Q2 2024 Wheaton Precious Metals Corp Earnings Call

Good morning, ladies and gentlemen, thank you for standing by welcome to Wheaton precious metals 2024 second quarter results Conference call.

Speaker Change: All lines have been placed on mute to prevent any background night. After the Speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time seem to your practice star followed by the number one on your telephone keypad or you may type in your question in the queue any box I'm. The webinar, if he would like to draw your question piece presses.

Anne Marie: Star followed by the number to you. Thank you I would like to remind everyone that this conference call is being recorded on Thursday August eight 2024 at eight P. M. Eastern time I've allowed to turn the conference over to Anne Marie <unk>, Vice President of Investor Relations. Please go ahead.

Anne Marie: Thank you operator, good morning, ladies and gentlemen, and thank you for participating on today's call I'm joined today by Randy Smallwood, Wheaton precious Metals', President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, Jason <unk> Senior Vice President of corporate development and West Carson Ice President of Finance operations. Please note that there is not currently on the web.

Speaker Change: A slide presentation accompanying this conference call is available in PDF format on the presentations page of our website. Some of the commentary in today's call may contain forward looking statements and I would direct everyone to review slide two of the presentation, which contains important cautionary notes regarding forward looking statements. It should be noted that all figures referred to on today's call are in U S dollars unless otherwise.

Operator: Some of the commentary in today's call may contain forward-looking statements, and I would direct everyone to review slide two of the presentation, which contains important cautionary notes regarding forward-looking statements. It should be noted that all figures referred to on today's call are in U.S. dollars unless otherwise noted. With that, I'd like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Emma Murray: Commentary Today's call may contain forward-looking statements, and I would direct everyone to review slide 2 of the presentation, which contains important cautionary notes regarding forward-looking statements. It should be noted that all figures referred to on today's call are in U.S. dollars unless otherwise noted. With that, I'd like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Speaker Change: With that I'd like to turn the call over to Randy Smallwood, our president and Chief Executive Officer.

Speaker Change: Okay.

Randy Smallwood: Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton's second quarter results for 2024. I am pleased to announce that our portfolio of long-life, low-cost assets has delivered another solid quarter, generating $234 million in operating cash flows, resulting in record cash flows of over $450 million for the first half of this year. This performance underscores the effectiveness of our business model in leveraging rising commodity prices while maintaining strong margins.

Thank you Emma and good morning, everyone. Thank you for joining us today to discuss Wheaton second quarter results of 2024.

Randy Smallwood: I am pleased to announce that our portfolio of long life low cost assets has delivered another solid quarter generating $234 million in operating cash flows.

Randy Smallwood: Resulting in record cash flows of over $450 million for the first half of this year.

Randy Smallwood: This performance underscores the effectiveness of our business model and leveraging rising commodity prices, while maintaining strong margins.

Randy Smallwood: The company has produced over 305,000 gold equivalent ounces year to date, and we are well on track to achieve our 2024 production guidance of 550,000 to 620,000 gold equivalent ounces. The company also remains very liquid with $540 million in cash at our quarter end and a $2 billion undrawn revolving credit facility, which, when coupled with the strength of our forecasted operating cash flow... Provides strong flexibility to fund all outstanding commitments as well as the capacity to acquire additional creative mineral stream industries.

Randy Smallwood: The company has produced over 305000 gold equivalent ounces year to date, and we are well on track to achieve our 2024 production guidance of 550000 to 620000 gold equivalent.

Randy Smallwood: <unk> analysis.

Randy Smallwood: The company also remains very liquid with $540 million in cash at our quarter end and a $2 billion undrawn revolving credit facility, which, when coupled with the strength of our forecasted operating cash flow... provides strong flexibility to fund all outstanding commitments as well as the capacity to acquire additional creative mineral stream industries.

Randy Smallwood: The company also remains very liquid with $540 million in cash at our quarter end and a $2 billion undrawn revolving credit facility, which when coupled with the strength of our forecasted operating cash flows provide strong flexibility to fund all outstanding commitments as well.

Randy Smallwood: Has the capacity to acquire additional accretive mineral stream interests.

Randy Smallwood: The Corporate Development Team remains actively engaged in evaluating new opportunities and may continue to see a healthy appetite for streaming as a source of capital for the mining industry. In addition, during the quarter, we published our annual sustainability and climate change report.

Our corporate development team remains actively engaged in evaluating new opportunities and we continue to see healthy appetite for streaming as a source of capital for the mining industry.

Randy Smallwood: In addition, during the quarter, we published our annual sustainability and climate change report.

Randy Smallwood: And we are proud to have been ranked among the top 10 in Corporate Night's 50 Best Corporate Citizens in Canada for 2024, among the Founders and Architects of Sustainable Streaming. This accomplishment is reflective of our commitment to operating responsibly in all facets of our business. Performance in the first half of 2024 supports our belief that the strength of our organic growth profile combined with favorable commodity price trends firmly positions Wheaton as the premier choice for high quality, long And with that, I would like to turn the call over to Wes Carson, our Vice President of Operations, who will provide more details on our operating results.

Randy Smallwood: And we are proud to have been ranked among the top 10 in Corporate Night's 50 Best Corporate Citizens in Canada for 2024. The Founders and Architects of Sustainable Streaming, this accomplishment is reflective of our commitment. And with that, I would like to turn the call over to Wes Carson, our Vice President of Operations, who will provide more details on our operating results. Wes. Thanks, Randy. Good morning.

Randy Smallwood: And we are proud to have been ranked among the top 10 in corporate Knights 50, best corporate citizens in Canada for 2024.

Speaker Change: As the founders and architects of sustainable streaming. This accomplishment is reflective of our commitment to operating responsibly in all facets of our business.

Our performance in the first half of 2024 supports our belief that the strength of our organic growth profile combined with favorable commodity price trends firmly positions Wheaton is the premier choice.

Randy Smallwood: For high quality long life precious metals exposure.

Randy Smallwood: Wes. Thanks, Randy. Good morning. Overall production in the second quarter came in higher than expected, driven by strong out-performance at Solobo, Penosquito, and Antonino. In the second quarter of 2024, Slobo produced 63,200 ounces of attributable goal, an increase of approximately 23% relative to the second quarter of 2023, driven primarily by heart.

Wesley Carson: Valley has maintained their copper guidance for the year, and we anticipate that any impacts to Wheaton's guidance will be minimal, and offset by outperformance in the first half, and 12 to 15,000 ounces with our GEOs of other metals, resulting in an overall production of approximately 550,000 to 620,000 GEOs, from which production is anticipated towards the latter end of the five-year forecast. Gold Quill Analysis is produced annually for the five-year period And that concludes the operational overview. And with that, I will turn the call over to you.

West Carson: And with that I would like to turn the call over to West Carson, Our Vice President of operations, who will provide more details on our operating results.

Wesley Carson: Slobo's strong production in Q2 is attributable primarily to the continued ramp-up of Slobo 3 expansion and sustained overall improvements at both Slobo 1 and 2. On June 17th, Valley reported a conveyor fire at Solobo 3, and on July 25th, they announced that plant operations at Solobo 3 had resumed after a 31-day repair period.

Unknown Speaker: Sales volumes amounted to 124,000 GEOs, a 4% decrease relative to the comparable period of the prior year, primarily due to timing of sales resulting from the relative changes in ounces produced but not yet delivered, or PBND, which resulted in a reduction in sales volumes relative to Q2 2023 of over 23,000 GEOs. G&A expenses amounted to $10 million for the second quarter, and the company continues to anticipate that G&A will total $41 to $45 million for the year, with these figures excluding share-based compensation as well as donations and community investment.

West Carson: Randy and good morning.

West Carson: Overall production in the second quarter came in higher than expected driven by strong performances at Salobo Quito and Antonietta.

Speaker Change: In the second quarter of 2020 for Shlomo produced 63200 ounces of attributable gold an increase of approximately 23% relative to the second quarter of 2023.

West Carson: Driven primarily by higher throughput.

West Carson: <unk> strong production in Q2 is attributable primarily to continued ramp up absolutely the salobo III expansion and sustained overall improvements at both level one and two.

Speaker Change: On June 17th Valley reported a conveyor fire at Salobo III and on July 25th they announced that plant operations with level three had resumed after 31 day care period.

Wesley Carson: Valley has maintained its copper guidance for the year, and we anticipate that any impacts to Wheaton's guidance will be minimal and offset by outperformance in the first half. In the second quarter of 2024, Constancia produced 450,000 ounces of attributable silver and 6,100 ounces of attributable gold, an increase of approximately 7% and a decrease of 18%, respectively, relative to the second quarter of 2023. The decrease in gold production was primarily the result of lower grades due to planned stripping activity in the Papakonsha Pit, which commenced in the second quarter and is expected to continue through the third quarter of 2024. Podbea has reported that mill or feed has now reverted to a typical blend of approximately one third of Capapacancha and two thirds from Constancia, which is expected to continue throughout 2024.

Speaker Change: Valley has maintained their copper guidance for the year and we anticipate that any impacts to regions guidance will be minimal and offset by outperformance in the first half of the year.

Speaker Change: In the second quarter of 2020 for Constancia produced 450000 ounces of attributable silver and 6100 ounces of attributable gold.

Speaker Change: An increase of approximately 7% and a decrease of <unk>.

Speaker Change: 18%, respectively relative to the second quarter of 2023.

Speaker Change: The decrease in gold production was primarily the result of lower grades due to planned stripping activity in the public conscious pit, which.

Speaker Change: <unk> in the second quarter and is expected to continue through the third quarter of 2024.

Speaker Change: <unk> reported that mill ore feed has now reverted to typical blend of approximately one third from Harper concho in two thirds from Constancia.

Speaker Change: Brexit to continue throughout 2024.

Wesley Carson: In the second quarter of 2024, Pensketo produced 2.3 million ounces of attributable silver, an increase of approximately 30% relative to the second quarter of 2023, primarily due to higher throughput, partially offset by slightly lower grades. Production in the second quarter continued to focus on mining in the Chile, Colorado pit, which contains higher silver, lead, and zinc metal grades than the main Penasco pit. Upgrades are expected to decrease slightly in the second half of the year as mining moves back into the Penasco.

Speaker Change: In the second quarter of 2024 kind of Sito produced $2 3 million ounces of attributable silver an increase of approximately 30% relative to the second quarter of 2023, primarily due to higher throughput, partially offset by slightly lower grades.

Speaker Change: Production in the second quarter continued to focus on mining and the Chile, Colorado pit, which contains higher silver lead and zinc metal and silver and silver grades than the mainland <unk>.

Speaker Change: Ladies are expected to decrease slightly in the back half of the year as mining moves back into the <unk> pit.

Wesley Carson: On July 31st, 2024, Ivanhoe reported that construction of Platte Reef's Phase 1 Concentrator was completed on schedule subsequent to recording. Coal commissioning has started, with water being fed through the concentrator and construction of Platte Reef's Shaft 2 headgear at approximately 60%.

Speaker Change: On July 31, 2024, Ivanhoe reported that construction of <unk> phase one concentrated was completed on schedule subsequent to the quarter.

Speaker Change: Cold commissioning has started with water being fed through the concentrator and construction of flattery shafts had Peter at approximately 60% complete.

Wesley Carson: An updated independent feasibility study on an optimized development plan for the acceleration of Phase 2 is planned to be completed and published in the fourth quarter of 2024. In addition, a preliminary economic assessment on the phase three expansion is expected to be completed at the same time, with the expansion forecast to increase plant reuse processing capacity up to approximately 10 million tons. A phase 3 expansion to 10 million tons is expected to rank Platte Reef as one of the world's largest platinum group metal, nickel, copper, and gold producers.

Speaker Change: And updated independent feasibility study on an optimized development plan for the acceleration of phase II is planned to be completed and published in the fourth quarter of 2024.

Speaker Change: In addition, our preliminary economic assessment on the phase III expansion is expected to be completed at the same time with the expansion forecast to increase blackberries processing capacity up to approximately 10 million tonnes per annum.

Speaker Change: Our phase III expansion, the 10 million tonnes processing capacity is expected to ranked plat reef is one of the world's largest platinum group metal nickel copper and gold producers.

Wesley Carson: As mentioned by Randy, with over 305,000 ounces produced year to date, the company remains well on track to achieve its annual production guidance this year. Wheaton's estimated attributable production in 2024 continues to be forecast at 325,000 to 370,000 ounces of gold. 18.5 to 20.5 million ounces of silver and 12 to 15,000 ounces with our GEOs of other metals, resulting in an overall production of approximately 550,000 to 620,000 grams of gold. Production is forecast to increase at an industry-leading rate of approximately 40% to over 800,000 ounces by 2028, primarily due to growth from operating assets, including Salobo, Antimina, Penesquito, Boise's Bay, and Marmaro.

Speaker Change: As mentioned by Randy with over 305000 ounces produced year to date the company remains well on track to achieve our annual production guidance this year.

Speaker Change: <unk> estimated attributable production in 2024 continues to be forecasted 325000 to 370000 ounces of gold.

Speaker Change: <unk>, 5% to 25 million ounce of silver.

Speaker Change: And 12% to 15000 ounces or geos of other metals, resulting in an overall production of approximately 550000 to 620000 Geos.

Speaker Change: Yeah.

Speaker Change: Production is forecast to increase at an industry leading rate of approximately 40% to over 800000 ounces by 2028, primarily due to growth from operating assets, including Salobo.

Speaker Change: Kind of Scotto Boise State in my model development profit projects, which are in construction and our permitted including Blackwater plat reefs Goose Park Phoenix career comments added Domingo and pre development projects, including marathon in copper world.

Wesley Carson: Development Projects, which are in construction and are permitted, including Blackwater, Platte Reef, Goose, Merrill Park, Phoenix, Curipamba, and San Domingo, and Pre-Development Projects, including Marathon and Copper World, from which production is anticipated towards the latter end of the five-year forecast. From 2029 to 2033, attributable production is forecast to average over 850,000 pounds of Gold Quill Analysis annually for the five-year And that concludes the operational overview. And with that, I will turn the call over to you.

Speaker Change: For which production is anticipated towards the latter end of the five year forecast period.

Speaker Change: Yes.

Speaker Change: From 2029 to 2033 attributable production is forecast to average over 850000 ounces of gold equivalent ounces annually for the five year period.

Speaker Change: And that concludes the operational review and with that I will turn the call over to Gary.

Unknown Speaker: Thank you, Wes. As described by Wes, production in the second quarter amounted to 147,000 GEOs, a 7% increase relative to the comparable period of the prior year, with higher production from Salobo, Zinc, Rubin, and Penasquito being offset by lower production from Sandomas and Constantia, combined with the cessation of production from Algestrel and Minto. Sales volumes amounted to 124,000 GEOs, a 4% decrease relative to the comparable period of the prior year, primarily due to timing of sales resulting from the relative changes in ounces produced but not yet delivered, or PBMD, which resulted in a reduction in sales volumes relative to Q2 2023 of over 23,000 GEOs.

Gary: Thank you S. As described by West production in the second quarter amounted to 147000, Geos, a 7% increase relative to the comparable period of the prior year.

Gary: With higher production from Salobo, zinc Rubin and pennant scotto being offset by lower production from San Dimas and Constancia combined with the cessation of production from our distress and Minto.

Gary: Sales volumes amounted to 124000, Geos, a 4% decrease relative to the comparable period of the prior year, primarily due to timing of sales, resulting from the relative changes in ounces produced but not yet delivered or pbms.

Gary: Which resulted in a reduction in sales volumes relative to Q2 2023 of over 23000 Geos.

Unknown Speaker: Strong commodity prices coupled with our solid production base resulted in revenue increasing by 13% to $299 million relative to Q2 2023. Of this revenue, 61% was attributable to gold, 37% to silver, 1% to palladium, and 1% to cobalt. As of June 30, 2024, approximately 128,000 GEOs were in PB&E, representing approximately 2.9 months of table production, a slight increase from the preceding four quarters due to relative differences in timing of sales but within our guided range of two to three months.

Gary: Strong commodity prices, coupled with our solid production base resulted in revenue increasing by 13% to $299 million relative to Q2 2023 of this revenue, 61% was attributable to gold, 37% to silver 1% Palladium.

Gary: And 1% to cobalt.

Speaker Change: As at June 32020 for approximately 128000, Geo's, where in PB NB, representing approximately $2 nine months payable production a slight increase from the preceding four quarters due to relative differences in timing of sales, but with.

Gary: In our guided range of two to three months.

Unknown Speaker: G&A expenses amounted to $10 million for the second quarter, and the company continues to anticipate that G&A will total $41 to $45 million for the year, with these figures excluding share-based compensation, as well as donations and community investment. On June 20, 2024, Canada's Global Minimum Tax Act, or GMTA, received royal assent, and as such, the income from our Cayman Islands subsidiaries will be subject to a 15% minimum tax

Gary: G&A expenses amounted to $10 million for the second quarter and the company continues to anticipate G&A will total 41% to $45 million for the year with these figures excluding share based compensation as well as donations and community investments.

Gary: On June 22020 for Canada's global minimum tax act or <unk>.

Gary: Seed Royal assent and as such the income from our Cayman Islands subsidiaries will be subject to a 15% minimum tax.

Unknown Speaker: As we previously noted, as the global minimum tax is retroactive to January 1st, 2024, the company has recorded two quarters worth of global minimum tax amounting to $51 million in its financial statements for the period ending June 30th, 2024, with $25 million relating to Q1, 2024. Adjusted net earnings amounted to $150 million, with the $7 million increase from the prior year due primarily to the higher growth margin, partially offset by the higher income tax expense relative to the global minimum tax. I believe it is worth pausing here to emphasize that we were able to generate higher adjusted earnings despite the implementation of a 15% global minimum tax on gross proceeds of $177 million.

Unknown Speaker: As we previously noted, as the Global Minimum Tax is retroactive to January 1, 2024, the company has recorded two quarters worth of Global Minimum Tax amounting to $51 million in its financial statements for the period ending June 30, 2024, with $25 million relating to Q1, 2024. Going forward, the quarterly tax expense associated with GMT will be recognized in our consolidated financial statements in the appropriate reporting period. Removing the GMP associated with the Q1 2024 earnings and other smaller items.

Gary: As we previously messaged as the global minimum tax is retroactive to January one 2024. The company has recorded two quarters' worth of global minimum tax amounting to $51 million.

Gary: In its financial statements for the period, ending June 32024 with $25 million relating.

Gary: Relating to Q1 2024.

Gary: Going forward forward the quarterly tax expense associated with GMT will be recognized in our consolidated financial statements and the appropriate reporting period.

Gary: Removing the GMT associated with Q1 2024 earnings and other smaller items.

Unknown Speaker: Adjusted net earnings amounted to $150 million, with the $7 million increase from the prior year due primarily to the higher gross margin, partially offset by the higher income tax expense relative to the global minimum tax. I believe it is worth pausing here to emphasize that we were able to generate higher adjusted earnings despite the implementation of a 15% global minimum tax. Quite remarkable, indeed.

Gary: Adjusted net earnings amounted to $150 million with the $7 million increase from the prior year due primarily to the higher gross margin, partially offset by the higher income tax expense relative to the global minimum tax.

Gary: I believe it is worth pausing here to emphasize that we were able to generate higher adjusted earnings. Despite the implementation of a 15% global minimum tax.

Gary: Remarkable.

Unknown Speaker: Wheaton continued to deliver robust cash operating margins in the second quarter, resulting in cash flow from operations of $234 million, with a $32 million increase from the prior year due primarily to higher gross margins. As mentioned by Randy, the strength of our second quarter cash flows resulted in cash flows for the first half of the year of over $450 million, representing a new record for wheat. Lastly, we declared a quarterly dividend of 15.5 cents per share, a 3% increase from the prior year.

Gary: We continued to deliver robust cash operating margins in the second quarter, resulting in cash flow from operations of $234 million.

Gary: With a $32 million increase from the prior year due primarily to higher gross margins.

Gary: As mentioned by Randy the strength of our second quarter cash flows resulted in cash flows for the first half of the year of over $450 million, representing a new record for wheat.

Gary: Lastly, we declared a quarterly dividend of 15 five cents per share a 3% increase from the prior year.

Unknown Speaker: During the quarter, Wheaton made total up-front cash payments of approximately $45 million, $25 million of which was related to the Mineral Park stream and $10 million of which was related to the Congrejo stream, with the remaining $10 million relating to the Mount Todd royalty. Additionally, the company made two dividend payments totaling $139 million and disposed of its investment in Hekla Mining Company for gross proceeds of $177 million. When coupled with cash generated from operating activities, our overall net cash inflows amounted to $234 million in the second quarter of 2024, resulting in cash and cash equivalents at June 30th of $540 million.

Gary: During the quarter, we made total upfront cash payments of approximately $45 million.

Gary: $25 million of which was relative to the mineral park stream and $10 million of which was relative to the <unk> stream with the remaining $10 million relating to the Mt. Todd royalty.

Gary: Additionally, the company made two dividend payments totaling $139 million and disposed of its investment and Hecla mining company.

Gary: For gross proceeds of $177 million.

Gary: When coupled with cash generated from operating activities.

Gary: Our overall net cash inflows amounted to $234 million in the second quarter.

Gary: Of 2024, resulting in cash and cash equivalents at June $30 million to $540 million. We believe this cash balance combined with the strength of our forecasted operating cash flows in the fully undrawn $2 billion revolving credit facility, which was recently extended by an additional year.

Unknown Speaker: We believe this cash balance, combined with the strength of our forecasted operating cash flows and the fully undrawn $2 billion revolving credit facility, which was recently extended by an additional year, positions the company exceptionally well to satisfy its funding commitments and provides us with financial flexibility to acquire additional accretive mineral streams. That concludes the financial summary, and with that, I will turn the call back over to Randy.

Gary: Positions the company exceptionally well to satisfy its funding commitments and provides us with financial flexibility to acquire additional accretive mineral stream interests that.

Gary: That concludes the financial summary, and with that I will turn the call back over to Randy.

Randy Smallwood: Thank you Gary.

Randy Smallwood: In closing, we believe Wheaton is well positioned to continue delivering value to all of our stakeholders for a number of different reasons. Firstly, by offering our shareholders exposure to our diversified portfolio of long-life, low-cost assets that we believe has one of the best organic growth profiles in the entire mining industry. Secondly, by continuing to generate strong operating cash flows and maintaining low predictable costs, which when coupled with our leverage, will increase commodity prices.

Randy Smallwood: In closing, we believe Wheaton is well positioned to continue delivering value to all of our stakeholders for a number of different reasons.

Randy Smallwood: Firstly by offering our shareholders exposure to our diversified portfolio of long life low cost assets that we believe has one of the best organic growth profiles in the entire mining industry.

Randy Smallwood: Secondly by continuing to generate strong operating cash flows and maintaining low predictable costs, which when coupled with our leverage to increase commodity prices.

Randy Smallwood: Results in some of the highest margins in the precious metals. Thirdly, a pipeline of significantly de-risked development projects which further supports our impressive organic growth profile of over 40% by 2028. And lastly, our commitment to sustainability and supporting our partners and the communities in which we live and operate. So with that, I would like to open the call to questions, Operator.

Randy Smallwood: It resulted in some of the highest margins in the precious metal space.

Gary: Thirdly, a pipeline a significantly de risked development projects, which further supports our impressive organic growth profile of over 40% by 2028.

Randy Smallwood: And lastly, our commitment to sustainability and supporting our partners and the communities in which we live and operate.

Speaker Change: So with that I would like to open the call up for questions operator.

Operator: Thank you. And, ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question during this time, simply press the star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. We'll pause for just a moment to compile the Q&A roster, and your first question comes from the line of Richard Hatch with Berenberg. Please go ahead.

Speaker Change: Thank you and ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question. During this time. Thank you Pat This star followed by the number one on your telephone keypad. If you would like to withdraw your question. Please press the star followed by the number two we will pause for just a moment to compile the Q&A.

Speaker Change: <unk> roster.

Speaker Change: And your first question comes from the line of Richard Hatch with Baird. Please go ahead.

Richard Hatch: Thanks very much. Morning Randy and team, and thanks for the call.

Richard Hatch: Thanks, very much morning, Randy and Steve Thanks for that.

Richard Hatch: Just wonder if you might help Pacific with delay value.

Speaker Change: Better quarter, which is really could see.

Speaker Change: But just wonder if you might be able to help us really 'twenty five 'twenty six.

Speaker Change: It gives us kind of broad expectations of.

Speaker Change: Great and such like the Navy, it's one kind of sometimes a bit challenging, but any kind of color that would be super helpful.

Unknown Speaker: Just wonder if you might help us a bit with Solobo, clearly a better quarter which is really good to see, but just wonder if you might be able to help us a bit as we look out into 2025-26, be able to give us kind of broad expectations of grade and such like. I know it's one that's sometimes a bit challenging, but any kind of color there would be super helpful. That's the first one. I'll let Wes take that one off. Perfect. Thanks for the question, Richard.

Speaker Change: That's the first one I'll, let I'll, let <unk> take that one up perfect. Thanks. Good question Richard.

Wesley Carson: Thanks Richard. So, we are starting to see a slight drop off in grades over the next couple of years, so into 25-26, but with that, we're also seeing the ramp up of Syllable 3 and really an increase in throughput there. So, over the next few years, we do expect a slight increase in production, and we'll see that continue really as Syllable 3 really comes online and comes to other devices. So, for the rest of this year, I mean, we see that kind of flattening of production, and then as the throughput comes up on Syllable 3, we'll see a better year next year.

Speaker Change: So we are starting to see a slight drop off in grades.

Unknown Speaker: Okay, that's really helpful. Thanks.

Speaker Change: Over the next couple of years. So at the end of 'twenty five 'twenty six but with that we're also seeing that the ramp up of Salobo III and really an increase in throughput there. So over the next few years, we do expect a slight increase in production in <unk> and we'll see that continue really as Salobo III really comes online in terms of the other so for.

Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Mattel's 2024 second quarter results conference call. Online's have been placed on YouTuber Ben Anybacker noise. After the speakers remarks, there will be a question and answer session. If you would like to ask a question during the time, seem to press a star followed by the number one on your telephone keypad, or you may type in your questions in the Q&A box of the webinar.

Speaker Change: For the rest of this year I mean, we see that kind of kind of flattening of the.

Randy Smallwood: Production and then.

Randy Smallwood: Throughput comes up also but we will see a better year next year I think getting them into the next couple of years.

Richard Hatch: And then just on the business development kind of piece, perhaps for Randy and Haytham, can you just talk a bit about what kind of deals you're seeing at the moment? It feels like the diversifieds have got strong balance sheets, not necessarily looking for large sort of ticket transactions at this point, but maybe as we go into the next sort of copper cycle, that opportunity might present itself. But just as you're looking down the list of your current BD opportunities, are we still kind of mainly focusing on those Gold Producers and such like, you know, in the mid, sort of, few hundred million dollar ranges, or are we seeing something, you know, a bit more large-scale and such like? Be helpful. Thanks.

Speaker Change: Okay. That's really helpful. Thanks, and then just on the business development.

Randy Titan: Perhaps for Randy Titan.

Randy Titan: Can you just talk a bit about what kind of deals you are seeing at the moment it feels like the flex.

Operator: If you would like to withdraw your question, please press a star followed by the number two. Thank you. I would like to remind everyone that this conference call is being recorded on Thursday, August 8, 2024 at 8 a.m. Eastern time.

Randy Titan: <unk> got strong balance sheets.

Randy Titan: Necessarily looking for large sort of ticket.

Randy Titan: Transactions at this point it might be as we get into the next cycle.

Emma Murray: I will now turn the conference over to Emma Murray, Vice President of Investor at Asians. Please go ahead. Thank you, operator. Good morning, ladies and gentlemen. And thank you for participating in today's call.

Randy Titan: That opportunity might present itself.

Speaker Change: Just as you're looking down the list of your current BD opportunities are we still kind of 95 single days.

Speaker Change: Go produces and such like.

Emma Murray: I'm joined today by Randy Smallwood, Wheaton Precious Mattel's President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, Jason Hodele, Senior Vice President Corporate Development, and Wes Carson, Vice President Mining Operations. Please note that for those not currently on the webcast, a slide presentation accompanying this conference call is available in PDF format on the presentation's page of our website. Some of the commentary today's call may contain forth-looking statements and I would direct everyone to refuse slide two of the presentation, which contains important cautionary notes regarding forth-looking statements. It should be noted that all figures refer to on today's call or a US dollar unless otherwise noted.

Speaker Change: $200 million ranges are we seeing something a bit more.

Speaker Change: Large scale.

Randy Titan: Thanks.

Unknown Speaker: I'll let Haytham answer that one.

Haytham: I'll, let let haytham answer that one and thanks for the question Richard.

Haytham Hodaly: Thanks for the question, Richard. To put it simply, you know, we've got a number of opportunities that we're actually advancing through the due diligence phase right now. I would say development stage funding is still the focus, although we are seeing a resurgence in some balance sheet strengthening opportunities. The majority of the opportunities we're seeing are probably 50-50 between polymetallic opportunities, which have a precious metal byproduct, and actually precious metals companies that have very, very strong margins that are looking for continued growth. So it's a very robust market. I would say the majority of the opportunities fall somewhere between $100-$700 million in that range, with a couple of those being north of $500.

Haytham: We've got a number of opportunities that we're actually advancing through the due diligence phase right now I would say development stage funding is still the focus although we are seeing a resurgence and some balance sheet strengthening opportunities. The majority of the opportunities. We're seeing it's probably 50 50 between poly metallic opportunities, which have precious metal byproduct and actually precious metal.

Haytham: Companies that have some very very strong margins that are looking for for continued growth.

Randy Smallwood: With that, I'd like to turn the call over to Randy Smallwood, our President and Chief Executive Officer. Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton's second-quarter results of 2024. I am pleased to announce that our portfolio of long-lifed low-cost assets has delivered another solid quarter, generating $234 million in operating casinos, resulting in record casinos of over $450 million for the first half of this year.

Randy Titan: Very robust market I would say the majority of the opportunities fall somewhere between one.

Haytham: 102 $700 million in that range with a couple of those being north of 500.

Haytham Hodaly: I would say, just to add to that, the deal size, the opportunity size seems to be a little bit bigger than what we've seen in, say, the last year. There seems to be a little bit more of an appetite, and a lot of these projects are actually a lot closer to production, the construction stage, and production stage. So, you know, I think overall it actually looks a little bit healthier, but it's still very busy on that front.

Speaker Change: Yes, I would say just to add to that.

Speaker Change: The deal size, the opportunity size seems to be a little bit bigger than what we've seen.

Speaker Change: Say that last year.

Speaker Change: To be a little bit more of an appetite.

Speaker Change: A lot of these projects are actually a lot closer to.

Haytham: The production, where the construction stage in production so so I.

Unknown Speaker: So, you know, I think overall it actually looks a little bit healthier, but it's still very busy on that front.

Randy Smallwood: This performance underscores the effectiveness of our business model in leveraging rising commodity prices while maintaining strong margins. The company has produced over 305,000 gold equivalent ounces a year to date, and we are a well-on-track to achieve our 2024 production guidance of $550,000 to $620,000 gold equivalent ounces. The company also remains very liquid with $540 million in cash at our quarter end and a $2 billion under on revolving credit facility, which, when coupled with the strength of our forecasted operating cash lows, provides strong flexibility to fund all outstanding commitments as well as the capacity to acquire additional creative mineral stream interests.

Haytham: I think overall, it actually looks a little bit healthier, but but.

Haytham: It's still very busy on that front.

Richard Hatch: Okay, very helpful. Thanks a lot for your time. Cheers, go well.

Richard Hatch: Okay, very helpful. Thanks a lot for your time. Cheers.

GSK: Okay very helpful. Thanks, a lot for your time GSK will.

Richard: Thank you Richard.

Martin Pradier: And your next question comes from the line of Martin Pradier with Veritas Investment Research. Please go ahead.

Speaker Change: And your next question comes from the line of Martin <unk> Barrett. This investment research. Please go ahead.

Unknown Speaker: Thank you. If gold production in the second half is similar to the first half, you would hit at least the middle of your guidance range for gold and exceed the upper end of the guidance for silver. So the question is, is gold production expected to be weaker or stronger in the second half versus the first half? And in terms of silver production, if you expect a weaker second half versus the first,

Unknown Attendee: Thank you. If gold production in the second half is similar to the first half, you would hit at least the middle of your guidance range for gold and exceed the upper end of the guidance for silver. So the question is, is gold production expected to be weaker or stronger in the second half versus the first half?

Speaker Change: Thank you.

Speaker Change: If gold production in second half and similar to first half you would hit at least the middle of your guidance range for gold and exceed.

Speaker Change: The upper end of the guidance for silver and so the question is is gold production expected to be weaker or stronger in the second half versus the first half.

Speaker Change: And in terms of similar production, if you expect a weaker second half versus first half.

Randy Smallwood: Our corporate development team remains actively engaged in evaluating new opportunities, and we continue to see healthy appetite for streaming as a source of capital for the mining industry. In addition, during the quarter, we published our annual sustainability and climate change reports, and we are proud to have been ranked among the top 10 in corporate night's 50 best corporate citizens in Canada for 2024. As the founders and architects of sustainable streaming, this accomplishment is reflective of our commitment to operating responsibly in all facets of our business.

Wesley Carson: I'll let Wes add some color to that. So, so right now...

Speaker Change: I'll, let <unk> add some color to that.

Unknown Speaker: So, so right now...

Richard: Sure.

Wesley Carson: So right now, Martin, we're looking at probably a split of about 52% in the first half of the year and 48% in the second half of the year on an overall basis. We are expecting a weakening in the gold production at Slobo with some of the impact from the fire and really just a lower grade, particularly in the fourth quarter. And then we are, as mentioned on Penasquito, on the silver side, seeing that drop as they move back into Penasco. So overall, as I said, that kind of 52-48 is about what we're expecting.

Unknown Speaker: So right now, Martin, we're looking at probably a split of about 52% in the first half of the year and 48% in the second half of the year on an overall basis. We are expecting a weakening in the gold production at Slobo with some of the impact from the fire and really just a lower grade, particularly in the fourth quarter. And then we are, as mentioned in Penasquito, on the silver side, seeing that drop as they move back into Penasco.

Speaker Change: So right now we.

Richard: We're looking at.

Speaker Change: Our split about 52% in the first half of the year and 48% in the second half of the year on an overall basis, we are expecting a weakening in the gold production at Salobo.

Speaker Change: Some of the impacts from the fire and really just a lower grade, particularly in the fourth quarter.

Speaker Change: And then we are.

Speaker Change: As mentioned on <unk> on the silver side seeing that drop as they move back into the <unk> pit. So so overall as I said above that kind of $52 48 is above what we're expecting for the rest of this year.

Speaker Change: Okay.

Randy Smallwood: Our performance in the first half of 2024 supports our belief that the strength of our organic growth profile, combined with favorable commodity price trends, firmly positions Wheaton as the premier choice for high quality long life precious metals exposure.

Wesley Carson: Okay, great. And in terms of Salobo, is the impact of the fire expected to be around 10,000 ounces in terms of production?

Unknown Speaker: Okay, great. And in terms of Salobo, is the impact of the fire expected to be around 10,000 ounces in terms of production?

Richard: Okay, great and in terms of the logo is the impact of the fire.

Richard: Liked it to be around 10000 ounces in terms of production.

Richard: Okay.

Wesley Carson: It will be in that range, I would say, but we're hoping it will be lower than that, certainly, because they did get things back up and running fairly quickly. It wasn't one of the major conveyors and really just affected the third line. So Slobo 1 and 2 were running through that period, and also during that period, they had some planned maintenance shutdowns during that period as well. So we haven't seen the full results of it yet. But that's in the range, hopefully slightly. I think it might be worth, you know.

Unknown Speaker: It will be in that range, I would say, but we're hoping it will be lower than that, certainly, because they did get things back up and running fairly quickly. It wasn't one of the major conveyors and really just affected the third line. So Slobo 1 and 2 were running through that period, and also during that period, they had some planned maintenance shutdowns during that period as well. So we haven't seen the full results of it yet. But that's in the range, hopefully slightly.

Speaker Change: It will be in that range I would say, we're hoping lower than that certainly because they did get things back up and running fairly quickly. It wasn't one of the major conveyors and really just affected the third lines of slow, but one or two were running through that period and also during that period. They had some planned maintenance shutdowns during that period as well.

Wes Carson: And with that, I would like to turn the call over to West Carson, our Vice President of Operations, who will provide more details on our operating results. Thanks. Thanks, Randy. Good morning. Overall production in the second quarter came in higher than expected, driven by strong outperformances at Slobo, Pensquito, and Antimena. In the second quarter of 2024, Slobo produced 63,200 ounces of attributable goal and increase of approximately 23% relative to the second quarter of 2023, driven primarily by higher throughput.

Speaker Change: So we haven't seen the full results of it yet but thats it.

Richard: In the range or slightly better.

Speaker Change: I think it might be worth just talking about the type of global outperformed a bit in the first half of this year and I think thats higher probably consumed up some of that outperformance and so from a overall annual basis, it's probably net neutral.

Wesley Carson: I think it might be worth talking about the fact that Slobo outperformed a bit in the first half of this year, and I think that fire probably consumed up some of that outperformance, and so, from an overall annual basis, it's probably net neutral. But, you know, that outperformance, as I said, was probably eaten up a little bit by the impact of the fire.

Wes Carson: Slobo's strong production in Q2 is attributable primarily to continued ramp up the Slobo 3 expansion and sustained overall improvements at both Slobo 1 and 2. On June 17th, Valley reported a conveyor fire at Slobo 3 and on July 25th, they announced that planned operations at Slobo 3 had resumed after 31-day repair period. Valley has maintained their copper guidance for the year, and we anticipate that any impacts to Wheaton's guidance will be minimal and offset by outperformances in the first half of the year.

Richard: But that outperformance as I said was probably eaten up a little bit by by the impact of the fire.

Speaker Change: Great. Thank you.

Tanya Jakusconek: And once again, if you would like to ask a question, simply press star followed by the number 1 on your telephone keypad. Your next question comes from the line of Tanya Jakusconek with Scotiabank; please go ahead.

Speaker Change: And then once again, if you would like to ask a question. It seems you press the star followed by the number one on your telephone keypad.

Operator: Your next question comes from the line of Tanya Jakusconek with Scotiabank. Please go ahead.

Tanya <unk>: Your next question comes from the line of Tanya <unk> with Scotiabank. Please go ahead.

Tanya Jakusconek: Oh, good, it's me. Thank you, good morning, everyone. Just wanted to come back just on the guidance. Thank you for the 52, 48. But with all these little moving parts in the second half, just wanna confirm, I think previously we were looking for fairly even. Q3 equal to Q4 should that be something we should be thinking about given the fire and some

Tanya <unk>: Oh, great. Thank you good morning.

Speaker Change: We won.

Wes Carson: In the second quarter of 2024, Constantia produced 450,000 ounces of attributable silver and 6,100 ounces of attributable goal, an increase of approximately 7% and a decrease of 18% respectively relative to the second quarter of 2023. The decrease in goal production was primarily the result of lower grades due to plans strictly activity in the public conscious pit, which commenced in the second quarter and expected to continue through the third quarter of 2024.

Speaker Change: Just wanted to come back just on the guidance and the thank you for the 50 248.

Tanya <unk>: With all these little moving parts in the second half just wanted to confirm I think previously we were looking for fairly even.

Speaker Change: Q3 equal to Q4 should that is that something how we should be thinking about given the fire in some of the other great movement.

Speaker Change: Okay.

Wesley Carson: Go ahead, Wes. Yeah, I would say that that is correct. It will be fairly even. I mean, there's a lot of moving parts, as you say, between the quarters there, but it is fairly even between them. Well, I think they...

Wes: Go ahead Wes.

Speaker Change: Right.

Unknown Speaker: Yeah, I would say that that is correct. It will be fairly even. I mean, there's a lot of moving parts, as you say, between the quarters there, but it is fairly even between them.

Wes: Yes, I would say that that is correct. It will be fairly even I mean, theres a lot of moving parts as you say between the quarters there, but it is fairly even between Q3 and Q4.

Wes Carson: Pod Bay reported that mill or feed has now reverted to the difficult blend of approximately one third of from the public conscious in two thirds from Constantia, which is expected to continue throughout 2024. In the second quarter of 2024, Penskydo produced 2.3 million ounces of attributable silver, an increase of approximately 30% relative to the second quarter of 2023, primarily due to higher throughput partially offset by slightly lower grades. Production in the second quarter continued to focus on mining in the Chilli Colorado pit, which contains higher silver, lead and zinc metal, and silver grades, then the main Penskydo or Penskydo pit.

Wesley Carson: I think the impacts of the fire are going to be in Q3, and then we definitely have lower grades scheduled into Q4. And so it's probably going to spin out pretty evenly there.

Speaker Change: The fire.

Speaker Change: Q3, and then we have definitely lower grade scheduled into Q4, and so it's probably going to split pretty evenly theres level. Okay.

Tanya Jakusconek: Okay, well, thank you for that. And I just wanted to ask Gary, the dDNA forecast for the year, usually we get that in August in terms of depreciation. And sorry, maybe in the information you provided there, we just had a number of companies...

Speaker Change: Alright, Thanks for that and then I just wanted to ask Gary that DNA forecast for the year, usually we get that in August in terms of depreciation and sorry, maybe in your.

Speaker Change: The information provided that we just had a number of companies report last night.

Wes Carson: Grades are expected to decrease slightly in the back half of the year as mining moves back into the Paniasco pit. On July 31st, 2024, Ivan Hill reported that construction of flat re-space one concentrated was completed on schedule, subsequent to record. Cold commissioning has started with water being fed through the concentrator and construction of flat re-shaft to head feeder at approximately 60% complete. An updated independent feasibility study on an optimized development plan for the acceleration of phase two is planned to be completed and published in the fourth quarter of 2020.

Unknown Speaker: Sorry, the question was with respect to what we expect G and A to be. No, depreciation. D, D, and A. Depreciation. Yeah, I mean, Tanya, we provide asset by asset depletion numbers in the MD&A, you know, I would suggest looking at what we depleted for Q2 as, you know, an indication of what our per ounce depletion will be by asset.

Unknown Speaker: Uh, sorry, the question was with respect to what we expect, uh, gene age.

Speaker Change: Sorry. The question was with respect to what we expect G&A to be no depreciation or appreciation and I appreciate it all right.

Tanya: Depreciation, yes, I mean Tanya.

Tanya <unk>: Tanya we provide asset by asset depletion.

Speaker Change: Members in <unk> DNA.

Speaker Change: I would.

Speaker Change: Suggest looking at what we depleted.

Speaker Change: Yeah.

Speaker Change: For Q2.

Speaker Change: <unk>.

Speaker Change: An indication of what our per ounce depletion.

Wes Carson: 34. In addition, a preliminary economic assessment on the phase three expansion is expected to be completed at the same time, with the expansion forecast to increase Plattry's processing capacity up to approximately 10 million times for a phase three expansion to 10 million times processing capacity is expected to rank Plattry as one of the world's largest Plattman group metal, nickel, copper, and gold producers. As mentioned by Randy with over 305 thousand ounces produced year-to-date, the company remains well-entracted to achieve our annual production guidance this year.

Speaker Change: We will be by asset.

Tanya Jakusconek: Okay, all right, so Q2 is a benchmark going forward. Thank you for that.

Speaker Change: Okay, Alright, so Q2 as the benchmark going forward. Thank you for that.

Haytham Hodaly: And then can I just ask, Haytham, just coming back to you on these transactions and opportunities that are out there and interesting that we have the 100 to 700 and you know a couple over 500 million and you mentioned them in sort of the development stage or early construction. How does Platinum Palladium fit in right now given their weak prices? Are those opportunities you're looking at in addition to the gold side, gold and silver?

Speaker Change: Kevin I, just ask Hey, Tim just coming back to you on on these transactions and opportunities that are out there. It's interesting that we have the 100 to 700.

Speaker Change: Couple of over $500 million and you mentioned in that.

Speaker Change: Alright.

Speaker Change: <unk> already construction.

Speaker Change: How does platinum palladium sit in right now given their weak prices.

Wes Carson: We insestimated the trivial production in 2024, continues to be forecast at 325,000 to 370,000 ounces of gold, 18.5 to 20.5 million ounces of silver, and 12 to 15,000 ounces of other metals, resulting in an overall production of approximately 550,000 to 620,000 Geos. Production is forecast increase in industry-leading rate of approximately 40% to over 800,000 ounces by 2028, primarily due to growth from operating assets, including salovo, antimena, penisquito, voisees, bay, and marmato.

Speaker Change: Those opportunities Youre looking at and in addition, typical site gold silver.

Haytham Hodaly: I would say even on PGMs, given where PGM prices have gone, there's probably a few opportunities in there that we're also looking at. I would say that we're still looking at the gold components of the PGM, typically. If we're looking at anything else outside of gold, maybe it's platinum, and only to top up if they need more capital than the gold could provide them. But we're seeing not just the PGM opportunities, but obviously we're seeing some gold opportunities for people trying to capitalize on the strong commodity price to try and get some additional funding.

Speaker Change: I would say even on.

Speaker Change: Pjm's, given where PGM prices have gone, there's probably a few opportunities in there that we're also looking at I would say that we're still looking at the gold component to the PGM typically.

Speaker Change: If we're looking at anything else outside of the goal.

Speaker Change: Maybe it's platinum and only to top up if they need more capital in the Gulf could provide them, but we're seeing not just the PJM opportunities, but obviously, we see some growth opportunities if people try to capitalize on the strong commodity price to try and get some additional funding.

Wes Carson: Developing projects which are in construction and are permitted, including Blackwater, Platt, Reef, Geos, Neopark, Phoenix, Creepam and San Diego, and pre-developing projects, including marathon, marathon and copper world, from which production is anticipated towards the latter end of the five-year forecast period.

Haytham Hodaly: Okay, that's helpful. Thank you. And then, where would the corporate transaction fit in? As you look at the state.

Speaker Change: Okay. That's helpful. Thank you and then Westwood corporate transaction set in.

Speaker Change: As you look at the states.

Haytham Hodaly: So we'll always consider looking at our peers and seeing if and when it makes sense for us to actually make any type of corporate transaction. But I will say that at this point in time it doesn't make sense to pay a premium on a multiple when I can still purchase streams at or below.

Speaker Change: So well always consider.

Speaker Change: Looking at our peers and seeing what if and when it makes sense for us to actually make any type of corporate transactions I will say that at this point in time, it doesn't make sense to pay a premium on the multiple what I can still purchase streams at or below net asset value.

Gary Brown: From 2029 to 2033, attributable production is forecast average over 850,000 ounces of gold equivalent ounces annually for the five-year period, and that concludes the operational review, and with that I will turn the call over to Gary. Thank you, Wes, as described by Wes, production in the second quarter amounted to 147,000 Geos, a 7% increased relative to the comparable period of the prior year, with higher production from salovo, zinc, riven, and penisquito being offset by lower production from phantom ass and consanthia, combined with the cessation of production from algistral and minto.

Haytham Hodaly: Yeah, no, I agree. And just as you look at the environment, I mean, I always hear everyone say there's so much out there. There's so much out there. Maybe just give us an idea from like, you know, a timing perspective, because this is what I've heard so many comments on, so many deals out there. Like, you know, how long do these deals take to actually do, from the time you actually say, okay, we, you know, we're working on something, to actually do your due diligence.

Speaker Change: Yes, no I agree and just as you look at the environment.

Speaker Change: I always hear everyones data so much outlet is so much out there maybe just give us an idea from a timing perspective because of that I've heard so many comments on that so many deals out there.

Speaker Change: Alright.

Speaker Change: Do these deals take to actually do electron the time, you actually say okay.

Speaker Change: Thank you.

Speaker Change: Actually do your due diligence I know, it's a moment by moment each one has.

Haytham Hodaly: I know it's, you know, moment by moment, each one has, you know, a different timeframe, but just so that we can understand from the moment you're saying you're seeing so much to actually completing some of these things, so that we can kind of understand the process. Thank you. Sure, sure, Tanya. I'm happy to have you as well.

Gary Brown: Sales volumes amounted to 124,000 Geos, a 4% decreased relative to the comparable period of the prior year, primarily due to timing of sales resulting from the relative changes in ounces produced, but not yet delivered, or PBND, which resulted in a reduction in sales volumes relative to Q2 2023 of over 23,000 Geos. Strong commodity prices coupled with our solid production base resulted in revenue increasing by 13% to $299 million relative to Q2 2023.

Speaker Change: A different timeframe, but just so that we can understand from the moment, you're saying you're seeing so much to actually completing some of these things so that we can kind of.

Speaker Change: And that process. Thank you.

Speaker Change: Sure sure Tony I'm happy to have that as well so generally speaking.

Haytham Hodaly: So generally speaking, whether an opportunity comes in depends on whether we're being proactive or reactive. Most of the time, we're proactive, going out there looking at opportunities. Probably I'd say 20 or 30% of the time right now we're being reactive to opportunities coming in the door.

Speaker Change: Speaking, if an opportunity where they were being proactive or reactive most of the time, we're proactively out there looking at opportunities, probably I'd say 20, or 30% of the time right now were being reactive to opportunities coming in the door.

Gary Brown: Of this revenue, 61% was attributable to gold, 37% to silver, 1% to palladium, and 1% to cobalt. As at June 30th, 2024, approximately 128,000 Geos were in PBND, representing approximately 2.9 months of table production, a slight increase from the preceding four quarters due to relative differences in timing of sales, but within our guided range of 2-3 months. GNA expenses amounted to $10 million for the second quarter and the company continues to anticipate the GNA will total $41 to $45 million for the year, with these figures excluding share-based compensation, as well as donations and community investments.

Haytham Hodaly: Once an opportunity comes in the door, it takes us usually a couple of weeks to actually do our first pass and pulse, just to see if it actually makes sense to put a stream on it. If we do that and we find that the asset's margins are solid, and the asset can handle the stream, we'll do a deep dive, and that usually takes another couple of weeks. We'll put out an indication of value somewhere along the way.

Speaker Change: Once an opportunity comes in the door. It takes us usually a couple of weeks actually do our first past wells just to see if it actually makes sense to put a stream on it.

Speaker Change: We do that and if we find that the asset can actually handle the margins are solid the asset can handle the street will do a deep dive and that usually takes another couple of weeks.

Speaker Change: Well somewhere along the way and we will put out an indication of value, we will assuming indication of value.

Haytham Hodaly: We will, assuming the indication of values is interesting to the counterparty, then we'll head to the site. At the same time, we'll start working on term sheets. And once we typically conclude term sheets, we look for exclusivity.

Speaker Change: Interesting to the counterparty then we'll hit the site at the same time, we will start working on term sheets and once we typically.

Speaker Change: Term sheets, we look for exclusivity once that exclusivity that usually takes about another four weeks to get definitive in place. So you are talking from start to finish anywhere from I would say six to eight weeks.

Haytham Hodaly: Once that exclusivity is obtained, it usually takes about another four weeks to get defendants in place. We start to finish anywhere from, I'd say six to eight weeks is a typical timeline for a stream. Okay, thank you for that. I actually thought it was longer, but thank you for that.

Speaker Change: As a typical timeline for St.

Speaker Change: Okay. Thank you for that I actually thought it was a longer but thank you for that.

Haytham Hodaly: Sometimes it takes longer, but usually it has to do with database issues and stuff like that. It's always a matter of having to make sure that we're getting good information when we're assessing these projects. And so sometimes that does drag on a bit.

Speaker Change: Sometimes it takes longer but usually it.

Speaker Change: Usually it has to do with database issues and stuff like that.

Gary Brown: On June 20th, 2024, Canada's Global Minimum Tax Act, or GMTA, received Royal Asset, and as such the income from our Cayman's Island subsidiaries will be subject to a 15% minimum tax. As we previously messaged, as the Global Minimum Tax is retroactive to January 1st, 2024, the company has recorded two quarters worth of Global Minimum Tax, amounting to $51 million in its financial statements for the period ending June 30th, 2024, with $25 million relating to Q1, 2024.

Speaker Change: It's always a matter of having to make sure that we're getting good good information in when we're assessing these projects and so sometimes that does drag on a bit.

Tanya Jakusconek: Okay, about two months would be something that, you know, we should kind of think about.

Speaker Change: Okay. It's about two months would be something that we should kind of think about.

Haytham Hodaly: Yeah, I mean, if you ask our lawyers, they'd rather we said three, but, you know, we've done it in four weeks, and it's taken as long as three months. So yeah, it's probably a good idea. Thank you for the caller.

Speaker Change: Yes, I mean, if you asked our lawyers they'd rather we said three but we've done it in four weeks and it's taken as long as three months. So yes, it's probably a good average.

Tanya Jakusconek: Okay, thank you for the caller.

Unknown Speaker: Thank you for the caller.

Speaker Change: Okay. Thank you for you for the.

Speaker Change: For the color.

Speaker Change: Our pleasure.

Ralph Profiti: And your next question comes from the line of Ralph Profiti with eight capital. Please go ahead.

Ralph <unk>: And your next question comes from the line of Ralph <unk> with eight capital. Please go ahead.

Gary Brown: Going forward, the quarterly tax expense associated with GMT will be recognized in our consolidated financial statements in the appropriate reporting period. Removing the GMT associated with the Q1, 2024 earnings and other smaller items, adjusted net earnings amounted to $150 million, with the $7 million increase from the prior year due primarily to the higher gross margin, partially offset by the higher income tax expense relative to the Global Minimum Tax. I believe it is worth pausing here to emphasize that we were able to generate higher adjusted earnings despite the implementation of a 15% Global Minimum Tax.

Ralph Profiti: Thanks, Operator. I have just one question from me.

Unknown Speaker: Thanks, Operator. I have just one question from me.

Ralph <unk>: Thanks, Operator, just one question from me I did see some re phasing of the Santo Domingo.

Unknown Speaker: I did see some re-phasing of the Santo Domingo up-front payment that came with the updated feasibility study, and I'm just wondering where that up-front stream payment ranks in sort of the project capital spending? Is it sort of pari-passu with the project financing, or is it on project sanctioning? Just wondering how that works.

Unknown Speaker: I did see some rephasing of the Santo Domingo upfront payment that came with the updated feasibility study, and I'm just wondering where that upfront stream payment ranks in sort of the project capital spending? Is it sort of pari passu with the project financing, or is it on project sanctioning? Just wondering how that works.

Ralph <unk>: Front payment that came with the updated feasibility study and I am just wondering where does that upfront stream payment rank and sort of the project capital spending is it is it sort of Parry pursue with the project financing or is it on project sanctioning just wondering how that works.

Unknown Speaker: That money goes in ahead of debt, and so it's in the earlier part of the construction phase. They have to commence construction and move forward, but it does go into the ground before any project debt gets applied to it. That being said, we have to make sure that they have to ensure that the full funding package is in place and arranged before we would actually provide it.

Speaker Change: Yes.

Speaker Change: That money goes in ahead of that.

Speaker Change: In the earlier part of the construction phase we have to commence construction and move forward, but it does go into the ground before before any project that goes gets applied to it now that being said we have to make sure that they have to ensure that the full funding package is in place and a range before we would actually provide any capital.

Gary Brown: Quite remarkable. Wheaton continued to deliver robust cash operating margins in the second quarter, resulting in cash flow from operations of $234 million, with the $32 million increase from the prior year due primarily to the higher gross margins. As mentioned by Randy, the strength of our second quarter cash flows resulted in cash flows for the first half of the year of over $450 million, representing a new record for Wheaton.

Unknown Speaker: Understood. Gotcha. Thanks for that. Appreciate it. Thanks, Randy. Thanks, Haytham.

Ralph Profiti: Understood. Gotcha. Thanks for that. Appreciate it. Thanks Randy. Thanks Haytham.

Speaker Change: Understood got you thanks for that I appreciate it thanks, Randy Thanks Haytham.

Speaker Change: Yes.

Unknown Speaker: Well, um..., and I look forward to a golden future together.

Speaker Change: Well.

Unknown Speaker: Thank you everyone for your

Speaker Change: Thank you everyone for.

Speaker Change: Time today.

Speaker Change: We are pleased to have reported a strong first half of the year, we can tie quality portfolio of assets sector, leading growth profile and commitment to sustainability provides all of our shareholders all of our stakeholders with a solid outlook for the future and what we believe to be one of the best vehicle for investing into the gold and precious metal space.

Gary Brown: Lastly, we declared a quarterly dividend of 15.5 cents per share, a 3% increase from the prior year. During the quarter, Wheaton made total upfront cash payments of approximately $45 million, $25 million of which was relative to the mineral park stream, and $10 million of which was relative to the Congray host stream, with the remaining $10 million relating to the Mt. Todd royalty. Additionally, the company made two dividend payments, totaling $139 million, and disposed of its investment in heckle mining company, for gross proceeds of $177 million.

Speaker Change: And as we celebrate our 20th anniversary throughout 2024, I am sincerely thankful to all of our stakeholders for being part of wheat and success and I look forward to a golden future together.

Speaker Change: We look forward to speaking with you all again soon thank you.

Speaker Change: Thank you presenters and this concludes this conference call for today. Thank you for participating please disconnect your lines.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Okay.

Gary Brown: When coupled with cash generated from operating activities, our overall net cash inflows amounted to $234 million in the second quarter of 2024, resulting in cash and cash equivalents at $330 at the $540 million. We believe this cash balance combined with the strength of our forecasted operating cash flows and the fully undrawn $2 billion revolving credit facility, which was recently extended by an additional year. Positions the company exceptionally well to satisfy its funding commitments and provides us with financial flexibility to acquire additional accretive mineral stream interest.

Unknown Speaker: [music].

Speaker Change: Okay.

Unknown Speaker: Okay.

Speaker Change: [music].

Randy Smallwood: that concludes the financial summary and with that I will turn the call back over to Randy. Thank you, Gary.

Randy Smallwood: In closing, we believe Wheaton is well positioned to continue delivering value to all of our stakeholders for a number of different reasons. Firstly, by offering our shareholders exposure to our diversified portfolio, long life low cost assets that we believe has one of the best organic growth profiles in the entire mining industry. Secondly, by continuing to generate strong operating cash flows and maintaining low predictable costs which, when coupled with our leverage to increase commodity prices, result in some of the highest margins in the precious metals space.

Randy Smallwood: Thirdly, a pipeline of significantly de-risk development projects which further supports our impressive organic growth profile of over 40% by 2028. And lastly, our commitment to sustainability and supporting our partners and the communities in which we live and operate.

Operator: So with that, I would like to open the call up for questions operator. Thank you. And ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question during this time, simply press a star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number two. We'll pause for just a moment to compile the Q&A roster.

Richard Hatch: And your first question comes from the line of a Richard Hatch with Baronberg. Please go ahead. Thanks very much. Yeah, morning running theme and thanks for the call. Just wonder if you might help us a bit with the logo clearly a better course for which it's really good to see. But just wonder if you might be able to help us a bit as we look at 2526. You're able to give us kind of broad expectations of, you know, grade and such like I know it's one that's kind of sometimes a bit challenging, but any kind of color that would be super helpful.

Richard Hatch: That's the first one. I'll let waste. I'll let West take that one off. Yeah, perfect. Thank you. Thanks for question, Richard. So we are starting to see a slight drop off in grade over the next couple of years. So into into 2526. But with that, we're also seeing that the ramp up looks a little bit three and really an increase in input, but there. So over the next few years, we do expect a slight increase in introduction.

Richard Hatch: And Sam, we'll see that continue really as as slow for you really comes online and comes the others. So for the rest of this year, I mean, we see that kind of kind of flattening of of the production. And then as as their throughput comes up, also, we'll see a better year next year, I think and into the next couple of years.

Wes Carson: Okay, so that's really helpful.

unknown: Thanks.

Richard Hatch: And then just on the business development kind of piece, perhaps for Randy and Hayson. Can you just talk a bit about what kind of feels you're seeing at the moment? It feels like the diversified. We've got strong balance sheets, not necessarily looking for for large sort of ticket transactions at this point, but maybe as we go into the next sort of copper cycle, that opportunity might present itself, and you know, just as you're looking down the list of your current BD opportunities, are we still kind of mainly focusing on those goal producers and such like, you know, in the midst of a few hundred million dollar ranges or are we seeing something, you know, a bit, a bit more large scale than in such like, we have, thanks.

Haytham Hodaly: Oh, well, I'll take the matter to the depends on that one. Thanks for the question, Richard. But, you know, we've got a number of opportunities that we're actually advancing through the due diligence phase right now. I would say, developing stage funding is still the focus, although we are seeing a resurgence in some balance sheet strengthening opportunities, majority of the opportunities we're seeing, it's probably 50, 50 between polymetallic opportunities, which have a precious metal byproduct and actually, precious metals companies that have very, very strong margins that are looking for, for continued growth.

Haytham Hodaly: So it's a very robust market, I would say the majority of the opportunities fall somewhere between, you know, a hundred to seven hundred million dollars in that range with a couple of those being north of five hundred. Yeah, I would say just to add to that, the deal size, the opportunity size seems to be a little bit bigger than what we've seen in, say, the last year, seems to be a little bit more of an appetite and a lot of these projects are actually a lot closer to, you know, the production, the construction stage and production, so, you know, overall it actually looks a little bit healthier, but it's still very busy on that further.

Haytham Hodaly: Okay, very helpful.

Richard Hatch: Thanks a lot for your time, Chiskebo. Thank you, Richard.

Martin Pradier: And your next question comes from the line up Martin Prattie here with Veritas Investment Research. Please go ahead. Thank you. If a gold production in second half is similar to first half, you would hit at least the middle of your guidance range for gold and exceed the upper end of the guidance for silver. So, the question is, is gold production expected to be weaker or stronger in the second half versus the first half?

Martin Pradier: And in terms of silver production, if you expect a weaker second half versus first half. Well, let's add some color to that. Sure. So, so right now, Martin, we're looking at probably a split of about 52% in the first half of the year and 48% in the second half of the year on an overall basis. We are expecting a weakening in the gold production at Slowbo with some of the impacts in the fire and really just a lower grade particularly in the fourth quarter.

Martin Pradier: And then we are, as I mentioned on Penskeo on the silver side, seeing that drop as they move back into the Pinyasco pit. So, overall, as I said, about that kind of 5248 is about what we're expecting for the rest of this year.

Wes Carson: Okay, great. And in terms of saloval, is the impact of the fire expected to be around 10,000 ounces in terms of production? It will be in that range. I would say we're hoping lower than that certainly because they did get things back up and running fairly quickly. It wasn't one of the major conveyors and really just affected the third line. So, Slowbo 1 and 2 were running through that period. And also, during that period, they had some planned maintenance shutdowns during that period as well.

Wes Carson: So, we haven't seen the full results of it yet, but that's in the range, hopefully slightly better. I think it might be worth talking about the fact that Slowbo outperformed a bit in the first half of this year. And I think that fire probably consumed up some of that outperformance. So, from an overall annual basis, it's probably net neutral. But that outperformance, as I said, was probably eaten up a little bit by the impact of the fire.

Operator: Great, thank you. And I once again, if you would like to ask a question, seem to press a star followed by the number one on your telephone keyboard.

Tanya Jakusconek: Your next question comes from the line of Tanya Jakusconek with Skoshuban, please go ahead. Oh, good, thank you.

Wes Carson: Good morning, everyone. Just wanted to come back just on the guidance. Thank you for the 5248. But with all these little moving parts in the second half, just want to confirm, I think previously we were looking for fairly even Q3 equal to Q4. Should that is that something how we should be thinking about given the fire and some of the other great movement. Well, head west. Yeah, I would say that that is correct.

Wes Carson: It will be fairly even. I mean, there's a lot of moving parts, as you say, between the quarters there, but it is fairly even between Q3 and Q4. I think the impacts of the fire are going to Q3. And then we have definitely lower grade scheduled into Q4. And so it's probably going to spend it pretty evenly. There's a level. Okay, well, thank you for that.

Gary Brown: And I just wanted to ask Gary the DDA for a cast for the year. Usually we get that in August in terms of depreciation. And sorry, maybe in your information provided there, we just had a number of companies report last night. Sorry, the question was with respect to what we expect GNA to be. No, depreciation. Appreciation. Yeah, I mean, Tony, we provide asset by asset, the depletion numbers in the MDNA. You know, I would suggest looking at what we depleted for Q2 as, you know, an indication of what our surrounds depletion will be by asset. Okay, all right. So Q2 is a benchmark going forward. Thank you for that.

Haytham Hodaly: And then can I just ask, Hey, I'm just coming back to you on on these transactions and opportunities that are out there and interesting that we have the 100 to 700 and, you know, couple over 500 million. And you mentioned in sort of the development stage or early construction. And how does platinum palladium fit in right now, given their weak prices? Those opportunities you're looking at in addition to the gold side, gold silver.

Haytham Hodaly: I would say even on, you're right, the PGM's given where PGM price have gone. There's probably a few opportunities in there that we're also looking at. I would say that we're still looking at the gold components of the PGM typically. If we're looking at anything else outside of the gold, it's, you know, maybe it's fun them. And only to top up if they need more capital and the gold could provide them. But, you know, we're seeing not just the PGM opportunities, but obviously we've seen some gold out there. You see people trying to capitalize on the strong commodity price to try and get some additional funds. Okay.

Tanya Jakusconek: That's helpful. Thank you.

Haytham Hodaly: And then where would corporate transactions fit in as you look at the space? So we'll always consider looking at our peers and seeing if and when it makes sense for us to actually make any type of corporate transaction. I will say that at this point in time, it doesn't make sense to pay a premium on the multiple, but I can still purchase streams at or below that aspect, right? Yeah, no, I agree.

Haytham Hodaly: And just as you look at the environment, I mean, I always hear everyone say that so much of it is so much out there. Maybe just give us an idea from like, you know, a timing perspective, because this is that I heard so many comments on this, somebody deals out there. Like, you know, how long does these deals take to actually do? Like from the time you actually say, okay, we're working on something to actually do your due diligence.

Haytham Hodaly: I know it's, you know, moment by moment, each one has, you know, a different time frame, but just so that we can understand from the moment you're saying you're seeing so much to actually completing some of these things so that we can kind of. Understand the process. Thank you.

Haytham Hodaly: Sure, sure, Tay, I'm happy to have this as well. So so generally speaking, if an opportunity, whether we're being proactive or reactive, most of the time, we're proactively out there looking up to these probably, I'd say 20 or 30% of the time. Right now, we're being reactive to opportunities coming into door. When once an opportunity comes in the door, it takes us usually a couple of weeks to actually do our first pass bolts, just to see if it actually makes sense to put a stream on it.

Haytham Hodaly: If we do that, and we find that the asset can actually handle the margins are solid. The asset can handle the street. We'll do a deep dive, and that usually takes another couple of weeks. We'll somewhere along the way and we'll put out an indication of value. We will assuming the indication of values is interesting to the counterparty, then we'll head to site at the same time, we'll start working on term sheets.

Haytham Hodaly: And once we typically conclude, conclude term sheets, we look for exclusivity. Once that exclusivity is obtained, usually takes about another four weeks to get defenders in place. So you're talking, we start to finish anywhere from, I'd say, six, eight weeks.

Haytham Hodaly: Is it a typical timeline for a stream? Okay, thank you for that. I actually thought it was longer, but thank you for that. Sometimes it takes longer, but usually it usually has to do with database issues and stuff like that. It's always a matter of having to make sure that we're getting good, good information in when we're assessing these projects. And so sometimes that does drag on a bit. Okay, it's about two months would be something that, you know, we should kind of think about.

Haytham Hodaly: Yeah, I mean, if you ask our lawyers, they'd rather we said free, but, you know, we've done it in four weeks, and it's taken as long as three months. So yeah, it's probably good average. Okay, thank you for the clock, for the color.

unknown: Okay.

Rolf Fiddy: And your next question comes from the line of role for Fiddy with eight capital T's go ahead. Thanks operator. Just one question from me. I did see some refaising of the central domain, go up front payment that came with the updated feasibility study. And I'm just wondering, where does that up front stream payment rank in sort of the project capital spending? Is it sort of Perry Pissue with the project financing or is it on project sanctioning?

Rolf Fiddy: Just wondering how that works. That money goes in ahead of debt. And so it's in the earlier part of the construction phase. You have to commence construction and move forward, but it does go in to the ground before any project debt goes gets applied to it. No, that being said, we have to make sure that they have to ensure that the full funding package is in place and arranged before we would actually provide any help. Understood. Got you. Thanks for that. Appreciate it. Thanks, Randy. Thanks, Haytham.

Randy Smallwood: Well thank you everyone for your time today. We are pleased to have reported the strong first half of the year. Wheaton Type Quality Portfolio of Assets, sector leading growth profile and commitment to sustainability, provides all of our shareholders, all of our stakeholders with a solid outlook for the future and what we believe to be one of the best vehicles for investing into the gold and precious metal space. And as we celebrate our 20th anniversary throughout 2024, I am sincerely thankful to all of our stakeholders for being part of Wheaton's success. And I look forward to a golden future together. We look forward to speaking with you all again soon. Thank you.

unknown: Thank you, presenters and