Q1 2020 Earnings Call
Thursday
Thursday
dead dead dead dead dead.
Dead dead dead. Good morning. Ladies and gentlemen. Thank you for standing by welcome to Wheaton precious metals 2020 first quarter results conference call all lines have been placed on me to prevent any background noise after the speakers remarks there.
The question and answer session. If you would like to ask a question during this time, simply, press star for 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 May 7th, 2020 at 11 a.m. Eastern time. I will now turn the conference over to mister Patrick karun kiss vice president of investor relations, please go ahead thank you operator good morning, ladies and gentleman and thank you for participating in today's call. I'm joined on the line today by Randy Smallwood. Wheaton precious metals off 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 at some of the commentary in today's call may contain forward-looking saved. 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. Yep.
Forward-looking statements please refer to the section.
Title 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's form 40-f and we danced form 6-k both on file with the Securities and Exchange Commission these documents together with the queue 120 MB and a and the press release from last night said that 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 or or mining operations from which we purchased his precious metals off as a result of an epidemic including the covid-19 pandemic. Where is related to mining operations from which we didn't purchase his precious metals. They continued ability of whedon's counterparty to satisfy their under their obligations wage is not a purchase agreements and the impact of material changes. In fact law or jurisprudence in the c r a settlement. It should be noted that all figures referred to on today's call or any US Dollars unless otherwise noted in. Yep.
In reference to Wheaton or Wheaton precious metals on this call includes Wheaton precious metals Corp and orange wholly-owned subsidiaries as applicable now, I'd 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.
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 with 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 smooth 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.
I will provide further details and updates on Wheaton's response to covid-19 booting 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.
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 that 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.
Action in q1 20-21 consistent with the prior-year solo both production increased by 3% despite the throughput being negatively affected by the rainy season and unscheduled maintenance saying the mass-produced 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 turn 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 indicates that constancia lower throughput. The increase in silver production was primarily the result of a significant increase in grades and recovery at 10:00 resulting in record a tribute both production.
The increase in Palladium production is reflective of the blitz project ramping up and the fill the middle campaign at these folder operation.
Golden sales amounting 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 slow. This was partially offset by 15% off and silver sales volumes driven by the increasing silver production and he 12020. I got March 31st, 2020 approximately 88400 month old ounces 5.3 million table silver ounces and 4,900 payable Palladium ounces have been produced but not get delivered company. We estimated National level for table ounces 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.
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 50% decrease in Gold equivalent sales volumes of this Revenue 63% was attributable gold 33% was attributable to 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 had the twelve million dollars in the first quarter of 2020 representing a decrease of four million dollars from q1 2019 with the decreasing primarily related to lower accrued costs associated with performance share units or
insurance cost
For the first quarter of 2020 and I had the six million dollars resulting in an effective interest rate and understanding debt of 3.03% as compared to $13 in in a call. I mean effective interest rate of 4.28% incurred in q1 2019.
Navigating to manage the $95 million in the first quarter of 2020 compared to $57 in q1 2019 basic earnings per share in sixty-two Thousand to twenty one cents compared to $0.13 per share in the prior-year awkward and cash flow for the first quarter of 2020 amounted to $178 million dollars or full cents per share compared to $118 or $0.27 per share of the prior-year representing a 48% increase on a per show basis.
Ben Stone, the company's dividend policy the company's fault has declared a dividend of $0.10 to show available to shareholders of record on May 22nd, 2020 and under the name reimbursement planned or allowed to do offer shareholders. The option of having their dividends reinvested in newly issued common shares of the company the 1% discount to Market.
For 2020 the company 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 galvin's reflecting the recently-announced twelve million dollar home community support and response from just the only new address 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 retailed $159 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 dollars in q1 twenty-twenty resulting in television cash equivalents at March 31st of a $127 Million Dead this combined with the $716 outstanding under the two billion dollar revolving credit facility resulted in a net Desk position as at March thirty first month of $189 as the name of the company is Homes at three hundred million dollar offer Market or a GM program on April 16th, 2020 under wage a little 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 all subs to execute by the freedom of birth.
Strategy includes Financial submarine with. I turn the call back over and Randy.
Thank you, Gary.
The company is keeping up to date on developments surrounding covid-19 and it's 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.
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 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 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
The restrictions are 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.
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 after the 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 where these funds could help fill an immediate Gap.
We have already identified initiatives with our partners around the globe. Oh San Dimas. Constancia Sudbury Stillwater triple seven voice East Bay ultra-strong an extra 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 wage 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.
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 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 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.
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 to digitally connect amongst businesses and amongst nice 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 in 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 doing Cosmos 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 wage.
difficult portion of our time as Randy mentioned earlier in the fourth quarter of last
Here and the first quarter 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 off Jackson's for opportunities 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. This virus has been eradicated. Nothing 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 one of the options that people are considering our actual towards 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 there may be funding is in place. So it allows us to put up just only a small amount of front especially for the developers state 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 we're very comfortable moving forward from a text log.
I'm assuming drink 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. Of course, you're going to be sure to Cosmos 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 suck smell and get the sense of what's really there. So of course and and Randy, you know, I guess my following question is are you seeing more opportunities in gold or purple opportunities and silver?
I would have to say and and again, I'll I'll let hey some time into but I would have to say that what we're seeing opportunities developing here right now is is buy products from the base metal base metal operations base metal company's not doing as well as the precious metal companies out there. And so now it comes down to buy product from both. Uh, you know, I think mine's or copper nickel mines copper-nickel tends to be biased more towards the gold space LED zinc seems to be biased more towards the silver space currently. I would I would say we're about fifty-fifty. But hey, I'll let you clarify that one. Yeah, that's exactly right. What we're seeing is is based mail companies looking for ways to strengthen their balance sheet is Randy said and the majority of the edge of the opportunities were looking right now our precious metals and they're both fifty-fifty split Pusher maybe Switching gears a little bit here. Just you know, I see that Pampered Chef
What constancia of course you know, they couldn't reach some of the minimum requirements and 2019 cents you getting additional eight thousand ounces and twenty twenty. Could you walk me through that contract again and then in terms of choice, is there a you know any other minimum coming up in in 2021 in terms of you know additional ounces you can receive.
Well and as as it was reported, we did defer we gave them an extra six months to satisfy that completion test. So it instead of being at the end of the year off, 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 life the completion test for the contras own until June 30th of 2021. It was originally scheduled for December 31st. And so yeah, the way that it works is that we get two thousand gallons per quarter if they haven't satisfied. I mean, it can't remember the specific tonnage but it's a sitting certain amount of tonnage that has to be mine from the papa contras owned by that time. I want to say 1/4 tons of war or something like that, but 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 country is very important for us and very important for Thursday.
We get 50% of the 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 Hyundai are very very focused on getting that thing moving forward to be honest. There was no physical work planned over this. On topic on should they still have to get through the final government approval process now that they've got the commission 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, 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.
Great. Thanks Randy. Those all the questions I have. Thanks a lot. Thank you Cosmo. Thanks for the call.
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.
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 mines where you think that's a particular risk that 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.
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 aren't under temporary suspension. There is higher absenteeism rates as people that aren't comfortable with with you know with that that environment stay stay away and so yep.
Is going to be a challenge that the industry faces, you know, I think time is going to be the issue that that that provides that comfort that provides that you know, that that off that belief in the safe 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 physical 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 birth 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 well in terms of that but it's going to be 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 that may be either of a higher risk wage.
group or just maybe more uncomfortable about
About this, you know, our expectations are it's probably going to be about 10 to to 20% impact on on assets that that aren't suspended. But but you know time time the 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 to give updated guidance in twenty years until we have confidence about that restart 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 off, you know as we watch a monitor how how these restarts move forward.
And Randy on the on the CSR phone that she just launched you did mention some of the operation that were that 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 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. Yeah. Well, you know and I did list off a bunch of the stuff in terms of health Focus, but we've also serve 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 this this fund that we the CSR fund that we put you know that we came up with it's not there to wage.
Services Port research it's there to support the front lines to try and help our 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 you know, the the stronger, you know, we have this undying belief in Wheaton at the stronger. Our partners are the stronger. We are off everything we can do to help our partners be successful in managing risks and and and 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 not 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 providing food to age.
Mm 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 responding to find well done. Thank you.
Thank you.
Your next question comes from the line of George Thompson with Industrial Alliance, please go ahead your line is now open. Hello, everyone off. The The voisey's Bay tons, Liam. Maintenance any thoughts on what value needs to see obviously how your price is probably but also anything else that they that they are looking for before they restart the the operation after three months of Bank in George on Boise's Bay. There's a couple of things they want to restart, you know, they they shut down they didn't have to Canada has mandated them in order to to the province that they shut down. This was more in response to protect 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. Yep.
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 four months shut down and said about a month month-and-a-half ago. So we're looking at another two or three months and we wouldn't anticipate at this point any reason why they wouldn't restart according to that timeline, Georgia things you have to recognize is that remote Northern Communities all if you go back a hundred years, they suffered seriously through the Spanish Flu influenza that that happened about five years ago and they're 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 out towards those concerns and and I think valet, you know, you know valet has given us lots of examples as to why we think we're there is one of our strongest partners and this is a good example of them respect.
the the the needs of the local community
Right. Yeah closely understood, you know, you know, it's unlikely that comes into play but that was just interested. Then you probably wouldn't even use it. But the way the late penalties if if for whatever reason they cannot deliver January 1st, twenty one like Papa John's.
Oh, this is now constancia down in in today. So I was meeting for volley on the Cobalt. If for whatever reason they don't deliver wage, 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 wage 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
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, you know, minimize risk as as much as possible. We've seen that I have seen ballet be very successful down at the Lobo in terms of managing that risk. We've seen them at Sudbury taking good initiatives there. So I'm confident that they'll find a way to to provide that Comfort to those opportunities and have that operation up and running as as as as January 1st gets closer.
Go ahead and George. I guess I would just add to that. It's Gary here, you know the part of the protection we get from home from the voisey's bay contractors that we receive Cobalt regardless of whether it comes from the underground or or the open Pittsburgh. 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 Cobalt Rams that we hadn't anticipated receiving a home in the first place when we when we had that opportunity.
Go to Great. Okay. Thanks a lot. Thank you. George. Stay healthy.
Your next question comes from the line of Jackie pilot scheme is the capital Market, please go ahead and your line is now open. Thanks very much. I just wanted to Circle back to your your call Jeff gross with with these the equity markets being installed now is they are just change your view at all on looking at other smaller roads suck in companies or packages of royalties from private companies and how would you feel for that kind of situation differ from a level do go to home? Yeah, Jackie, I'll I'll start off and then let hey some 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 uh about 1 times now, it's it's tough to sort of compete.
With going out and actually sourcing 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 their way through this pandemic and off on the base metal side with the weakness in base Metal pricing. 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 job opportunity most of those assets that we've seen, you know, that that other competitors are appears would have acquired our assets that we would have looked at home in the original due diligence process. Anyways, you know the most in fact pretty well every opportunity out. There has been a competitive process and so we've had a crack at some of this off some of these opportunities and and I will say that, you know, if there if there 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 dead
the center of the of some of the weaknesses the structural weakness
Is that and the particularly the the private Capital the private Equity money has been uh, uh pushing into their their contracts which which dramatically lower the 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 to to a 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 dropped the value of them 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 that 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 have had success dead.
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 see better value in terms of New Jersey is out in the out in the mining space. I hate them you anything you want to add to that. Yeah. Thanks. Good morning, Jackie. Just I guess the only thing I'll add with regards to consolidation in the in the streaming space specifically. In fact 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 started to recover. So we're not there yet everything we do happen to be a creative. 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 hit the nail right on the head. We've been to a lot of these sites 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 from another company so, you know dead.
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 refuse to pay higher than what them whereas others are willing to use their 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 best growth in this environment. And that's where we we make the best return for our shareholders. That sounds great. Thanks a lot. That's all the questions I have. Thank you Jackie and kathi. Thank you everyone for dialing in today and 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 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.
Hi.
Do look forward to speaking with you all again soon. Stay healthy and stay safe. Thank you.
This concludes this conference call for today. Thank you for participating please disconnect your lines dead dead dead dead dead.
Dead dead dead dead.
Thursday Thursday