Earnings Call Transcript - WPM 2026-11-06

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals' 2026 third 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 one on your telephone keypad, or type your question in the Q&A box of the webinar. If you would like to If you want to withdraw your question, press star 1 again.

Emma Murray, Head of Investor Relations

Thank you.

Operator

I would like to remind everyone that this conference call is being recorded on Friday, November 6, 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.

Emma Murray, Head of Investor Relations

Thank you, Julianne. Good morning, ladies and gentlemen, and thank you for participating in today's call. I am joined today by Hazem Hodale, Wheaton 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 presentations 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. 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 Hazen Podolay, Wheats' President and Chief Executive Officer.

Haytham Hodaly, CEO

Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Whedon's third quarter results of 2026. Whedon's momentum continues in the third quarter, supporting a record-breaking first nine months for the company. Year-to-date, we have delivered record production, sales volumes, revenue, earnings, and operating cash flow. Our portfolio of long-life, low-cost assets produced 231,000 gold equivalent ounces in the third quarter, led by our operating assets, including Solobo, Antamena, and Penasquito, together with the continued wrap-up of our development assets, keeping us firmly on track to achieve our 2026 production guidance range. Our corporate development team continues to evaluate a robust pipeline of opportunities while maintaining the discipline to pursue only the most accretive transactions. At the same time, the quarter was exceptionally active across our portfolio, with a series of catalysts that further de-risk our growth pipeline and mark meaningful progress towards future growth. Valley Base Metals announced plans to implement a coarse particle flotation circuit at Solobo, an investment that is expected to add 6 million tons to Solobo's annual over-processing capacity, and one that underscores Valley's long-term commitment to the operation. In Cote d'Ivoire, Montage Gold achieved first gold pour at its Kony project, and in Ethiopia, Allied Gold has begun production at its Kermuk mine, marking the transition of two key development assets into production. This week, B2 Gold announced that they have completed Phase 1 upgrades to the fixed crushing circuit at the Goose project in Nunavut. We also received our first deliveries related to Ivanhoe's plattery project in South Africa, an important step as that project continues to ramp up. Furthermore, HUD-Bay approved construction at the Copper World project in Arizona, a significant milestone as this long-life asset advances towards production. And in Australia, KGL Resources approved a final investment decision for its Gervois project. Collectively, these catalysts reinforce our confidence in Wheaton's sector-leading organic growth profile of 50% by 2030. That growth is already embedded in our existing portfolio and is not reliant on future transactions. Our balance sheet remains strong, with approximately $3 billion in total liquidity between cash on hand and our revolving credit facility as of September 30th. Together with our robust forecasted operating cash flows, we believe this provides ample flexibility to fund all outstanding commitments and pursue new accretive streaming opportunities. Importantly, we remain disciplined in employing that capital. Our corporate development team continues to see healthy demand for streaming with a focus on high-quality opportunities that are structured to enhance our existing portfolio and further strengthen our growth profile. At our Investor Day held during the quarter, we highlighted what we call the Wheaton Difference, showcasing how our focus on high-quality assets, superior structuring, and strong partnerships underpins our disciplined approach to capital allocation. Turning to sustainability, innovation remains critical to advancing more efficient and sustainable mining practices. We have been encouraged by the submissions to our third annual Future of Mining Challenge, which is focused on mine optimization and reducing land impacts. Three finalists are expected to be announced in February, and the winner selected in March 2027. With that, I would now like to turn the call over to Wes Carson, our Vice President of Mining Operations, who will provide more detail on our operating results. Wes?

Wes Carson, Other

Thanks, Nathan. Good morning, everyone. Overall production in the third quarter was 231,000 gold equivalent ounces, a 13% year-over-year increase, primarily driven by the addition of the BHP Antimena stream, together with new production from Hemlo, Phoenix, Platte Reef, and Mineral Park. In Q3, Slobo produced 65,800 ounces of attribute. Good morning, everyone. In Q3, Antimena produced 2.7 million ounces of attributable silver, an increase of approximately 60% relative to Q3 2025. The increase was primarily driven by the newly acquired BHP Antimena stream, which increased the company's share of silver production in Antimena from 33.75% to 67.5% effective April 1, 2020. The increased production share was partially offset by lower silver rates, which were attributable to pit sequencing with a greater portion of copper-only ore processed during the quarter relative to copper-zinc ore. On September 26, 2026, Montage Gold reported that it achieved first gold pour at its Coday mine, on budget and ahead of schedule. Montage reported that the oxide circuit is expected to reach commercial production in Q4, 2026, while construction of the hard rock comminution circuit remains on budget and on track for completion. Several development projects continue to ramp up in Q3 2026, including Mineral Park, Phoenix, and Platte Reef, with commercial production at both Phoenix and Platte Reef expected. Akumuk Allied Gold reported that ore had been introduced into the processing plant and the mine is now in production, ramping up into the end of the year, with commercial production expected before year-end. We also saw significant de-risking across the rest of our development pipeline. At Copperworld, Hudbay and Mitsubishi announced the results of the Definitive Feasibility Study, and formally approved Earlier, the KGL Resources Board approved the final investment decision for the Javois project, which is fully funded with first concentrate production targeted for the first half of 2028. At Marathon, Generation Minding commenced construction following the earlier announcement that it had secured final funding, with early works expected to run through Q4 2026 and And into 2027. With Coney and Cormac now transitioning into production, Gervois targeted for the first production in 2028, and Copper World for the second half of 2029, these catalysts are expected to continue to de-risk the development pipeline that underpins our industry-leading growth profile. Wheaton's production outlook for 2026 remains unchanged. With strong year-to-date production of approximately 640,000 GEOs, we remain well-positioned to achieve our annual production guidance of 860... 140,000 GEOs and maintain a strong production for Looking ahead, we expect annual production to grow at an industry-leading rate, reaching 1.2 million GEOs by 2030, with average annual production forecast to remain at approximately 1.2 million GEOs from 2031 to 2035. That concludes the operations overview, and with that, I'll turn the call over to this. Thank you, Wes.

Vincent Lau, CFO

Production in the third quarter was 231,000 GEOs, a 13% increase year-over-year, driven primarily by the addition of the BHP Antimena stream and continued contributions from newly operating assets including Hemlo, Phoenix, Platte Reef, and Mineral Park. Dill's volumes were 192,000 GEOs, a 19% increase from the prior year. At the end of the third quarter, the produced but not yet delivered, or PB&D, balance was estimated to be 179,000 GEOs, representing 2.6 months of payable production. This represents an increase from the prior quarter due primarily to the timing differences between production and sales. Looking ahead, we expect increased production in the fourth quarter to result in a slightly higher PB&D balance. with higher sales volumes expected in the first quarter of 2027 due to the timing differences between production and sales. Strong commodity prices, together with higher sales volumes, generated quarterly revenue of $772 million, an increase of 62% compared to the prior year. This increase was driven by a 36% increase in the average realized gold equivalent price, combined with a 90% increase in the GEO's soul. Of this revenue, 51% was attributable to gold, 46% to silver, and the remainder to palladium and cobalt. Net earnings increased by 12% from the prior year to $410 million, while adjusted net earnings increased by 46% to $410 million, resulting in year-to-date records across revenue, net earnings, and operating cash flows. These results highlight the strength of our asset base and the ability of the streaming model to translate higher commodity prices into significant cash flow. During the quarter, we generated approximately $645 million in operating cash flow and made approximately $87 million in upfront payments related to El Domo and Armado. We also made a quarterly dividend payment of approximately $88 million and repaid $372 million under our revolving credit facility. As a result, net debt declined from approximately $1.9 billion at the end of the second quarter to approximately $1.5 billion at the end of the third quarter, demonstrating the strength of our gas generation and our capacity to rapidly repay debt. At September 30th, we had approximately $146 million in cash on hand, $1.6 billion of debt outstanding under our term loan and revolving credit facility. With our revolver nearly repaid, we intend to maintain the term loan to preserve liquidity for potential near-term opportunities, while retaining significant flexibility to fund our existing commitments. Given the strength of our production outlook and high-margin business model, we expect to continue to reduce our net debt and return to a net cash position in the near term, while remaining well-positioned to pursue additional creative stream acquisitions. This concludes the financial summary. I'll now hand things back over to Hayes.

Haytham Hodaly, CEO

Thank you, Vincent. In summary, Wheaton's strong momentum continued through the third quarter, contributing to a record-setting first nine months. Year-to-date, we achieved records across productions and sales volumes, revenues, earnings, and cooperating cash flow, reflecting the quality and strength of our portfolio. Our growth pipeline delivered on multiple fronts, with first gold power at Kone, the start of production at Kermuk, the constructional approval for Copper World, FID approval at Javois, and the planned implementation of a coarse particle flotation circuit at Solobo, which represent just a few of the catalysts we see in our growth profile. Our balance sheet remains strong, providing the flexibility to fund all of our commitments while pursuing well-structured, accretive opportunities. And as the pioneers of the streaming model, we continue to believe Wheaton offers one of the most effective ways to gain exposure to gold and silver with a growing dividend and a sector-leading growth profile. With that, I would now like to open up the call for questions. Operator?

Operator

Thank you. 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 Fahad Tariq from Jefferies. Please go ahead. Your line is open.

Fahad Tariq, Analyst — Jefferies

Hi, thanks for taking my questions. Just on the gold guidance for the year, I think if I do the math right, it implies a pretty significant pickup in the fourth quarter. Can you maybe touch on the contributing factors to that, and specifically on Solobo and what you're expecting on gold grades there? Thanks. Yeah, thanks for the question.

Wes Carson, Other

So, really, it is Slobo that is the main driver of... Of the improvement in the fourth quarter. And really what we're looking at there is just getting back into kind of the bottom of the pit. We did see in the third quarter, a slight drop in grades at Solobo, really, as they were forced to students from operational issues to move into phase five of the pit, which is a little bit lower grade. And that means really the fourth quarter here, we should see quite a significant grade improvement and expecting a strong. All the other assets are actually... Setting up pretty well for this work. We're expecting a strong goal.

Fahad Tariq, Analyst — Jefferies

Okay, and then just to follow up, is there any expected contribution from Kone or Kermuk in the fourth quarter, or is there going to be a more significant lag, and that'll be something more in the first quarter of next year? Thanks.

Wes Carson, Other

We may see some very small production from both those assets in the fourth quarter, but it's not currently in our forecast. So, if we do see some, it'll be fairly small.

Fahad Tariq, Analyst — Jefferies

Okay, that's it for me. Thank you.

Operator

Our next question comes from Brian MacArthur from Raymond James. Please go ahead. Your line is open.

Brian MacArthur, Analyst — Raymond James

Good morning, and thank you for taking my question. It just has to do with the restructuring of the flowboat PMPA. The $40 million gets paid in installments, and you mentioned that'll be up I've been running by 2029. But do you make any $8 million payments in that time period, or is that all post-2029, so I can think of these as two 20 million payments before 29 and then take all the eights out after? Is that how this works?

Vincent Lau, CFO

Thanks for the question, Brian.

Wes Carson, Other

Really, when we did the deal on the, of course, particle flotation, we actually removed those $8 million payments. So, that was to do with the high-grade option. So, there are now just the two $20 million payments, one at about 50% completion and one at completion of the CPF project.

Brian MacArthur, Analyst — Raymond James

Perfect. Thanks. And then, is there any... Do you have an option or anything if they decide to do what I would call the low before now as a result of this restructuring? Or do, if that comes up, do you just go back and set a new deal?

Haytham Hodaly, CEO

Well, Solobo 4, I mean, we'd love to see a Solobo 4 happen, Brian, I would say. That being said, there's no current plan to move forward with that, but they're always looking for ways to continue to grow that production. When you've got, you know, decades of reserve life, you're always trying to figure out a way to accelerate that production. So, you know, if there was, although there's no requirement in our contract to do so, if they made it

Vincent Lau, CFO

more economic for us to help, it was always something we would consider. Great. Thanks very much. That's very helpful. Thank you, Brent.

Operator

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

Cosmos Chiu, Analyst — CIBC

Thanks, Aetham and team. Maybe to follow on the valet, the coarse particle... The $40 million, as you mentioned, is in lieu of the $80 million that would have been paid on the high-grade proposal under the previous agreement. But I guess my question is, you've kind of quantified the coarse particle processing, the additional 6 million tons. How does that compare to what the benefit would have been with the high-grade? Is it about half? Is that why you're paying half? $40 million versus what would have been paid? $80 million under the high-grade proposal?

Wes Carson, Other

Thanks for the question, Cosmos. I wouldn't look at it in that way, really. I mean, the high-grade payment was really almost like an artifact of kind of what the original deal was when we negotiated Slowbro 3 and when we made the changes to that. That high-grade plan is something that really has changed quite a bit and has really integrated into the current planning with the significant increase in throughput. So, and really the way that you can look at it as they're actually feeding more material through, which means that you are getting significantly more metal. It doesn't change, I would say, the way that you would look at it between those two plans. The $40 million is really was calculated based on what the capital was to build that project and the benefit that Whedon was going to see out of it. So that's really how we came up with that number. It's not a, those two numbers are not directly. And you know what, the $40 million, the payback period of that to us is like a year and a half.

Vincent Lau, CFO

So it makes complete sense to be aligned on that and get that benefit together with Valet.

Cosmos Chiu, Analyst — CIBC

Great. Yeah, I like how, you know, you mentioned that it's an artifact because I remember it being signed. So, you know, that would make me an artifact too. In terms of – it's great to see that you've maintained your long-term guidance, 1.2 million geos. But I guess my question is, that's based on a gold-silver ratio of 60 to 1. We're not really at 60 to 1 at the moment. Maybe it's too early to ask, have you thought about what ratio you could be using when you put out your new five-year guidance, and could that change to 1.2 million?

Haytham Hodaly, CEO

So, yeah, it's a little bit early. Usually, we reassess that at the end of the year when we see how things are going early next year, but we are optimistic on the outlook for both gold and silver, and we do think silver will have a better recovery. I will say that we're fairly comfortable with the 1.2, but it does vary based on what that ratio is, but we do have at least another three or four different development projects in the pipeline over the next five to six years that are also kicking in, whether it's generation mining, their marathon project, Whether it's the Jervois project, whether it's the Cangrejos project that CMOC's putting together, there's a lot of additional growth that's not already in that number, so we would hope to be able to at least maintain that number going forward, but again, it all depends on where that ratio ends up.

Cosmos Chiu, Analyst — CIBC

Great. And then maybe one last question. Looking wider, we're seeing some buy-downs at not so much wheat and precious metals, but at some of your competitors, Great Bear or Cote last night. Could you remind me, Haytham, if there's any potential buy-downs near term within your portfolio?

Haytham Hodaly, CEO

So, Cosmo, that's a great question. And the reason I'll say that is because one of the things we've always resisted is having buy-downs. The only time we provide buy-downs is in the event of a change of control, because a lot of the projects that we have actually funded, the development stage projects, they're always looking for ways to either, you know, build value and sell the asset or continue to grow. What we've found and what we provide is only a one-third buy-down in the event of a change of control for a limited period of time. And we don't, at this point, see anything that is going to kick in here in the next few years that's going to activate that. So we're pretty comfortable with our portfolio as it stands.

Cosmos Chiu, Analyst — CIBC

That's great to hear, Haytham, and thanks for answering all my questions. That's all I have. Have a great weekend. Thank you.

Vincent Lau, CFO

Thank you, Cosmos. You too.

Operator

Our next question comes from Daniel Major from UBS. Please go ahead. Your line is open.

Daniel Major, Analyst — UBS

Hi, Haytham team. Thanks very much for the questions. Yeah, first operational question. Newmont indicated on their call they expected a sharp reduction in silver production in Q4. But then also at a group level about a 30% reduction in silver production in 2027, which essentially implies lower output from Penasquito. Can you give us a theory on how you're seeing that profile specifically at Penasquito Q4 and directionally into next year? And then the second question just on that in terms of the sales profile, both. Panascato and Salobo have seen pretty sizable build, sort of, well, delta between sales and production. Is that going to unwind in Q4?

Vincent Lau, CFO

Yeah, thanks for the question, Dan.

Wes Carson, Other

So, both of those on Penasquito are integrated into our current plans. We are expecting to see a fairly significant decrease in silver production at Penasquito. Really, that just ties into the way that the production is set up. And into next year as well, where they're starting to feed some of those carbon-rich stockpiles in. They've got a fairly significant amount of that that's in the plan next year as they continue on with stripping in the Pinyasco pit. So both of those are currently integrated into the production profiles for this year and next.

Vincent Lau, CFO

And on the PB&D, you know, we're currently sitting at about 2.6 months as a whole, as a portfolio. So that's kind of on the lower end of the range. As I said earlier, we do expect a slight increase going into Q4, just for the higher production coming from Silovo. So not a material increase, but a slight increase to our overall PB&D balance heading into year end.

Daniel Major, Analyst — UBS

Okay, so we shouldn't see a significant unwind. Yeah, slight build. Okay, that's clear. And then on Antimena, yeah, I mean, it feels like underlying production lagged a little bit behind expectations this year. Can you give us the theory on whether you'd expect that to... Benefit where you're previously thinking on 2027, and directionally, yeah, how should we be thinking about, Antamina, your share of silver into next year?

Wes Carson, Other

Yeah, I would say for this year, in Q3, we actually saw quite a significant improvement as they began to get into some of that more boronite-rich ore. And there was quite an uptick, actually, in Q3 on that. And we expect that to continue into Q4 here with really kind of strong production into Q4. There is a fair bit of that material that's in and around that old in-pit crusher that they're starting to take out, and that is what we're starting to see come out, and that carries into Chile. Well into next year and into the early.

Daniel Major, Analyst — UBS

Okay, so directionally, like adjusting for the, or stripping out the change in ownership, you'd expect to sequentially hire production from Antimena in 27 versus 26.

Vincent Lau, CFO

No, it's actually scheduled to be a little bit less, but it's not materially less.

Daniel Major, Analyst — UBS

Okay. So broadly similar. Okay. All right. Thanks. Yeah, that's it for me.

Operator

Our next question comes from Derek Ma from TD Cowan. Please go ahead. Your line is open.

Derek Ma, Analyst — TD Cowan

Yeah, I just want to add on a couple questions that have already been asked. On Solobo, are we expecting higher grades from Q4 to flow into 2027 as well, or how should we be thinking about the grades?

Vincent Lau, CFO

In Q4, we're certainly expecting those higher grades.

Wes Carson, Other

For 27, it's a reasonably similar year, and we'll put that in as we look into the budget for next year, but it is a reasonably similar year next year.

Derek Ma, Analyst — TD Cowan

Similar to 2026 overall, not Q4.

Vincent Lau, CFO

Yes. Yes.

Derek Ma, Analyst — TD Cowan

Similar to 2026. Yeah. And then in terms of the approximate timing lag between production and sales, what does that look like specifically at Solobo and Penasquito?

Vincent Lau, CFO

Both are about two months.

Wes Carson, Other

That's generally your leg, and that's fairly consistent with most assets that have a concentrate.

Derek Ma, Analyst — TD Cowan

Great. Thank you. Thanks, Eric.

Operator

Our next question comes from Harrison Reynolds from RBC Capital Market. Please go ahead. Your line is open.

Harrison Reynolds, Analyst — RBC Capital Markets

Hi, good morning, Wheaton team, and thanks for taking my questions and appreciate the detail provided so far. Good to see a number of operator updates across the portfolio. I wanted to follow up on the long-term guide of 1.2 million ounce GOs and setting aside the commodity price ratios and just get a reminder of what's currently embedded in that guidance from an ops standpoint. You know, I look at the Salobo course particle flotation and some of these other aggregate upsides between Constantia mill expansions and Taraparu advancing to a construction decision. You know, what other, you know, op items lay outside the guidance?

Haytham Hodaly, CEO

Sure. I mean, just to highlight what's in the guidance, I mean, we've talked a lot about that, whether it's, you know, the ramp-ups at Platte Reef, Phoenix, Mineral Park, Coney, Kermuk, El Domo. Copper World has now made an FID decision, small amount of production from Spring Valley and Santo Domingo. What we haven't really factored in is, you know, significant contributions from some of the other development projects, such as Ken Greyhouse, True Voice, that hasn't been factored into our analysis yet, and Marathon, which just recently announced the FID decision as well. And that's just to mention a few. There's probably about three others or four others that I can continue to get into. It's probably best if you want a little bit more color on that, maybe just give Emma a call after. She can go through the numbers with you.

Harrison Reynolds, Analyst — RBC Capital Markets

Got it. Thanks. And just as a follow-up, as you work through the remaining committed payments here and deleveraging, at what point does the balance sheet open up for the next large-scale transaction from where you sit today?

Haytham Hodaly, CEO

Sure. I'll let Vincent ask that, but I will say one thing. We do have currently $3 billion in capacity, so the balance sheet's always open for us, but I'll let Vincent talk a little bit more about our debt.

Vincent Lau, CFO

Yeah, we don't feel at all constrained currently, given the opportunity set. As Haytham has laid out, we have a lot of liquidity. Our revolvers... Almost fully repaid at the end of Q3. So $2.5 billion is immediately available. And then we have a $500 million accordion on top of that. And as we continue to generate significant cash flow, we do expect to be back in the net cash position towards the end of next year, early 2028. So lots of capacity and growing going forward.

Haytham Hodaly, CEO

So by the end of next year, we'll have over $4 billion in capacity and growing every month. So I'm very excited about the way things are going, and we're a growth company, so we're going to continue to try and deploy a lot of the capital we generate back into high-quality accretive street transactions.

Harrison Reynolds, Analyst — RBC Capital Markets

Great. Sounds good. Thanks for taking my questions.

Vincent Lau, CFO

Thanks, Harrison.

Operator

Our next question comes from Martin Pradier from Veritas Investment Research. Please go ahead. Your line is open.

Vincent Lau, CFO

Yes, hi, Mark. Go ahead.

Martin Pradier, Analyst — Veritas Investment Research

Yes, sorry. In terms of Vale, could you explain to us how much you expect from that in terms of payments to Wheat and Prizes Medal in 2029 and 2030?

Vincent Lau, CFO

Are you asking for what the relative level of

Haytham Hodaly, CEO

contribution will be from Solobo? Is that your specific question?

Martin Pradier, Analyst — Veritas Investment Research

Yeah, from the incremental, right? This new particle flotation. So is that expected to increase 40,000, 45,000 ounces, or how many ounces? That's what I'm looking for.

Haytham Hodaly, CEO

No, I think what we've stated in the past is we do expect a portion of that's already factored in to the overall numbers. What we would expect to see from Solobo going forward is a number somewhere around 300,000 ounces on a more consistent basis for the next few years.

Martin Pradier, Analyst — Veritas Investment Research

Okay, so it's sort of upsetting the depletion and the lower grade, but not really increasing production.

Vincent Lau, CFO

It increases by around 5%, but yeah, it's not a huge number. Okay.

Martin Pradier, Analyst — Veritas Investment Research

And the other question I had is... And sort of the same for...

Vincent Lau, CFO

For Kermuk, we're expecting, you know, probably about under

Haytham Hodaly, CEO

10,000 ounces in Kermuk for 2027, and somewhere probably 50% higher than that in 2028. And that will continue to grow over the next two years after that as well. And that's, keep in mind, that's based on their existing mine plan of 6 million tons per annum. They're already talking about going to 6.4 million tons per annum, and that's not factored into those numbers. On KONE, we're expecting, well, that's where, KONE is actually very interesting because they initially, when we first entered into this transaction, we thought we were going to get somewhere close to 300,000 ounces a year for five years, then it was going to drop off. With the stream transaction and the financing, we provided them the ability to go out and drill and add additional ounces, and they found additional higher grade material. Now they're talking about at least 350,000 ounces to their account. For at least 10 years and could potentially grow even more. So you can back-calculate what we would think our production will be out of cone 8 over the next couple of years as they ramp up.

Martin Pradier, Analyst — Veritas Investment Research

Yeah, I was trying to understand the ramp up 20, 26, 27, 27, 28.

Haytham Hodaly, CEO

Yeah, I think if you factored in like 50 to 50 plus ounces, 1,000 ounces in 2027 and 60 plus thousand ounces in 2028 and growing after

Vincent Lau, CFO

that at a similar rate for at least another year. You're welcome. Thanks, Martin.

Operator

Our next question comes from Lawson Winder. Please go ahead. Your line is open.

Lawson Winder, Analyst — Bank of America

Thank you very much, operator. Good morning, Hatham and team. Thank you for today's update and taking the questions. Can I just touch on the deal pipeline? And just one thing I wanted to kind of understand a little bit better. When you look at the potential transactions, how would you describe the urgency of some of those in the current pipeline? And then maybe if you could just touch on some additional color on the depth of the pipeline and then just the range of sizes in the pipeline.

Neil Burns, Other

Professor, Neil. Yeah, sure. Thanks for the question. I hate to mention, Don, the team's been extremely busy. As we mentioned, the last call, we had about 20 opportunities in the pipeline at that time. We've narrowed that down to just over a dozen, because upon detailed review, many didn't meet our criteria for investment. The weighting currently is still towards development projects and gold streams. Range and value has increased slightly before. We stated it was roughly $200 to $500. It's about $300 to $600. So, very similar slight increase. As I said, most are development type of opportunities.

Haytham Hodaly, CEO

In terms of your question, re-urgency, I mean, everybody's looking for ways to unlock value. I think the transaction we did earlier in this year with BHP, a lot of large diversifieds are looking through their portfolios to see if there's some value they can extract. That being said, you know, that takes time. It took us a while to get BHP across the line, and it takes time for others to understand how the streaming model works and how the actual mechanism works in terms of the credit process, et cetera. I will say that from an opportunity perspective, we're seeing some existing operations who are trying to unlock immediate value, but the majority of the ones that we're focusing on are the larger development stage opportunities at this point.

Lawson Winder, Analyst — Bank of America

Okay, that's very helpful. Your comments on your capacity to add $3 billion of additional debt to effectively consummate larger transactions, it's definitely helpful. But I mean, it still strikes me as exceedingly conservative. So like rough numbers, that's still below one and a half times trailing net leverage on today's numbers, on today's trailing EBITDA. So think about it another way. From a net leverage point of view, how would you think about the capacity of your business to take additional debt?

Vincent Lau, CFO

Yeah, we very much view our business as a utility almost. We have good certainty on what the production is. The unknown is what the gold and silver price is. But what we do know, it is a very high margin, high quality cash flowing business. So on that basis, we can support some debt. And to your point, with even an additional $3 billion, we're only going to be at one and a half times leverage. And that's a level that we're comfortable with. You know, beyond that, we haven't really... There isn't a pipeline that's larger than that, but it just gives you a sense of the capacity we do have and the ability to fund deals internally with our own cash flows.

Vincent Lau, CFO

We're also adding

Haytham Hodaly, CEO

a couple of hundred plus dollars a month in free cash flow, so as Vincent said, we feel very comfortable at the levels that he mentioned there.

Lawson Winder, Analyst — Bank of America

Yeah, yeah, no, no, absolutely. You bring up a good point about the volatility of the underlying metal. I think it's an important consideration. So are you saying like one and a half is the maximum you think you would go? Or, I mean, personally, I think the business could take a much higher sort of like moment in time leverage ratio, given that it would be paid down over a quick period of time. But I mean, is that what you're saying? Like one and a half is kind of the max that you'd be comfortable with?

Vincent Lau, CFO

I think it's dependent on the environment and the situation we're in. So, there's no hard number that we look at. It's a variety of factors. But I would just say one and a half at current spot price is something we're very comfortable with.

Lawson Winder, Analyst — Bank of America

Okay. Okay. That's very clear. And then, you know, similar question on like just capital allocation. Your indicated dividend yield is something like 60 basis points right now. You know, it's relatively low, and I mean, that is a clear reflection of your success. I mean, on the other hand, your success would suggest an ability to very substantially increase the dividend from the current levels. Any thoughts on that, particularly going into, you know, early 2027 when the board will be meeting to consider the next dividend increase?

Haytham Hodaly, CEO

I know it's a great question. And we have increased the dividend three times in the last three. It is a progressive dividend. The most recent increase was over 18%. And you're right, we, you know, we do have the capacity to increase it. And we'll leave that to our discussions with the board in the early New Year. I will say that, you know, we are a growth company. And the number one thing for us to do is to continue to redeploy capital into accretive transactions to maintain that longer term growth. But, but you're not wrong in that, you know, the streamers in general, Don't pay out huge dividends because there's so many opportunities, but we are going to be generating strong cash flows. That's something we'll have to take into consideration.

Lawson Winder, Analyst — Bank of America

Okay, and then just finally, if I could ask on 2027, and thinking about the growth, I mean, across your portfolio, you have Kone, Kermut. Flat Reef, they're now producing, and then Blackwater, Marmado's ramping up. I mean, dare I say, Goose is, you know, that ramp up is looking to get sorted out in 2027. So everything points to a lot of growth potential. But are there any assets that you'd highlight where you'd expect some sort of substantial decline that maybe we're not thinking about that could offset what otherwise might be quite strong growth into 2027?

Haytham Hodaly, CEO

I would say looking at our existing production profile, if there's any drops like we're expecting to see, as Wes mentioned earlier on Penasquito, that will drop a little bit. But all that is already built into our profile. And Tamina as well, potentially maybe a slight drop there. But, you know, I think if you're looking at what we're guiding through, all those drops are built into our profile. But we do get five-year production profiles from all our existing partners, sometimes 10 years, and we factor those in with our own, obviously, adjustments based on what we think is actually going to happen there. So, you know, we're pretty comfortable with the guidance that we've given you guys in terms of our.

Lawson Winder, Analyst — Bank of America

Okay, sure. Thank you guys very much. Good quarter.

Haytham Hodaly, CEO

Thank you, Lawson. I appreciate it. And thank you, everyone, for your time today. Our record performance through the first nine months of 2026 reinforces Whedon's position as a premier low-risk option for exposure to gold and soda. Supported by a strong financial position, a disciplined approach to capital allocation, a portfolio of high-quality assets, and increasing visibility to our next phase of growth, we are confident in Whedon's outlook and our ability to deliver meaningful production growth over the coming years. We thank all of our stakeholders for the continued support as we work to close out another strong year and look ahead, building on this momentum in 2027 and the years to come. We look forward to speaking with you all again soon.

Vincent Lau, CFO

Thank you, and have a great weekend.

Operator

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