Q1 2025 Wheaton Precious Metals Corp Earnings Call
Good morning, ladies and gentlemen, thank you for setting by welcome to the Wheaton precious metals 2025 first quarter results conference call.
All lines have been placed on mute to prevent any background noise.
After the Speakers' remarks, there will be a question and answer session.
If you'd like to ask a question. During this time simply press Star then the number one on your telephone keypad.
Or take your answer into the Q&A box in the webinar.
He would like to withdraw your question press the pound key thank you.
Press the pound key, thank you.
Speaker Change: I'd like to remind everyone that this conference call is being recorded on Friday, May 9th, 2025 at 11 a.m. Eastern Time
Speaker Change: I will now turn a conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.
Emma Murray: Thank you, Andrew. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton Precious Medal's President and Chief Executive Officer, Vincent Lau, Senior Vice President and Chief Financial Officer,
Emma Murray: Please note for those not currently on the webcast as slide presentation accompanying this conference call is available in PDF format on the presentation's page of our website.
Emma Murray: Some of the comments on today's call may include forward-looking statements. Please refer to slide two from court and cautionary information and disclosures. It should be noted that all figures referred to on today's call are in US dollars. 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 first quarter results of 2025.
Randy Smallwood: Before we begin, I would like to take a moment to honor founding board member Peter Gillan, who passed away last week.
Randy Smallwood: As our longest serving director, Peter played a pivotal role in shaping Wheaton into the company that it is today, is unwavering integrity, teagic vision and deep commitment left a lasting impact on all of us.
Randy Smallwood: More than a respected leader, Peter was a trusted colleague and a very dear friend. On behalf of the Board of Directors, Management and Staff, we extend our heartfelt condolences to Peter's family and loved ones during this difficult time.
Speaker Change: I'd now like to turn back to our quarterly results, which mark a very strong start to the year.
Speaker Change: With several of our core assets exceeding production expectations, we deliver record quarterly revenue, adjusted net earnings, and operating cash flow.
Speaker Change: Looking ahead 2025 as shaping up to be a catalyst rich year with four development projects scheduled to come online over the course of this year, notably the Black Water Mine won by Artemis Gold, achieved its first gold and silver <expletive> January and just last week announced commercial production.
Speaker Change: Our corporate development team remains actively engaged in evaluating new opportunities and we continue to see a healthy appetite for streaming as a competitive source of capital for the mining industry.
Speaker Change: During the quarter, we were once again recognized amongst corporate nights 100 most sustainable corporations in the world for 2025, a multi-sector accolade that we are very proud of.
Speaker Change: As founders and architects of sustainable streaming, this accomplishment is reflective of our continuing commitment to operate responsibly in all facets of our business.
Speaker Change: This includes our work to help build healthy vibrant communities through purposeful investments wherever our partners stream-related operations are located
Speaker Change: Following the success of Wheaton's inaugural future of mining challenge, an initiative that seeks to support the mining industry to become more efficient while minimizing its environmental impact.
Speaker Change: I am pleased to announce the theme, the 2025-2026 initiative will focus on sustainable water management and exceptionally important component to any mining operation.
Speaker Change: The company will begin receiving expressions of interest next month, so please stay tuned for further details.
Speaker Change: And with that, I would now like to turn the call over to West Carson, our Vice President of Operations, you will provide more details on our operating results. West. Thanks, Randy. Good morning, everyone.
Speaker Change: Overall production in first quarter, being higher than expected, primarily driven by strong outperformance
Speaker Change: In the first quarter of 2025, Slowwood delivered over 71,300 ounces of attributable gold production, increase of approximately 16% compared to Q1 2024. This was primarily driven by hired throughput and grades.
Speaker Change: A strong overall performance, this quarter reflects the ongoing ramp up of this level three expansion and continued operational improvements as level one and then two.
Speaker Change: On March 4, 2025, Valley Basemales informed us that the second phase of the Slowwood 3 expansion had been completed Having achieved a sustained throughput capacity of over 35 million tons per animal for a 90 day period . . . . . . . . . .
Speaker Change: Following our review of the test results, Wheaton advanced the final expansion payment of $144 million to value base metals in early age.
Speaker Change: Consansia produced over 550,000 ounces of attributable silver and 4,900 ounces of attributable gold in Q1 of 2025, a decrease of approximately 13% and 65% respectively compared to Q1 of 2020 holder.
Speaker Change: The reduction to gold and silver production was expected, and do mainly to Lorde Raid's, as the orange material was mined from the constancy pit and reclaimed from the stockpile compared to the prior year.
Speaker Change: The pop-up conscious deposit, which contains relatively higher gold rates, is expected to be depleted by early 2025.
Randy Smallwood: As Randy stated, we were excited to see the Blackwater announced the first gold port and silver in the first quarter resulting in a trivial production of 1000 ounces of gold, 35,000 ounces of silver.
Randy Smallwood: Well, as recently on May 2nd, Artemis declared the commercial production had been achieved at the Blackwater Mine, delivery and excess of 90% of its plant tonics.
Randy Smallwood: Production is expected to increase throughout the year as the program continues to ramp up
Randy Smallwood: Production Outlook for 2025 remains unchanged, with total attributable production expected to fall between 600,000 and 670,000 gold equivalent ounces.
Randy Smallwood: Production is forecast to be consistent to slow go through the remainder of 2025, was slightly lower grades as per the mind plan,
Randy Smallwood: Production in Antimena is forecast to increase over the remains of the year due to expected higher silver grids caused by the ratio of copper sink or versus copper only or pink.
2024.
Randy Smallwood: Construction from Middle Park, Goose, and Platt Reef continues to be forecast for the second half of 2025, with construction at these assets proceeding in line with expectations.
Randy Smallwood: Looking ahead, we project annual production to grow at an industry leading rate of approximately 40% reaching 870,000 Geos by 2029.
Randy Smallwood: This growth will come from operating assets including antimina and block order with additional contributions from development projects that are currently under construction and or permitted.
Randy Smallwood: Such as Mino Park, Juice Plattery, Trimock, Coney, Phoenix, Eldomo, and Copper Road.
Randy Smallwood: Furthermore, Tribunal Production is forecast to average over 950,000 GEOs from 2030 to 2034, incorporating expected additional incremental production from these pre-development assets.
Randy Smallwood: That concludes the financial summary, and with that I'll turn the call back to Randy.
Randy Smallwood: Thank you Vincent.
Speaker Change: In summary, the first quarter was a very strong start for the year for Wheaton distinguished by several key highlights.
Speaker Change: We achieved record three months revenue earnings and cash flow and declared a <unk> 16, and a half cent quarterly dividend of six 5% increase from Q1 of 2024.
Speaker Change: Our pipeline of development projects was further derisked by construction advancements from multiple assets scheduled to come online within the year further supporting our impressive anticipated organic growth profile of over 40% by 2029.
Speaker Change: We continue to maintain low and predictable costs, which when coupled with our leverage to increasing commodity prices result in some of the highest margins in the entire precious metal space.
Speaker Change: Our balance sheet also remains strong providing ample capacity to add accretive high quality streams into our portfolio.
Speaker Change: And lastly, we take pride in being a leader amongst precious metal streamers in sustainability by supporting our partners and the communities in which we live and operate.
Speaker Change: So with that operator, I would like to open up this call for questions.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, we will now conduct a question and answer session.
Speaker Change: If you would like to ask a question. Please press Star then the number one on your telephone keypad.
Speaker Change: If you'd like to withdraw your question. Please press the pound key.
Speaker Change: There will be a brief pause while we compile the Q&A roster.
Speaker Change: Okay.
Speaker Change: Your first question is from Cosmos <unk> from CIBC. Please go ahead.
Speaker Change: Okay.
Speaker Change: Thanks.
Speaker Change: Randy and team and welcome Vinson.
Speaker Change: Congrats on a very strong or record earnings for Q1.
Speaker Change: Maybe my first question is on the.
Speaker Change: The sales versus production Vinson as you mentioned.
Speaker Change: <unk> was.
Speaker Change: It was 151000 ounces and sold was actually higher and as you kind of pointed out usually production is higher than sales.
Speaker Change: So.
Speaker Change: My question is is there any kind of read through into future quarters or is this really a reflection of what has happened in the past.
Speaker Change: So you kind of answered it by talking about P b and D being consistent and so I guess I'm trying to confirm should we just kind of model sales and production being fairly consistent on a go forward basis.
Speaker Change: Yeah.
Speaker Change: Yeah, so on a production basis.
Speaker Change: We're a bit backend loaded this year in terms of the production levels, so being at the higher end of the range that we're forecasting throughout the year, you would expect to pick up and the Pbms.
So you know about three months is what we're forecasting.
Speaker Change: So I think youre right, you're going to see production levels being at similar levels as the sales, but factoring in this <unk> movement.
Cosmos: Cosmos, if I can add.
Cosmos: We had a really good fourth quarter, but that that over production came from Salobo, which is copper concentrates and it's usually the copper concentrates that take longer to make it through to sales just because you've got a ship that concentrate overseas and run it through the whole smelting and then refining process. So.
Cosmos: If you look at it the P b and D and it shows what I read in the charts in the presentation, It's dominantly gold and most of our gold comes is in the form of copper concentrates from the from the mines themselves. So so the fact that we were so high in the fourth quarter in production at Salobo, We saw great production out of Salobo in the fourth quarter.
Cosmos: We always knew that was going to be a good boost to the sales side in the first quarter because of that concentrate takes that long to come through it. So.
Cosmos: It's always going to have it's always going to be biased more towards the gold production because most of our gold production does come from copper assets, and therefore that pushes us more towards the three months limit versus with Dore, which is where most of our silver is it's typically about two months for us to convert into sales.
Cosmos: That's right.
Randy Smallwood: So Randy maybe not be till welcome. Our next question here at Salobo you made the final payment on the expansion under $44 million on April four.
Cosmos: 2025, I can't read my writing in April 2025.
Cosmos: But that might not be the last payment I believe could be the potential to make additional payments of $5 one to $8 5 million.
Cosmos: Annually.
Cosmos: They do go with a high grade sort of mine plan any updates on potential.
Cosmos: Well, you didn't need to make that payment or any kind of color on the high grade mine plan.
Cosmos: Thanks, guys.
Cosmos: They are working on that high grade mine plan. It really has a higher throughput or sorry higher movement. They need from the mine is the mean kind of factor in that along with the higher copper grade from front of mine are consistently higher copper grade from the mine. So so mobile has been working towards that over the last several years.
Cosmos: Not imminent that we're going to hit those.
Cosmos: Those levels, though.
Cosmos: We continue to monitor it with value based metals, and we will continue to speak to him about it but I don't see that happening within the next year or so sir.
Cosmos: Uh-huh for sure.
Speaker Change: Wes or Randy I saw in your.
Speaker Change: Longer term.
Speaker Change: Growth profile, you have VAT included copper world.
Speaker Change: Could you maybe give us an update on copper world is that now considered core.
Speaker Change: Really permitted quote unquote.
Speaker Change: Cause you know I was reading up on your.
Speaker Change: <unk> once again, I guess, it says $50 million.
Speaker Change: It could be advantaged upon hub base receipt.
Speaker Change: Permitting and so I guess number one timing number two is it considered fully permitted and number three you know this is a.
Speaker Change: Negotiation that was completed many years ago with $230 million.
Speaker Change: Any kind of potential changes to that number.
Speaker Change: Yeah, No I took it said started negotiation it was could be it was a contract that was signed many many years ago and so it's a contract in place contracts, yeah, Yeah, yeah, and so and so it's a contract thats in place Yeah, Theres no money that gets advanced until until Hebei delivers not only all permits which they do have.
Speaker Change: But they also have to have proper financing in place.
Speaker Change: That satisfies us that they've got capacity to get the project built and they also have to commence construction and so there will be no payments from us until that happens I think in our current five year guidance, we might have it at the tail end of just the very tail end of the five year guidance and it's not significant from a production perspective in terms of getting to the 40% growth.
Speaker Change: It's probably five to six years out I'm hopeful that it'd be moves at a faster forward, it's an impressive project.
Speaker Change: The Rosemont.
Speaker Change: And then the copper world area itself, all sort of one one collective zone that are that were appreciative of you. All in terms of that exploration success that we were originally purchasing what 15 years ago has actually turned into the main resource that's going to be started off with the copper world, but it's.
Speaker Change: It's all part of the project going forward.
Speaker Change: A very important partner to us we're always trying to find ways to support our partners on a go forward basis.
Speaker Change: But we have to be reflective of value.
Speaker Change: So.
Speaker Change: I know there's been lots of talk in the marketplace about how that's going to move forward.
Speaker Change: We've got a contract in place and and we look forward to working with our beta move this forward but.
Speaker Change: And so.
Speaker Change: We're waiting I think Theyre focused currently right now is looking for a joint venture partner to try and offset some of the capital expenses.
Speaker Change: Going into this project and so so yeah.
Speaker Change: We look forward to helping them.
Randy Smallwood: So Randy I guess your advancement of any payment will not happen until a joint venture partnership with joint venture partners in place.
Speaker Change: Well.
Speaker Change: Are we would start I mean, that's if they have to go down that path if they choose not on that path. All they have to do is come up with a financial plan that we're satisfied with the financing plan the capacity need to fund it themselves. So whether they choose to do that with a joint venture partner or choose to find a way to do that internally within themselves and keep.
Speaker Change: Keep 100% ownership of the of the asset going forward. It is an impressive asset so I'm not sure that the logic behind that outside of sourcing capital to help get the project build but you know it's not contingent on them finding a joint venture partner is contingent on them, having a satisfactory financial plan, yes, exactly and so.
Speaker Change: Whatever way they choose to get there that's their choice.
Speaker Change: That's not contingent on us.
Speaker Change: Great and then maybe one last question switching gears, a little bit on cobalt not the biggest part of your portfolio, but I noticed that.
Speaker Change: The production has has increased.
Speaker Change: Kind of makes sense given that they're ramping up.
Speaker Change: So two parts of my question I guess number one.
Speaker Change: It's a 540000 pounds now in Q1 is that going to continue to increase number one and number two I noticed that shipping or sales was only about half of that point 540000 pounds and it's always lumpy. So again, how should we model that the shipment or sales which in turn.
Thanks very much.
Scott: Okay. Thanks, Scott.
Scott: They did have an exceptional first quarter there for the rest of the year, we're forecasting really slightly lower than that but kind of consistently and more of that kind of 460000 pound a quarter kind of range and really the sales are very lumpy on that one and its really just because of the shipments on that day. They go over to Europe.
You had paid kind of at that point when they go over there. So there is quite a lag in that and we will see those sales start to catch up over this quarter.
Scott: That production. So it is that they've had a great ramp up there over.
Scott: The last really 18 months, they did announced kind of they.
Scott: While you did earlier this year as well the undergrounds in and they are at full production on those so it's been a long project gotta get going into this the worst one in our portfolio. We've got affected by Covid for sure. So it's always great to see them up and running and getting that consistent high volume production out of there.
Speaker Change: Yeah, and I forget it was 2 million pounds and Adam is that what they are aiming for after the extension.
Speaker Change: Yes to our account.
Speaker Change: Okay.
Speaker Change: <unk>, yes.
Speaker Change: Yes for sure Yeah, Great 42 point times.
Randy West: Cool, Thanks, Randy West and Vincent Thanks for answering all my questions and have a good weekend.
Speaker Change: Thank you Cosmos.
Daniel Major: Your next question comes from Daniel Major from UBS. Please go ahead.
Speaker Change: Hi.
Speaker Change: Thanks, so much for the questions.
Speaker Change: So yes, it's a couple start with them <unk> has had some downtime this quarter.
Speaker Change: Can you provide any feedback you might have had from the joint venture.
Speaker Change: And potential impacts that might have on the profile.
Speaker Change: In the second quarter or indeed, the full year.
Speaker Change: Okay.
Speaker Change: Thanks, Danielle So we did have obviously a very unfortunate incident.
Speaker Change: This past one.
Speaker Change: Months ago, now so and really.
Speaker Change: It's one of those things that we have been in contact with with the partner oriented and it's very very unfortunate to see those types of things happen. We keep very very close eye on the safety record of all of our operations certainly they.
Speaker Change: They were down for about 36 hours.
Speaker Change: The incidents we don't expect it to affect production for the year at all we are actually heading down to site and a couple of weeks here. So we'll get a good idea about what things look like for the rest of the year after that but at this point don't expect any any change to our current forecast.
Speaker Change: Okay. Thanks, and then maybe just a follow up on <unk>.
Speaker Change: We're looking at in terms of the Delta.
Speaker Change: Into 2027 as you see it in terms of the mine plan, sorry, Tony Yes, 'twenty six 'twenty seven valid.
Speaker Change: To where we are today and to me it just specifically.
Speaker Change: We are seeing a fairly significant ramp up this year as they move back into those copper zinc zones, which have quite a bit higher silver in them than what we see in the last couple of years and we do expect that to continue through 'twenty six 'twenty seven as well.
Speaker Change: I move that primary crusher out at the bottom of the pit now and there was quite a bit of a high grade that was tied up with that.
Speaker Change: So they are moving into really a higher grade silver zones over the next couple of years, which is why you do see that ramp up in production.
Speaker Change: Yeah.
Speaker Change: Great. Thanks.
Speaker Change: And then.
Speaker Change: The next question.
Speaker Change: Some associated with the movements in the share price to 12, you put $12 million of share based compensation this quarter.
Speaker Change: How does the distribution through the year and if she has stayed the same has should we expect a similar run rate or how should we be modeling that line item.
Speaker Change: Yeah.
Speaker Change: $1 billion this quarter as well.
Speaker Change: Driven by the share price outperformance run rate on the PSC side be it around $3 million to $4 million going forward per quarter.
Speaker Change: $3 million to $4 million a quarter, okay. Thanks, and then.
Cecil: Cecil Thanks, and then just final question.
Speaker Change: I mean, you've got 1.1 billion on the balance sheet.
Speaker Change: And I guess, you're always looking for opportunities.
Speaker Change: Yes.
Speaker Change: Is there any.
Speaker Change: Skype if prices stay at this kind of level to look at interim distributions or changing the structure is.
Speaker Change: Of cash returns, where you just firmly in our current cash and look for deals.
Daniel Major: But maybe I'll take that question Daniel.
Speaker Change: Thanks for the question of I will say that.
Speaker Change: Given the number of opportunities that we have in the pipeline right now and it's definitely double digit and <unk>.
Speaker Change: We're seeing a lot of different development stage opportunities looking for funding, we're seeing higher commodity prices have prompted the sale of existing secondary royalties were seeing balance sheet repair opportunities and we're also seeing rationalization of assets by larger senior so there's so many opportunities right now for the potential expenditure of capital towards.
Speaker Change: Dreaming projects and some some larger royalty opportunity as well, but we are pretty comfortable with our existing structure.
Speaker Change: Yes, Daniel if I would just add I mean, this run up in gold prices and what we've seen is actually really starting to two.
Speaker Change: To firm up enough that people are starting to make commitments into building and so what we are seeing a lot of us gold streams on gold mines or silver streams of globe lines, there's lots of activity there I'd love to see a bit of strength in the copper space. Because there are some pretty promising copper projects out there that are kind of waiting for I think a bit better cost base to make decisions to go into construction, but but theres definitely.
Speaker Change: A lot of activity on the gold side so.
Speaker Change: And then just because we've got $1 billion.
Speaker Change: <unk> board to keep in mind, we've managed to spend almost $900 million a year for the last 10 years. So there are lots of opportunities and may be a little bumpy, maybe one year more than the other but we've never had issued deploying capital accretively.
Speaker Change: Great.
Speaker Change: Have a great weekend.
Speaker Change: Yeah.
Speaker Change: Thanks, Daniel Thank you.
Speaker Change: Okay.
Speaker Change: Your next question is from Cagny, Jackie Skolnick from Scotiabank. Please go ahead.
Jackie Skolnick: Hi, yes, good morning.
Speaker Change: Everybody and again my sympathies on for Peter.
Jackie Skolnick: Sad to see that Tanya.
Speaker Change: Thank you for that.
Speaker Change: I'm going to start a lot of them.
Speaker Change: My questions have been answered I'm, just going to follow up on just a few things that I just wanted confirming.
Speaker Change: And just on the distribution for the year I think on the last conference call. We talked about a 45 55 first half second half in terms of the production profile is that still the case.
Speaker Change: With all the startup what's the second part of the year.
Yeah. Thanks, Sam with the strong performance in Q1, we're actually looking at about kind of $47 53, now I would say if you kind of measure it that way.
Speaker Change: I would still back end loaded, but a little bit less so than <unk>.
Speaker Change: Okay, and obviously you know pending on what the prices do that obviously.
Justin: No not yet production by Justin.
Speaker Change: But for the rest of us at G O sale anyway, Yeah, I got it.
Speaker Change: And then that the Pea.
Speaker Change: D M D will just follow along with that 47 53.
Speaker Change: Yes, exactly yeah, Yeah right. We are we are blessed with the fact that a lot of the new mines that are starting up our producing dore.
Speaker Change: And so Uh huh.
Speaker Change: As that new production does come on it won't be as long no whenever it who might starts up you have to get systems in place et cetera. So there's probably going to be a bit of initial delays in terms of converting them to sales, but the.
Speaker Change: But yeah.
Speaker Change: There's not a lot of growth on the on the concentrate side in our portfolio over the next while it's mostly in the Dore side. So.
Speaker Change: Okay. That's good.
Speaker Change: Then if I could circle back to copper world.
Speaker Change: And I'm just looking for you know a financing partner can take on some of the Russ I just wanted to try and understand if you would increase your exposure further to this asset that you know more on a screen basis, rather than because you said you you know you'd help and help with that.
Speaker Change: Support them I, just wanted to make sure it wasn't like joint venture partner.
Speaker Change: But.
Speaker Change: Yeah, I definitely wouldn't be isn't yes, definitely wouldn't be as a joint venture partner, it's not in our business model to take that.
Speaker Change: That level of risk and that's one of the reasons why we are.
Speaker Change: As you know.
Speaker Change: They have value for the streams that we acquire is to is to gain that.
Speaker Change: That confidence for our shareholders. So.
Speaker Change: And so it definitely won't be as a joint venture partner, However, theres opportunities. The challenge one of the challenges is that the current stream is for 100% of the gold and the silver. So we already are getting 100% of the precious metals from that project.
Speaker Change: And but there are other ways to expand the relationship to provide support whether it's.
Speaker Change: <unk>.
Speaker Change: We've always said that we're.
Speaker Change: We're not chasing a copper, but we would take it as ancillary support to help them project go forward and so maybe that's an option.
Speaker Change: They've also got some pretty good gold production from other assets within their portfolio that that's also an option in terms of us.
Speaker Change: Being able to access and stream and so you know there's there's a there was a <unk>.
Speaker Change: Pretty wide diverse company, we've already got a good healthy stream with them at Constancia, then less healthy stream with them a triple seven.
Speaker Change: Of course, there's an operating anymore.
It underperformed for us in the past and so so it's been a long and healthy relationship.
Speaker Change: Uh huh.
Speaker Change: Looking forward to continuing to grow that relationship in a supportive role whichever way we can.
Speaker Change: They've got a good operating team they've got a good management team. We've got a good track record in terms of being projects like this on Constancia has been a huge success and.
Speaker Change: So where we're going to be there.
Speaker Change: Every way we can there their focus right now as I have stated publicly is sourcing a potential joint venture partner to help spread it out we're not sure that <unk> need to do that but.
Speaker Change: That's something that they have to answer for themselves and come forward. So we're going to do everything we can help them.
Okay.
Speaker Change: Thanks for the clarification, just didn't want to see anyone getting in as an operator.
Speaker Change: Yes.
Speaker Change: Yes, I've seen that movie before.
Speaker Change: The operating environment, sorry, the deal environment, if I can circle back and thanks, Haytham said some of the color.
Speaker Change: Just wanted to come back on a couple of things in that in the environment that youre seeing.
Speaker Change: Have you seen your deal the deal size increase at all.
Speaker Change: Yes.
Speaker Change: Yeah Okay.
Speaker Change: Yeah.
Speaker Change: There's been I mean.
Speaker Change: Theres still a lot of the smaller deals are still out there canyon, but we are seeing some of the larger deals and.
Speaker Change: It's I'd say the range is still from initially on the smaller deals was 1% to $3 50. There are a handful of larger deals that are $500 billion to $1 billion now and so there's lots of things we will consider them not keep in mind, though tenure not every opportunity out there is a wheaton opportunity, we're not going to do anything that sacrifices the integrity of our model.
Speaker Change: And we're very cautious to continue to add accretive growth. So just keep those things in mind, Tony I think it's just worth highlighting.
Speaker Change: Look at a two very very real examples here, just recently Artemis at Blackwater and how we've.
Speaker Change: Supported them through the startup.
Speaker Change: I think I think if you asked the team at at Artemis they'd be very happy with the Wheaton relationship in terms of how we've stepped in to sort of adjust anatomy to value to the stream at a timely basis for them is there a turn on the switches there and so so I think that example of being supportive through the startup processes.
Speaker Change: Caught a lot of People's eyes.
Speaker Change: And then I would go to the montage deal on Corning and the fact that that deal was structured where we supply the bulk of the capital in terms of getting that project up and running and they're going to turn the switch on that mine and have no project debt.
Speaker Change: And be producing 300000 ounces a year to their credit.
Speaker Change: And.
Speaker Change: Those two transactions have really.
Speaker Change: Caught the eye of a lot of of other developers in this space and so we're now starting to get a lot of.
Speaker Change: Larger sized opportunities, where they're saying, okay, well, let's let's look at our we can taking a larger role in terms of how we how we finance these projects into production on a go forward basis.
Speaker Change: We're always happy to invest into high margin high quality assets. So.
Speaker Change: They are out there.
Speaker Change: And what about Randy.
Speaker Change: Maybe the base metal companies you know given the volatility in some of those commodities.
Speaker Change: High gold price for them in terms of crystallizing some value on maybe some of their precious metal component to their asset has that increase you see in March.
Yeah, Theres a lot more discussion about it and I just haven't seen a lot of the base metal projects commenced into going into construction going forward. There I think they are waiting for a bit better copper price to and it's mostly in the copper space that were talking and we don't see a lot in the lead zinc space.
Speaker Change: But.
Speaker Change: On the copper space I, just want to see a bit stronger.
Speaker Change: We have lots of predictions for stronger copper prices, but unfortunately with some of the the globalization efforts around the world, It's having an impact on demand and therefore pricing in copper and we just haven't seen people, making the commitments in terms of going into into construction.
Speaker Change: I think they want to see a stronger market for copper before they make that decision. So that the talks are ongoing but they're nowhere near as advanced as what we're seeing in the in the precious metal space in the gold space, specifically, we will add one thing thing I'd say of the split of opportunities. We're looking at approximately half would be for fresh.
Precious metals as a byproduct from these poly metallic assets.
Speaker Change: Okay, and you said you were about to like 20 ish or so is that what I heard.
Speaker Change: We're somewhere around 15 to 17 in that range, but it changes every day.
Speaker Change: Sure.
Speaker Change: And then I guess the last one I would have to add is just ask is on corporate transaction hobby.
Speaker Change: How do you view that and your Max.
Speaker Change: Yeah, I would just say that as long as we've got the 15 to 20 assets in front of US looking at our preference is to go down that path.
Speaker Change: We've.
Speaker Change: He said that this business now for over 20 years, and I think a good old Wheaton stream has a lot of benefits a lot of strength in terms of how it's structured the security and stuff and as soon as you start looking at corporate transactions, what Youre doing is acquiring someone else's.
Speaker Change: Challenges.
Speaker Change: What we've seen is a lot of people will will give up weaknesses in terms of structure or or or or how the deal is.
Speaker Change: He has put together.
Speaker Change: To try and get their foot in the door and that means. It's just doesn't have the same strength, we've seen lots of evidence of that lately in terms of comp.
Speaker Change: Companies that are challenged because they are because they gave up structural weaknesses in other paying the penalty for that and so.
Speaker Change: We like good all week treatment that doesn't mean, we don't look at other streams, we have acquired.
Speaker Change: Portfolios of assets two years ago, we bought a bunch of stuff from Orion.
Speaker Change: A bunch of assets from Brian there were existing streams.
Speaker Change: They were <unk>.
Speaker Change: Accordingly, if need be.
Speaker Change: Had good structures are probably worth a bit more right and so so it is something that we're pretty sensitive to it.
Speaker Change: Our preference is to put our own deals in place and we still see a lot of appetite on that front I'll tell you I'll just add one thing we do keep our finger on the pulse. So so we're always modeling a lot of these junior companies are the ones that we think it will have.
Randy West: Or could could create value for us down the road, but as Randy said as long as we continue to be able to acquire assets at net asset value or less.
Speaker Change: <unk>, that's that's through will take.
Speaker Change: Okay, great. Thank you and congrats on the good start to the year.
Speaker Change: Yes.
Speaker Change: Okay. Thank you Tanya.
Speaker Change: Your next question is from Derick MA from TD Cowen. Please go ahead.
Speaker Change: Thank you very much picking up on your comments on holiday, we've talked in the past about levels of royalties, which potentially overburden any one individual lot debt. How do you think about will keep burden or leverage more holistically from a corporate level with your partners and is that something that concerns you.
Speaker Change: Please go ahead Sir.
Speaker Change: In terms of.
Speaker Change: From our perspective, Daniel I'm, sorry, Derek we've tried to not take too much of the economics of any specific asset a lot of the older contracts when some of the precious metals were.
Speaker Change: Let me touch less important.
Speaker Change: They did have some higher levels of precious metal streams, but if you see everything that we've done of late we try to stay well under a reasonable month, such that even if commodity prices dropped 2030, 40% we are.
Speaker Change: Our not overburdening the assets such that it has to shut down or make some significant changes. So we're very cautious as to what we do here in this environment.
Speaker Change: What is it reasonable amount of economics in terms of appointing moving lots of them.
Speaker Change: Optimally, we'd like to stay under 20, 25%.
Eric: Eric It's a you know every.
Speaker Change: Every project is different in terms of its own operating margins right. So that's one of the things that we always have to stay on top of its why Wes and the operations team, we keep such a close pulse to how our partners are doing right.
Speaker Change: We we really do put a focus on first and second quartile assets because thats why.
Speaker Change: <unk> delivers healthy margins not only for us but.
Speaker Change: I think most importantly for our operating partners, if our operating partners aren't healthy we're not and so so we're constantly.
Speaker Change: On the pulse of that.
Speaker Change: I'd say that one of the things that makes.
Speaker Change: We can a little bit unique in that front is that we do manage our portfolio and we don't just buy things and stick them on the shelf and wait them.
Speaker Change: There's a there's a life there is a time in mind when you when streams makes a lot of sense.
Speaker Change: A competitive source of capital to help on that but as the mine matures. It may get a little bit too much of a burden and we're not scared to.
Crystallized, we have in the past and guaranteed.
Speaker Change: Guarantee we will again in the future of where we look for ways to to.
Speaker Change: Back out of minds as they are getting a little bit more tired a little bit more expensive and keep make sure that we focus on keeping a nice tight.
Speaker Change: Clean profitable portfolio of assets in our company and I think that's a differentiating factor between us and our peers is that we really do focus on or not we're not here to just sort of take a scattergun lottery approach of just adding assets and trying to cover the world with it we want it.
Speaker Change: Tight concise.
Speaker Change: Profitable group of assets that we focus on it so we're constantly managing our existing portfolio not just adding to it if I'll add one more thing Derik I'll say, if you look at our contract structures. They are very thoughtful structure. So they typically start with higher streams, when they've got higher grades and as the greatest drop off the streams.
Drop off and that's all factored into the original valuation, it's all based on threshold levels being bad et cetera. So we.
Speaker Change: We ensure that we're not overburdening the asset throughout its existing life. So important.
If our partners arent profitable.
Speaker Change: Profitable so we need to do everything we can to stay on top of that and make sure that that.
Speaker Change: <unk> work that way and I really think thats the difference of a streaming partnership versus some of the traditional space in this in this business.
Speaker Change: I appreciate that and maybe that's a good segue to my next question, which is on amendments.
Speaker Change: The existing <unk>, yeah, appreciating every situation is different but broadly speaking what kind of considerations are as we didnt looking forward. When you start these negotiations with your partners.
Speaker Change: And when does it make sense for women.
Speaker Change: Sure.
Speaker Change: We're only looking to change straw contracts structurally when it makes sense, where you said and when does that makes sense. It usually makes sense towards the latter end when the mine is really mature the grades come off and it depends on what commodity price cycle here and so we're not out there looking to make amendments our partners typically come to us and say listen this is.
Speaker Change: What we're seeing we want to make an expansion or we want to continue to drill this project, but it doesn't make sense because of the projects taking too much of the economics, usually will come in we will look at ways to actually expand our our overall portfolio through other streams that other opportunities that they may have changed the areas of interest just get so where we give up value we always get value.
Speaker Change: Not just giving up amendments to two.
Speaker Change: To our shareholders detriment.
Speaker Change: Derek as well that's one of the reasons that we monitor very closely the health of all of our assets. So that we're aware of how these streams are doing in that and at what point and what things are actually negotiable so but.
Speaker Change: 8% really it is we need to get value back for any of those amendments that we do.
Speaker Change: Great. Thank you for that.
Speaker Change: Thanks Derek.
Speaker Change: Your next question is from Brian Macarthur from Raymond James. Please go ahead.
Brian Macarthur: Good morning, and thank you for taking my question I kind of want to go back to what Tanya was talking about when you talk about the 502 billion dollar deals now are they what I would call a.
Brian Macarthur: Global deals, where it's a $1 billion of streaming or are they more 500 of streams and say 300 of equity and other things.
Brian Macarthur: Just in general if you could maybe comment as you do more of these.
Brian Macarthur: Full funding packages, what sort of ratio as you look for.
Brian Macarthur: Or in the stream component of the deal on a full value basis, because obviously the streaming model is very unique and nice and tends to get a better multiple than maybe equity does if you're buying that in the deal.
Brian Chase: Sure I can answer the question, Brian Chase Megan.
Brian Chase: I'd say the streams are our core business. So when we're talking 500 to a $1 billion in streams or royalties that that's the primary contract that's not looking at revolvers or working capital facilities or equity or debt. That's just what we're looking at from a streaming perspective.
Brian Chase: There are opportunities, obviously, where we will come in and provide a big chunk of the overall funding, but we typically like to see some counterparty with some skin in the game and to answer. Your second question is there a ratio I would say at a if.
Brian Chase: If we're going to put up anything thats not a stream at least 80 plus percent of that value has to be a st.
Brian Chase: Yes.
Speaker Change: Great. Thanks, very much very clear.
Brian Chase: Hey, Brian.
Speaker Change: And with that thank you everyone for your time today Q1 set a strong foundation for what we expect will be another strong year as weakness portfolio of high quality assets sector, leading growth profile and commitment to sustainability provides our stakeholders with a solid outlook for the future in times of economic uncertainty gold is viewed as a reliable store valued in our Q1.
Speaker Change: Demonstrate why we believe Wheaton offers one of the best lower risk opportunities for investors seeking exposure to gold and precious metals. We look forward to speaking with you all again. Thank you.
Speaker Change: Yeah.
Ladies and gentlemen, this concludes your conference call for today, we thank you for participating and ask that you. Please disconnect your lines.