Wheaton Precious Metals Corp. Common Stock 2026 Q2 Earnings Call

Please go ahead. Thank you, Julianne.

Good morning, ladies and gentlemen, and thank you for participating in today's call. I am joined today by Hayden Coddle, Wheaton Precious Metals President and Chief Executive Officer, Vincent Lau, Chief Financial Officer, Wes Carson, Vice President, Mining Operations, and Neil Burns, Vice President, Corporate 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 forward-looking statements. Please refer to the 2 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 would like to turn the call over to Hayden Coddle, President and Chief Executive Officer.

Thank you, Emma, 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 flow. 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 860,000-940,000 gold equivalent ounces.

Production in the second quarter was bolstered by the initial contribution from our expanded Antamina silver stream and the continued realization of the company's growth strategy with incremental production realized from Hemlo, Phoenix, Platreef 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 Antamina silver stream with BHP, a defining milestone for both Wheaton 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 Jervois project, through our partnership with KGL Resources. We expanded our royalty portfolio through the Spanish Mountain and Cipango 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 thirtieth, 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 Knights' 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.

Wes? Thanks, Hayden. Good morning, everyone.

Overall production in Q2 was 202,000 GEOs, a 6% year-over-year increase, primarily driven by the addition of BHP's Antamina stream, together with the new production from Phoenix, Hemlo, Mineral Park, Platreef and Goose. In Q2, Salobo produced 62,100 ounces of attributable gold, a decrease of approximately 11% relative to Q2 2025, primarily the result of lower grades. Vale Base Metals disclosed that the coarse particle flotation is the key near-term growth driver at Salobo, supporting Salobo 3's expansion from 12 million to 18 million tons per annum and targeted total throughput of 42 million tons per annum by 2029. In Q2, Antamina 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 Antamina PMPA, which increased the company's share of silver production at Antamina from 33.75% to The benefit of the increased production share was partially offset by lower silver grades and the timing of planned maintenance as a scheduled July maintenance shutdown was advanced into June. The lower grades were attributable to pit sequencing with a greater portion of copper-only ore processed relative to copper zinc ore, which contains more silver. An increase in copper zinc ore is expected to be processed in the third quarter, which is expected to result in higher silver grades. In Q2, Blackwater produced 100,000 ounces of attributable silver and 5,900 ounces of attributable gold, an increase of 7% and 46% respectively relative to Q2 of 2025, primarily the result of higher recoveries, grades, and throughput.

On August 4th, 2026, Artemis Gold provided an update on the Phase 1 expansion at Blackwater, which is anticipated to increase the plant's nameplate capacity by 33%, from 6 million to 8 million tons per annum. Artemis reported that the Phase 1A was 57% complete at the end of Q2 2026 and remains on schedule for commissioning in Q4 2026, with the expansion expected to contribute to production beginning in 2027. Artemis also commenced major works construction on its larger EP2 growth project at Blackwater, which remains on schedule and on budget. Together, Phase 1A and EP2 are expected to expand throughput capacity by 250%, from 6 million to 21 million tons per annum by 2028, increasing annual gold production to over 500,000 ounces. Several development projects continued to ramp up in Q2 2026, including Mineral Park, Phoenix, Platreef, and Goose.

Construction also advanced across a number of projects, including Kurmuk, where Allied Gold reported the project remains on budget and on schedule, with start of operations expected in August and first gold ore a few weeks thereafter. Koné, where Montage Gold reported that the project remains on budget and ahead of schedule with first gold ore targeted for Q4 2026 through the oxide circuit and the hard rock combination circuit on track for completion in Q2 2027. Wheaton's production outlook for 2026 remains unchanged, and we currently expect to achieve our annual production guidance of 860,000 to 940,000 GEOs. Production is expected to be weighted to the second half of 2026, driven by mine sequencing at Salobo and Peñasquito, the first full contribution from the Antamina BHP stream, and the continued ramp-up of newly operating assets through 2026.

Looking ahead, we project annual production to grow at an industry-leading rate of approximately 50%, reaching 1.2 million GEOs by 2030, with average annual production forecast to remain at approximately 1.2 million GEOs from 2031 through 2035. That concludes the operations overview, and with that, I'll turn the call over to Vince.

Thank you, Wes. Production in Q2 was 202,000 GEOs, a 6% increase year-over-year, driven primarily by the addition of the BHP Antamina 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 ounces carried over from prior periods. Consistent with our earlier guidance, Q2 deliveries reflected two of the typical three quarterly shipments under the new BHP Antamina 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 PBND, 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 2.5 to 3.5 months.