Wheaton Precious Metals (WPM) 12 Aug 222022 Q2 Earnings call transcript

Company Profile

Participants

Patrick Drouin	SVP, IR and Sustainability
Randy Smallwood	President and CEO
Gary Brown	SVP and CFO
Haytham Hodaly	SVP, Corporate Development
Wes Carson	VP, Mining Operations
Trevor Turnbull	Scotiabank
Adam Josephson	KeyBanc
Ralph Profiti	Eight Capital
Lawson Winder	Bank of America
Brian MacArthur	Raymond James

Call transcript

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Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2022 Second Quarter 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. you. Thank Instructions] [Operator to on that at Friday, like is XX:XX conference being recorded August remind would this everyone call a.m. I XX, XXXX Time. Eastern will to conference turn I Mr. now the over and Vice of Senior Drouin, Patrick Investor Relations Sustainability. President Please go ahead, sir.

Patrick Drouin

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

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

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

Randy Smallwood

that to solid quarter amongst XXXX, economy am pressures cash will of joining especially Wheaton’s inflationary Thank and revenue, global the half performance again morning, currently the model streaming as This and traditional today Gary first us to pleased the felt being the resiliency our results the across of reflects later. discuss in miners. good flow delivered once XXXX. second and Patrick, solid of you, for portfolio earnings I everyone. to say Thank discuss you

first our gold first equivalent ounce decreased actually fact, half in XXXX. of cash In average cost the per of half the to relative XXXX

a in portfolio in new opportunities our willingness opportunities While continued create To absolute the Hill Keno and second our which, stream the shareholders. of end, value our the to to we actively in of pursue quarter, that showed we for quarter, termination return number our outside result when strategically of that on an announced over $XXX identify proposed both also of inside the will we for ultimately Hill Keno completed, XXX%. investment million,

in liquidity and with later severe information throughput call. However, the from lower-than-expected stream, will Wes Stillwater, Salobo this, Despite its the in at weather production have to the termination lower more combined events provide of XXXX resulted for we diverse Wheaton guidance. and having given sustained, on to investment, portfolio, our generate producing the four strong track available balance development growth the years. next key strong our assets our production long-term and at sheet, over production are growth

of annual turn our a renewal again over more provide $X who facility. on our for announcing in once creation existing stakeholders in value and report by sustainability we Lastly, and to connection element publishing third our sustainability-linked leadership demonstrated sustainability credit all President Brown, call like results. to details undrawn now billion our revolving Officer, will Chief and to would I Financial Gary Senior Vice our the the

Gary Brown

not of ounces of XXX,XXX Relative with XX,XXX of Salobo. to X% changes or relative On metal PBND, second equivalent were lower QX production but equivalent gold to ladies pounds largely at only delivered produced represented XX% quarter interests XXXX lower Thank precious the lower decrease of prior basis, comprised of GEOs you, gold, year, produced volumes million X.X of and basis, of silver, gentlemen. offsetting Company’s production the morning, of gold the or palladium Randy, second due this quarter gold cobalt. XXXX and a to a a in good sales The X,XXX ounces in XXX,XXX ounces and the levels. ounces on equivalent ounces primarily

June silver, Revenue $XXX PBND, combined the figure inventory This payable lower GEOs amounting the addition is preceding amounted cobalt the quarter in GEOs X% realized XX% X% to to to realized margin X for XXXX lower of attributable due sales, the by second in second As GEOs, XX% equivalent of an at average sales to the approximately in quarter million, XX,XXX XXXX, and gold palladium were the to XXXX gold to XXX,XXX decrease prices combined volumes. approximately the production. XX% a X% of relative Driven XX,XXX sales decreased Of $XXX and of XX, to cobalt. representing with was months approximately with price average QX volumes, XXX,XXX lower over than million. X% revenue, representing XXXX decrease X.X this GEOs quarters. the for gross

our of average of additional cost cash the a the model industry. However, combined of the pressures mining GEO, worthy $XX figure XXXX investment million and expenses amounted expenses experienced million being $X to community QX is and the the the resiliency in amounted unchanged inflationary with second quarter donations highlighting million per X% of XXXX. virtually $XX in across from to an business G&A being to note decrease

the to or of million has quarter of to expenses of the XXXX to declared Based estimated second plan, of of the crude in QX $XXX per prior or share amounted offer of reinvestment $XXX the Under compensation Board costs in are Company’s million to option their Company in decrease million per million to for $X discount cash dividend to PSUs. on August the the year, representing million reinvested $XX $X the $X.XX with to the a relative elected million flow the earnings in on investments amount in second XXXX, to share quarter primarily second million the a $X.XX $X on while per X% shareholders compared record $XXX million. to the and representing earnings XXXX an dividend of Basic the $X.XX the amounted XXXX. estimate $X.XX Net decrease differences shareholders per dividends share to a compared the issued Board prior a to continues policy, at due community quarter shares G&A Stock-based that having of to Company’s to will compared amounted $XXX quarter million adjusted $XX to to in comparable a share decreased donations to amount XXXX, payable Company has XX, to X% share additional market. share of X% dividend per associated year. Operating basis. a common $X newly to million $X.XX prior in year, XXXX. For

the long-term net XXXX, dividend payments two $XXX $XX and credit totaling Company’s Company million. element underscoring equity the the million in cash Recently, cash XXXX, $XXX During to commitment Overall, the to a amounted its resulting acquired second Company quarters relative June $X million, sustainability-linked revolving XXth initiatives. QX invested ESG investments. $XX million in quarter of and prior added Marmato, made equivalents to at facility, to cash to of million of relative inflows the

the $X XX, the July policy, purchase at while the term combined the revolving facility, well the financial forecasted undrawn to billion sustain with operating was its accretive addition, the The its revolving to of extended provided strong capacity flows, and having consummate dividend credit funding precious XXXX. That the In concludes summary. Company to facility satisfy positions flexibility time, the by very agreements. same commitments additional metal cash

Wes Carson

to Stillwater, quarter the second XX% XXXX and production of produced in Salobo Gary, production grades. second of good lower-than-expected and lower offset ounces movements its and partially with In from quarter. improvement anticipated due than second XX,XXX quarter a throughout Peñasquito to Salobo decrease the Overall quarter, and morning. from Constancia, Thanks, Antamina. in attributable gold, Mine saw of stronger-than-expected lower by the approximately came continued the relative throughput performance

the concentrate However, Vale with impacted the the at additional III that also the continue of maintenance. after end performance a ultimately maintenance was shutdown and performance second to maintenance production by focus work production process half remainder and Salobo in corrective through in further XX% quarter. the in mine mine improving operational completion the expansion was overall reported second plant, planned of improved Vale year. expects at XXXX process at of fiscal ramp-up the delays on both resulting due plant negatively to the

access to from mine the and multiple mine. facilities XXXX, continued is the Columbus has of been to Stillwater second the the to Stillwater floods during which once X,XXX addition, the at produced ounces including June and quarter. resumed a safe on the at they -- Stillwater for and mine commissioning to both XX, July return Production and Regional the XX% gold attributable of the XXXX, of metallurgical to quarter. approximately on for full remained of East mine, at to areas impacted operations, In the and palladium activities the XXXX. road to the began primary XX% and mine access the relative bridges events. the accounts during Stillwater operations palladium, Access by quarter, of crushing restored. mine sorry, fourth June decrease Stillwater the Operations Stillwater XX, XX% operations damage flooding quarter In for gold production production normal expected Boulder X,XXX attributable the ounces levels second intact stockpile mines the facilities

of at has the produced Eastern mines, mine Bay pounds the project. grades extension, the to attributable approximately that between decrease due quarter. to XX% expected production full XXX,XXX in Voisey’s Deeps XXXX, the lower development transitional ongoing during and to The Reid half XXXX. mine underground cobalt, Voisey’s of start depletion the continues up XX% our development primarily indicated period of underground second the Eastern was Brook of Deeps quarter, pit the the physically of Vale the second quarter, Bay end production and Brook ramp-up of underground relative is Bay two of quarter and complete Reid new During a Voisey’s to the for underground open Ovoid second includes of the the which during

in of other of XX due of to Wheaton’s production production to XXX,XXX PMPA, as XXX,XXX now ounces million resulting sale XX.X XXXX from XXX,XXX the proposed as XX,XXX production equivalent lower-than-expected Hill production Stillwater production ounces approximately to Salobo, is is the XX,XXX equivalent to gold weather, of forecast silver, Given metals, guidance. from XXX,XXX lowering be ounces in and gold severe well gold, million Keno attributable to ounces. to Wheaton lower estimated of

to the will Randy. the ounces. annual amount That will back For estimates period to Company concludes average XXXX, that for period the turn that in the production the average five-year I’ll XXX,XXX and that, gold now XX-year the ending now equivalent And with production operations Company gold to ending ounces equivalent estimates XXXX, XXX,XXX in amount overview. call

Randy Smallwood

flexibility, and Wes, enhanced flow you, a you, while key us and $X.XX facility challenges, Knights. solid quarter in by growth. achieved recorded recognized for dividend. which Corporate positions quarterly accretive a declared Canada quarterly We strong Corporate Wheaton XX without implementing the once and In And lastly, again our summary, by Thank credit its and a we We thank distinguished revenue, of Citizens Gary. well sustainability by Best by one our leadership financial sustainability-linked several being as showed not cash future in highlights. earnings

for So that, open to like would up questions. with Operator? call the I

Operator

Thank first Scotiabank. of you. ahead. Trevor The from Turnbull go comes Instructions] [Operator question Please

Trevor Turnbull

the in if you small I those the and a adjustment changes any Stillwater. things of the they’re and the caused termination bit contributing longer-term scheme was Randy. on attributable the But here wondered that came factors guidance. little of realize then out on I adjust talk stream wondered to other that X- recently about there mine if just grand outlooks. you to and Thanks, XX-year Alexco that to relatively changes Yes. I somewhat could

Randy Smallwood

this in then, Well, start drop doubt as average, in impact but And Keep a that of off additional also when the said, Rosemont is from Stillwater, the had the of mine period. would has Wes to saying of that average the terms XXXX I’ll that production we’re the copper an there’s sale so, XX-year provide and and say total Salobo you even to be X- no the of year production. XX-year right? in mind in that terms Salobo, detail, Copper that big the that of expected the and now -- it’s impact And is over early shape though at let significant I world, by I’ll in production in Keno, growth X- you received starting there’s part area. other years, that’s come and updated Rosemont, reduction that see plan ounces to going from in World factor start the

across what Rosemont terms And add? has is Wes, impact and dropping and definitely so an in also long-term spectrum. original that production was forecast, less the of in so than to the plans, anything the

Wes Carson

was as Tor The Yes. and into production other there fits where well then profile two change the Phoenix as in new where out out only the pushed with, and came being minor and a ones that Peru plans [ph] well. they

the only then was ones. I change other Keno two mean, the and the overall, two Hill the But the We’re year this minor thing main stream really, to ones. major were

Trevor Turnbull

That’s great Okay. I the about I you. hadn’t appreciate impact Salobo thank year’s But, this that, thought color. and of numbers.

Operator

The Adam go Josephson of from ahead. you. next question Please Thank comes KeyBanc.

Adam Josephson

your just to on Thanks my the questions. and morning. answer last one taking Randy, everyone Wes, else, one. for -- good last follow-up on the

versus XX-year factors mentioned? based specifically the reduction can much this So, production quantify you other and the X- you year’s is that on how of

Wes Carson

about of come probably it would -- from about in It’s XX% year. Yes. this

Randy Smallwood

the years. For X

Wes Carson

on year. the -- it’s of then the for yes, that. XX year And Yes, half

So, yes.

Randy Smallwood

Exactly.

Adam Josephson

it. Got

seems the there? -- then this is I’m ballpark, XX. Salobo And Okay. year, that the reduction missing seems right XX,XXX-ounce it or like is was Salobo, something Randy, there like it in was of about

Randy Smallwood

had was production from ballpark. seen we’ve they’ve going Stillwater with the -- there. that in right events I I say mean, It’s flood less to obviously that

So, an little is behind of schedule going bit terms underground. that’s impact. Voisey’s going to Bay in have a

cobalt seeing at -- Salobo bit pretty Stillwater the of, out and of we’re out and So, well silver palladium Voisey’s at is and course, a on gold, less the of we’ve on but both impacted then out and cobalt and such. track, cobalt Bay. and Voisey’s mean, been Stillwater of I little still

Wes Carson

in QX XX,XXX here. of we it’s rough. It’s over just was improve actually kind Salobo. are about QX from number -- is the things QX, pretty And expecting to

Adam Josephson

how much XX-ish of XX And is How was much -- Salobo. Stillwater? the so

Wes Carson

here. me check Let

Randy Smallwood

XX,XXX. of out let’s between it the about I call to mean, and XX,XXX, XX,XXX XX,XXX

Adam Josephson

more X- of what Wes, updated can you long-term and the Just the to be? XX-year, mine that’s plan much go that on Randy details related the view and would you having you or into And is? Stillwater your how say that impact the will about production

Wes Carson

long is the Stillwater in reasonably term. small

They up a talking I but XX-year. of next Blitz the the impact X-year isn’t only like each ramp and of are off of ramping the from overall and ounces does planning the mean, -- You’re couple up, significant few it probably over it some still thousand years, on there’s in scheme.

Randy Smallwood

course, on the -- good copper a Yes. our first even is ounces it’s impacted shifting world. The guidance weren’t reasonable Rosemont has all one of over because That five original to number of news years. that the those is, a XX-year part are actually Again, story plan. impact that for

in comes guidance, of guidance production. -- and contributors that on moving has the be of one change XX-year seen guidance. will project the big Rosemont actually because we’ll the with ultimately forward, operated. on on we’re so, only be that XX-year it But we’ve that impact seeing that’s that our with built a full XX-year confident the biggest they’re the And Not that as will actually the near new XX-year get X-year our pretty But, Hudbay much on discussions And to the guidance. the guidance so X-year in our to guidance. end that

Adam Josephson

of really to happened operational compared are the -- the pandemic the they what least broadly and to And a got this on as your Salobo fix the more problems fourth now point just III on is have them what’s problem up firm over confidence since it Salobo, they Salobo, you expect started? that quarter? do they’ve level need -- confidence their And much will do to have how to at grasp what at what in you start that

Randy Smallwood

a we operating for in it bit tours Wes can’t and ability. important number I’ll a color I confidence of to terms their Well, things just got say of versus mine for detail. a more virtual of on-site add and I in getting first more that much will are physically is let have visit getting a be in underscore down how of our site how feel And terms years. sense

But bit invest of there’s manage know operations. impact planet Brazil And lot that been the mines a side to a will Vale management very tougher of the being terms down the color. most a will on tell that to and the changes there’s the try issues. that to said, incentive one of it of was strong there forget on and too. trying fixed, the resolve that I you one we That in the let profitable how can’t these of pandemic is COVID of -- And we get I in Wes reasons impact the did hit So, in provide the countries world in pandemic. the I

a limit site productivity at our the measures the And an on so the impact try and to the working lot also -- had itself impact of measures forward. and way

to you So, want do more Wes, add color?

Wes Carson

Yes. Sure.

site a the So, was of I in on technical early part June. down team with

in well the us So, four We in this were ramp-up really for total. entire We there the rest review the up down and site. III. set to really give more of Salobo recently days a of got confidence year quite good of

got to struggled things back the kind all things figured through line fatalities particularly and maintenance But been largest incredibly that get Vale Randy a being by They’ve been to with had in said, back and the challenges They’ve they’ve the what confidence they’re quite as period. recognized We of mean, the what also always transparent the I have very around have way are in the now in with COVID, walking are. great changes really And back our at relationship really that exactly through as they us contributed a to as site. issues there partner, few out. strong have XXXX.

see by I is the mean some III will year site around great. it things Salobo mine three to certainly up walking going to up end mean, full lines be the It’s is great into here. completion ramp capacity. could I And the feed think of and able shape there. They the to going you take there. time year. all XX% looking though in I the to think get get it actually to next I

Randy Smallwood

that on important XX took capacity full when when the line. -- to started, mine remember about It’s it X months reach to first first that Phase

capacity. down get continue The XX second months they path, Obviously, took full should about as line the to improve. this

So, XXXX, the early easily see that XXXX, XXXX. should by end hoping full we of capacity we’re

Wes Carson

of things III kind of there was in there great in redundancies the Salobo crusher spent making to worth from Salobo on improvements just help a more at bunch It’s is They that the can. time through One Salobo separate with of made it best all they’ve about walking the noting and the They’ve on they of project added a availability. all II. that learnings right, way the the I line, a that primary sure kind lot from also of through. III line is completely

no there’s they and they when start I run how impact III. So, up II Salobo on and Salobo

any need you So, that to actually It’s do a line. anything that. with there of isn’t or tie-ins the separate completely

Adam Josephson

year, XX-year the expectations based XX,XXX-ish had, lower same and I changed guidance, from only X- Salobo on from were those on this problems term as one on impact year? the appreciate is before, your the expectation and Wes, both have or this aside long-term production you. they ounces your lower of on are Salobo just thing to clarify your longer for the production they’ve that impact of the

Wes Carson

It’s this we’ve year just that Yes. production lowered. the

previously. have we We’re confident long-term that and they still then that provided guidance in the very

Adam Josephson

of reasons? reluctance in in countries issues, it. on America. at in many last Randy, your willingness jurisdictional or your has How, for all, invest appreciate obvious changed outlook to those perhaps one And just of if I terms one specifically South

Randy Smallwood

a political try Yes. is Chile, it with jurisdictions like challenging It’s down its best the you capital world I into getting have all terms And miner, is do on assets -- here at has for very of any find in withstand strong there. it’s we Canada, down their challenge. which are it that the risk can is on the -- has the right an to number taxation own building state and And with time on. see going and late sudden in that decades, proving in And Even to increases one of do going -- all is of to impact we have Chile. a and a country industry it’s a to changes of it know of been advancing investment and the all being Codelco see is that because what new lack impact permits mining that tell enough foreign has the projects. ultimately everywhere real government in you rejected I of in you And there. look world. have taxation That’s so negative the the investing in

got so, focusing sort royalties extra have recipient and their on again, the on that of that of because that albeit focus ones withstand manage to deliver increasing bigger that. deliver terms best that with and taxation We’ve essential making and are for I recipient still increasing sure looking focus importance associated the first of reiterate the importance second these the assets assets to and on income all It to including just governments costs the sure for reinforces have or communities permitting they that capacity products and these quartile -- for stakeholders, that of taxes or the society. we and the stuff. in And we that challenges assets pressures, are capacity to make to profitability the high the

Adam Josephson

Just one last one.

changed based like apply the year that country so? you that the Chile, might over what’s a to any In on happened rough or would can give you terms of of past discount us sense have how rate

Randy Smallwood

a higher a We do team is was. fluid. It than political have it little assesses risk. that bit it’s very Yes, a

fluid a And so, very it’s number.

a expect the Unless is of be we -- offers a of to is, life and we where at also terms we of So, do today would that really stream, look yesterday. at but for assess they’re It’s fluid and whenever different industry not a number the in try tell where life only vectors along mine investments. are one looking be. different good The price would I’d an comes thing country a streaming the you these tomorrow project, number and someone it you about mine we’re we existing been have investments.

And so, incredibly is political risk us. for important

And willing so added as two of much you a And we profile, do our years put were to lot it. not tell yes, that a political can has as I pay and we ago, effort Chilean risk ago. we’re to into risk for Chilean opportunities year

Operator

The you. ahead. Profiti Thank from Eight Please of question next Capital. comes go Ralph

Ralph Profiti

for would of to capital which whether or be that is open seek you RioX, be their can if to given company? financing a stay at the of Randy, other we growing theme alternative means? that’s part sort Are of And mitigation a with the and partner in on how ESG and involved competence investment your plan renegotiated become the Phoenix focus the Chile. strategy, you through stream just

Randy Smallwood

an a Haytham of optionality we’re running an Well, ultimately, first definitely touch like. think I’ll that’s got to asset let growth we with color got in get up in it’s it’s it’s potential. that We them. provide good good bit the and obviously, and asset But place. But here.

know And that I no Haytham, discussions that doubt want with don’t we’re so, color? And on you one. some to add there’s RioX if in

Haytham Hodaly

Yes.

Thanks question, the for bet. Ralph. You

Just are in discussions specifically, them. terms of with Phoenix we in

ways to Generally of that work the over any fill try one time them required is capital figure of type our always any what speaking, try and out to those with little out runs challenges, -- and next capital figure while to needs. in to partners trying we’re there. We’re

be down in a them decision best for how the path Chile. We’re what them, always trying determine to motivated in this help in situation right would politically to

got you tread this how of to regime least next figure couple here, to out for the You’ve here try and years. at slowly can withstand

Ralph Profiti

of the whether can appreciate And scores, right? go on parity you you beyond amounts to sustainability-linked be or ESG Gary, of undrawn of run And the control. and emissions things the ask not, whether exposure not sort third-party total I opens does this in a not on question enough. or and the up that. may Fair stewardship sort Yes. rate Gary, that targets somewhat your risk you on potential facility? I goals environmental

Gary Brown

three maximum X in the plus is basis X component there’s those Well, drawn points. And not minus of associated the achieving linked revolver. sustainability achieving change basis or points, our KPIs, with elements, underlying or the pricing targets

-- those emission one relative our reductions. to gas is to So, greenhouse into partners’ ties commitments of targets

And so, you X KPIs X.X it And points. basis divide said, perspective. you’re down baseline improvements take being points X, from anticipate that our basis do that by we in to

So, And negligible. there’s believe -- is really we of this borrowing chance our do the Patrick? downside in us -- reducing that risk certainly cost more better a of regard. this

Patrick Drouin

Scope that as put other We going that number of well out in believe whatnot rating Yes. higher. only one in in place to GHG KPI in came score and be external sustainability our Ralph, were we targets I’ll had which that our we us quantifying that our that The report strongly based X actually just add, the ties have investment, agencies, as that a last on S&P rating. emissions will added that much much, disclosure report. we

isn’t disclosure again, added that us concerning doing already it we’ve because, place scoring the of So, overly to in of by reflected work that the put next we’re in round should the into S&P. be

Randy Smallwood

that don’t that obviously, have And our partners. the partners that the do have have. we everything control of and terms basis. years, just make our we can’t are are I’d Ralph, of for to partners they have we the There’s we on but we to hide this that investments for for more But, behind them. a and in in we fact a take go-forward We ownership thing. done space responsible lot add And one companies

is so, And streaming do one of think I things focus help really better. everything relationship. and that’s to them be the that differentiates the And we on that try

Operator

comes question Charlie next go Please Berenberg. ahead. Rothbarth from [ph] The of

Unidentified Analyst

thinking So, in more could you not highlighted the how to bit you at environment, you could streams available a that commentary current you them finding whether you’re provide please -- you about little and the In you’re the or the -- of moment? of have. available sort pricing your presentation capital on

Randy Smallwood

that I’ll one. answer let Haytham

Haytham Hodaly

Sure. Thanks for the question, Charlie.

usually We’re falling range. they’re seen into continuing down due is over two a all number our what opportunities, it we’re we sub-$XXX And to working smaller put And processes. currently narrow about given streaming any next goes couple And through if number to in a quality most in XX the or million diligence of primarily things over of months, the XX years. time. opportunities last team XX see to meet one to you’ve the hopefully, of perspective, stage of that requirements opportunities, them at well. not at My point looking assets can unlike development high

Now, success that growth, the had the organic months. we over last mind given keep in on streaming transactions entering have XX we’ve into strong these especially do

that, we deploy we ways to it for be cash, next so. So, able the put accretively be over to towards some look our but little has will continue cash to but will while, to

Randy Smallwood

operations. Yes. I lot have therefore flow, prices ones would cash terms relatively need for that well existing a add done capital that and for existing have the in of And internal of cash that flows. have commodity any operations companies not outside

definitely companies, And development just there’s helping mines so, continues demand that. are fund it development and development that companies set focus healthy And building our onto that. single to asset a for

Unidentified Analyst

different forward you they used ‘XX. at commodity are of assumptions per can pound could the sort you the I’m you cobalt but remind going please then, $XX thinking to the this, of for year? And -- for me? terms have materially your assumption this off ones moment and of Your missed in that prices, sell might I

Randy Smallwood

like mean Sorry. Is the that forecast -- ounces respect equivalent or…? you production with to and gold do

Unidentified Analyst

do. I Yes,

Randy Smallwood

sure make identical them kept apples-to-apples it We was comparison. to an Yes.

the is start the the at for ounces conversion as exactly this same gold was into it the equivalent So, forecast of year.

Patrick Drouin

But at opportunities, we be of clear, we to in when look new current price. the evaluate spot them terms

Randy Smallwood

now well Yes. you be to very this XX of going fluid That’s a business price can’t years been is the what number. -- I in it’s again, and I’ve tell tomorrow. over still gold for

valuation. of very new That’s always day. a a it’s at looking the Whenever it’s drives function fluid. So, It’s spot opportunities, price we’re of what the function. always

Unidentified Analyst

understood. Okay,

clear, for GEO are this be pricing used the X- the same XX-year calculation? the and to year Sorry, for

Randy Smallwood

Yes. Correct.

Wes Carson

so set those once stay just they that a numbers year We Yes. consistent.

kind them set So, same for original they’re put guidance, when we keep year. our the out we of and

Operator

question Lawson next Securities. go Thank Please you. ahead. Winder The from Bank America of comes of

Lawson Winder

provided very thank the on yesterday’s do, would perhaps and SSW update more update bit than hoping update the from guidance. so a guys the color you today’s long-term for That’s have been was you’ve in that gold. color for you Stillwater you we on around far particular, around little regarding I Thank helpful.

ounces XX,XXX like, the a guys originally of you you per gold, rate, when for around that once that hit So, -- run sense materially is was year changed? did it do how stream, that’s its expectation of have

Wes Carson

it Overall, changed significantly. hasn’t Yes.

comes as two does year the where over impact it been it’s ramp is So, project project up really Blitz is so. or the main I slightly. But impact significant mean, a on. gold, the next has the particularly, But not slowed as on down

Randy Smallwood

other doubt the and to by they’ve the It’s no year. events the longer -- over really complicated project of years. this there Blitz next had the just that improvements flood taking are further and implement couple It’s

Lawson Winder

of course. Yes,

cobalt, that the outlook in for change Thanks metals cobalt? other so term the category, to there color. for On any Okay. was longer

Wes Carson

cobalt project long-term of drop kind really outlook of Bay and up the on There slight getting undergrounds challenges was those Voisey’s in there with because and running. the a and some just the of

a dropped So, bit. down little primarily, XXXX

metals affected So, that other XX-year. for the X- the and

Lawson Winder

Copper to then, And trying just up I’m my World, true Rosemont. for model

World? Rosemont? current for in start-up guidance, you were So assuming year guidance, assuming are a a now for And of your start-up in you Copper your prior what for what

Randy Smallwood

We’ve production of end at from guidance. the got very the Copper amount X-year World a minor of

They’re So, it’s in on up to things firming Hudbay the expect still side. that range. going we be

the that the Rosemont. on side this a project would immediately -- bring of on is permitting part still X but is it bring XX await just Where very, very more also terms we it’s of coming mining World. to in on that a success of that it we Copper additional guess could plan our have out they best terms really portion This side, clarity. years that X is the production in in out amount. production, federal to any years before on guess, small we on the Rosemont -- If about see So, is change see some of X-plus a I

we So, of firming we very of out -- enough of saw Hudbay that a of is it’s the early change it speak. a terms in Rosemont But as fluid out we plan. just things production indication in up here it pulling warranted XX-year the guidance.

Wes Carson

to out in this earlier well. guidance It’s previous as was we similar it put where year place the

changed that it timing It’s that actual the more plan volumes of the new they hasn’t actual of because out. put the changed. So,

Lawson Winder

you a in coming is actually you potential I about that That’s whether get to much on curious versus and remarkable it. terms just XXX% for Thank the up capitalized for then, that. hard operator be an But to the with with providing of help return were having finally, full in, was the thoughts talk that know it even Thanks return outstanding. And selling excited from guys to IRR. better capability close about. Got wanted I’d Hill. the realize Keno And asset wrap with. on asset and produce your argue its I Okay. it? you was pretty

Randy Smallwood

we’ve in Well, next the we the the have to holding it again, determining has XX speak. on the about forward. for but had how away, And then right operating relative we to But next price it’s to on continue been basis, original over itself The And project move to so that And a you we so and We I of know to a it that offered, that was we got the hasn’t that taken project and long end, hands to door, Hecla right things a And it us give the one stream time would into we just on and felt long got way very of best whether years when it that Creek project. think in million It’s was where Alaska it or the needed door. these at we a teams well They’ve it balance let to project better project have capabilities. close now, discussions have back to supportive the Hecla for return able stream just our where I felt way time and of jurisdiction. deal, was best just kind $XXX gone -- felt had of been XX up Greens go. It that investment to challenging it years out that out. we the -- look would wash to on. a of at did to a felt it just ways was. think, pull lot deliver. the of it’s

Operator

Brian ahead. Raymond The go question next Please of MacArthur James. from comes

Brian MacArthur

year. again, just outlook -- you through because it like expected scaling that next I’d you lower guess, days, Salobo next the to versus payment to think do have see you up year? back to to is, your end the trade-off, outlook over how new looks the million just make what expect the way. haven’t to I of you the the ramp-up slower, question $XXX scaled guidance still get your to pay, first at of do sort for give you of of guess, I I million Or $XXX question, it’s can a to just payment tons. different you to hit three, to like. XX have you go the my Second does what XX changed so you’ll pay go But the million payment what -- Salobo?

Randy Smallwood

work Line Well, to X some that to reporting on spec. Brian, the measured as X aren’t we expansion now, do. seen total clear as The of and Vale has X. it’s just payment And have remember. great performing a Line site, is question, Line important right performance based not to here that’s And we’re because and

to work lot on not do know, payment. based a and everyone that I they’ve got to as matrix so, X levels, throughput throughput it throughput the order full get total total think throughput but knows, what in just And And of time Line levels, you levels. to a is is and levels,

and -- all And would on lines means that the X, that nothing X hopeful they’re X. across than to and make better because up I so, -- payment board way full running the love we’re I’m

work However, there’s to bit this on of And for a you’re right. Vale do front.

pretty probably that’s think conservative. I

when -- production of you’ve of to a quarter, test. Line Given that got sort it it’s test, completion took said, your start level. XX you X years means quarter X there that to to months. took to as full add takes XX-day satisfy a Line test, get I full Because up two on that a

that good payment pretty a might chance expansion be there’s not XXXX. made think until I

up is the same XX% made they’ve at and it’s And it -- We’re year. get to hopeful think based getting throughput line this capacity. test I on it’s levels. got next and But those of running the time, to

you but so, striving they’re And for to it’s going want for I that. anything challenge be a add? them, don’t to if still know

Wes Carson

that $XX slightly higher on $XX have that hit to actually than XX% million million It to is total… one. -- They --

Randy Smallwood

the million capacity. show million to $XX Right. $XX

Brian MacArthur

matrix. And so just sorry, I -- million, up. the million it’s And triggered that, $XX same the of that had that way guess $XX on it’s all the

actually that, But get better only them two at now ran they there -- they it years million $XX the and you could up million, from you something? they million. and if now it next pay they’re like $XX $XX therefore, out, is say year, they to got where So, and years and and elect they got to got two pay scenario wait if go don’t for or try a to just even

Randy Smallwood

over It’s that and a results they to the chance And are. days. the wait the And see a want the we what have the that, over to then, it’s onetime wait ones at only pay period, But got this. one next them initiate their They exercise -- that XX elect based of the on onetime XX-day trigger. trigger. end test. They’re performance we when we in

there’s possible discussion IV. Salobo other the of on we Vale’s one no so, been know been side. And as they about scenarios There’s wait, commitments

complete they the the of and have other point. to is it could and scenarios wait to Salobo get One IV

number a but capacity, Now that’s would the easily of out, years up bump quite increased throughput numbers. with

to their And to exercise choose they so, option it’s it. whenever want

conservatism of a is bit it XXXX. that year. somehow I to It’s real it got next of there’s probably risk pushed would it. guess Our getting into they sometime a that best think satisfy still

our this because the portfolio again. being Salobo and back make said, they’ve I that payment in these resolved to As issues, means I’d asset that love we’re best to

Operator

of question Please comes from The Adam KeyBanc. next Josephson ahead. go

Randy Smallwood

Adam, welcome back.

Adam Josephson

me mind I would Haytham, seen you seeing Is Is it your metals of enough it those mines? mines? shift on earlier, didn’t you’ve Randy. Thanks, questions indulge opportunities? obviously. base of metals where ask late most along precious any you’re lines? you And from

Haytham Hodaly

precious out from metal strong been we there as majority to, metal and streams are at The the there’s metals more streams consider Yes. margins metal a some very, considering precious metals have of that base have that but looking precious are very it point at we’re is if focused time But wanted projects this seeing base opportunities are There metals opportunities development also of focused. in precious taking precious bit a to well. everything But bit. tiny if helps we’re mines.

Adam Josephson

hear there. I you

you you back and are silver that could prices silver the prices lines? gold presumed to still be a at that Do thought years all that point? or about -- months Any silver. perhaps great. a commodity appreciate for I these we that thoughts happen. seen opportunities past, that And think, have you’ve, question silver obviously, I of not decouple you changed decouple, all one But gold some from going. think, is outlook, where earlier your Randy, those view would at secular knows Have in just no on expressed given price to prices your expect thinking that along

Randy Smallwood

measured haven’t more which and any much more. in incredibly other so as conducts but time. Silver it a world, gold important, more so important does better precious high-efficiency silver than fundamentals the a metal. value store acts -- value the Well, electricity as metal, and does, also electronics, Silver changed. today’s a noble all Silver provides

maximize want the want water solar use your power, silver. metal. have many so beyond health solar That to going we noble Silver Again, look play means processing and world to as your antibacterial purification And other generation sure that other and has power challenges so, silver the if applications, any terms you around me, that efficiently can. society as trying we bigger your to less waste. has in to that just have just energy to terms bigger, making efficiency, systems, role length, battery silver at your a of qualities a as -- panels, got more and of you look the on use in is to be you efficient maximize we we face

precious of so, And industrial same There side measures are metal, has it store think becoming a a day. increasing got large hasn’t the important same that as changed. metal, a precious that And demand value society of an attributes. the as for it as -- on has that I but has that, the society as treat also obviously, every but as to more going silver it more is attributes and is widely gold, as silver anywhere not accepted near

-- production. nowadays. an I being that it impact of that eventually. have a silver bulk and see of relative from That’s lead happen mines mines, do I zinc an lead production so, silver lot in believe overall don’t It’s of terms of gold. area to And is sure going built side the it is, the zinc comes will I when And other to underperformed

you’ve got So, stress side. on supply the

side. You’ve increasing on demand got demand the

ignore up it. to I think line perfectly all the too metrics just

Adam Josephson

All right. appreciate just one, And Randy. I that. one last

average. current give guys guidance of you In terms XX-year the you obviously, gave, year, X-year,

nothing peers that so and that given into necessarily or You just is have what current some don’t think and current average some said, have look, just year, XX-year think give visibility much only don’t we future, And guidance appropriate have have and year you giving more. we I we the have. visibility so Dave peers the give X-year

you I these given X-year given opposed X-year just of visibility to and consideration perhaps and had et so, around, you as And current have? all year giving any that or you out going have given as current do, don’t you’ve whatever cetera, far as delayed, projects moving just year know,

Randy Smallwood

highlighting that years a time, time got in think next for measured are data continuous vectors Adam, I I going but a we’re XX-year uptrend guidance, think by And is strength a point that’s of giving is there’s what like important, we’ve forward. think XX it’s I point in us also that the important.

think up attribute seen that so, in or vector, at we of I of And terms looking What understand about. shareholders hasn’t know is came I think we’re six And months with hasn’t I understands. it’s that one it’s investing where from year the but mean, portfolio it. drop a our slope of we’ve the And it’s the changed a the hasn’t important vector previous ago a slope talking our we’re vector changed, been when vector, of overall, our make public that’s that to key it a that was right? I the -- the sure growth guidance. ago now that attributes. of

good in that. that. So and We’ve of after I growth XX another and -- indicated proven XX to that There’s years our -- tenure we indicated got portfolio assets, have portfolio. it’s of resources has another think and and it’s I think, long measured there measured probable probable close and not years and resources and proven inferred reserves out

forecast. so, to own that And of production think I our capture terms in it’s important

out because We change years. to we’re acquisitions next it’s hoping be I that are make the know will there. going Obviously, to going it change. confident over we’ll -- I’m XX

is and as I that it’s we higher hasn’t than guidance XX-year XX-year important And show it’s is going change. that that still is that’s what guidance. making been. that vector that is provide there’s aspect ever of sure so, average guidance, X-year important think no changed. our that as the That And to strong doubt But to our

operations the whole, I pointing got guidance holes acquisitions not a because they’ve as precious metal and vector that reasons think making industry lot have in by XX-year that’s metal by that lot streaming a way. to to advantages purchasing metals. off long-life need the But wrong our see we of one the people I portfolio, model that. the noncore by precious And one they the access either the why organic if it’s you precious not is byproduct provide go reinforce embraced. investing or is on to of provide of metals base growth. investors aggressively -- And a in the we through do reasons of of fill again, don’t business spending

such And reserve very that unique back. the resource have space have precious life, long life, portfolio that so, to within life a long it’s and we long deliver metals

guidance. there. And investors so, think to we’re about it’s thing with know make comfortable the XX-year important We that sure that out an

Adam Josephson

so answers really Randy. all I Thanks your my appreciate much, questions. to

Randy Smallwood

of closing, everyone, in Thanks, are having low continue prices, dialing Adam. you, a metals lastly, supporting very commodity thank reasons: to and offering by leader costs, within some coupled being which policy; by value Thank today. low-cost entire and our in precious in value our shareholders highest of our positioned I by all partners we sustainability diversified with through assets speaking different by In for the believe And that we please in result then, our long-life, forward stakeholders to a you. portfolio we safe. again it; growth of metal look for organic firstly, to in amongst delivering cash number the by thirdly, do exposure secondly, and precious to streamers Until the strong to all unique stay leveraged, space; embedded margins dividend live and predictable flow-linked our increase when operate. the of and shareholders which returning in and you stay and with soon. healthy communities well

Operator

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

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