Wheaton Precious Metals Corp. (WPM) Q2 2026 Earnings Call Transcript

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Nettles' 2026 Second 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 withdraw your question, press star one again.

Thank you.

I would like to remind everyone that this conference call is being recorded on Friday, August 7, 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, Julianne. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Hayden Podolay, Wheat and Precious Metals President and Chief Executive Officer, Vincent Lau, Chief Financial Officer, Wes Carson, Vice President of Mining Operations, and Neil Burns, Vice President of Workforce 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 board-looking statements. Please refer to important cautionary information and disclosures. 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 Lucille, Vice President and Chief Executive Thank you Emma, and good morning everyone.

Thank you for joining us today to discuss Wheaton's second quarter results of 2026. The second quarter closed out a record-breaking first half of the year for Wheaton. Through the first six months of 2026, the company delivered record performance across many of our key metrics, including production, sales volumes, revenue, earnings, and cash In an environment marked by commodity price volatility and cost pressures, these results reflect the continued strength of our high-quality portfolio and the resilience of the streaming business model. In the first half of the year, we achieved record production of 415,000 gold equivalent ounces and record sales volumes of 390,000 gold equivalent ounces, positioning us well to achieve our 2026 production guidance range of 860 to 940,000 gold equivalent ounces. Production in the second quarter was bolstered by the initial contribution from our expanded Anthemena Silver Stream and the continued realization of the company's growth strategy with incremental production realized from Hemlo, Phoenix, Flat Reef, and Goose. Turning to corporate development, we also continued to execute on our growth strategy during the quarter, completing several additional transactions that further diversify our portfolio. We closed the Anthemina Silverstream with BHP, a confining milestone for both Eaton and the industry, representing the largest precious metal streaming transaction ever completed. We announced our first ever streaming transaction in Australia, a gold and silver stream on the Jervis project, through our partnership with KGL Resources. We expanded our royalty portfolio through the Spanish Mountain and Chapango royalties, which also provide Wheaton with the right of first refusal on future financings, adding further optionality to our portfolio. Collectively, these transactions further strengthen our portfolio, expand our geographic reach, and broaden our counterparty base while maintaining the disciplined approach to capital allocation that has underpinned Wheaton's success. As of June 30, 2026, our balance sheet remains robust, with $100 million in cash on hand at quarter end and access to the undrawn portion of our $2.5 billion revolving credit facility, which together with the strength of our forecasted operating cash flows, provides strong flexibility to fund all outstanding commitments and allows us to continue to pay down our existing debt balance as well as the capacity to pursue additional accretive mineral stream interests. We remain committed to disciplined capital deployment, focusing only on the most accretive opportunities that are structured to generate meaningful, long-term value for all stakeholders. Importantly, Wheaton's growth is not dependent on additional transactions. Our existing portfolio already supports a strong organic growth profile of 50% by 2030, underpinned by multiple development assets advancing through construction, ramp-up, and optimization. Turning to sustainability, Wheaton was once again recognized among Corporate Night's Best 50 Corporate Citizens in Canada, a multi-sector accolade that we were proud to receive. During the quarter, we also launched our third annual Future of Mining Challenge, which will award $1 million to an initiative focused on advancing solutions for mine optimization and reducing land impacts across the mining sector. We look forward to engaging with innovators who are helping to shape the future of responsible mining, further demonstrated in our recently published 2025 Sustainability Report. 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. Thanks, Ethan.

Good morning, everyone. Overall production in Q2 was 202,000 GEOs, primarily driven by the addition of BHP's AntimenaStream, together with the new production from Phoenix, Hemlo, Merrill Park, Laffree and Goose. In Q2, Slobo produced 2,100 ounces of vitriol gold, a decrease of approximately 11% relative to Q2 2025, primarily the result of light base metals, disclosed that the coarse particle flotation is the key near-term growth driver at Slobo, supporting Slobo III's expansion from 12 million to 18 million tons per annum and a targeted total throughput of 42 million tons per annum. In Q2, Azimena produced 2.3 million ounces of attributable silver, an increase of approximately 56% relative to Q2 2025. The increase was primarily driven by the newly acquired BHP Azimena PMPA, which increased the company's share of silver production in Azimena from 33.75%. The benefit of the increased production share was partial, and the timing of planned maintenance as a scheduled July maintenance shutdown. The lower grades were attributable to pit sequencing, with a greater portion of copper-only ore processed. An increase in copper-zinc ore is expected to be processed in the third quarter. Q2 Blackwater produced 100,000 ounces of attributable silver and 5,900 ounces of attributable gold, an increase of 7% relative to Q2 of 2025, primarily the result. On August 4, 2026, Artemis Gold provided an update on the Phase I expansion of the plant's main plate capacity by 33%, from 6 to 8 million tons per annum. Artemis reported that the Phase Ia was 57% complete at the end of Q2's major works construction. Together, Phase Ia and EP2 are expected to expand 21 million tons, using annual gold production. Double development projects continue to ramp up in Q2 2026, including Mineral Park, Phoenix, Flat Reef, and Goose. Construction also advanced across a number of projects, including Kermuk, where Ally Gold reported the project with start-up operations expected, and Kone, where its production outlook for 2026 remains unchanged, and we currently expect to achieve our annual production guidance up to Petosquito, the first full contribution from the Antimena BHP stream, and the continued ramp-up of newly operating assets. Ahead, we project annual production to grow at an industry-leading rate from 2031 through That includes the operations overview. And with that, I'll turn the call over to Vince.

Thank you, Wes. Production at Q2 was 202,000 GEOs, a 6% increase year-over-year, driven primarily by the addition of the BHP Antibina stream and contributions from our newly operating assets. Sales volumes were 209,000 GEOs, a 14% increase from last year. Sales exceeded production in the quarter as we drew down produced but not yet delivered Consistent with our earlier guidance, Q2 deliveries reflected two of the typical three quarterly shipments under the new BHP Antimena stream, with a full quarterly contribution expected in the second half of the year. At the end of the second quarter, the produced but not yet delivered, or PB&E, balance was approximately 158,000 GEOs, representing 2.6 months of payable production. this is consistent with the preceding four quarters and within our guided range of two and a half to three and a half months strong commodity prices coupled with solid production that's a record quarterly revenue of 929 billion a increase of 85 compared to last year this was driven primarily by a 61 increase in the average realized gold equivalent price together with a 14 increase in the number of volume sold Of this revenue, 46% came from gold, 52% from silver, and the remainder from cobalt and In the coming quarters, we expect the revenue split to favour gold, as the new gold-dominant development projects come online. Net earnings increased by 86% from the prior year to $543 million, while operating cash cash flow totaled $650 million, a 57% increase from last year, resulting in year-to-date records achieved across revenue, net earnings and operating cash flow. During the quarter, we generated over $650 million in operating cash flow and deployed approximately $4.5 billion in net upfront cash payments across our streaming portfolio. This was headlined by the $4.3 billion payment to BHP from the Antimena Silverstream funded on April 1st, and also included $156 million for Coney, $23 million for Spanish Mountain, $16 million for Jervis, and $4.5 million for Chibango. In addition, the company made two dividend payments totaling $171 million, and made its first global minimum tax payment relative to the 2024 taxation year, amounting to $109 million. After funding these commitments, we ended the quarter with a cash balance of approximately $100 million at June 30, resulting in a net debt balance of approximately $1.9 billion. This is a reduction from the approximately $2.1 billion pro-pharma net debt position immediately following the Antipeda funding on April 1, reflecting the strength of our operating cash flow even after funding additional stream payments and dividends during the quarter. Funding the Antimena acquisition on April 1st, we drew down on our new $1.5 billion term loan, together with a draw on our revolving credit facility and cash on hand. During the quarter, we further enhanced our financial flexibility by upsizing our revolving credit facility by $500 million to $2.5 billion and extending its maturity by one year to June 30, 2031. But together with the $500 million aquarium feature and our cash on hand, this provides approximately $2.6 billion of available liquidity. The strength of our production guidance and continued strong margins, we remain well-decisioned to generate robust operating cash flow at current commodity prices, supporting debt repayment over a relatively short period, while continuing to build capacity to fund our existing commitments and potential future and creative stream acquisitions. This concludes the financial summary. I'll now hand things back over to Ava.

Thank you, Vincent. In summary, the first half of 2026 was record-breaking for Wheaton, and the second quarter reflected the continued execution of our strategy. The first half of the year saw records achieved across production, sales volumes, revenue, earnings, and cash flow, reflecting the strength and momentum across our portfolio. In the second quarter, we delivered record revenue and closed the Anzimina Silverstream with BHP, the largest streaming transaction to date, which adds meaningful long-term silver exposure. We continued to execute on disciplined and creative growth, further expanding and diversifying our portfolio with the closing of the Jervis transaction, our first stream in Australia. Our development pipeline continued to advance with multiple assets progressing through construction, ramp-up and optimization, supporting Wheaton's forecasted sector-leading organic growth profile of 50% by 2030. And Whedon's strategy remains clear. Stay disciplined in pursuing high-quality, low-risk, long-life, accretive precious metal streams, and deliver sustainable long-term value to all stakeholders. With that, I would now like to turn to open the call up for questions.

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 for the number one on your telephone keypad. If you would like to withdraw your question, please press star 1 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, can you hear me okay? Yeah, good morning, Daniel. Thank you and thanks for the questions. Yeah, I guess the first question, just on the sort of bridge into the second half, like how much of that uplift is the new sort of new assets coming online can you just give us a little like sense of contribution from the new ramp ups relative to the mind sequencing yeah that's the first question now it's really mind sequencing most of the wrap ups this year well so really that the main thing is that that has been a stream being fully online okay thanks yeah the second question and your appetite for deals while you're still digesting the shift to and the Antimena acquisition I mean I guess yeah we've seen a pullback in asset values with the gold price a little bit has that made the pipeline more active is the first and second that I see you've engaged in a couple of royalty transactions. You've historically been less active in this space relative to your peers. Are you seeing opportunities for transactions in third party royalties? And third part, are you seeing any movement on the copper project pipeline, you know, prices of the 14,000, you know, is that pipeline looking, you know, like we might see some more FIDs and financing requirements like that.

Thank you for the question, Daniel. I'll start by saying, you know, we currently have, as Vincent outlined, almost $2.6 billion in unused capacity through our revolver, and we're generating in excess of $200 million of free cash flow every month. So we feel very, very comfortable continuing to transact on whatever we see up there in the market. That would be an accretive transaction for Wheaton. In terms of the royalty transactions we've done lately, I think you have to look at it differently. We're not just entering into royalties, because you're right, royalties won't really move the needle. What we're doing is we're entering into royalties that have growth first, so right or first recuse on future financings, and that's the key. Having that ability to lock that up provides us that certainty that we at least have the last look when there's an opportunity out there to finance. Next question, we're going to pass it over to Neil Burns, our VP of Corporate Development. Sure, Daniel.

You mentioned the drop in metal prices, you know, coming off the highs that we saw in the first quarter, moderation in metal prices did contribute to a bit of a softening in the equity markets. I think that led to a bit of an uptick in some of the opportunities we're seeing from smaller companies who are facing, you know, a tougher financing environment. We do see the mix still weighted towards gold, as Hazeman said, and generally in the same range of both $200 and $250.

Yeah, just whether there's any color on any, the high-level color on the deal pipeline or potential in the copper industry, whether, you know, whether you're seeing any more movement there on the projects.

Well, I mean, the copper industry itself, there are some large projects out there in the copper industry, but they will take time to come to fruition. There's nothing imminent within the next, I would say, year or two that requires financing. But looking out, you know, call it three to eight years, there are a number of large porphyry copper deposits that will require big funding, and we would hope to be involved with that. In the meantime, we're not just sitting by, obviously, waiting for those to happen. We're constantly looking, our team that is constantly looking at ways to continue to expand our portfolio through accretive transactions. And, you know, as you've seen, you know, we've entered into a stable jurisdiction. We've looked at it in Australia. We were looking at several other jurisdictions. Obviously, North America, a lot's going on there. So, we're very excited about the way things are looking here with Next Global.

Great. Have a nice weekend.

Thank you, Jay.

Our next question comes from Tanya Yacuzkonek from Gosha Bank. Please go ahead. Your line is open.

Good morning, everyone. Thank you so much for taking my questions. Brad's on the strong quarter as well. Can I come back to just the second half of the year? You're going to see stronger production. Thank you, mainly from the operating assets. Maybe some guidance on the sales, because sales came in higher than we expected. So I'm kind of wondering how sales and production is going to look for the second half of the year.

Hi, Tanya. It's Vince here. Yeah, so our PB&D balance really drives that. At the end of Q2, we're sitting at about 2.6 months. We typically see a range anywhere between two and a half to three and a half months. So I would say there is a higher likelihood that there will be a little bit of a buildup in the PB&D towards the end than a drawdown. So, you know, I would – but nothing dramatic.

Okay. If that's the case and you're thinking that production and sales could be close to each other, Is that how I should be thinking about it?

That's how I would think about it.

That's helpful. Thank you so much. Maybe I can get my numbers right next time with that guidance. Just turning over to just the deal pipeline. I have two questions on the deal pipeline and, you know, whoever wants to take that and maybe Haytham as well. From understanding the opportunities out there, it appears to me, Hayton, that you mentioned that the big opportunities, the plus $1 billion range, seem to be further out, like that three- to eight-year time frame. Would that be a fair statement?

I would say the larger copper opportunities that were asked about would be further out. There are other opportunities, Tanya, in the pipeline that I would say, you know, could be in excess of a billion dollars, could be as high as $2 billion. But, again, those take time to gestate. And so it will be, I would say, majority of opportunities are focused on sub-500 million, but there is the odd $1 or $2 billion transaction that could come out sooner than the three-to-seven-year timeline I mentioned.

Okay. And are those in gold or silver?

Those are primarily focused towards gold.

And then, Payton, are you seeing any changes to the structure of the deals in that $200 to $500 million range? Is it still the same sort of, you know, project financing that requires, you know, either a stream plus an equity and a debt component? Has anything changed in that?

You know, that's about right, Tanya. I would say that as we're looking at these things, we're trying to provide more of a financing package going forward. Like you've seen us put in working capital facilities. You've seen us put in equity where needed. You know, what we're trying to do is do what's best for the company, provide the company with the flexibility to structure the transaction that is most efficient for them without diluting their existing shareholders. That creates a win-win transaction.

Okay. And then my last question really comes on to just people. You know, when I look out in the industry and you look at project build and you look at expertise and contractors out there, you know, unfortunately, quality of contractors isn't what it used to be. So maybe, Haytham, can you talk a little bit about what you're doing internally to beef up your technical expertise? You know, obviously trying to fake in contractors is not optimal at this point anymore.

Yeah, absolutely. Absolutely. Internally, we're a total of 45, 46 people, and we have two new hires coming on to expand our engineering team and our operations team. The more opportunities and more streams we lock in, obviously, the more there is to do, and it's important for us to stay on top of everything. I also want to ensure that our team is able to look at all these opportunities without burning themselves out. So, we are adding – it doesn't sound like a lot, but we're adding two to three people over the next three or four months, and we probably over the next five years, you know, as needed as portfolios expand, have the capacity to add another 10% on top of that as needed.

I'm sorry, go ahead.

We do the majority of our reviews and opportunities with internally, so we're not relying on externals. and can you just remind me of the technical expertise that you currently have in-house and the one absolutely absolutely yeah we're all mining engineers geologists processing engineers geological engineers civil engineers I don't think I've missed anything geotechnical engineers social science social scientists so we have a we have a wide variety of expertise in internally I can tell you we haven't used an external consultants in it's got to be at least a couple years and what areas do you need to add to them we're just adding additional capacity on engineering in order to actually be able to look at more opportunities so that size doesn't matter we're not restricted to looking at small risk big we can look at everything and operations to assist the west in in monitoring our development projects thank you so much for taking my question thank you have a great week yeah you as well our next question comes from cosmos 2 from CIBC please go ahead your line is open great thanks hey hey Sam how you doing thanks for taking my questions and

that's a lot of engineers I guess you're missing an aerospace engineer but but But beyond that, maybe my question is on the Antonina. As you mentioned, Q2 was a bit impacted by the split between copper and copper-zinc concentrate. So how does it work usually? Is it based on, you know, was that due to higher copper prices? So there was preference in terms of, you know, the Antonina selling more copper-only concentrate, or is that not correlated? And, you know, Wes, as you mentioned, it seems like there is going to be, you know, a bit more copper-zinc concentrate in Q3, so that's going to help. But, you know, usually how much visibility do you have? Do you have any visibility beyond, you know, what's happening in Q3?

At the end of June, and I got a great review with the team down there.

That's good to hear. Maybe sticking with Antonina, and, you know, certainly great to see that you've added to that stream. But I guess my question is, you know, the latest transaction was transacted when silver prices were slightly higher. It's come down a little bit now. It's gone back up again, but it's still lower than where you had it when you transacted the acquisition. So I guess my question is, are there any concerns in terms of potential write-downs? or are you able to, for accounting purposes, look at the entire 67.5% stream as one holistic stream, whereby, you know, the risk of any kind of write-down will be much less?

Hey, Cosmos, it's Vince here. Hi, Vince. You know, from an accounting perspective, the Glencore and the BHP streams are separate. We need to look at them separately. But from, you know, a value perspective, when we did the Antimena transaction with BHP, you know, SWAT prices were higher, but we definitely did not use.

And there's no triggering event at this point, as you mentioned?

No. I mean, the asset is performing as expected. Prices are going to be all hell, but we take a long term.

Understood. And maybe one last question. And, Haytham, as you mentioned, you've made your first investment into Australia. But I guess my question is more on Japan. I see that you've made your first investment, or maybe not your first, but one of a few investments into Japan. I didn't think it was a big sort of mining jurisdiction, but now you've made an investment to Chupango. So maybe if you can talk about that investment and how you see, you know, Japan as a jurisdiction.

Okay, I'll pass it over to Neil.

Go ahead, Jared. Morning, Cosmos. Yeah, thank you for your question. You know, Japan is quite unique in both geology, you know, with its location along several plate margins. It's a great green crown for creating great ore bodies. And also the fact that there's been very little exploration. You know, during World War I, the workforce really shifted over to the Army from the mines. And they never really got back to mining. Their focus shifted towards smelting and refining. so it remains to be a jurisdiction that has great potential and extremely underexplored. JapanGo's got a number of projects which are their current ones they have and two that they're earning into and the role for that you mentioned earlier. We have huge options.

Great. I know it's not producing yet yeah I know it's not producing yet but if you ever have a mine tour going to Japan let me know I'm in. Have a good weekend. Don't worry. I'll go hang out Well, have a good weekend, and thanks for answering all my questions.

Thanks, Cosmos. Have a great weekend.

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

Good morning. Thank you for taking your questions. My questions have to do with the early deposits, because I haven't actually looked at these in detail. But, you know, Toraparo, Cotabambas, the deals were done a long time ago. But when I look at when you expect to spend on these, it's post-2030. So I have a couple of questions. One, do the way these things work, that those payments you have left, are those one-time payments, or are they staged? And my second question is, do you think you'll be paying those sooner than that 2030 period as we move forward? And three, there's all these buy-down options in here.

Are those just one-time things that basically kick this whole process? can you just go through how you're thinking about those specifically to Tora Taro and Cotabamba which are two of the bigger ones that look like they're making some progress now sure why don't I just answer your first question person so these payments for starters you know we put up very very little at the time so we've committed very little dollars initially and so the majority of the actual capital goes in as these projects are de-risked and then I can say to answer your second question the payments are staged based on levels of completion so as they complete 20 we put in some capital as they complete the first 25% we put additional capital that's the majority of the structures

look like that try to remember the third question well more importantly we don't provide any capital until it's permitted and it's good and this allows us to achieve a significantly higher which is very different than the royalty and the The other point is just that both of those are currently outside of our 10-year guidance or proof.

Right, but this is for a part of the fire to deliver the feasibility. Do you put money in before the feasibility and then there's these options that kick in? Or is it like once you start, you can't reverse this whole gold stream percentage change and everything? Are these like triggered the first time you put the next payment in? or are they sort of triggered along the way?

It's very much like a normal stream. You can't change this. You know, every deal is different. Some of these deals, they actually have to deliver us a feasibility study, and then we can decide whether we want to move forward in those scenarios. In each of these cases, you know, we're still very much, you know, think the projects are very robust forward with them. And when that happens, when they have the permits and they're in construction and full financing.

Maybe just to answer your last question, Brian, you asked about change of control, buybacks, et cetera. Typically, on the more recent transactions, in the event of a change of control, we have allowed a partial only one-third buyback. I don't recall that. I don't think either of those two transactions had any buyback options in them in the event of change of control or otherwise.

Right. So, in very simple terms, they basically work the same as a stream, if I think of it as a simple term, and they'd have similar securities and stuff.

Oh, absolutely. Thank you very much. Thank you, Brian.

Our next question comes from Jack Baxter from Bloomberg Intelligence. Please go ahead. The line is open.

Morning, team. I just want to shift the focus to the long-term outlook. So it seems like we're still pretty much sticking to the 1.2 million GOs by 2030. But obviously, at the same time, we've got new deals and there's been some positive milestones across the portfolio. I'm just wondering if there's a bias towards that geo outlook. Is it more positive or is it still broadly neutral? But if it is positive, are we, you know, should we be expecting a refresher in the near term?

Well, if you look at our current forecast, you mentioned the 1.2 million ounces. That is based on projects that we have in the pipeline that are currently permitted, financed, and all the three are in construction, and those three are expected to start to structure within the next 12 months. So we're fairly comfortable with that number, but as you so accurately highlighted, we're a growth company. We're continuing to generate strong cash flow every year, and we're going to continue to deploy that capital into accretive transactions. So, you know, I would like to hopefully believe that that forecast is conservative, But until we do transactions, we're going to stick with our $1.2 million forecast.

And maybe a follow-up. It's a bit of a niche one, but curious to get some color on your discussions with Equinox, specifically focusing on lost fee loss, given the land rights resolution. But at the same time, that stream, from what I can tell, is due to expire in 2029. Now, there's plans for a sizable development on that asset sometime in the near future. I'm just wondering if there's been any discussions on extending the timeline of that contract or potentially participating in any other funding opportunities that arise, obviously noting the challenges that that asset has had.

I would say, Jack, that there haven't been any significant discussions around those views. This is a very small stream in our portfolio right now and not really material. At the same point, it should be more than willing to help out with it. But at this point, I would say we…

I would say, I would add, Jack, that is only one of two assets in our entire portfolio that has a finite date on it. Everything else is life of mine, and that was an early structure.

And look forward to talking again in September.

Thanks, Jack. Have a great weekend. Thank you, everyone, for your time today. Whedon's record-breaking results in the first half of 2026 reinforces our position as the premier low-risk option for exposure to gold and silver. A strong balance sheet, diversified portfolio, and compelling growth pipeline position us to continue executing on accretive opportunities and delivering long-term value for all stakeholders. I want to thank all of our stakeholders for their continued support as we build on this record first half and continue to execute on the next phase of growth for the company. Thank you again, and we look forward to speaking with you all soon.

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