Wheaton Precious Metals - Earnings Call - Q2 2025

Transcript

Speaker 9

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2025 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 *1 on your telephone keypad, or you can type your question in the Q&A box of the webinar. If you would like to withdraw your question, please press *2 on your keypad. Thank you. I would now like to remind everyone that this conference call is being recorded on Friday, August 8, 2025, at 11:00 A.M. Eastern Time. I will now turn the conference over to Emma Murray, Vice President of Investor Relations. Please go ahead.

Speaker 2

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 Precious Metals' Chief Executive Officer, Haytham Hodaly, President, Curt 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. 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.

Speaker 3

Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton Precious Metals' second quarter results of 2025. Before we begin, I'd like to congratulate both Haytham Hodaly and Curt Bernardi for their well-deserved promotions. In June, the company announced the appointment of Haytham Hodaly, former Senior Vice President of Corporate Development, to President of the company, and Curt Bernardi, formerly Senior Vice President 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 Curt will be pivotal in driving our strategy forward. 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 Precious Metals delivered another outstanding quarter, achieving record revenue, adjusted net earnings, and operating cash flow for both the second quarter and the first half of 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 Peñasquito, 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 risk year is progressing as planned.

The company remains well capitalized with over $1 billion in cash on hand at quarter end and a $2 billion undrawn revolving credit facility, which, when coupled with the strength of our forecasted operating cash flows, provides 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 Knights' 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. The expression of interest phase is now open until August 29th, and we are excited to engage with innovators who are helping shape the future of responsible mining. 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 Mining Operations, who will provide more detail on our operating results. Wes.

Speaker 1

Thanks, Randy. 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 Salobo 3 and ongoing improvements of Salobo 1 and 2. The value indicates that by late July, Salobo 3 had fully ramped up and that the entire complex is now operating at full capacity, consistently delivering strong operational performance. Antamina produced 1.3 million 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. 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 gold-equivalent ounces year to date. The ramp-up has been both rapid and safe. Artemis Gold reports that by June, the mill was operating above design capacity with over 5 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 phase two expansion, and a board investment decision is expected later in 2025. Wheaton Precious Metals' 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. At Salobo, production is forecast to remain steady throughout the remainder of 2025, supported by slightly increased throughput across Salobo 1, 2, 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 risk year remains on track, and production from Mineral Park, Goose, Kone, and Platreef continues to be forecast for the second half of 2025. That concludes the operations review, and with that, I'll turn the call over to Vincent.

Speaker 3

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 in 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 2.7 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 $503 million, an increase of 68% compared to last year.

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 $292 million, while adjusted net earnings increased by 91% to reach a record $286 million. Operating cash flow increased to $450 million, 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.

During the quarter, we made total upfront cash payments for streams of $347 million, including $156 million for Kone, $144 million for Salobo, $44 million for Kermit, and $3 million for Congreos. Following quarter end, we made an additional $156 million payment to Kone, as the Montage team continues to advance construction. Overall, net cash outflows amounted to $80 million in the quarter, resulting in a cash balance of $1 billion at June 30th. This cash balance, combined with the fully undrawn $2 billion revolving credit facility, plus the $500 million 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 Randy.

Speaker 8

Thank you, Vincent. In summary, Wheaton Precious Metals 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 risk year. Our growth profile was further de-risked as construction activities advanced on a number of development projects, including Mineral Park, Plot Reef, Kone, and Kermit. 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. We take pride in our leadership amongst precious metals 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?

Speaker 9

Thank you very much. Ladies and gentlemen, we will now conduct the question and answer session. If you would like to ask a question, please press *1 on your telephone keypad. If you would like to withdraw your question, press *2. There will be a brief pause while we compile the Q&A roster. Your first question comes from the line of Matthew Murphy from BMO Capital Markets. Please go ahead.

Morning. Great quarter. Congrats, Haytham and Curt, 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. 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?

Speaker 8

Thanks for the question, and the kind words at the beginning. I will say that, you know, we focus on accretive transactions that will maintain our strong security structure. We've always done that. That hasn't changed 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 12 and 15 opportunities that we're looking at right now. I would say two-thirds of those are development stage opportunities. One-third are probably operating, and there's also some M&A opportunities in there as well. We have a solid war chest to acquire additional accretive streams, and we're going to continue to try and deploy it. Again, not every stream is a Wheaton stream.

It has to have certain characteristics for us to add it to our strong portfolio already.

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?

Speaker 3

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, in Q2 or Q3. In our balance sheet, we have that characterized as a current liability now. That's the amount that will go out in 2026.

Okay, 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?

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

Speaker 8

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

Yeah, okay. Thank you very much.

Speaker 3

Thanks, Matt.

Speaker 9

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

Speaker 6

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. 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 COMEX price ended up being very different than the LME price? Can you benefit from that in any ways? I realize the tariff, you know, bars, not 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.

Speaker 3

Vincent, you want to take it? Sure. Hey, Brian. Yeah, first of all, we're insulated from any of the tariffs. We take delivery of credits of gold and silver in mainly London. We're not subject to any of these tariffs. At minimum, we would achieve the LME price. If there is a higher price in New York, we'll look to capitalize on that. Honestly, it's early days right now in terms of what that could be. We'll have to look at how to do it. It is definitely an opportunity that we could look to seek.

Speaker 8

It's pretty volatile, Brian. I mean, you know, this only came out, and it came out, I think, definitely as a bit of a surprise to everyone. I think we and the rest of the industry are 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. We're not sure how that goes beyond that and being imported, obviously, into the United States. 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. 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. You could wind up with some, if this does carry through, you could wind up with a bit of a differential in pricing.

We've got a team down in the Caymans that's always looking for opportunities to try and take advantage of that. It's so fresh and so early, it's tough to be able to look at and to predict if there's some opportunity there. We'll definitely be looking.

Speaker 6

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. It sounds like there isn't.

Speaker 8

No, no, there isn't.

Speaker 6

Great. Thank you very much.

Speaker 8

Thanks, Brian.

Speaker 9

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

Speaker 10

Great. Thank you. Good morning, everyone. Thank you for taking my question. Haytham, congratulations again for you. I'm going to start with you.

Speaker 6

Thanks, Jane.

Speaker 10

Yes, you're welcome. Back onto 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? I say that just from trying to understand whether some of these terms, because I know you like to have parent guarantee. I'm just wondering, are the opportunities that you're seeing now becoming more restrictive on terms?

Speaker 8

Definitely becoming more competitive on terms, I would say out there, Tanya. At this point in time, for the opportunities that we're looking at, and given where we, 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. There are still good opportunities, but I think we would look to get different types of structures if we went down the path. We're the successful bidders there.

Speaker 10

Okay. You're not finding them more restrictive, just more complex. You said more competitive.

Speaker 8

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 10 years.

Speaker 10

Haytham, you mentioned, and again, you didn't mention size-wise. I think in the last conference call, you had mentioned working mainly in the $100 million to $350 million range and then a few in the $500 million to $1 billion. Can you just review with us what the ranges are right now that you're seeing?

Speaker 8

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 million range. There are a few transactions that are, you know, called between $750 million to $1 billion plus.

Speaker 10

Okay. You mentioned that you're also, you know, two-thirds were developing, one-third operating, and M&A opportunities. When you talk about M&A opportunities, are you talking about corporate transactions?

Speaker 8

I'm not talking about corporate transactions for Wheaton Precious Metals. 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 in.

Speaker 10

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

Speaker 8

No, absolutely.

Speaker 10

Okay. No, thank you for that. If I could ask one question 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?

Speaker 0

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. We are seeing that kind of strong growth as the other operations come online through the better part of the second half of the year. Really, Goose is just starting up, and we'll see a little bit of the Plot Reef here. We'll see Mineral Park starting up in the third quarter here and really ramping up through the fourth quarter. I think we'll see slightly stronger production in the fourth quarter, but that 47.53 is still pretty accurate.

Speaker 10

On the silver side, I noticed that Newmont had strong silver out of Peñasquito, obviously forecasting a dip in Q3 and then back stronger in Q4. Should I be thinking that the second half of your forecast for silver should be relatively stable and you kind of see that increase in Q4 into Q1 of 2026?

Speaker 0

Yeah, that's fine here.

Speaker 10

Okay.

Speaker 8

I would, you know, one of the areas for possible upside there, Antomina, is, you know, 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. We should easily be able to maintain, if not perhaps even grow a little bit of silver in production over the course of the year.

Speaker 10

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

Speaker 8

Thank you, Tanya.

Speaker 0

Thanks, Tanya.

Speaker 9

Ladies and gentlemen, as a reminder, if you would like to ask a question, please press *1 on your telephone keypad. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your next question comes from Daniel Major from UBS. Please go ahead.

Speaker 4

Hi. Thanks for the questions. We've got some of the good quarter. Yeah, a couple of follow-ups. Just on Matt's question on the tax, I have a $115 million payment in 2025. Is that the right quantum of expected tax payment?

Speaker 3

That's right, Dan. That's the payment. $120 million or $112 million is the exact number in our balance sheet. That would be what I would reference for 2026.

Speaker 8

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

Speaker 4

Yeah, sure. Okay, thanks. The second question, just to kind of follow up on Brian's question slightly on the mechanics of taking delivery of gold. You take the credits. Is that from a mine in the form of doré or from a refinery specifically? Because Paris has only two gold refineries in the U.S. Do you take any credit delivery from those refineries? Those would be the areas that could take advantage of the COMEX.

Speaker 3

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

Speaker 4

Okay, thanks. 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. Has 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 available?

Speaker 8

The optimal structure would obviously be to 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 is probably about two-thirds of those are still diversified, and about one-third would be precious metals from a precious metals company.

Speaker 4

Okay, that's out of your pipeline. About two-thirds is byproduct, and that's out of your pipeline.

Speaker 8

It's still precious metals.

Speaker 4

It's precious metals.

Speaker 8

Precious metals from a diversified base metal producer, correct.

Speaker 4

Okay, thanks.

Speaker 8

One-third is precious metals from a precious metals producer, given the strong margins. Obviously, you know, we're not looking at the same margins we have over the last 15 years. You've got some very strong margins with the gold prices doubling in the last few years.

Speaker 4

Okay, thanks. Just final one on the capital allocation. 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 in dividends going forward. Should we be expecting any increase in the rate of growth in dividends given the increase in cash generation for the gold price, or is it still going to be sort of focused on a very, yeah, a slow growth, progressive growth in dividend over the next couple of years?

Speaker 8

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 at putting capital back into the ground, right? If we don't see accretive, well-structured agreements that 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, high margin, good quality opportunities, accretive assets to add to our portfolio. 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 growth pipeline that we've got is going to be funded through our cash flows over the next while. I think that's the best way to look at it. If we have no significant tractions over the course of this year, you're going to see a higher rate of growth in the dividend. If we have a bunch of significant contracts, agreements, or acquisitions over the course of this year, less capacity to put into the growth of the dividend. It's a balance that is always reflective of the market at the time.

Speaker 4

Great. Thank you, and have a nice weekend.

Speaker 8

Thank you, Daniel.

Speaker 9

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

Speaker 5

Hi, Randy and team. Thanks for the conference call and congrats, Haytham and Curt for the promotions. Well deserved. Maybe my first question is on your sales in the quarter. As I can see, sales were a lot higher, or not a lot higher, but sales compared well in terms of production, in terms of numbers. Usually, we see that drawdown in Q4 and not in Q2. Was the higher sales compared to production in Q2 expected? Kind of related to it, Vincent, as you mentioned, you expect inventory or produced but not delivered to increase for the rest of 2025. I guess my question is, how much visibility do you get from the operators? How much insight do you get from the operators? Were you surprised what happened, sales versus production in Q2? How much visibility do you have on a go-forward basis?

Speaker 3

Yeah, hey, Cosmos. Q2 did benefit from a big drawdown in PBND. What happened there was Salobo, our biggest partner, didn't deliver a last shipment right before quarter end. That typically might have trickled into the next quarter. These things are pretty unpredictable. It's really driven by when they shipped the shipment. We expect, given the ramp-up of the new mines that we have coming on, to go back to about three months. The drawdown in Q2 of, you know, 11,000 ounces, 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.

Speaker 5

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, you know, try to make a final decision by year-end 2025. Have you looked into like what's the potential impact to, you know, Wheaton Precious Metals, and have you quantified it in terms of what that could be, and is that potentially included in your long-term guidance?

Speaker 3

That's what I would say. 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. 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, but that is built into anything that we have at the moment.

Speaker 5

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

Speaker 3

Other than what is in the feasibility study for them right now, we haven't quantified it any further. It could certainly be accelerated.

Speaker 5

Gotcha.

Speaker 3

Yeah, the amount that phase two would represent, how much of an increase in production, sorry? It would be that. The 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 55,000 to 60,000 in phase three. What they're talking about right now is potentially accelerating that phase three and kind of combining a phase two and three, so a larger increase in that initial. I think that's the exciting part, doing that much sooner than what they'd originally intended.

Speaker 5

I agree. That would be very exciting for Wheaton Precious Metals. At Sandy Math, I noticed that the gold-silver ratio changed from 70 to 90 as a result of the moving commodity prices. To confirm, it's not going to go any higher than 90:1, I believe. It does matter because I think the silver gets converted into gold before being passed on to you, so it does matter to you. If silver prices do go for 1, when could it potentially come back down?

Speaker 3

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 it has to stay there. I think it's a six-month period that it has to trade at those levels before the conversion ratio swaps. We have seen silver outperform gold of late. If you see continued strength, we're not ruling out that possibility. Cosmos, you've known me well enough to know that I'm a little bit more bullish on silver than I am on gold. If some of that intuition is correct, hopefully we will plow the other way. We're telling you we have benefited from it the last six months of it being that higher rate, and we've been getting paid at 70 to 1.

It has to stay at below 70 to 1 for six months in order to go back to the 70 to 1.

Speaker 5

Okay, sometime in 2027.

Speaker 3

Yeah.

Speaker 5

Great. That.

Speaker 3

That's what I think.

Speaker 5

I believe you. You've been right, Randy. Maybe one last question. Maybe I can also ask about the deal pipeline. I'm kidding. I'm not. I want to start my weekend. Those are all the questions I have. Congrats on a very good quarter.

Speaker 3

Thanks, Cosmos.

Speaker 8

Thank you, Cosmos. And thanks, everyone, for dialing in today. The strength demonstrated in the first half of this year does reinforce Wheaton Precious Metals' position as a premier low-risk choice for investors who are seeking exposure to gold and silver. Our high-quality portfolio, sector-leading organic growth profile, and strong commitment to sustainability provide shareholders with a compelling outlook. 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.

Speaker 9

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