Wheaton Precious Metals Corp. Q4 FY2025 earnings call

• Randy Smallwood mentioned the portfolio of high - quality, long - life assets delivered an outstanding year in 2025, surpassing production targets and generating record revenue, earnings, and operating cash flow. Annual production of 690,000 gold - equivalent ounces was realized, exceeding production guidance. Contributions from cornerstone assets like Salobo, Antemina, and Penasquito, along with the ramp - up of Blackwater and Goose were noted. - Randy announced an 18% increase to the quarterly dividend to 19.5 cents per share. - Randy will step into the role of Chair of the Board effective March 31st, with Haitham Hordale assuming the role of CEO. - Haitham Hordale discussed the capital allocation strategy and key developments across the portfolio, including the addition of Hemlo and Spring Valley Gold Streams, and the large - scale streaming transaction with BHP on Antamina. - Wes Carson provided a detailed review of operating results, noting fourth - quarter production and sales volumes, and 2026 production guidance including expected growth from various assets. - Vincent Lau went through the financial summary, including fourth - quarter and full - year revenue, gross margin, net earnings, operating cash flow, and dividend information, as well as details on the Antamina Silver Stream transaction and funding sources.

In the fourth quarter, total production was 205,000 GEOs, an 8% year - over - year increase. Sales volumes totaled over 190,000 GEOs, a 35% year - over - year increase. For the full year 2025, revenue totaled approximately $2.3 billion, an 80% increase compared to 2024. Approximately 99% of revenue was from precious metals, with 62% from gold and 36% from silver. Gross margin for the year was approximately $1.7 billion, a 108% increase over the prior year. In the fourth quarter, record revenue of approximately $865 million and gross margin of $664 million were achieved. Of the revenue, 59% was attributable to gold, 39% to silver, and 2% split between palladium and cobalt. Solobo produced 89,000 ounces of attributable gold in Q4 2025, a quarterly record. Antamina produced 1.6 million ounces of attributable silver in Q4 2025, a 49% year - over - year increase. Instancia produced 700,000 ounces of attributable silver and 15,000 ounces of attributable gold in Q4 2025, a decrease compared to the prior year.

• Wheaton announced 2026 and long - term guidance, expecting production growth of 50% to 1.2 million gold - equivalent ounces by 2030. - 2026 GEO production is expected to continue growing from 2025 levels, driven by contributions from newly acquired operating streams and startup of development projects. - Attributable production is forecast to be consistent at Salobo in 2026, increase significantly at Antamina due to the new stream, and have other production expectations for various assets. - Estimated tributary production in 2026 is forecast to be 400 to 430,000 ounces of gold, 27 to 29 million ounces of silver, and 19 to 21,000 ounces of geos of other metals, resulting in total production of approximately 860 to 940,000 geos. - Production is expected to grow at a sector - leading rate of approximately 50% over the next five years to over 1.2 million GEOs by 2030, and from 2031 to 2035, a triple - correction is forecast to average approximately 1.2 million GEOs annually.

Q: Can you just remind us over the next year or two years what the funding commitments are and whether that's been factored into the comment that Wheaton can get back to a net cash position within one year?

A: We have about $1.5 billion of capital commitments over the next couple of years. And yes, the estimate that we would come back to a net cash position does include that and also paying our dividends at the current level.

Q: Do you see additional opportunities in the portfolio to go back to assets that you're already familiar with and maybe increase the exposure the way you did with Antamina?

A: We always look for that opportunity. The majority of our deals that have been done in the last few years have been done with existing partners. So we're always in communication with our existing partners to understand what their funding needs, and of course, suggest further streaming from their high - quality operations.

Q: On Antamina, where do you see the key source of upside to this asset?

A: I think the way BHP prefaced it was they wanted to unlock silver in a time of strong commodity prices. This asset will be a generational asset. From a resource and reserve perspective, there are various methodologies to continue to expand it.

Q: How do you see this in your ability to compete in the market for new transactions over the next 12 months? Is there a limit to the kind of size of deal you would be comfortable in taking on?

A: We're incredibly comfortable with where we are from a cash and debt position right now. We're generating over $3 billion in free cash flow over the next 12 months. We would easily be able to fund a transaction in the $1.5 to $3 billion range if we needed it in the next little while. Outside of that, if we see any $4.3 billion Antamina transactions, we'll probably have to look for other sources of funding. But at this point in time, we're more than comfortable with our existing balance sheet and our cash flows going forward to fund any transactions we see in front of us.

Q: When you were considering today's updated level of the dividend, How is the downside in gold price factored in, or put another way, to what gold price on the downside is the dividend level sustainable?

A: Our current dividend policy, paying the 19.5 cents, represents just over 10% of our operating cash flows. We have to see a materially lower gold price and silver price before we're constrained at all. Even if we went down to $3,000 gold, the amount we're paying out is still only kind of in the mid - 30s in terms of percentage of operating cash flow. So very sustainable.

Q: Are there any delivery delay considerations with the new mines that you guys have streams on?

A: When we structure our transactions, we structure them to ensure that if there are any delays, we are kept whole from an IRR perspective. We have mechanisms in place that are called delay ounces that compensate us for the time value of money in case any of that happens. The majority of the new projects in the pipeline are pretty close to their timelines, and the mines that produce dore find themselves to a refinery very fast.

Q: Can you talk about opportunities to do other deals with BHP on some of their portfolio?

A: I would hope there's opportunities to do deals with all of our existing partners, and BHP is just our newest partner. We are in constant contact with all of our existing partners, including BHP, about trying to figure out ways to continue to help them fund those capital projects.

Q: When should we be thinking about the last $156 million of CONE payments going out the door?

A: The cool day payments will probably be sometime in 2026, either Q1 or Q2.

Q: What's the deal with the Santa Domingo 30 million refund?

A: Santo Domingo, we put up some capital when we first entered into that transaction. And because the project hasn't come online, we've given our partner an opportunity to repay that $30 million and defer making any additional interest payments from this point forward.

Q: Is Antamina going to be slightly lower year on year?

A: Yeah, that's correct.

Q: Is the accounts receivable of over $40 million going to come down?

A: We probably expect that to come down. It's a marked market thing, pretty anomalous item but it should normalize over time.