WPM - Earnings call transcript Q4 2021 | Wheaton Precious Metals Corp.

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2021 Fourth Quarter and Year-End Results Conference Call. Note that all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator to on that at Friday, Eastern like is XX conference being Time. recorded March remind would this everyone call AM I XX, XXXX the would over to I turn And to like Mr. conference President Vice and Senior Drouin, of Patrick Investors Sustainability Relations. ahead, go Please, sir.

Patrick Drouin

morning, slide Metals operator. Corporate gentlemen Development; for Financial and Executive Wes Hodaly, on Senior Officer; Gary available Vice President, President in Operations. accompanying review and Good Wheaton for forward-looking the website. It should to by to that Randy statements. Haytham Vice which and joined President I in Brown, Chief to call. Chief I'm Thank today you Vice figures President note Smallwood, participating otherwise the that some presentation that Mining all dollars, direct is those PDF and of ladies Presentations Metals to to in cautionary noted today's on the unless in conference forward-looking slide you, two thank statements, Senior Carson, currently referred contain today's commentary Wheaton of important call US presentation, and this webcast, everyone Please Precious page call your Precious bring noted. call the Officer; not on may regarding and of be are attention like notes I'd like of the today's format would contains the

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

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

Randy Smallwood

and our for another in XXX,XXX previously above two cash underlying performance Wheaton’s our joining dividend total In quality the of of morning, quarter XXXX. XXXX, ladies record the of XX% good us discuss resulted ounces, quarterly Project. a of From gentlemen. done, year. for fourth and quarter, year-end to of the to we in on financial the Gary Blackwater fourth diversified This was assets continued right the as three us XXXX. announced quarter had weren't our This slightly portfolio, driven out record reflects Wheaton, continue revenue, flow increase over a in Artemis will earnings, year results to ounces to solid today Project was another here In of we by And strong XXX,XXX of corporate close strength produced all Patrick, you fourth equivalent equivalent quarter, mid-point and strategy, Thank perspective, on shortly. gold we the XXXX new high Wheaton fourth discuss the you, relative development and annual resulting XXXX. a quarter Thank gold giving quarter has guidance. Marathon for growth Mining's solid Generation as XXXX. a execute announcing to Gold’s momentum Canada, streams the located and and into

of has the longer-term & growth announced We one added medium since Gold best-in-class Project. have brought eight Wheaton these Including Adventus year, already additional already immediate XX two at assets. portfolio months, Mining's the streams as the Sabina past well Goose beginning and which Curipamba project, Silver’s of production, the to projects, new in as and have streams our other on

proven With a our and XX% of with in equivalent XX% the mines, mineral gold reserves basis, these a by at addition existing of by some grew coupled success streams, increase on alone. exploration gold reserves recent new driven probable overall Wheaton’s

into base production expanded We the will five XX translate about how growth this to next over years. excited are

those years. years the ounces over gold average close With the year. equivalent of Specifically, next in we of now gold to some million to production forecast annual ounces very XXX,XXX getting XX X production equivalent

I and metals leadership we are would year, Wheaton’s number MSCI leading demonstrated to Financial precious our ratings be provide true, with scores Vice more a Gary. last including met following update from by AA the Officer, to Lastly, and a turn in to Senior that rating rating ESG late continues and now pleased who sector one details Gary call like will President on Chief Sustainalytics. Brown, results. over our to announce

Gary Brown

resulting due quarter and of and equivalent to Randy ounces quarter XX,XXX suspension of company's Relative partially relative Salobo from you, a production basis, comprised belt with a volumes equivalent the lower a good On production X.X to gentlemen. cobalt. million of of equivalent the gold in Thank year, and to were precious interests the with lower of of gold gold X,XXX morning, ounces higher ounces produced of production ounces represented XX XXX,XXX ladies metal at The pounds offset gold, coupled fire improved several conveyor by X% XXXX. XXX,XXX grades at X% palladium an XXXX days mines. fourth decrease in prior operations this sales of QX, fourth silver, being of

to relative delivered. result As changes produced of ounces not a but

As XXXX, ounces gold PBND. approximately were of XX, December in equivalent XXX,XXX payable

associated ounces addition ounces, attributable for the XXXX, in to four balance In of combined months million, ounces increase XXXX. to is XXXX approximately pounds Revenue approximately XXX,XXX cobalt the higher figure decrease to the primarily representing the in $XXX quarter gold Constancia, X% the being or amounted equivalent stream X,XXX in inventory X.X of Salobo cobalt XX,XXX over gold commencement to of equivalent Bay the of cobalt ounces a payable Voisey's with attributable and quarters. than representing preceding fourth QX production. PBND inventory the The increase to of XXX,XXX relative gold approximately PBND amounting level inventory XXX,XXX of of is This by to equivalent to in with to average average X% partially and sales commodity gold equivalent XX% $XX prices, equivalent fourth of decrease quarter cobalt. year. the share the relative $XXX performance quarter realized gold gross G&A amounted accrued by performance. price, the fourth quarter and of was of XXXX million X% comparable the decreased due primarily to an higher share X% in representing price Of strong in from units palladium QX for with XXXX, million a due revenue, to offset gold of of volumes. PSUs silver, this $X the XX% to or decrease margin reflective sales, costs Driven X% attributable the prior to expenses company's increase million primarily higher Cash XXXX, based

items, XXXX. in earnings flow Voisey's compared million to amounted to year. And to During in earnings impairment compared March the net $XXX impairment sustained the to fourth a quarter other has Plan QX the price $X.XX decrease amounted company's basis. to decrease related the to share shareholders or million common dividend million share Board million their payable $X.XX the $XXX or increase of operating QX the of the the cobalt XXth, XX% quarter, earnings in to XXXX And reinvested discount $X.XX shareholders the policy, commodity company's million Including shares the Dividend compared XXXX. Neutralizing newly in resulted of under cobalt reversal, issued for in the per X% to with $XXX option XXXX of offer to to prior in per market. Board of the impairment $XXX DRIP, level, floor prior number stream. reversal a $XXX having $X.XX a compared attributable at record on adjusted declared per elected has prices. in amounted reversal the Based with Bay in representing to minor of a XXXX the for million quarter per a $X.XX $X.XX for decreased on share share X% adjusted to per XXXX, being net Basic Reinvestment year, the the cash dividends on the dividend the lower or dividend $XXX together of with share an fourth of of share the a setting company $XXX to million

disbursed company the representing billion ever dividends, and in of total To-date fourth $XX XX% the the $X.X million now raised in than has the dividends, by million quarter investors returned $XX cash, During more equity almost program. company. to the $XX million through XXXX, of DRIP under company the

ore cash by outflows the cash sale $XX to Overall, million. in million amounted upfront mined were Gold, long-term processed cash Constancio as the of of amount proceeds $X million. PMPA. of the for December the XXst, offset PMPA, from invested $XXX as $XXX partially of additional $XXX net by in These XXXX, company million and and than equivalents payment made the of of to XXXX, deposit equity XXst outflows the resulting investments December more Additionally, tonnes million cash QX in from we Blackwater and X an million relative Hudbay Pampacancha

increase silver, for accrued XX%. margin differences decrease with XXXX, relative $X amounted realized For commodity G&A million, XXXX ounces, associated in this X% a million company's average the exceeding XXXX expenses the for in of of the in $XX of gross primarily to costs rose decrease PSUs. December result record a with to increase to to XX% expenses cobalt. $X.X was Of an guidance. and coming original basis, of which XX% from representing representing lower share attributable equivalent restricted XXst, XX% performance amounted XXX,XXX year the palladium, options, mid-point a associated X% in exclude the of production amounted million, and billion, Revenue stock the G&A units, XXXX, of a On at to company revenue, value XXXX share Non-stock-based $XX costs amounted ended the XXXX, and the guidance. the units, with end company. being in to gold gold, XX% leading equivalent to by prices gold

primarily XXXX commodity Cash XX% that company increased earnings compared with COVID-XX record of to to amounted restrictions share with increase flow the into XXXX, translated operations insurance This to million, to travel-related G&A per costs XXXX operating $X.XX, amounted from the compared XXXX. of For as being in to for arising $XX XX% flow $XXX XXXX. due non-stock-based compared eliminated. costs, in XXXX to and from prices. $X.XX million, increased adjusted $X.XX $XX to in for in to XXXX, a Basic to cash are as share higher primarily the company an expenses attributable will $X.XX the combined million the per increases from increase estimates

combined the turn that, precious the relative to the facility very The its same sustain fueling company the by call time upfront and repaying flows commitments purchase cash dispersed During outstanding undrawn $XXX facility. metals under received agreements. to million the investments, made additional operating capacity while consummate the We at funding credit long-term in in policy, from satisfy growth. XXXX, accretive million $XXX the with And the by $XXX future debt and dividend revolving Haytham. flexibility strong its I with to concludes summary. positions financial company That well the over credit forecast of disposal having $X were billion million payments, the PAMPA’s million to provided eliminated payments dividend was $XXX revolving

Haytham Hodaly

third-party. announced a ask their and all say recently the why process. understand and Gary, I you transactions consummated to that we noticed long announced quarter in Thanks, us that, announcing about year. streaming are And building an been all many is analysts it enhance were further counterparties that, of the pursue what of a processes, additional value process. the was thorough Furthermore, technical we've providing and win-win before in can independent very on need. partner XX the launch more these need had social earlier upfront proposals them processes? these highly do two point our opportunities, a partnerships, of payments. three that technical add although in throughout stream subsequently as pressing tried you've to us up mining after a all our a undertaking to Wheaton By also the relationships past we've continue of built two to growth joining bringing had being what diligence competitors and transaction. is the to for we them and reinforce to want We've what selective when the we've now, deals come throughout add But these their were thank successful it, and has is we and they process with can help year, and We very There an we decided it's opportunities they structures good treating forward over been a where busy value a can all projects they portfolio. license, as cut We've Wheaton transactions, medium-term years industry whole We with strong to their year profile. concerns been question. lot reputation by acquisitions It's haven't the create the our a first listened fourth can competitive potential And investors as test say, ourselves in pride which for by the today. last to value what to to even to and we to we've there's to check this Wheaton reviewed quarter they help the for help counterparties advance support to and community when due team. they project, flexibility our streams

record the are a out XX when pit life-of-mine believe a in the Blackwater on -- minutes the from having these on an already silver four Blackwater to cost new some to of our on Artemis We total, overview of be the few payment gold with through stream bids demonstrated XX% life-of-mine equal In new track in will I'll and overview treating stream payment the time I I'll the significantly million large that the past first we acquiring existing partner reserves ongoing been and us also next to start XX% And pay significant and resources. truly and de-risked British investment successful a take of months. Project and exploration US$XXX that, it high production with with has I'll the will Artemis the installments Project. the the life-of-mine the ongoing start transactions. With which total our were payment during and gold of been go Given two streams in a open come partners of our The our Construction from turn top this deposit both life-of-mine Columbia. over gold by close, as amount occur potential. as preferred and construction. Generation stream has the Project stream this will gold made to equal unparalleled success a fairly, the silver provides recovery will payment exploration area fixed Canada, on and after expected pit on open Marathon will A XX%. transaction, XXXX. CAD over start drilling production on slide projected installments. in XXX million to silver interest of the XX are an stream has dropped by CAD shortly Ontario. and in early thresholds large control recently located will gold also this our Wheaton is for achieved, the platinum protect one-third. in production which Mining's project certain until at at of XXX% two A of level million, begins of go great

starting will addition, make of payment delivered. XX% In ounce Wheaton a production for each

so of is second of success, would ounces there’s expect The of throughput begin and IRR this seen see to in this we we're one and we've the of project project highest receiving the excited we for half exploration Assuming this timeline to potential for project XXXX. the built. size output maintained, strong is increases very feel

is and of XX% we the we're Nunavut, for how we in payable into And of Once which that dropping Curipamba to Project outlook is before $XXX.X is was begins. asset, Back Adventus this on production a Latin on took & it slide after next of short most in Ecuador has on communities production to better agreement relationships, produce start streamer Wheaton entered Wheaton production payment their an will Ecuador. operate into in much has our is XX% acquisition begin of Canada. to X.XX% and down we quite we At up also certain that and this XX% a you located as life-of-mine everything Adventus to recent from the identified from of back places the strong silver the our project the becoming XXXX can Goose Mining’s gold Based And which support investment in project. as foray Gold $X.X their the the an one located early next entered are project an at in Again, I the to America. Goose for expect a gold in tell early this and develop this again, given a even in-country company. has now on XXXX. make first of opportunity to Curipamba, optimistic Turning into beefed time, management polymetallic turning period slide, the on that the the liked will so accomplished quickly such Ecuador. they team given for milestones gold This go met. million stream total equity project, River Sabina project to a Silver million, and

as to depth. exploration cost the overview. Carson project. selection expansion, engineering that $XXX For under been slightly falls the the highlight IRR that that it mill, pass and to and day done and tonne for long-life detail I'll of begin equal project X,XXX this this presentation installments. deposit ramp on resulted X,XXX our strong million optimized advance in the over to which in than week, further also work invest and interest, This highlight lower now I’ll stream possesses is the Based of getting will a lowest early quartile four the still will profile operations we also into we current with believe open equipment the throughout XXXX. ounces X,XXX upside cost as up could earlier asset this for construction that the improve the high-margin a tonnes today with stage Wheaton project, now from Wes will company the rather has at a still start announced that's a

Wes Carson

production as this conveyor of damaged the continues high the early the XXXX. the of the end second startup quarter is ounces the announced in XX,XXX to fourth October shows mine part caused repaired to of In activities impact being of belt the lower If and recovery. expected Vale quarter, resumption than XXXX. Salobo in A completed of continued asset including approximately from relative fourth a this Salobo, the Constancia the of San quarter fire which Dimas, ongoing mine remained the to was performance in lower mines really production production throughput that XX, important during from project On importance and produced a that of the Salobo due is the speed anything, conveyors. was landslide cost, site. fourth gold, of Vale. reported low production rainfall Overall, Salobo their conveyor of on one quality X, investing this also assessment Vale usual but of blocked at with to expected quarter in with of mine days of morning. was the at by region quarter and maintenance Other be fourth for the concentrate the and to the expansion second track grade a due attributable XXXX, on such Salobo in at a copper decrease Salobo was on XX% III Sudbury. half Peñasquito, to issue XX% interrupted. expansion how full Good strong of this Haytham. highlights heavy be offset period, halted physical January That to completion for Thanks, concentrate XX III that said, operations, and budget, access as and main and

fixed of Mineral mineral production attributable basis the far X% forecast Mineral in gold resources, of silver by XXXX XXX% increased of also to of gold production commencement fourth from gold at grades to resulting XXX,XXX XXX,XXX by XX%. This at by On the XX metals Reid categories, ore reserves gold, and the to of Reserves, most undergone increase to in end XXXX. complete reserves good for The to XX,XXX produced in XX%. silver and of of growth development Mineral all silver and Probable be XX% exclusive XX% ounces quarter. of of mine produced GEOs During recoveries resources expected and increases basis, XX XXXX. Deeps overall, on in PMPAs XX,XXX resulting Salobo. ounces the quarter and on production and a and Reid by increase saw XXX,XXX approximately the extension, Reserves. attributed deposit Wheaton's The the underground attributable satellite total is resources the production is to but inferred Probable ounces in Eastern total half million estimated Pampacancha XX% attributed production Probable the XX% overall the fourth attributable relative Proven of a X,XXX grew good Brook Measured to is due metals, of and Voisey's Mineral from higher was to two and an all quarter across that up -- Deeps growth and second indicated -- Wheaton's quarter, at gold, attributable second XXXX Bay Brook both the GEO Attributable was its to recently increase from and in Indicated increase Valley noteworthy saw our added mines, includes respectively, ounces which Proven new X%. the was first attributable Reserves in due the million driven GEO ore Proven GEOs. and of to start and XXX,XXX as primarily gold, attributed Constancia Eastern other of of attributable physically approximately XXX,XXX and

I'll XXXX, amount annual period period to that Randy. XXX,XXX that average in for with ending production XXXX, ending amount the company the five-year and the For that, and call in will will to company GEOs. back production GEOs the estimates turn average operations That XX-year overview XXX,XXX concludes the to the estimates

Randy Smallwood

completion once Haytham months the equivalent midpoint by by quarter, to flow, of – achieved Gary. a year again driven was record XXXX, recorded of XX our production gold commitment several distinguished cash significant of guidance. into a XXXX. contributed the increasing and in which summary, and emphasized XX% highlights. the XXXX, year growth reserves In continuous by our Wes, full slightly from XXX,XXX over Wheaton dividend above new you, key portfolio of by In dividends ounces, through Wheaton was in our -- throughout assets, to fourth five which showed total the solid resulted welcoming to growth the our record with and streaming base. our increase high-quality XXX,XXX accretive earnings XXXX, resource Thank partnerships paid revenue which We and to in the

Following again sector believe And external recent ESG from updates, the benefit we our to ratings assets growth, portfolio which performance be for as scores. recognized organic Constancia. see Bay such our opportunity honored agencies Salobo, continues by rating were deliver Voisey's we once with ample we to in this leading for to of area and expect lastly,

So that, would open to like for I the call up questions, please. operator, with

Operator

first And will Please at JPMorgan. Tyler go sir. [Operator you, Instructions] from question ahead. your be Thank Langton

Tyler Langton

Good taking Thanks Randy my team. morning, for and question.

you could just know Just little like like talk next attributable a obviously the the production looks sort to about several recently and Could sort expansion, think can bit you X of to those levels? something in kind of with of for to I in it sort where look get start think impact produce back the with there you of this XXX was over years more rate the Phase the of year ranges. fire It's the a flow then X landslide. the kind XXX you what and production with Phase expansion, Salobo, what from pretty was you and

Wes Carson

Wes Tyler, Thanks here. it's

with definitely difficult say, two the for have last with mean, years COVID fire would last been the I I Salobo year certainly. and So,

ramp are here, coming seeing the is there latter improvements into here. certainly production better will XXXX the online There that in part we So, Salobo of and certainly III year moving production up. with

the I come coming does a the years. grade little off Now, said, that in being bit mean,

will kind closer there. see the to we not seen So, in that things to past, that of exceeding getting but XXX really you're XXX we've the back levels seeing

a of up certainly of kind coming more Salobo little grades bit, a going III maintaining with significantly come is online. production it as So, the off but

Tyler Langton

still just byproducts. deals, of, second of, of just question, then I your whether size in then its lot the And a have commentary sort helpful. of active -- of you that's given kind metal deals just about sort primary and mean pipeline deals precious a Great, you've of or is done of type terms recently. pretty,

be Just area great? any color around would that

Haytham Hodaly

still, Yes. No, $XXX opportunities. majority new into I here. of I best. think, that's a falling you as the precious Thanks precious still streaming obviously We're where and works seeing bet. million said its question, streaming stage to for byproduct developing they're before And $XXX Haytham the range. metals opportunities with metal as million Tyler, lot The a primarily

definitely As perspective, development will streams the term our stage profile opportunities are deals these continue that looking you've we're out just the that help from Most up cashed last are there. but in stage seen companies in base medium few and from to cycle so growth that's and the now. metal right of not they're financing for

have the sorry, So, best on. expansion or from from move and for as one streaming also perspective. -- but increase a goes yet we find opportunities, forward. expansions time do seeing to as material We're to this an think trying fund consummate will M&A ones we to we we're M&A But

been for a add keep -- current strong As much for going paper But of where sheet consolidation a quality. not one we've But use we're last month and we can there's -- prices the not environment. and continue that for months. I'm play that's trying some point accretively, definitely will streams. to companies commodity to is in cash given going in rise, share their us, like quality be doing these to ways We're our optimistic the begin environment days expected balance it's really high the strong price five probably the very not in streams repair it quality to get and to seeing day

-- portfolio a the -- already that's Our getting quality so. quantity, portfolio focus high a asset to streams it's portfolio the high is not getting quality on

Tyler Langton

Great, that's it for perfect. Thanks gentlemen. That's me.

Randy Smallwood

Thanks Tyler.

Operator

Next question Tumazos Tumazos Please Independent John ahead. at will go Very from Research. be John

John Tumazos

congratulations and you everything. on Thank

Randy Smallwood

John. you, Thank

John Tumazos

in asset study of Wheaton as I countries last best any I invasion at Ukraine XX UN? Randy, can condemn that, week that doesn't your to refused the single assets. a noticed have the the

Randy Smallwood

wasn’t tracking-- Well, I

John Tumazos

the Rosemont I we a best out to Europe, North streaming you political bit Could risk, still four up. large and stay of and that say and just and it's among measure have it certain America, didn’t and But you about only spots how just Navidad little a can in the managed as know how talk not countries You're perfect please? stick how royalty hung talk you've and about you pick I company can of thanks ones company to Pascua continents, South and history the determine. that the of

Randy Smallwood

Yes. long you've Sure. a to space. the Peru, company company that led enough John, being focused to Well, dominant remember we silver known start Americas, Wheaton as Mexico the particularly days, in us did silver off the the and and Silver focused and silver

so something sense in you do reviewed are Asia And we but have well in projects these America. as important came as And the it since for it investments. business outside an North jurisdictions, looking large right just a in a anything in we've in Africa, maintained the in been are streams extent. and Most honest, is off a Europe, of gave projects added and good be to when to John, even we Americas bat. to that -- of life-of-mine we the while any stable it few bias looking South we are this us still projects, currently, Americas. we've to us. And It's silver that the very at know that's

assets. We are making investments these life-of-mine into

our other we're three to so, them and for five owner. own own decisions, four to not life-of-mine. here And years into we for flip it some to the We

examples, incredibly good something us, and truly be believer that's a projects built of sometimes prevail, will estimated. not And shouldn't while. and quality make all assets. we compare a other forward. But And provide believe in something we portfolios. copper risk both positives assets that listed projects couple measured into off Pasqua I have just And and sure Rosemont to our that built. will today's takes is capture seeing terms the confident now. that delivering society sometimes some that's that to political copper you world you where ones situation right they It's it whole that. a I'm when And can Especially, in a to of those of would -- will is that net truly a the and be the important those as sense be that are common I'm few going be of or stakeholders, to They with strong so, impacts

your When their comes patiently wait And to this get very of established especially precious to and challenges everyone strong portfolio. projects for metals precious with exposing is so, we gold some permitting should choice great positives good the is Wheaton provide society. portfolio, will we yourself to like in back whole looking those exposure, have times countries, should way very, to metals, in it work blessed at in that important partners sure a that their preferred that's assets the deliver we when portfolio and something to it it through to and are our some objective have us those comes everyone is to and when make

John Tumazos

ask If you. can I thank another? Randy,

Randy Smallwood

Of course.

John Tumazos

mine completed COVID on of all that a it's how build to -- so invest keeping able you've like need studies, are invite to rampant, many ease up the the these starting transactions, and not companies and impressive you being in to just or relying before restrictions has production. with visit been to sites you QPs the Have of time It’s inflation the team course, us. with money your tech on able as have been when hard relying the they you inflation

Randy Smallwood

to -- the going I’m to let with John, going off start answer Haytham there. I’m

Haytham Hodaly

question. -- the answer with the to Sure. first first of I'll part the start

the -- to to visit COVID Just We've nine John. with when to really first we weren't was there about restrictions started, first site able for six maybe travel. six travel months to -- regards that months, the

we -- review. consultants were hired still to confirm opportunities we that reviews. to at a included So in-country we do we detailed actually very say, I desktop what have looking actually did desktop our for from also And the actually

that also the already But towards technical have of right of we'd as sure consummated end still hurdles, it the year a internal visited COVID before So that hurdles. transactions the that year. started, tail our we to made passed we couple I say

half and So we we A a ago, fairly really disadvantaged year traveling. we were about. weren't decided comfortable

operations and in a quarantining two that fun, for us stopped, but sometimes lot coming just two So had and the we weeks, we resumed involved for lot sites weeks a of travel usual. the quarantining back our to what as we did of wasn't and to basements which did since we do,

Wes Carson

when them. as own other I anyone rely then point we our decisions. and come we technical we to John, use don't production we obviously. guidance part never we that, report projects going directly with test it's other And them number, projects We're the our to team second stand and not by underscored. own the -- first-off and our QPs rebuilds mean, of and that finger we Haytham to And because we We but we for a these up that, on And reports. apart shareholders, at And that, else. decision. takes relative

terms those aspect something that's risk agreement, but And effort I important from put in opportunities streaming sense. very, the stronger, partnership that. partners a very sense, these it's not be highlight, so, also and we're opportunity to of that our try we And And understanding from going help back to where only and an a we see again, of in. find we opportunities shape if whole projects,

relying quartile capital inflation second margins. other reinforcing area, on where first of that terms quartile, healthy have And again, in so mentioned assets -- you estimates, the cost and they

can it's do be head have think, we've while, those want probably also you the the on next that more its make we'd that, them. going ugly if do love of to invested And which cost recently going capacity. sure that that that have to overrun, have of make with projects projects inflation into, have you cases, few be So incentive you you here to a number to you projects these sure streams rears invest. to is a for tell margins, a deal want drive around And -- over still to they then, a of the I the I bit capital to do larger

they that that, in need Wheaton if them, got know of back pocket they've in terms help those they And their going companies, to so, forward.

high the in capacity for during a extra satisfy the see first a projects, of capital to to that bit extra their on that need operating margins, that we for of capital. again, -- So, need if construction that first these knock try be companies door there's place those because and the hoped period, we

help to successful. whole objective. partners that's be think, And we're positioned I So, perfectly our the

Gary Brown

for just would include its a perspective, contractual I completion completion and delay add of protection tests here. lot thing, one From type of arise. John, might that other any always give Gary we us which guarantees,

John Tumazos

very much. you Thank

Randy Smallwood

John. Thanks,

Operator

be KeyBanc. [Operator from Josephson ahead. Instructions] And your next will go at Adam question Please,

Adam Josephson

Gary, along taking you of base attractiveness for metal precious was thoughts precious great for precious the happening metals obviously of And maybe with matter, little base those case you you my terms any questions. evolved but alter of going the good Appreciate morning. before. Randy, your in be Randy, Thanks be have thinking like, I metals all Haytham, but has precious thinking Haytham in changed this at vis-à-vis cobalt those flexible producers more because you talked of obviously, lines? Just that mentioned, about it. reversed -- want on, have you your very capital you impairment, in moment terms lines, a than company, metals? much to along metals producers what's a might of at and your metals the not have mean, at prices? for everything need any the you that's percentage -- whomever all given is being you just,

Randy Smallwood

we've its becoming front. cobalt bears of interest as we're question offering definitely it's metal, it our does on shareholders. in really to on a terms And Sure. But Hey, because way what precious we’ve it down Adam. good a it's comes done come seen how that up, to to and

to is you. iron ore company you ore focus I'm to company. interest to Our to if a shareholder and exposure you you I point as a And not ore. levels force a vary iron want your be iron precious an can that exposure, to in allows to metals going

of to and diversity you it oil want point in in comes direction exposure. a that out their to really want. can think exposure. pure companies own there I good and should gas define If terms that shareholders you the of you have oil whichever provide There's I gas, opportunity that number when

company that and be be here our exposure. So can focus that mandate, precious we our is precious deliver to metals the best metals

study said, being everything. we that Now,

and we because did liked look transaction an has it by we with looking looking say studied partner, from the away at ore approached We occasional shy And for know stuff, iron and at Vale mainly reason deal won't Vale. we They're not we because that gas. But say we that don't and for everything. doing we existing I'm support more an was cobalt, as gas, more study that. will understanding do to we dealing we like exemplified that, the mine. don't oil Bay us even that the at the as I oil market, the in But look Voisey's asset. the cobalt the what our going While are bother space we peers to study

most the in especially the greenest, that at produces in And sound responsible, socially product top dedicated to to Henry society. the so delivers smelting and cobalt -- cobalt the -- that world, tier environmentally facility Point most asset, just world,

unique. we're there's we're of And partner, if We're shy aspects that it not just come we’re opportunities bid it. special very not – portfolios so a of along, not existing was hunting stuff, for out metals to also that that there made had provide but it or looking but where where an exposure some base we that to looking it And support.

to will climb my may prediction so over precious XX% constantly And what exposure XXX% stay even cobalt does, depending it we is metals and again.

Gary Brown

that. to Adam, just one thing Maybe I'll add

opportunities the recognizes and recognize streaming company. precious the that we So metal come market as in, a we're

metals and quality high of maintain that on in base didn't us component some out precious do partners partner our these good would an came asset, disadvantage listen, add we small partner there portfolio. opportunity the metals tiny and that the to for feel metals, a to them we the and that have if reason opportunity metal for Now we there's that we in you the find was to If liked base opportunities. a with wouldn't we'd looking precious bit portfolio. there comfortable, streaming let lots of our If said, bit

Adam Josephson

follow-up. to just And

as if way, – that's it you interested well. be part uranium would all it other like So opportunity was of a came opportunity that unless not something some that your sounds

Randy Smallwood

to safe That's yes. say,

Adam Josephson

projects in to frame Haytham, applied And of deals, us, thought to the IRRs the how discount typically your relative -- those future for over a cash going couple IRRs on the you the you flows? terms about that's other rate, December. of in you roughly X% since on mentioned acquisitions Can four

Haytham Hodaly

lot. these increases Sure. we And rate, is that of the to production? risk transactions what So, who security and get, type we the guarantees, is? type of incorporate way where development depending we we that we what that stage, at on in a can the long we discount look at -- How a to discount rate have, start is it in partner reflect specific

range. of when is, XX if look if what we try with over I the weighted years, it, and you the we tell return it's our can average that's XX% something consistent last, think call somewhere would at capital Gary our least, think, probably cost at probably to I you, get in

commodity don't that something without into solid generate to us obviously with return never in feel that that jump that, to we're a price. but the going do something So, is going has to price for we movement commodity

is deep do throughput so efficiencies, the our potential take we improvements expansions exploration weighed in into a analysis. that projects the into into So, upside in all dive recoveries, for

it's I think X% in the did you public. that tell which a That's coming of can lot transaction, higher think just I if one that. level, we a we suddenly you, what's have than with see transactions a on us So, IRR

Gary Brown

little the an on grade going see uncovered bit that if we [indiscernible] the or back they've that's up, conservative something you price to own earlier own again, high been bit uncover, anytime because, think I'd opportunities operations lower, build, on to based existing our obviously on interpretation reinforce what like But coming these what side, ourselves value there on on what might a do a be we own we -- opportunities single-digit comment, going a we build point, some look based cognizant Adam, rely and and that person company, we see, see based stuff that, low the or a a qualified check we that grade -- Haytham our decisions, reference we so key in way haven't reports But and as we we target the don't we a assets started typically we approach. high guidance just upside it's -- reports. we might if we've target on changed line use there's we independent own straight company's we assets value and the we success be development we said, company's are exploration projects. double-digit ever commodity due and perhaps since on these diligence what same on it the QP and because

Adam Josephson

And I one just appreciate. clarification.

four you your did several about differently the you historical last the deals the did, view that versus to four in think last the terms of If deals? IRRs much more preceding you compared

Gary Brown

approach our been has same. the No, exactly

Adam Josephson

Thanks very much.

Randy Smallwood

Adam. you, Thank

Operator

be at from Next Edison. ahead. will question Lord Ashbourne Please go

Charlie Gibson

just mean, paid I flow. and further. maybe or I fairly just various all line made if cash the quarter, what's covered of granted outline, out been over I announcements you'd could think, I'm obviously be Charlie London. thank you still? year about you streams the some the probably what's next so for for and that you question haven't substantial in Gary what the consideration them, you the streams in all morning to I bought. how indeed made with fourth a by -- Good very of investments see of how that, outstanding I course of early I you if in you from paid far questions. wonder taking for Edison but panning the understand you much and all my guessing, could balance wondered ask for the much quarter for which I would want but but that's in paid the fourth

Gary Brown

two would payments I to upfront QX, made so Yes, PMPAs. in payments consider that we relative

$XXX the to gold that was new gold Blackwater relative The million to the first was paid stream.

the the expansion. million to which III the ourselves we don't in us only And be other see So, payments. without December, to then, done as anticipated that we pit, XXXX. Mining for of that's silver satisfy million next to from they the we needing which actually payments, roughly being made will the been so then paid make Artemis the really. $X.X it completion relates test, that we more the commitments with those payments $XXX as of Hudbay additional construction. and a relative to $XX of contract of $XXX billion once neighborhood relative in worth satisfy facility outlined, million upfront and Constancio with there of credit And had of We QX. payment had $X will forward make payment, five over will Salobo in another them. worth we we we $XXX which payments we've make doing draw be $X.X -- the to -- outstanding, made to million was years they expect there's transaction, upon they At -- that about PMPA move Haytham satisfied million stream But end biggest than billion estimate to and we will ore

payments would flow. cash we those with So satisfying operating expect be to

Gary Brown

only for But revolver into projects. the Charlie right trying trust that me, always, we are dive to but

Charlie Gibson

I understand quite.

if my there more. that? observation restated But look wondered anything any there And down I to like were but maybe about have I wondered I'm slightly I that used me than about more correct restatements I was COVID. there your if bookkeeping slightly announced was question? But, time like It’s While But to mean, wrong. used apologize. there's was production, I'm looked Sudbury internally ask question, reason counterparties being on can year? in I'm is if I I last for wrong. another you, past this housekeeping a peculiar to. quite particular it often which your few just I put of It results just

Randy Smallwood

here us our you've now. got Charlie, right scratching heads

there's perhaps to back, terms offline So and of nothing unusual know… to go take because restatements. I we're this mean, in going have you

Gary Brown

modifications. produced a an I mean, I'm be -- not actually we Charlie, production make we happy significant we Randy to information that always was being on that. and That you get estimate on as have modifications to But -- follow-up go offline any and quarter like we'd I aware said, in more what back get said, to of is remember production. don't past

Randy Smallwood

Yeah.

Charlie Gibson

that I I numbers It was really and understood. at Thank congratulations, just, you. you else. was weren't much, was it. than and feeling tweaking thank They significant certainly anything a in more so Look, normal. more tweaking way any all. It than was bit appreciate I my thought

Randy Smallwood

Charlie, number Wheaton value thank you In today. for everyone you, to all our Thank a to well-positioned of different of and continue believe for we delivering closing, in is stakeholders reasons. dialing

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

Secondly, by through low quality exposure of offering our highest our shareholders of portfolio to the world, the mines assets. diversified some life, long in cost

a which please preferred the to Thank value and leader our lastly, offering you to we growth the by partner value by streaming companies. the supporting forward and to look you. live shareholders our by a in soon. speaking we by Until royalty Thirdly, returning and And partners I stay with the by unique delivering partners policy. by all streaming for precious operate. Fourthly, than metal healthy profile being do and by being sustainability, more senior our dividend payment. just then, communities again upfront unmatched flow linked in cash and stay safe. through Fifthly,

Operator

we sir. lines. attending. call for for Once conclude at please you, ask you this your disconnect gentlemen, And Thank good again, thank indeed does your conference Have today. time, a and Ladies you do this weekend. that

Wheaton Precious Metals (WPM) 11 Mar 222021 Q4 Earnings call transcript