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 noise.

After the speaker's remarks, there will be a question and answer session.

Speaker Change: If you would like to ask a question during this time, simply press 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. If you would like to withdraw your question, please press star followed by the number two.

Operator: Thank you. I would like to remind everyone that this conference call is being recorded on Thursday, August 8, 2024, at 8pm Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.

Operator: I would like to remind everyone that this conference call is being recorded on Thursday, August 8, 2024, at 8 p.m. Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.

Unknown Speaker: resulting in record cash flows of over $450 million for the first half of this year. 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, committing to operating responsibly in all facets of our business.

Unknown Speaker: In the second quarter of 2024, Slobo produced 63,200 ounces of attributable gold, an increase of approximately 23% relative to the second quarter of 2023. Pudbay has reported that the mill or feed has now reverted to a typical blend of approximately one-third from Papicancha and two-thirds from Constancia, which is expected to continue throughout 2024.

Unknown Speaker: 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 Penobscot pit. On July 31st, 2024, Ivanhoe reported that construction of Platte Reef's Phase 1 concentrator was completed on schedule, subsequent to recording. Cold commissioning has started, with water being fed through the concentrator and the construction of Platte Reef's Shaft 2 headquarter at approximately 60%, and 12 to 15,000 ounces of our GEOs of other metals, resulting in an overall production of approximately 550,000 to 620,000 GEOs.

Unknown Speaker: Going forward, the quarterly tax expense associated with GMT will be recognized in our consolidated financial statements in the appropriate reporting period. 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. Additionally, the company made two dividend payments totaling $139 million and disposed of its investment in Hecla Mining Company. That concludes the financial summary, and with that, I will turn the call back over to Randy.

Speaker Change: Thank you. I would like to remind everyone that this conference call is being recorded on Thursday, August 8, 2024 at 8pm Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.

Emma Murray: Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton Precious Metals President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, Haytham Hodaly, 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 presentations page of our website.

Emma Murray: Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton Precious Metals President and Chief Executive Officer, Gary Brown, Senior Vice President and Chief Financial Officer, Haytham Hodaly, Senior Vice President, Corporate Development, and Wes Carson, Vice President, Mining Operations.

Emma Murray: Please note that for those not currently on the webcast, a slide presentation accompanying this conference call is available in PDF format on the presentations page of our website.

Emma Murray: 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.

Speaker Change: Some of the commentary in 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.

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.

Randy Smallwood: Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton's 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, 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 in 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.

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.

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,

Randy Smallwood: provides strong flexibility to fund all outstanding commitments as well as the capacity to acquire additional creative mineral stream interests.

Randy Smallwood: Transcription by Transcription Outsourcing, LLC. 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, and we are proud to have been ranked among the top 10 in Corporate Night's 50 Best Corporate Citizens in Canada for 2024. Founders and Architects of Sustainable Streaming, this accomplishment is reflective of our commitment to operating responsibly in all facets of our business.

Randy Smallwood: Our 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.

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

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.

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.

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. 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.

Speaker Change: 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

Speaker Change: for high quality, long life precious metals exposure.

Speaker Change: 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.

Wes Carson: West. Thanks, Randy. Good morning.

Wes Carson: Overall production in the second quarter came in higher than expected, driven by strong outperformance at Salobo, Pensacito, and Antimena. In the second quarter of 2024, Slobo produced 63,200 ounces of attributable gold, an increase of approximately 23% relative to the second quarter of 2023, driven primarily by higher throughput. Slobo's strong production in Q2 is attributable primarily to the continued ramp-up of the Slobo 3 expansion and sustained overall improvements at both Slobo 1 and 2. On June 17th, Valet reported a conveyor fire at Slobo 3, and on July 25th, they announced that plant operations at Slobo 3 had resumed after a 31-day repair period.

Wes Carson: Overall production in the second quarter came in higher than expected, driven by strong outperformances at Salobo, Penasquito, and Antonina.

Speaker Change: In the second quarter of 2024, Slobo produced 63,200 ounces of attributable gold, an increase of approximately 23% relative to the second quarter of 2023, driven primarily by higher throughput.

Wes 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.

Speaker Change: On June 17th, Valet reported a conveyor fire at Slobo 3, and on July 25th, they announced that plant operations at Slobo 3 had resumed after a 31-day repair period.

Wes 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, Constantia produced 450,000 ounces of attributable silver and 6100 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 Papacancho Pit, which commenced in the second quarter and is expected to continue through the third quarter of 2024. Padbea has reported that mill ore feed has now reverted to a typical blend of approximately one-third from Papacancha 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 Wheaton's guidance will be minimal and offset by outperformance just in the first half of the year.

Speaker Change: In the second quarter of 2024, Constantia 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.

Speaker Change: The decrease in gold production was primarily the result of lower grades due to planned stripping activity in the Papacancho Pit which commenced in the second quarter and is expected to continue through the third quarter of 2024.

Speaker Change: HUD Bay has reported that mill ore feed has now reverted to typical blend of approximately one-third from Apacancha and two-thirds from Constantia, which is expected to continue throughout 2024.

Wes 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 and silver grades than the main Penobscot pit. Grades are expected to decrease slightly in the back half of the year as mining moves back into the Ponyasco. 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 Head Keter at approximately 60%.

Speaker Change: In the second quarter of 2024, Pentasquito 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 in the Chile-Colorado pit which contains higher silver, lead, and zinc metal and silver grades than the main Penasco pit.

Speaker Change: Grades are expected to decrease slightly in the back half of the year as mining moves back into the Pinasco pits.

Speaker Change: 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 Head Keter at approximately 60% complete.

Wes Carson: An 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. In addition, a preliminary economic assessment on the Phase 3 expansion is expected to be completed at the same time, with the expansion forecast to increase Platte Reef's 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: 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.

Speaker Change: In addition, a preliminary economic assessment on the Phase III 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 tonnes per annum.

Speaker Change: A phase 3 expansion to 10 million tons. Processing capacity is expected to rank Platte Reef as one of the world's largest platinum group metal, nickel, copper and gold producers.

Wes 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 12,000 to 15,000 ounces of GEOs of other metals, resulting in an overall production of approximately 550,000 to 620,000 GEOs. 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, Penasquito, Boise's Bay, and Marmaro.

Speaker Change: As mentioned by Randy, with over 305,000 ounces produced year-to-date, the company remains well on track to achieve our annual production guidance this year.

Speaker Change: Wheaton's estimated attributable production in 2024 continues to be forecast at 325,000 to 370,000 ounces of gold.

Speaker Change: 18.5 to 20.5 million ounces of silver and 12 to 15,000 ounces of our GEOs of other metals resulting in an overall production of approximately 550,000 to 620,000 GEOs.

Speaker Change: Production is forecast 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.

Wes Carson: Development Projects, which are in construction and are permitted, including Blackwater, Platte Reef, Goose, Merrill Park, Phoenix, Creepamba, and Santa Domingo, and pre-development projects, including Marathon and Copper Whirl, 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 ounces of Gold Quill Analysis annually for the five- And that concludes the operational overview. And with that, I will turn the call over to you.

Speaker Change: Development projects, which are in construction and are permitted, including Blackwater Platte Reef, Goose, Merrill Park, Phoenix, Cripamba, and San Domingo, and pre-development projects, including Marathon and Copper World.

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

Speaker Change: From 2029 to 2033, attributable production is forecast to average over 850,000 ounces of gold equivalent ounces annually for the five-year period.

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

Gary Brown: 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 Sandimass 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 PBND, which resulted in a reduction in sales volumes relative to Q2 2023 of over 23,000 GEOs.

Gary: Thank you Wes.

Gary: As described by West, production in the second quarter amounted to 147,000 GEOs.

Gary: 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 Thandamass and Constanthia, combined with the cessation of production from Algestrel and Minto.

Gary: Sales volumes amounted to 124,000 GEOs, a 4% decrease relative to the comparable period of the prior year.

Gary: 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 Brown: 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.

Gary: Of this revenue, 61% was attributable to gold, 37% to silver, 1% to palladium, and 1% to cobalt.

Gary: As at June 30, 2024, approximately 128,000 GEOs were in PB&E, representing approximately 2.9 months of table production.

Gary: 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 Brown: 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 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 investments.

Gary: 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 Brown: 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...

Gary: to january first two thousand and twenty four the company has recorded two quarters or the global minimum tax amounting to fifty one million dollars in its financial statements from the period ending june thirtieth two thousand and twenty four with twenty five million dollars relating to q one two thousand and twenty four

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

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

Gary Brown: 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. 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 Brown: 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 $0.155 per share, a 3% increase from the prior year.

Speaker Change: Quite remarkable.

Speaker Change: 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.

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 dollars, representing a new record for Wheaton.

Speaker Change: Lastly, we declared a quarterly dividend of $0.155 per share, a 3% increase from the prior year.

Gary Brown: 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 Congrejos 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 Hecla Mining Company for gross proceeds of $177 million. When coupled with cash generated from operating activities,

Speaker Change: 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 Congrejos stream.

Gary: with the remaining ten million dollars relating to the amount tod royalty

Speaker Change: additionally the company made two dividend payments totally one hundred and thirty-nine million dollars and disposed of its investment in hecalmining company

Speaker Change: for gross proceeds of $177 million.

Speaker Change: When coupled with cash generated from operating activities,

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

Speaker Change: our overall net cash inflows amounted to two hundred thirty-four million dollars in the second quarter

Speaker Change: of 2024 resulting in cash and cash equivalents at June 30th of 540 million dollars.

Speaker Change: 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,

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

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

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 to increase commodity prices...

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.

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.

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

Speaker Change: 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.

Speaker Change: result in some of the highest margins in the precious metal space.

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

Operator: Welcome to Wheaton Precious Metals 2024 2nd Quarter Results Conference Call. Online's have been placed on YouTuber Ben Anybacker Noise. After the speaker's 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. If you would like to withdraw your question please press a star followed by the number two. Thank you.

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

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 list.

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, simply press a star followed by the number 1 on your telephone keypad. If you would like to withdraw your question, please press the star followed by the number 2. We'll pause for just a moment to compile the Q&A roster.

Operator: I would like to remind everyone that this conference call is being recorded on Thursday, August 8, 2024 at 8pm Eastern Time.

Emma Murray: I will now turn the conference over to Emma Murray Vice President of Investor Aditions. Please go ahead.

Emma Murray: Thank you operator. Good morning ladies and gentlemen and thank you for participating in today's call.

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

Emma Murray: 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 Hodelay, Senior Vice President Corporate Development and West 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 page of our website. Some of the commentary today's call may contain forth-looking statements and I would direct everyone to refuse live two of the presentation which contains important cautionary notes regarding forth-looking statements. It should be noted that all figures referred to on today's call are in US dollars unless otherwise noted.

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

Speaker Change: thank very much up yet morning running in seam in them

Richard Hatch: Thanks for the call. I just wonder if you might help us a bit with Solobo. Clearly a better quarter, which is really good to see. I just wonder if you might be able to help us a bit as we look out into 2025, 2026. Are you able to give us kind of broad expectations of, you know, grade and such like? I know it's one that...

Richard Hatch: Just wonder if you might help us a bit with Solobo, clearly a better course for which it is really good to see. I just wonder if you might be able to help us a bit as we look out into 2025, 2026, be able to give us kind of broad expectations of grades 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.

Speaker Change: Thank you. Thank you. Thank you.

Speaker Change: Sometimes a bit challenging, but any kind of color there will be.

Speaker Change: Be super helpful.

Speaker Change: and that.

Wes Carson: Thanks for the question, 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 once Syllable 3, we'll see a better year next year.

Speaker Change: so

Speaker Change: All at Waste.

Speaker Change: I'll let Wes take that one off. Perfect. Thanks for the question, Richard.

Speaker Change: so

Richard Hatch: Okay, that's really helpful. Thanks.

Speaker Change: We are starting to see a slight drop-off in grades over the next couple of years, so into 2025-2026, 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 together. So for the rest of this year, I mean, we see that kind of...

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-life low-cost assets has delivered another solid quarter generating $234 million in operating caseloads resulting in record caseloads of over $450 million for the first half of this year.

Speaker Change: kind of flattening of the production, and then as the throughput comes up once level three, we'll see a better year next year, I think, and into that.

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, in the mid sort of few hundred million dollar ranges, or do we think something, you know, a bit more large scale, don't touch like we have, thanks?

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 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 caseloads provides strong flexibility to fund all outstanding commitments as well as the capacity to acquire additional the creative mineral stream interests.

Speaker Change: next couple years

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

Speaker Change: Diversified's 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 you know, just as you're looking down the list of your current BD opportunities, are we still kind of mainly focusing on those?

Speaker Change: goal producces and such like you know in the mid a few hundred million dollarranges or all we think something a bit more large scale does in such like we have thank

Haytham Hodaly: I'll let Haytham answer that one.

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 million.

Haytham: I'll let Haytham answer that one. Thanks for the question, Richard. Put it simply, you know, we've got a number of opportunities that we're actually advancing through the due diligence phase right now.

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 nights 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 in this.

Speaker Change: I would say development stage funding is still the focus, although we are seeing a resurgence in some balance sheet strengthening opportunities.

Haytham: majorityof oortunities we're seeing 's bably fifty fifty between poly mcallic opportunities which have a fh metal by product and act practiceed metals companies that have some very very strong margins that are looking for for continued growth so it's very robust market i would say the majority of the oppunities fall somewhere between

Speaker Change: $100 to $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 the production or 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: 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. There 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.

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.

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

Unknown Attendee: Okay, very helpful. Thanks a lot for your time. Cheers, go well.

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

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

Wes Carson: 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. Overall production in the second quarter came in higher than expected, driven by strong outperformances at Solobo, Penisquito, and Antimena. In the second quarter of 2024, Solobo produced 63,200 ounces of attributable goal, an increase of approximately 23% relative to the second quarter of 2023, driven primarily by higher throughput. Solobo's strong production in Q2 is attributable primarily to the continued ramp up of Solobo, Solobo 3 expansion, and sustained overall improvements at both Solobo 1 and 2.

Speaker Change: Okay, very helpful. Thanks a lot for your time. Cheers, go well.

Richard: Thank you, Richard.

Operator: 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 Pradier with Veritas Investment Research. Please go ahead.

Martin Pradier: 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, do you expect a weaker second half versus the first?

Martin Pradier: Thank you. If 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?

Unknown Attendee: So the question is, is gold production expected to be weaker or stronger in the second half compared to the first half?

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

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

Wes 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 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.

Martin Pradier: I'll let Wes add some color to that.

Wes Carson: On June 17th, Valley reported a conveyor fire at Solobo 3, and on July 25th, they announced that planned operations at Solobo 3 resumed after 31-day repair period. Valley has maintained their copper guidance for the year, and we anticipate that any impacts to weeding's guidance will be minimal, and offset by outperformance just in the first half of the year. 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.

Wes Carson: So right now, Martin, we're looking at...

Wes Carson: 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.

Wes Carson: 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 the Penasco pit.

Wes Carson: So overall, as I said, about that kind of 52-48 is about what we're expecting for the rest of this year.

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

Wes Carson: Thank you for joining us this year.

Wes Carson: The decrease in gold production was primarily the result of lower grades due to plans strictly activity in the public budget pit, which commenced in the second quarter and expected to continue through the third quarter of 2024. Pad Bay reported that Mill or Feed has now revered to the difficult blend of approximately one-third of from public budget and two-thirds from Constantia, which is expected to continue throughout 2024. In the second quarter of 2024, Pennesquito 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: Okay, great. And in terms of Salovo, is the impact of the fire expected to be around 10,000 ounces in terms of production?

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.

Wes 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.

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 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 better than that.

Wes Carson: You know, I think it might be worth, you know, just 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: 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 Pennescue pit. Grades are expected to decrease slightly in the back half of the year as mining moves back into the Pennescue pit.

Speaker Change: 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.

Wes Carson: But, you know, that outperformance, as I said, was probably eaten up a little bit by the impact of the fire.

Wes Carson: On July 31, 2024, Ivan Ho reported that construction of flat re-space, one concentrated was completed on schedule, subsequent to record. Cold conditioning has started with water being fed through the concentrated and construction of flat re-shaft to head here at approximately 60% complete.

Speaker Change: Great, thank you.

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

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

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

Wes Carson: 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 2024. In addition, a preliminary economic assessment on the phase two expansion is expected to be completed at the same time, with the expansion forecast to increase flat re-s processing capacity up to approximately 10 million, and tons for Adam. Phase 3 expansion to 10 million tons, processing capacity is expected to rank plat reef as one of the world's largest platinum group metal, nickel, copper, and gold producers.

Speaker Change: Your next question comes from the line of Tanya Jakusconek 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, is that something we should be thinking about given the fire and some of the other grade movements?

Tanya Jakusconek: Oh, good. It's me. Thank you. Good morning, everyone. I 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, I just want to confirm, I think previously we were looking for fairly even time.

Speaker Change: Q3 equal to Q4 should that is that something how we should be thinking about given the fire and some of the other grade movements?

Wes 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.

Wes Carson: As mentioned by Randy, with over 305,000 ounces produced year to date, the company remains well-entracted to achieve our annual production guidance this year. We insestimated the Tribunal 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 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 saloble, antimena, penisquito, voisies bay, and marmato.

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 Carson: Go ahead, Wes.

Wes Carson: 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 Q3 and Q4.

Speaker Change: I think the impacts of the fire are going to be Q3 and then we have definitely lower grades scheduled into Q4. And so it's probably going to spin up pretty evenly there at this level.

Wes 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 split up pretty evenly there as well.

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 your information provided there, we just had a number of companies report last night.

Unknown Attendee: 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 your information provided there, we just had a number of companies report last night.

Speaker Change: Okay, 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 your information provided there, we just had a number of companies report last night.

Gary Brown: Uh, sorry, the question was with respect to what we expect.

Speaker Change: Sorry, the question was with respect to what we expect G and A to be? No, depreciation.

Wes Carson: Development projects, which are in construction and are permitted to including black water, plat reef, goose, you know, park, phoenix, crepomins, antidimingo, and pre-development projects, including marathon and copper world, from which production is anticipated towards the latter and of the five-year forecast period.

Tanya Jakusconek: No, depreciation. D-D-N-A. D-D-N-A. 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: No, depreciation.

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

Gary: 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.

Gary Brown: From 2029 to 233 attributable production is forecast average over 850,000 ounces of gold-flow analysis 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% increase relative to the comparable period of the prior year, with higher production from salovo zinc, rubin, and penisquito being offset by lower production from phantom ass and sansia, combined with the cessation of production from algistral and minto.

Speaker Change: For Q2, as you know, an indication of what our per ounce depletion will be by asset.

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

Tanya Jakusconek: 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: And then can I just ask, Haytham, 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 a couple over 500 million and you mentioned in the

Speaker Change: sort of the development stage or early construction how does platinum palladium fitis right now given their weakk prices are those opportunities you're looking at in an addition to the gold side goals over

Gary Brown: 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. Strong commodity prices coupled with our solid production base resulted in revenue increasing by 13% to $299 million relative to Q2 2023.

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.

Haytham: I would say even on, you're right, 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.

Tanya Jakusconek: Okay, that's helpful. Thank you.

Speaker Change: typically. If we're looking at anything else outside of the gold it's, you know, maybe it's platinum 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're seeing some gold opportunities too. People trying to capitalize on the strong commodity price.

Tanya Jakusconek: And then, where would the corporate transaction fit in? As you look at the states.

Haytham: to try and get some additional funding.

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 that GNA will total $41 to $45 million for the year, with these figures excluding share-based compensation, as well as donations and community investments.

Speaker Change: Okay, that's helpful, thank you. And then where would a corporate transaction fit in?

Unknown Speaker: as you look at the state.

Unknown Speaker: 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 net asset value.

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 net asset value.

Speaker Change: as you look at the states.

Speaker Change: So, so we'll 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 transaction 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 net asset value

Tanya Jakusconek: 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 it?

Unknown Attendee: 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, you know, a timing perspective, because this is what I've heard so many comments on about so many deals out there.

Speaker Change: 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 that I've heard so many comments on this, so many deals out there.

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: like

Speaker Change: How long do 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? 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.

Speaker Change: So that we can kind of understand the process. Thank you.

Haytham Hodaly: Sure. Sure, Tanya.

Speaker Change: Sure, Tanya, I'm happy to have this as well. So generally speaking, if an opportunity, 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.

Haytham Hodaly: I'm happy to help you with that as well. So, generally speaking, if there is an opportunity, it depends on whether we're being proactive or reactive. Most of the time, we're proactive, going out there looking for opportunities. Probably, I'd say 20 or 30% of the time right now, we're reactive to opportunities coming in the door. Once an opportunity comes in the door, it usually takes us 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.

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.

Speaker Change: Once an opportunity comes in the door, it takes us usually a couple of weeks to actually do our first pass and pulse.

Speaker Change: just a see it actually ma sense to put a stream on it if we do that and we find that the asset can actually handle the markeins are solid the asic hand theustryet 'will do a deep dive and that it takekes another couple weeks

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

Speaker Change: Well somewhere along the way we'll put out an indication of value. We will assume 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.

Speaker Change: and once we typically comple te conclude term sheets we look to for exclusiity once that exclusivities of pain usually takes about another four weeks to get that defenders in place so you're talking start to finish anywhere from ' say six eight weeks is is a typical timeline first stre

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 a $32 million increase from the prior year due primarily to the higher gross margins. As mentioned by Randy, the strength of the 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 Attendee: Okay, thank you for that. I actually thought it was going to be longer, but thank you for that.

Speaker Change: okay thank you for that i actually coming longer so thank you for now

Speaker Change: 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 in when we're assessing these projects, and so sometimes that does drag on a bit.

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

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 dispose of its investment in Hecla Mining Company, for gross proceeds of $177 million.

Speaker Change: 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 average.

Operator: Okay, thank you for the caller.

Speaker Change: Okay, thank you for the caller.

Speaker Change: pleased then

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

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

Tanya Jakusconek: Okay, thank you for that. I actually thought it was going to be 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.

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

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

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.

Tanya Jakusconek: Okay, thank you for the caller.

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

Ralph Profiti: thanks operator just one question from me i did see some rephasing of the cental domingo up front payment that came with the updated feasibility study and i'm just wondering where does that a front stream payment rank

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

Ralph Profiti: I did see some re-phasing of the Santo Domingo upfront payment that came with the updated feasibility study, and I'm just wondering, where does that upfront stream payment rank 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.

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 equivalence at June 30th of $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. Positions the company exceptionally well to satisfy its funding commitments and provides us with financial flexibility to acquire additional accretive mineral stream interest.

Speaker Change: and sort of the project capital spending. Is it sort of peri-pursuit with the project financing or is it on project sanctioning? Just wondering how that works.

Randy Smallwood: 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...

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...

Speaker Change: 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 in to the ground before

Speaker Change: before any project thatb goes 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 on a range or we would actually gr any couple

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

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

Randy Smallwood: Well, um...

Speaker Change: hip

Randy Smallwood: That concludes the financial summary and with that I will turn the call back over to Randy Thank you, Gary 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 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 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 pass for just a moment to compile the Q&A roster And your first question comes from the line of a Richard Hatch with Baronburg, please go ahead Thanks very much, yeah, morning running theme and thanks for the call Just wondering if you might help us with it with Solobo, clearly a better call for which is really good to see But just wonder if you might be able to help us a bit as we look at it, 25, 26 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 colour that would be super helpful, that's the first one I'll let Wes take that one off Yeah, perfect, thanks for the question, 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 that the ramp up of Solobo 3 and really an increase in throughput there So over the next few years, we do expect a slight increase in introduction and we'll see that continue really As Solobo 3 really comes online and comes the other So for the rest of this year, I mean we see that kind of flattening of the production And then as the throughput comes up, Solobo 3 will see a better year next year I think in the next couple of years Okay, that's really helpful, thanks 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 has 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 you know, just as you're looking down the list of your current BD opportunities, are we still kind of mainly focusing on these Gold producers and and such like, you know in the midst of a few a few hundred million dollar ranges or are we seeing something you know a bit more large scale Don't touch like we have.

Unknown Speaker: Thank you everyone for your time today. We are pleased to have reported a strong first half of the year. Wheaton's high-quality portfolio of assets, sector-leading growth profile, and commitment to sustainability provide 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 in the gold and precious metals space, and I look forward to a golden future together. We look forward to speaking with you all again soon. Thank you.

Randy Smallwood: Thank you everyone for your time today. We are pleased to have

Speaker Change: Thank you everyone for your time today.

Speaker Change: We are pleased to have reported a strong first half of the year.

Speaker Change: Weak and Tight 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 metals space.

Unknown Speaker: 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.

Speaker Change: 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.

Randy Smallwood: Thanks. Oh I'll take the matter to the fans of that one. Thanks for the question, Richard. I did put it simply You know, we've got a number of opportunities that were actually advancing through the due diligence phase right now I would say develop and stage funding is still the focus although we are seeing a Research in some balance sheet strengthening opportunities the majority of the opportunities we're seeing it's probably 50 50 between Paulie metallic opportunities, which have a fresh metal byproduct and actually practice metal companies that Has very very strong margins that are looking for for continued growth.

Randy Smallwood: 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 more than 500 Yeah, I would say just to add to that that it's the the deal size the opportunity size seems to be a little bit bigger than what we've seen in say the last year It seems to be a little bit more of an appetite and and a lot of these projects are actually a lot closer to you know The production construction stage and production. So so you know overall it it actually looks a little bit healthier But it's still very busy on that front Okay, very helpful. Thanks a lot for your time.

Richard Hatch: Cheers.

Wes Carson: I will Thank you Richard And your next question comes from the line up Martin Prattier with the various investment research fees. Go ahead Thank you If a cold production in second half is similar to third half you would hit at least the middle of your guidance range for Gold and exceed the upper end of the guidance or 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 first half Well, let's add some kind of 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 a second half of the year on an overall basis We are expecting a weakening in the gold production at Slobo with with some of the impact from the fire and really just a lower grade particularly in the fourth quarter And then we are as it as mentioned on Penskedo on the silver side seeing that drop as they move back into the Pinyasco pit So so overall as I said about that kind of 5248 is about what we're expecting for the rest of this year Okay, great and in terms of Slobo is the impact of the fire expected to be around 10,000 ounces in terms of production It will be in that range.

Wes Carson: I would say we're hoping lower than that certainly because they 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 The Slobo one and two 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 yeah in the range.

Wes Carson: Hopefully slightly better Yeah, I think it might be worth you know talking about the fact that Slobo outperformed a bit in the first half of this year And and I think that fire probably consumed up some of that outperformance And so from a overall annual basis. It's probably net neutral Um But you know that outperformance as I said was was probably eating up a little bit by by the impact of the fire Great, thank you.

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

Tanya Jakusconek: Your next question comes from the line of Tanya Jakusconek with Scotia Bankies. Go ahead. Oh, good. Thank you. Good morning, everyone. I 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 2, 3, equal to 2, 4. Should that is that something that we should be thinking about given the fire and some of the other great newsmen.

Tanya Jakusconek: 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 Q3 and Q4. And so it's probably going to stood up pretty evenly there. It's level. Okay.

Wes Carson: Well, thank you for that.

Gary Brown: And I just wanted to ask Gary the DDA forecast for the year. Usually we get that in August in terms of the appreciation. 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, appreciation. Appreciate it. Yeah, I mean, Tony, we provide asset by asset, the depletion numbers in the NDNA. Okay.

Gary Brown: You know, I would suggest looking at what we depleted for Q2 as, you know, an indication of what art surrounds the 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, a couple over 500 million. And you mentioned in the sort of the development stage or early construction. 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 is 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 see some gold up there. We see people trying to capitalize on the strong commodity price to try and get some additional funds.

Haytham Hodaly: Okay. That's helpful.

Haytham Hodaly: Thank you.

Haytham Hodaly: And then where would corporate transactions fit in? Have you looked at the space? So, so we'll always consider 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. Yeah, no, I agree.

Haytham Hodaly: And and just as you look at the environment, I mean, I'm again, you know, 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've heard so many comments on this, so many deals out there. Like, you know, how long does these deals take to actually do? Like from the time you ask to actually say, okay, we, you know, 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. Sure, sure. I'm happy to have that as well. So, so generally speaking, if an opportunity, depends whether we're being proactive or reactive. Most of the time we're proactive, but we know if they're looking up to these probably I'd say 20 or 30 times the time right now we're being reactive to opportunities coming into door.

Haytham Hodaly: When once an opportunity comes in the door, it takes us usually a couple of weeks to actually do our first pass. Well, just to see if it actually makes sense to put a stream on it. If we do that and 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. Well, somewhere along the way, we'll put out an indication of value.

Haytham Hodaly: We will assuming the indication of values is interesting to be counterparty, then we'll head to site at the same time we'll start working on term sheets. And once we typically 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 say, six, eight weeks. Is it is a typical timeline for a stream?

Haytham Hodaly: Okay, thank you for that. I actually thought it was longer, but thank you for that. Sometimes it takes longer, but usually it usually it has to do with database issues and stuff like that. It's always a, you know, 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 taking as long as three months. So yeah, it's probably good average. Okay, thank you for the color.

Unknown Attendee: 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 refaizing of the central domain. So, upfront payment that came with the updated feasibility study, and I'm just wondering, where does that upfront stream payment rank in sort of the project capital spending? Is it sort of Perry Pesu with the project financing, or is it on project sanctioning?

Unknown Attendee: Just wondering how that works? That money goes in ahead of that, and so it's in the earlier part of the construction phase. I have to commence construction and move forward, but it does go in to the ground before any project that goes get 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 buy the HF. Understood, gotcha. Thanks for that. Appreciate it. Thanks, Randy. Thanks, Haytham. Yep.

Randy Smallwood: Well, thank you everyone for your time today. We are pleased to have reported the strong first half of the year. Wheaton's high-quality portfolio of assets, sector-leading growth, profiling, 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 metals space. And as we celebrate our 20th anniversary, throughout 2024, I am sincerely thankful to all of our stakeholders for being part of Wheaton success, and I look forward to a golden future together. We look forward to speaking with you all again soon.

Operator: Thank you.

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