Wheaton Precious Metals (WPM) 7 May 212021 Q1 Earnings call transcript

Company Profile

Participants

Patrick Drouin	Senior Vice President of Investor Relations
Randy Smallwood	President and Chief Executive Officer
Gary Brown	Senior Vice President and Chief Financial Officer
Haytham Hodaly	Senior Vice President, Corporate Development
Tyler Langton	J.P. Morgan
Ralph Profiti	Eight Capital
Jackie Przybylowski	BMO Capital Markets
Cosmos Chiu	CIBC
Puneet Singh	Industrial Alliance
Richard Hatch	Berenberg
Matthew Murphy	Barclays

Call transcript

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Operator

Good morning, ladies and gentlemen. Thank you for standing by and welcome to Wheaton Precious Metals 2021 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. [Operator instructions] I would like to remind everyone that this conference call is being recorded on Friday May 07, 2021, at 11 a.m. Time. Eastern turn to now conference the will Mr. over I of Drouin, Senior Relations. President Vice Patrick Investor ahead. go Please

Patrick Drouin

is are as could Management's out ended forward-looking in review that Slide financial in be I that as to notes and all presentation in for Analysis It and Smallwood, regarding important presentation presentation currently accurate operator. Chief U.S. forward-looking Precious PDF forward-looking noted Corporate you, results anticipated available for commentary the contain you call. everyone to statements. direct by would may be call those and the Senior and referred Vice unless attention XX-F. this results not those and connection factors from in in our the contain thank ladies page Metals' Wheaton events should some will President, cautionary today's XX, statements such Gary your Officer; that and of with materially assurances the like for today's Metals in this dollars, notes Information Brown, Randy actual those slide on the in Haytham Chief Form, accompanying today There figures future as Senior on Executive Events joined President statements on XXXX, Thank I'd the note X I'm prove to morning, bring can format to Officer; the statements. differ call year risk no Discussion December on participating of Development. Good and Wheaton's conference well otherwise set webcast, call today's and of Annual the Please noted. and Vice Precious website. President Financial Wheaton Wheaton's to be gentlemen, and Hodaly, Form

In this its and/or include that as Precious wholly-owned applicable. subsidiaries or on Wheaton Metals call to Precious Metals reference Wheaton addition Wheaton Corp

our Smallwood, Executive to turn call Officer. to the like President I'd and over Randy Now, Chief

Randy Smallwood

Patrick, Wheaton’s and healthy morning, since quarterly and good last has I gentlemen. I call. to for quality assets and $XXX breaking generated operating ladies $XXX over quarter discuss Thank of XXXX, million first everyone of you, quarter announce XXXX. of revenue you am today keeping our hope that conference Thank results been safe pleased cash joining high us flow in portfolio of first record Wheaton's million. the over do to and of

resulted in third dividend QX Given the Wheaton's dividend a in strong increase to innovative to cash has quarterly XX% relative dividend row. policy, the marking XXXX, quarterly this increase flow a of

we announcing growth the previously In new execute to located our in in addition, continue on strategy, a Mexico located on Mine Santo the and Domingo they project on the Haytham re-partner activities announced Chile. stream later this closing Cozamin as Both pleased assets we Capstone, grow are very will a are to details company in more our call. these on with exceptional provide assets. by owned corporate development stream

of Two cobalt the organic Keno at of quarter. production growth announcing development with Bay. Vale on mine with Pampacancha operating to deposit that achieve Wheaton from transitioned Hill first are Voisey's profile or and mines to Alexco's track projects from into Constancia the our in Hudbay they from Vales quarter receiving in the Our advance silver continues the second

production Lastly, first let us long-term our ability introduce time. our confidence to in the deliver portfolio guidance continued for from growth year our organic to XX

who the to results. will on details will one- and Gary profile forecasts, and usual more more I would first Chief Brown, growth our call call, provide Vice provide on Financial like five-year our turn to our in Gary? Senior our to over but it addition President this In later details Officer,

Gary Brown

ounces first period with quarter company of the basis, quarter cobalt morning metal X, decrease as gold, produced of ounces million of quarter of with January the Voisey's this of from XX,XXX interests due precious and of XXX,XXX gold a X% to in production ounces cobalt. material grade equivalent offset in as ounces first relative and XXXX. that's produced processed of to being equivalent palladium, X,XXX mine on throughput and in by Salobo attributable represented company's to were delivered was prior that XXXX equivalent from production produced, good company X.X cobalt first gold maintenance during and equivalent million PBND ladies offset partially by XXXX to production pounds the year, production basis ounces Randy, virtually X.X any The the decrease the cobalt first of first gold the decrease silver, the gold On had includes QX you, comprised not Thank of volumes gentlemen. at QX entitled XXXX. stream. the lower but reportable in the some the the in a production a quarter lower representing to the or sales ounce Relative The unplanned prior Bay Voisey's being reported cobalt X,XXX periods as unchanged is of Bay

PBND of XX, over gold ounces ounces million, XXX,XXX of silver, quarters. PBND XXXX representing representing PBND the QX to and increasing due increased $XX in a approximately amount consistent the million equivalent million. amount million months exclude to XXXX, X.X prices, of first ounces this $XX XXXX. based revenue, XXXX balance preceding equivalent for gold value to $XXX Of performance to to to the increase to quarter that in lower March approximately commodity will the $XXX QX first Cash a PSUs. payable million $XX decrease the or gold the amounted attributable quarter relating due million relative XX% from gross is of XXXX, palladium, This costs payable estimate XX% of X% of expenses and was G&A $X margin stock to expenses, based share for four amounted As first to gold primarily continues XXXX, amounted XXX,XXX the of XX% expenses approximately options with with realized The for associated the G&A the average accrued Revenue production. to to XX% price. to units, of sales, company the X% by equivalent of non-stock driven which increase representing average quarter XXXX in PSUs cobalt,

first comparable declared on XXXX, the a in million interest X.XX%, shareholders $X.XX XXXX. XXXX, incurred first in resulting debt revolving amounting fully on an XX% an interest of dividend debt of has During to of to as effective with dividend of outstanding effective the Based quarter during XXXX, May the record or per only compared interest X.XX% discount XX, Board to rate in per the a quarter a to company's share the the repaid a to representing the per prior $XX share that a has participation increase company year, the XX% $XXX policy, facility plan, increasing QX dividends compared dividend of costs of its million at of of policy prior the XXXX, payable Under for in XXXX. a quarter under common to Net million flow $XXX,XXX per dividend compared X% company's prior in having or Operating cash Basic provides cents basis. $X.XX its share elected interest the to at prices. QX $XXX from rate quarter increase XX% of $X.XX increase, on from QX XXXX the million a $X outstanding on company increase an earnings increase $XXX in XX% share the of shareholders company's X% costs quarterly to increased offer quarter in compared amounted newly the the reinvestment first to year. $X.XX commodity and highlighting market. issued the share of third to the unique Board $X.XX their amount option consecutive to reinvested million earnings shares adjusted the of

stock XXst to by million cash During the shares, quarter cash QX the the Overall these $X financial $XXX the been at in with XXXX million relative revolving in to cash sale call repaid of from company summary. from million the of an on proceeds And corporate Brewery $XXX of million the and $XXX majestic decreased over generating That and options. of update will March I proceeds concludes and $X outstanding outflows facility, Creek outstanding million which the offset $X relative and stream net equivalents the cash to first partially resulting $XXX Cozamin of with invested royalty the the debt. that, had being on development. first Haytham million, XXXX, by exercise no hand million for

Haytham Hodaly

Capstone to excited economics Santo Thank all for Chile, I'm go today. had and on as the newest you, IOCG stream we our this you're on sure chance are as through located all you us project one. and hopefully on Gary, joining by in you've Domingo, now thank a

from we've slide, As ventured works the stream a exactly you attached best. see into and a acid, streaming on polymetallic when that's can gold

deposit a construction. the deposit ensures to to of precious was to taking the the our keeps metals be with that production life been million, as remainder XXX% which and XXX XXst number ounce base once paid a acquisition during XXXX. the project zero. payment XX two-thirds getting gold and to partner gold It's of April that's getting contributing permitted a at price company, able of evaluation be moving paid win-win within with rerating our out plant is a we're is upfront mind as Wheaton, total XX% after has which with an dropping fully threshold XX% that of to a metal a stream forward you're early delivered The base stream to a and certain on increases scenario. of the share As reduced also everything million in on It's assuming

long to to our reserves the potential asset low We in operating and falling for existing of throughput significant is gold costs the the see circuit, upside also actually high quartile This project increase our continue a with overall road. with which increased streaming first that class life contribute quality a would will cobalt portfolio. down

up while a a to like streaming precious from would have precious packages look size large we development financing bit valuation of packages say, been metal majority Primarily And mine, continue regardless streaming In competitive of the say opportunities streams. to with and balance opportunities works overview that range. precious a also give to are To they a the sheet effort Needless little look often there's on some and been said, current these as expansions, are and play amount million much streaming to revenues. I that in base the cost in lot of repair, the royalty we've a There for earlier made take The with a all just to type an on deposit to as by-product further we're few were tend from we're fix quality royalty, relative build these we or all options. optimistic but assets. busy. All evaluations. extent, these to in you a creatively of streams royalty a into over junior for but time days can our higher for scale to have in continuing non-precious also capital past, as of Thankfully, the focus where the to that fact their are can get focus focused areas early to the of flexibility we structure of addition, Randy. taking flows strong that landscape. falling, because I'd significant fit metal on high a just streaming do Thank way metals add ridiculous metals cash tend continue we considered $XXX everyone, these quite commodity not new none quality, the lesser to would come million perspectives is companies. to and into at opportunities streaming and $XXX opportunity to provide stage overpay and you, coming part metal I to this of highlights our packages, the of you quality funding because to note streaming I very other that in Lots streams that can on sense companies best. Wheaton the environment. of opportunities at prices

Randy Smallwood

Haytham. you, Thank

reiterate pleased guidance previously February. production our and We to long-term in are announced XXXX

production between of to amounting For and XXX,XXX production XXXX of Wheaton's equivalent being palladium, gold attributable produce million estimated to gold, ounces. million to cobalt ounces XX on-track approximately ounces XXX,XXX to total is ounces XX,XXX silver equivalent of of XXX,XXX and XXX,XXX to gold metals other XX.X XX,XXX to

rest to development we highlight a continues assets look growth, would watch it As our to XXXX. pipeline like toward few strong the deliver organic for to as I of

mine. of $XX mentioned land at X expansion produced was milestone last in of has silver is month Pampacancha announced first XXXX. on-track I our the of call physical of completion quarter, Vale the for for completed million open and at closed remains significant previously at they XXX% the user quarter X.X% and the the the in a Salobo, at that the for of As as the of Marmato we stream pit production commenced start-up XXXX. agreement gold advanced the has Gold's Aris Hudbayver Constancia. of the XX% Hudbayver April, from At end on beginning the achieved in deposit the initial second development expected first mine the and in final and payment the Salobo of the And first activities lastly, upfront reported half

dividend record strong expect stream a We by will quarter record results, with consecutive a revenue several second We achieved in include XXXX. of July which recorded from row. which of back increase our date record distinguished production was Xst the first quarterly to dividend, our Marmato catch-up highlights. this effective first declared the and In quarter a Wheaton in key from a summary, third

again stream of Chile, accretive working Capstone. project was to to commitment Domingo partner by Our the a growth our we with in the Santo are emphasized pleased announcement once new where located on be

by in world. in weighted look which always to for Wheaton for leading agencies to strived from expect cobalt and to with mine, Constancia, continues Bay forward which precious Vale's second lastly, production we received such remain published rating XXXX. our deliver honored one sustainable in metals, ample in be our sources this of to consider sector heavily we the sustainability to the Voisey's portfolio see to month. area this benefits scores. a which recognized and opportunity to journey be updating Wheaton annual inaugural we most were portfolio our Keno Voisey's market the of performance our an While Bay as from the believe the report, to be has sustainability growth, be And We of cobalt external later we Hill on our will assets continues organic here leader

to Operator, for lost Operator? would Operator? operator. questions. we're Just We So open ready like with Hello, call a that, operator. for to I up the moment. the questions. appear have connectivity with

hear for but is In And can to going so shareholders I'm well of just us, any I'm continue to want everyone – we're everyone believe not to for just because Wheaton in here. value closing, thank I so to different our if summarize dialing today. questions getting a delivering sure number reasons. else positioned not we

precious commodity and to result low having metal in increasing highest entire by margins space. the prices leverage coupled some Firstly, predictable with in of the which costs,

Patrick Drouin

do that to actually we to questions and few maybe answer. we coming email a there's go on hate I could, this ahead if via Randy, Sorry, can you. But

Randy Smallwood

Sounds good.

Patrick Drouin

technical difficulties with the Despite operator. the

one BMO. cobalt And the could please The bit again we from production as talk on were sales in Xs well. about below we asking is comes the quarter. perhaps production as Jackie cobalt a on first saw more And she at we can elaborate strong also they if

Randy Smallwood

Sure.

production on, whether worth metals going guide typically concentrate. inventory comes there two working doré assets, product we on most be months it it's as bit copper from to each of it's a of in precious a a stream new any depending towards or to to our And respect mines, with a So is three of whether always build.

are through now years operation. the is with vertically several Sudbury the It had Harbour, such assets and many, now it's mine, in integrated. receive. that that it's period one we've a Now, same that it integrated that the smelters only finished Long very cobalt. product vertically Voisey's finished is means that processed the where happens it's Bay the operation, we we the but Bay a many Voisey's is it's period longer now that not because much through have what is smelter a which process at for that's do product goes And is

to So to in worth four process. have our guidance about would of be that five inventory expect we working months

working of contract anything with Now, of structured as the is the January way Xst was that that to Vale progress the credit was in is Wheaton.

winter And just area. contract was inventory but that so, of with a in from the the that higher we also being working the system QX, winter normal, into this was acquiring and only but because than through a likely inventory stepped not it actual of production time, shipping in bit

a so, production. reported the means site all And is inventory much the it itself. And at that's we've in what higher working all, high

of we the fill up we over sales, it start. Now had stuff and inventory, in took of as end course, of sales to ownership this

own sales our own agency. have We warehouses and our

to continually of up And five But happen so, probably process. lower didn't overall – first sales inventory build production the to of in first and months with quarter. so inventory. sales respect much we Voisey's end we we have continually the had than sort to – of Bay, a about are that's until four worth our why the will And or that working near

Patrick Drouin

Barrick's well? whether to All the Penelope and Jalonen whether Michael successful as for so with entitled has that have this as material out to at to you drilling are to right, format. we asked not do going going far reached pit the so Lama, just go or us thoughts we're and on including thoughts

Randy Smallwood

the from of that of is area border. we the and side Yes, silver get XX% in the whatever of any Pascua produced

stream option to never our that is deliver keep be we and definitely this we've focus will money sounds eventually confident The the really original it are to around keep – reinforces wanted one production it and did will though we exploration recognized to regions other the like the core we as that had get that us Lama back but stream coming. even and with to But it. a felt so, to value, having Penelope from another, We is collapse that. to capacity chose it deposit This going form we metal asset deliver upside area. we're an from why further we And Barrick, the in see transaction, Pascua-Lama or potential.

Patrick Drouin

Pampacancha can that on to payments penalty we Randy, the Another due second in, if that any Hudbay, coming question as were as as on additional end coming far the at discussions as far the with be of color the provide quarter.

Randy Smallwood

look, Well, being a a itself streaming ultimately to us Constancia our way on very from Wheaton to long in has course, prided for And important partner Hudbay partner the is, Rosemont. XXX all agreements. and through of

protect we work the have will find solid And we provide only also our in have do our mechanisms own have, these shareholders Hudbay. work to delivered, we that I with – in some but payment not we we reason value discussions preserve, so, is to mean, the but measures to will way will the in these work place deliver but with we've with support that and place, value penalty them. value Hudbay. We're them that good preserve and a to to

in process. And that's discussion a so, that's

Patrick Drouin

more they we're issue time. and are you're currently? question questions on as the operator just ask Okay. this we next I'm have… going sorry, rolling in. one having. I The appreciate coming with We'll appreciate emails analysts in Is with technical coming on the stick line the I to, the us

Operator

I am here, Patrick.

Patrick Drouin

questions? start we Can queuing Okay. up the

Operator

Okay.

Patrick Drouin

there I in is queue. people that do the see enough

Operator

[Operator you, and ladies gentlemen. Thank Okay. Instructions]

Patrick Drouin

that. we think can skip I

We have already started.

Operator

okay. Okay,

question… first Your

Patrick Drouin

waiting is Tyler for... think I

Operator

from first Tyler Morgan. is Langton Your J.P. question from

Tyler Langton

for question. everybody. morning taking good my Yes, Thanks

Randy Smallwood

patience. Well, thanks, your Tyler. Thanks for

Tyler Langton

thoughts might had this ore [Indiscernible] Randy think decision just the sometime of might hopeful kind you would you're about the Vale that problem. in whether a half maybe be making closed, Yes. maybe they be there. the last stockpile No that any of to grade talked close that they updates I quarter or low first year,

Randy Smallwood

what mining Phase an forward portion with profile grade decisions feeding the the what final comes Yes. active do will choose stockpile mill, been It with? for talks Phase relates discussion. the in the in, haven't to They through they the yet. plan ore is And move X they this them. to of X made as We've versus any

a in copper the Vale sense scale of higher continuing we're which open in sense quite direction with and economic clear the there's lot to sense some economic every the the in in And should today's environment, work of to pits, operation strong see It's so, large and copper worldwide grade lot stockpiling moving materials. grade industry of products that especially go. low makes there's world. in it price forward It a in

two decision And That's so, continue that choose that for out we're right the first what we're on just does group. doing path waiting path. or choose with now hopeful that Vale a that can they're Again, of to final phases.

Tyler Langton

Okay.

helpful. And was question them more release, there lower be by Now, just in I the maintenance guess, routines. you then We in behind are I additional going impacted think forward. just largely the production just Salobo, that's changes mentioned guess on one some that I throughput. should

about think to how Just that?

Randy Smallwood

was bit they quarter a a reset a we go of it our partners always is of side they maintenance that year want for the and is It in of all to basically for. had fourth zero because on really strive safety strongly that couple Net a through something had striving last of incidents the we is an of to and support. what Vale objective that strongly, harm – exactly

again some harm. that And advantage the the opportunity what in be in full during is run had they quarter. net They're safely. still they there but The that, equipment really it are all had be – support so, of quarter. terms in with to definitely residual a – through impacts second to the has impact may again availability a to of the we're the zero but to the some go where better sure here And operations there into making they of at and done made, start progress be of is still definitely maintenance an bit the side have reset year. than They improved, some, this were of was first

Tyler Langton

Thanks for it That's Perfect. much. me. so

Randy Smallwood

Thank you.

Operator

Eight next comes the Your Ralph from of question Profiti from line Capital.

Randy Smallwood

morning, Good Ralph.

Ralph Profiti

Thanks across options questions. my seeing I'm for these buyback majority and taking Wheaton portfolio, the more part of operator. exposure term morning. mine. in happening I'm the would is vast on however, you looking maybe would say with that just that you're of transactions good you open a look wondering, the when I some of the that's given Haytham, more Hi, seeing life look corporate And the characteristic of the at my Randy the And And carry activities in market stream deals, Are you're a to deals? when types I guess lower development that those types at? of you threshold is investment you second those of higher optionality? question and potentially

Randy Smallwood

Haytham, I'll one. you answer that let

Haytham Hodaly

Sure, be at opportunity yes, we question, where past And are XX%. to And certain we really are least getting lot believe, our an are them. typical to for by acquisition return, typical well junior a control, is Randy. – for that's pretty in strong quite have question, streaming Buybacks buybacks we are and in do we're unless are opportunities. to tend your What well, to there returns. somewhere We see a they buybacks Ralph. in companies a the the seen going the transactions returns just Thanks our competitors. of that a that change looking answer seeing reasonable a event more for around control. potential buybacks of companies But these return change acquired. important for get appropriate offered of you've our I is above building without If that, we've sized some buyback, opposed for at pretty we're to our in that's

we in something these to We're only companies that to for deposit buybacks to do event the between on But looking mine of change Ralph. with of if XX% XX% So life and control, we'd junior be pushing opposed contracts these going of and effect. that. for something early we're again, were really these structures

Ralph Profiti

follow-up, a is point. then of about sort on permitting smaller going maybe talking the I alleviating sort a lands some have Fair And lands. on can enough. footprint Good of if federal Hudbay of non-federal just Rosemont, with by Yes.

if footprint million any payment, impact what the output certain Just was early wondering the and and based mean. have throughput of things? of contingent the the project changes, if that how And that indications of you sort $XXX could that on does a scale

Randy Smallwood

one, Yes, Ralph. that I'll take

It's actual operation off still lines much where will First an is have the be an mining deposit itself, so it itself, will along it impact. the so not the has impact where store disposals, [indiscernible] where have limited your you're you to you it do extra your stockpile of that. and terms do rock that's in an waste to going if And cost tailings.

the if operations, you're efficient same just we hate is make mean, always and you up operation we try so these benefit. go And All that. an like and to always costs going only can getting these should they as of a do forward, believer I I'm and things as drive is impact the

just perspective, as that along those sure all to sustainability from make And so, we as perspectives, sense lines efficiently we can. this from makes anything it any do

it an and grades in the high And in deposit on the stuff But are cut-off terms being basis, will those has they do costs best so, federal or so design extra impact have of obviously irrespective of of that successful hopeful very, I'm like able very not. to itself, that, lands margins. but terms deposit a itself

format very, And therefore, that to they've value always hasn't in be good, a the that and expect it we're but exploration was up now pleasant exploration a from perspective. success to has production in wouldn't for the so, kind all actually. funding the in attained, see will had construction, be long fact levels respect is of of this actual a likes it's for tests of that been such looking our there'll an starting contract contract tied that We've be a exploration significant – Nobody impact permitting standard – a some very to in – any might and impact I of just itself, – completion shouldn't been the success there potential where variability funding development strong have, because felt that a to even to it's say that addition process certain be With would – and time. explored area evidence of it contracts. exploration construction what we have we're at because I And potential. that be

Ralph Profiti

Yes, Thanks well, Got it, understood. Haytham. Randy and okay.

Randy Smallwood

Ralph. Thanks,

Operator

the of Markets. next comes Przybylowski question from from Capital line Jackie BMO Your

Jackie Przybylowski

very model, trying is a reported me cobalt right, serve to just the on And already. I rate? the give that's is much. back to Do ask from to would to think something to that going I'm an my Bay, can should fine tune state but run see Patrick QX On All you to thanks that you indicative idea go we a question this, be cobalt, just read wanted of steady because for you cobalt production sorry just where forward? expect that Voisey's that follow-up

Randy Smallwood

terms actually inventory because mainly have, up started No, it's to up and get in light a we build sales. and we having run rate, for our that an steady agreement warehousing our in of had own first place state systems the build agency with

we This see we've until the our So look you production guidance to run five inventory. is the mean, near working the of require four these given – of terms sales typically things overall on our in basis. year again, of to worth occur first and end a production per is, going at you I months didn't When the I way mean, actually first quarter. about

Voisey's what a sum are working we've a a a have sales. these we've what production wind Bay. we'll in our had materials, at a that inventory bit take time. mainly probably going had to less sell because from little annual some bit And it is if more what you half lump variability than – than that's up some having number, to than just So of cobalt We of of tend block other volatility or in basis

And it on is happens an have so end or depending impact. bit before quarter to going quarter after whether end of a

volatility course But estimated you of working of quarterly keep production, aside set Bay. eyes four our quarter some should production sales annual should a have sorry production I will numbers. think of inventory. your our in of we that a a about then five – the as be be numbers to would share terms of about So I about of if bit, our of annual sort months worth Voisey's out And that am I these blur annual

Gary Brown

there. entitled that Yes, color that sitting was cobalt had were quarter from was Voisey's Jackie, sold inventory the we in first I'll to Xst Bay. And some XXXX. that we're additional of January but processed, not add as just entitled been maybe anything This to

had So inventory plus Xst. of probably at been was in production January four months that that sitting there is

at estimated that So, quarter. run to is our pounds XXX,XXX production attributable us is a about rate

Jackie Przybylowski

Yes.

Okay. That's that's I was what modeling. I what been really had –

that So us, you surprised positive reported on the number production I guess, the side.

really So Thanks. were on I that's Gary. Thanks, wondering if just production, but we helpful. way low was

Gary Brown

Yes.

Jackie Przybylowski

if I And maybe ask can just other question. one

Gary Brown

Of yes. course

Jackie Przybylowski

of forward from kind worked you of bit least expecting going like kind stronger my changed see a it out for in expectation on on from little I consensus QX net-net, than but gold little and the strengthen to well reverse ratio you results Your numbers at a haven't what numbers looks and it lighter like guidance. can here? and I being silver. gold your seemed was Are that still to will it And noticed as

Gary Brown

of still very bit they course, process gold important Salobo there is as taking of part Well, is and is a Salobo should. Vale though of seriously safety reset production. that very a gold in a our that's there,

in quarter, unlikely climb operating everyone production new And embraced rates. are the certain as of run first normal be to and safety so and we can't to so got amount we'll fully only these returns back The measures process to and the more tons. rate back with lower a – regular that's up made-up, capacity mills the

I gain how very our when an made we probably is, done quarter, I have benefit of us. see asset of elsewhere have as that we has that well offset. that some the one we'll and production fortunately portfolio think the not to gold diversified mean, for had Penasquito deliver it's is first it missed the week up side on in And but silver so don't we step-up

Jackie Przybylowski

Absolutely. much. Thanks That's it for me. very

Gary Brown

Jackie. you, Thank

Operator

Cosmos from next from Your comes Chiu CIBC. question

Cosmos Chiu

is and costs was per my with technological $X.XX I But first noticed Alright, made question cash we my ounce questions in Gary, Randy, for Thanks Hi. maybe QX Haytham Patrick that on it now. which and cost. $X.XX silver that higher than about difficulties. others Could due XXXX? Alexco quarter last maybe was for per the category, a to remainder of that? bit what this you should expect Is more in part ounce. we talk that’s

Randy Smallwood

want Well it? take to Gary, you

Gary Brown

from mean And I cash Yes. primary mixture. driver that's a cash certainly costs. a just the cost perspective of increase silver the it's in

a You've percentage got spot. like we're of streams also paying where Antamina,

our so prices – So production payment. as does does so spot increase,

Randy Smallwood

also and so into levels, production would where and across, also that some the combination a of contracts, other we some higher feed above. and incentives production we for of higher of those for all payments combination have and contracts have It's do it's production

Cosmos Chiu

kind Domingo, question or should to you this impact? situation up then it. make who at Got of on night Chile, I comment a the And isn't, here monitoring potential they're talking keeping you're Santo about is look quick we guess it? but higher in Would like the the on taxes, Haytham hopefully at how you maybe a

Randy Smallwood

still first, I'll in the toss this, all But do handle on word and there first if have we be one communities We the you like to likes. a add governments the profitable want. it's the of that that assets on impacts you and Yes. Haytham, focus stakeholders, for and reasons can focus and including capacity quartile. in

aspect And incredibly so of an that is investment. important our

programs at curtail said government Santo on revenues first really I raise fund isn't all curve. of The having the Wheaton it. producer. the seeing tax you respective being focusing – in what implement to and cost try we half world. try That something differentiate this think to to was terms Domingo are trying and world the it's around here alluded of that that bottom the around we to a as there they're ourselves

the this country to going investments perhaps is in more increase And other perspective. are like you again and some the so surprising Chile of or concerned – so into the seeing. it's these even versus And have make on get countries I terms in quite from Ecuador other Columbia mean, difference. something or countries used scale impact Peru we're that that of that do an we to and to attractive are going

and all do that having to still handle of So good stakeholders. really importance we operating But it's this reinforces can strong something that monitor. the again, it stuff value deliver positive margins you so like

So Haytham, you anything to that? to add want

Haytham Hodaly

No.

the nail hit head on right You the there, Randy.

I two think the the were the as is payback would Randy less time on in economics only of for is, this terms cost at on thing said I curtail asset, curtail years. a than say cost based this that

a is It's iron a this project. copper fully gold and phenomenal oxide So permanent project. ore, iron copper

If in of this look with agreement entered [indiscernible]. doing terms you at what to cost they've overall into they're reduce costs,

savings they any ForEx, So option, cost agreement rail on replace an are on pipeline iron so better. only this getting so really is project to the different with that working that

So get bit own tell stands of it’s unfortunate but I on project you tax, their own. its that everyone extra is can to trying this

Cosmos Chiu

really of course. Of diversifying the gold, to finding harder, to here, as is that warranty that Is versus it's deposits. much assets. in producers, case? one business, And silver silver silver you a make producers from heard it lot same question silver are are gold and the as acquisitions on we've or acquisitions Maybe terms acquiring last in not operators the we've and silver harder make case of seen, streaming

Randy Smallwood

on or a than silver late. from definitely they zinc focused even zinc seen a into of the bias, can extent copper. the silver of does sorry copper, nickel a And to lot to we of be that a We investment gold common are kickoff. big tends a we mean, more by-product – have by-product. focused focus there's haven't seen I gold tends more they on it lead, are still And operations. by-product to Well, the haven't space on

seeing are into companies, that does seems focused make precious to don't, eventually the silver the and of kind grow they also It in one to it. progression have can't find because enough agree, is still And factors and growth me, in not of that a silver to just I the is, it where of space we more there's opportunities space. So, become coming gold that just attractive are highlights metals than silver. companies fact lot a so stay natural silver we the they be it

definitely bias silver Pascua-Lama, is gold is we yes, very bias, optionality the our portfolio, silver dominant dominant that our obviously production, I so in will we have a production. And silver heavily in highlight development corporate Rosemont are portfolio. Navidad towards

the as probably will focused. to few deliver that good that so next opportunities years other – the gold continue And growth to it's over will optionality we some us strong more be silver add tend

Cosmos Chiu

good I Those weekend. team. Thanks are Great. questions and the a Have Randy, all again, have.

Randy Smallwood

you, Thank Cosmos.

Operator

Your from Singh next from Puneet question comes Industrial Alliance.

Puneet Singh

a it challenges. you realized dealing call; little in Great, the on technical marketing I on bit about progressing? side these for give how the good premium it the guys. a Thanks first you us the and did morning of update with it that's Can look last conference talked like cobalt quarter price. got on an

Gary Brown

Sure.

cobalt So at produced Voisey’s all Bay, course, Long of the from there's Harbour.

familiar the now an marketing into is, got We've or that agency about good, way very all representative so a entered of this product. course, it markets, six five the product with prominence the they've for down. it's The representative been years. So clear agreement, have we last

clientele goes understands the product understands to a is And and market. for. best that its that out what a so, used preferred There's it product

And the as a a in curve actions bit own a us there's be us. – now. we've and a it's going – portfolio to and a of This our our learning the sense so, is able of learning’s new – product to advantage that previous, bit of a for this for of so been into take sort of we some wrap own into of is

to as asset and like an the we're partner trying it are out behind of the We portfolio. production belief even Voisey’s Vale product in find Voisey’s as with value And deliver how we with the given ways product and like to a from Bay, a into cobalt can. should product our this Again, more studying Bay space especially is out happy a preferred stand really there. our is bringing provenance that important this anything quality for

Puneet Singh

Okay, great. Thank you.

Operator

Berenberg. comes from from Richard Your next question Hatch

Richard Hatch

morning team. time. much your Good And for so and Randy thanks

that it kind just small, kind as we any or getting of case to of, bones appreciate we I of just how give you one, and see extra the us think quick on pretty the Pampacancha, should wait deliveries or of how a statement about the sort with to to those it. can have there? Just [ph] but go kind discussions it's is of could

Randy Smallwood

by I Pampacancha be Sorry, of expected second is here this producing mean, quarter to year. in the

I might payments, the penalty referencing you be think sorry.

Richard Hatch

exactly Yes, yes.

exactly That's if it. wasn't Sorry clear it yet.

Randy Smallwood

Yes.

to with – their a waiver of having sort challenges and a them. of the given the did trying finally because was the to challenges pandemic successful, – in the restrictions – bit forward through it And of six-month forward. can't a way been them deadlines we in of color, I terms all but They move some work we're Hudbay of expected. than So, did especially community and We support but in was in the extended any that pandemic. trying and down work bit is pandemic it on the more the give facing, discussions the there, have their later it still give with

a partner intend strong as They're can of the terms recognizes decisions. with supportive a we value be good, theirs. ours. them build partner partner that been actually in there Hudbay; do of what streaming a their to and of hasn't any of company helping deliver they're But So final we

higher that is gets And metal into find it than with any of recoveries. rates we are Pampacancha other the than there interesting. in go payable because pit, precious can't it to the Constancia so, the way, There's is just higher fact them the the for main better grades, discussions detail other for I zone

additional opportunities work and together. all to some And area. opportunities. acquired sorts discuss They also in lots there's of of so There's the land

value those the what situation. value with provide our And Our a finalize be. is win-win final to discussions, a is to no up going there until it's that just know we make but their sure to find detail more is to don't a to the because we always that number for come only preserves also delivers shareholders, and intent shareholders solution not as way

Richard Hatch

mean, I on we Understood. Yes, about just – then follow-up? dividends. I just this no can you that. talked one just worries. on And for quarter, Thank ask last

First sold Majestic your down shares. You

I cash. the half with move. to sheet, placed, commodity is due is it nature You've bank, the of the a got kind thought rising price prices of million net another that your commodity appreciate the $XXX moves where's way policy the that policy the just dividend payment the completely process in rising a balance or then dividend or and I change and raising But guys? net that dividend way on there, is we it kind pushing natural and view plays of cash that out business still there any other wait how of of consider of steady even case it a second it, it higher. to the of the and year, you kind is mean, the is as see development sort

Randy Smallwood

still as of year, steady Well, go. you this end it'll the before be

projects number into drip a construction these into we're have where actually as of entered a construction. feeding into contracts go We

of we a a expand of grow. how than capital take value a those up a There's versus woken focused internal growth copper funding into will the can't delivers being do deliver value project's a long and slumber prices doing. because highlight they're would And base And much amount will asset really from metal now lot development metal always stream is, build he share what so he lot a for metal that the in you're we in sort has space. companies' to purchasing those nickel say we of on And revenue going his front. return. in are base world on then and There's interest that slumber described as looking valued Haytham of higher out they and rate the team corporate a earlier door. of when there they're and incredibly always interest the contribute the or prices investing doing right we're I precious the of away portfolios. the improve busy now what in that And some to cash that metals base be on how And is industry I – really

think share I Cozamin announced – just back going we It's these just such December. best provide once performance Capstone positive. that a is deal the equity we quite to it's saw And it projects the really in forward. And way for so it's strongly in financing

a accretive continue best call of see so consideration to up see put whether positive we development get chest, would the it the expect I've and the XX% the we'll whether corporate pretty next dividend any money or but vault in, we up dividend set opportunity now I as So, spending in job into of at We'll fast front. acquisitions money what but of bit haven't and Haytham, a big flow or to balance, that a challenged war want in significant build it stays to goes. whatever. or getting coming the will that world terms But from good our – ground. it we're as whether the objective and of doing primary big. back XX% sort we is cash in anything well I really as investments, he's then it's if do the still far stepping serious that to we that Obviously, made on a is looking right climbs to don't ground for what year, we'll to of some ounces the too see. cash be XX% of

Gary Brown

growth to that, have add ignoring organic can evaluating just Haytham team our Richard, right we now. what I seeded And are and if profile really

Rosemont Santo expansion. the project, the development at now Marmato, Domingo got So, Salobo we've zone deep we've the got

that, about And completed due with profile so the payments or when got associated of start we've that come payment get forward. $X.X those at look you if billion either projects moving

take allocation making when we capital all that account always into So, decisions.

Richard Hatch

very a Cheers. good clear. Thanks, congrats Very, and Thanks, very once quarter helpful on again. Gary. And Randy.

Randy Smallwood

Richard. Thanks

Patrick Drouin

One last question, please.

Operator

the of from Matthew Your comes next Murphy Barclays. from line question

Matthew Murphy

guidance withdraw tried include horse on a I'm just did worked you the here the Hi, inherited the beat Does from I to you before it, material cobalt, process checking not the that but to just put dead since guidance. in out pre-XXXX? that

Randy Smallwood

that it. we admit I will underestimated

going was – I to We be but much. that we think it didn't, some expected

Matthew Murphy

Okay.

might So be… it

Randy Smallwood

towards, looks it production good cobalt biased this Definitely for year.

Matthew Murphy

lot. a Thanks Okay.

Randy Smallwood

some some in forms have Well, in of technology terms multiple your we of least and here, dialing questions and that able side. in difficulties, thanks the at nice get were to patients email. from kind for on of technical It's we that everyone of

just to of to I – entire and our we to very So reasons, commodity want prices different are low some the unpredictable to strong space. number of costs, that quarter. continue value it's We delivering good in look, shareholders, precious believe increasing positioned a to margins leveraged metal well highest the

Good Our long life, We very portfolio our strength that a The to highest we policy, will long value very, time. of the we is assets the XX-year dividend unique quality deliver our as in flows. guidance some low cash believe for out. strength world. put cost enforced with mines of our

with else our the something partners all on these is important going that. and strength to incredibly sustainability us. strength to going communities, a the see We prices continued a deliver that basis everyone for on continued see especially support the commodity and So efforts. we as that's growth we're the benefits dividend make that organic we there, see including And including product we as providing try for partnership gets for continual We're best work governments, side. the including from combined sure the stakeholders, can to

just And right to the thing so do. it's

in to patience everyone fingers speaking very do through the sometime hopefully And with technical. again. your soon of working of again so face-to-face, And crossed. you soon, for I you terms with that, look Thanks thank forward all

Operator

This disconnect you your concludes this conference for Thank call Please for participating. today. line.

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