risk. You know, as long as the industry keeps focusing on that, hopefully it's not as bad as even we expect in terms of that.

and moving forward will deliver returns to us and and it's just it's

The right thing to do it's it's you know, it's it's very that we're we're proud to provide that Focus. I think it's what makes you Wheaton unique in the in the streaming space is the fact that we do, you know, put a lot of effort in terms of trying to provide additional support to our partners in Ralph's just to follow up on what Randy said. I mean some of the programs were sponsoring one of them is prepping food to four thousand families in the Amazon, you know, another one that we're looking at right now in addition to you know, the the medical side and the the food side is even the socio-economic we're we're looking potentially to help fund mask Manufacturing in a remote Community just to give them some additional income coming in besides mine. So we're looking at a pretty broad-based wage respond to the fund.

Randy Smallwood: It's gonna be the track record that actually shows that it can be done that'll provide comfort to some of the employees that have that may be either of a higher risk group or just may be more uncomfortable about this. You know, our expectations are it's probably gonna be about a 10% to 20% impact on assets that aren't suspended. You know, time is gonna provide that answer. It's one of the reasons that we haven't. You know, even though we've got sort of announced dates with respect to restarts, we're not going to give updated guidance in 2020 until we have confidence about that restart projection, about how these assets look like going forward.

Randy Smallwood: I don't expect to be giving updated guidance for at least a couple of months, you know, as we watch and monitor how these restarts move forward.

Well done. Thank you.

Thank you Ralph.

Your next question comes from the line of George topping with Industrial Alliance, please go ahead your line is now open. Thanks. Hello, everyone else. The voisey's bay comes lien. Maintenance any thoughts on what value needs to see obviously how your price is probably but also with anything else that they that they're looking for before they restart the the operation the three months. Yeah, George on Boise's bathing a couple of things. They want to restart, you know, they they shut down they didn't have to Canada hasn't mandated them in order to to the province that they shut down. This was more in response to protecting the local indigenous communities nearby what they're going to want to make sure they see that any kind of viral outbreak is controlled and not threatening. The the indigenous Community is Randy said part of that will come with time.

Ralph Profiti: Randy, on the CSR fund that you just launched, you did mention some of the operations where that spending is concentrated, and it sounded to me like most of the spending around the communities is for testing and health related matters, but also some of these areas you talked about are pretty remote. I'm wondering if you're seeing in these communities stresses on even basic human needs, you know, food, water, shelter, that type of stuff.

Randy Smallwood: Yeah. Well, you know, I did list off a bunch of this stuff in terms of health focus, but food banks are also a very important part of our contributions. In fact, I think in the quarter, it's probably about a little bit less than half of the money that's gone out has gone towards food banks and frontline charities that are providing direct support. We've been, you know, really sort of focused on that side. This fund, the CSR fund that we put, you know, that we came up with, it's not there to sort of support research. It's there to support the front lines.

And also bolstering and making sure that those local indigenous communities do have adequate access to healthcare, you know, right now they said it was a four months shutdown announced that about a month month-and-a-half. We're looking at another two or three months and we wouldn't anticipate at this point any reason why they wouldn't restart it according to that timeline Georgia. One of the things you have to recognize is that remote Northern Communities. If you go back a hundred years, they suffered seriously through the Spanish Flu influenza that that happened about a hundred years ago and there's still pretty strong memories of of that and a lot of these remote Northern Communities and and so the matter of just being sensitive towards towards those concerns and and I think violence, you know, like, you know valet has given us lots of examples as to why we think there's one of our strongest partners and this is a good example of them respecting the the Dead

Ralph Profiti: Mm-hmm.

Randy Smallwood: To try and help our partners be more successful in managing the risks at these sites and minimizing the impacts. Really, I think that's what it comes down to. You know, we have this undying belief in Wheaton that the stronger our partners are, the stronger we are. Everything we can do to help our partners be successful in managing risks and moving forward will deliver returns to us. It's just the right thing to do. You know, it's an area that we're proud to provide that focus.

Randy Smallwood: I think it's what makes Wheaton unique in the streaming space, is the fact that we do, you know, put a lot of effort in terms of trying to provide additional support to our partners.

Gary Brown: Ralph, just to follow up on what Randy said, I mean, some of the programs we're sponsoring, one of them is providing food to 4,000 families in the Amazon. You know, another one that we're looking at right now, in addition to, you know, the medical side and the food side, is even the socioeconomic, where we're looking potentially to help fund mask manufacturing in a remote community, just to give them some additional income coming in besides the mine. We're looking at a pretty broad-based response for the fund.

leads of the local community

Right. Yeah, totally understood.

You know some unlikely that comes into play but that was just interested. Then you probably wouldn't even use it. But the the late penalties if if for whatever reason they deliver January 1st, twenty one like Papa Concha.

Oh, this is now constancia down in in SoHo his million for volley on the Cobalt. If for whatever reason they don't deliver, right so you right. Okay, so, you know, what if if there's a suspension of operations from there is no late penalties for that. We get a we get our percentage of lack of of our Cobalt from the voisey's bay operation irrespective of and if it's not operating for something like this, there is no penalties. I will in a perverse way sort of highlight the fact that the suspended suspended operations. Of course the Cobalt that would normally being being produced now is being pushed back and we'll actually now fall into our contract term. So so we will wind up with the ultimate package more metal out of out of this as a result of this suspension immediately. I have a hard time, you know believing that when when I look at what's happening in the rest of the Canada with respect

Ralph Profiti: Well done. Thank you.

Randy Smallwood: Thank you, Ralph.

Gary Brown: Thank you, Ralph.

Operator 3: Your next question comes from the line of George Topan with Industrial Alliance. Please go ahead. Your line is now open.

Operator: Your next question comes from the line of George Topping with Industrial Alliance. Please go ahead. Your line is now open.

George Toppan: Great. Thanks. Hello, everyone. The Voisey's Bay currently in care and maintenance. Any thoughts on what Vale needs to see, obviously higher prices probably, but also, anything else that they're looking for before they restart the operation after three months?

George Topping: Great. Thanks. Hello, everyone. The Voisey's Bay currently in care and maintenance. Any thoughts on what Vale needs to see, obviously higher prices probably, but also, anything else that they're looking for before they restart the operation after three months?

Gary Brown: Yeah. George, on Voisey's Bay, there's a couple of things they wanna restart. You know, they shut down, they didn't have to. Canada hasn't mandated them, nor the province that they shut down. This was more in the response to protecting the local indigenous communities nearby. What they're gonna wanna make sure they see is that any kind of viral outbreak is controlled and not threatening the indigenous community. As Randy said, part of that will come with time and also bolstering and making sure that those local indigenous communities do have adequate access to healthcare. You know, right now, they said it was a 4-month shutdown. They announced that about a month and a half ago. We're looking another 2 to 3 months.

To the mining industry. I'm I'm pretty comfortable that that valet will find a way to restart operations before the end of this year at at voisey's Bay. I and I know that they'll find a way to do it with faith, you know minimize risk as as much as possible. We've seen that we've seen valet being very successful down at the Lobo in terms of managing that risk. We've seen them at home taking good initiatives there. So I'm confident that they'll find a way to to to provide that Comfort to those communities and have that operation up and running as as as as January 1st gets closer.

Gary Brown: We wouldn't anticipate, at this point, any reason why they wouldn't restart according to that timeline.

Randy Smallwood: George, yeah, one of the things you have to recognize is that remote northern communities, you know, if you go back 100 years, they suffered seriously through the Spanish flu, influenza that happened about 100 years ago. There's still pretty strong memories of that in a lot of these remote northern communities. So the matter of just being sensitive towards those concerns. I think Vale, you know, Vale has given us lots of examples as to why we think they're one of our strongest partners. This is a good example of them respecting the needs of the local community.

Go ahead George. I guess I would just add to that. It's Gary here, you know the part of the protection we get from the from the voisey's bay contractors that we receive Cobalt regardless of whether it comes from the underground or or V. Yeah, and so, you know the open pit operation there is expected to be up and running by January 1st. And so that would be ounces that we hadn't or or uh, uh Cobalt rounds that we hadn't anticipated. There's no seating in that in the first place when we when we had that opportunity.

George Toppan: Right. Yeah, understood. You know, it's unlikely that comes into play, but I was just interested, and you probably wouldn't even use it, but are there late penalties if for whatever reason they cannot deliver 1 January 2021, like Pampacancha?

George Topping: Right. Yeah, understood. You know, it's unlikely that comes into play, but I was just interested, and you probably wouldn't even use it, but are there late penalties if for whatever reason they cannot deliver 1 January 2021, like Pampacancha?

Go to Great. Okay. Thanks a lot. Thank you. George. Stay healthy.

Your next question comes from the line of Jackie is the capital Market, please go ahead your line is now open. Thanks very much. I just wanted to Circle back to your your wage growth with with these the equity markets being as volatile as they are just change your view at all on looking at other smaller roads, the existing companies or packages of Loki's from private companies and how would you feel for that kind of situation differ from a level of ability home? Yeah, Jackie, I'll I'll start off and then let hate them chime in if you don't mind so, you know, we we in terms of consolidation within the industry. We, we are monitoring that to keep an eye on it, but I will say this is a strong business model and when we can make Acquisitions that about 1 times now, it's it's tough to sort of birth.

Randy Smallwood: Oh, at Pampacancha, this is now Constancia down in Hudbay, so

Randy Smallwood: At Pampacancha, this is now Constancia down in Hudbay, so

George Toppan: I was meaning for Vale on the cobalt if for whatever reason they don't deliver.

George Topping: I was meaning for Vale on the cobalt if for whatever reason they don't deliver.

Randy Smallwood: Oh, right.

George Toppan: January.

George Topping: January.

Randy Smallwood: Right. Okay. You know what, if there's a suspension of operations from COVID, there is no late penalties for that. We get our percentage of our cobalt from the Voisey's Bay operation, irrespective of. If it's not operating for something like this, there is no penalties. I will, in a perverse way, sort of highlight the fact that the suspended operations, of course, the cobalt that would normally being produced now is being pushed back and will actually now fall into our contract term. We will wind up with ultimately more metal out of this, as a result of this, suspension immediately.

Randy Smallwood: I have a hard time, you know, believing that when I look at what's happening in the rest of Canada with respect to the mining industry. I'm pretty comfortable that Vale will find a way to restart operations before the end of this year at Voisey's Bay. I know that they'll find a way to do it with, you know, minimized risk, as much as possible. We've seen Vale being very successful down at Salobo in terms of managing that risk. We've seen them at Sudbury taking good initiatives there. I'm confident that they'll find a way to provide that comfort to those communities and have that operation up and running as 1 January gets closer.

with going out and actually sourcing

In the new opportunities and and I do believe that we're going to see a wealth of opportunities over the next couple of months as people get the way through this pandemic and especially on the base metal side with the wage base Metal pricing. Um, you know, we're we're comfortable. We're going to see a lot of opportunities in that space. Obviously if it did come to a consolidation opportunity off most of those assets that we've seen, you know, that that other competitors are appears would have acquired or assets that we would have looked at during the original due diligence process any wage, you know, the most effective pretty well every opportunity out. There has been a competitive process and so we've had a crack at some of this some of these opportunities and I will say that you know, if they're if they were good quality opportunities and and a lot of them don't meet our criteria from a quality perspective. But but then after that we have to be cognizant of the of some of the Dead

Gary Brown: George, I guess I would just add to that, it's Gary here. You know, the part of the protection we get from the Voisey's Bay contract is that we receive cobalt regardless of whether it comes from the underground or the open pit. You know, the open pit operation there is expected to be up and running by 1 January. That would be cobalt ounces that we hadn't anticipated receiving in the first place when we valued that opportunity.

Weaknesses the structural weaknesses that and particularly the the private Capital the private Equity money has been pushing into their their contracts which month which dramatically lower the value of their opportunities and and we've seen some pretty dramatic failures on several fronts over the last six to eight months where they, you know, tried to talk to, you know, different forms of a liquidity event in terms of trying to crystallize that and and the market was intelligent enough to realize that there were structural weaknesses that dramatically I dropped the value of those opportunities relative to a traditional streaming portfolio like we have and so so we always have to measure it that way and I think there's been some good signals from the market back to those private Equity groups, you know about about the impact of some of their decisions and how that does impact value on an overall basis. So, you know, we're constantly open to that and and we had

George Toppan: Got it. Great. Okay, thanks a lot.

George Topping: Got it. Great. Okay, thanks a lot.

Randy Smallwood: Thank you, George. Stay healthy.

Operator 3: Your next question comes from the line of Jackie Przybylowski with BMO Capital Markets. Please go ahead. Your line is now open.

Operator: Your next question comes from the line of Jackie Przybylowski with BMO Capital Markets. Please go ahead. Your line is now open.

Jackie Przybylowski: Thanks very much. I just wanted to circle back to your comments on growth. With the equity markets being as volatile as they are, does this change your view at all on looking at other maybe smaller royalty streaming companies or packages of royalties from private companies? How would the due diligence for that kind of situation differ from asset level due diligence?

Had success on on that front in the past and so we'll continue to monitor. But but I would predict that it's unlikely over the next while mainly because you know, we seem better value in terms of New Opportunities out in the out in the morning space. I hate them you get anything you want to add to that. So yeah. Thanks. Good morning, Jackie. Just I guess the only thing I'll add with regards to consolidation in the in the stream space specifically is that you know, we're always monitoring for these things. We've got our own internal models that we go through and do the analysis on I can tell you it's only recently that our share price is actually start to recover. So we're not there yet wage. Everything we do has to be accretive. We're not looking at growth for the sake of growth. So that's the one thing to keep in mind secondly with your second question with regards to due diligence on royalty packages. You have Randy at the nail right on the head. We've been to a lot of these sites already and the one thing you have to recognize when these warranty packages come up you typically don't get the ability to actually go to these sites anyway, because it's somebody holding a royalty from another corporate job.

Randy Smallwood: Yeah, Jackie, I'll start off and then let Haytham chime in if you don't mind. So, you know, in terms of consolidation within the industry, we constantly are monitoring that to keep an eye on it. But I will say this is a strong business model, and when we can make acquisitions that about 1x NAV, it's tough to sort of compete with going out and actually sourcing the new opportunities. I do believe that we're going to see a wealth of opportunities over the next couple of months as people get their way through this pandemic, and especially on the base metal side with the weakness in base metal pricing.

Randy Smallwood: You know, we're comfortable we're gonna see a lot of opportunities in that space. Obviously, if it did come to a consolidation opportunity, most of those assets that we've seen, or you know that other competitors or peers would have acquired are assets that we would have looked at during the original due diligence process anyways. You know, in fact, pretty well every opportunity out there has been a competitive process, and so we've had a crack at some of these opportunities.

Another company, so you know, you you you do a lot of the desktop due diligence and you you you make sure that you're comfortable from that perspective. You know, there's a reason we haven't done a lot of these warranty packages we refused to pay higher than what they're worth whereas others are willing to use

Is there paper to do so, you know, we're going to focus on high-quality streaming transactions. That's that's where we see the the the best growth in this environment. And that's where we we make our best return for our shareholders. That sounds great. Thanks a lot. That's that's all the questions I have. Thank you, Jackie and stay healthy. Thank you. Everyone keeps dialing in today in closing We Believe Wheaton is well-positioned to continue delivering value to our shareholders for a number of different reasons.

Randy Smallwood: I will say that, you know, if they were good quality opportunities, and a lot of them don't meet our criteria from a quality perspective, but then after that, we have to be cognizant of some of the weaknesses, the structural weaknesses that, and particularly the private capital, the private equity money has been pushing into their contracts, which dramatically lower the value of their opportunities. We've seen some pretty dramatic failures on several fronts over the last 6 to 8 months, where they, you know, tried to you know to different forms of a liquidity event in terms of trying to crystallize that.

Firstly by having low and predictable costs that result in some of the highest margins in the entire precious-metals space and strong operating cash flow.

Secondly through a growing dividend that we increased by over 10% from 2019 thirdly through our steady organic growth profile over the next several years and am in track record of a creative quality acquisitions fourthly by offering our shareholders exposure to some of the best Minds in the world through our high-quality portfolio of long-life low-cost assets and lastly by being a leader among the precious metal companies and sustainability through initiatives such as the CSR fund wage and supporting our partners and the communities in which we live and operate.

Randy Smallwood: The market was intelligent enough to realize that there were structural weaknesses that dramatically dropped the value of those opportunities relative to a traditional streaming portfolio like we have. We always have to measure it that way, and I think there's been some good signals from the market back to those private equity groups, you know, about the impact of some of their decisions and how that does impact the value on an overall basis.

Randy Smallwood: You know, we're constantly open to that, and we have had success on that front in the past, and we'll continue to monitor, but I would predict that it's unlikely over the next while, mainly because you know, we see better value in terms of new opportunities out in the mining space. Haytham, you got anything you wanna add to that?

I do. Look forward to speaking with you all again soon. Stay healthy and stay safe. Thank you.

This concludes this conference calls for today. Thank you for participating please disconnect your lines dead dead dead dead dead.

Haytham Hodaly: Yeah. Thanks. Good morning, Jackie. Just, I guess, the only thing I'll add with regards to consolidation in the streaming space specifically is that, you know, we're always monitoring for these things. We've got our own internal models that we go through and do the analysis on. I can tell you, it's only recently that our share price has actually started to recover, so we're not there yet. Everything we do has to be accretive. We're not looking at growth for the sake of growth, so that's the one thing to keep in mind. Secondly, with your second question with regards to due diligence on royalty packages. Yeah, Randy hit the nail right on the head. We've been to a lot of these sites already.

Haytham Hodaly: The one thing you have to recognize, when these royalty packages come up, you typically don't get the ability to actually go to these sites anyway because it's somebody holding a royalty from another corporate, from another company. You know, you do a lot of the desktop due diligence, and you make sure that you're comfortable from that perspective. You know, there's a reason we haven't done a lot of these royalty packages. We refuse to pay higher than what they're worth, whereas others are willing to use their paper to do so. You know, we're gonna focus on high quality streaming transactions. That's where we see the best growth in this environment, and that's where we make the best return for our shareholders.

Dead dead dead dead dead.

Jackie Przybylowski: That sounds great. Thanks a lot. That's all the questions I have. Thanks.

Randy Smallwood: Well, thank you, Jackie, and stay healthy. 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 costs that result in some of the highest margins in the entire precious metals space and strong operating cash flow. Secondly, through a growing dividend that we increased by over 10% from 2019. Thirdly, through our steady organic growth profile over the next several years and proven track record of accretive quality acquisitions. Fourthly, 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.

Thursday

Randy Smallwood: Lastly, by being a leader among precious metal companies in sustainability through initiatives such as the CSR fund and supporting our partners and the communities in which we live and operate. I do look forward to speaking with you all again soon. Stay healthy and stay safe. Thank you.

Operator 3: This concludes this conference call for today. Thank you for participating. Please disconnect your lines.

Operator: This concludes this conference call for today. Thank you for participating. Please disconnect your lines.

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