WPM.TO - Earnings call transcript Q3 2022 | Wheaton Precious Metals Corp.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2022 Third 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, Eastern like is XX conference being Time. recorded November remind would this everyone call AM I X, XXXX over now Mr. the will conference I turn to President of Patrick Drouin, Senior Investor and Sustainability. Relations Vice Please go sir. ahead,

Patrick Drouin

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

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

Randy Smallwood

delivered and in our quarter high-quality XXXX, Wheaton's will you to that I'm quarter once as XXXX. joining third Thank again results pleased later. and you, us today everyone. Patrick, third the solid to cash discuss morning, discuss for of good earnings Thank announce Gary flow revenue, portfolio of

we streaming still identify willingness within termination that cash margins and the the for inflationary impacting the with million Hill create strategic mining, of the stream shareholders. in has Keno Furthermore, externally completed announced we our the Yauliyacu the the portfolio, our over that Wheaton $XXX sectors continued value an to our for million. maintained quarter, demonstrated especially have of resiliency environment. $XXX and of XX% for termination operating proposed To of highlighting model inflationary both all the pressures of in end, year-to-date, Glencore economy, are While opportunities, stream

are very We the mines over years. these happy with brought have returns the us

ways they feel portfolio, run we work back and time course as right to capital mining continue to that portfolio. have of our a we growing appetite the in for However, very part healthy source for it industry. And within and their for see us the streaming was put to our capital a

pursuing So of a new we number are accretive actively opportunities.

over XX, Sustainalytics. XX,XXX working highlight of company multi-sector is must in continue we Wheaton global were important that we something but metals Corporate again on. It the once once our in in as And citizens one top global in of corporate Knights. sustainability recognized best demonstrated only ranked the Canada proud are that the we leadership top by this out we companies again, precious to by XX Additionally, and of is

Vice to would results. strong liquidity the over are President strong development XX and for our more Financial who track over and Given provide on next call diverse Chief Brown, investment Officer, years generate our Gary and growth our long-term balance turn and available beyond. details our sheet, on will production like sustained Gary? portfolio, to I to the we now Senior

Gary Brown

million, year, $XXX for decrease XX% in of Revenue mine. at lower due this gold gold, X% interests prices decrease the Randy, produced to decrease palladium represented relative a and The a attributable company's to you, or and with production the to XXX,XXX precious this representing a XX% XX% the primarily to morning, of of sales XXXX quarter quarter and a Relative metal the good amounted and Of commodity ladies closure to third cobalt. decrease of QX GEOs, quarter X% ounces, Salobo equivalent XXX combined in XX% gentlemen. silver, XXXX. X% the prior Thank in due XX% the volumes. to XXXX third revenue, of was third

reflecting quarter This decreased approximately As four than payable to approximately GEOs were of the $XXX QX XX% G&A unit also XXXX. million preceding months to higher average XXXX, virtually the million, September PMPAs decrease not and cobalt from XX, X.X higher third in XXXX, attributed primarily lower sales quarters. in unchanged margin only XXX,XXX amounted being revenues $XX PBND in but for of XX% donations the the and GEOs quarter volumes Yauliyacu. inventory, over representing expenses of cost, XX,XXX third the XXXX a production. having a Gross proportion to of is of

million expects aggregate fall range For will no previously The reversal to The of virtually quarter represented to reflected the as stock million. and lower donations in the by third of $X decrease the in a XXXX of XXXX, accrued combined were RSU G&A relative expenses expense the combination the the of performance stock-based units expenses to company $XX quarter option previously announced share million relative of costs year. that offset the comparable and $XX prior compensation of company of a or end of PSUs. the

relative Operating exchange to gross the amounted minor in discount cash a per $XXX of prior on has income the company's XXXX. a reinvested of the a in million shares an XXXX, a tax its year, policy, $X.XX Hill to Board company's margin. to to net to million on $XXX November quarter reinvestment other dividend of net to prior third in Including company compared option decrease net adjusted inclusion, $XXX increase earnings $XX for $X.XX, for the XX, share Based market. million per-share plan, This dividends compared disposition, dividend third third on the amounted XX% at $XXX the common the the disposition, amounted with the shareholders of XXXX in share dividend the resulted in attributable decrease XXXX, earnings $XXX common X% of company compared Under record to $X.XX items, has number Hill share the of per or a earnings issued XXXX Basic lower representing share to $X.XX QX Mining. together per Keno Keno with of to payable amounted a the of the flow Hecla quarter share in per QX of being in $XXX for basis. having million. PMPA a XXXX. adjusted quarter million of or Neutralizing XX% of the Hill the to million Keno declared transaction During shareholders their year. the shares million terminated to offer in $X.XX to newly Board elected

its of million the at $XXX advancing, agreement, Overall, flows, its cash the early the During relative equivalents relative the of combined operating PMPA, Goose resulting company million. commitments to forecasted revolving credit dividend capacity with invested the Wheaton's relative strong $X million funding to facility, deposit cash and the are very cash The undrawn sustain inflows provided satisfy positions billion by well PMPA XXXX, metal agreements. cash million growth. Cotabambas organic XXXX, these with amounted Marathon to $XX third that $XX the net flexibility concludes the summary. future financial fueling Wes. $XX in and I quarter having and XX highlighting projects time, to $XX that, September in to purchase disbursed dividends, the consummate same accretive call the additional at That to while company turn of million over the policy, million the $X precious to QX And

Wes Carson

decrease Production the Gary, Salobo resulting XXXX the Boulder during Stillwater into quarter gold through the that of the East mine, ultimately and X,XXX to remain of planned morning. XX% accounts systems circuit. a of corrective primary lower palladium, relative Thanks, Overall the XX,XXX Access reliability over both quarter. the year. quarter, to commencement production second multiple on gold, and a the expects mine continued the the Plant on a the production approximately mine improving resumed impacted levels during and Stillwater. maintenance In and Stillwater represent in XX% and focus wet the flooding at at the mines operation continued lower-than-expected ounces end the facilities and of into been In circuit, crushing relative quarter, the of attributable intact, of and focus production XX, and third performance Constancia the despite XXXX, the the third third XX% to ounces floods of Vale previous second of of completion however, metallurgical of operations also to operations, during Regional as maintenance Salobo event. came July of of increase Progress quarter did, quarter. commissioning Salobo fourth of relative commissioning operational produced from quarter expected a the commissioning stronger and produced the to had quarter the including Stillwater from of remainder mine. and mine hot the further improved additional a on continue fourth restored. XX% Stillwater Operations plant, in quarter physical in improved the once reported XX% XX% gold in with damage overall Columbus access conveyor third to Production return decrease the production the the which the XXXX Vale is safe the the of by Stillwater work XXXX. the XX, ounces the performance expansion attributable due for bridges performance for the quarter. X,XXX quarter. to facilities anticipated the was access for process third to in mine production in to flotation the XXXX, the offset June Antamina, included of Stillwater the third palladium to attributable normal good quarter quarter at mine and throughput. road III full from on full third with approximately

from mine of During XXXX. grades Constancia a Project, silver to production of first gold, position for the of in call in equivalent the Artemis production Wheaton attributable commence in X,XXX start The quarter and And to increase decision of the during at for its major Blackwater an on the first pits, overview. production announced relative was the increase anticipates with in out in the the quarter of be will I’ll formal quarter, the of pit. announced of year, on full plant from quarter, continue gold the XXX,XXX back gold with is XXXX Silver close expects the production the & the construction throughput in sediment expected with Production to XX% of gold preparation ounces to concludes Sabina XXX,XXX XXXX. the to construction silver through and higher the guidance Pampacancha including Randy. construction remainder and gold XXXX. a ounces due produced production turn attributable and planned in a work that commencement increase Gold a to their its silver material the XXX,XXX Project. third X% Also in during ounces. Goose works the That to Blackwater production site the – operations resulting Sabina due of Artemis to approximately Gold the that, Constancia grade line year. pit production fourth clearing, from decrease higher Also to of expects site earthworks site bulk and in control. and Artemis to project decrease volume quarter, early announced the erosion mine in in Pampacancha was decrease quarter,

Randy Smallwood

Montana. flood shown enhanced our our for In communities summary, to a lastly, revenue, by us the Stillwater our future we’re achieved relief very highlights. dividend. the Wes. Wheaton financial which of leadership We several quarterly local of quarterly earnings And which solid sustainability, and continued which growth, support flow we strengthened mine by example distinguished is to around you, in active accretive $X.XX and positions flexibility, Thank on. in quarter show an solid well key cash a recorded We declared and

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

Operator

Scotiabank. with Thank sir. Turnbull go [Operator question Trevor ahead. you, Instructions] First from comes Please

Trevor Turnbull

ask ramp-up. I respect attributable Salobo’s Randy. for production we question its just had Wheaton. the how wanted third starting a think Hi, should to with about line I to

I the of the your out just ramp-up a think indicated how the then the report combination to mines to going into quickly incremental grades. technical and And period account. grade I of lower profile the works growth wondered

Randy Smallwood

to Trevor, and you. to Yes. Thanks, good talk

And Salobo. move the plan growth, grades coming to some definitely but the terms see there to of will much stockpile. lower mine they mill are want how still – versus they versus final material at on We move is working in

kind until to much matter we feeding are And mill. gold a will growth finalize it can It’s in they stockpiles see. they that, of the tough up a be us for to put what so sort into to of finalize through decide assure production us. of it’s I going ultimately versus how for bump

still in a make terms of the their and that they adjustments that’s we the I there’s something variability possible limiting fleet, to here, The of decision. size. is scenarios – so easy And and or, in mobile a scale bit just haven’t of is guess, formed final factor driving factor terms and relatively

a XX% we’re final around much that in as will of What throughput seeing firm maybe make will until they gold to that overall so be tough but give increased XX% growth XX% some production. it assure a terms likely be in more you capacity. likely the is won’t in XX%, decision, It production, growth, to high the us scale for really you be overall can as I probably there answer. it’s And to

Trevor Turnbull

payments. year-end? only that for that’s Santo Yes, of just some Yauliyacu, happen for and wondering, is coming of I to your then was the any respect before Capstone next then Okay. The I happening was timing payment in other Or things ones are question Domingo to had year? those that of helpful. The

Randy Smallwood

Santo and And close finishing busy still transaction end activities this waiting but Capstone track some to discussions on that. that Domingo, the down should some end But we and down of before it year, I We’re the sign-offs looks of is like final off we’re last hopeful it’s before like there. that the for just had assure other stuff week, Yauliyacu the year. can you close

they’ve still got so to do. And some stuff

to the next year we anything on we’ll going not for, be side. think would Santo Santo here see we’re the So might I Domingo Domingo that see on anything probably sometime until first

Trevor Turnbull

I That’s all Perfect. Okay. had. you. Thank

Randy Smallwood

Thanks, Trevor.

Operator

you. Thank

from comes Tumazos Tumazos Your John Research. John go question Please next with Very ahead. Independent

John Tumazos

we shares Thank whenever cash as payment strong and the them? for if get flavor to through year-end reasonable cash, forma the financial it you. cash, in look in it position, the cash could $XXX If out sell including near the is a just closes, Glencore choose pro and the to the run current million earnings, at interim Hecla you

Randy Smallwood

a Well, I hold six-month is will that shares. those highlight on Hecla there

at And I’m you’ve still Gary, think we of you’re but… off don’t mean, for so would too still of I the I they But sense be Hecla got – that end year. would sure if be in holding far terms not a Hecla shares that. the

Gary Brown

John. closes that to I end expect million mean, I would transaction the the Yes. be closer probably assuming level, think to $XXX the Yauliyacu before we the year, of

Randy Smallwood

that the and We development there do have year the projects, payments of some before on end so these some be payments going track. of may some more out to

John Tumazos

just My to next not having one property is or all due, than this the fall just payments next years. they’re your itemize prefunded of all for cash, next that quarter? to of think it five question the Rather most going is, even could commitments though you’ve way year surplus you

Randy Smallwood

do XX their year. they taken work reach Yes. going full completion in that months to try we’ve best next we But production typically past some will expansion up. of that. profile. of there And that end have XX-day It’s terms the test, got do commissionings to that I before payment a say and at have some to I do about mean, Obviously, given get Salobo that’s got – they’re coming the to completed expansion.

I the the XXXX. number books the projects early there’s until, then a So list. the on board. would think, not you across likely going all And way don’t if hit that’s of to I know

Gary Brown

by we Yes. contingency detailed very – could John, our project development-stage project number look, know, as got off-line. schedule this is well probably The that a we’ve in is a question We of projects. take you note. payment

that end made high expansion range of the before end about level, development-stage relative Salobo high will expect the those of with of there being to $XX do to million the million. this $XXX be relative Just payments III projects we year the

the be another XXXX subsequent will expect period. and $X.X that We in paid with that billion remainder and XXXX to coming over

Randy Smallwood

be Project are items to going the Marathon forward, moves biggest moves year, Curipamba Artemis Blackwater as forward, going is Adventus Sabina getting moving The and then Goose be as sometime next forward, should too.

with those that, the expansion payment. are so And items, along the most of biggest the globe

Gary Brown

that our John, the forecast make from plus most funded the September, at the any to we of all $XXX They’re is it’s end even we hand flows into of future. of anticipate into which under million important dipping But aggressive on to out even cash operations don’t these development actually the on that revolver Yes. highlight, our payments. cash have plan, just

Randy Smallwood

capacity of new for plenty So deals.

John Tumazos

too. done got resource and higher But Obviously, appears ore the grade of was though And it ago got got Augusta. a as tons CapEx decade up that a really to deal head put yesterday If about to and And their there’s great terms on price billion work $X that call talked ask you? probably the locked the with more. the you be up. deal Hudbay to deals try higher. It’s copper could is with obvious rip have the almost a the them? weeks or I more got leader one when why good field to your renegotiate is companies to me no Are projects higher than worried Not stream trip and ago would their the that already to terms renegotiated. better. the couple you’ve gun first to do two Rosemont renegotiating project a

Randy Smallwood

the strong with we’ve they relationship a Hudbay. can’t good Well, and rip got deal up

forward World about that actually the about original production rate with going reason that’s two Copper the thirds contemplates so the current was. their renegotiation is think of what a And plan plan fact I

operating And mine gold rate, funding throughput discussions The we’re with so to have us was receiving ounces given, had plan to at close we equivalent a were going that them to from be how XX,XXX year works. higher a that that original some about supposed have a to Rosemont.

and production. that us terms plan it the of only of But early years is around in World silver development the of play. that gold into ounces because Copper equivalent still Now would of have there. seeing brings XX,XXX And revised it’s somewhere production gold

change the down frustrating so at effort has like And try the in American had so, own the to I benefited the they’re the that a minerals to World take to down copper find that they there’s its look have to in World. we Copper and mining to be significant of greatly project lot get sit And a doubt and how sad from plan. on path, in itself, of strong comes especially mean, have federal this from are country production where the having It’s We it renegotiation in-country focused plan improve side. to going find put There’s And of has that. route trying grown. the that essential to producer. on benefits it successful copper. no exploration a Copper the going I permits Hudbay that’s we

important XXX, make see going a successful to work get we seems a down forward. copper we on can to coming down I’m owners Copper plan, to mining his successful World there, forward the and original the very given with has Constancia Hudbay forward. that both of sit we’re that and the change some working Hudbay to hopeful have Rosemont that and path be have which forward. back in terms partner to project best solution. And with terms and Peter will ultimately of to can sure. is ours, trying very at partnership to And going how that is the them previous all Rosemont in in challenges the side so, the crew go given with But look coming to plan play. into I And as had had permit eventually success and and they of have a other plan

the in mining itself. the up plan tearing the just And actual of is – of changes so no mining to This contract. there’s reflect

John Tumazos

Thank you.

Patrick Drouin

Thanks, John.

Operator

Thank you.

Rothbarth question Charlie next Please again Berenberg. Your from go with ahead.

Charlie Rothbarth

congratulations or afternoon, taking your my on good results. questions you morning Good much everyone. for and again Thank very

as this Or to Randy, missed next think just what that year? Do to triggering to call that? that’s if Just initiate I’ve it. I confirm, Is you’ve last the I said? think you’ve QX well, Vale at in I said you but misunderstood earnings expect

Randy Smallwood

The completion I year. that – XX earliest full it’s XX-day takes Well, forward it it previous there their least quarter do in best is, completion production But QX going of to a the done they’ve they’re to it fact satisfy that be would the think to is be will full they say at to and to that it. trigger so next could test, a I the that for going to levels. lines try to get commissioned months and that them actually have get two taken test go

going go talent [ph] And be them to so to forward. it’s

So the here. I that of hope line a you heard feedback lot there’s on

Charlie Rothbarth

that. I look regards I’ll mute the sort hear are a I have apologize me, me – just Could when I for quick feedback you informing here. for you’ve me of next myself you developed, of with errors. my the is inventory, inventory to did Yes, apologize.

your produced start of of had gold it quarter, QX looks in couple developed versus sales. production versus sold XXXX, your the last over since gold the you’ve You’ve like

that You’ve an Or intend Do hold stuff this build expect inventory for this any about get to XXX ounces sort of you of is [indiscernible]. QX? sort in you of kilo had now? unwind back to

Randy Smallwood

a sales have fourth terms trend every to quarter out year and seen the improve pushing try end in of the We result. companies in of year in QX

it’s not quarter actually past squeeze see most year, push typically result. sales end We the so of in have And every that would to a try get I companies production where year times. we seen forward and do extra expect do what but years for sales

Charlie Rothbarth

on note mine deal sense? like Okay. if as stream, Thank successfully you’ve expect I your financial to When on this much. got. all? you you refund has of any makes part a receive been I’ve. very XX Sorry, that any XXX And now that do on the question If any at statements, finally closed the then feel

Randy Smallwood

you’re is Yes, saying. deliverable been yet. achieved a and There it I what minimum amount hasn’t know

And XX the I that of partner or so try believe I a again, of and payment, is will additional They put years ours. of there the is XX investigating possibility tailings reprocessing but it’s important are say there a out. also Hudbay reclamation about help very to recover metals. sort

so may of some there’s refunds, is we And you in a in when additional relationship production keep have again, out sometime And itself. mind a near the see of XXX it possibility those future down kind path. company that to this amongst to comes the broader

always it so into comes And play.

I we’re – but it to ever that. ask hope never And contract, in is have we for so the

Charlie Rothbarth

Right. questions. so understand. you That much. is Thank Masterly all my

Patrick Drouin

Charles. Thanks,

X% relay. have is, And of limit new the So liberal their here in couple our a appetite second related future to buybacks? tax from share buybacks the shared Precious by both that The share onward will – for to we I’ll Wheaton is what questions Canada Metals? do to they’re policy is, webcast the any buybacks. government One share one then is buybacks

Gary Brown

our fill that and distributions. be those of and second three look We to ways is that other XX% cash the up It’s payout or to And Gary would would is being quarterly targeted return buybacks, options one shareholders. excess share cash to there to Patrick. to at And be of just can the than subscribe ratio ratchet the Well, either rather And say special operating to the first through dividend. options. I the the would be of first third here. at really currently that we I’ll which one, much flow subscribe

I of the as unlikelihood think share high the us second given question answers subscribing buybacks, so And well. that to

Patrick Drouin

all the That’s webcast. from questions the

Randy Smallwood

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

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

diversified to exposure our growth it. shareholders and of our low offering long the life by portfolio embedded strong assets, Secondly, within cost organic

to by cash being flow forward policy. Thirdly, communities you. and we partners to supporting shareholders precious again our Until with live and in by amongst healthy And the look sustainability do stay stay streamers operate. dividend metal by value unique soon. returning speaking our leader Thank and through then, a lastly, in which safe. you I all please linked and

Operator

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

Wheaton Precious Metals (WPM) 4 Nov 222022 Q3 Earnings call transcript