Wheaton Precious Metals Corp. (WPM) Earnings Call Transcript & Summary

Hello, everyone, and welcome to today's virtual nondeal road show. My name is Karina Tatarinova, virtual event moderator at Renmark Financial Communications. On behalf of our team, we want to thank everyone in Toronto and surrounding areas for joining us today for the presentation of Wheaton Precious Metals Corporation, trading on the Toronto Stock Exchange, New York Stock Exchange and the London Stock Exchange under ticker symbol WPM. Presenting today is Randy Smallwood, CEO and President. The presentation will last approximately 25 minutes, which will then be followed by a formal Q&A session that we encourage you to participate in by clicking on the chat box at the top right corner of your screen and sending in questions. And now with that, I present to you Randy.

Thank you, Karina, and thank you, everyone, for dialing in to hear our story and look forward to good question, and I also enjoy the Q&A session. So if you've got questions, please do get them in over the course of this, and we'll get some good discussion going. But I'll go through the presentation here first off. The company, of course, Wheaton Precious Metals, it's a company that I've been with since we created it way back in 2004 when we created the original streaming model. There will be forward-looking statements. [indiscernible] everyone to understand the risks associated with those forward-looking statements during this presentation. So who is Wheaton? What is Wheaton? What have we done? Where are we? As I mentioned, we created the streaming business model back in 2004. The original focus was in the silver space, but in 2011, 2012, we expanded into precious metals, really because for the same reasons, we're just as bullish and optimistic on gold as we are on silver. And so it was something that was very, very important to us. Our vision, of course, is to be the best way for you to invest into precious metals. Profitable precious metals production is what we really put our focus on. And of course, we're going to do that using our business model, the streaming model. But what's really important is to reinforce the fact that we work for multiple stakeholders. It's not just our shareholders. They, of course, are very important to us. They're the ones that sign my paycheck. But we have to recognize that in today's world and to be successful, you can't just focus on individual shareholders. You have to look at the broader stakeholder impact, and it's part of what makes a business successful. So one of the other groups, of course, is our partners. We have a real strong focus in providing support to our partners, not only with the capital that we supply at the start of the streaming transaction, but also with ongoing support in terms of co-funding ESG programs, technical ambassador programs, and always unlock the value program where we're always looking for ways to see if we can improve our partnership. And so, of course, as I mentioned, that co-funding program, it's also important that we make sure that the other stakeholders in the area also do receive good, strong, sustainable benefits. And so we do have good, strong co-funding programs with our operating partners to strengthen their own social license, but we also are very active in our own local communities around our operations, all of which is very important to run a successful business like we do. The streaming advantage, really, it comes down to the fact that we can be selective about the assets we invest into with our portfolio, very, very high-quality assets. We really focus on making sure that there's high operating margins. 93% of our current production comes from assets in the first or second quartile of the respective cost curves, so exploration expansion upside. That's 1 of the beauties of the streaming model is that investors get access to that exploration expense upside without the cost risk that's associated with delivering on that upside. And that predictable costs, it's such an important differentiator in terms of reducing the risk, but still delivering the upside opportunity on a commodity investment. So the other advantage of streaming has over even royalties is commodity price leverage. We do have a base production payment that means that we outperform. In a rising price environment, we outperform. We deliver better returns to our shareholders than anyone that owns a royalty. We've got a good, strong dividend program that's going to get stronger with time, very, very cash flow rich right now. And I'm not sure that we'll be able to find ways to put it into the ground. And if we can't, it goes back to our shareholders as a dividend program. And then great optionality. Got a number of assets that aren't part of our current production profile, but will be at some time. And so all of this has built up to be the foundation of Wheaton, which I would say is the strongest it's ever been right now. Our advantage, as I said, 93% of our production comes from assets in the lowest half of the cost curve. So that's to say that if we're getting byproduct gold from a copper mine, where does that copper mine fit on the worldwide copper cost curve? And so for us to have over 20 assets delivering production to us and 93% of that production in the bottom half of the cost curve, I don't think there's a stronger, more profitable portfolio of precious metals assets anywhere in the mining space or the streaming space. 30 years of reserve life in front of that good, long reserve life in front of us and another 10 years of M&I resources and 20 years of inferred resources beyond that. So when we build, we build for the long-term value. Good, strong organic growth. I know it says 40% there, but when I do the math, it's actually up over 50% growth between now and 2027. So good, strong production. We're going to be getting very close to 1 million gold equivalent ounces by 2027. As I mentioned, a good, strong balance sheet. We have $800 million cash on hand at the end of March and a $2 billion revolver that's available for us. A very low overhead operation, 41 employees in the entire company. So G&A is not a significant factor in how we move forward. And we've been very active, 10 new streams in the last 2 years with over $1.9 billion of committed upfront payments that have been -- this has all been completed in the last 2 years or since 2020. And so we are being very effective at putting our money back into work. The other aspect that I think differentiates Wheaton is our commitment towards strong ESG performance, and that's reflected in the ratings that we get. We're the highest ranked precious metals company by Sustainanalytics, and we've got the strongest rating you can get from MSCI on the ESG side in the resource sector. So good, strong results as a result of our effort. I mentioned the portfolio. As you can see here, very America-centric. We did spend the first half of our life silver-focused in the Americas, very important to silver. But we have expanded now into -- definitely into gold, and we're now more of a gold company than we are a silver company. But still, political risk is something that's very important to us. We like the Americas. We like Europe. We've looked in Africa. We've looked in Australia. We've looked in Asia. We just haven't seen anything that satisfies our own criteria with respect to long-term political risk. And so the other thing I would like to highlight is the list of partners down the side of this slide. Streaming works for everyone in the mining industry, from the Vales and Glencores of the world, to the Aluminas and Luminas of the world. Streaming is an effective, competitive, attractive source of capital for the mining industry. Talked about the cost curves. As you can see here, 54% of our current production comes from the first quartile, another 39% from the second quartile. Those are our target assets. The reason we like the bottom half of the cost curve is that not only are these are the mines that will operate through the ups and downs of a cyclical commodity price cycle or a market, but they're also the first places that our partners reinvest into exploration dollars and expansion capital. If they're high-margin assets, that's where you want to maximize the returns you get from these things, and you want to extend the exploration. So we've had great success on that front in terms of replacing ounces and showing continued growth of these assets. So it's a very important factor. And then I talked about mine life. As you can see, 30 years of proven and probable reserves and 13 years of M&I and 24 years of inferred. You do the math, this company is going to be a very profitable company for a very long time. Our production profile, something that's very exciting. In fact, I would argue it puts us in probably the most exciting period that Wheaton has ever been in. This year, we expect to produce somewhere around 630,000 gold equivalent ounces, but this is a year that kicks off significant growth. And by 2027, as I said, we'll be somewhere very close to 1 million. I think we're about 970,000 gold equivalent ounces of production. So it's 50% growth from 2023 to 2027. For a company of our size and our scale, to have 50% growth is -- it just really highlights the strength. As I mentioned in our last quarter earning results, every quarter is going to be just a bit better than the last 1 for the next 5 years. We've got -- the bulk of that growth is actually coming from existing operations, so brownfield development, Salobo, the Phase 3 expansion is ramping up through the course of this year, Constancia, the Pampacancha zone high grade coming into that operation for the next 3 or 4 years. Stillwater continued expansions. Voisey's Bay going into higher-grade underground materials, and Marmato having great success getting the lower zone up and running, excellent exploration results there and as they develop that lower zone. So that's all existing operations, much higher confidence growth, but we also have a whole bunch of greenfield stuff, brand-new projects coming into production over this period of time. Of course, Blackwater with Artemis Gold here in British Columbia advancing forward into construction rapidly. The Goose project now owned by B2Gold up in Northern Canada, again, a good, strong project. It's got high margins, will deliver a good, strong growth. And then as you can see, a number of other assets that will deliver good, strong growth over the course of the next 5 years. A very exciting time for Wheaton. Slide just really sort of highlights 1 of the benefits of the streaming business model. It doesn't really matter what the price is. The costs are relatively constant. As I say, we don't have a cost curve. We have a cost line. It's a straight line. It's predictable. You can forecast it out. And so it gives a good, strong strength. It also gives us leverage over owning bullion or owning royalties where there is no base cost on a per ounce basis. So solid -- it's a good, strong business model, but it's very resilient and gives us good, high operating margins, as you can see, well over 70% operating margins consistently. The balance sheet is strong. We've got a $2 billion revolver that we've used very wisely over the last 6, 7 years to fund our growth instead of issuing shares and diluting our existing shareholders, which is, again, reinforce who we work for. We chose to use cheap debt through this revolving credit facility and financed all of our growth rate from 2016 on through effectively using debt, which has now been paid off. We paid it off early last year, and we're now net positive with $800 million cash in hand at the end of March and generating good, good amounts of cash. Our cash flow this year should be in excess of $1 billion. And so good, strong portfolio. We spend most of our time trying to figure out how to put that money into work. If it doesn't -- if we can't find effective, accretive ways to invest it into the ground, then we're just going to continue growing that dividend. And a good, strong -- very strong balance sheet, as strong as it's ever been. This slide sort of highlights 1 of the things that we're trying to set ourselves up for is that we obviously have had good, strong commodity prices and good continued growth in terms of price of gold and such over the life of the company. But what we really want to position ourselves for is for those big bump cycles. And back in 2011, 2012, we saw silver and gold prices reached record highs. And at that time, you could see, we generated in excess of $2 billion over and above what we expected during that nice bump. We're seeing the same thing now with current commodity prices and current commodity price trends. And the advantage, of course, is that we actually have more than twice the production that we had back in 2011. And so it really does set us up well for these nice bumps whenever we get good, strong bull markets in precious metals, which I still think we're in the midst of. This all goes even beyond the fact that we are seeing continuous higher prices in precious metals over a long time, and we don't think that, that trend is changing in the near term. This is an interesting 1 because the blue bars here represent the amount of money that we've [ planted ] into the ground, and the gray represents the amount of money that we've returned. And so I'm pleased to report that right at the start of this year, we finally surpassed the invested dollars. We've essentially reached payback, which is amazing when you, again, consider that we've got 30 years of reserves, another 10 years of M&I resources and 20 years of inferred resources to go from this portfolio. And so all that's going to do is continue reinvesting, and we're going to continue putting that back into the ground. So it's pretty amazing for us to, within 20 years, get to the point where we've actually generated more capital than what we've invested. And to have that kind of a life in front of us just, again, highlights the strength of the company right now. We have a good, strong dividend policy that is linked where we basically lock it in at a price per share that is a function of the percentage of cash flow. And right now, we have a minimum of 30% of the cash flow go back. We're actually right now returning probably somewhere around 35%, 36% of the cash flow to our shareholders. It's interesting when you look at the broader database in the precious metal space, for every ounce that we produce, we, in our dividend, give $450 of that ounce back to our shareholders in the dividend, substantially higher than everyone else in the group. So in terms of returning the production -- the benefits of our production back to our shareholders, you can see how much value there is there. And again, just think about the growth that we have over the next 5 years and how that's going to impact what we will actually return to our shareholders. So it's a good, strong dividend program that's just going to get stronger and stronger as our company grows. So why do mining companies enter into streams? There's really a lot of reasons why, but probably the most important ones right now is the second one and the third one, the initial value creation and the internal rate of return. And that's really highlighted on this slide here. Developers, especially single asset developers, they're trading at anywhere between 0.2 to 0.3x net asset value. There are substantive discounts to the actual value of the assets underlying it. So issuing shares is incredibly dilutive. But doing a stream, which counts as equity capital, is a way of raising capital by selling off your asset -- part of your asset base, not issuing shares. So you don't suffer the same excessive dilution that you would if you were issuing shares. So it's incredibly attractive for the developers and for the producers to sit there and take advantage of the arbitrage that we have. Because we definitely trade at higher multiples and it gives us capacity in terms of being able to take advantage of this arbitrage and deliver a win-win situation where we share that arbitrage with the developer or with the producer itself. And the bottom half of the slide talks about how it improve -- how a stream improves the internal rate of return on a project itself. And Salobo is a great example, where Vale spent close to $4 billion building the first 2 phases of Salobo. We contributed $3.1 billion of that. So we contributed close to 80% of the upfront capital, and yet we take away only about 23% of the EBITDA. And so the return on the invested capital from Vale's shareholders' perspectives, incredible. In fact, they generate more money every year in EBITDA than the total CapEx that they put into that mine, the net CapEx that they put in, net of our upfront payments. And so that Salobo mine is an incredible asset for Vale, and it's an incredible asset for Wheaton. So benefits to the community. This is something that is very important for us, truly a core value. I come from the mining industry. I'm a geological engineer that had a long history of exploration, development and operating mines, and I understand how important it is. I have firsthand experience about how important it is to maintain good, strong relationships and deliver sustainable benefits to all stakeholders. And so we have a multipronged approach, but we focus on, of course, strong governance. ESG is important to us, helping deliver sustainable [indiscernible] communities, and also reporting and external and voluntary commitments. And it's just a -- it's a real strong program for us that we're very proud. And so 1.5% of our average net income get reinvested back into our neighbors every year. And we average it over the previous 4 years. So this budget is growing as we grow. 1/3 of that goes to neighbors around our offices and where our employees work and live, but the bulk of it, 2/3 of it actually goes to communities around the mines that we get our metal from. And we work in concert, in partnership with our operating partners in terms of trying to maximize benefit and improve overall performance and benefits to these communities. So it's something that I'm quite proud of. We were the first of the streaming/royalty companies to actually initiate this program, and it is still, by far, the strongest program in the space. And it is being recognized. As I mentioned earlier on, we get top ratings amongst a number of the different rating agencies. And so it's something that we've really put a lot of focus to. The last year has also been important for us in terms of how we continue to grow in this space with a commitment towards net zero by 2050. We came up with a science-based transparent disclosure of our Scope 3 financed emissions and a target to how we're going to move our way down there. We've got all sorts of other programs that really underscore why we've been top-ranked and top-rated in so many different rating agencies. This -- it is something that we continue to focus on and strive towards. So why invest into Wheaton Precious Metals? Well, there's a number of ways to invest into precious metals. You can go out and buy bullion or the ETFs, very, very low risk, but the only optionality, the only upside you've got is commodity price exposure. And in fact, the fees that you pay for holding that bullion, it winds up being a net negative unless you see that strong price movement. With precious metal mining companies, the challenges there, of course, is costs. The mining industry has a long history of overpromising and underdelivering, and cost is usually 1 of the biggest risks with respect to that. With respect to the other streamers, I mean we are focused on precious metals. Over, well, 98% of our revenue currently comes from precious metals. None of the other streaming companies can argue a number anywhere closer than that. We have no oil. We have no gas. We have no iron ore. We have a little bit of cobalt from the Voisey's Bay mine, and that's the only nonprecious metal that we have in our portfolio. We are focused on precious metals. And so the advantages are huge in terms of what we deliver. And I truly do think that we have produced and created here the best way to invest into precious metals. As I mentioned, in terms of percentage of revenue, 97% of our revenue in 2022 came from precious metals, with a very small amount from cobalt. No oil and gas in our portfolio, no other base metals and iron ore in our portfolio. So it's a good, strong way of investing in the precious metals that makes us 1 of the largest producers in the space itself. So what we've delivered, we've invested close to $10 billion into streams to date. And of course, we've also received about $10 billion in cash flow from those streams. So we've reached our capital payback point. And all those assets are still delivering metal to us. Delivered close to $2 billion in dividends. We will surpass that sometime later on this year. Good, strong annual cash flow, should be over $1 billion at these commodity prices. 40 years of reserve and M&I resource life, meaning another 20 years of inferred resource life after that. A good, strong commitment towards leading the charge on delivering good, sustainable benefits to society. And if you go back and look at what we've done to date, the average annualized after-tax return has been 18%. So a good, strong portfolio. And in fact, if you sit and look at it, if you look at rolling multiyear return comparisons, you can see how we've outperformed relative to bullion or to the mining companies. Wheaton has been a good, strong investment vehicle for many, many years and will continue. So this is my last slide. Please get some questions ready. Good, strong organic growth. It's incredible to be at a point where we have 50% growth over the next 5 years. For a mature company that's the size and scale of ours, I think we've never been this strong. Good expansion, exploration potential, good high-quality asset base, predictable costs, of course. The streaming model does give us leverage and a good, strong innovative dividend. I always like to finish this off by saying this is a really good time to own more Wheaton. With that, I will open up the floor to questions. Karina?

Randy, thank you very much for your presentation. And as you mentioned, with that, we'll move on to the Q&A now. Your first question here is, would you say your average mine life is much higher than peers?

Yes, definitely. The advantage of the streaming model is that most of our production actually comes as a byproduct from base metal mine, mainly copper mines, actually, I think, more than half, like about 60% of our production is a byproduct of copper mines. And the issue with the -- with copper, with base metal assets is they're very, very capital intensive. They typically require much greater reserve lives in order to justify the original investment decision to build those mines on a forward basis. So I look at Salobo with close to 50 years of reserves and resources. I look at Antamina with -- they just haven't found the bottom of that. I look at Stillwater [indiscernible]. It's like everywhere I look, we're actually sort of tucking those nice long reserve lives that base metal mines typically have and bringing that into the precious metal space. Now precious metal mines typically only have -- they're nowhere near as capital intensive. They take as much money to build in the first place, so they don't need as extensive reserve life in front of them. Most gold mines and precious metal mines typically have 10 to 20 years of mine life on their build versus base metal mines, which are 20 to 30 to 40 years of reserves in front. And so we get the benefit of that long reserve life in the base metal space, but we're pulling it in to precious metal investors and that it sets us up very well for a good long reserve life.

Great. And the following question is, what jurisdictions do you see the most growth?

Well, Americas -- the Americas have been important for us. They've had some challenges in some of the countries in South America, of course, but I mean I hate to say it, we -- I think it's just almost a bit of natural effect. We see some jurisdictions swing a little bit more to the left, and then they'll go back and swing to the right. It's almost like a pendulum that just swings back and forth. And so we've obviously just announced a couple of weeks ago a deal into Ecuador. We like the way Ecuador looks right now from an investing perspective. Again, so much of it does come down to the local communities and making sure that you've got good, strong relations. And so an important part of our due diligence is understanding how much support there is within local communities and meeting with local stakeholders to ensure that you're not going to have challenges there. And that's irrespective of whatever country you're dealing with. And so -- but we are really focused on jurisdictions. Because we have such long mine lives, we want to make sure that there are good political -- politically stable jurisdictions where we feel confident in terms of our rights in those locations. So we've looked in Africa, but there's only a few countries in Africa that we consider investing into. We've looked obviously in Asia, again, a few countries that we seriously consider investing into. Australia is a bit perplexing for us because we put a lot of bids in there. We just haven't been successful. And we continue to look at [indiscernible] because it is a jurisdiction that I think is very friendly to the mining industry clearly. And so I would predict that, that will change over time. But it's something that's very important for us.

And on this topic as well, if you were asking you, is Alumina gold stream universal in Ecuador? And what are your thoughts on the local side of the country?

So it's not our first. We've got to deal with Adventus on the El Domo project to stream there, and we were a long-time equity to Adventus to help support them as they advance that project on a go-forward basis. So again, referencing what I've seen in times past, there are challenges right now. But what we have seen is good support from both the leading parties in the [Audio Gap] that project might work. It's [Audio Gap] it's just an asset that truly does excite us in terms of what the potential is there. And we think it's a relatively easy 1 to move forward into production. And so we're comfortable with that -- with Ecuador. [indiscernible] and community seem to be very, very supportive of [indiscernible]. So we're comfortable there.

And the following question here is, what was compelling about your recent streaming deal with Panoro outside of your previous metals wheelhouse and [indiscernible] politics possibly?

The recent streaming deal with Panoro? We have -- the Panoro transaction was quite a while ago. We did that 4 or 5 years ago. In fact, it might even be more than that. It's an early deposit model. And it is a unique model that helps. One of the things that we've seen is that 1 of the opportunities we have is to provide support to development companies like Panoro at the stage before they're committing towards construction. That's when capital is the most expensive, because at that stage, they still don't have excess to operating cash flows. Because they don't have a bankable feasibility study and permits, they can't access bank debt. And so now it's a matter of issuing shares or -- and that's where the stream comes in. The stream is an investment into it. It's a project that we're excited about from -- not only from a production perspective, but we think it's got great exploration potential. And so the team of Panoro continues to advance that project going forward. We think that we look forward to helping them build the mine ultimately. When they get to that stage, we'll be able to supply even some more cash to help them like on a forward basis.

And moving on to the following question of viewers wondering, has your interest on green metals and/or battery metals changed over the last couple of years?

Our approach is to stay focused on precious metals. That's the promise that we've made to our shareholders, and that's been 1 of the reasons -- we hope that's the reason that they invested into us in the first place. And so we think that, individually, our shareholders have the capacity to invest into alternatives in terms of green metals, battery metals, what may be. There's a number of options out there. But if I do that, then I'm forcing all of my shareholders to do that at the same time. And so my commitment, my promise to our shareholders, our promise to our shareholders is that we're going to deliver profitable precious metals production. So we don't like oil and gas. We don't like iron ore. We don't like base metals. Cobalt is a little bit unique in the sense that we were -- the Voisey's Bay deal was a bit of a unique opportunity, owned and operated by Vale, 1 of our partners. It's a very top quality mine, especially in the cobalt world, the nickel mine, obviously, Voisey's Bay in Canada. So I would call it the cleanest, greenest cobalt out there in the world. And so it's -- but we're not pursuing cobalt. Our focus is precious metals. We think that if any of our shareholders are interested in diversity, it's probably better left in the shareholders' hands to control that diversity than for me to dictate it by making those investments. So I stick to my promise, profitable precious metals production.

And on a different topic as well, do you see artificial intelligence playing a role in your due diligence for potential new deals?

Wow, that's an interesting one. ChatGPT has sure opened up. I haven't yet written a speech or anything using it, but I've had some fun with it. It is interesting in terms of the capabilities. There's no doubt. It's going to have a huge impact across society, period, in all aspects. I mean, really, what it is, is a compilation of experience and knowledge that is unfortunately beyond a lot of what humans can manage. And so it's dangerous. It has to be used very, very carefully and always sort of measured with -- I don't want to say fear, but with respect, definitely. And so it's not part of our near-term plans, I can assure you there. I will say, through COVID, we had to resort to virtual mine tours, and I will tell you that they suck, pardon the language. There's nothing like being there and actually seeing the operations, seeing the -- I hope we never do a virtual mine tour again. So there are certain aspects of the resource industry that I think will always be measured or always should be measured based on getting some real dirt underneath your fingernails. And so AI will definitely help in terms of making decisions, but it will be something that we approach very cautiously.

And we have 1 more question here before we move on to the financial questions. A viewer is asking, which development projects in Wheaton's portfolio is the company most excited about?

Well, both -- I've got 2 development projects today, that I like, Steven Dean at Artemis and Clive Johnson of B2, both the Goose and the Blackwater projects. These are both very high-grade gold projects here in -- and then low cost, like high-margin assets here in Canada, one's in B.C., one's up in north -- southwestern -- sorry, Nunavut. And both of those assets are going to be very profitable gold operations. And within the next 1.5 years, they expect to be producing by the end of 2024. And so always exciting to see years and years of exploration, the development and engineering and feasibility studies and permitting reviews, environmental impact assessments and all that, all finally get to delivering fruition in terms of moving forward. So both the Blackwater and the Goose projects, Goose is going to be a mining [indiscernible] district and B2 has it controlled. The limited exploration and the exploration hit ratio up there is incredible. There's just lots of opportunities in that whole district, and B2's got a head start over everyone else in that space. And so I do think that Clive's going to have a great experience up there. And Artemis, again, exploration potential. They've got a great ore body already defined, but lots of good upside potential there.

And with that, I'll move on to a few financial questions. What will be the strategic focus when it comes to deploying your cash or revolving credit?

Sorry, can you repeat that question? I missed part of it.

Yes, of course. What will your strategic focus be -- excuse me, what will be your strategic focus when it comes to deploying your cash or revolving credit?

Oh, I see. Okay. Yes. It's always on trying to find accretive acquisitions, but we're not going to chase. We have to resist believing that we should all be making acquisitions. And so it has to get accretive with reasonable price assumption on a go-forward basis. And so our whole focus has always been making sure we have confidence that we will deliver reasonable returns, assuming relatively constant commodity prices, and then deliver the upside of higher commodity prices on a go-forward basis, along with exploration success and expansion potential. And so it's always on trying to put money back into the ground. And so that's priority #1, but not at any cost. As I say, it has to be accretive. And if we can't, if the cash balance builds up, then we increase the dividend. So our whole focus is really about trying to put money back into the ground. If we can't, we grow the dividend. And the dividend will grow. I can see, as we get up over 1 million gold equivalent ounces, the cash flow that we're generating is going to be strong enough that we won't be able to put it back on the ground consistently enough. And so that 30% minimum that we have right now will climb to 35%, 40%, 50%. I can see it theoretically getting as high as 60% of our cash going back in the form of a dividend and turning Wheaton into a bit of a yield monster. And so it's something that we see in the future. We've still got a lot of growth in front of us right now. But once that growth gets delivered, that's when they will start climbing.

And your next question is, has management considered selling the cobalt and palladium streams to keep a gold and silver only portfolio?

No, because those are 2 incredible assets. Stillwater -- and we've also got platinum coming from the Marathon project in Ontario. So we will have a bit of platinum coming into the portfolio. The Stillwater deposit, that is going to be [ humming ] for hundreds of years. It's almost quartile of cost with respect to platinum, palladium production. And it's an ore body that is measured in tens of kilometers of length. And they're mining in 2 centers, the Stillwater mine and the East Boulder mine. And there's literally 20 kilometers of continuous ore body between these 2 mining sites. And so it's the high-margin, low-cost operation that will deliver profitable production. And even though you can talk about platinum and palladium and where you see pricing going, especially with -- as we move away from internal combustion engines, do we still need catalysts? Well, there's a lot of other high-tech applications for platinum and palladium in environmental campaigns, different movements and such. So we don't [indiscernible] deliver to [Audio Gap] and we just see great exploration potential. [Audio Gap] when it comes to energy [Audio Gap] just a little bit of cobalt makes [Audio Gap] looking at. So cobalt is a metal that's going to see continued demand. And what's interesting about cobalt is that most of it is produced as a byproduct. There's not a lot of cobalt mines out there, so to speak. And so that in itself also gives us some comfort about demand, supply/demand balances on that. So it is -- and it's -- we're comfortable with. We like both those assets, and we're quite [indiscernible].

And with that, we have about 3 questions left. I'll be asking you, curious as to why you feel it is necessary to have an at-the-market equity program in place.

Yes. We don't need it. Literally, about 2, 3 years ago, there was a number of large opportunities that we thought might be coming to market, $1 billion-plus streams. And so we wanted to put in some extra capacity. I'm proud of the fact that we have an ATM in place, and we are the only company, I think, in the entire resource sector that has had an ATM in place and never issued a share into it. I'm proud of that fact. It shows that it would be easy for us to, but that's how defensive we are. And it's -- I think it's a good example how defensive we are about putting our existing shareholders through any unnecessary dilution. So a lot of our peers were continually issuing shares into that space and maybe just didn't understand why when you've got such strong cash flows going forward. So with the $2 billion revolver, the extra $300 million in the ATM is -- it's -- now it doesn't cost us a lot to hold that in place, and it gives us a bit of extra capacity. But I will be honest, the opportunities that we're looking at right now, there's not a lot of stuff over $1 billion. It's generally in the $200 million to $400 million range is what we're looking at. And so I don't see a need for that, and I'm not sure how long the ATM will stay in our portfolio. It doesn't cost us a lot. It's a little bit of extra insurance. It lets my CFO sleep better at night. So I don't think he's having that many problems sleeping right now.

And your second to last question. What do you attribute -- what is your share price outperformance since the 2022 lows?

I still think we're undervalued. I think if you sit and look at our portfolio, look at the growth and then start comparing the growth that Wheaton has. Quite simply, the company has never been this strong, and we continue to add assets. As we showed with Alumina transaction, we're very busy on this front. And so we're not having a problem. We're not having to dive into oil and gas and iron ore and base metals. We have been able to continuously deliver good-quality, accretive acquisitions over the last 2, 3 years. And we've been, by far, the most active in the space. And so I really do think that shareholders are recognizing that. But there's still some recognition required. We're undervalued right now on a relative basis. Salobo mine, in terms of what it can deliver for us, is being undervalued quite a bit by a lot of the analysts out there. We think it's going to continue to outperform. I mean it's had a couple of tough years, but it had 7 years of outperformance. And Vale is very focused on trying to get back to where it once was, and there's no reason why they shouldn't be able to. And so I just -- I think that all of that is leading into share performance, but we've got so much more. And all it takes really is to look at the growth profiles. Look at our profile in terms of production compared to our peers, and you'll understand why we've only started outperforming with [ respect to ] share price.

And finally, your last question is, what [indiscernible] that will lead to a higher silver to gold ratio?

Higher silver to gold ratio. Well, silver is -- it's interesting. I'm the Chair of The World Gold Council that if you ask me what my favorite metal is, it's silver. Just because silver has got all the attributes the gold does, but it's got a few extra ones. It's actually [indiscernible] dramatically reduces electrical consumption, reduces resistivity, highest conductivity. It makes things more efficient. That's why solar [indiscernible] producing energy, silver makes the difference. And so when you sit and think about what today's world is focused on, as a property should be focused on, is getting rid of [indiscernible] mixing a little bit of silver in and things get better. And so that increasing demand on silver, I'm a bit surprised that it hasn't kickstarted the price. But I'm surprised where we are. But when you go back and look, silver always lags gold and then outperforms. And so I do think that, that's probably what we're going to do [indiscernible] retail side to wake up and recognize silver for what it is. And so as a precious metals-focused company, that the bulk of our revenue is in gold right now. If anything, 55% gold, about 40% silver. But that 40% silver is one of the best ways to get exposure in silver in the space. And so I think we deliver both of those metals in good value to our shareholders.

Great, Randy. And with that...

Yes, it's been a pleasure. Thank you, Karina.

Thank you. And with that, this concludes the Q&A portion for today's presentation. And also, thank you to the viewers who sent in questions. If you have any more, you can always contact your account manager here at Renmark. And before we go, Randy, I'll turn the floor back over to you for your final remarks.

Well, I'm just going to keep it simple. We've been on the phone now for pretty close to, what, 45 minutes or so on the screen. It's a good time to own more Wheaton, simple as that. So thank you for the opportunity. And as I said, if you got any further questions, don't hesitate to reach out.

And once again, this was Wheaton Precious Metals Corporation, trading on the Toronto Stock Exchange, New York Stock Exchange and London Stock Exchange, under ticker symbol WPM. Thank you again to everyone and surrounding areas for joining us today, and stay tuned for future presentations in your area, and we'll see you next time.