Wheaton Precious Metals Q2 2025 Earnings Report

Wheaton Precious Metals EPS Results

• Actual EPS: $0.63
• Consensus EPS: $0.58
• Beat/Miss: Beat by +$0.05
• One Year Ago EPS: $0.33

Wheaton Precious Metals Revenue Results

• Actual Revenue: $503.22 million
• Expected Revenue: $424.23 million
• Beat/Miss: Beat by +$78.99 million
• YoY Revenue Growth: +68.20%

Wheaton Precious Metals Announcement Details

• Quarter: Q2 2025
• Date: 8/7/2025
• Time: After Market Closes
• Conference Call Date: Friday, August 8, 2025
• Conference Call Time: 11:00AM ET

Wheaton Precious Metals (NYSE:WPM) primarily sells precious metals in North America, Europe, and South America. It produces and sells gold, silver, palladium, and cobalt deposits. The company was formerly known as Silver Wheaton Corp. and changed its name to Wheaton Precious Metals Corp. in May 2017. Wheaton Precious Metals Corp. was founded in 2004 and is headquartered in Vancouver, Canada.

Wheaton Precious Metals Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Wheaton reported record revenue of US$530 M, adjusted net earnings of US$286 M, and operating cash flow of US$450 M in Q2, marking increases of 68%, 91%, and 77% year-over-year, respectively.
• Positive Sentiment: The company achieved 159,000 GEOs in production this quarter—up 9% year-over-year—with Blackwater reaching commercial production and Goose completing its first gold pour, keeping 2025 guidance of 600–670 K GEOs on track.
• Positive Sentiment: With over US$1 B in cash and a US$2 B undrawn credit facility, Wheaton maintains strong liquidity and flexibility to fund ∼40% production growth by 2029 while pursuing only highly accretive streaming opportunities.
• Positive Sentiment: Wheaton earned placement among the Top 10 corporate citizens in Canada by Corporate Knights and launched its annual Future of Mining Challenge to develop sustainable water management solutions.
• Negative Sentiment: The company expects its first Global Minimum Tax cash payment—approximately US$112 M—for the 2024 period to be due in Q2 2026, with similar payments each year thereafter.

Presentation

[Operator]

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals twenty twenty five Second Quarter Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

[Operator]

You would like to ask a question during this time, simply press star then the number one on your telephone keypad or you can type your question in the Q and A box of the webinar. If you would like to withdraw your question, please press star then the number 2. Thank you. I would now like to remind everyone that this conference call is being recorded on Friday, 08/08/2025 at eleven a. M.

[Operator]

Eastern Time. I will now turn the conference over to Emma Mare, Vice President of Investor Relations. Please go ahead.

[Emma Murray, VP - IR at Wheaton Precious Metals]

Thank you, operator. Good morning, ladies and gentlemen, and thank you for participating in today's call. I'm joined today by Randy Smallwood, Wheaton's Chief Executive Officer, Jason Hodulay, President, Kurt Bernardi, EVP Strategy and General Counsel, Vincent Lau, SVP and Chief Financial Officer, and Wes Carson, VP Mining Operations. For those not currently viewing the webcast, please note that a PDF version of the slide presentation is available 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 disclosures.

[Emma Murray, VP - IR at Wheaton Precious Metals]

It should be noted that all figures referred to on today's call are in U. S. Dollars unless otherwise noted. With that, I'll turn the call over to Randy Smallwood.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thank you Emma, and good morning everyone. Thank you for joining us today to discuss Wheaton's second quarter results of 2025. Before we begin, I'd like to congratulate both Haytham Hodulay and Kurt Bernardi for their well deserved promotions. In June, the company announced the appointment of Haytham Hodulay, former SVP of Corporate Development, to President of the company, and Kurt Bernardi, formerly SVP Legal and Strategic Development, to Executive Vice President, Strategy and General Counsel. As we enter a new phase of transformative growth, the leadership of Haytham and Kurt will play, will be pivotal in driving our strategy forward.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

I look forward to working closely with them and the broader team to continue delivering long term value to our stakeholders. Turning back to our results, Wheaton delivered another outstanding quarter, achieving record revenue, adjusted net earnings and operating cash flow for both the second quarter and the 2025. This performance underscores the effectiveness of our streaming business model in leveraging rising commodity prices, while maintaining strong margins. As a result of strong performances by key assets including Salobo and Penasquito, the company recorded production of 159,000 gold equivalent ounces this quarter and remains well positioned to achieve our 2025 production guidance of 600,000 to 670,000 gold equivalent ounces. We also made significant progress on our near term growth strategy, as Blackwater announced commercial production and Goose successfully delivered its first gold pour during the quarter, a strong indicator that our catalyst rich year is progressing as planned.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

The company remains well capitalized with over 1,000,000,000 in cash on hand at quarter end and a $2,000,000,000 undrawn revolving credit facility, which, when coupled with the strength of our forecasted operating cash flows, provide strong flexibility to fund all outstanding commitments, as well as the capacity to acquire 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. It's worth highlighting that our forecasted organic growth profile of 40% production growth by 2029 enables us to pursue opportunities that best complement our growth trajectory without compromising on quality or strategic fit. On the topic of sustainability, Wheaton was once again recognized among the top 10 companies on Corporate Knight's annual 50 best corporate citizens in Canada, a multi sector accolade that we are proud to receive. Following the quarter, Wheaton launched its second annual Future of Mining Challenge, with this year's exciting initiative focused on advancing sustainable water management technologies across the mining sector.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

The Expression of Interest phase is now open until August 29, and we are excited to engage with innovators for helping shape the future of responsible mining. And if you haven't had the opportunity yet, I highly recommend exploring our recently published Sustainability and Climate Change reports to learn more about our commitment to responsible business practices and ESG performance across all areas of our business. With that, I would like to turn the call over to Wes Carson, our Vice President of Operations, who will provide more detail on our operating results. Wes? Thanks Randy.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Good morning everyone. Overall production in the second quarter was 159,000 ounces, a 9% increase from the prior year primarily due to stronger production at Salobo coupled with commencement of production at Blackwater. In the quarter, Salobo produced 69,400 ounces of attributable gold, a 10% year over year increase, driven by higher throughput despite lower grades. This performance underscores the successful ramp up of Slovo 3 and ongoing improvements at Slovo 1 And 2. Vale indicates that by late July, Slovo 3 had fully ramped up and that the entire complex is now operating at full capacity, consistently delivering strong operational performance.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Antamina produced 1,300,000 ounces of attributable silver in the second quarter, marking a 31% increase compared to last year. The increase was primarily driven by higher silver grades, partially offset by lower recoveries and reduced mill throughput as operations gradually restarted following a safety related shutdown in April. Mill feed in Q2 was primarily composed of copper zinc ore, which contains higher silver grades relative to copper only ore and supports stronger silver production. We expect production levels at Antamina to increase in the second half of the year due to increased recoveries and throughput as the mine returns to its typical run rate. During the quarter, Blackwater transitioned from commissioning to commercial production, producing 4,000 ounces of gold and 138,000 ounces of silver, totaling 7,000 GEOs year to date.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

The ramp up has been both rapid and safe. Artemis Gold reports that by June the mill was operating above design capacity, with over five million hours worked without a lost time incident, supporting solid steady state production. Production output is expected to be weighted to the second half of the year as mill performance and feed grades continue to improve. Artemis Gold also reports they are fast tracking the design and implementation of the Phase two expansion and the Board investment decision is expected later in 2025. Wheaton's production outlook for 2025 remains unchanged, and we believe we will remain well on track to achieve our annual production guidance of 600,000 to 670,000 gold equivalent ounces.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

At Salobo production is forecast to remain steady throughout the remainder of 2025, supported by slightly increased throughput across Salobo 12 And 3. Compared to the first half, production at Antamina is forecast to increase over the remainder of the year benefiting from expected higher silver grades and higher throughput. Production at Constancia is also expected to improve over the remainder of the year, primarily driven by higher grades until the depletion of the Pampacancha pit, which is expected in December. As mentioned by Randy, we believe that our catalyst for this year remains on track and production from Mineral Park, Goose, Platte Reef and Elvis drill continues to be forecast for the 2025. That concludes the operations review, and with that, I'll turn the call over to Vincent.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Thank you. As detailed by WES, production in Q2 was 159,000 GEOs, Sales volumes were 158,000 GEOs, an increase of 28% from last year, driven by strong production from the first quarter and a drawdown of produced but not yet delivered, or PBND, due to timing differences between production and sales. At the end of Q2, the PBND balance was approximately 130,000 GEOs, which is about two point seven months of payable production. We expect PBND levels to trend back up to the higher end of our forecasted range at three months for the remainder of 2025, partly due to the ramp up of new mines, which is expected to continue through the second half of the year. Strong commodity prices, coupled with solid production, led to record quarterly revenue of $5.00 $3,000,000 an increase of 68 compared to last year.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

This increase was driven mainly by a 32% increase in commodity prices and a 28% increase in sales volumes. 65% of this revenue came from gold, 33% from silver, and the rest from palladium and cobalt. With silver recently outpacing gold and reaching its highest level in over a decade, our substantial silver exposure sets us apart from our peers, and positions us well to benefit from the current pricing momentum. Net earnings increased by 139% from prior year to February while adjusted net earnings increased by 91% to reach a record $286,000,000 Operating cash flow increased to $450,000,000 a 77% increase from last year. These gains outpaced the increase in gold and silver prices during the same period, highlighting the leverage from fixed per ounce production payments, which made up 85% of our revenue.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

During the quarter, we made total upfront cash payments for streams of $347,000,000 including $156,000,000 for KONE, dollars 144,000,000 for Salobo, dollars 44,000,000 for Krumovic, and $3,000,000 for Congreos. Following quarter end, we made an additional $156,000,000 payment to KONE, as the Montage team continues to advance construction. Overall, net cash outflows amounted to $80,000,000 in the quarter, resulting in a cash balance of $1,000,000,000 at June 30. This cash balance, combined with the fully undrawn $2,000,000,000 revolving credit facility, plus the $500,000,000 accordion, provides us with the highest amount of liquidity compared to our peers, and we believe positions us exceptionally well to satisfy our funding commitments, while retaining flexibility to acquire additional accretive streams. That concludes the financial summary, and with that, I turn it back to Red.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thank you Vincent. In summary, Wheaton delivered a strong performance in the second quarter, marked by several key achievements. We delivered record revenue, adjusted net earnings and cash flow for both the quarter and the first half of the year. We made meaningful progress on our near term growth strategy, with Blackwater achieving commercial production and Goose successfully delivering its first gold pour, both milestones that reflect the steady momentum of our catalyst rich year. Our growth profile was further de risked as construction activities advanced on a number of development projects, including Mineral Park, Flat Reef, Kone and Kermak.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Our 100% streaming revenue model provides significantly greater leverage to rising commodity prices while keeping us insulated from inflationary cross pressures, resulting in some of the highest margins and strongest performance in the precious metals space. Our balance sheet remains robust, providing ample flexibility to pursue well structured, accretive and high quality streaming opportunities. And finally, we take pride in our leadership amongst precious metal streamers and have always and will always support both our partners and the communities where we live and operate. With that, I would like to open up the call for questions. Operator?

[Operator]

Thank you very much. Ladies and gentlemen, we will now conduct the question and answer session. Your first question comes from the line of Matthew Murphy from BMO Capital Markets. Please go ahead.

[Matthew Murphy, MD - Equity Research at BMO Capital Markets]

Good morning. Great quarter. Congrats, Saifam and Kurt on the promotions. Maybe just start off with a question on the deal environment. There's been a lot going on in the space, a number of transactions announced.

[Matthew Murphy, MD - Equity Research at BMO Capital Markets]

You've got a lot going on organically. I guess the question is how aggressive is Wheaton's stance on deals or does the organic growth story make you maybe a little bit more picky?

[Haytham Hodaly, President at Wheaton Precious Metals]

Thanks for the question, Matt, and the kind words at the beginning. I will say that we focus on accretive transactions that will maintain our strong security structure. We've always done that, that hasn't changed just because we've got a great organic growth profile. We believe this will provide our shareholders with the safest precious metals exposure in the mining industry with, as Randy mentioned, over 40% growth over the next five years. We're looking at lots of opportunities, we're probably sitting between twelve and fifteen opportunities that we're looking at right now.

[Haytham Hodaly, President at Wheaton Precious Metals]

I would say two thirds of those are development stage opportunities, one third are probably operating, and there's also some M and A opportunities in there as well. So, you know, we have a solid war chest with which to acquire additional accretive streams and we're gonna continue to try and deploy it. But again, not every stream is a Wheaton stream, it has to have certain characteristics that for us to add it to our strong portfolio already.

[Matthew Murphy, MD - Equity Research at BMO Capital Markets]

Got it. Okay, fair enough. Thanks for that. Also separate question, just on the cash tax, can you remind me what we should be thinking about in terms of global minimum tax and when we see cash tax paid picking up?

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Hey, Matt. Yeah, for the cash tax, the GMT is applicable to the 2024 period, and we're going to make the first payment in 2026, I believe, Q2 or Q3. So in our balance sheet, we have that characterized as a current liability now. So that's the amount that will go out in 2026.

[Matthew Murphy, MD - Equity Research at BMO Capital Markets]

Okay. And it's just kind of a sequential every quarter after that as opposed to any sort of larger initial cash tax payment, is that correct?

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Yeah, we expect it to be kind of an annual sequence thereafter. So, every year we'll have to make that same payment going forward.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

The way the GMT works, it's almost like a sweep taxes. So that's why it's delayed. 2024 will be paid in 2026, 2025 will be paid in 2027, etcetera, etcetera, because you get to deduct off whatever other taxes you've paid on your revenue during the subsequent, know, the immediate year after the revenue. You know, it's like a sweet tax, it'll always be staggered. So it's always going to be two years after the actual date.

[Matthew Murphy, MD - Equity Research at BMO Capital Markets]

Yeah, okay. Thank you very much.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thanks, Matt.

[Operator]

Your next question comes from Brian MacArthur from Raymond James. Please go ahead.

[Brian Macarthur, Managing Director at Raymond James]

Good morning and thank you for taking my question. It relates to there's discussion now with tariffs in The United States about gold going in there. And again, I doubt it'll be the same as copper. But can you just go through, I believe you take your deliveries in kind. Can you then sell it if the Comax price ended up being very different than the LME price?

[Brian Macarthur, Managing Director at Raymond James]

Can you benefit from that from any ways? And I realize the tariff know, bars, like index that come from a mine. But if you take it in kind, is there anything in your contract that prevents you from selling it anywhere, or would you be able to take that arbitrage if it started to exist? Thanks.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Vince, do you want take it? Sure. Hey, Brian. Yeah, so first of all, we're insulated from any of the tariffs. We take delivery of credits of gold and silver in mainly London, so we're not subject to any of these tariffs.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

So at minimum we would achieve the LME price. If there is, you know, a higher price in New York, we'll look to capitalise on that, but honestly it's early days right now in terms of what that could be, and we'll have to look at how to do it, but it is definitely an opportunity that we could look to seek. It's pretty volatile,

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Brian, mean, you know, this only came out and it came out, I think definitely is a bit of a surprise to everyone. And so, you know, I think we and the rest of the industry is looking for a bit more clarification, but it looks like it's, you know, from what we see so far, it's related to refined gold from Switzerland. And, know, we're not sure how that goes beyond that, and being imported obviously into The United States, and of course as a tariff, it's only paid by whichever American entity is importing that or whoever is importing it into The United States, and so that's not our business, our business is of course selling into the broader gold market. As Vincent said, we are definitely insulated from it, but you could wind up with some, if this does carry through, you could wind up with a bit of a differential in pricing and, you know, we're always, we've got a team down in The Caymans that's always looking for opportunities to try and take advantage of that, but know, tough to it's so fresh and so early, it's tough to be able to look at and to predict if there's some opportunities there, but we'll definitely be looking.

[Brian Macarthur, Managing Director at Raymond James]

Great. No, thanks. That's very clear. I just was trying to again, we don't get to see your contracts. I just wanted to make sure there wasn't anything ever referencing an LME versus a COMEX or something that would prevent you from doing anything, but it sounds like there isn't.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

No, there isn't.

[Brian Macarthur, Managing Director at Raymond James]

Great, thank you very much.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thanks, Brian.

[Operator]

Your next question comes from the line of Tanya Jakusconek from Scotiabank. Please go ahead.

[Tanya Jakusconek, Director at Scotiabank]

Great. Thank you. Good morning, everyone. Thank you for taking my questions. Haitan, congratulations again for you, and I'm gonna start with you.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Thanks, Jane.

[Tanya Jakusconek, Director at Scotiabank]

Yes. You're welcome. Back on to the transaction opportunities, you mentioned you have 12 to 15 opportunities. Maybe can you just with the opportunities out there and now several players all looking at similar opportunities, I'm assuming, are you finding that the terms are becoming more restrictive in terms of what you would generally like? And I say that just from trying to understand whether some of these terms, because I know you like to have parent guarantee.

[Tanya Jakusconek, Director at Scotiabank]

I'm just wondering, are the opportunities that you're seeing now becoming more restrictive on terms?

[Haytham Hodaly, President at Wheaton Precious Metals]

Definitely becoming more competitive on terms, I would say out there, Tanya. But at this point in time, for the opportunities that we're looking at, and given how we structure our transactions, we're fairly comfortable moving forward and bidding on all those opportunities. There are some opportunities, obviously, that we've seen in the marketplace as of late that aren't necessarily the structure that we would like. They are still good opportunities, I think we would look to get different types of structures if we went down the path. We're successful bidders there.

[Tanya Jakusconek, Director at Scotiabank]

Okay, so you're not finding them more restrictive, just more competent, you said more competitive?

[Haytham Hodaly, President at Wheaton Precious Metals]

It's definitely more competitive, not restrictive. We're still seeing opportunities coming in daily and bidding on opportunities on a regular basis. We probably bid on more opportunities this year and larger opportunities than we have in any other year in the last ten years.

[Tanya Jakusconek, Director at Scotiabank]

And then, Haitan, you mentioned, and again, you didn't size wise, think in the last conference call, you had mentioned working mainly in the 100 to $3.50 range, and then a few in the 500 to 1,000,000,000. Can you just review with us what the ranges are right now that you're seeing?

[Haytham Hodaly, President at Wheaton Precious Metals]

That's still you're probably still hitting the mark there, Tanya. I think there's probably, I would say 80% are in the sub $400,000,000 range, and there are a few transactions that are, call it, between $750,000,000,000 to a billion plus.

[Tanya Jakusconek, Director at Scotiabank]

Okay. And then you mentioned that you're also, two thirds were developing, one third operating and M and A opportunities. So, when you talk about M and A opportunities, are you talking about corporate transactions?

[Haytham Hodaly, President at Wheaton Precious Metals]

So I'm not talking about corporate transactions for Wheaton, what I'm talking about is supporting a transaction where assets are being sold, and they're looking for funding to acquire those assets. From a corporate transaction perspective, we keep models on everybody out there. It makes way more sense right now to continue to deploy capital into streaming agreements than to consolidate any other company, given the strong premiums that everyone's trading at.

[Tanya Jakusconek, Director at Scotiabank]

Okay, I just wanted to clarify that because I thought when you had talked about M and

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

A. No,

[Haytham Hodaly, President at Wheaton Precious Metals]

no, absolutely.

[Tanya Jakusconek, Director at Scotiabank]

No, thank you for that. If I could ask one just question on just on the guidance for the year, you've done very well in the six months. I think previously the guidance had been 47%, 53% production profile, second half weighted. I'm just kind of wondering, and you gave us some of the mines that are all going to do better in the second half. Can I just kind of think about whether that still makes sense for you and whether there is a bias to the fourth quarter over third quarter improvement on these assets?

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Yeah, thanks, Tanya. It is definitely still that $47.53 and I would say that there's a slight bias to the fourth quarter just as all of these properties start to ramp up in the fourth quarter. So we are seeing that kind of strong growth as the other operations kind of come online through the better part of the second half of the year. Really, I mean, Goose is just starting up and we'll see a little bit on the Platte Reef here, we'll see Mineral Park starting up in the third quarter here and really kind of ramping up through the fourth quarter. So I think we'll see slightly stronger production in the fourth quarter, but that 4,753 is still pretty accurate.

[Tanya Jakusconek, Director at Scotiabank]

And then just on the silver side, I noticed that Newmont had strong silver out of Penasquito and they're obviously forecasting a dip in Q3 and then back stronger in Q4. So should I be thinking that your the second half of your forecast for silver should be relatively stable and you kind of see that increase in Q4 into 2026?

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Yep, that's accurate.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Okay.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Yeah, I would say, one of the areas for possible upside there, Antamina is, of course, also an important silver producer for us, they've had some challenges, but if they can get back on track, we would see a bit of a bump in silver production on that side too. So we should easily be able to maintain, if not perhaps even grow a little bit of silver production over the course of the year.

[Tanya Jakusconek, Director at Scotiabank]

Okay. That's helpful. Thank you very much, and congrats on a good quarter.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thank you, Tanya. Thanks,

[Operator]

Your next question comes from Daniel Majors from UBS. Please go ahead.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Hi. Thanks for the questions. Congrats on a good quarter. Yeah. A couple of follow ups.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Just on Matt's question on the tax. I have $115,000,000 payment in twenty twenty five twenty six. Is that the right quantum of expected tax payment?

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

That's right, Ben. The payment. 120, or 112 is the exact number in our balance sheet, so that would be what I would reference for 2026.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

That's paid in 2026 for 2024, just to clarify.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Yeah, sure. Okay, thanks. And then the second question, just again, follow-up on Brian's question slightly on the mechanics of taking delivery of gold. So you take the credits, is that from a mine in the form of dore or from a refinery specifically? Because Paris has only two gold refineries in The US.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Do you take any credit delivery from those refineries? Because those would be the areas that could take advantage of the COMEX.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

No, we take the credits directly from our counterparties, you know, the mining partner, so we're not dealing directly with the refinery. There are a couple small contracts where we're taking concentrate offtake, but I don't expect that to get impacted either, none of those refineries that our partners use are located in The US, or has, you know, interaction with them in that matter. So we're really insulated from these tariffs.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Okay, thanks. And then the next one, just on the deal pipeline again, I mean, the message, I think, from you and some of your peers in the last couple of quarters has been more interest in gold assets financing rather than copper or anything else. Is that changed at all? Is the main pipeline still more kind of gold focused in terms of assets themselves or are you seeing any byproduct assets coming The

[Haytham Hodaly, President at Wheaton Precious Metals]

optimal structure would obviously we take precious metals out of a base metal company. And that's where you get the best margins, best contango. What I would say is that what we're seeing right now, I would say is probably about two thirds of those are still diversified and about one third would be precious metals from a precious metals company.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Okay. So that's out of your pipeline, about two thirds is byproducts?

[Brian Macarthur, Managing Director at Raymond James]

It's still precious metals versus

[Haytham Hodaly, President at Wheaton Precious Metals]

base metal producer. Correct.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Okay. And

[Haytham Hodaly, President at Wheaton Precious Metals]

one third is metals from a fresh metals producer given the strong margins obviously. We're not looking at the same margins we have over the last fifteen years. You've got some very strong margins with the gold prices doubling in the last few years.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Okay, thanks. And then just final one on the capital allocation. I mean, I guess you've articulated that you want to continue to focus on accretive ways to deploy capital. The consensus doesn't really have much in the way of growth and dividends going forward. I mean, should we be expecting any increase in the rate of growth and dividends given the increase in cash generation for the gold price?

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Or is it still going to be sort of focused on a slow growth, progressive growth in dividend over the next couple of years?

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Daniel, I mean, we have committed to growth in the dividend. The scale of that growth is going to be dependent on how effective we are putting capital back into the ground, right? If we don't see accretive, well structured agreements are available for us to continue growing the portfolio, then you're going to see more cash go back to the shareholders through the dividend. You'll see higher growth on an annual basis. If we are successful in terms of finding well structured, you know, high margin, good quality opportunities, accretive assets to add to our portfolio.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

And so, you know, I think the best judge of that is look at what our balance sheet is doing towards the end of each year. If we're busy making new investments, and always keep in mind that we do have capital commitments as our, you know, this growth pipeline that we've got is going to be funded through our cash flows over the next while. But, you know, I think that's the best way to look at it. So, you know, if we have no significant tractions over the course of this year, you're going to see higher rate of growth in the dividend. If we have a bunch of situations, contracts, agreements, acquisitions over the course of this year, less capacity to put into the growth of the dividend.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

So, it's going to be, you know, it's a balance that is always reflective of the market at the time.

[Daniel Major, Metals & Mining Analyst at UBS Investment Bank]

Great. Thank you and have a nice weekend.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thank you, Daniel.

[Operator]

Your last question comes from Cosmos Chiu from CIBC. Please go ahead.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Hi, Randy and team. Thanks for the conference call and congrats, Haytham and Kurt for the promotions. Deserved. Maybe my first question is on sure, Ethan. Maybe my first question is on your sales in the quarter.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

As I can see, sales were a lot higher not a lot higher, but sales compared well in terms of production, in terms of numbers. Usually, we see that drawdown in q four and not in q two. So was the higher sales compared to production in q two expected? And then kinda related to it, you know, Vincent, as you mentioned, you expect inventory or produced but not delivered to increase, you know, for the rest of 2025. I guess my question is how much visibility do you get from, you know, the operators?

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

How much insight do you get from the operators? So were you surprised what happened sales versus production in q two? And, you know, how much visibility do you have on a go forward basis?

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Hey Cosmos, Q2 did benefit a big drawdown in PBND. What happened there was Solovo, our biggest partner, and deliver a last shipment right before quarter end. That typically might have trickled into the next quarter, and these things are pretty unpredictable, it's really driven by when they shipped the shipment. So we expect, given the ramp up of the new mines that we have coming on, to go back to about three months. So the drawdown in Q2 of 11,000 ounces.

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

You're going to see that claw back a bit, that's our expectation. It's not something we could completely forecast, again, it's really driven by shipment dates, but that's our expectation.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Great. Maybe switching gears a little bit, Wes, as you mentioned, you know, Blackwater, Artemis, there appears to be a potential acceleration of phase two. I think Artemis will try to make a final decision by year end 2025. Have you looked into like what's the potential impact to WPM and have you quantified it in terms of what that could be? And is that potentially included in your long term guidance?

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Ghazal, I would say that the acceleration is not included in the long term guidance right now. I mean, if you look back at their feasibility study, they did have a phase two and a phase three in that feasibility study, and that's what we've got built into our long term guidance right now. We are in regular communication with them and certainly are excited about the idea of them accelerating that phase two, so, but that isn't built into anything that we have at the moment.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Then have quantified it internally, externally, anything that you can share with us or maybe not yet?

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

No, no, other than what is in the feasibility study for them right now, we haven't quantified it any further. It could certainly be accelerated.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Yeah, gotcha.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Yeah, and so the amount, the phase two would represent how much of an increase in production?

[Vincent Lau, SVP & CFO at Wheaton Precious Metals]

Sorry, think it's been asked.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

Yeah, yeah, so the phase two phase two is a doubling of production and then phase three is then up to another, I think it's going up to about 30,000 I think it is in phase two, and then about fifty five, sixty thousand in phase three. And what they're talking about right now is potentially accelerating that phase three, so when that kind of combining a phase two and three, so a larger increase in that initial. And I think that's the exciting part, that doing that much sooner than what they'd originally intended.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

I agree, that would be very exciting for WPM. Then at San Dimas, I noticed that the gold silver ratio changed from 70 to 90 as a result of the moving commodity prices. You know, to confirm, it's not gonna go any higher than 90 to one, I believe, but it does matter because I think the silver gets converted into gold before being passed on to you. So it does matter to you. And if silver prices do go for a run, when could it potentially come back down?

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Yeah, yeah. We wind up having to get to the point where silver outperforms such that the silver gold ratio gets down around 70. And then you would, and it has to stay there, I think it's a six month period, yeah, six month period that it has to trade at those levels before the conversion ratio swaps. So, you know, we have seen silver outperform gold of late, and so if you see continued strengths, you know, we're not ruling out that a possibility, but know, Cosmos, you've known me well often know that I'm a little bit more bullish on silver than I am on gold. So if some of that intuition is correct, hopefully we will plot the other way.

[Wes Carson, Vice President-Mining Operations at Wheaton Precious Metals]

We're telling we have benefited from it the last six months of it being that higher rate and we've been getting paid at 70 to one, so it's a, yeah, but it has to stay at below 70 to one for six months in order to go back to the 70 to one.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

Yeah. Okay. So sometime in next 2026. Yeah.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Great. And that That's what I think.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

I believe you. You've been right, Randy. And then maybe one last question. Maybe I can also ask about the deal pipeline. I'm kidding.

[Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets]

I'm not. I wanna start my weekend, so go along with my plan. And congrats on a very good quarter. Thanks Cosmos.

[Randy Smallwood, President, CEO & Director at Wheaton Precious Metals]

Thank you Cosmos, and thanks everyone for dialing in today. The strength demonstrated in the first half of this year does reinforce Wheaton's position as a premier low risk choice for investors who are seeking exposure to gold and silver. Our high quality portfolio, sector leading growth profile and strong commitment to sustainability provide shareholders with a compelling outlook and what we believe is one of the most effective vehicles for investing in gold and silver. We'd like to thank all of our stakeholders for their continued support as we enter this exciting period of sustained organic growth. We look forward to speaking with you all again very soon. Thank you.

[Operator]

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

Participants

Executives

• Emma Murray, VP - IR
• Randy Smallwood, President, CEO & Director
• Wes Carson, Vice President-Mining Operations
• Vincent Lau, SVP & CFO
• Haytham Hodaly, President

Analysts

• Matthew Murphy, MD - Equity Research at BMO Capital Markets
• Brian Macarthur, Managing Director at Raymond James
• Tanya Jakusconek, Director at Scotiabank
• Cosmos Chiu, Executive Director & Institutional Equity Research - Precious Metals at CIBC World Markets
• Daniel Major, Metals & Mining Analyst at UBS Investment Bank