Good morning, everyone. Thank you for being here. Welcome to the Wheaton Precious Metals' 2024 First Quarter Results Conference Call. I would like to remind you that this call is being recorded on Friday, May 10, 2024, at 11:00 AM Eastern Time. I will now hand it over to Emma Murray, Vice President of Investor Relations. Please proceed.

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton Precious Metals' President and Chief Executive Officer; Gary Brown, Senior Vice President and Chief Financial Officer; Haytham Hodaly, Senior Vice President, Corporate Development; and Wes Carson, Vice President, Mining Operations. Please note that, for those not currently on the webcast, a slide presentation accompanying this conference call is available in PDF format on the Presentations page of the Wheaton Precious Metals' website. Some of the commentary on today’s call may contain forward-looking statements. And I would direct everyone to review Slide 2 of the presentation, which contains important cautionary notes. It should be noted that all figures referred to on today’s call are in U.S. dollars unless otherwise noted. With that, I’d like to turn the call over to Randy Smallwood, our President and Chief Executive Officer.

Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton's first quarter results of 2024. I’m pleased to announce that our portfolio of long-life, low-cost assets delivered a robust first quarter to start the year, generating approximately $220 million of operating cash flow and over $160 million in net earnings, underscoring the effectiveness of our business model in leveraging rising commodity prices while maintaining strong cash operating margins. And we were very excited to have closed the previously announced agreement with Orion Resource Partners for the Platreef and Kudz Ze Kayah streams, completing an upfront payment of $450 million in February of this year. After advancing this payment, Wheaton remains very liquid with $306 million in cash, a $2 billion undrawn revolving credit facility and ongoing strong operating cash flows, allowing the company to fund all outstanding commitments as well as provide the flexibility to acquire additional accretive mineral stream interests. Building on the momentum from a record 8 acquisitions in 2023, our corporate development team remains actively engaged in evaluating new opportunities, and we continue to see a healthy appetite for streaming as a source of capital for the mining industry. In addition, during the quarter, we were proud to have been recognized among Corporate Knights 100 most sustainable corporations in the world in 2024. As the architects of sustainable streaming, this accomplishment is reflective of our commitment to operating responsibly in all facets of our business. And with that, I would like to now turn the call over to Wes Carson, our Vice President of Operations, who will provide more details on our operating results.

Thanks, Randy. Good morning. Overall production in the first quarter came in higher-than-expected, driven by strong performances at Salobo, Constancia and Peñasquito. In the first quarter of 2024, Salobo produced 61,600 ounces of attributable gold, an increase of approximately 41% relative to the first quarter of 2023, driven primarily by higher throughput. Salobo's strong production in Q1 is attributable primarily to the continued ramp up of Salobo III expansion and sustained overall improvements at both Salobo I and II. In the first quarter of 2024, Constancia produced 640,000 ounces of attributable silver, and 13,900 ounces of attributable gold, an increase of approximately 16% and 101%, respectively, relative to the first quarter of 2023. Strong quarterly silver and gold production continued in Q1 as a result of the significantly higher gold grades from the mining of the Pampacancha deposit and associated higher recoveries. In the first quarter of 2024, Peñasquito produced 2.6 million ounces of attributed silver, an increase of approximately 27% relative to the first quarter of 2023, primarily due to higher grades. Production in the first quarter focused on mining in the Chile Colorado pit, which contains higher silver, lead and zinc metal grades than the main Peñasquito pit. On April 30, 2024, Ivanhoe reported that the construction activities for the Platreef Phase 1 concentrator are on schedule at almost 90% complete and on track for cold commissioning in the third quarter of 2024. An updated independent feasibility study on an optimized development plan for the acceleration of Phase 2 is planned to be completed and published in the fourth quarter of 2024. As a result of the planned acceleration of Phase 2, Ivanhoe reports that the first feed and ramp-up of production for Phase 1 will be deferred until mid-2025. In addition, a preliminary economic assessment on a Phase 3 expansion is expected to be completed at the same time, increasing Platreef's processing capacity up to approximately 10 million tons per annum. The result of this is expected to rank Platreef as one of the world’s largest PGM, nickel, copper and gold producers. In 2024, GEO production is forecast to be consistent with levels achieved in 2023, as expected stronger attributable production from Peñasquito and Voisey's Bay is forecast to be offset by lower production from Salobo. The suspension of operations at Minto and the temporary halting of production at Aljustrel were additional factors to consider. Wheaton's estimated attributable production in 2024 continues to be forecast at 325,000 to 370,000 ounces of gold, 18.5 million to 20.5 million ounces of silver and 12,000 to 15,000 GEOs of other metals. This results in production of approximately 550,000 to 620,000 GEOs unchanged from previous guidance. Production is forecast to increase at an industry-leading rate of approximately 40% to over 800,000 GEOs by 2028, primarily due to the growth from operating assets, including Salobo, Antamina, Peñasquito, Voisey's Bay and Marmato. Development projects that are in construction and are permitted including Blackwater, Platreef, Goose, Mineral Park, Fenix, Curipamba, and Santo Domingo, as well as pre-development projects, including Marathon and Copper World, for which production is anticipated towards the latter end of the 5-year forecast period. From 2029 to 2033, attributable production is forecast to average over 850,000 ounces within the 5-year period, also unchanged from previous guidance. That concludes the operations overview and with that, I'll turn the call over to Gary.

Thank you, Wes. As described by Wes, production in the first quarter amounted to 160,000 GEOs, a 19% increase relative to the comparable period of the prior year. Most notably, gold production increased 28%, primarily due to Salobo and Constancia. Sales volumes amounted to 143,000 GEOs, a 31% increase relative to the comparable period of the prior year, primarily due to higher production levels, coupled with relative changes in ounces produced but not yet delivered. This increased sales volume, coupled with a 6% increase in commodity prices, resulted in revenue rising by 38% to $297 million. Of this revenue, 64% was attributable to gold, 32% to silver, and 2% to each of palladium and cobalt. As at March 31, 2024, approximately 120,000 GEOs were in PBND, representing approximately 2.3 months of payable production, consistent with our expected range of 2 to 3 months. G&A expenses amounted to $10.5 million for the first quarter, and the company continues to anticipate G&A will total $41 million to $45 million for the year, excluding share-based compensation as well as donations and community investments. Adjusted net earnings amounted to $164 million, with a $59 million increase from the prior year, due primarily to the higher gross margin coupled with lower stock-based compensation. Despite the persistent inflationary environment and thanks to our predictable cost structure, we continue to deliver robust cash operating margins in the first quarter, resulting in cash flow from operations of over $290 million, an increase of 62% from the prior year, driven primarily by higher sales volumes. We have declared a quarterly dividend of $0.155 per share, a 3% increase from the prior year. During the quarter, Wheaton made total upfront cash payments of $462 million, $450 million of which was related to the Platreef and Kudz Ze Kayah streams, with the balance relating to the DeLamar and Mt. Todd royalties. When coupled with cash generated from operating activities, our overall net cash outflows amounted to $240 million in the first quarter of 2024, resulting in cash and cash equivalents as at March 31 of $306 million. Additionally, subsequent to the quarter, the company disposed of its investment in Hecla Mining for gross proceeds of $177 million. This cash balance combined with the fully undrawn $2 billion revolving credit facility, and the strength of our forecasted operating cash flows, positions the company exceptionally well to satisfy its funding commitments and provides us with the financial flexibility to acquire additional accretive mineral stream interests. Lastly, I would like to provide an update on global minimum tax. As previously disclosed, the company does expect its income generated outside of Canada to be subject to a 15% global minimum tax. While we continue to anticipate that the tax will be retroactive to January 1, 2024, Canada has not yet enacted the legislation and as such, the company has recorded no current tax expense associated with GMT in the quarter. For reference, in the first quarter, the wholly owned foreign subsidiaries, which reside in jurisdictions where the GMT is expected to apply, had net earnings of $165 million with 15% of such amounts amounting to $25 million. We will recognize the tax expense associated with the GMT in our consolidated financial statements in the appropriate period relative to when the legislation is enacted. As such, assuming that the legislation is enacted in its current proposed form, we will record multiple quarters worth of GMT in the quarter that such enactment occurs. That concludes the financial summary and with that, I will turn the call back over to Randy.

Thank you, Gary. In summary, Q1 was a very strong start to the year for Wheaton, distinguished by several key highlights. We achieved robust 3-month revenue earnings and cash flow and declared a $0.155 quarterly dividend aligned with our new progressive dividend policy. Our pipeline of development projects was further derisked by construction advancements and the receipt of various key permits by our partners supporting our impressive organic growth profile of over 40% by 2028. We continue to maintain low and predictable costs which, when coupled with our leverage to increasing commodity prices, result in some of the highest margins in the entire precious metal space. Our balance sheet also remains strong, providing ample capacity to add accretive high-quality streams into our portfolio. And lastly, we take pride in being a leader amongst precious metal streamers in sustainability, and by supporting our partners and the communities in which we live and operate. So with that, I would like to open up the call for questions. Operator?

Your first question is from Ralph Profiti from Eight Capital. Please ask your question.

Thanks, operator. Good morning. Randy, getting back to Wheaton's roots in silver, prices have been very strong year-to-date. Just wondering what the transaction pipeline looks like for more of those silver-heavy deals. I would imagine those are still pretty rare to come by. And there seems to be a lot of gold with silver and vice versa in some of the transaction that you're making. But what is the transaction market startup we wanted to look at bringing more silver into the deal structure.

Yes, Ralph, you are correct. It is challenging to find quality silver projects. One thing that makes silver unique is that most of it is produced alongside lead-zinc operations. In contrast, a significant portion of byproduct gold comes from copper operations, and currently, we don't see many developments in lead-zinc. These metals aren't very popular right now. Therefore, we aren't observing much activity on the silver front. I'll let Haytham provide more insight into the opportunities that are available.

Sure. Thanks, Randy, and good morning, Ralph. Thank you for the question. If I look at the top 10 opportunities I have, probably at least a third of those have a fairly significant silver exposure. There definitely is silver out there. As Randy mentioned, there's not a lot of new silver; it's mostly relevant for balance sheet strengthening or repair.

Got you. Okay. And maybe I can just stay on the silver theme and maybe go to Wes and ask him about sort of the near-term mine plan for silver coming out of Peñasquito. So that looking over the course of 2024 Q1, we had a very good quarter on the silver side, and we're coming off of a strike-impacted second half last year, puts us in a position where, and you talked about the Chile Colorado Pit, we're currently tracking ahead of guidance. Just wondering what that cadence looks like on silver for the rest of the year.

Thanks, Ralph. They are starting to transfer back over to the Peñasquito pit later in the year here. So we will see a slight weakening of that as the year goes on, but it is fairly consistent through the year here. The overproduction there is still production, excuse me, from Chile Colorado through the year. So it will be fairly consistent throughout the year, but as they move back to Peñasquito, that is where they do get the higher gold grades and slightly lower silver grades.

Got you. Helpful. Thanks, everyone.

Thanks, Ralph. Thank you. Your next question is from Cosmos Chiu from CIBC. Please ask your question.

Right. Thanks, Randy, Gary, and team. Maybe my first question is on your production. Randy, as you mentioned, very strong Q1, 116,000 ounces. But you've maintained your full year guidance at 550 to 620. If I were to streamline it, but you know life isn't that simple. But if I were to multiply your Q1 by 4, I would get to a number that's higher than the top of your annual guidance. Could you remind us to the extent possible, Randy, what we should look for? I think Wes mentioned it; Peñasquito could come down a little bit. But what else can we look for in terms of quarter-over-quarter sort of production.

I mean, I'll let Wes add a little bit of color at the end of it. But what we do see is relatively consistent production over the course of the year. I think in the last quarter of the year, we were giving guidance to be a little bit more heavily weighted towards the back end of the year. But we have had some outperformance here, obviously in the first quarter. And we're not confident enough to adjust guidance in the sense of having that outperformance continue through the course of the year. But even if we stay on track, you're right, we're in a very good position to at least meet guidance if not exceed it. And so we just want to see a bit more strength behind that. So I don't know if Wes has got some color to add to that.

Yes, I would agree. I think after the first quarter, it's a little premature for us to get too excited about it. But I'm certainly very happy with the quarter. I mean, Constancia would be the other one that I mean, there is that volatility that kind of comes in and out of production there. So that'll be the other one that we'll have to walk through as the year goes on. And there is some change to production from Constancia through the year, but relatively consistent through the rest of the year is what we're expecting.

Sounds good. Maybe a quick question on global minimum taxes. As you mentioned, Gary, $165 million in net income from the subsidiary. I'm just trying to figure out how you calculated it. Is it as simple as say, the spot price for gold mine, say $430 an ounce cost, which is what it was in Q1, multiplied by all the stream houses going through a subsidiary? Or are there other deductions that you can take as well?

No, it's pretty much the former of those. We estimate the tax based on the accounting income generated outside of Canada.

So is there a potential, when it gets enacted that there are other deductions you can take before applying the 15%, or by this point in the time?

I mean, until the legislation is fully enacted, I think there's potential; we're not projecting that that's going to take place.

Okay. And as a follow-up, Gary, how's it going to work? I know that as you said, when it gets enacted, you will post an expense in your income statement, but this is also retroactive to January 1. So is there a potential that you have to make a lump sum payment at that point in time and including the $25 million from Q1? Is that how it works?

Well, we would have a lump sum expense, but the tax doesn't get paid for the income generated in 2024 until 2026. But if, assuming that the legislation gets fully enacted by June 30, we would have two quarters of global minimum tax flowing through our Q2 results. If it doesn't get enacted by June 30 and gets enacted by September 30, then we would have three quarters of the GMT going through our third quarter results.

One of the keys with Cosmos is that we don't actually make the payments until 2026. That's how it appears it will be structured.

Got it. Thanks, Randy, Gary and Team. That's all the questions I have, and have a good weekend. Thanks.

Thanks, Cosmos.

Thanks, Cosmos.

Thank you. Your next question is from Brian MacArthur from Raymond James. Please ask your question.

Good morning, and thank you for taking my question. Again, it goes back to what you were just answering, Gary, with Cosmos. So just so I'm really clear on this. Everything we're talking about is accounting. So from a cash basis, if that's what we're focused on, really all we need to think about is assuming this tax gets enacted this year, i.e., 2024, you'll just pay 15% cash taxes on 2024 income in 2026. Is that the way I should think about it?

On the income generated outside of Canada.

Right? This is the majority. Okay, so from a peer tax basis, I get it, we want to make sure everybody understands this is accounting, not cash, but there's really no cash effect this year.

That's correct.

Perfect. Thank you. Maybe just the other question following up, was asked earlier about, obviously Salobo did very well, and you've got this ramp-up volume through the middle but you've got grades coming off. And I know you probably don't want to revise anything yet this year. But do we expect Q1 production at Salobo to continue throughout the year?

I'll let Wes answer that one.

Earlier, we observed slightly better grades than anticipated at Salobo in Q1. However, as expected, the grades will decline as the year progresses due to their position in the pit. Nonetheless, the production has been quite strong, especially with Salobo III showing positive results. At this time, we don't feel confident enough to adjust our forecast, but the outlook for the remainder of the year is encouraging.

So that would be positive reconciliation or just they have me in a different part of the ore body that you got better-than-expected Q1, or could you comment?

Positive reconciliation.

Perfect. Thanks very much for answering my questions.

Thanks, Brian.

Thank you. Your next question is from Tanya Jakusconek from Scotiabank. Please go ahead with your question.

Good morning, everyone. I thought today went well. Thank you for taking my question. I wanted to follow up on the operational side. We discussed Salobo and Peñasquito, and I believe Mart also mentioned during their call that production was fairly consistent throughout the year. The aspect I wanted to revisit is the quarter-over-quarter improvement we talked about last quarter. Is that still the way we should be viewing that asset?

Yes, absolutely. As those undergrounds come more online, we will see quarter-over-quarter improvement there, and that is what’s forecast for the rest of this year. And certainly, we saw very good performance in Q1, really ahead of what we’ve been expecting. So I think we can continue to see that growth through the year.

Okay. And then I think what Randy mentioned the 48, 52, first half, second half, looks to be more of a normal distribution. Are there about to the next three quarters, would that be a safe assumption?

Yes. Based on what we see right now, it's likely about a 50-50 chance. If we observe some outperformance in the latter half, we will certainly evaluate it at the end of the second quarter and decide whether to adjust our guidance. However, we are definitely well-positioned to stay on track, and as Ralph pointed out earlier, we are in a very good spot to achieve a strong year.

Okay. Maybe just moving on to some of the financials, if I could. You have quite a number of investments? I think so, I think you’ve sold out all of your Hecla. Where does the rest of the investment portfolio stand? And how should we be thinking of that in terms of harnessing some cash?

Hi, Tanya. It's Haytham. Thank you for the question. I will say that the Hecla was a bit of an opportunistic sale, and we are happy with that transaction. Looking at the rest of our portfolio, the majority of our portfolio is with our streaming partners. Our equities held because we entered into transactions when we did the streams. Our philosophy at this point in time is we will hold those shares until our partners get up and running in advance. And if there's an opportunity to sell down the road, that's one we'll do it. We have no interest in selling those shares right now.

The primary focus on those types of investments is to be supportive of those partners to be a good, strong supportive shareholder. And so there’s no sense in putting pressure on them when they're going through the development phase on their projects. So it is a longer-term commitment as is the streaming agreement itself.

That's good on the investments. I want to follow up on the transaction opportunities. You mentioned that you're considering up to $500 million of streaming opportunities. Can you share any thoughts on additional platinum palladium opportunities? I believe that Stillwater may not be able to take on another ROSE or stream, but perhaps there are other options in South Africa or their gold assets. I understand you're not interested in lithium, so could you comment on how that fits into your portfolio?

Sure. I mean, I will keep it simple. We are always looking to add precious metals, with gold and silver being the primary two fresh mills. If we can add gold or silver alongside with platinum or palladium to top it off, that's something we could consider. You're right, I don't think we would increase the Stillwater stream there, but there are other opportunities throughout their portfolio that they are considering.

Saba is a good, strong partner of ours. We've had a great relationship with Neil and the team there. And so we are hopeful that we can grow that relationship as we are always hopeful with all of our partnerships. They have quite a broad selection of assets there, and we're sure we can help them unlock some value there somewhere.

Yes, on the balance sheet repair. So, yes, thank you for that. And then maybe just circling back again on the opportunities, I know I asked all the time all of these big opportunities for balance sheet repair that keeps coming up on some of the bigger non-bulk companies and asset sales for the new Crest, Newmont portfolio, et cetera. et cetera. Haytham, I think you mentioned you were looking at 10 or 20, I forget how many you mentioned you were looking at of your deal …

Yes, I mean we always have at least a dozen on the go. Tanya, we're probably up closer to 15 right now. Of those, I would say there's probably a handful that are fairly sizable. But in this environment, there's no guarantee that the stream will actually get done, but it is, I guess, enlightening to see that streaming is measured alongside debt, equity and other forms of capital as well. So there's definitely people kicking the tires, and we're there trying to get involved.

We are happy to see the equity market waking up a little bit and starting to see some support on that side because we've been strong believers that streaming can be the only source of capital. It should be standing alongside a nice balanced spread on that capital. And so happy to see a little bit there because that's going to open up some opportunities just in that sense, standing alongside some equity raises to fund these developments.

And the bigger deals, you said you have a handful of those, would be the plus $500 million deals. Can I assume those are pure streaming? Or should I be thinking that there's equity components plus debt components to total plus 500? Or should it be a simple streaming structure?

Sure. Most of those are focused on streaming structures. When considering opportunities of that magnitude, typically, the other party prefers to avoid dilution and has their own access to debt. For the smaller opportunities, there are a variety of financing mechanisms to consider alongside streaming.

We don't see much activity in the royalty space as royalties fluctuate. Streaming has become a more appealing way to raise capital compared to royalties. We observe existing royalties being traded, but not many new royalties are being created, particularly for advanced projects. If some are pursuing royalties, it's usually at a very early stage, essentially creating royalties just to eventually incorporate them into a portfolio for potential sale to companies like ours.

Okay. Well, we'll wait for those. Appreciate you taking all my questions and great quarter. Thank you.

Thanks, Tanya.

Always a pleasure, Tanya.

Thank you. Your next question is from Richard Hatch from Berenberg. Please ask your question.

Yes, thanks. Good morning Randy and team. Thanks for the call. And just got a couple of questions. Just firstly, on the Hecla point, my numbers you made about 50% on that trade. So it's a good deal. But is there any tax that you've got to pay on the sale of those shares or anything we need to be working in there or not?

We will have a tax liability associated with that. It will be included at 50% and subject to a 27% income tax.

So standard capital gains of 50% of the gain is taxed at a 27% rate. So the net effect is about 15.5% on the total.

Yes, it's great to see the Salobo asset performing better again. Could you provide any insights on the expansion case from Vale or anything else you might be able to share about that?

Oh, I see. Yes, the current focus is on reaching the next phase of the expansion payment, and they're working their way toward that. Whether they achieve it this year or next year is still unclear. They are continuing to improve on Line 3, but there is still some work to be done. However, this quarter, they outperformed their own expectations. Given that, we believe they are progressing well toward meeting those targets. Once the next phase is completed, we will be looking at the high-grade bonus kicker, which starts in the year after they fulfill Phase 2 of the main expansion payment. If they meet certain objectives on an annual basis, we will make an additional payment to Vale for satisfying those requirements. This won't start until next year at the earliest, depending on when they finish Phase 2 of the main expansion payment.

Yes, I think just to add on to what Randy said there. I mean, really, the focus right now is on getting Salobo III up to its full capacity and really having Salobo I and II built up there as well. The high grade is really an expansion on the open pit and getting some more equipment going in there. And that's really once they get those plants up and running, then the focus will move over to the mine and then getting that going.

And just on that grade upside, are you able to give us any kind of a feel for what kind of higher grade potential we could be seeing from next year if they go down that road?

The challenge is that it depends on how much they grow their mobile fleet and how much they prioritize low-grade stockpiling. There are several factors they need to balance, including stockpile capacity. If they increase the low-grade stockpiling, they could significantly raise grades. Ultimately, it comes down to their fleet expansion in the pit, which will influence the grades they can deliver to the mills.

Yes. Okay. Got you. And then last one is just on Mineral Park, I think if I look at the MD&A, you've got $150 million that you could deploy into that one this year. Any kind of steer on timing on that, please?

It looks like it's on track. The work is moving forward, and we are pretty excited about it. It has consistently delivered more silver than expected in the past, and we anticipate similar results this time. What is particularly exciting is that the current ownership group has identified and is addressing the challenges the project faced previously. We believe it will be a valuable addition to the portfolio. We are pleased with this group; they have effectively identified the challenges and are directing funds appropriately to resolve them. We fully expect it to come online within a couple of years.

And that $150 million will be provided in stage payments, right? It's not all one lump sum. It will be provided over, I would say, three or four different payments, with the last one being $40 million.

Yes. Got you. Okay, fine. Sorry, while I've got you that’s something that could be a Q2 outflow? Or is it too early to say that yet?

Yes, it could be Q2.

Okay. Helpful. Thanks very much! Much appreciated.

Thanks, Richard, and thanks, everyone, for your time today. We are pleased to report a strong start to our 20th anniversary year here at Wheaton. Wheaton's high-quality portfolio of assets, sector-leading growth profile and commitment to sustainability provides our shareholders with a solid outlook for the future and one of the best vehicles for investing in the gold and precious metal space. As we celebrate our 20th anniversary throughout 2024, I am sincerely thankful to all of our stakeholders for being a part of Wheaton's success, and I truly look forward to a bright future together. We look forward to speaking with you again soon. Thank you.

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