Wheaton Precious Metals Q3 2026 Earnings Call Transcript

Wheaton Precious Metals (NYSE:WPM) reported third-quarter financial results on Friday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Wheaton Precious Metals reported a record-breaking first nine months of 2026, with significant increases in production, sales volumes, revenue, earnings, and operating cash flow.

The company produced 231,000 gold equivalent ounces in Q3 2026, a 13% increase year-over-year, supported by the addition of new streams and ongoing ramp-ups of development assets.

Strategic initiatives included Vale’s investment in Salobo’s ore processing capacity, first gold pours at Côte d’Ivoire’s Kone project, and the transition to production at Ethiopia’s KurMuk mine.

Despite a slight decrease in Salobo’s gold production due to lower grades, other projects like Antamina saw significant increases in silver production.

The company maintains a strong financial position with a balance sheet boasting approximately $3 billion in total liquidity, enabling continued funding of existing commitments and pursuit of new streaming opportunities.

Wheaton Precious Metals’ production guidance for 2026 remains unchanged, with expectations to achieve between 860,000 to 940,000 GEOs and a long-term target of 1.2 million GEOs by 2030.

Management highlighted ongoing corporate development efforts and a disciplined approach to capital allocation, focusing on high-quality streaming opportunities.

Future growth is expected from several development projects, including Copper World, Jervois, and Marathon, with significant production growth anticipated through 2030.

Full Transcript

OPERATOR

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Wheaton Precious Metals 2026 Third 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 star then the number one on your telephone keypad or type your question in the Q&A box of the webinar.

If you would like to withdraw your question, press star one again. Thank you. I would like to remind everyone that this conference call is being recorded on Friday, November 6, 2026 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.

Emma Murray (Vice President of Investor Relations)

Thank you, Julianne. Good morning, ladies and gentlemen, and thank you for participating in today’s call. I am joined today by Haytham Hodaly, Wheaton Precious Metals’ President and Chief Executive Officer; Vincent Lau, Chief Financial Officer; Wes Carson, Vice President, Mining Operations; and Neil Burns, Vice President of 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 presentations page of our website. Some of the comments on today’s call may include forward-looking statements. Please refer to slide 2 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’d like to turn the call over to Haytham Hodaly, Wheaton’s President and Chief Executive Officer.

Randy Smallwood (President and Chief Executive Officer)

Thank you, Emma, and good morning, everyone. Thank you for joining us today to discuss Wheaton’s third quarter results of 2026. Wheaton’s momentum continued in the third quarter, supporting a record-breaking first nine months for the company. Year to date, we have delivered record production, sales volumes, revenue, earnings, and operating cash flow. Our portfolio of long-life, low-cost assets produced 231,000 gold equivalent ounces in the third quarter, led by our operating assets including Salobo, Antamina, and Peñasquito, together with the continued ramp-up of our development assets, keeping us firmly on track to achieve our 2026 production guidance range. Our corporate development team continues to evaluate a robust pipeline of opportunities while maintaining the discipline to pursue only the most accretive transactions.

At the same time, the quarter was exceptionally active across our portfolio with a series of catalysts that further de-risk our growth pipeline and mark meaningful progress towards future growth. Vale Base Metals announced plans to implement a coarse particle flotation circuit at Salobo, an investment that is expected to add 6 million tonnes to Salobo’s annual ore processing capacity and one that underscores Vale’s long-term commitment to the operation.

In Côte d’Ivoire, Montage Gold achieved first gold pour at its Kone project, and in Ethiopia, Allied Gold has begun production at its KurMuk mine, marking the transition of two key development assets into production. This week, B2Gold announced that they have completed phase one upgrades to the fixed crushing circuit at its project in Nunavut. We also received our first deliveries related to Ivanhoe’s Platreef project in South Africa, an important step as that project continues to ramp up.

Furthermore, Hudbay approved construction at the Copper World project in Arizona, a significant milestone as this long-life asset advances toward production. And in Australia, KGL Resources approved a final investment decision for its Jervois project. Collectively, these catalysts reinforce our confidence in Wheaton’s sector-leading organic growth profile of 50% by 2030. That growth is already embedded in our existing portfolio and is not reliant on future transactions. Our balance sheet remains strong, with approximately $3 billion in total liquidity between cash on hand and our revolving credit facility as of September 30th. Together with our robust forecasted operating cash flows, we believe this provides ample flexibility to fund all outstanding commitments and pursue new streaming opportunities.

Importantly, we remain disciplined in employing that capital. Our corporate development team continues to see healthy demand for streaming, with a focus on high-quality opportunities that are structured to enhance our existing portfolio and further strengthen our growth profile. At our investor day held during the quarter, we highlighted what we call the Wheaton Difference, showcasing how our focus on high-quality assets, superior structuring, and strong partnerships underpins our disciplined approach to capital allocation. Turning to sustainability, innovation remains critical to advancing more efficient and sustainable mining practices. We have been encouraged by the submissions to our third annual Future of Mining Challenge, which is focused on mine optimization and reducing land impacts.

Three finalists are expected to be announced in February, and the winner set out in March 2027. 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,

Wes Carson (Vice President, Mining Operations)

Thanks. Good morning, everyone. Overall production in the third quarter was 231,000 gold equivalent ounces, a 13% year-over-year increase primarily driven by the addition of the BHP Antamina stream together with new production from Hemlo, Phoenix, Platreef, and Mineral Park in Q3. Salobo produced 65,800 ounces of attributable gold, a decrease of approximately 2% relative to Q3 2025, primarily the result of lower grades due to mine sequencing, partially offset by higher recoveries and throughput.

As Haytham mentioned, during the quarter, Vale Base Metals reported that coarse particle flotation is expected to be the key near-term growth driver at Salobo, supporting Salobo 3’s expansion from 12 million to 18 million tonnes per annum and targeting total throughput for the operation of 42 million tonnes per annum by 2029. In Q3, Antamina produced 2.7 million ounces of attributable silver, an increase of approximately 60% relative to Q3 2025. The increase was primarily driven by the newly acquired BHP Antamina stream, which increased the company’s share of silver production in Antamina from 33.75% to 67.5%, effective April 1, 2026. The increased production share was partially offset by lower silver grades, which were attributable to pit sequencing, with a greater portion of copper-only ore processed during the quarter relative to copper-zinc ore, which contains more silver.

On September 26, 2026, Montage Gold reported that it achieved first gold pour at its Kone mine on budget and ahead of schedule. Montage reported that the oxide circuit is expected to reach commercial production in Q4 2026, while construction of the hard rock comminution circuit remains on budget and on track for completion in Q2 of 2027. Several development projects continued to ramp up in Q3 2026, including Mineral Park, Phoenix, and Platreef, with commercial production at both Phoenix and Platreef expected in Q4 2026.

At KurMuk, Allied Gold reported that ore had been introduced into the processing plant and the mine is now in production, ramping up into the end of the year, with commercial production expected before year-end. We also saw significant de-risking across the rest of our development pipeline. At Copper World, Hudbay and Mitsubishi announced the results of the definitive feasibility study and formally approved the final investment decision to proceed with construction, with first targeted production in the second half of 2029. In Australia, the KGL Resources board approved the final investment decision for the Jervois project, which is fully funded, with concentrate production targeted for the first half of 2028.

At Marathon, Generation Mining commenced construction following the earlier announcement that it had secured final funding, with early works expected to run through Q4 2026 and into 2027. With Kone and KurMuk now transitioning into production, Jervois targeted for first production in 2028, and Copper World for the second half of 2029, these catalysts are expected to continue to de-risk the development pipeline that underpins our industry-leading growth profile. Wheaton’s production outlook for 2026 remains unchanged, with strong year-to-date production of approximately 640,000 GEOs. We remain well positioned to achieve our annual production guidance of 860,000 to 940,000 GEOs and maintain a strong production forecast across the portfolio for the fourth quarter.

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

Vincent Lau (Chief Financial Officer)

Thank you, Wes. Production in the third quarter was 231,000 GEOs, a 13% increase year over year, driven primarily by the addition of the BHP Antamina stream and continued contributions from newly operating assets, including Hemlo, Phoenix, Platreef, and Mineral Park. Sales volumes were 192,000 GEOs, a 19% increase from the prior year. At the end of the third quarter, the produced but not yet delivered, or PBND, balance was estimated to be 179,000 GEOs, representing 2.6 months of payable production.

This represents an increase from the prior quarter due primarily to the timing differences between production and sales. Looking ahead, we expect increased production in the fourth quarter to result in a slightly higher PBND balance, with higher sales volumes expected in the first quarter of 2027. Due to the timing differences between production and sales, strong commodity prices together with higher sales volumes generated quarterly revenue of $772 million, an increase of 62% compared to the prior year. This increase was driven by a 36% increase in the average realized gold equivalent price combined with a 19% increase in the GEOs sold. Of this revenue, 51% was attributable to gold, 46% to silver, and the remainder to palladium and cobalt.

Net earnings increased by 12% from the prior year to $410 million, while adjusted net earnings increased by 46% to $410 million, resulting in year-to-date records across revenue, net earnings, and operating cash flows. These results highlight the strength of our asset base and the ability of the streaming model to translate higher commodity prices into significant cash flow. During the quarter we generated approximately $645 million in operating cash flow and made approximately $87 million in upfront payments related to El Domo and Armado. We also made a quarterly dividend payment of approximately $88 million and repaid $372 million under our revolving credit facility. As a result, net debt declined from approximately $1.9 billion at the end of the second quarter to approximately $1.5 billion at the end of the third quarter, demonstrating the strength of our cash generation and our capacity to rapidly repay debt.

On September 30th, we had approximately $146 million in cash on hand and $1.6 billion of debt outstanding under our term loan and revolving credit facility. With our revolver nearly repaid, we intend to maintain the term loan to preserve liquidity for potential near-term opportunities while retaining significant flexibility to fund our existing commitments. Given the strength of our production outlook and high-margin business model, we expect to continue to reduce our net debt and return to a net cash position in the near term while remaining well positioned to pursue additional accretive stream acquisitions. This concludes the financial summary. I’ll now hand things back over to Hazen.

Randy Smallwood (President and Chief Executive Officer)

Thank you, Vincent. In summary, Wheaton’s strong momentum continued through the third quarter, contributing to a record-setting first nine months year to date. We achieved records across production and sales volumes, revenues, earnings and operating cash flow, reflecting the quality and strength, pardon me, of our portfolio. Our growth pipeline delivered on multiple fronts with the first gold pour at Kone, the start of production at Kermuk, the construction of Hooverful Copper World FID approval at Your Voice and the planned implementation of a coarse particle flotation circuit at Salobo, which represent just a few of the catalysts we see in our growth profile. Our balance sheet remains strong, providing the flexibility to fund all of our commitments while pursuing well-structured, accretive opportunities.

And as the pioneers of the streaming model, we continue to believe Wheaton Precious Metals offers one of the most effective ways to gain exposure to gold and silver, with a growing dividend and a sector-leading growth profile. With that, I would now like to open up the call for questions. Operator.

OPERATOR

Thank you, ladies and gentlemen. We will now conduct the question-and-answer session. If you would like to ask a question, please press star, then the number one on your telephone keypad. If you would like to withdraw your question, press star one again. There will be a brief pause while we compile the Q&A roster. Our first question comes from Fahad Tariq from Jefferies. Please go ahead, your line is open.

Fahad Tariq (Analyst at Jefferies)

Hi, thanks for taking my question. Just on the gold guidance for the year, I think if I do the math right, it implies a pretty significant pickup in the fourth quarter. Can you maybe touch on the contributing factors to that and specifically on Salobo and what you’re expecting on gold grade there? Thanks.

Wes Carson (Vice President, Mining Operations)

Yeah, thanks for the question, Fahad. So really it is Salobo that is the main driver of the improvement in the fourth quarter. And really what we’re looking at there is just getting back into kind of the bottom of the pit. We did see in the third quarter a slight drop in grades at Salobo, really as they were forced, just due to some operational issues, to move into phase five of the pit, which is a little bit lower grade. And that means really the fourth quarter here we should see quite a significant grade improvement and expected strong.

All the other assets are actually setting up pretty well for this fourth quarter as well. So I think really we’re expecting a strong gold fourth quarter.

Fahad Tariq (Analyst at Jefferies)

Okay. And then just to follow up, is there any expected contribution from Kone or Kermuk in the fourth quarter? Is there going to be a more significant lag and that’ll be something more in the first quarter of next year? Thanks.

Wes Carson (Vice President, Mining Operations)

We may see some very small production from both those assets in the fourth quarter, but it’s not currently in our forecast. So if we do see some, it’ll be fairly small.

Fahad Tariq (Analyst at Jefferies)

Okay, that’s it for me. Thank you.

OPERATOR

Our next question comes from Brian MacArthur from Raymond James. Please go ahead, your line is open.

Brian MacArthur (Analyst at Raymond James)

Good morning and thank you for taking my question. It just has to do with the restructuring of the Salobo PMPA. The $40 million get paid in installments and you mentioned that’ll be up and running by 2029. But do you make any $8 million payments in that time period or is that all post-2029? So I can think of these as two $20 million payments before ’29 and then take all the eight out after. Is that how this works?

Haytham Hodaly (Senior VP, Corporate Development)

Thanks for the question, Brian. Really, when we did the deal on the coarse particle flotation, we actually removed those $8 million payments. So that was to do with the high-grade option. So there are now just the two $20 million payments, one at about 50% completion and one at completion of the CPF project.

Brian MacArthur (Analyst at Raymond James)

Perfect, thanks. And then is there any option or anything if they decide to do what I would call Salobo IV now as a result of this restructuring, or if that comes up do you just go back and set a new deal?

Haytham Hodaly (Senior VP, Corporate Development)

Salobo IV? I mean, we’d love to see a Salobo IV happen, Brian. I would say, that being said, there’s no current plan to move forward with that, but they’re always looking for ways to continue to grow that production flow. When you’ve got, you know, decades of reserve life, you’re always trying to figure out a way to accelerate that production. So, you know, if there was—although there’s no requirement in our contract to do so—if it made it more economic for us to help, it’s always something we would consider.

Brian MacArthur (Analyst at Raymond James)

Great, thanks very much. That’s very helpful.

Haytham Hodaly (Senior VP, Corporate Development)

Thank you, Brian.

OPERATOR

Our next question comes from Cosmos Chu from CIBC. Please go ahead, your line is open.

Cosmos Chu (Analyst at CIBC)

Thanks, Haytham and team. Maybe to follow on on the Vale coarse particle construction here, the $40 million as you mentioned is in lieu of the $80 million that would have been paid on the high-grade proposal under the previous agreement. But I guess my question is you’ve kind of quantified the coarse particle processing—the additional 6 million tons. How does that compare to what the benefit would have been with the high grade? Is it about half? Is that why you’re paying half, $40 million versus what would have been paid, $80 million under the high-grade proposal?

Haytham Hodaly (Senior VP, Corporate Development)

Thank you. Thanks for the question. I wouldn’t look at it in that way really. I mean, the high-grade payment was really almost— I’d say like an artifact of kind of what the original deal was when we negotiated Salobo III, and when we made the changes to that. That high-grade plan is something that really has changed quite a bit and is really integrated into the current planning with the significant increase in throughput. So, really the way that you can look at it is they’re actually feeding more material through, which means that you are getting significantly more metal.

It doesn’t change, I would say, the way that you would look at it between those two plans. The $40 million really was calculated based on what the capital was to build that project and the benefit that Wheaton Precious Metals was going to see out of it. So that’s really how we came up with that number. Those two numbers are not directly correlated. And you know what, for the $40 million, the payback period to us is like a year and a half. So it makes complete sense to be aligned on that and get that benefit together with Vale.

Cosmos Chu (Analyst at CIBC)

Great. Yeah, I like how you know you mentioned that it’s an artifact because I remember it being signed, so you know that would make me an artifact too in terms of. It’s great to see that, you know, you’ve maintained long-term guidance, 1.2 million GEOs. But I guess my question is that’s based on a gold-silver ratio of 60 to 1. We’re not really at 60 to 1 at the moment. Maybe it’s too early to ask. Have you, you know, thought about what ratio you could be using when you put out your new five-year guidance?

And could that change the 1.2 million?

Haytham Hodaly (Senior VP, Corporate Development)

So, yeah, it’s a little bit early. Usually we reassess that at the end of the year when we see how things are going early next year. But we are optimistic on the outlook for both gold and silver. We do think silver will have a better recovery. I will say that we’re fairly comfortable with the 1.2, but it does vary based on what that ratio is. But we do have at least another three or four different development projects in the pipeline over the next five to six years that are also kicking in, whether it’s Generation Mining, their Marathon project, whether it’s the Dravoid project, whether it’s the Can Grey House project that CMOX is putting together.

Like there’s a lot of additional growth that’s not already in that number. So we would hope to be able to at least maintain that number going forward. But again, it all depends on where that ratio ends up.

Cosmos Chu (Analyst at CIBC)

Great. And then maybe one last question. Looking wider, you know, we’re seeing some buy downs at—not so much Wheaton Precious Metals, but at some of your competitors—Greg Bear or Cote last night. Could you remind me, Haytham, if there’s any, you know, potential buy downs near term within your portfolio?

Haytham Hodaly (Senior VP, Corporate Development)

So, Cosmo, that’s a great question. And the reason I’ll say that is because one of the things we’ve always resisted is having buy downs. The only time we provide buy downs is in the event of a change of control. Because a lot of the projects that we have actually funded, the development-stage projects, they’re always looking for ways to either build value and sell the asset or continue to grow. What we found and what we provide is only a one-third buyout in the event of change of control for a limited period of time.

And we don’t at this point see anything that is going to kick in here in the next few years that’s going to activate that. So we’re pretty comfortable with our portfolio as it stands.

Cosmos Chu (Analyst at CIBC)

That’s great to hear, Haytham, and thanks for answering all my questions. That’s all I have. Have a great weekend.

Haytham Hodaly (Senior VP, Corporate Development)

Thank you. Thank you, Cosmos. You too.

OPERATOR

Our next question comes from Daniel Major from UBS. Please go ahead, your line is open.

Daniel Major (Analyst at UBS)

Hi, thanks very much for the questions. Yeah, first operational question: Newmont indicated on their call they expected a sharp reduction in silver production in Q4, but then also at a group level, about a 30% reduction in silver production in 2027, which essentially implies lower output from Penasquito. Can you give us a view on how you’re seeing that profile specifically at Penasquito in Q4 and directionally into next year? And then the second question just on that, in terms of the sales profile, both Penasquito and Salobo have seen pretty sizable builds.

So what delta between sales and production is that going to end in Q4?

Wes Carson (Vice President, Mining Operations)

Yeah, thanks for the question. So both of those on Penasquito are integrated into our current plans. We are expecting to see a fairly significant decrease in silver production at Penasquito. Really, that just ties into the way the pit production is set up and into next year as well, where they’re starting to feed some of those carbon-rich stockpiles in. They’ve got a fairly significant amount of that that’s in the plan next year as they continue on with stripping.

So both of those are currently integrated into the production profiles for this year and next. And on the PBND, you know, we’re currently sitting at about 2.6 months as a whole as a portfolio. So that’s kind of on the lower end of the range. As I said earlier, we do expect a slight increase going into Q4, just with the higher production coming from Salobo. So not a material increase, but a slight increase to our overall PBND balance heading into year end.

Daniel Major (Analyst at UBS)

Okay. So we shouldn’t see a significant unwind. Yeah, slight build. Okay, that’s good. And then on Antamina—yeah, I mean, it feels like underlying production’s lagged a little bit behind expectations this year. Can you give us the view on whether you’d expect that to benefit where you were previously thinking on 2027 and, directionally, how should we be thinking about Antamina, your share of silver into next year?

Wes Carson (Vice President, Mining Operations)

Yeah, I would say for this year in Q3 we actually saw quite a significant improvement as they began to get into some of that more bornite-rich ore, and there was quite an uptick actually in Q3 on that. And we expect that to continue into Q4 here with really kind of strong production into Q4. There is a fair bit of that material that’s in and around that old in-pit crusher that they’re starting to take out. And that is what we’re starting to see come out.

And that carries certainly well into next year, into the early part of ’28 as well.

Daniel Major (Analyst at UBS)

Okay, so directionally—like adjusting for the stripping and the change in ownership—you’d expect sequentially higher production from Antamina in ’27 versus ’26?

Wes Carson (Vice President, Mining Operations)

No, it’s actually scheduled to be a little bit less, but it’s not materially less.

Daniel Major (Analyst at UBS)

Okay. So broadly similar. Okay. All right, thanks. Yeah, that’s it for me.

OPERATOR

Our next question comes from Derek Ma from TD. Please go ahead. Your line is open.

Derek Ma (Analyst at TD Securities)

Yeah, I just want to add on a couple questions that have already been asked on Salobo. Are we expecting higher grades from Q4 to flow into 2027 as well, or how should we be thinking about the grades in Q4?

Haytham Hodaly (Senior VP, Corporate Development)

We’re certainly expecting those higher grades for 27. It’s a reasonably similar year. So, I mean, we’ll… Yeah, and we’ll put that in as we look into the budget for next year. But it is a reasonably similar year next year to what we saw this year overall. Similar to 2026 overall, not Q4. Yes, yes, similar to 26. Yeah.

Derek Ma (Analyst at TD Securities)

And then in terms of the approximate timing lag between production and sales, what does that look like specifically at Salobo and Penasquito?

Haytham Hodaly (Senior VP, Corporate Development)

Remind us, both are about two months. That’s generally your lag, and that’s fairly consistent with most assets that have a concentrate that they’re pulling.

Derek Ma (Analyst at TD Securities)

Great. Thank you.

Emma Murray (Vice President of Investor Relations)

Thanks, Derek.

OPERATOR

Our next question comes from Harrison Reynolds from RBC Capital Markets. Please go ahead. Your line is open.

Harrison Reynolds (Analyst at RBC Capital Markets)

Hi, good morning Wheaton team, and thanks for taking my questions and appreciate the detail provided so far. Good to see a number of operator updates across the portfolio. Wanted to follow up on the long-term guide of 1.2 million ounce GEOs, and setting aside the commodity price ratios, and just get a reminder of what’s currently embedded in that guidance. From an OP standpoint, I look at the Salobo coarse particle flotation and some of these other aggregate upsides between Constancia mill expansions and Taro Paru advancing to a construction decision.

What other, you know, OP items lay outside the guidance?

Haytham Hodaly (Senior VP, Corporate Development)

Sure. I mean, just to highlight what’s in the guidance, I mean we’ve talked a lot about that, whether it’s the ramp-ups at Flat Reef, Phoenix, Mineral Park, Coney, Kermuk, El Domo, Copper World now made FID decision, small amount of production from Spring Valley and Santo Domingo. What we haven’t really factored in is, you know, significant contributions from some of the other development projects such as the Ken Greyhouse to your voice that hasn’t been factored into our analysis yet, and Marathon, which just recently announced FID decision as well.

And that’s just to mention a few. There’s probably about three others or four others that I can continue to get to. It probably best if you want a little bit more color on that, maybe give Emma a call after; she can go through the numbers with you.

Harrison Reynolds (Analyst at RBC Capital Markets)

Got it, thanks. And just as a follow up, you know, as you work through the remaining committed payments here and deleveraging, at what point does the balance sheet open up for the next large-scale transaction, you know, from where you sit today?

Haytham Hodaly (Senior VP, Corporate Development)

Sure, I’ll let Vincent answer that. But I will say one thing. We do have currently $3 billion in capacity. So the balance sheet is always open for us. But I’ll let Vincent talk a little bit more about it.

Vincent Lau (Chief Financial Officer)

Yeah, we don’t feel at all constrained currently given the opportunity set. As Haytham has laid out, we have a lot of liquidity. Our revolver is almost fully repaid at the end of Q3, so two and a half billion dollars is immediately available, and then we have a $500 million accordion on top of that. And as we continue to generate significant cash flow, we do expect to be back in the net cash position towards the end of next year, early 2028. So lots of capacity and growing going forward.

So by the end of next year, we’ll have over $4 billion in capacity and growing every month. So very excited about the way things are going. And we’re a growth company, so we’re going to continue to try to deploy a lot of the capital we generate back into high-quality, accretive stream transactions.

Harrison Reynolds (Analyst at RBC Capital Markets)

Great. Sounds good. Thanks for taking my questions.

Emma Murray (Vice President of Investor Relations)

Thanks, Harrison.

OPERATOR

Our next question comes from Martin Pradier from Veritas Investment Research. Please go ahead. Your line is open.

Emma Murray (Vice President of Investor Relations)

Hi, Martin.

Martin Pradier (Analyst at Veritas Investment Research)

Hello. Hi.

Emma Murray (Vice President of Investor Relations)

Yes, hi, Martin. Go ahead.

Martin Pradier (Analyst at Veritas Investment Research)

Yes, sorry. In terms of value, could you explain to us how much you expect from that in terms of payments to Wheaton Precious Metals in 2029 and 2030?

Haytham Hodaly (Senior VP, Corporate Development)

Are you asking for what the relative level of contribution will be from Salobo? Is that your specific question?

Martin Pradier (Analyst at Veritas Investment Research)

Yeah, from the incremental—right—from this new particle flotation. So is that expected to increase 40, 45,000 ounces, or how many ounces? That’s what I’m looking for.

Haytham Hodaly (Senior VP, Corporate Development)

No, I think what we’ve stated in the past is we do expect a portion of that’s already factored into the overall numbers. What we would expect to see from Salobo going forward is a number somewhere around 300,000 ounces on a more consistent basis for the next few years. It increases by around 5%, but yeah, it’s not a huge number.

Martin Pradier (Analyst at Veritas Investment Research)

Okay. And the other question I had is, and in Kermuk, what do you expect in terms of payments in 2027 and 2028, and sort of the same for Kone.

Haytham Hodaly (Senior VP, Corporate Development)

For Kermuk we’re expecting, you know, probably about under 10,000 ounces in Kermuk for 2027 and somewhere probably 50% higher than that in 2028, and that will continue to grow over the next few years after that as well. And keep in mind that’s based on their existing mine plan of 6 million tons per annum. They’re already talking about going to 6.4 million tons per annum, and that’s not factored into those numbers. On Kone we’re expecting—well, this is—that’s where Kone is actually very interesting because initially, when we first entered into this transaction, we thought we were going to get somewhere close to 300,000 ounces a year for five years, then it was going to drop off. With the stream transaction and the financing, we provided them the ability to go out and drill and add additional ounces, and they’ve found additional higher-grade material. Now they’re talking about at least 350,000 ounces to their account for at least 10 years and could potentially grow even more.

So you can back-calculate what we would think our production will be out of Kone over the next couple of years as they ramp up.

Martin Pradier (Analyst at Veritas Investment Research)

Yeah, I was trying to understand the ramp up. 2026, 27, 27–28.

Haytham Hodaly (Senior VP, Corporate Development)

Yeah, I think if you factored in like 50 to 50-plus thousand ounces in 2027 and 60-plus thousand ounces in 2028, and growing after that at a similar rate for at least another year.

Martin Pradier (Analyst at Veritas Investment Research)

Okay, thank you. That’s pretty helpful.

Haytham Hodaly (Senior VP, Corporate Development)

You’re welcome. Thanks, Martin.

OPERATOR

Our next question comes from Lawson Winder. Please go ahead. Your line is open.

Lawson Winder (Analyst)

Thank you very much, operator. Good morning, Haytham and team. Thank you for today’s update and taking the questions. Can I just touch on the deal pipeline? And just one thing I wanted to kind of understand a little bit better. When you look at the potential transactions, how would you describe the urgency of some of those in the current pipeline? And then maybe if you could just touch on some additional color on the depth of the pipeline and then just the range of sizes in the pipeline.

Haytham Hodaly (Senior VP, Corporate Development)

I’ll pass it over to Neil.

Neil Burns (Vice President, Corporate Development)

Yeah, sure. Thanks for the question. It’s safe to mention Don, the team’s been extremely busy. As we mentioned in the last call, we had about 20 opportunities in the pipeline. At that time we’ve narrowed that down to just over a dozen because upon detailed review many didn’t meet our criteria for investment. The weighting currently still towards development projects. Gold streams’ range in value has increased slightly before—where we stated it was roughly 2 to 500, it’s about 3 to 6.

So very similar, slight increase. As I said, most are development-type opportunities. In terms of your question re urgency, I mean everybody’s looking for ways to unlock value. I think the transaction we did earlier this year with BHP, a lot of large diversifieds are looking through their portfolios to see if there’s some value they can extract. That being said, that takes time. It took us a while to get BHP across the line, and it takes time for others to understand how the streaming model works and how the actual mechanism works in terms of the credit process, etc. I will say that from an opportunity perspective we are seeing some existing operations who are trying to unlock immediate value, but the majority of those we’re focusing on are development-stage opportunities at this point.

Lawson Winder (Analyst)

Okay, that’s very helpful—your comments on your capacity to add $3 billion of additional debt to effectively consummate larger transactions. It’s definitely helpful, but I mean it still strikes me as exceedingly conservative. So, like rough numbers, that’s still below one and a half times trailing net leverage on today’s numbers, on today’s trailing EBITDA. So think about it another way: from a net leverage point of view, how would you think about the capacity of your business to take additional debt?

Vincent Lau (Chief Financial Officer)

Yeah, we very much view our business as a utility almost. You know, we have good certainty on what the production is. The unknown is what the gold and silver price is, but what we do know is it is a very high-margin, high-quality, cash-flowing business. So on that basis we can support some debt. And to your point, with even an additional 3 billion we’re only going to be at one and a half times leverage, and that’s a level that we’re comfortable with.

You know, beyond that we haven’t really needed to look. There isn’t a pipeline that’s, you know, larger than that. But it just gives you a sense of the capacity we do have and the ability to fund deals internally with our own cash flows.

Haytham Hodaly (Senior VP, Corporate Development)

That’s a great point. We’re also doing a couple hundred plus dollars a month in free cash flow. So, as Vincent said, you know, we feel very comfortable at the levels that we mentioned there.

Lawson Winder (Analyst)

Yeah, no, absolutely. You bring up a good point about the volatility of the underlying metal. I think it’s an important consideration. So are you saying like one and a half is the maximum you think you would go or—I mean, personally, I think the business could take a much higher sort of, like, moment-in-time leverage ratio given that it would be paid down over a quick period of time. But I mean, is that what you’re saying? Like one and a half is kind of the max that you’d be comfortable with?

Vincent Lau (Chief Financial Officer)

I think it’s dependent on the environment, the situation we’re in. So there’s no hard number that we look at. It’s a variety of factors. But I would just say one and a half at current spot price is something we’re very comfortable with.

Lawson Winder (Analyst)

Okay, okay, that’s very clear. And then, you know, similar question on capital allocation. Your indicated dividend yield is something like 60 basis points right now. It’s relatively low. And I mean that is a clear reflection of your success. I mean, on the other hand, your success would suggest an ability to very substantially increase the dividend from the current levels. Any thoughts on that, particularly going into, you know, early 2027 when the board will be meeting to consider the next dividend increase?

Vincent Lau (Chief Financial Officer)

Yeah, no, it’s a great question. And we have increased the dividend three times in the last three years. It is a progressive dividend. The most recent increase was over 18%. And you’re right, we do have the capacity to increase it, and we’ll leave that to our discussions with the board in the early new year. I will say that, you know, we are a growth company, and the number one thing for us to do is to continue to redeploy capital into accretive transactions to maintain that longer-term growth.

But you’re not wrong in that, you know, the streamers in general don’t pay out huge dividends because there’s so many opportunities. But we are going to be generating strong cash flows; it’s something we’ll have to take into consideration.

Lawson Winder (Analyst)

Okay, and then just if I could ask on 2027 and thinking about the growth, I mean, across your portfolio, Kone Kermout Flat Reef, they’re now producing. And then Blackwater Mermatto’s ramping up. I mean, dare I say Goose is. You know, that ramp up is what gets sorted out in 2027. So everything points to a lot of growth potential. But are there any assets that you’d highlight where you’d expect some sort of substantial decline that maybe we’re not thinking about that could offset what otherwise might be quite strong growth into 2027?

Haytham Hodaly (Senior VP, Corporate Development)

I would say looking at our existing production profile, if there’s any drops like we’re expecting to see, as Wes mentioned earlier on Panasquito, that will drop a little bit, but all that is already built into our profile. Antamina as well, potentially maybe a slight drop there. But, you know, I think if you’re looking at what we’re guiding to, all those drops are built into our profile. We do get five-year production profiles from all our existing partners, sometimes 10 years.

And we factor those in with our own, obviously, adjustments based on what we think is actually going to happen. So, you know, we’re pretty comfortable with the guidance that we’ve given you guys in terms of our.

Lawson Winder (Analyst)

Okay, sure. Thank you guys very much. Good quarter.

Randy Smallwood (President and Chief Executive Officer)

Thank you, Lawson, appreciate it. Thank you everyone for your time today. Our performance through the first nine months of 2026 reinforces Wheaton Precious Metals’ position as a premier low-risk option for exposure to gold and silver. Supported by a strong financial position, a disciplined approach to capital allocation, a portfolio of high-quality assets and increasing visibility into our next phase of growth, we are confident in Wheaton Precious Metals’ outlook and our ability to deliver meaningful production growth over the coming years.

We thank all of our stakeholders for the continued support as we work to close out another strong year and look ahead, building on this momentum in 2027 and the years to come. We look forward to speaking with you all again soon. Thank you and have a great weekend.

OPERATOR

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

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