Wheaton Precious Metals Corp. Q3 FY2024 earnings call

• Recorded record quarterly operating cash flows of $254 million. Year-to-date, produced approximately 450,000 gold equivalent ounces and on track to achieve 2024 production guidance of 550,000 to 620,000 gold equivalent ounces.
• Announced two accretive precious metal streaming agreements: expansion to Rio2’s Phoenix project for an additional $100 million and a new $625 million gold stream on Montage's Kona project.
• Balance sheet remains strong with ~$700 million cash at quarter end and a $2 billion undrawn revolving credit facility.
• Launched the inaugural Future of Mining challenge to award $1 million for technology advancing sustainability in mining.
• Operations review: Third quarter production higher than expected, with varying performances at Salobo, Constancia, Penasquito, Stillwater mines, and Voisey's Bay mine; medium-term and long-term production forecasts provided.

In the third quarter of 2024, production amounted to 144,000 GEOs. Revenue was $308 million, with 61% attributable to gold, 37% to silver, 1% to palladium, and 1% to cobalt. Salobo produced 62,700 ounces of attributable gold in Q3 2024, a decrease of ~9% y-o-y mainly due to lower grades but partially offset by higher throughput. Constancia produced 600,000 ounces of attributable silver and 10,400 ounces of attributable gold in Q3 2024, a decrease of ~7% and 45% y-o-y respectively, due to lower grades/recoveries and planned stripping activity. Penasquito produced 1.8 million ounces of attributable silver in Q3 2024 compared to zero in Q3 2023, with production shifting focus to the main Penasquito pit. Stillwater mines produced 2,200 ounces of attributable gold and 4,000 ounces of attributable palladium in Q3 2024, a decrease of ~8% on gold y-o-y mainly due to lower recoveries. Voisey's Bay mine produced 397,000 pounds of attributable cobalt in Q3 2024, an increase of ~118% y-o-y as the underground mine ramp-up nears completion.

• On track to achieve 2024 production guidance of 550,000 to 620,000 gold equivalent ounces.
• Medium-term (2024-2028) production forecast to increase at industry-leading rate, with growth from operating assets like Salobo, Antamina, Voisey's Bay, and Marmato; development projects in construction/permitting and predevelopment projects also contributing.
• Long-term (2029-2033) attributable production forecast to average over 850,000 GEOs.
• Recently announced transactions (Kona project stream and Phoenix project amendments) not yet incorporated into long-term guidance; updated long-term guidance to be provided in first quarter of 2025.

• Stillwater West operations placed into care and maintenance by Sibanye, with 2025 production relative to Stillwater PMPA estimated to be ~40%-45% lower than historical levels.
• Constancia silver and gold production decreases due to lower grades, recoveries, and planned stripping activity.
• Voisey's Bay cobalt production has a long lag between production and sales due to location and sales timeline.

Q: Ralph Profiti asked about the copper world being the only new asset rolling into new guidance and separating existing from new streams.

A: Wesley Carson responded that copper world is the one coming in the 2029 period, and there are other assets and new transactions within the five-year period, with updated long-term guidance to be provided in Q1 2025.

Q: Tanya Jakusconek asked about the industry environment and changes in agreements.

A: Randy Smallwood and Haytham Hodaly discussed the evolution of the industry, competition from private equity, flexibility and creativity in structuring agreements while maintaining core focus on delivering high-quality precious metals production, and the focus on single asset development stage opportunities in certain ranges.

Q: Lawson Winder asked about projected payment, asset sales trailing production, and consolidation in the sector.

A: Gary Brown said the $238 million projected for Q4 has a large component likely moving to 2025 due to completion test unlikelihood; Randy Smallwood and Wesley Carson discussed sales trailing production at Constancia and expected squeeze in Q4; Randy Smallwood and Haytham Hodaly talked about consolidation, stating it's unlikely given valuations and focus on core streaming business.

Q: Will Dalby asked about cobalt production ramp-up and Wheaton's role in copper world negotiations.

A: Wesley Carson discussed cobalt production ramp-up at Voisey's Bay and its long sales lag; Randy Smallwood talked about copper world negotiations, waiting for clarity from Hudbay and scope for discussions but no commitment to specific actions.

Q: Carey MacRury asked about cobalt production ramp-up, steady state run rate, and sales lag.

A: Wesley Carson and Randy Smallwood discussed cobalt production ramp-up, steady state run rate, and the long sales lag due to location and sales timeline of Voisey's Bay mine