Wheaton Precious Metals Corp. (WPM) Q1 2026 Earnings Call Transcript

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Wheaton Precious Metals' 2026 First Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, then the number 1 on your telephone keypad, or type your questions in the Q&A box of the webinar. If you would like to withdraw your question, please press star 1 again.

Thank you.

I would like to remind everyone that this conference call is being recorded on Friday, May 8, 2026 at 11 a.m. Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Haytham Hodale, Wheat and Precious Metals President and Chief Executive Officer, Vincent Lau, Chief Financial Officer, Wes Carson, Vice President, Mining Operations, and Neil Burns, Vice President, Corporate Development. Please note, for those not currently on the webcast, a slide presentation accompanying this conference call is available in PDF format on the presentation page of our website. Some of the comments on today's call may include forward-looking statements. Please refer to slide two for important cautionary information and disclosure. Referred to on today's call or in U.S. dollars, unless otherwise noted. With that, I'd like to turn the call over to Haytham Hodale, Wheaton's president and chief executive officer.

Thank you for joining us today to discuss Wheaton delivered a strong...

Ladies and gentlemen, we will now conduct the question and answer session. If you would like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star one again. There will be a brief pause while we compile the Q&A roster. Our first question comes from Daniel Major from UBS. Please go ahead. Your line is open.

Hi. Hey, Simon. Thanks very much for the questions. Yeah, first one on Salobo, you mentioned the valet commentary and the coarse particle flotation. Can you just give us some just clarification on the catalyst in terms of permitting expected incremental GEO's contribution from Wheaton's side and any incremental capital required from your side? Okay, thanks. That's clear, thank you. um the the second one um yeah it's interesting you've got a position in australia now can you just give us a sense i mean you're relative to other regions it's not a region where there's as much streaming exposure are you seeing other opportunities in the region okay thanks and then just final uh model orientated question um could you give us any guidance on what you would expect the finance costs booked through the P&L in Q2 to be whether there's any additional costs associated with the debt drawdown, etc. What should we be expecting in Q2? Okay, so about 5% to roughly $2.5 billion for the P&L tax charge. Would that be reasonable? $30 million or so. Okay, cool.

Thank you very much.

Our next question comes from Tanya Yakuskonek from Scotiabank. Please go ahead. Your line is open.

Great. Thank you. I just wanted to continue on the modeling questions, if I could. I also think you have the global minimum tax payment as well that goes out in Q2. Is that correct? Okay. So, it's the two dividends. You've got the Antimena and the global minimum tax. So, we should, as you mentioned, expect to have just, you know, your debt start to, you really start paying down your debt let's say q3 q4 and then just um you mentioned a few mines that are going to be bringing up that uh production profile that i think you said was 45 55 first half second half so i have the mines that you mentioned that are going up obviously antimina with the acquisition you said salobo is going to do much better that moves up in the rest of the year as well from a production standpoint you've got your new mines that are coming on so that's that's great maybe to flag the ones that are coming off, if any.

We're pulling, they had some stockpiled material from Pompoconcia in Q1 that pulled up Gold Graves, so that's gone.

Noted, thank you. And then, I don't know, Haytham or team, maybe just again on this deal market again, in terms of the opportunities that you are seeing at biases every quarter. Sometimes it changes. But, you know, like in the previous quarter, you had mentioned that most of your opportunities were in the $200 to $300 million range and somewhere in the $500 to $1 billion all gold-silver. Is that still the sort of range I should think about? And is it still focused with construction financing on these large-scale copper projects and maybe gold projects as well? How should I be thinking about the range of companies for the sale of financing, the purchasers, I guess, for the sale of this? Are you also seeing any changes to the structure of the deals that you're looking at, or are the sellers now looking for different items to be included in the structures? I'm just wondering if those are changing at all, given the competition.

We understand what our competitors are doing. We try to stick to what has worked for us and what has worked for our counterparties that we actually stream with because it ends up being the easiest way for them to understand streaming and be able to actually deliver into the streaming agreement. So, you know, we will continue to look at security, guarantees.

Yeah, I was just wondering more if it's still the same sort of deal, Nathan, that we are going to see, you know, a portion of a stream and there's equity investment and then there's debt financing. I'm wondering if there's another component on top of that.

Well, so far, we've, you know, what we've done is we've, you're right, we've brought streaming. We provide a little bit of equity. Keep in mind, equity really only happens when they want it to. They need a lead order or something to that effect. We're not in it specifically for the equity. And then we do offer lines of credit stream to expand the existing stream then to do debt. So, you know, we kind of stay. Those are the primary mechanisms that we look at.

Besides Australia, has any other jurisdiction open for you?

It may not be. We're trying to get our foot in there.

Okay. So I'm hoping that the postal codes are ones that we recognize.

Question comes from Brian MacArthur from Raymond James. Please go ahead. Your line is open.

Good morning. Thank you for taking my question. It relates to the commitments going forward. So a couple of questions. With Santo Domingo, obviously you got some money back and you're going to pay it out in the future. Are there other deals that I need to think about that potentially happening or is that kind of a one-off in the portfolio? We're giving them an opportunity to delay payment analysis so i think my second one just relates to slowbo and obviously you were talking about potential going forward you have an eight million dollar ongoing payment um for 10 years uh which i believe is that you're in high grade um and originally you sort of didn't think you're going to pay it until 27 but in the fourth quarter you moved it in is that kind of fixed now, that $8 million starting 2027, 2028, or could that still change going forward as a result of this new stuff that's happening? Great, thanks. And my last question just relates to a little bit of accounting. So with the second Ancamina transaction, are you going to report it as two separate streams going forward, or is it all going to get put together so we'll just have a lot higher depreciation. And secondly, is there any different in tax structures for any of that going forward when we start to look at the second quarter results? Thanks. Perfect. Thanks. And then last question, just updated depreciation rates. Are we going to get those next quarter for the whole, all the assets? Thank you very much for answering all my questions.

Our next question comes from Cosmos 2 from CIBC. Please go ahead. Your line is open.

Thanks, Hatham and team. And congrats again on the appointment and a solid start to 2026.

Thanks.

Maybe my first question is on produced but not yet delivered. As you mentioned, it increased again in Q1. It's actually the fifth consecutive quarter where it's increased. I understand there's a lot of new startups, but I guess my question is potentially when could it reverse when could it you know when could you potentially see a drawdown in that balance uh the produce and not yet delivered and more specifically i guess i've seen it uh phoenix you're seeing a production for the first time in q1 plat reef you're seeing production for the first time in q1 for those two when could we see potentially see sales come through would it be sometime in 2026 thanks wes um maybe my other question i was going to ask about australia again but i think uh we have all the answers to it so maybe i'll ask about the other uh new uh royalty stream that you acquired uh spanish mountain uh i see that's a 1.5 percent nsr it is a royalty so you know historically i believe wheat and precious metal have preferred streams over royalties is that still the case and uh you know indiana is just really a unique situation here in Great. And then maybe one last question. You know, you've disclosed this in the past, but now it seems like Bill C-15 of the Budget 2025 has now been enacted as of March 26, 2026. Sounds like there's some amendments to existing transfer pricing regime under the Income Tax Act. I guess for someone that has covered wheat and precious metals for a long time and has seen transfer pricing as a point of contention in the past, is this something that we need to worry about? So I guess, Vince, you know, high level, what changed with Bill C-15? And then maybe one last question. And in your table of cash outlays for 2026, excluding Antimena, I believe I worked it out to a number of $496 million for 2026, of which you actually have paid a lot in Q1. You did Marimoto, $40 million, Kone after the quarter. The two big ones that are still sort of outstanding in terms of potential commitment for cash outlays is the rest of Spring Valley and El Domo. Can you maybe just remind us what might be the trigger for these payments? Great. Thanks again, Hatham, Vince, and Wes for answering all my questions. Have a great weekend.

Our next question comes from Richard Hatch from Barenburg. Please go ahead. Your line is open.

Thanks a lot. Hey, Hatham and team. Just a question. The Middle East conflict and the impact that's had on global markets, is that impacting your ability to write new business at all or not? Thanks.

No, not at all, Richard.

Very clear. Easy. Thanks.

Our next question comes from Martin Prattier from Veritas Investment Research. Please go ahead. Your line's open.

Thank you. My question is, are you changing the number for Salobo for the year? What is the expectation now with all these new things that are happening? There was a big difference between sales and production this quarter, especially in Salobo. Salogo, the production was down 3%, but the sales was down 30%. What should we think about that going forward?

Next question comes from John Tomazos from John Tomazos Very Independent Research. Please go ahead. Your line is open.

Thank you for taking my question. Looking back at the February Antimena transaction, $4.3 billion outlay, should we think of that as a unique once-in-a-generation sort of deal where you were already in the asset from the Glencore transaction a decade ago? You are intimately familiar, and it's a big lump of silver available right now as opposed to a developmental property. Or do you think there could be more transactions like this? Following up, a few weeks ago, I was doodling, and I tried to compile a list of 18 or 20 silver producers and 50 developmental companies. I Googled every company that had silver in their name. And the producers average an enterprise value, excuse me, market value of U.S. $8 an ounce, reserve and resource, including inferred. And considering the valuation of the producers, and I converted gold at 60 to 1, relative to the price you paid for Anamina, would it be cheaper just to buy a producing silver mining company? I know it's not your model, but the valuation differential is pretty large. It just struck me that it could be as good a deal, and at least they're in production and they're out there. Why do you think producers trade for $8 an ounce when the price is $80? Is the market only expecting $35 long term?

Close to 86% margin. You don't see that with producers.

Thank you.

Our last question comes from Josh Wolfson from RBC Capital Markets. Please go ahead. Your line is open. Good morning, Josh.

Yeah, thank you. Thank you. Just wanted to follow up on some of these syllable questions. I think earlier in the remarks, there was a comment about syllable grades expected to increase through the year. First quarter results were very strong from the asset. I'm wondering if you can disclose what the grade was that was processed or maybe what any factors were that drove the outperformance there. Thank you. Okay, thank you. And then further to extend that thought, would it be reasonable to assume that production would increase over the course of the year if grade is going to be increasing? Congrats on your upcoming quarterly results then.

Thank you.

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